AGENDA
REGULAR MEETING OF THE
CITY OF KING CITY COUNCIL
AND
Sitting as SUCCESSOR AGENCY OF
THE RDA FOR THE CITY OF KING
TUESDAY SEPTEMBER 27, 2022
6:00 P.M.
CITY HALL
212 S. VANDERHURST AVENUE
KING CITY, CALIFORNIA 93930
The City Council meeting will be conducted in hybrid in-person/virtual format.
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1. CALL TO ORDER
2. ROLL CALL: Council Members Darlene Acosta, Robert Cullen, Carlos DeLeon, Mayor Pro Tem Carlos Victoria, and Mayor Mike LeBarre
3. FLAG SALUTE
4. CLOSED SESSION ANNOUNCEMENTS
5. SPECIAL PRESENTATIONS
None
6. PUBLIC COMMENT
Any member of the public may address the Council for a period not to exceed three minutes’ total on any item of interest within the jurisdiction of this Council that is not on the agenda. The Council will listen to all communications; however, in compliance with the Brown Act, the Council cannot act on items not on the agenda. Comments should be directed to the Council as a whole and not to any individual Council Member. Slanderous, profane or personal remarks against any Council Member, staff member or member of the audience is not permitted.
7. COUNCIL COMMUNICATIONS & COMMITTEE REPORTS
Individual Council Members may comment on Council business, his or her Council activities, City operations, projects or other items of community interest. Council Members may also request staff to report back at a subsequent meeting on any matter or take action to direct staff to prepare a staff report for a future agenda.
8. STAFF COMMUNICATIONS
Comments presented by the City Manager, City Attorney or other staff on City business and/or announcements.
9. CONSENT AGENDA
The following items listed below are scheduled for consideration as a group. The recommendations for each item are noted. Members of the audience may speak on any item(s) listed on the Consent Agenda. Any Council Member, the City Manager, or the City Attorney may request that an item be withdrawn from the Consent Agenda to allow for full discussion.
The Council may approve the remainder of the Consent Agenda on one motion. Items withdrawn from the Consent Agenda may be considered by separate motions at the conclusion of the discussion of each item.
A. Consideration: Meeting Minutes of September 13, 2022, Council Meeting Recommendation: approve and file.
B. Consideration: Special Meeting Minutes of August 30, 2022, Council Meeting Recommendation: approve and file.
C. Consideration: City of King Check Register September 1, through September 15, 2022
Recommendation: receive and file.
D. Consideration: Job Descriptions Updates
Recommendation: adopt a Resolution approving an amendment to the job descriptions for the positions of City Clerk and Human Resources Manager.
E. Consideration: Wind Kinetic Sculpture Selection Process and Consultant Services
Recommendation: 1) approve the proposed process for selection of wind kinetic sculpture artists and pieces; and 2) authorize the City Manager to execute a contract services agreement in a form approved by the City Attorney with Naomi Nussbaum for consultant services to facilitate the selection and placement of wind kinetic sculpture in an amount not to exceed $5,000.
F. Consideration: Long-Range Financial Plan Update
Recommendation: approve an update to the General Fund 10-Year LongRange Financial Plan.
G. Consideration: Cal Poly City and Regional Planning Laboratory Recommendation: City Council review the information and provide direction to staff as needed.
H. Consideration: Amended Mills Ranch Affordable Housing Agreement Recommendation: adopt the attached Resolution approving an amended Mills Ranch Affordable Housing Agreement.
I. Consideration: City of King KCCP Payments for the Month of July 2022 Recommendation: receive and file.
10. PUBLIC HEARINGS
None
11. REGULAR BUSINESS
A. Consideration: Lease Agreement for Temporary Use of the City Property for Food Truck
Recommendation: City Council: 1) approve and authorize the City Manager to execute a Lease Agreement with R Truck, Inc. for temporary use of the City’s property at 332 Broadway Street as a pilot program to determine the market conditions for a brick and mortar restaurant; and 2) authorize the City Manager to make non-substantive modifications to the Lease Agreement if necessary in a form approved by the City Attorney.
12. CITY COUNCIL CLOSED SESSION
Announcement(s) of any reportable action(s) taken in Closed Session will be made in open session and repeated at the beginning of the next Regular City Council meeting as this portion of the meeting is not recorded.
None
13. ADJOURNMENT
The City of King is an equal opportunity provider and employer.
City Council Meeting
September 13, 2022
1.__CALL TO ORDER:
Regular Meeting called to order at 6:00pm by Mayor LeBarre.
2.__ROLL CALL:
City Council: Mayor Mike LeBarre, Council member, Carlos DeLeon, Mayor Pro Tem Carlos Victoria.
Darlene Acosta and Rob Cullen are absent.
City Staff: City Manager Steve Adams; City Attorney Roy Santos; City Clerk, Erica Sonne.
3.__FLAG SALUTE:
The flag salute was led by Council Member DeLeon.
4. CLOSED SESSION ANNOUNCEMENTS:
None
5.__PRESENTATIONS:
A. Jacob’s Heart Proclamation – Luis Mojica accepted on behalf of Jacob’s Heart.
B. September National Recovery Month 2022 -Chris Graveline, Director of Recovery Services and Rachel accept on behave of Sun Street.
C. Blue Zones Kickoff Event Video, Kendra Howell, Blue Zones Project Monterey County
6. PUBLIC COMMUNICATIONS:
Steve Wilson handed out a memo and diagram for bicycle paths on Bikle St. Since Bikle doesn’t have parking on either side, he feels that there should be bicycle lanes on that street. He said since we want to promote healthy lifestyle such as Blue Zones he feels the City needs designate bicycle lanes.
Liz Hall with Waste Management wanted to plug the 3rd and final drop off event community drop off event November 5, 2022. Kudos to the Blue Zones project and City for kicking off a wonderful event.
7. COUNCIL COMMUNICATIONS:
Mayor Pro Tem Victoria stated nothing to this week.
Council Member DeLeon stated nothing to this week.
Mayor LeBarre stated he attended as did Chief Boyd the Fort Hunter Liggett Patriots’ Day remembrance ceremony.
9(A)
8. CITY STAFF REPORTS AND COMMENTS:
City Manager Steven Adams stated that next Thursday the 22nd at 5:30p.m. will be having a dedication ceremony for the new Jayne Street solar street light project, it is the first solar funded by King City Community Power
9. CONSENT AGENDA
A. Consideration: Meeting Minutes of August 23, 2022, Council Meeting B. Consideration: City of King Check Register August 16, through August 31, 2022 C. Consideration: Cancelation of December 27, 2022, Meeting D. Consideration: Mesa Del Rey Airport Taxiway A Rehabilitation Project E. Consideration: 2022 Local Agency Biennial Notice on Conflict-of-Interest Code F. Consideration: Designation and Liquidation of Surplus Obsolete City Equipment G. Consideration: A Resolution of the City Council of the City of King Making Findings Related to the Continued Existence of a State of Emergency Due to COVID-19 and Re-Authorizing the Conduct of Public Meetings of the Legislative Bodies of the City Via Remote Teleconferencing for an Initial 30-Day Period Pursuant to the Ralph M. Brown Act as Amended by Assembly Bill No. 361
H. Consideration: Amendment to Master Fee Schedule
I. Consideration: Termination of Contract Services Agreement with Hanna-Brunetti J. Consideration: Update of the King City Local Road Safety Plan Council member DeLeon pulled item J.
Mayor LeBarre was happy to see the taxiway rehabilitation project on for approval.
Action: Motion to approve consent agenda items A--I by Victoria and seconded by DeLeon.
AYES: Council Members: LeBarre, DeLeon, Victoria
NOES: Council Members:
ABSENT: Council Members: Acosta, Cullen,
ABSTAIN: Council Members:
Council member DeLeon asked Public Works Director Octavio Hurtado to give a presentation on King City Local Road Safety Plan for the public’s information.
Action: Motion to approve consent agenda item J by Victoria and seconded by DeLeon.
AYES: Council Members: LeBarre, DeLeon, Victoria
NOES: Council Members:
ABSENT: Council Members: Acosta, Cullen,
ABSTAIN: Council Members:
10. PUBLIC HEARINGS:
None
11. REGULAR BUSINESS:
A. Consideration: Participation in the Monterey County Convention and Visitors Bureau.
City Manager Adams introduced this item.
Rob O’Keefe and Jennifer Johnson further introduced this item with a PowerPoint.
Two Hoteliers from King City are concerned that there will not be events to bring visitors to King City to stay. They want a good restaurant and bar that stays open longer that 9:00p.m. Most visitors that come to stay want something to eat and there is nothing open. They suggested wine tasting and a bar.
Action: Motion to City Council direct staff to submit a letter of intent to the Monterey County Convention and Visitors Bureau (MCCVB) initiating the process of becoming a Jurisdiction Investing Partner in the MCCVB and inclusion in the Monterey County Tourism Improvement District (MCTID) by DeLeon and seconded by Victoria.
AYES: Council Members: LeBarre, DeLeon, Victoria
NOES: Council Members:
ABSENT: Council Members: Acosta, Cullen,
ABSTAIN: Council Members:
12. CITY COUNCIL CLOSED SESSION
A. Conference with Legal Counsel – Pending Litigation
Pending Litigation Pursuant to Government Code Section 54956.9(d): (One case) Working Families of Monterey County and Efrain Aguilera v. The King City Planning Commission and King City City Council ADJOURNMENT:
Mayor LeBarre adjourned to closed session at 7:07p.m. Mayor LeBarre adjourned the meeting for the evening at 7:30pm.
Approved Signatures:
Mayor, Michael LeBarre City Clerk, Erica Sonne
City of King City of King
City Council Special Meeting
August 30, 2022
1.__CALL TO ORDER:
Special Meeting called to order at 6:00pm by Mayor LeBarre.
2.__ROLL CALL:
City Council: Mike LeBarre, Council member Darlene Acosta, Rob Cullen, Carlos DeLeon, Mayor Pro Tem Carlos Victoria.
City Staff: City Manager Steven Adams; City Attorney Roy Santos (by video conference); City Clerk, Erica Sonne.
3.__FLAG SALUTE:
The flag salute was led by Mayor LeBarre.
4. PUBLIC COMMUNICATIONS:
None
5. Workshop on KING CITY GOLF COURSE:
A. Consideration: Proposals for King City Golf Course Operations and Management Services.
City Manager Adams introduced this item. Each organization will be giving a 20-minute maximum presentation tonight.
Council member Acosta wanted to bring to the attention of the Council and community that one of the organizations wrote a letter to the Council about the other organization.
Mayor LeBarre explained that the letter is available to the public this evening and are on the table.
First Tee gave a presentation with a PowerPoint to City Council with Nick Nelson CEO taking the lead.
Touchstone Golf gave a presentation with a PowerPoint to City Council with Mark Luthman president presenting.
Edgar Lopez spoke in favor of First Tee.
Aaron Johnson spoke in favor of First Tee.
Jeremy Sarina spoke in favor of First Tee.
Mitch Massey spoke in favor of First Tee and he read a letter from Karina Aguirre in support as well.
Gabe Almader spoke in favor of First Tee.
Jon Conatser spoke about the importance of the golf course and the youth involvement.
Mark Pumphrey spoke on keeping the golf course and that they had worked with First Tee before in King City when he and Jon Olson were at the golf course. Peak hours for community and non-peak hours for kids.
Anne Olson is happy that we got two quality companies who want to work the golf course. She would like to see more put into the club house and homework stations for the kids. She brought up the concern of golf carts that are driven to the golf course will they still be allowed to do that. 9(B)
Action: Motion to accept the proposal by First Tee include a maximum subsidy amount of $10,000 in the first year, $5,000 in the second year and $0 in the third year and beyond. In addition to that the city would commit to the Capitol improvements over a 5-year period with Capital improvements is contingent on the sales tax passage on this year’s election cycle LeBarre and seconded by Cullen.
AYES: Council Members: LeBarre, Acosta, Cullen, DeLeon and Victoria NOES: Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
ADJOURNMENT:
Mayor LeBarre adjourned the meeting at 7:32p.m.
Approved Signatures:
Mayor, Michael LeBarre City Clerk, Erica Sonne
City of King City of King
Item No. 9(C)
REPORT TO THE CITY COUNCIL
DATE:
TO:
FROM:
RE:
SEPTEMBER 27, 2022
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
MIKE HOWARD, FINANCE DIRECTOR
CONSIDERATION OF CITY OF KING CHECK REGISTER
SEPTEMBER 1 THROUGH SEPTEMBER 15, 2022
RECOMMENDATION:
It is recommended City Council receive and file.
BACKGROUND:
At least once a month, the City Treasurer shall submit to the City Council, a copy of the invoices paid for the previous month.
DISCUSSION:
The purpose of this item is to provide the Council an opportunity to review and monitor ongoing expenditures. These documents are attached.
COST ANALYSIS:
There is no fiscal impact as a result of this action.
ENVIRONMENTAL REVIEW:
No Environmental Review required for this item.
ALTERNATIVES:
The following alternatives are provided for Council consideration:
1. Receive and file the report; or
2. Provide other direction to staff regarding requests for additional information.
CITY COUNCIUCITY
CONSIDERATION OF CITY OF KING CHECK REGISTER SEPTEMBER 1 THROUGH SEPTEMBER 16, 2022
SEPTEMBE R27, 2022
PAGE2 OF2
Exhibits:
1. Check Register Report
Submitted by: _Jillit��1,....,�....::...::....---=��:......:===---- Mike Howard, Finance Director Approved by: Steen �)- Adams, City Manager
Item No. 9 (D)
REPORT TO THE CITY COUNCIL
DATE: SEPTEMBER 27, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF JOB DESCRIPTION UPDATES
RECOMMENDATION:
It is recommended the City Council adopt a Resolution approving amendments to the job descriptions for the positions of City Clerk and Human Resources Manager.
BACKGROUND:
The City Council recently approved upgrading the Executive Assistant/Deputy City Clerk position to City Clerk. In addition, the City Council also approved an amendment to the King City Confidential Employees Association (KCCEA) Memorandum of Understanding (MOU) to remove the Human Resources Manager position from being a represented classification under KCCEA. As result, staff has identified some changes needed to the job descriptions to reflect these changes.
DISCUSSION:
The Executive Assistance/Deputy City Clerk position was established as a nonexempt employee. Given the increased level of responsibility and autonomy of the City Clerk position, staff has determined that it should be an exempt classification under the Fair Labor Standards Act (FLSA). The only practical impact of this change is that the position will now be eligible to receive administrative leave and will no longer qualify for overtime.
The Human Resources Manager is now proposed to be a non-classified, nonrepresented position. This will mean a contract will be entered into when the position is filled to set forth the terms of employment.
Item No. 9 (E)
REPORT TO THE CITY COUNCIL
DATE: SEPTEMBER 27, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF WIND KINETIC SCULPTURE SELECTION
PROCESS AND CONSULTANT SERVICES
RECOMMENDATION:
It is recommended the City Council 1) approve the proposed process for selection of wind kinetic sculpture artists and pieces; and 2) authorize the City Manager to execute a contract services agreement in a form approved by the City Attorney with Naomi Nussbaum, LLC for consultant services to facilitate the selection and placement of wind kinetic sculpture in an amount not to exceed $5,000.
BACKGROUND:
In July 2017, the City Council approved a Wind Sculpture Art in Public Places Plan to encourage, facilitate and fund art pieces on private and public property featuring wind sculptures at strategic locations. The objective of the plan is to promote public art, beautify the community, celebrate the City’s windy climate, and create a unique theme for art that will encourage people to visit the community to experience.
The City has secured grant funding and/or private funding commitments in the amount of approximately $300,000 for three wind kinetic sculpture projects.
These include one at the permanent supportive housing project at the former Days Inn site, one at the Downtown Plaza, and a series of six in the Broadway Street medians. Funding for a fourth planned for the roundabout may also become available if the grant application the City submitted is approved.
The City’s research has confirmed the wind kinetic sculptures are a specialized form of art and there are a limited number of artists in the country. They are also complex art pieces that involve engineering requirements to ensure they are
CITY COUNCIL
CONSIDERATION OF WIND KINETIC SCULPTURE SELECTION PROCESS
AND CONSULTANT SERVICES
SEPTEMBER 27, 2022
PAGE 2 OF 3
safe, stable and operate correctly. Therefore, staff has determined it would be cost effective for the City to utilize professional assistance to help manage the selection process and project.
DISCUSSION:
Staff has conducted a variety of analysis to determine the best approach for selecting artists and art pieces. This included outreach to the Monterey County Arts Council, other jurisdictions, and kinetic artists. Proposals were received from two consultants available to assist the City with the process, which is recommended to ensure the City’s process is successful in meeting the objectives of the program.
Following this analysis, staff recommends contracting with Naomi Nussbaum.
She has worked with a number of other jurisdictions and clients and was the most cost effective of the two proposals. The scope of work will include drafting the request for qualification (RFQ), publicize the RFQ, draft the request for proposals (RFP), guide the selection process, prepare the artist contract, serve as a liaison between the City and artist, and coordinate installation.
The process may involve selection of one artist to create all the pieces or separate artists for each piece. An initial RFQ will be distributed and publicized to a large number of artists. Up to a maximum of 3 artists per project will be selected to submit proposals. A stipend of $750 will be paid to each artist selected. Proposals will be presented to a Community Art Selection Committee to provide a recommendation. The Committee will be composed of the City Manager, Recreation Manager, Planner, a representative from Sol Treasures, a representative from the Monterey County Arts Council, and a representative from King City in Bloom. The recommendations will be presented to the City Council for approval. Preliminary approval will also be required by Shangri-La for the wind kinetic sculpture that will be selected for the permanent supportive housing project site, which they will fund.
COST ANALYSIS:
The consultant services will cost $5,000, which can be funded from the City Manager consultant services account.
ENVIRONMENTAL REVIEW:
The consultant services contract is not a “project” for the purposes of the California Environmental Quality Act (CEQA) as it does not have the potential for resulting in either a direct physical change to the environment or a reasonably
Item No. 9 (F)
REPORT TO THE CITY COUNCIL
DATE: SEPTEMBER 27, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF LONG-RANGE FINANCIAL PLAN
UPDATE
RECOMMENDATION:
It is recommended the City Council approve an update to the General Fund 10- Year Long-Range Financial Plan.
BACKGROUND:
At the June 14, 2022 meeting, the City Council approved adjustments to the biennial budget for FY 2022-23. Staff recommends the City Council adopt an update to the Long-Range Financial Plan to incorporate the budget adjustments.
DISCUSSION:
Since the purpose of placing the Local Sales Tax Measure on the November ballot was to implement remaining priority needs identified in the Long-Range Financial Plan, staff believes it would be beneficial to have an up-to-date plan if members of the community request information. Attached is a recommended update, which incorporates the adjusted budget figures for FY 2022-23. In addition, some minor modifications were made to the assumptions for future projected increases to a few categories of revenues and expenditures based on current economic trends.
Scenario 1 continues to be a 10-year projection based on the existing budget and service levels. Scenario 2 is the expanded plan, which identifies cost projections for identified priority unfunded needs and revenue projections if the Local Sales Tax measure passes. As you can see, the Long-Range Financial Plan continues to be balanced under both scenarios, but only projects adequate revenue to address deferred facility maintenance needs, public safety improvements,
CITY COUNCIL
CONSIDERATION OF LONG-RANGE FINANCIAL PLAN UPDATE
SEPTEMBER 27, 2022
PAGE 2 OF 3
enhanced street resurfacing funding, increased parks maintenance, and other identified needs under the expanded plan.
Staff incorporated a reduction in the increase of sales tax revenue over the next two years due to a likely slowdown in the economy. However, it does not include a reduction in sales tax, so these projections assume a slowdown and not a severe recession. Figures will need to be adjusted if a deep recession occurs.
The other major factor that could impact the Long-Range Financial Plan continues to be the ability to maintain and increase future cannabis tax revenue.
The proposed Long-Range Financial Plan update does not modify cannabis tax revenue figures, which are still forecasted to increase in the future and level off at $1 million annually. This is down considerably from initial projections of over $3 million, but it is still uncertain if the City can reach that revenue level.
The primary impact of an economic slowdown and the recent budget increases is that the City is unable to gradually increase funding for street improvements as was previously planned. The proposed update assumes the amount budgeted for street improvements this fiscal year will remain consistent over the 10-year period.
Under both scenarios, it is forecasted the City will maintain a reserve of approximately 20% over the 10-year period. Therefore, the primary difference in the scenarios is simply the ability to fund the needed enhancements.
COST ANALYSIS:
There is no cost impact from this action.
ENVIRONMENTAL REVIEW:
The Long-Range Financial Plan is a planning document and not a “project” for the purposes of the California Environmental Quality Act (CEQA) as they do not have the potential for resulting in either a direct physical change to the environment or a reasonably foreseeable indirect physical change in the environment. No further action is required under CEQA for City Council action.
ALTERNATIVES:
The following alternatives have been identified for City Council consideration:
1. Approve the updated Long-Range Financial Plan;
2. Direct staff to incorporate changes and approve the updated Long-Range Financial Plan;
Item No. 9 (G)
REPORT TO THE CITY COUNCIL
DATE: SEPTEMBER 27, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: DOREEN LIBERTO, AICP, COMMUNITY DEVELOPMENT DIRECTOR RE: CONSIDERATION OF CAL POLY CITY AND REGIONAL PLANNING
LABORATORY
RECOMMENDATION:
It is recommended the City Council: 1) approve Cal Poly City and Regional Planning Department to conduct a class laboratory project to assist with preparation of the General Plan Update; and 2) authorize the City Manager to execute an agreement for the laboratory work if requested by Cal Poly.
BACKGROUND:
A faculty member from the Cal Poly University, San Luis Obispo City and Regional Planning Department (CRP) has offered to conduct a Fall and Winter Quarter 2022-2023 Planning Laboratory in King City. The Planning Laboratory students would research relevant planning and environmental policy issues related to the long-term sustainable buildout of the City (10-20 years). The Planning Laboratory starts on September 19th and ends March 20th.
DISCUSSION:
Kelly Main, Ph.D, Associate Professor, is leading the Fall and Winter Quarter 2022- 2023 Planning Laboratory and reached out to staff asking if King City would be interested in having students provide recommendation papers that cover policies and strategies/actions addressing key components of a sustainable, equitable and healthy city. This is a similar class to the 2006 class which recommended reestablishing passenger service in King City.
Some of the key components that the Planning Laboratory class will review include:
• Environmental sustainability
CITY COUNCIL
SEPTEMBER 27, 2022
CONSIDERATION OF CAL POLY CITY AND REGIONAL PLANNING
LABORATORY
PAGE 2 OF 4
• Climate change and adaptation
• Social equity and economic development
• Health and environmental justice
• Cultural sustainability and sense of community
Some of the specific concerns that can be addressed under these key components include:
• Development standards (including creative solutions) for:
o Mixed Use Developments
o Affordable Housing
o Senior Housing
o Market Rate Housing
o Housing in commercial districts with and without densities (e.g., micro-units)
• Neighborhood and street considerations
• Inclusive and culturally-based economic development approaches • Opportunity zones and districts, related to revisions to LUE standards • Health as it relates to food access and nutrition, safe and healthy homes, adequate employment, transportation, physical activity, quality health care, and any other factors related to King City’s participation in the Blue Zone project
• Sense of community
• Public spaces and facilities
A key effort in developing the Recommendations Paper will be community engagement efforts that maximize a culturally diverse community participation process. Outreach efforts will include interviews and focus group meetings.
Surveys and interviews will be conducted at community events/public sites (e.g., community event such as Day of the Dead, grocery stores, shops and restaurants, public spaces). Spanish-translators would be needed for community engagement efforts, the cost of which could be funded by Cal Poly. The class plans to meet with City staff on Friday, October 7th beginning at 2 pm, spend the night in King City and conduct a Saturday field trip.
This community outreach and research are items that will be required as part of the General Plan Update process. Therefore, this will be a cost-effective way in which to reduce costs of the process and reduce the need for consultants by
CITY COUNCIL
SEPTEMBER 27, 2022
CONSIDERATION OF CAL POLY CITY AND REGIONAL PLANNING
LABORATORY
PAGE 3 OF 4
performing as much of the work as possible in-house. An executed agreement is needed with Cal Poly when a jurisdiction contributes financially to a Planning Laboratory. Cal Poly will be providing pro bono services for the King City Planning Laboratory. Therefore, an agreement will only be executed if requested by Cal Poly and will reflect the Scope of Work.
COST ANALYSIS:
Because the City meets the definition of a disadvantaged community, the City and Regional Planning Department can provide some funding. Project costs that can be covered by Cal Poly include: 1) travel for students and faculty to and from San Luis Obispo to King City, 2) food, materials, and advertisements related to community engagement efforts, and 3) Spanish-speaking translators (college students) working with CRP students in community engagement efforts.
Therefore, the City is not required to make any financial commitment in the agreement. The only potential cost items include supplemental food and refreshments, additional notification (e.g., newspaper notification) and other miscellaneous items, which can be funded from the City’s existing General Fund Budget.
ENVIRONMENTAL REVIEW:
The research and process has no potential for resulting in either a direct or indirect adverse physical change in the environment and is not a “project” under CEQA Guidelines 15378. Therefore, no further review is required by CEQA.
ALTERNATIVES:
The following recommendations are provided for City Council consideration:
1. Accept staff’s recommendation;
2. Provide comments regarding staff’s recommendation;
3. Do not approve of the Planning Laboratory class working with the City;
4. Request additional information; or
5. Provide staff other direction.
01222.0005/697016.1
Item No. 9 (H)
REPORT TO THE CITY COUNCIL
DATE: SEPTEMBER 27, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROY C. SANTOS, CITY ATTORNEY
DOREEN LIBERTO, AICP, COMMUNITY DEVELOPMENT DIRECTOR
RE: CONSIDERATION OF AMENDED MILLS RANCH AFFORDABLE
HOUSING AGREEMENT
RECOMMENDATION:
It is recommended the City Council adopt the attached Resolution approving an amended Mills Ranch Affordable Housing Agreement. (Reference Exhibit 1) BACKGROUND:
The Mills Ranch Specific Plan was approved by the City Council on August 30, 2005. The project approval included a Final Environmental Impact Report (“EIR”) and an EIR Addendum, which the Council certified on March 28, 2005. In addition to the Specific Plan, the City Council approved a General Plan Amendment, Vesting Tentative Tract Map and Design Manual. The 92.37-acre Specific Plan consists of 400 residential units, a small commercial site, 7.5 acres of parklands, and 1.1 acres of open space, including a linear park that provides a buffer from adjoining agriculture along the north and setbacks from the railroad along the east side of the development. The Mills Ranch Specific Plan was subsequently acquired by Nino Family Limited Partnership (“NFLP”).
Under the Affordable Housing Ordinance in place at the time, the project needed to include 15% inclusionary housing for low-income households. This required the project to provide 60 affordable housing units. In 2005, the City Council entered into the Mills Ranch Affordable Housing Program Agreement which was recorded in 2006 (“2006 Agreement”). It allowed the developer to provide 10%, or at least 40 units, as affordable housing onsite. The remaining 5% obligation was met by providing $605,000 to the Housing Authority to rehabilitate the Leo A. Meyer Senior Plaza. Five parcels were identified in the Mills Ranch Specific Plan for the 40 or more affordable housing units. (Reference Exhibit 2) The 2006 Agreement includes a preferential program for city and school employees and local workers. The Community Housing Improvement Systems and Planning Association, Inc. (“CHISPA”) will be constructing the affordable housing
CITY COUNCIL
CONSIDERATION OF AMENDED MILLS RANCH AFFORDABLE HOUSING
AGREEMENT
SEPTEMBER 27, 2022
PAGE 2 OF 3
01222.0005/697016.1
units in the Mills Ranch Specific Plan. Their intent is to obtain government funding to construct the units. On February 23, 2021 (“2021 Agreement”), the City Council adopted an amended Affordable Housing Agreement to remove the preferential program at the request of CHISPA. In August 2022, NFLP informed the City that their Title Company representative said the 2021 Agreement needed to be amended and include two additional recorded documents.
DISCUSSION
CHISPA will be constructing the 40 affordable housing units on 5 parcels in the Mills Ranch Specific Plan (Reference Exhibit 2). Attached is an amended Mills Ranch Affordable Housing Agreement which removes the preference program, acknowledges the developer’s payment of the $605,000 to the Housing Authority and clarifies miscellaneous other issues.
Preferences for City employees and teachers were popular at the time the project was approved because many cities were experiencing problems with employees living a long distance from the jurisdiction. It was a particular concern for emergency response personnel. There are a number of factors that have now made these requirements infeasible or unnecessary. First, there are now legal issues with these requirements.
Second, they were typically directed toward workforce housing units. CHISPA’s units will consist of low and very-low income households, so most employees within the current categories of preference may not qualify. Since King City’s housing costs are lower than surrounding areas, housing cost is most likely not the primary cause of employees that live outside King City. Lastly, most difficult for CHISPA is that the preference would make CHISPA ineligible for the grant programs they are pursuing. Therefore, construction of the units will be infeasible under the current restrictions.
For some reason in 2006, three identical documents entitled "Mills Ranch Affordable Housing Program Agreement" were recorded. The Doc Nos. are: 2006012629, 2006012630 and 2006012631. The 2021 amended Agreement was recorded on April 2, 2021 (Doc. No. 2021024098). The 2021 Agreement amended 2006012629 but not Doc. No. 2006012630 and Doc No. 2006012631. At the time, staff was unaware of the duplicate documents that had been recorded in 2006.
Therefore, the proposed Resolution will address all three of the documents.
ENVIRONMENTAL REVIEW:
Staff has performed a preliminary environmental assessment of this project and, pursuant to CEQA Guidelines, section 15378, has determined with certainty that there is no possibility that this project may have a significant effect on the environment. This is because the proposal modifies an existing Affordable Housing Agreement and no
01222.0005/819674.1
RESOLUTION NO. 2022-XXXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KING APPROVING AN
AMENDED MILLS RANCH AFFORDABLE HOUSING AGREEMENT BETWEEN
THE CITY OF KING AND NINO FAMILY LIMITED PARTNERSHIP
WHEREAS, on August 30, 2005, the City Council (“Council”) approved the Mills Ranch Specific Plan, which included a condition of approval that an Affordable Housing Agreement would be adopted pursuant to the City’s Inclusionary Housing Ordinance; and
WHEREAS, in 2006, the Council entered into the Mills Ranch Affordable Housing Program Agreement (“2006 Agreement”) which allowed the developer to provide ten percent (10%), or forty (40) units as onsite affordable housing and the remaining five percent (5%) obligation would be met by providing $605,000 to the Monterey County Housing Authority to rehabilitate the Leo A. Meyer Senior Plaza, a seventeen (17) building complex with forty-four (44) units reserved for low-income senior citizens and low income disabled tenants; and
WHEREAS, the Community Housing Improvement Systems and Planning Association, Inc. (“CHISPA”) will be constructing the onsite affordable housing units on five (5) parcels, as shown on Exhibit 2; and
WHEREAS, the 2006 Agreement required a preference program for city, school district and local employees, which is being deleted as part of the Amended 2006 Agreement, along with acknowledgement that the required $605,000 payment to the Monterey County Housing Authority had been paid, and several other minor modifications, as requested by CHISPA and agreed to by the Nino Family Limited Partnership, Mills Ranch Developer; and
WHEREAS, on February 23, 2021, the Council adopted Resolution No. 2021- 4800 (recorded Doc No. 2021024098) approving an amended Mills Ranch Affordable Housing Agreement, which removed the housing preference program (recorded Doc No. 2006012629); and
WHEREAS, in August 2022, the City was informed that there were two additional recorded documents that needed to be cited in the amended Mills Ranch Affordable Housing Agreement (recorded Doc No. 2006012630 and Doc No. 2006012631); and WHEREAS, the amendments to the 2006 Agreement have been reviewed and staff has determined that pursuant to CEQA Guidelines, section 15378, there is not a possibility that the amendment will have a significant effect on the environment because it modifies an existing Affordable Housing Agreement and no physical changes will occur by virtue of the amended language, and therefore the project is not subject to CEQA.
Exhibit 1
01222.0005/819674.1
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of King hereby approves the amendments to the 2006 Agreement, and in accordance with Exhibit 1.
This resolution was passed and adopted this 27
th day of September 2022 by the
following vote:
AYES, Council Members:
NAYS, Council Members:
ABSENT, Council Members:
ABSTAIN, Council Members:
APPROVED:
___________________________
Mike LeBarre, Mayor
ATTEST:
__________________________________
Erica Sonne, City Clerk
APPROVED AS TO FORM:
___________________________________
Roy C. Santos, City Attorney
1 RECORDING REQUESTED BY
CITY OF KING, A MUNICIPAL CORPORATION
AND WHEN RECORDED MAIL TO
City of King
Attn.: CityClerk
212 S. Vanderhurst Ave.
King City, CA. 93930
No Fee Per Government Code §6103
CITY OF KING
County of Monterey, State of California
APN
AMENDED MILLS RANCH
AFFORDABLE HOUSING PROGRAM
AGREEMENT
The Amended Mills Ranch Affordable Housing Program Agreement (hereafter “Agreement”) is entered into this ___ day of ___________, 2022, by and between the CITY OF KING (“City”), a California Municipal Corporation, and NINO FAMILY LIMITED PARTNERSHIP (hereinafter referred to as either “Property Owner” or “Developer”), a California Corporation. The City and Developer may be referred to within this Agreement hereafter jointly as the “Parties.” Amending previously recorded documents 2021024098, 2006012629, 2006012630 and 2006012631.
RECITALS
WHEREAS, California Government Code section 65584, subdivision (a), requires cities to address the housing needs for persons of all income levels; and WHEREAS, the City Council of the City of King has determined that there exists a shortage of new housing affordable to low and moderate-income households; and WHEREAS, the City Council of the City of King has determined that an inclusionary housing program is necessary to ensure that a portion of all new housing is made affordable to lowand moderate- income households; and WHEREAS, on January 28, 2003, the City Council of the City of King has adopted Ordinance No. 637, attached hereto as Exhibit A, mandating that, for projects containing thirty (30) or more housing units, developers provide at least fifteen percent (15%) of their project for low-to-moderate income households (“Inclusionary Housing Program”); and Exhibit 1
2 WHEREAS, Chapter 17.19, of Title 17 of the King City Municipal Code provides that a developer may fulfill the Inclusionary Housing Program goals by either providing on-site units or providing an equivalent program, subject to review and approval by the City Council to fulfill the Inclusionary Housing Ordinance. Section 17.19 allows the King City Council to provide developer incentives for developer participation in the Inclusionary Housing Program; and WHEREAS, the King City Housing Element adopted in October of 2004 provides for creation of a wide range of housing types to meet the regional housing needs, and supports incentives and concessions to support residential rehabilitation and prioritizes support to assist agencies and entities that provide for special needs housing, including senior housing; and WHEREAS, the Leo A. Meyer Senior Plaza is a seventeen (17) building complex with forty-four (44) units reserved for low-income senior citizens and low income disabled tenants.
The units located at 425 Queen Street are in a seriously deteriorated state and experiencing moisture problems, placing continued operation of the Center and its housing at risk and placing the continued availability of this kind of high priority, hard to find and hard to replace, senior lowincome and disabled housing at imminent risk of loss from City housing stock; and WHEREAS, the Housing Authority of the County of Monterey can make repairs and preserve the forty-four (44) units of low income units in the Leo A. Meyer Plaza for approximately six hundred and five thousand dollars ($605,000.00); and WHEREAS, Developer is the owner of the property located north of and adjacent to San Antonio Blvd. and west of and adjacent to Spreckels Road, described more particularly in Exhibit B, attached (“Property”); and
WHEREAS, Developer proposes to construct four hundred (400) residential units on the Property (“Project”); and
WHEREAS, application of the Inclusionary Housing Ordinance would require that fifteen percent (15%) or sixty (60) units be affordable to very low, low and moderate income people, unless the Developer proposes an equivalent option; and WHEREAS, the Developer proposes to provide ten percent (10%) or forty (40) of its units as permanently affordable low income households on-site and to meet the other (5%) of its inclusionary housing obligation by providing the sum of six-hundred and five thousand dollars ($605,000.00) to the Housing Authority of the County of Monterey, as the operator and for the benefit of the Leo A. Meyer Senior Plaza, to be used for and dedicated to the rehabilitation of the forty-four (44) existing but dilapidated units at the Leo A. Meyer Plaza and to the preservation of those units as part of the City's housing stock; and
WHEREAS, it is the intention of the City and Developer to set forth the covenants, conditions and restrictions related to Inclusionary Housing and applicable to the Property by this separate document,
NOW, THEREFORE, in consideration of the foregoing, and of the mutual terms and conditions hereinafter set forth, the Parties agree to all the following:
3 1. Developer's Covenant to Participate in Inclusionary Housing Program. Developer shall participate in the City's Inclusionary Housing Program by providing forty (40) or more units within the Property as affordable housing for at least 55-years or a longer-term if so required by the California Tax Credit Allocation Committee or by another source of funding, for low income households, as set forth more fully in the Rental Inclusionary Program Deed Restriction, and providing a six hundred five thousand dollar ($605,000.00) in lieu fee for the remaining twenty (20) units in accordance with Paragraph 5 below. The forty (40) or more units may include one (1) unit set aside for the onsite property manager. If an onsite property manager is not utilized the unit shall be income restricted in the same manner as the other units.
2. Satisfaction of Conditions. Execution, recordation of deed restrictions against the affected parcels within the boundaries of each Final Map, and performance of this Agreement shall constitute performance of those conditions of approval for the Project that relate to the Inclusionary Units and shall be sufficient in that respect to permit issuance of building permits within each Final Map, subject to the satisfaction of all other applicable conditions. Prior to recordation of the first Final Map, Developer shall provide to the City by way of the City Manager or his/her designee a program detailing how the Inclusionary Units will be managed and if Developer proposes to employ a Manager, as defined in Section 12, Developer shall comply with the provisions of Section 12. The City agrees that this Agreement provides the Developer Assurances required by the Inclusionary Housing Ordinance. Developer shall meet or exceed the minimum affordable housing unit number thresholds with the completion of each phase of the Project as set forth in Inclusionary Housing Program Section 17.90.20.
Neither amending, modifying or transferring ownership of any parcel of land subject to this Agreement shall alter any obligations or conditions already completed or satisfied by the Property Owner and/or Developer.
3. Definitions.
3.1 Median Income. Median Income shall mean the median income level as established by the State of California and/or the United States Department of Housing and Urban Development and adjusted for household size. Should the State of California cease to publish information regarding the area median income level, a similar index reasonably and substantially reflecting the Median Income may be mutually agreed upon by the Parties and any additional interested party and be used to establish such information. In the absence of data or index establishing the median income, and in the event the Parties cannot agree to an index to replace the HUD/State of California index, a replacement index shall be selected by a third party amenable to the Parties.
If the Parties fail to agree to a private third party arbiter, either or both Parties may seek declaratory or other appropriate equitable relief from the California Superior Court for the County of Monterey to establish an index most likely to reliably measure or approximate Median Income for purposes of administering the City’s inclusionary housing program.
3.2 Developer. Nino Family Limited Partnership.
3.3 Inclusionary Housing Program. Inclusionary Housing Program shall have the meaning set forth in the Recitals.
4 3.4 Inclusionary Unit. Inclusionary Unit shall refer to any and all of the forty (40) or more Low Income units restricted by this Agreement. However, one (1) unit may be set aside for use by an onsite property manager.
3.5 In Lieu Fee. In lieu fee shall mean a fee which shall allow the developer to develop 360 homes at market rate and allow the City or its designee to build, rehabilitate and/or preserve affordable units off site.
3.6 Low Income Households. Low income households are households with cumulative, total incomes which does not exceed the maximum amounts as set forth by the State of California, including but not limited to the California Tax Credit Allocation Committee, and/or United States Department of Housing and Urban Development or their respective designated agencies and/or departments.
3.7 Manager. Manager shall mean any agent employed by Property Owner to manage the rental, maintenance, or operation of any Inclusionary Unit.
3.8 Map of the Mills Ranch Inclusionary Units. Map of the Mills Ranch Inclusionary Units shall have the meaning set forth in Exhibit C.
3.9 Project. Project shall mean the development of the Mills Ranch Community.
3.10 Property. Property shall have the meaning set forth in the Recitals.
3.11 Property Owner, The term Property Owners within this Agreement shall include an owner or owners of record of a parcel on which an Inclusionary Unit is built.
3.12 Rental Inclusionary Unit. A Rental Inclusionary Unit is one which is offered for rent to income-restricted households for a restricted rent in accordance with the state and federal guidelines for affordable housing.
4. Number of Housing Available to Low Income Households. Forty (40) or more units shall be available to Low Income Households.
5. In Lieu Fee for Off-Site Special Needs Housing. Developer has paid an in lieu fee of six-hundred and five thousand dollars ($605,000.00) to the Housing Authority of the County of Monterey (FIN 94-6000757), at 123 Rico Street, Salinas, CA 93907, for the exclusive benefit of the Leo A Meyer Senior Plaza, said funds to be used for the preservation, rehabilitation and repair of forty-four (44) units of low income special needs housing, located at 425 Queen Street, King City. Payment of said in lieu fee was a condition precedent to the recording of the final map for the first phase of the Project. City agrees that the in lieu fee in conjunction with the provision of the forty (40) or more on-site affordable rental units will satisfy the Developer's inclusionary obligation.
5.1 Accounting. The Housing Authority of the County of Monterey shall be requested, as a condition of its receipt of the In Lieu Fee, to render periodic accountings of its expenditure and use of the in lieu fee to the City Council, in care of the City Manager, 5 not less frequently than semi-annually after the fee is paid by Developer, and continuing until the fee has been expended in full.
6. Base Levels of Amenities and Market Value of Market and Affordable Homes.
Pursuant to King City Municipal Code section 17.19.040, subdivision (2)(A), the City and the Developer agree that all units, whether designated affordable under this Program or market units, will be constructed in conformance with the Mills Ranch Specific Plan and Design Manual and that the affordable units will be constructed using substantially the same basic level of amenities and having substantially the same market value as the market rate units.
7. Rental Units. Property Owner shall cause to be recorded on properties containing the rental units a Deed Restriction which incorporates and requires the property owner to rent, manage and maintain the Inclusionary Units for residential occupancy in accordance with the Rental Inclusionary Program, attached hereto in Exhibit D.
8. Recordation of Deed Restrictions Developer shall cause deed restrictions substantially similar to those attached in Exhibits D to be recorded against each parcel containing an Inclusionary Unit, as applicable, concurrently with recordation of each final map for the Project.
Restrictions shall incorporate this Agreement by reference. Recording of these deed restrictions shall satisfy Developer's obligation to ensure the continued provision of the Low Income housing for the term of this Agreement.
9. Binding Agreement. The terms, conditions, and covenants of this Agreement shall apply to, and shall bind the heirs, successors, executors, administrators, assigns, contractors, subcontractors, and grantees of the Parties and shall be covenants running with the land, each and every deed, contract, or other instrument thereafter executed covering or conveying the Property or any portion thereof shall conclusively be held to have been executed, delivered and accepted subject to such terms, conditions, and covenants, regardless of whether set forth in such deed, contract or other instrument. The terms, conditions and covenants of this Agreement shall be subordinate to the primary lien holder only upon foreclosure or a deed-in-lieu of foreclosure.
10. Amendment. This Agreement shall be amended only by a written instrument executed by the Parties hereto. ·
11. Termination. The terms, conditions, and covenants of this Agreement shall automatically terminate after payment of the in lieu fee and shall remain for at least 55-years or a longer-term if so required on a Lot which contains an Inclusionary Rental Unit.
12. Indemnification of City. Except for legal proceedings otherwise expressly contemplated and provided for in Paragraph 3.1, the Property Owner shall indemnify, hold harmless and defend the City and its council members, officers, officials, agents, contract employees, appointees and employees thereof against all loss, costs, damages, actions and liabilities of whatever nature directly or indirectly resulting from or arising out of the following:
(i) the design, construction, management, or occupancy of the Project and all rental housing created pursuant to this Agreement whether inclusionary units or market value units; (ii) any written statement or representation provided to the City or to prospective or actual tenants or purchasers of the Property with respect to the Property Owner's performance hereunder; and (iii) the performance or non-performance of this Agreement. If any such claim is asserted, or any 6 such impositions or charges are sought to be imposed, the City shall give prompt notice to the Property Owner(s) and the Property Owner(s) shall have the duty to assume, and will assume, the defense thereof, with full power to litigate, compromise or settle the same in its discretion, provided that the City shall have the right to review and approve or disapprove any such pleadings, settlement or compromise.
13. Burden and Benefit. The City and the Developer hereby declare their intent and understanding that the burden of the covenants set forth herein touch and concern the land by enhancing and increasing the enjoyment and use of the Project by Low Income tenants, the intended beneficiaries of such terms, conditions and covenants, and by furthering the public purpose for which the City adopted its Inclusionary Housing Program.
14. Consideration. The City adopted and implemented the Inclusionary Housing Program for the purpose, among others, of requiring the Developer to construct and operate affordable housing units in the City. In consideration of the adoption of the Program, and the required provision of affordable units, the Developer and the City have entered into this Agreement,
15. Waivers. No waiver by either party of any provision of this Agreement, or of any portion hereof, or of any ordinance or law, shall be deemed to be a waiver of any other provision of this Agreement, or of any ordinance or law.
16. Equal Housing Opportunity. Developer and Property Owner(s) warrant that they will not discriminate against Project tenants, or applicants for tenancy, on the basis of (a) their race, color, creed, sex or national origin; or (b) their receipt of governmental housing assistance; or (c) their age or disability, provided they are otherwise qualified for tenancy.
17. Integration. This Agreement sets forth the entire understanding of the parties relating to the transactions they contemplate, and supersedes all prior understandings relating to them, whether written or oral. There are no obligations, commitments, representations or warranties relating to them except those expressly set forth in this Agreement.
18. Severability. If any provision contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, then such provision shall be deemed severable from the remaining provisions, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.
19. Administrative Remedies. City may enforce the terms of this Agreement through administrative remedies as set forth in Title 20 of the King City Municipal Code, as it may be amended from time to time, or as otherwise permitted under the King City Municipal Code. / / /
/ / /
/ / /
7 20. Legal Costs. The prevailing party shall be reimbursed for all court costs and its reasonable attorneys' fees in the event legal action is undertaken to enforce this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.
CITY OF KING
By_____________________________
Mike LeBarre, Mayor
NINO FAMILY LIMITED PARTNERS
By______________________________
Mike Nino
Nino Family Limited Partners
[Notarial Acknowledgement] [Notarial Acknowledgment]
APPROVED AS TO FORM:
By_____________________________
Roy C. Santos, City Attorney
EXHIBIT LIST
01222.0005/819281.1
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA
COUNTY OF MONTEREY
On __________, 2022 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature: _____________________________________
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
INDIVIDUAL
CORPORATE OFFICER
_______________________________
TITLE(S)
PARTNER(S) LIMITED
GENERAL
ATTORNEY-IN-FACT
TRUSTEE(S)
GUARDIAN/CONSERVATOR
OTHER_______________________________
______________________________________
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
_____________________________________________
_____________________________________________
___________________________________
TITLE OR TYPE OF DOCUMENT
___________________________________
NUMBER OF PAGES
___________________________________
DATE OF DOCUMENT
___________________________________
SIGNER(S) OTHER THAN NAMED ABOVE
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.
Exhibits to Mills Ranch Affordable
Housing Program
01222.0005/819281.1
RECORDING REQUESTED BY
CITY OF KING, A MUNICIPAL CORPORATION
AND WHEN RECORDED MAIL TO
City of King
Attn.: CityClerk
212 S. Vanderhurst Ave.
King City, CA. 93930
No Fee Per Government Code §6103
CITY OF KING
County of Monterey, State of California
APN
MILLS RANCH DEED RESTRICTION FOR AFFORDABLE HOUSING
UNITS
(RENTAL DEED RESTRICTION - GARDEN APARTMENTS)
INCLUSIONARY HOUSING COVENANTS, CONDITIONS AND
RESTRICTIONS TO ASSURE AFFORDABLE HOUSING FOR LOW
INCOME FAMILIES
NOTICE OF INCOME LIMITS AND RENTAL PRICE RESTRAINT
THIS PROPERTY IS SUBJECT TO COVENANTS, CONDITIONS AND RESTRICTIONS
DESIGNED TO ASSURE AFFORDABLE HOUSING FOR LOW AND VERY LOW INCOME
FAMILIES IN ORDER TO ASSURE THE CONTINUING AFFORDABILITY OF RENTAL UNITS ON THIS PROPERTY. THESE COVENANTS, CONDITIONS AND RESTRICTIONS
MAY SIGNIFICANTLY REGULATE THE RENTAL PRICE OF UNITS ON SAID PROPERTY BELOW MARKET VALUE AND RESTRICT THE OCCUPANCY THEREOF. THESE
RESTRICTIONS ARE BINDING UPON PURCHASERS, AND THEIR SUCCESSORS AND ASSIGNS. THESE COVENANTS, CONDITIONS AND RESTRICTIONS SHOULD BE
CAREFULLY READ AND FULLY UNDERSTOOD BEFORE PURCHASING THE SUBJECT
PROPERTY, AS THE RENTAL OF UNITS IN VIOLATION OF THE PROVISIONS HEREIN
MAY CAUSE LEGAL ACTION TO BE TAKEN BY THE CITY OF KING TO ENFORCE THE
PROVISIONS AGAINST THE VIOLATOR AND SUBJECT THE VIOLATOR TO THE PAYMENT OF ATTORNEYS' FEES AND COSTS OF SUCH ENFORCEMENT.
The undersigned, ,(“Owners”, “Undersigned” or “Property Owners”) are the owners of the real property located in the County of Monterey, California, at within the Final Maps (as defined in the California Subdivision Map Act) for Tract No. which has been filed on record with the Office of the County Recorder of Monterey County, California known as a part of the Mills Ranch Development (“Development”) as described in Exhibit “A” attached to this Agreement.
The undersigned agrees to participate in, on behalf of himself, his beneficiaries, successors and assigns to be bound by the Rental Inclusionary Housing Program attached and incorporated herein as Exhibit “B”.
DATED: _
[Notarial Acknowledgement]
Exhibits to Mills Ranch Affordable
Housing Program
01222.0005/819281.1
EXHIBIT B
PROPERTY DESCRIPTION
Exhibits to Mills Ranch Affordable
Housing Program
01222.0005/819281.1
EXHIBIT C
RENTAL UNITS
1. Covenant to Rent Inclusionary Units. Property Owner shall maintain the Inclusionary Units for residential occupancy and may only rent the Inclusionary Units on his or her property to Low or Very Low Income Households, as applicable to the specific unit on his or her property, at a rent not greater than that established in Paragraphs 2 and 3, herein below.
2. Monthly Rent for Low Income Households. Rents will be set at rates acceptable to the State of California Tax Credit Allocation Committee (TCAC Rents). TCAC rents are set based upon County Low and Very-Low Income rents. Household size limitations or restrictions shall be established by the Department of Housing and Urban Development and/or the State of California.
3. Monthly Rent for Very Low Income Households. Rents will be set at rates acceptable to the State of California, including but not limited to the California Tax Credit Allocation Committee (TCAC Rents). TCAC rents are set based upon County Low and Very-Low Income rents.
4. Tenant Information Provided by Property Owner, Property Owner shall collect information from tenants for Inclusionary Units and shall rent said units at the rate set forth above to only those tenants meeting the income qualifications set forth by TCAC and/or the United States Department of Housing and Urban Development.
5. Management of Inclusionary Units. Property Owner may manage the Inclusionary Units it owns but, prior to employing any agent to manage the rental, maintenance, or operation of any Inclusionary Unit ("Manager''), the Property Owner shall provide a list of proposed Managers to - the City for review and approval City shall evaluate and reasonably approve proposed Managers based on the following criteria: ability and capability to manage the subject Inclusionary Units; previous experience managing similar income-restricted units; and, capability to protect the public's and the City's interest with regard to the Inclusionary Units. Approved Managers are likely to include, but are not limited to, housing authorities, non-profit organizations or other entities with the legal capacity and proven experience and expertise to carry out the proposed management operations.
6. Applicant Selection, Property Owner shall comply with all federal, state and local fair housing rules, regulations and statutes and shall conduct an applicant screening process acceptable to the Property Owner, the Investor, lenders, and the State of California, including but not limited to the California Tax Credit Allocation Committee.
7. Limited Construction. Nothing contained herein shall be deemed compliance with, or waiver of, any provision of law or condition of approval, except as is expressly stated herein with respect to conditions relating to provision of inclusionary Units.
8. Onsite Parking. Property Owner shall provide the number of onsite parking spaces required by the King City Municipal Code, California Building Code and any other applicable state, federal and local rules, regulations and statutes.
9. Enforcement. This Program and the Deed Restriction of which it is a part, are enforceable by City against the Property Owner to the full extent allowed by law, including but not limited to enforcement of the terms of the inclusionary housing conditions, covenants and restrictions through administrative remedies assetforth in Title 20 ofthe King City Municipal Code, as it may be amended from time to time, or as otherwise permitted under the King City Municipal Code, as it may be amended.
Metz Road
Spreckels Road
San Antonio Drive Meyer Avenue
Ermosa Way
Legacy Drive
Divina Way
Livingston Avenue
Maple Street
Beech Street
Heirloom Place
Lewis Street
East San Antonio Drive
Bishop Street
Calcagno Street North 3rd Street
Soberanes Street
North 2nd Street
Brandywine Lane
Pine Circle
Oak Circle
Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community
.
Affordable Housing Parcels
0 250 500
Feet
Mills Ranch Affordable Housing Parcels
King City, CA
EXHIBIT 2
Item No. 9(I)
REPORT TO THE CITY COUNCIL
DATE: SEPTEMBER 27, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: MIKE HOWARD, FINANCE DIRECTOR
RE: CONSIDERATION OF CITY OF KING KCCP PAYMENTS FOR
THE MONTH OF JULY 2022
RECOMMENDATION:
It is recommended City Council receive and file.
BACKGROUND:
At least once a month, the City Treasurer shall submit to the City Council, a copy of the invoices paid for the previous month.
DISCUSSION:
The purpose of this item is to provide the Council an opportunity to review and monitor ongoing expenditures. These documents are attached.
COST ANALYSIS:
There is no fiscal impact as a result of this action.
ENVIRONMENTAL REVIEW:
No Environmental Review required for this item.
ALTERNATIVES:
The following alternatives are provided for Council consideration:
1. Receive and file the report; or
2. Provide other direction to staff regarding requests for additional information.
Item No. 11 (A)
REPORT TO THE CITY COUNCIL
DATE: SEPTEMBER 27, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF LEASE AGREEMENT FOR TEMPORARY
USE OF CITY PROPERTY FOR FOOD TRUCK
RECOMMENDATION:
It is recommended the City Council: 1) approve and authorize the City Manager to execute a Lease Agreement with R Truck, Inc. for temporary use of the City’s property at 332 Broadway Street as a pilot program to determine the market conditions for a brick and mortar restaurant; and 2) authorize the City Manager to make non-substantive modifications to the Lease Agreement if necessary in a form approved by the City Attorney.
BACKGROUND:
The City has implemented an extensive economic development program focused largely on improvements to the downtown area in order to attract new businesses and jobs. A primary objective has been to attract new restaurants of different types in order to encourage a more active and pedestrian oriented environment that will be a destination for both residents and visitors. However, given the investment involved, it has been challenging to convince restaurant operators of the City’s vision for the downtown without a long history of success.
Therefore, it requires some creative incentives to make progress. Once a few new types of businesses are successful, momentum will begin to build to make it easier. The City has been particularly involved in efforts to attract an Italian restaurant. Based on input received from the community, staff believes there is strong demand. One of the potential businesses contacted by the City’s outreach efforts has been Pastabilities, which is also operated by the owners of Luigi’s. As a result, they are currently in discussions with a property owner for a potential lease of a building in the downtown area. However, they have recently
CITY COUNCIL
CONSIDERATION OF LEASE AGREEMENT FOR TEMPORARY USE OF CITY
PROPERTY FOR FOOD TRUCK
SEPTEMBER 27, 2022
PAGE 2 OF 3
invested in a new Food Truck and would like to first operate it in King City on a temporary basis to test the demand before making a long-term commitment.
DISCUSSION:
Staff proposes to allow them to operate the Food Truck temporarily at the Downtown Plaza property until construction begins on the Downtown Plaza project. This is adjacent to properties under consideration for a brick and mortar restaurant, so it would provide a good pilot to provide a realistic test of the business concept. They have requested to operate on Thursday, Friday and Saturday evenings from 3:00 p.m. to 9:00 p.m. The truck would be parked at the southeast corner of the parcel next to the buildings to provide it the same type of visibility that would be experienced by a brick and mortar restaurant.
A lease document has been prepared by the City Attorney, which is attached for consideration. Under the terms of the lease, they would insure and indemnify the City and pay rent at a rate of $30 per day. The term of the lease would be October 13, 2022 through February 18, 2023. This should provide adequate time to test the demand and would not impact the schedule for the Downtown Plaza project. Under the provisions of the lease, the lessee will also be allowed to utilize the bathroom in the Visitor and History Center building for their employees.
Since the City would be allowing use of City property for a commercial enterprise, it would set a precedent and make it legally difficult for the City to deny similar requests from other food trucks. However, it is recommended that parameters be established for the use of the property for food trucks, which would include the following:
• Limit use of the property only to food trucks proposing to utilize the lease as a basis to test the demand for a future brick and mortar business; • Lessee would need to provide evidence that the food truck business has identified potential brick and mortar sites and taken initial steps toward a potential lease or purchase;
• Limit leases to a minimum of 3 months to provide an adequate test period, but cease any issuances of leases when adequate time is no longer available prior to commencement of construction on the site; • Any other food trucks allowed to operate on the site would be spaced in different locations.
Staff believes there is adequate space on the property to accommodate additional food trucks if necessary without it impacting the operation of this proposal.
Exhibit 1