Agenda packet — El Centro City Council, June 7, 2022 (part 1 of 2)

AGENDA

CITY OF EL CENTRO

CITY COUNCIL/CITY COUNCIL AS

SUCCESSOR AGENCY TO THE

REDEVELOPMENT

AGENCY/SUCCESSOR HOUSING
AGENCY
TUESDAY, JUNE 7, 2022
City Hall Joint Regular Meeting 11:30 AM

CITY HALL

COUNCIL CHAMBERS
1275 MAIN STREET
EL CENTRO, CA 92243
City of El Centro Page 1
The public may attend in person. The City asks that anyone in attendance that is not fully vaccinated wear a mask. The public may choose to be outside and are subject to the same requirements. Any member of the public attending in person and wishing to make a comment is asked to complete a speaker slip and follow the instructions below regarding “Notice to the Public”. Any member of the public is invited to submit public comments in advance of the meeting to be answered at the meeting. Please email your questions to [email protected] or call 760-337-4515 by June 7, 2022.

COUNCIL MEMBERS, STAFF AND THE PUBLIC MAY ATTEND VIA ZOOM.

To participate and make a public comment via Zoom or telephone, please raise your hand, speak up and introduce yourself.

Join Zoom Meeting:
https://us02web.zoom.us/j/82240576848?pwd=bVRnOFdIMittemRTa0piTUxncEILZz09 Optional dial-in number: 1 (669) 900-6833
Meeting ID: 822 4057 6848 Passcode: 100942
Public comments via zoom are subject to the same time limits as those in person.

Mayor & Council Members may be reached at (760) 336-8989 Mayor: Tomás Oliva City Manager: Marcela Piedra
Mayor Pro-Tem: Martha Cardenas-Singh City Attorney: Elizabeth Martyn Evans Council Members: Edgard Garcia City Clerk: Norma Wyles
Sylvia Marroquin
Cheryl Viegas-Walker
11:30 A.M CLOSED SESSION - RDA CONFERENCE ROOM
ROLL CALL (Open Session)
Agenda City Council of the City of El Centro June 7, 2022 City of El Centro Page 2
CLOSED SESSION PUBLIC COMMENT:

Any member of the public wishing to address the City Council on any matter appearing on the closed session may do so at this time. Unless the Mayor extends the time limit, remarks shall be limited to three (3) minutes. Additional opportunities for Public Comments will be given during and at the end of the meeting.

CITY COUNCIL ADJOURNS INTO CLOSED SESSION

CITY COUNCIL CLOSED SESSION

LABOR NEGOTIATIONS
The City Council will recess to closed session pursuant to Government Code 54957.6 to meet with Agency Representatives Marcela Piedra, City Manager, Dulce Bedolla, Human Resources Director and Patrick Clark, consulting negotiator, for the purpose of considering employee compensation in the form of fringe benefits, or, as applicable, other matters dealing with mandatory subjects within the scope of representation pursuant to Government Code 3504; negotiating with all bargaining units within the City.

EXISTING LITIGATION
Upon advice of its legal counsel, the City Council will recess to closed session pursuant to Government Code §54956.9(d)(1) regarding the following litigation against the City - Aaron Reel v. City of El Centro 22 CV526 W KSC; John Seaman v. City of El Centro ECU002365.

POSSIBLE LITIGATION AGAINST THE CITY
A point has been reached where, in the opinion of the City Council upon the advice of its legal counsel, and based upon existing facts and circumstances, there is a significant possibility of initiation of litigation against the City under Govt. Code Section 54956.9(d)(2) based upon two claims:
1) Fernando Valenzuela – pothole 2) Blanca Garnica - PD damage to door residence in responding to a call from her

ANTICIPATED LITIGATION
Significant Exposure to Litigation Against the City pursuant to Govt. Code Section 54956.9(d)(2). A point has been reached where, in the opinion of the City Council on the advice of its legal counsel, based on existing facts and circumstances, there is significant exposure to litigation against the City. There is one (1) potential case.

Agenda City Council of the City of El Centro June 7, 2022 City of El Centro Page 3

NOTICE TO THE PUBLIC
This is a public meeting. If there is an item on the agenda on which you wish to be heard, you are asked to complete a blue speaker slip and submit it to the City Clerk prior to the start of the meeting. Persons wishing to address the Council, Successor Agency to the RDA and Successor Agency Housing Agency are not required to identify themselves (Gov’t Code § 54953.3); however, this information assists the Mayor by ensuring that all persons wishing to address the Council are recognized and also assists the City Clerk in preparing the City Council meeting minutes. When the item is announced and your name is called by the Mayor, please step to the podium and state your name for the record. Unless the Mayor extends the time, there is a three (3) minute time limit for each public presentation. If you wish to address the Council, Successor Agency to the RDA and Successor Housing Agency concerning any other matter not appearing on the agenda, you may do so during the public comment portion of the agenda.
* Any information provided on the “Speaker Slip” is voluntary and will be public record.

RECONVENE FOR OPEN SESSION 6:00 P.M.
6:00 P.M. OPEN SESSION

ALL TIMES ARE APPROXIMATE AND MAY VARY
CALL TO ORDER:

ROLL CALL BY CITY CLERK

PLEDGE OF ALLEGIANCE

INVOCATION
6:05-6:10 CITY ATTORNEY REPORT ON CLOSED SESSION
6:10-6:10 PRESENTATIONS AND ANNOUNCEMENTS BY MAYOR
6:10-6:15 PUBLIC COMMENTS
6:15-6:20 CONSENT AGENDA
Consent agenda items are approved by one motion. Council members or members of the public may pull consent items to be considered separately at a time determined by the Mayor.

1. Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF EL CENTRO CONFIRMING THE CONTINUATION OF THE

LOCAL STATE OF EMERGENCY AND THE STATE OF EMERGENCY
PROCLAIMED BY GOVERNOR NEWSOM ON MARCH 4, 2020 AND

AUTHORIZING REMOTE TELECONFERENCE MEETINGS OF THE CITY
COUNCIL FOR THE PERIOD JUNE 8, 2022 THROUGH JULY 5, 2022.

Agenda City Council of the City of El Centro June 7, 2022 City of El Centro Page 4

2. Approve City Council minutes of May 17, 2022, May 24, 2022 (5:00 pm) and May 24, 2022 (6:00 pm).

3. Authorize the City Clerk to notify each City Agency to review their code and submit a notice that either amendments are required or no amendments are necessary.

4. Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF EL CENTRO, CALIFORNIA, CALLING FOR THE HOLDING OF

A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY,
NOVEMBER 8, 2022 FOR THE ELECTION OF CERTAIN OFFICERS AS

REQUIRED BY THE PROVISIONS OF THE CHARTER AND STATE LAW

5. Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF EL CENTRO, CALIFORNIA, REQUESTING THE BOARD OF

SUPERVISORS OF THE COUNTY OF IMPERIAL TO CONSOLIDATE A
GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 8, 2022,

WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THE DATE PURSUANT TO ELECTIONS CODE §10403

6. Adopt Resolution No. 22 - RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF EL CENTRO APPROVING THE PARTNERSHIP SITE AND

TRAINING AGREEMENT WITH IMPERIAL VALLEY COLLEGE - CAREER

SERVICES CENTER

7. Authorize the filing of the fiscal year 2021-2022 claims with Imperial County Transportation Commission (ICTC) for Public Transportation pursuant to:

1. Article 8(e) of the Public Utilities code for bus benches/shelter in the amount of $18,620, 7TH/State Street bus terminal in the amount of $45,000, and for the regional maintenance and upkeep for benches/shelter in the amount of $25,000 for a grand total of $88,620.

2. Article 3 of the Public Utilities code for bicycle and pedestrian facilities in the amount of $37,061.

8. Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF EL CENTRO ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2022-2023 TO BE FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT

9. Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF EL CENTRO APPROVING AN AMENDED CONSULTING

AGREEMENT FOR LABOR NEGOTIATION SERVICES
Agenda City Council of the City of El Centro June 7, 2022 City of El Centro Page 5
6:20 - 7:30 PUBLIC HEARINGS

10. Public Hearing to consider the residential and commercial solid waste services rates and tabulate protest ballot results
PRESENTATION: Abraham Campos, PE - Public Works Director/City Engineer RECOMMENDATION:

Upon a Favorable Result on the Ballot Count and Upon Conclusion of the Public Hearing, Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF EL CENTRO, DECLARING THE RESULTS OF THE PROPERTY

OWNER PROTEST BALLOT PROCEEDING CONDUCTED FOR THE INCREASE

OF RESIDENTIAL AND COMMERCIAL/MULTIFAMILY SOLID WASTE RATES, COMMENCING IN FISCAL YEAR 2022/2023 AND THE SUBSEQUENT FOUR

FISCAL YEARS, MAKING FINDINGS AND APPROVING SUCH RATES AND

CERTAIN RELATED ACTIONS

11. Public hearing to consider the recommendation of the Planning Commission regarding Change of Zone 22-02
PRESENTATION: Angel Hernandez, Interim Director of Community Development
RECOMMENDATION:

Introduce Ordinance No. 22- , ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF EL CENTRO AMENDING THE ZONING MAP OF THE CITY OF EL CENTRO PERTAINING TO CHANGE OF ZONE 22-02, waive reading and approve as first reading and authorize City Clerk to place on the next agenda for second reading and adoption.
7:30-8:10 NEW BUSINESS

12. Adoption of Juneteenth as a Holiday in the City of El Centro PRESENTATION: Dulce Bedolla, Human Resources Director
RECOMMENDATION:

Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CENTRO DECLARING JUNE NINETEENTH (Juneteenth) TO BE A

CITY HOLIDAY
Agenda City Council of the City of El Centro June 7, 2022 City of El Centro Page 6

13. Adoption of Fireworks Social Host Ordinance
PRESENTATION: Police Chief, Interim Fire Chief
RECOMMENDATION:

Adopt Urgency Ordinance No. 22- , AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL CENTRO, CALIFORNIA AMENDING CHAPTER 10, ARTICLE V OF THE CITY CODE ENTITLED “FIREWORKS”.

14. Community Sponsorship Request - Sure Helpline Center PRESENTATION: Liz Zarate, Management Assistant
RECOMMENDATION:

Discussion and any necessary action regarding the requested sponsorship from Sure Helpline Center.

15. Rural Recreation and Tourism - Bucklin Park Amphitheater Project PRESENTATION: Adriana Nava, Community Services Director RECOMMENDATION:

1. Rescind Resolution No. 21-85- RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF EL CENTRO APPROVING THE APPLICATION FOR RURAL

RECREATION AND TOURISM PROGRAM GRANT FUNDS
AND

2. Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF EL CENTRO APPROVING THE APPLICATION FOR RURAL

RECREATION AND TOURISM GRANT FUNDS

3. Consideration of approval of $1,650,000 in Measure P Grant Funds for the purpose of the Bucklin Park Amphitheatre Project

16. Discussion and any necessary action regarding use of Measure P funding for the local match and authorizing the City Manager to execute grant agreements with Caltrans for the Imperial Avenue Complete Streets Plan PRESENTATION: Angel Hernandez, Interim Community Development Director RECOMMENDATION:

1. Allocate $39,000 in Measure P funds for the required local match for the Imperial Avenue Complete Streets project.

2. Approval of Resolution No. 22- A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF EL CENTRO AUTHORIZING THE CITY MANAGER TO EXECUTE

AGREEMENTS WITH THE CALIFORNIA DEPARTMENT OF TRANSPORTATION

FOR THE IMPERIAL AVENUE COMPLETE STREETS PLAN
Agenda City Council of the City of El Centro June 7, 2022 City of El Centro Page 7
8:10-8:25 SUCCESSOR AGENCY TO THE REVELOPMENT AGENCY

17. Discussion and related action regarding Disposition, Development, and Loan Agreement for Jacaranda Gardens Phase I, to be located at 1625 N.

Waterman Avenue, El Centro, CA 92243, and further identified by APN 064- 470-103
PRESENTATION: Adriana Nava, Community Services Director RECOMMENDATION:

Adopt Resolution No. SA 22-, RESOLUTION OF THE SUCCESSOR AGENCY TO

THE REDEVELOPMENT AGENCY OF THE CITY OF EL CENTRO, DECLARING AS EXEMPT SURPLUS LAND APPROXIMATELY 5.53 ACRES OF SUCCESSOR HOUSING AGENCY-OWNED VACANT PROPERTY LOCATED AT 1625 N.

WATERMAN AVENUE IN THE CITY OF EL CENTRO (APN: 064-470-103), PURSUANT TO ASSEMBLY BILL 1486, AND APPROVING THE TRANSFER OF THE PROPERTY FOR THE DEVELOPMENT OF 100% LOWER INCOME UNITS

AND APPROVING OTHER ACTIONS RELATED THERETO

LEGISLATIVE ACTION

ITEMS PULLED FROM CONSENT

INFORMATIONAL ITEMS

18. Notification of rejection of claim of Bianca Garnica by Carl Warren & Co., Claims Administrator

19. Notification of rejection of claim of Fernando Valenzuela by Carl Warren & Co., Claims Administrator.

20. Received and filed notification of Southern California Gas Company's request for rate increase Application A.22-05-015
8:25-9:00 TASK FORCE REPORTS AND MAYOR - COUNCIL MEMBER

REPORTS
9:00-9:15 CITY MANAGER REPORT
Agenda City Council of the City of El Centro June 7, 2022 City of El Centro Page 8

ADJOURNMENT
Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet will be available for public inspection at the Office of the City Clerk, 1275 Main Street, El Centro, California 92243, Monday-Friday during normal business hours.

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, you should contact the office of the City Clerk at (760)337-4515. Notification at least 48 hours prior to the meeting will enable the City to make reasonable arrangement to assure accessibility to this meeting.

City Council of the City of El Centro Meeting: 06/07/22 11:30 AM 1275 Main Street Department: City Clerk's Office
El Centro, CA 92243 Category: Resolution
Prepared By: Norma Wyles
SCHEDULED Department Head: Norma Wyles
ACTION ITEM (ID # 5546) DOC ID: 5546
Resolution Authorizing Remote Teleconference Meetings
CITY MANAGER’S RECOMMENDATION:

Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF EL CENTRO CONFIRMING THE CONTINUATION OF THE LOCAL STATE OF

EMERGENCY AND THE STATE OF EMERGENCY PROCLAIMED BY GOVERNOR NEWSOM ON MARCH 4, 2020 AND AUTHORIZING REMOTE TELECONFERENCE MEETINGS OF THE CITY COUNCIL FOR THE PERIOD JUNE 8, 2022 THROUGH JULY 5, 2022.

FISCAL IMPACT:

None
STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

N/A
DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTORS LICENSE, REFERENCE CHECKS, INSURANCE, ETC:

None
DISCUSSION:

If the City wishes to continue with virtual meetings, then the Council should consider and adopt this Resolution. It will apply to all Brown Act covered bodies within the City.

The previous teleconferencing provisions continue to apply but only for Council members on a trip or vacation do not change.

The bases for determining to continue virtual meeting participation are either the inability effectively to socially distance at public meetings (a health and safety issue) or a determination that a public meeting would present imminent danger to the participants. The inability to socially distance is set out in this Resolution.

In addition, AB 361 states requirements for virtual meetings (many of which were part of various Governor’s orders): requirements for clear noticing, allowing time for public comment during meetings, and observance of all statutory and constitutional rights of participants. The public may not be required to provide written comments in advance of the meeting. The legislation also provides that if the internet connection is lost, the meeting must stop until it is reacquired. Action taken without an internet connection is subject to challenge.

The ability to hold a virtual meeting lasts only as long as the Governor’s declaration of a statewide emergency. The Council may terminate virtual meetings at any time before that.
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Action Item (ID # 5546) Meeting of June 7, 2022
CONCLUSION:

Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF EL CENTRO CONFIRMING THE CONTINUATION OF THE LOCAL STATE OF

ATTACHMENTS:
• Resolution No. June 8 to July 5th (DOCX)
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05/2022/liz/A22-0005/Reso/EmergDecTeleconferenceMeetings RESOLUTION NO. 22-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CENTRO CONFIRMING

THE CONTINUATION OF THE LOCAL STATE OF EMERGENCY AND THE STATE OF EMERGENCY PROCLAIMED BY GOVERNOR NEWSOM ON MARCH 4, 2020 AND

AUTHORIZING REMOTE TELECONFERENCE MEETINGS OF THE CITY COUNCIL FOR THE PERIOD JUNE 8, 2022 THROUGH JULY 5, 2022
WHEREAS, the City is committed to preserving and encouraging public access and participation in City Council meetings; and
WHEREAS, all meetings of the City’s legislative bodies are open and public, as required by the Ralph M. Brown Act (Cal. Gov. Code 54950 – 54963), so that any member of the public may attend, participate, and watch the City’s legislative bodies conduct their business; and
WHEREAS, Government Code section 54953(e), added to the Brown Act effective October 1, 2021, makes provisions for remote teleconferencing participation in meetings by members of a legislative body, without compliance with the requirements of Government Code section 54953(b)(3), subject to the existence of certain conditions; and WHEREAS, a required condition is that a state of emergency has been declared by the Governor pursuant to Government Code section 8625, proclaiming the existence of conditions of disaster or of extreme peril to the safety of persons and property within the state caused by conditions as described in Government Code section 8558; and WHEREAS, a proclamation is made when there is an actual incident, threat of disaster, or extreme peril to the safety of persons and property within the jurisdictions that are within the City’s boundaries, caused by natural, technological, or human-caused disasters; and WHEREAS, it is further required that state or local officials have imposed or recommended measures to promote social distancing, or have determined that meeting in person would present imminent risks to the health and safety of attendees; and WHEREAS, such conditions now exist in the City, specifically, as the state of emergency declared by the City on March 17, 2020 and by Governor Newsom on March 4, 2020 each continues; and
WHEREAS, social distancing orders are in place at the state and County level for indoor public meetings and, given the size of the Council Chambers imposing such social distancing measures could present an imminent risk to the health and safety of attendees and enforcement of such rules could deter participation in a Board meeting; and WHEREAS, the City Council does hereby find that the combination of the emergency order and the requirement for social distancing has caused, and will continue to cause, conditions of peril to the safety of persons within the City that are likely to be beyond the control of services, personnel, equipment, and facilities of the City, and desires to rely upon

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Attachment: Resolution No. June 8 to July 5th (5546 : Resolution Authorizing Remote Teleconference Meetings) 05/2022/liz/A22-0005/Reso/EmergDecTeleconferenceMeetings those orders to allow remote attendance at meetings subject to the requirements of the Brown Act; and
WHEREAS, City Council does hereby find that, commencing with the October 5, 2021 meeting, it has been and continues to be justified in conducting its meetings without compliance with paragraph (3) of subdivision (b) of Government Code section 54953, as authorized by subdivision (e) of section 54953, and that such the City has and shall continue to comply with the requirements to provide the public with access to the meetings as prescribed in paragraph (2) of subdivision (e) of section 54953; and WHEREAS, the City has and will continue to comply with all other applicable health and safety orders.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL CENTRO, CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference.

Section 2. Confirmation of Emergency. The City Council hereby proclaims that the state of emergency continues throughout the City, and meeting in person would be difficult due to the size of the Board room and therefore present imminent risk to those in attendance.

Section 3. Remote Teleconference Meetings. The City Manager, City Clerk and staff are hereby authorized and directed to take all actions necessary to carry out the intent and purpose of this Resolution including, conducting open and public meetings in accordance with Government Code section 54953(e) and other applicable provisions of the Brown Act.

Section 5. Effective Date of Resolution. This Resolution shall take effect immediately upon its adoption and supersedes Resolution No. 22-39. This Resolution shall be effective until the earlier of (i) 30 calendar days from the date of its adoption on May 17, or June 17, 2022; (ii) or such time the City Council adopts a subsequent resolution in accordance with Government Code section 54953(e)(3) to extend the time during which all City bodies subject to the Brown Act may continue to teleconference without compliance with paragraph (3) of subdivision (b) of section 54953.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of El Centro held on the day of , 2022.

CITY OF EL CENTRO
By ___________________________
Tomas Oliva, Mayor

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Attachment: Resolution No. June 8 to July 5th (5546 : Resolution Authorizing Remote Teleconference Meetings) 05/2022/liz/A22-0005/Reso/EmergDecTeleconferenceMeetings ATTEST:

By _________________________
Norma Wyles, City Clerk
APPROVED TO FORM:

Office of the City Clerk
By__________________________
Elizabeth Martyn, City Attorney

STATE OF CALIFORNIA )
COUNTY OF IMPERIAL ) ss

CITY OF EL CENTRO )
I, Norma Wyles, City Clerk of the City of El Centro, California, do hereby certify that the foregoing Resolution No. 22- was duly and regularly adopted at a regular meeting of the City Council of the City of El Centro, California held on the day of , 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

By ___________________________
Norma Wyles, City Clerk

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Attachment: Resolution No. June 8 to July 5th (5546 : Resolution Authorizing Remote Teleconference Meetings) City Council of the City of El Centro Meeting: 06/07/22 11:30 AM 1275 Main Street Department: City Clerk's Office
El Centro, CA 92243 Category: Minutes
Prepared By: Norma Wyles
SCHEDULED Department Head: Norma Wyles
ACTION ITEM (ID # 5561) DOC ID: 5561
Approval of City Council Minutes of May 17, 2022, May 24, 2022 (5:00 pm) and May 24, 2022 (6:00 pm).

CITY MANAGER’S RECOMMENDATION:

Approve City Council minutes of May 17, 2022, May 24, 2022 (5:00 pm) and May 24, 2022 (6:00 pm).

ATTACHMENTS:
• 5-17-2022 Regular CC Minutes (DOCX)
• 5-24-2022 Special Meeting CC Minutes - 5 p.m. (DOCX)
• 5-24-2022 Special Meeting CC Minutes - 6 p.m. (DOCX)
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Book 36

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REGULAR MEETING

EL CENTRO CITY COUNCIL

CITY HALL, COUNCIL CHAMBERS
1275 MAIN STREET, EL CENTRO, CA
TUESDAY, MAY 17, 2022 11:30 A.M.

The El Centro City Council met in an all virtual joint regular session on May 17, 2022 at 11:31 a.m. in the RDA Conference Room, 1249 Main Street, El Centro, California for the purpose of closed session.

PRESENT: Council: Garcia, Viegas-Walker, Oliva, Cardenas-Singh, Marroquin City Clerk Wyles, City Manager Piedra, City Attorney Martyn Evans Closed Session Public Comment
None

CITY COUNCIL CLOSED SESSION
Moved by Viegas-Walker, second Marroquin, to adjourn into closed session for:

LABOR NEGOTIATIONS
The City Council will recess to closed session pursuant to Government Code Section 54957.6 to meet with Agency Representatives Marcela Piedra, City Manager, Dulce Bedolla, Human Resources Director and Patrick Clark, consulting negotiator, for the purpose of considering employee compensation in the form of fringe benefits, or, as applicable, other matters dealing with mandatory subjects within the scope of representation pursuant to Government Code 3504; negotiating with all bargaining units within the City.

NEGOTIATIONS REGARDING ACQUISITIONS/DISPOSITION OF REAL PROPERTY The City Council will recess to closed session pursuant to Government Code §54956.8 to give instructions to the City’s negotiator, Marcela Piedra, City Manager regarding negotiations with Desert Vista Development, LLC which instructions will concern price, terms of payment or both, including use restriction and other monetary related considerations concerning the lease of the property at Valley Centerpoint Shopping Center, 1002 N. Imperial Ave., El Centro
ADDED ITEM TO CLOSED SESSION:

Moved by Viegas-Walker, second by Garcia, to add Govt. Code Section 54956.9(d)(2) denial of claims filed by Manuel Avendano and Arturo Lucero regarding COVID testing swab.

Motion unanimously carried.

Closed Session concluded at 1:10 p.m.

City Council recessed to 6:00 p.m.

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Attachment: 5-17-2022 Regular CC Minutes (5561 : Approval of City Council Minutes) Book 36

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OPEN SESSION
The El Centro City Council met in a regular session on Tuesday, May 17, 2022 at 6:00 p.m. in Council Chambers, El Centro City Hall, 1275 Main Street, El Centro, California.

PRESENT: Council: Garcia, Viegas-Walker, Oliva, Cardenas-Singh, Marroquin City Clerk Wyles, City Manager Piedra, City Attorney Elizabeth Martyn Evans /Derek Cole ABSENT: None
Pledge of Allegiance to the flag of the United States of America was led by Council Member Garcia, and invocation was given by Council Member Marroquin.

CITY ATTORNEY REPORT ON CLOSED SESSION
Attorney Derek Cole on behalf of our City Attorney, Mrs. Martin Evans. Labor negotiations with designated employee bargaining units and the City Council gave direction to its negotiators. To conclude the negotiations and move forward that is the reportable action for that item. City Council met and discussed two existing litigation matters as indicated in the agenda. An update was received and direction given to legal counsel on both existing litigation items. No further reportable action was taken.

SCHEDULED PRESENTATION

1. Presentation of Lithium Valley Economics Opportunity Investment Plan and request for a support letter, by Rebecca Terrazas-Baxter, Intergovernmental Relations Director, Imperial County.

PUBLIC COMMENT
None

CONSENT AGENDA
Moved by Viegas-Walker, second by Garcia, approving consent agenda items #2 – #6.

2. Approval of Warrant Registers for the Month of April 2022.

3. Approval of Payroll Registers for the Month of April 2022.

4. Approval of Treasurer’s Report for the Month of April 2022.

5. Adoption of Resolution No. 22-39, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL

CENTRO CONFIRMING THE CONTINUATION OF THE LOCAL STATE OF EMERGENCY AND THE STATE OF EMERGENCY PROCLAIMED BY GOVERNOR NEWSOM ON MARCH 4, 2020 AND AUTHORIZING REMOTE TELECONFERENCE MEETINGS OF THE CITY COUNCIL FOR THE PERIOD JUNE 2, 2022 THROUGH JUNE 16, 2022.

6. Approval of City Council minutes of April 19, 2022 and May 3, 2022.

AYES: Garcia, Viegas-Walker, Oliva, Cardenas-Singh, Marroquin NOES: None
ABSENT: None
ASTAINED: None

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Attachment: 5-17-2022 Regular CC Minutes (5561 : Approval of City Council Minutes) Book 36

Page 461 ends

PUBLIC HEARINGS

7. This was the date and time set for a public hearing for the purpose of approving the Engineer’s report regarding Buena Vista Landscaping and Lighting District and authorizing the levy and collection of assessments related thereto commencing in fiscal year 2022/2023. Presentation by Richard Romero, Director of Finance. Mayor Oliva declared the public hearing opened and asked if anyone wished to speak in favor or opposition to come forward. Eric Brisitigam came forward and asked why the rates where being raised to 29% and also asked who will be taking care of the lighting and landscape.

Victor Villa spoke regarding a park that was supposed to be built at Buena Vista and has not been built. Mr. Villa also mentioned they are street lights that flicker at night and the landscaping that is dead and not taken care of. He asked why is he paying more money for the upkeep of the neighborhood when it looks unkept. Adriana Nava, Community Services Director, explained where the park will be built. Abraham Campos, Public Works Director/City Engineer explained what the Landscaping and Lighting District covers in the Buena Vista area. Miguel Arvizu came forward and asked the landscapers timeframe to be in the area to work on the landscape. He also asked about the barcode on the future park site sign that used to be in the location where the park will be built. Ms.

Nava explained what the barcode was used for. Public hearing was closed by Mayor Oliva and brought back to Council.

Motion by Viegas-Walker, second by Garcia, adoption of Resolution No. 22-40, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CENTRO APPROVING THE ENGINEER’S

REPORT REGARDING BUENA VISTA LANDSCAPING AND LIGHTING DISTRICT AND

AUTHORIZING THE LEVY AND COLLECTION OF ASSESSMENTS RELATED THERETO COMMENCING IN FISCAL YEAR 2022/2023.

AYES: Garcia, Viegas-Walker, Oliva, Cardenas-Singh, Marroquin NOES: None
ABSENT: None
ABSTAINED: None

8. This was date and time set for a public hearing for the purpose of approving the Engineer’s Report regarding Legacy Ranch Landscaping and Lighting District and authorizing the levy and collection of assessments related thereto commencing in fiscal year 2022/2023. Presentation by Richard Romero, Director of Finance. Mayor Oliva opened the public hearing and asked if any public comments were received on this item, none were received and public hearing was closed. Mayor Pro-Tem Cardenas - Singh asked to see the historical rates for Legacy Ranch. Mr. Romero clarified that the fees to upkeep this park was more expensive because there was more equipment to upkeep.

Motion by Marroquin, second by Cardenas-Singh, adoption of Resolution No. 21-41, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CENTRO APPROVING THE ENGINEER’S

REPORT REGARDING LEGACY RANCH LANDSCAPING AND LIGHTING DISTRICT AND

AUTHORIZING THE LEVY AND COLLECTION OF ASSESSMENTS RELATED THERETO COMMENCING IN FISCAL YEAR 2022/2023.

AYES: Garcia, Viegas-Walker, Oliva, Cardenas-Singh, Marroquin NOES: None
ABSENT: None
ABSTAINED: None

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Attachment: 5-17-2022 Regular CC Minutes (5561 : Approval of City Council Minutes) Book 36

Page 462 ends

9. This was the date and time set for a public hearing for the purpose of approving the Engineers Report regarding the El Centro Town Center Landscaping and Lighting District and the levy and collection of assessments related thereto commencing in fiscal year 2022/2023. Mayor Oliva opened the public hearing and asked if there were any public comments, there were none and he closed the public hearing.

Motion by Viegas-Walker, second by Garcia, adoption of Resolution No. 21-42, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CENTRO APPROVING THE ENGINEER’S

REPORT REGARDING THE EL CENTRO TOWN CENTER LANDSCAPING AND LIGHTING

DISTRICT AND THE LEVY AND COLLECTION OF ASSESSMENTS RELATED THERETO COMMENCING IN FISCAL YEAR 2022/2023.

AYES: Garcia, Viegas-Walker, Oliva, Cardenas-Singh, Marroquin NOES: None
ABSENT: None
ABSTAINED: None

NEW BUSINESS

10. Presentation by Cedric Ceseña, Interim Fire Chief, discussion and related action regarding VEOCI Master Services agreement for the use of EOC software. Cm Viegas-Walker asked several questions regarding the use and accessibility of the program.

Motion by Viegas-Walker, second by Oliva, adoption of Resolution No. 22-43, RESOLUTION OF

THE CITY COUNCIL OF THE CITY OF EL CENTRO APPROVING A SOFTWARE SERVICES AGREEMENT WITH VEOCI, INC.

AYES: Garcia, Viegas-Walker, Oliva, Cardenas-Singh, Marroquin NOES: None
ABSENT: None
ASTAINED: None

11. Presentation by Abraham Campos, PE Public Works Director/City Engineer, discussion and any necessary action regarding the award of the Wastewater and Water Treatment Plant Clarifiers Rehabilitation Project.

Motion by Viegas-Walker, second by Marroquin, adoption of Resolution No. 22-44, RESOLUTION

OF TH CITY COUNCIL OF THE CITY OF EL CENTRO AWARDING THE BID AND

AUTHORIZING THE EXECUTION OF A CONTRACT FOR THE CLARIFIERS REHABILITATION PROJECT, AND APPROPRIATE $2,001,607 IN ENTERPRISE FUNDING AYES: Garcia, Viegas-Walker, Oliva, Cardenas-Singh, Marroquin NOES: None
ABSENT: None
ABSTAIN: None

12. Presentation by Abraham Campos, PE, Public Works Director/City Engineer, discussion and any necessary action regarding the approval of additional funding of the agreement with Arrington Watkins Architects, Inc. for the Police Station Project Motion by Viegas-Walker, second by Garcia, approval of action 1 - additional funding in the amount of $169,008 and authorize City Manager to approve Amendment No. 5 to the agreement with Arrington Watkins Architects, Inc., in a substantial form to the attached Amendment No. 5, for a revised contract cost of $2,541,160.00.

AYES: Garcia, Viegas-Walker, Cardenas-Singh, Marroquin
NOES: Oliva
ABSENT: None
ABSTAINED: None

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Attachment: 5-17-2022 Regular CC Minutes (5561 : Approval of City Council Minutes) Book 36

Page 463 ends

13. Presentation by Richard L. Romero, Director of Finance, Budget workshop FY 2023 – Enterprise, Special Revenue and Capital Projects Funds.

For discussion only.

14. Moved by Oliva, second by Cardenas-Singh, approving the initial appointment of Sonia Carter as a Voting-Member with term ending June 30, 2022 and initial appointment of Rosendo Gerardo Garcia as a Non-Voting member with term ending June 30, 2023 to the Library and Community Services Board.

AYES: Garcia, Viegas-Walker, Oliva, Cardenas-Singh, Marroquin NOES: None
ABSENT: None
ABSTAINED: None

DEPARTMENT REPORT

15. Presentation by Angel Hernandez, Interim Community Development Director, Fireworks Ordinance Update. Steve Bennett from TNT, spoke about illegal fireworks.

LEGISLATIVE ACTION
None

TASK FORCE AND MAYOR & COUNCIL MEMBERS REPORTS
Mayor and Council Members reported on their activities since last City Council meeting and upcoming events.

CITY MANAGER REPORT
City Manager reported on activities since last City Council meeting and upcoming events.

ADJOURNMENT
With no further business to come before City Council, Mayor Oliva adjourned the meeting at 8:56 p.m. __________________________
Norma Wyles, City Clerk
APPROVED BY:
________________________________
Tomás Oliva, Mayor

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Attachment: 5-17-2022 Regular CC Minutes (5561 : Approval of City Council Minutes) Book 36

Page 464 ends

SPECIAL MEETING

EL CENTRO CITY COUNCIL

CITY HALL, COUNCIL CHAMBERS
1275 MAIN STREET, EL CENTRO, CA
TUESDAY, MAY 24, 2022 5:00 P.M.

The El Centro City Council met in special session on Tuesday, May 24, 2022 at 5:00 p.m. in City Hall, Conference Room A, 1275 Main Street, El Centro, California.

PRESENT: Council: Garcia, Viegas-Walker, Oliva, Cardenas-Singh, Marroquin City Clerk Wyles, City Manager Piedra, City Attorney Martyn Evans ABSENT: Council: Garcia (arrived at 5:20 p.m.)
CLOSED SESSION PUBLIC COMMENT:

No comments were received.

CITY COUNCIL CLOSED SESSION
Moved by Cardenas-Singh, second by Marroquin, to adjourn into closed session at 5:00 p.m. for:

LABOR NEGOTIATIONS
The City Council will recess to closed session pursuant to Government Code Section 54957.6 to meet with Agency Representatives Marcela Piedra, City Manager, Dulce Bedolla, Human Resources Director and Patrick Clark, Consultant, for the purpose of reviewing the City's position and instructing its representatives regarding matters of salaries, salary schedules, compensation paid in the form of fringe benefits, or, as applicable, other matters dealing with mandatory subjects within the scope of representation pursuant to Government Code Section 3504, negotiating with All Department Heads, All Unrepresented Units, and all Bargaining Units.

Motion unanimously carried. Garcia absent. (Garcia arrived at 5:20 p.m.) Closed Session concluded at 5:40 p.m.

City Council recessed to 5:45 p.m.

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Attachment: 5-24-2022 Special Meeting CC Minutes - 5 p.m. (5561 : Approval of City Council Minutes) Book 36

Page 465 ends

OPEN SESSION
The El Centro City Council met in special session on Tuesday, May 24, 2022 at 5:45 p.m. in Council Chambers, El Centro City Hall, 1275 Main Street, El Centro, California.

PRESENT: Council: Garcia, Viegas-Walker, Oliva, Cardenas-Singh, Marroquin City Clerk Wyles, City Manager Piedra, City Attorney Elizabeth Martyn Evans

NEW BUSINESS

1. Presentation by Elizabeth Martyn Evans, City Attorney, draft fireworks social host ordinance.

For discussion only.

LEGISLATIVE ITEMS
Council approved for support letters to be sent to AB 2011 (Wicks) Affordable Housing and High Road Jobs Act of 2022, Notice of Opposition (as amended 4/18/22) and 2022-23 State Budget Request to invest 1.6 billion in the vitality of the Cities.

PUBLIC COMMENTS:

Victor Zazueta spoke in favor of the firework ordinance.

ADJOURNMENT
With no further business to come before City Council, Mayor Oliva adjourned the meeting 6:06 p.m. ____________________________
Norma Wyles, City Clerk
APPROVED BY:
_________________________
Tomás Oliva, Mayor

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Attachment: 5-24-2022 Special Meeting CC Minutes - 5 p.m. (5561 : Approval of City Council Minutes) Book 36

Page 466 ends

SPECIAL MEETING

EL CENTRO CITY COUNCIL

CITY HALL, COUNCIL CHAMBERS
1275 MAIN STREET, EL CENTRO, CA
TUESDAY, MAY 24, 2022 6:00 P.M.

OPEN SESSION
The El Centro City Council met in special session on Tuesday, May 24, 2022 at 6:00 p.m. in City Hall, Council Chambers, 1275 Main Street, El Centro, California.

PRESENT: Council: Garcia, Viegas-Walker, Oliva, Cardenas-Singh, Marroquin City Clerk Wyles, City Manager Piedra, City Attorney Martyn Evans ABSENT: None
Pledge of Allegiance to the flag of the United States of America was led by Commissioner Lopez and invocation was given by Co-Chairman Dunnam.

PUBLIC COMMENT:

No comments were received.

INFORMATION ITEM

1. Presentation by Angel Hernandez, Interim Community Development Director, work-study session on Zoning Code Update. Claudia Tedford, AICP, CityPlace Planning and her staff presented various ideas for the City of El Centro. For discussion only.

PUBLIC COMMENTS:

Mr. Jose Hinojosa had a question regarding a zone update on his property. Comments were received via Zoom, GK, Carlos B. and Abraham Campos.

ADJOURNMENT
With no further business to come before City Council, Mayor Oliva adjourned the meeting 7:56 p.m. ____________________________
Norma Wyles, City Clerk
APPROVED BY:
_________________________
Tomás Oliva, Mayor

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Attachment: 5-24-2022 Special Meeting CC Minutes - 6 p.m. (5561 : Approval of City Council Minutes) City Council of the City of El Centro Meeting: 06/07/22 11:30 AM 1275 Main Street Department: City Clerk's Office
El Centro, CA 92243 Category: Conflict of Interest
Prepared By: Norma Wyles
SCHEDULED Department Head: Norma Wyles
ACTION ITEM (ID # 5464) DOC ID: 5464
Discussion and any necessary action regarding the 2022
Conflict of Interest Code Biennial Notice
CITY MANAGER’S RECOMMENDATION:

Authorize the City Clerk to notify each City Agency to review their code and submit a notice that either amendments are required or no amendments are necessary.

FISCAL IMPACT:

None
STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

N/A
DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTORS LICENSE, REFERENCE CHECKS, INSURANCE, ETC:

N/A
BACKGROUND:

The Political Reform Act requires every local government agency to review their conflict of interest biennially to determine if it accurate or if changes are needed.

DISCUSSION:

Upon review, should any conflict of interest codes require changes, notification that amendments are needed will be submitted to the City Council by October 4, 2022. Any changes to the code must be approved by City Council within 90 days of notification.

CONCLUSION:

Staff recommends City Council authorize the City Clerk to notify each City Agency to review their Conflict of Interest Code and return the completed 2022 Local Agency Biennial Notice to the City Clerk.

ATTACHMENTS:
• Local_Agency_Biennial_Notice (PDF)
• Local_Agency_Biennial_Notice_Instructions (PDF)
3 Packet Pg. 23
www.fppc.ca.gov
FPPC Advice: [email protected] (866.275.3772)

Page 1 of 1 ends

2022 Local Agency Biennial Notice
Name of Agency:

Mailing Address:

Contact Person: Phone No.

Email: Alternate Email:

Accurate disclosure is essential to monitor whether officials have conflicts of interest and to help ensure public trust in government. The biennial review examines current programs to ensure that the agency’s code includes disclosure by those agency officials who make or participate in making governmental decisions.

This agency has reviewed its conflict of interest code and has determined that (check one BOX):
q An amendment is required. The following amendments are necessary:
(Check all that apply.)
¡ Include new positions
¡ Revise disclosure categories
¡ Revise the titles of existing positions
¡ Delete titles of positions that have been abolished and/or positions that no longer make or participate in making governmental decisions
¡ Other (describe)
q The code is currently under review by the code reviewing body. q No amendment is required. (If your code is over five years old, amendments may be necessary.)
Verification (to be completed if no amendment is required) This agency’s code accurately designates all positions that make or participate in the making of governmental decisions. The disclosure assigned to those positions accurately requires that all investments, business positions, interests in real property, and sources of income that may foreseeably be affected materially by the decisions made by those holding designated positions are reported. The code includes all other provisions required by Government Code Section 87302.
__________________________________________ _________________________ Signature of Chief Executive Officer Date
All agencies must complete and return this notice regardless of how recently your code was approved or amended. Please return this notice no later than October 3, 2022, or by the date specified by your agency, if earlier, to:
(PLACE RETURN ADDRESS OF CODE REVIEWING BODY HERE)
PLEASE DO NOT RETURN THIS FORM TO THE FPPC.

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Attachment: Local_Agency_Biennial_Notice (5464 : Biennial Review of Conflict of Interest Code) [email protected] 1.866.275.3772 or 916.322.5660
www.fppc.ca.gov FPPC • 076-04.2022 • Page 1 of 1

FAIR POLITICAL PRACTICES COMMISSION
2022 Conflict of Interest Code
Biennial Notice Instructions for Local Agencies
The Political Reform Act requires every local government agency to review its conflict of interest code biennially. A conflict of interest code tells public officials, governmental employees, and consultants what financial interests they must disclose on their Statement of Economic Interests (Form 700).

By July 1, 2022: The code reviewing body must notify agencies and special districts within its jurisdiction to review their conflict of interest codes.

By October 3, 2022: The biennial notice must be filed with the agency’s code reviewing body.

The FPPC has prepared a 2022 Local Agency Biennial Notice form for local agencies to complete or send to agencies within its jurisdiction to complete before submitting to the code reviewing body. The City Council is the code reviewing body for city agencies. The County Board of Supervisors is the code reviewing body for county agencies and any other local government agency whose jurisdiction is determined to be solely within the county (e.g., school districts, including certain charter schools). The FPPC is the code reviewing body for any agency with jurisdiction in more than one county and will contact them.

The Local Agency Biennial Notice is not forwarded to the FPPC.

If amendments to an agency’s conflict of interest code are necessary, the amended code must be forwarded to the code reviewing body for approval within 90 days. An agency’s amended code is not effective until it has been approved by the code reviewing body.

If you answer yes, to any of the questions below, your agency’s code probably needs to be amended.
• Is the current code more than five years old?
• Have there been any substantial changes to the agency’s organizational structure since the last code was approved?
• Have any positions been eliminated or re-named since the last code was approved? • Have any new positions been added since the last code was approved? • Have there been any substantial changes in duties or responsibilities for any positions since the last code was approved?
If you have any questions or are still not sure if you should amend your agency’s conflict of interest code, please contact the FPPC. Additional information including an online webinar regarding how to amend a conflict of interest code is available on FPPC’s website.

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Attachment: Local_Agency_Biennial_Notice_Instructions (5464 : Biennial Review of Conflict of Interest Code) City Council of the City of El Centro Meeting: 06/07/22 11:30 AM 1275 Main Street Department: City Clerk's Office
El Centro, CA 92243 Category: Elections
Prepared By: Norma Wyles
SCHEDULED Department Head: Norma Wyles
RESOLUTION (ID # 5461) DOC ID: 5461
Resolution calling for the holding of a General Municipal Election to be held on November 8, 2022.

CITY MANAGER’S RECOMMENDATION:

Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF EL CENTRO, CALIFORNIA, CALLING FOR THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2022 FOR THE ELECTION OF CERTAIN OFFICERS AS REQUIRED BY THE

PROVISIONS OF THE CHARTER AND STATE LAW
FISCAL IMPACT:
$ 14,000 budgeted for the 2022 General Municipal Election. The November 3, 2020 election cost was $13,476.79.

STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

N/A
DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTORS LICENSE, REFERENCE CHECKS, INSURANCE, ETC:

N/A
BACKGROUND:

Pursuant to Ordinance No. 17-04, the City of El Centro consolidated with the County of Imperial statewide election held on the first Tuesday after the first Monday in November of each even-numbered year.

The upcoming City of El Centro General Municipal Election is scheduled for November 8, 2022 for the purpose of electing two (2) members to the El Centro City Council, each for a term of four (4) years.

DISCUSSION:

Procedures for conducting a General Municipal Election are established by law. To begin the election process for the upcoming General Municipal Election, it is necessary for the City Council to adopt a resolution calling and giving notice of a general municipal election to be held in the City of El Centro on November 8, 2022 and adopt a resolution requesting the Board of Supervisors of the County of Imperial to consolidate a general municipal election with the statewide election same date. (ID# 5463) Section 15651 of the Elections Code provides that determination of a tie vote of an office in an election shall be either by lot or by the conduct of a special runoff election.

Pursuant to Resolution No. 05-100 adopted by the El Centro City Council on September 21, 2005, tie votes will be determined by lot in accordance with provisions of Section 4 Packet Pg. 26
Resolution (ID # 5461) Meeting of June 7, 2022
15651(a). Said Resolution 05-100 will remain in effect unless repealed by the City Council.

On April 1, 2009, Resolution No. 09-17 was adopted providing for regulations for candidates for elective office, pertaining to candidate statements. Said resolution will remain in effect unless repealed by the City Council.

CONCLUSION:

Staff is asking Council to consider for adoption the proposed resolutions (1) calling and giving notice of the holding of a general municipal election on Tuesday, November 8, 2022 and (2) requesting the Board of Supervisors of the County of Imperial to consolidate a General Municipal Election to be held on Tuesday, November 8, 2022 with the statewide election to be held on the same date (ID # 5463).

ATTACHMENTS:
• Hold Municipal Election 2022 (DOCX)
4 Packet Pg. 27
03/2022/liz/A22-0060/Reso/Hold General Municipal Election Nov 2022 RESOLUTION NO. 22-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL

CENTRO, CALIFORNIA, CALLING FOR THE HOLDING OF A

GENERAL MUNICIPAL ELECTION TO BE HELD ON
TUESDAY, NOVEMBER 8, 2022 FOR THE ELECTION OF

CERTAIN OFFICERS AS REQUIRED BY THE PROVISIONS OF

THE CHARTER AND STATE LAW
WHEREAS, under the provisions of the Charter of the City of El Centro, a General Municipal Election shall be held on Tuesday, November 8, 2022, for the election of Municipal Officers.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL CENTRO, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

1. That pursuant to the requirements of the Charter, there is called and ordered to be held in the City of El Centro, California, on Tuesday, November 8, 2022, a General Municipal Election for the purpose of electing two (2) members of the City Council for the full term of four (4) years.

2. That the ballots to be used at the election shall be in form and content as required by law.

3. That the City Clerk is authorized, instructed and directed to coordinate with the County of Imperial Registrar of Voters to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election.

4. That the polls for the election shall be open at seven o'clock a.m. of the day of the election and shall remain open continuously from that time until eight o'clock p.m. of the same day when the polls shall be closed, pursuant to Election Code §10242, except as provided in Elections Code § 14401.

5. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections.

6. That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law.

7. That in the event of a tie vote (if any two or more persons receive an equal and the highest number of votes for an office) as certified by the County of Imperial Registrar of Voters,

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Attachment: Hold Municipal Election 2022 (5461 : Resolution Calling for a November 8, 2022 General Municipal Election) 03/2022/liz/A22-0060/Reso/Hold General Municipal Election Nov 2022 the City Council, in accordance with the Election §15651(a), shall set a date and time and place and summon the candidates who have received the votes to appear and will determine the tie by lot.

8. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

9. The City Council authorizes the City Clerk to administer said election and all reasonable and actual election expenses shall be paid by the City upon presentation of a properly submitted bill.

PASSED AND ADOPTED by the City Council of the City of El Centro at a regular meeting thereof held on day of June, 2022.

CITY OF EL CENTRO
By
Tomás Oliva, Mayor
ATTEST:

By
Norma Wyles, City Clerk
APPROVED AS TO FORM:

Office of the City Attorney
By
Elizabeth Martyn-Evans, City Attorney

STATE OF CALIFORNIA)
COUNTY OF IMPERIAL)§

AYES:

NOES:

ABSENT:

ABSTAINED:

By
Norma Wyles, City Clerk

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Attachment: Hold Municipal Election 2022 (5461 : Resolution Calling for a November 8, 2022 General Municipal Election) City Council of the City of El Centro Meeting: 06/07/22 11:30 AM 1275 Main Street Department: City Clerk's Office
El Centro, CA 92243 Category: Elections
Prepared By: Norma Wyles
SCHEDULED Department Head: Norma Wyles
RESOLUTION (ID # 5463) DOC ID: 5463
Resolution requesting the Board of Supervisors of the
County of Imperial to consolidate a General Municipal
Election to be held on November 8, 2022 with the Statewide Election.

CITY MANAGER’S RECOMMENDATION:

Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF EL CENTRO, CALIFORNIA, REQUESTING THE BOARD OF SUPERVISORS OF

THE COUNTY OF IMPERIAL TO CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 8, 2022, WITH THE STATEWIDE

GENERAL ELECTION TO BE HELD ON THE DATE PURSUANT TO ELECTIONS CODE §10403
***PLEASE REFER TO RELATED ID# 5461 FOR COMPLETE STAFF REPORT ATTACHMENTS:
• Reso - Request BOS Consolidate (DOC)
5 Packet Pg. 30
03/2022/liz/A22-0059/Reso/ConsolidateMuniElections
RESOLUTION NO. 22-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL

CENTRO, CALIFORNIA, REQUESTING THE BOARD OF

SUPERVISORS OF THE COUNTY OF IMPERIAL TO

CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE
HELD ON NOVEMBER 8, 2022, WITH THE STATEWIDE

GENERAL ELECTION TO BE HELD ON THE DATE
PURSUANT TO ELECTIONS CODE §10403
WHEREAS, the City Council of the City of El Centro called a General Municipal Election to be held on November 8, 2022, for the purpose of the election of two (2) members of the City Council; and
WHEREAS, it is desirable that the General Municipal Election be consolidated with the Statewide General Election to be held on the same date and that within the city the precincts, polling places and election officers of the two elections be the same, and that the county election department of the County of Imperial canvass the returns of the General Municipal Election and that the election be held in all respects as if there were only one election.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL CENTRO, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

1. That pursuant to the requirements of Elections Code §10403, the Board of Supervisors of the County of Imperial is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide General Election on Tuesday, November 8, 2022, for the purpose of the election of two (2) members of the City Council.

2. That the County election department is authorized to canvass the returns of the General Municipal Election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. The election will be held and conducted in accordance with the provisions of law regulating the statewide or special election.

3. That the Board of Supervisors is requested to issue instructions to the County election department to take any and all steps necessary for the holding of the consolidated election.

4. That the City of El Centro recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any costs.

5. That the City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the County election department of the County of Imperial.

6. That the City Clerk shall certify to the passage and adoption of this resolution and

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Attachment: Reso - Request BOS Consolidate (5463 : Request consolidation of Election) 03/2022/liz/A22-0059/Reso/ConsolidateMuniElections
enter it into the book of original resolutions.

PASSED AND ADOPTED by the City Council of the City of El Centro at a regular meeting held on the day of June, 2022.

CITY OF EL CENTRO
By _____________________________
Tomás Oliva, Mayor
ATTEST:

By: ______________________________
Norma Wyles, City Clerk
APPROVED AS TO FORM:

Office of the City Attorney
By: ______________________________
Elizabeth Martyn Evans City Attorney

STATE OF CALIFORNIA )
COUNTY OF IMPERIAL ) ss

AYES:

NOES:

ABSENT:

ABSTAINED:

By _________________________________
Norma Wyles, City Clerk

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Attachment: Reso - Request BOS Consolidate (5463 : Request consolidation of Election) City Council of the City of El Centro Meeting: 06/07/22 11:30 AM 1275 Main Street Department: City Manager's Office
El Centro, CA 92243 Category: Resolution
Prepared By: Cynthia De Zilwa
SCHEDULED Department Head: Marcela Piedra
RESOLUTION (ID # 5504) DOC ID: 5504
Resolution Approving the Partnership Site and Training
Agreement with Imperial Valley College Career Services
Center
CITY MANAGER’S RECOMMENDATION:

Adopt Resolution No. 22 - RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF EL CENTRO APPROVING THE PARTNERSHIP SITE AND TRAINING

AGREEMENT WITH IMPERIAL VALLEY COLLEGE - CAREER SERVICES CENTER FISCAL IMPACT:

No fiscal impact
STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

Goal #4 - Recreation & Lifelong Learning: Offer opportunities for recreation and lifelong learning through innovative, inclusive programming, parks and facilities that serve all residents and visitors.

Goal #6 - Economic Opportunity: Strengthen El Centro's resilience by diversifying the economy, recruiting new businesses, creating opportunities for business growth, retaining businesses, and maximizing efficiency.

Action 6.12 - Collaborate with community-based organizations and educational institutions to advance local workforce initiatives and provide resources, training's and services to ensure that academic and career pathway programs are reflective of local industry workforce needs.

DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTORS LICENSE, REFERENCE CHECKS, INSURANCE, ETC:

N/A
BACKGROUND:

In August 2018, the Imperial Valley College (IVC) Career Services Center reached out to City staff with the purpose of approving a Partnership Site and Training Agreement with the City of El Centro to become a learning site for IVC students. The City would serve as a site for the IVC Internship and Work Experience Program with the various divisions and departments.

On November 2018, during a regular City Council meeting, Resolution 18-92 was adopted approving the Partnership Site and Training Agreement with IVC.

DISCUSSION:
6 Packet Pg. 33
Resolution (ID # 5504) Meeting of June 7, 2022
The Internship and Work Experience Program (IWEP) is coordinated through the Career Services Center; they pair students with host professionals from business, government, and non-profit work environments. Students are exposed to real-world experiences by participating in daily workplace activities and learning how to navigate within workplace cultures.

An intern was placed in the Community Development Department from January 2019 to June 2019; the intern completed 185 hours.

The previous agreement expired on November 2021. IVC staff has reached out to City staff requesting a new agreement.

CONCLUSION:

Adopt Resolution No. 22 - RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF EL CENTRO APPROVING THE PARTNERSHIP SITE AND TRAINING

AGREEMENT WITH IMPERIAL VALLEY COLLEGE - CAREER SERVICES CENTER ATTACHMENTS:
• IVC Partnership and Training Agreement - Signed (PDF) • Resolution 22- (DOCX)
6 Packet Pg. 34

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Attachment: IVC Partnership and Training Agreement - Signed (5504 : Partnership Site and Training Agreement for Career Services with IVC)

6.a
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Attachment: IVC Partnership and Training Agreement - Signed (5504 : Partnership Site and Training Agreement for Career Services with IVC) 04/2022/liz/A22-0077/Reso/Agmnt/IVC-CareerServices
RESOLUTION NO. 22 -

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL

CENTRO APPROVING THE PARTNERSHIP SITE AND TRAINING

AGREEMENT WITH IMPERIAL VALLEY COLLEGE - CAREER

SERVICES CENTER
WHEREAS, the City of El Centro (the “City”) desires to enter into a partnership site and training agreement (the “agreement”) with Imperial Valley College (the “College”) for the purpose of providing a learning site for college students to obtain learning experiences; and WHEREAS, the City Council finds that the approval of the agreement with the College will be in the best interest of the City of El Centro, California.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL CENTRO, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

1. That the foregoing is true, correct and adopted.

2. That the City Council hereby approves the agreement with Imperial Valley College for the purpose of providing a learning site for college students to obtain learning experiences.

3. That the City Manager is hereby authorized to sign the agreement with the College.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of El Centro, California, held on 7th day of June, 2022.

CITY OF EL CENTRO
By__________________________
Tomas Oliva, Mayor
ATTEST:

By______________________________________
Norma Wyles, City Clerk
APPROVED AS TO FORM:

Office of the City Attorney
By______________________________________
Elizabeth L. Martyn, City Attorney

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Attachment: Resolution 22- (5504 : Partnership Site and Training Agreement for Career Services with IVC) 04/2022/liz/A22-0077/Reso/Agmnt/IVC-CareerServices

STATE OF CALIFORNIA )
COUNTY OF IMPERIAL ) ss

CITY OF EL CENTRO )
I, Norma Wyles, City Clerk of the City of El Centro, California, do hereby certify that the foregoing Resolution No. 22 - was duly and regularly adopted at a regular meeting of the City Council of the City of El Centro, California, held on the 7 th day of June, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

By
Norma Wyles, City Clerk

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Attachment: Resolution 22- (5504 : Partnership Site and Training Agreement for Career Services with IVC) City Council of the City of El Centro Meeting: 06/07/22 11:30 AM 1275 Main Street Department: Finance
El Centro, CA 92243 Category: Authorization
Prepared By: Karla Chaparro
SCHEDULED Department Head: Richard Romero
ACTION ITEM (ID # 5539) DOC ID: 5539
Approval of Transportation Development Act Program -
Claims
CITY MANAGER’S RECOMMENDATION:

Authorize the filing of the fiscal year 2021-2022 claims with Imperial County Transportation Commission (ICTC) for Public Transportation pursuant to:

2. Article 3 of the Public Utilities code for bicycle and pedestrian facilities in the amount of $37,061.

FISCAL IMPACT:

Receipt of Budgeted Revenue.

STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

Goal #1 Financial & Governance Stability & Sustainability DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTORS LICENSE, REFERENCE CHECKS, INSURANCE, ETC:

N/A
DISCUSSION:

The claims represent the City’s allocation of Transportation Development Act (TDA) Funds for Article 8(e) and Article (3) programs.

CONCLUSION:

Authorize filing of the claims to ICTC.

ATTACHMENTS:
• Article 3 Claim Form Blank FY 2022 (DOCX)
• Article 8e Claim Form Blank FY 2022 (DOCX)
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Article 3 FY 2021-22
C:\users\nwyles\appdata\roaming\iqm2\minutetraq\[email protected]\work\attachments\7605.docx 1

IMPERIAL COUNTY

TRANSPORTATION COMMISSION

TRANSPORTATION DEVELOPMENT ACT PROGRAM
INSTRUCTIONS FOR PREPARING ARTICLE 3

BICYCLE AND PEDESTRIAN FACILITIES CLAIMS
General Information
These instructions apply to the following program category:

Local Transportation Fund (LTF)
Article 3, PUC Sections 99233.3 and 99234, provide payments to cities and counties for facilities provided for the exclusive use by pedestrians and bicycles, including but not limited to: curbs, handicap access ramp projects, sidewalks, pedestrian ways, bikeways, bike racks and bicycle storage.

Forms Included in this Package
Checklist
Article 3 Non-Transit Claim form
Financial Reporting Form
Project Information Form
Sample Governing Body Resolution
Standard Statement of Assurances
Where and When to File
The projects should be consistent with the Regional Bicycle Plan, and approved by the ICTC Commission.

One signed original claim should be filed with the ICTC office:

Imperial County Transportation Commission
Attn: Michelle Bastidas
1503 N. Imperial Ave., Suite 104
El Centro, CA 92243
[email protected]
Phone: (760) 592-4494
Fax: (760) 592-4410

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Attachment: Article 3 Claim Form Blank FY 2022 (5539 : Transportation Development Act Program - Claims) Article 3 FY 2021-22
C:\users\nwyles\appdata\roaming\iqm2\minutetraq\[email protected]\work\attachments\7605.docx 2 INSTRUCTIONS FOR PREPARING ARTICLE 3

BICYCLE AND PEDESTRIAN FACILITIES CLAIMS

APPLICATION GUIDELINES

1. Claims are approved by ICTC for pedestrian and bicycle facilities according to a project priority list developed by the ICTC TAC Subcommittee. The Subcommittee will meet at least once a year, and will submit the project list to the ICTC Regional Council for final approval.

2. Claimants are encouraged to consider projects involving multiple government jurisdictions.

3. Prospective claimants seeking project approval for the coming fiscal year should submit project information to ICTC staff during the July-August time period.

4. Projects submitted must be consistent with the claimant’s adopted general plan or master plan for bikeways. Only projects included in such plans may be approved for funding.

5. Eligible projects are those that are ready for construction in the fiscal year that the allocation is approved.

6. Allocations for approved claims may be made for up to 100 percent of the project cost. However, the TAC Subcommittee may recommend only partial funding of projects.

7. Design and construction of facilities must conform to the general design criteria for non-motorized facilities as outlined in Caltrans’ Highway Design Manual.

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Attachment: Article 3 Claim Form Blank FY 2022 (5539 : Transportation Development Act Program - Claims) Article 3 FY 2021-22
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IMPERIAL COUNTY TRANSPORTATION COMMISSION
BICYCLE AND PEDESTRIAN FACILITIES CLAIMS (ARTICLE 3)
Claimant Information
Agency Name: City of El Centro Date: May 16, 2022
Contact Person: Karla Chaparro Fiscal Year: 2021/2022
Address: 1275 W Main Street
El Centro, CA 92243
This claim is  Original  Revised
Phone: (760) 337-4550
Fax: (760) 337-4564
Email: [email protected]
Please fill out the table below, checking those items that are being submitted with this claim application.

Checklist for TDA Claims
Item
Enclosed Items Included with Claim Application
x Article 3 Non-Transit Claim Form
x Financial Reporting Form
x Project Information Form
x Statement of Assurances
x Governing Body Resolution
x Annual Certified Fiscal Audit (180 Day Report)
n/a Map of Locations

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Attachment: Article 3 Claim Form Blank FY 2022 (5539 : Transportation Development Act Program - Claims) Article 3 FY 2021-22
C:\users\nwyles\appdata\roaming\iqm2\minutetraq\[email protected]\work\attachments\7605.docx 4

IMPERIAL COUNTY TRANSPORTATION COMMISSION
BICYCLE AND PEDESTRIAN FACILITIES CLAIMS (ARTICLE 3)
Payment Recipient: City of El Centro
Address: P.O. Box 2069
El Centro, CA 92243
Attention (Name and Title): Richard Romero
Director of Finance
Requested Payment and Reserves
Detail of Requested Allocation Amount
Payment from Unallocated Funds $ 37,061
Drawdown of funds from reserves (if any) $ 0
TOTAL PAYMENTS REQUESTED $ 37,061
Reserve for Future Payment $ 0
Condition of Approval:

Authorizing Signature (blue ink)
(Claimant’s Chief Administrator or Chief Financial Officer.) Richard L. Romero, Director of Finance
(Print Name and Title)
DATE APPROVED: ALLOCATION:

Approval of this claim and
payment by the County
Auditor to this claimant are
subject to monies being
available and to the provisions
that such monies will be used
only in accordance with the
allocation instructions.

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Attachment: Article 3 Claim Form Blank FY 2022 (5539 : Transportation Development Act Program - Claims) Article 3 FY 2021-22
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IMPERIAL COUNTY TRANSPORTATION COMMISSION
BICYCLE AND PEDESTRIAN FACILITIES CLAIMS (ARTICLE 3)

PROJECT INFORMATION FORM
CLAIMANT _ City of El Centro______ FISCAL YEAR 2021/2022__ PROJECT NAME ________________________________
PROJECT TYPE __________________ ____________
ESTIMATED START DATE ____________________ ___
ESTIMATED COMPLETION DATE __________ _______
Project Budget
Project Budget Amount
Revenue $ 37,061
LTF Article 3 $ 0
LTF Article 8 $ 0
Other $ 0
TOTAL PROJECT REVENUES $ 37,061

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Attachment: Article 3 Claim Form Blank FY 2022 (5539 : Transportation Development Act Program - Claims) Article 3 FY 2021-22
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IMPERIAL COUNTY TRANSPORTATION COMMISSION
BICYCLE AND PEDESTRIAN FACILITIES CLAIMS (ARTICLE 3)

FINANCIAL REPORTING FORM
CLAIMANT __City of El Centro___
Financial Data Estimated or
Actual
Current
Fiscal Year
2020-21
Proposed
Fiscal Year
2021-22
Fund Balance

1. Beginning of the Fiscal Year $ 197,959 $ 222,209
Revenues

2. Intergovernmental Allocations $ 23,000 $ 37,061

3. Interest $ 1,250 $ 500

4. Refunds $ 0 $ 0

5. Total $ 24,250 $ 37,561
Expenditures

6. Construction/Maintenance $ 0 $ 0

7. Excess (Deficiency) of Revenue over
expenditures
(Subtract Line 5 from Line 4)
$ 0 $ 0
Fund Balance

8. End of year $ 222,209 $ 259,770

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Attachment: Article 3 Claim Form Blank FY 2022 (5539 : Transportation Development Act Program - Claims) Article 3 FY 2021-22
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SAMPLE RESOLUTION
Resolution No.______________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
___________________________________APPROVING THE APPLICATION FOR

BICYCLE AND/OR PEDESTRIAN FUNDS UNDER THE TRANSPORTATION

DEVELOPMENT ACT AND APPROVING THE ADOPTION OF ITS BICYCLE AND/OR PEDESTRIAN PLAN.

Whereas, The Transportation Development Act provides that 2 percent of each county’s total Local Transportation Fund be annually set aside and used to find the development of bicycle and pedestrian facilities; and
Whereas, the City of ________________________________has planned a bikeway system in conformance with specifications of Caltrans’ Planning and Design Criteria for Bikeways in California, and the Regional Transportation Plan; and Whereas, the City of _______________________________desires to construct this project within their city using the funds available under the Transportation Development Act.

Now Therefore, the City Council of the City of _________________________ does resolve as follows:

1. To authorize _________________________as the City’s authorized signature and designated contact person;

2. To apply for funds available to the City of _____________________ Allocated for Bikeways and Pedestrian facilities.

Passed and Adopted the _____Day of _____________,202_.
_________________________

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Attachment: Article 3 Claim Form Blank FY 2022 (5539 : Transportation Development Act Program - Claims) Article 3 FY 2021-22
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IMPERIAL COUNTY TRANSPORTATION COMMISSION
BICYCLE AND PEDESTRIAN FACILITIES CLAIMS (ARTICLE 3)

STATEMENT OF ASSURANCES

Page 1 ends

Please Check
Applicable Boxes
[ X ] 1. 180 Day Certified Fiscal Audit (required for all claims) A satisfactory, independent audit has been submitted to ICTC and the State Controller not more than 180 days after the end of the prior fiscal year. [ ] 2. 90 Day Annual State Controller Report (transit claims) This report has been submitted to the State Controller not more than 120 days after the end of the prior fiscal year. (Also called the Annual Report of Financial Transaction of Transit Operators.)
[ ] 3. Elderly/Disabled (transit claims)
Transit operator offers reduced fares for elderly and disabled persons in accordance with PUC Section 99155, and Section 99155.5 pertaining to diala-ride and paratransit services. [ ] 4. Farebox Recovery Ratio Requirements (transit claims) Transit operator certifies it will maintain the required ratio of fare revenues and local support to operating cost, according to PUC Section 99268. [ ] 5. Implementation of Productivity Improvements (transit claims) Operator has made a reasonable effort to implement the annual productivity improvement recommendations provided by ICTC.
[ ] 6. California Highway Patrol (CHP) Certifications (transit claims) Section 1808.1 of the Vehicle Code requires operators to participate in a pull notice system for obtaining current driver records from the Department of Motor Vehicles. Claimant/operator must be certified by the CHP within the last 13 months to be in compliance with this mandate.
[ X ] 7. Conformance with Regional Transportation Plan (STA, transit, street and road, bicycle/pedestrian claims) Claimant certifies that all of the purposes for claim expenditures are in conformance with the local applicable Regional Transportation Plan.

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Attachment: Article 3 Claim Form Blank FY 2022 (5539 : Transportation Development Act Program - Claims) Article 3 FY 2021-22
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IMPERIAL COUNTY TRANSPORTATION COMMISSION
BICYCLE AND PEDESTRIAN FACILITIES CLAIMS (ARTICLE 3)

STATEMENT OF ASSURANCES

Page 2 ends

[ ] 8. Full Use of Federal Funds (STA only)
Claimant certifies that it is making full use of federal funds available under the Federal Transit Act, as required by California Code of Regulations, Section 6754. [ ] 9. Efficiency Standards (STA only)
Operator certifies it is meeting one of the following two efficiency standards:

Standard 1: The annual increase in the operator’s total operating cost per revenue vehicle hour does not exceed the average cost per revenue vehicle hour s in the preceding three years increased by the Consumer Price Index (CPI).

Standard 2: The operator’s average operating cost per vehicle revenue hour over the most current three fiscal years does not exceed the average cost per vehicle revenue hour in the preceding three years and increased by the CPI. [ ] 10. Operating Budget (Article 4 claims only)
Claimant certifies that its operating budget is not more than 15% greater than its previous year budget unless supported by documentation that substantiates such change.
[ ] 11. Triennial Performance Audit (Article 4 claims required, for other claims it is voluntary, PUC Section 99248.)
Claimant certifies that it has submitted the Triennial Performance Audit report to ICTC on a triennial basis.
[ ] 12. Drug and Alcohol Free Workplace Requirements
Claimant is in compliance with the requirements of the Federal Transit Administration (FTA) and/or Federal Highway Administration (FHWA) Drug and Alcohol Testing rules, and provides a drug and alcohol free workplace. [ X ] 13. Americans with Disabilities Act (ADA)
Claimant certifies that it complies with the Americans with Disabilities Act (ADA) which includes the following provisions:

1. Prohibits discrimination against the disabled in hiring and employment;

2. Prohibits discrimination in public transportation and requires public transit systems to provide the same level of public transportation service to individuals with disabilities as to those without disabilities using the same system;

3. Prohibits discrimination against the disabled in public accommodations and in commercial facilities.

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Attachment: Article 3 Claim Form Blank FY 2022 (5539 : Transportation Development Act Program - Claims) Article 3 FY 2021-22
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IMPERIAL COUNTY TRANSPORTATION COMMISSION
BICYCLE AND PEDESTRIAN FACILITIES CLAIMS (ARTICLE 3)

STATEMENT OF ASSURANCES

Page 3 ends

[ ] 14. Part-Time Drivers
The transit operator is not precluded by any contract entered into after June 1979 from employing a part-time driver or from contracting with common carriers of persons operating under a franchise or license. [ ] 15. Consistency with Bicycle Plan (bicycle claims only) Claimant certifies that all of the purposes for claim expenditures are in conformance with the Agency’s Countywide Bicycle Master Plan.

Claimant Authorizing Signature__________________________________

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Attachment: Article 3 Claim Form Blank FY 2022 (5539 : Transportation Development Act Program - Claims) Article 8 (e) FY 2021-22
C:\users\nwyles\appdata\roaming\iqm2\minutetraq\[email protected]\work\attachments\7606.docx 1

IMPERIAL COUNTY

TRANSPORTATION COMMISSION

TRANSPORTATION DEVELOPMENT ACT PROGRAM
INSTRUCTIONS FOR PREPARING ARTICLE 8 (e)

CAPITAL ASSISTANCE CLAIMS
General Information
These instructions apply to the following program categories:

Local Transportation Fund (LTF)
Article 8, PUC Section 99400e, for capital expenditures to acquire vehicles and related equipment, bus shelters, benches, and communication equipment.

State Transit Assistance Fund (STA)
Article 6.5, PUC Section 99315, for payments for transit services for claimants eligible to receive Article 8 funds, and meeting public transportation needs.

Forms Included in this Package
Article 8 Claim form
Sample Governing Body Resolution
Financial Reporting forms (Schedules A and B)
Justification Statements
Standard Statement of Assurances
Copy of Current Contract/Cooperative Agreement
Proposed Commitment Statement
Where to File
One signed original claim should be filed with the ICTC office:

Imperial County Transportation Commission
Attn: Michelle Bastidas
1503 N. Imperial Ave., Suite 104
El Centro, CA 92243
[email protected]
Phone: (760) 592-4494
Fax: (760) 592-4410

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Attachment: Article 8e Claim Form Blank FY 2022 (5539 : Transportation Development Act Program - Claims) Article 8 (e) FY 2021-22
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IMPERIAL COUNTY TRANSPORTATION COMMISSION
TDA CAPITAL ASSISTANCE CLAIM FORM (ARTICLE 8 e)

Page 1 ends

Claimant Information
Agency Name: City of El Centro Date: May 17, 2022
Contact Person: Karla Chaparro Fiscal Year: 2021/2022
Address: 1275 W Main Street This claim is [ ] Original [ ] Revised El Centro, CA 92243 Phone: (760) 337-4550
Fax: (760) 337-4564
Email: [email protected]
Please fill out the table below, checking those items that are being submitted with this claim application.

Checklist of Required Items
Checklist for TDA Claims
x Project Delivery Schedule
x 180 Day Certified Fiscal Audit
x Proposed Commitment Statement
n/a Copy of Current Contract/Cooperative Agreement
n/a Justification Statements
x Statement of Assurances
x Financial Reporting Forms (Schedule A & B)
x Governing Body Resolution
x Article 8 (e) Claim Form
Items Included with Claim Application
Item
Enclosed

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Attachment: Article 8e Claim Form Blank FY 2022 (5539 : Transportation Development Act Program - Claims) Article 8 (e) FY 2021-22
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IMPERIAL COUNTY TRANSPORTATION COMMISSION
TDA CAPITAL ASSISTANCE CLAIM FORM (ARTICLE 8 e)

Page 2 ends

Payment Recipient
Payment Recipient: City of El Centro
Address: P.O. Box 2069
El Centro, CA 92244
Attention (Name and Title): Richard Romero
Director of Finance
Requested Payment and Reserves
Purpose Requested Payment and Reserves Amount
Article 8 (e) Payment from Unallocated-Capital
(from page 3, line 6)
$ 88,620
Drawdown from Reserves -Capital
(from page 3, line 12)
$ 0
TOTAL PAYMENTS REQUESTED $ 88,620
Reserve for Future Payment
(from page 3, line 18)
$ 0
Condition of Approval:

Authorizing Signature (blue ink)
(Claimant’s Chief Administrator or Chief Financial Officer) Richard L. Romero, Director of Finance
(Print Name and Title)
DATE APPROVED: ALLOCATION:

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Attachment: Article 8e Claim Form Blank FY 2022 (5539 : Transportation Development Act Program - Claims) Article 8 (e) FY 2021-22
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IMPERIAL COUNTY TRANSPORTATION COMMISSION
TDA CAPITAL ASSISTANCE CLAIM FORM (ARTICLE 8 e)

Page 3 ends

Detail of Requested Capital Payments and Reserves
(Use additional sheets if necessary)
Note that some projects must be included in the Regional Transportation Improvement Program (RTIP)
Payments from Unallocated—Capital
Project Description
TDA Amount Date Required
1 El Centro 7th/State Transfer Terminal $ 45,000 05/20/2022 2 EC Regional Bus Stop Maintenance $ 25,000 05/20/2022
3 LTF Distribution – Bust Shelters $ 18,620 05/20/2022
4 $
5 $
6 TOTAL (Enter on Page 2) $ 88,620
Drawdown from Reserves—Capital Project
Description
TDA Amount Date Required
7 $ N/A
8 $
9 $
10 $
11 $
12 TOTAL (Enter on Page 2) $ 0
Reserve for Future Payment—Capital
Project Description
TDA Amount Date of Expected
Drawdown
13 $
N/A
14 $
15 $
16 $
17 $
18 TOTAL (Enter on Page 2) $ 0

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Attachment: Article 8e Claim Form Blank FY 2022 (5539 : Transportation Development Act Program - Claims) Article 8 (e) FY 2021-22
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SAMPLE RESOLUTION
Resolution No.______________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
___________________________________APPROVING THE ARTICLE 8 APPLICATION FOR ______________________PURPOSES UNDER
THE TRANSPORTATION DEVELOPMENT ACT (SB 325), PUC 99400.

Whereas, The Transportation Development Act (SB 325) provides that each Transportation Planning Agency may allocate funds to specific transit purposes; Whereas, the City of _____________________has recognized the need for ___________________________________.

Now Therefore, the City Council of the City of _________________________ Does resolve as follows:

1. To authorize _________________________as the City’s authorized signature and designated contact person;

2. To apply for funds available to the City of _____________________ allocated for ____________________________________________ in the amount of $ ___________________.

AND/OR

3. To apply for funds available to the City of ______________________ Allocated for ICTC Transit Services in the amount of $____________.

Passed and Adopted the _____Day of _____________,202_.
_________________________
Mayor, City of______________
ATTEST:_______________________
City Clerk of the City of __________________________.

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Attachment: Article 8e Claim Form Blank FY 2022 (5539 : Transportation Development Act Program - Claims) Article 8 (e) FY 2021-22
C:\users\nwyles\appdata\roaming\iqm2\minutetraq\[email protected]\work\attachments\7606.docx 6 Schedule A

IMPERIAL COUNTY TRANSPORTATION COMMISSION

CAPITAL ASSISTANCE CLAIM FORM

Page 1 ends

CLAIMANT: _____City of El Centro_______ DATE: ___May 17, 2022____ Sources of Capital Assistance
(Not including LTF or STA)
Estimated or
Actual
Current Fiscal
Year
2020-21
Proposed
Fiscal Year
2021-22

FEDERAL CAPITAL GRANTS

1. FTA Section 3 Grants

2. FTA Section 9 Grants

3. FTA Section 16B2

4. FTA Section 18 Grants

5. Federal Aid Urban Grants

6. Federal Aid Interstate

7. Other Federal Grants

8. Revenue Sharing Passthrough

STATE CAPTIAL GRANTS AND

SUBVENTIONS

9. Transportation Fund-Guideways

10. State General Fund Provisions

11. Other State Provisions

LOCAL CAPITAL GRANTS AND

PROVISIONS

13. Sales Tax

14. Motor Vehicle Fuel Taxes

15. Property Taxes

16. General Fund

17. Other Local Sources $ 90,136 $ 89,160
TOTAL (Sum Lines 1-17) $ 90,136 $ 89,160

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Attachment: Article 8e Claim Form Blank FY 2022 (5539 : Transportation Development Act Program - Claims) Article 8 (e) FY 2021-22
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IMPERIAL COUNTY TRANSPORTATION COMMISSION

CAPITAL ASSISTANCE CLAIM FORM

Page 2 ends

Capital Outlay and
Debt Reductions
Estimated or
Actual
Current Fiscal
Year
2020-21
Proposed
Fiscal Year
2021-22

22. Revenue Vehicles—Expansion

23. Revenue Vehicles—Replacement

24. Service Vehicles

25. Buildings and Structures
$ 128,873 $ 179,300

26. Equipment

27. Office Equipment and Furnishings

28. Land

29. Debt Reduction
TOTAL (Sum of Lines 22-29) $ 128,873 $ 179,300

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Attachment: Article 8e Claim Form Blank FY 2022 (5539 : Transportation Development Act Program - Claims) Article 8 (e) FY 2021-22
C:\users\nwyles\appdata\roaming\iqm2\minutetraq\[email protected]\work\attachments\7606.docx 8 Schedule B

IMPERIAL COUNTY TRANSPORTATION COMMISSION

CAPITAL ASSISTANCE CLAIM FORM

Page 1 ends

CLAIMANT: ______City of El Centro_______
TDA Capital Assistance
Required
Estimated or
Actual
Current Fiscal
Year
2020-21
Proposed
Fiscal Year
2021-22

4.Total Capital Outlay & Debt Reduction
(From Schedule A, Line 30)
$ 128,873 $ 179,300

2. Subtract Capital Assistance Net of LTF,
STA (From Schedule A, Line 20)
$ 90,136 $ 89,160

3. Total Capital Assistance Required
(Line 1, Less Line 2)
$ 38,737 $ 90,140

4. TDA Capital Assistance Claimed
$ 38,737 $ 90,140

5. TDA Capital Excess Carryover from Prior
Year (s)
$ 277,191 $ 261,245

6. STA Current Payments from
Uncommitted Funds—Capital
$ 0 $ 0

7. LTF Current Payments from Unallocated
Funds--Capital
$ 0 $ 0

8. STA Current Payments from Committed
Funds—Capital
$ 0 $ 0

9. LTF Current Payments From Reserves--
Capital
$ 0 $ 0

10. Total Capital Assistance
(Total of Lines 5,6,7,8,9) $ 277,191 $ 261,245

11.Capital Excess (Line 10, Less Line 4)
(Transfer to Line 5 for Succeeding Year.) $ 261,245 $ 171,105 Note: Fill in information for the projects included in Line 11 on the next page.

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Attachment: Article 8e Claim Form Blank FY 2022 (5539 : Transportation Development Act Program - Claims) Article 8 (e) FY 2021-22
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IMPERIAL COUNTY TRANSPORTATION COMMISSION

CAPITAL ASSISTANCE CLAIM FORM

Page 2 ends

List of Capital Projects
Project Title Federal
Grant
Number
RTP Number
(A-95)
Estimated
Project
Cost
Source of Funds
LTF STA Federal

N/A N/A N/A N/A N/A N/A N/A
TOTAL* $ $ $ $ $ $
Total on this page must equal Line 11 of Schedule B on prior page.

Capital Projects include Park-and-Ride facilities, operations/maintenance facilities, terminal facilities, exclusive lanes for buses, and the acquisition of vehicles and rolling stock.

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Attachment: Article 8e Claim Form Blank FY 2022 (5539 : Transportation Development Act Program - Article 8 (e) FY 2021-22
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IMPERIAL COUNTY TRANSPORTATION COMMISSION

CAPITAL ASSISTANCE CLAIM FORM

Page 3 ends

PROJECT PHASES AND SCHEDULE
Project Title Project
Phase
Expected
Completion
Date
RTP Number
(A-95)
Estimated Project
Cost

N/A N/A N/A N/A N/A

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Attachment: Article 8e Claim Form Blank FY 2022 (5539 : Transportation Development Act Program - Article 8 (e) FY 2021-22
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11 IMPERIAL COUNTY TRANSPORTATION COMMISSION

CAPITAL ASSISTANCE CLAIM FORM

PROPOSED COMMITMENT STATEMENT
(When requesting that funds be reserved for long-term capital projects, the claim must include a description of the project. The description from ICTC’s Short Range Transit Plan will meet this requirement.)

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Attachment: Article 8e Claim Form Blank FY 2022 (5539 : Transportation Development Act Program - Claims) Article 8 (e) FY 2021-22
C:\users\nwyles\appdata\roaming\iqm2\minutetraq\[email protected]\work\attachments\7606. docx
12 IMPERIAL COUNTY TRANSPORTATION COMMISSION
TDA CAPITAL ASSISTANCE CLAIM FORM (ARTICLE 8 e)

STATEMENT OF ASSURANCES

Page 1 ends

Please Check
Applicable Boxes
[ X ] 1. 180 Day Certified Fiscal Audit (required for all claims) A satisfactory, independent audit has been submitted to ICTC and the State Controller not more than 180 days after the end of the prior fiscal year.
[ X ] 2. 90 Day Annual State Controller Report (transit claims) This report has been submitted to the State Controller not more than 120 days after the end of the prior fiscal year. (Also called the Annual Report of Financial Transactions of Transit Operators.)
[ ] 3. Elderly/Disabled (transit claims)
Transit operator offers reduced fares for elderly and disabled persons in accordance with PUC Section 99155, and Section 99155.5 pertaining to dial-a-ride and paratransit services.
[ ] 4. Farebox Recovery Ratio Requirements (transit claims) Transit operator certifies it will maintain the required ratio of fare revenues and local support to operating cost, according to PUC Section 99268.
[ ] 5. Implementation of Productivity Improvements (transit claims) Operator has made a reasonable effort to implement the annual productivity improvement recommendations provided by ICTC. [ ] 6. California Highway Patrol (CHP) Certifications (transit claims Section 1808.1 of the Vehicle Code requires operators to participate in pull notice system for obtaining current driver records from the Department of Motor Vehicles. Claimant/operator must be certified by the CHP within the last 13 months to be in compliance with this mandate. [ ] 7. Conformance with Regional Transportation Plan (STA, transit, street and road, bicycle/pedestrian claims) Claimant certifies that all of the purposes for claim expenditures are in conformance with the local applicable Regional Transportation Plan.

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Attachment: Article 8e Claim Form Blank FY 2022 (5539 : Transportation Development Act Program - Claims) Article 8 (e) FY 2021-22
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13 IMPERIAL COUNTY TRANSPORTATION COMMISSION
TDA CAPITAL ASSISTANCE CLAIM FORM (ARTICLE 8 e)

STATEMENT OF ASSURANCES

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[ ] 8. Full Use of Federal Funds (STA only)
Claimant certifies that it is making full use of federal funds available under the Federal Transit Act, as required by California Code of Regulations, Section 6754.
[ ] 9. Efficiency Standards (STA only)
Operator certifies it is meeting one of the following two efficiency standards:

Standard 2: The operator’s average operating cost per vehicle revenue hour over the most current three fiscal years does not exceed the average cost per vehicle revenue hour in the preceding three years and increased by the CPI.
[ ] 10. Operating Budget (Article 4 claims only)
Claimant certifies that its operating budget is not more than 15% greater than its previous year budget unless supported by documentation that substantiates such change.
[ ] 11. Triennial Performance Audit (Article 4 claims required, for other claims it is voluntary, PUC Section 99248.)
Claimant certifies that it has submitted the Triennial Performance Audit report to ICTC on a triennial basis.
[ ] 12. Drug and Alcohol Free Workplace Requirements
Claimant is in compliance with the requirements of the Federal Transit Administration (FTA) and/or Federal Highway Administration (FHWA) Drug and Alcohol Testing rules, and provides a drug and alcohol free workplace.
[ X ] 13. Americans with Disabilities Act (ADA)
Claimant certifies that it complies with the Americans with Disabilities Act (ADA) which includes the following provisions:

1. Prohibits discrimination against the disabled in hiring and employment;

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Attachment: Article 8e Claim Form Blank FY 2022 (5539 : Transportation Development Act Program - Claims) Article 8 (e) FY 2021-22
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14 IMPERIAL COUNTY TRANSPORTATION COMMISSION
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STATEMENT OF ASSURANCES

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3. Prohibits discrimination against the disabled in public accommodations and in commercial facilities.
[ ] 14. Part-Time Drivers
The transit operator is not precluded by any contract entered into after June 1979 from employing a part-time driver or from contracting with common carriers of persons operating under a franchise or license. [ ] 15. Consistency with Bicycle Plan (bicycle claims only) Claimant certifies that all of the purposes for claim expenditures are in conformance with the Agency’s Countywide Bicycle Master Plan.

AUTHORIZED CLAIMANT SIGNATURE _____________________________

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Attachment: Article 8e Claim Form Blank FY 2022 (5539 : Transportation Development Act Program - Claims) City Council of the City of El Centro Meeting: 06/07/22 11:30 AM 1275 Main Street Department: Engineering Division
El Centro, CA 92243 Category: Resolution
Prepared By: Felix De Leon
SCHEDULED Department Head: Abraham Campos
RESOLUTION (ID # 5549) DOC ID: 5549
Discussion and any necessary action regarding the approval of a project list to receive SB1 funding for FY 22-23
CITY MANAGER’S RECOMMENDATION:

Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CENTRO ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2022-2023 TO BE FUNDED BY SB 1: THE ROAD REPAIR

AND ACCOUNTABILITY ACT
FISCAL IMPACT:

No impact to the General Fund. $1,025,691 is expected to be received from the State of California as part of the Road Maintenance and Rehabilitation Account (RMRA) STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

Goal 2 - Environmental Sustainability & Infrastructure - Action 2.4 Coordinate with the City of Imperial for Improvements on Shared Roadways
DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTORS LICENSE, REFERENCE CHECKS, INSURANCE, ETC:

N/A
BACKGROUND:

Senate Bill 1 (SB 1) the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 in order to address the significant multi-modal transportation funding shortfalls statewide.

SB1 includes accountability, and transparency provisions that will ensure the residents of the City of El Centro are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year. As part of this transparency effort, the City must provide a list of all projects proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project's completion and the estimated useful life of the improvement.

This is the Sixth year the City of El Centro will be receiving SB1 RMRA funding.

In FY 2017-2018, City Council authorized $255,000 to be used to supplement existing funding in support of the La Brucherie Avenue Widening project between Orange Avenue and Commercial Ave.

In FY 2018-2019, City Council authorized $757,701 to be used to supplement existing funding for road maintenance activities, specifically including:

1. Ross Avenue, between Dogwood Avenue and the Alder Canal (east city limit), 8 Packet Pg. 64
Resolution (ID # 5549) Meeting of June 7, 2022
and

2. La Brucherie Avenue between Adams Avenue and Villa Avenue In FY 2019-2020, City Council authorized $766,589 to be used to supplement existing funding for road maintenance activities, specifically including:

1. North Eight Street, between Adams Avenue and Oleander Avenue.

In FY 2020-2021 City Council authorized $873,479, in FY 20/21, to supplement road construction activities, specifically including:

1. South Imperial Avenue Extension - Phase I
In FY 2021-2022 City Council authorized $$903,903, in FY 20/21, to supplement road maintenance activities, specifically including:

1. Ross Avenue Rehabilitation and Maintenance from 8th Street to 4th Street and from La Brucherie Ave. to Imperial Ave.

2. Euclid Avenue Rehabilitation and Maintenance from La Brucherie Avenue to Imperial Avenue and from 4th Street to 5th Street.

DISCUSSION:

The RMRA funding can be used for:
- Road maintenance and rehabilitation.
- Safety Projects.
- Railroad grade separations.
- Traffic control devices.
- Complete street components
The funding may be used to supplement funding or fully fund any eligible project.

Staff proposes to assign the anticipated RMRA funding of $1,025,691 in FY 22/23, to supplement road maintenance activities, specifically including:

1. La Brucherie Ave. Widening from Cruickshank Dr. to North City Limits.

Staff has been in communication with the City of Imperial in regards to the City of Imperial's segment of La Brucherie Ave., and will continue communications for the design and construction of both projects.

CONCLUSION:

Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CENTRO ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2022-2023 TO BE FUNDED BY SB 1: THE ROAD REPAIR

AND ACCOUNTABILITY ACT
ATTACHMENTS:
• Resolution 22- (PDF)
• California City Finance Projected SB1RMRA FY22-23 (PDF) 8 Packet Pg. 65
RESOLUTION NO. 22-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL

CENTRO ADOPTING A LIST OF PROJECTS FOR FISCAL
YEAR 2022-2023 TO BE FUNDED BY SB 1: THE ROAD REPAIR AND

ACCOUNTABILITY ACT
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and signed into law by the Governor in April 2017 in order to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of the City of El Centro (City) are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, in the City budget the City must include a list of all projects proposed to receive funding from SB 1, including a description and the location of each proposed project, a proposed schedule for the project's completion, and the estimated useful life of the improvement; and WHEREAS, the City will receive an estimated $1,025,691.00 in funding in Fiscal Year 2022-23 from SB 1; and
WHEREAS, this isthe sixth year in which the City of El Centro is receiving SB 1 funding and such funding will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1;
WHEREAS, the City has undergone a robust public process to ensure public input into our community’s transportation priorities/project list; and WHEREAS, the City uses a Pavement Management System to develop project lists, including the SB 1 project list, to ensure revenues are being used on the most high-priority and cost effective projects that also meet the communities' priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate the projects listed in this resolution, including adding active transportation infrastructure where feasible throughout the City and continuing similar projects into the future; and
WHEREAS, the 2020 California Statewide Local Streets and Roads Needs Assessment found that the overall Imperial County streets and roads are in an "at-risk" condition; and WHEREAS, the City's Pavement Management System found that the City's streets and roads are in an "good" condition and this revenue will help the City maintain the overall quality of our road system and over the next decade will assist in the effort to maintain our streets and roads in the "good" condition category; and
WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive benefits statewide; and
05/2022/liz/A22-0094/Reso-SB1Projects FY22-23

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Attachment: Resolution 22- (5549 : SB1 RMRA Project List FY 22/23) 05/2022/liz/A22-0094/Reso-SB1Projects FY22-23

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL CENTRO, CALIFONRIA, DOES HEREBY RESOLVE AS FOLLOWS:

1. That the foregoing is true, correct and adopted.

2. The fiscal year 2022-23 list of projects planned to be funded with Road Maintenance and Rehabilitation Account revenues include:

LOCATION /

DESCRIPTION

FROM TO USEFUL
LIFE

YEAR OF

CONSTRUCTION

ESTIMATED

PROJECT

SCHEDULE

LA BRUCHERIE
AVE. WIDENING

CRUICKSHANK
DR.

NORTH
CITY
LIMITS
25 YRS. 2023 BEGINS 3/23
ENDS 9/23
PASSED AND ADOPTED at a regular meeting of the City Council of the City of El Centro, California held on the day of , 2022.

CITY OF EL CENTRO

By ___________________________
Tomas Oliva, Mayor
ATTEST:

By _____________________________
Norma Wyles, City Clerk
APPROVED AS TO FORM:

Office of the City Attorney
By ______________________________
Elizabeth L. Martyn, City Attorney

STATE OF CALIFORNIA )
COUNTY OF IMPERIAL ) ss

CITY OF EL CENTRO )
I, Norma Wyles, City Clerk of the City of El Centro, California, do hereby certify that the foregoing Resolution No. 22 - was duly and regularly adopted a regular meeting of the City Council of the City of El Centro, California, held on the day of 2022 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

By __________________________
Norma Wyles, City Clerk

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Attachment: Resolution 22- (5549 : SB1 RMRA Project List FY 22/23) Local Streets and Roads - Projected Revenue
s
2021-22 2022-23
Estimated January 2022 Hwy Users Ta
x Road Mntnc TOTAL Hwy Users Ta
x Road Mntnc TOTAL
Account Rehab Acct Account Rehab Acct
HUMBOLDT COUNTYARCATA 356,897 463,808 820,705 515,953 392,775 908,728BLUE LAKE 26,139 39,125 65,264 42,944 28,767 71,711 EUREKA 563,194 728,816 1,292,010 811,101 619,810 1,430,911FERNDALE 28,397 42,003 70,400 46,152 31,251 77,404 FORTUNA 247,017 322,723 569,740 358,813 271,849 630,662RIO DEL L 69,760 94,737 164,496 104,929 76,772 181,701

TRINIDA
D 7,601 15,491 23,093 16,602 8,366 24,967
Count
y of Humboldt 5,453,659 5,799,100 11,252,759 6,478,761 6,001,899 12,480,660 Total Cities & Count
y: Humboldt 6,752,664 7,505,803 14,258,467 7,505,803 6,752,664 14,258,467 IMPERIAL COUNTYBRAWLEY 565,990 716,044 1,282,033 797,224 622,887 1,420,111CALEXICO 838,546 1,055,658 1,894,204 1,175,931 922,842 2,098,773CALIPATRIA 159,590 205,655 365,244 228,545 175,633 404,178EL CENTRO 932,000 1,172,106 2,104,106 1,305,783 1,025,691 2,331,474HOLTVILLE 129,163 167,742 296,905 186,268 142,148 328,415IMPERIA L 420,236 532,429 952,665 592,704 462,481 1,055,184
WESTMORLAND 47,742 65,289 113,031 72,136 52,542 124,678Count y of Im
perial 10,045,581 9,581,953 19,627,534 10,705,788 11,055,432 21,761,220 Total Cities & Count
y: Im
perial 13,138,848 13,496,875 26,635,723 13,496,875 13,138,848 26,635,723 INYO COUNTYBISHOP 81,276 107,894 189,170 119,628 89,446 209,074Count y of In
y
o 3,319,593 3,314,807 6,634,400 3,630,194 3,653,301 7,283,495 Total Cit
y & Count
y: In
y
o 3,400,869 3,422,701 6,823,570 3,422,701 3,400,869 6,823,570 January 2022 CaliforniaCityFinance.com Page 4 of 21

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Attachment: California City Finance Projected SB1RMRA FY22-23 (5549 : SB1 RMRA Project List FY City Council of the City of El Centro Meeting: 06/07/22 11:30 AM 1275 Main Street Department: Human Resources
El Centro, CA 92243 Category: Amendment
Prepared By: Dulce Bedolla
SCHEDULED Department Head: Dulce Bedolla
ACTION ITEM (ID # 5550) DOC ID: 5550
Amended Consulting Agreement for Labor Negotiation
Services
CITY MANAGER’S RECOMMENDATION:

Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL

CENTRO APPROVING AN AMENDED CONSULTING AGREEMENT FOR LABOR

NEGOTIATION SERVICES
FISCAL IMPACT:

Amended agreement is in the amount of an additional $25,000.

STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTORS LICENSE, REFERENCE CHECKS, INSURANCE, ETC:

BACKGROUND:

With the agreement of Council, the City entered into an agreement with Patrick Clark Consulting, Inc. to provide labor negotiation services to the City for all of its bargaining units. Such agreement was signed by the City Manager, with an anticipated expenditure of up to $50,000 and within her signature authority.

DISCUSSION:

Given a number of issues which arose during bargaining, it is necessary to amend the agreement for services in the amount of an additional $25,000. Contract should not exceed at total of $75,000. The amended agreement will provide for the completion of pending bargaining and review of resulting MOU's.

CONCLUSION:

Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF EL CENTRO APPROVING AN AMENDED CONSULTING AGREEMENT FOR

LABOR NEGOTIATION SERVICES
ATTACHMENTS:
• EC - Patrick Clark - Amendment No. 1_ (PDF)
• Original Contract (PDF)
• Resolution 22- (PDF)
9 Packet Pg. 69
AMENDMENT NO. 1 TO AGREEMENT FOR CONSULTANT SERVICES BETWEEN

THE CITY OF EL CENTRO
AND

PATRICK CLARK CONSULTING

THIS FIRST AMENDMENT TO AGREEMENT FOR CONSULTANT SERVICES (“Amendment”) is made by and between Patrick Clark Consulting hereinafter, (“Consultant”) and the CITY OF EL CENTRO (“City”), and collectively referred to as (“Parties”) and shall be effective as of May 1, 2022 for the purpose of amending the Professional Services Agreement (“Original Agreement”), between the Parties signed July 19, 2021 for labor relations services program/services.

WHEREAS, on July 19, 2021, the Parties entered into the Original Agreement with Patrick Clark Consulting for negotiation services in the amount of $50,000; and WHEREAS, the continued services will increase the Original Agreement not-to-exceed amount by $25,000 to $75,000.

NOW THEREFORE, the Parties hereby agree to amend the Original Agreement as follows:

1. COMPENSATION TERMS AND NOT TO EXCEED AMOUNT - Section 7 is hereby amended to increase the not to exceed amount by $25,000 to $75,000.

2. With respect to all other terms and conditions, the Original Agreement shall remain in full force and effect.

CLIENT (City of El Centro) CONSULTANT (Patrick Clark Consulting) By:
___________________________ ______
Marcela Piedra . Date
City Manager
By:
4/29/22
___________________________ ______
Patrick Clark Date
Consultant

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Attachment: EC - Patrick Clark - Amendment No. 1_ (5550 : Amended Consulting Agreement for Labor Negotiation Services)

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Attachment: Original Contract (5550 : Amended Consulting Agreement for Labor Negotiation Services)

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Attachment: Original Contract (5550 : Amended Consulting Agreement for Labor Negotiation Services)

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Attachment: Original Contract (5550 : Amended Consulting Agreement for Labor Negotiation Services)

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Attachment: Original Contract (5550 : Amended Consulting Agreement for Labor Negotiation Services)

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Attachment: Original Contract (5550 : Amended Consulting Agreement for Labor Negotiation Services)

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Attachment: Original Contract (5550 : Amended Consulting Agreement for Labor Negotiation Services)

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Attachment: Original Contract (5550 : Amended Consulting Agreement for Labor Negotiation Services)

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Attachment: Original Contract (5550 : Amended Consulting Agreement for Labor Negotiation Services)

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Attachment: Original Contract (5550 : Amended Consulting Agreement for Labor Negotiation Services)

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Attachment: Original Contract (5550 : Amended Consulting Agreement for Labor Negotiation Services)

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Attachment: Original Contract (5550 : Amended Consulting Agreement for Labor Negotiation Services)

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Attachment: Original Contract (5550 : Amended Consulting Agreement for Labor Negotiation Services) 05/2022/liz/A22-0110/Reso/AmendNo1NegoConsultant 1
RESOLUTION NO. 22-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL

CENTRO APPROVING AN AMENDED CONSULTING

AGREEMENT FOR LABOR NEGOTIATIONS SERVICES
WHEREAS, in or about July 1, 2022, based upon the City Manager’s informal survey of available companies, the City entered into an agreement with Patrick Clark Consulting, Inc. to provide labor negotiation services to the City for all of its bargaining units; and WHEREAS, with the agreement of the City Council, such agreement was signed by the City Manager with an anticipated expenditure of between $30,000 - $50,000, and within her signature authority; and
WHEREAS, given a number of issues which arose which arose during bargaining, it is necessary to amend the agreement for services and extend it on the same terms and conditions; and
WHEREAS, the amended agreement is in the amount of an additional $25,000 for additional services during its term of the Agreement; and WHEREAS, the amended agreement will provide for the completion of pending bargaining and review of the resulting MOU’s and compensation studies; and WHEREAS, the City Council finds that the approval of the amendment will be in the best interest of the City.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL CENTRO, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

1. That the foregoing is true, correct and adopted.

2. That the City Council hereby approves the Amendment No. 1 to the Agreement for Consulting Services between the City of El Centro and Patrick Clark Consulting.

3. That the City Manager is hereby authorized to sign the amendment, a copy of which is on file in the Office of the City Clerk, on behalf of the City.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of El Centro, California held on the day of , 2022.

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Attachment: Resolution 22- (5550 : Amended Consulting Agreement for Labor Negotiation Services) 05/2022/liz/A22-0110/Reso/AmendNo1NegoConsultant 2

CITY OF EL CENTRO
By __________________________
Tomas Oliva, Mayor
ATTEST:

By _____________________________
Norma Wyles, City Clerk
APPROVED AS TO FORM:

Office of the City Attorney
By _______________________________
Elizabeth L. Martyn, City Attorney

STATE OF CALIFORNIA )
COUNTY OF IMPERIAL ) ss

CITY OF EL CENTRO )
I, L. Norma Wyles, City Clerk of the City of El Centro, California, do hereby certify that the forgoing Resolution No. 22- was duly and regularly adopted at a regular meeting of the City Council of the City of El Centro, California, held on the day of , 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

By _________________________
Norma Wyles, City Clerk

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Attachment: Resolution 22- (5550 : Amended Consulting Agreement for Labor Negotiation Services) City Council of the City of El Centro Meeting: 06/07/22 11:30 AM 1275 Main Street Department: Public Works
El Centro, CA 92243 Category: Public Hearing
Prepared By: Abraham Campos
SCHEDULED Department Head: Abraham Campos
RESOLUTION (ID # 5471) DOC ID: 5471
Public Hearing to consider the residential and commercial solid waste services rates and tabulate protest ballot results CITY MANAGER’S RECOMMENDATION:

Upon a Favorable Result on the Ballot Count and Upon Conclusion of the Public Hearing, Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

EL CENTRO, DECLARING THE RESULTS OF THE PROPERTY OWNER PROTEST

BALLOT PROCEEDING CONDUCTED FOR THE INCREASE OF RESIDENTIAL AND

COMMERCIAL/MULTIFAMILY SOLID WASTE RATES, COMMENCING IN FISCAL YEAR 2022/2023 AND THE SUBSEQUENT FOUR FISCAL YEARS, MAKING

FINDINGS AND APPROVING SUCH RATES AND CERTAIN RELATED ACTIONS FISCAL IMPACT:

Administering the Proposition 218 majority process came at a cost $20,483.14 to the General Fund, including mailing of notices, consultant costs and IV Press publishing. If the rates are approved, the New Agreement with CR&R will generate $50,000 per year to the City to reimburse contract and program implementation costs such as this. The City is also in receipt of $64,444 in State grant funds for implementation of SB1383 regulations, all of which help offset initial implementation costs.

STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

Goal 2, Environmental Sustainability & Infrastructure. Action 2.9, Ensure compliance with State and solid waste and recycling requirements
DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTORS LICENSE, REFERENCE CHECKS, INSURANCE, ETC:

NA
BACKGROUND:

The City is proposing to increase trash and recycle collection rates due to increasing costs of service and costs associated with compliance with new State regulations.

Increasing the rates must comply with Proposition 218, which requires certain procedures to be followed with regard to “property-related” fee increases imposed by government agencies. This report provides the proposed rate increases and identifies the required procedures to implement the new rates.

On March 20, 2007, the City awarded the eight-year Agreement between City of El Centro and CR&R Incorporated for Integrated Solid Waste Management Services to CR&R for citywide commercial and residential refuse and recycling collection services (Agreement). The agreement commenced on July 1, 2007. On July 1, 2011, the Third Amendment to the Agreement extended the term of the Agreement to July 2027. On March 21, 2017, Council approved new commercial organic and multi-family green 10 Packet Pg. 86
Resolution (ID # 5471) Meeting of June 7, 2022
waste rate schedules to fund CR&R’s expenses for implementing programs for commercial organic and multi-family green waste.

The City determined the need to amend and restate the Agreement to incorporate updates and new regulations, such as Senate Bill 1383. The City retained HF&H Consultants, LLC to assist in the development and negotiation of an Amended and Restated Agreement. The Amended and Restated Agreement between City of El Centro and CR&R Incorporated for Integrated Solid Waste Management Services (New Agreement), which includes residential and commercial organics recycling collection services, became effective on April 5, 2022 upon Council’s approval, with the term commencing May 1, 2022, and expiring on June 30, 2027. The New Agreement may be extended in five-year intervals by mutual agreement of the City and CR&R, same as with the original amended agreement.

The New Agreement incorporated implementation language required by State regulations at an additional cost to CR&R. CR&R requested a rate increase to account for these new requirements and changes in the recycling markets.

Pursuant to Proposition 218, the Right to Vote on Taxes Act of 1996, local governments must follow certain requirements before increasing an existing property-related fee such as the rates imposed for solid waste collection. Local governments must mail information about a proposed new or increased fee in a notice of public hearing to account holders. Account holders may be property owners or tenants of properties who actually pay the rates for the service. The governing body of the local government must, at the time and place specified in the hearing notice, conduct a public hearing to consider the new fee or fee increase. The notice must be mailed 45 days prior to the public hearing date. The governing body must reject the fee if a majority of the property owners (or tenants that pay the rate) protest in writing via mail or delivered in-person.

DISCUSSION:

Tonight’s public hearing is to consider the proposed maximum rate schedules in accordance with Proposition 218. In accordance with State law, the public hearing notice was mailed to account holders on April 18, 2022, which exceeds the required 45 minimum day notice requirement. The notice is included in this report as Attachment 1.

It includes information outlining the maximum rate increases for solid waste collection services for a five-year (5-year) period commencing July 1, 2022 through June 30, 2027.

The proposed July 1, 2022 rates included in Exhibit A of the public hearing notice are the actual rates that will be charged to customers foregoing a majority protest (50% plus one protest from businesses and residents/property owners in the City.) A total of 8,977 addresses were found to contain a service account based on account records. Of these, 61 were returned as not deliverable. As such 8,916 were delivered and 4,459 protests are required to create a majority protest.

For the years ending June 30, 2024 through June 30, 2027, beginning July 1, 2023, 10 Packet Pg. 87
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residential and commercial solid waste service rates and roll-off service rates are proposed to be adjusted on a yearly basis on July 1 of the related year, based on the weighted changes to the rate adjustment factors as described in Article 6 of the New Agreement. Said factors are also included as Attachment 2, hereto attached. In either case, the yearly rate increase is limited to the adjustment factors here stated, or 4 percent, whichever is less.

Annual rate increases in any given year exceeding the rates proposed in Exhibit A of the public hearing notice and any further increases proposed after June 30, 2027, would be subject to approval by the City Council via a public hearing and protest procedures.

For illustration purposes, select typical rates are included below for residential and commercial accounts:

Residential accounts:

As a sample, the table below illustrates the maximum possible rate increases for a single-family residential home. Rates beginning July 1, 2023 may be lower if the rate adjustment factors produce an adjustment factor lower than 4 percent.

Sample single-family residential
maximum possible rate increase schedule.

Time Period Max Rate Notes
July 1, 2022 to June 30, 2023 $ 22.95 Includes one time 11.2% increase July 1, 2023 to June 30, 2024 $ 23.87 Includes maximum 4% increase July 1, 2024 to June 30, 2025 $ 24.82 Includes maximum 4% increase July 1, 2025 to June 30, 2026 $ 25.81 Includes maximum 4% increase July 1, 2026 to June 30, 2027 $ 26.84 Includes maximum 4% increase Commercial and multi-family accounts:

Understanding the cost impact to rate payers, this increase is proposed to be phased in over two years: multi-family and commercial customers will be charged

37.5% of corresponding refuse rates beginning July 1, 2022, and the remainder

37.5% of corresponding refuse rates effective July 1, 2023 for a total of 75% phased over said two years.

It should be noted that recycle carts are proposed at a rate lesser than the corresponding commercial refuse rate to 1) account for the value of the recyclable contents and 2) promote recycling.

The full list of FY22-23 rates is found in Exhibit A of the proposed resolution attached to this agenda. Exhibit B of the proposed resolution includes the maximum possible rates through June 30, 2027.
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Resolution (ID # 5471) Meeting of June 7, 2022
OUTREACH EFFORT:

City staff provided a dedicated phone number to answer questions, created a city web page with information for residents, including a Frequently Asked Questions section, and included social media outreach directing users to the dedicated city web page through a QR code. All information was provided and made available in English and Spanish. Attachment 3 of this report includes a printout of the website content provided.

SCHEDULE:

April 22, 2022 or before Public Hearing Notices mailed
April 18, 2022 All Notices mailed.

April 18, 2022 to
June 7, 2022 Protest Period (50-days. 45-day is legal requirement) June 7, 2022 Public Hearing and Protest Results
July 1, 2022 If approved, new rates become effective
CONCLUSION:

UPON A FAVORABLE RESULT ON THE BALLOT COUNT AND UPON CONCLUSION OF THE PUBLIC HEARING, ADOPT RESOLUTION NO. 22-___ RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF EL CENTRO, DECLARING THE RESULTS OF THE

PROPERTY OWNER PROTEST BALLOT PROCEEDING CONDUCTED FOR THE

INCREASE OF RESIDENTIAL AND COMMERCIAL/MULTIFAMILY SOLID WASTE RATES, COMMENCING IN FISCAL YEAR 2022/2023 AND THE SUBSEQUENT FOUR

FISCAL YEARS, MAKING FINDINGS AND APPROVING SUCH RATES AND

CERTAIN RELATED ACTIONS
Attachments:

Resolution No. 22-____
Exhibit A - FY23 Rates
Exhibit B - FY23 through FY27 Maximum Possible Rates
Attachment 1 - Public Hearing Notice
Exhibit A - FY23 Rates
Attachment 2 - Rate Adjustment Indices
Attachment 3 - Website content
ATTACHMENTS:
• Attachment 1 Public Hearing Notice (PDF)
• Attachment 2 Rate Adjustment Indices (PDF)
• Attachment 3 - Website Information(PDF)
• Resolution with Exhibit A and B (PDF)
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NOTICE OF PUBLIC HEARING
Concerning proposed increases to the City of El Centro
residential, multi-family, commercial, industrial and roll-off solid waste service rates
The City of El Centro (“City”) is dedicated to providing reliable and cost-effective solid waste collection services to property owners, residents, and businesses.

Pursuant to State law, the El Centro City Council will hold a public hearing at the time, date, and location specified below to consider increases to the City’s residential, multi-family, commercial and roll-off solid waste collection and processing service fees (“Solid Waste Service Rates”).

DATE: June 7, 2022
TIME: 6:00 p.m. or as soon thereafter as the matter may be heard LOCATION: City Hall Council Chambers
1275 W Main Street
El Centro, CA 92243
Summary: The public hearing will include consideration of adopting a resolution that will authorize maximum rate increases for solid waste collection services for a five-year (5-year) period commencing July 1, 2022 through June 30, 2027. The proposed rates included in Exhibit “A” hereto are the actual rates that will be charged to customers foregoing a majority protest (50% plus one protest from businesses and residents/property owners in the City) for July 1, 2022. Thereafter, such rates are subject to a 4% increase each year, as explained below. The maximum proposed rates for July 1, 2023 through June 30, 2027 are available on the City’s website at www.cityofelcentro.org/publicworks/prop218 and reflect that possible four percent increase from year-to-year; however, actual increases may be less. Annual rate increases in any given year exceeding 4% and any further increases proposed after June 30, 2027, would be subject to approval by the City Council via public hearing and protest procedures open to interested persons.

The protest process and public hearing will be conducted in accordance with California Constitution Article XIII D, Section 6 (also known as “Proposition 218”). This notice is being sent by direct mail to the address to which the City mails the billing statement for the parcel receiving Solid Waste Services.

Under Proposition 218, property owners of record (“property owner”) or tenants responsible for payment (“tenant”) of the Solid Waste Service Rates may submit a written protest to the proposed rate changes as explained in this Notice. Only one protest per parcel is permitted.

Please refer to the “How Can I Participate or File a Protest?” section of this document for instructions on submitting a formal written protest against the proposed action. You also may appear at the public hearing at the date and time specified above.

All members of the public are invited to attend the public hearing. The City of El Centro welcomes your participation and input throughout the process as the City Council considers the new rates and estimated future rate adjustments explained in this Notice. If you have questions or comments about the new and estimated future rates, CALL OR EMAIL. Call (760) 352-6178 or email [email protected]

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Attachment: Attachment 1 Public Hearing Notice (5471 : SB1383 solid waste rate proposition prop 218 hearing) WHY HAVE I RECEIVED THIS NOTICE?
The City currently contracts with CR&R, Incorporated to provide Solid Waste Services. The City maintains a list of account holders for billing statement purposes. An account holder may be the property owner or it may be a tenant. Every account holder received a public hearing notice. In addition, this notice is available at the website in the summary above.

HOW CAN I PARTICIPATE OR FILE A PROTEST ?
WRITE. Written protests may be mailed to the City of El Centro, Attention: City Clerk, 1275 W Main Street, El Centro, CA 92243 or delivered in-person to the City Clerk at the same address: 1275 W Main Street, El Centro, CA 92243. To be counted, a protest must be in writing.

AN ORAL PROTEST DOES NOT COUNT. Any written protest may be a letter which must have the following information: (1) state that the property owner or tenant opposes the proposed rate increases to the Solid Waste Service Rates; (2) provide the location of the parcel by street address or assessor’s parcel number; and (3) include the name and signature of the property owner or tenant submitting the protest. Alternatively, you may utilize the sample protest letter attached to the end of this Notice, which includes said information. For any written protest, whether mailed or submitted in person to the City Clerk, please write on the front of the envelope “Attn: Public Hearing on Solid Waste Rate Increases.” A sample protest letter is available No protest submitted via e-mail or other electronic means will be accepted.

All written protests must be received by the City Clerk before the close of the public hearing.

Any property owner of record or tenant responsible for payment of Solid Waste Service Rates may submit a written protest of those proposed rate increases. However, only one written protest will be counted per each parcel.

ATTEND THE PUBLIC HEARING. Written protests also may be submitted at the Public Hearing on June 7, 2022, at 6:00 p.m., in the City Council Chambers at 1275 W Main Street, El Centro, CA 92243. Only written protests will count toward a majority protest. Written protests must be received before the conclusion of the public hearing to be counted. In addition, members of the public will have an opportunity to speak and give testimony regarding the proposed Solid Waste Service Rates at the Public Hearing. However, members of the public who are not property owners or tenants may not file a written protest.

The public hearing may be held electronically or by teleconference if required or permitted by national, state and/or local orders as a result of the COVID-19 public health or other emergency.

In that event, information will be provided on the City's website and posted in City Council Chambers.

At the conclusion of the public hearing, the City Council will hear and consider all written protests of the proposed rate increases submitted before or at the public hearing.

A majority protest means that those representing 50% plus 1 of the properties noticed have filed a written protest. If there is a majority protest, the Council may not move forward with the increase.

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Attachment: Attachment 1 Public Hearing Notice (5471 : SB1383 solid waste rate proposition prop 218 hearing) If there is not a majority protest, City Council may consider adoption of a resolution authorizing the rate increases to the City’s Solid Waste Service Rates as described in this notice. If authorized, the proposed rate increases to the Solid Waste Service Rates will be in effect beginning July 1, 2022, for a five-year period through June 30, 2027 based on the adjustments outlined in this notification.

WHY ARE RATES PROPOSED TO INCREASE?
The City Council previously determined that the collection, processing, and disposal of solid waste in the City is a service to be performed by a private company, under an exclusive franchise agreement. The exclusive amended and restated franchise agreement with CR&R was approved by the City Council on April 5, 2022. At that time, the City Council instructed staff to proceed with the Proposition 218 process to determine if the proposed fee increases may be approved. The proposed Solid Waste Service Rates effective July 1, 2022, were negotiated between the City and CR&R and are the maximum amount that may be charged for Solid Waste Services. Solid Waste Services Rates effective July 1, 2023 through June 30, 2027 may not increase by more than 4% each year. Fees above that amount are subject to another Proposition 218 noticed public hearing and approval by the City Council. The new rates are for the operation and administration of the solid waste disposal and recycling services and programs implemented by the franchisee as required by State law, the City Code, and the franchise agreement. Such services include solid waste containers, solid waste pick-up, street sweeping, periodic bulky and special item curbside pickup, oil recycling, sharps disposal and paper shredding events. Additional information on services provided by CR&R is found at www.cityofelcentro.org/publicworks/trash-and-recycling/ The primary factors for the proposed new rate structure are cost increases due to inflation as well as increases in solid waste collection costs such as fuel and supplies, increased costs of providing State-required organics diversion programs and other recently enacted State mandates and volatility in recycling markets.

Disposal costs (such as the cost of taking waste to a landfill or recycling facility) already are included in the proposed rate increases.

HOW MUCH WILL RATES INCREASE?
As stated, the proposed increased rates commencing July 1, 2022 are set out in Exhibit A attached to this Notice.

The initial rate increase for residential properties is $2.31 per month for the July 1, 2022 to June 30, 2023 period which is an increase of 11.2% above the current rate. That is an increase from the current $20.64 to $22.95 per home per month for residential accounts for July 1, 2022 through June 30, 2023.

As a sample, the table below illustrates the maximum possible rates for residential cart service, including one each refuse (black), recycling (blue), and organic waste cart (green), for a singlefamily home.

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Attachment: Attachment 1 Public Hearing Notice (5471 : SB1383 solid waste rate proposition prop 218 hearing) Sample single-family residential cart service projected maximum rate schedule (includes 11.2% increase)
Projected
(assuming maximum 4% per year CPI increase)1
Service July 1,
2022 to
June 30,
2023
July 1,
2023 to
June 30,
2024
July 1,
2024 to
June 30,
2025
July 1,
2025 to
June 30,
2026
July 1,
2026 to
June 30,
2027
Residential cart service $22.95 $23.87 $24.82 $25.82 $26.85 (1) Residential cart service includes one each refuse, recycling, and organic waste cart. Rate does not include the rate for used oil/filter collection of $0.06 per month per eligible home.

The rate increase for commercial and multi-family properties is 7% per month for the July 1, 2022 to June 30, 2023 period across the various available services.

Due to the new recycling requirements, cost of compliance, and recycling markets, multi-family and commercial recycling services will be charged at 75% of the corresponding commercial refuse rates. In an effort to reduce the initial rate impact to ratepayers, CR&R will phase in the multifamily and commercial recycling charge over two years, in addition to the impact under the rate adjustment methodology. For the 2022/2023 fiscal year, to calculate the multi-family and commercial recycling rates, multiply the corresponding trash rate by 37.5%. For the 2023/2024 fiscal year, to calculate the multi-family and commercial recycling rates, multiply the corresponding refuse rates by 75%.

As a sample, the table below illustrates the maximum possible rate for a commercial refuse and a commercial recycling 3 cubic yard bin collected once per week.

Sample commercial refuse and recycling bin service
3 cubic yard collected once per week service maximum possible rate schedule (includes 7.0% increase)
Projected
(assuming maximum 4% per year increase to
refuse rate)2
July 1,
2022 to
June 30,
2023
July 1,
2023 to
June 30,
2024
July 1,
2024 to
June 30,
2025
July 1,
2025 to
June 30,
2026
July 1,
2026 to
June 30,
2027
Refuse $115.97 $120.61 $125.43 $130.45 $135.67
Recycling $43.49 1 $90.46 $94.07 $97.84 $101.75
(1) July 1, 2022 recycling rate is 37.5% the amount of the refuse rate. (2) Starting July 1, 2023 recycling rate is 75% the amount of the refuse rate.

Industrial and Roll off rate increases are set out in Exhibit A. Industrial and roll-off customer rate dollar increases vary by service levels.

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Attachment: Attachment 1 Public Hearing Notice (5471 : SB1383 solid waste rate proposition prop 218 hearing) Possible Annual Increase up to 4% per year: During each fiscal year between July 1, 2023 and June 30, 2027, CR&R may request an annual adjustment of any or all rates up to 4% of the existing rate. The annual increase in rates is determined using specific methods incorporating weighted cost category indices. The indices and the methodology for their use is available for review in the City’s website at www.cityofelcentro.org/publicworks/prop218. Such an increase will be considered and may be granted by the City Council when CR&R shows evidence of increased costs in various categories as set out in the franchise agreement. However, in no event shall the increase in any rate be more than 4% above the rate for the prior year.

The annual increase does compound: if the rate is increased by 4% in one year, the increase, of whatever percentage, will be calculated on the existing rate (which includes the prior annual increase). However, the inflator does not carry forward. If the actual rate increase in one year is 5%, and in the next year a lower amount, such as 3%, the 1% increase in the prior year above the 4% cap may not be applied to subsequent years.

Rates beginning July 1, 2023, may be lower than those included in the samples above if the rate adjustment factors produce an adjustment factor lower than 4%.

Again, the proposed Solid Waste Service Rates and their effective dates are set forth in Exhibit A of this Notice. A projection of maximum rates to be charged each year through June 30, 2027 can be found on the City website, www.cityofelcentro.org/publicworks/prop218 for typical ratepayers.

The disclosure of possible annual increase is not a prediction of whether such increases will occur, but the explanation of the maximum rates that may be charged without an additional Proposition 218 hearing.

I HAVE MORE QUESTIONS
Please visit www.cityofelcentro.org/publicworks/prop218 for additional information, call (760) 352-6178 or email [email protected].

If you do not oppose the rates, do not submit a letter.

If you oppose the rates, you may utilize the sample protest letter here included.

Written protest must be mailed in an envelope or delivered to: City Clerk, Attn: Public Hearing on Solid Waste Rate Increases, 1275 W. Main Street, El Centro CA 92243 I ________________________________________________ oppose the proposed rate increases. (Print Name - Property Owner or Tenant)
Assessor’s Parcel Number or Address: _______________________________________________ Signature: ______________________________________________

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Attachment: Attachment 1 Public Hearing Notice (5471 : SB1383 solid waste rate proposition prop 218 hearing)

EXHIBIT A ANEXO A
SOLID WASTE RATES (1)
Following are the rates effective July 1, 2022 through June 30, 2023:

Residential Service Rate
Cart Service – one each Refuse, Recycling, and Organics Waste Cart $22.95 per month Additional Refuse Cart $14.34 per month
Additional Recycling Cart at 50% of additional Refuse rate $7.17 per month Additional Organics Waste Cart at 50% of additional Refuse rate $7.17 per month Additional Special Overage Pickup for Automated Cart Customers $7.17 per month Additional Bulky Item pickups (in excess of three per year) $28.72 per month Used Oil/Filter Collection per Eligible Home $0.06 per month Apartment Houses, Courts and
Similar Dwellings Rate Trailer Courts and Mobile Home Parks Rate First Unit $22.95 per month First Unit $22.95 per month Units 2 – 15 $14.00 per month Units 2 – 5 $11.93 per month Units 16 – 30 $12.61 per month Units 6 – 10 $11.26 per month Units 31 – 50 $11.26 per month Units 11 – 20 $10.80 per month Units 51 – 75 $10.34 per month Units 21 – 30 $10.34 per month Units 31 – 50 $9.41 per month
Units 51 – 100 $8.95 per month
Refuse Bin and Commercial Cart Rates
Container Monthly Rate (based on pickups per week) Rate Per Extra
Pickup
Size 1 2 3 4 5 6
96-gallon Cart $ 40.05 $ 67.67 $ 95.26 $ 122.90 $ 150.52 $ 178.11 $ 20.71 2 cubic yard $ 102.17 $ 185.02 $ 267.86 $ 350.71 $ 433.55 $ 516.42 $ 27.28 2 yard
compactor $ 167.81 $ 303.47 $ 439.30 $ 575.17 $ 711.04 $ 846.93 $ 44.74 3 cubic yard $ 115.97 $ 212.64 $ 309.29 $ 405.94 $ 502.59 $ 599.27 $ 30.99 4 cubic yard $ 129.79 $ 240.26 $ 350.71 $ 461.17 $ 571.62 $ 682.07 $ 36.25 4 yard
compactor $ 220.14 $ 420.93 $ 621.72 $ 822.53 $ 1,023.32 $ 1,224.11 $
135.50
5 cubic yard $ 243.02 $ 360.40 $ 484.64 $ 608.93 $ 733.20 $ 857.46 $ 42.07 6 cubic yard $ 288.60 $ 419.74 $ 557.84 $ 695.90 $ 833.97 $ 972.06 $ 48.39 (1) Not all rates identified above constitute “property-related fees” subject to the majority protest process under Proposition 218. The City has nonetheless provided a full schedule of all fees in furtherance of public transparency.

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Attachment: Attachment 1 Public Hearing Notice (5471 : SB1383 solid waste rate proposition prop 218 hearing) Commercial Foodwaste Cart Rates
Container Monthly Rate (based on pickups per week) Rate Per Extra
Pickup Size 1 2 3 4 5 6
35-gallon $ 40.05 $ 80.10 $ 120.16 $ 160.21 $ 200.26 $ 240.31 $ 20.71 60-gallon $ 40.05 $ 80.10 $ 120.16 $ 160.21 $ 200.26 $ 240.31 $ 20.71 2 cubic yard $ 161.81 $ 323.62 $ 485.45 $ 647.26 $ 809.07 $ 970.87 $ 83.74 Multi-Family Organics Waste Cart Rates
Container Monthly Rate (based on pickups per week) Rate Per Extra
Pickup Size 1 2 3 4 5 6
90-gallon $ 40.05 $ 80.10 $ 120.16 $ 160.21 $ 200.26 $ 240.31 $ 20.71 300-gallon $ 120.16 $ 240.31 $ 360.48 $ 480.64 $ 600.80 $ 720.94 $ 62.18 Commercial Recycling Cart Rates (37.5% of Refuse (2))
Container Monthly Rate (based on pickups per week) Rate Per Extra
Pickup Size 1 2 3 4 5 6
96-gallon $ 15.02 $ 25.38 $ 35.72 $ 46.09 $ 56.44 $ 66.79 $ 7.77 2 cubic yard $ 38.31 $ 69.38 $ 100.45 $ 131.52 $ 162.58 $ 193.66 $ 10.23 3 cubic yard $ 43.49 $ 79.74 $ 115.98 $ 152.23 $ 188.47 $ 224.72 $ 11.62 4 cubic yard $ 48.67 $ 90.10 $ 131.52 $ 172.94 $ 214.36 $ 255.78 $ 13.59 (2) Effective July 1, 2023, these rates will be increased to seventy-five percent (75%) of the corresponding refuse rates.

Service Category Rate per Service
Temporary Bin Services:
3 cubic yard Bin, per dump $ 69.02
4 cubic yard Bin, per dump $ 82.84
6 cubic yard Bin, per dump $ 124.27
Bin rental (when less than one dump each 14 day period) $ 41.43 Blocked pickup $ 48.34
Locking Bins – monthly service charge:
1x week $ 6.90
2x week $ 13.80
3x week $ 20.71
4x week $ 27.63
5x week $ 34.51
6x week $ 41.43
Other Residential Services:

Cart Redelivery Fee – Stop Service, per occurrence $ 26.75 Cart Replacement Fee – After 1 free per 12-month period (Customer Damaged or Stolen) $ 55.56

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Attachment: Attachment 1 Public Hearing Notice (5471 : SB1383 solid waste rate proposition prop 218 hearing) Other Commercial Services:

Commercial Bulky Item Pickup $ 27.63
Extra Bin Cleanings (beyond one free per year) $ 55.23
Bin Overflow Charge (after Customer has been notified of charge) $ 62.15 Contamination Charge, per occurrence $ 53.49
Commercial Setup Fee, per occurrence $ 26.75
Commercial CUB, Bin Delivery Fee, per occurrence $ 32.10 Commercial Cart Delivery Fee, per occurrence $ 26.75
Bin Redelivery Fee – Stop Service, per occurrence $ 32.10 Cart Replacement Fee – (Customer Damaged or Stolen) $ 55.56 Bulk Compost (per ton) $ 25.00
Roll-Off Box Service Charges (3) Rate
Standard Roll-Off Box – Rate per pull $ 253.72
Compactor Roll-Off Box – Rate per Pull (excluding rental) $ 338.80 COD Roll-off 10 or 40-yard (up to 10 tons) – C&D Processing $ 1,013.11 COD Roll-off 10 or 40-yard (up to 10 tons) – Landfill $ 895.43 Tonnage Charge, per ton (Refuse) $ 64.17
Tonnage Charge, per ton (Construction and Demolition Debris) $ 75.94 Recyclable Material Roll-Off Service 150% of Pull Rate
Overweight per Ton Charge (per ton beyond 10 tons/load) 150% of Gate Rate Roll-Off Box Rental Charge – per day for each day beyond 14 days $ 21.26 Dry Run – pickup of empty Roll-off Box $ 141.76
Blocked Pickup $ 70.87
Overweight compactor Transportation fee $ 556.49
Compactor Cleaning Service $ 363.76
*Including all fees retained by, or paid to, City.
(3) COD Roll-off Box Customers may be requested to pre-pay the Standard Roll-Off Box Pull Rate plus the per ton rate for up to ten (10) tons, with unused payment (the per ton payment for tons over actual tons collected) refunded within thirty (30) days of pull.

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Attachment: Attachment 1 Public Hearing Notice (5471 : SB1383 solid waste rate proposition prop 218 hearing) ATTACHMENT 2
Figure 1
Cost Components for Single Family & Commercial Rate Adjustment Indices Cost
Category
Weighting
(1)
Rate Adjustment Factor
Labor 23% Employment Cost Index, ECU125421 not seasonally adjusted, Total compensation, Private industry, Index number, Electric, gas, and sanitary services (2)
Fuel 8% Producer Price Index, WPU057303 not seasonally adjusted, Fuels and related products and power, #2 diesel fuel (2)
Equipment 11% Producer Price Index, PCU3361203361201, Heavy duty truck mfg, Trucks, tractors, and bus chassis, 14,001 to 33,000 lbs (2) Insurance 3% Producer Price Index, PCU524---524---, Insurance carriers and related activities (2)
Disposal 32% Consumer Price Index for All Urban Consumers (CUUR0000SA0L1E), all items less food and energy index - U.S. city average (2)
All Other 23% Consumer Price Index for All Urban Consumers (CUUR0000SA0L1E), all items less food and energy index - U.S. city average (2)
Total 100%
(1) Weightings may be adjusted annually based on the adjustment process described in the franchise agreement with CR&R
(2) The increase or decrease in the indices will be for the twelve (12) month period ending December prior to the rate year anniversary date.

Figure 2
Cost Components for Roll-off Box Rate Adjustment Indices Cost
Category
Weighting
(1)
Rate Adjustment Factor
Labor 44% Employment Cost Index, ECU125421 not seasonally adjusted, Total compensation, Private industry, Index number, Electric, gas, and sanitary services (2)
Fuel 8% Producer Price Index, WPU057303 not seasonally adjusted, Fuels and related products and power, #2 diesel fuel (2)
Equipment 10% Producer Price Index, PCU3361203361201, Heavy duty truck mfg, Trucks, tractors, and bus chassis, 14,001 to 33,000 lbs (2) Insurance 3% Producer Price Index, PCU524---524---, Insurance carriers and related activities (2)
All Other 35% Consumer Price Index for All Urban Consumers (CUUR0000SA0L1E), all items less food and energy index - U.S. city average (2)
Total 100%
(1) Weightings may be adjusted annually based on the adjustment process described in the franchise agreement with CR&R
(2) The increase or decrease in the indices will be for the twelve (12) month period ending December prior to the rate year anniversary date.

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Attachment: Attachment 2 Rate Adjustment Indices (5471 : SB1383 solid waste rate proposition prop 218 hearing) 5/24/22, 2:19 PM Proposition 218 | Public Works Department https://cityofelcentro.org/publicworks/prop218/ 1/4
Proposition 218
Proposed Solid Waste Collection Rate Adjustments
Information Page
Para ver esta página en español, seleccione “Spanish” en el menú.

Proposition 218 Public Hearing Notice (English)
Proposicion 218 Aviso de Audiencia Publica (Spanish)
EXHIBIT A / ANEXO A– Proposed Rate Schedule
Maximum possible 5-year rate schedule for all services
Proposition 218 Council Presentation (April 5, 2022)
Proposition 218 Staff Report (April 5, 2022)
Pursuant to Proposition 218, the El Centro City Council will hold a public hearing to consider increases to the City’s residential, multi-family, commercial and roll-off solid waste collection and processing service fees. The public hearing will include consideration of adopting a resolution that will authorize maximum rate increases for solid waste collection services for a five-year (5-year) period commencing July 1, 2022 through June 30, 2027.

The public hearing for the proposed rate increase will be held on:

DATE:

June 7, 2022 at 6 p.m.
or as soon thereafter as the matter may be heard
LOCATION:

City Council Chambers
1275 W. Main Street
El Centro CA 92243
A list of frequently asked questions has been included below, but if you have additional questions or concerns related to the Proposition 218 Public Hearing for the proposed rate adjustments, please call Catherine Gutierrez at (760) 352-6178 or email [email protected]
Se habla español. Estamos aquí para atender sus preguntas. Si tiene mas preguntas, comuníquese con Catherine Gutierrez al (760) 352-6178 o por correo electrónico a [email protected]
Frequently Asked Questions

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Attachment: Attachment 3 - Website Information (5471 : SB1383 solid waste rate proposition prop 218 hearing) 5/24/22, 2:19 PM Proposition 218 | Public Works Department https://cityofelcentro.org/publicworks/prop218/ 2/4
Q: What is Proposition 218?
Proposition 218, or the “Right to Vote on Taxes Act”, was approved by California state voters in November 1996. The Act amended the California constitution to require local governments to follow certain procedures when they impose fees for certain kinds of services in order to ensure that they are subject to voter approval. Prop 218 is a tool designed to provide greater public involvement in the rate setting process.

Q: I am home owner (or rent and pay the trash bill). How much will this affect my monthly bill?
In El Centro, the trash rate is included in your combined water/sewer/trash bill. The trash rate component of that bill is requested to increase $2.31 per month (11.2%) one time starting on July 1, 2022 and up to 4% each year thereafter through June 30, 2027. As such, your total combined bill would increase by that same amount. Refer to the table below to get the maximum proposed rates going forward.

Sample single-family residential cart service projected maximum rate schedule Residential cart service includes one each refuse, recycling, and organic waste cart. Rate does not include the rate for used oil/filter collection of $0.06 per month per eligible home.

A full list of all maximum possible rates is available by selecting the link above titled “Maximum possible 5-year rate schedule for all services” Q: I am home owner (or rent and pay the trash bill). In the past I asked for and received a second green or blue cart from CR&R, will my rate change?
Currently, everyone gets three-bin service (black, blue, green). That continues. If you have requested from CR&R an additional bin, a new rate is requested for that extra bin starting July 1, 2022. Refer to Exhibit A for the proposed charge starting July 1, 2022. If you no longer require that extra bin, contact CR&R to have them update your account and the extra bin removed from your property.

Q: I own a business or a multifamily complex. How much will my rate increase?
Commercial and multi-family rates are proposed to increase 7% onetime starting on July 1, 2022 and up to 4% each year thereafter through June 30, 2027 across the rate structure.

In addition, a new fee is introduced for Commercial Recycling Service. Currently the recycling bin is offered free of charge. The City proposes to establish a rate equivalent to 37.5% of the comparable trash service rate starting July 1, 2022 and at 75% of the comparable trash service rate starting July 1, 2023. Refer to Exhibit A for the full list of proposed rates starting July 1, 2022

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Q: How about other services such as roll-off containers, how much will rates increase?
Rates such as roll-off solid waste collection are also proposed to increase 7% starting on July 1, 2022 and up to 4% each year thereafter through June 30, 2027 across the rate structure.

The proposed Rate Exhibit A provides a full list or proposed rates for the July 1 2022 to June 30 2023 period. A full list of all maximum possible rates is available by selecting the link above titled “Maximum possible 5-year rate schedule for all services” Q: Why is the City requesting this rate increase?
The primary factors for the proposed new rate structure are cost increases due to inflation as well as increases in solid waste collection costs such as fuel and supplies, increased costs of providing State-required organics diversion programs and other recently enacted State mandates and volatility in recycling markets.

Q: What services are covered by the rates?
The rates are for the operation and administration of the solid waste disposal and recycling services and programs implemented by the franchisee as required by State law, the City Code, and the franchise agreement. Such services include solid waste containers, solid waste pick-up, street sweeping, periodic bulky and special item curbside pickup, oil recycling, sharps disposal and paper shredding events. Additional information on services provided by CR&R is found at www.cityofelcentro.org/publicworks/trash-and-recycling/ Q: Are we the only city affected?
No. The costs associated with the proposed rate increase will affect most, if not all, jurisdictions in County and the State. Costs associated with CPI, SB 1383, recycling markets, and market wages will impact solid waste rates all across California.

Q: How does the rest of the process work?
A Proposition 218 Notice will be mailed to each active customer of CR&R in the City of El Centro on by April 22. The Notice will include rate change details and rate adjustment calculations. Between April 22 and June 7, 2022, customers have the opportunity to protest the rate increase. At the June 7, 2022 City Council meeting, this item will be before the City Council for their consideration and discussion. The purpose of a Public Hearing is to provide an opportunity for residents to provide and receive information associated with decisions to be made by the City Council.

Q: How do I protest?
Owners or tenants of a property receiving services from the City of El Centro may submit a written protest against the Proposed Rate Increase to the City Clerk before the close of the Public Hearing on June 7, 2022. A valid written protest must contain a statement that you protest the increase, the address or APN of the property which receives solid waste services, and a signature by either the owner or the tenant-customer of the property. One written protest per property shall be counted in calculating a majority protest. Written protests will not be acceptable by e-mail or facsimile.

Written protests regarding the solid waste rate increase may be personally delivered or mailed to:

City of El Centro
Attn: City Clerk

10.c
Packet Pg. 101 Attachment: Attachment 3 - Website Information (5471 : SB1383 solid waste rate proposition prop 218 hearing) 5/24/22, 2:19 PM Proposition 218 | Public Works Department https://cityofelcentro.org/publicworks/prop218/ 4/4
1275 W Main Street
El Centro CA, 92243
If valid written protests are presented by a majority of owners and/or tenants-customers of properties receiving service, then the City will not adjust/increase the rates for the services.

Q: Can I protest some, but not all, of the proposed rate increase? No. Solid waste service rates include recycling and organics services and the costs are therefore considered as a whole. As a result and as required by the State of California, solid waste, recycling and organics service are available to all residents of the City of El Centro.

Q: I received multiple notices by mail, can I protest more than once? Only one protest letter may be submitted per parcel.

Q: Where can I get more information?
Contact the City at (760) 352-6178 or email [email protected]

10.c
Packet Pg. 102 Attachment: Attachment 3 - Website Information (5471 : SB1383 solid waste rate proposition prop 218 hearing) 05/2022/liz/A22-0108/Reso/SolidWasteRates
RESOLUTION NO. 22 -

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL

CENTRO, DECLARING THE RESULTS OF THE PROPERTY

OWNER PROTEST BALLOT PROCEEDING CONDUCTED

FOR THE INCREASE OF RESIDENTIAL AND

COMMERCIAL/MULTIFAMILY SOLID WASTE RATES,
COMMENCING IN FISCAL YEAR 2022/2023 AND THE

SUBSEQUENT FOUR FISCAL YEARS, MAKING FINDINGS

AND APPROVING SUCH RATES AND CERTAIN RELATED

ACTIONS
WHEREAS, Chapter 12 of the El Centro Municipal Code regarding collection of solid waste, green waste and recyclables (“integrated waste management services”) as well as state law provide that shall be adopted by resolution of the City Council of the City of El Centro, California (“the City Council”); and
WHEREAS, rates were last set in 2021 pursuant to Resolution No. 21-58; and WHEREAS, SB 1383, the Short-Lived Climate Pollutant Reduction Strategy, as well as other state legislation requires additional programs and services for organics recycling; and WHEREAS, on or about March 1, 2022, the City Council adopted Ordinance No. 22-01 revising El Centro Municipal Code Section 12 regarding the collection of solid waste, green waste and various types of recyclable, constituting the integrated waste management services; and WEHREAS, on or about April 5, 2022, the City Council approved an Integrated Waste Management Services Agreement (the “Agreement”) with CR&R Incorporated (“CR&R”), an active California corporation, on April 18, 2007, which Agreement now has been amended to address such changes in the law, among other things ; and WHEREAS, the Agreement provides for certain rate adjustments to address the requirements of Senate Bill 1383, in addition to cost of living increases pursuant to Article 6 of the Agreement, which increases for residential and commercial properties are set out on Exhibits A and B, attached and incorporated; and
WHEREAS, in accordance with State law and specifically the requirements of Proposition 218, the City now wishes to consider and authorize estimated rate increases for solid waste collection services for the first five-year (5-year) period of the Agreement, commencing July 1, 2022 through June 30, 2027; and

10.d
Packet Pg. 103 Attachment: Resolution with Exhibit A and B (5471 : SB1383 solid waste rate proposition prop 218 hearing) 05/2022/liz/A22-0108/Reso/SolidWasteRates
WHEREAS, such rate increases are governed by the provisions of Proposition 218, Cal Constit. XIIID for property-based fees and charges, and the procedures set out in Govt. Code Section 53750 et seq; and
WHEREAS, onApril 5, 2022, the City Council by majority vote called for a public hearing on such rates and charges and directed staff to provide notice as required by Proposition 218 and related statutes; and
WHEREAS, the City thereafter determined that those privately-owned parcels which currently receive solid waste collection services (as well as those receiving such service in the future) will be billed for the reasonable cost of that service plus overhead, and that the record owner of such parcels (which here is defined as the account holder) will be mailed written notice with at least a 45-day protest period; and
WHEREAS, the current rates as well as the automatic rate adjustment calculated by employing the rate adjustment methodology specified in Article 6 of the Agreement for each respective rate year is consistent with the requirements of Proposition 218; and WHEREAS, on April 18, 2022, the City therefore mailed to the account holders, notices of a public hearing to be held on June 7, 2022 to consider the new rates for commercial and residential services; and
WHEREAS, said notices describe the proposed rates, the basis for these rates and other items as be required by Article XIIID of the California Constitution ("Proposition 218 "); and WHEREAS, such rates are the reasonable cost of the services provided plus overhead; and WHEREAS, the cost of living increases approved are for the allowed 5-year period; and WHEREAS, the said rates are not subject to the provisions of Proposition 26 because they are not regulatory fees and charges; and
WHEREAS, at the duly noticed public hearing on June 7, 2022, the City Council heard all evidence submitted and duly reviewed all protests submitted and determined that a majority protest of 50% plus 1 of those record owners of property/account holders did not occur; and WHEREAS, the City Council now desires to approve the proposed increased rates for residential and commercial/multifamily solid waste disposal and recycling set out on Exhibit A and maximum rates as shown in Exhibit B, effective as of July 1, 2022 for the term of five years until June 30, 2027.

10.d
Packet Pg. 104 Attachment: Resolution with Exhibit A and B (5471 : SB1383 solid waste rate proposition prop 218 hearing) 05/2022/liz/A22-0108/Reso/SolidWasteRates

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL CENTRO, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

1. That the foregoing is true, correct and incorporated herein by reference.

2. That Resolution No. 21-58 hereby is rescinded in its entirety.

3. That the Residential and the Commercial/Multifamily Solid Waste Disposal and Recycling Rates shown on Exhibit A and Exhibit B, attached hereto, are hereby adopted and shall commence and be effective for services provided as of July 1, 2022 through June 30, 2027.

4. That the City Council further may adjust customer rates starting July 1, 2023 through June 30, 2027. The rates may be adjusted by employing the rate adjustment methodology specified in Article 6 of the Agreement for each respective rate year up to a maximum of 4% per year. The maximum rates are shown in Exhibit B.

5. That the City Council has taken a count of protests received from record owners/account holders authorized to protest, and there is no majority protest to the proposed rates.

6. That therefore, based on the information considered in the record of the Public Hearing and in the Agreement that, in accordance with Proposition 218 and Proposition 26:
(a) All notices, mailings and the hearings have taken place in accordance with the law; (b) The revenues derived from the charge will not be used for any purpose other than the provision of integrated waste management services, the purpose for which the fee is charged.
(c) The amount of the charge levied on each property does not exceed that property’s proportional cost of the service to that parcel;
(d) All services are immediately available to residential and commercial/multifamily customers and property owners.
(e) The service is a property-related service available specifically to property owners and is not a general government service available to the public at large; and (f) The charges are not a regulatory fee subject to Proposition 26.

7. Effective Date: This resolution shall take effect immediately upon adoption. The proposed rates shall be effective for services provided as of July 1, 2022.

10.d
Packet Pg. 105 Attachment: Resolution with Exhibit A and B (5471 : SB1383 solid waste rate proposition prop 218 hearing) 05/2022/liz/A22-0108/Reso/SolidWasteRates
PASSED AND ADOPTED at a regular meeting of the City Council of the City of El Centro, California held on day of , 2022.

CITY OF EL CENTRO
By _____________________
Tomas Oliva, Mayor
ATTEST:

By _____________________________
Norma Wyles, City Clerk
APPROVED AS TO FORM:

Office of the City Attorney
By________________________________
Elizabeth L. Martyn, City Attorney

STATE OF CALIFORNIA )
COUNTY OF IMPERIAL ) ss

CITY OF EL CENTRO )
I, Norma Wyles, City Clerk of the City of El Centro, California do hereby certify that the foregoing Resolution No. 22- was duly and regularly adopted at a regular meeting of the City Council of the City of El Centro, California, held on the day of , 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

By__________________________
Norma Wyles, City Clerk

10.d
Packet Pg. 106 Attachment: Resolution with Exhibit A and B (5471 : SB1383 solid waste rate proposition prop 218 hearing)

EXHIBIT A ANEXO A
SOLID WASTE RATES (1)
Following are the rates effective July 1, 2022 through June 30, 2023:

10.d
Packet Pg. 107 Attachment: Resolution with Exhibit A and B (5471 : SB1383 solid waste rate proposition prop 218 hearing) Commercial Foodwaste Cart Rates
Container Monthly Rate (based on pickups per week) Rate Per Extra
Pickup Size 1 2 3 4 5 6
35-gallon $ 40.05 $ 80.10 $ 120.16 $ 160.21 $ 200.26 $ 240.31 $ 20.71 60-gallon $ 40.05 $ 80.10 $ 120.16 $ 160.21 $ 200.26 $ 240.31 $ 20.71 2 cubic yard $ 161.81 $ 323.62 $ 485.45 $ 647.26 $ 809.07 $ 970.87 $ 83.74 Multi-Family Organics Waste Cart Rates
Container Monthly Rate (based on pickups per week) Rate Per Extra
Pickup Size 1 2 3 4 5 6
90-gallon $ 40.05 $ 80.10 $ 120.16 $ 160.21 $ 200.26 $ 240.31 $ 20.71 300-gallon $ 120.16 $ 240.31 $ 360.48 $ 480.64 $ 600.80 $ 720.94 $ 62.18 Commercial Recycling Cart Rates (37.5% of Refuse (2))
Container Monthly Rate (based on pickups per week) Rate Per Extra
Pickup Size 1 2 3 4 5 6
96-gallon $ 15.02 $ 25.38 $ 35.72 $ 46.09 $ 56.44 $ 66.79 $ 7.77 2 cubic yard $ 38.31 $ 69.38 $ 100.45 $ 131.52 $ 162.58 $ 193.66 $ 10.23 3 cubic yard $ 43.49 $ 79.74 $ 115.98 $ 152.23 $ 188.47 $ 224.72 $ 11.62 4 cubic yard $ 48.67 $ 90.10 $ 131.52 $ 172.94 $ 214.36 $ 255.78 $ 13.59 (2) Effective July 1, 2023, these rates will be increased to seventy-five percent (75%) of the corresponding refuse rates.

Cart Redelivery Fee – Stop Service, per occurrence $ 26.75 Cart Replacement Fee – After 1 free per 12-month period (Customer Damaged or Stolen) $ 55.56

10.d
Packet Pg. 108 Attachment: Resolution with Exhibit A and B (5471 : SB1383 solid waste rate proposition prop 218 hearing) Other Commercial Services:

10.d
Packet Pg. 109 Attachment: Resolution with Exhibit A and B (5471 : SB1383 solid waste rate proposition prop 218 hearing) Service
Proposed
July 1,
2022
Estimated
July 1,
2023
Estimated
July 1,
2024
Estimated
July 1,
2025
Estimated
July 1,
2026
Standard Residential Service – One Refuse, Recycling, and Organics Waste Cart 22.95$ 23.87$ 24.82$ 25.81$ 26.84$ Additional Refuse Cart 14.34$ 14.91$ 15.51$ 16.13$ 16.78$ Additional Recycling Cart at 50% of additional Refuse rate 7.17$ 7.46$ 7.76$ 8.07$ 8.39$ Additional Organics Waste Cart at 50% of additional Refuse rate 7.17$ 7.46$ 7.76$ 8.07$ 8.39$ Additional Special Overage Pickup for Automated Cart Customers 7.17$ 7.46$ 7.76$ 8.07$ 8.39$ Additional Bulky Item pickups (in excess of three per year) 28.72$ 29.87$ 31.06$ 32.30$ 33.59$ Used Oil/Filter Collection per Eligible Home 0.06$ 0.06$ 0.06$ 0.06$ 0.06$ First Unit 22.95$ 23.87$ 24.82$ 25.81$ 26.84$ Units 2-15 14.00$ 14.56$ 15.14$ 15.75$ 16.38$ Units 16-30 12.61$ 13.11$ 13.63$ 14.18$ 14.75$ Units 31-50 11.26$ 11.71$ 12.18$ 12.67$ 13.18$ Units 51-75 10.34$ 10.75$ 11.18$ 11.63$ 12.10$ First Unit 22.95$ 23.87$ 24.82$ 25.81$ 26.84$ Units 2-5 11.93$ 12.41$ 12.91$ 13.43$ 13.97$ Units 6-10 11.26$ 11.71$ 12.18$ 12.67$ 13.18$ Units 11-20 10.80$ 11.23$ 11.68$ 12.15$ 12.64$ Units 21-30 10.34$ 10.75$ 11.18$ 11.63$ 12.10$ Units 31-50 9.41$ 9.79$ 10.18$ 10.59$ 11.01$ Units 51-100 8.95$ 9.31$ 9.68$ 10.07$ 10.47$

RESIDENTIAL MONTHLY RATES
Residential Service
Apartment Houses, Courts and Similar Dwellings
Trailer Courts and Mobile Home Parks
EXHIBIT B 10.d
Packet Pg. 110
Attachment: Resolution with Exhibit A and B (5471 : SB1383 solid waste rate proposition prop 218 Bin and Commercial MSW Cart Rates
Proposed
July 1, 2022
Estimated
July 1, 2023
Estimated
July 1, 2024
Estimated
July 1, 2025
Estimated
July 1, 2026
1 day per week $ 40.05 $ 43.32 41.65 $ 45.05 $ 46.85 $
2 days per week $ 67.67 $ 73.20 70.38 $ 76.13 $ 79.18 $ 3 days per week $ 95.26 $ 103.03 99.07 $ 107.15 $ 111.44 $ 4 days per week $ 122.90 $ 132.93 127.82 $ 138.25 $ 143.78 $ 5 days per week $ 150.52 $ 162.80 156.54 $ 169.31 $ 176.08 $ 6 days per week $ 178.11 $ 192.64 185.23 $ 200.35 $ 208.36 $ Extra pickup $ 20.71 $ 22.40 21.54 $ 23.30 $ 24.23 $
1 day per week $ 102.17 $ 110.51 106.26 $ 114.93 $ 119.53 $ 2 days per week $ 185.02 $ 200.12 192.42 $ 208.12 $ 216.44 $ 3 days per week $ 267.86 $ 289.71 278.57 $ 301.30 $ 313.35 $ 4 days per week $ 350.71 $ 379.33 364.74 $ 394.50 $ 410.28 $ 5 days per week $ 433.55 $ 468.93 450.89 $ 487.69 $ 507.20 $ 6 days per week $ 516.42 $ 558.56 537.08 $ 580.90 $ 604.14 $ Extra pickup $ 27.28 $ 29.50 28.37 $ 30.68 $ 31.91 $
1 day per week $ 115.97 $ 125.43 120.61 $ 130.45 $ 135.67 $ 2 days per week $ 212.64 $ 230.00 221.15 $ 239.20 $ 248.77 $ 3 days per week $ 309.29 $ 334.53 321.66 $ 347.91 $ 361.83 $ 4 days per week $ 405.94 $ 439.07 422.18 $ 456.63 $ 474.90 $ 5 days per week $ 502.59 $ 543.60 522.69 $ 565.34 $ 587.95 $ 6 days per week $ 599.27 $ 648.17 623.24 $ 674.10 $ 701.06 $ Extra pickup $ 32.23 30.99 $ 33.52 $ 34.86 $ 36.25 $
1 day per week $ 129.79 $ 140.38 134.98 $ 146.00 $ 151.84 $ 2 days per week $ 240.26 $ 259.86 249.87 $ 270.25 $ 281.06 $ 3 days per week $ 350.71 $ 379.33 364.74 $ 394.50 $ 410.28 $ 4 days per week $ 461.17 $ 498.80 479.62 $ 518.75 $ 539.50 $ 5 days per week $ 571.62 $ 618.26 594.48 $ 642.99 $ 668.71 $ 6 days per week $ 682.07 $ 737.72 709.35 $ 767.23 $ 797.92 $ Extra pickup $ 37.70 36.25 $ 39.21 $ 40.78 $ 42.41 $
1 day per week $ 243.02 $ 262.85 252.74 $ 273.36 $ 284.29 $ 2 days per week $ 360.40 $ 389.81 374.82 $ 405.40 $ 421.62 $ 3 days per week $ 484.64 $ 524.19 504.03 $ 545.16 $ 566.97 $ 4 days per week $ 608.93 $ 658.62 633.29 $ 684.96 $ 712.36 $ 5 days per week $ 733.20 $ 793.03 762.53 $ 824.75 $ 857.74 $ 6 days per week $ 857.46 $ 927.43 891.76 $ 964.53 $ 1,003.11 $ Extra pickup $ 42.07 $ 45.50 43.75 $ 47.32 $ 49.21 $
1 day per week $ 288.60 $ 312.15 300.14 $ 324.64 $ 337.63 $ 2 days per week $ 419.74 $ 453.99 436.53 $ 472.15 $ 491.04 $ 3 days per week $ 557.84 $ 603.36 580.15 $ 627.49 $ 652.59 $ 4 days per week $ 695.90 $ 752.69 723.74 $ 782.80 $ 814.11 $ 6 cubic yard bin
Commercial Monthly Rates (based on pickups per week)
96-gallon cart
2 cubic yard bin
3 cubic yard bin
4 cubic yard bin
5 cubic yard bin

10.d
Packet Pg. 111 Attachment: Resolution with Exhibit A and B (5471 : SB1383 solid waste rate proposition prop 218 hearing) 5 days per week $ 833.97 $ 902.02 867.33 $ 938.10 $ 975.62 $ 6 days per week $ 972.06 $ 1,051.38 1,010.94 $ 1,093.44 $ 1,137.18 $ Extra pickup $ 48.39 $ 52.34 50.33 $ 54.43 $ 56.61 $
1 day per week $ 167.81 $ 181.50 174.52 $ 188.76 $ 196.31 $ 2 days per week $ 303.47 $ 328.23 315.61 $ 341.36 $ 355.01 $ 3 days per week $ 439.30 $ 475.14 456.87 $ 494.15 $ 513.92 $ 4 days per week $ 575.17 $ 622.11 598.18 $ 646.99 $ 672.87 $ 5 days per week $ 711.04 $ 769.06 739.48 $ 799.82 $ 831.81 $ 6 days per week $ 846.93 $ 916.04 880.81 $ 952.68 $ 990.79 $ Extra pickup $ 44.74 $ 48.39 46.53 $ 50.33 $ 52.34 $
1 day per week$ 220.14 $ 238.11 228.95 $ 247.63 $ 257.54 $ 2 days per week$ 420.93 $ 455.28 437.77 $ 473.49 $ 492.43 $ 3 days per week$ 621.72 $ 672.45 646.59 $ 699.35 $ 727.32 $ 4 days per week$ 822.53 $ 889.65 855.43 $ 925.24 $ 962.25 $ 5 days per week$ 1,023.32 $ 1,106.82 1,064.25 $ 1,151.09 $ 1,197.13 $ 6 days per week$ 1,224.11 $ 1,323.99 1,273.07 $ 1,376.95 $ 1,432.03 $ Extra pickup$ 135.50 $ 146.56 140.92 $ 152.42 $ 158.52 $ 2 cubic yard compactor
4 cubic yard compactor

10.d
Packet Pg. 112 Attachment: Resolution with Exhibit A and B (5471 : SB1383 solid waste rate proposition prop 218 hearing) Commercial and Multi-Family Food and Green Waste
Container Rates
Proposed
July 1, 2022
Estimated
July 1, 2023
Estimated
July 1, 2024
Estimated
July 1, 2025
Estimated
July 1, 2026
1 day per week $ 40.05 $ 43.32 41.65 $ 45.05 $ 46.85 $ 2 days per week $ 80.10 $ 86.63 83.30 $ 90.10 $ 93.70 $ 3 days per week $ 120.16 $ 129.97 124.97 $ 135.17 $ 140.58 $ 4 days per week $ 160.21 $ 173.28 166.62 $ 180.21 $ 187.42 $ 5 days per week $ 200.26 $ 216.60 208.27 $ 225.26 $ 234.27 $ 6 days per week $ 240.31 $ 259.92 249.92 $ 270.32 $ 281.13 $ Extra pickup $ 20.71 $ 22.40 21.54 $ 23.30 $ 24.23 $ 1 day per week $ 40.05 $ 43.32 41.65 $ 45.05 $ 46.85 $ 2 days per week $ 80.10 $ 86.63 83.30 $ 90.10 $ 93.70 $ 3 days per week $ 120.16 $ 129.97 124.97 $ 135.17 $ 140.58 $ 4 days per week $ 160.21 $ 173.28 166.62 $ 180.21 $ 187.42 $ 5 days per week $ 200.26 $ 216.60 208.27 $ 225.26 $ 234.27 $ 6 days per week $ 240.31 $ 259.92 249.92 $ 270.32 $ 281.13 $ Extra pickup $ 20.71 $ 22.40 21.54 $ 23.30 $ 24.23 $ 1 day per week $ 161.81 $ 175.01 168.28 $ 182.01 $ 189.29 $ 2 days per week $ 323.62 $ 350.02 336.56 $ 364.02 $ 378.58 $ 3 days per week $ 485.45 $ 525.06 504.87 $ 546.06 $ 567.90 $ 4 days per week $ 647.26 $ 700.08 673.15 $ 728.08 $ 757.20 $ 5 days per week $ 809.07 $ 875.09 841.43 $ 910.09 $ 946.49 $ 6 days per week $ 970.87 $ 1,050.09 1,009.70 $ 1,092.09 $ 1,135.77 $ Extra pickup $ 83.74 $ 90.57 87.09 $ 94.19 $ 97.96 $ 1 day per week $ 40.05 $ 43.32 41.65 $ 45.05 $ 46.85 $ 2 days per week $ 80.10 $ 86.63 83.30 $ 90.10 $ 93.70 $ 3 days per week $ 120.16 $ 129.97 124.97 $ 135.17 $ 140.58 $ 4 days per week $ 160.21 $ 173.28 166.62 $ 180.21 $ 187.42 $ 5 days per week $ 200.26 $ 216.60 208.27 $ 225.26 $ 234.27 $ 6 days per week $ 240.31 $ 259.92 249.92 $ 270.32 $ 281.13 $ Extra pickup $ 20.71 $ 22.40 21.54 $ 23.30 $ 24.23 $ 1 day per week $ 120.16 $ 129.97 124.97 $ 135.17 $ 140.58 $ 2 days per week $ 240.31 $ 259.92 249.92 $ 270.32 $ 281.13 $ 3 days per week $ 360.48 $ 389.90 374.90 $ 405.50 $ 421.72 $ 4 days per week $ 480.64 $ 519.86 499.87 $ 540.65 $ 562.28 $ 5 days per week $ 600.80 $ 649.82 624.83 $ 675.81 $ 702.84 $ 6 days per week $ 720.94 $ 779.77 749.78 $ 810.96 $ 843.40 $ Extra pickup $ 62.18 $ 67.26 64.67 $ 69.95 $ 72.75 $ Commercial Recycling Container Rates
Proposed
July 1, 2022
Estimated
July 1, 2023
Estimated
July 1, 2024
Estimated
July 1, 2025
Estimated
July 1, 2026
96-gallon recyle cart
35-gallon commercial food waste cart
Commercial and Multi-Family Monthly Rates (based on pickups per week) 60-gallon commercial food waste cart
2 cubic yard commercial food waste bin
90-gallon multi-family organics waste cart
300-gallon multi-family organic waste cart

10.d
Packet Pg. 113 Attachment: Resolution with Exhibit A and B (5471 : SB1383 solid waste rate proposition prop 218 hearing) 1 day per week $ 15.02 $ 32.49 31.24 $ 33.79 $ 35.14 $
2 days per week $ 25.38 $ 54.90 52.79 $ 57.10 $ 59.39 $ 3 days per week $ 35.72 $ 77.27 74.30 $ 80.36 $ 83.58 $ 4 days per week $ 46.09 $ 99.70 95.87 $ 103.69 $ 107.84 $ 5 days per week $ 56.44 $ 122.10 117.41 $ 126.98 $ 132.06 $ 6 days per week $ 66.79 $ 144.48 138.92 $ 150.26 $ 156.27 $ Extra pickup $ 7.77 $ 16.80 16.16 $ 17.48 $ 18.17 $
1 day per week $ 38.31 $ 82.89 79.70 $ 86.21 $ 89.66 $
2 days per week $ 69.38 $ 150.09 144.32 $ 156.09 $ 162.33 $ 3 days per week $ 100.45 $ 217.29 208.93 $ 225.98 $ 235.02 $ 4 days per week $ 131.52 $ 284.50 273.56 $ 295.88 $ 307.72 $ 5 days per week $ 162.58 $ 351.70 338.17 $ 365.77 $ 380.40 $ 6 days per week $ 193.66 $ 418.92 402.81 $ 435.68 $ 453.11 $ Extra pickup $ 10.23 $ 22.13 21.28 $ 23.02 $ 23.94 $
1 day per week $ 43.49 $ 94.08 90.46 $ 97.84 $ 101.75 $ 2 days per week $ 79.74 $ 172.49 165.86 $ 179.39 $ 186.57 $ 3 days per week $ 115.98 $ 250.90 241.25 $ 260.94 $ 271.38 $ 4 days per week $ 152.23 $ 329.31 316.64 $ 342.48 $ 356.18 $ 5 days per week $ 188.47 $ 407.70 392.02 $ 424.01 $ 440.97 $ 6 days per week $ 224.72 $ 486.13 467.43 $ 505.58 $ 525.80 $ Extra pickup $ 11.62 $ 25.14 24.17 $ 26.15 $ 27.20 $
1 day per week $ 48.67 $ 105.29 101.24 $ 109.50 $ 113.88 $ 2 days per week $ 90.10 $ 194.90 187.40 $ 202.70 $ 210.81 $ 3 days per week $ 131.52 $ 284.50 273.56 $ 295.88 $ 307.72 $ 4 days per week $ 172.94 $ 374.11 359.72 $ 389.07 $ 404.63 $ 5 days per week $ 214.36 $ 463.69 445.86 $ 482.24 $ 501.53 $ 6 days per week $ 255.78 $ 553.29 532.01 $ 575.42 $ 598.44 $ Extra pickup $ 13.59 $ 29.41 28.28 $ 30.59 $ 31.81 $
4 cubic yard recycle bin
2 cubic yard recycle bin
3 cubic yard recycle bin

10.d
Packet Pg. 114 Attachment: Resolution with Exhibit A and B (5471 : SB1383 solid waste rate proposition prop 218 hearing) Temporary Bin Service
Proposed
July 1, 2022
Estimated
July 1, 2023
Estimated
July 1, 2024
Estimated
July 1, 2025
Estimated
July 1, 2026
3 cubic yard bin, per dump $ 71.78 69.02 $ 74.65 $ 77.64 $ 80.75 $ 4 cubic yard bin, per dump $ 86.15 82.84 $ 89.60 $ 93.18 $ 96.91 $ 6 cubic yard bin, per dump $ 129.24 124.27 $ 134.41 $ 139.79 $ 145.38 $ Bin rental (when less than one dump each 14 day period) $ 43.09 41.43 $ 44.81 $ 46.60 $ 48.46 $ Blocked pickup $ 50.27 48.34 $ 52.28 $ 54.37 $ 56.54 $
Locking Bins - monthly service charge
Proposed
July 1, 2022
Estimated
July 1, 2023
Estimated
July 1, 2024
Estimated
July 1, 2025
Estimated
July 1, 2026
1x week $ 7.18 6.90 $ 7.47 $ 7.77 $ 8.08 $
2x week $ 14.35 13.80 $ 14.92 $ 15.52 $ 16.14 $
3x week $ 21.54 20.71 $ 22.40 $ 23.30 $ 24.23 $
4x week $ 28.74 27.63 $ 29.89 $ 31.09 $ 32.33 $
5x week $ 35.89 34.51 $ 37.33 $ 38.82 $ 40.37 $
6x week $ 43.09 41.43 $ 44.81 $ 46.60 $ 48.46 $
Other Residential Services
Proposed
July 1, 2022
Estimated
July 1, 2023
Estimated
July 1, 2024
Estimated
July 1, 2025
Estimated
July 1, 2026
Cart Redlivery Fee - Stop Service, per occurrence $ 27.82 26.75 $ 28.93 $ 30.09 $ 31.29 $ Cart Replacement Fee – After 1 free per 12-month period (Customer Damaged or Stolen) $ 57.78 55.56 $ 60.09 $ 62.49 $ 64.99 $ Other Commercial Services
Proposed
July 1, 2022
Estimated
July 1, 2023
Estimated
July 1, 2024
Estimated
July 1, 2025
Estimated
July 1, 2026
Commercial Bulky Item Pickup $ 28.74 27.63 $ 29.89 $ 31.09 $ 32.33 $ Extra Bin Cleanings (beyond one free per year) $ 57.44 55.23 $ 59.74 $ 62.13 $ 64.62 $ Bin Overflow Charge( after customer has been nottified of charge) $ 64.64 62.15 $ 67.23 $ 69.92 $ 72.72 $ Contamination Charge, per occurance $ 55.63 53.49 $ 57.86 $ 60.17 $ 62.58 $ Commercial Setup Fee, per occurance $ 27.82 26.75 $ 28.93 $ 30.09 $ 31.29 $ Commercial CUB, Bin Delivery Fee, per occurrence $ 33.38 32.10 $ 34.72 $ 36.11 $ 37.55 $ Commercial Cart Delivery Fee, per occurrence $ 27.82 26.75 $ 28.93 $ 30.09 $ 31.29 $ Additional Commercial Services

10.d
Packet Pg. 115
Attachment: Resolution with Exhibit A and B (5471 : SB1383 solid waste rate proposition prop 218 Bin Redelivery Fee - Stop Service, per occurrence $ 33.38 32.10 $ 34.72 $ 36.11 $ 37.55 $ Cart Replacement Fee - (Customer Damaged or Stolen) $ 57.78 55.56 $ 60.09 $ 62.49 $ 64.99 $ Bulk Compost (per ton) $ 26.00 25.00 $ 27.04 $ 28.12 $ 29.24 $

10.d
Packet Pg. 116
Attachment: Resolution with Exhibit A and B (5471 : SB1383 solid waste rate proposition prop 218 Service
Proposed July 1,
2022
Estimated
July 1, 2023
Estimated
July 1, 2024
Estimated
July 1, 2025
Estimated
July 1, 2026
Standard Roll-Off Box - Rate per pull $ 253.72 $ 274.42 263.87 $ 285.40 $ 296.82 $ Compactor Rolll-Off Box - Rate per Pull (excluding rental) $ 338.80 $ 366.44 352.35 $ 381.10 $ 396.34 $ *COD Roll-off 10 or 40-yard (up to 10 tons) - C&D Processing $ 1,013.11 $ 1,095.78 1,053.63 $ 1,139.61 $ 1,185.19 $ *COD Roll-off 10 or 40-yard (up to 10 tons) - Landfill $ 895.43 $ 968.50 931.25 $ 1,007.24 $ 1,047.53 $ Tonnage Charge, per ton (refuse) $ 64.17 $ 69.41 66.74 $ 72.19 $ 75.08 $ Tonnage Charge, per ton (construction and demolition debris) $ 75.94 $ 82.14 78.98 $ 85.43 $ 88.85 $ Recyclable Material Roll-Off ServiceOverweight per Ton Charge (per ton beyond 10 tons/load)Roll-Off Box Rental Charge - per day for ech day beyond 14 days $ 21.26 $ 22.99 22.11 $ 23.91 $ 24.87 $ Dry Run - pickup of empty roll-off box $ 141.76 $ 153.33 147.43 $ 159.46 $ 165.84 $ Blocked Pickup $ 70.87 $ 76.65 73.70 $ 79.72 $ 82.91 $ Overweight compactor transportation fee $ 556.49 $ 601.90 578.75 $ 625.98 $ 651.02 $ Compactor Cleaning Service $ 363.76 $ 393.44 378.31 $ 409.18 $ 425.55 $ Roll-Off Rates
150% of Pull Rate
150% of Gate Rate
*COD roll-off box customers pre-pay for one pull plus 10 tons, with unused balance refunded within 30 days of pull.

10.d
Packet Pg. 117
Attachment: Resolution with Exhibit A and B (5471 : SB1383 solid waste rate proposition prop 218 City Council of the City of El Centro Meeting: 06/07/22 11:30 AM 1275 Main Street Department: Community Development
El Centro, CA 92243 Category: Public Hearing
Prepared By: Christian Rodriguez
SCHEDULED Department Head: Angel Hernandez
ORDINANCE (ID # 5537) DOC ID: 5537
Public hearing to consider the recommendation of the
Planning Commission regarding Change of Zone 22-02
CITY MANAGER’S RECOMMENDATION:

Introduce Ordinance No. 22- ORDINANCE OF THE CITY COUNCIL OF THE CITY

OF EL CENTRO AMENDING THE ZONING MAP OF THE CITY OF EL CENTRO PERTAINING TO CHANGE OF ZONE 22-02, waive reading and approve as first reading and authorize City Clerk to place on the next agenda for second reading and adoption.

FISCAL IMPACT:

No impact anticipated
STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

Goal 6: Strengthen El Centro’s resilience by diversifying the economy, recruiting new businesses, creating opportunities for business growth, retaining businesses, and maximizing efficiency. Action 6.10: Prioritize permit streamlining and provide an updated General Plan and other long-range plans that encourage growth opportunities and private development.

DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTORS LICENSE, REFERENCE CHECKS, INSURANCE, ETC:

Not Applicable
BACKGROUND:

The proposed project involves property situated at the northeast corner of Dogwood Avenue and Main Street (Refer to Exhibit A - Location Map). The Applicant, STOS Brothers/Penske, has requested that 550 E. Main Street, further identified as APN 054- 271-030 be re-zoned to General Manufacturing to be consistent with the General Plan designation of General Industrial (Refer to Exhibit B - Zoning Map). The change of zone would allow Penske, a commercial truck rental facility, to operate out of the property.

Surrounding Area- The subject property is currently comprised of a roughly 20,000 square foot vacant warehouse on a 2.39-acre lot with access from E. Main Street. The project site is adjacent to heavy commercial and industrial uses.

City Impacts- The project site is presently underdeveloped and thus lacks improvements including but not limited to utility connections and both onsite/offsite improvements. If the change of zone is approved, the applicant will be required to go through a site plan review for compliance with development standards. A traffic study will also be required to determine impacts to the intersection of E. Main Street and Dogwood Avenue.
11 Packet Pg. 118
Ordinance (ID # 5537) Meeting of June 7, 2022
Land Use Compatibility- The re-zoning from manufacturing business park uses to general manufacturing will have less than significant impacts as determined by the Vehicle Miles Traveled (VMT) Analysis in the Program Environmental Impact Report (PEIR) adopted by the City in June of 2021 (Exhibit C - Notice of Determination).

However, the project will go through further review via a site plan review to determine specific project impacts based on the proposed site plan and improvements proposed.

Furthermore, depending on the proposed project, it may also be subject to further environmental review per CEQA guidelines.

ENVIRONMENTAL COMPLIANCE & NOTICING REQUIREMENTS
The Change of Zone (22-02) is subject to the California Environmental Quality Act (CEQA) and is tiering from the PEIR that was prepared for the most recent General Plan update The City reviewed the PEIR and adopted it in June of 2021. The public hearing scheduled for June 7, 2022 was duly noticed in the Imperial Valley Press, a newspaper of general circulation and a Notice of Public Hearing was sent to all property owners within 300-feet of the property, and a Notice of Public Hearing was placed on the property subject to the Change of Zone. A draft Ordinance to amend the Zoning Map is attached as Exhibit D - Ordinance.

CONCLUSION:

Introduce Ordinance No. 22- ORDINANCE OF THE CITY COUNCIL OF THE CITY

ATTACHMENTS:
• Exhibit A - Project Location Map (PDF)
• Exhibit B - Zoning Map (PDF)
• Exhibit C - NOD (PDF)
• Exhibit D - Ordinance (DOCX)
11 Packet Pg. 119
COZ 22-02 STOS Brothers/PENSKE 11.a
Packet Pg. 120 Attachment: Exhibit A - Project Location Map (5537 : Change of Zone 22-02 at 550 E. Main Street)

MBP MBP

CH CH CH
ML
CH
MBP
CH
ML
MBP
MBP
CH
CH
ML
CH
CH
MG MG
CH
CH
CH CH
CH
MG
CH
CH
CH CH
CH CH
MBP
R1
R1
MG
R1
Main St
Dogwood Ave
Zoning Map
Change of Zone 22-02
0 200 400 800
Feet
¯

MBP MBP
MBP
ML
CH

11.b
Packet Pg. 121 Attachment: Exhibit B - Zoning Map (5537 : Change of Zone 22-02 at 550 E. Main Street) A vr
SVERJAL CdUNf^CAlSo
JUN 1 7 2021
Chuck Storey - County Clerk
Notice of Determination Appendix D
Print Form
To: From:

O Office of Planning and Research Public Agency: City of El Centra as. Mail: Street Address: 1275 W. Main Street
. ^ P.O. Box 3044 1400 Tenth St., Rm 113
Sacramento, OA 95812-3044 Sacramento, OA 95814
El Centre, CA 92243
Goritact: Angel Hernandez
Phone: (760) 337-4545
H County Clerk
County of: Imperiar ' Lead Agency (if different from above):

Address: 940 W. Mam Street. Suite 202 •
El Centro, CA 92243 Address:

Contact:.

Phone:

SUBJECT: Filing of Notice of Determination in compliance with Section 21108 or 21152 of the Public Resources Code.

State Clearinghouse Number (if submitted to State Clearinahousel: 2020070349 POSTED Project Title; City of El Centro General Plan Update
Project Applicant: City of El Centro JUN 1 ^ 2021
Project Location (include county): El Centro (City Wide) Imperial County WPEfflAL Project Description:

The City is undertaking updates to the Land Use Element and Mobility Element of its General Plan and the creation of a new Environmental Justice Element. The General Plan was last updated in 2004. The updates are being funded by a grant from the Sustainable Communities Program administered by the California Department of Transportation. The intent of the updates is to improve sustainability, promote public health, and anticipate future advancements in transportation technology. □ This is to advise that the City of El Centro has approved the above (S Lead Agency or □ Responsible Agency)
described project on 6/15/2021 and has made the following determinations regarding the above (date)
described project.

1. The project [jS] will □ will not] have a significant effect on the environment.

2. H An Environmental Impact Report was prepared for this project pursuant to the provisions of CEQA. □ A Negative Declaration was prepared for this project pursuant to the provisions of CEQA.

3. Mitigation measures [H were □ were not] made a condition of the approval of the project.

4. A mitigation reporting or monitoring plan [g] was □ was not] adopted for this project.

5. A statement of Overriding Considerations [H was O was not] adopted for this project.

6. Findings [IH were Q were not] made pursuant to the provisions of CEQA.

This is to certify that the final EIR with comments and responses and record of project approval, or the negative Declaration, is available to the General Public at:

City Hall, 1275 W. Main Street. El Centro, CA 92243
Signature (Public Agency): Title: Associate Planner
Date: 6/16/2021 Date Received for filing at OPR:

Authority cited: Sections 21083, Public Resources Code.

Reference Section 21000-21174, Public Resources Code. Revised 2011 POST FOR 30 DAYS

11.c
Packet Pg. 122 Attachment: Exhibit C - NOD (5537 : Change of Zone 22-02 at 550 E. Main Street) 05/2022/liz/A22-0099/Reso/Ord-Change of Zone 22-02
ORDINANCE NO. 22-

ORDINANCE OF THE CITY COUNCIL OF THE CITY

OF EL CENTRO AMENDING THE ZONING MAP OF

THE CITY OF EL CENTRO PERTAINING TO CHANGE
OF ZONE 22-02

THE CITY COUNCIL OF THE CITY OF EL CENTRO, CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. The Zoning Map of the City of El Centro, California is hereby amended to provide:
“The following property which consists of approximately 2.39 acres of land, located at northeast corner of Dogwood Avenue and E. Main Street, further identified by APN 054- 271-030, is hereby re-zoned from MBP (Manufacturing Business Park) to MG (General Manufacturing).”
Section 2. This Amendment shall be given appropriate enumeration in the files of the City Clerk regarding the Zoning Map.

Section 3. This Ordinance shall take effect thirty (30) days from and after its adoption. Within fifteen (15) days after adoption, it shall be published once in a newspaper, published and circulated within the City of El Centro, California.

INTRODUCED at a regular meeting of the City Council of the City of El Centro, California, held on the 7
th
day of June, 2022.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of El Centro, California, held on the day of , 2022.

CITY OF EL CENTRO
By
ATTEST: Tomas Oliva, Mayor
By
Norma Wyles, City Clerk

11.d
Packet Pg. 123 Attachment: Exhibit D - Ordinance (5537 : Change of Zone 22-02 at 550 E. Main Street) 05/2022/liz/A22-0099/Reso/Ord-Change of Zone 22-02

APPROVED AS TO
FORM: Office of the City
Attorney
By
Elizabeth L. Martyn, City Attorney

STATE OF CALIFORNIA )

COUNTY OF IMPERIAL )
ss CITY OF EL CENTRO )
I, Norma Wyles, City Clerk of the City of El Centro, California, do hereby certify that the foregoing Ordinance No. 22- had its first reading on the _________, 2022, and had its second reading on , 2022, and was passed by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

By
Norma Wyles, City Clerk

11.d
Packet Pg. 124 Attachment: Exhibit D - Ordinance (5537 : Change of Zone 22-02 at 550 E. Main Street) City Council of the City of El Centro Meeting: 06/07/22 11:30 AM 1275 Main Street Department: Human Resources
El Centro, CA 92243 Category: Personnel
Prepared By: Dulce Bedolla
SCHEDULED Department Head: Dulce Bedolla
ACTION ITEM (ID # 5565) DOC ID: 5565
Adoption of Juneteenth as a Holiday in the City of El Centro CITY MANAGER’S RECOMMENDATION:

Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CENTRO DECLARING JUNE NINETEENTH (Juneteenth) TO BE A CITY

HOLIDAY
FISCAL IMPACT:

Approximately $60,000
STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTORS LICENSE, REFERENCE CHECKS, INSURANCE, ETC:

BACKGROUND:

In 2021, President Biden signed the Juneteenth National Independence Day Act marking the independence of enslaved Black people in the United States and establishing June 19 as a federal holiday. Also, on June 18, 2021, Governor Newsom issued a proclamation declaring Juneteenth National Freedom Day: A Day of Observance in California.

DISCUSSION:

During labor negotiations, bargaining units within the City requested Juneteenth to be a City holiday, it appears not all MOU's will be in place before the Juneteenth holiday occurs. Therefore, it is recommended and in the best interest of the City of El Centro to join in that federal holiday by declaring June 19th to be a City holiday to be called "Juneteenth" and to be a paid holiday for City Employees.

If approved, this resolution shall be effective immediately upon adoption.

CONCLUSION:

Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CENTRO DECLARING JUNE NINETEENTH (Juneteenth) TO BE A CITY

HOLIDAY
ATTACHMENTS:
• Juneteenth Resolution 22- (PDF)
12 Packet Pg. 125
05/2022/liz/A22-0109/Reso/JuneteenthCityHoliday 1
RESOLUTION NO. 22-

RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF EL CENTRO DECLARING JUNE NINETEENTH (Juneteenth)

TO BE A CITY HOLIDAY
WHEREAS, in 2021, President Biden signed the Juneteenth National Independence Day Act marking the independence of enslaved Black people in the United States and establishing June 19 as a federal holiday; and
WHEREAS, on June 18, 2021, Governor Gavin Newsom issued a proclamation declaring Juneteenth National Freedom Day: A Day of Observance in California; and WHEREAS, during labor negotiations, each bargaining unit within the City requested June 19th as a paid holiday, which the City agreed to do in each MOU as of the effective date of July 1, 2022; and
WHEREAS, it appears that not all, if any, MOU’s will be in place before the Juneteenth holiday occurs; and
WHEREAS, the City Council finds it to be fitting and proper and in the best interests of the City of El Centro to join in that federal holiday by declaring June 19th to be a City holiday to be called “Juneteenth”; and
WHEREAS, the City Council further finds that it is appropriate to provide for Juneteenth to be a paid holiday for City employees.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL CENTRO DOES HEREBY DECLARE AND ORDAIN AS FOLLOWS:

1. That the Recitals set out above are true and correct.

2. That June 19 each year is hereby declared to be a City holiday to be known as "Juneteenth.”

3. That the City Manager or designee shall take all necessary steps to implement this Resolution.

4. That this Resolution shall be effective immediately upon adoption.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of El Centro held on the 7th day of June, 2022.

CITY OF EL CENTRO
_______________________
Tomas Oliva, Mayor

12.a
Packet Pg. 126 Attachment: Juneteenth Resolution 22- (5565 : Adoption of Juneteenth) 05/2022/liz/A22-0109/Reso/JuneteenthCityHoliday 2
ATTEST:

By: __________________________
Norma Wyles, City Clerk
APPROVED AS TO FORM:

By: ________________________________
Elizabeth Martyn, City Attorney

STATE OF CALIFORNIA) COUNTY OF IMPERIAL)
ss.

CITY OF EL CENTRO )
I, Norma Wyles, City Clerk of the City of El Centro, California, do hereby certify that the foregoing Resolution No. 22- was duly and regularly adopted at an adjourned regular meeting of the City Council of the City of El Centro held on the 7th day of June, 2022 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________
(SEAL) Norma Wyles, City Clerk

12.a
Packet Pg. 127 Attachment: Juneteenth Resolution 22- (5565 : Adoption of Juneteenth) City Council of the City of El Centro Meeting: 06/07/22 11:30 AM 1275 Main Street Department: City Clerk's Office
El Centro, CA 92243 Category: Ordinance
Prepared By: Norma Wyles
SCHEDULED Department Head: Norma Wyles
ACTION ITEM (ID # 5563) DOC ID: 5563
Adoption of Fireworks Social Host Ordinance
CITY MANAGER’S RECOMMENDATION:

Adopt Urgency Ordinance No. 22- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL CENTRO, CALIFORNIA AMENDING CHAPTER 10, ARTICLE V OF THE CITY CODE ENTITLED “FIREWORKS”.

FISCAL IMPACT:

None
STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

None
DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTORS LICENSE, REFERENCE CHECKS, INSURANCE, ETC:

N/A
BACKGROUND:

Illegal fireworks are those that do not meet the requirements of California state law, as set out in the City’s fireworks ordinance. Illegal fireworks are defined as “dangerous fireworks” in Chapter 10, Article V of the City Code, including “rockets, firecrackers, roman candles, squibs, torpedo, wire core sparklers, black cartridges, aerial shells or other combustible device or explosive substance of a kind.” (See City Code Section 10-67). In general, no exploding or fireworks that leave the ground are permitted in California. According to the Interim Fire Chief, the safe and sane fireworks allowed in El Centro and sold by local non-profits are not creating the problem; the import and sale of illegal fireworks is. Recently, the Fire Department found and seized 130 pounds of illegal fireworks being sold by a local business. Those fireworks came from Arizona and were manufactured in China.

Unfortunately, enforcement of this provision has been generally ineffective. The problem is that in order to cite a person for using or possessing illegal fireworks, a police officer must actually witness the event. Alternatively, the officer must find a witness who says the suspect set off the illegal firework and is willing to sign a citizens' arrest form. In most cases, parties that call to complain about illegal fireworks can provide law enforcement a general idea about where the fireworks are coming from, but are unable to identify the specific person engaging in the illegal conduct. At the same time, calls to PD dispatch regarding fireworks, in general, have increased from 23 in 2017 to 145 in 2021.

At the May 17, 2022, City Council meeting, the City Council heard an informational item regarding approaches for dealing with illegal fireworks. The Council asked for an analysis of the Ninth Circuit case regarding enforcement on reservation land of the sale 13 Packet Pg. 128
Action Item (ID # 5563) Meeting of June 7, 2022
of fireworks illegal under California law. The 1993 case involved the Quechan Tribe, which was sued by the State Fire Marshal to assert criminal violations of California’s illegal fireworks laws. The case remains good law. The Interim Fire Chief has indicated that there is a deputy Fire Marshal located in El Centro. The Interim Fire Chief also is reaching out to federal agencies about enforcement.

As part of the May 17, 2022, presentation, the TNT representative also recommended the adoption of a social host ordinance. Such an ordinance makes the property owner legally responsible for conduct on that property. Social host liability has been used by cities for many years to make the owner or person in charge of property liable in the event of alcohol abuse by minors on the property.

By imposing social host liability for illegal fireworks, if officers witness illegal fireworks possessed or being discharged from (or near) a particular piece of property, they will be able to determine who is in charge of the property and cite that person. In the Imperial Valley, the City of Brawley adopted such an ordinance last year, and the City of Imperial recently did so.

The Brawley social host ordinance coupled social host liability with significantly higher administrative fines to try to create a sufficient disincentive for residents to significantly curtail the use of illegal fireworks. Brawley reports that the ordinance did create a deterrent, although there were issues with the court upholding the additional fine.

DISCUSSION:

At its May 24, 2022 special meeting, the Council reviewed a draft social host ordinance and provided confirmation to move forward with it. In addition, the Council discussed its scope: i.e. those property owners not present should not be liable unless they arrange for the fireworks, the increased fines should be included, and property managers should be included. The attached urgency ordinance includes those changes as well as the necessary urgency findings for the ordinance to take effect immediately. The ordinance requires a 4/5ths vote.

In addition, the revised ordinance contains language requested by the Interim Fire Chief that confirms the process used by the State Fire Marshal to allow professional pyrotechnics display, including a permit and proof of liability insurance from the company providing the fireworks.

The ordinance will be publicized through the City of El Centro webpage, the City, Fire Department and Police Department social media pages, and print materials will be available at various City facilities and safe and sane fireworks stands. Additionally, the City can utilize their portable signs boards that can be moved to different locations within the City.

CONCLUSION:

It is recommended that Urgency Ordinance No. 22- be adopted to take effect immediately.
13 Packet Pg. 129
Action Item (ID # 5563) Meeting of June 7, 2022
ATTACHMENTS:
• Fireworks Ordinance (DOCX)
13 Packet Pg. 130
06/2022/liz/A22-0104/FireworksSocialHostOrdinance
ORDINANCE NO. 22-_____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL CENTRO, CALIFORNIA AMENDING CHAPTER 10, ARTICLE V OF THE EL CENTRO MUNICIPAL CODE ENTITLED “FIREWORKS”
Section 1. The City Council of the City of El Centro, California, finds as follows:
(a) That the continued use of dangerous or illegal fireworks within the City is an immediate threat to public health, safety and welfare because of the size of such fireworks, the lack of safeguards in their manufacture and residents lack of compliance with fireworks laws; and
(b) That traditional law enforcement methods are not effective in deterring such use; and
(c) That public education and the availability of safe and sane fireworks has not been effective in deterring such use; and
(d) That individual use of fireworks should be distinguished from permitted fireworks displays conducted by pyrotechnic professionals; and
(e) With the Fourth of July approaching, it is urgent and a matter of immediate public health and safety to adopt this ordinance, to be effective immediately, to address the use of illegal fireworks and thereafter publicize its provisions before that holiday.

Section 2. The City Council of the City of El Centro, California, does ordain as follows:

Chapter 10, Article V is amended to read as follows:
(a) Section 10.66 is amended to add the following definitions:

Dangerous fireworks or illegal fireworks shall have the same meaning as set forth in Health and Safety Code §§ 12505 and 12561 and the relevant sections of Title 19, Code of Regulations, subchapter 6 which are hereby incorporated by reference.

Host means the person physically present and in charge of private property during the possession or use of any illegal fireworks, including, but not limited to, an owner, tenant, landlord or property manager. Host also means a person who consents to or organizes, supervises, officiates, conducts, controls, or is otherwise in charge of illegal fireworks possession or use on the property whether or not that person is present during the activity that is the subject of this Article, including but not limited to an owner, tenant, landlord or property manager.

Organization means a public agency or other corporation located within the City Public right of way means any City property, including that City property over which the City has granted an easement to another public agency

13.a
Packet Pg. 131 Attachment: Fireworks Ordinance (5563 : Adoption of Fireworks Social Host Ordinance) 06/2022/liz/A22-0104/FireworksSocialHostOrdinance
Street means any City street or alley, including those granted to the City by easement. (b) Section 10.67 is amended to read as follows:

Sec. 10-67. - General prohibition against possession, retail sale or use of dangerous or illegal fireworks.
(a) Except as otherwise provided in this Article, no person shall possess, sell, use, display or explode any dangerous or illegal fireworks, including, but not limited to, any rocket, firecracker, roman candle, squib, torpedo, wire core sparkler, black cartridge, aerial shell, mortar or other combustible device or explosive substance or any kind of fireworks, by whatever name known, within the city. (b) The Fire Chief and Police Chief may seize, take, remove or cause to be removed, at the expense of the owner or any vendor, any and all such illegal or dangerous fireworks offered or exposed for sale, stored or held in violation of this Article, the state fireworks law or the California Fire Code. (c) Sections 10-80 and 10-81 are repealed in their entirety and amended to read as follows and Sections 10.82 – 10.85 are added to read as follows:

Sec. 10.80. – Supervised Public Display; Permit Required (a) Any Organization desiring to hold a public display of fireworks within the City shall submit an application for a permit to do so to the Fire Chief at least two (2) calendar months prior to the date of the proposed event. (1) Any permit granted for such display shall be lawful only for that event. (2) No permit granted under this section shall be transferable. (b) The Fire Chief shall adopt reasonable rules and regulations for granting such permits for supervised public displays of fireworks to Organizations. (c) Each such display must be handled and presented by a competent operator approved by the Fire Chief and licensed by the State of California. (d) Such display must be located and discharged in a manner that in the sole opinion of the Fire Chief is not hazardous to persons or property. (e) Such Organization or operator shall furnish an indemnification in the form specified by the Fire Chief.
(f) In addition, the Organization or operator shall proof of current commercial general liability coverage in an amount of $5M generally liability insurance (or such other amount as agreed upon by the Fire Chief and risk manager) to address the potential for damage to persons or property that may arise from the permitted display and the acts of the Organization, its agents employees or contractors. The

13.a
Packet Pg. 132 Attachment: Fireworks Ordinance (5563 : Adoption of Fireworks Social Host Ordinance) 06/2022/liz/A22-0104/FireworksSocialHostOrdinance
certificate of insurance shall be endorsed to name the City, its officers, agents and employees as additional insureds.
(g) Any permit issues shall be only for the event, date and time named and is nonrenewable and non-transferable. 10-81. - Host Liability.
(a) Except as provided in (3) below, no Host shall allow any person to violate a provision of this Article on the Host’s private property or on the public right of way or street adjacent or proximate to the Host’s private property. (1) Where there is more than one Host, each Host is liable jointly and severally.
(2) No Host shall aid or abet another person’s violation of a provision of this Article.. A Host aids and abets another person’s violation of a provision of this Article if the Host knows of the other person’s unlawful purpose and then specifically intends to, and does in fact, supervise, control, aid, facilitate, promote, encourage, or instigate the other person’s commission of that violation.
(3) The provisions this section shall not apply to:
(i) The possession, manufacture, storage, display, sale, purchase, use, or discharge of fireworks as permitted under this Chapter, state or federal law; or
(ii) A Host who initiates contact with law enforcement or fire officials to assist in removing any person from its property or terminating an activity in order to comply with this Article, if the request for assistance is made before any other person contacts law enforcement or fire officials to complain about the violation of this Article
Sections 10.82. – Liability for Response Costs
(a) In addition to any administrative penalty under Section 10.81 or any penalty under any other section of this City Code or state law, any Host who violates this Article is liable for the response costs relating to the violation. (1) As used here, “response costs” include the following: the fully burdened cost of police, fire, code enforcement or other City personnel required to deal with the violation, the cost of seizure and disposal of the illegal fireworks, and attorney fees for any and all notices, meetings, or administrative or court proceedings to enforce this ordinance.

13.a
Packet Pg. 133 Attachment: Fireworks Ordinance (5563 : Adoption of Fireworks Social Host Ordinance) 06/2022/liz/A22-0104/FireworksSocialHostOrdinance
(2) Where there is more than one Host, each Host is liable jointly and severally for response costs.
(b) The amount of response costs constitutes a debt owed to the City which may be collected in any manner legally available to the City.
(c) Notice of the response costs shall contain the following itemized information:
(1) The name of the Host(s) who is liable for the response costs; (2) The address of the private property where the incident occurred; (3) The date and time of the response;
(4) The itemized cost of law enforcement, fire, or other emergency response personnel who responded as well as code enforcement or other City personnel and the associated legal costs
(d) Notice shall be served on each Host at the property address by first-class mail or by any means provided for service of a civil complaint. (e) Payment for response costs shall be remitted to the City within 30 calendar days of the date of the notice.
(f) The payment of any such costs shall be stayed upon the filing of a timely appeal under Section 10.83.

10.83. – Appeal of Charge for Response Costs
Any Host charged with response costs may, without a fee and within 10 calendar days of the date of the notice of response costs, appeal all or a portion of the response costs to the City Manager. The City Manager shall meet with the Host within 15 calendar days of receiving the appeal. Within the next 30 calendar days, the City Manager shall determine whether or not to uphold the appeal. The decision of the City Manager is final. (a) Failure to timely file an appeal constitutes a failure to exhaust available administrative remedies, and bars any further review, administrative appeal or court review of the response costs.

Sec. 10-84. - Violation—Penalties.
(a) In addition to any other remedy allowed by law, any person who violates a provision of this Article is subject to criminal sanctions, civil actions, and administrative penalties pursuant to the provisions of this City Code. All remedies prescribed under this Article are cumulative and the election of one or more remedies does not bar the City from the pursuit of any other remedy available to the City.

13.a
Packet Pg. 134 Attachment: Fireworks Ordinance (5563 : Adoption of Fireworks Social Host Ordinance) 06/2022/liz/A22-0104/FireworksSocialHostOrdinance
(b) All violations of this Article are declared to be a public nuisance. (c) Notwithstanding anything to the contrary , the amounts for an administrative penalty for a violation of Section 10-81 of this Article are:
(1) $1,000 for the first violation;
(2) $2,500 for the second violation within one year of the first violation; and (3) $5,000 for each additional violation within one year of the first violation.

Sec. 10.85 – Violation - Public Nuisance.

Violations of this Article are hereby declared to be a public nuisance.

Sec. 10.86 - Severability. The provisions of this ordinance hereby are declared to be severable. If any provision, clause, word, sentence or paragraph of this Ordinance, or the application thereof, to any person, establishment or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this article.

Section 3: Effective Date: This ordinance is an urgency ordinance necessary to protect public health, safety and welfare that must be put into place in advance of the upcoming Fourth of July holiday. This ordinance shall be effective immediately upon its adoption and the City Clerk shall cause a certified copy of this ordinance or a summary of it to be published one time within fifteen (15) days after its adoption in the Imperial Valley Press, a newspaper of general circulation printed in Imperial County and circulated in the City.

INTRODUCED, PASSED AND ADOPTED by a 4/5ths vote of the City Council as an urgency ordinance at a regular meeting of the City Council of the City of El Centro California, held on the 7th day of June, 2022.

CITY OF EL CENTRO
By: __________________________
Tomas Oliva, Mayor
ATTEST:

By: ______________________________
Norma Wyles, City Clerk
APPROVED AS TO FORM:

By: ______________________________
Elizabeth L. Martyn, City Attorney

13.a
Packet Pg. 135 Attachment: Fireworks Ordinance (5563 : Adoption of Fireworks Social Host Ordinance) City Council of the City of El Centro Meeting: 06/07/22 11:30 AM 1275 Main Street Department: City Manager's Office
El Centro, CA 92243 Category: Sponsorship
Prepared By: Cynthia De Zilwa
SCHEDULED Department Head: Marcela Piedra
ACTION ITEM (ID # 5547) DOC ID: 5547 A
Community Sponsorship Request - Sure Helpline Center
CITY MANAGER’S RECOMMENDATION:

Discussion and any necessary action regarding the requested sponsorship from Sure Helpline Center.

FISCAL IMPACT:

Funding is available from the Community Sponsorship Fund 1201-610139. Available balance is $2900.00.

STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

NA
DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTORS LICENSE, REFERENCE CHECKS, INSURANCE, ETC:

N/A
BACKGROUND:

DISCUSSION:

Sure Helpline Center is requesting cash sponsorship for its 50th Year Anniversary Gala Event that took place on Friday, May 27, 2022. The event benefited victims of domestic and sexual violence. The proceeds were dedicated to victims of crime and needed supportive services.

The following are the sponsorship levels that are available:

Platinum Chief Sponsor $2,500
Gold Lieutenant Sponsor $1,000
Silver Sergeant Sponsor $500
The completed application was submitted on May 19, 2022. The City Manager's Office has reviewed the application and the requirements of the policy statement have been met. The Mayor has reviewed the request. The recommended amount for Council consideration on this sponsorship is $500.00.

CONCLUSION:

Staff seeks direction on the approved cash amount and any necessary action regarding the requested cash sponsorship.

ATTACHMENTS:
• Community Sponsorship Application (PDF)
• Sponsorship Packet (PDF)
14 Packet Pg. 136

14.a
Packet Pg. 137 Attachment: Community Sponsorship Application (5547 : Community Sponsorship Request - Sure Helpline Center)

14.a
Packet Pg. 138 Attachment: Community Sponsorship Application (5547 : Community Sponsorship Request - Sure Helpline Center)

14.a
Packet Pg. 139 Attachment: Community Sponsorship Application (5547 : Community Sponsorship Request - Sure Helpline Center)

14.a
Packet Pg. 140 Attachment: Community Sponsorship Application (5547 : Community Sponsorship Request - Sure Helpline Center)

14.b
Packet Pg. 141 Attachment: Sponsorship Packet (5547 : Community Sponsorship Request - Sure Helpline Center)

14.b
Packet Pg. 142 Attachment: Sponsorship Packet (5547 : Community Sponsorship Request - Sure Helpline Center)

14.b
Packet Pg. 143 Attachment: Sponsorship Packet (5547 : Community Sponsorship Request - Sure Helpline Center)

14.b
Packet Pg. 144 Attachment: Sponsorship Packet (5547 : Community Sponsorship Request - Sure Helpline Center)

14.b
Packet Pg. 145 Attachment: Sponsorship Packet (5547 : Community Sponsorship Request - Sure Helpline Center) City Council of the City of El Centro Meeting: 06/07/22 11:30 AM 1275 Main Street Department: Community Services
El Centro, CA 92243 Category: Grant
Prepared By: Adriana Nava
SCHEDULED Department Head: Adriana Nava
ACTION ITEM (ID # 5540) DOC ID: 5540
Rural Recreation and Tourism - Bucklin Park Amphitheater Project
CITY MANAGER’S RECOMMENDATION:

1. Rescind Resolution No. 21-85- RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF EL CENTRO APPROVING THE APPLICATION FOR RURAL RECREATION

AND TOURISM PROGRAM GRANT FUNDS
AND

2. Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF EL CENTRO APPROVING THE APPLICATION FOR RURAL RECREATION AND

TOURISM GRANT FUNDS

3. Consideration of approval of $1,650,000 in Measure P Grant Funds for the purpose of the Bucklin Park Amphitheatre Project
FISCAL IMPACT:

The Fiscal Impact associated with the Rural Recreation and Tourism Grant is $1,650,000. The funding source identified for this project, pending Council consideration is Measure P. The grant amount is $3,000,000 and the total project cost is estimated at $4,650,000.

STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

Goal #4 Recreation & Lifelong Learning
• Action 4.3: Secure public/private partnerships in parks and recreation and leverage resources and opportunities to help develop comprehensive cultural, recreational, and lifelong learning programs for all.
• Action 4.5: Improve parks, recreational amenities, open space, and trail development, and fulfill critical lifecycle and facility maintenance needs.

DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTORS LICENSE, REFERENCE CHECKS, INSURANCE, ETC:

Not applicable.

BACKGROUND:

The City of El Centro submitted a grant application in January 2022 under California State Parks and Recreation Rural Recreation and Tourism Grant Program. The intent of the Rural Recreation and Tourism Program is to create new recreation opportunities within rural communities to support health-related and economic goals. This program is funded by Proposition 68 (2018 Bond Act), which is found in Public Resources Code §80090(a)(b). The City requested the max grant amount in the amount of $3,000,000 for the purpose of creating an 1,360 SF amphitheater, restroom/concession building 1,394 SF, a 13+ fitness area, a substantial playground similar to First Responders Park, 15 Packet Pg. 146
Action Item (ID # 5540) Meeting of June 7, 2022
desert demonstration zone, and picnic areas. A concept level site plan is attached for reference.

DISCUSSION:

On May 12, 2022, a letter of incompleteness was issued by the State Department of Parks and Recreation to the City for the Bucklin Park Amphitheater Project. Incomplete application items included an Authorizing Resolution as well as revisions to various grant items inclusive of the Scope/Cost Estimate Form, CEQA Compliance Verification, and the Concept Level Site Plan. Subsequently, a site visit with State Project Office Kyle Bowlin for the project was completed on May 23, 2022, which is a promising sign for approval of the grant application. While a site visit and letter of incompleteness are positive signs the grant may be funded, we were informed the grant was extremely competitive and a site visit was not indicative of grant approval.

The purpose of this Staff Report is twofold - to request Council to rescind the resolution previously adopted by Council and for Council to consider a project match in the amount of $1,650,000 for the Bucklin Park Amphitheater Project. The State is very particular about resolution templates and there is a small discrepancy between the resolution submitted and the State’s template. Thus, the State has requested the resolution be revised, accordingly. As it relates to the project match, as mentioned, it is very promising the grant will be funded when revisions to the application packet are requested. Thus, in the event the grant is funded, we would like to be prepared to move forward as time is of the essence.

CONCLUSION:

1. Rescind Resolution No. 21-85- RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF EL CENTRO APPROVING THE APPLICATION FOR RURAL

RECREATION AND TOURISM PROGRAM GRANT FUNDS
AND

2. Adopt Resolution No. 22- , RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF EL CENTRO APPROVING THE APPLICATION FOR RURAL

RECREATION AND TOURISM GRANT FUNDS

3. Consideration of approval of $1,650,000 in Measure P Grant Funds for the purpose of the Bucklin Park Amphitheatre Project.

ATTACHMENTS:
• Approving Resolution_Amended (PDF)
• Response to Letter of Incompleteness-ATTACHMENTS_6-1-22 (PDF) 15 Packet Pg. 147
05/2022/liz/A22-0101/Reso/Prop68 1
RESOLUTION NO. 22-

RESOLUTION OF THE CITY COUNCIL OF CITY OF EL

CENTRO APPROVING THE APPLICATION FOR RURAL

RECREATION AND TOURISM PROGRAM GRANT FUNDS
WHEREAS, the State Department of Parks and Recreation has been delegated the responsibility by the Legislature of the State of California for the administration of the Rural Recreation and Tourism Grant Program, setting up necessary procedures governing the application; and
WHEREAS, said procedures established by the State Department of Parks and Recreation require the Applicant to certify by resolution the approval of the application before submission of said application to the State; and
WHEREAS, successful Applicants will enter into a contract with the State of California to complete the Grant Scope project; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of El Centro hereby:

APPROVES THE FILING OF AN APPLICATION FOR THE BUCKLIN PARK PROJECT; and

1. Certifies that said Applicant has or will have available, prior to commencement of any work on the project included in this application, the sufficient funds to complete the project; and

2. Certifies that if the project is awarded, the Applicant has or will have sufficient funds to operate and maintain the project, and

3. Certifies that the Applicant has reviewed, understands, and agrees to the General Provisions contained in the contract shown in the Grant Administration Guide; and

4. Delegates the authority to the City Manager to conduct all negotiations, sign and submit all documents, including, but not limited to applications, agreements, amendments, and payment requests, which may be necessary for the completion of the Grant Scope; and

5. Agrees to comply with all applicable federal, state and local laws, ordinances, rules, regulations and guidelines.

6. Will consider promoting inclusion per Public Resources Code §80001(b)(8 A-G).

15.a
Packet Pg. 148 Attachment: Approving Resolution_Amended (5540 : Rural Recreation and Tourism - Bucklin Park Amphitheater Project) 05/2022/liz/A22-0101/Reso/Prop68 2
APPROVED AND ADOPTED the day of , 2022
I, the undersigned, hereby certify that the foregoing Resolution Number was duly adopted at a regular meeting of the City Council of the City of El Centro, California following a roll call vote.

Ayes:

Noes:

Absent:

CITY OF EL CENTRO
By:
__________________________
ATTEST: Tomas Oliva, Mayor
By: ______________________________
Norma Wyles, City Clerk
APPROVED AS TO FORM:

Office of the City Attorney
BY: _____________________________
Elizabeth L. Martyn, City Attorney

STATE OF CALIFORNIA)
COUNTY OF IMPERIAL ) ss

CITY OF EL CENTRO )
I, Norma Wyles, City Clerk of the City of El Centro, California do hereby certify that the foregoing Resolution No. 22- was duly and regularly adopted at a regular meeting of the City Council of the City Of El Centro, California, held on the day of , 2022 following a roll call vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

By: _ _
Norma Wyles, City Clerk

15.a
Packet Pg. 149 Attachment: Approving Resolution_Amended (5540 : Rural Recreation and Tourism - Bucklin Park Amphitheater Project)

15.b
Packet Pg. 150 Attachment: Response to Letter of Incompleteness-ATTACHMENTS_6-1-22 (5540 : Rural Recreation and Tourism - Bucklin Park Amphitheater

15.b
Packet Pg. 151 Attachment: Response to Letter of Incompleteness-ATTACHMENTS_6-1-22 (5540 : Rural Recreation and Tourism - Bucklin Park Amphitheater Authorizing
Resolution

15.b
Packet Pg. 152 Attachment: Response to Letter of Incompleteness-ATTACHMENTS_6-1-22 (5540 : Rural Recreation and Tourism - Bucklin Park Amphitheater Grant Scope/Cost
Estimate Form

15.b
Packet Pg. 153 Attachment: Response to Letter of Incompleteness-ATTACHMENTS_6-1-22 (5540 : Rural Recreation and Tourism - Bucklin Park Amphitheater

15.b
Packet Pg. 154 Attachment: Response to Letter of Incompleteness-ATTACHMENTS_6-1-22 (5540 : Rural Recreation and Tourism - Bucklin Park Amphitheater CEQA Compliance

15.b
Packet Pg. 155 Attachment: Response to Letter of Incompleteness-ATTACHMENTS_6-1-22 (5540 : Rural Recreation and Tourism - Bucklin Park Amphitheater

15.b
Packet Pg. 156 Attachment: Response to Letter of Incompleteness-ATTACHMENTS_6-1-22 (5540 : Rural Recreation and Tourism - Bucklin Park Amphitheater

15.b
Packet Pg. 157 Attachment: Response to Letter of Incompleteness-ATTACHMENTS_6-1-22 (5540 : Rural Recreation and Tourism - Bucklin Park Amphitheater Project Site
Ownership

15.b
Packet Pg. 158 Attachment: Response to Letter of Incompleteness-ATTACHMENTS_6-1-22 (5540 : Rural Recreation and Tourism - Bucklin Park Amphitheater Full Property Details Imperial County

PROPERT DETAIL
Parcel#(APN): 053-515-003 Use Description: HXXG,X
Parcel Status: A
Owner Name: CITY OF EL CENTRO
Mailing Addr: 0,
Situs Addr: ,
Legal Description: THAT PTN OF TR 90 T16S R14E MONTE VISTA SUB 20 AC Latitude: 32.7801326900 Longitude: -115.562830460

ASSESSMENT
Total Value: 0.00 Use Code: HXXG,X Zoning: HXXG
Land Value: .00 Tax Rate Area: 004000 Impr Type:

Impr Value: .00 Year Assd: Price/Sqft: 0.00
Other Value: 0 Property Tax:
% Improved: NaN Delinquent Yr:

Exempt Amt: Exempt Codes:

SALEHISTRY Sale 1 Sale 2 Sale 3 Transfer

Recording Date:

Recording Doc: 200000000000
Rec. Doc Type:

Transfer Amount:

Seller (Grantor):
1st Trst Dd Amt: Code 1: 2nd Trst Dd Amt: Code 2:

PROPERTY CHARACTERISTIC
Lot Acres: 18.78 Year Built: Fireplace:

Lot SqFt: 817,891.12 Effective Yr: A/C:

Bldg/Liv Area: Total Rooms: Heating:

Units: Bedrooms: Pool:

Buildings: Baths ( Full ): Flooring:

Stories: Baths (Half): Park Type:

Style: Bsmt SqFt: Spaces:

Construct: Garage SqFt: Site Influence:

Quality: Other: Timber :

Building Class: Other Rooms: Ag Preserve:

Condition:
***The information provided here is deemed reliable, but is not guaranteed.

15.b
Packet Pg. 159 Attachment: Response to Letter of Incompleteness-ATTACHMENTS_6-1-22 (5540 : Rural Recreation and Tourism - Bucklin Park Amphitheater Project) Full Property Details Imperial County

PROPERT DETAIL
Parcel#(APN): 053-680-001 Use Description: RVXG,X
Parcel Status: A
Owner Name: CITY OF EL CENTRO
Mailing Addr: 0,
Situs Addr: ,
Legal Description: THAT POR OF E 1000.08 FT M/L OF W1/2 TR 90 T16S R14E 4 AC M/ Latitude: 32.7786299100 Longitude: -115.562621420

ASSESSMENT
Total Value: 0.00 Use Code: RVXG,X Zoning: RVXG
Land Value: .00 Tax Rate Area: 004000 Impr Type:

Impr Value: .00 Year Assd: Price/Sqft: 0.00
Other Value: 0 Property Tax:
% Improved: NaN Delinquent Yr:

Exempt Amt: Exempt Codes:

SALEHISTRY Sale 1 Sale 2 Sale 3 Transfer

Recording Date: 1963-08-22 00:00:00
Recording Doc: 196311590580
Rec. Doc Type:

Transfer Amount:

Seller (Grantor):
1st Trst Dd Amt: Code 1: 2nd Trst Dd Amt: Code 2:

PROPERTY CHARACTERISTIC
Lot Acres: 3.98 Year Built: Fireplace:

Lot SqFt: 173,319.74 Effective Yr: A/C:

Bldg/Liv Area: Total Rooms: Heating:

Units: Bedrooms: Pool:

Buildings: Baths ( Full ): Flooring:

Stories: Baths (Half): Park Type:

Style: Bsmt SqFt: Spaces:

Construct: Garage SqFt: Site Influence:

Quality: Other: Timber :

Building Class: Other Rooms: Ag Preserve:

Condition:
***The information provided here is deemed reliable, but is not guaranteed.

15.b
Packet Pg. 160 Attachment: Response to Letter of Incompleteness-ATTACHMENTS_6-1-22 (5540 : Rural Recreation and Tourism - Bucklin Park Amphitheater Project)

15.b
Packet Pg. 161
Attachment: Response to Letter of Incompleteness-ATTACHMENTS_6-1-22 (5540 : Rural Recreation and Tourism - Bucklin Park Amphitheater

15.b
Packet Pg. 162
Attachment: Response to Letter of Incompleteness-ATTACHMENTS_6-1-22 (5540 : Rural Recreation and Tourism - Bucklin Park Concept Level
Site Plan

15.b
Packet Pg. 163 Attachment: Response to Letter of Incompleteness-ATTACHMENTS_6-1-22 (5540 : Rural Recreation and Tourism - Bucklin Park Amphitheater PICNIC TABLES RESTROOMS CONCESSION ADA RAMP CONCRETE WALKWAY AMPHITHEATER (E) PARKING LOT (E) PARKING LOT (E) PARKING LOT (E) PARKING LOT (E) POND (E) POND (E) POND (E) POND (E) PLAYGROUND (E) RESTROOMS (E) PARKS YARD (E) VETERAN'S MEMORIAL AURORA AVE. 8TH STREET BUCKLIN PARK AMPHITHEATER CONCEPTUAL SITE PLAN 13+ FITNESS 5-12 INCLUSIVE PLAYGROUND 1,360 S.F. DESERT DEMONSTRATION ZONE RAISED PLANTERS 1,394 S.F. PAVER WALKWAY BENCH STAGE BUILDING FUNCTIONS: RESTROOMS CONCESSION STORAGE 640 SQ.FT. (46%) 414 SQ.FT. (30%) 340 SQ.FT. (24%) TOTAL 1,394 SQ.FT. (100%)

15.b
Packet Pg. 164
Attachment: Response to Letter of Incompleteness-ATTACHMENTS_6-1-22 (5540 : Rural Recreation and Tourism - Bucklin Park Amphitheater Project)

PICNIC TABLES

RESTROOMS

CONCESSION

ADA RAMP

CONCRETE WALKWAY

AMPHITHEATER
(E) PARKING
LOT
S
T
R
E
E
T
13+ FITNESS
5-12 INCLUSIVE

PLAYGROUND
1,360 S.F.

DESERT DEMONSTRATION ZONE

RAISED PLANTERS
1,394 S.F.

PAVER WALKWAY

BENCH STAGE
BUILDING FUNCTIONS:

RESTROOMS

CONCESSION

STORAGE
640 SQ.FT. (46%)
414 SQ.FT. (30%)
340 SQ.FT. (24%)
TOTAL 1,394 SQ.FT. (100%)

BUCKLIN PARK AMPHITHEATER

CONCEPTUAL SITE PLAN

15.b
Packet Pg. 165 Attachment: Response to Letter of Incompleteness-ATTACHMENTS_6-1-22 (5540 : Rural Recreation and Tourism - Bucklin Park Amphitheater Project) Letter of
Incompleteness
from State

15.b
Packet Pg. 166 Attachment: Response to Letter of Incompleteness-ATTACHMENTS_6-1-22 (5540 : Rural Recreation and Tourism - Bucklin Park Amphitheater State of California • Natural Resources Agency Gavin Newsom, Governor DEPARTMENT OF PARKS AND RECREATION Armando Quintero, Director P.O. Box 942896 • Sacramento, CA 94296-0001
May 12, 2022
Adriana Nava
Community Services Director
City of El Centro
1350 S. 8th St.

El Centro, CA 92243
Dear Adriana Nava:

Re: Project Name: Bucklin Park Amphitheater Project
Program: Rural Recreation and Tourism
Requested Grant Amount: $3,000,000
This letter acknowledges receipt of your application for the competitive Rural Recreation and Tourism program (RRT). The submitted application is incomplete or needs additional clarification. Please upload the following items into Submittable within 30 calendar days from the date of this letter. If these items are not received, the submitted application will no longer be considered for funding.

Page numbers listed below refer to the appropriate section of the RRT Application Guide. Please contact me for technical assistance about the following items.

Incomplete Application Items
Authorizing Resolution (Pages 33-34)
➢ The Authorizing Resolution template on page 34 of the Application Guide requires the project name to be identified. Please revise the Authorizing Resolution or provide an addendum that identifies the specific project consistent with the project name shown on the Application Form.

Grant Scope/Cost Estimate Form (Pages 35-37)
➢ Based on the Project Selection Criteria response and/or the Site Plan, it appears that the proposed project also includes the following Recreation Features and/or Major Support Amenities that are not listed on the current Grant Scope/Cost Estimate Form or should be reworded:
• Construct new amphitheater with lighting
• Construct new all-inclusive playground with shade
• Construct new fitness area with shade
• Picnic tables

15.b
Packet Pg. 167 Attachment: Response to Letter of Incompleteness-ATTACHMENTS_6-1-22 (5540 : Rural Recreation and Tourism - Bucklin Park Amphitheater Please send a revised Grant Scope/Cost Estimate Form that includes the above Recreation Features and/or Major Support Amenities or provide an explanation in writing.

NOTE: A group picnic area is one that includes multiple tables grouped near one another, clearly designed for group gatherings. Applicant should identify the specific number of group picnic areas if located in different locations of the park.

Otherwise, individual picnic tables will be spread throughout the park, the form should list “picnic areas throughout the park” without a specific number. ➢ Please ensure that all recreation features are on a separate line. For example, splitting up:
o Playground and fitness area
➢ Please specify if the lighting and/or landscaping is specific to a recreation feature or major support amenity, or if the lighting and/or landscaping will be constructed throughout the park. Please revise the Grant Scope/Cost Estimate Form as needed. Please see page 35 of the Application Guide for further information. ➢ Please remove the line item for irrigation system from the Grant Scope/Cost Estimate Form and fold the cost into the lump sum cost of the related Recreation Feature(s) or Major Support Amenity(s). Please see pages 36 of the Application Guide for further information.

California Environmental Quality Act (CEQA) Compliance Form (Pages 44-45) ➢ It appears the CEWQA notice was posted on 1/18/2022 with a public comment period of 30 days. Please provide a response with any comments that were made.

Project Site Ownership, Acquisition, or Lease (Page 46) ➢ Please provide a draft land agreement and Lease Agreement Form as required by page 45 Item #3 on page 45 of the Application Guide. To draft the agreement, please follow the “Lease Agreement and Turn-Key Agreements” direction at www.parks.ca.gov/rpp
➢ The Application Form appears to list the park as 124 acres. The lease from the Army lists the park as 91.29 acres. Can you please tell us who owns the additional 33 acres and provide an assessors map of the Project Site.

Concept Level Site Plan (Page 47)
➢ Please provide a conceptual layout plan and identify the total square footage of the restroom/concessions building and note the function and approximate square footage of each space designated for recreation versus non-recreation. Per page 46 of the Application Guide, for community centers that are proposed for RPP grant funding, at least 75% of the building’s square footage must be designed for recreation. Lobby areas, hallways, meeting rooms, office space, storage, and restrooms do not count as square footage designed for recreation.

15.b
Packet Pg. 168 Attachment: Response to Letter of Incompleteness-ATTACHMENTS_6-1-22 (5540 : Rural Recreation and Tourism - Bucklin Park Amphitheater If the requested grant is awarded, grantees will use the Grant Administration Guide available at www.parks.ca.gov/grants. The Grant Administration Guide includes the grant contract provisions, special requirements such as the labor compliance program, payment requirements, audit and accounting guidance, and other administrative steps.

Should the project commence, all applicable current laws and regulations affecting acquisition and/or development projects must be followed, including, but not limited to, legal requirements for construction contracts, building codes, health and safety codes, and laws and codes pertaining to individuals with disabilities, including but not limited to the Americans With Disabilities Act of 1990 (42 U.S.C. §12101 et.seq.) and the California Unruh Act (California Civil Code §51 et seq.).

If you have any questions, please refer to your Rural Recreation and Tourism Application Guide. Or, if you would like assistance, I can be reached by email at [email protected].

Sincerely,
Kyle Bowlin
Project Officer
cc: Project File

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Packet Pg. 169 Attachment: Response to Letter of Incompleteness-ATTACHMENTS_6-1-22 (5540 : Rural Recreation and Tourism - Bucklin Park Amphitheater City Council of the City of El Centro Meeting: 06/07/22 11:30 AM 1275 Main Street Department: Community Development
El Centro, CA 92243 Category: Resolution
Prepared By: Angel Hernandez
SCHEDULED Department Head: Angel Hernandez
ACTION ITEM (ID # 5524) DOC ID: 5524
Discussion and any necessary action regarding use of
Measure P funding for the local match and authorizing the City Manager to execute grant agreements with Caltrans for the Imperial Avenue Complete Streets Plan
CITY MANAGER’S RECOMMENDATION:

1. Allocate $39,000 in Measure P funds for the required local match for the Imperial Avenue Complete Streets project.

2. Approval of Resolution No. 22- A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF EL CENTRO AUTHORIZING THE CITY MANAGER TO EXECUTE

AGREEMENTS WITH THE CALIFORNIA DEPARTMENT OF TRANSPORTATION

FOR THE IMPERIAL AVENUE COMPLETE STREETS PLAN
FISCAL IMPACT:

The State Sustainable Transportation Planning Grant Program requires a minimum

11.47% local match. Staff is requesting the use of $39,000 from Measure P funding to provide a local match of 11.50%. The grant amount is $300,000 and the total project cost is $339,000.

STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

Goal 2: Ensure the city’s infrastructure is enhanced and maintained to support existing and future development through innovative and sustainable principles. • Action 2.2 Prepare for the relinquishment of Highway 86 while considering associated long-term costs to the City.
• Action 2.4 Coordinate with the City of Imperial for improvements on shared roadways
• Action 2.5 Implement Mobility Element recommendations, such as pedestrian crosswalk treatment criteria, Local Road Safety Plan, neighborhood traffic calming program.

DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTORS LICENSE, REFERENCE CHECKS, INSURANCE, ETC:

Not Applicable
BACKGROUND:

The City of El Centro was conditionally awarded a grant from the Caltrans Sustainability Transportation Planning Grant Program in the amount of $300,000. The grant is to prepare the Imperial Avenue Complete Streets Plan which would result in a conceptual design of Imperial Avenue from Adams Avenue to the Northern City Limits. 16 Packet Pg. 170
Action Item (ID # 5524) Meeting of June 7, 2022
The goal of the project is to have sufficient data, plans, and public engagement to be competitive for infrastructure grants like the State Active Transportation Program grant program. A condition of the award is to provide a resolution from the City Council designating the City Manager to execute agreements with Caltrans for the grant.

The grant requires a minimum local match of 11.47% of the total project costs. Staff is also requesting that a $39,000 match be allocated from Measure P funding in order to meet the local match requirement.

DISCUSSION:

Please find the resolution authorizing the City Manager to enter into any necessary agreements with Caltrans, attached as Exhibit A
CONCLUSION:

1. Allocate $39,000 in Measure P funds for the required local match for the Imperial Avenue Complete Streets project.

2. Approval of Resolution No. 22- A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF EL CENTRO AUTHORIZING THE CITY MANAGER TO EXECUTE

AGREEMENTS WITH THE CALIFORNIA DEPARTMENT OF TRANSPORTATION

FOR THE IMPERIAL AVENUE COMPLETE STREETS PLAN
ATTACHMENTS:
• Exhibit A - Resolution (DOC)
16 Packet Pg. 171
05/2022/liz/A22-0096/Reso/CaltransGrant
1 RESOLUTION NO. 22-

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF EL CENTRO AUTHORIZING THE CITY

MANAGER TO EXECUTE AGREEMENTS WITH THE

CALIFORNIA DEPARTMENT OF TRANSPORTATION

FOR THE IMPERIAL AVENUE COMPLETE STREETS
PLAN
WHEREAS, the City Council of the City of El Centro is eligible to receive Federal and/or State funding for certain transportation planning related plans, through the California Department of Transportation;
WHEREAS, a Restricted Grant Agreement must be executed with the California Department of Transportation before such funds can be reimbursed through the Transportation Planning Grant Program;
WHEREAS, the City of El Centro wishes to delegate authorization to execute these agreements and any amendments thereto; NOW, THEREFORE, BE IT RESOLVED by the CityCouncil of the City of El Centro, authorizes the City Manager, or designee, to execute all Restricted Grant Agreements and any amendments thereto with the California Department of Transportation and take any and all action necessary to implement suchdocuments.

PASSED AND ADOPTED at a joint meeting of the City Council of the City of El Centro, California, on the day of , 2022.

CITY OF EL CENTRO
Tomás Oliva, Mayor
ATTEST:

By:

Norma Wyles, City Clerk
APPROVED AS TO FORM:

OFFICE OF THE CITY ATTORNEY
By:

Elizabeth L. Martyn, City Attorney

16.a
Packet Pg. 172 Attachment: Exhibit A - Resolution (5524 : Transportation Planning Grant-Imperial Avenue Complete Streets Plan) 05/2022/liz/A22-0096/Reso/CaltransGrant
2 STATE OF CALIFORNIA )
COUNTY OF IMPERIAL ) ss

CITY OF EL CENTRO )
I, Norma Wyles, City Clerk of the City of El Centro, California, do hereby certify that the foregoing Resolution No. 22- was duly and regularly adopted at a joint meeting of the City Council of the City of El Centro, California, held on the day of , 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

By
Norma Wyles, City Clerk

16.a
Packet Pg. 173 Attachment: Exhibit A - Resolution (5524 : Transportation Planning Grant-Imperial Avenue Complete Streets Plan) Successor Agency to the Redevelopment Agency Meeting: 06/07/22 11:30 AM 1275 Main Street Department: Community Services
El Centro, CA 92243 Category: Agreement
Prepared By: Adriana Nava
REVIEWED Department Head: Adriana Nava
ACTION ITEM (ID # 5531) DOC ID: 5531
Discussion and related action regarding Disposition,
Development, and Loan Agreement for Jacaranda Gardens
Phase I, to be located at 1625 N. Waterman Avenue, El
Centro, CA 92243, and further identified by APN 064-470-103 CITY MANAGER’S RECOMMENDATION:

Adopt Resolution No. SA 22-___, RESOLUTION OF THE SUCCESSOR AGENCY TO

THE REDEVELOPMENT AGENCY OF THE CITY OF EL CENTRO, DECLARING AS EXEMPT SURPLUS LAND APPROXIMATELY 5.53 ACRES OF SUCCESSOR HOUSING AGENCY-OWNED VACANT PROPERTY LOCATED AT 1625 N.

WATERMAN AVENUE IN THE CITY OF EL CENTRO (APN: 064-470-103), PURSUANT TO ASSEMBLY BILL 1486, AND APPROVING THE TRANSFER OF THE PROPERTY FOR THE DEVELOPMENT OF 100% LOWER INCOME UNITS AND

APPROVING OTHER ACTIONS RELATED THERETO
FISCAL IMPACT:

The Disposition, Development, and Loan Agreement with Chelsea Investment Corporation will not have a fiscal impact on the general fund.

STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

Goal #6 Economic Opportunity
Goal #1 Financial & Governance Stability & Sustainability DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTORS LICENSE, REFERENCE CHECKS, INSURANCE, ETC:

City Staff has completed numerous affordable housing projects with Chelsea Investments and they are a firm capable of developing affordable housing projects.

BACKGROUND:

Redevelopment agencies were dissolved by the State in 2012. As part of Assembly Bill 1484, the El Centro Successor Agency (SA) was required to develop a Long Range Property Management Plan that governs the disposition and use of the former redevelopment agency property. The El Centro Successor Agency owns a 5.53-acre property immediately east of First Responders Park (refer to Exhibit A- Location Map).

Under the adopted Long Range Property Management Plan, the property was set aside for affordable housing and in 2020, it had an appraised value of $1.18 Million. In 2020, various affordable housing developers were interested in purchasing the property for the purpose of submitting grant applications to the State.

A Request for Proposals (RFP) and notices of availability were prepared by Staff to maintain a transparent and competitive process. The RFP was released on September 23, 2020 for a period of 30 days. Three (3) proposals were received as follows: Chelsea Investment, Richman Group, and Homegrown Wealth. A reviewing committee was 17 Packet Pg. 174
Action Item (ID # 5531) Meeting of June 7, 2022
assembled to review the proposals and the two highest firms were selected for interviews. After considering both the proposal submitted and interview scores, the selected developer was Chelsea Investment Corporation. At the meeting of February 16, 2021, the Successor Agency to the El Centro Redevelopment Agency entered into an Exclusive Negotiations Agreement (ENA) with Chelsea Investment Corporation.

The ENA enabled Chelsea Investments and the City of El Centro to submit a joint grant application in the amount of $15.8 million through the Affordable Housing and Sustainable Communities Program. The $15.8 million grant was subsequently awarded in January 2022 and City Staff, Chelsea Investment Corporation Staff, and respective Legal Counsels have been working with Chelsea Investments to complete a Disposition, Development, and Loan Agreement (DDA), which sets forth the terms under which the first phase of the project will be undertaken for the development of affordable housing on the first portion of the property. The DDA is attached hereto for review and consideration as Exhibit B- Disposition, Development, and Loan Agreement.

DISCUSSION:

Project Description- Chelsea Investment Corporation, the affordable housing developer, will subdivide the 5.53-acre parcel at 1625 N. Waterman Avenue to create two parcels. (The Parcel Map will be considered by the Planning Commission on June 14, 2022 and does not require Council approval). The developer will construct, in two phases, two multi-family affordable housing projects, consisting of a total of 168 units, supported by a land loan provided by the Agency for each parcel’s purchase price.

Phase I of development includes 95 affordable units and 1 manager’s unit. Phase 2 of development includes 71 affordable units and 1 manager’s unit. Refer to Exhibit C for Site Plan and Elevations for Phase 1.

The Project land area in Phase I is approximately 3.08-acres in size and the Project will include five, three-story residential buildings and one, single-story community building.

The total residential rental square footage is approximately 72,984 square feet (SF) and the community building will be approximately 1,425 SF. The Project will consist of twenty-four (24) 590 SF one-bedroom, one bath units; forty-eight (48) 757 SF twobedroom, one-bath units; and twenty-four (24) 937 SF three-bedroom, two-bath units for a total of 192 bedrooms and 120 bathrooms. Fifteen percent of the units will be fully accessible to persons with mobility impairments and ten percent of the units will be built for those with sensory impairments. The community building includes a manager’s office, bathroom, laundry facility and kitchen. Approximately 155 parking spaces will be provided at the Project, 14 of which will be accessible ADA spaces. Additionally, 48 secure bicycle parking spots in a completely enclosed area will be provided to residents only.

Affordability restrictions- For Phase I of the Project, the unit breakdown will be restricted as follows: eleven (11) one-bedroom units, eighteen (18) two-bedroom units, and eleven (11) three-bedroom units, to be restricted to Lower Income Households; nine (9) onebedroom units, sixteen (16) two-bedroom units, and nine (9) three-bedroom units to be restricted to Very Low Income Households; and four (4) one-bedroom units, thirteen (13) two-bedroom units, and four (4) three-bedroom units to be restricted to Extremely Low Income Households. This breakdown, along with the Phase 2 breakdown, is 17 Packet Pg. 175
Action Item (ID # 5531) Meeting of June 7, 2022
depicted in the chart below.

Extremely Low
Income
Very Low Income Lower Income
1 BR 2 BR 3 BR 1 BR 2 BR 3 BR 1 BR 2 BR 3 BR
Phase 1 4 13 4 9 16 9 11 18 11
Phase 2 2 3 3 2 3 3 12 25 18
Extremely Low Income Households are households whose aggregate gross income is less than thirty percent (30%) of the adjusted median income for Imperial County (“AMI”). Very Low Income Households are households whose aggregate gross income is less than fifty percent (50%) of AMI. Lower Income Households are households whose aggregate gross income is less than sixty percent (60%) of AMI.

The developer will be required to record a regulatory agreement on each parcel that imposes the above-stated affordability restrictions for a period of fifty-five (55) years.

Financial considerations- For Phase 1 of the Project, the Agency will sell the first parcel to the developer for $1,217,143, and provide a loan to the developer for the land purchase price. The developer will repay the Agency Land Loan from the residual receipts of the project. At a later date, the Agency would sell the second parcel to the developer for $912,857 and provide a land loan under similar terms.

Offsite Improvements- As part of Phase I improvements and the awarded grant application, various offsite improvements will be incorporated, inclusive but not limited to the following: connectivity along 12th Street between the Date Canal and Pico Avenue, Class II bike lane improvements along Villa Avenue, Class III bike lane improvements along Waterman Avenue, installation of a rapid flashing beacon at the crosswalk on Lincoln and Waterman Avenue, installation of bulb outs and rapid flashing beacon midway along Waterman Avenue between Lincoln Avenue and Bradshaw Drive and installation of sidewalks at various locations throughout the improvement area, as depicted on Exhibit D- Plan View.

Disposition, Development, and Loan Agreement (DDA)- The DDA drafted by Legal Counsel is comprehensive and sets forth the terms under which the first phase of the project will be undertaken for the development of the affordable housing project. Time is off the essence as the DDA is a prerequisite to support the financial feasibility of the project and to meet the California Tax Credit Allocation Committee, which facilitates the investment of private capital into affordable rental housing development for low-income households. The DDA for Phase 2, which will be drafted and negotiated at a later date, will be substantially similar in form to the DDA for Phase 1.

CONCLUSION:

Staff recommends approval of Resolution No. SA 22-___, RESOLUTION OF THE

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF EL CENTRO, DECLARING AS EXEMPT SURPLUS LAND APPROXIMATELY 5.53

ACRES OF SUCCESSOR ANGECY-OWNED VACANT PROPERTY LOCATED AT 1625 N. WATERMAN AVENUE IN THE CITY OF EL CENTRO (APN: 064-470-103), 17 Packet Pg. 176
Action Item (ID # 5531) Meeting of June 7, 2022
PURSUANT TO ASSEMBLY BILL 1486, AND APPROVING THE TRANSFER OF THE PROPERTY FOR THE DEVELOPMENT OF 100% LOWER INCOME UNITS AND

APPROVING OTHER ACTIONS RELATED THERETO
ATTACHMENTS:
• Exhibit A_Location Map (PDF)
• Exhibit B- Disposition, Development, and Loan Agreement (PDF) • Exhibit C_Site Plan_Elevation (PDF)
• Exhibit D_Offsite Improvements (PDF)
• Exhibit E - Resolution (PDF)
17 Packet Pg. 177
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17.a
Packet Pg. 178 Attachment: Exhibit A_Location Map (5531 : Jacaranda Gardens Development Disposition Agreement)

DISPOSITION, DEVELOPMENT, AND LOAN AGREEMENT
(Jacaranda Gardens Phase I)
by and between the

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE

CITY OF EL CENTRO
and

CHELSEA INVESTMENT CORPORATION

17.b
Packet Pg. 179 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement)

TABLE OF CONTENTS
Page
i

1. DEFINITIONS .......................................................................................................................... 2

1.1 Defined Terms .............................................................................................................. 2

1.2 Singular and Plural Terms ............................................................................................ 7

1.3 Accounting Principles ................................................................................................... 7

1.4 References and Other Terms ......................................................................................... 8

1.5 Attachments Incorporated ............................................................................................. 8

2. REPRESENTATIONS AND TRANSFERS ........................................................................... 8

2.1 Representations by the Developer ................................................................................ 8

2.1.1 Organization ............................................................................................................... 8

2.1.2 Developer ................................................................................................................... 8

2.1.3 Valid Binding Agreements ........................................................................................ 9

2.1.4 Contingent Obligations .............................................................................................. 9

2.1.5 Litigation .................................................................................................................... 9

2.1.6 No Conflict................................................................................................................. 9

2.1.7 No Developer Bankruptcy ......................................................................................... 9

2.2 Limitation Upon Change in Ownership, Management and Control of Developer ....... 9

2.2.1 Prohibition.................................................................................................................. 9

2.2.2 Permitted Transfers by Developer ........................................................................... 10

2.2.3 Agency Consideration of Requested Transfer ......................................................... 11

2.2.4 Successors and Assigns ............................................................................................ 11

3. FINANCING OF THE PROJECT ........................................................................................ 11

3.1 Sources of Financing .................................................................................................. .11

3.2 Agency Land Loan…………………………………………………………………...12

3.2.1 Funding.…………………………………………………………………………....12

3.2.2 Security for Agency and Land Loan; Nonrecourse Obligation……………………12

3.2.3 Subordination ……………………………………………………………………...12

3.2.4 Use of Agency Land Loan ……………………………………………………….. 13

3.2.5 Disbursement of Loan ……………………………………………………………. 13

3.2.6 Conditions Precedent to the Credit of the Agency Land Loan…………………… 13

3.3.Other Sources of Financing ........................................................................................ 14

3.3.1 Construction Loan. ................................................................................................... 14

3.3.2 Permanent Loan. ...................................................................................................... 15

3.3.3 Tax Credits. .............................................................................................................. 15

3.4 Rights of Termination in the Event of Insuffiency of Funds ...................................... 15

3.5 Obligation to Update Project Budget ………………………………………………. 16

3.6 Foreclosure by Third-Party Lender ………………………………………………… 16

4. DISPOSITION OF SITE ........................................................................................................ 16

4.1 Conveyance of Site to Developer ............................................................................... 16

4.2 Condition of the Site ................................................................................................... 16

4.2.1 Disclosure ................................................................................................................ 16

4.2.2 Developer’s Investigation of the Site ....................................................................... 17

4.2.3 Acceptance of Condition of Site .............................................................................. 17

4.2.4 No Further Warranties As To Site; Release of City and Agency ............................ 17

4.3 Escrow......................................................................................................................... 18

4.3.1 Escrow Instructions .................................................................................................. 18

17.b
Packet Pg. 180 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) TABLE OF CONTENTS (CONT.)
Page
ii

4.3.2 General Provisions Applicable to Escrow Agent ..................................................... 18

4.3.3 Agency of Escrow Agent ......................................................................................... 18

4.3.4 Escrow Costs ............................................................................................................ 19

4.3.5 Review of Title ........................................................................................................ 20

4.3.6 Title Insurance ......................................................................................................... 20

4.3.7 Agency’s Conditions Precedent to Closing ............................................................. 21

4.3.8 Developer’s Conditions to Closing .......................................................................... 22

4.3.9 Termination of Escrow ............................................................................................ 23

4.3.10 Closing of Escrow .................................................................................................. 23

4.3.11 Closing Procedure .................................................................................................. 23

5. DEVELOPMENT OF THE SITE ......................................................................................... 24

5.1 Scope of Work ............................................................................................................ 24

5.2 Payment and Performance Bonds…………………………………………………... 24

5.3 Conditions Pecedent to Construction .......................................................................... 24

5.4 Defects in Plans……………………………………………………………………... 25

5.5 Construction of the Project ......................................................................................... 25

5.6 Design ......................................................................................................................... 25

5.7 Construction Schedule ................................................................................................ 26

5.8 Bodily Injury and Property Damage Insurance; Indemnity ........................................ 26

5.8.1 Insurance .................................................................................................................. 26

5.8.2 Developer’s Indemnity............................................................................................. 26

5.9 Other Governmental Authority Permits and Environmental Compliance .................. 27

5.10 Rights of Access ....................................................................................................... 27

5.11 Federal, State and Local Laws .................................................................................. 27

5.12 Nondiscrimination During Construction and Rehabilitation .................................... 28

5.13 Liens and Stop Notices ............................................................................................. 28

5.14 Mortgage Deed of Trust, Sale and Lease-Back Financing; Rights of Holders ......... 28

5.14.1 No Encumbrances Except Mortgages, Deeds of Trust .......................................... 28

5.14.2 Holder Not Obligated to Construct Improvements ................................................ 29

5.14.3 Notice of Default to Mortgagee or Deed of Trust Holders, Right to Cure ............ 29

5.14.4 Failure of Holder to Complete Project ................................................................... 29

5.14.5 Right of the Agency to Cure Mortgage or Deed of Trust Default ......................... 30

5.14.6 Right of the Agency to Satisfy Other Liens on the Site After Title Passes ........... 30

5.15 Release of Construction Covenants .......................................................................... 31

6. COVENANTS AND RESTRICTIONS................................................................................. 31

6.1 Use Covenants ............................................................................................................ 31

6.2 Number of Affordable Units ....................................................................................... 32

6.2.1 Selection of Tenants ................................................................................................. 32

6.2.2 Household Income Requirements ............................................................................ 32

6.2.3 Annual Reporting Requirement ............................................................................... 32

6.2.4 Relationship to Other Affordability Covenants ....................................................... 33

6.3 Lease Requirements .................................................................................................... 33

6.4 Capital Replacement Reserve ..................................................................................... 33

6.5 Operating Reserve ....................................................................................................... 33

6.6 Long Term Management ............................................................................................. 33

6.6.1 Management Plan. .................................................................................................... 33

17.b
Packet Pg. 181 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) TABLE OF CONTENTS (CONT.)
Page
iii

6.6.2 Property Manager. .................................................................................................... 34

6.6.3 Operation Budget. .................................................................................................... 34

6.7 Agency Regulatory Agreement ................................................................................... 35

6.8 Nondiscrimination Covenants ..................................................................................... 35

6.9 Effect of Violation of the Terms and Provisions of this Agreement After Completion of Construction...................................................................................................... 36

7. INDEMNITY AND INSURANCE ........................................................................................ 37

7.1 Developer’s Indemnity................................................................................................ 37

7.2 Insurance ..................................................................................................................... 37

8. DEFAULTS, REMEDIES AND TERMINATION .............................................................. 39

8.1 Defaults – General ...................................................................................................... 39

8.2 Legal Actions .............................................................................................................. 40

8.2.1 Institution of Legal Actions ..................................................................................... 40

8.2.2 Applicable Law ........................................................................................................ 40

8.2.3 Acceptance of Service of Process ............................................................................ 40

8.3 Rights and Remedies are Cumulative ......................................................................... 40

8.4 Inaction Not a Waiver of Default ................................................................................ 40

8.5 Specific Performance .................................................................................................. 40

8.6 Rights of Termination and Damages .......................................................................... 41

8.6.1 Termination by Developer ....................................................................................... 41

8.6.2 Termination by Agency ........................................................................................... 41

8.7 Reentry and Revesting of Title in the Agency After the Conveyance and Prior to Completion of Construction .................................................................................. 41

8.8 Limitation on Damages. .............................................................................................. 42

9. GENERAL PROVISIONS ..................................................................................................... 42

9.1 Notices, Demands and Communications Between the Parties ................................... 42

9.2 Subordination of Indebtedness .................................................................................... 43

9.3 Conflicts of Interest ..................................................................................................... 43

9.4 Warranty Against Payment of Consideration for Agreement ..................................... 44

9.5 Nonliability of Agency Officials and Employees ....................................................... 44

9.6 Approval by Agency and Developer ........................................................................... 44

9.7 Plans and Data............................................................................................................. 44

9.8.Taxes and Assessments. ............................................................................................. 44

9.9 Force Majeure ............................................................................................................. 44

9.10 Applicable Law; Interpretation ................................................................................. 45

9.11 Inspection of Books and Records, Reports ............................................................... 45

9.12 Administration .......................................................................................................... 45

9.13 Mutual Cooperation .................................................................................................. 46

9.14 Ground Breaking and Grand Openings ..................................................................... 46

9.15 Independent Contractor ............................................................................................. 46

10. ENTIRE AGREEMENT, WAIVERS AND AMENDMENTS ......................................... 46

17.b
Packet Pg. 182 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) iv
ATTACHMENT NO. 1 SITE PLAN
ATTACHMENT NO. 2 SITE LEGAL DESCRIPTION
ATTACHMENT NO. 3 PROJECT DESCRIPTION
ATTACHMENT NO. 4 SCHEDULE OF PERFORMANCE
ATTACHMENT NO. 5 PROJECT BUDGET
ATTACHMENT NO. 6 GRANT DEED
ATTACHMENT NO. 7 AGENCY REGULATORY AGREEMENT
ATTACHMENT NO. 8 NOTICE OF AFFORDABILITY RESTRICTIONS
ATTACHMENT NO. 9 AGENCY DEED OF TRUST
ATTACHMENT NO. 10 AGENCY PROMISSORY NOTE
ATTACHMENT NO. 11 RELEASE OF CONSTRUCTION COVENANTS
ATTACHMENT NO. 12 REQUEST FOR NOTICE OF DEFAULT
ATTACHMENT NO. 13 ASSIGNMENT OF PLANS, REPORTS AND DATA

17.b
Packet Pg. 183 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 1 DISPOSITION, DEVELOPMENT, AND LOAN AGREEMENT
(Jacaranda Gardens Phase I)

THIS DISPOSITION, DEVELOPMENT, AND LOAN AGREEMENT
(“Agreement”) dated this ___ day of ___________________, 2022, is made and entered into by and between the SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF EL CENTRO (“Agency”) and CHELSEA INVESTMENT CORPORATION, a California corporation (“Developer”) with reference to the following:

RECITALS
The following Recitals are a substantive part of this Agreement. Capitalized terms used in these Recitals and not otherwise defined shall have the meaning set forth in Section 1.1.

A. By action of the City Council of the City of El Centro (“City Council”) pursuant to Chapter 2 of the California Community Redevelopment Law (Health & Safety Code § 33000, et seq., “Community Redevelopment Law”), the City of El Centro (“City”) established the Redevelopment Agency for the City of El Centro (the “Redevelopment Agency”), whose purpose included increasing, improving, and preserving the community’s supply of housing affordable to and occupied by very low and low-income households pursuant to Sections 33334.2, 33334.3, 33334.6 and 33413 of the Community Redevelopment Law.

B. As of, on, and after February 1, 2012, the Redevelopment Agency became a dissolved redevelopment agency pursuant to Assembly Bill x1 26 that added Parts 1.8 and 1.85 to Division 24 of the Health and Safety Code (“Dissolution Act”).

C. By adoption of the Long Range Property Management Plan for the Successor Agency to the Redevelopment Agency of the City of El Centro, the City Council elected to have the City retain the housing assets of the Redevelopment Agency and perform functions previously performed by the Redevelopment Agency. Accordingly, as of, on, and after February 1, 2012, the City, as successor agency to the former Redevelopment Agency of the City of El Centro, began to perform and will continue to perform its functions as the “successor housing agency” of the former Redevelopment Agency pursuant to the Dissolution Act.

D. The Agency is the owner of certain real property located at 1625 N. Waterman Avenue within the City of El Centro, California (the “Lincoln/Waterman Property”), which is being subdivided into two (2) parcels.

E. The Developer desires to obtain a fee interest in the Lincoln/Waterman Property, through two separate tax credit limited partnerships (the “Partnerships”), and to improve it by constructing two multi-family, affordable housing projects, one on each newly-created parcel, consisting of a total of one hundred and sixty-six (166) affordable units and two (2) manager’s units on the Property together with any improvements appurtenant thereto (“Housing Development”).

F. In order to facilitate financial feasibility, the Housing Development will be constructed in two phases, which shall be completed by January 31, 2026. For the first phase,

17.b
Packet Pg. 184 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 2 the Developer will improve that portion of the Lincoln/Waterman Property identified on the Site Plan (Attachment No. 1) as “Phase I” of the Housing Development (“Site”), and as further described in the Site Legal Description (Attachment No. 2), by constructing one multi-family, affordable housing project, consisting of ninety-five (95) affordable units and one (1) manager’s unit (“Project”). The second phase of the Housing Development is not subject to this Agreement and shall be subject to the terms and conditions of a second set of disposition, development, and loan documents negotiated and executed by and between the Parties.

G. The Agency agrees to sell the Site to the Developer for One Million Two Hundred Seventeen Thousand One Hundred Forty-Three Dollars ($1,217,143) (“Purchase Price”), and to provide a loan to the Developer for the land purchase price, evidenced by a promissory note and secured by a deed of trust, which will accrue interest (“Agency Land Loan”). The Developer agrees to repay the Agency Land Loan from the residual receipts of the Project.

H. The Developer is required to develop the Site with 100% of units restricted to persons and families of lower income, as set forth in Government Code §54221(f)(1)(F)(i), and having complied with that section, on June, 7, 2022, the Agency declared the property as exempt surplus land.

I. The provision for assistance to the Developer pursuant to the terms and conditions of this Agreement are in the vital and best interest of the Agency and the health, safety and welfare of the City’s residents, and are in accord with the public purposes and provisions of applicable federal, state and local laws, including (without limitation) the Agency’s housing obligations under Community Redevelopment Law.

NOW, THEREFORE, the Agency and the Developer hereby agree as follows:

1. DEFINITIONS

1.1. Defined Terms
As used in this Agreement, the following capitalized terms shall have the following meanings:
“Affordability Period” means the period commencing upon the recordation of the Release of Construction Covenants and terminating on the fifty-fifth (55th) anniversary thereof. “Affordable Rent” means the amount of monthly rent, including a reasonable utility allowance, that does not the exceed the lowest rent limit for any applicable funding source, including: (i) any applicable Tax Credit Regulatory Agreement, (ii) Section 50053 of the Health & Safety Code or any successor statute if applicable, (iii) Section 8 Program regulations for a Section 8 project-based Unit or for a holder of a Rental Voucher or Rental Certificate, as applicable, and (iv) any applicable regulations pursuant to any other source of financing secured for, and continuing to be secured by, the Project. For purposes of calculating Affordable Rent a “reasonable utility allowance” shall be the allowance established by the Tax Credit Rules or such lesser allowance reasonably permitted by the Agency including, but not limited to, the California Utility Allowance Calculator, if applicable.

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Packet Pg. 185 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 3 “Affordable Units” means the ninety-five (95) units to be constructed on the Site to be restricted as follows: eleven (11) one-bedroom units, eighteen (18) two-bedroom units, and eleven (11) three-bedroom units to be restricted to Lower Income Households; nine (9) onebedroom units, sixteen (16) two-bedroom units, and nine (9) three-bedroom units to be restricted to Very Low Income Households; and four (4) one-bedroom units, thirteen (13) two-bedroom units, and four (4) three-bedroom units to be restricted to Extremely Low Income Households. “Agreement” means this Disposition, Development, and Loan Agreement, including all of the Attachments hereto, by and among the Parties.
“Agency” means the City of El Centro as the Successor Agency to the Former Redevelopment Agency of the City of El Centro.
“Agency Declaration” means Notice of Affordability Restrictions on Transfer of Property substantially in the form of Attachment No. 8 to be recorded against the Site at Closing. “Agency Deed of Trust” means the deed of trust in the form of Attachment No. 9 to be recorded against the Site at Closing.
“Agency Promissory Note” means the promissory note which is to be executed by the Developer to evidence the Agency Land Loan, in the form of Attachment No. 10. “Agency Regulatory Agreement” means the regulatory agreement which is to be recorded against the Site in substantially the form of Attachment No. 7. “Agency Land Loan” shall have the same as set forth in Recital G and as further defined in Section 3.3.
“Agency Land Loan Documents” are defined in Section 3.2.5. “Agency’s Conditions Precedent to Closing” is defined in Section 4.3.7. “AMI” or “Area Median Income” means the median family income (adjusted for family size) for Imperial County promulgated and published annually by TCAC. If TCAC ceases annually to publish median incomes, the Parties will agree upon an adequate substitute manner for determining Area Median Income.
“City” means the City of El Centro, a California municipal corporation. “Closing” means the date upon which the Grant Deed is recorded in the Official Records, all of the conditions precedent set forth in Section 4.3 are satisfied and all additional documents received by Escrow to be recorded in connection therewith are recorded in the Official Records. “Construction Loan” is defined in Section 3.3.1.
“Conversion” shall be the date upon which the Construction Loan is converted to a

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Packet Pg. 186 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 4 Permanent Loan.
“Conveyance” is defined in Section 4.1.
“Developer” means Chelsea Investment Corporation, a California corporation, and any permitted successors and assigns pursuant to Section 2.2 of this Agreement. “Developer Approval Period” means the twelve (12) month period following the Effective Date.
“Effective Date” means the date upon which this Agreement was approved by the Agency.
“Environmental Laws” means any and all present and future federal, state and local laws (whether under common law, statute, ordinance, rule, regulation or otherwise), court or administrative orders or decrees, requirements of permits issued with respect thereto, and other requirements of governmental authorities relating to the environment or to any Hazardous Substance or Hazardous Substance Activity (including, without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. § 9601, et seq.), as heretofore or hereafter amended from time to time (“CERCLA”), and the applicable provisions of the California Health and Safety Code and the California Water Code, and any and all successor statutes and regulations, orders, decrees, guidelines, or pronouncements promulgated thereunder).
“Escrow or Escrows” mean the escrow or escrows for the Conveyance of the Site to the Developer as provided in Section 4.3.
“Escrow Agent” means First American Title Insurance Company. “Event of Default” means the failure of a party to perform any action or covenant required by this Agreement within the time periods provided herein following notice and opportunity to cure, as set forth in Section 8.1.
‘‘Evidence of Financing” is defined in Section 3.1.
“Extremely Low Income Household” means a household whose aggregate gross income is less than thirty percent (30%) of AMI and qualifies as a “extremely low income household” pursuant to Health and Safety Code § 50106 any successor statute. “Gross income” shall be determined in accordance with § 6914 of Title 25 of the California Code of Regulations. “Executive Director” means the City Manager of the City of El Centro as Successor Agency to the Former Redevelopment Agency of the City of El Centro, or his/her designee. “Governmental Regulations” means any local, state, and federal laws, ordinances, rules, requirements , resolutions, policy statements and regulations (including, without limitation , those relating to land use, subdivision , zoning, environmental, labor relations, prevailing wage, notification of sale to employees, Hazardous Substance, occupational health and safety, water,

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Packet Pg. 187 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 5 earthquake hazard reduction and building and fire codes) bearing on the demolition, alteration, replacement, repair, refurbishing, improvement, construction, maintenance, management, use, or operation of the Project.
“Grant Deed” means the grant deed in substantially the form of Attachment No. 6. “Hazardous Substance” means (i) any chemical, compound, material, mixture or substance that is now or hereafter defined or listed in the United States Department of Transportation Hazardous Materials Table (49 CFR 172.10I), as amended from time to time, or now or hereafter otherwise classified or regulated pursuant to any Environmental Laws as a “hazardous substance,” “hazardous material,” “hazardous waste,” “extremely hazardous waste,” “infectious waste,” “toxic substance,” “toxic pollutant” or any other formulation intended to define, list, or classify substances by reason of deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity, toxicity, reproductive toxicity, or “EP toxicity,” (ii) any asbestos or asbestos containing material, (iii) any polychlorinated biphenyls (PCB’s), (iv) any urea formaldehyde, and (v) any petroleum, natural gas, natural gas liquid, liquefied natural gas, synthetic gas usable for fuel (or mixtures of natural gas and such synthetic gas), ash produced by a resource recovery facility utilizing a municipal solid waste stream, and drilling fluids, produced waters, and other wastes associated with the exploration, development or production of crude oil, natural gas, or geothermal resources. Notwithstanding the foregoing, “Hazardous Substances” shall not include any chemical, compound, material, mixture or substance used in the normal course of constructing or operating an apartment complex, so long as such chemical, compound, material, mixture or substance is used in accordance with Environmental Laws. “Hazardous Substance Activity” means any actual, proposed or threatened storage, holding, existence or suspected existence, release or suspected release, emission, discharge, generation, processing, abatement, removal, disposition, treatment, handling or transportation of any Hazardous Substance from, under, into, on, above, around or across the Site or surrounding property or any other use of or operation on the Site or the surrounding property that creates a risk of Hazardous Substance contamination of the Site.
“Household” means one or more persons occupying an Affordable Unit. “Improvements” shall mean and include any construction, demolition, remediation and grading done on the Site, as well as all buildings, structures, fixtures, foundations, excavation, parking, landscaping, underground installations, and other work, construction and improvement of whatsoever character undertaken or constructed on, around, under or over the Site by the Developer.
“Lower Income Household” means a household whose aggregate gross income is less than sixty percent (60%) of AMI. “Gross income” shall be determined in accordance with § 6914 of Title 25 of the California Code of Regulations.
“Notice” means a notice in the form prescribed by Section 9.1. “Outside Closing Date” means the date identified in the Schedule of Performance as the Outside Closing Date. The Outside Closing Date may be extended to a later date upon the written

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Packet Pg. 188 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 6 approval of the Executive Director.
“Parties” means the Agency and the Developer.
“Permanent Loan” means the source of financing in the form of a permanent loan to be made to the Developer, its successors or assigns under this Agreement, at Conversion, secured against the fee interest in the Site by a deed of trust. “Project” is defined in Recital F.
“Project Budget” is attached hereto as Attachment No. 5. “Purchase Price” shall have the same meaning as set forth in Recital G. “Qualified Extremely Low Income Household” means a household whose aggregate gross income is less than thirty percent (30%) of AMI and qualifies as a “extremely low income household” pursuant to Health and Safety Code § 50106 any successor statute. “Gross income” shall be determined in accordance with § 6914 of Title 25 of the California Code of Regulations. “Qualified Lower Income Household” means a household whose aggregate gross income is less than fifty percent (50%) of AMI. “Gross income” shall be determined in accordance with § 6914 of Title 25 of the California Code of Regulations. “Qualified Very Low Income Household” means a household whose aggregate gross income is less than sixty percent (60%) of AMI and qualifies as a “very low income household” pursuant to Health and Safety Code § 50079.5 or any successor statute. “Gross income” shall be determined in accordance with § 6914 of Title 25 of the California Code of Regulations. “Release of Construction Covenants” means the document which evidences the Developer’s satisfactory completion of the Project, as set forth in Section 5.15, in substantially the form of Attachment No. 11.
“Schedule of Performance” means that certain Schedule of Performance attached hereto as Attachment No. 4, setting out the dates and/or time periods by which certain obligations set forth in this Agreement must be accomplished. The Schedule of Performance is subject to revision from time to time as mutually agreed upon in writing between the Developer and the Agency. The Agency authorizes the Executive Director to make such revisions to the Schedule of Performance as he/she deems reasonably necessary to effectuate the purposes of this Agreement.
“Site” means that certain real property referenced in Recital F above as delineated on the Site Plan (Attachment No. 1) and more particularly described in the Site Legal Description (Attachment No. 2).
“Site Legal Description” means the draft description of the Site which is attached hereto as Attachment No. 2, which will be replaced by a final Site Legal Description, upon completion of the Subdivision, by written amendment to this Agreement.

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Packet Pg. 189 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 7 “Site Plan” means the map of the Site and the proposed Project, attached hereto as Attachment No. l.
“Subdivision” means the subdivision of the Lincoln/Waterman Property into two parcels, the first site consisting of approximately 3.08 acres (identified herein as “Site”) and the second site consisting of approximately 2.45 acres (which is not subject to this Agreement and shall be subject to the terms and conditions of a second set of disposition, development, and loan documents negotiated and executed by and between the Parties). “Tax Credit Regulatory Agreement” means the regulatory agreement which may be required to be recorded against the Site by TCAC with respect to the issuance of Tax Credits. “Tax Credit Rules” means Section 42 of the Internal Revenue Code of 1986, as amended, and/or California Revenue and Taxation Code Sections 17057.5, 17058, 23610.4 and 23610.5 and California Health and Safety Code Section 50199, et seq., and the rules and regulations promulgated by the United States Treasury and TCAC, as the case may be, implementing the foregoing.
“Tax Credits” means Low Income Housing Tax Credits granted pursuant to Section 42 of the Internal Revenue Code and/or California Revenue and Taxation Code Sections 17057.5, 17058, 23610.4 and 23610.5 and California Health and Safety Code Section 50199, et seq. “TCAC” means the California Tax Credit Allocation Committee. “Title Company” is First American Title Insurance Company. “Very Low Income Household” means a household whose aggregate gross income is less than fifty percent (50%) of AMI and qualifies as a “very low income household” pursuant to Health and Safety Code § 50105 or any successor statute. “Gross income” shall be determined in accordance with § 6914 of Title 25 of the California Code of Regulations.

1.2. Singular and Plural Terms
Any defined term used in the plural herein shall refer to all members of the relevant class and any defined term used in the singular shall refer to any number of the members of the relevant class.

1.3. Accounting Principles
Any accounting term used and not specifically defined herein shall be construed in conformity with, and all financial data required to be submitted herein shall be prepared in conformity with, generally accepted accounting principles applied on a consistent basis or in accordance with such other principles or methods as are reasonably acceptable to the Executive Director.

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Packet Pg. 190 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 8 1.4. References and Other Terms
Any reference to any document shall include such document both as originally executed and as it may from time to time be modified. References herein to Sections and Attachments shall be construed as references to this Agreement unless a different document is named.

References to subparagraphs shall be construed as references to the same Section in which the reference appears. The term “document” is used in its broadest sense and encompasses agreements, certificates, opinions, consents, instruments and other written material of every kind. The terms “including” and “include” mean “including (include), without limitation.”

1.5. Attachments Incorporated
All attachments to this Agreement, as now existing and as the same may from time to time be modified, are incorporated herein by this reference.

2. REPRESENTATIONS AND TRANSFERS

2.1. Representations by the Developer
The Developer hereby represents and warrants to the Agency as follows and shall advise the Agency in writing if there is any change pertaining to any matters set forth herein:

2.1.1 Organization
The Developer is a duly organized, validly existing corporation in good standing under the laws of the State of California and has the power and authority to own and lease property and carry on its business as now being conducted. The copies of the documents evidencing the organization of the Developer delivered to the Agency are true and correct copies of the originals as of the Effective Date.

2.1.2 Developer
The Developer has the legal power, right and authority to execute, deliver and enter into this Agreement and any and all other agreements and documents required to be executed and delivered by the Developer in order to carry out, give effect to, and consummate the transactions contemplated by this Agreement, and to perform and observe the terms and provisions of all of the above. The parties who have executed this Agreement and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement are authorized to execute and deliver the same on behalf of the Developer and all actions required under the Developer’s organizational documents and applicable governing law for the authorization, execution, delivery and performance of this Agreement and all other documents or instruments executed and delivered, or to be executed and delivered pursuant hereto, have been duly taken.

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Packet Pg. 191 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 9 2.1.3 Valid Binding Agreements
This Agreement and all other documents or instruments which have been executed and delivered pursuant to or in connection with this Agreement constitute or, if not yet executed or delivered, will constitute when so executed and delivered, legal, valid and binding obligations of the Developer enforceable against it in accordance with their respective terms.

2.1.4 Contingent Obligations
The Developer does not have any material contingent obligations or any material contractual agreements (other than in connection with the development of the Project) which could materially adversely affect the ability of the Developer to carry out its obligations hereunder.

2.1.5 Litigation
To the Developer’s best knowledge, no action, suit or proceedings are pending or threatened before any governmental department, commission, board, bureau, agency or instrumentality to which the Developer is or may be made a party or to which any of its property is or may become subject, which has not been disclosed to the Agency which could materially adversely affect the ability of the Developer to carry out its obligations hereunder.

2.1.6 No Conflict
The Developer’s execution and delivery of this Agreement and any other documents or instruments executed and delivered, or to be executed or delivered, pursuant to this Agreement, and the performance of any provision, condition, covenant or other term hereof or thereof, do not or will not conflict with or result in a breach of any statute, rule or regulation, or any judgment, decree or order of any court, board, commission or agency whatsoever binding on the Developer, or any provision of the organizational documents of the Developer, or will conflict with or constitute a breach of or a default under any agreement to which the Developer is a party, or will result in the creation or imposition of any lien upon any assets or property of the Developer, other than liens established pursuant hereto.

2.1.7 No Developer Bankruptcy
No attachments, execution proceedings, assignments for the benefit of creditors, insolvency, bankruptcy, reorganization, receivership or other proceedings are pending or, to the best of the Developer ‘s knowledge, threatened against the Developer or any parties affiliated with the Developer, nor are any of such proceedings contemplated by the Developer or any parties affiliated with the Developer. Each of the foregoing representations shall be deemed to be an ongoing representation and warranty.

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Packet Pg. 192 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 10 2.2. Limitation Upon Change in Ownership, Management and Control of Developer

2.2.1 Prohibition
The identity and qualifications of the Developer as an experienced and successful developer and operator/manager of affordable housing are of particular concern to the Agency.

It is because of this identity and these qualifications that the Agency has entered into this Agreement with the Developer. Prior to the expiration of the Affordability Period, no voluntary or involuntary successor in interest of the Developer shall acquire any rights or powers under this Agreement by assignment or otherwise, nor shall the Developer make any total or partial sale, transfer, conveyance, encumbrance to secure financing (including, without limitation, the grant of a deed of trust to secure funds necessary for construction and permanent financing of the Project), distribution, assignment or lease of the whole or any part of the Site or any material change in the management or control of the Developer without the prior written approval of the Agency, except as expressly set forth herein. Any purported transfer, voluntary or by operation of law, in violation of this Section 2.2 shall constitute a default hereunder and shall be void and the Agency shall have the cumulative options to terminate this Agreement and to seek all remedies available at law or equity.

2.2.2 Permitted Transfers by Developer
Notwithstanding any other provision of this Agreement to the contrary, the Agency approval of an assignment of this Agreement or conveyance of the Site or any part thereof shall not be required in connection with any of the following:
(a) the conveyance or dedication of any portion of the Site to the City or other appropriate governmental agencies, or the granting of easements or permits to public utilities to facilitate the development of the Project;
(b) subject to the restrictions of Section 6.3 hereof and as set forth in the Agency Regulatory Agreement, the rental of the Affordable Units to Very Low Income Households;
(c) any transfer to a limited partnership in which an affiliate of the Developer is a general partner. “Affiliate” shall mean a corporation wherein Developer has a right to exercise, directly or indirectly, more than 50% of the voting rights attributable to the shares of the controlled corporation, and with respect to an entity that is not a corporation, the possession, directly or indirectly, of the power to direct, or cause the direction of, the management or policies of the controlled entity; (d) the admission of a tax credit investor to such limited partnership, any subsequent transfer of such tax credit limited partnership interest, and any removal and replacement of the general partner of the limited partnership by its tax credit limited partner in accordance with its partnership agreement (which partnership agreement

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Packet Pg. 193 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 11 shall be subject to review and approval by the City).

An assignment pursuant to Section 2.2.2(c) or (d) shall not be effective unless and until the proposed assignee or transferee executes and delivers to the Agency an agreement in form reasonably satisfactory to Agency’s legal counsel assuming the obligations of the Developer under this Agreement.

2.2.3 Agency Consideration of Requested Transfer
Except for a transfer permitted pursuant to Section 2.2.2, the Developer shall provide the Agency with thirty (30) calendar days’ prior written notice of its intent to assign or transfer and shall request any approval sought for such assignment or transfer described in Section 2.2.2 above. Such notice shall be accompanied by evidence regarding the proposed assignee’s or purchaser’s development, operation and management qualifications and experience and its financial commitments and resources sufficient to enable the Agency to evaluate the proposed assignee or purchaser is qualified and capable to perform the Developer’s obligations pursuant to this Agreement. Within thirty (30) calendar days, or, if board or council approval is required, forty-five (45) calendar days, after the receipt of the Developer’s written request for the Agency approval of an assignment or transfer pursuant to this Section 2.2.3, the Agency shall respond in writing either approving the proposed assignee or transferee or requesting further information required by the Agency in order to determine whether or not to grant the requested approval. Upon receipt of such a request for further information, the Developer shall promptly furnish to the Agency such requested information. An assignment or transfer approved by the Agency pursuant to this Section 2.2.3 shall not be effective unless and until the proposed assignee or transferee executes and delivers to the Agency an agreement in form reasonably satisfactory to Agency’s legal counsel assuming the obligations of the Developer under the Agency Conveyance Documents. Thereafter, the assignor shall remain responsible to the Agency for performance of the obligations assumed by the assignee unless the Agency releases the assignor in writing.

2.2.4 Successors and Assigns
All of the terms, covenants and conditions of this Agreement shall be binding upon the Developer and the permitted successors and assigns of the Developer.

3. FINANCING OF THE PROJECT

3.1. Sources of Financing
As set forth in the Project Budget, the Purchase Price shall be financed by the Agency Land Loan, and other Project costs shall be financed with a combination of funds from the Construction Loan, Tax Credits, and such other financing sources as secured by the Developer.

As a condition precedent to the Agency’s obligation to transfer the Site at the Closing, the Developer shall submit to the Agency evidence that the Developer has obtained, or will obtain prior to the Closing, sufficient commitments for financing the completion of the Project such that the Agency is reasonably satisfied that the Project can be constructed with the Affordable

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Packet Pg. 194 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 12 Units in accordance with this Agreement. Such evidence (collectively, “Evidence of Financing”) shall include, at a minimum:
(a) Final Construction Loan, or other construction financing documents, in an amount sufficient to construct the Project in accordance herewith along with evidence reasonably satisfactory to the Executive Director that the lender intends to provide the initial funding on the Closing. Any such agreement shall provide for notice of default to the Agency and a right to cure.
(b) Evidence of such other loans, donations, equity, or grants as may be required to pay (i) the amount of the construction costs for the Improvements, plus (ii) an amount equal to all consultant and loan fees, “points,” commissions, bond issuance costs, charges, furnishings, fixtures, taxes, interest, start-up costs, the Developer’s overhead and administration, and other costs and expenses of developing and completing the Affordable Units.
(c) A copy of the most recently prepared Annual Financial Statement for the Developer, if applicable.

A final Project Budget and Evidence of Financing shall satisfy the Executive Director that (i) the Developer has obtained sufficient financing to construct and operate the Project during the Affordability Period, (ii) that the interest rate to be charged on any financing is commercially reasonable, and (iii) that the Project is financially feasible and able to meet its financial obligations as required hereby and by any other agreements binding upon the Project, and in accordance with the Project Budget.

3.2. Agency Land Loan
Agency hereby agrees to loan to the Developer, and the Developer hereby agrees to borrow from the Agency, the Agency Land Loan in the amount of One Million Two Hundred Seventeen Thousand One Hundred Forty-Three Dollars ($1,217,143) (“Agency Land Loan”).

The interest rate of the Agency Land Loan shall be three percent (3%) simple interest, or such greater rate of interest required by the Project tax credit investor.

3.2.1 Funding
The Agency Land Loan shall be made in accordance with and subject to the terms and conditions set forth in the Agency Promissory Note, the Agency Deed of Trust, and this Agreement.

3.2.2 Security for Agency Land Loan; Nonrecourse Obligation The Agency Land Loan shall be evidenced by the Agency Promissory Note and shall be secured by the Agency Deed of Trust. In addition, the Developer shall execute the Assignment of Plans, Reports and Data as security for the Agency Land Loan prior to the recordation of the Release of Construction Covenants. The Agency Land Loan shall constitute as a nonrecourse obligation of the Developer such that the Agency shall resort only to the Site

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Packet Pg. 195 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 13 for repayment upon an Event of Default by the Developer, and neither the Developer nor its partners, members, directors, officers, agents or employees shall have any further liability for repayment in the event the Site or portion thereof is foreclosed upon.

3.2.3 Subordination
The Agency Deed of Trust shall be subordinate to the liens and encumbrances of the Agency Regulatory Agreement, the Project’s senior tax-exempt bond financing, and such exceptions to title as are reasonably approved by the Agency in writing, which approval shall not be unreasonably withheld, conditioned or delayed. In addition, the Agency agrees to consider in good faith any other reasonable request by the Developer for subordination of the Agency Deed of Trust to other loans obtained by the Developer pursuant to Section 3.3 below where the Agency’s interests are protected and secure. A Request for Notice of Default shall be recorded in the official records of Imperial County concurrent with any documents evidencing the subordination of the Agency Land Loan.

The Agency Regulatory Agreement may be subordinated to any approved sources of permanent financing upon a finding by the Agency pursuant to Health & Safety Code § 33334.14 and based upon evidence submitted by the Developer and/or lender that an economically feasible alternative method of financing on substantially comparable terms and conditions, but without subordination, is not reasonably available.

The subordination by the Agency pursuant to this Section 3.2.3 shall be made in accordance with a subordination agreement in the form and substance reasonably approved by Agency’s legal counsel which agreement shall include written commitments reasonably designed to protect the Agency’s investment and covenants in the event of default, including, but not limited to, reasonable notice and cure rights.

3.2.4 Use of Agency Land Loan
The Agency Land Loan shall be used solely as seller financing for the purchase price of the Property, and for no other purpose.

3.2.5 Disbursement of Loan
The original principal amount of the Agency Land Loan shall be applied as a credit to the purchase price of the Property at the Closing. No cash proceeds of the Agency Land Loan shall be disbursed.

3.2.6 Conditions Precedent to the Credit of the Agency Land Loan The Agency shall issue the Agency Land Loan as a credit for the Purchase Price only upon satisfaction of the conditions precedent set forth in this Section 3.2.6:
(a) Execution and Delivery of Agency Land Loan Documents. The Developer shall have executed and delivered to the Agency: this Agreement, the Agency Regulatory Agreement, the Agency Promissory Note, the Agency Deed of Trust, and the Assignment

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Packet Pg. 196 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 14 of Plans, Reports and Data (“Agency Land Loan Documents”). (b) Evidence of Insurance. The Developer shall have furnished the Agency with proper evidence of insurance as required by Section 7.2.
(c) Title to Land. The Developer shall be concurrently acquiring the Property from Agency as provided herein.
(d) Recordation and Priority of Agency Regulatory Agreement. The Regulatory Agreement shall have been executed and recorded as an encumbrance against the Site before the liens of the Agency Land Loan and subordinate only to those liens permitted pursuant to Section 3.2.3.
(e) Recordation of the Agency Deed of Trust. The Agency Deed of Trust shall have been executed and recorded as a lien against the Site and subordinate only to those liens permitted pursuant to Section 3.2.3.
(f) Title Policy. Concurrently with the recordation of the Agency Deed of Trust, the Title Company shall issue and deliver to the Agency an extended ALTA lender’s policy of title insurance in an amount equal to the Agency Land Loan, together with such endorsements as requested by the Agency, insuring that the priority of the Agency Deed of Trust and the Agency Regulatory Agreement are consistent with Section 3.2.3. The Title Company shall provide the Developer with copies of such title policy. The Title Company shall, if requested by the Agency, provide any extended coverage and any endorsements reasonably requested by the Agency (collectively, “Additional Endorsements”). The Developer shall pay the cost of such title policies issued in connection with the acquisition of the Property.
(g) Environmental Compliance. All federal, state and local environmental requirements applicable to the Project, including without limitation, the National Environmental Policy Act of 1969, Public Law 91-190 as amended, 42 U.S.C. Sections 4321-4347 and the California Environmental Quality Act California Public Resources Code Section 21000, et seq., have been satisfied.
(h) No Default. There shall exist no condition, event or act which would constitute an Event of Default by the Developer (as defined in Section 8.1) hereunder or which, upon the giving of notice or the passage of time, or both, would constitute an Event of Default by the Developer.
(i) Appraisal. The Developer shall have provided the Agency with a copy of the most recent appraisal for the Site.
(j) Subdivision. The Subdivision shall have been finalized and the final map recorded. (k) Representations and Warranties. All representations and warranties of the Developer herein contained shall be true and correct in all material respects

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Packet Pg. 197 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 15 3.3. Other Sources of Financing

3.3.1 Construction Loan
The Developer shall obtain funds for the construction of the Project by way of a loan in the approximate amount set forth in the attached Project Budget (“Construction Loan”).

The terms and provisions of the Construction Loan shall be similar to ordinary and customary provisions of construction lenders on loans similar to the Construction Loan. The Construction Loan shall provide for normal and customary disbursement controls, the payment of normal and customary fees and expenses for a loan of similar size and purpose, and for the payment of other expenses contained in the Project Budget. Documentation for the Construction Loan shall be subject to the review of the City.

3.3.2 Permanent Loan
If the Developer obtains funds by way of a Permanent Loan at or before the maturity of the Construction Loan, the terms and provisions of the Permanent Loan shall be similar to ordinary and customary provisions of permanent lenders on loans similar to the Permanent Loan. Documentation for the Permanent Loan shall be subject to the review of the Agency.

3.3.3 Tax Credits
The Developer anticipates an award from TCAC of Tax Credits pursuant to Section 42 of the Internal Revenue Code of 1986, as amended and/or California Revenue and Taxation Code Sections 17057.5, 17058, 23610.4 and 23610.5 and California Health and Safety Code Section 50199, et seq., for the Project. The Developer anticipates the Tax Credits syndication proceeds will be in an approximate amount set forth in the Project Budget. The Parties acknowledge that in order to receive the allocation of Tax Credits for the Project, the Developer must satisfy certain conditions established by TCAC and must subject the Site to certain covenants and restrictions pursuant thereto as set forth in that the Tax Credit Regulatory Agreement to be recorded against the Site.

3.4. Rights of Termination in the Event of Insufficiency of Funds If at any time prior to the Closing and recordation of the Grant Deed, the Parties estimate that the aggregate amount of the sources of funds set forth in Section 3, et seq., is less than the Project Costs necessary to complete the Project, the Parties shall meet to identify potential supplemental funding sources and shall diligently pursue such additional funds. So long as the Developer demonstrates to the satisfaction of the Executive Director that the Developer is diligently pursuing additional funds to complete the Project, times for performance as set forth in the Schedule of Performance shall automatically extend up to twelve (12) months (“Extension Period”). During the Extension Period, the Developer shall continue to maintain the Site in accordance with the requirements of this Agreement. In the event the Parties are unsuccessful in securing additional funds necessary for the Project, the Parties shall meet and confer in good faith to modify the Project to allow partial completion with available funding sources. In the

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Packet Pg. 198 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 16 event that the Agency declines to provide a firm commitment by way of formal resolution to commit the necessary additional funds, the Developer may terminate this Agreement. In the event that the Developer desires to terminate the Agreement, the Developer shall promptly notify the Agency in writing of its intent. Notwithstanding the foregoing, the Developer’s indemnification obligations under this Agreement shall remain in force following such termination with respect to any events occurring or claims accruing prior to the date of termination. After the Closing, the Developer shall be solely responsible for all remaining Project Costs and shall be obligated to complete the Project substantially in accordance with this Agreement.

3.5. Obligation to Update Project Budget
The Developer shall update the Project Budget in the event of a proposed material change to the Project Budget. In the event of a proposed material change to the Project Budget, the Developer shall notify the Agency in writing of the nature of the proposed change, including a detailed description of the effect of such change, and submit a revised, pro forma Project Budget reflecting such change to the Agency. The Executive Director shall have the right to approve such change prior to the Developer taking any action in furtherance of such change.

3.6 Foreclosure by Third-Party Lender
In the event of foreclosure by a third-party lender, if there is a loss of subsidy to the Project, or if there are financial conditions that otherwise render the Project infeasible absent an increase in the income levels of the Affordable Units, subject to the approval of the Agency, which shall not be unreasonably withheld, income levels of the Affordable Units may be increased to facilitate Project feasibility, provided that the resulting Units are still affordable to Households whose aggregate income is less than sixty percent (60%) of AMI. Such increases shall only be implemented to the extent and degree that they are necessary, in a manner that minimizes disruption to Households in affected Units.

4. DISPOSITION OF SITE

4.1. Conveyance of Site to Developer
Subject to all of the terms and conditions set forth in this Agreement, the Agency agrees to convey to the Developer, and the Developer agrees to acquire from the Agency, all of the Agency’s right, title, and interest in and to the Site, together with all rights, privileges, tenements, hereditaments, rights-of-way, easements, and appurtenances thereto, if any (“Conveyance”).

4.2. Condition of the Site

4.2.1 Disclosure
Prior to the Effective Date, the Agency shall deliver to the Developer copies of any environmental reports in the possession of the Agency. Other than as may be disclosed by such environmental reports, the Agency hereby represents and warrants to the Developer that the Agency has not received any additional written notice or communication from any

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Packet Pg. 199 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 17 government agency having jurisdiction over the Site, notifying the Agency or any third party of, and the Agency has no additional actual knowledge of, the presence of surface or subsurface zone Hazardous Materials in, on, or under the Site, or any portion thereof.

4.2.2 Developer’s Investigation of the Site
Prior to the expiration of the Developer Approval Period, the Developer shall have the right to access the Site during regular business hours and upon reasonable Notice to the Agency for the purpose of obtaining data and conducting surveys and tests, including but not limited to environmental, soils, and engineering assessments. Any surveys, tests, or other assessments concerning the Site by the Developer shall be done at its sole expense and only after the Developer party has secured any necessary permits from the appropriate governmental agencies and shall be pursuant to a right of entry in form approved by the Agency. The Developer hereby indemnifies and holds the Agency harmless from any injury or damages arising out of any activity of the Developer, its agents, employees and contractors, performed and conducted on the Site pursuant to this Section 5.2.2. If the Developer determines that the Project is infeasible prior to the expiration of the Developer Approval Period, the Developer shall have the right to terminate this Agreement in accordance with Section 8.6.1 hereof

4.2.3 Acceptance of Condition of Site
Unless this Agreement is earlier terminated in accordance with Section 8.6 et seq., the Developer shall be deemed to have approved the physical and environmental condition of the Site upon the expiration of the Developer Approval Period.

4.2.4 No Further Warranties As To Site; Release of City and Agency Except for the representations and warranties herein, upon the Closing, the physical and environmental condition, possession or title (as the case may be) of the Site is and shall be delivered from the Agency to the Developer in an “as-is” condition, with no warranty expressed or implied by the Agency, including without limitation, the presence of Hazardous Materials or the condition of the soil, its geology, the presence of known or unknown seismic faults, or the suitability of the Site for the development purposes intended hereunder. Except for obligations of the Agency set forth in this Agreement, upon the Closing, the Developer hereby waives, releases and discharges forever the City and the Agency, and their employees, officers, agents, and representatives, from all present and future claims, demands, suits, legal and administrative proceedings and from all liability for damages, losses, costs, liabilities, fees and expenses, present and future, arising out of or in any way connected with the City’s, the Agency’s, or the Developer’s use, maintenance, ownership, or operation of the Site, except those arising out of the active negligence or willful misconduct of the City and/or the Agency, or their employees, officers, agents, or representatives. The Developer acknowledges that it is aware of and familiar with the provisions of Section 1542 of the California Civil Code which provides as follows:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS

WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO

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Packet Pg. 200 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 18 EXIST IN HIS OR HER FAVOR AT THE TIME OF

EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR

HER MUST HAVE MATERIALLY AFFECTED HIS OR HER
SETTLEMENT WITH THE DEBTOR.”
As such relates to this Section 4.2, and excepting those obligations of the Agency set forth in this Agreement, the Developer hereby waives and relinquishes all rights and benefits which it may have under § 1542 of the California Civil Code.

4.3. Escrow
Within the time specified in the Schedule of Performance, the Parties shall open escrow (“Escrow”) for the Conveyance with Escrow Company.

4.3.1 Escrow Instructions
This Agreement constitutes the joint escrow instructions of the Developer and the Agency for the Conveyance, and the Escrow Agent to whom these instructions are delivered is hereby empowered to act under this Agreement. Any amendment of these escrow instructions shall be in writing and signed by the Developer and the Agency. At the time of any amendment, the Escrow Agent shall agree to carry out its duties as Escrow Agent under such amendment. All communications from the Escrow Agent to the Developer or the Agency shall be directed to the addresses and in the manner established in Section 9.1 for Notice between the Developer and the Agency. Insurance policies for fire or casualty are not to be transferred, and the Agency will cancel its own policies, if applicable, after the Closing.

4.3.2 General Provisions Applicable to Escrow Agent
The following general provisions shall be applicable to the Escrow Agent. (a) All disbursements shall be made by check or wire transfer of the Escrow Agent. All funds received in the Escrow shall be deposited in a separate interest-earning escrow account with any bank doing business in the State of California and approved by the Developer. (b) The Parties to the Escrow jointly and severally agree to pay all costs, damages, judgments and expenses, including reasonable attorneys’ fees, suffered or incurred by the Escrow Agent in connection with, or arising out of the Escrow, including, but without limiting the generality of the foregoing, a suit in interpleader brought by the Escrow Agent. In the event that the Escrow Agent files a suit in interpleader, the Escrow Agent shall be fully released and discharged from all obligations imposed upon the Escrow Agent in the Escrow.
(c) All pro-rations and/or adjustments called for in the Escrow shall be made on the basis of a thirty (30) day month unless the Escrow Agent is otherwise instructed in writing.

4.3.3 Agency of Escrow Agent

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Packet Pg. 201 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 19 The Escrow Agent is authorized to, and shall:
(a) Pay and charge the Developer for any Escrow Costs payable under Section 4.3.4; (b) Pay and charge the Agency any amount necessary to place title in the condition necessary to satisfy Section 4.3.5;
(c) Pay and charge the Developer for the premium of the Agency Title Policy and the Developer Title Policy as set forth in Section 4.3.6 and, if applicable, pay and charge the Developer for any upgrade of the Developer Title Policy or Additional Endorsements to the Developer Title Policy which are requested by the Developer pursuant to Section

4.3.6;
(d) Disburse funds and record and deliver to the Developer the Grant Deed when both the Developer’s Conditions Precedent to Closing and the Agency’s Conditions Precedent to the Closing are satisfied or waived in writing by the Party for whom the condition was established;
(e) Insert appropriate amounts and the date of the Closing in documents deposited by the Parties in the Escrow;
(f) Do such other actions as necessary to fulfill the Escrow Agent’s obligations under this Agreement, including, if applicable, obtaining the Developer Title Policy and the Agency Title Report recording any instrument delivered through Escrow if necessary and proper in the issuance of such title policies;
(g) Within the discretion of the Escrow Agent, direct the Developer and the Agency to execute and deliver any instrument, affidavit or statement, and to perform any act reasonably necessary to comply with the provisions of FIRPTA and any similar state act or regulation promulgated thereunder. The Agency agrees to execute a Certificate of Non-Foreign Status by individual transferor, a Certificate of Compliance with Real Estate Reporting Requirement of the 1986 Tax Reform Act and/or a California Franchise Tax Board Form 590 or similar form to assure the Developer that there exist no withholding requirements imposed by application of law as may be required by the Escrow Agent, on forms supplied by the Escrow Agent;
(h) Prepare and file with all appropriate governmental or taxing authorities a uniform settlement statement, closing statement, tax withholding forms, including an IRS 1099- S form, and be responsible for withholding taxes, if any such forms and/or withholding are provided for or required by law; and
(i) Prepare and deliver to the Developer and the Agency for their review and approval prior to the Closing a settlement statement.

4.3.4 Escrow Costs
The Developer shall pay the costs of documentary stamps on the Grant Deeds,

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Packet Pg. 202 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 20 the costs of recording charges, all other customary and usual Escrow fees, charges and costs which arise from the Escrow.

4.3.5 Review of Title
The Developer shall obtain a standard preliminary title report with respect to the Site, together with legible copies of the documents underlying the exceptions (“Exceptions”) set forth in the preliminary title report (collectively, the “Preliminary Title Report”). No less than sixty (60) days prior to the expiration of the Developer Approval Period, Developer shall give Notice to the Agency and the Escrow Agent of the Developer’s approval or disapproval of the Preliminary Title Report, including without limitation any Exceptions. If the Developer notifies the Agency of the Developer’s disapproval of any items, the Agency shall have the right, but not the obligation, to remove any disapproved items after receiving Notice of the Developer’s disapproval or provide assurances reasonably satisfactory to the Developer that such items will be removed or remedied on or before the expiration of the Developer Approval Period. The Agency shall exercise such right by Notice to the Developer within ten (10) calendar days of receipt of Notice from the Developer of the Developer’s disapproval. If the Agency cannot or does not elect to remove any disapproved items, the Developer may, at its election, deliver Notice to the Agency that the Developer intends to proceed with the Conveyance subject to the disapproved items by way of the notice to proceed (“Notice to Proceed”) or (ii) give the Agency Notice that the Developer does not elect to accept the Conveyance and elects to terminate the Escrow and this Agreement, whereupon any sums deposited by the Developer into Escrow and all interest earned thereon shall be returned to the Developer and the parties shall have no further obligations or liability to each other. The Exceptions to title approved by the Developer as provided herein shall hereinafter be referred to as the “Permitted Exceptions” and/or the “Condition of Title.” The Developer shall have the right to approve or disapprove in the manner provided in this Section any Exception reported by the Title Company or otherwise discovered after the Developer has approved the Condition of Title (which are not created by the Developer).

Notwithstanding anything herein to the contrary, the Agency shall remove prior to Closing all monetary liens other than non-delinquent taxes and assessments and all exceptions relating to the Dissolution Act.

4.3.6 Title Insurance
(a) Developer Title Insurance. Concurrently with the recordation of the Grant Deed, the Title Company shall issue and deliver to the Developer, at the Developer’s cost, an CLTA owner’s policy of title insurance, together with the Approved Endorsements (“Developer Title Policy”), insuring that fee simple title to the Site is vested in the Developer in the Condition of Title. The Title Company shall provide the Agency with a copy of the Developer Title Policy. The Developer Title Policy shall be in an amount reasonably determined by the Developer and shall be issued at the exact date and time of Closing; provided, however, that the Title Company shall, if requested by the Developer, provide ALTA extended coverage policy as needed and any endorsements reasonably requested by the Developer (collectively, “Additional Endorsements”). The additional cost of such ALTA extended coverage and the Additional Endorsements shall be borne by the Developer. The Agency shall, at no cost or expense to the Agency, cooperate with and assist the Developer in obtaining such ALTA extended coverage and any Additional

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Packet Pg. 203 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 21 Endorsements, including required indemnities that are customary and reasonable, or special coverage reasonably requested by the Developer. (b) Agency Title Insurance. Concurrently with the recordation of the Agency Deed of Trust as a lien against the Site, the Title Company shall issue and deliver to the Agency, at the Developer’s cost, an ALTA standard form lender’s policy of title insurance, together with the Approved Endorsements (“Agency Title Policy”), insuring the Agency Declaration and the recordable Agency Deed of Trust and Agency Regulatory Agreement are liens against the fee estate held by the Developer. The Title Company shall provide the Developer with a copy of the Agency Title Policy. The Agency Title Policy shall be in the aggregate amount of the Agency Land Loan and shall be issued at the exact date and time of Closing; provided, however, that the Title Company shall, if requested by the Agency, provide any extended coverage and any endorsements reasonably requested by the Agency (collectively, “Additional Endorsements”).

4.3.7 Agency’s Conditions Precedent to Closing
The Agency’s obligation to close Escrow is conditioned upon the satisfaction or written waiver by the Agency of each and every one of the conditions precedent (a) through (m), inclusive, described below (“Agency’s Conditions Precedent to Closing”), which are solely for the benefit of the Agency, and which shall be satisfied or waived by the time periods provided for herein:
(a) Agency Land Loan Documents. The Developer has executed and delivered into Escrow the Agency Declaration, Agency Deed of Trust, and Agency Regulatory Agreement and such other documents as may be reasonably requested by the Agency in connection therewith and all of which shall be in a form acceptable to the Agency; (b) Notice to Proceed. The Developer has timely issued the Notice to Proceed; (c) Escrow Costs. The Developer has deposited into Escrow the Developer’s share of Escrow Costs along with any other required costs of Closing; (d) Agency Title Policy. The Title Company has irrevocably committed to issuing the Agency Title Policy upon the Closing, in accordance with Section 4.3.6; (e) Financing. The Executive Director has approved Evidence of Financing in accordance with Section 3.1;
(f) Project Budget. The Developer has submitted and the Executive Director has approved a Project Budget dated as of Closing;
(g) Schedule of Performance. The Developer has submitted and the Agency has approved a Schedule of Performance dated as of Closing;
(h) Insurance. The Developer has submitted to the Agency an insurance certificate or other

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Packet Pg. 204 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 22 acceptable written evidence demonstrating compliance with the requirements herein; (i) Project Entitlements. The Developer shall have obtained all entitlements necessary to commence construction of the Project in the manner contemplated by this Agreement, except that, in lieu of obtaining permits by the Closing, Developer may obtain a permit ready to issue letter stating that all conditions to issuance of building permits are satisfied except for payment of fees;
(j) No Litigation. No litigation shall be pending or threatened by any third parties which seek to enjoin the transactions contemplated herein;
(k) No Default. The Developer is not in default of any of its material obligations under the terms of this Agreement and all representations and warranties of the Developer contained herein shall be true and correct in all material respects; (l) Subdivision. The Subdivision shall have been finalized and the final map recorded. (m)Easement. The Developer has recorded a reciprocal parking easement between the subsequent parcels, as may be required by the Agency; and (n) Construction Documents. The Agency has reviewed the construction bid documents, construction contract, and final selection of the Contractor for the Project.

4.3.8 Developer’s Conditions Precedent to Closing
The Developer’s obligation to close Escrow is conditioned upon the satisfaction or written waiver by the Developer of each and every one of the conditions precedent (a) through (j), inclusive, described below (“Developer’s Conditions Precedent to Closing”), which are solely for the benefit of the Developer, and which shall be satisfied or waived by the time periods provided for herein:
(a) Execution of Documents. The Agency shall have executed and deposited into Escrow all documents to which it is a party;
(b) Review and Approval of Title. The Developer shall have reviewed and approved the condition of title, as provided in Section 4.3.5;
(c) Owner’s Title Policy. The Title Company shall, upon payment of the Title Company’s regularly scheduled premium, be irrevocably committed to issue the Developer Title Policy upon the Closing, in accordance with Section 4.3.6; (d) Financing. The Developer has obtained all of the financing described in Section 3.3 and the Executive Director has approved Evidence of Financing in accordance with Section

3.l;
(e) Approval of Environmental Condition of the Site. The Developer shall have approved

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Packet Pg. 205 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 23 the condition of the Site in accordance to the provisions of Section 4.2; (f) No Litigation. No litigation shall be pending or threatened by any third parties which seek to enjoin the transaction contemplated herein or to obtain damages in connection with this Agreement; and
(g) No Default. The Agency is not in default of any of its obligations under the terms of this Agreement and all representations and warranties of the Agency contained herein shall be true and correct in all material respects.
(h) Subdivision. The Subdivision shall have been finalized and the final map recorded.

4.3.9 Termination of Escrow
If the Escrow is not in a condition to close by the Outside Closing Date, as the same may be extended pursuant to this Agreement, then either Party which has fully performed under this Agreement may, in writing, demand the return of money, documents or property and terminate the Escrow and this Agreement. If either Party makes a written demand for the return of its money, documents or property, this Agreement shall not terminate until twenty (20) calendar days after the Escrow Agent shall have delivered copies of such demand to the other Party at the respective addresses set forth in Section 9.1 hereof. If any objections are raised by written Notice within such twenty (20) calendar day period, the Escrow Agent is authorized to hold all money, documents or property until instructed by a court of competent jurisdiction or by mutual written instructions of the Parties. If no such objections are timely made, the Escrow Agent shall immediately return the demanded money and/or documents, and the escrow cancellation charges shall be paid by the undemanding Party. Termination of the Escrow shall be without prejudice as to whatever legal rights, if any, either Party may have against the other arising from this Agreement. If no demands are made, the Escrow Agent shall proceed with the Closing as soon as possible consistent with the terms of this Agreement. Nothing in this Section shall be construed to impair or affect the rights of the Developer to specific performance.

4.3.10 Closing of Escrow
The Conveyance shall close (“Close” or “Closing”) within five (5) calendar days of the satisfaction or written waiver of both the Developer’s Conditions Precedent to Closing and the Agency’s Conditions Precedent to Closing, but in no event later than the Outside Closing Date. The Closing shall occur through Escrow.

4.3.11 Closing Procedure
The Escrow Agent shall Close the Escrow as follows:
(a) Record the Grant Deed with instruction to the County Recorder to deliver of the Grant Deed to the Developer;
(b) Record the Agency Regulatory Agreement with instruction to the County Recorder to

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Packet Pg. 206 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 24 deliver the Agency Regulatory Agreement to the Agency; (c) Record the Agency Declaration with instruction to the County Recorder to deliver Notice of Agency Declaration to the Agency;
(d) Record the Agency Deed of Trust with instruction to the County Recorder to deliver the Deed of Trust to the Agency;
(e) Deliver the Developer Title Policy issued by the Title Company to the Developer; (f) Deliver the Agency Title Policy issued by the Title Company to Agency; (g) File any informational reports required by Internal Revenue Code Section 6045(e), as amended, and any other applicable requirements;
(h) Deliver the FIRPTA Certificate, if any, to the Developer, and (i) Forward to the Developer and the Agency a separate accounting of all funds received and disbursed for each Party and copies of all executed, recorded, or filed documents deposited into Escrow, with such recording and filing date and information endorsed thereon.

The Parties shall reasonably cooperate in modifying the foregoing closing procedures to accommodate the time of Closing.

5. DEVELOPMENT OF THE SITE

5.1. Scope of Work
The Developer shall construct the Project substantially in accordance with the attached Project Description (Attachment No. 3), applicable Governmental Regulations, including (without limitation) and all applicable state, federal, and local labor standards and City zoning, planning and design review requirements. Project construction may be phased. Notwithstanding the foregoing, the Project shall be completed by the time established therefor in the Schedule of Performance.

5.2. Payment and Performance Bonds
The Developer shall obtain payment and performance bonds as required by the Project senior lender and tax credit investor. Any such bonds shall name Agency as Co-Obligee. Any required bonds shall be issued by a corporate surety authorized by the State of California. Any required payment and performance bonds are to be submitted to the Project Manager to complete the City Attorney approval process.

5.3. Conditions Precedent to Construction

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Packet Pg. 207 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 25 The Developer shall not begin construction until the following conditions precedent have been satisfied or waived by the Agency:
(a) Escrow has closed in accordance with the terms of this Agreement; (b) The Developer has obtained all consents, approvals, entitlements, and permits required for construction, including any and all environmental approvals and/or clearances, a conditional use permit, and the proper building permits; (c) The Developer has requested a notice to proceed from the City, and the City has notified the Developer in writing that it may proceed with construction.

5.4. Defects in Plans
Neither the City or the Agency shall be responsible to the Developer or to third parties in any way for any defects in the design of the Project, nor for any structural or other defects in any work done according to the approved design of the Project, nor for any delays reasonably caused by the review and approval processes established by this Section 5.3. The Developer shall hold harmless, indemnify and defend the City and the Agency and their respective officers, employees, agents and representatives from an against any claims, suits for damages to property or injuries to persons arising out of or in any way relating to defects in the design of the Project, including (without limitation) the violation of any laws, and for defects in any work

5.5. Construction of the Project
The cost of planning, designing, developing and constructing the Project, and any demolition and removal of any existing structure or Site improvements, Site remediation and Site preparation costs, shall be borne solely by the Developer. An affiliate of the Developer may act as the general contractor. The Developer shall have submitted to the Agency, and the Agency shall have approved the proposed contractor/subcontractor bidding procedures and the proposed form of the contract to be entered into with the contractor and/or subcontractors. All such contracts shall be entered into with a duly licensed and insured contractor or subcontractors, and the Developer shall comply, to the extent practicable subject to the availability of labor of comparable quality and skill, and the availability of materials of comparable cost and quality, with Health and Safety Code §§ 33422.1 and 33422.3. To the extent permitted by law, the Developer shall utilize in good faith and as practicable, and shall require its contractors and subcontractors to utilize in good faith and as practicable, lower income persons residing in the redevelopment project areas lying within the City’s municipal boundaries in their hiring programs, in the construction and development of the Project consistent with the hiring preference authorization and $100,000 contract threshold set forth by Health & Safety Code Section 33422.3. The ultimate determination of employment or contracting, however, shall remain with the Developer and its contractors and subcontractors in their reasonable discretion.

5.6. Design
The Developer assumes the responsibility for the design and construction of, and shall

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Packet Pg. 208 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 26 let contracts for (or cause contracts to be let for) the Project. All additional costs incurred for any reason in constructing the Project shall be at the sole cost and expense of the Developer. The Developer assumes all obligation for ensuring conformity with all applicable Federal, State and local nondiscrimination, labor standards, prevailing wage rate requirements and competitive bidding requirements with respect to the Project.

5.7. Construction Schedule
The Developer shall commence and complete all development activities within the times established therefor in the Schedule of Performance.

5.8. Bodily Injury and Property Damage Insurance; Indemnity

5.8.1 Insurance
The Developer shall maintain or shall cause its contractor(s) to maintain until the completion of the Project as determined by the Agency pursuant to Section 7.2 insurance in accordance with the Agency’s uniform insurance requirements or as otherwise approved in writing by the Executive Director. The obligations set forth in this Section 5.8.1 shall remain in effect only until a Release of Construction Covenants has been furnished to the Developer as provided in Section 5.15.

5.8.2 Developer’s Indemnity
(a) To the full extent permitted by law, the Developer shall indemnify, defend and hold harmless the Agency, and any and all of its employees, officials and agents (“Indemnitees”) from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, compliance with applicable federal and state labor standards, regulatory proceedings, losses, expenses or cost of any kind, whether actual, alleged or threatened, including reasonable attorneys’ fees and costs, court costs, interest or defense costs, including expert witness fees), where the same arise out of, are a consequence of, or are in any attributable to, in whole or in part, the performance of this Agreement by the Developer, or by any individual or entity that the Developer shall bear the legal liability thereof including but not limited to officers, agents, employees or contractors of the Developer.
(b) Without affecting the rights of Indemnitees under any provisions of this Agreement, the Developer shall not be required to indemnify and hold harmless Indemnitees for liability attributable to the active negligence or willful misconduct of Indemnitees, provided such active negligence or willful misconduct is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where Indemnitees are shown to have been actively negligent and where Indemnitees’ active negligence accounts for only a percentage of the liability involved, the obligation of the Developer will be for that entire portion or percentage of liability not attributable to the active negligence of Indemnitees.

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Packet Pg. 209 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 27 (c) The Developer agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this section from each and every contractor or any other person or entity involved by, for, with or on behalf of the Developer in the in the performance of this Agreement. In the event the Developer fails to obtain such indemnity obligations from others as required here, the Developer agrees to be fully responsible according to the terms of this Section 5.8.2.
(d) Failure of Indemnitees to monitor compliance with these requirements imposes no additional obligations on Indemnitees and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend Indemnitees as set forth here is binding on the successors, assigns or heirs of the Developer and shall survive the termination of this Agreement or this Section 5.8.2.

5.9. Other Governmental Agency Permits and Environmental Compliance Before commencement of demolition activities or construction or other works of improvement upon the Site, the Developer shall, at its own expense, secure or cause to be secured any and all land use and other entitlements or approvals, if any, which may be required by any other governmental agency affected by such construction or work. The parties acknowledge and agree the California Environmental Quality Act, Public Resources Code § 21000, et seq., (“CEQA”) and National Environmental Policy Act of 1969, Public Law 91-190 as amended, 42 U.S.C. §§ 4321-4347 (“NEPA”) may become applicable to the Project as a result of processing the Developer’s entitlement requests. Pursuant to CEQA and NEPA, certain environmental documents may be required to be prepared. The Developer agrees to cooperate with the City in obtaining information to determine environmental impact associated with such entitlements. The Developer shall be responsible to pay all costs incurred by the City to prepare or cause to be prepared such environmental documents with respect to any land use entitlements affecting the Site and to comply with any required mitigation measures imposed pursuant thereto. Should the CEQA or NEPA reviews reveal environmental impacts from the Project which cannot be sufficiently mitigated, the Developer, the Agency shall then negotiate in good faith to restructure the Project in a manner that may reduce the environmental impacts of the projects.

5.10. Rights of Access
Prior to the issuance of a Release of Construction Covenants (as specified in Section

5.15), for purposes of assuring compliance with this Agreement, representatives of the Agency shall have the right of access to the Site, without charges or fees, at normal construction hours and upon at least forty-eight (48) hours advance notice during the period of construction for the purposes of this Agreement, including but not limited to, the inspection of the work being performed in constructing the Project so long as the Agency representatives comply with all safety rules. The Agency representatives shall, except in emergency situations, notify the Developer prior to exercising its rights pursuant to this Section 5.10.

5.11. Federal, State and Local Laws
The Developer shall comply with all applicable Governmental Regulations in the construction, use and operation of the Project, including all applicable federal, state and local

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Packet Pg. 210 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 28 statutes, ordinances, regulations and laws, including without limitation, all applicable federal, state, and local labor standards, City zoning and development standards, building, plumbing, mechanical and electrical codes, and all other provisions of the El Centro Municipal Code, and all applicable disabled and handicapped access requirements, including without limitation the Americans With Disabilities Act, 42 U.S.C. § 12101 , et seq., Government Code § 4450, et seq., and Government Code § 11135, et seq. The Developer shall carry out the Project in conformance with all applicable laws, including any and all applicable federal and state labor standards.

5.12. Nondiscrimination During Construction
The Developer, for itself and its successors and assigns, agrees that, in the construction of the Project provided for in this Agreement, the Developer will not discriminate against any employee or applicant for employment because of race, color, creed, religion, sex, sexual orientation, marital status, gender, gender identity, gender expression, physical disability, medical disability, medical condition, genetic information, military and veteran status, national origin or ancestry.

5.13. Liens and Stop Notices
The Developer shall not allow to be placed on the Site or any part thereof any lien or stop notice. If a claim of a lien or stop notice is given or recorded affecting the Project, the Developer shall within thirty (30) calendar days of such recording or service or within five (5) calendar days of the Agency’s demand, whichever last occurs:
(a) Pay and discharge the same; or
(b) Effect the release thereof by recording and delivering to the Agency a surety bond in sufficient form and amount, or otherwise; or
(c) Provide such other assurances which the Agency deems, in its sole discretion, to be satisfactory for the payment of such lien or bonded stop notice and for the full and continuous protection of the Agency from the effect of such lien or bonded stop notice.

5.14. Mortgage Deed of Trust, Sale and Lease-Back Financing; Rights of Holders

5.14.1 No Encumbrances Except Mortgages, Deeds of Trust Construction Mortgages, deeds of trust, sales and leases-back shall be permitted before completion of the Project with the Agency’s prior written approval, which shall not be unreasonably withheld or delayed, but only for the purpose of securing loans of funds to be used for financing the Project, and any other purposes necessary for the construction of the Project, and necessary and appropriate under this Agreement. The Developer shall notify the Agency in advance of any mortgage, deed of trust or sale and lease-back financing, if the Developer proposes to enter into the same before completion of the Project. The Developer shall not enter into any such conveyance for financing without the prior written approval of the Agency, which

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Packet Pg. 211 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 29 approval the Agency shall not unreasonably withhold provided that (i) such conveyance for financing is given to a responsible financial or lending institution, person or entity, and (ii) the Developer has commenced or is prepared to commence construction of the Project. The Agency’s approval shall not be required for any financing after the issuance of a Release of Construction Covenants for the Project as specified in Section 5.15.

5.14.2 Holder Not Obligated to Construct Improvements
The holder of any mortgage or deed of trust authorized by this Agreement shall not be obligated by the provisions of this Agreement to construct or complete the Project or to guarantee such construction or completion. Nothing in this Agreement shall be deemed to construe, permit or authorize any such holder to devote the Site to any uses or to construct any improvements thereon, other than those uses or improvements provided for or authorized by this Agreement.

5.14.3 Notice of Default to Mortgagee or Deed of Trust Holders, Right to Cure Whenever the Agency delivers any notice or demand to the Developer with respect to any breach or default by the Developer in completion of the Project and the Developer fails to cure or commence to cure to the Agency’s satisfaction within sixty (60) calendar days from the date of such notice, the Agency shall at the same time deliver to each holder of record of any mortgage or deed of trust authorized by this Agreement and granted by the Developer, a copy of such notice or demand. Except as otherwise agreed to in the Subordination Agreement with a senior lender, each such holder shall (insofar as the rights granted by the Agency are concerned) have the right, at its option, within sixty (60) calendar days after the receipt of the notice, to cure or remedy or commence to cure or remedy and diligently prosecute such cure or remedy to completion any such default and to add the cost thereof to the mortgage debt and the lien of its mortgage. Written notice of such holder’s intention to cure the Developer’s default shall be deemed to be commencement of cure. Nothing contained in this Agreement shall be deemed to permit or authorize such holder to undertake or continue the construction or completion of the Project (beyond the extent necessary to conserve or protect the improvements or construction already made) without first having expressly assumed the Developer’s obligations under this Agreement by written agreement satisfactory to the Agency. The holder, in that event, must agree to complete, in the manner provided in this Agreement, the Project to which the lien or title of such holder relates, and submit evidence satisfactory to the Agency that it has the qualifications and financial responsibility necessary to perform such obligations. Any such holder properly completing the Project shall be entitled, upon compliance with the requirements of this Agreement, to a Release of Construction Covenants as specified in Section

5.15. 5.14.4 Failure of Holder to Complete Project
Except as otherwise agreed to in a subordination agreement with a senior lender, in any case where, thirty (30) calendar days after the holder of any mortgage or deed of trust creating a lien or encumbrance upon the Site or any part thereof receives notice of default by the Developer in connection with the construction of the Project under this Agreement, and such holder has not exercised the option to construct as set forth in Section 5.15.2, or if it has exercised

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Packet Pg. 212 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 30 the option and has not proceeded diligently with construction, or to obtain title after institution of foreclosure or trustee’s sale proceedings, the Agency may purchase the mortgage or deed of trust by payment to the holder of the amount of the unpaid mortgage or deed of trust debt, including principal and interest and all other sums secured by the mortgage or deed of trust. If the ownership of the Site or any part thereof has vested in the holder by virtue of a deed in lieu of foreclosure, the Agency, if it so desires, shall be entitled to a conveyance from the holder to the Agency, upon payment to the holder of an amount equal to the sum of the following items through (v) less any income derived by the lender from operations conducted on the Site (the receipt of principal and interest payments in the ordinary course of business shall not constitute income for the purposes of this Section):
(a) The unpaid mortgage or deed of trust debt at the time title became vested in the holder (less all appropriate credits, including those resulting from collection and application of rentals and other income received during foreclosure proceedings); (b) All expenses with respect to foreclosure;
(c) The net expense, if any (exclusive of general overhead), incurred by the holder as a direct result of the subsequent management of the Project or part thereof; (d) The costs of any improvements made by such holder; and (e) An amount equivalent to the interest that would have accrued on the aggregate of such amounts had all such amounts become part of the mortgage or deed of trust debt and such debt had continued in existence to the date of payment by the Agency.

5.14.5. Right of the Agency to Cure Mortgage or Deed of Trust Default Except as otherwise agreed to in the Subordination Agreement with a senior lender, in the event of a mortgage or deed of trust default or breach by the Developer past any applicable notice and cure period and prior to the issuance by the Agency of the Release of Construction Covenants in accordance with Section 5.15, the Developer shall immediately deliver to the Agency a copy of any mortgage holder’s notice of default. If the holder of any mortgage or deed of trust has not exercised its option to construct, the Agency shall have the right, but not the obligation to cure the default. In such event, the Agency shall be entitled to reimbursement from the Developer of all proper costs and expenses incurred by the Agency in curing such default. Such costs and expenses incurred by the Agency shall accrue interest until paid by the Developer at the rate of ten percent (10%) per annum or the maximum allowable interest rate permitted by applicable law, whichever is lower. Such costs and expenses and any interest accrued thereon shall be secured as additional advances by and pursuant to the Deed of Trust. In furtherance of this Section 5.14.5, every subordination agreement entered into by and between the Agency and a senior lien holder shall include an acknowledgment and agreement by the senior lien holder to provide notice of the Developer’s default to the Agency.

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Packet Pg. 213 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 31 5.14.6. Right of the Agency to Satisfy Other Liens on the Site After Title Passes Subject to the rights of any senior lender, prior to the issuance by the Agency of the Release of Construction Covenants in accordance with Section 5.15 and after the Developer has had written notice and has failed after a reasonable time (but in any event not less than thirty (30) calendar days) to challenge, cure, adequately bond against, or satisfy any liens or encumbrances on the Site which are not otherwise permitted under this Agreement, the Agency shall have the right (but not the obligation) to satisfy any such liens or encumbrances. The costs and expenses of such cure shall accrue interest until paid by the Developer at the rate of ten percent (10%) per annum or the maximum allowable interest rate provided by applicable law, whichever is lower. Such costs and expenses and any interest accrued thereon shall be secured as additional advances by and pursuant to the Deed of Trust.

5.15. Release of Construction Covenants
Promptly after completion of the Affordable Units in conformity with this Agreement, the Agency shall furnish the Developer with a “Release of Construction Covenants” upon written request therefor by the Developer. The Agency shall not unreasonably withhold such Release of Construction Covenants. The Release of Construction Covenants shall be substantially in the form of the “Release of Construction Covenants” (Attachment No. 11). The Release of Construction Covenants shall be a conclusive determination of satisfactory completion of the Project and the Release of Construction Covenants shall so state. Except as provided in the Declaration of Affordability Restrictions, any party then owning or thereafter purchasing, leasing or otherwise acquiring any interest in the Site shall not (because of such ownership, purchase, lease or acquisition) incur any obligation or liability under this Agreement except for those continuing covenants as set forth in Section 6, et seq. If the Agency refuses or fails to furnish the Release of Construction Covenants, after written request from the Developer, the Agency shall, within thirty (30) calendar days of written request therefor, provide the Developer with a written statement of the reasons the Agency refused or failed to furnish the Release of Construction Covenants. The statement shall also contain the Agency’s opinion of the actions the Developer must take to obtain the Release of Construction Covenants. If the Agency shall have failed to provide such written statement within said thirty (30) calendar day period, and on the condition that the City has issued a certificate of occupancy or equivalent document for the Project, the Project shall thereafter be deemed approved by the Agency and the Agency shall promptly issue the Release of Construction Covenants. The Release of Construction Covenants shall not constitute evidence of compliance with or satisfaction of any obligation of the Developer to any holder of any mortgage, or any insurer of a mortgage securing money loaned to finance the Project, or any part thereof. The Release of Construction Covenants is not a notice of completion as referred to in California Civil Code § 3093.

6. COVENANTS AND RESTRICTIONS

6.1. Use Covenants
The Developer covenants and agrees for itself, its successors, its assigns, and every successor in interest to the Site or any part thereof, that upon the acquisition of the Site and during the development and operation of the Project thereafter, the Developer shall devote the

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Packet Pg. 214 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 32 Site solely to the uses specified in, and otherwise comply with the terms and conditions of, this Agreement. All uses conducted on the Site, including, without limitation, all activities undertaken by the Developer pursuant to this Agreement, shall conform to all applicable provisions of the El Centro Municipal Code.

6.2. Number of Affordable Units
Commencing upon and throughout the Affordability Period, the Developer covenants and agrees that the Affordable Units shall be restricted to occupancy by Qualified Lower Income Households, Qualified Very Low Income Households, and Qualified Extremely Low Income Households, as set forth herein. The Affordable Units shall be subject to the requirements herein throughout the Affordability Period.

6.2.1 Selection of Tenants
The Developer shall be responsible for the selection of tenants for the Affordable Units in compliance with all lawful and reasonable criteria and the procedures set forth in the Management Plan which shall be submitted to the Agency for approval pursuant to Section 6.6.

Pursuant to Community Redevelopment Law, preference shall be given to tenant applicants who have been displaced by redevelopment activities of the Agency in connection with this Project and in the implementation of the former Agency’s Redevelopment Plans. Notwithstanding the foregoing, Parties acknowledge that the Site was vacant when acquired by the Agency and no individuals have been displaced by redevelopment activities related thereto.

6.2.2 Household Income Requirements
In order to assure compliance with the rent and occupancy restrictions set forth in this Agreement and the Agency Regulatory Agreement, the Developer shall, prior to the initial leasing of the Unit and on an annual basis thereafter throughout the Affordability Period, obtain and cause to be submitted to the Agency, at the Developer’s expense, a verification of all household sources of income demonstrating that such household is a Qualified Lower Income Household, Qualified Very Low Income Household, or Qualified Extremely Low Income Household, as may be applicable, and meets the eligibility requirements established for the Unit.

Such income verification shall be submitted on such form as prepared and submitted in accordance with the Tax Credit Rules or such other form approved by the Agency.

6.2.3 Annual Reporting Requirement
In order to satisfy the monitoring requirements of the Agency and the Developer under § 33418 of the Community Redevelopment Law, as the same may be amended from time to time, the Developer shall, following the issuance of the Release of Construction Covenants, and on or before June 30 of each year, submit to the Agency a certification of compliance with the terms and conditions of this Agreement and the Agency Regulatory Agreement and such other reports as required thereby on forms prescribed by the Agency. Each annual report shall cover the immediately preceding fiscal year. The Developer further agrees to provide true and accurate copies of all reports, audits and compliance forms prepared in accordance with applicable Tax Credit Rules. Additionally, the Developer shall determine and submit a report to

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Packet Pg. 215 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 33 the Agency showing the proposed Affordable Rent and the rental amount for the Affordable Units for the preceding twelve (12) months with supporting documentation comparing the methods for calculating Affordable Rent as set forth in Section 1.1.

6.2.4 Relationship to Other Affordability Covenants
Satisfaction of any other affordability covenants applicable to the Project shall not constitute substitute satisfaction of the requirements set forth in the Agency Regulatory Agreement.

6.3. Lease Requirements
Prior to rental of any of the Affordable Units, the Developer shall submit a standard lease form, which shall comply with all requirements of this Agreement, to the Agency for approval.

The Agency shall reasonably approve such lease form upon finding that such lease form is consistent with this Agreement and contains all of the provisions required pursuant to the Community Redevelopment Law. The Developer shall enter into a written lease, in the form approved by the Agency, with each tenant/tenant household of the Site.

6.4. Capital Replacement Reserve
The Developer shall, or shall cause the Property Manager, if any, to, set aside the greater of (i) an amount equal to Two Hundred Fifty Dollars ($250.00) for the Units per year, or (ii) the minimum amount required by TCAC into a separate interest-bearing trust account (“Capital Replacement Reserve”). The amount required to be placed into the Capital Replacement Reserve shall increase at the rate determined by the Permanent Lender or Investor. Funds in the Capital Replacement Reserve shall be used for capital replacements to the Project fixtures and equipment which are normally capitalized under generally accepted accounting principles. Interest on funds in the Capital Replacement Reserve shall remain in the Capital Replacement Reserve. The nonavailability of funds in the Capital Replacement Reserve does not in any manner relieve the Developer of the obligation to undertake necessary capital repairs and improvements and to continue to maintain the Project in the manner prescribed herein. Not less than once per year, the Developer, at its expense, shall submit to the Agency an accounting for the Capital Replacement Reserve. The Agency approval is not required for withdrawals from the Capital Replacement Reserve in accordance with this Agreement.

6.5. Operating Reserve
The Developer shall not be required to set aside any Operating Reserves for this Project.

6.6. Long Term Management

6.6.1 Management Plan
Prior to the issuance of a Release of Construction Covenants by the Agency and the initial rental of the Affordable Units in accordance with this Agreement, the Developer shall submit for the reasonable approval of the Agency a detailed “Management Plan” which sets forth

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Packet Pg. 216 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 34 in detail the duties of the Property Manager, the tenant selection process and a security system, the procedures for determining Affordable Rent and for the collection of rent, occupancy limits and the procedures for monitoring of occupancy levels, the procedures for eviction of tenants, the rules and regulations of the Project and manner of enforcement, a standard lease form, and other matters relevant to the management of the Project. The Developer may from time to time submit amendments and modifications to the Management Plan for the reasonable approval of the Agency. The management of the Project shall be in compliance with the Management Plan that is approved by the Agency.

6.6.2 Property Manager
The parties acknowledge that the Agency is interested in the long-term management and operation of the Project and in the qualifications of any person or entity retained by the Developer for that purpose (“Property Manager”). The Developer may be the Property Manager for this Project. If the Developer, prior to the rental of the Units, contracts with a Property Manager, said contract shall be subject to the reasonable approval of the Agency.

During the term of the Affordability Period, such Property Manager may subcontract for property management services with an experienced and qualified property management entity (based upon the criteria set forth herein below) only upon prior written approval by the Agency which approval shall not be unreasonably withheld. During the Affordability Period, the Agency may from time to time review and evaluate the identity and performance of the Property Manager, including the Developer acting as Property Manager, of the Project as it deems appropriate in its reasonable judgment. If the Agency reasonably determines that the performance of the Property Manager is deficient based upon the standards and requirements set forth in this Agreement, the Agency shall provide notice to the Developer of such deficiencies, and the Developer shall use its best efforts to correct such deficiencies within sixty (60) calendar days. Upon default of the terms of this Agreement by the Property Manager, the Agency shall have the right to require the Developer to immediately remove and replace the Property Manager with another property manager or property management company who is reasonably acceptable to the Agency, and who has not less than five (5) years’ experience in property management, including experience managing multifamily residential developments of the size, quality and scope of the Project. If the entity removed is related to or affiliated with the Developer, the Agency may replace the Property Manager with another entity that is not related to or affiliated with the Developer.

6.6.3 Operation Budget
In addition, during the term of the Affordability Period, the Developer shall annually submit to the Agency for its reasonable approval a budget for the operation of the Project. The fee paid to Property Manager shall be shall not exceed the reasonable and customary fees paid to such property managers for similar rental properties in Imperial County.

Other fees and payments shall be consistent with prevailing market rates for the services performed and goods provided in consideration for such fees and payments. The Developer shall ensure that the reasonably foreseeable expenses of operating the Project do not materially exceed the budget which has been approved by the Agency. The Developer shall annually provide to the Agency a detailed accounting of operating expenses and shall make available its books and

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Packet Pg. 217 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 35 records to the Agency for inspection and copying, upon reasonable advance notice during its normal hours of business.

6.7. Agency Regulatory Agreement
The Developer shall execute, acknowledge, and deliver to the Agency the Agency Regulatory Agreement to be recorded with respect to the Site in the official records of Imperial County. The Agency Regulatory Agreement shall contain those portions of this Agreement relating to affordable housing requirements, and other provisions which are intended to survive the completion of construction of the Project.

6.9. Nondiscrimination Covenants
The Developer covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of § 12955 of the Government Code, as those bases are defined in §§ 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of § 12955, and § 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Site, or any part of it, nor shall the Developer or any person claiming under or through it, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the Site, including the Affordable Units, or any portion thereof. The foregoing covenants shall run with the land. Notwithstanding the foregoing paragraph, with respect to familial status, the foregoing paragraph shall not be construed to apply to housing for older persons, as defined in Government Code § 12955.9. With respect to familial status, nothing in the foregoing paragraph shall be construed to affect Civil Code §§ 51.2, 51.3,

51.4, 51.10, 51.11, and 799.5, relating to housing for senior citizens. Civil Code § 51(d) and § 1360 and Government Code § 12955(n), (o), and (p) shall apply to the foregoing paragraph. The Developer shall refrain from restricting the Affordable Units, on account of any basis listed in Government Code § 12955(a) or (d), as those bases are defined in Government Code §§ 12926(m), 12926.1, 12955 (p)(1), and 12955.2. All such deeds, leases, contracts or subcontracts shall contain or be subject to substantially the following nondiscrimination and nonsegregation clauses:
(a) In deeds: “The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in Government Code § 12955(a) or (d), as those bases are defined in Government Code §§ 12926(m), 12926.1, 12955 (p)(1), and 12955.2, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land.”
Notwithstanding the foregoing paragraph, with respect to familial status, the

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Packet Pg. 218 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 36 foregoing paragraph shall not be construed to apply to housing for older persons, as defined in § 12955.9 of the Government Code. With respect to familial status, nothing in the foregoing paragraph shall be construed to affect Civil Code §§

51.2, 51.3, 51.4, 51.10, 51.11, and 799.5, relating to housing for senior citizens.

Civil Code §§ 51(d) 1360, Government Code § 12955(n), (o), and (p) shall apply to the foregoing paragraph.
(b) In leases: “The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions:

That there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in Government Code § 12955(a) or (d), as those bases are defined in Government Code §§ 12926(m), 12926.1, 12955 (p)(1), and 12955.2, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased.”
Notwithstanding the foregoing paragraph, with respect to familial status, the foregoing paragraph shall not be construed to apply to housing for older persons, as defined in Government Code § 12955.9. With respect to familial status, nothing in the foregoing paragraph shall be construed to affect Civil Code §§

51.2, 51.3, 51.4, 51.10, 51.11, and 799.5, relating to housing for senior citizens.

Civil Code §§ 51(d) and 1360 and Government Code § 12955(n), (o), and (p) shall apply to the foregoing paragraph.
(c) In contracts: “There shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in Government Code § 12955(a) or (d), as those bases are defined in Government Code §§ 12926(m), 12926.1, 12955 (p)(1), and 12955.2, in connection with the performance of this contract nor shall the contracting party himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, sublessees, subtenants, contractors, subcontractors or vendees with respect to the premises.” Notwithstanding the foregoing paragraph, with respect to familial status, the foregoing paragraph shall not be construed lo apply to housing for older persons, as defined in § 12955.9 of the Government Code. With respect to familial status, nothing in the foregoing paragraph shall be construed to affect Civil Code §§

51.2, 51.3, 51.4, 51.10, 51.11, and 799.5, relating to housing for senior citizens.

Civil Code §§ 51(d) and 1360, and Government Code §12955(n), (o), and (p) shall apply to the foregoing paragraph.

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Packet Pg. 219 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 37 6.10. Effect of Violation of the Terms and Provisions of this Agreement After Completion of Construction
The Agency is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own right and for the purposes of protecting the interests of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided, without regard to whether the Agency has been, remains or is an owner of any land or interest therein in the Site. The Agency shall have the right, if this Agreement or any covenants in any agreement pursuant to this Agreement, including the Grant Deed and the Declaration of Affordability Restrictions, are breached, following notice and expiration of all applicable cure periods, to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which it or any other beneficiaries of this Agreement and such covenants may be entitled.

7. INDEMNITY AND INSURANCE

7.1. Developer’s Indemnity
To the full extent permitted by law, the Developer shall indemnify, defend and hold harmless the Agency, and any and all of its employees, officials and agents (“Indemnitees”) from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or cost of any kind, whether actual, alleged or threatened, including reasonable attorneys’ fees and costs, court costs, interest or defense costs, including expert witness fees), where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, to: (i) the Developer’s failure to comply with all applicable laws; (ii) defects in the design of the Project as to all or any portion of the Project developed or caused to be developed by the Developer, or (iii) any negligent performance or act or negligent failure to perform or act pursuant to this Agreement by the Developer, or by any individual or entity that the Developer shall bear the legal liability thereof including but not limited to officers, agents, employees or contractors of the Developer.

Without affecting the rights of Indemnitees under any provisions of this Agreement, the Developer shall not be required to indemnify and hold harmless Indemnitees for liability attributable to the active negligence or willful misconduct of Indemnitees, provided such active negligence or willful misconduct is determined by agreement between the parties or by the findings of a court of competent jurisdiction. Failure of Indemnitees to monitor compliance with these requirements imposes no additional obligations on Indemnitees and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend Indemnitees as set forth here is binding on the successors, assigns or heirs of the Developer and shall survive the termination of this Agreement. This indemnification provision supplements and in no way limits the scope of the indemnification set out elsewhere in this Agreement. The indemnity obligation of the Developer under this Section shall survive the expiration or termination, for any reason, of this Agreement.

7.2. Insurance
Prior to the commencement of any work of improvement upon the Site and without

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Packet Pg. 220 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 38 limiting the Developer’s indemnity obligations set forth in the Agreement, the Developer shall procure and maintain in full force during the term of this Agreement, the following forms of insurance coverage:
(a) If the Developer has employees, Workers’ Compensation insurance which complies with all applicable state laws and requirements.
(b) Comprehensive General Liability insurance with limits not less than One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) general aggregate for bodily injury and property damage, including coverages for contractual liability, personal injury, broad form property damage, products and completed operations. (c) Property insurance covering all real and personal (non-expendable) property leased or purchased in connection with the completion of the Project in a form appropriate for the nature of such property, covering all risks of loss, excluding earthquake and flood, for 100% of the replacement value, with deductible, if any, acceptable to the Agency, naming the Agency as loss payee.
(d) The Developer shall cause the general contractor to maintain insurance of the types and in at least the minimum amounts described in subsections a and b above, and shall require that such insurance shall meet all of the general requirements of subsections e, f, and g below. Unless waived by the Agency, liability insurance to be maintained by the general contractors pursuant to this subsection shall name as additional insured the Agency, and its officers, agents, employees and representatives.
(e) The required insurance shall be provided under an occurrence form, and the Developer shall maintain such coverage continuously throughout the term of this Agreement.

Should any of the required insurance be provided under a form of coverage that includes an annual aggregate limit or provides that claims investigation or legal defense costs be included in such annual aggregate limit, such annual aggregate limit shall be three times the occurrence limits specified above.
(f) Each insurance policy required by this Agreement shall contain the following clauses:
(1) “This insurance shall not be canceled, limited in scope or coverage, or nonrenewed until after thirty (30) calendar days’ prior written notice has been given to the City of El Centro as successor agency to the former Redevelopment Agency of the City of El Centro.”
(2) “It is agreed that the Agency is self-insured and any insurance maintained by them shall apply in excess of and not contribute with insurance provided by this policy.”
(3) “The Agency of the City of El Centro and its officers, agents, employees, representatives and volunteers are added as additional insureds as respects operations and activities of, or on behalf of the named insured, performed under contract with the Agency of the City of El Centro.”

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Packet Pg. 221 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 39 (g) The Developer shall deliver to the Agency insurance endorsements evidencing the existence of the insurance policies required by this Agreement, and including the applicable clauses referenced above. Also, the Agency has the right to demand, and to receive within a reasonable time period, copies of any insurance policies required under this Agreement.
(h) In addition to any other remedies the Agency may have if the Developer fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, the Agency may at its sole option, in the event the Developer has failed to commence curing such default within thirty (30) calendar days of notice or thereafter fails to diligently pursue such cure, declare the Developer to be in default, terminate this Agreement.

Exercise of any of the above remedies, however, is an alternative to other remedies the Agency may have and is not the exclusive remedy for the Developer’s failure to maintain insurance or secure appropriate endorsements. Nothing herein contained shall be construed as limiting in any way the extent to which the Developer may be held responsible for payments of damages to persons or property resulting from the Developer’s performance of the work covered under this Agreement.

8. DEFAULTS, REMEDIES AND TERMINATION

8.1. Defaults – General
Subject to the extensions of time set forth in Section 9.9, failure or delay by either party to perform, comply with or observe any of the conditions, provisions, terms, covenants or representations of this Agreement, including any of the Attachments hereto, constitutes a default under this Agreement. As provided herein below, the party who so fails or delays must immediately commence to cure, correct or remedy such failure or delay, and shall complete such cure, correction or remedy with diligence. The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the date of default. Except as required to protect against further damages, the injured party may not institute legal proceedings against the party in default until an “Event of Default” (as such term is hereinafter defined) has occurred. For purposes of this Agreement, an “Event of Default” for purposes of instituting legal proceedings by a non-defaulting party against the defaulting party shall mean a failure to satisfy, perform, comply with or observe any of the conditions, provisions, terms, covenants or representations contained in this Agreement, including any Attachment hereto, and such failure having continued uncured or without the defaulting party commencing to diligently cure for thirty (30) calendar days after notice thereof in writing is mailed by the injured party to the defaulting party; provided, however, that if such event of default cannot be cured within such thirty (30) calendar day period and the Developer has diligently commenced efforts to cure, the Developer shall have such reasonable time to diligently prosecute such cure to completion. If a different period or notice requirement is specified for any particular default under any other provision of this Agreement, including any of the Attachments hereto, the specific provision shall control.

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Packet Pg. 222 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 40 8.2. Legal Actions

8.2.1 Institution of Legal Actions
In addition to any other rights or remedies and subject to the restrictions otherwise set forth in this Agreement, either party may institute an action at law or equity to cure, correct or remedy any Event of Default, to recover damages as provided herein for any Event of Default, or to obtain any other remedy consistent with the purpose of this Agreement, subject to the nonrecourse nature of the loans after recordation of the Release of Construction Covenants. Such legal actions may be instituted in the Superior Court of the Imperial County, State of California.

8.2.2 Applicable Law
The laws of the State of California shall govern the interpretation and enforcement of this Agreement.

8.2.3 Acceptance of Service of Process
In the event that any legal action is commenced by the Developer against the Agency, service of process on the Agency shall be made by personal service upon the Agency’s Secretary, or in such other manner as may be provided by law. In the event that any legal action is commenced by the Agency against the Developer, service of process on the Developer shall be made by personal service upon any owner, general partner, officer or manager of the Developer or in such other manner as may be provided by law, whether made within or without the State of California.

8.3. Rights and Remedies are Cumulative
To the extent permitted by law and except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative, and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same time or different times, of any other rights or remedies for the same Event of Default or any other Event of Default by the other party.

8.4. Inaction Not a Waiver of Default
Any failures or delays by either party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any such rights or remedies, or deprive either such party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies.

8.5. Specific Performance
Upon an Event of Default, the non-defaulting party, at its option, may thereafter (but not before) commence an action seeking specific performance and/or other equitable relief to enforce the terms of this Agreement pertaining to such default.

17.b
Packet Pg. 223 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 41 8.6. Rights of Termination and Damages

8.6.1. Termination by Developer
Provided the Developer is not in default of any of the terms and conditions of this Agreement, then in the Event of Default by the Agency, the Developer shall have the right to terminate this Agreement by written notice to Agency in accordance with the provisions of Section 9.1. Upon termination by the Developer pursuant to this Section 8.6.1, the Agency may enter into a new agreement with respect to the development of the Site and, except as expressly provided to the contrary herein with respect to obligations that survive the termination of this Agreement, there shall be no further rights or obligations between the Agency and the Developer.

8.6.2. Termination by Agency
Provided the Agency is not in default of any of the terms and conditions of this Agreement, then upon an Event of Default by the Developer, the Agency shall have the right to terminate this Agreement by written notice to the Developer in accordance with the provisions of Section 9.1. In addition, the Agency may exercise its rights under the Agency Deed of Trust and/or apply to a court of competent jurisdiction for relief at law or in equity as may be appropriate and permissible.

8.7. Reentry and Revesting of Title in the Agency After the Conveyance and Prior to Completion of Construction
After Conveyance and Prior to Completion of Construction, in the Event of Default, the Agency has the additional right, at its election, to reenter and take possession of the Site (or any part thereof), with all improvements thereon, and terminate and revest in the Agency the estate (or part thereof). Such right to reenter, terminate and revest shall be subject to and be limited by and shall not defeat, render invalid or limit: (i) any mortgage or deed of trust or other security interest permitted by this Agreement; and (ii) the rights of the Tax Credit Investor, and (iii) any rights or interests provided in this Agreement for the protection of the holders of such mortgages or deeds of trust or other security interests. Upon issuance of a Release of Construction Covenants for the Project, the Agency’s right to reenter, terminate and revest shall terminate. The Agency shall, pursuant to its responsibilities under state law, use its reasonable efforts to resell the Site or portions thereof assoon and in such manner as the Agency shall find feasible and consistent with the objectives of such law to a qualified and responsible party or parties as determined by the Agency, who will assume the obligation of making or completing the Project, or such improvements in their stead as shall be satisfactory to the Agency and in accordance with the uses specified for such parcel or part thereof. Such party shall be required to pay for a pro rata share of the cost of construction, maintenance, and operation of the common area improvements upon the Site. Upon such resale of the Site or portions thereof, the net proceeds thereof after repayment of any mortgage or deed of trust encumbering such parcel which is permitted by this Agreement, shall be applied:

17.b
Packet Pg. 224 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 42 (a) First, to reimburse the Agency, all reasonable costs and expenses incurred by the Agency, excluding Agency staff costs, but specifically including (but not limited to) any expenditures by the Agency in connection with the recapture, management and resale of the Site or part thereof (but less any income derived by the Agency from the Site or part thereof in connection with such management); all taxes, assessments and water or sewer charges with respect to the Site or part thereof which the Developer has not paid; any payments made or necessary to be made to discharge any encumbrances or liens existing on the Site or part thereof at the time or revesting of title thereto in the Agency, or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults or acts of the Developer, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the Project or any part thereof on the Site; and any amounts otherwise owing the Agency, and in the event additional proceeds are thereafter available. (b) Second, to reimburse the Developer, its successor or transferee, up to the amount equal to the sum of (i) the costs incurred for the acquisition and development of the Site or part thereof and for the Project existing on such Site at the time of the reentry and possession, less (ii) any net gains or income withdrawn or made by the Developer from such Site or the improvements thereon. Any balance remaining after such reimbursements shall be retained by the Agency as its property.

8.8 Limitation on Damages
Without limiting the generality of the foregoing, the Parties shall not in any event be entitled to, and the Parties hereby waive, any right to seek consequential damages of any kind or nature from any other Party or Parties arising out of or in connection with this Agreement, and in connection with such waiver, the Parties are familiar with and hereby waive the provision of § 1542 of the California Civil Code which provides as follows:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH

THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS

OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE

WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY
AFFECTED HIS OR HIS SETTLEMENT WITH THE DEBTOR.”

9. GENERAL PROVISIONS

9.1. Notices, Demands and Communications Between the Parties Unless otherwise specified in this Agreement, it shall be sufficient service or giving of any notice, request, certificate, demand or other communication if the same is sent by (and all notices required to be given by mail will be given by) first-class registered or certified mail, postage prepaid, return receipt requested, or by private courier service which provides evidence of delivery. Unless a different address is given by any party as provided in this Section, all such communications will be addressed as follows:

17.b
Packet Pg. 225 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 43 To Developer: Chelsea Investment Corporation
6339 Paseo del Lago
Carlsbad, CA 92011
Attn: Cheri Hoffman
Copies to: Odu & Associates, PC
31805 Temecula Parkway #720
Temecula, CA 92592
Attn: Nkechi Odu, Esq.

To Agency: Successor Agency to the Redevelopment Agency of the City of El Centro
Office of the City Manager
Attn: Executive Director
1275 Main Street
El Centro, CA 92243
Copies to: Cole Huber LLP
Attn: Elizabeth Martyn, City Attorney for El Centro
2855 East Guasti Road, Suite 402
Ontario, CA 91761
Any Notice shall be deemed received immediately if delivered by hand and shall be deemed received on the third (3rd) calendar day from the date it is postmarked if delivered by registered or certified mail.

9.2. Subordination of Indebtedness
Any indebtedness of the Agency to the Developer (but not payments under any indemnity obligation herein or for a default hereunder)_created by this Agreement is subordinate to any pledge of tax increments to the bondholders of any tax increment bonds which have been or may hereafter be issued by the Agency. Subject to the consent of the Developer to the form and substance of such documents, which shall not be unreasonably withheld conditioned or delayed, the Parties hereby agree to execute any and all ancillary documents as may reasonably be requested by any bondholder or other purchaser of bonds, notes or other forms of indebtedness of the Agency entitled to receive the tax increment revenues for the repayment of any other indebtedness of the Agency for which the tax increment revenues have been or may hereafter be pledged.

9.3. Conflicts of Interest
No member, official or employee of the Agency shall have any direct or indirect interest in this Agreement, nor participate in any decision relating to the Agreement which is prohibited by law.

17.b
Packet Pg. 226 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 44 9.4. Warranty Against Payment of Consideration for Agreement The Developer warrants that it has not paid or given and will not pay or give, any third person any money or other consideration for obtaining this Agreement, other than normal costs of conducting business and costs of professional services such as project managers, architects, engineers, attorneys, and public relations consultants.

9.5. Nonliability of Agency Officials and Employees
No member, official, employee, representative or agent of the City of the Agency shall be personally liable to the Developer, or any successor in interest, in the event of any default or breach by the City or the Agency or for any amount which may become due to the Developer or successor, or on any obligation under the terms of this Agreement.

9.6. Approval by Agency and Developer
Approvals required of the Parties shall be given within the time set forth in the Schedule of Performance or, if no time is given, within a reasonable time. Wherever this Agreement requires the Agency or the Developer to approve any contract, document, plan, proposal, specification, drawing or other matter, such approval shall not be unreasonably withheld or delayed. In the event that a Party declines to approve any contract, document, plan, proposal, specification, drawing or other matter, such denial shall be in writing and shall include the reasons for such denial. The Party considering the request for such approval shall use commercially reasonable efforts to respond to such request for approval within fifteen (15) calendar days of receipt unless expressly provided to the contrary herein.

9.7. Plans and Data
If this Agreement is terminated prior to the Closing, the Agency shall have the right but not the obligation to purchase from the Developer all plans, drawings, studies and related documents concerning the Project within the Developer’s possession and control, without representation or warranty. The purchase price for all or any part of such materials shall be their cost to the Developer.

9.8. Taxes and Assessments
The Developer shall pay prior to delinquency all ad valorem real estate taxes and assessments on the Site during the Developer’s ownership thereof, subject to the Developer’s right to contest in good faith any such taxes. The Developer shall remove or have removed any levy or attachment made on the Site or any part thereof, or assures the satisfaction thereof within a reasonable time.

9.9. Force Majeure
In addition to specific provisions of this Agreement, performance by any party hereunder shall not be deemed to be in default where delays or defaults are due to war; insurrection; strikes; lock-outs; riots; floods; earthquakes; fires; casualties; acts of God or any other deity; acts

17.b
Packet Pg. 227 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 45 of the public enemy; epidemics; pandemics; quarantine restrictions; freight embargoes; lack of transportation; governmental restrictions or priority; litigation including litigation challenging the validity of this transaction or any element thereof including the acquisition of the Site, or any portion thereof, unusually severe weather; inability to secure necessary labor, materials or tools; delays of any contractor, subcontractor, or suppliers; acts of the other party; acts or failure to act of the City or any other public or governmental agency or entity (other than that acts or failure to act of the Agency shall not excuse performance by the Agency); or any other causes beyond the control or without the fault of the party claiming an extension of time to perform or relief from default, including without limitation the allocation of the Agency revenues to the State of California by a legislative act to fund deficits in the state budget. An extension of time for any such cause shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause, if notice by the party claiming such extension is sent to the other party within thirty (30) calendar days of the commencement of the cause. Times of performance under this Agreement shall be deemed extended by the term of such Force Majeure event which shall be evidenced by a written amendment to this Agreement between the Agency and the Developer. That notwithstanding, if said prevention or delay extends for one (1) year, any party, by notice in writing to the other, may terminate this Agreement.

9.10. Applicable Law; Interpretation
The laws of the State of California shall govern the interpretation and enforcement of this Agreement. This Agreement shall be construed as a whole and in accordance with its fair meaning and as though both of the parties participated equally in its drafting. Captions and organizations are for convenience only and shall not be used in construing meaning.

9.11. Inspection of Books and Records, Reports
The Agency or its designee has the right at all reasonable times, and upon reasonable advance notice of not less than forty-eight (48) hours, to inspect the books and records and other related documents of the Developer pertaining to the satisfaction of their obligations hereunder as reasonably necessary for purposes of enforcing the provisions of this Agreement. Such books, records and related documents shall be maintained by the Developer at locations as agreed by the parties. Throughout the term of this Agreement, the Developer shall submit to the Agency reasonable written progress reports as and when reasonably requested by the Agency on all matters pertaining to the Project of the Site.

9.12. Administration
This Agreement shall be administered by the Executive Director following approval of this Agreement by the Agency. Whenever a reference is made in this Agreement to an action, finding or approval to be undertaken by the Agency, the Executive Director is authorized to act on behalf of the Agency unless specifically provided otherwise or the context should require otherwise. The Executive Director shall have the Agency to issue interpretations, waive provisions and enter into amendments of this Agreement on behalf of the Agency so long as such actions do not substantially change the uses or development permitted on the Site, or add to the costs of the Agency as specified herein or as agreed to by the Agency Board.

Notwithstanding the foregoing, the Executive Director may in his/her sole and absolute

17.b
Packet Pg. 228 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 46 discretion refer any matter to the Agency Board for action, direction or approval.

9.13. Mutual Cooperation
Each party agrees to cooperate with the other in this transaction and, in that regard, to sign any and all documents which may be reasonably necessary, helpful or appropriate to carry out the purposes and intent of this Agreement. To the extent that any lender to, or equity investor in the Project requires modifications to this Agreement or any attachment hereto, the Agency agrees to make such modification within a reasonable time on the condition that such modification does not materially change the rights and obligations of the Parties as set forth herein.

9.14. Ground Breaking and Grand Openings
To insure proper protocol and recognition of the Agency Board, the Developer shall cooperate with the Agency staff in the organization of any Project-related ground breaking, grand openings or any other such inaugural events/ceremonies sponsored by the Developer and celebrating the development which is the subject of this Agreement providing Agency staff with at least two (2) weeks’ prior notice of any such event.

9.15. Independent Contractor
The parties agree that the Developer, in the performance of this Agreement shall act as and be an independent contractor and shall not act in the capacity of an agent, employee or partner of the Agency.

10. ENTIRE AGREEMENT, WAIVERS AND AMENDMENTS
This Agreement includes forty-six (46) pages and Attachment Nos. 1 through 13 which constitute the entire understanding and agreement of the Parties. Two (2) duplicate originals of this Agreement shall be executed each of which shall be deemed to be an original. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterpart shall constitute one and the same instrument.

Except as otherwise provided herein, this Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the parties with respect to all or any part of the subject matter hereof. All waivers of the provisions of this Agreement must be in writing and signed by the appropriate authorities of the Agency or the Developer, and all amendments hereto must be in writing and signed by the appropriate authorities of the Agency and the Developer. [SIGNATURES ON FOLLOWING PAGES.]

17.b
Packet Pg. 229 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 47 IN WITNESS WHEREOF, the Agency and the Developer have signed this Agreement as of the date set opposite their signatures.
“DEVELOPER”

CHELSEA INVESTMENT CORPORATION,
a California corporation
By:_________________________________
Name: Cheri Hoffman
Title: President
“AGENCY”
By: ________________________________
Executive Director
Attested to:

By:_________________________________
Agency Secretary
Approved as to form:

By:_________________________________
Agency General Counsel

17.b
Packet Pg. 230 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) ATTACHMENT NO. 1

SITE PLAN

17.b
Packet Pg. 231 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement)

17.b
Packet Pg. 232 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) X

W W W W W

G G G G G

G G G G

G G G G G G G G

G G G G
W W W

SS SS SS SS SS SS SS SS
SS
SS
SS
SS
SS
SS
SS
SS
SS
SS
SS
SS
SS

T T T T T T T T T T T T T T T

T T T T T T T T T T T T T T SS/FM SS/FM SS/FM SS/FM SS/FM SS/FM SS/FM SS/FM SS/FM SS/FM SS/FM SS/FM W
W
W
W

W SD SD
(953)
(953)
(954)
(954)
(954)
(955)
(955)
(954)
(954)
(954)
(955)
(955)
(954)
(955)
(955)
(954)
(954)
(955)
(955)
(953)
(954)
X

W W W W W

G G G G G

G G G G

G G G G G G G G

G G G G
W W W

SS SS SS SS SS SS SS SS
SS
SS
SS
SS
SS
SS
SS
SS
SS
SS
SS
SS
SS

T T T T T T T T T T T T T T T

T T T T T T T T T T T T T T SS/FM SS/FM SS/FM SS/FM SS/FM SS/FM SS/FM SS/FM SS/FM SS/FM SS/FM SS/FM W
W
W
W

W SD SD
(953)
(953)
(954)
(954)
(954)
(955)
(955)
(954)
(954)
(954)
(955)
(955)
(954)
(955)
(955)
(954)
(954)
(955)
(955)
(953)
(954)
1 CURRENT ZONING INFORMATION:

EXISTING: R3 (MULTI-FAMILY RESIDENTIAL)
OWNER INFORMATION:

CITY OF EL CENTRO
1275 WEST MAIN STREET
EL CENTRO, CA. 92243
ASSESOR'S PARCEL NO.:
064-470-103-000

OF SHEETS
SHEET NO.
1 CIVIL ENGINEERING - LAND SURVEYING - CONSTRUCTION MANAGEMENT 2415 IMPERIAL BUSINESS PARK DRIVE. SUITE B.,
IMPERIAL CA. 92251
TEL. (760) 545-0162 FAX (760) 545-0163
GENERAL NOTES:

1. TOTAL PROPOSED MULTI-FAMILY RESIDENTIAL LOTS: 2

2. TOTAL PARCEL BOUNDARY: ±5.91 ACRES
PARCEL 1: 3.08 ACRES
PARCEL 2: 2.45 ACRES
PARCEL A (FOR ROAD AND UTILITY PURPOSES): 0.38 ACRES

3. SCHOOL: EL CENTRO UNIFIED SCHOOL DISTRICT

4. SEWER: CITY OF EL CENTRO
2255 NORTH La BRUCHERIE, EL CENTRO, CA. 92243
PHONE: 760-337-4562

5. WATER: CITY OF EL CENTRO
1101 WEST DANENBERG DRIVE, EL CENTRO, CA. 92243
PHONE: 760-337-4575

6. ELECTRIC: IMPERIAL IRRIGATION DISTRICT
1284 MAIN STREET, EL CENTRO, CA. 92243
PHONE: 760-339-9225

7. GAS: SOUTHERN CALIFORNIA GAS COMPANY
970 NORTH 4TH STREET, EL CENTRO, CA. 92243
PHONE: 760-352-5812

8. TELEPHONE: SBC PACIFIC BELL
PHONE: 1-800-750-2355

9. CABLE: SPECTRUM CABLE
313 N. 8th STREET, EL CENTRO, CA. 92243
PHONE: 877-842-2493

10. FIRE DISTRICT: EL CENTRO FIRE DEPARTMENT:
1910 N. WATERMAN AVE, EL CENTRO, CA.

PHONE: 760-337-4530

12. TITLE COMPANY: FIRST AMERICAN TITLE COMPANY
1250 CORONA POINTE COURT, SUITE 200
CORONA, CA. 92879
ORDER NO.: NHSC-6542921 (DG)
PROPERTY_LINE
RW_EX
FENCE
EXIST. ASPHALT PAVEMENT
EXIST. ELEVATION

EASEMENT
X
EXIST. CONCRETE
LEGEND
EXIST. SIGN
EXIST. FIRE HYDRANT (F.H.)
W EXIST. WATER LINE
S EXIST. SANITARY SEWER LINE
EXIST. TREE, OR PALM

FOUND SURVEY MONUMENT
EXIST. VALVE
EXIST. SANITARY MANHOLE
XXXX
CONSULTING Dynamic ENGINEERS

CIVIL SITE PLAN
450.02'
PROPOSED ZONING INFORMATION:

PROPOSED: R3 (MULTI-FAMILY RESIDENTIAL)
ENGINEER/SURVEYOR:

DYNAMIC CONSULTING ENGINEERS, INC.
2415 IMPERIAL BUSINESS PARK DRIVE, SUITE B
IMPERIAL, CA. 92251
760-545-0162
GENERAL PLAN AND LAND USE DESIGNATION:

R3 - MULTI-FAMILY RESIDENTIAL
PROPOSED RIGHT OF WAY DEDICATION (PARCEL A):
1 PORTION OF WATERMAN AVENUE TO BE OFFER TO THE CITY

OF EL CENTRO FOR ROAD RIGHT OF WAY AND UTILITIES
PURPOSES.

LINCOLN AVENUE WATERMAN AVENUE

VICINITY MAP LA BRUCHERIE ROAD

VILLA AVENUE

PICO AVENUE

EL DORADO AVE

BRADSHAW ROAD
CRUICKSHANK DRIVE HIGHWAY 86 HIGHWAY 86
BENCH MARK:

THE BENCHMARK USED HEREON IS THE COUNTY OF IMPERIAL BENCHMARK "N-90" BEING A BRASS CAP RESET IN 1995 AT THE SOUTHWEST CORNER OF

THE HEADGATE FOR THE UNDERGROUND DAHLIA CANAL ON THE EAST SIDE OF LA BRUCHERIE AND THE SOUTH SIDE OF THE RAILROAD TRACKS.

ELEVATION = 964.32' (NAVD 88 +1000')
BASIS OF BEARINGS:

THE BASIS OF BEARINGS FOR THIS SURVEY IS S89°53'57"E WHICH IS THE BEARING OF SOUTH LINES OF PARCEL 4 OF PARCEL MAP NO. 43-350-29 ACCORDING TO THE PARCEL MAP RECORDED IN BOOK 12, PAGE 6 OF PARCEL MAPS IN THE OFFICE OF THE COUNTY IMPERIAL COUNTY RECORDER.

APPLICANT INFORMATION:

CHELSEA INVESTMENT CORPORATION
6339 PASEO DEL LARGO
CARLSBAD, CA. 92011

LINCOLN AVENUE
S89°13'25"W 450.02' S00°36'38"E 535.28' N00°36'38"W 485.52' S89°13'25"W
450.02'

32.00'

29.66'

21.0' 21.0' WATERMAN AVENUE
APN 064-470-106 APN 064-470-071 1620 N. IMPERIAL AVE
APN 064-470-061
APN 064-493-009 1400 N. IMPERIAL AVENUE
1495 N. WATERMAN AVE APN 064-470-048 GIO'S MOBILE HOME ESTATES APN 064-470-070 FIRST RESPONDERS PARK

62.00'

62.00' 82.00' 82.00' EX. S/W R/W R/W R/W R/W

R/W R/W R/W

R/W R/W
R/W EX. SIDEWALK
EX. S/W EX. S/W
EX. S/W
EX. RAMP
EX. S/W EX. C&G
EX. C&G
EX. C&G
EX. GUT EX. FH EX. UTBX EX. ECLP EX. WTMT EX. FH
EX. ECLP
EX. C/G
EX. UTBX

TO BE RELOCATED
RIM:954.49' INV:950.03'
RIM:953.65' INV:947.57'
RIM:953.37' INV:947.08' N00°36'38"W 534.92' PARCEL
A ±0.38 ACRES 236.69' 298.59' 238.21' 296.71'
N89°25'01"E 450.02'
N89°10'39"E 482.02'
PARCEL 2
±2.45 ACRES
PARCEL 1
±3.08 ACRES 24.9' 31.0'

35.0'

15.0'

15.0' 5.0' 5.0'

5.0'

20.0'

22.6'

22.6' 32.2'

20.0'

35.0' 34.0' 30.0' 10' 10' 10' 10'
10'
13'
13'

PROPOSED TWO WAY
GATE

PROPOSED VEHICULAR

GATE PROPOSED VEHICULAR GATE

PROPOSED BLOCK

FENCE PROPOSED BLOCK WALL PROPOSED BLOCK FENCE

PROJECT SITE

ABBREVIATIONS

PROPOSED BLOCK
WALL

PROPOSED TRASH

ENCLOSURE PROPOSED TRASH ENCLOSURE
PROPOSED 5' STEEL
FENCING PROPOSED 5' STEEL FENCING

PROPOSED DRIVEWAY

PROPOSED

DRIVEWAY

PROPOSED SIDEWALK PROPOSED C&G

PROPOSED
RAMP
(FL952.98')
(FL953.19')
(FL953.40')
(FL953.40')
(FL953.19')
(FL952.64')
(FL953.10')
(FL952.85')
(FL953.60')
(FL954.16')
(FL954.24')
(FL954.20')
(FL954.62')

PROPOSED USPS

PARKING SPACE

PROPOSED

MAILBOX

PROPOSED

MAILBOX

PROPOSED ADA

PARKING PROPOSED ADA PARKING PROPOSED ADA PARKING

PROPOSED ADA

PARKING

PROPOSED FIRE

HYDRANT

PROPOSED FIRE

HYDRANT

PROPOSED FIRE

HYDRANT

PROPOSED FIRE

HYDRANT PROPOSED FIRE HYDRANT PROPOSED FIRE HYDRANT

PROPOSED SEWER LINE

PROPOSED SEWER LINE PROPOSED SEWER LINE PROPOSED SEWER LINE PROPOSED WATER LINE PROPOSED WATER LINE

PROPOSED WATER LINE

PROPOSED WATER LINE
SETBACKS:

FRONT: 20'
SIDE YARD: 5'
REAR: 25'
OPPOSITE INTERIOR SIDE: 10'
SEPARATION BETWEEN BUILDINGS: 6'
PARKING SPACES:

PARKING SPACES: 213
ADA VAN ACCESSIBLE: 2
ADA PARKING SPACES: 8
POST OFFICE PARKING SPACE: 1
TOTAL PARKING SPACES: 224
CARPORTS (168 TOTAL)

17.b
Packet Pg. 233 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) SCALE 1": 100'
EXHIBIT "B"
PAGE 1 OF 1
PARCEL 3
S89°13'25"W 429.02' S00°36'38"E 535.28' N00°36'38"W 485.52' N45°41'37"W

29.66'
N89°25'01"E 450.02'
N89°10'39"E 482.02'
PARCEL 2
±2.45 ACRES
PARCEL 1
±3.08 ACRES
N26°51'57"W

54.98' N00°36'38"W 217.21' N00°36'38"W 296.71' S00°36'38"E 298.59' S00°36'38"E 236.69' N89°10'39"E 450.02'

30.0'

LINCOLN AVENUE WATERMAN AVENUE R/W R/W R/W R/W R/W R/WR/W R/W

R/W R/W

PARCEL A
±0.38 ACRES

94.0' 82.0'
PM 8-12
S89°13'25"W

28.68'
LOT
FM 12-67 PARCEL C
PM 8-12

17.b
Packet Pg. 234 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement)

ATTACHMENT NO
.2

SITE LEGAL DESCRIPTION
(DRAFT)
(ATTACHED)

17.b
Packet Pg. 235 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) BEING A PORTION OF PARCEL 3 OF MAP ON FILE IN BOOK 8, PAGE 12 OF PARCEL MAPS, WITHIN TRACT 209, TOWNSHIP 15 SOUTH, RANGE 13 AND 14 EAST, SAN BERNARDINO MERIDIAN, IN

THE CITY OF EL CENTRO, COUNTY OF IMPERIAL, STATE OF CALIFORNIA, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

BEGINNING (POB) AT THE SOUTHEAST CORNER OF SAID PARCEL 3; THENCE ALONG THE SOUTH LINE OF SAID PARCEL 3 SOUTH 89°13'25" WEST A DISTANCE OF 429.02 FEET;
THENCE NORTH 45°41'37" WEST A DISTANCE OF 29.66 FEET ;
THENCE NORTH 00°36'38" WEST A DISTANCE OF 217.21 FEET TO THE TRUE POINT OF BEGINNING NO. 1 (TPOB NO.1);
THENCE CONTINUING NORTH 00°36'38" WEST A DISTANCE OF 296.71 FEET; THENCE NORTH 89°10'39" EAST A DISTANCE OF 450.02 FEET TO THE POINT OF INTERSECTION WITH THE EAST LINE OF SAID PARCEL 3 OF PARCEL MAP BOOK 8, PAGE 12, SAID POINT BEING 535.28 FEET NORTHERLY OF THE SOUTHEAST CORNER OF SAID PARCEL 3; THENCE ALONG SAID EAST LINE OF PARCEL 3 SOUTH 00°36'38" EAST A DISTANCE OF 298.59 FEET;
THENCE DEPARTING FROM SAID EAST LINE SOUTH 89°25'01" WEST A DISTANCE OF 450.02 FEET TO THE TRUE POINT OF BEGINNING NO. 1 (TPOB NO.1);
CONTAINS 3.08 ACRES OF LAND, MORE OR LESS.

THIS LEGAL DESCRIPTION ENTITLED "EXHIBIT A" AND THE PLAT ATTACHED HERETO DESIGNATED EXHIBIT "B" WERE PREPARED BY ME OR UNDER MY DIRECT SUPERVISION. __________ _______________ DAVID BELTRAN, PLS 8482 LICENSE EXP. 12/31/2022
PAGE 1 OF 3
EXHIBIT "A"
DATE:_______________ PRELIMINARY 05-19-2022
PARCEL 1

LEGAL DESCRIPTION

17.b
Packet Pg. 236 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) ATTACHMENT NO. 3

PROJECT DESCRIPTION
Jacaranda Gardens (“Project”) is the proposed new development of a 96-unit affordable housing community serving low-income families earning 30% to 60% of Area Median Income (AMI). The Project land area is approximately 3.08-acres in size and the Project will include five, three-story residential buildings and one, single-story community building. The total residential rental square footage is approximately 72,984 square feet (SF) and the community building will be approximately 1,425 SF. The Project will consist of twenty-four (24), 590 SF one-bedroom, one bath units; forty-eight (48), 757 SF two-bedroom, one-bath units; and twenty-four (24), 937 SF three-bedroom, two-bath units for a total of 192 bedrooms and 120 bathrooms. Fifteen percent of the units will be fully accessible to persons with mobility impairments and ten percent of the units will be built for those with sensory impairments. The community building includes a manager’s office, bathroom, laundry facility and kitchen.

Approximately 155 parking spaces will be provided at the Project, 14 of which will be accessible ADA spaces. Additionally, 48 secure bicycle parking spots in a completely enclosed area will be provided to residents only.

The Project will be Type VA, walk-up, garden-style apartments with NEPA 13R sprinklers.

Additionally, the Project will be 100% electric with no connections to natural gas infrastructure, includes 450 solar PV panels and will be LEED Gold Certified. No elevators will be provided at the project. Site features include a tot lot with shade structure, bike racks, BBQ, and seating area with tables and a shade structure.

17.b
Packet Pg. 237 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) ATTACHMENT NO. 4

SCHEDULE OF PERFORMANCE
1 CEQA Clearance (both phases) May 13, 2021
2 Award of Affordable Housing Sustainable
Communities (AHSC)
January 2022
3 Applications for Tax Credits and Tax-Exempt
Bonds – 2nd Round
June 30, 2022 [Phase 1]
4 Design Review Completion June 30, 2022 [Phase 1]
5 Closing of Construction Financing February 2023
6 Opening of Escrow Within thirty (30) days of receipt of awards of Tax Credits and Tax-Exempt Bonds
7 Planning Commission Approval: No later than thirty (30) days prior to the scheduled Closing
8 Outside Closing Date December 31, 2023 [Phase 1]
9 Grading Plans Submitted: 30 days after awards of Tax Credits and Tax-Exempt Bonds
10 Building Plans Submitted 30 days after awards of Tax Credits and Tax-Exempt Bonds
11 Commencement of Construction Within thirty (30) days of Closing 12 Completion of Construction Within twelve (12) months after commencement of construction

17.b
Packet Pg. 238 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 52 ATTACHMENT NO. 5 PROJECT BUDGET

17.b
Packet Pg. 239 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement)

PROJECT SUMMARY
Lincoln, El Centro CA 4%
Revision Date: 96 units
No City Deferral
Closing Completion Conversion 8,609
$12,679/unit 1,217,143 Equity Pay In 10% 0% 87% 3%
$0/unit 0 $ 0.8600
1,217,143 State Tax Credit Price CERTIFICATE $ 0.8500
$ 0.8600

4.00%
$3,646/unit 350,000
$0/unit 0 96.99%
$31,318/unit 3,006,562
0 stalls $0/unit 0 3 Yr State Credits CERTIFICATE
$176.86/gsf $161,609/unit 15,514,421 194,302

5.1% $9,829/unit 943,549 10.46%
$28,896/unit 2,774,035 13.05%

5.0% $11,765/unit 1,129,428 21.00%
23,717,995 Balance of Capital Acct in Yr 10 $ (3,461,348) AMI Studio 1BR 2BR 3BR Totals
4,750 Sq. Ft. 590 757 937 72,984
$8,198/unit 787,000 500 UA $49.00 $66.00 $84.00
$18,895/unit 1,813,925 5.00% 0
$1,927/unit 185,000 1.15 60% 0 11 18 11 40
$2,092/unit 200,854 35 50% 0 9 16 9 34
$21,658/unit 2,079,132 4.90% 45% 0 0 0 0 0
$43,676/unit 4,192,873 3.75% 40% 0 0 0 0 0
$2,834/unit 272,047 5,176,263 35% 0 0 0 0 0
Contingency 5.0% $3,556/unit 341,401 12,833,737 30% 0 4 13 4 21 9,872,232 10,625,137 Mgr. 0 0 1 0 1
28,635,137 Totals 0 24 48 24 96
34,807,370 25% 50% 25%
Common 1,400 Net SF 74,384 Cost psf $ 318.86
Cash Developer Fee 2,200,000
Tax Credit Considerations Eff Loss 15% Gross SF 87,511 Cost psf $ 258.12 yes
Federal LIHTC Equity 40% 13,942,704 no
State LIHTC Equity 6% 2,045,564 50% Test 18,010,000 53.98% 0% 162,070 N/A
15% 5,176,263 0.00%
0% (0) Family
4% 1,300,000 None
3% 1,217,143 TCAC Opportunity Map 2021 Low
30% 10,270,753
2% 692,873 0 0 45,035
0% 0 0 1,621,245
100% 34,807,370 0 0 1,621,245
6/1/21
3rd Yr Credit Delivery 12/1/21
Financing Sources:
15,469
Conversion/Stabilizatiion
8609
City:

MSA:
4 Person 50% AMI:

Site (acres):

Construction Type:

No. of Stories:

Parking Type:

No. of Stalls:

Tax- Exempt Bonds - Construction/Perm
Debt
Tax- Exempt Bonds - Construction
Perm Loan Amort
Total Development Sources
1st Yr Credit Delivery
Tax Credit Allocation
Hard Costs
Design Assist

AHSC STI
Sitework
Owner Contingency
Interest Rate - Permanent Loan
DCR
$12,679/unit
$411,893/acre
CA 9% Site Amenity Score
Housing Set Aside
Prevailing Wage (State, Federal, Both):
16,715,585
2,481,231
IRR - Quarterly Effective (Unloaded)
IRR - Quarterly Effective (Loaded)
$362,577/unit
$247,062/unit
Closing
Lease Up Complete
Development Impact and Permit Fees
Developer Fee
2nd Yr Credit Delivery
Soft Costs
Taxable Tail
Total Construction Loan
Federal Tax Credit Price
Solar Tax Credit Price
LIHTC Credit Rate
LP Interest
10 Yr Federal Tax Credits
Vertical Solar Credits
CA 9% Tiebreaker
$102,836/unit
Construction Complete
Extraorindary Cond:

Impact Fees per Unit:

PROJECT UNIT & INCOME MIX

PROJECT TIMING
7/1/19
12/1/19
12/1/20
3/1/21
Opr. Exp./Unit/Year
Replacement Reserves/Unit/Year
Vacancy Rate
GAP
Subtotal Hard Costs
DDA/QCT Boost
Rural Designation
Tax Rate

PRELIM DEVELOPMENT PROGRAMMING SUMMARY
El Centro
El Centro
$32,400

2.955
Development Costs
Acquisition
Land
Basis Eligible Acquisition Cost
Subtotal Acquisition

FINANCING ASSUMPTIONS
Equity

SOURCES AND USES SUMMARY
Solar Equity
Perm Loan (Tranche A)
Deferred Developer Fee
Land Note

AHSC AHD
Developer Fee contribution
Misc (Acctg, Marketing, Reports, Studies, Etc)
Subtotal Soft Costs
Total Development Costs
Sources
A&E
Financing Fees and Interest
Interest Rate - Construction Loan
Legal Fees
GC Contingecy
Overhead, Profit, General Conditions
Reserves
Parking

17.b
Packet Pg. 240 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Construction Stabilization Conversion 8609 Total
$ 14,369,973.00 Pre-Dev Close Quarter 1 Quarter 2 Quarter 3 Quarter 4 Subtotal 6 months 10% 25% 30% 35%

SOURCES OF FUNDS
1 0 1,394,270 - - - - 1,394,270 - 12,130,152 418,281 13,942,704 2 204,556 - - - - 204,556 - 1,779,641 61,367 2,045,564
3 - - - - - - - 162,070 - 162,070
5 644,592 2,513,996 2,446,633 6,032,615 7,278,709 8,615,062 27,531,607 1,103,530 (28,635,137) - - 6 - - - - - - - 5,176,263 - 5,176,263
8 - - - - - - - 1,300,000 - 1,300,000
9 - - - - - - - -
10 - - - - (0) - (0)
11 - - - - 692,873 - 692,873
12 - - - 10,270,753 - 10,270,753
13 1,217,143 1,217,143 - 1,217,143
22 Total Sources of Funds 644,592 5,329,966 2,446,633 6,032,615 7,278,709 8,615,062 30,347,577 1,103,530 2,876,615 479,648 34,807,370 23 24
25 USES OF FUNDS
26 ACQUISITION
27 Land Cost/Extension 1,217,143 - - - - 1,217,143 - - - 1,217,143 33 Other: Closing Costs 10,000 - - - - 10,000 - - - 10,000 34 Total Land / Acquitisiton 1,227,143 - - - - 1,227,143 - - - 1,227,143 35 48 RELOCATION
49 Relocation Admin - - - - - - - -
50 Permanent Relocation Expense - - - - - - - - - -
51 Total Relocation - - - - - - - - - - -
52 53 NEW CONSTRUCTION
54 Design Assist 350,000 - - - - 350,000 - - - 350,000
55 AHSC STI $ - - - - - - - - - - -
56 Solar - 65,554 163,885 196,662 229,439 655,541 - - - 655,541 57 On/Off Site Work - 300,656 751,641 901,969 1,052,297 3,006,562 - - - 3,006,562 59 Vertical - 1,485,888 3,714,720 4,457,664 5,200,608 14,858,880 - - - 14,858,880 60 GC Contingency 17,500 92,605 231,512 277,815 324,117 943,549 - - - 943,549 61 General Requirements 14,700 77,788 194,470 233,364 272,258 792,581 - - - 792,581 62 Preconstruction Services 11,025 58,341 145,853 175,023 204,194 594,436 - - - 594,436 63 Contractor Fee 25,725 136,129 340,323 408,388 476,452 1,387,017 - - - 1,387,017 65 Other: Escalation - - - - - - - - - -
66 Total New Construction - 418,950 2,216,962 5,542,404 6,650,885 7,759,366 22,588,567 - - - 22,588,567 67 68 ARCHITECTURAL
70 Landscape 81,000 10,800 1,620 4,050 4,860 5,670 108,000 108,000 75 Total Architectural 81,000 10,800 1,620 4,050 4,860 5,670 108,000 - - - 108,000 76 77 SURVEY & ENGINEERING
78 Civil 475,300 67,900 13,580 33,950 40,740 47,530 679,000 - - - 679,000 86 Total Survey & Engineering 475,300 67,900 13,580 33,950 40,740 47,530 679,000 - - - 679,000 87 88 CONTINGENCY COSTS
89 Hard Cost Contingency 20,948 110,848 277,120 332,544 387,968 1,129,428 - - 1,129,428 90 Soft Cost Contingency 30,695 148,059 28,241 39,564 43,704 51,138 341,401 - - - 341,401 91 Total Contingency 30,695 169,006 139,089 316,685 376,248 439,107 1,470,830 - - - 1,470,830 92 93 CONSTRUCTION PERIOD EXPENSES
94 Construction Loan Interest - 37,257 71,401 131,851 204,265 444,774 524,839 - 969,613 97 Origination/Processing Fee 286,351 - - - - 286,351 - - - 286,351 100 Lender Inspection Fees - 1,625 1,625 1,625 1,625 6,500 - - - 6,500 101 Taxes During Construction 5,000 - - - 5,000 - - - 5,000 103 Insurance During Construction 99,817 - - - - 99,817 - - - 99,817 104 Title and Recording Fees 30,000 - - - - 30,000 - - - 30,000 106 Predevelopment Loan Interest 25,000 - - - - 25,000 - - - 25,000 107 Other: Lender Due Diligence 25,000 - - - - 25,000 - - - 25,000 108 Other: Urban Greening (AHSC) - 20,000 50,000 60,000 70,000 200,000 - - 200,000 109 Total Construction Period Expense - 471,168 58,882 123,026 193,476 275,890 1,122,442 524,839 - - 1,647,281 110
111 PERMANENT FINANCING EXPENSES
112 Loan Origination Fees - - - - - - - 51,763 - 51,763 114 Title and Recording Fees - - - - - - - 5,000 - 5,000 117 Other: Issuer Fee 2,500 53,691 - - - - 56,191 53,691 - - 109,882 119 Total Permanent Financing 2,500 53,691 - - - - 56,191 53,691 56,763 - 166,644 120
121 LEGAL FEES
122 Construction Lender Legal 45,000 - - - - 45,000 - - - 45,000 123 Permanent Lender Legal - - - - - - - 10,000 - 10,000 124 Sponsor Legal 0 50,000 - - - - 50,000 - - - 50,000
125 Organizational Legal 20,000 - - - - 20,000 - - - 20,000 126 Other Legal (Issuer Legal, Bond Counsel) 60,000 - - - - 60,000 - - - 60,000 129 Total Legal Fees - 175,000 - - - - 175,000 - 10,000 - 185,000 130
131 CAPITALIZED RESERVES
132 Operating Reserve - - - - - - - 200,854 - 200,854
138 Total Reserves - - - - - - - - 200,854 - 200,854
139
140 REPORTS & STUDIES
141 Market Study 7,500 - - - - - 7,500 - - - 7,500
143 Appraisal 4,500 - - - - - 4,500 - - - 4,500
149 Total Reports & Studies 12,000 - - - - - 12,000 - - - 12,000 150
151 OTHER
152 TCAC App./Alloc/Monitoring Fees 18,716 - - - - - 18,716 - 38,950 - 57,666 153 CDLAC/CDIAC Fees/CalHFA issuer' 23,381 157,176 - - - - 180,557 - (143,176) - 37,381 154 Local Permit Fees 0 594,132 - - - - 594,132 - - - 594,132 155 Local Development Impact Fees 0 1,485,000 - - - - 1,485,000 - - - 1,485,000 159 Furnishings - - - 25,000 25,000 - - - 25,000
160 Final Cost Audit Expense - - - - - - 15,000 - - 15,000 161 Marketing 1,000 - 4,000 - 50,000 55,000 10,000 - - 65,000 164 Accounting/Finance/Admin 0 - 12,500 12,500 12,500 12,500 50,000 - - - 50,000 167 Total Other Costs 43,097 2,236,308 16,500 12,500 12,500 87,500 2,408,404 25,000 (104,226) - 2,329,179 168
169 DEVELOPER COSTS
170 Developer Fee 500,000 - - - 500,000 500,000 2,713,224 479,648 4,192,873 177 Total Developer Costs - 500,000 - - - - 500,000 500,000 2,713,224 479,648 4,192,873 178
179
180 Total Uses of Funds 644,592 5,329,966 2,446,633 6,032,615 7,278,709 8,615,062 30,347,577 1,103,530 2,876,615 479,648 34,807,370 181 Net Source & Use - - - - - - - 0 - 0
182 Distributions - -
183 Balance of Funds - - - - - - 0 0 0
Perm Loan (Tranche A)
Deferred Developer Fee
GAP
Developer Fee contribution

AHSC AHD
Other
Solar Equity
Construction Loan
City of El Centro Land Value
Construction Period

PROJECTED SOURCES AND USES OF FUNDS
Lincoln, El Centro CA
Federal LIHTC Equity
State LIHTC Equity

17.b
Packet Pg. 241 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) Lincoln, El Centro CA
12/1/2021
Square Total Gross Utility Monthly Annual
Rent: Restriction %AMI Units Feet/Unit Sq. Ft. Rents Allowance Net Rent Rent 1BR/1BA LIHTC 60% 11 590 6,490 $ 877.00 $ 49.00 $ 828.00 $ 109,296 1BR/1BA LIHTC 50% 9 590 5,310 $ 731.00 $ 49.00 $ 682.00 $ 73,656 1BR/1BA LIHTC 30% 4 590 2,360 $ 438.00 $ 49.00 $ 389.00 $ 18,672 2BR/1BA LIHTC 60% 18 757 13,626 $ 1,053.00 $ 66.00 $ 987.00 $ 213,192 2BR/1BA LIHTC 50% 16 757 12,112 $ 877.00 $ 66.00 $ 811.00 $ 155,712 2BR/1BA LIHTC 30% 13 757 9,841 $ 526.00 $ 66.00 $ 460.00 $ 71,760 3BR/2BA LIHTC 60% 11 937 10,307 $ 1,215.00 $ 84.00 $ 1,131.00 $ 149,292 3BR/2BA LIHTC 50% 9 937 8,433 $ 1,013.00 $ 84.00 $ 929.00 $ 100,332 3BR/2BA LIHTC 30% 4 937 3,748 $ 607.00 $ 84.00 $ 523.00 $ 25,104 2BR/1BA LIHTC MGR 1 937 937 $ - $ - $ - $ -
0 $ -
Total Rents 96 73,164 917,016
Community Room/Office 1,400
% Loss to Efficiency 15% 13,158
Construction Square Feet 87,722
Income from Operations PUPM
Laundry $ 10.00 11,520
Other Income (App. Fees, Late, etc.) $ 8.00 9,216
Sub-Total $ 18.00 937,752
Less: Vacancies @ 5% 46,888
Total Income 890,864
Operating Expenses PUPA
Admin $ 450 $ 450 43,200
Management Fee $ 720 $ 720 69,120
Utilities $ 1,215 $ 1,215 116,640
Payroll $ 1,250 $ 1,250 120,000
Repair & Maintenance $ 750 $ 750 72,000
Insurance $ 330 $ 330 31,680
Taxes (HOA, CFD) $ 35 $ 35 3,360
Other $ - $ - 0
Total Expenses $ 4,750 456,000
Net Operating Income 434,864
Reserves $500.00/unit 48,000
Issuer and Monitoring Fee 0.005% (Min $10k or 0.125% + $150/unit for SDHC) 4,000 Mandatory Debt Service 0.420% 43,137
Net Income Available for Debt Service 339,727
Notes
2022
El Centro
$38,950

OPERATING BUDGET & INCOME ANALYSIS
Year
MSA
4 Person 50% AMI

17.b
Packet Pg. 242 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement)

OPERATIONAL CASH FLOW
Lincoln, El Centro CA
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Gross Revenue Inflation @ 2.50% 937,752 961,196 985,226 1,009,856 1,035,103 1,060,980 1,087,505 1,114,692 1,142,560 1,171,124 1,200,402 1,230,412 1,261,172 1,292,701 1,325,019 1,358,145 Vacancy 5% (46,888) (48,060) (49,261) (50,493) (51,755) (53,049) (54,375) (55,735) (57,128) (58,556) (60,020) (61,521) (63,059) (64,635) (66,251) (67,907) Net Revenue 890,864 913,136 935,964 959,364 983,348 1,007,931 1,033,130 1,058,958 1,085,432 1,112,568 1,140,382 1,168,891 1,198,114 1,228,066 1,258,768 1,290,237 Operating Expenses Inflation @ 3.50% 456,000 471,960 488,479 505,575 523,270 541,585 560,540 580,159 600,465 621,481 643,233 665,746 689,047 713,164 738,125 763,959 Net Operating Income 434,864 441,176 447,486 453,788 460,077 466,346 472,589 478,798 484,967 491,086 497,149 503,145 509,066 514,902 520,643 526,278 Replacement Reserves 0.00% 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 Cash Available to Debt Service 386,864 393,176 399,486 405,788 412,077 418,346 424,589 430,798 436,967 443,086 449,149 455,145 461,066 466,902 472,643 478,278 Principal and Interest 5,176,263 4.90% 295,415 295,415 295,415 295,415 295,415 295,415 295,415 295,415 295,415 295,415 295,415 295,415 295,415 295,415 295,415 295,415 Issuer and Monitoring Fee 0.00% 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 Mandatory Debt Service 43,137 43,137 43,137 43,137 43,137 43,137 43,137 43,137 43,137 43,137 43,137 43,137 43,137 43,137 43,137 43,137 Managing GP Fee 5,000 3.50% 5,000 5,175 5,356 5,544 5,738 5,938 6,146 6,361 6,584 6,814 7,053 7,300 7,555 7,820 8,093 8,377 Net Project Cash Flow 39,312 45,449 51,578 57,692 63,787 69,856 75,891 81,885 87,831 93,720 99,544 105,293 110,959 116,531 121,998 127,349 DSCR 1.15 1.17 1.19 1.21 1.24 1.26 1.28 1.30 1.32 1.34 1.36 1.38 1.40 1.42 1.44 1.46 TCAC Gross Revenue Test no more than 2% in year 15 if DSCR > 125% or 8% test 8% 4.73% 5.27% 5.78% 6.26% 6.72% 7.14% 7.54% 7.92% 8.26% 8.58% 8.88% 9.15% 9.40% 9.62% 9.82% 9.99% TCAC Debt Service Test 125%
UMR Operating Expense Test <= 1.20 DSCR or 12% cash flow to expense ratio 12% 8.62% 9.63% 10.56% 11.41% 12.19% 12.90% 13.54% 14.11% 14.63% 15.08% 15.48% 15.82% 16.10% 16.34% 16.53% 16.67% Distributions:

LP Fee 5,000 0.00% 5,000 5,000 5,000 5,000 5,000 5,500 5,500 5,500 5,500 5,500 6,050 6,050 6,050 6,050 6,050 6,050 Deferred Dev Fee 100%of Avail Cashflow 1.00% 34,312 40,449 46,578 52,692 58,787 64,356 70,391 76,385 82,331 88,220 93,494 99,243 104,909 110,481 115,948 121,299 Cash Available After Deferred Fee Payment00000
00000000000
Cash Available For Soft Loans 50%of Avail Cashflow0000000000000000 GAP 0.0%of Avail Cashflow 3.00%0000000000000000
Developer Fee contribution 0.0%of Avail Cashflow 3.00%0000000000000000 AHSC AHD 89.4%of Avail Cashflow 3.00%0000000000000000
City of El Centro Land Value 10.6%of Avail Cashflow 3.00% 0000000000000000

17.b
Packet Pg. 243 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens

OPERATIONAL CASH FLOW
Lincoln, El Centro CA
Gross Revenue Inflation @ 2.50%
Vacancy 5%
Net Revenue
Operating Expenses Inflation @ 3.50%
Net Operating Income
Replacement Reserves 0.00%
Cash Available to Debt Service
Principal and Interest 5,176,263 4.90%
Issuer and Monitoring Fee 0.00%
Mandatory Debt Service
Managing GP Fee 5,000 3.50%
Net Project Cash Flow
DSCR
TCAC Gross Revenue Test no more than 2% in year 15 if DSCR > 125% or 8% test 8% TCAC Debt Service Test 125%
UMR Operating Expense Test <= 1.20 DSCR or 12% cash flow to expense ratio 12% Distributions:

LP Fee 5,000 0.00%
Deferred Dev Fee 100%of Avail Cashflow 1.00%
Cash Available After Deferred Fee Payment
Cash Available For Soft Loans 50%of Avail Cashflow
GAP 0.0%of Avail Cashflow 3.00%
Developer Fee contribution 0.0%of Avail Cashflow 3.00%
AHSC AHD 89.4%of Avail Cashflow 3.00%
City of El Centro Land Value 10.6%of Avail Cashflow 3.00% 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33
1,392,098 1,426,901 1,462,573 1,499,137 1,536,616 1,575,031 1,614,407 1,654,767 1,696,136 1,738,540 1,782,003 1,826,553 1,872,217 1,919,023 1,966,998 2,016,173 2,066,577 (69,605) (71,345) (73,129) (74,957) (76,831) (78,752) (80,720) (82,738) (84,807) (86,927) (89,100) (91,328) (93,611) (95,951) (98,350) (100,809) (103,329) 1,322,493 1,355,556 1,389,444 1,424,181 1,459,785 1,496,280 1,533,687 1,572,029 1,611,330 1,651,613 1,692,903 1,735,226 1,778,606 1,823,071 1,868,648 1,915,364 1,963,249 790,698 818,372 847,015 876,661 907,344 939,101 971,969 1,005,988 1,041,198 1,077,640 1,115,357 1,154,395 1,194,798 1,236,616 1,279,898 1,324,694 1,371,059 531,796 537,183 542,429 547,520 552,441 557,179 561,717 566,041 570,132 573,973 577,546 580,831 583,808 586,455 588,750 590,670 592,190 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 483,796 489,183 494,429 499,520 504,441 509,179 513,717 518,041 522,132 525,973 529,546 532,831 535,808 538,455 540,750 542,670 544,190 295,415 295,415 295,415 295,415 295,415 295,415 295,415 295,415 295,415 295,415 295,415 295,415 295,415 295,415 295,415 295,415 295,415 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 43,137 43,137 43,137 43,137 43,137 43,137 43,137 43,137 43,137 43,137 43,137 43,137 43,137 43,137 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
141,243 146,631 151,877 156,968 161,889 166,627 171,165 175,488 179,580 183,421 186,994 190,279 193,256 195,903 241,335 243,255 244,775

1.48 1.50 1.51 1.53 1.55 1.56 1.58 1.59 1.61 1.62 1.63 1.64 1.65 1.66

10.15% 10.28% 10.38% 10.47% 10.54% 10.58% 10.60% 10.61% 10.59% 10.55% 10.49% 10.42% 10.32% 10.21% 12.27% 12.07% 11.84%

17.86% 17.92% 17.93% 17.91% 17.84% 17.74% 17.61% 17.44% 17.25% 17.02% 16.77% 16.48% 16.17% 15.84% 18.86% 18.36% 17.85% 141,243 47,710 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 98,922 151,877 156,968 161,889 166,627 171,165 175,488 179,580 183,421 186,994 190,279 193,256 195,903 241,335 243,255 244,775 0 49,461 75,939 78,484 80,945 83,313 85,583 87,744 89,790 91,710 93,497 95,139 96,628 97,951 120,668 121,628 122,387 0 (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 44,220 67,893 70,169 72,369 74,486 76,515 78,448 80,277 81,994 83,591 85,059 86,390 87,574 107,883 108,741 109,421 0 5,240 8,046 8,315 8,576 8,827 9,067 9,297 9,513 9,717 9,906 10,080 10,238 10,378 12,785 12,886 12,967

17.b
Packet Pg. 244 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens

LP Fee 5,000 0.00%
Deferred Dev Fee 100%of Avail Cashflow 1.00%
Cash Available After Deferred Fee Payment
Cash Available For Soft Loans 50%of Avail Cashflow
GAP 0.0%of Avail Cashflow 3.00%
Developer Fee contribution 0.0%of Avail Cashflow 3.00%
AHSC AHD 89.4%of Avail Cashflow 3.00%
City of El Centro Land Value 10.6%of Avail Cashflow 3.00% 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
2,118,242 2,171,198 2,225,478 2,281,115 2,338,143 2,396,596 2,456,511 2,517,924 2,580,872 2,645,394 2,711,529 2,779,317 2,848,800 2,920,020 2,993,020 3,067,846 3,144,542 (105,912) (108,560) (111,274) (114,056) (116,907) (119,830) (122,826) (125,896) (129,044) (132,270) (135,576) (138,966) (142,440) (146,001) (149,651) (153,392) (157,227) 2,012,330 2,062,638 2,114,204 2,167,059 2,221,236 2,276,766 2,333,686 2,392,028 2,451,828 2,513,124 2,575,952 2,640,351 2,706,360 2,774,019 2,843,369 2,914,454 2,987,315 1,419,046 1,468,712 1,520,117 1,573,321 1,628,388 1,685,381 1,744,370 1,805,422 1,868,612 1,934,014 2,001,704 2,071,764 2,144,275 2,219,325 2,297,002 2,377,397 2,460,605 593,284 593,926 594,087 593,738 592,848 591,385 589,316 586,605 583,216 579,111 574,248 568,587 562,084 554,694 546,368 537,057 526,709 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 545,284 545,926 546,087 545,738 544,848 543,385 541,316 538,605 535,216 531,111 526,248 520,587 514,084 506,694 498,368 489,057 478,709 295,415 295,415 295,415 295,415 295,415 295,415 295,415 263,248 0 0 0 0 0 0 0 0 0 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
245,869 246,511 246,672 246,323 245,433 243,970 241,901 271,357 531,216 527,111 522,248 516,587 510,084 502,694 494,368 485,057 474,709

11.61% 11.35% 11.08% 10.80% 10.50% 10.18% 9.85% 10.78% 20.58% 19.93% 19.26% 18.59% 17.91% 17.22% 16.52% 15.81% 15.10%

17.33% 16.78% 16.23% 15.66% 15.07% 14.48% 13.87% 15.03% 28.43% 27.25% 26.09% 24.93% 23.79% 22.65% 21.52% 20.40% 19.29% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
245,869 246,511 246,672 246,323 245,433 243,970 241,901 271,357 531,216 527,111 522,248 516,587 510,084 502,694 494,368 485,057 474,709 122,935 123,255 123,336 123,161 122,717 121,985 120,951 135,679 265,608 263,555 261,124 258,294 255,042 251,347 247,184 242,529 237,355 (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
109,910 110,196 110,268 110,112 109,715 109,061 108,136 121,304 237,467 235,632 233,458 230,927 228,020 224,717 220,995 216,833 212,207 13,025 13,059 13,067 13,049 13,002 12,924 12,815 14,375 28,141 27,924 27,666 27,366 27,022 26,630 26,189 25,696 25,148

17.b
Packet Pg. 245 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens

14.37% 13.64% 12.90% 12.15% 11.40%

18.19% 17.10% 16.01% 14.94% 13.87%
88,800
00000 1,448,826
463,271 450,686 436,894 421,835 405,445 11,671,977
231,636 225,343 218,447 210,918 202,723 5,835,988
(0) (0) (0) (0) (0) (0) 0 0 0 0 0 0
207,094 201,468 195,303 188,571 181,244 5,217,665
24,542 23,875 23,144 22,347 21,478 618,323

17.b
Packet Pg. 246 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens ATTACHMENT NO. 6

GRANT DEED

RECORDING REQUESTED BY AND

AFTER RECORDATION, MAIL TO )
AND MAIL TAX STATEMENTS TO: )
[TBD Affordable Owner] )
6339 Paseo del Lago )
Carlsbad, CA 92011 )
)
(Space above for Recorder's Use Only)
This document is exempt from
recording fees pursuant to
Government Code Section 27383

GRANT DEED
For valuable consideration, receipt of which is hereby acknowledged, this ___ day of _____________, 202__, the SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY FOR THE CITY OF EL CENTRO (“Grantor”) hereby grants to [TBD AFFORDABLE OWNER], a California corporation (“Grantee”), certain real property hereinafter referred to as the “Property” situated in the City of El Centro, Imperial County, State of California, and legally described in Exhibit A attached hereto and incorporated herein by this reference, located at 1625 N. Waterman Avenue, El Centro, California, also known as Assessor Parcel No. __________, subject to the existing covenants, conditions, restrictions, reservations, and easements of record described therein.

1. The Site is being conveyed by the Grantor pursuant to that certain Disposition, Development, and Loan Agreement by and between the Grantor and the Grantee dated __________________, 202_ (“Agreement”), a copy of which is on file with the Secretary of the Grantor as a public record and which is incorporated herein by reference. All capitalized terms used herein and not otherwise defined herein shall have the same meaning as those used in the Agreement.

2. The Grantor excepts and reserves from the conveyance herein described all interest of the Grantor in oil, gas, hydrocarbon substances and minerals of every kind and character lying more than five hundred (500) feet below the surface, together with the right to drill into, though, and to use and occupy all parts of the Site lying more than five hundred (500) feet below the surface thereof for any and all purposes incidental to the exploration for and production of oil, gas, hydrocarbon substances or minerals from said Site or other lands, but without, however, any right to use either the surface of the Site or any portion thereof within five hundred (500) feet of the surface for any purpose or purposes whatsoever, or to use the Site in such a manner as to create a

17.b
Packet Pg. 247 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 2 disturbance to the use or enjoyment of the Site.

3. During the term of the Agreement and the Regulatory Agreement (as defined below), the Grantee hereby covenants and agrees, for itself and its successors and assigns, that the Grantee shall devote ninety-five (95) residential units on the Site to Qualified Lower Income Households, Qualified Very Low Income Households, and Qualified Extremely Low Income Households, as specified in the Agreement and that certain Regulatory Agreement entered into by and between the Grantor and the Grantee, dated _______________, 202_, and recorded against the Site (“Regulatory Agreement”). The Grantee hereby covenants and agrees, for itself and its successors and assigns, that the Grantee shall develop, use, and operate the Project upon the Site in accordance with the Agreement and the Regulatory Agreement.

4. Subject to the approval of the construction loan lender or permanent loan lender having senior priority, as applicable, and investor limited partner of the Grantee, the Grantor has the additional right, at its election, to reenter and take possession of the Site (or any part thereof), with all improvements thereon, and terminate and revest in the Grantor the estate (or part thereof) conveyed to the Developer if after any Conveyance and prior to the issuance of the Release of Construction Covenants, the Developer (or its successors in interest) shall:
(a) subject to the extensions of time set forth in Section 9.9 of the Agreement, fail to start the construction of the Project as required for a period of forty-five (45) calendar days after written notice of default thereof from the Grantor; or
(b) subject to the extensions of time set forth in Section 9.9 of the Agreement, abandon or substantially suspend construction of the Project as required by this Agreement for a period of thirty (30) calendar days after written notice thereof from the Grantor; or (c) contrary to the provisions of Section 2.2 of the Agreement, transfer or suffer any involuntary transfer of the Site or any part thereof in violation of this Agreement. (d) The periods set forth in paragraphs a., b., and c. above shall be extended if, within forty-five (45) calendar days after notice is delivered by the Grantor, the Developer delivers to the Grantor notice that it has elected to submit a plan to cure such default or defaults within one hundred eighty (180) calendar days of the Developer’s notice to the Grantor. (e) Such right to reenter, terminate and revest shall be subject to and be limited by and shall not defeat, render invalid or limit: (i) any mortgage or deed of trust or other security interest permitted by the Grantor; or (ii) any rights or interests provided in this Agreement for the protection of the holders of such mortgages or deeds of trust or other security interests. (f) Upon issuance of a Release of Construction Covenants for the Project, the Grantor’s right to reenter, terminate and revest shall terminate. (g) Subject to the rights of a construction loan lender and investor limited partner of the Grantee, upon the revesting in the Grantor of title to the Site or portion thereof as provided in this Section, the Grantor shall, pursuant to its responsibilities under state law, use its reasonable efforts to resell the Site or portions thereof as soon and in such manner as the Grantor shall find

17.b
Packet Pg. 248 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 3 feasible and consistent with the objectives of such law to a qualified and responsible party or parties as determined by the Grantor, who will assume the obligation of making or completing the Project, or such improvements in their stead as shall be satisfactory to the Grantor and in accordance with the uses specified for such parcel or part thereof. Such party shall be required to pay for a pro rata share of the cost of construction, maintenance and operation of the common area improvements upon the Site. Upon such resale of the Site or portions thereof, the net proceeds thereof after repayment of any mortgage or deed of trust encumbering the Site which is permitted by this Agreement, shall be applied:
(i) First, to reimburse the Grantor, all reasonable costs and expenses incurred by the Grantor, excluding the Grantor staff costs, but specifically including (but not limited to) any expenditures by the Grantor in connection with the recapture, management and resale of the Site or part thereof (but less any income derived by the Grantor from the Site or part thereof in connection with such management); all taxes, assessments and water or sewer charges with respect to the Site or part thereof which the Developer has not paid; any payments made or necessary to be made to discharge any encumbrances or liens existing on the Site or part thereof at the time or revesting of title thereto in the Grantor, or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults or acts of the Developer, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the Project or any part thereof on the Site; and any amounts otherwise owing the Grantor, and in the event additional proceeds are thereafter available. (ii) Second, to reimburse the Developer, its successor or transferee, up to the amount equal to the sum of (a) the costs incurred for the acquisition and development of the Site or part thereof and for the Project existing on such Site at the time of the reentry and possession, less (b) any net gains or income withdrawn or made by the Developer from such Site or the improvements thereon.
(iii) Any balance remaining after such reimbursements shall be retained by the Grantor as its property.
(h) The rights established in this Section are not intended to be exclusive of any other right, power or remedy, but each and every such right, power, and remedy shall be cumulative and concurrent and shall be in addition to any other right, power and remedy authorized herein or now or hereafter existing at law or in equity. These rights are to be interpreted in light of the fact that the Grantor will have conveyed the Site or portion thereof to the Developer for redevelopment purposes, particularly for development of the Project and not for speculation in land.

5. The Grantee covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph ( 1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Site, or any part of it, nor shall the Grantee or any person claiming under or through it, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the Site, including the Affordable Units, or any portion thereof.

17.b
Packet Pg. 249 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 4 The foregoing covenants shall run with the land.

Notwithstanding the foregoing paragraph, with respect to familial status, the foregoing paragraph shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in the foregoing paragraph shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to the foregoing paragraph.

Grantee shall refrain from restricting the sale of the Site, including the Affordable Units, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code. All such deeds, leases, contracts, or subcontracts shall contain or be subject to substantially the following nondiscrimination and nonsegregation clauses:
a. In deeds: “The grantee herein covenants by and for himself or herself; his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.l , subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land.” Notwithstanding the foregoing paragraph, with respect to familial status, the foregoing paragraph shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in the foregoing paragraph shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to the foregoing paragraph.
b. In leases: ''The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location,

17.b
Packet Pg. 250 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 5 number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased.”
c. Notwithstanding the foregoing paragraph, with respect to familial status, the foregoing paragraph shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in the foregoing paragraph shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to the foregoing paragraph.
d. In contracts: “There shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision(m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in connection with the performance of this contract nor shall the contracting party himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, sublessees, subtenants, contractors, subcontractors or vendees with respect to the premises.”
Notwithstanding the foregoing paragraph, with respect to familial status, the foregoing paragraph shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in the foregoing paragraph shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to the foregoing paragraph.

6. Except as otherwise provided, the covenants contained in this Grant Deed shall remain in effect in accordance with the terms and conditions of the Regulatory Agreement. The covenants against discrimination contained in Section 5 of this Grant Deed shall remain in effect in perpetuity.

7. To the fullest extent permitted by law or equity, the covenants and agreements contained in this Grant Deed shall, without regard to technical classification or designation, legal or otherwise, be binding on the Grantees' successors and assigns and run for the benefit and in favor of and shall be enforceable by the Grantor and its successors and assigns for the entire period during which such covenants shall be in force and effect, without regard to whether the Grantor is or remains an owner of any land or interest therein to which such covenants relate. In the event of any breach of any of such covenants, the Grantor and such aforementioned parties shall have the right to exercise all of the rights and remedies, and to maintain any actions at law or suits in equity or other proper proceedings to enforce the curing of such breach.

8. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Grant Deed shall defeat or render invalid or in any way impair the lien or charge of any mortgage, deed of trust or other financing or security instrument permitted by the

17.b
Packet Pg. 251 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 6 Agreement; provided, however, except as otherwise set forth in a subordination agreement between senior lender and the Grantor, that any successor of the Grantee to the Site shall be bound by such remaining covenants, conditions, restrictions, limitations and provisions, whether such successor's title was acquired by foreclosure, deed in lieu of foreclosure, trustee's sale, or otherwise.

9. Only the Grantor, its successors and assigns, and the Grantee and the successors and assigns of the Grantee in and to all or any part of the fee title to the Site shall have the right to consent and agree to changes or to eliminate in whole or in part any of the covenants contained in this Grant Deed, or to subject the Site to additional covenants, easements, or other restrictions. For purposes of this Section 9, successors and assigns of the Grantee means only those parties who hold all or any part of the Site in fee title, and does not include a tenant, lessee, easement holder, licensee, mortgagee, trustee, beneficiary under deed of trust, or any other person or entity holding less than a fee interest in the Site.

IN WITNESS WHEREOF, the Grantor and the Grantee have caused this instrument to be executed on their behalf by their respective officers thereunto duly authorized, as of the date first written above.
(Signatures on following page.)

17.b
Packet Pg. 252 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 7 “GRANTOR”

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY OF THE CITY OF

EL CENTRO
By: ___________________________
Executive Director
ATTESTED TO:

By:

Agency Secretary
APPROVED AS TO FORM:

By:

Agency General Counsel

17.b
Packet Pg. 253 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 8 The undersigned Grantee accepts title subject to the covenants hereinabove set forth. “GRANTEE”
[TBD AFFORDABLE OWNER],
a California limited partnership
By:_________________________________
Name:

Title:

By: __________________________________
Name:

Title:

17.b
Packet Pg. 254 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement)

EXHIBIT A

LEGAL DESCRIPTION
(ATTACHED)

17.b
Packet Pg. 255 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) BEING A PORTION OF PARCEL 3 OF MAP ON FILE IN BOOK 8, PAGE 12 OF PARCEL MAPS, WITHIN TRACT 209, TOWNSHIP 15 SOUTH, RANGE 13 AND 14 EAST, SAN BERNARDINO MERIDIAN, IN

THE CITY OF EL CENTRO, COUNTY OF IMPERIAL, STATE OF CALIFORNIA, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

LEGAL DESCRIPTION

17.b
Packet Pg. 256 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 1 ATTACHMENT NO. 7

AGENCY REGULATORY AGREEMENT

RECORDING REQUESTED BY )
AND WHEN RECORDED MAIL TO: )
)
)
Successor Agency to the Redevelopment )
Agency for the City of El Centro )
1275 Main Street )
El Centro, CA 92243 )
Attn: Executive Director )
)
Project: Jacaranda Gardens Phase I )
(Space above for Recorder’s Use Only)
This document is exempt from the payment of a
recording fee pursuant to Government Code Section
27383.

REGULATORY AGREEMENT
THIS REGULATORY AGREEMENT (“Regulatory Agreement”) is entered into the ____ day of _______________, 202__, by and between THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF EL CENTRO (“Agency”), and [TBD AFFORDABLE OWNER], a California limited partnership (“Developer”).

RECITALS
Capitalized terms used in these recitals and not otherwise defined shall have the meaning set forth in Section 1 of this Regulatory Agreement.

A. By action of the City Council of the City of El Centro (“City Council”) pursuant to Chapter 2 of the California Community Redevelopment Law (Health & Safety Code § 33000, et seq., “Community Redevelopment Law”), the City of El Centro (“City”) established the Redevelopment Agency of the City of El Centro (the “Redevelopment Agency”), whose purpose included increasing, improving, and preserving the community’s supply of housing affordable to and occupied by very low and low-income households pursuant to Sections 33334.2, 33334.3, 33334.6 and 33413 of the Community Redevelopment Law.

17.b
Packet Pg. 257 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 2 C. By adoption of its Long Range Property Management Plan, the City Council elected to have the City retain the housing assets of the Redevelopment Agency and perform functions previously performed by the Redevelopment Agency. Accordingly, as of, on, and after February 1, 2012, the City, as successor agency to the former Redevelopment Agency of the City of El Centro, began to perform and will continue to perform its functions as the “successor housing agency” of the former Redevelopment Agency pursuant to the Dissolution Act.

D. In furtherance of the Agency’s affordable housing goals and activities, the Agency and the Developer have entered into that certain Disposition, Development, and Loan Agreement dated _________, 202__ (“Disposition Agreement”), which is incorporated herein by this reference and a copy of which is on file as public record of the Agency at its offices located at 1275 Main Street, El Centro, CA 92243. Pursuant to the Disposition Agreement, the Agency has agreed to transfer to the Developer a certain real property located at 1625 N. Waterman Avenue within the City of El Centro and further identified as Assessor Parcel No. (APN) _________(“Agency Property” or “Site”), and to provide a loan to the Developer for the land purchase price, for the development of a multi-family, affordable housing project consisting of approximately ninety-five (95) affordable units and one (1) manager’s unit on the Site together with any improvements appurtenant thereto (“Project”).

E. As a condition to the transfer of the Agency Property, the Developer has agreed to maintain and operate the Project in accordance with certain covenants, conditions and restrictions as set forth in this Regulatory Agreement. This Regulatory Agreement is intended to ensure that the Developer, its successors, its assigns and every successor in interest to the Site or any part thereof, shall use, maintain and operate the Project in accordance with the terms and conditions of this Regulatory Agreement, including that the Affordable Units shall be available only to Qualified Lower Income Households, Qualified Very Low Income Households, and Qualified Extremely Low Income Households, as set forth herein, at Affordable Rent for not less than fifty-five (55) years.

F. The transfer of the Agency Property to the Developer and the completion and operation of the Project pursuant to the terms and conditions of the Disposition Agreement and this Regulatory Agreement are in the vital and best interest of the City and the health, safety and welfare of its residents, and are in accord with the public purposes and provisions of applicable state and local laws, including (without limitation) the Agency’s replacement and inclusionary housing obligations pursuant to Section 33413 of the Community Redevelopment Law.

NOW, THEREFORE, the foregoing recitals are a substantive part of this Regulatory Agreement and in consideration of their mutual covenants and conditions, the Parties hereto agree as follows:

1. DEFINITIONS
The following terms of this Regulatory Agreement shall have the meanings set forth below.

Any capitalized terms not defined below shall have the meaning set forth therefor in the Disposition Agreement and attachments thereto:

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Packet Pg. 258 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 3 “Affordability Period” means the period commencing upon the recordation of the Release of Construction Covenants and terminating on the fifty-fifth (55th) anniversary thereof. “Affordable Rent” means the amount of monthly rent, including a reasonable utility allowance, that does not the exceed the lowest rent limit for any applicable funding source, including: (i) any applicable Tax Credit Regulatory Agreement, (ii) Section 50053 of the Health & Safety Code or any successor statute if applicable, (iii) Section 8 Program regulations for a Section 8 project-based Unit or for a holder of a Rental Voucher or Rental Certificate, as applicable, and (iv) any applicable regulations pursuant to any other source of financing secured for, and continuing to be secured by, the Project. For purposes of calculating Affordable Rent a “reasonable utility allowance” shall be the allowance established by the Tax Credit Rules or such lesser allowance reasonably permitted by the Agency including, but not limited to, the California Utility Allowance Calculator, if applicable.

Affordable Units” means the ninety-five (95) units to be constructed on the Site to be restricted as follows: eleven (11) one-bedroom units, eighteen (18) two-bedroom units, and eleven (11) three-bedroom units to be restricted to Lower Income Households; nine (9) one-bedroom units, sixteen (16) two-bedroom units, and nine (9) three-bedroom units to be restricted to Very Low Income Households; and four (4) one-bedroom units, thirteen (13) two-bedroom units, and four (4) three-bedroom units to be restricted to Extremely Low Income Households. “Agency” means the Successor Agency to the Redevelopment Agency for the City of El Centro.
“AMI” or “Area Median Income” means the median family income (adjusted for family size) for Imperial County promulgated and published annually by TCAC. If TCAC ceases annually to publish median incomes, the Parties will agree upon an adequate substitute manner for determining Area-wide Median Income.
“City” means the City of El Centro, a California municipal corporation. “Community Redevelopment Law” means California Health & Safety Code 33000, et seq. “Developer” means [TBD AFFORDABLE OWNER], a California limited partnership, and any permitted successors and assigns pursuant to Section 2.2 of the Disposition Agreement. “Disposition Agreement” means that certain Disposition, Development, and Loan Agreement dated for identification purposes only as of as of _______________, 202_, entered into by and between the Agency and the Developer. Capitalized terms used herein and not otherwise defined shall have the meaning set forth in the Disposition Agreement. “Effective Date” means the Effective Date of the Disposition Agreement. “Environmental Laws” means any and all present and future federal, state and local laws (whether under common law, statute, ordinance, rule, regulation or otherwise), court or administrative orders or decrees, requirements of permits issued with respect thereto, and other requirements of governmental authorities relating to the environment or to any Hazardous

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Packet Pg. 259 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 4 Substance or Hazardous Substance Activity (including, without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. §§ 9601, et seq.), as heretofore or hereafter amended from time to time (“CERCLA”), and the applicable provisions of the California Health and Safety Code and the California Water Code, and any and all successor statutes and regulations, orders, decrees, guidelines, or pronouncements promulgated thereunder). “Event of Default” means the failure of a party to perform any action or covenant required by this Regulatory Agreement within the time periods provided herein following notice and opportunity to cure.
“Executive Director” means the City Manager of the City of El Centro as Successor Agency to the Redevelopment Agency for the City of El Centro, or his/her designated representative.
“Governmental Regulations” means any local, state, and federal laws, ordinances, rules, requirements, resolutions, policy statements and regulations (including, without limitation, those relating to land use, subdivision, zoning, environmental, labor relations, prevailing wage, notification of sale to employees, Hazardous Substance, occupational health and safety, water, earthquake hazard reduction and building and fire codes) bearing on the demolition, alteration, replacement, repair, refurbishing, rehabilitation, improvement, construction, maintenance, management, use, or operation of the Project.
“Hazardous Substance” means (i) any chemical, compound, material, mixture or substance that is now or hereafter defined or listed in the United States Department of Transportation Hazardous Materials Table (49 CFR 172. 10 1), as amended from time to time, or now or hereafter otherwise classified or regulated pursuant to any Environmental Laws as a “hazardous substance”, “hazardous material”, “hazardous waste”, “extremely hazardous waste”, “infectious waste”, “toxic substance”, “toxic pollutant” or any other formulation intended to define, list, or classify substances by reason of deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity, toxicity, reproductive toxicity, or “EP toxicity”, (ii) any asbestos or asbestos containing material, (iii) any polychlorinated biphenyls (PCB’s), (iv) any urea formaldehyde, and (v) any petroleum, natural gas, natural gas liquid, liquefied natural gas, synthetic gas usable for fuel (or mixtures of natural gas and such synthetic gas), ash produced by a resource recovery facility utilizing a municipal solid waste stream, and drilling fluids, produced waters, and other wastes associated with the exploration, development or production of crude oil, natural gas, or geothermal resources. Notwithstanding the foregoing, “Hazardous Substances” shall not include any chemical, compound, material, mixture or substance used in the normal course of operating an apartment complex, so long as such chemical, compound, material, mixture or substance is used in accordance with Environmental Laws. “Hazardous Substance Contamination” means contamination (whether presently existing or hereafter occurring) of the improvements, facilities, soil, groundwater, air or other elements on, in or of the Site by Hazardous Substance, or the contamination of the buildings, facilities, soil, groundwater, air or other elements on, in or of any other property as a result of Hazardous Substance at any time (whether before or after the Effective Date) emanating from the Site.

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Packet Pg. 260 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 5 “Management Plan” means the plan for the management of the Project to be submitted by the Developer, as set forth in Section 3.C. of this Regulatory Agreement. “Marketing Plan” is defined in Section 5.A. of this Regulatory Agreement. “Operating Reserve” is defined in Section 3.E. of this Regulatory Agreement. “Parties” means the Agency and the Developer.
“Project” is defined in Recital D.
“Property Manager” means the manager of the Project, as set forth in Section 3.C. “Qualified Extremely Low Income Household” means a household whose aggregate gross income is less than thirty percent (30%) of AMI and qualifies as a “extremely low income household” pursuant to Health and Safety Code § 50106 any successor statute. “Gross income” shall be determined in accordance with § 6914 of Title 25 of the California Code of Regulations. “Qualified Lower Income Household” means a household whose aggregate gross income is less than fifty percent (50%) of AMI. “Gross income” shall be determined in accordance with § 6914 of Title 25 of the California Code of Regulations. “Qualified Very Low Income Household” means a household whose aggregate gross income is less than sixty percent (60%) of AMI and qualifies as a “very low income household” pursuant to Health and Safety Code § 50079.5 or any successor statute. “Gross income” shall be determined in accordance with § 6914 of Title 25 of the California Code of Regulations. “Request for Notice of Default” means a request for notice of default to be recorded against the Site substantially in the form shown in Attachment No. 12 to the Disposition Agreement.
“Schedule of Performance” means that certain Schedule of Performance of required actions attached to the Disposition Agreement as Attachment No. 4. “Site” means that certain real property referenced in Recital D above as delineated on the Site Plan (Attachment No. 1 to the Disposition Agreement) and more particularly described in the Site Legal Description (Attachment No. 2 to the Disposition Agreement). “Tax Credit Regulatory Agreement” means the regulatory agreement which may be required to be recorded against the Site by TCAC with respect to the issuance of Tax Credits. “Tax Credit Rules” means Section 42 of the Internal Revenue Code of 1986, as amended, and/or California Revenue and Taxation Code Sections 17057.5, 17058, 23610.4 and 23610.5 and California Health and Safety Code Section 50199, et seq., and the rules and regulations promulgated by the United States Treasury and TCAC, as the case may be, implementing the foregoing.

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Packet Pg. 261 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 6 “Tax Credits” means Low Income Housing Tax Credits granted pursuant to Section 42 of the Internal Revenue Code and/or California Revenue and Taxation Code Sections 17057.5, 17058, 23610.4 and 23610.5 and California Health and Safety Code Section 50199, et seq. “TCAC” means the California Tax Credit Allocation Committee. “Unit” means an individual unit within the Project to be constructed and operated by the Developer on the Site, in accordance with the terms and conditions of this Regulatory Agreement.

2. USE RESTRICTIONS
A. Permitted Uses.

The Developer covenants and agrees for itself, its successors, its assigns and every successor in interest to the Site or any part thereof, that the Developer, and such successors and assigns, shall (i) construct, use, maintain, and operate the Site as a multi-family, affordable housing project consisting of approximately ninety-five (95) Affordable Units and one (1) manager’s unit; (ii) make available, restrict occupancy to, and rent the Affordable Units at an Affordable Rent as follows: eleven (11) one-bedroom units, eighteen (18) two-bedroom units, and eleven (11) threebedroom units to be restricted to Qualified Lower Income Households; nine (9) one-bedroom units, sixteen (16) two-bedroom units, and nine (9) three-bedroom units to be restricted to Qualified Very Low Income Households; and four (4) one-bedroom units, thirteen (13) two-bedroom units, and four (4) three-bedroom units to be restricted to Qualified Extremely Low Income Households, pursuant to Community Redevelopment Law.

During the Affordability Period, all uses undertaken by the Developer on the Site shall conform to this Regulatory Agreement and to all applicable provisions of the El Centro Municipal Code and Governmental Regulations. The Units on the Site shall not at any time be utilized on a transient basis, nor shall the Site or any portion thereof ever be used as a hotel, motel, dormitory, fraternity or sorority house, rooming house, hospital, nursing home, sanitarium or rest home. The Developer shall not convert the Site to condominium ownership during the Affordability Period without the prior written approval of the Agency, which approval the Agency may grant, withhold or deny in their sole and absolute discretion.

B. Affordable Housing. Except as provided hereinbelow, commencing upon and throughout the Affordability Period, the Developer covenants and agrees that the Affordable Units in the Project shall be operated and maintained for affordable housing purposes and made available for occupancy exclusively to Qualified Lower Income Households, Qualified Very Low Income Households, and Qualified Extremely Low Income Households, as set forth herein, at an Affordable Rent in accordance with the provisions of this Regulatory Agreement. It is the intent of the Agency that the Affordable Units qualify as replacement housing and inclusionary housing pursuant to Section 33413 of the Community Redevelopment Law in furtherance of the Agency’s affordable housing goals and objectives and the requirements resulting from anticipated projects including demolition and new construction in the City’s redevelopment project areas and within the territorial jurisdiction of the Agency.

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Packet Pg. 262 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 7 C. Income Requirements. Prior to leasing the Affordable Units and annually thereafter, the Developer shall certify the eligibility of each tenant applicant as a Qualified Lower Income Household, Qualified Very Low Income Household, or Qualified Extremely Low Income Household, as may be applicable. The Developer shall, upon request by the Agency, complete such certification on forms provided by the Agency. The Developer shall submit such income certification and such additional information as may be required in the future by the Agency. Such supporting documentation shall include true copies of income tax returns from the tenant applicant for the most recent tax year in which a return was filed and at least one of the following:
(1) two (2) paycheck stubs from the tenant’s two (2) most recent pay periods; (2) an income verification certification from the tenant’s employer; (3) an income verification certification from the Social Security Administration and/or the California Department of Social Services if the tenant receives assistance from such agencies, or
(4) an alternate form of income verification reasonably requested by the City or the Agency if none of the above forms of verification is available to the Developer.

D. Determination of Affordable Rent. The Affordable Units shall be rented at Affordable Rent.
(1) Rent Schedule and Utility Allowance. The Agency will establish maximum monthly allowances for utilities and services to be used by the Developer in calculating Affordable Rent. The Developer shall submit to the Agency for review and approval the Affordable Rent proposed by the Developer for the Affordable Units. The maximum monthly rent must be recalculated by the Developer and reviewed and approved by the Agency annually. (2) Increases in Tenant Income. A Unit shall qualify as an Affordable Unit as required by this Regulatory Agreement despite a temporary noncompliance with this Section D, if the noncompliance is caused by increases in the incomes of existing tenants and if actions satisfactory to the Agency are being taken to ensure that all vacancies are filled in accordance with this Section until the noncompliance is corrected. A Household that qualifies as a Qualified Lower Income Household, Qualified Very Low Income Household, or Qualified Extremely Low Income Household, prior to occupancy of an Affordable Unit, shall be deemed to continue to be so qualified until such time as recertification of such Household’s income demonstrates that the Household no longer qualifies as a Qualified Lower Income Household, Qualified Very Low Income Household, or Qualified Extremely Low Income Household, as may be applicable.

A Qualified Lower Income Household, Qualified Very Low Income Household, or Qualified Extremely Low Income Household, whose income increases to an amount that exceeds the maximum qualifying income may continue to occupy his or her Affordable Unit and be charged rent, including a reasonable utility allowance, equal to the maximum allowable rent determined pursuant to the Tax Credit Regulatory Agreement.
(3) Adjustment of Affordable Rent. Affordable Rent may change as changes in the applicable gross rent amounts, the income adjustments, or the monthly allowance for utilities

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Packet Pg. 263 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 8 and services warrant. Any increase in rents is subject to the provisions of outstanding leases. The Developer must provide Households occupying the Affordable Units not less than thirty (30) calendar days prior written notice before implementing any rent increase.

E. Tenant Protections.
(1) Rental Agreement/Lease. The Developer shall execute or cause to be executed a written rental agreement/lease with the Qualified Lower Income Household, Qualified Very Low Income Household, or Qualified Extremely Low Income Household, as may be applicable, occupying the Affordable Unit identifying by name all permitted occupants. The rental agreement/lease must be in a form reasonably approved by the Agency and must be for not less than six (6) months, unless otherwise mutually agreed by the tenant and the Developer. (2) Prohibited Rental Agreement/Lease Terms. The rental agreement/lease shall not contain any of the following provisions:
a. Agreement to be sued. Agreement by the tenant to be sued, to admit guilt, or to a judgment in favor of the Developer in a lawsuit brought in connection with the lease;
b. Treatment of property. Agreement by tenant that the Developer may take, hold, or sell personal property of household members without notice to the tenant and a court decision on the rights of the parties.

This prohibition, however, does not apply to an agreement by the tenant concerning disposition of personal property remaining in the Unit after the tenant has moved out of the Unit. The Developer may dispose of this personal property in accordance with state law; c. Excusing Developer from responsibility. Agreement by the tenant not to hold the Developer or the Developer’s agents legally responsible for any action or failure to act, whether intentional or negligent; d. Waiver of notice. Agreement of the tenant that the Developer may institute a lawsuit without notice to the tenant;
e. Waiver of legal proceedings. Agreement by the tenant that the Developer may evict the tenant or household members without instituting a civil court proceeding in which the tenant has the opportunity to present a defense, or before a court decision on the rights of the parties;
f. Waiver of a jury trial. Agreement by the tenant to waive any right to a trial by jury;
g. Waiver of right to appeal court decision. Agreement by the tenant to waive the tenant’s right to appeal, or to otherwise challenge in court, a court decision in connection with the lease; and

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Packet Pg. 264 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 9 h. Tenant chargeable with cost of legal actions regardless of outcome.

Agreement by the tenant to pay attorneys’ fees or other legal costs even if the tenant wins in a court proceeding by the owner against the tenant. The tenant, however, may be obligated to pay costs if the tenant loses.

F. Termination of Tenancy. The Developer may not terminate the tenancy of a tenant of the Project except for an uncured violation(s) of the terms and conditions of the lease; for violation of applicable federal, state, or local law; or for other good cause. Any termination or refusal to renew must be preceded by not less than thirty (30) calendar days’ notice by the Developer’s service upon the tenant of a written notice specifying the grounds for the action.

G. Tenant Selection. The Developer shall submit for the approval of the Agency a management and marketing plan for rental of the Affordable Units. The Developer’s marketing of the Affordable Units shall be in compliance with federal and state fair housing laws. The marketing plan, at a minimum, requires publicizing the availability of the Affordable Units within the City, such as notices in any City-sponsored newsletter, advertising in local newspapers, and notice in City offices. In the event the City implements a master waiting list for affordable housing in the City (“Master List”), then the Developer shall provide notices to persons on the Master List of the availability of the Affordable Units, prior to undertaking other forms of marketing. The Developer shall give the persons on the Master List not fewer than fifteen (15) calendar days after receipt of such notice to respond by submitting application forms for rental of the Affordable Units.

Selection of residents shall be made based upon the Master List, rather than on a first-come, firstserve basis. Provided, however, (i) tenants of the Affordable Units shall meet the income requirements set forth herein and tenancy and eligibility shall be in conformance with the terms and standards set forth in the management marketing plan and no preference may be used for the purpose or effect of delaying or otherwise denying admission to the Property or Unit based on the race, color, national origin, disability, mental or physical, sex, gender, gender identity, gender expression, genetic information, religion, marital status, familial status, or source of income of an applicant household; and (ii) nothing herein shall restrict the Developer from screening tenants through the application of criteria which is lawful and customary in apartment management in Imperial County and otherwise consistent with federal, state and local regulations and restrictions related to the financing for the Project.

H. Selection of Tenants. The Developer must adopt written tenant selection policies and criteria approved the Agency that are consistent with the purpose of providing housing for Qualified Lower Income Households, Qualified Very Low Income Households, and Qualified Extremely Low Income Households, and that provide for the selection of tenants from written waiting list in chronological order of their application insofar as it practicable and the prompt written notification to any rejected applicant of the grounds for any rejection. Absent a Master List described above, selection of tenants shall be made randomly within the following levels of priority, rather than a first-come, first serve basis:
(1) First Priority. Households which are displaced from their primary residence as a result of an action of the City or the Agency, a condominium conversion involving the household’s residence, expiration of affordable housing covenants applicable to such residence, or

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Packet Pg. 265 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 10 closure of a mobile home or trailer park community in which the household’s residence was located, and the household resided in such housing as the household’s primary place of residence for at least two years prior to such action or event.
(2) Second Priority. Households which meet one of the following criteria: (i) households which are displaced from their primary residence as a result of an action of the City or the Agency, a condominium conversion involving the household’s residence, expiration of affordable housing covenants applicable to such residence, or closure of a mobile home or trailer park community in which the household’s residence was located, and the household resided in such housing as the household’s primary place of residence for at least one year but less than two years prior to such action or event; (ii) households with at least one member who resides within the City, as that person’s primary place of residence; (iii) households with at least one member who works or has been hired to work within the City, as that person’s principal place of full-time employment; or (iv) households with at least one member who is expected to live within the City as a result of a bona fide offer of employment within the City. (3) Third Priority. Other Qualified Lower Income Households, Qualified Very Low Income Households, and Qualified Extremely Low Income Households who do not meet the criteria for first priority or second priority above.

I. Compliance with Use and Occupancy Laws. The Developer agrees that for each lease, the Developer shall comply with all applicable state and local laws, statutes, ordinances, rules and regulations, which in any way restrict the use and occupancy and resale of the Site.

J. Nondiscrimination. There shall be no discrimination against or segregation of any person or group of persons, on account of race, color, national origin, disability, mental or physical, sex, gender, gender identity, gender expression, genetic information, religion, marital status, familial status, or source of income in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of any Unit nor shall the Developer establish or permit any such practice or practices of discrimination or segregation with reference to the location, subtenants, or vendees of any Unit or in connection with the employment of persons for the operation and management of the Site.

All deeds, rental agreements, leases or contracts made or entered into by the Developer as to the Unit or the Site or portion thereof, shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses:

1. In deeds: “The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, national origin, disability, mental or physical, sex, gender, gender identity, gender expression, genetic information, religion, marital status, familial status, or source of income in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, subleases or vendees in the land herein conveyed. The foregoing covenants shall run with the land.”

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Packet Pg. 266 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 11 2. In leases: “The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions:
“There shall be no discrimination against or segregation of any person or group of persons on account of race, color, national origin, disability, mental or physical, sex, gender, gender identity, gender expression, genetic information, religion, marital status, familial status, or source of income in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subleases, subtenants or vendees in the premises herein leased.”

3. In contracts: “There shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, national origin, disability, mental or physical, sex, gender, gender identity, gender expression, genetic information, religion, marital status, familial status, or source of income, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, subleases or vendees of the premises.”
The covenants established in this Regulatory Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of the Agency, its successors and assigns, the Agency and any successor in interest to the Site, or any part thereof.

The nondiscrimination covenants shall remain in effect in perpetuity.

K. No Nuisance. The Developer shall not maintain, cause to be maintained, or allow to be maintained on or about the Site any public or private nuisance, including, without limitation, the conduct of criminal activities set forth in the nuisance abatement provisions of the Uniform Controlled Substances Act (Health & Safety Code Section 11570, et seq.) as currently exists or as may be amended from time to time, or the Street Terrorism Enforcement and Prevention Act (Penal Code Section 186.22, et seq.), as currently exists or as may be amended from time to time.

L. No Hazardous Material Activity. The Developer shall not engage in any Hazardous Material Activity and shall comply with all Governmental Regulations in connection with the construction and operation of the Project.

In addition, the Developer shall take all necessary precautions to prevent the release into the environment of any Hazardous Material which are located in, on or under the Site. Such precautions shall include compliance with all Governmental Regulations with respect to Hazardous Substance. In addition, the Developer shall install and utilize such equipment and implement and adhere to such procedures as are consistent with commercially reasonable standards as respects the disclosure, storage, use, removal and disposal of Hazardous Substance.

Notwithstanding the foregoing, this Regulatory Agreement shall not prohibit the use of such products in quantities as are customarily used in the construction, maintenance, rehabilitation or

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Packet Pg. 267 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 12 management of residential developments or associated buildings and grounds, or used in residential activities in a manner typical of other comparable residential developments, or substances commonly ingested by a significant population living within the Project including without limitation alcohol, aspirin, tobacco and saccharine.

3. OPERATION AND MANAGEMENT OF THE PROJECT
A. Compliance with Agreement. The Developer shall comply with all the terms and provisions of the Disposition Agreement and all applicable Governmental Regulations.

B. Taxes and Assessments. The Developer shall pay all real and personal property taxes, assessments and charges and all franchise, income, employment, withholding, sales, and other taxes assessed against it, or payable by it, at such times and in such manner as to prevent any penalty from accruing, or any lien or charge from attaching to the Site; provided, however, that the Developer shall have the right to contest in good faith, any such taxes, assessments, or charges.

In the event the Developer exercises its right to contest any tax, assessment, or charge against it, the Developer, on final determination of the proceeding or contest, shall immediately pay or discharge any decision or judgment rendered against it, together with all costs, charges and interest.

C. Operation and Management. The Developer shall manage, operate and maintain the Project in first class condition and in accordance with professional property management standards for similar properties in the Southern California area and shall maintain or cause to be maintained the interior and exterior of the Unit in a decent, safe and sanitary manner. The Unit shall be maintained in accordance with the requirements of the City’s Municipal Code and all applicable Governmental Regulations.

The parties acknowledge that the Agency is interested in the long term management and operation of the Project and in the qualifications of any person or entity retained by the Developer for that purpose ( “Property Manager”), including the Developer as Property Manager.

The Developer shall submit for the reasonable approval of the Agency, a detailed “Management Plan” which sets forth in detail the duties of the Property Manager, the tenant selection process, a security system and crime prevention program, the procedures for the collection of rent, the procedures for monitoring of occupancy levels, the procedures for eviction of tenants, the rules and regulations of the Project and manner of enforcement, a standard lease form, and other matters relevant to the management of the Project. The Developer may from time to time submit amendments and modifications to the Management Plan for the reasonable approval of the Agency. The management of the Project shall be in compliance with the approved Management Plan.

The Developer may contract for property management services with an experienced and qualified property management entity (based upon the criteria set forth hereinbelow) approved by the Agency which approval shall not be unreasonably withheld. In the Event of Default by the Property Manager of the requirements set forth in this Regulatory Agreement, the Agency shall provide notice to the Developer of such default and the Developer shall use its best efforts to correct such default. Upon failure by the Property Manager and/or the Developer to cure such default within thirty (30) calendar days of written notice by the Agency, the Agency shall have the right to require the Developer to immediately remove and replace the Property Manager with

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Packet Pg. 268 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 13 another property manager or property management company who is reasonably acceptable to the Agency and who has not less than five (5) years’ experience in property management, including experience managing multifamily residential developments of the size, quality and scope of the Project.

The fee paid to any Property Manager shall not exceed the reasonable and customary fees paid to such property managers for similar rental properties in Imperial County.

Other fees and payments shall be consistent with prevailing market rates for the services performed and goods provided in consideration for such fees and payments. The Developer shall ensure that the expenses of operating the Project do not materially exceed the budget which has been approved by the Agency. The Developer shall annually provide to the Agency a detailed accounting of operating expenses and shall make available its books and records to the Agency for inspection and copying, upon reasonable advance notice during its normal hours of business.

D. Reserve Requirements. The Developer shall, or shall cause the Property Manager, if any, to, set aside not less than Two Hundred Dollars ($250.00) for the Unit in the Project per year or such greater amount established and required by TCAC or other permanent lender or investor subject to annual adjustment, if any, into a separate interest-bearing trust account (the “Capital Replacement Reserve”). The amount required to be placed into the Capital Replacement Reserve shall increase at the rate determined by the permanent lender or investor. Funds in the Capital Replacement Reserve shall be used for capital replacements to the Project fixtures and equipment which are normally capitalized under generally accepted accounting principles. The non-availability of funds in the Capital Replacement Reserve does not in any manner relieve the Developer of the obligation to undertake necessary capital repairs and improvements and to continue to maintain the Project in the manner prescribed herein. Not less than once per year, the Developer, at its expense, shall submit to the City and the Agency an accounting for the Capital Replacement Reserve.

E. Operating Reserve. The Developer shall not be required to set aside any Operating Reserves for this Project.

F. Record Keeping. The Developer shall annually provide to the Agency its Annual Financial Statement for the preceding year and shall make available its books and records to the Agency for inspection and copying, upon reasonable advance notice during its normal hours of business. As a part of the monitoring and compliance with this Regulatory Agreement, the Developer shall annually cause Households occupying a Unit in the Project to complete an income certification in accordance with Section 2.C. of this Regulatory Agreement. The Agency relies upon the information contained in such certifications to satisfy its reporting and record keeping requirements pursuant to the Community Redevelopment Law. In the event the Developer fails to submit to the Agency all of the documentation required by this Regulatory Agreement, the Developer shall be in default of this Regulatory Agreement. Upon failure by the Developer to cure such default within thirty (30) calendar days of written notice by the Agency, the Agency may seek all available remedies as set forth in this Regulatory Agreement.

G. Right of Entry For Inspection. Representatives of the Agency shall be entitled to enter the Site, upon at least forty-eight (48) hours’ notice during normal business hours, to monitor compliance with this Regulatory Agreement, to inspect the records of the Project with respect to

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Packet Pg. 269 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 14 the Unit, and to conduct an independent audit of such records. The Developer agrees to cooperate with the Agency in making the Site available for such inspection. If for any reason the Agency is unable to obtain the Developer’s consent to such an inspection, the Developer understands and agrees that the Agency may obtain at the Developer’s expense an administrative inspection warrant or other appropriate legal order to obtain access to such records. The Developer agrees to maintain records in a business-like manner on the Site or in a location approved in writing by the Director and to make such records available to the Agency upon forty-eight (48) hours’ notice. Unless the Agency otherwise approves, such records shall be maintained throughout the Affordability Period.

4. OBLIGATION TO CONSTRUCT, MAINTAIN, REPAIR AND REBUILD A. Construction Covenant. The Developer covenants and agrees to complete the construction in accordance with the Disposition Agreement, including without limitation the Project Development and all approved plans, drawings, documents and permits issued by the City and/or other governmental agency exercising jurisdiction over the Project. (1) Labor Standards. The Developer shall comply with all applicable federal and state labor standards.
(2) Compliance with Governmental Regulations. The Developer shall carry out the design, construction and operation of the Project in conformity with applicable Governmental Regulations, including without limitation, all applicable labor standards, the City zoning and development standards, building, plumbing, mechanical and electrical codes, and all other provisions of the City Municipal Code, and all applicable disabled and handicapped access requirements, including without limitation the Americans With Disabilities Act, 42 U.S.C. Section 12101, et seq., as currently exists or as may be amended from time to time, Government Code Section 4450, et seq., as currently exists or as may be amended from time to time, Government Code Section 11135, et seq., as currently exists or as may be amended from time to time, and the California Building Standards Code, Health and Safety Code Section 18900, et seq. as currently exists or as may be amended from time to time.

B. Schedule of Performance. The Developer covenants and agrees to commence the Project and to diligently prosecute to completion the Project in accordance with the Schedule of Performance (Attachment No. 4 to the Disposition Agreement). Before commencement of development of the Project, the Developer shall secure or cause to be secured any and all permits and permit ready letters which may be required by the City or other governmental agency affected by such work. Upon satisfactory completion of the construction of the Project as determined by the Agency and upon written request therefor by the Developer, the Agency shall record the Release of Construction Covenants releasing the Developer from the covenant to construct set forth above.

C. Maintenance and Replacement. Except for the normal wear and tear, the Developer shall, at its sole cost and expense, maintain and repair the Site keeping the same in first class condition and in a safe, decent and sanitary condition, including the Units, walkways, driveway and landscaping, and from time to time make all necessary and proper repairs, renewals and replacements as they may be required by this Regulatory Agreement and by all applicable Municipal Code and Uniform Code provisions. The Developer shall manage and maintain the

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Packet Pg. 270 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 15 Project in accordance with all applicable housing quality standards and local code requirements, concerning marketing, operation, maintenance, repair, security, rental policy and method of selection of tenants.

D. Interior Maintenance. The Developer shall maintain the interior of buildings, including carpet, drapes and paint, in clean and habitable condition.

E. Exterior Building Maintenance. All exterior, painted surfaces shall be maintained at all times in a clean and presentable manner, free from chipping, cracking and defacing marks.

All graffiti and defacement of any type, including marks, words and pictures must be removed and any necessary painting or repair completed within seventy-two (72) hours of their creation or within seventy-two (72) hours after notice to the Developer.

F. Landscaping. All landscaped parcels and all front and side-yard setback areas that are not buildings, driveways or walkways shall be adequately and appropriately landscaped in accordance with minimum standards established by the City and shall be maintained in sound horticultural condition in accordance with the standards established by the City from time to time.

No structure, improvement or other non-plant material shall be constructed or otherwise placed on the landscaped areas of the Project without prior written approval by the Director.

The following minimum standards shall apply to all landscaped areas of the Project:
(1) lawn grasses shall not exceed six (6) inches in height; (2) hedges shall be trimmed; (3) no trees, shrubbery, lawns, and other plant life shall be dying from lack of water or other necessary maintenance; (4) no trees or shrubbery shall grow uncontrolled without proper pruning; (5) no vegetation shall be overgrown so as to be likely to harbor rats or vermin; (6) no dead, decayed or diseased trees, weeds and other vegetation shall be allowed. In addition to the forgoing, no yard areas shall be left unmaintained, including: (1) no broken or discarded furniture, appliances and other household equipment stored in yard areas for periods exceeding one (1) week; (2) no packing boxes, lumber, trash, dirt and other debris stored in yards for periods exceeding one (1) week in areas visible from public property or neighboring properties; (3) no unscreened trash cans, bins or containers stored for unreasonable periods in areas visible from public property or neighboring properties; and (4) no vehicles parked or stored in other than approved parking areas.

G. Right To Enter To Cure. If at any time the Developer fails to maintain the Site in accordance with this Section 4 and such condition is not corrected within forty-eight (48) hours after written notice from the Agency with respect to graffiti, debris, waste material, and general maintenance, or thirty (30) calendar days after written notice from the Agency with respect to landscaping and building improvements with such additional time as may be reasonably necessary to diligently prosecute the cure to completion, then the Agency, in addition to whatever remedies it may have at law or at equity, shall have the right to enter upon the Site and perform all acts and work necessary to protect, maintain, and preserve the improvements and landscaped areas on the Site, and to attach a lien upon the Site, or to assess the Site, in the amount of the expenditures arising from such acts and work of protection, maintenance, and preservation by the Agency and/or costs of such cure, including a fifteen percent (15%) administrative charge, which amount shall be promptly paid by the Developer upon demand.

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Packet Pg. 271 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 16 H. Damage and Destruction; Developer’s Duty to Rebuild. If all or any portion of the Site and the improvements thereon is damaged or destroyed by fire or other casualty, it shall be the duty of the Developer to rebuild, repair or construct said portion of the Site and/or the improvements in a timely manner which will restore it to El Centro Municipal or Building Code compliance condition as approved by the City and the Agency.

In furtherance of the requirements of this Section 4.H., the Developer shall keep the improvements on the Site insured by carriers at all times satisfactory to the Agency against loss by fire and such other hazards (other than earthquake), casualties, liabilities and contingencies as included within an all risk extended coverage hazard insurance policy in an amount of the full replacement cost of the improvements as required by the Disposition Agreement. In the event of loss, the Developer shall give prompt notice to the insurance carrier and the Agency.

If the Site is abandoned by the Developer, or if the Developer fails to respond to the Agency within thirty (30) calendar days from the date notice is mailed by the Agency to the Developer that the insurance carrier offers to settle a claim for insurance benefits, the Agency is authorized to collect and apply the insurance proceeds at its option either to restoration or repair of the Site or to the sums secured by the Agency Deed of Trust (as those terms are defined in the Disposition Agreement).

I. Time Limitation. Upon damage to the Site or the improvements thereon, the Developer shall be obligated to proceed with all due diligence hereunder and commence reconstruction within one year after the damage occurs and complete reconstruction within a term deemed acceptable by the parties after damage occurs, or if appropriate, to demolition and vacation of the Site within one year, unless prevented by causes beyond its reasonable control.

5. COVENANTS
A. Affordability Period. The provisions of this Regulatory Agreement shall apply to the Site throughout the Affordability Period. This Regulatory Agreement shall bind any successor, heir or assign of the Developer, whether a change in interest occurs voluntarily or involuntarily, by operation of law or otherwise, with or without the approval of the Agency, except as expressly released by the Agency. The Agency transfers the Agency Property on the condition and in consideration of this provision, and would not do so otherwise.

B. Covenants to Run with the Land. The Agency and the Developer hereby declare their express intent that the covenants and restrictions set forth in this Regulatory Agreement shall run with the land, and shall bind all successors in title to the Site. Each and every contract, deed or other instrument hereafter executed covering or conveying the Site or any portion thereof shall be held conclusively to have been executed, delivered and accepted subject to such covenants and restrictions, regardless of whether such covenants or restrictions are set forth in such contract, deed or other instrument, unless the Agency expressly releases such conveyed portion of the Site from the requirements of this Regulatory Agreement.

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Packet Pg. 272 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 17 6. ENFORCEMENT AND REMEDIES
A. Remedies. Subject to the notice and cure rights of the Developer set forth in Section 8 of the Disposition Agreement, in the event of default or breach of any of the terms or conditions of this Regulatory Agreement by the Developer, its heirs, executors, administrators or assigns, the Agency may pursue the remedy thereof by any and all means of enforcement, both in equity and at law, as provided by the laws of the State of California, including, but not limited to, injunctive relief and/or specific performance.

B. Rights of the City. The City of El Centro has the right to enforce all of the provisions of this Regulatory Agreement. This Regulatory Agreement does not in any way infringe on the right or duties of the City to enforce any of the provisions of the Municipal Code including, but not limited to, the abatement of dangerous buildings. In addition to the general rights of enforcement, the City shall have the right, through its agents and employees, to enter upon any part of the Site for the purpose of enforcing the California Vehicle Code, and the ordinances and other regulations of the City, and for maintenance and/or repair of any or all publicly owned utilities.

C. Jurisdiction and Venue. Legal actions must be instituted and maintained in the Superior Court of Imperial County, State of California. Owner specifically waives any rights provided to it pursuant to California Code of Civil Procedure Section 394 or state statutes or judicial decisions of like effect.

D. Nuisance. The result of every act or omission whereby any of the covenants contained in this Regulatory Agreement are violated in whole or in part is hereby declared to be and constitutes a nuisance, and every remedy allowable at law or equity, against a nuisance, either public or private, shall be applicable against every such result and may be exercised by any owner or its successors in interest, without derogation of the Agency’s rights under law.

E. Right of Entry. The Agency has the right of entry at reasonable hours after reasonable attempts to contact the Developer, to effect emergency repairs or maintenance which the Developer has failed to perform. Subsequent to sixty (60) calendar days’ written notice to the Developer specifically outlining the noncompliance, the Agency shall have the right of entry at reasonable hours to enforce compliance with this Regulatory Agreement which the Developer has failed to perform.

F. Costs of Repair. The costs borne by the Agency of any such repairs or maintenance emergency and/or non-emergency, shall become a charge for which the Developer shall be responsible; and may, if unpaid, be assessed as a lien against the Site.

G. Cumulative Remedies. The remedies herein provided for breach of the covenants contained in this Regulatory Agreement shall be deemed cumulative, and none of such remedies shall be deemed exclusive.

H. Failure to Enforce. The failure to enforce any of the covenants contained in this Regulatory Agreement shall not constitute a waiver of the right to enforce the same thereafter.

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Packet Pg. 273 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 18 7. HOLD HARMLESS
Except to the extent of the City and the Agency’s active negligence or willful misconduct, the Developer agrees to defend and to hold the City and the Agency and its officers, agents, employees, representatives, elected and appointed boards and officials harmless from liability for damage or claims for any type of damage including, but not limited to, personal injury and claims for property damage, which may arise from the activities of the Developer or those of the Developer’s contractors, subcontractors, agents, employees or other persons acting on the Developer’s behalf and which relate to the Project. The Developer agrees to and shall defend the Agency and its respective officers, agents, employees, representatives, elected and appointed boards and officials from any action for damages caused or alleged to have been caused by reason of the Developer’s activities in connection with the Project.

8. ASSIGNMENT OF AGREEMENT
This Regulatory Agreement shall be binding upon the Developer, its executors, administrators and assigns and all persons claiming under or through the Developer. Wherever this Regulatory Agreement employs the term “Developer,” it shall be deemed to include the Developer, its executors, administrators and assigns and all persons claiming under or through the Developer.

Assignment of this Regulatory Agreement shall be limited to authorized assignees of the Disposition Agreement in compliance with Section 2 thereof.

9. THIRD PARTY BENEFICIARIES
This Regulatory Agreement is made and entered into for the sole protection and benefit of the Agency, its successors and assigns, and the Developer, its permitted successors and assigns, and no other person or persons shall have any right of action hereon.

10. RECORDATION
The Developer agrees that this Regulatory Agreement and any amendment or cancellation hereof shall be recorded in the official records of Imperial County by the Developer within ten (10) calendar days of the date of this Regulatory Agreement and within ten (10) calendar days after any amendment or cancellation hereof.

11. NOTICE
Written notice, demands and communications between the City, the Agency and the Developer shall be sent by first-class registered or certified mail, postage prepaid, return receipt requested, or by private courier service which provides evidence of delivery. Unless a different address is given by any party as provided in this Section, all such communications will be addressed as follows:

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Packet Pg. 274 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 19 To Developer: [TBD AFFORDABLE OWNER]
6339 Paseo del Lago
Carlsbad, CA 92011
Attn: Cheri Hoffman
Copies to:

To Agency: Successor Agency to the Redevelopment Agency for the City of El Centro
Attn: Executive Director
1275 Main Street
El Centro, California 92522
Copies to: Cole Huber LLP
Attn: Elizabeth Martyn, City Attorney for El Centro
2855 East Guasti Road, Suite 402
Ontario, California 91761

Any Notice shall be deemed received immediately if delivered by hand and shall be deemed received on the third (3rd) calendar day from the date it is postmarked if delivered by registered or certified mail. Each party shall promptly notify the other party of any change(s) of address to which notice shall be sent. Any address for service of notice on any party may be changed by that party serving a notice upon the other of the new address, except that any change of address to a post office box shall not be effective unless a street address is also specified for use in effectuating personal service.

12. WAIVER
Failure by a party to insist upon the strict performance of any of the provisions of this Regulatory Agreement by the other party or the failure by the party to exercise its rights under or upon a default by the other party herein shall not constitute a waiver of such party’s right to demand strict compliance from such other party in the future.

13. SUBORDINATION
This Regulatory Agreement and the covenants contained herein shall be subordinate to the senior construction loan, and when converted into its permanent phase, permanent loan, and the regulatory agreement recorded in connection with any award of low-income housing tax credits.

14. SEVERABILITY
If any one or more of the provisions contained in this Regulatory Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, then such provision or provisions shall be deemed severable from the remaining provisions contained in this Regulatory Agreement, and this Regulatory Agreement shall be construed as if such invalid, illegal or unenforceable provision(s) had never been contained herein.

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Packet Pg. 275 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 20 15. CAPTION AND PRONOUNS
The captions and headings of the various sections of this Regulatory Agreement are for convenience only, and are not to be construed as confining or limiting in any way the scope or intent of the provisions hereof. Whenever the context requires or permits, the singular shall include the plural, the plural shall include the singular, and masculine, feminine and neuter shall be freely interchangeable.

16. ATTORNEYS’ FEES
In any action to interpret or enforce any provision of this Regulatory Agreement, the prevailing party shall be entitled to its costs and reasonable attorneys’ fees.

17. MODIFICATION OF AGREEMENT
This Regulatory Agreement may be modified or amended by mutual consent of the Developer and the Agency provided that all amendments are in writing and signed by all of the parties hereto.

18. SOLE AND ONLY AGREEMENT
This Regulatory Agreement, the Disposition and Development Agreement and all of the attachments thereto and incorporated therein integrate all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the parties with respect to all or any part of the Site. In the event of a conflict between this Regulatory Agreement and Disposition Agreement, the provisions of this Regulatory Agreement shall control.

The Agency and the Developer acknowledge and agree that neither of them has made any representation with respect to the subject matter of this Regulatory Agreement or any representations inducing the execution and delivery, except representations set forth herein, and each party acknowledges that it has relied on its own judgment in entering this Regulatory Agreement. The Agency and the Developer further acknowledge that all statements or representations that heretofore may have been made by either of them to the other are void and of no effect, and that neither of them has relied thereon in its dealings with the other. (Signatures on following page.)

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Packet Pg. 276 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 21 IN WITNESS WHEREOF, the parties hereto have executed this Regulatory Agreement as of the date and year set forth below.
“DEVELOPER”
[TBD AFFORDABLE OWNER],
a California limited partnership
By:_________________________________
Name:

Title:

By: __________________________________
Name:

Title:
“AGENCY”

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY OF THE CITY

OF EL CENTRO
Dated: _____________________ By: ________________________________ Executive Director
ATTESTED TO:

By:

Agency Secretary
APPROVED AS TO FORM:

By:

Agency General Counsel

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Packet Pg. 277 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 1 EXHIBIT “A”

LEGAL DESCRIPTION
(ATTACHED)

17.b
Packet Pg. 278 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) BEING A PORTION OF PARCEL 3 OF MAP ON FILE IN BOOK 8, PAGE 12 OF PARCEL MAPS, WITHIN TRACT 209, TOWNSHIP 15 SOUTH, RANGE 13 AND 14 EAST, SAN BERNARDINO MERIDIAN, IN

THE CITY OF EL CENTRO, COUNTY OF IMPERIAL, STATE OF CALIFORNIA, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

LEGAL DESCRIPTION

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Packet Pg. 279 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 2 ATTACHMENT NO. 8

NOTICE OF AFFORDABILITY RESTRICTIONS

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO: )
)
)
Successor Agency to the Redevelopment )
Agency for the City of El Centro )
1275 Main Street )
El Centro, CA 92243 )
Attn: Executive Director )
)
Project: Jacaranda Gardens Phase I )
(Space above for Recorder’s Use Only)
This document is exempt from the payment of a recording fee pursuant to Government Code Section 27383.

NOTICE OF AFFORDABILITY RESTRICTIONS

ON TRANSFER OF PROPERTY
In accordance with Health and Safety Code Section 33334.3(f)(3)(B), notice is hereby given that certain real property located at 1625 N. Waterman Avenue, in the City of El Centro, Imperial County, State of California, and known as Assessor’s Parcel Number _________ and more particularly described in Exhibit “A” attached hereto and incorporated herein by reference, is subject to certain affordability covenants and restrictions identified in the Regulatory Agreement by and between SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF EL CENTRO (“Agency”), and [TBD AFFORDABLE OWNER], a California limited partnership (“Owner”), recorded concurrently herewith and incorporated herein by this reference.

The affordability covenants and restrictions set forth in the aforementioned Regulatory Agreement shall expire fifty-five (55) years after the recordation of the Release of Construction Covenants
This notice is prepared for notice and recordation purposes only, and in no way modifies the terms, conditions, provisions and covenants set forth in the Regulatory Agreement. In the event of any inconsistency between the terms, conditions, provisions and covenants set forth in the Regulatory Agreement and this notice, the terms, conditions, provisions and covenants set forth in the Regulatory Agreement shall prevail.
(Signatures on following page.)

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Packet Pg. 280 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 3 IN WITNESS WHEREOF, the parties hereto have executed this Notice of Affordability Restrictions as of the date and year set forth below.
“OWNER”
[TBD AFFORDABLE OWNER],
a California limited partnership
By:_________________________________
Name:

Title:

By: __________________________________
Name:

Title:
“AGENCY”

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY OF THE CITY

OF EL CENTRO
By: ________________________________
Executive Director
Attested to:

By:_________________________________
Agency Secretary
Approved as to form:

By:_________________________________
Agency General Counsel

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Packet Pg. 281 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 1 EXHIBIT “A”

LEGAL DESCRIPTION
(ATTACHED)

17.b
Packet Pg. 282 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) BEING A PORTION OF PARCEL 3 OF MAP ON FILE IN BOOK 8, PAGE 12 OF PARCEL MAPS, WITHIN TRACT 209, TOWNSHIP 15 SOUTH, RANGE 13 AND 14 EAST, SAN BERNARDINO MERIDIAN, IN

THE CITY OF EL CENTRO, COUNTY OF IMPERIAL, STATE OF CALIFORNIA, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

LEGAL DESCRIPTION

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Packet Pg. 283 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 2 ATTACHMENT NO. 9

AGENCY DEED OF TRUST

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO: )
)
)
Successor Agency to Redevelopment )
Agency for the City of El Centro )
1275 Main Street )
El Centro, CA 92243 )
Attn: Executive Director )
)
Project: Jacaranda Gardens Phase I )
(Space above for Recorder’s Use Only)
This document is exempt from the payment of a recording fee pursuant to Government Code Section 27383.

DEED OF TRUST, FIXTURE FILING AND ASSIGNMENT OF RENTS

THIS DEED OF TRUST, FIXTURE FILING AND ASSIGNMENT OF RENTS (“Deed of Trust”) is made as of ____________, 20__ by [TBD AFFORDABLE OWNER], a California limited partnership (“Trustor”), whose address is 6339 Paseo del Lago, Carlsbad, CA 92011 to First American Title Insurance Company (“Trustee”), for the benefit of the

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF EL CENTRO (“Beneficiary”).

THIS DEED OF TRUST is given, inter alia, for the purpose of securing the obligation of Trustor to repay Beneficiary all principal and interest due in connection with that certain loan in the original principal amount of One Million Two Hundred Seventeen Thousand One Hundred Forty-Three Dollars ($1,217,143) made by Beneficiary for the benefit of Trustor (“Agency Loan”), evidenced by that certain Agency Promissory Note executed by Trustor in favor of Beneficiary, dated of even date herewith (“Note”), and made in accordance with that certain Disposition, Development, and Loan Agreement by and between Beneficiary and Trustor, dated concurrent herewith (“Loan Agreement”), and the performance of Trustor’s obligations thereunder and under this Deed of Trust and the Regulatory Agreement as hereinafter defined. The Agency Loan shall be made for the acquisition of land located at 1625 N. Waterman Avenue in the City of El Centro, identified as Accessor’s Parcel Number _________(“Property”), which shall support construction of improvements thereon containing ninety-six (96) units, including ninety-five (95) restricted units, and any improvements appurtenant thereto by the Trustor in accordance with the Loan Agreement (“Project”).

FOR GOOD AND VALUABLE CONSIDERATION, including the financial assistance herein recited and the trust herein created, the receipt of which is hereby acknowledged, Trustor hereby irrevocably grants, transfers, conveys and assigns to Trustee, IN TRUST, WITH POWER

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Packet Pg. 284 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 3 OF SALE, for the benefit and security of Beneficiary, under and subject to the terms and conditions hereinafter set forth, the Property;
TOGETHER WITH any and all buildings and improvements now or hereafter erected on the Property including, without limitation, Trustor’s interest in fixtures, tenements, attachments, appliances, equipment, building systems, machinery, and other articles now or hereafter attached to the buildings and improvements (collectively, “Improvements”), all of which shall be deemed and construed to be a part of the real property;
TOGETHER WITH all earnings, rents, issues, profits, revenue, royalties, income, proceeds and other benefits, including, without limitation, prepaid rents and security deposits (collectively, “Rents”) derived from any lease, sublease, license, franchise or concession or other agreement (collectively, “Leases”) now or hereafter affecting all or any portion of the Property or the Improvements or the use or occupancy thereof,
TOGETHER WITH all interests, estates or other claims, both in law and in equity, which Trustor now has or may hereafter acquire in the Property or the Improvements, including, without limitation, all right, title and interest now owned or hereafter acquired by Trustor in and to any greater estate in the Property or the Improvements;
TOGETHER WITH all easements, tenements, hereditaments, appurtenances, rights-ofway and rights now owned or hereafter acquired by Trustor used or useful in connection with the Property or as a means of access thereto, including, without limiting the generality of the foregoing, all rights pursuant to any trackage agreement and all rights to the nonexclusive use of common drive entries, all oil and gas and other hydrocarbons and all other minerals and water and water rights and shares of stock evidencing the same;
TOGETHER WITH all leasehold estate, right, title and interest of Trustor in and to all leases, subleases, sub-tenancies, licenses, franchises, occupancy agreements and other agreements covering the Property, the Improvements or any portion thereof now or hereafter existing or entered into, and all right, title and interest of Trustor thereunder, including, without limitation, all cash or security deposits, prepaid or advance rentals, and deposits or payments of similar nature; TOGETHER WITH all right, title and interest of Trustor, now owned or hereafter acquired in and to any Property lying within the right-of-way of any street, open or proposed, adjoining the Property and any and all sidewalks, vaults, alloys and strips and gores of property adjacent to or used in connection with the Property;
TOGETHER WITH all the estate, interest, right, title, other claim or demand, both in law and in equity, including claims or demands with respect to the proceeds of insurance in effect with respect to the Property, which Trustor now has or may hereafter acquire in the Property or the Improvements and any and all awards made for the taking by eminent domain, or by any proceeding of purchase in lieu thereof, of the whole or any part of the interests described in this Deed of Trust, including, without limitation, any awards resulting from a change of grade of streets and awards for severance damages. The entire estate, property and interest hereby conveyed to Trustee may hereafter be collectively referred to as “Trust Estate.”

17.b
Packet Pg. 285 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 4 FOR THE PURPOSE OF SECURING:
(a) the payment of the sum of One Million Two Hundred Seventeen Thousand One Hundred Forty-Three Dollars ($1,217,143) or so much of such principal as may be disbursed pursuant to the Note, with non-compounding simple interest at 3% per annum [OR SUCH GREATER RATE OF INTEREST REQUIRED BY THE PROJECT TAX CREDIT INVESTOR], according to the terms of the Note, and any and all additions, modifications or extensions thereof; (b) performance of every obligation, covenant and agreement of Trustor contained in the Loan Agreement, the Note, and that certain Regulatory Agreement by and between Trustor and Beneficiary dated and recorded concurrently herewith (“Regulatory Agreement”) which includes among other covenants and restrictions, covenants of affordability, maintenance of the Project and restrictions on transfer of ownership of the Project and all modifications, extensions, renewals, and replacements thereof or any other agreement now or hereafter executed by Trustor which recites that the obligations thereunder are secured by this Deed of Trust and the Notice of Default (collectively, “Loan Documents”);
(c) payment of all sums advanced by Beneficiary or its successors and assigns, or Trustee, to enforce the Note, the Loan Agreement, the Regulatory Agreement or this Deed of Trust to protect the Trust Estate upon an Event of Default, with interest thereon at the rate of ten percent (10%) per annum (“Default Rate”) pursuant to the terms of the Note; (d) payment and performance of all other obligations of Trustor arising from any and all existing and future agreements with Beneficiary, or its successors or assigns, when such agreement recites that the obligations thereunder are secured by this Deed of Trust.

All initially capitalized terms used herein which are defined in the Loan Agreement shall have the same meaning herein unless the context otherwise requires.

TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR
HEREBY COVENANTS AND AGREES AS FOLLOWS:

ARTICILE 1. COVENANTS AND AGREEMENTS OF TRUSTOR

1.1 Payment of Secured Obligations. Trustor shall immediately pay when due all amounts secured hereby.

1.2 Maintenance, Repair, Alterations. Subject to normal wear and tear, Trustor (a) shall keep the Property and the Improvements thereon in good condition and repair in accordance with the Loan Documents, including, without limitation, the Regulatory Agreement; (b) shall not remove, demolish or substantially alter any of the Improvements except upon the prior written consent of Beneficiary; (c) shall complete promptly and in a good and workmanlike manner any Improvement which may be now or hereafter constructed on the Property and promptly restore in like manner any portion of the Improvements which may be damaged or destroyed thereon from any cause whatsoever, and pay when due all claims for labor performed and materials furnished

17.b
Packet Pg. 286 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 5 therefor; (d) shall comply in all material respects with all applicable laws, ordinances, regulations, covenants, conditions and restrictions now or hereafter affecting the Trust Estate or any part thereof or requiring any alterations or improvements; (e) shall not commit or permit any waste or deterioration of the Property or the Improvements; (f) shall not allow changes in the use for which all or any part of the Property or the Improvements were intended; and (g) shall not initiate or acquiesce in a change in the zoning classification of the Property and the Improvements without Beneficiary’s prior written consent, which shall not be unreasonably withheld, conditioned or delayed.

1.3 Required Insurance.
(a) Trustor shall at all times provide, maintain and keep in force or cause to be provided, maintained and kept in force, at no expense to Trustee or Beneficiary, policies of insurance in accordance with the terms of the Loan Documents in form and amounts, providing for deductibles, and issued by companies, associations or organizations covering such casualties, risks, perils, liabilities and other hazards as required by the Loan Documents or by Beneficiary pursuant thereto.
(b) Trustor shall not obtain separate insurance concurrent in form or contributing in the event of loss with that required to be maintained hereunder unless Beneficiary is included thereon under a standard, non-contributory mortgagee clause or endorsement acceptable to Beneficiary. Trustor shall immediately notify Beneficiary whenever any such separate insurance is obtained and shall promptly deliver to Beneficiary the original policy or policies of such insurance.
(c) Within 90 days following the end of each fiscal year of Trustor, at the request of Beneficiary, Trustor at Trustor’s expense shall furnish such evidence of replacement costs as the insurance carrier providing casualty insurance for the building(s) and other improvements on the Property may require to determine, or which such carrier may provide in determining, the then replacement cost of the building(s) and other improvements on the Property.

1.4 Delivery of Policies, Payment of Premiums.
(a) At Beneficiary’s option Trustor shall furnish Beneficiary with a copy of all policies of insurance required under Section 1.3 above or evidence of insurance issued by the applicable insurance company for each required policy setting forth the coverage, the limits of liability, the name of the carrier, the policy number and the period of coverage, and otherwise in form and substance satisfactory to Beneficiary in all respects. (b) In the event Trustor fails to provide, maintain, keep in force or deliver to Beneficiary the policies of insurance required by this Deed of Trust or by any Loan Documents, Beneficiary may (but shall have no obligation to) procure such insurance or single-interest insurance for such risks covering Beneficiary’s interest and Trustor will pay all premiums thereon and reimburse Beneficiary for all amounts paid or incurred by it in connection therewith promptly upon demand by Beneficiary and, until such payment and reimbursement is made by Trustor, the amount of all such premiums and amounts paid or incurred by Beneficiary shall become

17.b
Packet Pg. 287 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 6 indebtedness secured by this Deed of Trust and bear interest at the Default Rate. Following an Event of Default for failure to maintain insurance in accordance with this Section 1.4 and upon written request by Beneficiary, Trustor shall deposit with Beneficiary in monthly installments, an amount equal to 1/12 of the estimated aggregate annual insurance premiums on all policies of insurance required by the Loan Documents or this Deed of Trust. In such event Trustor further agrees to cause all bills, statements or other documents relating to the foregoing insurance premiums to be sent or mailed directly to Beneficiary. Upon receipt of such bills, statements or other documents evidencing that a premium for a required policy is then payable, and providing Trustor has deposited sufficient funds with Beneficiary pursuant to this Section 1.4, Beneficiary shall timely pay such amounts as may be due thereunder out of the funds so deposited with Beneficiary. If at any time and for any reason the funds deposited with Beneficiary are or will be insufficient to pay such amounts as may be then or subsequently due, Beneficiary shall notify Trustor and Trustor shall immediately deposit an amount equal to such deficiency with Beneficiary. Notwithstanding the foregoing, nothing contained herein shall cause Beneficiary to be deemed a trustee of the funds or to be obligated to pay any amounts in excess of the amount of funds deposited with Beneficiary pursuant to this Section 1.4, nor shall anything contained herein modify the obligation of Trustor set forth in Section 1.3 hereof to maintain and keep such insurance in force at all times. Beneficiary may commingle the reserve with its own funds and Trustor shall be entitled to no interest thereon.

1.5 Casualties; Insurance Proceeds. Trustor shall give prompt written notice thereof to Beneficiary after the happening of any casualty to or in connection with the Property, the Improvements, or any part thereof, whether or not covered by insurance. Subject to the provisions of any senior liens, in the event of such casualty, all proceeds of insurance shall be payable to Beneficiary up to the outstanding balance of the Agency Loan, whether required by the Loan Documents or otherwise, and Trustor hereby authorizes and directs any affected insurance company to make payment of such proceeds directly to Beneficiary. If Trustor receives any proceeds of insurance resulting from such casualty, whether required by the Loan Documents or otherwise, Trustor shall promptly pay over such proceeds to Beneficiary up to the outstanding balance of the Agency Loan, except where the insurance proceeds for such casualty are less than $50,000. Beneficiary is hereby authorized and is empowered by Trustor to settle, adjust or compromise any and all claims for loss, damage or destruction under any policy or policies of insurance. In the event of any damage or destruction of the Property or the Improvements, Beneficiary shall apply all loss proceeds remaining after deduction of all expenses of collection and settlement thereof, including, without limitation, fees and expenses of attorneys and adjustors, to the restoration of the Improvements, but only as repairs or replacements are effected and continuing expenses become due and payable and provided all applicable conditions specified in the Loan Documents with respect thereto have been satisfied. If any one or more of such conditions in the Loan Documents has not been met, Beneficiary shall not be obligated to make any further disbursements pursuant to the Note and Beneficiary shall apply all loss proceeds up to the outstanding balance of the Agency Loan, after deductions as herein provided, to the repayment of any indebtedness thereunder, together with all accrued interest thereon, notwithstanding that the outstanding balance may not be due and payable and the Loan Agreement shall terminate. Nothing herein contained shall be deemed to excuse Trustor from repairing or maintaining the Property and the Improvements as provided in Section 1.2 hereof or restoring all damage or destruction to the Property or the Improvements, regardless of whether or not there are insurance proceeds available

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Packet Pg. 288 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 7 to Trustor or whether any such proceeds are sufficient in amount, and the application or release by Beneficiary of any insurance proceeds shall not cure or waive any Event of Default nor any notice of default under this Deed of Trust or invalidate any act done pursuant to such notice.

1.6 Indemnification; Subrogation; Waiver of Offset.
(a) If Beneficiary is made a party to any litigation concerning this Deed of Trust or any of the Loan Documents, the Trust Estate or any part thereof or interest therein, or the occupancy of the Property or the Improvements by Trustor, then Trustor shall indemnify, defend and hold Beneficiary harmless from all liability by reason of that litigation, including reasonable attorneys’ fees and expenses incurred by Beneficiary as a result of any such litigation, whether or not any such litigation is prosecuted to judgment, except to the extent that such liability is caused by the negligence or willful misconduct of Beneficiary, its commissioners, officers, agents and employees. Beneficiary may employ an attorney or attorneys selected by it to protect its rights hereunder, and Trustor shall pay to Beneficiary reasonable attorneys’ fees and costs incurred by Beneficiary, whether or not an action is actually commenced against Trustor by reason of its breach.
(b) Trustor waives any and all right to claim or recover against Trustee, Beneficiary, and their respective officers, employees, agents and representatives, for loss of or damage to Trustor, the Trust Estate, Trustor’s property or the property of others under Trustor’s control from any cause insured against or required to be insured against by the provisions of this Deed of Trust. (c) All sums payable by Trustor in accordance with the terms of this Deed of Trust, the Note or the Loan Agreement shall be paid upon notice and demand and without counterclaim, setoff, deduction or defense and without abatement, suspension, deferment, diminution or reduction, and the obligations and liabilities of Trustor hereunder shall in no way be released, discharged or otherwise affected (except as expressly provided herein) by reason of (i) any damage to or destruction of or any condemnation or similar taking of the Trust Estate or any part thereof, (ii) any restriction or prevention of or interference by any third party with any use of the Trust Estate or any part thereof, (iii) any title defect or encumbrance or any eviction from the Improvements or any part thereof by title paramount or otherwise; (iv) any bankruptcy, insolvency, reorganization, composition, adjustment, dissolution, liquidation or other like proceeding relating to Beneficiary, or any action taken with respect to this Deed of Trust by any trustee or receiver of Beneficiary, or by any court, in any such proceeding; (v) any claim which Trustor has or might have against Beneficiary, which does not relate to the Agency Loan; or (vi) any other occurrence whatsoever, whether similar or dissimilar to the foregoing; whether or not Trustor shall have notice or knowledge of any of the foregoing. Except as expressly provided herein and subject to any limitation thereon provided by law, Trustor waives all rights now or hereafter conferred by statute or otherwise to any abatement, suspension, deferment, diminution or reduction of any sum secured hereby and payable by Trustor.

1.7 Taxes and Impositions.
(a) As used herein, “Impositions” shall mean all applicable real property taxes and assessments, general and special, and all other taxes and assessments of any kind or nature

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Packet Pg. 289 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 8 whatsoever, including, without limitation, nongovernmental levies or assessments such as maintenance charges, levies or charges resulting from covenants, conditions and restrictions affecting the Trust Estate, which are assessed or imposed upon the Trust Estate or any portion of it, or become due and payable, and which create, may create or appear to create a lien upon the Trust Estate, or any part thereof, or upon any person, property, equipment or other facility used in the operation or maintenance thereof, or any tax or assessment on the Trust Estate, or any part of it, in lieu thereof or in addition thereto, or any license fee, tax or assessment imposed on Beneficiary and measured by or based in whole or in part upon the amount of the outstanding obligations secured hereby. Trustor shall pay all Impositions prior to delinquency. Trustor shall deliver to Beneficiary proof of the payment of the Impositions within thirty (30) days after such Impositions are due.
(b) After an Event of Default that remains uncured by Trustor after any applicable notice and cure period, and upon written request by Beneficiary, Trustor shall pay to Beneficiary, unless the Property and Improvements have received an ad valorem property tax exemption pursuant to subdivision (f) or (g) of Section 214 of the California Revenue and Taxation Code, an initial cash reserve in an amount adequate to pay all Impositions for the ensuing tax fiscal year and shall thereafter continue to deposit with Beneficiary, in monthly installments, an amount equal to 1/12 of the sum of the annual Impositions reasonably estimated by Beneficiary, for the purpose of paying the installment of Impositions next due on the Property and the Improvements (funds deposited for this purpose shall hereinafter be referred to as “Impounds”). In such event Trustor further agrees to cause all bills, statements or other documents relating to Impositions to be sent or mailed directly to Beneficiary. Upon receipt of such bills, statements or other documents, and providing Trustor has deposited sufficient Impounds with Beneficiary pursuant to this Section

1.8(b), Beneficiary shall timely pay such amounts as may be due thereunder out of the Impounds so deposited with Beneficiary. If at any time and for any reason the Impounds deposited with Beneficiary are or will be insufficient to pay such amounts as may then or subsequently be due, Beneficiary may notify Trustor and upon such notice Trustor shall deposit immediately an amount equal to such deficiency with Beneficiary. If after the payment of the Impositions there shall be an excess amount held by Beneficiary, such excess amount shall be promptly refunded to Trustor in any reasonable manner and in such amount as Beneficiary may elect. Beneficiary shall not commingle Impounds with its own funds and shall be obligated to pay any interest on any Impounds held by Beneficiary pending disbursement or application hereunder. (c) Trustor shall not suffer, permit or initiate the joint assessment of any real and personal property which may constitute any portion of the Trust Estate or suffer, permit or initiate any other procedure whereby the lien of the real property taxes and the lien of the personal property taxes shall be assessed, levied or charged to the Trust Estate, or any portion of it, as a single lien. (d) If requested by Beneficiary, Trustor shall cause to be furnished to Beneficiary a tax reporting service covering the Property and the Improvements of the type, duration and with a company satisfactory to Beneficiary.
(e) If, by the laws of the United States of America, or of the State of California or any political subdivision thereof having jurisdiction over Trustor, Beneficiary or the Trust Estate or any portion thereof, any tax, assessment or other payment is due or becomes due in respect of the

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Packet Pg. 290 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 9 issuance of the Note or the recording of this Deed of Trust, Trustor covenants and agrees to pay each such tax, assessment or other payment in the manner required by any such law. Trustor further covenants to defend and hold harmless and agrees to indemnify Beneficiary, its successors or assigns, against any liability incurred by reason of the imposition of any tax, assessment or other payment on the issuance of the Note or the recording of this Deed of Trust.

1.8 Utilities. Trustor shall pay or shall cause to be paid when due all utility charges which are incurred by Trustor for the benefit of the Property or the Improvements and all other assessments or charges of a similar nature, whether or not such charges are or may become liens thereon.

1.9 Actions Affecting Trust Estate. Trustor shall promptly give Beneficiary written notice of and shall appear in and contest any action or proceeding purporting to affect any portion of the Trust Estate or the security hereof or the rights or powers of Beneficiary or Trustee; and shall pay all costs and expenses, including the cost of evidence of title and reasonable attorneys’ fees, in any such action or proceeding in which Beneficiary or Trustee may appear.

1.10 Actions By Trustee or Beneficiary to Preserve Trust Estate. During the continuation of an event of default, Beneficiary and/or Trustee, each in its own discretion, without obligation so to do, without releasing Trustor from any obligation, and without notice to or demand upon Trustor, may make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof. In connection therewith (without limiting their general powers, whether conferred herein, in any other Loan Documents or by law), Beneficiary and Trustee shall have and are hereby given the right, but not the obligation, (a) to enter upon, subject to the rights of tenants, and take possession of the Property and the Improvements; (b) to make additions, alterations, repairs and improvements to the Property and the Improvements which they or either of them may reasonably consider necessary or proper to keep the Property or the Improvements in good condition and repair; (c) to appear and participate in any action or proceeding affecting or which may affect the security hereof or the rights or powers of Beneficiary or Trustee; (d) to pay, purchase, contest or compromise any encumbrance, claim, charge, lien or debt which in the judgment of either may affect or appears to affect the security of this Deed of Trust or be prior or superior hereto; and (e) in exercising such powers, to pay necessary expenses, including reasonable attorneys’ fees and costs or other necessary or desirable consultants. Trustor shall, immediately upon demand therefor by Beneficiary and Trustee or either of them, pay to Beneficiary and Trustee an amount equal to all respective costs and expenses incurred by such party in connection with the exercise of the foregoing rights, including, without limitation, reasonable costs of evidence of title, court costs, appraisals, surveys and receiver’s, trustee’s and reasonable attorneys’ fees, together with interest thereon from the date of such expenditures at the Default Rate.

1.11 Transfer of Trust Estate by Trustor. Subject to the provisions of the Loan Agreement, in the event the Trust Estate or any part thereof, or any interest therein is sold, transferred or leased in violation of Section 2 of the Loan Agreement, Beneficiary shall have the absolute right at its option, upon notice and demand in accordance with Section 9 of the Loan Agreement, to declare all sums secured hereby immediately due and payable. Consent to one such transaction shall not be deemed to be a waiver of the right to require consent to future or successive

17.b
Packet Pg. 291 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 10 transactions. As a condition of the Agency Loan, Trustor agrees for itself, its successors and assigns that the use of the Property shall be subject to the restrictions on rent and occupancy and use of the Property set forth in the Loan Documents, including, without limitation, the Regulatory Agreement.

1.12 Survival of Warranties. All representations, warranties and covenants of Trustor contained in the Loan Documents or incorporated by reference therein expressly stated to survive the execution and delivery of this Deed of Trust, shall survive the execution and delivery of this Deed of Trust and shall remain continuing obligations, warranties and representations of Trustor so long as any portion of the obligations secured by this Deed of Trust remains outstanding.

1.13 Eminent Domain.
(a) Subject to the provisions of any senior liens, in the event that any proceeding or action be commenced for the taking of the Trust Estate, or any part thereof or interest therein, for public or quasi-public use under the power of eminent domain, condemnation or otherwise, or if the same be taken or damaged by reason of any public improvement or condemnation proceeding, or in any other manner, or should Trustor receive any notice or other information regarding such proceeding, action, taking or damage, Trustor shall give prompt written notice thereof to Beneficiary. Beneficiary shall be entitled at its option, without regard to the adequacy of its security, to commence, appear in and prosecute in its own name any such action or proceeding so long as the probable compensation exceeds $50,000. All compensation, awards, damages, rights of action and proceeds awarded to Trustor by reason of any such taking or damage shall hereinafter be referred to as “Condemnation Proceeds,” and after deducting therefrom all costs and expenses (regardless of the particular nature thereof and whether incurred with or without suit), including reasonable attorneys’ fees, incurred by it in connection with any such action or proceeding, subject to any applicable terms of the Loan Agreement, Trustor shall apply all such Condemnation Proceeds to the restoration of the Improvements, provided that (i) the taking or damage will not, in Trustor’s reasonable judgment, materially and adversely affect the contemplated use and operation of Property and the Improvements.
(b) If any one or more of such conditions is not met, Trustor shall apply all of the Condemnation Proceeds, after deductions as herein provided, to the repayment of the outstanding balance of the Note, together with all accrued interest thereon, notwithstanding that the outstanding balance may not be due and payable; and Beneficiary shall have no further obligation to make disbursements pursuant to the Loan Agreement or the other Loan Documents. If the Condemnation Proceeds are not sufficient to repay the Note in full, Trustor shall have no obligation to pay any remaining balance. Application or release of the Condemnation Proceeds as provided herein shall not cure or waive any Event of Default or notice of default hereunder or under any other Loan Document or invalidate any act done pursuant to such notice.

1.14 Additional Security. No other security now existing, or hereafter taken, to secure the obligations secured hereby shall be impaired or affected by the execution of this Deed of Trust and all additional security shall be taken, considered and held as cumulative. The taking of additional security, execution of partial releases of the security, or any extension of the time of payment of the indebtedness shall not diminish the force, effect or lien of this Deed of Trust and

17.b
Packet Pg. 292 Attachment: Exhibit B- Disposition, Development, and Loan Agreement (5531 : Jacaranda Gardens Development Disposition Agreement) 11 shall not affect or impair the liability of any Trustor, surety or endorser for the payment of the indebtedness. In the event Beneficiary at any time holds additional security for any of the obligations secured hereby, it may enforce the sale thereof or otherwise realize upon the same, at its option, either before, concurrently, or after a sale is made hereunder.

1.15 Successors and Assigns. This Deed of Trust applies to, inures to the benefit of and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term “Beneficiary” shall mean the owner and holder of the Note, whether or not named as Beneficiary herein. In exercising any rights hereunder or taking any actions provided for herein, Beneficiary may act through its employees, agents or independent contractors authorized by Beneficiary.

1.16 Inspections. Beneficiary, or its agents, representatives or employees, are authorized, subject to the rights of tenants, to enter upon or in any part of the Property and the Improvements at any reasonable time following reasonable written notice of no less than 48 hours’ in advance thereof for the purpose of inspecting the same and for the purpose of performing any of the acts it is authorized to perform hereunder or under the terms of any of the Loan Documents.

Without limiting the generality of the foregoing, Trustor agrees that Beneficiary will have the same right, power and authority to enter and inspect the Property and the Improvements as is granted to a secured lender under Section 2929.5 of the California Civil Code, and that Beneficiary will have the right to appoint a receiver to enforce this right to enter and inspect the Property and the Improvements to the extent such authority is provided under California law, including the authority given to a secured lender under Section 564(c) of the California Code of Civil Procedure.

1.17 Liens. Trustor shall pay and promptly discharge, at Trustor’s cost and expense, all liens, encumbrances and charges upon the Trust Estate, or any part thereof or interest therein, subject to Trustor’s right to contest in good faith any such liens, encumbrances and charges. The Trustor shall remove or have removed any levy or attachment made on any of the Property or any part thereof, or assure the satisfaction thereof within a reasonable time. Despite the foregoing, Trustor shall not be required to prepay any consensual lien or encumbrance against the Trust Estate which has been consented to in writing by Beneficiary. If Trustor shall fail to remove and discharge any such lien, encumbrance or charge, then, in addition to any other right or remedy of Beneficiary, Beneficiary may, but shall not be obligated to, discharge the same, either by paying the amount claimed to be due, or by procuring the discharge of such lien, encumbrance or charge by depositing in a court a bond or the amount claimed or otherwise giving security for such claim, or by procuring such discharge in such manner as is or may be prescribed by law. Trustor shall, immediately upon demand therefor by Beneficiary, pay to Beneficiary an amount equal to all costs and expenses incurred by Beneficiary in connection with the exercise by Beneficiary of the foregoing right to discharge any such lien, encumbrance or charge, together with interest thereon from the date of such expenditure at the Default Rate.

El Centro City CouncilJune 7, 2022

El Centro City Council
June 7, 2022