2 3
5 6
PASSED, APPROVED, and ADOPTED this 3rd day of May, 2022, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST: APPROVED:
____________________________ _______________________
Andrea Alexander R. REX PARRIS
City Clerk Mayor
City of Lancaster City of Lancaster
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF LANCASTER )
CERTIFICATION OF RESOLUTION
CITY COUNCIL
I, ,
City of Lancaster, California, do hereby certify that this is a true and correct copy of the original Resolution No. 22-14, for which the original is on file in my office.
WITNESS MY HAND AND THE SEAL OF THE CITY OF LANCASTER, on this _________ day of ________________, ________.
(seal)
STAFF REPORT
City of Lancaster
CC 11
5/3/2022
JC
Date: May 3, 2022
To: Mayor Parris and City Council Members
From: Jeff Hogan, Senior Director – Development Services Larissa De La Cruz, Senior Manager – Community Development Cynthia Campaña, Senior Planner – Community Development Subject: Additional Authorization No. 2 to Professional Services Agreement for Additional Work - Housing Element Implementation (RFQ 721-19)
Recommendations:
1. Recognize reimbursable grant fund revenue from the California Department of Housing and Community Development (HCD) Senate Bill 2 Planning Grants Program in the amount of $209,775.00 into account number 349-3700-001, and appropriate the same amount to expenditure account number 349-4770-770; and,
2. Approve award of Additional Authorization No 2. to Moore Iacofano Goltsman, Inc., (MIG) of Pasadena, California, to amend the Professional Services Agreement in the amount of $209,775.00 to include Housing Element implementation; and authorize the City Manager, or his designee, to sign all documents.
Fiscal Impact:
$209,775.00 in grant funding, with expected recovery of grant expenditures and recognition of revenue in Fiscal Year 2022-2023.
Background:
Cities and counties are required to update their Housing Elements every eight years, and to show that they have the sites available to accommodate the housing allocation from the Regional Housing Needs Assessment (RHNA). Once the 2021-2029 Housing Element is adopted, then the City is tasked to complete Housing Element programs, which include Zoning Code updates and creation of outreach and informational materials.
A Request for Qualifications (RFQ) for the preparation of the Housing Element Update (RFQ 721- 19) was issued on November 12, 2019. In addition to the RFQ being available through the City’s standard purchasing procedures, it was also sent to consulting firms that prepare General Plans and 8 7
7 Housing Elements. MIG responded and it was determined that they were qualified to perform the work required. A contract was signed for the optional tasks in the amount of $110,433.00 on June 9, 2020. On June 17, 2020, the City received its contract for SB 2 funding from the State, and retained MIG to prepare the remainder of the work identified in their response to RFQ 721-19. On September 22, 2020, the City approved Additional Authorization No. 1, to amend and increase the Professional Services Agreement in the amount of $100,177.00 to prepare the Housing Element and other required updates to the existing General Plan. Approving Additional Authorization No. 2 would allow MIG to complete Housing Element implementation tasks.
CC/jr
Attachments:
Agreement
Additional Authorization No. 2
- 1 -
Professional Services Agreement; December 2018
AGREEMENT FOR PROFESSIONAL SERVICES
THIS AGREEMENT FOR PROFESSIONAL SERVICES is made and entered into this _____ day of _____________, 2020, by and between the CITY OF LANCASTER, a municipal corporation and charter city , (“City”), and Moore Iacofano Golt sman, Inc. (“MIG”) , a California corporation (“Consultant”) (collectively, sometimes referred to hereinafter as the “Parties”).
RECITALS
WHEREAS, the City desires to engage Consultant to perform certain technical and professional services, as provided herein, identified as:
RFQ #721-19 Housing Element Update (THE “SERVICES”)
WHEREAS, the principal members of Consultant are qualified and duly registered/licensed under the laws of the State of California, and Consultant desires to accept such engagement; NOW, THEREFORE, the parties agree as follows:
1. Parties to the Agreement.
The parties to this Agreement are:
A. CITY: City of Lancaster
B. CONSULTANT: Moore Iacofano Goltsman, Inc.
2. Notices. All written notices required by or related to this Agreement shall be sent by Certified Mail, Return Receipt Requested, postage prepaid and addressed as listed below. Neither party to this Agreement shall refuse to accept such mail; parties to this Agreement shall promptly inform the other party of any changes of address. All notices required by this Agreement are effective on the day of receipt, unless otherwise indicated herein.
CITY City of Lancaster
Attn: Jason Caudle, City Manager
44933 North Fern Avenue
Lancaster, CA 93534
CONSULTANT Moore Iacofano Goltsman, Inc.
Attn: Laura Stetson
537 South Raymond Avenue
Pasadena, CA 91105
3. Successors and Assigns . The terms hereof shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto; prov ided, however, that no party hereto shall assign any of the benefits and burdens hereunder, whether voluntarily or by operation of law, without prior written consent of the other party, and any such assignments without said consent shall be void. 1 DocuSign Envelope ID: 69A143D6-164A-480E-8D11-D26B7DB537F5
4. Description of Work . The City hereby engages Consultant, and Consultant accepts such engagement, to perform the technical and professional services set forth in the “Scope of Services and Rates Schedule,” attached hereto as Exhibit “A” and incorporated herein by reference. Consultant shall perform and complete, in a manner satisfactory to the City , all work and services set forth in Exhibit “A.” The City Manager or his designee shall have the right to review and inspect the work during the course of its per formance at such times as may be specified by the City Manager, or his designee.
5. Obligations of the City.
A. The City
shall pay Consultant an amount not to exceed $110,433 for all work necessary to complete the Services, as described in the Scope of Services and Rates Schedule. Payments shall be due within thirty (30) days following submittal of an invoice detailing the services performed, at the hourly rates set forth in Exhibit A.
B. No payment made hereunder by the City to Consultant, othe r than the final payment, shall be construed as an acceptance by the City of any work or materials, nor as evidence of satisfactory performance by Consultant of its obligations under this Agreement.
6. Obligations of the Consultant.
A. Consultant shall perform as required by this Agreement and in accordance with the Scope of Services and Rates Schedule set forth in Exhibit A.
B. Consultant shall be responsible for payment of all employees’ wages and benefits, and shall comply with all requirements pertaining to employer ’s liability, workers’ compensation, unemployment insurance, and Social Security.
C. Consultant shall not subcontract any of the work required to perform the Services without the express prior written approval of the City.
7. Hold Harmless and Indemnification . Consultant agrees to indemnify and hold harmless the City, its elected officials, officers and employees, from and against any and all third party claims, losses, obligations, or liabilities whatsoever, including reasonable attorney ’s fees, incurred to the extent arising out of or related to Consultant ’s negligent or willful wrongful acts, errors or omissions, or those of its employees or agents. Consultant agrees to defend the City, its officers and employees, using counsel of the City’s choosing, from and against any and all claims covered by the indemnity in the preceding sentence except where caused by the active negligence or willful misconduct of the City.
8. Amendments. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon mutual written approval by the City and Consultant.
9. Non-Discrimination and Equal Employment Opportunity.
A. In the performance of this Agreement, Consultant shall not discriminate against any employee, subcontractor, or applicant for employment because of race, color, religion, ancestry, sex, national origin, physical or mental disability or age. Consultant will take affirmative action to ensure 2 DocuSign Envelope ID: 69A143D6-164A-480E-8D11-D26B7DB537F5 that subcontractors and applicants are employed, and that employees are treated during employment without regard to their race, color, religion, ancestry, sex, national origin, physical or mental disability or age. Affirmative action relating to employment shall include, but not be limited to the following:
employment, upgrading, demotion or transfer; rec ruitment; layoff or termination; rates of pay or other forms of compensation; and selection for training including apprenticeship.
B. The provisions of subsection A above shall be included in all solicitations or advertisements placed by or on behalf of Consultant for personnel to perform any services under this Agreement. The City shall have access to all documents, data and records of Consultant and its subcontractors for purposes of determining compliance with the equal employment opportunity and non- discrimination provisions of this Section.
10. Term; Effective Date. This Agreement shall become effective and shall be in full force and effect upon the execution of the Agreement by the City and the Consultant. This Agreement shall continue in full for ce and effect until October 31, 2021, unless the Agreement is sooner terminated in accordance with this Agreement; provided, however, that the City and the Consultant may mutually agree in writing to extend the Term of this Agreement.
11. Termination.
A. For Convenience. The City may terminate this Agreement at any time without cause by giving thirty (30) days written notice to the other party of such termination and specifying the effective date thereof. In the event of termination of this Agreement, C onsultant will be paid for work completed through the date of termination within thirty (30) days following submittal of a final invoice.
B. For Cause. If Consultant fails to perform the services called for by this Agreement or so fails to make progress as t o endanger performance of this Agreement in accordance with its terms, Consultant shall correct such failure within ten (10) days (or such longer period that the City may authorize in writing) after receipt of notice from the City specifying such failure. Should the failure not be corrected within this time period, the City may immediately terminate the Agreement by written notice to Consultant.
C. In the event of termination, whether for convenience or cause, reports, plans, studies and other documents (collectively, “documents”) related to the Services shall become the City’s property. Consultant shall provide all documents to the City that have not yet been within ten (10) calendar days after termination of the Agreement.
12. Independent Contractor. Consultant is an independent contractor and shall have no power or authority to incur any debt, obligation or liability on behalf of the City. It is ex pressly understood between the Parties to this Agreement that no employee/employer relationship is intended.
13. Insurance.
A. The Consultant, at its expense, shall maintain in effect at all times during the term of this Agreement the following coverage and limits of insurance, which shall be maintained with insurers listed “A-, VIII” or better in the Best’s Key Rating Guide:
3 DocuSign Envelope ID: 69A143D6-164A-480E-8D11-D26B7DB537F5 Commercial General Liability
Each Occurrence $1,000,000
Per Project General Aggregate $2,000,000
Including Products/Completed Operations; Contractual Liability/Independent Contractors; Property Damage
(Coverage shall be at least as broad as ISO form CG2010 11/85 or CG2010 07/04 and CG2037 07/04 combined, or an equivalent providing ongoing and completed operations) Commercial Automobile Liability
Combined Single Limit per Accident for
Bodily Injury and Property Damage $1,000,000
(Coverage shall be at least as broad as ISO form CA00 01) Workers Compensation
As Required by the State of California Statutory Limits Employers’ Liability
Each Accident $1,000,000
Bodily Injury by Disease $1,000,000
Each Employee $1,000,000
(A Waiver of Subrogation must be provided on behalf of the Certificate Holder for the Workers Compensation & Employers’ Liability policies)
Professional Liability
Each Occurrence $1,000,000
General Aggregate $1,000,000
Provide one of the following for cyber-related services Technology Professional Liability
(Errors and Omissions)
Each Occurrence $2,000,000
General Aggregate $2,000,000
(Coverage shall be sufficiently broad to respond to the duties and obligations as are un dertaken by Consultant pursuant to this Agreement and shall include, without limitation, claims involving invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, alteration of electronic information, extortion and network security. The policy shall provide coverage for breach response costs as well as any applicable regulatory fines and penalties as well as credit monitoring expenses with limits sufficient to respond to these obl igations.) Or
Cyber Liability Insurance
Each Occurrence $2,000,000
General Aggregate $2,000,000
B. The Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insured’s liability.
C. Professional liability and/or cyber insurance written on a “claims made” basis must be renewed for a period of three (3) years after this contract expires or is terminated. Such 4 DocuSign Envelope ID: 69A143D6-164A-480E-8D11-D26B7DB537F5 insurance must have the same coverage and limits a s the policy that was in effect during the term of this contract and will cover Consultant for all claims made by the City insured entities arising out of any acts or omissions of Consultant or its officers, employees, or agents during the time this Agreem ent was in effect.
D. Any deductibles or self-insurance retentions must be declared and approved by the City. At the City’s option, either the insurer shall reduce or eliminate such deductibles or self -insured retentions as respects the City insured entitie s or the insurer shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses.
E. All insurance shall be primary and non -contributory as respects the City insured entities. Any insurance or self-insurance maintained by the City insured entities shall be in excess of the Consultant’s insurance and shall not contribute with it.
F. Consultant shall furnish the City with Certificates of Insurance and with original endorsements effecting coverage required by this Agreement. Certificates of Insurance shall meet the following requirements:
(1) Show that the insurance policy has been endorsed to state that coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits except after 30 days’ prior written notice (10 days’ written notice for non-payment) to the City of Lancaster.
(2) List in the “Descriptions of Operations/Locations/Vehicles” section:
“RFQ #721-19 Housing Element Update
The City of Lancaster, its elec ted officials, officers, employees and volunteers are included as additional covered parties, but only insofar as the operations under this contract are concerned.”
(3) List in the “Certificate Holder” section:
The City of Lancaster, 44933 Fern Avenue, Lancaster, California 93534.
14. Commencement and Completion of Work . The Services to be provided by Consultant pursuant to t his Agreement shall commence within 1 day after execution of this Agreement, and shall be completed no later than October 31, 2021; provided however, that the Parties may agree to extend the time for completion upon mutual written agreement.
15. Ownership of Documents . All plans, specifications, reports, studies, maps and other documents prepared or obtained by Consultant in the course of performing the work and are required by this Agreement to be delivered to the City shall be the property of the City. Basic sketches, charts, computations and similar data prepared or obtained by Consultant under this Agreement shall, upon request, be made available to City without restriction or limitation on their use.
16. Data Provided to Consultant. City shall provide to Consultant, without charge, all data, including reports, records, maps and other information, now in the City’s possession which may facilitate the timely performance of the work described in Exhibit A.
5 DocuSign Envelope ID: 69A143D6-164A-480E-8D11-D26B7DB537F5
17. Consultant’s Warranties and Representations.
Consultant warrants and represents to City as follows:
A. Consultant has not employed or retained any person or entity, other than a bona fide employee working exclusively for Consultant, to solicit or obtain this Agreement.
B. Consultant has not paid or agreed to pay any person or entity, other than a bona fide employee working exclusively for Consultant, any fee, commission, percentage, gift, or any other consideration contingent upon or resulting from the execution of this Agreement. Upon any breach or violation of this warranty, City shall have the right, in its sole discretion, to terminate thi s Agreement without further liability, or, in the alternative, to deduct from any sums payable hereunder the full amount or value of any such fee, commission, percentage or gift.
C. Consultant has no knowledge that any officer or employee of the City has any interest, whether contractual, noncontractual, financial, proprietary, or otherwise, in this transaction or in the business of the Consultant, and that if any such interest comes to the knowledge of Consultant at any time, a complete written disclosure of such interest will be made to City, even if such interest would not be deemed a prohibited “conflict of interest” under applicable laws.
D. Upon the execution of this Agreement, Consultant has no interest, direct or indirect, in any transaction or b usiness entity which would conflict with or in any manner hinder the performance of services and work required by this Agreement, nor shall any such interest be acquired during the term of this Agreement.
18. Resolution of Disputes.
A. Disputes regardi ng the interpretation or application of any provisions of this Agreement shall, to the extent reasonably feasible, be resolved through good faith negotiations between the parties.
B. If the parties cannot resolve the dispute through good faith negotiatio ns, either party may give Notice of Dispute to the other party. The Notice of Dispute shall state the nature of the dispute and the corrective action necessary to remedy the dispute.
After Notice of Dispute, the parties shall first attempt to resolve any disputes by mediation. The parties shall agree on a single mediator . Mediation shall be conducted in Lancaster, California. Each party shall pay its own attorneys ’ fees and the costs of mediation shall be split equally between the parties.
If the dispu te has not been resolved by mediation within 45 days after Notice of Dispute, or the parties are unable to agree to a mediator, within 15 days after Notice of Dispute, then, the dispute may, upon agreement of the parties be resolved by binding arbitration.
C. If any action at law or in equity is brought to enforce or interpret any provisions of this Agreement, the prevailing party in such action shall be entitled to reasonable attorney ’s fees, cost and necessary disbursements, in addition to such other relief as may be sought and awarded. 6 DocuSign Envelope ID: 69A143D6-164A-480E-8D11-D26B7DB537F5
19. Exhibits.
The following exhibits to which reference is made in this Agreement are deemed incorporated herein in their entirety:
Exhibit “A” Scope of Services and Rates Schedule
20. Governing Law.
This Agreement shall be governed by the laws of the State of California.
21. Effective Date.
This Agreement shall become effective as of the date set forth below on which the last of the parties, whether City or Consultant, executes said Agreement.
[Signatures begin on next page.]
7 DocuSign Envelope ID: 69A143D6-164A-480E-8D11-D26B7DB537F5 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and attested by their respective officers thereunto duly authorized.
CITY OF LANCASTER
LANCASTER, CALIFORNIA
By:
Jason Caudle, City Manager
Dated:
Moore Iacofano Goltsman, Inc.
By:
Laura Stetson, Principal
Dated:
ATTEST:
Andrea Alexander
City Clerk
APPROVED AS TO FORM:
Allison E. Burns, Esq.
City Attorney
CONTRACT SUBMISSION APPROVAL:
Jeff Hogan
Senior Director – Development Services
8 Rev 1/2019
DocuSign Envelope ID: 69A143D6-164A-480E-8D11-D26B7DB537F5 May 28, 2020 | 10:56:53 AM PDT
June 9, 2020 | 8:38:20 AM PDT
EXHIBIT A
SCOPE OF SERVICES
AND RATES SCHEDULE
9 DocuSign Envelope ID: 69A143D6-164A-480E-8D11-D26B7DB537F5 Optional Task 8: SB 244 – Disadvantaged Unincorporated Communities SB 244 (2011) mandates jurisdictions update their General Plans to address disadvantaged unincorporated communities. This law requires an infrastructure analysis of any community within the sphere of influence with an annual median household income that is less than 80 percent of the statewide annual median household income (the stated definition of a “disadvantaged com munity”). Specifically, the analysis must locate and map the disadvantaged unincorporated communities and include the present and probable need for public facilities and services related to water, wastewater, stormwater drainage, and structural fire protection needs or deficiencies, and if appropriate, sidewalks and street lighting. If requested by the City, MIG would complete an analysis to identify any disadvantaged communities within the City’s sphere, as well as assess needed infrastructure improvements , as part of this optional work scope task.
The administra
tive draft SB 244 amendments to the General Plan, consisting of the above sections, will be submitted electronically to the City for staff review. The City will be responsible for collecting all staff comments into a single document using Microsoft Word’s track changes function, from which MIG will revise the administrative draft General Plan Amendment and complete the draft for public review. This scope and budget assume one round of comments and revisions with staff.
Task 8a Delive
rables
One (1) electronic copy of the Administrative Draft General Plan Amendment for City review and comment
One (1) electronic copy and 15 printed copies of Public Review Draft General Plan Amendment Task 9: SB 1000 – Environmental Justice
As of January 1, 2018, cities and counties are required to either adopt an Environmental Justice Element in their General Plan or integrate environmental justice policies and goals into the elements of the General Plan “upon the adoption or next revision of two or more elements concurrently” (Government Code Section 65302[h][2]). With the update to the Safety Element and Housing Element, an Environmental Justice Element or environmental justice policies integrated into the General Plan would be required. We recommend preparation of a stand-alone element.
Based on our current work on Environmental Justice Elements, we know that the State of California Department of Justice has taken on an active interest in reviewing jurisdictions that are required to prepare an Environmental Justice Element and scrutinize the process involving their preparation.
TASK 9.1: EXISTING CONDITIONS MEMO
As part of preparing the Environmental Justice Element, MIG will conduct a comprehensive analysis regarding environmental pollution exposure. Using CalEnviroScreen 3.0 and other available resources, we will map disadvantaged communities and will research the social, economic, and pollution data sets. The background information will be consolidated into a memorandum with a text summary and map information. The memorandum will be submitted electronically to the City for staff review. The City will be responsible for collecting all staff comments into a single document using Microsoft Word’s track changes function. This scope and budget assume one round of comments and revisions with staff. MIG will incorporate these comments into the Environmental Justice Element (see Task 9.2 below). 10 DocuSign Envelope ID: 69A143D6-164A-480E-8D11-D26B7DB537F5 TASK 9.2: ENVIRONMENTAL JUSTICE ELEMENT
MIG will prepare an Environmental Justice Element. We anticipate that policy will focus on strategies to reduce pollution exposure and environmental burdens affecting low-income and minority populations, together with improving air quality and minimizing impacts on sensitive population groups. MIG will prepare an administrative draft Environmental Justice Element, submitted electronically to the City for staff review. The City will be responsible for collecting all staff comments into a single document using Microsoft Word’s track changes function, from which MIG will revise the administrative draft and complete the draft Environmental Justice Element for public review.
This scope and budget assume that this optional item will be activated by the City of Lancaster at the onset of the program and that related community engagement activities will be folded into other scoped items (i.e., the Housing Element workshops will also address environmental justice concerns.) TASK 9.3: SB 1000 WORKSHOP
As an additional optional item, focused outreach such as a workshop tailored to needs within disadvantaged communities can occur within the disadvantaged community-designated area. MIG will create a public workshop flyer. City staff will be responsible for identifying and securing a meeting location and for the printing and distribution of public notices and flyers, and any related advertising regarding the workshops.
MIG will
organize and lead the workshop, which will be structured to gather input from key local stakeholders, particularly residents and local advocacy groups. The meeting will be organized to include a presentation by the MIG Team that incorporates maps and information presented in the Existing Conditions Memo (Task 9.1), followed by an MIG-facilitated discussion regarding environmental justice issues and creative approaches to address needs. Following the workshop, MIG will prepare a brief workshop summary.
Task 9 Deliv
erables
One (1) electronic copy of the Existing Conditions Memo One (1) electronic copy of the Administrative and Draft General Plan Amendment for City review and comment
One (1) electronic copy and 15 printed copies of Public Review Draft General Plan Amendment Workshop flyer – Draft and Final (electronic)
One (1) public workshop and workshop summary (electronic) Task 10: SB 1241, AB 2911, SB 99 (Safety Element – Fire) SB 1241 requires that the Safety Element, upon the next revision of the Housing Element on or after January 1, 2014, to be reviewed and updated as necessary to address the risk of fire in S tate responsibility areas and very high fire hazard severity zones. As reported by CalFire, Office of the State Fire Marshall, Lancaster does not contain any local or State responsibility areas identified within very high fire severity zones; thus, the Safety Element does not require an update just to address this issue. SB 99 requires an analysis of residential developments without two emergency evacuation routes. We have included an allowance to complete this analysis. Deliverables associated with this task item will be folded into Task 11 below.
Task 11: SB 379 Safety Element and Local Hazard Mitigation Plan SB 379 requires
that, upon the next revision of a Local Hazard Mitigation Plan (LHMP) on or after January 1, 2017, or on or before January 1, 2022, if a jurisdiction has not adopted a LHMP, the Safety Element 11 DocuSign Envelope ID: 69A143D6-164A-480E-8D11-D26B7DB537F5 (and other elements as needed) must be updated to address climate resiliency. Lancaster has an adopted LHMP dated 2013.
MIG has included on our team Atlas Planning Solutions as a subconsultant to support LHMP preparation.
With over 18 years of planning experience, Aaron Pfannenstiel, AICP, will be the primary point of contact and manage the planning effort. He will be supported by Suzanne Murray, a 15-year army reserve veteran who will oversee document preparation, analysis, and quality control to ensure the plan is easy to read and understand. Their qualifications are presented following this task description.
The following scope of work is based on Atlas Planning Solution’s understanding of the desired tasks and level of effort necessary to complete a DMA 2000–compliant LHMP update for the City of Lancaster. This scope can be refined to meet your needs and provide the City with a meaningful document that will inform future decisions.
TASK 11-1. LH
MP PLANNING/DEVELOPMENT PROCESS
The Atlas Planning Solutions’ team will assist MIG and the City with the planning and development process. This task will focus on the following elements that will help ensure the planning process is initiated effectively.
11-1.1 LHMP a
nd Safety Element Kick-Off Meeting and Research
This meeting will consist of initial research and discuss additional data and information available from the City. MIG and Atlas will attend the meeting with City staff.
The LHMP pl
anning process involves two very important components. To ensure compliance with federal requirements, the process must include: 1) an internal meeting with a planning team created by the City and an outreach and 2) engagement effort with the community to allow for input and feedback into the process. The following tasks are proposed to comply with these requirements . 11-1.2 Hazard
Mitigation Planning Team Meetings
The Planning Team will consist of City staff, stakeholder agencies (local, state, federal), and community partners invited by the City (nonprofits, residents, businesses, etc.). Facilitation of these meetings will focus on the planning process outlined in DMA 2000 and FEMA’s Local Mitigation Plan Review Guide and Local Mitigation Planning Handbook. Atlas Planning Solutions staff will conduct four two -hour meetings with the Planning Team over the course of four months as part of plan development. These meetings will address the following topics:
Planning Team Meeting #1: Review the work program, schedule, outreach/engagement strategy, critical facilities list, and hazards of concern addressed in the plan .
Planning Team Meeting #2: Review hazard profiles, hazards mapping, and overview of risk assessment.
Planning Team Meeting #3: Review risk assessment analysis and begin mitigation actions development and brainstorming.
Planning Team Meeting #4: Review, revise, and prioritize mitigation actions and discuss monitoring and implementation workbook.
Aaron Pfannenstiel will attend, facilitate, and document each meeting. Meetings will be conducted in person with the Planning Team at a location designated by MIG and the City project manager. Six hours of staff time has been assumed for each meeting for preparation, attendance, and travel. If additional meetings or time is necessary, such can be provided under a separate scope and fee, upon request. 11-1.3 Publ
ic Meetings
To provide a process that meets FEMA guidance and requirements, Atlas Planning Solutions proposes 12 DocuSign Envelope ID: 69A143D6-164A-480E-8D11-D26B7DB537F5 the following public meetings:
Public Review Draft LHMP Meeting. This meeting will take place during the required public review period and will provide an opportunity for the public, stakeholders and planning team members to comment on the draft LHMP. The intent of this meeting is to explain the LHMP document (purpose, content, etc.) and the next steps in the planning process and provide a forum for input and feedback on the plan and outstanding community concerns. We often recommend that this meeting be conducted during a regularly scheduled City meeting, like a Planning Commission or City Council meeting.
LHMP Final Adoption Hearing. This meeting will take place upon receipt of final approval from FEMA. At this meeting, the Lancaster City Council will take final action to adopt the LHMP. Once adopted, the City will be able to pursue additional grant funds for future mitigation projects. 11-1.4 Out
reach and Engagement Content
A key component of the planning process is ensuring effective involvement of the community during plan preparation. For this type of plan, our notion of community includes residents, business, City staff, and surrounding jurisdictions. While there are many strategies that can be used to conduct outreach, there are several ways that we believe would work best for the City.
Community Engagement Strategy Development
Upon receipt of the notice to proceed, the Atlas Planning Solutions team will prepare a community engagement strategy for review and approval by City staff and eventually the Planning Team, if desired.
This strategy will outline the preferred options for community engagement based on a detailed discussion with City staff (as part of the kick-off meeting) about prior engagement activities, recent successes and challenges with outreach, and other concerns identified during this process. We will discuss whether these outreach efforts might be combined with those occurring for the General Plan Amendments.
Online Media/Survey Development
Online outreach efforts have proven very effective for these processes. They typically include web pages/websites for project information and updates, social media sites, and online surveys through services like Survey Monkey. The following tasks are anticipated to be incorporated into the strategy:
Online Media
. Atlas Planning Solutions staff will develop web content that explains what an LHMP is, why the City is preparing one, what information will be in the plan, and ways that stakeholders can contact the City and stay engaged in the planning process. This content will be provided for upload to the City’s website, with the assumption that City staff will manage the site for this project.
Social Media. Atlas Planning Solutions staff will prepare content for use on social media sites such as Facebook, Twitter, and Nextdoor. The Atlas Planning Solutions team will research the types of sites actively used by the City and discuss staff preferences. In addition, many local groups and organizations with an online presence in the community can help with engagement activities, if desired by the City. Prior to engaging these groups, the Atlas Planning Solutions team will work with staff to understand which organizations and groups are most appropriate to assist with this effort.
Online Survey. An online survey is an easy and sometimes powerful way of gathering qualitative and quantitative data to inform plan preparation. The Atlas Planning Solutions team is prepared to develop an online survey that can be distributed to the community via email and social media.
Distribution of the survey should involve residents, business, City staff, and surrounding jurisdictions. Prior to distribution, this survey will be distributed to the Planning Team during Planning Team Meeting #1 for review and feedback.
The steps outlined above will become part of the documentation of the planning process required for an 13 DocuSign Envelope ID: 69A143D6-164A-480E-8D11-D26B7DB537F5 LHMP. This documentation is considered an ongoing component of all subsequent tasks. Upon completion of the Administrative Draft LHMP, the Planning Team will have an opportunity to review and provide feedback on the ways that the planning process was documented and described.
TASK 11-2. HAZARD ASSESSMENT
Development of the LHMP risk assessment will involve hazard identification and profiles, hazard mapping, vulnerability assessment, and capability assessment.
11-2.1 Hazard Identification and Profiles
Atlas Planning Solutions will develop profiles for natural hazards identified during Planning Team Meeting #1. The hazards anticipated to be profiled may include:
Seismic Hazards
Flooding
Windstorm
Wildfire
Climate change
Human-Caused Hazards
11-2.2 Prioritize Hazards
Each profile will include a description of the hazard; previous occurrences, locations, and extents (magnitude or strength); and probability of future occurrences. Location-based hazard data will be mapped using GIS by MIG, with guidance and oversight by Aaron Pfannenstiel (see Task 11-2.3).
An important consideration in hazard profiles is the impact associated with climate change. Although they do not require it, FEMA and Cal OES are requesting that climate change be integrated into local hazard mitigation planning efforts where possible. Our recommendation is to address potential impacts and vulnerabilities within each hazard profile because certain hazards can be exacerbated by climate change and others cannot. The discussion is typically qualitative in nature; however, some quantitative analysis can be incorporated based on readily available information and data from Cal- Adapt. Inclusion of this discussion will also assist the City with SB 379 compliance within the General Plan Safety Element.
11-2.3 Hazard Mapping
The following subtasks will be conducted to complete the Hazard Mapping task:
11-2.3a Critical Facilities Inventory
Atlas Planning Solutions will work with the Planning Team to update the City’s inventory of “critical facilities” (key outcome of Planning Team Meeting #1), which will be a key component of the risk assessment. This inventory will assist the City in future capital improvements planning and programming, which will be important for monitoring and implementation. Anticipated facilities are key buildings, critical facilities and infrastructure (pump stations, reservoirs, bridges), and other locations of concern.
Upon completion and approval by the Planning Team, this inventory will be mapped in GIS by MIG staff (Task 11-2.3b).
11-2.3b GIS Mapping and Analysis
The MIG team will map the hazards of concern identified in the hazard profiles task, above. As part of this mapping, current and future development anticipated by the City will be identified, which can affect the City’s potential mitigation strategy. Understanding new development and key hazard conditions will inform an assessment of the vulnerability of certain locations to given hazard events. An outcome of this analysis will be the ability to develop future requirements/regulations to further reduce risk and vulnerability, where applicable, which can be a powerful planning tool for the City. As a component of this task, the mapping and analysis will align with sections 5.2.2, 5.3.2, and 5.4.2 of the State of California Hazard Mitigation Plan.
14 DocuSign Envelope ID: 69A143D6-164A-480E-8D11-D26B7DB537F5
TASK 11-3. VULNERABILITY ASSESSMENT
This task involves the development of a Vulnerability Assessment for the City of Lancaster, which includes the following components:
11-3.1 Hazard Vulnerability Assessment
Using the hazard profiles, critical facilities inventory, GIS mapping and analysis, and capabilities assessment (see task 11-3.2), a hazard vulnerability analysis that quantifies and portrays the locations in the planning area that are most at risk for each hazard will be prepared. The results of this analysis are typically provided in a table identifying the hazards and critical facilities at risk, where applicable.
As part of this assessment vulnerable structures and potential loss estimates for the cri tical facilities will be provided using the approved inventory. The LHMP will prioritize essential facilities owned/controlled by the City. Our typical approach for loss estimation uses existing GIS data sets and insured valuation of critical facilities from the City. If insured values are not available, we will work with facilities and risk management staff to come up with estimates for potential losses that can be used in this portion of the plan.
11-3.2 Capabilities Assessment
A capabilities assessment is a comprehensive review of the mitigation capabilities and tools currently available to the City to implement the mitigation strategy. Using a community capabilities assessment worksheet created by Atlas Planning Solutions, we will work with the City to review current mitigation capabilities—e.g., programs, staffing, funding, and other resources—as well as current infrastructure that is potentially vulnerable during a disaster. The capabilities assessment will also describe the City’s past and current mitigation activities. When the capabilities assessment is complete, Atlas Planning Solutions will use the information to refine potential mitigation strategies that can be implemented to address City needs.
TASK 11-4. HAZARD MITIGATION STRATEGY
This task involves the development of a Hazard Mitigation Strategy, which includes the following components:
11-4.1 Develop Hazard Mitigation Goals
A key outcome of the hazard mitigation planning process is the establishment of hazard mitigation goals.
During Planning Team Meetings 1 through 3, hazard mitigation planning goals will be discussed with the Planning Team and, upon initiation of this task, will confirm these goals prior to development of mitigation actions. Based on the data collection and analysis during the planning process, Atlas Planning Solutions will ask the Planning Team to answer the following questions:
Do the goals:
− reflect current state goals?
− account for current and future hazard concerns in the City? − reflect the City’s risk assessment?
− support the City’s mitigation priorities and capabilities?
Based on the answers to these questions, the project mitigation goals will be finalized, after which the mitigation action plan can be completed.
11-4.2 Develop, Evaluate, and Prioritize Hazard Mitigation Actions Atlas Planning Solutions will work with the Planning Team to develop mitigation actions based on the vulnerability and capability assessments. The identified mitigation actions will form the comprehensive mitigation strategy. Working with the Planning Team, Atlas Planning Solutions will develop a process and criteria to prioritize identified mitigation actions. The identification and prioritization process will ensure 15 DocuSign Envelope ID: 69A143D6-164A-480E-8D11-D26B7DB537F5 that mitigation actions/strategies are realistic and achievable and reflect long-term priorities.
Fundamental to the process are key factors such as life, property, health, and safety protection and the availability of funding for any given project. Once identified, the “STAPLEE” approach promoted by FEMA will be used as a framework for developing additional prioritization criteria. The STAPLEE approach analyzes the social, technical, administrative, political, legal, economic, and environmental feasibility of each proposed mitigation action. To the extent that information and the appropriate data are available, cost estimates will be prepared on a defined, comparative-cost scale to compare and prioritize mitigation actions. Upon completion of the mitigation actions, Atlas Planning Solutions will conduct Planning Team Meeting #4, which includes a facilitated discussion of the draft mitigation actions to further refine and prioritize the list.
TASK 11-5. HAZARD MITIGATION PLAN MAINTENANCE PROCESS
A key component of the hazard mitigation planning process is the identification of the plan maintenance process that will be used over the five-year lifespan of the plan.
11-5.1 Monitoring and Implementation Chapter Development This task includes the preparation of the Monitoring and Implementation chapter of the LHMP that identifies the plan maintenance and implementation steps over the five-year plan period. This chapter will describe the methods and schedule for monitoring, evaluating, and updating the plan; how the mitigation plan elements will be incorporated into other planning mechanisms; and how the public will remain involved throughout the planning process. Completion of this task will also complete the Administrative Draft LHMP. Once complete, the Administrative Draft LHMP will be distributed to the Planning Team for review and comment.
TASK 11-6. PLAN COMPILATION
11-6.1 Public Review Draft Hazard Mitigation Plan
Upon receipt of comments from the Planning Team on the Administrative Draft LHMP, Atlas Planning Solutions will prepare the public review draft of the document for final review and approval by the City (and Planning Team, if necessary). Upon approval from the City, the Draft LHMP will be distributed for public review. The City website, social media, and emails will identify where the document can be accessed, either electronically or in hard copy. We typically recommend a review period of 30 days, but this can be modified based on City/Planning Team desires. During this period, a public workshop can be conducted (see Task 11-1.3).
Deliverable(s):
Two (2) printed copies of Public Review Draft LHMP and electronic PDF version 11-6.2 Cal OES/FEMA Draft Hazard Mitigation Plan
Upon completion of the public review period, Atlas Planning Solutions will review comments received and prepare revisions to the LHMP document in preparation for transmittal to Cal OES/FEMA.
Completion of this task also includes preparation of the FEMA Plan Review Tool, which will accompany the document when transmitted. For budgeting purposes, this task assumes 16 hours of staff time for completion of revisions requested by Cal OES/FEMA. This budget is based on experience with similar plans at this stage. If significant comments are received that require substantial work, additional staff time may be required.
Deliverable(s):
One (1) printed copy of Cal OES/FEMA Draft LHMP and electronic PDF version 11-6.3 Final Adoption Hazard Mitigation Plan
Upon receipt of an Approved Pending Adoption letter from FEMA, Atlas Planning Solutions will prepare a final version of the LHMP for City Council adoption. As part of this task, Atlas Planning Solutions will also assist staff with the content for the Staff Report and Resolution of Adoption. For budgeting 16 DocuSign Envelope ID: 69A143D6-164A-480E-8D11-D26B7DB537F5 purposes, this task assumes 12 hours of staff time, a portion of which has been allocated to final hearing attendance.
Deliverable
(s):
Two (2) printed copies of Final Adoption LHMP and electronic PDF version TASK 11-7. GE
NERAL PLAN SAFETY ELEMENT
The Lancaster General Plan Safety Element requires update to comply with California Senate Bills 1035 (requires update when the Housing Element is updated) and 379 (requires addressing climate change/adaptation). Under this task, Atlas Planning Solutions and MIG will complete this focused update to ensure the Safety Element addresses climate change/adaptation effectively for the hazards of concern to the City. It is assumed that major focus of this effort will include drought and extreme heat for the City.
MIG will
prepare an administrative draft Safety Element Amendment, submitted electronically for staff review. The City will be responsible for collecting all staff comments into a single document using Microsoft Word’s track changes function, from which MIG will revise the administrative draft and complete the draft Safety Element Amendment for public review.
Deliverable
(s):
One (1) electronic copy of the Administrative and Draft General Plan Amendment for City review and comment
One (1) electronic copy and 15 printed copies of Public Review Draft General Plan Amendment 17 DocuSign Envelope ID: 69A143D6-164A-480E-8D11-D26B7DB537F5 March 10, 2020
Housing Element Update + Optional Tasks
HRS @ $225 HRS @ $145 HRS @ $110 HRS @ $130 HRS @ $95 AtlasMIG Total Project Total
Principal Project Manager Project Associate Environmental Analyst Administrative Staff Optional/As-Needed Tasks
Task 8: SB 244
8 SB244 Compliance (DUCs) 4 900$ 8 1,160$ 64 7,040$ 4 520$ 0 -$ 80 9,620$ -$ 9,620$ 8-D SB 244 GPA Directs 200$ -$ 200$
Subtotal 4 900$ 8 1,160$ 64 7,040$ 4 520$ 0 -$ 80 9,820$ -$ 9,820$ Task 9: SB 1000/Environmental Justice Element
9.1 SB 1000 Exisitng Conditions Memo 2 450$ 8 1,160$ 40 4,400$ 4 520$ 0 -$ 54 6,530$ -$ 6,530$
9.2 SB 1000 Environmental Justice Element 2 450$ 8 1,160$ 60 6,600$ 4 520$ 0 -$ 74 8,730$ -$ 8,730$
9.3 OPTIONAL Environmental Justice - Workshop 2 450$ 14 2,030$ 22 2,420$ -$ 0 -$ 38 4,900$ -$ 4,900$ 9-D Environmental Justice Directs 400$ -$ 400$ Subtotal 6 1,350$ 30 4,350$ 122 13,420$ 8 1,040$ 0 -$ 166 20,560$ -$ 20,560$ Ta
sk 10: Safety Element - Fire
10 Fire and SB 99 Analysis -$ 2 290$ 16 1,760$ -$ -$ 18 2,050$ -$ 2,050$ Subtotal 0 -$ 2 290$ 16 1,760$ 0 -$ 0 -$ 18 2,050$ -$ 2,050$ Task 11: LHMP/S
afety Element
11.1 LHMP Planning/Development Process -$ 6 870$ 4 440$ -$ 8 760$ 18 2,070$ 11,520$ 13,590$
11.2 LHMP Hazard Assessment -$ 2 290$ 36 3,960$ -$ -$ 38 4,250$ 12,540$ 16,790$
11.3 LHMP Vulnerability Assessment -$ -$ -$ -$ -$ 0 -$ 12,960$ 12,960$
11.4 LHMP Hazard Mitigation Strategy -$ -$ -$ -$ -$ 0 -$ 5,820$ 5,820$
11.5 LHMP Hazard Mitigation Plan Maintenance Process -$ -$ -$ -$ -$ 0 -$ 3,000$ 3,000$
11.6 LHMP Plan C
ompilation -$ -$ -$ -$ -$ 0 -$ 7,980$ 7,980$
11.7 General Plan Safety Element Focused Update 4 900$ 16 2,320$ 24 2,640$ -$ -$ 44 5,860$ 10,320$ 16,180$ 11-D LHMP/Safety Element Directs -$ -$ -$ -$ -$ 0 400$ 1,283$ 1,683$ Subtotal 4 900$ 24 3,480$ 64 7,040$ 0 -$ 8 760$ 100 12,580$ 65,423$ 78,003$
OPTIONAL ITE
MS SUBTOTAL 3,15014 $ 64 9,280$ 12 1,560$ 7608 $ 364 $ 45,010 65,423$ $ 110,433266 $ 29,260 MIG, Inc. 2
18 DocuSign Envelope ID: 69A143D6-164A-480E-8D11-D26B7DB537F5
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.
INSURER(S) AFFORDING COVERAGE
INSURER F :
INSURER E :
INSURER D :
INSURER C :
INSURER B :
INSURER A :
NAIC #
NAME:
CONTACT
(A/C, No):
FAX
E-MAIL
ADDRESS:
PRODUCER
(A/C, No, Ext):
PHONE
INSURED
REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
OTHER:
(Per accident)
(Ea accident)
$
$
N / A
SUBR
WVD
ADDL
INSD
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $ $
$
$PROPERTY DAMAGE
BODILY INJURY (Per accident)
BODILY INJURY (Per person)
COMBINED SINGLE LIMIT
AUTOS ONLY
AUTOSAUTOS ONLY
NON-OWNED
SCHEDULEDOWNED
ANY AUTO
AUTOMOBILE LIABILITY
Y / N
WORKERS COMPENSATION
AND EMPLOYERS' LIABILITY
OFFICER/MEMBER EXCLUDED?
(Mandatory in NH)
DESCRIPTION OF OPERATIONS below
If yes, describe under
ANY PROPRIETOR/PARTNER/EXECUTIVE
$
$
$
E.L. DISEASE - POLICY LIMIT
E.L. DISEASE - EA EMPLOYEE
E.L. EACH ACCIDENT
ER
OTH-
STATUTE
PER
LIMITS(MM/DD/YYYY)
POLICY EXP
(MM/DD/YYYY)
POLICY EFF
POLICY NUMBERTYPE OF INSURANCELTR
INSR
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)
EXCESS LIAB
UMBRELLA LIAB $EACH OCCURRENCE
$AGGREGATE
$
OCCUR
CLAIMS-MADE
DED RETENTION $
$PRODUCTS - COMP/OP AGG
$GENERAL AGGREGATE
$PERSONAL & ADV INJURY
$MED EXP (Any one person)
$EACH OCCURRENCE
DAMAGE TO RENTED
$PREMISES (Ea occurrence)
COMMERCIAL GENERAL LIABILITY
CLAIMS-MADE OCCUR
GEN'L AGGREGATE LIMIT APPLIES PER:
POLICY PRO-
JECT LOC
CERTIFICATE OF LIABILITY INSURANCE
DATE (MM/DD/YYYY)
CANCELLATION
AUTHORIZED REPRESENTATIVE
ACORD 25 (2016/03)
© 1988-2015 ACORD CORPORATION. All rights reserved.
CERTIFICATE HOLDER
The ACORD name and logo are registered marks of ACORD
HIRED
AUTOS ONLY
5/19/2020
Dealey, Renton & Associates
P. O. Box 12675
Oakland CA 94604-2675
510-465-3090
510-452-2193
[email protected]
Berkley Insurance Company
32603
MOOREIACO
Travelers Property Casualty Company of America
25674
MOORE IACOFANO GOLTSMAN, INC
800 Hearst Ave.
Berkeley CA 94710
The Charter Oak Fire Insurance Company
25615
865497520
B
X
1,000,000
X
1,000,000
5,000
1,000,000
2,000,000
X
Y
Y
6801H899998
8/31/2019
8/31/2020
2,000,000
C
1000000
X
X
X
Y
Y
BA6K931299
8/31/2019
8/31/2020
B
X
X
10,000,000
Y
CUP0H758762
8/31/2019
Y
8/31/2020
10,000,000
B
X
Y
UB2L553909
8/31/2019
8/31/2020
1,000,000
1,000,000
1,000,000
A
Professional
Liability
AEC903162701
8/31/2019
8/31/2020
$3,000,000
$5,000,000
per Claim
Annl Aggr.
Re: Project #13860 -RFQ #721-19 Lancaster Housing Element Update The City of Lancaster, its elected officials, officers, employees and volunteers are included as Additional Insureds as respects General and Auto Liability, but only insofar as the operations under this contract are concerned, as required per written contract or agreement.
General Liability is Primary/Non-Contributory per policy form wording.
Insurance coverage includes Waiver of Subrogation per the attached endorsement(s). 30 Day Notice of Cancellation
30 Days Notice of Cancellation
City of Lancaster
Attn: Jason Caudle, City Manager
44933 North Fern Avenue
Lancaster CA 93534
DocuSign Envelope ID: 69A143D6-164A-480E-8D11-D26B7DB537F5
COMMERCIAL AUTO
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
BLANKET WAIVER OF SUBROGATION
This endorsement modifies insurance provided under the following:
AUTO DEALERS COVERAGE FORM
BUSINESS AUTO COVERAGE FORM
MOTOR CARRIER COVERAGE FORM
The following replaces Paragraph A.5., Transfer of required of you by a written contract executed Rights Of Recovery Against Others To Us, of the prior to any "accident" or "loss", provided that the CONDITIONS Section: "accident" or "loss" arises out of the operations
5. Transfer Of Rights Of Recovery Against Oth- contemplated by such contract. The waiver ap- ers To Us plies only to the person or organization desig- nated in such contract.We waive any right of recovery we may have against any person or organization to the extent
CA T3 40 02 15 © 2015 The Travelers Indemnity Compa ny. All rights reserved. Page 1 of 1 Includes copyrighted material of Insurance Services Office, Inc. with its permission.
Policy #
BA6K931299
DocuSign Envelope ID: 69A143D6-164A-480E-8D11-D26B7DB537F5 NAMED INSURED:
POLICY NUMBER: <PNUM>
ADDITIONAL COVERAGES BY WRITTEN CONTRACT OR AGREEMENT
This is a summary of the coverages provided under the following forms (complete forms available):
COMMERCIAL GENERAL LIABILITY COVERAGE
Excerpt from COMMERCIAL GENERAL LIABILITY COVERAGE (FORM #CG T1 00 02 19)
SECTION IV - COMMERCIAL GENERAL LIABILITY CONDITIONS
4. OTHER INSURANCE - d. PRIMARY AND NON-CONTRIBUTORY INSURANCE IF REQUIRED BY WRITTEN CONTRACT:
If you specifically agree in a written contract or agreement that the insurance afforded to an insured under this Coverage Part must apply on a primary basis, or a primary and non-contributory basis, this insurance is primary to other insurance that is available to such insured which covers such insured as a named insured, and we will not share with that other insurance, provided that:
(1) The "bodily injury" or "property damage" for which coverage is sought occurs; and (2) The "personal and advertising injury" for which coverage is sought is caused by an offense that is committed;
subsequent to the signing of that contract or agreement by you.
Excerpt from XTEND ENDORSEMENT FOR ARCHITECTS, ENGINEERS AND SURVEYORS (FORM #CG D3 79 02 19)
PROVISION M. - BLANKET WAIVER OF SUBROGATION - WHEN REQUIRED BY WRITTEN CONTRACT OR AGREEMENT:
If the insured has agreed in a written contract or agreement to waive that insured's right of recovery against any person or organization, we waive our right of recovery against such person or organization, but
only for payments we make because of:
a.
"Bodily injury" or "property damage" that occurs; or
b. "Personal and advertising injury" caused by an offense that is committed; subsequent to the signing of that contract or agreement.
MOORE IACOFANO GOLTSMAN,
6801H899998
DocuSign Envelope ID: 69A143D6-164A-480E-8D11-D26B7DB537F5 Ð Ñ Ô × Ý ÇÒ Ë Ó Þ Û Î æ
COMMERCIAL GENERAL LIABILITY
ISSUED DATE:
Ì Ø × ÍÛ Ò Ü Ñ Î Í Û Ó Û Ò Ì Ý Ø ß Ò Ù Û ÍÌ Ø ÛÐ Ñ Ô × Ý Ç ò Ð Ô Û ß Í ÛÎ Û ß Ü× Ì Ý ß Î Û Ú Ë Ô Ô Ç ò
Ì ¸ · » ² ¼ ± ® » ³ » ² ¬ ³ ± ¼ · º · » · ² « ® ¿ ² ½ » ° ® ± ª · ¼ » ¼ « ² ¼ » ® ¬ ¸ » º ± ´ ´ ± © · ² ¹ æ Ý Ñ Ó Ó Û Î Ý × ß Ô Ù Û Ò Û Î ß Ô Ô × ß Þ × Ô × Ì ÇÝ Ñ Ê Û Î ß Ù ÛÐ ß Î Ì
× ² º ± ® ³ ¿ ¬ · ± ² ® » ¯ « · ® » ¼ ¬ ± ½ ± ³ ° ´ » ¬ » ¬ ¸ · Í ½ ¸ » ¼ « ´ » ô · º ² ± ¬ ¸ ± © ² ¿ ¾ ± ª » ô © · ´ ´ ¾ » ¸ ± © ² · ² ¬ ¸ » Ü » ½ ´ ¿ ® ¿ ¬ · ± ² ò
· ¿ ³ » ² ¼ » ¼¬ ±· ² ó ´ ± ½ ¿ ¬ · ± ²¼ » · ¹ ² ¿ ¬ » ¼¿ ² ¼¼ » ½ ® · ¾ » ¼· ²¬ ¸ » ½ ¸ » ¼ « ´ »± º ½ ´ « ¼ »¿ ¿ ²¿ ¼ ¼ · ¬ · ± ² ¿ ´ · ² « ® » ¼¬ ¸ »° » ® ± ² ø ÷ ± ® ± ® ó ¬ ¸ · » ² ¼ ± ® » ³ » ² ¬° » ® º ± ® ³ » ¼ º ± ®¬ ¸ ¿ ¬¿ ¼ ¼ · ¬ · ± ² ¿ ´ · ² ó ¹ ¿ ² · ¦ ¿ ¬ · ± ² ø ÷ ¸ ± © ² · ²¬ ¸ »Í ½ ¸ » ¼ « ´ » ô ¾ « ¬ ± ² ´ §© · ¬ ¸ « ® » ¼ ¿ ² ¼ · ² ½ ´ « ¼ » ¼ · ² ¬ ¸ » þ ° ® ± ¼ « ½ ¬ ó ½ ± ³ ° ´ » ¬ » ¼ ± ° » ® ¿ ó ® » ° » ½ ¬ ¬ ± ´ · ¿ ¾ · ´ · ¬ § º ± ® þ ¾ ± ¼ · ´ § · ² ¶ « ® § þ ± ® þ ° ® ± ° » ® ¬ § ¼ ¿ ³ ó ¬ · ± ² ¸ ¿ ¦ ¿ ® ¼ þ ò ¿ ¹ » þ ½ ¿ « » ¼ ô · ² © ¸ ± ´ » ± ® · ² ° ¿ ® ¬ ô ¾ § þ § ± « ® © ± ® µ þ ¿ ¬ ¬ ¸ »
× Í ÑÐ ® ± ° » ® ¬ · » ô × ² ½ ò ô î ð ð ì Ð ¿ ¹ » ï ± º ï Any person or organization that you agree in a written contract to include as an additional insured on this Coverage Part for "bodily injury" or "property damage" included in the "products- completed operations hazard", provided that such contract was signed and executed by you before, and is in effect when, the bodily injury or property damage occurs.
Any project to which an applicable contract described in the Name of Additional Insured Person(s) or Organization(s) section of this Schedule applies. 5/19/2020
6801H899998
DocuSign Envelope ID: 69A143D6-164A-480E-8D11-D26B7DB537F5 Ð Ñ Ô × Ý ÇÒ Ë Ó Þ Û Î
COMMERCIAL GENERAL LIABILITY
ISSUED DATE:
Ì Ø × ÍÛ Ò Ü Ñ Î Í Û Ó Û Ò Ì Ý Ø ß Ò Ù Û ÍÌ Ø ÛÐ Ñ Ô × Ý Ç ò Ð Ô Û ß Í ÛÎ Û ß Ü× Ì Ý ß Î Û Ú Ë Ô Ô Ç ò
Ì ¸ · » ² ¼ ± ® » ³ » ² ¬ ³ ± ¼ · º · » · ² « ® ¿ ² ½ » ° ® ± ª · ¼ » ¼ « ² ¼ » ® ¬ ¸ » º ± ´ ´ ± © · ² ¹ æ Ý Ñ Ó Ó Û Î Ý × ß Ô Ù Û Ò Û Î ß Ô Ô × ß Þ × Ô × Ì ÇÝ Ñ Ê Û Î ß Ù ÛÐ ß Î Ì
ø × ² º ± ® ³ ¿ ¬ · ± ² ® » ¯ « · ® » ¼ ¬ ± ½ ± ³ ° ´ » ¬ » ¬ ¸ · Í ½ ¸ » ¼ « ´ » ô · º ² ± ¬ ¸ ± © ² ¿ ¾ ± ª » ô © · ´ ´ ¾ » ¸ ± © ² · ² ¬ ¸ » Ü » ½ ´ ¿ ® ¿ ¬ · ± ² ò ÷ Í » ½ ¬ · ± ² × ×
ɸ ± × ß ² × ² « ® » ¼ · ¿ ³ » ² ¼ » ¼ ¬ ± · ² ó Ì ¸ · · ² « ® ¿ ² ½ » ¼ ± » ² ± ¬ ¿ ° ° ´ § ¬ ± þ ¾ ± ¼ · ´ § · ² ¶ « ® § þ ± ® ½ ´ « ¼ »¿ ¿ ²¿ ¼ ¼ · ¬ · ± ² ¿ ´ · ² « ® » ¼¬ ¸ »° » ® ± ² ø ÷ ± ® þ ° ® ± ° » ® ¬ § ¼ ¿ ³ ¿ ¹ » þ ± ½ ½ « ® ® · ² ¹ ô ± ® ° » ® ± ² ¿ ´ · ² ¶ « ® § Œ ± ® ¹ ¿ ² · ¦ ¿ ¬ · ± ² ø ÷ ¸ ± © ²· ²¬ ¸ »Í ½ ¸ » ¼ « ´ » ô ¾ « ¬ ± ² ´ § ± ® ¿ ¼ ª » ® ¬ · · ² ¹· ² ¶ « ® § Œ ¿ ® · · ² ¹± « ¬ ± º ¿ ² ± º º » ² » © · ¬ ¸ ® » ° » ½ ¬ ¬ ± ´ · ¿ ¾ · ´ · ¬ § º ± ® þ ¾ ± ¼ · ´ § · ² ¶ « ® § þ ô þ ° ® ± ° » ® ¬ § ½ ± ³ ³ · ¬ ¬ » ¼ ô ¿ º ¬ » ® æ ¼ ¿ ³ ¿ ¹ » þ ô þ ° » ® ± ² ¿ ´ · ² ¶ « ® § Œ ± ® ¿ ¼ ª » ® ¬ · · ² ¹· ² ¶ « ® § þ ß ´ ´ © ± ® µ ô · ² ½ ´ « ¼ · ² ¹³ ¿ ¬ » ® · ¿ ´ ô ° ¿ ® ¬ ± ® » ¯ « · ° ó½ ¿ « » ¼ ô · ² © ¸ ± ´ » ± ® · ² ° ¿ ® ¬ ô ¾ § æ ³ » ² ¬ º « ® ² · ¸ » ¼· ² ½ ± ² ² » ½ ¬ · ± ²© · ¬ ¸ « ½ ¸© ± ® µ ô Ç ± « ® ¿ ½ ¬ ± ® ± ³ · · ± ² å ± ® ± ² ¬ ¸ » ° ® ± ¶ » ½ ¬ ø ± ¬ ¸ » ®¬ ¸ ¿ ² » ® ª · ½ » ô ³ ¿ · ² ¬ » ó ² ¿ ² ½ »± ® ® » ° ¿ · ® ÷ ¬ ±¾ »° » ® º ± ® ³ » ¼¾ §± ® ± ² Ì ¸ » ¿ ½ ¬ ± ® ± ³ · · ± ² ± º ¬ ¸ ± » ¿ ½ ¬ · ² ¹ ± ² § ± « ® ¾ » ¸ ¿ ´ º ± º ¬ ¸ » ¿ ¼ ¼ · ¬ · ± ² ¿ ´ · ² « ® » ¼ ø ÷ ¿ ¬ ¬ ¸ » ´ ± ½ ¿ ó¾ » ¸ ¿ ´ º å ¬ · ± ² ± º ¬ ¸ » ½ ± ª » ® » ¼ ± ° » ® ¿ ¬ · ± ² ¸ ¿ ¾ » » ² ½ ± ³ ó · ² ¬ ¸ » ° » ® º ± ® ³ ¿ ² ½ » ± º § ± « ® ± ² ¹ ± · ² ¹ ± ° » ® ¿ ¬ · ± ² º ± ®° ´ » ¬ » ¼ å ± ® ¬ ¸ »¿ ¼ ¼ · ¬ · ± ² ¿ ´ · ² « ® » ¼ ø ÷ ¿ ¬ ¬ ¸ »´ ± ½ ¿ ¬ · ± ² ø ÷ ¼ » · ¹ ó Ì ¸ ¿ ¬ ° ± ® ¬ · ± ²± º þ § ± « ® © ± ® µ þ ± « ¬ ± º © ¸ · ½ ¸¬ ¸ »² ¿ ¬ » ¼ ¿ ¾ ± ª » ò · ² ¶ « ® § ± ® ¼ ¿ ³ ¿ ¹ » ¿ ® · » ¸ ¿ ¾ » » ² ° « ¬ ¬ ± · ¬ · ² ó É· ¬ ¸® » ° » ½ ¬ ¬ ±¬ ¸ »· ² « ® ¿ ² ½ »¿ º º ± ® ¼ » ¼¬ ±¬ ¸ » » ¬ » ² ¼ » ¼ « » ¾ § ¿ ² § ° » ® ± ² ± ®± ® ¹ ¿ ² · ¦ ¿ ¬ · ± ²¿ ¼ ¼ · ¬ · ± ² ¿ ´ · ² « ® » ¼ ô ¬ ¸ » º ± ´ ´ ± © · ² ¹ ¿ ¼ ¼ · ¬ · ± ² ¿ ´ » ¨ ½ ´ « ó± ¬ ¸ » ® ¬ ¸ ¿ ²¿ ² ± ¬ ¸ » ® ½ ± ² ¬ ® ¿ ½ ¬ ± ® ± ® « ¾ ½ ± ² ¬ ® ¿ ½ ó · ± ² ¿ ° ° ´ § æ ¬ ± ® » ² ¹ ¿ ¹ » ¼ · ² ° » ® º ± ® ³ · ² ¹ ± ° » ® ¿ ¬ · ± ² º ± ® ¿ ° ® · ² ½ · ° ¿ ´ ¿ ¿ ° ¿ ® ¬ ± º ¬ ¸ » ¿ ³ » ° ® ± ¶ » ½ ¬ ò Ý ± ° § ® · ¹ ¸ ¬ î ð ð ë Ì ¸ » Í ¬ ò Ð ¿ « ´ Ì ® ¿ ª » ´ » ® Ý ± ³ ° ¿ ² · » ô × ² ½ ò ß ´ ´ ® · ¹ ¸ ¬ ® » » ® ª » ¼ ò Ð ¿ ¹ » ï ± º ï × ² ½ ´ « ¼ » ½ ± ° § ® · ¹ ¸ ¬ » ¼ ³ ¿ ¬ » ® · ¿ ´ ± º × ² « ® ¿ ² ½ » Í » ® ª · ½ » Ñ º º · ½ » ô × ² ½ ò © · ¬ ¸ · ¬ ° » ® ³ · · ± ² ò Any person or organization that you agree in a written contract, on this Coverage Part, provided that such written contract was signed and executed by you before, and is in effect when the "bodily injury" or "property damage" occurs or the "personal injury" or "advertising injury" offense is committed.
Any project to which an applicable written contract with the described in the Name of Additional Insured Person(s) or Organization(s) section of this Schedule applies. 6801H899998
5/19/2020
DocuSign Envelope ID: 69A143D6-164A-480E-8D11-D26B7DB537F5 ÛÒÜÑÎÍÛÓÛÒÌ ÉÝ ðð ðí ïí øðð÷ ó
ÐÑÔ×ÝÇ ÒËÓÞÛÎæ
ÛÓÐÔÑÇÛÎÍ Ô×ßÞ×Ô×ÌÇ ÐÑÔ×ÝÇ
ßÒÜ
ÉÑÎÕÛÎÍ ÝÑÓÐÛÒÍßÌ×ÑÒ
Éß×ÊÛÎ ÑÚ ÑËÎ Î×ÙØÌ ÌÑ ÎÛÝÑÊÛÎ ÚÎÑÓ ÑÌØÛÎÍ ÛÒÜÑÎÍÛÓÛÒÌ
ððï
ÑÒÛ ÌÑÉÛÎ ÍÏËßÎÛ
ØßÎÌÚÑÎÜ ÝÌ ðêïèí
É» ¸¿ª» ¬¸» ®·¹¸¬ ¬± ®»½±ª»® ±«® °¿§³»²¬ º®±³ ¿²§±²» ´·¿¾´» º±® ¿² ·²¶«®§ ½±ª»®»¼ ¾§ ¬¸· °±´·½§ò É» ©·´´ ²±¬ »²º±®½» ±«® ®·¹¸¬ ¿¹¿·²¬ ¬¸» °»®±² ±® ±®¹¿²·¦¿¬·±² ²¿³»¼ ·² ¬¸» ͽ¸»¼«´»ò ø̸· ¿¹®»»³»²¬ ¿°°´·» ±²´§ ¬± ¬¸» »¨¬»²¬ ¬¸¿¬ §±« °»®º±®³ ©±®µ «²¼»® ¿ ©®·¬¬»² ½±²¬®¿½¬ ¬¸¿¬ ®»¯«·®» §±« ¬± ±¾¬¿·² ¬¸· ¿¹®»»³»²¬ º®±³ «ò÷ ̸· ¿¹®»»³»²¬ ¸¿´´ ²±¬ ±°»®¿¬» ¼·®»½¬´§ ±® ·²¼·®»½¬´§ ¬± ¾»²»º·¬ ¿²§ ±²» ²±¬ ²¿³»¼ ·² ¬¸» ͽ¸»¼«´»ò ÍÝØÛÜËÔÛ
ÜÛÍ×ÙÒßÌÛÜ ÑÎÙßÒ×ÆßÌ×ÑÒæ
ÜÛÍ×ÙÒßÌÛÜ ÐÛÎÍÑÒæ
ÐßÙÛÍÌ ßÍÍ×ÙÒæ ÑÚÜßÌÛ ÑÚ ×ÍÍËÛæ ï ï
Any Person or organization for which the insured has agreed by written contract executed prior to loss to furnish this waiver.
UB2L553909
5/19/2020
Travelers Property Casualty Company of America
DocuSign Envelope ID: 69A143D6-164A-480E-8D11-D26B7DB537F5 POLICY NUMBER: COMMERCIAL AUTO
CA 20 48 10 13
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
CA 2
0 48 10 13 © Insurance Services Office, Inc., 2011 Page 1 of 1
DESIGNATED INSURED FOR
COVERED AUTOS LIABILITY COVERAGE
This endorsement modifies insurance provided under the following:
AUTO DEALERS COVERAGE FORM
BUSINESS AUTO
COVERAGE FORM
MOTOR CARRIER COVERAGE FORM
With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless modified by this endorsement.
This endorsement identifies person(s) or organization(s) who are "insureds" for Covered Autos Liability Coverage under the Who Is An Insured provision of the Coverage Form. This endorsement does not alter coverage provided in the Coverage Form.
This endorsement changes the policy effective on the inception date of the policy unless another date is indicated below.
Named Insured:
Endorsement Effective Date:
SCHE
DULE
Name Of Person(s) Or Organization(s):
Information required to complete this Schedule, if not shown above, will be shown in the Declarations.
Each person
or organization shown in the Schedule is
an "insured" for Covered Autos Liability Coverage, but
only to the extent that person or organization qualifies as an "insured" under the Who Is An Insured
provision contained in Paragraph A.1. of Section II –
Covered Autos Liability Co verage in the Business
Auto and Motor Carrier Coverage Forms and
Paragraph D.2. of Section I – Covered Autos
Coverages of the Auto Dealers Coverage Form.
BA6K931299
MOORE IACOFANO GOLTSMAN, INC
8/31/2019
The City of Lancaster, its elected officials, officers, employees and volunteers
DocuSign Envelope ID: 69A143D6-164A-480E-8D11-D26B7DB537F5 ADDITIONAL AUTHORIZATION NO. 2
FOR CONSULTANT SERVICES
TO: Laura Stetson, Principal
Moore Iacofano Goltsman, Inc. (MIG)
537 South Raymond Avenue
Pasadena, CA 91105
Under the terms of our Professional Consultant Services Agreement dated June 9, 2020, you are authorized to proceed with the following consulting services:
Project: Housing Element Implementation (RFQ #721-19)
Scope of Work: Per Attached Exhibit "1", Scope of Services
Period of Services: Per Attached Exhibit "2", Scope of Services
Date Required: Immediately
Project Manager: Larissa De La Cruz
ACCEPTED:
_____________________________ ______________________
Laura Stetson, Principal Date
Moore Iacofano Goltsman, Inc. (MIG)
AUTHORIZED:
_____________________________ _______________________ Jason Caudle Date
City Manager
January 24, 2022
Larissa De La Cruz, Senior Manager
City of Lancaster Community Development
44933 Fern Avenue
Lancaster, CA 93534
via email c/o: [email protected]
Subject: Proposal for Housing Element Implementation
Ms. De La Cruz:
Thank you for calling upon MIG, Inc. to submit this letter proposal to undertake Housing Element implementation tasks, including targeted Zoning Code updates and creation of outreach and informational materials. Per our discussions, we understand the City of Lancaster looks to complete these updates by December 2023, in conjunction with an extended deadline for SB 2 grant funds.
Regarding CEQA compliance, the recent Housing Element Initial Study/Negative Declaration covers subsequent Zoning Code amendments that implement Housing Element policy. Thus, either an Addendum or a consistency finding would be appropriate for the amendments.
We have crafted the attached work scope to respond directly to Housing Element programs and additional information you requested for implementation of SB 9 . We can adjust the work scope and budget during the scope refinement task in Phase I.
MIG has completed zoning work for many communities following comprehensive General Plan and Housing Element updates, both as foc used efforts and complete modernization of aging zoning regulations. Recent work includes the comprehensive zoning code update for Burlingame (for which MIG completed the General Plan in 2018) and focused updates in Garden Grove and Santa Fe Springs to implement General Plan amendments. We are currently preparing a Development Code update for the City of Grover Beach to implement Housing Element programs, as well as zoning code updates to develop objective design standards for the cities of Hemet, Loma Li nda, Agoura Hills, and San Mateo.
Upon your request, we can provide additional qualifications information.
Please call me if you have questions. We continue to work remotely due to COVID -19, so the best way to reach me is by cell phone at (818) 388-4286 or [email protected] .
Regards,
Laura R. Stetson, AICP
Principal
2 MIG, Inc.
Lancaster Housing Element Implementation
Scope of Work
TASK 1: PROJECT INITIATION, COORDINATION, AND MANAGEMENT The purpose of this task is to lay the groundwork for consistent project management and smooth communications throughout the work program.
TASK 1.1: PROJECT INITIATION, SCHEDULE, AND WORKSCOPE REFINEMENT At the outset of the project, the core MIG team will meet with City staff to kick off the project, gather data and information, finalize protocols and communications, and outline overall expectations and desired outcomes. This will include refining the work program, preparing a detailed revised project schedule, and reviewing the management structure that will ensure the program is completed on time and within budget.
TASK 1.2: PROJECT MANAGEMENT, PROJECT TEAM MEETINGS, AND PHONE CALLS The purpose of this subtask is to ensure project management meets the City’s expectations and keeps the program moving forward, including contract administration, invoicing, scheduling, and the timely delivery of products. We will prepare monthly invoices and have a biweekly phone call with the City’s project manager to monitor and review proj ect progress and results, including discussing options for policy implementation and preferred direction and to review draft work products. Our budget assumes a ten-month program and includes an allowance for phone calls with City staff that we feel is appropriate for accomplishing the work described in this proposal. If additional time is required beyond this allowance, we will bill for additional meeting time on a reimbursable basis with prior authorization from the City.
Deliverables
Kickoff Meeting Agenda (pdf)
Refined Work Program and Schedule (Word and pdf)
Project Management Call Agenda and Summaries (pdf)
Monthly Invoices (pdf)
TASK 2: DRAFT MUNICIPAL CODE AMENDMENTS
TASK 2.1: HOUSING ELEMENT IMPLEMENTATION – ADMINISTRATIVE DRAFT ZONING TEXT
AMENDMENTS
This task includes the steps necessary to produce the administrative review draft of the targeted Zoning Code amendments for City staff review. The Administrative Draft Zoning Code amendments will be
3 MIG, Inc.
prepared as individual chapters a nd sections, and will be provided to staff in this manner to allow for timely, focused feedback. We have budgeted for two rounds of review: first and second administrative drafts. City staff will provide all comments to the MIG team using Word’s track -changes function, with all comments consolidated into a single document. MIG will provide graphics with the second administrative draft. For existing code sections that are being revised, we will prepar e a legislative (redline/strikeout) version of the current Zoning Code to indicate the amended language. This task will address implementation for the following Housing Element programs:
HOUSING ELEMENT PROGRAM H-1.5: ACCESSORY DWELLING UNITS Update the City’s ADU ordinance to comply with State law. Remove r egulations that are not compliant with State law, including subjective development standards in the MDR and HDR zones and parking requirements that do not comply with State law. As revisions to State law occur, update the City’s ADU Ordinance to comply.
HOUSING ELEMENT PROGRAM H-2.3: EXTREMELY LOW-INCOME AND SPECIAL NEEDS HOUSING Revise the zoning ordinance to expand incentives available to senior housing to all special needs housing types, including reduced parking standards.
HOUSING ELEMENT PROGRAM H-4.2: Encourage Housing in Mixed Use Zones Review the existing standards for Mixed Use zones (MU-N, MU-C, MU-E, MU-TOD) and consider changes that would further encourage residential development, including:
• A reduction/revision to the required commercial components based on location proximate to arterial streets.
• Consider revisions that would make the Mixed Use Zoning standards more clear and user- friendly.
• Remove Conditional Use Permit requirement for multi-family projects of 16 or more units in Mixed Use zones.
HOUSING ELEMENT PROGRAM H-4.4: DENSITY BONUS
Update the City’s density bonus ordinance to comply with Government Code §65915. In addition, currently the density bonus ordinance is referenced in the Residential Zones Chapter of Title 17 of the Municipal Code. Ensure it clearly applies to both residential and mixed-use zones, as well as Commercial zones where housing may be conditionally allowed, by also cross referencing the density bonus in other chapters of the Zoning Code. Consider providing additional incentives to developers to encourage use of the density bonus.
HOUSING ELEMENT PROGRAM H-4.5: ZONING ORDINANCE COMPLIANCE WITH HOUSING
ACCOUNTABILITY ACT AND MINISTERIAL APPROVAL OF PROJECTS • Amend the Zoning Ordinance to comply with Housing Accountability Act requirements, which requires that multi-family housing (and mixed-use buildings containing at least two-thirds residential) cannot be denied or density reduced unless specific findings can be made. • Adopt objective design standards to ensure that the City can provide local guidance on design and standards for by-right projects as allowed by State law. Adoption of objective design standards will facilitate high-quality residential development and compliance with State
4 MIG, Inc.
objectives. The objective design standards will ensure provision of adequate private open space, parking, and related features, as well as architectural design. • Review findings of approval for Director’s Review and ensure that review complies with requirements for ministerial approval of particular projects, including ADUs (Government Code Section 65852.2[a][3]), supportive housing, emergency shelters, manufactured housing, etc.; amend the Zoning Code as necessary to comply and remove subjective findings. • Amend the Zoning Code to identify projects that require Site Plan Review and Director’s approval.
HOUSING ELEMENT PROGRAM H-4.6: FARMWORKER HOUSING IN RESIDENTIAL ZONES Amend Zoning Code regulations for the residential zones (RR -1, RR-2.5, and SRR) to comply with California Health and Safety Code Section 17021.6, which generally requires that employee housing consisting of no more than 36 beds in group quarters (or 12 uni ts or less designed for use by a single household) be treated as an agricultural use.
HOUSING ELEMENT PROGRAM H-4.7: ZONING FOR EXTREMELY LOW-INCOME AND SPECIAL NEEDS
HOUSING
• To fully comply with Government Ordinance Section 65583(a)(4), clearly indicate that emergency shelters are a permitted use in the LI zone, without any discretionary permits required, and add a new section to the Zoning Code outlining additional performance criteria for the use, as specifically outlined by State law.
• Review the Zoning Ordinance and make any necessary changes to ensure compliance with the Supportive Housing Streamlining Act (AB 2162) and AB 101 (Low-Barrier Navigation Centers).
PROGRAM H-4.9: LARGE HOUSING FACILITIES FOR PERSONS WITH DISABILITIES Ensure that permit requirements and necessary findings for residential care facilities and other housing facilities for persons with disabilities of seven or more people is consistent with state law and fair housing requirements.
TASK 2.2: SB 9 CODE AMENDMENTS - ADMINISTRATIVE DRAFT
MIG will complete revisions to the Zoning and Subdivision Codes to support SB 9 compliance, building from the City’s adopted Emergecy Ordinance. Revisions to the Zoning Code will be tailored to allow for duplexes pursuant to SB 9 and will also consi der the interplay of the ADU ordinance. Revisions to the Subdivision Code will be limited to those required to provide procedures and standards for urban lot splits to comply with SB 9 and will not be a comprehensive update to the Subdivision Code.
TASK 2.3: PUBLIC REVIEW DRAFT CODE AMENDMENTS
Based on staff review of the Administrative Draft Code amendments, MIG will make revisions to produce the Public Review Draft Code Amendments. This will be the version subject to CEQA review (Addendum or consistency finding) and public hearings. As described below in Task 3.1, we will conduct a study session with the Planning C ommission before public hearings to help identify any additional changes that may be desired and addressed in the public hearing staff report to be prepared by City staff.
5 MIG, Inc.
Deliverables
Assessment Memorandum and Outline (Word - electronic) Draft Format and Style Sheet (Word - electronic)
Administrative Draft Code Sections - 2 rounds of review (Word - electronic) Public Review Draft Zoning Code Sections (Word and pdf - electronic) Zoning Map – 2 rounds of review (pdf)
Optional task not included – General Plan land use map adjustments Task 3: Promotional and Outreach Materials
TASK 3.1: DRAFT PROMOTIONAL MATERIALS
The Housing Element also included a number of programs that require the creation of promotional materials, including:
PROGRAM H-1.5: ACCESSORY DWELLING UNITS
• Create a process to bring unpermitted ADUs up to code, such as a program that offers technical assistance and expedited services. Information of the program would part of outreach and marketing efforts.
• Create a public outreach program to encourage ADU development, including development of an information packet to market ADU construction. Opportunities could include advertising ADU development opportunities on the City’s website, through social media, at City Hall, and at City events.
• Identify an ADU specialist within the Community Development Division to respond to inquiries, ensure processing is streamlined, and support outreach efforts.
PROGRAM H-2.3: EXTREMELY LOW-INCOME AND SPECIAL NEEDS HOUSING Encourage developers of single- family dwellings to incorporate universal design and/or ”visitability” improvements.
PROGRAM H-2.5: SECTION 8 VOUCHER PROGRAM AND PUBLIC HOUSING • Affirmatively market and promote the use of Housing Choice Vouchers in high opportunity areas.
• Advertise and encourage landlords in Lancaster to participate in the Homeless Incentive Program run by LACDA, which provides financial support for property owners who rent to homeless Section 8 voucher holders.
PROGRAM H-3.4: ENERGY CONSERVATION
• Encourage energy-efficient design and energy conservation, and help residents minimize energy-related expenses. Maintain and distribute literature on energy conservation, including solar power, additional insulation, and subsidies available from utility companies, and encourage homeowners and landlords to incorporate these features into construction and remodeling projects.
6 MIG, Inc.
• Encourage maximum utilization of federal, State, and local government programs, such as the County of Los Angeles Home Weatherization Program, that assist homeowners in providing energy conservation measures.
• Continue to provide information on home loan programs available through the City, and encourage residents to use the programs to implement energy-efficient design. • Encourage and explore additional funding opportunities for energy conservation devices, including but not limited to lighting, water heater treatments, and solar energy systems in all residential projects.
• Review ordinances and recommend changes where necessary to encourage energy-efficient housing design and practices that are consistent with State regulations and advances in technology. Continue to enforce the State energy standards of the California Green Building Code.
PROGRAM H-5.2: AFFIRMATIVELY FURTHERING FAIR HOUSING
• Promote public awareness of federal, State, and local regulations regarding equal access to housing. Provide information to the public on various state and federal housing programs and fair housing law. Maintain referral information on the City’s website and at a variety of other locations such as community and senior centers, local social service offices, in City utility bills, and at other public locations including City Hall and the library. Add resources and information in Spanish and make available to the public.
• Continue to inform rental property owners of reasonable accommodation procedures and disability access laws by providing property owners with informational materials, online and when they apply for a rental business license, about their legal obligations. • Include a fair housing presentation in City Council meetings. Actively coordinate with the Social Equity Committee to periodically review and discuss fair housing issues and strategies. • Implement an accessibility policy that establishes standards and procedures for providing equal access to City services and programs to all residents, including persons with limited proficiency in English, and persons with disabilities.
The scope of these programs is expansive and will require additional coordination with City staff to focus work to the available budget. MIG proposes to work with staff to identify items of highest priority, and associated specific tasks and deliverables , to delineate the programs that can be implemented as part of this project. This project scoping will occur as part of Task 1.1. MIG proposes to bill this task on a time and materials basis, not to exceed the total budget for this task. MIG proposes to research, draft, and design promotional materials including pamphlets, PowerPoint presentations, and flyers.
TASK 3.2: FINAL PROMOTIONAL MATERIALS
Based on one round of staff review of the Administrative Draft promotional materials, MIG will make revisions to produce the final work products.
Deliverables
To Be Determined
7 MIG, Inc.
TASK 4: CEQA DOCUMENTATION
The Housing Element Initial Study IS/ND addressed Zoning Code amendments required to implement General Plan land use policy. Thus, either an Addendum or consistency finding will be sufficient for CEQA clearance. We have budgeted for an Addendum. However, if the City Attorney opines that a consistency finding works as well, the cost of this task can be reduced substantially. In either case, MIG will prepare an administrative draft document for City staff review, followed by the public hearing version. Public circulation and review are not required for either an Addendum or consistency f inding; thus, no formal CEQA notice is required. Following final City Council action, we will prepare a Notice of Determination for the City to file with the County Clerk.
Deliverables
Draft and Final Addendum (Word and pdf - electronic)
Notice of Determination (Word and pdf – electronic)
TASK 5: STUDY SESSIONS AND PUBLIC HEARINGS
Task 5.1: Planning Commission Study Session (1)
We recommend planning for one study session with the Planning Commission to review the entire draft ordinance, with all amendments, prior to formal public hearings . MIG will be responsible for preparing materials to be presented and having up to two MIG staff at each event (whether in person or virtual), and preparing an summary of comments received.
Task 5.2: Planning Commission Public Hearing (1)
We have budgeted for one hearing with the Planning Commission since most issues will be resolved during the study session. Additional hearings, if required, would be billed as additional services with prior City authorization.
We will prepare a PowerPoint presentation for the hearing and present it to the Planning Commission.
City staff will provide hearing notices, staff reports, ordinances, and resolutions for the hearings.
Task 5.3: City Council Public Hearing (1)
We have budgeted for one hearing with the City Council to adopt the Code amendments following conclusion of the Planning Commission hearing; this will be the first reading. Additional hearings, including the second reading, would be billed as a dditional services with prior City authorization. We will prepare a PowerPoint presentation for the hearing and present it to the Council. City staff will provide hearing notices, staff reports, ordinances, and resolutions for the hearings.
Deliverables
Study Session Presentation (PowerPoint)
Study Session summary of comments received (Word)
Planning Commission Presentation (PowerPoint)
City Council Presentation (PowerPoint)
8 MIG, Inc.
QUALITY ASSURANCE/QUALITY CONTROL
For all major deliverables, we will conduct internal review for quality assurance/quality control before sending documents to the City.
Budget
On the following page, we provide the budget for the work program described above and based on the assumptions indicated. Regarding CEQA compliance, we have assumed preparation of an Addendum.
Costs would be reduced if instead the City Attorney is comfortable with a c onsistency finding; these funds could be reallocated to other tasks to increase the breadth and/or approach.
HRS @ $225 HRS @ $160 HRS @ $190 HRS @ $120 HRS @ $200 HRS @ $130 HRS @ $100 Housing Element Implementation Work Program
Task 1: Project Management
1.1 Project Initiation, Schedule, and Work Scope Refinement 8 1,800$ 12 1,920$ 4 760$ 4 480$ - -$ - -$ 5 500$ 33 5,460$
1.2 Project Management and Coordination (10 months) 10 2,250$ 44 7,040$ - -$ -$ - -$ -$ 12 1,200$ 66 10,490$ Subtotal 18 4,050$ 56 8,960$ 4 760$ 4 480$ - -$ - -$ 17 1,700$ 99 15,950$ Task 2: Draft Municipal Codee Amendments
2.1 Housing Element Imp - Admin Draft Zoning Text Amendments 70 15,750$ 80 12,800$ 120 22,800$ 200 24,000$ - -$ - -$ 8 800$ 478 76,150$
2.2 SB 9 - Admin Draft Code Amendments 10 2,250$ 20 3,200$ 20 3,800$ 46 5,520$ - -$ - -$ 8 800$ 104 15,570$
2.3 Public Review Draft Code Amendments 20 4,500$ 40 6,400$ - -$ 80 9,600$ - -$ - -$ 8 800$ 148 21,300$ Subtotal 100 22,500$ 140 22,400$ 140 26,600$ 326 39,120$ - -$ - -$ 24 2,400$ 730 113,020$ Task 3: Promotional and Outreach Materials
3.1 Draft Promotional Materials 10 2,250$ 40 6,400$ 72 13,680$ 160 19,200$ - -$ - -$ 4 400$ 286 41,930$
3.2 Final Promotional Materials 4 900$ 10 1,600$ 10 1,900$ 20 2,400$ - -$ - -$ 40 4,000$ 84 10,800$ Subtotal 14 3,150$ 50 8,000$ 82 15,580$ 180 21,600$ - -$ - -$ 44 4,400$ 370 52,730$ Task 4: CEQA Documentation
4.1 Addendum to General Plan EIR - Draft and Final; NOD 1 225$ 2 320$ - -$ -$ 20 4,000$ 60 7,800$ 6 600$ 89 12,945$ Subtotal 1 225$ 2 320$ - -$ - -$ 20 4,000$ 60 7,800$ 6 600$ 89 12,945$ Task 5: Public Hearings
5.1 Planning Commission Study Session (1) 6 1,350$ 12 1,920$ - -$ 20 2,400$ - -$ - -$ - -$ 38 5,670$
5.2 Planning Commission Hearing (1) 6 1,350$ 12 1,920$ - -$ 8 960$ - -$ - -$ -$ 26 4,230$
5.3 City Council Hearing (1) 6 1,350$ 12 1,920$ - -$ 8 960$ - -$ - -$ - -$ 26 4,230$ Subtotal 18 4,050$ 36 5,760$ - -$ 36 4,320$ - -$ - -$ - -$ 90 14,130$ SUBTOTAL 151 33,975$ 284 45,440$ 226 42,940$ 546 65,520$ 20 4,000$ 60 7,800$ 91 9,100$ 1,378 208,775$ Direct Costs: Travel, Printing, and Mailing (allowance) 1,000$ Project Total 209,775$
L. Stetson
Principal-in-Charge Project Manager
Zoning Specialists
and Design
Specialists Total
Admin./Word
Processing
B. Prasse
Env. Director
C. Hile
Env. Analyst
Planning/Design
Associates
STAFF REPORT
City of Lancaster
CC 12
5/3/2022
JC
Date: May 3, 2022
To: Mayor Parris and City Council Members
From: Jeff Hogan, Senior Director – Development Services Larissa De La Cruz, Senior Manager – Community Development Cynthia Campaña, Senior Planner – Community Development Subject: Task Order for Multi-Year Professional Services (Service Group Category 4 – Environmental Services) Preparation of the Eastside Overlay and Environmental Impact Report
Recommendation:
Approve Task Order No. 3 with Michael Baker International, Inc., for services in accordance with the 2018-2020 Multi-Year Professional Services Agreement, Service Group Category 4 – Environmental Services for the Eastside Overlay Environmental Impact Report in the amount of $421,945.00. Authorize the City Manager, or his designee, to sign all documents.
Fiscal Impact:
$421,945.00; sufficient funds are available in the Community Development Division Budget Account No. 101-4770-316.
Background:
The City is proposing to establish an overlay zone (East Side Overlay) in the easternmost boundary of the City, along the areas between Avenue J and Avenue L, and 40 th Street West to 110th Street East, respectively. This overlay is intended to identify unique land uses, such as light industrial and agricultural uses, including hydrogen, distribution facilities, and other land uses intended to create jobs and additional energy resources in the Antelope Valley.
To assist with the preparation of the required Environmental Impact Report (EIR) for the Eastside Overlay, the City intends to award a contract to a consultant on the Multi-Year Professional Services Agreement Pre-Qualified List under Service Group Category (SGC) 4 – Environmental Services. The Consultant will be responsible for all aspects of the preparation of the overlay and of the EIR. Staff anticipates that the entitlement process will be completed by the first quarter of 2023.
8 7
8 CC/jr
Attachment:
Task Order No. 3
TASK ORDER NO. 3
UNDER AGREEMENT FOR PROFESSIONAL CONSULTANT SERVICES – RFQ 694-18 SERVICE GROUP CATEGORY 4 – ENVIRONMENTAL SERVICES
DATED MAY 3, 2022
BETWEEN
THE CITY OF LANCASTER, "OWNER"
AND
"CONSULTANT"
PROJECT TITLE: Eastside Overlay Environmental Impact Report
PROJECT DESCRIPTION: Development of the Eastside Overlay and preparation of an Environmental Impact Report
SCOPE OF WORK: Per Attached Exhibit "1", Scope of Services
PERIOD OF SERVICES: Per Attached Exhibit "2", Schedule
COMPENSATION
FOR SERVICES: Per Fee Schedule - Not to Exceed $421,945
"OWNER" "CONSULTANT"
CITY OF LANCASTER MICHAEL BAKER INTERNATIONAL,
INC
By: By:
Jason Caudle Gary Warkentin
City Manager Vice President
Date: Date:
Approved by Dept. Head:
APPROVED AS TO FORM:
Allison E. Burns, Esq.
City Attorney
PROPOSAL TO PROVIDE ENVIRONMENTAL SERVICES
CITY OF LANCASTER EAST SIDE PROJECT
April 2022 Page 1
SCOPE OF WORK
The following scope of work focuses on preparation of the environmental compliance documentation for the City of Lancaster East Side Project.
1.0 KICK-OFF AND PROJECT DESCRIPTION
1.1 Kick-Off Meeting
The work program will be initiated with a virtual kick -off meeting with City staff to discuss the project features in greater detail. This initial meeting is vital to the success of the process and will be a key milestone in order to confirm the work program, scheduling, and overall communications. Prior to the kick-off, Michael Baker will distribute a kick -off meeting agenda and detailed memorandum, which will identify information needs.
1.2 Research and Investigation
Michael Baker will obtain and review available referenced data for the project area, including policy documentation from the City of Lancaster, County of Los Angeles, State and Federal agencies, the Southern California Association of Governments (SCAG), and other agencies which may be affected by the project. This information, along with environmental data and information available from the City and County, will become part of the foundation of the environmental documentation and will be reviewed and incorporated into the analysis, as deemed appropriate.
1.3 Draft Project Description
A preliminary draft project description will be prepared that details the project location, proposed project characteristics, and permits and approvals that are required based on available information from the City.
The project description will include a summary of the project’s local environmental setting. Exhibits depicting the regional and site vicinity will also be included in this section. Michael Baker will submit the draft project de scription to the City for review and approval. We assume that no modifications to the project description will occur after approval by the City.
2.0 LAND USE ASSISTANCE
A zoning overlay is an additional layer of planning control applied to properties in a clearly defined geographic area. Overlays function as tailored zoning districts, each with its own specialized set of regulations. In some cases, incentives can be included to encourage specific types of development.
Overlays implement the General Plan through neighborhood-specific policy objectives, supplementing the underlying base zoning. Applicants seeking to develop in an overlay must demonstrate compliance with all applicable regulations.
Michael Baker understands the City’s intent to create a Light Industrial/Agriculture Overlay, including uses associated with cannabis production. Our scope assumes Municipal Code Chapter 17.16.040 would
PROPOSAL TO PROVIDE ENVIRONMENTAL SERVICES
CITY OF LANCASTER EAST SIDE PROJECT
April 2022 Page 2
provide the foundation for the o verlay, in addition to other chapters within the Municipal Code that include standards related to cannabis production.
2.1 Data Collection, Mapping, and Reviewing Relevant Documents
Michael Baker will collect existing GIS data from the City, Los Angeles County, and Southern California Association of Governments. The data will include information related to existing land uses, General Plan land use, zoning, street centerlines, and Assessor's data, to be used as base maps for exhibits throughout the overlay.
We will also review relevant information and plans related to the project site, including the General Plan, Municipal Code, local hazard mitigation plan, and plans prepared by the regional agencies and utilities such as water, sewer, electricity, and gas services. A summary memorandum of the findings will be prepared.
2.2 Developing Land Use Regulations and Overlay Framework
A statement of goals and policies along with the summary memo from Task 2.1 will provide the framework for the Overlay Plan. These goals and policies will be dev eloped based on input from the City and other stakeholders identified by the City through the outreach process and ongoing discussions with the City staff. This task assumes this outreach will occur in parallel with the environmental process, such as the scoping meeting. Should community outreach beyond the assumptions made in this task be needed, an additional scope and fee can be provided.
The primary goal of this effort is to affect the functional and economic development of the area by creating a plan that is sensitive to the relationship between future uses while considering existing uses.
The matters addressed may include:
• Overlay plan vision;
• Focus on opportunity sites and uses;
• Land use mix and intensity/density;
• Transition uses and buffering; and
• Infrastructure.
2.3 Administrative/Screencheck Draft Overlay Plan
It is anticipated that the Overlay Plan will include the following components:
• Introduction. A chapter including background information, authority for the Overlay Plan, General Plan consistency, statement of CEQA compliance, planning process, and other pertinent information.
• Planning Framework. A foundational chapter that includes the vision and key goals, policies, or principles framing the Overlay Plan.
PROPOSAL TO PROVIDE ENVIRONMENTAL SERVICES
CITY OF LANCASTER EAST SIDE PROJECT
April 2022 Page 3
• Land Use Plan. This chapter will establish land use classifications and locate each classification within the project area. This chapter will guide the location and type of new development and uses.
• Infrastructure Plan . This chapter includes an overview of the infrastructure (using previous infrastructure documents and technical study findings), mobility and circulation, and parking analyses, as well as recommended improvements.
• Development Regulations. The Development Regulations will identify how the built form should function and look to support the City's goals for the overlay area. The mandatory standards will shape the rural design character of the project area. Established performance standards will be identified in this section.
• Urban Design Framework Plan. This chapter will include Design Guidelines to illustrate preferred design through text, graphics, and photographs for a range of land uses, building types, landscaping, lighting, signage, and site planning.
• Implementation and Administration. This chapter will discuss the administrative process and procedures required for review and permitting of land use and development activity within the Overlay Plan area. It may include development incentives and opportunities to streamline project approvals and take advantage of permitting flexibility.
Michael Baker will prepare an Administrative Draft Overlay Plan for City staff review. Following the City review of the Administrative Draft and receipt of initial comments, we will revise it and resubmit a Screencheck Draft. This scope assumes the City will compile all comments in one master document for Michael Baker to address.
Should it be determined through initial meetings with the C ity that the components of the Overlay Plan as described above can be scaled back, the scope and fee can be adjusted to accommodate agreed upon changes.
2.4 Public Review Draft and Final Overlay Plan
The Screencheck Draft Overlay Plan will be revised to address City comments and the Public Review Draft Overlay Plan will be prepared for Planning Commission and City Council public hearings.
Michael Baker will address changes directed by the Planning Commission and City Council after the hearings as directed by the City staff, if any. Minimal changes are expected at this stage.
2.5 Land Use Assistance Project Management
Ms. Tracey Raszewski will serve as Task Manager for the land use assistance task and will be responsible for implementation of key project management tasks under Task 2.0, including management and supervision of the land use project team and ongoing consultation with the City staff.
PROPOSAL TO PROVIDE ENVIRONMENTAL SERVICES
CITY OF LANCASTER EAST SIDE PROJECT
April 2022 Page 4
3.0 TECHNICAL STUDIES
3.1 Air Quality Analysis
Existing Conditions/Regulatory Framework . The project is located within the Mojave Desert Air Basin (MDAB), which is under the jurisdiction of the Antelope Valley Air Quality Management District (AVAQMD). Baseline meteorological and air quality data developed through the California Air Resources Board (CARB) will be utilized for the desc ription of existing ambient air quality. Air quality data from the nearest air quality monitoring station will be included to help highlight existing air quality local to the project area. The existing conditions will also describe and address the requirem ents set forth by the AVAQMD’s Federal 8-Hour Ozone Attainment Plan. The analysis will be conducted in compliance with the AVAQMD CEQA Guidelines.
Construction-Related Emissions . Air quality impacts from short -term construction activities will be qualitatively analyzed. The short -term construction analysis will be conducted in compliance with the AVAQMD CEQA Guidelines. Naturally occurring asbestos impacts will also be discussed qualitatively. If necessary, mitigation measures will be identified to reduce construction -related emissions to the extent feasible.
Long-Term Emissions. Operational (i.e., area, mobile, and energy source) emissions will be quantified and compared to the AVAQMD air quality emissions thresholds. The emissions will be quantitatively derived utilizing the California Emissions Estimator Model version 2020.4.0 (CalEEMod). Primary sources of emissions will be related to area sources and local/regional vehicle miles traveled. Project consistency with the AVAQMD’s Federal 8-Hour Ozone Attainment Plan will be evaluated.
Although the analysis will be conducted at a programmatic level, this scope assumes enough detail will be received for the proposed cannabis facility at APN 3170-012-022 that the level of analysis for this area will be conducted at a project level of detail. This scope excludes a Health Risk Assessment (HRA).
Air Emissions Health Impacts. As a result of the California Supreme Court decision for Sierra Club vs. County of Fresno (Friant Ranch L.P.), the resultant human health impacts from the project’s short -term construction and long-term operational air emissions will be analyzed.
Valley Fever. Valley Fever, or coccidioidomycosis, is a pulmonary infection of human and other mammals caused by inhalation of the spores of the fungus Coccidioides immitis , which grows in the soil of the southwestern United States. Michael Baker International will conduct a review of maps and other available information to determine whether the soils within the project site have the potential to contain Valley Fever spores.
Michael Baker assumes the Applicant for the proposed cannabis facility at APN 3170-012-022 will provide site plans and proposed grading plans as well as d etailed construction phasing and grading/excavation/paving quantities.
3.2 Greenhouse Gas Analysis
Michael Baker will review the project’s vehicle trip generation, energy consumption, and other operational sources and will prepare an inventory of the greenhouse gas (GHG) emissions (i.e., nitrous
PROPOSAL TO PROVIDE ENVIRONMENTAL SERVICES
CITY OF LANCASTER EAST SIDE PROJECT
April 2022 Page 5
oxide, methane, and carbon dioxide) from both direct (i.e., area and mobile sources) and indirect sources (i.e., energy/water consumption and wastewater/solid waste generation). CalEEMod will be used to quantify long-term operational GHG emissions. Construction GHG emissions will be qualitatively analyzed.
Reductions from recently adopted programs and regulations will be included, such as improvements in fuel efficiency, State building code energy efficiency, and landscaping water efficiency. The analysis will determine the project’s impact by identifying if the project GHG emissions exceed the thresholds established by the AVAQMD. The GHG emissions analysis will also discuss the potential global climate change impacts, the effects of GHG emissions, and history of GHG emissions regulations in California. The analysis will review project consistency with applicable plans for the purpose of reducing GHG emissions, such as the California Air Resources Board ’s 2017 Climate Change Scoping Plan and SCAG’s 2020-2045 Regional Transportation Plan/Sustainable Communities Strategy (2020-2045 RTP/SCS). Mitigation measures will be identified and incorporated, as necessary, to reduce potentially significant GHG impacts of the proposed project.
3.3 Noise Analysis
Existing Conditions/Regulatory Framework. The applicable noise and land use compatibility criteria for the project area will be reviewed and noise standards regulating noise impacts will be discussed for land uses on and adjacent to the project site. A site visit will be conducted, and short -term noise level measurements will be taken along the project area. The noise monitoring survey will be conducted at up to three separate locations to establish baseline noise levels in the project area. Noise recording lengths are anticipated to require approximately 10 minutes at each location. This scope includes two long-term (24-hour) noise measurements.
Construction-Related Noise and Vibration. Noise impacts from construction sources will be analyzed based on the anticipated equipment to be used, length of a specific construction task, equipment power type (gasoline or diesel engine), horsepower, load factor, and percentage of time in use. The construction noise impacts will be evaluated in terms of maximum levels (L max) and hourly equivalent continuous noise levels
(Leq) and the frequency of occurrence at adjacent sensitive locations. An analysis of vibration impacts will be based on the Federal Transit Administration’s vibration analysis guidance. Analysis requirements wil l be based on the sensitivity of the area, anticipated construction activities, and the City’s Noise Ordinance specifications.
Operational Noise and Vibration. The project -generated off-site traffic noise levels will be compared to the applicable City Noise Ordinance specifications and/or land use compatibility criteria for off -site uses.
On-site noise generating activities (e.g., stationary sources, parking lot activities, etc.) will also be addressed and analyzed for potential impacts to the adjacent uses and will be assessed against the Noise Ordinance specifications. Compliance with applicable noise standards will be evaluated, with recommended mitigation measures included where appropriate. The operational vibration analysis will be qualitative because the project is a warehouse/distribution development and is not anticipated to generate excessive operational vibration levels.
Although the analysis for the proposed overlay zone will be conducted at a programmatic level, this scope assumes enough detail will be received for the proposed cannabis facility at APN 3170-012-022 that the level of analysis for this area will be conducted at a project level of detail.
PROPOSAL TO PROVIDE ENVIRONMENTAL SERVICES
CITY OF LANCASTER EAST SIDE PROJECT
April 2022 Page 6
3.4 Energy Analysis
Michael Baker will analyze the energy implications of the project pursuant to Public Resources Code Section 21100(b)(3) and Appendix G and Appendix F of the CEQA Guidelines. These statutes and guidelines require a project to describe, where relevant, the wasteful, inefficient, and unnecessary consumption of energy caused by a project. In addition, Appendix G of the CEQA Guidelines requires a consistency analysis with state or local plans for renewable energy or energy efficiency. The analysis will analyze energy consumption associated with short-term construction activities and long-term operations using CalEEMod based on the project’s land use data. The analysis will also discuss the effects of the project on regional and local energy supply, demand, and resources, and the project’s consistency with energy standards and requirements. Additionally, the assessment of environmental impacts on energy resources will include mitigation measures to reduce inefficient and unnecessary consumption of energy, if necessary.
3.5 Transportation Impact Analysis Report
Michael Baker will prepare a transportation impact analysis report consistent with the City of Lancaster and County of Los Angeles transportation study guidelines for the project level analysis for the proposed cannabis facility (APN 3170-012-022) and the programmatic level analysis for the overlay zone. The following summarizes our approach to preparing the technical study in support of the project.
Project Scoping. Michael Baker will prepare a scoping letter for review by City staff outlining our approach to both the project-specific analysis and the programmatic analysis. This scoping letter will include VMT metrics, analysis methodology, preliminary understanding of the baseline conditions and approach to operational analysis. We anticipate that only the proposed cannabis facility will require operational analysis.
Overlay Zone Programmatic Analysis . Michael Baker will conduct a programmatic level VMT assessment of the land use changes included in the overlay zone. As part of this analysis, Michael Baker will use GIS data to identify the baseline and future VMT conditions as well as planned land uses within the traffic analysis zones (TAZ) where the land use changes are being considered. Michael Baker will then evaluate the potential change in VMT relative to the planned land use change and make a determination as to where or not the proposed changes will result in a change in VMT. This will require the team to prepare a trip generation assessment for the overlay zone and an assessment in the change in trip characteristics (average trip length) with the proposed change in land use. Programmatic analysis for a Citywide analysis is typically based on total VMT.
Proposed Cannabis Facility Project-Specific Analysis. For the proposed cannabis facility, Michael Baker will prepare a VMT screening assessment to determine if a comprehensive VMT is required. Michael Baker will compare the proposed land use with the land uses included in the project site TAZ to determine if retail land uses were cons idered in the baseline or future conditions assessment of VMT thresholds. To determine if the project meets the City’s screening criteria, project trips will be calculated, the project TAZ (presuming retail was considered at this location) VMT will be reviewed, and the high-quality transit area maps prepared for City of Lancaster will be reviewed. If the screening criteria are met, the project will be determined to have a less than significant impact. If the criteria are not met, a project-specific VMT analysis will be conducted to determine if the project will have a significant impact. Should a project specific analysis be needed, Michael Baker will work with Fehr & Peers or Translutions to run the SCAG
PROPOSAL TO PROVIDE ENVIRONMENTAL SERVICES
CITY OF LANCASTER EAST SIDE PROJECT
April 2022 Page 7
model. The model run would cost approximately $7,500 and is included in the cost estimate; however, it may not be required if the project meets the City’s VMT screening criteria.
In addition to the VMT analysis, Michael Baker will prepare an operational analysis of existing and horizon year with project conditions. Based on the anticipated trip generation for the site, this scope of work includes eight (8) intersections and six (6) roadway segments. Michael Baker will collect new traffic count data to establish the baseline condition and will use futur e forecast volumes to determine a per year growth rate to determine a future year condition. Michael Baker will work closely with City staff to select the horizon year and the acceptable growth rate for the project.
Reporting. Michael Baker will summarize the findings of the analysis in a transportation impact analysis report. The report will include the programmatic assessment of the overlay zones, the project -specific VMT analysis, and the project-specific operational analysis. This scope of work includes three (3) electronic submittals: draft, final draft and final report.
Meetings. Michael Baker’s transportation specialist(s) will attend up to eight (8) hours of meetings related to the project, separate from public hearing time.
3.6 Biological Resources Assessments
Biological Resources Assessment for Proposed Cannabis Facility . Michael Baker will conduct a records search using the California Department of Fish and Wildlife’s (CDFW) California Natural Diversity Database (CNDDB), the California Native Plant Society’s (CNPS) Electronic Inventory of Rare and Endangered Vascular Plants of California listings, and the U.S. Fish and Wildlife Service (USFWS) Information for Planning and Consultation (IPaC) project planning tool and Critical Habitat online mapper to determine which special-status biological resources may occur on or within the general vicinity of the project site. In addition, Michael Baker will review historic/current aerial photographs, U.S. Geologic Survey (USGS) topographic maps, U.S. Department of Agriculture (USDA) soil maps, as well as publicly available biological technical reports previously prepared for the project site and/or surrounding vicinity to identify existing biological conditions and/or disturbances, and eva luate the potential for special-status biological resources to be present that could pose a constraint to implementation of the proposed project.
Following the literature review, Michael Baker qualified biologists will conduct a general field survey/investigation of the proposed cannabis facility project site to document baseline biological conditions and evaluate the potential for the project site to support special -status plant and wildlife species, including sensitive natural communities. More specifically, the field survey will be conducted to document the presence/absence of special-status biological resources, or to determine the potential for occurrence of such resources that may not be detectable when the literature review and field survey are conducted. All plants, wildlife, and vegetation communities observed during the field survey will be recorded and mapped, if present.
Michael Baker will then prepare a letter report summarizing the information obtained during the literature review, methods and results of the field survey, and potential for special-status biological resources to occur on or within the vicinity of the project site. The report will also provide an analysis of potential project-related impacts to biological resources and identify a ny additional surveys, regulatory approvals/permits, and mitigation measures that may be required to reduce impacts to below a level of significance, as well as any additional requirements to remain in compliance with the Los Angeles County
PROPOSAL TO PROVIDE ENVIRONMENTAL SERVICES
CITY OF LANCASTER EAST SIDE PROJECT
April 2022 Page 8
Significant Ecological Areas (SEA) Program and SEA Ordinance, if applicable. Site photographs, GIS figures, and records search results will be included as attachments to the final report to further enhance written text and support the impact analysis.
This task assumes one (1) field survey of the proposed cannabis facility project site will be conducted and allows for one (1) round of review/revisions to the draft report before accepted as final. This task also assumes that the City of Lancaster will provide full access to the project site, as well as keys to locked gates and advance notice to existing property tenants of our right of entry. This task excludes protocol/focused surveys for special-status plant and wildlife species. If protocol/focused surveys would be required other than those listed in this proposal, Michael Baker would submit a separate scope and fee and continue work under an approved contract augment.
Focused Burrowing Owl Surveys for Proposed Cannabis Facility . Based on a preliminary analysis of the project site and the historic presence of owls on-site and in the surrounding vicinity, focused surveys for burrowing owl are proposed to confirm the presence/absence of suitable habitat and burrowing owls prior to development. In accordance with the survey guidelines and protocols outlined in the Staff Report on Burrowing Owl Mitigation (Department of Fish and Game 2012), Michael Baker biologists will conduct four (4) separate surveys during the breeding season, with at least one (1) survey occurring between February 15 and April 15. The remaining three (3) surveys would be conducted at least three weeks apart between April 15 and July 15, with at least one survey occurring after June 15.
The entire project site would be surveyed by walking transects in suitable habitat and areas within 150 meters (500 feet) of the project site boundary, as applicable based on on-site topography and legal access.
Walking transects would be spaced approximately 7 to 20 meters (20 to 60 feet) apart to ensure 100 percent visual coverage of all areas. Methods to detect the presence of burrowing owl will include direct observation, aural detection, and signs of presence including pellets, whitewash, feathers, or prey remains. Suitable burrows/nest sites, including rock piles and n on-natural substrates, will be thoroughly examined for signs of presence and all burrows encountered will be examined for shape, scat, pellets, feathers, tracks, and prey remains. The locations of any remnant/occupied burrows/nests or burrowing owl sign will be recorded with a hand-held GPS unit.
Following the completion of the final survey, Michael Baker will prepare a letter report summarizing the methods, conditions, and results of the surveys. Site photographs and GIS figures will be included in the letter report to further enhance written text and visually identify specific locations of any occupied or remnant burrows/nests and/or burrowing owl sign, if found.
This task assumes four (4) field surveys will be conducted and allows for one (1) round of response to comments on the draft report before accepted as final. This task also assumes that the City of Lancaster will provide full access to the project site, as well as keys to locked gates and advance notice to existing property tenants on -site and in the surrounding area of our right of entry. This task excludes the preparation of a Burrowing Owl Exclusion Plan.
Biological Due Diligence Report for Proposed Overlay Zone. Michael Baker will conduct a records search using CDFW’s CNDDB, CNPS’s Electroni c Inventory of Rare and Endangered Vascular Plants of California listings, and the USFWS’s IPaC project planning tool and Critical Habitat online mapper to determine which special-status biological resources may occur on or within the general vicinity of t he project site. In addition, Michael Baker will review historic/current aerial photographs, USGS topographic maps, USDA
PROPOSAL TO PROVIDE ENVIRONMENTAL SERVICES
CITY OF LANCASTER EAST SIDE PROJECT
April 2022 Page 9
soil maps, as well as publicly available biological technical reports previously prepared for the project site and/or surrounding vicinity to identify existing biological conditions and/or disturbances and evaluate the potential for special-status biological resources to be present that could pose a constraint to implementation of the proposed project.
Michael Baker will then prepare a letter report in the form of a due diligence assessment summarizing the information obtained during the literature review, applicable regulations and regulatory approvals/permits pertaining to the development of the proposed overlay zone, potential for spec ial- status biological resources to occur on or within the vicinity of the project site, an assessment of which focused surveys may be required prior to any development occurring, and mitigation measures that may be required to reduce impacts to below a level of significance, as well as any additional requirements to remain in compliance with the Los Angeles County SEA Program and SEA Ordinance, if applicable. GIS figures and records search results will be included as attachments to the final report to further enhance written text and support the impact analysis.
This task assumes that no field work will be performed for the analysis of the proposed overlay zone. If a site-specific survey is requested, Michael Baker will submit a separate scope and fee and c ontinue work under an approved contract augment.
3.7 Jurisdictional Delineations
Jurisdictional Delineation for Proposed Cannabis Facility . Based on a preliminary desktop review, the proposed cannabis facility has the potential to impact both State and f ederal jurisdictional resources. As such, Michael Baker will conduct a site reconnaissance and perform a delineation of jurisdictional “waters of the United States” and “waters of the State” (including potential wetlands), located within and/or immediately adjacent to the boundaries of the proposed cannabis facility site (APN 3170-012-022) . The jurisdictional delineation will result in:
• a determination of the U.S. Army Corps of Engineers (Corps) ordinary high -water mark (OHWM) and indications of any of the three (3) wetland parameters on-site. The actual presence or absence of wetlands on -site will be verified through the determination of the presence of wetland hydrology, hydrophytic vegetation, and hydric soils pursuant to the Regional Supplement to the Corps of Engineers Wetland Delineation Manual: Arid West Region (Version 2.0) (Corps 2008); • a determination of the California Department of Fish and Wildlife’s (CDFW) jurisdiction, identified on-site as streambeds or to the outer drip line of riparian vegetation (if present) pursuant to Section 1600 et seq. of the California Fish and Game Code (CFGC); and • a determination of the Regional Water Quality Control Board’s (Regional Board) jurisdiction based on the adopted State Wetland Definition and Procedures for Discharges of Dredged or Fill Material to Waters of the State (State Water Resources Control Board, 2019). In cases where federal jurisdiction is not present, the delineation will identify areas under the jurisdiction of the Regional Board pursuant to Section 13263 of the California Porter-Cologne Water Quality Control Act.
Prior to surveying the project site, Michael Baker will conduct a thorough literature review of relevant information to support the site reconnaissance and report preparation. Sources reviewed are anticipated to include topographic maps, U.S. Department of Agriculture Web Soil Survey, historic/current aerial
PROPOSAL TO PROVIDE ENVIRONMENTAL SERVICES
CITY OF LANCASTER EAST SIDE PROJECT
April 2022 Page 10
photographs, Federal Emergency Management Agency flood zone maps, USFWS National Wetlands Inventory Mapper, hydrology/climate information, and watershed data.
Once the site visit is complete and the project site’s baseline information is obtained, Michael Baker w ill prepare a letter report discussing on-site jurisdictional areas. Pursuant to agency requirements, the report will include the required exhibits to enhance the written text and identify jurisdictional areas. This task includes time for GIS analysis to s upport the preparation of the jurisdictional delineation figures. The delineation figures will be a scale of 1” = 300’ or greater and will consist of an aerial photograph. Drainage and/or wetland features will be overlaid on the aerial photograph and the extent (acreage and linear feet) of each agency’s jurisdiction will be identified.
This task assumes one (1) field survey of the proposed cannabis facility project site will be conducted by two (2) certified wetland delineators and allows for one (1) round of review/revisions prior to submittal.
Potential Jurisdictional Resources Desktop Analysis and Memorandum . Michael Baker will perform a desktop-level analysis of potential jurisdictional resources and prepare a jurisdictional resources memorandum for the proposed overlay zone.
Michael Baker will conduct a thorough review of relevant information to support the identification of jurisdictional resources within the overlay zone. The literature review helps to preliminarily identify areas that may fall under the jurisdiction of the regulatory agencies. Sources reviewed are anticipated to include topographic maps, soil surveys, historic/current aerial photographs, flood maps, hydrology/climate information, and watershed data.
Once the literature review is complete, Michael Baker will perform a desktop- level analysis of potential jurisdictional resources including Corps and Regional Board waters of the U.S., and CDFW jurisdictional streambed and associated riparian vegetation located within the overlay zone. This task includes time for GIS analysis to support the preparation of preliminary jurisdictional delineation figures. To encompass the Overlay Zone, approximately 15 preliminary delineation figures will be generated, consisting of an aerial photograph. Potential jurisdictional aquatic features will be overlaid on the aerial photograph and the extent of each agency’s jurisdiction will be identified.
A jurisdictional resources memorandum will be prepared summarizing the literature review information and results of the desktop analysis of potential jurisdictional resources including preliminary jurisdictional delineation figures as described above.
Analysis will be based on existing documentation and a desktop level review. T his task excludes preparation of a formal jurisdictional delineation or site visit(s) for the overlay zone analysis and also assumes the City will provide the overlay zone boundaries in digital CAD or GIS file formats.
3.8 Cultural/Paleontological Resources Assessment
Michael Baker will complete a cultural resources records search of the proposed overlay zone with a 0.5- mile search radius at the South Central Coastal Information Center (SCCIC); literature, historic map and aerial photo review; local historical society consultation, and an archaeological sensitivity analysis of the overlay zone. Additionally, we will identify resources within the overlay zone that may require evaluation
PROPOSAL TO PROVIDE ENVIRONMENTAL SERVICES
CITY OF LANCASTER EAST SIDE PROJECT
April 2022 Page 11
to the California Register of Historical Resources or National Register of Historic Places as part of a future project.
Michael Baker will also conduct a fossil locality search at the Natural History Museum of Los Angeles and UC Museum of Paleontology, literature and geologic map review, and a paleontological resources sensitivity analysis.
Additionally, we will conduct a project -specific review of the proposed 420 -acre cannabis facility bound by 40th Street East, East Avenue K, East Avenue L, and 50th Street East. Michael Baker will conduct an intensive level archaeological field survey to identify the presence or absence of archaeological resources at the ground surface. We assume negative results.
Based on preliminary research , the proposed cannabis facility project site includes the following built environment resource that will require evaluation to the California Register because it is over 50 years of age: APN 3170-012-002 - 43200 40th St E – built in 1964 . The resource will be recorded on appropriate DPR 523 series forms, the standard form used by cultural resources professionals in California. The intent of the above-mentioned cultural resources identification efforts is to determine if there are historical and archaeological resources, as defined in CEQA Guidelines Section 15064.5(a), within the project site.
The findings of the cultural and paleontological resources identification efforts will be summarized in a technical report that will include the applicable regulatory setting; project description; geologic, prehistoric and historic context; describe the methods and results of the cultural and paleontological resources identification efforts described above; an assessment of potential direct and indirect impacts to historical resources; and recommendations or mitigation measures, as applicable. The DPR 523 series forms will be included as an appendix. Further studies may be required if archaeological or historical resources are identified.
This task assumes that no field work will be performed for the analysis of the proposed overlay zone. If a site-specific survey is requested, Michael Baker will submit a separate scope and fee and continue work under an approved contract augment.
3.9 AB 52 Tribal Consultation Assistance
Michael Baker will assist the City with meeting Native America n consultation requirements pursuant to Assembly Bill (AB) 52. In coordination with the City, we will prepare the draft consultation letters to tribes that have requested AB 52 notification. However, because consultation is required to be government-to- government, pursuant to State law, we assume the City will send the consultation letters, complete the AB 52 consultation, and provide the consultation log with supporting documentation (ex. letters, emails, phone conversation summaries) for inclusion in the environmental document. This scope does not include meetings or additional consultation.
PROPOSAL TO PROVIDE ENVIRONMENTAL SERVICES
CITY OF LANCASTER EAST SIDE PROJECT
April 2022 Page 12
4.0 ENVIRONMENTAL IMPACT REPORT
4.1 Notice of Preparation
This task assumes the City will be responsible for the preparation, distribution, and posting of the Notice of Preparation (NOP) for the project. A project description will be provided to the City to incorporate into the NOP; refer to Task 1.3.
4.2 Public Scoping Meeting
Michael Baker will conduct a virtual public scoping meeting during the NOP public review period that will be set up as a brief project overview presentation so that the community can gain an understanding of the proposed project and provide comments based upon accurate knowledge of the proposed project.
The scoping meeting will orient the community on the CEQA review process and will be presented in a manner which the community can gain a greater understanding of the proposal, intent of CEQA , and the key issue areas to be addressed in the EIR. Michael Baker will provide a PowerPoint presentation to supplement the discussion. Following the presentation, the meet ing will be devoted to public participation, questions, and comments. Written comments will be encouraged, and these comments, along with oral comments, will become a part of the administrative record.
4.3 Administrative Draft EIR
4.3.1 Executive Summary
The Executive Summary will include a project summary; an overview of project impacts, mitigation, and levels of significance after mitigation ; summary of project alternatives ; and any areas of controversy or issues to be resolved. The project impacts summary will be presented in a columnar format.
4.3.2 Introduction and Purpose
The Introduction will cite the provisions of CEQA, the CEQA Guidelines, and the City of Lancaster CEQA Implementation procedures for which the proposed project is subject. This section will identify the purpose of the study and statutory authority as well as document scoping procedures, summary of the EIR format, listing of responsible and trustee agencies, and documentation incorporated by reference.
4.3.3 Project Description
The Project Description will detail the project location, background and history of the project, discretionary actions, characteristics, goals and objectives, and permits and approvals that are required based on available information. This section will also include a summary of the local environmental setting for the project. Exhibits depicting the regional and site vicinity will be included in this section.
4.3.4 Thresholds of Significance
This section will provide a comprehensive description of thresholds of significance for each issue area of the environmental analysis. The significance threshold criteria will be described and will provide the basis
PROPOSAL TO PROVIDE ENVIRONMENTAL SERVICES
CITY OF LANCASTER EAST SIDE PROJECT
April 2022 Page 13
for conclusions of significance. Primary sources to be used i n identifying the criteria include the CEQA Guidelines, and local, State, federal, or other standards applicable to an impact category . The thresholds of significance for each topical area will be incorporated within each Environmental Analysis section discussed below.
4.3.5 Cumulative Projects/Analysis
In accordance with Section 15130 of the CEQA Guidelines, the Draft EIR will include a section providing a detailed listing of cumulative projects and actions under consideration for the analysis. The likelihood of occurrence and level of severity will be studied. The purpose of the section is to present a listing and description of projects, past, present, and anticipated in the reasonably foreseeable future, even if those projects are outside of Lanca ster’s jurisdiction. The potential for impact and levels of significance are contingent upon the radius or area of interaction with the project area. Michael Baker will consult with City staff and other applicable local jurisdictions to define the appropri ate study area for the cumulative analysis. The cumulative analysis for each topical area will be incorporated throughout the analyses.
4.3.6 Environmental Analysis
Michael Baker will evaluate the necessary information with respect to the existing conditions, the potential adverse effects of project implementation (both individual and cumulative), and measures to mitigate such effects.
Environmental issues raised during the scoping process (NOP responses, public scoping meeting, and any other relevant and valid informative sources) will also be evaluated. The analyses will be based upon available data, results from additional research, and an assessment of existing technical data.
The Environmental Analysis section of the Draft EIR will thoroughly discuss the existing conditions for each environmental issue area, identify short-term construction and long-term operational impacts associated with the project, and their levels of significance. The thresholds for significance shall be identified for every environmental issue. Feasible mitigation measures will be recommended to reduce the significance of impacts and identify areas of significant unavoidable impacts even after mitigation.
As stated above, the environmental analysis for each topical area will include both a project-level analysis of the one known proposed cannabis facility and a programmatic analysis of the overlay zone.
This section will include analysis for the following environmental issue areas and will be supplement ed with the respective technical studies proposed under Task 3.0:
• Aesthetics/Light and Glare;
• Agriculture and Forestry Resources;
• Air Quality;
• Biological Resources;
• Cultural Resources;
• Energy;
• Geology and Soils;
• Greenhouse Gas Emissions;
• Hazards and Hazardous Materials;
PROPOSAL TO PROVIDE ENVIRONMENTAL SERVICES
CITY OF LANCASTER EAST SIDE PROJECT
April 2022 Page 14
• Hydrology and Water Quality;
• Land Use and Planning;
• Mineral Resources;
• Noise;
• Population and Housing;
• Public Services and Recreation;
• Transportation;
• Tribal Cultural Resources; and
• Utilities and Service Systems.
4.3.7 Growth Inducement
Michael Baker will analyze the project’s potential growth -inducing impacts pursuant to CEQA Guidelines Section 15126(g). The analysis in this section will be based on data from the City of Lancaster, California Department of Finance, and U.S. Census. The section will discuss ways in which the proposed project could foster economic or population growth, or the construction of additional housing, either directly or indirectly, in the surrounding environment. The analysis will address growth-inducing impacts in terms of whether the project influences the rate, location, and the amount of growth. Growth-inducing impacts are assessed based on the project’s consistency with adopted/proposed plans that have addressed growth management from a local and regional standpoint. Potential growth-inducing impacts from the proposed development will be analyzed as they relate to population, housing, and employment factors.
4.3.8 Alternatives to the Proposed Action
Pursuant to CEQA Guidelines Section 15126.6, Michael Baker will work with City staff to identify reasonable and feasible alternatives to the proposed project . The range of alternatives is expected to include up to three (3) alternatives, including the No P roject Alternative and others that may have been considered through the project review/planning process.
The Alternatives analysis will compare environmental impacts of each alternative in each impact area to the project. For each alternative, Michael Bak er will provide a qualitative analysis based upon available data. One important element of the Alternatives section will be an impact matrix which will offer a comparison of the varying levels of impact of each alternative being analyzed. This matrix will be prepared in a format to allow decision-makers a reference that will be easily understood, while providing a calculated (where feasible), accurate comparison of each alternative.
The Alternatives section will conform to both amendments to Section 15126.6 of the CEQA Guidelines and to recent and applicable court cases. The analysis will focus on alternatives that avoid or minimize environmental effects as compared to the proposed project while achieving the project’s primary objectives. Therefore, the obj ectives contained in the project description must be crafted with care in consultation with the City. Michael Baker will discuss, as required by the CEQA Guidelines, the advantages and disadvantages of each alternative and the reasons for rejecting or reco mmending the project alternatives stated. This alternatives section will culminate with the identification of the Environmentally Superior Alternative in accordance with CEQA requirements.
PROPOSAL TO PROVIDE ENVIRONMENTAL SERVICES
CITY OF LANCASTER EAST SIDE PROJECT
April 2022 Page 15
4.3.9 Additional Sections
Michael Baker will provide additional sections in the Draft EIR to meet CEQA and City requirements including the following: Significant Irreversible Environmental Changes That Would Be Involved In the Proposed Action Should It Be Implemented, Effects Found Not To Be Si gnificant, Significant and Unavoidable Adverse Impacts, Organizations/Persons Consulted, and Bibliography.
The Effects Found Not To Be Significant section will provide a brief analysis of those environmental topical areas determined to have no impact or a less than significant impact (e.g., Mineral Resources and Wildfire) and are not specifically addressed in the environmental analysis sections referenced above.
4.4 Screencheck Draft EIR
Michael Baker will respond to one compiled set of City comments on the Administrative Draft EIR. If desired by the City, Michael Baker will provide the Screencheck Draft EIR with all revisions made in track changes to assist in document review.
4.5 Public Review Draft EIR
Michael Baker will respond to the review of the Screencheck Draft EIR, including one complete set of comments from the City. This task assumes that all substantive comments will be raised as part of the first Administrative Draft review. Michael Baker will prepare the Public Review Draft EIR for public review.
This task assumes the City will be responsible for the preparation, distribution, and posting of the Notice of Availability (NOA) for the EIR.
4.6 Final EIR
4.6.1 Response to Comments
Michael Baker will respond to written comments received on the Draft EIR during the 45-day public review period. Michael Baker will prepare thorough, reasoned, and sensitive responses to relevant environmental issues. The Draft Responses to Comments will be prepared fo r review by City staff .
Following review of the Draft Responses to Comments, Michael Baker will finalize this section for inclusion in the Administrative Final EIR.
It is noted that at this time the extent of public and agency comments that will result from the review process is unknown. Michael Baker has budgeted conservatively, given the potential scrutiny involved with the proposed project. Should the level of comments and response exceed our estimate, Michael Baker will submit additional funding requests to the City in order to complete the responses.
4.6.2 Mitigation Monitoring and Reporting Program
To comply with the Public Resources Code Section 21081.6 (AB 32180), Michael Baker will prepare a Mitigation Monitoring and Reporting Program (MMRP) to be defined through working with City staff to
PROPOSAL TO PROVIDE ENVIRONMENTAL SERVICES
CITY OF LANCASTER EAST SIDE PROJECT
April 2022 Page 16
identify appropriate monitoring steps/procedures and in order to provide a basis for monitoring such measures during and upon project implementation.
The Mitigation Monitoring and Reporting Checklist will serve as the foundation of the Mitigation Monitoring and Reporting Program for the proposed project. The Checklist indicates the mitigation measure number as outlined in the Draft EIR, a list of Mitigation Measures (in chronological order under the appropriate topic), the Monitoring Milestone (at what agency/department responsible for verifying implementation of the measure), Method of Verification (documentation, field checks, etc.), and a verification section for the initials of the verifying individual date of verification, and pertinent remarks.
4.6.3 Final EIR
The Final EIR will consist of the Responses to Comments, Errata (revised Draft EIR text, as necessary), and MMRP. The Draft EIR will be revised in accordance with responses to public comment s, if needed. To facilitate City review, Michael Baker will format the Errata section with double underlined text for any new or modified text, and strike out for any deleted text.
4.7 Findings and Statement of Overriding Considerations
Michael Baker will provide administrative assistance to facilitate the CEQA process including the preparation of the Findings of Facts and Statement of Overriding Considerations (if required) for City us e in the project review process. Michael Baker will prepare the Findings of Facts in accordance with the provisions of Section 15091 and 15093 of the State CEQA Guidelines and in a form specified by the City.
Michael Baker will submit the Draft Findings of Facts for City review and will respond to one compiled set of City comments.
4.8 Project Management and Meetings/Hearings
4.8.1 Project Management
Ms. Frances Yau, AICP will serve as Project Manager and will be responsible for implementation of all key project management tasks, including overall management and supervision of the project team and ongoing consultation with the City staff. Ms. Yau will undertake consultation and coordination of the project and review the EIR for compliance with CEQA requirements and guidelines and City CEQA procedures. Additionally, Mr. Alan Ashimine will serve as Project Director and will review documents prior to forma l submittal, providing an additional layer of technical review and quality assurance/quality control. As Project Director, Mr. Ashimine will also serve as secondary contact to the City and be a resource if any issues arise. It is Michael Baker’s goal to se rve as an extension of City staff throughout duration of the project.
4.8.2 Meetings/Hearings
Ms. Yau/Mr. Ashimine and members of the Michael Baker Team, as necessary, will participate in conference calls and/or meetings with City staff. For budgeting purposes, the following meetings are included and assumed to be virtual:
• One (1) Virtual Kick-Off Meeting (refer to Task 1.1);
PROPOSAL TO PROVIDE ENVIRONMENTAL SERVICES
CITY OF LANCASTER EAST SIDE PROJECT
April 2022 Page 17
• One (1) Virtual Public Scoping Meeting (refer to Task 4.2); and • Bi-weekly Teleconference Calls with City staff, as necessary; and • Two (2) In-Person Public Hearings.
4.9 EIR Deliverables
The listed deliverables can be adjusted, as directed by the City. Michael Baker can also provide a cost, per document, and can provide billing on a time and materials basis.
Kick-Off and Project Description
• One (1) electronic copy of the Kick-Off Meeting Agenda • One (1) electronic copy of the Kick-Off Meeting Minutes • One (1) electronic copy of the Draft and Final Project Description
Land Use Assistance
• One (1) electronic copy of the Summary of Documents Memorandum • One (1) electronic copy of the Administrative Draft, Screencheck Draft, Public Review, and Final Overlay Plan
Technical Studies (all included as Technical Appendices to the EIR) • Air Quality, Greenhouse Gas, Noise, Energy Data EIR Appendices • One (1) electronic copy (MS Word and PDF file) of the Transportation Impact Analysis Report • One (1) electronic copy (MS Word and PDF file) of the Biological Resources Assessment • One (1) electronic copy (MS Word and PDF file) of the Focused Burrowing Owl Survey Report • One (1) electronic copy (MS Word and PDF file) of the Biological Due Diligence Report • One (1) electronic copy (MS Word and PDF file) of the Jurisdictional Delineation • One (1) electronic copy (MS Word and PDF file) of the Cultural/Paleontological Resources Assessment
• One (1) electronic copy (MS Word and PDF file) of the Draft AB 52 Tribal Consultation Letters
Draft EIR
• One (1) electronic copy (MS Word and PDF file) of the Administrative Draft EIR and Technical Appendices
• One (1) electronic copy (MS Word and PDF file) of the Screencheck Draft EIR and Technical Appendices (all revisions made in track changes format) • One (1) electronic copy (MS Word and PDF file) of the Public Review Draft EIR and Te chnical Appendices
• Five (5) hardcopies of the Public Review Draft EIR (with Technical Appendices on CD provided on inside cover)
Final EIR
• One (1) electronic copy (MS Word and PDF file) of the Administrative Final EIR (including the Response to Comments, Errata, and MMRP)
• One (1) electronic copy (MS Word and PDF file) of the Final EIR • Five (5) hardcopies of the Final EIR
PROPOSAL TO PROVIDE ENVIRONMENTAL SERVICES
CITY OF LANCASTER EAST SIDE PROJECT
April 2022 Page 18
COST PROPOSAL
Note: All work will be performed on a Fixed Fee basis. The total budget includes miscellaneous costs for travel/mileage, reproduction, reimbursables, telephone, postal, delivery, reference materials and incidental expenses. The Michael Baker project manager reserves the right to make adjustments to staff allocations as necessary within the overall budget.
PI PM SP SA ES PL GA Total ODC/ Total
$290 $260 $190 $165 $155 $135 $115 Hours Sub Fees
1.0 KICK-OFF A ND PROJECT DESCRIPTION 0 $0
1.1 Kick-Off Meeting 1 1 4 4 10 $1,930
1.2 Research and Investigation 6 6 12 $1,740
1.3 Draft Project Description 4 6 16 4 30 $4,710
Subtotal Task 1.0 5 1 4 0 16 22 4 52 $0 $8,380
2.0 LAND USE ASSISTANCE 0 $0
2.1 Data Collection, Mapping, and Reviewing Relevant Docs 40 40 $7,600
2.2 Developing Land Use Regulations and Overlay Framework 90 90 $17,100
2.3 Administrative/Screencheck Overlay Plan 136 136 $25,840
2.4 Public Review Draft/Final Overlay Plan 46 46 $8,740
2.5 Land Use Assistance Project Management 50 50 $9,500 Subtotal Task 2.0 0 0 362 0 0 0 0 362 $0 $68,780
3.0 TECHNICA L STUDIES 0 $0
3.1 Air Quality Analysis 86 86 $11,610
3.2 Greenhouse Gas Analysis 64 64 $8,640
3.3 Noise Analysis 118 118 $15,930
3.4 Energy Analysis 40 40 $5,400
3.5 Transportation Impact Analysis Report 66 140 206 $11,000 $54,760
3.6 Biological Resources Assessments 96 156 252 $2,790 $39,690
3.7 Jurisdictional Delineations 42 122 164 $700 $24,100
3.8 Cultural/Paleo Resources Assessment 234 234 $5,300 $49,760
3.9 AB 52 Tribal Consultation Assistance 8 8 $1,520
Subtotal Task 3.0 0 66 382 138 0 586 0 1172 $19,790 $211,410
4.0 ENVIRONMENTA L IMPA CT REPORT 0 $0
4.1 Notice of Preparation 4 4 $620
4.2 Public Scoping Meeting 1 8 1 10 $1,665
4.3 Administrative Draft EIR
4.3.1 Executive Summary 1 2 6 9 $1,410
4.3.2 Introduction and Purpose 2 8 10 $1,390
4.3.3 Project Description 1 4 8 2 15 $2,220
4.3.4 Thresholds of Significance 2 2 $270
4.3.5 Cumulative Projects/Analysis 1 1 8 2 12 $1,755
4.3.6 Environmental Analysis
Aesthetics/Light and Glare 1 6 24 2 33 $4,690
Agriculture and Forestry Resources 2 6 24 2 34 $4,980
Air Quality 1 4 5 $910
Biological Resources 2 6 24 2 34 $4,980
Cultural Resources 1 6 24 31 $4,460
Energy 1 4 5 $910
Geology and Soils 1 4 24 29 $4,150
Greenhouse Gas Emissions 1 4 5 $910
Hazards and Hazardous Materials 1 6 24 31 $4,460
Hydrology and Water Quality 1 4 24 29 $4,150
Land Use and Planning 2 6 24 32 $4,750
Noise 1 4 1 6 $1,025
Population and Housing 1 4 20 25 $3,610
Public Services and Recreation 1 6 24 31 $4,460
Transportation 1 6 24 31 $4,460
Tribal Cultural Resources 1 4 20 25 $3,610
Utilities and Service Systems 1 6 24 31 $4,460
4.3.7 Growth Inducement 1 4 16 21 $3,070
4.3.8 Alternatives to the Proposed Action 4 4 24 32 $5,020
4.3.9 Additional Sections 2 8 10 $1,390
4.4 Screencheck Draft EIR 8 16 16 4 44 $7,420
4.5 Public Review Draft EIR 4 8 8 2 22 $3,710
4.6 Final EIR 4 16 24 44 $6,880
4.7 Findings and Statement of Overriding Considerations 4 8 24 36 $5,640
4.8 Project Management and Meetings/Hearings
4.8.1 Project Management 12 36 48 $9,060
4.8.2 Meetings/Hearings 24 30 24 78 $16,380
4.9 EIR Deliverables 0 $4,500 $4,500
Subtotal Task 4.0 85 0 30 0 225 457 17 814 $4,500 $133,375 Total Hours 90 67 778 138 241 1065 21 2400
Percent of Total Hours 4% 3% 32% 6% 10% 44% 1% 100.0%
Total Fee $24,290 $421,945
PI=Principal; PM=Program Manager; SP=Senior Planner; SA=Survey Analyst; ES=Environmental Specialist; PL=Planner; GA=Graphic Artist; ODC/Sub=Other Direct Costs/Subconsultant T ASK
STAFF REPORT
City of Lancaster
CC 13
5/3/2022
JC
Date: May 3, 2022
To: Mayor Parris and City Council Members
From: Jeff Hogan, Senior Director - Development Services Mike Harne, Senior Manager - Transportation
Subject: 2023 Petersen Industries TL-3 Lightning Loader Acquisition Recommendations:
1. Approve the purchase of one (1) 2023 Petersen Industries TL-3 Lightning Loader, utilizing Sourcewell Cooperative Purchasing Contract awarded to Petersen Industries via authorized dealer Nixon-Egli Equipment Co.
2. Authorize the City Manager, or his designee, to sign all documents and approve up to 15% price fluctuation due to vehicle availability at time of order.
Fiscal Impact:
$287,168.00 (including 15% contingency); sufficient funds are available in the current fiscal year 2021-2022 budget; Account No. 203-4753-762.
Background:
Nixon-Egli Equipment Co. is an authorized dealer of Petersen Industries, which was awarded contract number 040621-PII by Sourcewell Cooperative Purchasing (formerly National Joint Powers Alliance). Bid documents meet all State and City requirements for competitive procurement. The City could not make this purchase locally, as no Lancaster business sells trucks of this size.
U.S. vehicle and equipment inventory are at their lowest levels since the global financial crisis of the late 2000s. The shortage of microchips and the constantly changing price of materials means the final sales price of a vehicle could adjust daily. Therefore, we respectfully request a 15% contingency authority to allow for flexibility when processing the final order.
This purchase will replace an existing 2008 Sterling Inc. Model: LT9500 Lightning Loader (EQ 3782) for illegal dumping removal and general City cleanup. This existing lightning loader has 8 7
9 reached the end of its useful operating life. The existing lightning loader will be auctioned via an approved City program, and the revenues from this auction will fund additional fleet replacements.
HA:gb
STAFF REPORT
City of Lancaster
CC 14
5/3/2022
JC
Date: May 3, 2022
To: Mayor Parris and City Council Members
From: Jeff Hogan, Senior Director - Development Services Chenin Dow, Senior Manager - Real Estate & Economic Development Patti Garibay, Manager - Real Estate & Economic Development Subject: Approval of a Service Contract and Software Maintenance Agreement and Technical Agreement with Serious Controls LLC for the Development, and Ongoing Maintenance of a Demand Energy Response Management System Recommendations:
1. Approve a Service Contract with Serious Controls LLC for the development and deployment of a Demand Energy Response Management System.
2. Approve a Software Maintenance and Technical Agreement with Serious Controls LLC for maintenance of the Demand Energy Response Management System.
3. Authorize the City Manager to execute all documents and make any non-substantive changes necessary to complete the transaction.
Fiscal Impact:
$420,000.00. Sufficient funds are available in account 101-4791-308.
Background:
The City received grant funding through the California Energy Commission’s Advanced Energy Community Grant - Phase 2 to develop microgrids in Lancaster, as well as a virtual power plant (VPP) in partnership with the Zero Net Energy Alliance (ZNEA). Development is underway with Housing and Neighborhood Revitalization Project 1 (HNR-1) being the first microgrid to be completed by 2024, and with 114 demand energy response (DER) assets to be deployed at the site.
In order for the City to maximize the value of DER assets, it is crucial to have a Demand Energy Response Management System (DERMS) that can manage and control all the assets, 8 8
1 and that is open source so a variety of City assets can connect to the system without additional user fees and with the maximum amount of transparency.
Through extensive research with the ZNEA grant team, the City has identified Serious Controls, a company that will provide the best value and allow the City to meet its goal of having an open DERMS that multiple devices can connect to, as well as the transparency needed to ensure that the value attained from devices is accurate.
The DERMS, which will be built by Serious Controls and owned by the City, will act as the software backbone of Lancaster’s Virtual Power Plant (VPP) Program. Specifically, the system will be used to directly integrate DER resources being deployed in the second phase of the AEC grant, as well as other devices deployed throughout the service territory, with Lancaster’s procurement and scheduling practices.
Lancaster will receive a perpetual license to use the DERMS and integrate its operations with other vendors in the LCE VPP ecosystem. This has significant scaling implications for Lancaster, including the opportunity to share the package with other CCAs throughout California.
Lancaster will charge a one-time licensing fee to every CCA that signs up to use the DERMS.
The amount of the licensing fee will be based on the number of account holders in the CCA territory. The City will receive fifty percent (50%) of each licensing fee paid for the DERMS until the City is made whole in its initial investment. Any upgrades made to the system by other CCAs will be available to Lancaster in perpetuity and at no additional costs to the City.
PG/sk
Attachments:
Serious Controls Service Contract
Exhibit A – Gannt Chart
Serious Controls Software Maintenance and Technical Support Agreement 1 CONTRACT FOR SERVICES
This Contract for Services (“Contract”) is made effective as of May 3, 2022 by and between Lancaster Choice Energy of 44933 Fern Avenue, Lancaster, California 93534 (the "Recipient" or “LCE”)), and Serious Controls LLC of 318 Creekstone Ridge, Woodstock, Georgia 30188 (the "Provider" or “Serious Controls”).
1. DESCRIPTION OF SERVICES. Beginning on May 3, 2022 Provider will provide to Recipient the following services (collectively, the "Services"):
Develop a distributed energy resource management systems (DERMS) based on current open- source code, including but not limited to openLEADr, Linux and OpenEEMeter. The DERMS platform will be used as an OpenADR VTN to control third-party VENs. The Recipient will utilize the DERMS platform to shed or shift third party energy usage during key-times, based on grid or energy market conditions. The DERMS platform will be used by other California CCAs for a similar purpose based on section 21 of this Contract. Provider shall adhere to the Project milestones and timeline set forth in the Development Gantt Chart attached hereto as “Exhibit A”.
2. GLOSSARY OF TERMS
a) Virtual End Node (VEN) describes an energy consuming resource (i.e. battery storage system) installed at a third-party location or grid interconnection point. b) Distributed Energy Resource Management System (DERMS) describes the software application licensed to Lancaster Choice Energy for control and administration of VENs. c) OpenADR is an open software standard that represents the means of communication between a DERMS and a VEN.
d) OpenLEADR is an open-source software codebase, embracing common programming languages, for administering OpenADR communication between DERMS and VENs. e) Measurement & Verification (M&V) is the process by which a DERMS quantifies the financial and operational benefit of a VEN’s changes in energy consumption. f) OpenEEMeter is an open-source software codebase that facilitates measurement and verification calculations within a DERMS to determine third party participation in energy programs. g) Linux is an open source server operating system used as the foundation of the DERMS codebase.
Linux operates on servers, much like Windows does on a PC, providing the base operating system for the computer.
h) UI (User Interface) describes the screens and human-interactable elements of the DERMS. i) Application Programming Interface (API) describes a set of standardized syntax and instructions for machine-to-machine communication with the DERMS.
j) OpenAPI is an industry standard and best practice for structuring an API. k) Amazon Web Services (AWS) is a cloud server hosting provider. l) Database (DB) is defined as the server(s) responsible for storing and maintaining the data used by the DERMS application.
m) JIRA is a software product used by Serious Controls for task tracking and product management related to the implementation of the DERMS.
2 n) Key Performance Indicators (KPI’s) refer to the set of success metrics defined by Serious Controls and Lancaster Choice Energy to track and measure compliance with the contract p) Sandbox refers to the temporary deployment of the DERMS for the purpose of testing, development, and verification of functionality by Lancaster Choice Energy prior to software code being deployed to the DERMS. This is a pre-production environment of the DERMS. q) Community Choice Aggregator (CCA) refers to organizations which would be eligible to set up a service contract with Serious Controls for a DERMs platform,
3. PAYMENT. Payment shall be made to Provider according to the following schedule:
Event and Payment Amount
1. Project Launch.
$120,000.00
2. Installation of openLEADr with VEN connection, Gantt chart task number 1, 2 and 3. $100,000.00
3. Sandbox release of the OpenAPI, Gantt chart task numbers 4 and 5. $100,000.00
4. Production Release, Gantt chart task numbers 6, 7, 8 and 9. $100,000.00
If any invoice is not paid when due, interest will be added to and payable on all overdue amounts at 8 percent per year, or the maximum percentage allowed under applicable California laws, whichever is less.
In addition to any other right or remedy provided by law, if Lancaster Choice Energy fails to pay for the Services when due, Serious Controls LLC has the option to treat such failure to pay as a material breach of this Contract and may cancel this Contract and/or seek legal remedies.
4. TERM. This Contract will terminate automatically upon completion by Provider of the Services required by this Contract.
5. WORK PRODUCT OWNERSHIP. Any copyrightable works, ideas, discoveries, inventions, patents, products, or other information (collectively the "Work Product") developed in whole or in part by Provider in connection with the Services will be the exclusive property of Provider. Upon request, Recipient will execute all documents necessary to confirm or perfect the exclusive ownership of Provider to the Work Product.
Recipient will be granted a license in the form of “Exhibit B” hereto for perpetuity to the DERMs platform developed hereunder.
6. CONFIDENTIALITY. Provider, and its employees, agents, or representatives will not at any time or in any manner, either directly or indirectly, use for the personal benefit of Provider, or 3 divulge, disclose, or communicate in any manner, any information that is proprietary to Recipient.
Provider and its employees, agents, and representatives will protect such information and treat it as strictly confidential. This provision will continue to be effective after the termination of this Contract and may only be waived in a writing signed by Recipient. Any written waiver by Recipient of these confidentiality obligations which allows Provider to disclose Recipient's confidential information to a third party will be limited to a single occurrence tied to the specific information disclosed to the specific third party, and the confidentiality clause will continue to be in effect for all other confidential information and occurrences.
7. DEFAULT. The occurrence of any of the following shall constitute a material default under this Contract:
a) The failure to make a required payment when due.
b) The insolvency or bankruptcy of either party.
c) The subjection of any of either party's property to any levy, seizure, general assignment for the benefit of creditors, application, or sale for or by any creditor or government agency. d) The failure to make available or deliver the Services in the time and manner provided for in this Contract.
8. REMEDIES. In addition to any and all other rights a party may have available according to law, if a party defaults by failing to substantially perform any provision, term or condition of this Contract (including without limitation the failure to make a monetary payment when due), the other party may terminate the Contract by providing written notice to the defaulting party. This notice shall describe with sufficient detail the nature of the default. The party receiving such notice shall have 30 days from the effective date of such notice to cure the default(s). Unless waived in writing by a party providing notice, the failure to cure the default(s) within such time period shall result in the automatic termination of this Contract.
9. FORCE MAJEURE. If performance of this Contract or any obligation under this Contract is prevented, restricted, or interfered with by causes beyond either party's reasonable control ("Force Majeure"), and if the party unable to carry out its obligations gives the other party prompt written notice of such event, then the obligations of the party invoking this provision shall be suspended to the extent necessary by such event. The term Force Majeure shall include, without limitation, acts of God, plague, epidemic, pandemic, outbreaks of infectious disease or any other public health crisis, including quarantine or other employee restrictions, fire, explosion, vandalism, storm or other similar occurrence, orders or acts of military or civil authority, or by national emergencies, insurrections, riots, or wars, or strikes, lockouts, work stoppages or other labor disputes, or supplier failures. The excused party shall use reasonable efforts under the circumstances to avoid or remove such causes of non-performance and shall proceed to perform with reasonable dispatch whenever such causes are removed or ceased. An act or omission shall be deemed within the reasonable control of a party if committed, omitted, or caused by such party, or its employees, officers, agents, or affiliates.
4 10. DISPUTE RESOLUTION. The parties will attempt to resolve any dispute arising out of or relating to this Contract through friendly negotiations amongst the parties. If the matter is not resolved by negotiation within 30 days, the parties may pursue all available legal remedies.
11. ENTIRE AGREEMENT. This Contract contains the entire agreement of the parties, and there are no other promises or conditions in any other agreement whether oral or written concerning the subject matter of this Contract. This Contract supersedes any prior written or oral agreements between the parties.
12. SEVERABILITY. If any provision of this Contract is held to be invalid or unenforceable for any reason, the remaining provisions will continue to be valid and enforceable. If a court finds that any provision of this Contract is invalid or unenforceable, but that by limiting such provision it would become valid and enforceable, then such provision will be deemed to be written, construed, and enforced as so limited.
13. AMENDMENT. This Contract may be modified or amended in writing by mutual agreement between the parties, if the writing is signed by the party obligated under the amendment.
14. GOVERNING LAW. This Contract shall be construed in accordance with the laws of the State of California.
15. NOTICE. Any notice or communication required or permitted under this Contract shall be sufficiently given if delivered in person or by certified mail, return receipt requested, to the address set forth in the opening paragraph or to such other address as one party may have furnished to the other in writing.
16. WAIVER OF CONTRACTUAL RIGHT. The failure of either party to enforce any provision of this Contract shall not be construed as a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Contract.
17. CONSTRUCTION AND INTERPRETATION. The rule requiring construction or interpretation against the drafter is waived. The Contract shall be deemed as if it were drafted by both parties in a mutual effort.
18. ASSIGNMENT. Neither party may assign or transfer this Contract without the prior written consent of the non-assigning party, which approval shall not be unreasonably withheld.
19. CONTINUED DEVELOPMENT. The DERMS platform will be supplied to other California CCAs through a licensing agreement which includes a licensing fee. CCAs who adopt the DERMS platform will have the option to build new features to the platform through a phase development agreement with Serious Controls. Recipient will be eligible for all upgrades at no cost to the Provider in perpetuity.
5 20. LICENSING FEE. A one-time licensing fee will be charged to every CCA that signs up to use the DERMs platform developed hereunder. The amount of the licensing fee will be based on the number of account holders in the CCA territory. Recipient and Provider will each be entitled to and paid fifty percent (50%) of each licensing fee paid for the DERMs platform developed hereunder until the City is made whole in its initial investment.
Up to 50,000 account holders – $20,000
50,001 – 200,000 account holders - $50,000
200,001 – 500,000 account holders - $100,000
500,001 and greater - $200,000
IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed by their duly authorized representatives as of the date first above written.
Service Recipient:
Lancaster Choice Energy
By: ___________________________________ Date: __________________ Jason Caudle
City Manager
Service Provider:
Serious Controls LLC
By: ___________________________________ Date: __________________ Mark Lane
Chief Executive Officer
6 EXHIBIT A: DEVELOPMENT GANTT CHART
7 EXHIBIT B: DERMS SOFTWARE LICENSES AGREMENT
This Agreement is made between Lancaster Choice Energy (the "Licensee") located at 44933 Fern Avenue, Lancaster, California 93534 and SERIOUS CONTROLS LLC (the "Licensor") with a principal place of business at 318 Creekstone Ridge, Woodstock, Georgia 30188.
1. DEFINITIONS.
(a) "Software" means the computer programs and documentation listed and described in the Description of Services.
(b) "Install" means placing the Software on a computer's hard disk, CD-ROM or other secondary storage device.
(c) "Use" means (i) executing or loading the Software into a computer, server, or cloud server, and (ii) copying the Software for archival or emergency restart purposes.
2. GRANT OF RIGHTS. Licensor hereby grants to Licensee a perpetual nonexclusive license to install and use the Software on one single user computer, server, or cloud server in its possession. Licensee does not limit the number of users on the installed instance of Software.
3. LICENSE TERM. This License is effective when executed by both parties and the license granted to the Software remains in force until Licensor terminates this License because of Licensee's failure to comply with any of its terms and conditions.
4. LICENSE FEE. Licensee agrees to pay Licensor the following license fees: Paid in full on completion of “Service Agreement” dated x
5. TERMINATION. Licensor shall have the right to immediately terminate this License if Licensee fails to perform any obligation required of Licensee under this License or if Licensee becomes bankrupt or insolvent.
6. RETURN OR DESTRUCTION OF SOFTWARE UPON TERMINATION. Upon termination of this License, Licensee shall return to Licensor or destroy the original and all copies of the Software including partial copies and modifications. Licensor shall have a reasonable opportunity to conduct an inspection of Licensee's place of business to assure compliance with this provision.
7. TITLE TO SOFTWARE. Licensor retains title to and ownership of the Software and all enhancements, modifications and updates of the Software.
8. OPEN SOURCE SOFTWARE. Licensee acknowledges that certain portions of the Software may be delivered with notices and open source licenses from communities and third parties that govern the use of those portions of the Software. This Agreement will not alter any of the rights and obligations under these open source licenses, except that the disclaimer of warranties and limitation of liability set forth in this Agreement shall apply to all portions of the Software.
8 9. MODIFICATIONS AND ENHANCEMENTS. Licensee will make no efforts to reverse engineer the Software, or make any modifications or enhancements without Licensor's express written consent.
10. WARRANTY LIMITATIONS. THE SOFTWARE IS PROVIDED "AS IS." LICENSOR DISCLAIMS ALL
WARRANTIES, INCLUDING BUT NOT LIMITED TO, ALL EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.
11. REMEDY LIMITATIONS. Licensor's entire liability and Licensor's sole and exclusive remedy for breach of the foregoing warranty shall be to repair the defects.
12. DAMAGE LIMITATIONS. NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR INDIRECT, SPECIAL,
CONSEQUENTIAL OR INCIDENTAL DAMAGES, INCLUDING LOSS OF PROFITS, AND LICENSOR'S LIABILITY TO
LICENSEE FOR ANY OTHER DAMAGES RELATING TO OR ARISING OUT OF THIS AGREEMENT WHETHER IN
CONTRACT, TORT, OR OTHERWISE WILL BE LIMITED TO THE AMOUNT RECEIVED BY LICENSOR FROM LICENSEE AS COMPENSATION FOR THE SOFTWARE DURING THE 1 MONTH PERIOD IMMEDIATELY PRIOR TO THE TIME SUCH CLAIM AROSE.
13. CONFIDENTIALITY. To the extent permitted by law, Licensee will treat the Software as a trade secret and proprietary know-how belonging to Licensor that is being made available to Licensee in confidence.
To the extent permitted by law, Licensee agrees to treat the Software with at least the same care as it treats its own confidential or proprietary information.
14. GENERAL PROVISIONS.
(a) Complete Agreement: This License Agreement together with (i) all schedules referred to in this Agreement, all of which are incorporated herein by reference, (ii) the Software Maintenance and Technical Support Agreement, and (iii) the Contract for Services, constitute the sole and entire Agreements between the parties.
(b) Modifications: Modifications and amendments to this Agreement, including any exhibit, schedule, or attachment hereto, shall be enforceable only if in writing and signed by authorized representatives of both parties.
(c) Applicable law: This License will be governed by the laws of the State of California.
(d) Notices: All notices and other communications given in connection with this License shall be in writing and shall be deemed given as follows:
- When delivered personally to the recipient's address as appearing in the introductory paragraph to this License;
- Three days after being deposited in the United States mail, postage prepaid to the recipient's address as appearing in the introductory paragraph to this License; or
- When sent by fax or telex to the last fax or telex number of the recipient known to the party giving notice. Notice is effective upon receipt provided that a duplicate copy of the notice is promptly given by first-class or certified mail or the recipient delivers a written confirmation of receipt.
9 Any party may change its address appearing in the introductory paragraph to this License by given notice of the change in accordance with this paragraph.
(e) No Agency: Nothing contained herein will be construed as creating any agency, partnership, joint venture or other form of joint enterprise between the parties.
15. ASSIGNMENT. The rights conferred by this License shall not be assignable by the Licensee without Licensor's prior written consent. Licensor may impose a reasonable license fee on any such assignment.
16. SIGNATURES. This License shall be signed by Mark Lane, CEO, on behalf of SERIOUS CONTROLS LLC, and by Jason Caudle, on behalf of Lancaster Choice Energy.
The License shall be effective once both parties have signed.
LICENSOR
SERIOUS CONTROLS LLC
By: ___________________________________ Date: __________________ Mark Lane
Chief Executive Officer
LICENSEE
Lancaster Choice Energy
By: ___________________________________ Date: __________________ Jason Caudle
City Manager
SERIOUS CONTROLS DERMS
COMPANY NAME SERIOUS CONTROLS
DATE
M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W 1 Design / Engineering Specification
1.1 Workshop Project Milestones 2 100%
1.2 Layout system architecture 2 0%
1.3 Select Open-Source Tools 2 0%
1.4 Select Database (DB) 4 100%
1.5 Configure API Points 17 0%
1.6 Build UI Framework 15 0%
1.7 Define User Roles and Permissions 15 0%
1.8 Outline M&V Tools 15 0%
1.9 Approval 3 0%
2 Build Cloud Environment
2.1 Build development cloud AWS 8 0%
2.2 Build QC / Pre Production Release
Cloud AWS 8 0%
2.3 Build DB Cloud 8 0%
2.4 Configure Project Management Tool
JIRA 5 0%
2.5 QC Approval 2 0%
3 Verify OpenLEADR (OL)
3.1 Build OpenLEADR Environment 5 0%
3.2 Install & Connect OpenADR Test
Harness verify 2.0b compatibility 5 0%
3.3 Install & Connect Generic VEN 10 0%
3.4 Test OpenLEADR SaaS support and
support of multiple VENs 10 0%
3.5 Verify Registration ID Usage by OL 10 0%
3.6 Verify Report Functions 10 0%
3.7 Determine maximum number of
simultaneous connections 5 0%
3.8 Verify multiple VEN operation 5 0%
3.9 QC Testing and Approval 5 0%
4 OpenLEADR Connection to Database (DB)
4.1 Workshop DB Selection and Revise
Engineering Spec. 5 0%
4.2 Setup Database Environment 5 0%
4.3 Design DB Tables 5 0%
4.4 Build OL to DB Connections 10 0%
4.5 Verify maximum number of DB
connections though OL 3 0%
4.6 Install VEN and verify writes to DB 10 0%
4.7 QC Testing and Approval 4 0%
5 OpenAPI Integration
5.1 Workshop required API points with
Scheduling Coordinator 10 0%
5.2 Build OpenAPI Specification 10 0%
5.3 Configure API 15 0%
5.4 Configure API Sandbox for UAT 5 0%
5.5 QC Testing and Approval 2 0%
5 UI Development
5.1 Revise UI Specification 10 0%
5.1.1 Build UI Strawman 10 0%
5.1.2 Verify DB points to UI, update DB
tables 5 0%
5.1.3 Review M&V requirements 5 0%
5.2 Workshop Dashboard Views and
Tools set KPIs 10 0%
5.3 Redefine User Roles and Permissions 10 0%
5.4 Define adding new VENs to system 5 0%
5.5 Finalize UI Specification and define
phase 1 & 2 requirements 2 0%
5.6.1 UI Build Phase 1 15 0%
5.6.2 QC Testing and Approval 2 0%
5.6.3 UI Build Phase 2 15 0%
5.6.4 QC Testing and Approval 2 0%
5.7 Add M&V UI Post M&V Development 10 0%
5.8 QC Testing and Approval 3 0%
6 M&V Development
6.1 Revise M&V Specification 10 0%
6.1.1 Build Isolated Test Environment AWS 10 0%
6.1.2 Install OpenEEMeter,
OpenEEWeather and GRIDmeter 10 0%
6.1.3 Update Package Dependencies 10 0%
6.2 Revise M&V Specification based on
package dependencies 4 0%
6.3 Verify Operational Understanding of
Scripts 4 0%
6.4 Develop Use Cases for Testing 5 0%
6.5 Develop IO Interface for Test
Environment 10 0%
6.6 Build Verification Tool (Excel?) 5 0%
6.7 Run Use Cases and Verify Output 5 0%
6.7.1 QC Testing and Approval 2 0%
6.7.2 Revise M&V. Specification 2 0%
6.8 Move to Development Cloud 5 0%
6.8.1 Run Use Cases and Verify Output 5 0%
6.8.2 Connect VENs with Meter Data 5 0%
6.8.3 QC Testing and Approval 2 0%
7 Package Portability
7.1 Move From AWS Development Cloud
to Local Cloud Environment 5 0%
7.2 QC Testing and Approval 2 0%
7.3 Move to Production Cloud 5 0%
7.4 QC Testing and Approval 2 0%
8 OpenADR 2.0b Testing
8.1 Test Harness Testing of Production
Cloud 5 0%
8.2 Third-Party Verification 15 0%
8.3 Finalize Production Scripts 3 0%
8.4 QC Testing and Approval 3 0%
9 Release
9.1 Customer Beta Release 10 0%
9.2 Customer Production Release 5 0%
WEEK 19 WEEK 20 WEEK 21 WEEK WEEK 14 WEEK 15 WEEK 16 WEEK 17 WEEK 18WEEK 9 WEEK 10 WEEK 11 WEEK 12 WEEK 13WEEK 4 WEEK 5 WEEK 6 WEEK 7 WEEK 8
LANCASTER DERMS DEVELOPMENT SCHEDULE
PROJECT MANAGER: MARK LANE 11/15/21
TASK NUMBER TASK TITLE DURATION
DAYS
PCT OF TASK
COMPLETE WEEK 3WEEK 1 WEEK 2
SERIOUS CONTROLS DER
1 Design / Engineering Specification
1.1 Workshop Project Milestones 2 100%
1.2 Layout system architecture 2 0%
1.3 Select Open-Source Tools 2 0%
1.4 Select Database (DB) 4 100%
1.5 Configure API Points 17 0%
1.6 Build UI Framework 15 0%
1.7 Define User Roles and Permissions 15 0%
1.8 Outline M&V Tools 15 0%
1.9 Approval 3 0%
2 Build Cloud Environment
2.1 Build development cloud AWS 8 0%
2.2 Build QC / Pre Production Release
Cloud AWS 8 0%
2.3 Build DB Cloud 8 0%
2.4 Configure Project Management Tool
JIRA 5 0%
2.5 QC Approval 2 0%
3 Verify OpenLEADR (OL)
3.1 Build OpenLEADR Environment 5 0%
3.2 Install & Connect OpenADR Test
Harness verify 2.0b compatibility 5 0%
3.3 Install & Connect Generic VEN 10 0%
3.4 Test OpenLEADR SaaS support and
support of multiple VENs 10 0%
3.5 Verify Registration ID Usage by OL 10 0%
3.6 Verify Report Functions 10 0%
3.7 Determine maximum number of
simultaneous connections 5 0%
3.8 Verify multiple VEN operation 5 0%
3.9 QC Testing and Approval 5 0%
4 OpenLEADR Connection to Database (DB)
4.1 Workshop DB Selection and Revise
Engineering Spec. 5 0%
4.2 Setup Database Environment 5 0%
4.3 Design DB Tables 5 0%
4.4 Build OL to DB Connections 10 0%
4.5 Verify maximum number of DB
connections though OL 3 0%
4.6 Install VEN and verify writes to DB 10 0%
4.7 QC Testing and Approval 4 0%
5 OpenAPI Integration
5.1 Workshop required API points with
Scheduling Coordinator 10 0%
5.2 Build OpenAPI Specification 10 0%
5.3 Configure API 15 0%
5.4 Configure API Sandbox for UAT 5 0%
5.5 QC Testing and Approval 2 0%
5 UI Development
5.1 Revise UI Specification 10 0%
5.1.1 Build UI Strawman 10 0%
5.1.2 Verify DB points to UI, update DB
tables 5 0%
5.1.3 Review M&V requirements 5 0%
5.2 Workshop Dashboard Views and
Tools set KPIs 10 0%
5.3 Redefine User Roles and Permissions 10 0%
5.4 Define adding new VENs to system 5 0%
5.5 Finalize UI Specification and define
phase 1 & 2 requirements 2 0%
5.6.1 UI Build Phase 1 15 0%
5.6.2 QC Testing and Approval 2 0%
5.6.3 UI Build Phase 2 15 0%
5.6.4 QC Testing and Approval 2 0%
5.7 Add M&V UI Post M&V Development 10 0%
5.8 QC Testing and Approval 3 0%
6 M&V Development
6.1 Revise M&V Specification 10 0%
6.1.1 Build Isolated Test Environment AWS 10 0%
6.1.2 Install OpenEEMeter,
OpenEEWeather and GRIDmeter 10 0%
6.1.3 Update Package Dependencies 10 0%
6.2 Revise M&V Specification based on
package dependencies 4 0%
6.3 Verify Operational Understanding of
Scripts 4 0%
6.4 Develop Use Cases for Testing 5 0%
6.5 Develop IO Interface for Test
Environment 10 0%
6.6 Build Verification Tool (Excel?) 5 0%
6.7 Run Use Cases and Verify Output 5 0%
6.7.1 QC Testing and Approval 2 0%
6.7.2 Revise M&V. Specification 2 0%
6.8 Move to Development Cloud 5 0%
6.8.1 Run Use Cases and Verify Output 5 0%
6.8.2 Connect VENs with Meter Data 5 0%
6.8.3 QC Testing and Approval 2 0%
7 Package Portability
7.1 Move From AWS Development Cloud
to Local Cloud Environment 5 0%
7.2 QC Testing and Approval 2 0%
7.3 Move to Production Cloud 5 0%
7.4 QC Testing and Approval 2 0%
8 OpenADR 2.0b Testing
8.1 Test Harness Testing of Production
Cloud 5 0%
8.2 Third-Party Verification 15 0%
8.3 Finalize Production Scripts 3 0%
8.4 QC Testing and Approval 3 0%
9 Release
9.1 Customer Beta Release 10 0%
9.2 Customer Production Release 5 0%
LANCASTER DERMS DEVELOPMENT SCHEDULE
PROJECT MANAGER: MARK LANE
TASK NUMBER TASK TITLE DURATION
DAYS
PCT OF TASK
COMPLETE
R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F M T W R F WEEK 41 WEEK 42 WEEK 43WEEK 30 WEEK 31 WEEK 32 WEEK 33 WEEK 34 WEEK 35 WEEK 36WEEK 29 WEEK 37 WEEK 38 WEEK 39 WEEK 40WEEK 24 WEEK 25 WEEK 26 WEEK 27 WEEK 28 22 WEEK 23 1 SOFTWARE MAINTENANCE AND TECHNICAL SUPPORT AGREEMENT
Serious Controls LLC. ('Serious') will provide the Support Services listed below for the Software and such contacts as Customer may designate in writing from time to time ('Designated Contacts') named by Lancaster Choice Energy (“Customer”). The Designated Contacts as of the commencement of this Software Maintenance and Technical Support Agreement (“Agreement”) are set forth on page 3 of this agreement.
1. SUPPORT
Serious will establish and maintain an organization and process to provide support for the Software to Customer. Support shall include (i) diagnosis of problems or performance deficiencies of the Software (ii) a resolution of the problem or performance deficiencies of the Software and (iii) adding new virtual end nodes (“VENs”) or demand energy response systems (“DERs”) to the Software. Serious will provide telephone software support on a business day basis. Business day is defined as 6:00 AM through 5:00 PM pacific standard time, excluding holidays and weekends.
Serious will use its best efforts to cure, as described below, reported, and reproducible errors in the Software. Serious utilizes the following three (3) severity levels to categorize reported problems:
SEVERITY 1 CRITICAL BUSINESS IMPACT
The impact of the reported deficiency is such that the customer is unable to either use the Software or reasonably continue work using the Software. Serious will commence work on resolving the deficiency within one (1) hour of notification and will engage staff during business hours until an acceptable resolution is achieved.
SEVERITY 2 SOME BUSINESS IMPACT
Important features of the Software are unavailable, but an alternative solution is available or non- essential features of the Software are unavailable with no alternative solution. The customer impact, regardless of product usage, is minimal loss of operational functionality or implementation resources. Serious will commence work on resolving the deficiency within one (1) business day of notification and will engage staff during business hours until an acceptable resolution is achieved.
SEVERITY 3 MINIMAL BUSINESS IMPACT
Customer submits a Software information request, software enhancement or documentation clarification which has no operational impact. The implementation or use of the Software by the Customer is continuing and there is no negative impact on productivity. Serious will provide an initial response regarding the request within one (1) business week.
This agreement is not intended as a consulting agreement for customer services. With respect to severity one (1) reported deficiencies, Serious may, with the concurrence of the Customer, elect to send senior support or development staff to the Customer location to accelerate problem resolution. Serious will be responsible for the costs associated with this escalated problem resolution if the problem is determined to be related to supported Software. 2 2. MAINTENANCE
During the term of this agreement, Serious will provide the Customer with copyrighted patches, updates, releases, and new versions of the Software along with other generally available technical material. The Customer agrees not to use or transfer the prior version but to destroy or archive the prior version of the Software.
All patches, updates, release, and new versions shall be subject to the license agreement related to the Software.
3. WARRANTY
Serious will undertake all reasonable efforts to provide technical assistance under this agreement and to rectify or provide solutions to problems where the Software does not function as described in the Software documentation, but Serious does not guarantee that the problems will be solved or that any item will be error-free. This agreement is only applicable to Serious Software built under the Service Agreement between Serious Controls and Lancaster Choice Energy, dated May 3, 2022. Serious will provide the Customer with substantially the same level of service throughout the term of this agreement. THE FOLLOWING WARRANTY IS IN LIEU OF ALL
OTHER WARRANTIES, CONDITIONS OR PROMISES TO CUSTOMER OR ANY THIRD
PARTY, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTY OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR ARISING BY STATUE, LAW, COURSE OF DEALING, CUSTOM AND PRACTICE OR TRADE USAGE.
EXCEPT AS PROVIDED ABOVE, THE SERVICES AND MAINTENANCE ARE PROVIDES 'AS IS'. Serious is not liable for incidental, special or consequential damages for any reason (including loss of data or other business or property damage), even if foreseeable or if Customer has advised of such a claim.
4. TERM
This agreement shall start on the Effective Date stated below. This agreement shall run for a period of two (2) years from the Effective Date and shall automatically renew for consecutive one (1) year periods unless either party provides written notice of termination within sixty (60) days prior to the anniversary date of the Effective Date. Payment for each renewal term will be billed monthly at a flat rate of $2,250 per month. This agreement may be terminated for non- payment or material breach. Fees paid or due are non-refundable unless Serious has materially breached this agreement and has failed to cure the breach after 30 days written notice.
5. GENERAL
(a) Each party acknowledges that it has read this Agreement, they understand the agreement and agree to be bound by its terms. Further, b oth parties agree that, with the exception of the Service Agreement of even date herewith, this Agreement is the complete and exclusive statement of the agreement between the parties, which supersedes and merges all prior proposals, understandings, and all other agreements, oral and written, between the parties relating to the subject of this Agreement. This Agreement may not be modified or altered except by written instrument duly executed by both parties. The Software and the use thereof are subject to the license agreement related to the Software.
(b) Times by which Serious will perform under this agreement shall be postponed automatically to the extent that we are prevented from meeting them by causes beyond reasonable control. 3 (c) This agreement and performance hereunder shall be governed by the laws of the State of California.
(d) No action, regardless of form, arising out of this Agreement may be brought by Customer more than two (2) years after the cause of action has arisen.
(e) If any provision of this Agreement is invalid under any applicable statute or rule of law, it is to that extent, deemed to be omitted.
(f) Customer may not assign or sub -license without the prior written consent of Serious , Customer's rights, duties, or obligations under this Agreement to any person or entity, in whole or in part.
(h) The term 'Software' as used in this agreement means: The DERMS software developed under service agreement dated May 3, 2022 between Serious Controls and Lancaster Choice Energy.
Designated Contacts, full names followed by telephone number and e-mail address. (Two maximum).
Contact 1
Name: Patti Garibay
Telephone #: 661-723-6072
E-mail Address: [email protected]
Contact 2
Name: Joe Haggard
Telephone #: 661-723-6060
E-mail Address: [email protected]
During the term of this agreement, the Customer may delete and add Designated Contacts by sending notification in writing on Customer's letter head and addressed to Serious Controls Executive Vice President. We may rely on such notice to make the change.
SERIOUS CONTROLS LLC.:
Mark Lane
Chief Executive Officer
Signature: ________________________
Date: _____________________________
4 LANCASTER CHOICE ENERGY:
Jason Caudle
City Manager
Signature: ________________________
Date: _____________________________
The Effective Date of this agreement is: __________________________________
STAFF REPORT
City of Lancaster
Date: May 10, 2022
To: Mayor Parris and City Council Members
From: Jason Caudle, City Manager
Subject: APPROVAL OF POWER CHARGE INDIFFERENCE ADJUSTMENT
VOLUNTARY ALLOCATION OF LONG-TERM RENEWABLE
ENERGY PORTFOLIO FROM SOUTHERN CALIFORNIA EDISON
AND AUTHORIZATION TO EXECUTE THE VOLUNTARY
ALLOCATION AGREEMENT ON BEHALF OF LANCASTER
CHOICE ENERGY
Recommendation:
Approve the Power Charge Indifference Adjustment (PCIA) Voluntary Allocation of Long-Term Renewable Energy Portfolio from Southern California Edison (SCE) and Authorize the City Manager to Execute the Voluntary Allocation Agreement on behalf of Lancaster Choice Energy.
Fiscal Impact:
Not to exceed $557,959 beginning in 2023 decreasing annually to $14,365 in 2042, for a total not to exceed amount of $7,174,732 over a twenty (20) year period. Sufficient revenues will be generated to cover operating expenses, including power procurement.
Background:
The PCIA is an exit fee charged by SCE to customers that choose another provider of electricity generation service through direct access or Community Choice Aggregators (CCA). The fee is designed to cover the difference in the market value of energy resources that were already contracted on a customer’s behalf by SCE and the cost of those resources. In the past, while CCA customers paid these above-market costs through the PCIA, CCAs were not able to count the PCIA resources in their portfolios.
In 2021, the California Public Utilities Commission (CPUC) ordered the Investor-Owned Utilities (IOUs) to offer CCAs voluntary allocations of PCIA-eligible renewable resources and to sell any unallocated resources through an annual market offer process.
Lancaster Choice Energy now can accept voluntary allocations of PCIA-eligible renewable resources from SCE at the Market Price Benchmark, which is established by the current market price in any given year and is the same price used to set the renewable energy portion of the PCIA.
CC 15
05/10/22
JC
To secure the voluntary allocations, Lancaster Choice Energy must participate in SCE’s enrollment process, which closes May 13, 2022, and then enter into a voluntary allocation agreement. A portion of the PCIA-eligible renewable energy resources includes long-term contracts of ten (10) years or greater. Lancaster Choice Energy’s allocation is based on its most recent load forecast. SCE provided Lancaster Choice Energy with a list of contracts and an indicative forecast of each resource’s generation output that would be available to Lancaster Choice Energy.
The long-term resources are comprised primarily of wind and solar and will help satisfy a portion of Lancaster Choice Energy’s long-term renewable contracting requirement as mandated by Senate Bill 350. (SB 350). SB 350 requires that all load-serving entities, including CCAs, enter into long-term renewable energy contracts with energy delivery to begin by the 2021 – 2024 compliance period. Lancaster Choice Energy will accept up to 30% of the offered allocation to complete its requirements under SB 350.
Attachments:
Voluntary Allocation Agreement
Voluntary Allocation Agreement
v. 2022.2.23
Contract ID # [] SCE – {Counterparty}
92/817$5<$//2&$7,21
$*5((0(17
between
{COUNTERPARTY LEGAL NAME}
and
6287+(51&$/,)251,$(',621&203$1<
&RQWUDFW,'
7KLV 9ROXQWDU\ $OORFDWLRQ $JUHHPHQW LQFOXGLQJ DOO DSSHQGLFHVH[KLELWV VFKHGXOHV DWWDFKPHQWVDQGDQ\VXSSOHPHQWVKHUHWR
WKH³ $JUHHPHQW´
LVHQWHUHGLQWRDVRI {date}
WKH³(IIHFWLYH'DWH´
EHWZHHQ{Counterparty’s Legal Name}D{insert state and form of formation or incorporation}
³&RXQWHUSDUW\´
DQG6RXWKHUQ&DOLIRUQLD(GLVRQ&RPSDQ\
D&DOLIRUQLDFRUSRUDWLRQ
³ 6&(´
HDFKLQGLYLGXDOO\D³3DUW\´DQGWRJHWKHUWKH³3DUWLHV´ &DSLWDOL]HGWHUPVXVHGEXWQRWRWKHUZLVHGHILQHGLQWKLV$JUHHP HQWKDYHWKHPHDQLQJV DVFULEHGWRWKHPLQWKH&$,627DULIIDVRIWKHGDWHKHUHRI 5(&,7$/6
:+(5($6WKH&38&DGRSWHGWKHSRZHUFKDUJHLQGLIIHUHQFHDGMXVWPHQW
³3&,$´
LQRUGHUIRUFXVWRPHUV
³'HSDUWHG/RDG&XVWRPHUV´
RILQYHVWRURZQHG
XWLOLWLHV
³,28V´
ZKRODWHUGHSDUW,28VHUYLFHWRUHPDLQUHVSRQVLEOHIRUFRVWVLQFXUUHG E\,28VRQWKHLUEHKDOI
:+(5($6WKH,28VKDYHDSRUWIROLRRIFRQWUDFWVZLWKWKLUGSDUWLHVIRUWKH SURFXUHPHQWRI&DOLIRUQLD536(OLJLEOH(OHFWULF(QHUJ\ZKLFKLVVXEMHFWWRWKH3&,$ WKH
³5363&,$3RUWIROLR´
:+(5($6WKH&38&LQ&38&'HFLVLRQSURYLGHVIRUWKHDOORFDWLRQ RIWKH&DOLIRUQLD536(OLJLEOH(OHFWULF(QHUJ\DQGDVVRFLDWHG*UHHQ$WWULEXWHVJHQHUDWHG IURPDQ,28¶V5363&,$3RUWIROLRWRFHUWDLQ/RDG6HUYLQJ(QWLWLHV ³/6(´
ZKRVH
FXVWRPHUVLQFOXGHWKH,28¶V'HSDUWHG/RDG&XVWRPHUV
³3&,$(OLJLEOH/6(V´
ZLWK
WKHH[FHSWLRQRIFHUWDLQ&DOLIRUQLD536(OLJLEOH(OHFWULF(QHUJ\DQGDVVRFLDWHG*UHHQ $WWULEXWHVWKDWDUH
JHQHUDWHGXQGHUDJUHHPHQWVWKDWGRQRWKDYHDWHUPLQDWLRQGDWH
LHHYHUJUHHQFRQWUDFW
JHQHUDWHGE\UHVRXUFHVRZQHGE\,28VRU
FDQQRWEH
DOORFDWHGGXHWR
D
WKHUHEHLQJQRDVVRFLDWHG5HQHZDEOH(QHUJ\&UHGLWVFUHDWHG SXUVXDQWWR6HFWLRQV
D
±
RIWKH&DOLIRUQLD3XEOLF8WLOLWLHV&RGHRU
E
WKH
UHTXLUHPHQWWKDWDQHOHFWULFDOFRUSRUDWLRQXWLOL]HFHUWDLQSURFXUHG&DOLIRUQLD536(OLJLEOH (OHFWULF(QHUJ\DQGDVVRFLDWHG*UHHQ$WWULEXWHVWRPHHWLWVRZQUHQHZDEOHVSRUWIROLR VWDQGDUGDQQXDOSURFXUHPHQWWDUJHWSXUVXDQWWR6HFWLRQ
RIWKH&DOLIRUQLD3XEOLF
8WLOLWLHV&RGHVXFKDVXQGHUFRQWUDFWVVLJQHGSXUVXDQWWRWKH3XEOLF8WLOLW\5HJXODWRU\ 3ROLFLHV$FWDQGWKH5HQHZDEOH0DUNHW$GMXVWLQJ7DULII ³(OLJLEOH5363&,$
3RUWIROLR´
Agenda Page 51
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
:+(5($6&RXQWHUSDUW\LVD3&,$(OLJLEOH/6(WKDWSURYLGHVHOHFWULFVHUYLFHV WRVRPHRI6&(¶V'HSDUWHG/RDG&XVWRPHUVDQGGHVLUHVWRUHFHLYHFHUWDLQSHUFHQWDJHVDV HOHFWHGLQWKLV$JUHHPHQWRILWV/RDG6KDUH3HUFHQWDJHRIWKH3URGXFWIURP6&(¶V (OLJLEOH5363&,$3RUWIROLR
DQG
:+(5($66&(DQGWKH&RXQWHUSDUW\GHVLUHWRHQWHULQWRWKLV$JUHHPHQWIRUWKH WUDQVIHURIWKH3URGXFWIURP6&(¶V(OLJLEOH5363&,$3RUWIROLRLQDFFRUGDQFHZLWKWKH WHUPVDQGFRQGLWLRQVRIWKLV$JUHHPHQW
DQG
12:7+(5()25(LQFRQVLGHUDWLRQRIWKHPXWXDOFRYHQDQWVVHWIRUWKKHUHLQ DQGIRUVXFKRWKHUJRRGDQGYDOXDEOHFRQVLGHUDWLRQWKHUHFHLSWDQGVXIILFLHQF\RIZKLFK DUHKHUHE\DFNQRZOHGJHGDQGLQWHQGLQJWREHOHJDOO\ERXQGWKH3DUWLHVDJUHHDVIROORZV
$57,&/( 7(50$1'92/817$5<$//2&$7,217(506
7HUP
7KH³7HUP´RIWKLV$JUHHPHQWVKDOOFRPPHQFHXSRQWKH(IIHFWLYH'DWHDQGVKDOO FRQWLQXHXQWLODOOWKHREOLJDWLRQVRIWKH3DUWLHVXQGHUWKLV$JUHHPHQWKDYHEHHQ VDWLVILHGXQOHVVWHUPLQDWHGHDUOLHUGXHWRDQ(YHQWRI'HIDXOW SURYLGHGKRZHYHU
WKDWVXFKWHUPLQDWLRQVKDOOQRWDIIHFWRUH[FXVHWKHSHUIRUPDQFHRIHLWKHU3DUW\ XQGHUDQ\SURYLVLRQRIWKLV$JUHHPHQWWKDWE\LWVWHUPVVXUYLYHVDQ\VXFK WHUPLQDWLRQ
9ROXQWDU\$OORFDWLRQ7HUPV
3URGXFW
7KH³3URGXFW´LVWKH&RQWUDFW4XDQWLW\RI&DOLIRUQLD536(OLJLEOH (OHFWULF(QHUJ\DQGDVVRFLDWHG*UHHQ$WWULEXWHVIURPWKH3URMHFWV 3URMHFW
(DFKRIWKHJHQHUDWLQJIDFLOLWLHVOLVWHGLQ$SSHQGL[%VKDOOEHD³3URMHFW´ VXEMHFWWRWKHJHQHUDWLQJIDFLOLW\QRORQJHUEHLQJD3URMHFWXSRQ
D
WKH
3URMHFWEHLQJUHPRYHGIURP6&(¶V(OLJLEOH5363&,$3RUWIROLRLQ DFFRUGDQFHZLWK6HFWLRQ
E
WKHFRQFOXVLRQRIWKHDSSOLFDEOH'HOLYHU\
3HULRGIRUWKH3URMHFWVGHVLJQDWHGDV³6KRUW7HUP´RQ$SSHQGL[%DQG F
WKHFRQFOXVLRQRIWKHGHOLYHU\WHUPIRUD3URMHFWGHVLJQDWHGDV³/RQJ 7HUP´RQ$SSHQGL[%
&RQWUDFW
4XDQWLW\
7KH³&RQWUDFW4XDQWLW\´VKDOOEHWKHVXPRIWKH3URMHFW&RQWUDFW 4XDQWLWLHV
)RUHDFK3URMHFWWKH³3URMHFW&RQWUDFW4XDQWLW\´VKDOOHTXDOWKHWRWDO &DOLIRUQLD536(OLJLEOH(OHFWULF(QHUJ\JHQHUDWHGE\VXFK3URMHFWDQG PHDVXUHGDWWKH&$,62UHYHQXHPHWHUPXOWLSOLHGE\&RXQWHUSDUW\¶V/RDG 6KDUH3HUFHQWDJHLQWKH3&,$9LQWDJH<HDUZKLFKWKH3URMHFWLVDSDUWRI DQGIXUWKHUPXOWLSOLHGE\WKHDSSOLFDEOH/RQJ7HUP(OHFWLRQ3HUFHQWDJHRU 6KRUW7HUP(OHFWLRQ3HUFHQWD
JH
Agenda Page 52
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
/RDG6KDUH
3HUFHQWDJH
&RXQWHUSDUW\¶V/RDG6KDUH3HUFHQWDJHVKDOOEHWKHVDPHIRUHDFK3URMHFWLQ WKHVDPH3&,$9LQWDJH<HDUDQGZLOOEHDVQRWHGLQ$SSHQGL[% &RXQWHUSDUW\¶V/RDG6KDUH3HUFHQWDJHPD\EHXSGDWHGDIWHUWKH3DUWLHV DQQXDO0HHWDQG&RQIHU3URFHVVLQDFFRUGDQFHZLWK6HFWLRQ 3HUFHQWDJH
(OHFWLRQRI
&RXQWHUSDUW
\¶V
/RDG6KDUH
/RQJ7HUP(OHFWLRQ3HUFHQWDJH
>@
6KRUW7HUP(OHFWLRQ3HUFHQWDJH
>@
{SCE Note: The Long-Term Election Percentage and the Short-Term Election Percentage must be in 10% increments.}
'HOLYHU\
3HULRG
7KH³'HOLYHU\3HULRG´VKDOOEHWKHSHULRGFRPPHQFLQJRQWKHODWHURI D
&38&$SSURYDORIWKLV$JUHHPHQWLIUHTXLUHGDQG
E
>-DQXDU\
@>@DQGFRQWLQXLQJWKURXJK
[
IRUWKH3URMHFWVGHVLJQDWHGDV³/RQJ
7HUP´RQ$SSHQGL[%WKHHQGRIWKHORQJHVWGHOLYHU\WHUPRIWKH3URMHFWV DVVKRZQLQ$SSHQGL[%
DQG
\
IRUWKH3URMHFWVGHVLJQDWHGDV³6KRUW
7HUP´RQ$SSHQGL[%>@{SCE Note: The Delivery Period for the initial Voluntary Allocation Agreements will start on January 1, 2023 and for subsequent Voluntary Allocation Agreements will start on January 1st of every subsequent RPS compliance period. The end of the Delivery Period for “Short-Term” elections will be the end of the applicable RPS compliance period
for which these allocations are applicable.}
'HOLYHU\3RLQW 7KH³'HOLYHU\3RLQW´VKDOOEHWKH3ULFLQJ1RGHDSSOLFDEOHWRHDFK3URMHFW &RQWUDFW3ULFH 7KH³&RQWUDFW3ULFH´VKDOOEHWKHVXPRIWKH(QHUJ\3ULFHDQGWKH5(& 3ULFH
$57,&/('(/,9(5<2%/,*$7,216
6&(¶V&RQYH\DQFHRI(OHFWULF(QHUJ\DQG*UHHQ$WWULEXWHV
D
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
E
6&(RUDTXDOLILHGWKLUGSDUW\GHVLJQDWHGRURWKHUZLVHDJUH HGWRE\6&( VKDOODFWDV6FKHGXOLQJ&RRUGLQDWRUIRUWKH3URMHFWV&RXQWHUSDUW\ Agenda Page 53
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
DXWKRUL]HV6&(RULWVWKLUGSDUW\6FKHGXOLQJ&RRUGLQDWRUGHVLJQHHWR GHOLYHUWKH&DOLIRUQLD536(OLJLEOH(OHFWULF(QHUJ\DVVRFLDWHGZLWKWKH 3URGXFWWRWKH&$,62DWWKH'HOLYHU\3RLQWDVDQDJHQWRQ&RXQWHUSDUW\¶V EHKDOI
F
7LWOHWRDQGULVNRIORVVUHODWHGWRWKH&DOLIRUQLD536(OLJ LEOH(OHFWULF(QHUJ\ VKDOOWUDQVIHUIURP6&(WR&RXQWHUSDUW\XSRQVDWLVIDFWLRQRIWK HGHOLYHU\ REOLJDWLRQVLQWKLV$UWLFOH6&(ZDUUDQWVWKDWLWZLOOGHOLYHUWR&RXQWHUSDUW\ WKH 3URGXFW IUHH DQG FOHDU RI DOO OLHQV VHFXULW\ LQWHUHVWV FODLPV DQG HQFXPEUDQFHVRUDQ\LQWHUHVWWKHUHLQRUWKHUHWRE\DQ\SHUVRQDULVLQJSULRUWR GHOLYHULQJVXFK3URGXFWLQDFFRUGDQFHZLWKWKLV$UWLFOH
G
'XULQJWKH'HOLYHU\3HULRG6&(DWLWVRZQFRVWDQGH[SHQVH VKDOO PDLQWDLQLWVUHJLVWUDWLRQZLWK:5(*,6$OO*UHHQ$WWULEXWHVWUDQVIHUUHGE\ 6HOOHUKHUHXQGHUVKDOOEH&DOLIRUQLD536FRPSOLDQWVXEMHFWWRFRQILUPDWLRQ E\WKH&(&6&(VKDOODWLWVVROHH[SHQVHXVH:5(*,6DVUHTXLUHG SXUVXDQWWRWKH:5(*,62SHUDWLQJ5XOHVWRHIIHFWXDWHWKHWUDQVIHURI*UHHQ $WWULEXWHVWR&RXQWHUSDUW\LQDFFRUGDQFHZLWK:5(*,6UHSRUWLQJSURWRFROV DQG:5(*,62SHUDWLQJ5XOHV
H
)RUHDFKDSSOLFDEOHPRQWKRIWKH'HOLYHU\3HULRG6&(VKDOO GHOLYHUDQG FRQYH\WKH*UHHQ$WWULEXWHVDVVRFLDWHGZLWKWKH&DOLIRUQLD536(OLJLEOH (OHFWULF(QHUJ\GHOLYHUHGSXUVXDQWWR6HFWLRQ
D
DERYHZLWKLQWKLUW\
GD\V
D
RIWKHFUHDWLRQRIWKH:5(*,6&HUWLILFDWHVIRUWKH*UHHQ $WWULEXWHVIRUWKH3URMHFWVZKHUH6&(LVWKH:5(*,6$FFRXQW+ROGHURU
E
RI6&(¶VUHFHLSWRIWKH:5(*,6&HUWLILFDWHVIRUWKH3URMHFWVIRUZKLFK 6&(LVQRWWKH:5(*,6$FFRXQW+ROGHU6&(VKDOOGHOLYHUDQGFRQYH\ VXFK*UHHQ$WWULEXWHVE\SURSHUO\WUDQVIHUULQJVXFK:5(*,6&HUWLILFDWHV LQDFFRUGDQFHZLWKWKHUXOHVDQGUHJXODWLRQVRI:5(*,6HTXLYDOHQWWRWKH TXDQWLW\RI*UHHQ$WWULEXWHVWR&RXQWHUSDUW\LQWR&RXQWHUSDUW\¶V:5(*,6 DFFRXQWVXFKWKDWDOOULJKWWLWOHDQGLQWHUHVWLQDQGWRWKH:5(*,6 &HUWLILFDWHVVKDOOWUDQVIHUIURP6&(WR&RXQWHUSDUW\
SURYLGHGIXUWKHUWKDW
LI6&(IDLOVWRSURSHUO\WUDQVIHUVXFK:5(*,6&HUWLILFDWHVWR&RXQWHUSDUW\ LQDFFRUGDQFHZLWKWKHDERYHGXHWRDQHUURURURPLVVLRQRIDQ DGPLQLVWUDWLYHRUFOHULFDOQDWXUHDQGLIVXFKIDLOXUHFDQEHFXUHGZLWKQR KDUPWR&RXQWHUSDUW\WKHQ6&(PD\FXUHVXFKIDLOXUHZLWKLQWKLUW\
GD\VDIWHUQRWLFHRIVXFKIDLOXUH
I
,QDGGLWLRQWRLWVRWKHUREOLJDWLRQVXQGHUWKLV6HFWLRQ 6&(VKDOOFRQYH\ WR&RXQWHUSDUW\:5(*,6&HUWLILFDWHVIURPWKH3URMHFWVWKDWDUHRIWKHVDPH 9LQWDJH<HDUDVWKH&DOLIRUQLD536(OLJLEOH(OHFWULF(QHUJ\WKDWZDV SURYLGHGXQGHU6HFWLRQ
D
RIWKLV$JUHHPHQW
0XWXDO,QGHPQLILFDWLRQ
(DFK3DUW\VKDOOLQGHPQLI\GHIHQGDQGKROGKDUPOHVVWKHRWKHU3DUW\IURPDQG Agenda Page 54
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
DJDLQVWDQ\&ODLPVDULVLQJIURPRURXWRIDQ\HYHQWFLUFXPVWDQFHDFWRULQFLGHQW ILUVWRFFXUULQJRUH[LVWLQJGXULQJWKHSHULRGZKHQFRQWURODQGWLWOHWR3URGXFWLV YHVWHGLQVXFK3DUW\(DFK3DUW\VKDOOLQGHPQLI\GHIHQGDQGKROGKDUPOHVVWKH RWKHU3DUW\DJDLQVWDQ\*RYHUQPHQWDO&KDUJHVIRUZKLFKVXFK3DUW\LVUHVSRQVLEOH XQGHUWKLV$JUHHPHQW1HLWKHU3DUW\VKDOOEHOLDEOHZLWKUHVSHFWWRDQ\&ODLPWR WKHH[WHQWWKDWVXFK&ODLPUHVXOWHGIURPWKHQHJOLJHQFHZLOOIXOPLVFRQGXFWRU EDGIDLWKRIWKHLQGHPQLILHG3DUW\
)RUFH0DMHXUH
7RWKHH[WHQWHLWKHU3DUW\LVSUHYHQWHGE\)RUFH0DMHXUHIURPFDUU\LQJRXWLQ ZKROHRUSDUWLWVREOLJDWLRQVXQGHUWKLV$JUHHPHQWDQGVXFK3DUW\ WKH³&ODLPLQJ
3DUW\´
JLYHVQRWLFHDQGGHWDLOVRIWKH)RUFH0DMHXUHWRWKHRWKHU3DUW\DVVRRQDV SUDFWLFDEOHWKHQWKH&ODLPLQJ3DUW\VKDOOEHH[FXVHGIURPWKHSHUIRUPDQFHRILWV REOLJDWLRQV
RWKHUWKDQWKHREOLJDWLRQWRPDNHSD\PHQWVWKHQGXHRUEHFRPLQJGXH ZLWKUHVSHFWWRSHUIRUPDQFHSULRUWRWKH)RUFH0DMHXUH
7KH&ODLPLQJ3DUW\VKDOO
UHPHG\WKH)RUFH0DMHXUHZLWKDOOUHDVRQDEOHGLVSDWFK7KHQRQ&ODLPLQJ3DUW\ VKDOOQRWEHUHTXLUHGWRSHUIRUPRUUHVXPHSHUIRUPDQFHRILWVREOLJDWLRQVWRWKH &ODLPLQJ3DUW\FRUUHVSRQGLQJWRWKHREOLJDWLRQVRIWKH&ODLPLQJ3DUW\H[FXVHGE\ )RUFH0DMHXUH
5HPHG\IRU)DLOXUHWR0DNH7LPHO\3D\PHQW
D
6WRSSLQJ'HOLYHULHV,I&RXQWHUSDUW\IDLOVWRPDNHWLPHO\S D\PHQWIRUWKH 3URGXFWLQDFFRUGDQFHZLWKWKHWHUPVRIWKLV$JUHHPHQWDQGUHJDUGOHVVRI ZKHWKHUVXFKIDLOXUHLVDQ(YHQWRI'HIDXOWRU6&(KDVGHVLJQDWHGDQ(DUO\ 7HUPLQDWLRQ'DWH6&(VKDOOLPPHGLDWHO\VWRSDOOGHOLYHULHVRI3URGXFWWR &RXQWHUSDUW\DQGVKDOOKDYHQRREOLJDWLRQWRUHVWDUWGHOLYHULHVRIWKH3URGXFW XQWLO&RXQWHUSDUW\KDVPDGHDOORXWVWDQGLQJSD\PHQWVWR6&()XUWKHU6&( VKDOOKDYHQRREOLJDWLRQWRSURYLGH&RXQWHUSDUW\DGGLWLRQDO3URGXFWWR PDNHXSIRU3URGXFWQRWGHOLYHUHGSXUVXDQWWRWKLV6HFWLRQ D
DQGWKH
DPRXQWRI&RQWUDFW4XDQWLW\RI3URGXFWWREHGHOLYHUHGWRWKH&RXQWHUSDUW\ VKDOOEHGHHPHGUHGXFHGE\WKHDPRXQWRI3URGXFWQRWGHOLYHUHGSXUVXDQWWR WKLV6HFWLRQ
D
E
5HWHQWLRQRI:5(*,6&HUWLILFDWHV)RUDYRLGDQFHRIGRXEW6& (VKDOOKDYH WKHULJKWWRUHWDLQDQGVHOODQ\:5(*,6&HUWLILFDWHVDVVRFLDWHGZLWK &DOLIRUQLD536(OLJLEOH(OHFWULF(QHUJ\SUHYLRXVO\GHOLYHUHGWRWKH &RXQWHUSDUW\DQGQRWSDLGIRUE\&RXQWHUSDUW\
5HPRYDORI3URMHFWIURP6&(¶V(OLJLEOH5363&,$3RUWIROLR 7KH3DUWLHVDFNQRZOHGJHDQGDJUHHWKDW6&(KDVWKHULJKWDWDQ\WLPHDQGLQLWV VROHGLVFUHWLRQWRRSWLPL]HLWV(OLJLEOH5363&,$3RUWIROLRE\PRGLI\LQJ LQFOXGLQJEXWQRWOLPLWHGWRUHGXFLQJDQ\SXUFKDVHVRIHQHUJ\RUFDSDFLW\ WHUPLQDWLQJRUDVVLJQLQJWRDWKLUGSDUW\DQ\FRQWUDFWLQLWV(OLJLEOH5363&,$ Agenda Page 55
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
3RUWIROLR,IDFRQWUDFWLQ6&(¶V(OLJLEOH5363&,$3RUWIROLRLVWHUPLQDWHGRU DVVLJQHGWRDWKLUGSDUW\WKH3URMHFWFRUUHVSRQGLQJWRVXFKFRQWUDFWVKDOOFHDVHWR EHD3URMHFWXQGHUWKLV$JUHHPHQW
/RDG6KDUH3HUFHQWDJH
7KH3DUWLHVDFNQRZOHGJHWKDWDWWKHFRQFOXVLRQRIHDFKDQQXDO0HHWDQG&RQIHU 3URFHVVWKHUHPD\EHXSGDWHV
³5HYLVHG/RDG6KDUH3HUFHQWDJHV´
WRWKH/RDG
6KDUH3HUFHQWDJHVIRUWKH3&,$9LQWDJH<HDUVVKRZQLQ$SSHQGL[%7KH3DUWLHV DJUHHWKDWXSRQ6&(VHQGLQJDOHWWHUWRWKH&RXQWHUSDUW\ZLWKWKH5HYLVHG/RDG 6KDUH3HUFHQWDJHVLQDFFRUGDQFHZLWKWKHQRWLFHSURYLVLRQVRI6HFWLRQ WKH
/RDG6KDUH3HUFHQWDJHVZLOOEHGHHPHGXSGDWHGWRWKH5HYLVHG/RDG6KDUH 3HUFHQWDJHVDVVWDWHGLQWKHOHWWHUDVRI-DQXDU\VWRIHDFK\HDUIROORZLQJWKH DQQXDO0HHWDQG&RQIHU3URFHVVDQGWKDWWKH&RQWUDFW4XDQWLW\RI3URGXFWWREH GHOLYHUHGE\6&(WR&RXQWHUSDUW\ZLOOEHXSGDWHGDFFRUGLQJO\ $57,&/(3$<0(17
0RQWKO\3D\PHQW
&RXQWHUSDUW\VKDOOSD\6&(WKH³0RQWKO\&DVK6HWWOHPHQW$PRXQW´LQDUUHDUVIRU HDFK&DOFXODWLRQ3HULRGLQWKHDPRXQWHTXDOWRWKHVXPRI $
SOXV
%
PLQXV
&
ZKHUH
$ WKHVXPRYHUDOOKRXUVRIWKH&DOFXODWLRQ3HULRGRI L
WKHDSSOLFDEOH
(QHUJ\3ULFHIRUHDFKKRXURI'HOLYHUHG(QHUJ\ZLWKLQWKHDSSOLFDEOH &$,62PDUNHW
LHLQWHJUDWHGIRUZDUGPDUNHWILIWHHQPLQXWHDQGRU 5HDO7LPH0DUNHW
PXOWLSOLHGE\
LL
WKHTXDQWLW\RI'HOLYHUHG(QHUJ\
GXULQJWKHWLPHLQWHUYDOLQHDFKUHVSHFWLYHPDUNHW
DQG
% WKH5(&3ULFHPXOWLSOLHGE\WKHTXDQWLW\RI*UHHQ$WWULEXWH V LQ
0:KV
WKDWZLOOEHFRQYH\HGDVGHVFULEHGLQ6HFWLRQDQGWKDWDUH DVVRFLDWHGZLWKWKH'HOLYHUHG(QHUJ\LQWKH&DOFXODWLRQ3HULRG DQG
& WKHVXPRYHUDOOKRXUVRIWKH&DOFXODWLRQ3HULRGRI L
WKHDSSOLFDEOH
(QHUJ\3ULFHIRUHDFKKRXURI'HOLYHUHG(QHUJ\ZLWKLQWKHDSSOLFDEOH &$,62PDUNHW
LHLQWHJUDWHGIRUZDUGPDUNHWILIWHHQPLQXWHDQGRU 5HDO7LPH0DUNHW
PXOWLSOLHGE\
LL
WKHTXDQWLW\RI'HOLYHUHG(QHUJ\
GXULQJWKHWLPHLQWHUYDOLQHDFKUHVSHFWLYHPDUNHW
6XFK0RQWKO\&DVK6HWWOHPHQW$PRXQWFRQVWLWXWHVSD\PHQWIRUWKH 3URGXFW LQFOXGLQJ WKH *UHHQ $WWULEXWHV IRU VXFK DSSOLFDEOH &DOFXODWLRQ 3HULRG &RXQWHUSDUW\VKDOOEHREOLJDWHGWRPDNHVXFKSD\PHQWVZLWKUHVS HFWWRHDFK DSSOLFDEOH&DOFXODWLRQ3HULRGQRWZLWKVWDQGLQJWKHIDFWWKDWWKH *UHHQ$WWULEXWHV DVVRFLDWHGZLWKDSDUWLFXODU&DOFXODWLRQ3HULRGPD\EHGHOLYHUH GRUFUHGLWHGWR Agenda Page 56
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
6&(¶V:5(*,6DFFRXQWVXEVHTXHQWWRWKHFRQFOXVLRQRIWKHDSSOLFDEOH&DOFXODWLRQ 3HULRGLQDFFRUGDQFHZLWK6HFWLRQ
H
SURYLGHGWKDWLI6&(IDLOVWRFRPSO\ZLWK
WKHSURYLVLRQVRI6HFWLRQ
H
&RXQWHUSDUW\VKDOOEHHQWLWOHGWRH[HUFLVHDOOULJKWV DQGUHPHGLHVDYDLODEOHWR&RXQWHUSDUW\XQGHUWKLV$JUHHPHQWIRU6&(¶VIDLOXUHWR GHOLYHUWKH3URGXFW
7UXHXSRI5(&3ULFH
,IWKH&38&SXEOLVKHVWKH³&DOFXODWLRQRIWKH0DUNHW3ULFH%HQFKPDUNVIRUWKH 3RZHU&KDUJH,QGLIIHUHQW$GMXVWPHQW)RUHFDVWDQG7UXH8S´ZKLFKKDVDILQDO ³536$GGHU´IRUDFDOHQGDU\HDUWKDWGLIIHUVIURPWKH5(&3ULFHLQYRLFHGWRDQG SDLGE\WKH&RXQWHUSDUW\IRUWKH3URGXFWIRUWKDWVDPHFDOHQGDU\HDU6&(ZLOO DGMXVWIXWXUHLQYRLFHVWRDFFRXQWIRUVXFKGLIIHUHQFHV6XEMHFWWRWKHRWKHUWHUPV RIWKLV$JUHHPHQWQRLQWHUHVWVKDOOEHSDLGRQWKHDPRXQWRIDQ\DGMXVWPHQWVGXH WRWKHSXEOLVKLQJRIDILQDO³536$GGHU´,IWKLV$JUHHPHQWKDVWHUPLQDWHGDQGD ILQDO³536$GGHU´LVSXEOLVKHGWKDWUHVXOWVLQD3DUW\RZLQJDSD\PHQWWRWKH RWKHU3DUW\WKHQWKH3DUW\VKDOOPDNHVXFKSD\PHQWLQDFFRUGDQFHZLWK6HFWLRQ
%LOOLQJ3HULRG
7KHFDOHQGDUPRQWKVKDOOEHWKHVWDQGDUGSHULRGIRUDOOSD\PHQWVXQGHUWKLV $JUHHPHQW
RWKHUWKDQ7HUPLQDWLRQ3D\PHQWVDQGDVRWKHUZLVHVSHFLILHGLQWKLV $JUHHPHQW
$VVRRQDVSUDFWLFDEOHDIWHUWKHHQGRIHDFKPRQWKHDFK3DUW\ZLOO UHQGHUWRWKHRWKHU3DUW\DQLQYRLFHIRUWKHSD\PHQWREOLJDWLRQVLIDQ\ GHWHUPLQHGKHUHXQGHUIRUWKHSUHFHGLQJPRQWK
7LPHOLQHVVRI3D\PHQW
$OOLQYRLFHVXQGHUWKLV$JUHHPHQWVKDOOEHGXHDQGSD\DEOHLQDFFRUGDQFHZLWK HDFK3DUW\¶VLQYRLFHLQVWUXFWLRQVRQRUEHIRUHWKHODWHURIWKHWZHQWLHWK WK
GD\
RIHDFKPRQWKRUWHQWK
WK
GD\DIWHUUHFHLSWRIWKHLQYRLFHRULIVXFKGD\LVQRW D%XVLQHVV'D\WKHQRQWKHQH[W%XVLQHVV'D\(DFK3DUW\ZLOOPDNHSD\PHQWV E\HOHFWURQLFIXQGVWUDQVIHURUE\RWKHUPXWXDOO\DJUHHDEOHPHWKRG V
WRWKH
DFFRXQWGHVLJQDWHGE\WKHRWKHU3DUW\$Q\DPRXQWVQRWSDLGE\WKHGXHGDWHZLOO EHGHHPHGGHOLQTXHQWDQGZLOODFFUXHLQWHUHVWDWWKH,QWHUHVW5DWHVXFKLQWHUHVWWR EHFDOFXODWHGIURPDQGLQFOXGLQJWKHGXHGDWHWREXWH[FOXGLQJWKHGDWHWKH GHOLQTXHQWDPRXQWLVSDLGLQIXOO
'LVSXWHVDQG$GMXVWPHQWVRI,QYRLFHV
$3DUW\PD\DGMXVWDQ\LQYRLFHUHQGHUHGE\LWXQGHUWKLV$JUHHPHQWWRFRUUHFW DQ\DULWKPHWLFRUFRPSXWDWLRQDOHUURURUWRLQFOXGHDGGLWLRQDOFKDUJHVRUFODLPV ZLWKLQWZHQW\IRXU
PRQWKVDIWHUWKHFORVHRIWKHPRQWKLQZKLFKWKH
REOLJDWLRQVEHLQJLQYRLFHGDURVH$UHFHLYLQJ3DUW\PD\LQJRRGIDLWKGLVSXWHWKH FRUUHFWQHVVRIDQ\LQYRLFHRURIDQ\DGMXVWPHQWWRDQ\LQYRLFHSUHYLRXVO\ Agenda Page 57
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
UHQGHUHGWRLWE\SURYLGLQJQRWLFHWRWKHRWKHU3DUW\RQRUEHIRUHWKHODWHURI L
WZHOYH
PRQWKVRIWKHGDWHRIUHFHLSWRIVXFKLQYRLFHRUDGMXVWHGLQYRLFHRU
LL
WZHQW\IRXU
PRQWKVDIWHUWKHFORVHRIWKHPRQWKLQZKLFKWKHREOLJDWLRQ EHLQJLQYRLFHGDURVH)DLOXUHWRSURYLGHVXFKQRWLFHZLWKLQWKHWLPHIUDPHVHW IRUWKLQWKHSUHFHGLQJVHQWHQFHZDLYHVWKHGLVSXWHZLWKUHVSHFWWRVXFKLQYRLFH$ 3DUW\GLVSXWLQJDOORUDQ\SDUWRIDQLQYRLFHRUDQDGMXVWPHQWWRDQLQYRLFH SUHYLRXVO\UHQGHUHGWRLWPD\SD\RQO\WKHXQGLVSXWHGSRUWLRQRIWKHLQYRLFHZKHQ GXHSURYLGHGVXFK3DUW\SURYLGHVQRWLFHWRWKHRWKHU3DUW\RIWKHEDVLVIRUDQG DPRXQWRIWKHGLVSXWHGSRUWLRQRIWKHLQYRLFHWKDWKDVQRWEHHQSDLG7KHGLVSXWHG SRUWLRQRIWKHLQYRLFHPXVWEHSDLGZLWKLQWZR
%XVLQHVV'D\VRIUHVROXWLRQRI
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
PRQWKVDIWHUWKHFORVHRIWKH
PRQWKLQZKLFKWKHSD\PHQWREOLJDWLRQVDURVHWKHULJKWWRSD\PHQWIRUWKDW PRQWKXQGHUWKLV$JUHHPHQWLVZDLYHG
1HWWLQJ
7KH3DUWLHVKHUHE\DJUHHWKDWWKH\VKDOOGLVFKDUJHPXWXDOGHEWV DQGSD\PHQW REOLJDWLRQVGXHDQGRZLQJWRHDFKRWKHUDVRIWKHVDPHGDWHWKU RXJKQHWWLQJLQ ZKLFKFDVHDOODPRXQWVRZHGE\HDFK3DUW\WRWKHRWKHU3DUW\GX ULQJWKHPRQWKO\ ELOOLQJSHULRGXQGHUWKLV$JUHHPHQWLQFOXGLQJGDPDJHVSD\PHQWVRUFUHGLWVVKDOO EHQHWWHGVRWKDWRQO\WKHH[FHVVDPRXQWUHPDLQLQJGXHVKDOOEH SDLGE\WKH3DUW\ ZKRRZHVLW,IWKH3DUWLHVHQWHULQWRDGGLWLRQDODJUHHPHQWVIR UDQDOORFDWLRQIURP 6&(¶V(OLJLEOH5363&,$3RUWIROLR
³1HZ9ROXQWDU\$OORFDWLRQ$JUHHPHQWV´
6&(PD\LQLWVVROHGLVFUHWLRQQHWDQ\SD\PHQWRZHGWR&RXQWH USDUW\XQGHUWKLV $JUHHPHQWDJDLQVWDQ\DPRXQWRZHGWR6&(E\&RXQWHUSDUW\DULVLQ JRXWRIRU UHODWHGWRVXFK1HZ9ROXQWDU\$OORFDWLRQ$JUHHPHQWV
3D\PHQW
$OODPRXQWVSDLGKHUHXQGHUVKDOOEHUHQGHUHGLQWKHIRUPRILPPHGLDWHO\ DYDLODEOHGROODUV3D\PHQWDVDSSOLFDEOHVKDOOEHPDGHE\$&+RULQRWKHUIRUP UHDVRQDEO\UHTXHVWHGWRWKHIROORZLQJDFFRXQWV
6&(
%DQN
$%$1R
$FFRXQW1R
Agenda Page 58
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
&RXQWHUSDUW\
%DQN
$%$1R
$FFRXQW1R
$57,&/( 27+(56&($1'&2817(53$57<5(35(6(17$7,216 :$55$17,(6$1'&29(1$176
0XWXDO5HSUHVHQWDWLRQVDQG:DUUDQWLHV
2QWKH(IIHFWLYH'DWHHDFK3DUW\UHSUHVHQWVDQGZDUUDQWVWRWKHRWKHU3DUW\WKDW
D
LWLVGXO\RUJDQL]HGYDOLGO\H[LVWLQJDQGLQJRRGVWDQGLQJ XQGHUWKHODZVRI WKHMXULVGLFWLRQRILWVIRUPDWLRQ
E
LWKDVDOOUHJXODWRU\DXWKRUL]DWLRQVQHFHVVDU\IRULWWROHJ DOO\SHUIRUPLWV REOLJDWLRQVXQGHUWKLV$JUHHPHQW
F
WKHH[HFXWLRQGHOLYHU\DQGSHUIRUPDQFHRIWKLV$JUHHPHQWLV ZLWKLQLWV SRZHUVKDYHEHHQGXO\DXWKRUL]HGE\DOOQHFHVVDU\DFWLRQDQGGRQRWYLRODWH DQ\RIWKHWHUPVDQGFRQGLWLRQVLQLWVJRYHUQLQJGRFXPHQWVDQ\FRQWUDFWVWR ZKLFKLWLVDSDUW\RUDQ\ODZUXOHUHJXODWLRQRUGHURUWKHOLNHDSSOLFDEOHWR LW
G
WKLV$JUHHPHQWDQGHDFKRWKHUGRFXPHQWH[HFXWHGDQGGHOLYHUH GLQ DFFRUGDQFHZLWKWKLV$JUHHPHQWFRQVWLWXWHVLWVOHJDOO\YDOLGDQGELQGLQJ REOLJDWLRQHQIRUFHDEOHDJDLQVWLWLQDFFRUGDQFHZLWKLWVWHUPV VXEMHFWWRDQ\
HTXLWDEOHGHIHQVHV
H
LWLVQRW%DQNUXSWDQGWKHUHDUHQRSURFHHGLQJVSHQGLQJRUE HLQJ FRQWHPSODWHGE\LWRUWRLWVNQRZOHGJHWKUHDWHQHGDJDLQVWLWZKLFKZRXOG UHVXOWLQLWEHLQJRUEHFRPLQJ%DQNUXSW
I
WKHUHLVQRWSHQGLQJRUWRLWVNQRZOHGJHWKUHDWHQHGDJDLQV WLWRUDQ\RILWV $IILOLDWHV
IRUSXUSRVHVRIWKLV6HFWLRQ6&(VKDOOEHGHHPHGWRKDYHQR $IILOLDWHV
DQ\OHJDOSURFHHGLQJVWKDWFRXOGPDWHULDOO\DGYHUVHO\DIIHFWLWV DELOLW\WRSHUIRUPLWVREOLJDWLRQVXQGHUWKLV$JUHHPHQW
J
QR(YHQWRI'HIDXOWRU3RWHQWLDO(YHQWRI'HIDXOWZLWKUHVSH FWWRLWKDV RFFXUUHGDQGLVFRQWLQXLQJDQGQRVXFKHYHQWRUFLUFXPVWDQFHZRXOGRFFXU DVDUHVXOWRILWVHQWHULQJLQWRRUSHUIRUPLQJLWVREOLJDWLRQVXQGHUWKLV $JUHHPHQW
K
LWLVDFWLQJIRULWVRZQDFFRXQWKDVPDGHLWVRZQLQGHSHQGH QWGHFLVLRQWR HQWHULQWRWKLV$JUHHPHQWDQGDVWRZKHWKHUWKLV$JUHHPHQWLVDSSURSULDWHRU Agenda Page 59
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
SURSHUIRULWEDVHGXSRQLWVRZQMXGJPHQWLVQRWUHO\LQJXSRQWKHDGYLFHRU UHFRPPHQGDWLRQVRIWKHRWKHU3DUW\LQVRGRLQJDQGLVFDSDEOHRIDVVHVVLQJ WKHPHULWVRIDQGXQGHUVWDQGLQJDQGXQGHUVWDQGVDQGDFFHSWVWKHWHUPV FRQGLWLRQVDQGULVNVRIWKLV$JUHHPHQW
L
LWLVD³IRUZDUGFRQWUDFWPHUFKDQW´ZLWKLQWKHPHDQLQJRIWK H8QLWHG6WDWHV %DQNUXSWF\&RGH
M
LWLVDQ³HOLJLEOHFRPPHUFLDOHQWLW\´ZLWKLQWKHPHDQLQJRI WKH&RPPRGLW\ ([FKDQJH$FWDVRWKHUZLVHDPHQGHGXSGDWHGRUPRGLILHGIURPWLPHWR WLPH
N
LWLVDQ³HOLJLEOHFRQWUDFWSDUWLFLSDQW´ZLWKLQWKHPHDQLQJ RIWKH&RPPRGLW\ ([FKDQJH$FWDVRWKHUZLVHDPHQGHGXSGDWHGRUPRGLILHGIURPWLPHWR WLPH
O
LWKDVHQWHUHGLQWRWKLV$JUHHPHQWLQFRQQHFWLRQZLWKWKHFR QGXFWRILWV EXVLQHVVDQGLWKDVWKHFDSDFLW\RUDELOLW\WRPDNHRUWDNHGHOLYHU\RIDOO 3URGXFWVUHIHUUHGWRLQWKH$JUHHPHQW
P
LWLVDSURGXFHUSURFHVVRUFRPPHUFLDOXVHURUPHUFKDQWKDQGOLQJWKH 3URGXFWDQGLWLVHQWHULQJLQWRWKH$JUHHPHQWIRUSXUSRVHVUHODWHGWRLWV EXVLQHVVDVVXFK
DQG
Q
WKH$JUHHPHQWLVQRWH[HFXWHGRUWUDGHGRQD³WUDGLQJIDFLOL W\´DVGHILQHGLQ WKH&RPPRGLW\([FKDQJH$FWDVRWKHUZLVHDPHQGHGXSGDWHGRUPRGLILHG IURPWLPHWRWLPHDQGLVVXEMHFWWRLQGLYLGXDOQHJRWLDWLRQE\WKH3DUWLHV 6&(¶V5HSUHVHQWDWLRQV:DUUDQWLHVDQG&RYHQDQWV
D
6&(DQGLIDSSOLFDEOHLWVVXFFHVVRUVUHSUHVHQWVDQGZDUU DQWVWKDW WKURXJKRXWWKH7HUPRIWKLV$JUHHPHQW
L
D3URMHFWTXDOLILHVDQGLVFHUWLILHGE\WKH&(&DVDQ(OLJLE OH 5HQHZDEOH(QHUJ\5HVRXUFHDVVXFKWHUPLVGHILQHGLQ3XEOLF 8WLOLWLHV&RGH6HFWLRQ
RU6HFWLRQ
LL
D3URMHFW¶VRXWSXWGHOLYHUHGWR&RXQWHUSDUW\TXDOLILHVXQGH UWKH UHTXLUHPHQWVRI536
LLL
DOOQHFHVVDU\VWHSVWRDOORZWKH5HQHZDEOH(QHUJ\&UHGLWV WUDQVIHUUHGWR&RXQWHUSDUW\WREHWUDFNHGLQWKH:5(*,6ZLOOEH WDNHQSULRUWRWKHILUVWGHOLYHU\XQGHUWKLV$JUHHPHQW
LY
LWKDVWKHULJKWWRVHOODOOULJKWWLWOHDQGLQWHUHVWLQ WKH3URGXFW DJUHHGWREHGHOLYHUHGKHUHXQGHU
Agenda Page 60
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
Y
6&(KDVQRWVROGWKH3URGXFWWREHGHOLYHUHGXQGHUWKLV$JUH HPHQW WRDQ\RWKHUSHUVRQRUHQWLW\
YL
DWWKHWLPHRIGHOLYHU\DOOULJKWVWLWOHDQGLQWHUHVWLQ WKH3URGXFWWR EHGHOLYHUHGXQGHUWKLV$JUHHPHQWDUHIUHHDQGFOHDURIDOOOLHQV WD[HVFODLPVVHFXULW\LQWHUHVWVRURWKHUHQFXPEUDQFHVRIDQ\NLQG
ZKDWVRHYHU
YLL
WKHHOHFWULFHQHUJ\JHQHUDWHGZLWKWKH*UHHQ$WWULEXWHVGH OLYHUHG XQGHUWKLV$JUHHPHQWZDVQRWDQGZLOOQRWEHVHSDUDWHO\VROG PDUNHWHGUHSRUWHGRURWKHUZLVHUHSUHVHQWHGDVUHQHZDEOHHQHUJ\ UHQHZDEOHHOHFWULFLW\FOHDQHQHUJ\]HURHPLVVLRQHQHUJ\RULQDQ\ VLPLODUPDQQHU
DQG
YLLL
D3URMHFWHLWKHU
$
KDVDILUVWSRLQWRILQWHUFRQQHFWLRQ ZLWKD
&DOLIRUQLDEDODQFLQJDXWKRULW\RUDILUVWSRLQWRILQWHUFRQQHFWLRQ ZLWKGLVWULEXWLRQIDFLOLWLHVXVHGWRVHUYHHQGXVHUVZLWKLQD&DOLIRUQLD EDODQFLQJDXWKRULW\DUHD
RU
%
KDVDQDJUHHPHQWWRG\QDPLFDOO\
WUDQVIHUHOHFWULFLW\WRD&DOLIRUQLDEDODQFLQJDXWKRULW\ RULI
$
RU
%
DUHQRWDSSOLFDEOHD3URMHFWDQGWKHDJUHHPHQWH[HFXWHGE\6&( IRUVXFK3URMHFWPHHWWKHFRQGLWLRQVLQ&DOLIRUQLD3XEOLF8WLOLWLHV &RGH6HFWLRQ
G
E
6&(DQGLIDSSOLFDEOHLWVVXFFHVVRUVUHSUHVHQWVDQGZDUUD QWWKDW WKURXJKRXWWKH'HOLYHU\3HULRGWKH5HQHZDEOH(QHUJ\&UHGLWVWUDQVIHUUHGWR &RXQWHUSDUW\FRQIRUPWRWKHGHILQLWLRQDQGDWWULEXWHVUHTXLUHGIRU FRPSOLDQFHZLWK536DVVHWIRUWKLQ&38&'HFLVLRQDQGDVPD\ EHPRGLILHGE\VXEVHTXHQWGHFLVLRQRIWKH&38&RUE\VXEVHTXHQW OHJLVODWLRQ
6&(PDNHVQRUHSUHVHQWDWLRQZDUUDQW\RUFRYHQDQWZLWKUHVSHFW WRDQ\SRUWIROLRFRQWHQW FDWHJRU\GHVLJQDWLRQSXUVXDQWWR&DOLIRUQLD3XEOLF8WLOLWLHV&R GH6HFWLRQ
QRUDQ\
HOLJLELOLW\RIWKH3URGXFWWRTXDOLI\DVH[FHVVSURFXUHPHQWSXU VXDQWWR&DOLIRUQLD3XEOLF 8WLOLWLHV&RGH6HFWLRQ
D
%
7RWKHH[WHQWDFKDQJHLQODZRFFXUVDIWHUH[HFXWLRQRIWKLV$JUHHPHQWWKDWFDXVHV6&(¶V UHSUHVHQWDWLRQDQGZDUUDQW\LQ6HFWLRQV
D
L
LL
DQG6HFWLRQ
E
WREHPDWHULDOO\
IDOVHRUPLVOHDGLQJLWVKDOOQRWEHDQ(YHQWRI'HIDXOWLI6&(KDVXVHGFRPPHUFLDOO\ UHDVRQDEOHHIIRUWVWRFRPSO\ZLWKVXFKFKDQJHLQODZ³&RPPHUFLDOO\UHDVRQDEOHHIIRUWV´ VKDOOQRWUHTXLUH6&(WRLQFXURXWRISRFNHWH[SHQVHVLQH[FHVVRILQWKH DJJUHJDWHLQDQ\RQHFDOHQGDU\HDU
>&RXQWHUSDUW\¶V5HSUHVHQWDWLRQV:DUUDQWLHVDQG&RYHQDQWVLI *RYHUQPHQWDO(QWLW\RU3XEOLF3RZHU6\VWHP
D
2QWKH(IIHFWLYH'DWHDQGDVDFRQGLWLRQWRWKHREOLJDWLRQV RI6&(XQGHU Agenda Page 61
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
WKLV$JUHHPHQW&RXQWHUSDUW\VKDOOSURYLGH6&(FHUWLILHGFRSLHVRIDOO RUGLQDQFHVUHVROXWLRQVSXEOLFQRWLFHVDQGRWKHUGRFXPHQWVHYLGHQFLQJWKH QHFHVVDU\DXWKRUL]DWLRQVZLWKUHVSHFWWRWKHH[HFXWLRQGHOLYHU\DQG SHUIRUPDQFHE\&RXQWHUSDUW\RIWKLV$JUHHPHQW
E
$VRIWKH(IIHFWLYH'DWHDQGFRQWLQXLQJWKURXJKWKH7HUPZL WKUHVSHFWWR WKLV$JUHHPHQW&RXQWHUSDUW\UHSUHVHQWVDQGZDUUDQWVWRWKH6&(
L
DOODFWV
QHFHVVDU\WRWKHYDOLGH[HFXWLRQGHOLYHU\DQGSHUIRUPDQFHRIWKLV $JUHHPHQWLQFOXGLQJZLWKRXWOLPLWDWLRQFRPSHWLWLYHELGGLQJSXEOLFQRWLFH HOHFWLRQUHIHUHQGXPSULRUDSSURSULDWLRQRURWKHUUHTXLUHGSURFHGXUHVKDVRU ZLOOEHWDNHQDQGSHUIRUPHGDVUHTXLUHGXQGHUWKH$FWDQGWKH &RXQWHUSDUW\¶VRUGLQDQFHVE\ODZVRURWKHUUHJXODWLRQV LL
DOOSHUVRQV
PDNLQJXSWKHJRYHUQLQJERG\RIWKH&RXQWHUSDUW\DUHWKHGXO\HOHFWHGRU DSSRLQWHGLQFXPEHQWVLQWKHLUSRVLWLRQVDQGKROGVXFKSRVLWLRQVLQJRRG VWDQGLQJLQDFFRUGDQFHZLWKWKH$FWDQGRWKHUDSSOLFDEOHODZ LLL
HQWU\LQWR
DQGSHUIRUPDQFHRIWKLV$JUHHPHQWE\&RXQWHUSDUW\DUHIRUDSURSHUSXEOLF SXUSRVHZLWKLQWKHPHDQLQJRIWKH$FWDQGDOORWKHUUHOHYDQWFRQVWLWXWLRQDO RUJDQLFRURWKHUJRYHUQLQJGRFXPHQWVDQGDSSOLFDEOHODZ LY
WKH7HUPRI
WKLV$JUHHPHQWGRHVQRWH[WHQGEH\RQGDQ\DSSOLFDEOHOLPLWDWLRQLPSRVHG E\WKH$FWRURWKHUUHOHYDQWFRQVWLWXWLRQDORUJDQLFRURWKHUJRYHUQLQJ GRFXPHQWVDQGDSSOLFDEOHODZ
Y
WKH&RXQWHUSDUW\¶VREOLJDWLRQVWRPDNH
SD\PHQWVKHUHXQGHUDUHXQVXERUGLQDWHGREOLJDWLRQVDQGVXFKSD\PHQWVDUH
$
RSHUDWLQJDQGPDLQWHQDQFHFRVWV
RUVLPLODUGHVLJQDWLRQ
ZKLFKHQMR\
ILUVWSULRULW\RISD\PHQWDWDOOWLPHVXQGHUDQ\DQGDOOERQGRUGLQDQFHVRU LQGHQWXUHVWRZKLFKLWLVDSDUW\WKH$FWDQGDOORWKHUUHOHYDQWFRQVWLWXWLRQDO RUJDQLFRURWKHUJRYHUQLQJGRFXPHQWVDQGDSSOLFDEOHODZRU %
RWKHUZLVH
QRWVXEMHFWWRDQ\SULRUFODLPXQGHUDQ\DQGDOOERQGRUGLQDQFHVRU LQGHQWXUHVWRZKLFKLWLVDSDUW\WKH$FWDQGDOORWKHUUHOHYDQWFRQVWLWXWLRQDO RUJDQLFRURWKHUJRYHUQLQJGRFXPHQWVDQGDSSOLFDEOHODZDQGDUHDYDLODEOH ZLWKRXWOLPLWDWLRQRUGHGXFWLRQWRVDWLVI\DOO&RXQWHUSDUW\¶VREOLJDWLRQV KHUHXQGHURU
&
DUHWREHPDGHVROHO\IURPD6SHFLDO)XQG
YL
HQWU\LQWR
DQGSHUIRUPDQFHRIWKLV$JUHHPHQWDQGE\WKH&RXQWHUSDUW\ZLOOQRW DGYHUVHO\DIIHFWWKHH[FOXVLRQIURPJURVVLQFRPHIRUIHGHUDOLQFRPHWD[ SXUSRVHVRILQWHUHVWRQDQ\REOLJDWLRQRI&RXQWHUSDUW\RWKHUZLVHHQWLWOHGWR VXFKH[FOXVLRQDQG
YLL
REOLJDWLRQVWRPDNHSD\PHQWVKHUHXQGHUGRQRW
FRQVWLWXWHDQ\NLQGRILQGHEWHGQHVVRI&RXQWHUSDUW\RUFUHDWHDQ\NLQGRI OLHQRQRUVHFXULW\LQWHUHVWLQDQ\SURSHUW\RUUHYHQXHVRI&RXQWHUSDUW\ ZKLFKLQHLWKHUFDVHLVSURVFULEHGE\DQ\SURYLVLRQRIWKH$FWRUDQ\RWKHU UHOHYDQWFRQVWLWXWLRQDORUJDQLFRURWKHUJRYHUQLQJGRFXPHQWVDQGDSSOLFDEOH ODZDQ\RUGHURUMXGJPHQWRIDQ\FRXUWRURWKHUDJHQF\RIJRYHUQPHQW DSSOLFDEOHWRLWRULWVDVVHWVRUDQ\FRQWUDFWXDOUHVWULFWLRQELQGLQJRQRU DIIHFWLQJLWRUDQ\RILWVDVVHWV
F
&RXQWHUSDUW\ZDUUDQWVDQGFRYHQDQWVWKDWZLWKUHVSHFWWRLWV FRQWUDFWXDO REOLJDWLRQVKHUHXQGHUDQGSHUIRUPDQFHWKHUHRILWZLOOQRWFODLPLPPXQLW\ RQWKHJURXQGVRIVRYHUHLJQW\RUVLPLODUJURXQGVZLWKUHVSHFWWRLWVHOIRULWV Agenda Page 62
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
UHYHQXHVRUDVVHWVIURP
L
VXLW
LL
MXULVGLFWLRQRIFRXUW
LQFOXGLQJDFRXUW
ORFDWHGRXWVLGHWKHMXULVGLFWLRQRILWVRUJDQL]DWLRQ
LLL
UHOLHIE\ZD\RI
LQMXQFWLRQRUGHUIRUVSHFLILFSHUIRUPDQFHRUUHFRYHU\RISURSHUW\ LY
DWWDFKPHQWRIDVVHWVRU
Y
H[HFXWLRQRUHQIRUFHPHQWRIDQ\MXGJPHQW
G
:LWKUHVSHFWWRWKHWUDQVDFWLRQVFRQWHPSODWHGXQGHUWKLV$JU HHPHQW &RXQWHUSDUW\VKDOOHLWKHU
L
KDYHFUHDWHGDQGVHWDVLGHD6SHFLDO)XQGRU
LL
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¶V SD\PHQWREOLJDWLRQVKHUHXQGHUWKURXJKRXWWKHHQWLUH'HOLYHU\3HULRG@{SCE Note: Section 4.3 is only included if Counterparty is a Governmental Entity or Public Power System.}
&38&$SSURYDO
D
:LWKLQQLQHW\
GD\VDIWHUWKH(IIHFWLYH'DWHLI&38&$S SURYDORIWKLV $JUHHPHQWLVUHTXLUHGE\WKH&38&6&(VKDOOILOHZLWKWKH&38& WKH DSSURSULDWH UHTXHVW IRU &38& $SSURYDO RI WKLV $JUHHPHQW 6&( VKDOO H[SHGLWLRXVO\VHHN&38&$SSURYDOLQFOXGLQJSURPSWO\UHVSRQGLQJ WRDQ\ UHTXHVWVIRULQIRUPDWLRQUHODWHGWRWKHUHTXHVWIRU&38&$SSURY DO$V UHTXHVWHGE\6&(&RXQWHUSDUW\VKDOOXVHFRPPHUFLDOO\UHDVRQDEOHHIIRUWVWR VXSSRUW6&(LQREWDLQLQJ&38&$SSURYDO6&(KDVQRREOLJDWLRQW RVHHN UHKHDULQJ RU WR DSSHDO D &38& GHFLVLRQ ZKLFK IDLOV WR SURYLGH &38& $SSURYDORIWKLV$JUHHPHQWRUZKLFKFRQWDLQVILQGLQJVUHTXLUHG IRU&38& $SSURYDOZLWKFRQGLWLRQVRUPRGLILFDWLRQVXQDFFHSWDEOHWR6&(
E
(LWKHU3DUW\LQLWVVROHGLVFUHWLRQRQRUEHIRUHWKHQLQHW LHWK
WK
GD\DIWHU
6&(ILOHVWKHUHTXHVWIRU&38&$SSURYDOKDVWKHULJKWWRWHUPL QDWHWKLV $JUHHPHQWXSRQQRWLFHLQDFFRUGDQFHZLWK6HFWLRQ
RIWKLV$J UHHPHQW
ZKLFKVXFKQRWLFHZLOOEHHIIHFWLYHRQH
%XVLQHVV'D\DIWHUVXFKQRWLFHLV
JLYHQLI
L
WKH&38&LVVXHVDILQDODQGQRQDSSHDODEOHRUGHUUHJDUGLQJWKLV $JUHHPHQWZKLFKFRQWDLQVFRQGLWLRQVRUPRGLILFDWLRQVXQDFFHSWDEOHWRHLWKHU 3DUW\RU
LL
&38&$SSURYDORIWKLV$JUHHPHQWKDVQRWEHHQREWDLQHGRQRU EHIRUHWKHGDWHWKDWLVVL[W\
GD\VDIWHUWKHGDWHWKDW6&(ILOHVWKHUHTXHVW
IRU&38&$SSURYDO
Agenda Page 63
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
F
1RWZLWKVWDQGLQJDQ\RWKHUSURYLVLRQLQWKLV$JUHHPHQW6&(Z LOOKDYHQR REOLJDWLRQWRWUDQVIHU3URGXFWWR&RXQWHUSDUW\DQG&RXQWHUSDUW\VKDOOKDYHQR REOLJDWLRQWRUHFHLYHRUSD\IRUWKH3URGXFWXQOHVVDQGXQWLO6 &(DQG &RXQWHUSDUW\KDYHREWDLQHGRUZDLYHGLQWKHLUVROHGLVFUHWLRQLIUHTXLUHGE\ WKH&38&&38&$SSURYDORIWKLV$JUHHPHQW
G
)DLOXUHWRREWDLQ&38&$SSURYDOLQDFFRUGDQFHZLWKWKLVSURY LVLRQZLOOQRW EHGHHPHGWREHRUFDXVHDQ(YHQWRI'HIDXOWE\HLWKHU3DUW\1R7HUPLQDWLRQ 3D\PHQWZLOOEHGXHRURZLQJE\HLWKHU3DUW\XSRQWHUPLQDWLRQR IWKLV $JUHHPHQWGXHVROHO\WRIDLOXUHWRREWDLQ&38&$SSURYDO $57,&/( (9(1762)'()$8/75(0(',(6
(YHQWVRI'HIDXOW
$Q³(YHQWRI'HIDXOW´VKDOOPHDQZLWKUHVSHFWWRD3DUW\ D³'HIDXOWLQJ
3DUW\´
WKHRFFXUUHQFHRIDQ\RIWKHIROORZLQJ
D
WKHIDLOXUHWRPDNHZKHQGXHDQ\SD\PHQWUHTXLUHGSXUVXDQW WRWKLV $JUHHPHQWLIVXFKIDLOXUHLVQRWUHPHGLHGZLWKLQWKUHH
%XVLQHVV'D\V
DIWHUZULWWHQQRWLFH
E
DQ\UHSUHVHQWDWLRQRUZDUUDQW\PDGHE\VXFK3DUW\KHUHLQLV IDOVHRU PLVOHDGLQJLQDQ\PDWHULDOUHVSHFWZKHQPDGHRUZKHQGHHPHGPDGHRU
UHSHDWHG
F
WKHIDLOXUHWRSHUIRUPDQ\PDWHULDOFRYHQDQWRUREOLJDWLRQV HWIRUWKLQWKLV $JUHHPHQW
H[FHSWWRWKHH[WHQWFRQVWLWXWLQJDVHSDUDWH(YHQWRI'HIDXOW LI
VXFKIDLOXUHLVQRWUHPHGLHGZLWKLQWKUHH
%XVLQHVV'D\VDIWHUZULWWHQ
QRWLFH
G
VXFK3DUW\EHFRPHV%DQNUXSW
H
WKHIDLOXUHRIVXFK3DUW\WRVDWLVI\WKHFUHGLWZRUWKLQHVVFR OODWHUDO UHTXLUHPHQWVDJUHHGWRSXUVXDQWWR$UWLFOHKHUHRIRUDQ\RWKHUFUHGLW DUUDQJHPHQWUHODWHGWRWKLV$JUHHPHQW
I
D0HUJHU(YHQWRFFXUVZLWKUHVSHFWWRVXFK3DUW\
J
WKHRFFXUUHQFHDQGFRQWLQXDWLRQRI
L
DGHIDXOWHYHQWRIG HIDXOWRURWKHU
VLPLODUFRQGLWLRQRUHYHQWLQUHVSHFWRIVXFK3DUW\XQGHURQHRUPRUH DJUHHPHQWVRULQVWUXPHQWVLQGLYLGXDOO\RUFROOHFWLYHO\UHODWLQJWR LQGHEWHGQHVVIRUERUURZHGPRQH\LQDQDJJUHJDWHDPRXQWRIQRWOHVVWKDQ WKHDSSOLFDEOH&URVV'HIDXOW$PRXQWZKLFKUHVXOWVLQVXFKLQGHEWHGQHVV EHFRPLQJRUEHFRPLQJFDSDEOHDWVXFKWLPHRIEHLQJGHFODUHGLPPHGLDWHO\ GXHDQGSD\DEOHRU
LL
DGHIDXOWE\VXFK3DUW\LQPDNLQJRQWKHGXHGDWH
WKHUHIRURQHRUPRUHSD\PHQWVLQGLYLGXDOO\RUFROOHFWLYHO\LQDQDJJUHJDWH DPRXQWRIQRWOHVVWKDQWKHDSSOLFDEOH&URVV'HIDXOW$PRXQW &RXQWHUSDUW\¶V&URVV'HIDXOW$PRXQWVKDOOEH[insert amount is words and Agenda Page 64
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
numerically]6&(¶V&URVV'HIDXOW$PRXQWVKDOOEH[insert amount is words and numerically]
K
DQHYHQWRIGHIDXOWRFFXUV
KRZVRHYHUGHWHUPLQHG
XQGHUD6S HFLILHG(QHUJ\
7UDQVDFWLRQZLWKUHVSHFWWRVXFK3DUW\DQGDIWHUJLYLQJHIIHFWWRDQ\ DSSOLFDEOHQRWLFHUHTXLUHPHQWRUJUDFHSHULRGWKHUHRFFXUVDOLTXLGDWLRQRI DQDFFHOHUDWLRQRIREOLJDWLRQVXQGHURUDQHDUO\WHUPLQDWLRQRIWKDW 6SHFLILHG(QHUJ\7UDQVDFWLRQ
RU
L
WKH3DUW\GLVDIILUPVGLVFODLPVUHSXGLDWHVRUUHMHFWVLQ ZKROHRULQSDUWRU FKDOOHQJHVWKHYDOLGLW\RIWKLV$JUHHPHQWH[HFXWHGDQGGHOLYHUHGE\WKDW 3DUW\
'HFODUDWLRQRIDQ(DUO\7HUPLQDWLRQ'DWHDQG&DOFXODWLRQRI6HWWOHPHQW $PRXQWV
D
,IDQ(YHQWRI'HIDXOWZLWKUHVSHFWWRD'HIDXOWLQJ3DUW\VK DOOKDYHRFFXUUHG DQGEHFRQWLQXLQJWKHRWKHU3DUW\
WKH³ 1RQ'HIDXOWLQJ3DUW\´
VKDOOKDYH
WKHULJKWWR
L
GHVLJQDWHDGD\DQGWLPHRIGD\QRHDUOLHUWK DQWKHGD\VXFK QRWLFHLVHIIHFWLYHDQGQRODWHUWKDQWZHQW\
GD\VDIWHUVX FKQRWLFHLV
HIIHFWLYH DV DQ HDUO\ WHUPLQDWLRQ GDWH
³(DUO\ 7HUPLQDWLRQ 'DWH´
WR
DFFHOHUDWH DOO DPRXQWV RZLQJ EHWZHHQ WKH 3DUWLHV DQG WR OLTXLGDWH DQG WHUPLQDWHWKLV$JUHHPHQW
LL
ZLWKKROGDQ\SD\PHQWVGXHWRWKH 'HIDXOWLQJ
3DUW\ XQGHU WKLV $JUHHPHQW DQG
LLL
VXVSHQG SHUIRUPDQFH 7KH 1RQ
'HIDXOWLQJ3DUW\VKDOOFDOFXODWHLQDFRPPHUFLDOO\UHDVRQDEOH PDQQHUD 6HWWOHPHQW$PRXQWIRUWKLV$JUHHPHQWDVRIWKH(DUO\7HUPLQDWLRQ'DWHDQG WKH 7HUPLQDWLRQ 3D\PHQW SD\DEOH LQ FRQQHFWLRQ ZLWK WKLV 7HUPLQDWHG $JUHHPHQWVKDOOEHFDOFXODWHGLQDFFRUGDQFHZLWKWKLV6HFWLRQ DQGZLWK 6HFWLRQEHORZ
E
7KH 1RQ'HIDXOWLQJ 3DUW\ VKDOO GHWHUPLQH LWV *DLQV DQG /RVVHV E\ GHWHUPLQLQJWKH0DUNHW4XRWDWLRQ$YHUDJH3ULFHIRUWKHWUDQVDFW LRQVXQGHU WKLV$JUHHPHQW,QWKHHYHQWWKH1RQ'HIDXOWLQJ3DUW\LVQRWDE OHDIWHU FRPPHUFLDOO\UHDVRQDEOHHIIRUWVWRREWDLQWKH0DUNHW4XRWDWLRQ $YHUDJH 3ULFHWKHQWKH1RQ'HIDXOWLQJ3DUW\VKDOOFDOFXODWHLWV*DLQVDQG/RVVHVIRU WKHWUDQVDFWLRQVXQGHUWKLV$JUHHPHQWLQDFRPPHUFLDOO\UHDVRQD EOHPDQQHU E\ FDOFXODWLQJ WKH DULWKPHWLF PHDQ RI DW OHDVW WKUHH
)RUZDUG 3ULFH
$VVHVVPHQWV IRU WUDQVDFWLRQV VXEVWDQWLDOO\ VLPLODU WR WKH WUDQVDFWLRQV FRQWHPSODWHGXQGHUWKLV$JUHHPHQW,QWKHHYHQWWKH1RQ'HIDXOWLQJ3DUW\LV QRWDEOHDIWHUFRPPHUFLDOO\UHDVRQDEOHHIIRUWVWRREWDLQDWOH DVWWKUHH
)RUZDUG3ULFH$VVHVVPHQWVWKHQWKH1RQ'HIDXOWLQJ3DUW\VKDOOFDOFXODWHLWV *DLQVDQG/RVVHVLQDFRPPHUFLDOO\UHDVRQDEOHPDQQHUE\UHIHUHQ FHWR LQIRUPDWLRQVXSSOLHGWRLWE\RQHRUPRUHWKLUGSDUWLHVLQFOXGL QJZLWKRXW OLPLWDWLRQTXRWDWLRQV
HLWKHUILUPRULQGLFDWLYH
RIUHOHYDQW UDWHVSULFHV
\LHOGV\LHOGFXUYHVYRODWLOLWLHVVSUHDGVRURWKHUUHOHYDQWPDUNHWGDWDLQWKH UHOHYDQWPDUNHWV
SURYLGHGKRZHYHUWKDWWKHSURYLGHURIVXFK LQIRUPDWLRQ VKDOOQRWEHDQ$IILOLDWHRIHLWKHU3DUW\2QO\LQWKHHYHQWWKH1RQ'HIDXOWLQJ Agenda Page 65
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
3DUW\LVQRWDEOHDIWHUXVLQJFRPPHUFLDOO\UHDVRQDEOHHIIRUWVWRREWDLQVXFK WKLUGSDUW\LQIRUPDWLRQWKHQWKH1RQ'HIDXOWLQJ3DUW\PD\FDOFXODWHLWV*DLQV DQG/RVVHVLQDFRPPHUFLDOO\UHDVRQDEOHPDQQHUXVLQJUHOHYDQWPDUNHWGDWD LWKDVDYDLODEOHWRLWLQWHUQDOO\
7HUPLQDWLRQ3D\PHQW
7KH1RQ'HIDXOWLQJ3DUW\VKDOOQHWRXW
D
WKH6HWWOHPHQW$PRXQWGXHWRWKH
'HIDXOWLQJ3DUW\LIDQ\SOXVDWWKHRSWLRQRIWKH1RQ'HIDXOWLQJ3DUW\DQ\FDVK RURWKHUIRUPRIVHFXULW\WKHQDYDLODEOHWRWKH1RQ'HIDXOWLQJ3DUW\SXUVXDQWWR $UWLFOHSOXVDQ\RUDOORWKHUDPRXQWVGXHWRWKH'HIDXOWLQJ3DUW\XQGHUWKLV $JUHHPHQWDJDLQVW
E
WKH6HWWOHPHQW$PRXQWGXHWRWKH1RQ'HIDXOWLQJ3DUW\LI DQ\DQ\FDVKWKHQDYDLODEOHWRWKH'HIDXOWLQJ3DUW\SXUVXDQWWR$UWLFOHSOXVDQ\ RUDOORWKHUDPRXQWVGXHWRWKH1RQ'HIDXOWLQJ3DUW\XQGHUWKLV$JUHHPHQWVR WKDWDOOVXFKDPRXQWVVKDOOEHQHWWHGRXWWRDVLQJOHOLTXLGDWHGDPRXQW WKH
³7HUPLQDWLRQ3D\PHQW´
SD\DEOHE\RQH3DUW\WRWKHRWKHU7KH7HUPLQDWLRQ
3D\PHQWVKDOOEHGXHWRRUGXHIURPWKH1RQ'HIDXOWLQJ3DUW\DVDSSURSULDWH 1RWLFHRI3D\PHQWRI7HUPLQDWLRQ3D\PHQW
$VVRRQDVSUDFWLFDEOHDIWHUDOLTXLGDWLRQEXWLQQRHYHQWPRUHWKDQILIWHHQ
%XVLQHVV'D\VIROORZLQJWKH(DUO\7HUPLQDWLRQ'DWHQRWLFHVKDOOEHJLYHQE\WKH 1RQ'HIDXOWLQJ3DUW\WRWKH'HIDXOWLQJ3DUW\RIWKHDPRXQWRIWKH7HUPLQDWLRQ 3D\PHQWDQGZKHWKHUWKH7HUPLQDWLRQ3D\PHQWLVGXHWRRUGXHIURPWKH1RQ 'HIDXOWLQJ3DUW\7KHQRWLFHVKDOOLQFOXGHDZULWWHQVWDWHPHQWH[SODLQLQJLQ UHDVRQDEOHGHWDLOWKHFDOFXODWLRQRIVXFKDPRXQW7KH7HUPLQDWLRQ3D\PHQWVKDOO EHPDGHE\WKH3DUW\WKDWRZHVLWZLWKLQWZR
%XVLQHVV'D\VDIWHUVXFKQRWLFH
LVHIIHFWLYH
'LVSXWHV:LWK5HVSHFWWR7HUPLQDWLRQ3D\PHQW
,IWKH'HIDXOWLQJ3DUW\GLVSXWHVWKH1RQ'HIDXOWLQJ3DUW\¶VFDOFXODWLRQRIWKH 7HUPLQDWLRQ3D\PHQWLQZKROHRULQSDUWWKH'HIDXOWLQJ3DUW\VKDOOZLWKLQWZR
%XVLQHVV'D\VRIUHFHLSWRI1RQ'HIDXOWLQJ3DUW\¶VFDOFXODWLRQRIWKH 7HUPLQDWLRQ3D\PHQWSURYLGHWRWKH1RQ'HIDXOWLQJ3DUW\DGHWDLOHGZULWWHQ H[SODQDWLRQRIWKHEDVLVIRUVXFKGLVSXWH
SURYLGHGKRZHYHUWKDWLIWKH
7HUPLQDWLRQ3D\PHQWLVGXHIURPWKH'HIDXOWLQJ3DUW\WKH'HIDXOWLQJ3DUW\VKDOO ILUVWWUDQVIHU3HUIRUPDQFH$VVXUDQFHWRWKH1RQ'HIDXOWLQJ3DUW\LQDQDPRXQW HTXDOWRWKH7HUPLQDWLRQ3D\PHQW
&ORVHRXW6HWRIIV
$IWHUFDOFXODWLRQRID7HUPLQDWLRQ3D\PHQWLQDFFRUGDQFHZLWK6HFWLRQLIWKH 'HIDXOWLQJ3DUW\ZRXOGEHRZHGWKH7HUPLQDWLRQ3D\PHQWWKH1RQ'HIDXOWLQJ 3DUW\VKDOOEHHQWLWOHGDWLWVRSWLRQDQGLQLWVGLVFUHWLRQWRVHWRIIDJDLQVWVXFK 7HUPLQDWLRQ3D\PHQWDQ\DPRXQWVGXHDQGRZLQJE\WKH'HIDXOWLQJ3DUW\WRWKH Agenda Page 66
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
1RQ'HIDXOWLQJ3DUW\XQGHUDQ\RWKHUDJUHHPHQWVLQVWUXPHQWVRUXQGHUWDNLQJV EHWZHHQWKH'HIDXOWLQJ3DUW\DQGWKH1RQ'HIDXOWLQJ3DUW\ZLWKUHVSHFWWRWKH 6SHFLILHG(QHUJ\7UDQVDFWLRQV7KHUHPHG\SURYLGHGIRULQWKLV6HFWLRQVKDOOEH ZLWKRXWSUHMXGLFHDQGLQDGGLWLRQWRDQ\ULJKWRIVHWRIIFRPELQDWLRQRIDFFRXQWV OLHQRURWKHUULJKWWRZKLFKDQ\3DUW\LVDWDQ\WLPHRWKHUZLVHHQWLWOHG ZKHWKHUE\
RSHUDWLRQRIODZFRQWUDFWRURWKHUZLVH
1RWZLWKVWDQGLQJDQ\WKLQJWRWKHFRQWUDU\
FRQWDLQHGLQWKLV$JUHHPHQWRULQDQ\RWKHUDJUHHPHQWLQVWUXPHQWRU XQGHUWDNLQJEHWZHHQWKH3DUWLHVZLWKUHVSHFWWRD6SHFLILHG(QHUJ\7UDQVDFWLRQLI DQ(DUO\7HUPLQDWLRQ'DWHKDVEHHQGHVLJQDWHGSXUVXDQWWR6HFWLRQWKHQLQ DGGLWLRQWRWKHRWKHUUHPHGLHVSURYLGHGLQWKLV$JUHHPHQWWKH1RQ'HIDXOWLQJ 3DUW\PD\DFFHOHUDWHOLTXLGDWHDQGWHUPLQDWHDOOEXWQRWOHVVWKDQDOO6SHFLILHG (QHUJ\7UDQVDFWLRQVEHWZHHQWKH3DUWLHV
6XVSHQVLRQRI3HUIRUPDQFH
1RWZLWKVWDQGLQJDQ\RWKHUSURYLVLRQRIWKLV$JUHHPHQWLI D
DQ(YHQWRI'HIDXOW
RU
E
D3RWHQWLDO(YHQWRI'HIDXOWVKDOOKDYHRFFXUUHGDQGEHFRQWLQXLQJWKH 1RQ'HIDXOWLQJ3DUW\XSRQZULWWHQQRWLFHWRWKH'HIDXOWLQJ3DUW\VKDOOKDYHWKH ULJKW
L
WRVXVSHQGSHUIRUPDQFHXQGHUWKLV$JUHHPHQW
SURYLGHGKRZHYHULQQR
HYHQWVKDOODQ\VXFKVXVSHQVLRQFRQWLQXHIRUORQJHUWKDQWHQ
%XVLQHVV'D\V
XQOHVVDQ(DUO\7HUPLQDWLRQ'DWHVKDOOKDYHEHHQGHFODUHGDQGQRWLFHWKHUHRI SXUVXDQWWR6HFWLRQJLYHQDQG
LL
WRWKHH[WHQWDQ(YHQWRI'HIDXOWVKDOOKDYH
RFFXUUHGDQGEHFRQWLQXLQJWRH[HUFLVHDQ\UHPHG\DYDLODEOHDWODZRULQHTXLW\ $57,&/( /,0,7$7,216
7+(5( ,6 12 :$55$17< 2) 0(5&+$17$%,/,7< 25 ),71(66 )25 $ 3$57,&8/$5385326($1'$1<$1'$//,03/,(':$55$17,(6$5( ',6&/$,0('7+(3$57,(6&21),507+$77+((;35(665(0(',(6$1' 0($685(62)'$0$*(63529,'(',17+,6$*5((0(176$7,6)<7+( (66(17,$/ 385326(6 +(5(2) )25 %5($&+ 2) $1< 3529,6,21 )25 :+,&+$1(;35(665(0('<250($685(2)'$0$*(6,63529,'(' 68&+(;35(665(0('<250($685(2)'$0$*(66+$//%(7+(62/( $1'(;&/86,9(5(0('<7+(2%/,*25¶6/,$%,/,7<6+$//%(/,0,7(' $6 6(7 )257+ ,1 68&+ 3529,6,21 $1' $// 27+(5 5(0(',(6 25 '$0$*(6$7/$:25,1(48,7<$5(:$,9(',)125(0('<250($685( 2)'$0$*(6,6(;35(66/<3529,'('+(5(,17+(2%/,*25¶6/,$%,/,7< 6+$//%(/,0,7('72',5(&7$&78$/'$0$*(621/<68&+',5(&7 $&78$/'$0$*(66+$//%(7+(62/($1'(;&/86,9(5(0('<$1'$// 27+(5 5(0(',(6 25 '$0$*(6 $7 /$: 25 ,1 (48,7< $5( :$,9(' 127:,7+67$1',1*$1<7+,1*,17+,6$*5((0(17727+(&2175$5< 1(,7+(53$57<6+$//%(/,$%/()25&216(48(17,$/,1&,'(17$/ 381,7,9((;(03/$5<25,1',5(&7'$0$*(6/267352),762527+(5 %86,1(66,17(55837,21'$0$*(6%<67$787(,1725725&2175$&7 81'(5$1<,1'(01,7<3529,6,216(7)257+,17+,6$*5((0(1725 27+(5:,6(
3529,'('+2:(9(57+$7127+,1*,17+,63529,6,21
Agenda Page 67
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
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
$57,&/( &5(',7$1'&2//$7(5$/5(48,5(0(176
)LQDQFLDO,QIRUPDWLRQ
,IUHTXHVWHGE\6&(WKH&RXQWHUSDUW\VKDOOGHOLYHU
D
$QQXDO5HSRUWV:LWKLQRQHKXQGUHGWZHQW\
GD\VIROORZL QJWKHHQGRI
HDFKILVFDO\HDUDFRS\RILWVDQQXDOUHSRUWFRQWDLQLQJDXGLWHGFRQVROLGDWHG ILQDQFLDOVWDWHPHQWVIRUVXFKILVFDO\HDU,IRQO\XQDXGLWHGILQDQFLDO VWDWHPHQWVDUHDYDLODEOHWKH\PXVWLQFOXGHD5HVSRQVLEOH2IILFHU FHUWLILFDWLRQDWWHVWLQJWRWKHDFFXUDF\RIVXFKVWDWHPHQWV
E
4XDUWHUO\5HSRUWV:LWKLQVL[W\
GD\VDIWHUWKHHQGRIH DFKRILWVILUVW
WKUHH
ILVFDOTXDUWHUVRIHDFKILVFDO\HDUDFRS\RILWVTXDUWHUO\UHSRUW FRQWDLQLQJXQDXGLWHGFRQVROLGDWHGILQDQFLDOVWDWHPHQWVIRUVXFKILVFDO TXDUWHU
F
5HSRUWV,QDOOFDVHVWKHUHSRUWVVKDOOEHIRUWKHPRVWUHFH QWDFFRXQWLQJ SHULRGDQGSUHSDUHGLQDFFRUGDQFHZLWKJHQHUDOO\DFFHSWHGDFFRXQWLQJ
SULQFLSOHV
SURYLGHGVKRXOGDQ\VXFKVWDWHPHQWVQRWEHDYDLODEOHRQD WLPHO\EDVLVGXHWRDGHOD\LQSUHSDUDWLRQRUFHUWLILFDWLRQVXFKGHOD\VKDOO QRWEHDQ(YHQWRI'HIDXOWVRORQJDVWKHSURGXFLQJ3DUW\GLOLJHQWO\SXUVXHV WKHSUHSDUDWLRQFHUWLILFDWLRQDQGGHOLYHU\RIWKHVWDWHPHQWV &RXQWHUSDUW\¶V&ROODWHUDO5HTXLUHPHQWV
&RXQWHUSDUW\ZLOOQRWEHUHTXLUHGWRSRVWFROODWHUDODWWKHH[HFXWLRQRIWKLV $JUHHPHQW,IWKHUHLVDQ(YHQWRI'HIDXOWXQGHUWKLV$JUHHPHQWGXHWR &RXQWHUSDUW\¶VIDLOXUHWRPDNHWLPHO\SD\PHQWVIRUWKH3URGXFW6&(PD\UHTXLUH WKDWLQDGGLWLRQWRSD\LQJDOORXWVWDQGLQJDPRXQWVRZHGWR6&(DQGLQ FRQVLGHUDWLRQIRU6&(QRWH[HUFLVLQJLWVULJKWVWRWHUPLQDWHWKLV$JUHHPHQW &RXQWHUSDUW\SRVWFROODWHUDOLQDQDPRXQWDQGIRUPDFFHSWDEOHWR6&(LQLWVVROH GLVFUHWLRQ
Agenda Page 68
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
6&(¶V&ROODWHUDO5HTXLUHPHQWV
8QGHUQRFLUFXPVWDQFHVVKDOO6&(EHUHTXLUHGWRSRVWFROODWHUDOXQGHUWKLV $JUHHPHQW
>8QLIRUP&DOLIRUQLD@&RPPHUFLDO&RGH:DLYHU
7KLV$JUHHPHQWVHWVIRUWKWKHHQWLUHW\RIWKHDJUHHPHQWRIWKH3DUWLHVUHJDUGLQJ FUHGLWFROODWHUDODQGDGHTXDWHDVVXUDQFHV([FHSWDVH[SUHVVO\VHWIRUWKKHUHLQ QHLWKHU3DUW\
D
KDVRUZLOOKDYHDQ\REOLJDWLRQWRSRVWPDUJLQSURYLGHOHWW HUVRIFUHGLW SD\GHSRVLWVPDNHDQ\RWKHUSUHSD\PHQWVRUSURYLGHDQ\RWKHUILQDQFLDO DVVXUDQFHVLQDQ\IRUPZKDWVRHYHUQRU
E
ZLOOKDYHUHDVRQDEOHJURXQGVIRULQVHFXULW\ZLWKUHVSHFWWR WKH FUHGLWZRUWKLQHVVRID3DUW\WKDWLVFRPSO\LQJZLWKWKHUHOHYDQWSURYLVLRQV RI$UWLFOHRIWKLV$JUHHPHQW
DQG
DOOLPSOLHGULJKWVUHODWLQJWRILQDQFLDODVVXUDQFHVDULVLQJIURP6HFWLRQ> RI
WKH8QLIRUP@>
RIWKH&DOLIRUQLD@&RPPHUFLDO&RGHRUFDVHODZDSSO\LQJ VLPLODUGRFWULQHVDUHKHUHE\ZDLYHG
$57,&/( 0$5.(7%$6('5$7($87+25,7<$1'*29(510(17$/ &+$5*(6
&RRSHUDWLRQ
(DFK3DUW\VKDOOXVHUHDVRQDEOHHIIRUWVWRLPSOHPHQWWKHSURYLV LRQVRIDQGWR DGPLQLVWHUWKLV$JUHHPHQWLQDFFRUGDQFHZLWKWKHLQWHQWRIWKHSDUWLHVWRPLQLPL]H DOOWD[HVVRORQJDVQHLWKHU3DUW\LVPDWHULDOO\DGYHUVHO\DIIHFWHGE\VXFKHIIRUWV *RYHUQPHQWDO&KDUJHV
6&(VKDOOSD\RUFDXVHWREHSDLGDOOWD[HVFKDUJHVRUIHHVLPSRVHGE\DQ\ JRYHUQPHQWDXWKRULW\
³*RYHUQPHQWDO&KDUJHV´
RQRUZLWKUHVSHFWWRWKH
3URGXFWDULVLQJSULRUWRWKH'HOLYHU\3RLQW&RXQWHUSDUW\VKDOOSD\RUFDXVHWREH SDLGDOO*RYHUQPHQWDO&KDUJHVRQRUZLWKUHVSHFWWRWKH3URGXFWDWDQGIURPWKH 'HOLYHU\3RLQW
RWKHUWKDQDGYDORUHPIUDQFKLVHRULQFRPHWD[HVZKLFKDUH UHODWHGWRWKHVDOHRIWKH3URGXFWDQGDUHWKHUHIRUHWKHUHVSRQVLELOLW\RIWKH6&(
,QWKHHYHQW6&(LVUHTXLUHGE\ODZRUUHJXODWLRQWRUHPLWRUSD\*RYHUQPHQWDO &KDUJHVZKLFKDUH&RXQWHUSDUW\¶VUHVSRQVLELOLW\KHUHXQGHU&RXQWHUSDUW\VKDOO SURPSWO\UHLPEXUVH6&(IRUVXFK*RYHUQPHQWDO&KDUJHV,I&RXQWHUSDUW\LV UHTXLUHGE\ODZRUUHJXODWLRQWRUHPLWRUSD\*RYHUQPHQWDO&KDUJHVZKLFKDUH 6&(¶VUHVSRQVLELOLW\KHUHXQGHU&RXQWHUSDUW\PD\GHGXFWWKHDPRXQWRIDQ\VXFK Agenda Page 69
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
*RYHUQPHQWDO&KDUJHVIURPWKHVXPVGXHWR6&(XQGHU$UWLFOHRIWKLV $JUHHPHQW1RWKLQJVKDOOREOLJDWHRUFDXVHD3DUW\WRSD\RUEHOLDEOHWRSD\DQ\ *RYHUQPHQWDO&KDUJHVIRUZKLFKLWLVH[HPSWXQGHUWKHODZ $57,&/(
0,6&(//$1(286
$VVLJQPHQW
1HLWKHU3DUW\VKDOODVVLJQWKLV$JUHHPHQWRULWVULJKWVKHUHXQGHUZLWKRXWWKHSULRU ZULWWHQFRQVHQWRIWKHRWKHU3DUW\ZKLFKFRQVHQWPD\EHZLWKKHOGLQWKHH[HUFLVH RILWVVROHGLVFUHWLRQ
*RYHUQLQJ/DZ
'LVSXWH5HVROXWLRQ
D
*RYHUQLQJ/DZDQG9HQXH
7+,6$*5((0(17$1'7+(5,*+76
$1''87,(62)7+(3$57,(6+(5(81'(56+$//%(
*29(51('%<$1'&216758('(1)25&('$1'3(5)250('
,1$&&25'$1&(:,7+7+(/$:62)7+(67$7(2)
&$/,)251,$:,7+2875(*$5'7235,1&,3/(62)&21)/,&76
2)/$:6($&+3$57<:$,9(6,765(63(&7,9(5,*+772$1<
-85<75,$/:,7+5(63(&772$1<',6387($5,6,1*81'(5
25,1&211(&7,21:,7+7+,6$*5((0(177KH3DUWLHVKHUHE\ FRQVHQWWRFRQGXFWDOOGLVSXWHUHVROXWLRQMXGLFLDODFWLRQVRUSURFHHGLQJV DULVLQJGLUHFWO\LQGLUHFWO\RURWKHUZLVHLQFRQMXQFWLRQZLWKRXWRIUHODWHG WRRUDULVLQJIURPWKLV$JUHHPHQWLQ/RV$QJHOHV&RXQW\&DOLIRUQLD >127:,7+67$1',1*7+()25(*2,1*,15(63(&72)7+(
$33/,&$%,/,7<2)7+($&7$6+(5(,13529,'('7+(/$:6
2)7+(67$7(2)&$/,)251,$6+$//$33/<@{SCE Note: The bracketed provision is only included if Counterparty is a Governmental Entity or Public Power System.}
E
'LVSXWH5HVROXWLRQ
0HGLDWLRQ7KH3DUWLHVDJUHHWKDWDQ\DQGDOOGLVSXWHVFODL PVRU FRQWURYHUVLHVDULVLQJRXWRIUHODWLQJWRFRQFHUQLQJRUSHUWDL QLQJWR WKLV $JUHHPHQW RU WR HLWKHU 3DUW\¶V SHUIRUPDQFH RU IDLOXUH RI SHUIRUPDQFH XQGHU WKLV $JUHHPHQW ZKLFK GLVSXWHV FODLPV RU FRQWURYHUVLHVWKH3DUWLHVKDYHEHHQXQDEOHWRUHVROYHE\LQIRUP DO PHWKRGVDIWHUXQGHUWDNLQJDJRRGIDLWKHIIRUWWRGRVRVKDOOI LUVWEH VXEPLWWHG WR -XGLFLDO $UELWUDWLRQ DQG 0HGLDWLRQ 6HUYLFHV ,QF
³-$06´
LWVVXFFHVVRURUDQ\RWKHUPXWXDOO\DJUHHDEOHQHXWUDO WKH
³0HGLDWRU´
IRUPHGLDWLRQDQGLIWKHPDWWHULVQRWUHVROYHGWKURXJK PHGLDWLRQWKHQLWVKDOOEHVXEPLWWHGDVSURYLGHGEHORZIRUILQ DODQG ELQGLQJDUELWUDWLRQ
Agenda Page 70
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
7KH3DUWLHVDJUHHWKDWWKHUHZLOOEHQRLQWHUORFXWRU\DSSHOODWH UHOLHI
VXFKDVZULWV
DYDLODEOH$Q\GLVSXWHUHVROXWLRQSURFHVVSXUVX DQWWR WKLV6HFWLRQVKDOOEHFRPPHQFHGZLWKLQRQH
\HDURIWKHGDWHRIWKH
RFFXUUHQFHRIWKHIDFWVJLYLQJULVHWRWKHGLVSXWHZLWKRXWUHJDUGWRWKH GDWHVXFKIDFWVDUHGLVFRYHUHG
providedLIWKHIDFWVJLYLQJULVHWRWKH
GLVSXWHZHUHQRWUHDVRQDEO\FDSDEOHRIEHLQJGLVFRYHUHGDWWKH WLPH RIWKHLURFFXUUHQFHWKHQVXFKRQH
\HDUSHULRGVKDOOFRPPHQFHRQ
WKHHDUOLHVWGDWHWKDWVXFKIDFWVZHUHUHDVRQDEO\FDSDEOHRIEH LQJ GLVFRYHUHG DQG LQ QR HYHQW PRUH WKDQ IRXU
\HDUV DIWHU WKH
RFFXUUHQFHRIWKHIDFWVJLYLQJULVHWRWKHGLVSXWH,IDQ\GLVS XWH UHVROXWLRQSURFHVVSXUVXDQWWRWKLV6HFWLRQZLWKUHVSHFWWRDGLVSXWHLV QRWFRPPHQFHGZLWKLQVXFKRQH
\HDUWLPHSHULRGVXFKGLVSXW H
VKDOOEHZDLYHGDQGIRUHYHUEDUUHGZLWKRXWUHJDUGWRDQ\RWKHU OLPLWDWLRQVSHULRGVHWIRUWKE\ODZRUVWDWXWH
(LWKHU3DUW\PD\LQLWLDWHWKHPHGLDWLRQE\SURYLGLQJWRWKHRWKHU3DUW\ DZULWWHQUHTXHVWIRUPHGLDWLRQVHWWLQJIRUWKWKHVXEMHFWRIWKHGLVSXWH DQGWKHUHOLHIUHTXHVWHG
7KH3DUWLHVZLOOFRRSHUDWHZLWKRQHDQRWKHULQVHOHFWLQJWKH0HGLDWRU IURP WKH -$06¶ SDQHO RI QHXWUDOV RU LQ VHOHFWLQJ D PXWXDOO\ DFFHSWDEOHQRQ-$060HGLDWRUDQGLQVFKHGXOLQJWKHWLPHDQGSODFH RIWKHPHGLDWLRQ
6XFKVHOHFWLRQDQGVFKHGXOLQJZLOOEHFRPSOHWHGZLWKLQIRUW\ILYH
GD\VDIWHUD3DUW\SURYLGHVDZULWWHQUHTXHVWIRUPHGLDWLRQ 8QOHVVRWKHUZLVHDJUHHGWRE\WKH3DUWLHVWKHPHGLDWLRQZLOOQRWEH VFKHGXOHGIRUDGDWHWKDWLVJUHDWHUWKDQRQHKXQGUHGWZHQW\
GD\VDIWHUD3DUW\SURYLGHVDZULWWHQUHTXHVWIRUPHGLDWLRQ 7KH3DUWLHVFRYHQDQWWKDWWKH\ZLOOSDUWLFLSDWHLQWKHPHGLDWLRQLQJRRG IDLWKDQGWKDWWKH\ZLOOVKDUHHTXDOO\LQLWVFRVWV
RWKHUWKD QHDFK
3DUW\¶VLQGLYLGXDODWWRUQH\V¶IHHVDQGFRVWVUHODWHGWRWKH3DU W\¶V SDUWLFLSDWLRQLQWKHPHGLDWLRQZKLFKIHHVDQGFRVWVZLOOEHER UQHE\ VXFK3DUW\
$OORIIHUVSURPLVHVFRQGXFWDQGVWDWHPHQWVZKHWKHURUDORUZULWWHQ PDGHLQFRQQHFWLRQZLWKRUGXULQJWKHPHGLDWLRQE\HLWKHURIWK H 3DUWLHV WKHLU DJHQWV UHSUHVHQWDWLYHV HPSOR\HHV H[SHUWV DQG DWWRUQH\VDQGE\WKH0HGLDWRURUDQ\RIWKH0HGLDWRU¶VDJHQWV UHSUHVHQWDWLYHVDQGHPSOR\HHVZLOOQRWEHVXEMHFWWRGLVFRYHU\ DQG ZLOOEHFRQILGHQWLDOSULYLOHJHGDQGLQDGPLVVLEOHIRUDQ\SXUSR VH LQFOXGLQJ LPSHDFKPHQW LQ DQ\ DUELWUDWLRQ RU RWKHU SURFHHGLQJ EHWZHHQRULQYROYLQJWKH3DUWLHVRUHLWKHURIWKHPprovided,HYLGHQFH WKDWLVRWKHUZLVHDGPLVVLEOHRUGLVFRYHUDEOHZLOOQRWEHUHQGHU HG LQDGPLVVLEOHRUQRQGLVFRYHUDEOHDVDUHVXOWRILWVXVHLQWKHPHGLDWLRQ Agenda Page 71
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
$UELWUDWLRQ(LWKHU3DUW\PD\LQLWLDWHELQGLQJDUELWUDWLRQZ LWKUHVSHFW WR WKHPDWWHUV ILUVW VXEPLWWHG WRPHGLDWLRQ E\ PDNLQJ D ZULWWHQ GHPDQGIRUELQGLQJDUELWUDWLRQEHIRUHDVLQJOHQHXWUDODUELWUDWRU WKH
³$UELWUDWRU´
Z L W K L Q V L [ W \
G D \ V I R O O R Z L Q J W K H X Q V X F F H V V I X O FRQFOXVLRQRIWKHPHGLDWLRQSURYLGHGIRULQ6HFWLRQ
LL
DERYH ,ID
ZULWWHQGHPDQGIRUDUELWUDWLRQLVQRWSURYLGHGE\HLWKHU3DUW\ ZLWKLQ VL[W\
GD\VIROORZLQJWKHXQVXFFHVVIXOFRQFOXVLRQRIWKHPHGLDWLRQ SURYLGHGIRULQ6HFWLRQ
L
DERYHWKHGLVSXWHUHVROXWLRQSURFHVVVKDOO
EHGHHPHGFRPSOHWHDQGIXUWKHUUHVROXWLRQRIVXFKGLVSXWHVKDOO EH EDUUHGZLWKRXWUHJDUGWRDQ\RWKHUOLPLWDWLRQVSHULRGVHWIRUWKE\ODZ RUVWDWXWH
7KH3DUWLHVZLOOFRRSHUDWHZLWKRQHDQRWKHULQSURPSWO\VHOHFWLQJWKH $UELWUDWRUDQGVKDOOIXUWKHUFRRSHUDWHLQVFKHGXOLQJWKHDUELWUDWLRQWR FRPPHQFHQRODWHUWKDQRQHKXQGUHGHLJKW\
GD\VIURPWKHGDWH
RIWKHLQLWLDOZULWWHQGHPDQGIRUELQGLQJDUELWUDWLRQ
,IQRWZLWKVWDQGLQJWKHLUJRRGIDLWKHIIRUWVWKH3DUWLHVDUHX QDEOHWR DJUHHXSRQDPXWXDOO\DFFHSWDEOH$UELWUDWRUWKH$UELWUDWRUVKD OOEH DSSRLQWHGDVSURYLGHGIRULQ&DOLIRUQLD&RGHRI&LYLO3URFHGXUH 6HFWLRQ
8QOHVVRWKHUZLVHDJUHHGWRE\WKH3DUWLHVWKHLQGLYLGXDODFWLQJDVWKH 0HGLDWRUVKDOOEHGLVTXDOLILHGIURPVHUYLQJDVWKH$UELWUDWRUL QWKH GLVSXWHDOWKRXJKWKH$UELWUDWRUPD\EHDQRWKHUPHPEHURIWKH-$06 SDQHORIQHXWUDOVRUVXFKRWKHUSDQHORIQHXWUDOVIURPZKLFKWKH3DUWLHV KDYHDJUHHGWRVHOHFWWKH0HGLDWRU
8SRQD3DUW\¶VZULWWHQGHPDQGIRUELQGLQJDUELWUDWLRQVXFKGLV SXWH FODLP RU FRQWURYHUV\ VXEPLWWHG WR DUELWUDWLRQ LQFOXGLQJ WKH GHWHUPLQDWLRQRIWKHVFRSHRUDSSOLFDELOLW\RIWKLV$JUHHPHQWW R DUELWUDWH VKDOO EH GHWHUPLQHG E\ ELQGLQJ DUELWUDWLRQ EHIRUH WKH $UELWUDWRULQDFFRUGDQFHZLWKWKHODZVRIWKH6WDWHRI&DOLIRU QLD ZLWKRXWUHJDUGVWRSULQFLSOHVRIFRQIOLFWVRIODZV
([FHSWDVSURYLGHGIRUKHUHLQWKHDUELWUDWLRQVKDOOEHFRQGXFW HGE\ WKH $UELWUDWRU LQ DFFRUGDQFH ZLWK WKH UXOHV DQG SURFHGXUHV IRU DUELWUDWLRQRIFRPSOH[EXVLQHVVGLVSXWHVIRUWKHRUJDQL]DWLRQZ LWK ZKLFKWKH$UELWUDWRULVDVVRFLDWHG
$EVHQWWKHH[LVWHQFHRIVXFKUXOHVDQGSURFHGXUHVWKHDUELWUDWLRQVKDOO EH FRQGXFWHG LQ DFFRUGDQFH ZLWK WKH &DOLIRUQLD $UELWUDWLRQ $FW &DOLIRUQLD&RGHRI&LYLO3URFHGXUH6HFWLRQHWVHTDQG&DOLIRUQLD SURFHGXUDOODZ
LQFOXGLQJWKH&RGHRI&LYLO3URFHGXUH&LYLO&R GH
(YLGHQFH&RGHDQG5XOHVRI&RXUWEXWH[FOXGLQJORFDOUXOHV
Agenda Page 72
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
1RWZLWKVWDQGLQJWKHUXOHVDQGSURFHGXUHVWKDWZRXOGRWKHUZLVHDSSO\ WR WKH DUELWUDWLRQ DQG XQOHVV WKH 3DUWLHV DJUHH WR D GLIIHUHQW DUUDQJHPHQWWKHSODFHRIWKHDUELWUDWLRQVKDOOEHLQ/RV$QJHO HV &RXQW\&DOLIRUQLD
$OVRQRWZLWKVWDQGLQJWKHUXOHVDQGSURFHGXUHVWKDWZRXOGRWKHU ZLVH DSSO\WRWKHDUELWUDWLRQDQGXQOHVVWKH3DUWLHVDJUHHWRDGLI IHUHQW DUUDQJHPHQWGLVFRYHU\ZLOOEHOLPLWHGDVIROORZV
%HIRUHGLVFRYHU\FRPPHQFHVWKH3DUWLHVVKDOOH[FKDQJHDQ LQLWLDO GLVFORVXUH RI DOO GRFXPHQWV DQG SHUFLSLHQW ZLWQHVVHV ZKLFK WKH\ LQWHQG WR UHO\ XSRQ RU XVH DW DQ\ DUELWUDWLRQ SURFHHGLQJ
H[FHSWIRUGRFXPHQWVDQGZLWQHVVHVWREHXVHG
VROHO\IRULPSHDFKPHQW
7KHLQLWLDOGLVFORVXUHZLOORFFXUZLWKLQWKLUW\
GD\VDI WHUWKH
LQLWLDOFRQIHUHQFHZLWKWKH$UELWUDWRURUDWVXFKWLPHDVWKH $UELWUDWRUPD\RUGHU
'LVFRYHU\PD\FRPPHQFHDWDQ\WLPHDIWHUWKH3DUWLHV¶LQLWLD O
GLVFORVXUH
7KH3DUWLHVZLOOQRWEHSHUPLWWHGWRSURSRXQGDQ\LQWHUURJDWRULHV RUUHTXHVWVIRUDGPLVVLRQV
'LVFRYHU\ZLOOEHOLPLWHGWRWZHQW\ILYH
GRFXPHQWUHTXH VWV
ZLWKQRVXESDUWV
WKUHH
OD\ZLWQHVVGHSRVLWLRQVDQGWKUH H
H[SHUW ZLWQHVV GHSRVLWLRQV
XQOHVV WKH $UELWUDWRU KROGV
RWKHUZLVH IROORZLQJ D VKRZLQJ E\ WKH 3DUW\ VHHNLQJ WKH DGGLWLRQDO GRFXPHQWV RU GHSRVLWLRQV WKDW WKH GRFXPHQWV RU GHSRVLWLRQVDUHFULWLFDOIRUDIDLUUHVROXWLRQRIWKH'LVSXWHRUWKDW D3DUW\KDVLPSURSHUO\ZLWKKHOGGRFXPHQWV
(DFK3DUW\LVDOORZHGDPD[LPXPRIWKUHH
H[SHUWZLWQHVVH V
H[FOXGLQJUHEXWWDOH[SHUWV
:LWKLQVL[W\
GD\VDIWHUWKHLQLWLDOGLVFORVXUHRUDWVXFKRWKHU
WLPHDVWKH$UELWUDWRUPD\RUGHUWKH3DUWLHVVKDOOH[FKDQJHDOLVW RIDOOH[SHUWVXSRQZKLFKWKH\LQWHQGWRUHO\DWWKHDUELWUDWLR Q
SURFHHGLQJ
:LWKLQWKLUW\
GD\VDIWHUWKHLQLWLDOH[SHUWGLVFORVXUH WKH
3DUWLHVPD\GHVLJQDWHDPD[LPXPRIWZR
UHEXWWDOH[SHUWV
8QOHVVWKH3DUWLHVDJUHHRWKHUZLVHDOOGLUHFWWHVWLPRQ\ZLO OEH LQIRUPRIDIILGDYLWVRUGHFODUDWLRQVXQGHUSHQDOW\RISHUMXU\
DQG
(DFK3DUW\VKDOOPDNHDYDLODEOHIRUFURVVH[DPLQDWLRQDWWK H DUELWUDWLRQKHDULQJLWVZLWQHVVHVZKRVHGLUHFWWHVWLPRQ\KDVEHHQ VRVXEPLWWHG
Agenda Page 73
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
6XEMHFW WR $UWLFOH
/LPLWDWLRQV
WKH $UELWUDWRU ZLOO KDYH WKH
DXWKRULW\WRJUDQWDQ\IRUPRIHTXLWDEOHRUOHJDOUHOLHID3DUW \PLJKW UHFRYHULQDFRXUWDFWLRQ7KH3DUWLHVDFNQRZOHGJHDQGDJUHHWK DW LUUHSDUDEOH GDPDJH ZRXOG RFFXU LI FHUWDLQ SURYLVLRQV RI WKLV $JUHHPHQWDUHQRWSHUIRUPHGLQDFFRUGDQFHZLWKWKHWHUPVRIWKH $JUHHPHQWWKDWPRQH\GDPDJHVZRXOGQRWEHDVXIILFLHQWUHPHG\IRU DQ\EUHDFKRIWKHVHSURYLVLRQVRIWKLV$JUHHPHQWDQGWKDWWKH3DUWLHV VKDOOEHHQWLWOHGZLWKRXWWKHUHTXLUHPHQWRISRVWLQJDERQGRU RWKHU VHFXULW\WRVSHFLILFSHUIRUPDQFHDQGLQMXQFWLYHRURWKHUHTXLW DEOH UHOLHIDVDUHPHG\IRUDEUHDFKRI6HFWLRQ
RIWKLV$JUHHPHQW
-XGJPHQW RQ WKH DZDUG PD\ EH HQWHUHG LQ DQ\ FRXUW KDYLQJ MXULVGLFWLRQ
7KH$UELWUDWRUVKDOOLQDQ\DZDUGDOORFDWHDOORIWKHFRVWVR IWKH ELQGLQJDUELWUDWLRQ
RWKHUWKDQHDFK3DUW\¶VLQGLYLGXDODWWRUQH\V¶IHHV
DQGFRVWVUHODWHGWRWKH3DUW\¶VSDUWLFLSDWLRQLQWKHDUELWUDWL RQZKLFK IHHVDQGFRVWVVKDOOEHERUQHE\VXFK3DUW\
LQFOXGLQJWKHIHHVRIWKH
$UELWUDWRUDJDLQVWWKH3DUW\ZKRGLGQRWSUHYDLO
8QWLOVXFKDZDUGLVPDGHKRZHYHUWKH3DUWLHVVKDOOVKDUHHTXDOO\LQ SD\LQJWKHFRVWVRIWKHDUELWUDWLRQ
$WWKHFRQFOXVLRQRIWKHDUELWUDWLRQKHDULQJWKH$UELWUDWRUVK DOO SUHSDUHLQZULWLQJDQGSURYLGHWRHDFK3DUW\DGHFLVLRQVHWWLQJ IRUWK IDFWXDO ILQGLQJV OHJDO DQDO\VLV DQG WKH UHDVRQV RQ ZKLFK WKH $UELWUDWRU¶VGHFLVLRQLVEDVHG7KH$UELWUDWRUVKDOODOVRKDYH WKH DXWKRULW\WRUHVROYHFODLPVRULVVXHVLQDGYDQFHRIWKHDUELWUD WLRQ KHDULQJWKDWZRXOGEHDSSURSULDWHIRUD&DOLIRUQLDVXSHULRUFRXUWMXGJH WRUHVROYHLQDGYDQFHRIWULDO7KH$UELWUDWRUVKDOOQRWKDYHWKHSRZHU WRFRPPLWHUURUVRIODZRUIDFWRUWRFRPPLWDQ\DEXVHRIGLVFUHWLRQ WKDWZRXOGFRQVWLWXWHUHYHUVLEOHHUURUKDGWKHGHFLVLRQEHHQUH QGHUHG E\D&DOLIRUQLDVXSHULRUFRXUW7KH$UELWUDWRU¶VGHFLVLRQPD\E H YDFDWHGRUFRUUHFWHGRQDSSHDOWRD&DOLIRUQLDFRXUWRIFRPSHWH QW MXULVGLFWLRQIRUVXFKHUURU8QOHVVRWKHUZLVHDJUHHGWRE\WKH3DUWLHV DOOSURFHHGLQJVEHIRUHWKH$UELWUDWRUVKDOOEHUHSRUWHGDQGWUDQVFULEHG E\DFHUWLILHGFRXUWUHSRUWHUZLWKHDFK3DUW\EHDULQJRQHKDOI RIWKH FRXUWUHSRUWHU¶VIHHV
1RWLFHV
$OOQRWLFHVUHTXHVWVVWDWHPHQWVRUSD\PHQWVVKDOOEHPDGHDVVSHFLILHGLQWKLV $SSHQGL[&1RWLFHV
RWKHUWKDQVFKHGXOLQJUHTXHVWV
VKDOOXQOHVVRWKHUZLVH
VSHFLILHGKHUHLQEHLQZULWLQJDQGPD\EHGHOLYHUHGE\KDQGGHOLYHU\8QLWHG 6WDWHVPDLORYHUQLJKWFRXULHUVHUYLFHRUIDFVLPLOH1RWLFHE\IDFVLPLOHRUKDQG GHOLYHU\VKDOOEHHIIHFWLYHDWWKHFORVHRIEXVLQHVVRQWKHGD\DFWXDOO\UHFHLYHGLI UHFHLYHGGXULQJEXVLQHVVKRXUVRQD%XVLQHVV'D\DQGRWKHUZLVHVKDOOEH HIIHFWLYHDWWKHFORVHRIEXVLQHVVRQWKHQH[W%XVLQHVV'D\1RWLFHE\RYHUQLJKW Agenda Page 74
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
8QLWHG6WDWHVPDLORUFRXULHUVKDOOEHHIIHFWLYHRQWKHQH[W%XVLQHVV'D\DIWHULW ZDVVHQW$3DUW\PD\FKDQJHLWVDGGUHVVHVE\SURYLGLQJQRWLFHRIVDPHLQ DFFRUGDQFHKHUHZLWK
*HQHUDO
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
SHUPLWWHGVXFFHVVRURUDVVLJQHHERXQGWRWKLV$JUHHPHQW :DLYHUE\D3DUW\RI
DQ\GHIDXOWE\WKHRWKHU3DUW\VKDOOQRWEHFRQVWUXHGDVDZDLYHURIDQ\RWKHU GHIDXOW$Q\SURYLVLRQGHFODUHGRUUHQGHUHGXQODZIXOE\DQ\DSSOLFDEOHFRXUWRI ODZRUUHJXODWRU\DJHQF\RUGHHPHGXQODZIXOEHFDXVHRIDVWDWXWRU\FKDQJH
LQGLYLGXDOO\RUFROOHFWLYHO\VXFKHYHQWVUHIHUUHGWRDV³5HJXODWRU\(YHQW´ ZLOO
QRWRWKHUZLVHDIIHFWWKHUHPDLQLQJODZIXOREOLJDWLRQVWKDWDULVHXQGHUWKLV $JUHHPHQW
DQGSURYLGHGIXUWKHUWKDWLID5HJXODWRU\(YHQWRFFXUVWKH3DUWLHV VKDOOXVHWKHLUEHVWHIIRUWVWRUHIRUPWKLV$JUHHPHQWLQRUGHUWRJLYHHIIHFWWRWKH RULJLQDOLQWHQWLRQRIWKH3DUWLHV7KHWHUP³LQFOXGLQJ´ZKHQXVHGLQWKLV $JUHHPHQWVKDOOEHE\ZD\RIH[DPSOHRQO\DQGVKDOOQRWEHFRQVLGHUHGLQDQ\ ZD\WREHLQOLPLWDWLRQ7KHKHDGLQJVXVHGKHUHLQDUHIRUFRQYHQLHQFHDQG UHIHUHQFHSXUSRVHVRQO\$OOLQGHPQLW\DQGDXGLWULJKWVVKDOOVXUYLYHWKH WHUPLQDWLRQRIWKLV$JUHHPHQWIRUWZR
\HDUV7KLV$JUHHPHQWVKDOOEHELQGLQJ
RQHDFK3DUW\¶VVXFFHVVRUVDQGSHUPLWWHGDVVLJQV
$XGLW
(DFK3DUW\KDVWKHULJKWDWLWVVROHH[SHQVHDQGGXULQJQRUPDOZRUNLQJKRXUVWR H[DPLQHWKHUHFRUGVRIWKHRWKHU3DUW\WRWKHH[WHQWUHDVRQDEO\QHFHVVDU\WRYHULI\ WKHDFFXUDF\RIDQ\VWDWHPHQWFKDUJHRUFRPSXWDWLRQPDGHSXUVXDQWWRWKLV $JUHHPHQW,IDQ\VXFKH[DPLQDWLRQUHYHDOVDQ\LQDFFXUDF\LQDQ\VWDWHPHQWWKH QHFHVVDU\DGMXVWPHQWVLQVXFKVWDWHPHQWDQGWKHSD\PHQWVWKHUHRIZLOOEHPDGH SURPSWO\DQGVKDOOEHDULQWHUHVWFDOFXODWHGDWWKH,QWHUHVW5DWHIURPWKHGDWHWKH RYHUSD\PHQWRUXQGHUSD\PHQWZDVPDGHXQWLOSDLG
SURYLGHGKRZHYHUWKDWQR
Agenda Page 75
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
DGMXVWPHQWIRUDQ\VWDWHPHQWRUSD\PHQWZLOOEHPDGHXQOHVVREMHFWLRQWRWKH DFFXUDF\WKHUHRIZDVPDGHSULRUWRWKHODSVHRIWZHOYH
PRQWKVIURPWKH
UHQGLWLRQWKHUHRIDQGWKHUHDIWHUDQ\REMHFWLRQVKDOOEHGHHPHGZDLYHG
%DQNUXSWF\,VVXHV
7KH3DUWLHVLQWHQGWKDW
L
WKLV$JUHHPHQWFRQVWLWXWHVD³IRUZDUGFRQWUDFW´ZLWKLQ WKHPHDQLQJRIWKH8QLWHG6WDWHV%DQNUXSWF\&RGH
WKH³%DQNUXSWF\&RGH´
RUD
³VZDSDJUHHPHQW´ZLWKLQWKHPHDQLQJRIWKH%DQNUXSWF\&RGH
LL
DOOSD\PHQWV
PDGHRUWREHPDGHE\RQH3DUW\WRWKHRWKHU3DUW\SXUVXDQWWRWKLV$JUHHPHQW FRQVWLWXWH³VHWWOHPHQWSD\PHQWV´ZLWKLQWKHPHDQLQJRIWKH%DQNUXSWF\&RGH
LLL
DOOWUDQVIHUVRI3HUIRUPDQFH$VVXUDQFHE\RQH3DUW\WRWKHRWKHU3DUW\XQGHU WKLV$JUHHPHQWFRQVWLWXWH³PDUJLQSD\PHQWV´ZLWKLQWKHPHDQLQJRIWKH %DQNUXSWF\&RGH
LY
WKLV$JUHHPHQWFRQVWLWXWHVD³PDVWHUQHWWLQJDJUHHPHQW´ ZLWKLQWKHPHDQLQJRIWKH%DQNUXSWF\&RGH
DQG
Y
HDFKRI6&(DQG
&RXQWHUSDUW\DUH³IRUZDUGFRQWUDFWPHUFKDQWV´ZLWKLQWKHPHDQLQJRIWKH %DQNUXSWF\&RGH
(DFK3DUW\IXUWKHUDJUHHVWKDWIRUSXUSRVHVRIWKLV$JUHHPHQWWKHRWKHU3DUW\LV QRWD³XWLOLW\´DVVXFKWHUPLVXVHGLQ86&6HFWLRQHDFK3DUW\ZDLYHV DQGDJUHHVQRWWRDVVHUWWKHDSSOLFDELOLW\RIWKHSURYLVLRQVRI86&6HFWLRQ LQDQ\EDQNUXSWF\SURFHHGLQJZKHUHLQVXFK3DUW\LVDGHEWRU,QDQ\VXFK SURFHHGLQJHDFK3DUW\IXUWKHUZDLYHVWKHULJKWWRDVVHUWWKDWWKHRWKHU3DUW\LVD SURYLGHURIODVWUHVRUWWRWKHH[WHQWVXFKWHUPUHODWHVWR86&6HFWLRQRU DQRWKHUSURYLVLRQRI86&6HFWLRQ
&RQILGHQWLDOLW\
D
1HLWKHU3DUW\VKDOOGLVFORVHWKHWHUPVRUFRQGLWLRQVRIWKLV $JUHHPHQWWRD WKLUGSDUW\
RWKHUWKDQWKH3DUW\¶VRUWKH3DUW\¶V$IILOLDWHV¶RIILFHUVGLUHFWRUV HPSOR\HHVOHQGHUVFRXQVHODFFRXQWDQWVDGYLVRUVRUUDWLQJD JHQFLHVZKR KDYHDQHHGWRNQRZVXFKLQIRUPDWLRQDQGKDYHDJUHHGWRNHHSVX FKWHUPV VWULFWO\FRQILGHQWLDODQGWRWDNHUHDVRQDEOHSUHFDXWLRQVWRSUR WHFWDJDLQVW GLVFORVXUHRIVXFKWHUPV
H[FHSW
L
LQRUGHUWRFRPSO\ZLWKDQ \DSSOLFDEOH
ODZ RUGHU UHJXODWLRQ UXOLQJ VXPPRQV VXESRHQD H[FKDQJH UXOH RU DFFRXQWLQJGLVFORVXUHUXOHRUVWDQGDUGRUWRPDNHDQ\VKRZLQJ UHTXLUHGE\ DQ\DSSOLFDEOHJRYHUQPHQWDODXWKRULW\
LL
WRWKHH[WHQWQHFHV VDU\IRUWKH
HQIRUFHPHQW RI WKLV $JUHHPHQW
LLL
DV PD\ EH REWDLQHG IURP DQRQ
FRQILGHQWLDOVRXUFHWKDWGLVFORVHGVXFKLQIRUPDWLRQLQDPDQQHU WKDWGLGQRW YLRODWHLWVREOLJDWLRQVWRWKHQRQGLVFORVLQJ3DUW\LQPDNLQJVXFKGLVFORVXUH
LY
WRWKHH[WHQWVXFKLQIRUPDWLRQLVRUEHFRPHVJHQHUDOO\DYDL ODEOHWRWKH SXEOLFSULRUWRVXFKGLVFORVXUHE\D3DUW\
Y
ZKHQUHTXLUHGWREHUHOHDVHGLQ
FRQQHFWLRQZLWKDQ\UHJXODWRU\SURFHHGLQJ
SURYLGHGWKDWWKHUHOHDVLQJ3DUW\
PDNHVUHDVRQDEOHHIIRUWVWRREWDLQFRQILGHQWLDOWUHDWPHQWRIWK HLQIRUPDWLRQ EHLQJUHOHDVHG
YL
ZLWKUHVSHFWWR6&(DVPD\EHIXUQLVKHG WRLWVGXO\
DXWKRUL]HG UHJXODWRU\ DQG JRYHUQPHQWDO DJHQFLHV RU HQWLWLHV LQFOXGLQJ Agenda Page 76
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
ZLWKRXW OLPLWDWLRQ WKH &38& DQG DOO GLYLVLRQV WKHUHRI DQG WR 6&(¶V 3URFXUHPHQW5HYLHZ*URXSDJURXSRISDUWLFLSDQWVLQFOXGLQJPHPEHUVRIWKH &38&DQGRWKHUJRYHUQPHQWDODJHQFLHVDQGFRQVXPHUJURXSVHVWDEOLVKHGE\ WKH&38&LQ'DQG'
SURYLGHG6&(VKDOOKD YHQR
OLDELOLW\WR&RXQWHUSDUW\LQWKHHYHQWRIDQ\XQDXWKRUL]HGXVHRUGLVFORVXUHE\ VXFKHQWLWLHV
RU
YLL
HDFK3DUW\PD\GLVFORVHWKHWHUPVRIWKLV$JUHHPHQWWR :5(*,6 7KH H[LVWHQFH RI WKLV $JUHHPHQW LV QRW VXEMHFW WR WKLV FRQILGHQWLDOLW\REOLJDWLRQ
SURYLGHGWKDWQHLWKHU3DUW\VKDOOP DNHDQ\SXEOLF
DQQRXQFHPHQW UHODWLQJ WR WKLV $JUHHPHQW XQOHVV UHTXLUHG SXUVXDQW WR VXEVHFWLRQ
L
RU
YL
RIWKHI RUHJRLQJVHQWHQFHRIWKLV6HFWLR Q7KH3DUWLHV VKDOOEHHQWLWOHGWRDOOUHPHGLHVDYDLODEOHDWODZRULQHTXLW\ WRHQIRUFHRU VHHNUHOLHILQFRQQHFWLRQZLWKWKLVFRQILGHQWLDOLW\REOLJDWLRQ
E
:LWKUHVSHFWWRLQIRUPDWLRQSURYLGHGXQGHUWKLV$JUHHPHQWW KLVREOLJDWLRQ VKDOOVXUYLYHIRUDSHULRGRIWKUHH
\HDUVIROORZLQJWKHH[S LUDWLRQRU
WHUPLQDWLRQRIWKLV$JUHHPHQW>)RUWKHSXUSRVHVRIWKLV6HFWLR Q³$IILOLDWH´ IRU&RXQWHUSDUW\VKDOOPHDQ>@DQG³$IILOLDWH´IRU6&(VKDOOP HDQ(GLVRQ ,QWHUQDWLRQDO@ {SCE Note: Bracketed provision only applicable if Counterparty has Affiliates that have energy trading operations.}
1R$JHQF\
([FHSWDVRWKHUZLVHSURYLGHGH[SOLFLWO\KHUHLQLQSHUIRUPLQJWKHLUUHVSHFWLYH REOLJDWLRQVXQGHUWKLV$JUHHPHQWQHLWKHU3DUW\LVDFWLQJRULVDXWKRUL]HGWRDFW DVWKHRWKHU3DUW\¶VDJHQW
0RELOH6LHUUD'RFWULQH
D
$EVHQWWKHDJUHHPHQWRIDOO3DUWLHVWRWKHSURSRVHGFKDQJH WKHVWDQGDUGRI UHYLHZIRUFKDQJHVWRDQ\UDWHFKDUJHFODVVLILFDWLRQWHUPRUFRQGLWLRQRI WKLV$JUHHPHQWZKHWKHUSURSRVHGE\D3DUW\
WRWKHH[WHQWWKDWDQ\ZDLYHU
LQVXEVHFWLRQ
E
EHORZLVXQHQIRUFHDEOHRULQHIIHFWLYHDVWRVXFK3DUW\ D
QRQSDUW\RU)(5&DFWLQJsua sponteVKDOOEHWKHµSXEOLFLQWHUHVW¶VWDQGDUG RIUHYLHZVHWIRUWKLQUnited Gas Pipe Line Co. v. Mobile Gas Service Corp.86
Federal Power Commission v. Sierra Pacific
Power Co86
DQGFODULILHGE\Morgan Stanley Capital
Group, Inc. v. Public Util. Dist. No. 1 of Snohomish,86
DQGNRG Power Marketing LLC v. Maine Public Utility Commission 86
WKHµ0RELOH6LHUUD¶GRFWULQH
E
1RWZLWKVWDQGLQJDQ\SURYLVLRQRI$JUHHPHQWDQGDEVHQWWKHS ULRUZULWWHQ DJUHHPHQWRIWKH3DUWLHVHDFK3DUW\WRWKHIXOOHVWH[WHQWSHUPLWWHGE\ DSSOLFDEOHODZVIRULWVHOIDQGLWVUHVSHFWLYHVXFFHVVRUVDQGDVVLJQVKHUHE\ DOVRH[SUHVVO\DQGLUUHYRFDEO\ZDLYHVDQ\ULJKWVLWFDQRUPD\KDYHQRZRU LQWKHIXWXUHZKHWKHUXQGHU6HFWLRQVRURIWKH)HGHUDO3RZHU $FWRURWKHUZLVHWRVHHNWRREWDLQIURP)(5&E\DQ\PHDQVGLUHFWO\RU Agenda Page 77
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
LQGLUHFWO\
WKURXJKFRPSODLQWLQYHVWLJDWLRQVXSSRUWLQJDWKLUGSDUW\VHHNLQJ WRREWDLQRURWKHUZLVH
DQGHDFKKHUHE\FRYHQDQWVDQGDJUHHVQRWDWDQ\
WLPHWRVHHNWRVRREWDLQDQRUGHUIURP)(5&FKDQJLQJDQ\6HFWLRQRIWKLV $JUHHPHQWVSHFLI\LQJDQ\UDWHRURWKHUPDWHULDOHFRQRPLFWHUPVDQG FRQGLWLRQVDJUHHGWRE\WKH3DUWLHV
0XOWLSOH&RXQWHUSDUWV
7KLV$JUHHPHQWPD\EHH[HFXWHGLQRQHRUPRUHFRXQWHUSDUWVHDFKRIZKLFKZLOO EHGHHPHGWREHDQRULJLQDORIWKLV$JUHHPHQWDQGDOORIZKLFK ZKHQWDNHQ WRJHWKHUZLOOEHGHHPHGWRFRQVWLWXWHRQHDQGWKHVDPHDJUHHPHQW7KHH[FKDQJH RIFRSLHVRIWKLV$JUHHPHQWDQGRIVLJQDWXUHSDJHVE\IDFVLPLOH WUDQVPLVVLRQ 3RUWDEOH'RFXPHQW)RUPDW
LH3')
RUE\RWKHUHOHFWURQLFPHD QVFRQVWLWXWHV
HIIHFWLYHH[HFXWLRQDQGGHOLYHU\RIWKLV$JUHHPHQWDVWRWKH3D UWLHVDQGPD\EH XVHGLQOLHXRIWKHRULJLQDO$JUHHPHQWIRUDOOSXUSRVHV
,QGHSHQGHQW&RQWUDFWRUV
7KH3DUWLHVDUHLQGHSHQGHQWFRQWUDFWRUV1RWKLQJFRQWDLQHGKHUHLQVKDOOEHGHHPHG WRFUHDWHDQDVVRFLDWLRQMRLQWYHQWXUHRUSDUWQHUVKLSUHODWLR QVKLSEHWZHHQWKH 3DUWLHVRUWRLPSRVHDQ\SDUWQHUVKLSREOLJDWLRQVRUOLDELOLW\R QHLWKHU3DUW\LQDQ\ ZD\
6HYHUDELOLW\
,IDQ\WHUPVHFWLRQSURYLVLRQRURWKHUSDUWRIWKLV$JUHHPHQWRUWKHDSSOLFDWLRQ RIDQ\WHUPVHFWLRQSURYLVLRQRURWKHUSDUWRIWKLV$JUHHPHQWLVKHOGWREH LQYDOLGLOOHJDORUYRLGE\DFRXUWRUUHJXODWRU\DJHQF\RISURSHUMXULVGLFWLRQDOO RWKHUWHUPVVHFWLRQVSURYLVLRQVRURWKHUSDUWVRIWKLV$JUHHPHQWVKDOOQRWEH DIIHFWHGWKHUHE\EXWVKDOOUHPDLQLQIRUFHDQGHIIHFWXQOHVVDFRXUWRUUHJXODWRU\ DJHQF\KROGVWKDWWKHSURYLVLRQVDUHQRWVHSDUDEOHIURPDOORWKHUSURYLVLRQVRIWKLV $JUHHPHQW
5XOHVRI&RQVWUXFWLRQ
D
7KHZRUG³RU´ZKHQXVHGLQWKLV$JUHHPHQWLQFOXGHVWKHPHDQL QJ³DQGRU´ XQOHVVWKHFRQWH[WXQDPELJXRXVO\GLFWDWHVRWKHUZLVH
E
:KHUHGD\VDUHQRWVSHFLILFDOO\GHVLJQDWHGDV%XVLQHVV'D\V WKH\ZLOOEH FRQVLGHUHGDVFDOHQGDUGD\V
F
$OOUHIHUHQFHVWRWLPHVKDOOEHLQ337XQOHVVVWDWHGRWKHUZL VH
G
+HDGLQJVDUHLQFOXGHGIRUFRQYHQLHQFHRQO\DQGDUHQRWWREH FRQVLGHUHGLQ LQWHUSUHWDWLRQ
Agenda Page 78
Voluntary Allocation Agreement
v. 2022.02.23
SCE – {Counterparty}
Pro Forma Ver. 2022.02.23
H
5HIHUHQFHVLQWKHVLQJXODULQFOXGHUHIHUHQFHVWRWKHSOXUDO DQGYLFHYHUVD SURQRXQVKDYLQJPDVFXOLQHRUIHPLQLQHJHQGHULQFOXGHWKHRWKHUDQGZRUGV GHQRWLQJQDWXUDOSHUVRQVLQFOXGHSDUWQHUVKLSVILUPVFRPSDQLHV FRUSRUDWLRQVMRLQWYHQWXUHVWUXVWVDVVRFLDWLRQVRUJDQL]DWLRQVRURWKHU HQWLWLHVZKHWKHURUQRWKDYLQJDVHSDUDWHOHJDOSHUVRQDOLW\
I
2WKHUJUDPPDWLFDOIRUPVRIGHILQHGZRUGVRUSKUDVHVKDYHFRU UHVSRQGLQJ PHDQLQJV
J
8QOHVVRWKHUZLVHVSHFLILHGKHUHLQZKHUHWKHFRQVHQWRID3D UW\LVUHTXLUHG VXFKFRQVHQWPD\QRWEHXQUHDVRQDEO\ZLWKKHOGFRQGLWLRQHGRUGHOD\HG
K
5HIHUHQFHVWRDQ\QDWXUDOSHUVRQ*RYHUQPHQWDO$XWKRULW\SX EOLFDWLRQ ZHEVLWHPDUNHWSULFHLQGH[UHJXODWRU\SURFHHGLQJFRUSRUDWLRQSDUWQHUVKLS RURWKHUOHJDOHQWLW\LQFOXGHVXFFHVVRUVDQGODZIXODVVLJQV
L
$OOUHIHUHQFHVWRPRQH\RUGROODUVDUHWR86GROODUV
M
([DPSOHVDUHIRUSXUSRVHVRILOOXVWUDWLRQRIWKHDSSOLFDEOH FRQFHSWRQO\DQG DUHQRWLQWHQGHGWRFRQVWLWXWHDUHSUHVHQWDWLRQZDUUDQW\RUFRYHQDQW FRQFHUQLQJWKHH[DPSOHLWVHOIRUWKHPDWWHUVDVVXPHGIRUSXUSRVHVRIVXFK H[DPSOH
N
,IWKHUHLVDFRQIOLFWEHWZHHQDQH[DPSOHDQGWKHWH[WKHUHR IWKHWH[WZLOO JRYHUQ
O
(DFKWHUPKHUHRILVWREHFRQVWUXHGVLPSO\DFFRUGLQJWRLWV IDLUPHDQLQJDQG QRWVWULFWO\IRURUDJDLQVWHLWKHU3DUW\
P
1RWHUPKHUHRILVWREHFRQVWUXHGDJDLQVWD3DUW\RQWKHJURXQGWKDWWKH 3DUW\LVWKHDXWKRURUGUDIWHURIWKDWSURYLVLRQ
Q
(DFK3DUW\H[SUHVVO\DJUHHVWRQRWXWLOL]HLQDQ\GLVSXWHKH UHXQGHUDQ\UXOH RIFRQVWUXFWLRQWKDWUHVROYHVWKHLQWHUSUHWDWLRQRIDQ\SURYLVLRQDJDLQVWWKH GUDIWLQJ3DUW\
[Remainder of Page Intentionally Left Blank]
Agenda Page 79
Voluntary Allocation Agreement
v. 2022.2.23
Contract ID # [] SCE – {Counterparty}
,Q:,71(66:+(5(2)WKH3DUWLHVKDYHFDXVHGWKLV$JUHHPHQWWREHGXO\H[HFXWHGDVRIWKH (IIHFWLYH'DWHILUVWZULWWHQ
{COUNTERPARTY LEGAL NAME},
D{type of organization}.
6287+(51&$/,)251,$(',621
&203$1<
D&DOLIRUQLDFRUSRUDWLRQ
%\
% \
1DPH
1DPH
7LWOH
7LWOH
'DWH
'DWH
Agenda Page 80
Voluntary Allocation Agreement
v. 2022.02.23
Appendix A – Defined Terms SCE – { Counterparty}
Pro Forma Ver. 2022.02.23
$33(1',;$
'(),1('7(506
>³$FW´PHDQV>@@{SCE Note: Cite the state enabling and other relevant statutes applicable to Governmental Entity or Public Power System. Defined term is only included if Counterparty is a Governmental Entity or Public Power System.} ³$IILOLDWH´PHDQVZLWKUHVSHFWWRDQ\SHUVRQDQ\RWKHUSHUVRQ RWKHUWKDQDQLQGLYLGXDO
WKDWGLUHFWO\RULQGLUHFWO\WKURXJKRQHRUPRUHLQWHUPHGLDULHVFRQWUROVRULVFRQWUROOHG E\RULVXQGHUFRPPRQFRQWUROZLWKVXFKSHUVRQ)RUWKLVSXUSRVH³FRQWURO´PHDQVWKH GLUHFWRULQGLUHFWRZQHUVKLSRIILIW\SHUFHQW
RUPRUHRIWKHRXWVWDQGLQJFDSLWDO
VWRFNRURWKHUHTXLW\LQWHUHVWVKDYLQJRUGLQDU\YRWLQJSRZHU ³$JUHHPHQW´KDVWKHPHDQLQJVSHFLILHGLQWKHLQWURGXFWRU\SDUDJUDSKKHUHRI ³$UELWUDWRU´KDVWKHPHDQLQJSURYLGHGLQ6HFWLRQ
E
³$XWRPDWHG&OHDULQJ+RXVH´RU³$&+´PHDQVWKDWVSHFLILFHOHFWURQLFQHWZRUNIRU ILQDQFLDOWUDQVDFWLRQVDQGIXQGWUDQVIHUVPDQDJHGE\WKH$XWRPDWHG&OHDULQJ+RXVH 1HWZRUN
³%DQNUXSW´PHDQVZLWKUHVSHFWWRDQ\HQWLW\VXFKHQWLW\ L
ILOHVDSHWLWLRQRURWKHUZLVH
FRPPHQFHVDXWKRUL]HVRUDFTXLHVFHVLQWKHFRPPHQFHPHQWRIDSURFHHGLQJRUFDXVHRI DFWLRQXQGHUDQ\EDQNUXSWF\LQVROYHQF\UHRUJDQL]DWLRQRUVLPLODUODZRUKDVDQ\VXFK SHWLWLRQILOHGRUFRPPHQFHGDJDLQVWLW
LL
PDNHVDQDVVLJQPHQWRUDQ\JHQHUDO
DUUDQJHPHQWIRUWKHEHQHILWRIFUHGLWRUV
LLL
RWKHUZLVHEHFRPHVEDQNUXSWRULQVROYHQW
KRZHYHUHYLGHQFHG
LY
KDVDOLTXLGDWRUDGPLQLVWUDWRUUHFHLYHUWUXVWHHFRQVHUYDWRURU VLPLODURIILFLDODSSRLQWHGZLWKUHVSHFWWRLWRUDQ\VXEVWDQWLDOSRUWLRQRILWVSURSHUW\RU DVVHWVRU
Y
LVJHQHUDOO\XQDEOHWRSD\LWVGHEWVDVWKH\IDOOGXH ³%DQNUXSWF\&RGH´KDVWKHPHDQLQJSURYLGHGLQ6HFWLRQ
³%XVLQHVV'D\´PHDQVDQ\GD\H[FHSWD6DWXUGD\6XQGD\D)HGHUDO5HVHUYH%DQN KROLGD\RUWKH)ULGD\LPPHGLDWHO\IROORZLQJWKH867KDQNVJLYLQJKROLGD\$%XVLQHVV 'D\VKDOORSHQDW
DPDQGFORVHDW
SPORFDOWLPHIRUWKHUHOHYDQW3DUW\¶V
SULQFLSDOSODFHRIEXVLQHVV7KHUHOHYDQW3DUW\LQHDFKLQVWDQFHXQOHVVRWKHUZLVH VSHFLILHGVKDOOEHWKH3DUW\IURPZKRPWKHQRWLFHSD\PHQWRUGHOLYHU\LVEHLQJVHQWDQG E\ZKRPWKHQRWLFHRUSD\PHQWRUGHOLYHU\LVWREHUHFHLYHG ³&$,62´PHDQVWKH&DOLIRUQLD,QGHSHQGHQW6\VWHP2SHUDWRU&RUSRUDWLRQRUDQ\ VXFFHVVRUHQWLW\SHUIRUPLQJWKHVDPHIXQFWLRQV
³&$,627DULII´PHDQVWKH&DOLIRUQLD,QGHSHQGHQW6\VWHP2SHUDWRU&RUSRUDWLRQ7DULII %XVLQHVV3UDFWLFH0DQXDOV
%30V
2SHUDWLQJ$JUHHPHQWVDQG2SHUDWLQJ3URFHGXUHV
LQFOXGLQJWKHUXOHVSURWRFROVSURFHGXUHVDQGVWDQGDUGVDWWDFKHGWKHUHWRDVWKHVDPHPD\ EHDPHQGHGRUPRGLILHGIURPWLPHWRWLPHDQGDSSURYHGE\)(5&LIDSSOLFDEOH Agenda Page 81
Voluntary Allocation Agreement
v. 2022.02.23
Appendix A – Defined Terms SCE – { Counterparty}
Pro Forma Ver. 2022.02.23
³&DOFXODWLRQ3HULRG´PHDQVHDFKFDOHQGDUPRQWKGXULQJWKH'HOLYHU\3HULRG ³&DOLIRUQLD536(OLJLEOH(OHFWULF(QHUJ\´PHDQVHOHFWULFHQHUJ\IURPDQ(OLJLEOH 5HQHZDEOH(QHUJ\5HVRXUFHDVVXFKWHUPLVGHILQHGLQ3XEOLF8WLOLWLHV&RGH 6HFWLRQ
DQG
³&(&´PHDQVWKH&DOLIRUQLD(QHUJ\&RPPLVVLRQRULWVUHJXODWRU\VXFFHVVRU ³&ODLPV´PHDQVDOOWKLUGSDUW\FODLPVRUDFWLRQVWKUHDWHQHGRUILOHGDQGZKHWKHU JURXQGOHVVIDOVHIUDXGXOHQWRURWKHUZLVHWKDWGLUHFWO\RULQGLUHFWO\UHODWHWRWKHVXEMHFW PDWWHURIDQLQGHPQLW\DQGWKHUHVXOWLQJORVVHVGDPDJHVH[SHQVHVDWWRUQH\V¶IHHVDQG FRXUWFRVWVZKHWKHULQFXUUHGE\VHWWOHPHQWRURWKHUZLVHDQGZKHWKHUVXFKFODLPVRU DFWLRQVDUHWKUHDWHQHGRUILOHGSULRUWRRUDIWHUWKHWHUPLQDWLRQRIWKLV$JUHHPHQW ³&ODLPLQJ3DUW\´KDVWKHPHDQLQJSURYLGHGLQ6HFWLRQ ³&RQWUDFW3ULFH´VKDOOKDYHWKHPHDQLQJSURYLGHGLQ6HFWLRQ ³&RQWUDFW4XDQWLW\´VKDOOKDYHWKHPHDQLQJSURYLGHGLQ6HFWLRQ ³(QHUJ\3ULFH´VKDOOEH,QGH[
³&RVWV´PHDQVZLWKUHVSHFWWRWKH1RQ'HIDXOWLQJ3DUW\EURNHUDJHIHHVFRPPLVVLRQV DQGRWKHUVLPLODUWKLUGSDUW\WUDQVDFWLRQFRVWVDQGH[SHQVHVUHDVRQDEO\LQFXUUHGE\VXFK 3DUW\HLWKHULQWHUPLQDWLQJDQ\DUUDQJHPHQWSXUVXDQWWRZKLFKLWKDVKHGJHGLWV REOLJDWLRQVRUHQWHULQJLQWRQHZDUUDQJHPHQWVZKLFKUHSODFHWKHWUDQVDFWLRQV FRQWHPSODWHGXQGHUWKH$JUHHPHQW
DQGDOOUHDVRQDEOHH[SHQVHV
H[FOXGLQJDWWRUQH\V¶
IHHV
LQFXUUHGE\WKH1RQ'HIDXOWLQJ3DUW\LQFRQQHFWLRQZLWKWKHWHUPLQDWLRQRIWKLV $JUHHPHQW
³&38&´PHDQVWKH&DOLIRUQLD3XEOLF8WLOLWLHV&RPPLVVLRQ ³&38&$SSURYDO´PHDQVDGHFLVLRQRIWKH&38&WKDW
L
LVILQDODQGQRORQJHUVXEMHFWWR
DSSHDOZKLFKDSSURYHVWKH$JUHHPHQWLQIXOODQGLQWKHIRUPSUHVHQWHGRQWHUPVDQG FRQGLWLRQVDFFHSWDEOHWR6&(LQLWVVROHGLVFUHWLRQLQFOXGLQJZLWKRXWOLPLWDWLRQWHUPVDQG FRQGLWLRQVUHODWHGWRFRVWUHFRYHU\DQGFRVWDOORFDWLRQRIDPRXQWVSDLGWR6&(RUWR &RXQWHUSDUW\XQGHUWKH$JUHHPHQW
DQG
LL
GRHVQRWFRQWDLQFRQGLWLRQVRUPRGLILFDWLRQV
XQDFFHSWDEOHWR6&(LQ6&(¶VVROHGLVFUHWLRQ
³&UHGLW5DWLQJ´PHDQVZLWKUHVSHFWWRDQ\HQWLW\WKHUDWLQJWKHQDVVLJQHGWRVXFKHQWLW\¶V XQVHFXUHGVHQLRUORQJWHUPGHEWRUGHSRVLWREOLJDWLRQV QRWVXSSRUWHGE\WKLUGSDUW\
FUHGLWHQKDQFHPHQWV
E\WKH5DWLQJV$JHQFLHV,IQRUDWLQJLVDVVLJQHGWRVXFKHQWLW\¶V XQVHFXUHGVHQLRUORQJWHUPGHEWRUGHSRVLWREOLJDWLRQVWKH5DWLQJV$JHQFLHVWKHQ ³&UHGLW5DWLQJ´VKDOOPHDQWKHJHQHUDOFRUSRUDWHFUHGLWUDWLQJRUORQJWHUPLVVXHUUDWLQJ DVVLJQHGWRVXFKHQWLW\E\WKH5DWLQJV$JHQFLHV,IDQ\HQWLW\LVUDWHGE\PRUHWKDQRQH 5DWLQJV$JHQF\DQGWKHUDWLQJVDUHDWGLIIHUHQWOHYHOVWKHQ³&UHGLW5DWLQJ´PHDQVWKH ORZHVWVXFKUDWLQJ
Agenda Page 82
Voluntary Allocation Agreement
v. 2022.02.23
Appendix A – Defined Terms SCE – { Counterparty}
Pro Forma Ver. 2022.02.23
³'D\$KHDG0DUNHW´KDVWKHPHDQLQJVHWIRUWKLQWKH7DULII ³'HIDXOWLQJ3DUW\´KDVWKHPHDQLQJSURYLGHGLQ6HFWLRQ ³'HOLYHUHG(QHUJ\´PHDQVWKH&DOLIRUQLD536(OLJLEOH(OHFWULF(QHUJ\IURPD3URMHFW WKDWLVGHOLYHUHGDQGVFKHGXOHGLQWRHLWKHUWKH5HDO7LPH0DUNHWDQGRU'D\$KHDG 0DUNHWE\6&(RQEHKDOIRI&RXQWHUSDUW\DWWKH'HOLYHU\3RLQW ³'HOLYHU\3RLQW´KDVWKHPHDQLQJSURYLGHGLQ6HFWLRQ ³'HOLYHU\3HULRG´KDVWKHPHDQLQJSURYLGHGLQ6HFWLRQ ³'HSDUWHG/RDG&XVWRPHUV´KDVWKHPHDQLQJSURYLGHGLQWKH5HFLWDOV ³(DUO\7HUPLQDWLRQ'DWH´KDVWKHPHDQLQJSURYLGHGLQ6HFWLRQ ³(IIHFWLYH'DWH´KDVWKHPHDQLQJSURYLGHGLQWKHLQWURGXFWRU\SDUDJUDSKRIWKLV $JUHHPHQW
³(OLJLEOH5363&,$3RUWIROLR´KDVWKHPHDQLQJSURYLGHGLQWKH5HFLWDOV ³(YHQWRI'HIDXOW´KDVWKHPHDQLQJVHWIRUWKLQ6HFWLRQ ³)HGHUDO)XQGV(IIHFWLYH5DWH´PHDQVIRUDQ\JLYHQPRQWKWKHDYHUDJHRIWKHDQQXDO LQWHUHVWUDWHVUHSRUWHGIRUDOOZHHNGD\VLQWKHPRQWKRSSRVLWHWKHFDSWLRQ³)HGHUDOIXQGV
HIIHFWLYH
´DVVHWIRUWKLQWKH+UHOHDVHRUDQ\VXFFHVVRUSXEOLFDWLRQSXEOLVKHGE\WKH %RDUGRI*RYHUQRUVRIWKH)HGHUDO5HVHUYH6\VWHP
³)RUFH0DMHXUH´PHDQVDQHYHQWRUFLUFXPVWDQFHZKLFKSUHYHQWVRQH3DUW\IURP SHUIRUPLQJLWVREOLJDWLRQVXQGHUWKLV$JUHHPHQWZKLFKHYHQWRUFLUFXPVWDQFHZDVQRW DQWLFLSDWHGDVRIWKH(IIHFWLYH'DWHZKLFKLVQRWZLWKLQWKHUHDVRQDEOHFRQWURORIRUWKH UHVXOWRIWKHQHJOLJHQFHRIWKH&ODLPLQJ3DUW\DQGZKLFKE\WKHH[HUFLVHRIGXH GLOLJHQFHWKH&ODLPLQJ3DUW\LVXQDEOHWRRYHUFRPHRUDYRLGRUFDXVHWREHDYRLGHG )RUFH0DMHXUHVKDOOQRWEHEDVHGRQ
L
WKHORVVRI&RXQWHUSDUW\¶VPDUNHWV
LL
&RXQWHUSDUW\¶VLQDELOLW\HFRQRPLFDOO\WRXVHRUUHVHOOWKH3URGXFWSXUFKDVHGKHUHXQGHU
LLL
WKHORVVRUIDLOXUHRI6&(¶VVXSSO\
RU
LY
6&(¶VDELOLW\WRVHOOWKH3URGXFWDWDSULFH
JUHDWHUWKDQWKH&RQWUDFW3ULFH1HLWKHU3DUW\PD\UDLVHDFODLPRI)RUFH0DMHXUHEDVHG LQZKROHRULQSDUWRQFXUWDLOPHQWE\D7UDQVPLVVLRQ3URYLGHUXQOHVV L
VXFK3DUW\KDV
FRQWUDFWHGIRUILUPWUDQVPLVVLRQZLWKD7UDQVPLVVLRQ3URYLGHUIRUWKH3URGXFWWREH GHOLYHUHGWRRUUHFHLYHGDWWKH'HOLYHU\3RLQWDQG
LL
VXFKFXUWDLOPHQWLVGXHWR³IRUFH
PDMHXUH´RU³XQFRQWUROODEOHIRUFH´RUDVLPLODUWHUPDVGHILQHGXQGHUWKH7UDQVPLVVLRQ 3URYLGHU¶VWDULII
SURYLGHGKRZHYHUWKDWH[LVWHQFHRIWKHIRUHJRLQJIDFWRUVVKDOOQRWEH VXIILFLHQWWRFRQFOXVLYHO\RUSUHVXPSWLYHO\SURYHWKHH[LVWHQFHRID)RUFH0DMHXUHDEVHQW DVKRZLQJRIRWKHUIDFWVDQGFLUFXPVWDQFHVZKLFKLQWKHDJJUHJDWHZLWKVXFKIDFWRUV HVWDEOLVKWKDWD)RUFH0DMHXUHDVGHILQHGLQWKHILUVWVHQWHQFHKHUHRIKDVRFFXUUHG>,IWKH &ODLPLQJ3DUW\LVD*RYHUQPHQWDO(QWLW\RU3XEOLF3RZHU6\VWHP)RUFH0DMHXUHGRHV Agenda Page 83
Voluntary Allocation Agreement
v. 2022.02.23
Appendix A – Defined Terms SCE – { Counterparty}
Pro Forma Ver. 2022.02.23
QRWLQFOXGHDQ\DFWLRQWDNHQE\WKH*RYHUQPHQWDO(QWLW\RU3XEOLF3RZHU6\VWHPLQLWV JRYHUQPHQWDOFDSDFLW\@{SCE Note: Bracketed sentence is only included if Counterparty is a Governmental Entity or Public Power System.}
³)RUZDUG3ULFH$VVHVVPHQWV´PHDQVTXRWDWLRQVVROLFLWHGRUREWDLQHGLQJRRGIDLWKIURP UHJXODUO\SXEOLVKHGDQGZLGHO\GLVWULEXWHGIRUZDUGSULFHDVVHVVPHQWVIURPDEURNHUWKDW LVQRWDQ$IILOLDWHRIHLWKHU3DUW\DQGZKRLVDFWLYHO\SDUWLFLSDWLQJLQPDUNHWVIRUWKH UHOHYDQW3URGXFWV
³*DLQV´PHDQVZLWKUHVSHFWWRDQ\3DUW\DQDPRXQWHTXDOWRWKHSUHVHQWYDOXHRIWKH HFRQRPLFEHQHILWWRLWLIDQ\
H[FOXVLYHRI&RVWV
UHVXOWLQJIURPWKHWHUPLQDWLRQRIWKLV
$JUHHPHQWGHWHUPLQHGLQDFRPPHUFLDOO\UHDVRQDEOHPDQQHULQDFFRUGDQFHZLWK6HFWLRQ
³*RYHUQPHQWDO$XWKRULW\´PHDQVDQ\
D
IHGHUDOVWDWHORFDOPXQLFLSDORURWKHU
JRYHUQPHQW
E
JRYHUQPHQWDOUHJXODWRU\RUDGPLQLVWUDWLYHDJHQF\FRPPLVVLRQRURWKHU DXWKRULW\ODZIXOO\H[HUFLVLQJRUHQWLWOHGWRH[HUFLVHDQ\DGPLQLVWUDWLYHH[HFXWLYH MXGLFLDOOHJLVODWLYHSROLFHUHJXODWRU\RUWD[LQJDXWKRULW\RUSRZHU DQG
F
FRXUWRU
JRYHUQPHQWDOWULEXQDO
³*RYHUQPHQWDO&KDUJHV´VKDOOKDYHWKHPHDQLQJSURYLGHGLQ6HFWLRQ E
>³*RYHUQPHQWDO(QWLW\RU3XEOLF3RZHU6\VWHP´PHDQVDPXQLFLSDOLW\FRXQW\ JRYHUQPHQWDOERDUGSXEOLFSRZHUDXWKRULW\SXEOLFXWLOLW\GLVWULFWMRLQWDFWLRQDJHQF\RU RWKHUVLPLODUSROLWLFDOVXEGLYLVLRQRUSXEOLFHQWLW\RIWKH8QLWHG6WDWHVRQHRUPRUH6WDWHV RUWHUULWRULHVRUDQ\FRPELQDWLRQWKHUHRI@{SCE Note: Defined term is only included if Counterparty is a Governmental Entity or Public Power System.} ³*UHHQ$WWULEXWHV´PHDQVDQ\DQGDOOFUHGLWVEHQHILWVHPLVVLRQVUHGXFWLRQVRIIVHWVDQG DOORZDQFHVKRZVRHYHUHQWLWOHGDWWULEXWDEOHWRWKHJHQHUDWLRQIURPD3URMHFWDQGLWV DYRLGHGHPLVVLRQRISROOXWDQWV*UHHQ$WWULEXWHVLQFOXGHEXWDUHQRWOLPLWHGWR 5HQHZDEOH(QHUJ\&UHGLWVDVZHOODV
$Q\DYRLGHGHPLVVLRQRISROOXWDQWVWRWKHDLUVRLORUZDWHU VXFKDVVXOIXU R[LGHV
62[
QLWURJHQR[LGHV
12[
FDUERQPRQR[LGH
&2
DQGRWKHU
SROOXWDQWV
$Q\DYRLGHGHPLVVLRQVRIFDUERQGLR[LGH
&2
PHWKDQH
&+
QLWURXV
R[LGHK\GURIOXRURFDUERQVSHUIOXRURFDUERQVVXOIXUKH[DIOXRULGHDQG RWKHUJUHHQKRXVHJDVHV
*+*V
WKDWKDYHEHHQGHWHUPLQHGE\WKH8QLWHG
1DWLRQV,QWHUJRYHUQPHQWDO3DQHORQ&OLPDWH&KDQJHRURWKHUZLVHE\ODZ WRFRQWULEXWHWRWKHDFWXDORUSRWHQWLDOWKUHDWRIDOWHULQJWKH(DUWK¶VFOLPDWH E\WUDSSLQJKHDWLQWKHDWPRVSKHUH
$YRLGHGHPLVVLRQVPD\RUPD\QRWKDYHDQ\YDOXHIRU*+*FRPSOLDQFHSXUSRVHV$OWKRXJK DYRLGHGHPLVVLRQVDUHLQFOXGHGLQWKHOLVWRI*UHHQ$WWULEXWHVWKLVLQFOXVLRQGRHVQRWFUHDWHDQ\ULJKWWRXVH WKRVHDYRLGHGHPLVVLRQVWRFRPSO\ZLWKDQ\*+*UHJXODWRU\SURJUDP Agenda Page 84
Voluntary Allocation Agreement
v. 2022.02.23
Appendix A – Defined Terms SCE – { Counterparty}
Pro Forma Ver. 2022.02.23
7KHUHSRUWLQJULJKWVWRWKHVHDYRLGHGHPLVVLRQVVXFKDV*UH HQ7DJ 5HSRUWLQJ5LJKWV
*UHHQ7DJ5HSRUWLQJ5LJKWVDUHWKHULJKWRID*UHHQ7DJ3XUFKDVHUWRUHSRUWWKH RZQHUVKLSRIDFFXPXODWHG*UHHQ7DJVLQFRPSOLDQFHZLWKIHGHUDORUVWDWHODZLI DSSOLFDEOHDQGWRDIHGHUDORUVWDWHDJHQF\RUDQ\RWKHUSDUW\DWWKH*UHHQ7DJ 3XUFKDVHU¶VGLVFUHWLRQDQGLQFOXGHZLWKRXWOLPLWDWLRQWKRVH*UHHQ7DJ5HSRUWLQJ5LJKWV DFFUXLQJXQGHU6HFWLRQ
E
RI7KH(QHUJ\3ROLF\$FWRI
DQGDQ\SUHVHQWRU
IXWXUHIHGHUDOVWDWHRUORFDOODZUHJXODWLRQRUELOODQGLQWHUQDWLRQDORUIRUHLJQHPLVVLRQV WUDGLQJSURJUDP*UHHQ7DJVDUHDFFXPXODWHGRQD0:KEDVLVDQGRQH*UHHQ7DJ UHSUHVHQWVWKH*UHHQ$WWULEXWHVDVVRFLDWHGZLWKRQH
0:KRIHQHUJ\
*UHHQ$WWULEXWHVGRQRWLQFOXGH
L
$Q\HQHUJ\FDSDFLW\UHOLDELOLW\RURWKHUSRZHUDWWULEXWHV IURPD3URMHFW
LL
3URGXFWLRQWD[FUHGLWVDVVRFLDWHGZLWKWKHFRQVWUXFWLRQRU RSHUDWLRQRID 3URMHFWDQGRWKHUILQDQFLDOLQFHQWLYHVLQWKHIRUPRIFUHGLWVUHGXFWLRQVRU DOORZDQFHVDVVRFLDWHGZLWKWKH3URMHFWWKDWDUHDSSOLFDEOHWRDVWDWHRU IHGHUDOLQFRPHWD[DWLRQREOLJDWLRQ
LLL
)XHOUHODWHGVXEVLGLHVRU³WLSSLQJIHHV´WKDWPD\EHSDLG WR6&(WRDFFHSW FHUWDLQIXHOVRUORFDOVXEVLGLHVUHFHLYHGE\WKHJHQHUDWRUIRUWKH GHVWUXFWLRQRISDUWLFXODUSUHH[LVWLQJSROOXWDQWVRUWKHSURPRWLRQRIORFDO HQYLURQPHQWDOEHQHILWVRU
LY
(PLVVLRQUHGXFWLRQFUHGLWVHQFXPEHUHGRUXVHGE\D3URMHFW IRU FRPSOLDQFHZLWKORFDOVWDWHRUIHGHUDORSHUDWLQJDQGRUDLUTXDOLW\ SHUPLWV
,ID3URMHFWLVDELRPDVVRUELRJDVIDFLOLW\DQG6&(UHFHLYHVDQ\WUDGDEOH*UHHQ $WWULEXWHVEDVHGRQWKHJUHHQKRXVHJDVUHGXFWLRQEHQHILWVRURWKHUHPLVVLRQRIIVHWV DWWULEXWHGWRLWVIXHOXVDJHLWVKDOOSURYLGH&RXQWHUSDUW\ZLWKVXIILFLHQW*UHHQ$WWULEXWHV WRHQVXUHWKDWWKHUHDUH]HUR
QHWHPLVVLRQVDVVRFLDWHGZLWKWKHSURGXFWLRQRIHOHFWULFLW\ IURPVXFK3URMHFW
³,QGH[´PHDQVIRUHDFK6FKHGXOLQJ3HULRGWKHDSSOLFDEOH&$,62PDUNHWSULFHIRUWKH &$,623ULFLQJ1RGHIRUWKHDSSOLFDEOHSRUWLRQRID3URMHFWIRUHDFKDSSOLFDEOHSHULRGDV SXEOLVKHGE\WKH&$,62RQWKH&$,62ZHEVLWH
RUDQ\VXFFHVVRUWKHUHWRXQOHVVD
VXEVWLWXWHSXEOLFDWLRQDQGRULQGH[LVPXWXDOO\DJUHHGWRE\WKH3DUWLHV ³,QWHUHVW5DWH´PHDQVIRUDQ\GDWHWKHOHVVHURI
D
WKHSHUDQQXPUDWHRILQWHUHVWHTXDO
WRWKHSULPHOHQGLQJUDWHDVPD\IURPWLPHWRWLPHEHSXEOLVKHGLQ7KH:DOO6WUHHW -RXUQDOXQGHU³0RQH\5DWHV´RQVXFKGD\
RULIQRWSXEOLVKHGRQVXFKGD\RQWKHPRVW
UHFHQWSUHFHGLQJGD\RQZKLFKSXEOLVKHG
SOXVWZRSHUFHQW
DQG
E
WKHPD[LPXP
UDWHSHUPLWWHGE\DSSOLFDEOHODZ
³,28V´KDVWKHPHDQLQJSURYLGHGLQWKH5HFLWDOV
³-$06´KDVWKHPHDQLQJSURYLGHGLQ6HFWLRQ
E
Agenda Page 85
Voluntary Allocation Agreement
v. 2022.02.23
Appendix A – Defined Terms SCE – { Counterparty}
Pro Forma Ver. 2022.02.23
³/RDG6KDUH3HUFHQWDJH´PHDQVDSHUFHQWDJHZKLFKUHIOHFWVD&RXQWHUSDUW\¶VIRUHFDVWHG DQQXDOORDGVKDUHDVKDVEHHQGHWHUPLQHGWKURXJKWKHDQQXDO0HHWDQG&RQIHU3URFHVV IRUHDFK3&,$9LQWDJH<HDU
³/RVVHV´PHDQVZLWKUHVSHFWWRDQ\3DUW\DQDPRXQWHTXDOWRWKHSUHVHQWYDOXHRIWKH HFRQRPLFORVVWRLWLIDQ\
H[FOXVLYHRI&RVWV
UHVXOWLQJIURPWHUPLQDWLRQRIWKH
$JUHHPHQWGHWHUPLQHGLQDFRPPHUFLDOO\UHDVRQDEOHPDQQHULQDFFRUGDQFHZLWK6HFWLRQ
³/6(´KDVWKHPHDQLQJSURYLGHGLQWKH5HFLWDOV
³0DUNHW4XRWDWLRQ$YHUDJH3ULFH´PHDQVWKHDULWKPHWLFPHDQRIWKHTXRWDWLRQVVROLFLWHG LQJRRGIDLWKIURPQRWOHVVWKDQWKUHH
5HIHUHQFH0DUNHW0DNHUV
SURYLGHGKRZHYHU
WKDWWKH3DUW\REWDLQLQJWKHTXRWHVVKDOOXVHUHDVRQDEOHHIIRUWVWRREWDLQJRRGIDLWK TXRWDWLRQVIURPDWOHDVWILYH
5HIHUHQFH0DUNHW0DNHUVDQGLIDWOHDVWILYH
VXFK
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
ZLWKRXWUHJDUGWRGLIIHUHQWWLPH]RQHV
RQRUDVVRRQDVUHDVRQDEO\
SUDFWLFDEOHDIWHUWKHUHOHYDQW(DUO\7HUPLQDWLRQ'DWHVXFKGD\DQGWLPHDVRIZKLFK WKRVHTXRWDWLRQVZLOOEHVHOHFWHGVKDOOEHVSHFLILHGLQDFFRUGDQFHZLWK6HFWLRQ,I IHZHUWKDQWKUHH
TXRWDWLRQVDUHREWDLQHGLWZLOOEHGHHPHGWKDWWKH0DUNHW4XRWDWLRQ $YHUDJH3ULFHLQUHVSHFWRIWKLVWHUPLQDWHG$JUHHPHQWFDQQRWEHGHWHUPLQHG ³0HGLDWRU´KDVWKHPHDQLQJSURYLGHGLQ6HFWLRQ
E
³0HHWDQG&RQIHU3URFHVV´VKDOOPHDQWKHDQQXDOPHHWLQJVEHWZHHQWKH&RXQWHUSDUW\ DQG6&(ZKHUHWKH3DUWLHVGHWHUPLQHWKH/RDG6KDUH3HUFHQWDJHIRUHDFK3&,$9LQWDJH <HDUDPRQJRWKHUWKLQJV
³0HUJHU(YHQW´PHDQVZLWKUHVSHFWWRD3DUW\WKDWVXFK3DUW\FRQVROLGDWHVRU DPDOJDPDWHVZLWKPHUJHVLQWRRUZLWKRUWUDQVIHUVVXEVWDQWLDOO\DOOLWVDVVHWVWRDQRWKHU HQWLW\DQG
L
WKHUHVXOWLQJHQWLW\IDLOVWRDVVXPHDOOWKHREOLJDWLRQVRIVXFK3DUW\ KHUHXQGHURU
LL
WKHEHQHILWVRIDQ\FUHGLWVXSSRUWSURYLGHGE\VXFK3DUW\SXUVXDQWWR $UWLFOHIDLOWRH[WHQGWRWKHSHUIRUPDQFHRIVXFKUHVXOWLQJVXUYLYLQJRUWUDQVIHUHH HQWLW\¶VREOLJDWLRQVKHUHXQGHURU
LLL
WKHUHVXOWLQJHQWLW\¶VFUHGLWZRUWKLQHVVLVPDWHULDOO\ ZHDNHUWKDQWKDWRIVXFK3DUW\LPPHGLDWHO\SULRUWRVXFKDFWLRQ7KHFUHGLWZRUWKLQHVVRI WKHUHVXOWLQJHQWLW\VKDOOQRWEHGHHPHGWREHµPDWHULDOO\ZHDNHU¶VRORQJDVWKHUHVXOWLQJ HQWLW\PDLQWDLQVD&UHGLW5DWLQJRIDWOHDVWWKDWRIWKHDSSOLFDEOH3DUW\DVWKHFDVHPD\ EHLPPHGLDWHO\SULRUWRWKHFRQVROLGDWLRQPHUJHURUWUDQVIHU ³0RQWKO\&DVK6HWWOHPHQW$PRXQW´KDVWKHPHDQLQJSURYLGHGLQ6HFWLRQ Agenda Page 86
Voluntary Allocation Agreement
v. 2022.02.23
Appendix A – Defined Terms SCE – { Counterparty}
Pro Forma Ver. 2022.02.23
³0RRG\¶V´PHDQV0RRG\¶V,QYHVWRU6HUYLFHV,QFRULWVVXFFHVVRU ³0:´PHDQVPHJDZDWW
RUNLORZDWWV
RIDOWHUQDWLQJFXUUHQWHOHFWULFHQHUJ\
JHQHUDWLQJFDSDFLW\
³1HZ9ROXQWDU\$OORFDWLRQ$JUHHPHQWV´KDVWKHPHDQLQJSURYLGHGLQ6HFWLRQ ³1RQ'HIDXOWLQJ3DUW\´KDVWKHPHDQLQJSURYLGHGLQ6HFWLRQ ³3&,$´KDVWKHPHDQLQJSURYLGHGLQWKH5HFLWDOV
³3&,$(OLJLEOH/6(V´KDVWKHPHDQLQJSURYLGHGLQWKH5HFLWDOV ³3&,$9LQWDJH<HDU´PHDQVWKHFDOHQGDU\HDUWKDWWKHFRQWUDFWVLQ6&(¶V5363&,$ 3RUWIROLRDUHH[HFXWHG
³3HUIRUPDQFH$VVXUDQFH´PHDQVDOOFROODWHUDOWKDWLVSURYLGHGE\RQH3DUW\WRDQRWKHU 3DUW\ZKHWKHULQWKHIRUPRIFDVKOHWWHUVRIFUHGLWRUFRPELQDWLRQWKHUHRI ³3RWHQWLDO(YHQWRI'HIDXOW´PHDQVDQHYHQWZKLFKZLWKQRWLFHRUSDVVDJHRIWLPHRU ERWKZRXOGFRQVWLWXWHDQ(YHQWRI'HIDXOW
³3ULFLQJ1RGH´KDVWKHPHDQLQJVHWIRUWKLQWKH7DULII ³3URGXFW´KDVWKHPHDQLQJSURYLGHGLQ6HFWLRQ
³3URMHFW´KDVWKHPHDQLQJSURYLGHGLQ6HFWLRQ
³3URMHFW&RQWUDFW4XDQWLW\´KDVWKHPHDQLQJSURYLGHGLQ6HFWLRQ ³5DWLQJV$JHQF\´PHDQVDQ\RI6 3DQG0RRG\¶VDQGDQ\RWKHUUDWLQJVDJHQF\DJUHHG E\WKH3DUWLHV
FROOHFWLYHO\WKH³5DWLQJ$JHQFLHV´
³5HDO7LPH0DUNHW´KDVWKHPHDQLQJVHWIRUWKLQWKH7DULII ³5(&3ULFH´PHDQVWKH³536$GGHU´IRUWKHFDOHQGDU\HDULQZKLFKWKH5(&VDUH JHQHUDWHGSXEOLVKHGE\WKH(QHUJ\'LYLVLRQRIWKH&38&DVWKH³&DOFXODWLRQRIWKH 0DUNHW3ULFH%HQFKPDUNVIRUWKH3RZHU&KDUJH,QGLIIHUHQFH$GMXVWPHQW)RUHFDVWDQG 7UXH8S´ZKLFKPD\EHUHYLVHGLQIXWXUHSXEOLFDWLRQVE\WKH&38&DVWKHILQDO³536 $GGHU´
³5HIHUHQFH0DUNHW0DNHU´PHDQVDOHDGLQJGHDOHULQWKHUHOHYDQWPDUNHWWKDWLVQRWDQ $IILOLDWHRIHLWKHU3DUW\DQGWKDWLVVHOHFWHGE\D3DUW\LQJRRGIDLWKDPRQJGHDOHUVRIWKH KLJKHVWFUHGLWVWDQGLQJZKLFKVDWLVI\DOOWKHFULWHULDWKDWVXFK3DUW\DSSOLHVJHQHUDOO\DW WKHWLPHLQGHFLGLQJZKHWKHUWRRIIHURUWRPDNHDQH[WHQVLRQRIFUHGLW6XFKGHDOHUPD\ EHUHSUHVHQWHGE\DEURNHU
Agenda Page 87
Voluntary Allocation Agreement
v. 2022.02.23
Appendix A – Defined Terms SCE – { Counterparty}
Pro Forma Ver. 2022.02.23
³5HJXODWRU\(YHQW´KDVWKHPHDQLQJSURYLGHGLQ6HFWLRQ
³5HQHZDEOH(QHUJ\&UHGLW´RU³5(&´KDVWKHPHDQLQJVHWIRUWKLQ&38&'HFLVLRQ DVVXFKGHILQLWLRQPD\EHPRGLILHGE\WKH&38&RUDSSOLFDEOHODZIURPWLPHWR WLPH
³5HVSRQVLEOH2IILFHU´VKDOOPHDQWKH&KLHI)LQDQFLDO2IILFHU7UHDVXUHURUDQ\$VVLVWDQW 7UHDVXUHU
³5HYLVHG/RDG6KDUH3HUFHQWDJHV´KDVWKHPHDQLQJSURYLGHGLQ6HFWLRQ ³536´PHDQVWKH&DOLIRUQLD5HQHZDEOHV3RUWIROLR6WDQGDUG3URJUDPDVFRGLILHGDW &DOLIRUQLD3XEOLF8WLOLWLHV&RGH6HFWLRQ
et seq.DQGDQ\GHFLVLRQVE\WKH&38&
UHODWHGWKHUHWR
³5363&,$3RUWIROLR´KDVWKHPHDQLQJSURYLGHGLQWKH5HFLWDOV ³6 3´PHDQVWKH6WDQGDUG 3RRU¶V5DWLQJ*URXS
DGLYLVLRQRI0F*UDZ+LOO,QF
RU
LWVVXFFHVVRU
³6FKHGXOLQJ3HULRG´PHDQVHDFKKRXURIWKH'HOLYHU\3HULRGIRUD3URMHFW ³6HWWOHPHQW$PRXQW´PHDQVZLWKUHVSHFWWRWKLV$JUHHPHQWDQGWKH1RQ'HIDXOWLQJ 3DUW\WKH/RVVHVRU*DLQVDQG&RVWVH[SUHVVHGLQ86'ROODUVZKLFKVXFKSDUW\LQFXUV DVDUHVXOWRIWKHOLTXLGDWLRQRIWKH$JUHHPHQWSXUVXDQWWR6HFWLRQ >³6SHFLDO)XQG´PHDQVDIXQGRUDFFRXQWRIWKH*RYHUQPHQWDO(QW LW\RU3XEOLF3RZHU 6\VWHPVHWDVLGHDQGRUSOHGJHGWRVDWLVI\WKH*RYHUQPHQWDO(QW LW\¶VRU3XEOLF3RZHU 6\VWHP¶VREOLJDWLRQVKHUHXQGHURXWRIZKLFKDPRXQWVVKDOOEHSD LGWRVDWLVI\DOORIWKH *RYHUQPHQWDO(QWLW\¶VRU3XEOLF3RZHU6\VWHP¶VREOLJDWLRQVXQGHUWKLV$JUHHPHQWIRUWKH HQWLUH'HOLYHU\3HULRG@ {SCE Note: Defined term is only included if Counterparty is a Governmental Entity or Public Power System.}
³6SHFLILHG(QHUJ\7UDQVDFWLRQ´PHDQVDQ\WUDQVDFWLRQ
LQFOXGLQJDQDJUHHPHQWZLWK
UHVSHFWWRDQ\VXFKWUDQVDFWLRQ
RUDJUHHPHQWQRZH[LVWLQJRUKHUHDIWHUHQWHUHGLQWR
EHWZHHQ6&(DQG&RXQWHUSDUW\ZKLFKLVDWUDQVDFWLRQXQGHUWKH(GLVRQ(OHFWULF,QVWLWXWH 0DVWHU3RZHU3XUFKDVHDQG6DOH$JUHHPHQW,QWHUQDWLRQDO6ZDSVDQG'HULYDWLYHV $VVRFLDWLRQ0DVWHU$JUHHPHQWWKH1RUWK$PHULFDQ(QHUJ\6WDQGDUGV%RDUG%DVH &RQWUDFWIRU3XUFKDVHDQG6DOHRI1DWXUDO*DVWKH:633$JUHHPHQWRUXQGHUDQ\RWKHU DJUHHPHQWZLWKUHVSHFWWRWKHSXUFKDVHVDOHRUWUDQVIHURI D
ZKROHVDOHSK\VLFDOHOHFWULF
HQHUJ\FDSDFLW\DQFLOODU\VHUYLFHVRUUHVRXUFHDGHTXDF\EHQHILWV
E
ZKROHVDOHSK\VLFDO
QDWXUDOJDV
F
WUDQVPLVVLRQVHUYLFHVRUFDSDFLW\
G
HPLVVLRQV
LQFOXGLQJJUHHQKRXVH
JDVHPLVVLRQV
UHODWHGFUHGLWVDOORZDQFHVRURIIVHWVRU
H
ILQDQFLDOGHULYDWLYHSURGXFWV
UHODWHGWRDQ\RIWKHIRUHJRLQJ
³7HUP´KDVWKHPHDQLQJVSHFLILHGLQ6HFWLRQ
Agenda Page 88
Voluntary Allocation Agreement
v. 2022.02.23
Appendix A – Defined Terms SCE – { Counterparty}
Pro Forma Ver. 2022.02.23
³7HUPLQDWLRQ3D\PHQW´KDVWKHPHDQLQJSURYLGHGLQ6HFWLRQ ³7UDQVPLVVLRQ3URYLGHU´PHDQVDQ\HQWLW\RUHQWLWLHVWUDQVPLWWLQJRUWUDQVSRUWLQJWKH 3URGXFWRQEHKDOIRI6&(WRWKH'HOLYHU\3RLQWXQGHUWKLV$JUHHPHQW ³9LQWDJH<HDU´PHDQVWKHFDOHQGDU\HDUWKH:5(*,6&HUWLILFDWHLVDVVRFLDWHGZLWK WKURXJKWKHJHQHUDWLRQRIHOHFWULFHQHUJ\
³:5(*,6´PHDQVWKH:HVWHUQ5HQHZDEOH(QHUJ\*HQHUDWLRQ,QIRUPDWLRQ6\VWHPRU RWKHUSURFHVVUHFRJQL]HGXQGHUDSSOLFDEOHODZVIRUWKHUHJLVWUDWLRQWUDQVIHURURZQHUVKLS RI*UHHQ$WWULEXWHV
³:5(*,6$FFRXQW+ROGHU´PHDQV³$FFRXQW+ROGHU´DVGHILQHGE\:5(*,6LQWKH :5(*,62SHUDWLQJ5XOHV
³:5(*,6&HUWLILFDWH´PHDQV³&HUWLILFDWH´DVGHILQHGE\:5(*,6LQWKH:5(*,6 2SHUDWLQJ5XOHV
³:5(*,62SHUDWLQJ5XOHV´PHDQVWKHRSHUDWLQJUXOHVDQGUHTXLUHPHQWVDGRSWHGE\ :5(*,6DVDPHQGHGVXSSOHPHQWHGRUUHSODFHGIURPWLPHWRWLPH Agenda Page 89
Voluntary Allocation Agreement
v. 2022.02.23
SCE – [Counterparty]
Pro Forma Ver. 2022.02.23
$33(1',;%
352-(&76
>$VSUHDGVKHHWUHVXOWLQJIURPWKH0HHWDQG&RQIHU3URFHVVZLOOEHDWWDFKHGDQGZLOO LQFOXGHWKHIROORZLQJLQIRUPDWLRQIRUHDFK3URMHFW
• &RQWUDFW,'
• 3URMHFW1DPH
• 3&,$9LQWDJH<HDU
• 5HVRXUFH7\SH
• 3&&
• ,Q6WDWH2XWRI6WDWH
• 5HVRXUFH,'
• &(&,'
• :5(*,6,'
• 7RWDO<HDUO\$YDLODEOH$OORFDWLRQ
0:K
SHUYLQWDJH
• /6(¶V<HDUO\$YDLODEOH$OORFDWLRQ
0:K
SHUYLQWDJH
• /RDG6KDUH3HUFHQWDJH
DQG
• (QGRI'HOLYHU\7HUP@
Agenda Page 90
Voluntary Allocation Agreement
v. 2022.02.23
SCE – [Counterparty]
Pro Forma Ver. 2022.02.23
$33(1',;&
127,&(6
{Counterparty Legal Name} 6RXWKHUQ&DOLIRUQLD(GLVRQ&RPSDQ\ $OO1RWLFHV
6WUHHW
&LW\
=LS
$OO1RWLFHV
:DOQXW*URYH$YH*24XDG&
5RVHPHDG&$
$WWQ
3KRQH
(PDLO
'XQV
)HGHUDO7D[,'1XPEHU
$WWQ
'LUHFWRU(QHUJ\&RQWUDFWV0DQDJHPHQW
3KRQH
(OHFWURQLF)DFVLPLOH
(PDLO
(QHUJ\FRQWUDFWV#VFHFRP
'XQV
)HGHUDO7D[,'1XPEHU
,QYRLFHV
$WWQ
3KRQH
(PDLO
,QYRLFHV
$WWQ
(30 &RQWUDFW6HWWOHPHQWV
3KRQH
(PDLO
33)'3RZHU6HWWOH#VFHFRP
7UDGLQJ
$WWQ
3KRQH
(PDLO
7UDGLQJ
$WWQ
>@
3KRQH
'D\$KHDG
RU
5HDO7LPH
)DFVLPLOH
>@
(PDLO
>@
6FKHGXOLQJ
$WWQ
3KRQH
(PDLO
6FKHGXOLQJ
$WWQ
0DQDJHURU'D\$KHDG2SHUDWLRQV
3KRQH
'D\$KHDG
RU
5HDO7LPH
)DFVLPLOH
(PDLO
SUHVFKHG
#VFHFRP
3D\PHQWV
$WWQ
3KRQH
(PDLO
3D\PHQWV
$WWQ
(30 &RQWUDFW6HWWOHPHQWV
3KRQH
(PDLO
33)'3RZHU6HWWOH#VFHFRP
&UHGLWDQG&ROOHFWLRQV
$WWQ
3KRQH
(PDLO
&UHGLW
$WWQ
0DQDJHURI&UHGLW5LVN
3KRQH
&ROODWHUDO
6RXWKHUQ&DOLIRUQLD(GLVRQ&RPSDQ\
$WWQ
0DQDJHURI5LVN2SHUDWLRQV &ROODWHUDO
0DQDJHPHQW
:DOQXW*URYH$YHQXH*24XDG%
5RVHPHDG&$
3KRQH
(PDLO
6&(&ROODWHUDO#VFHFRP
Agenda Page 91
Voluntary Allocation Agreement
v. 2022.02.23
SCE – [Counterparty]
Pro Forma Ver. 2022.02.23
:LWKDGGLWLRQDO1RWLFHVRIDQ(YHQWRI'HIDXOWRU
3RWHQWLDO(YHQWRI'HIDXOWWR
$WWQ
3KRQH
(PDLO
:LWKDGGLWLRQDO1RWLFHVRIDQ(YHQWRI'HIDXOWRU
3RWHQWLDO(YHQWRI'HIDXOWWR
$WWQ
'LUHFWRUDQG0DQDJLQJ$WWRUQH\3RZHU
3URFXUHPHQW6HFWLRQ
(PDLO
33/HJDO1RWLFH#VFHFRP
Agenda Page 92
STAFF REPORT
City of Lancaster
CC 16
5/3/2022
JC
Date: May 3, 2022
To: Mayor Parris and City Council Members
From: Jeff Hogan, Senior Director – Development Services Chenin Dow, Senior Manager – Real Estate and Economic Development Sydney Yeseta, Assistant Manager – Economic Development Subject: Resolution of Intention to Renew the Lancaster Tourism Business Improvement District
Recommendation:
Adopt Resolution No. 22-15, declaring the City Council’s intention to renew the Lancaster Tourism Business Improvement District (TBID), and establishing the time and place of a public meeting and a public hearing thereon, and giving notice hereof.
Fiscal Impact:
None.
Background:
Since its inception in 2013, the Lancaster Tourism Business Improvement District (TBID) has seen resounding success in attracting new tourism and generating increased hotel stays within the City of Lancaster. Dubbed “Destination Lancaster,” the organization encompasses nine hotels and has established a dedicated revenue stream to be used exclusively for the promotion of tourism to benefit member hotels.
As the TBID’s second five-year term of operation draws to a close, its success is clear. Under the leadership of Council Member Ken Mann and Antelope Valley Fair representative Ron Emard, member hotels have continued to see gains in the two key indicators of financial health in the hotel industry: occupancy rates and average daily rate. Meanwhile, the City of Lancaster has enjoyed significant transient occupancy tax revenues. Despite the devastating challenges of COVID-19 on hotels and tourism, Destination Lancaster hotels were able to recover much quicker than those in other cities and regions.
As a result of its remarkable success, Destination Lancaster’s member hotels have petitioned to renew the TBID for a ten-year term beginning on February 1, 2023. As outlined in the Management District Plan (Attachment 1), the TBID will include all lodging businesses in the 8 8
8 City of Lancaster within the boundary indicated in the Plan. The proposed TBID charge would increase from 2% to 3% of the nightly room rate. The Destination Lancaster Board of Directors will have the option to raise the rate to a maximum of 5% in future years, with a maximum increase per year of one-half percent (0.5%).
Destination Lancaster will continue to be governed by a Board of Directors, which represents a partnership between the City, member hotels, and key local stakeholders. The nine-member board will include two City representatives, two representatives of the Antelope Valley Fair, one representative of the Chamber of Commerce, and four representatives of member hotels.
Staff recommends approval of the Resolution of Intention, which would mark the first step in renewal of the TBID. This action would be followed by a public meeting as well as a public hearing, to be held at the June 14 th and June 28 th City Council meetings, respectively. If renewed, the TBID will continue its work to promote travel and tourism in the City of Lancaster.
SY/sk
Attachments:
Resolution No. 22-15
Management District Plan
2 3
7 9
RESOLUTION NO. 22-15
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LANCASTER DECLARING THE CITY COUNCIL’S
INTENTION TO RENEW THE LANCASTER TOURISM
BUSINESS IMPROVEMENT DISTRICT (TBID), AND
ESTABLISHING THE TIME AND PLACE OF A PUBLIC
MEETING AND A PUBLIC HEARING THEREON, AND
GIVING NOTICE HEREOF
WHEREAS, the City of Lancaster created the Lancaster Tourism Business Improvement District (“TBID”) on January 8, 2013, by Resolution No. 13-04; and WHEREAS, the TBID was created for a five (5) year term which ended on January 31, 2018, and was renewed on November 14, 2017, by Resolution No. 17-57; and WHEREAS, the TBID renewed five (5) year term ends on January 31, 2023; and WHEREAS, the Property and Business Improvement Law of 1994, Streets and Highways Code § 36600 et seq., authorizes the City to renew business improvement districts for the purposes of promoting tourism; and
WHEREAS, the Visitors Bureau of Lancaster dba Destination Lancaster, lodging business owners, and representatives from the City of Lancaster have met to consider the renewal of the TBID; and
WHEREAS, Destination Lancaster has drafted a Management District Plan (“Plan”) which sets forth the proposed boundary of the TBID, a service plan and budget, and a proposed means of governance; and
WHEREAS, lodging business who will pay more than fifty percent (50%) of the assessment under the TBID have petitioned the City Council to renew the TBID.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THAT:
1. The recitals set forth herein are true and correct.
2. The City Council finds that lodging businesses that will pay more than fifty percent (50%) of the assessment proposed in the Plan have signed and submitted petitions in support of the renewal of the TBID. The City Council accepts the petitions and adopts this Resolution of Intention to renew the TBID, and to levy an assessment on certain lodging businesses within the TBID boundaries in accordance with the Property and Business Improvement District Law of 1994.
3. The City Council finds that the Plan satisfies all requirements of Streets and Highways Code § 36622.
4. The City Council declares its intention to renew the TBID, and to levy and collect assessments on lodging businesses within the TBID boundaries pursuant to the Property and Business Improvement District Law of 1994.
5. The TBID shall include all lodging businesses within the boundaries of a portion of the City of Lancaster as shown in the map attached as Exhibit A.
6. The name of the district shall be the Lancaster Tourism Business Improvement District (TBID).
7. The annual assessment rate is three percent (3%) of gross short-term room rental revenue. During the ten (10) year term, the assessment rate may be increased by the Owners’ Association Board to a maximum of three percent (5%) of gross short-term room rental revenue.
The maximum increase in any year shall be one-half of one percent (0.5%). Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days, and stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.
8. The assessments levied for the TBID shall be applied toward sales promotion and marketing programs to market assessed lodging businesses in Lancaster as tourist, meeting, and event destinations, as described in the Plan. Funds remaining at the end of any year may be used in subsequent years in which TBID assessments are levied as long as they are used consistent with the requirements of this resolution and the Plan.
9. The renewed TBID will have a ten (10) year term, beginning February 1, 2023, through January 31, 2033, unless renewed pursuant to Streets and Highways Code § 36660.
10. Bonds shall not be issued.
11. The time and place for the public meeting to hear testimony on establishing the TBID and levying assessments are set for June 14, 2022, at 5:00 p.m., or as soon thereafter as the matter may be heard, at the Council Chambers located at 44933 N. Fern Avenue, Lancaster, CA 93534.
12. The time and place for the public hearing to establish the TBID and the levy of assessments are set for June 28, 2022, at 5:00 p.m., or as soon thereafter as the matter may be heard, at the Council Chambers located at 44933 N. Fern Avenue, Lancaster, CA 93534. The City Clerk is directed to provide written notice to the lodging businesses subject to assessment of the date and time of the meeting and hearing, and to provide that notice as required by Streets and Highways Code § 36623, no later than May 12, 2022.
13. At the public meeting and hearing, the testimony of all interested persons for or against the renewal of the TBID may be received. If at the conclusion of the public hearing there are of record written protests by the owners of the lodging businesses within the proposed TBID that will pay more than fifty percent (50%) of the estimated total assessment of the entire TBID, 2 3
7 9
no further proceedings to renew the TBID shall occur for a period of one year.
14. The complete Plan is on file with the City Clerk and may be reviewed upon request.
15. This resolution shall take effect immediately upon its adoption by the City Council.
PASSED, APPROVED and ADOPTED this 3rd day of May, 2022, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST: APPROVED:
______________________________ _________________________ ANDREA ALEXANDER R. REX PARRIS
City Clerk Mayor
City of Lancaster City of Lancaster
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF LANCASTER )
CERTIFICATION OF RESOLUTION
CITY COUNCIL
I, ___________________________, __________________________, City of Lancaster, CA, do hereby certify that this is a true and correct copy of the original Resolution No. 22-15, for which the original is on file in my office.
WITNESS MY HAND AND THE SEAL OF THE CITY OF LANCASTER, on this _______, day of ___________________________, __________. (seal)
_________________________
EXHIBIT A
District Boundaries
v
2023-2033
LANCASTER TOURISM BUSINESS
IMPROVEMENT DISTRICT
MANAGEMENT DISTRICT PLAN
February 4, 2022 Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.
CONTENTS
I. OVERVIEW ........................................................................................................................................ 2 II. BACKGROUND ................................................................................................................................ 3 III. BENEFITS ........................................................................................................................................... 4 IV. BOUNDARY ....................................................................................................................................... 5 V. ASSESSMENT BUDGET AND SERVICES ................................................................................ 6 A. Annual Service Plan ............................................................................................................ 6 B. Annual Budget .................................................................................................................... 8 C. California Constitutional Compliance ................................................................................ 9 D. Assessment ........................................................................................................................ 10 E. Penalties and Interest ........................................................................................................ 11 F. Time and Manner for Collecting Assessments ................................................................. 12 VI. GOVERNANCE ............................................................................................................................... 13 A. Owners’ Association ......................................................................................................... 13 B. Brown Act and California Public Records Act Compliance ............................................ 13 C. Annual Report ................................................................................................................... 13 APPENDIX 1 – LAW .................................................................................................................................... 14 APPENDIX 2 – ASSESSED BUSINESSES ............................................................................................. 25 APPENDIX 3 – BOUNDARY MAP ......................................................................................................... 26
Prepared by:
(800)999-7781
www.civitasadvisors.com
LTBID Management District Plan 2
February 4, 2022
I. OVERVIEW
Developed by the Visitors Bureau of Lancaster dba Destination Lancaster (DL) and Lancaster hoteliers, the Lancaster Tourism Business Improvement District (LTBID) is a n assessment district proposed to continue to provide specific benefits to payors, by funding marketing and sales promotion efforts for assessed businesses. This approach has been used successfully in other destination areas throughout the country to provi de the benefit of additional room night sales directly to payors. The LTBID was formed in 2012 and renewed in 2017. DL and Lancaster lodging businesses now wish to renew the LTBID for a ten (10) year term.
Boundaries: The renewed LTBID includes all lodging businesses within the boundaries of portions of the City of Lancaster, as shown on the map in Section IV.
Services: The LTBID is designed to provide specific benefits directly to payors by increasing room night sales. Marketing, sales and promotions programs and visitor services will increase demand for overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing demand for room night sales.
Budget: The total LTBID annual assessment budget for the in itial year of its ten (10) year operation is anticipated to be approximately $750,000. A similar assessment budget is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do, and if the assessment rate is increased pursuant to this Plan.
Cost: The initial annual assessment rate is three percent ( 3%) of gross short -term room rental revenue. During the ten (10) year term, the assessment rate may be increased by the Owners’ Association Board to a maximum of five percent (5%) of gross short- term room rental revenue. The maximum increase in any year shall be one-half of one percent (0.5%). Based on the benefit received, assessments will not be collected on :
stays of more th an thirty (30) consecutive days and stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.
.
Collection: The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the LTBID. T he City shall take all reasonable efforts to collect the assessments from each lodging business.
Duration: The renewed LTBID will have a ten (10) year life, beginning February 1, 2023 or as soon as possible thereafter, and end ten (10) years from its start date. Once per year, beginning on the anniversary of LTBID renewal, there is a 30 -day period in which owners paying more than fifty percent (50%) of the assessment may protest and initiate a City Council hearing on LTBID termination.
Management: Destination Lancaster (DL) will continue to serve as the LTBID’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with this Plan, and must provide annual reports to the City Council.
LTBID Management District Plan 3
February 4, 2022
II. BACKGROUND
TBIDs are an evolution of the traditional Business Improvement District. The first TBID was formed in West Hollywood, California in 1989. Since then, over 110 California destinations have followed suit. In recent years, other states have begun adopting the California model – Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TBID laws. Several other states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law to form a TBID. And, some cities, like Portla nd, Oregon and Memphis, Tennessee have utilized their home rule powers to cre ate TBIDs without a state law.
California’s TBIDs collectively
raise over $300 million annually
for local destination marketing.
With competitors raising their
budgets, and increasing rivalry
for visitor dollars, it is
important that Lancaster
lodging businesses continue to
invest in stable, lodging -
specific marketing programs.
TBIDs utilize the efficiencies of private sector operation in the market -based promotion of tourism districts. TBIDs allow lodging business owners to organize their efforts to increase demand for room night sales. Lodging business owners within the TBID pay an assessment and those funds are used to provide services that increase demand for room night sales.
In California, most TBIDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between TBIDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district.
There are many benefits to TBIDs:
Funds must be spent on services and improvements that provide a specific benefit only to those who pay;
Funds cannot be diverted to general government programs; They are customized to fit the needs of payors in each destination; They allow for a wide range of services;
They are designed, created and governed by those who will pay the assessment; and They provide a stable, long-term funding source for tourism promotion.
1 2 4 6 9 12 19 25 29 32 38 46
61 64
75 95 101109114
0 20
40 60
80 100
120
Number of Districts Operating in California
LTBID Management District Plan 4
February 4, 2022
III. BENEFITS
There are many benefits of a TBID in Lancaster:
Lancaster’s TBID is an influential mechanism for boosting key performance indicators including increased occupancy, average daily rate, marketing penetration index and revenue generation index for assessed lodging businesses.
Lancaster’s TBID governance is a partnership between assessed lodging businesses and community influencers to further the interests of tourism and to position the industry to shape local and regional policies.
Lancaster’s TBID is customized to fit the specific needs of our unique community and assessed lodging businesses.
Lancaster’s TBID provides a dedicated, long-term revenue stream for tourism promotion that must, by law, be spent on services and improvements that provide a specific benefit to those who pay. Funds cannot be diverted to general government programs. Lancaster’s TBID allows for a wide range of services that increase the economic vitality of the region.
LTBID Management District Plan 5
February 4, 2022
IV. BOUNDARY
The renewed LTBID includes all lodging businesses within the boundaries of portions of the City of Lancaster, as shown on the map below.
Lodging business means: any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes and including any hotel, in tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mob ilehome or house trailer at a fixed location, or other similar structure or portion thereof.
The boundary, as shown in the map below, currently includes nine (9) lodging businesses. A complete listing of lodging businesses within the renewed LTBID can be found in Appendix 2. A large r boundary map can be found in Appendix 3.
LTBID Management District Plan 6
February 4, 2022
V. ASSESSMENT BUDGET AND SERVICES
A. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the LTBID funds are sales, marketing & promotions programs and visitor services available only to assessed businesses.
A service plan assessment budget has been developed to deliver services that benefit the assessed businesses. A detailed annual assessment budget will be developed and approved by DL. The table below illustrates the initial annual assessment budget allocations. The total initial assessment budget is $750,000.
Although actual revenues will fluctuate due to market conditions and assessment rate changes , the proportional allocations of the budget shall remain the same. However, the City and the DL board shall have the authority to adjust budget allocations between the categories by no more than fifteen percent (15%) of the total budget per year. A description of the proposed improvements and activities for the initial year of operation is below. The same activities are proposed for subsequent years. In the event of a legal challenge against the LTBID, any and all assessment funds may be used for the costs of defending the LTBID.
Each budget category includes all costs related to providing that service. For example, the sales and marketing budget includes the cost of staff time dedicated to overseeing and implementing the sales and marketing program. Staff time dedicated purely to administrative tasks is allocated to the administrative portion of the budget. The staffing levels necessary to provide the services below will be determined by DL on an as- needed basis.
Sales, Marketing & Promotions
A sales, marketing, and promotions program will promote assessed businesses as tourist, meeting, and event destinations. The sales, marketing, and promotions program will have a central theme of promoting the destination as a desirable place for overnight visits. The program will have the goal of Sales, Marketing &
Promotions,
$525,000, 70%
Visitor Services,
$75,000 , 10%
Administration,
$112,500 , 15%
Contingency/Reserve,
$37,500 , 5%
Initial Annual Assessment Budget - $750,000
LTBID Management District Plan 7
February 4, 2022
increasing demand for overnight visitation and room night sa les at assessed businesses, and may include the following activities:
Internet marketing efforts to increase awareness and optimize internet presence to drive overnight visitation and room sales to assessed businesses; Print ads in magazines and newspapers targeted at potential visitors to drive overnight visitation and room sales to assessed businesses;
Digital ads targeted to include social platforms and TV streaming channels at potential visitors to drive overnight visitation and room sales to assessed businesses; Radio ads & Streaming Music ads targeted at potential visitors to drive overnight visitation and room sales to assessed businesses;
Attendance of trade shows to promote assessed businesses; Familiarization tours of assessed businesses;
Sponsorship of local events that drive overnight visitation Preparation and production of collateral promotional materials such as brochures, visitor guides, flyers, and maps featuring assessed businesses; Attendance of professional industry conferences and affili ation events to promote assessed businesses;
Partnership with both local and state tourism organizations to target key international markets to increase overnight visitation at assessed businesses; Development and implementation of a public relations and communications strategy, inclusive of social media outlets and press release distribution designed to drive overnight visitation at assessed businesses;
Development of Return on Investment (ROI) analysis on the effectiveness of district funds to improve effectiveness and increase demand for overnight visitation at assessed businesses; Development of a marketing plan to ensure district funds are strategically spent to market assessed lodging businesses.
Lead generation activities designed to attract visitors and group events to assessed businesses; Director of Sales and General Manager meetings to plan and coordinate tourism promotion efforts for assessed businesses; and
Education of lodging business management and the owners’ association on marketing strategies best suited to meet assessed businesses’ needs.
Visitor Services
The Visitor Services program may include, but is not limited to, the following activities:
A Security program for assessed businesses to improve the overall visitor experience; Comprehensive and integrated wayfinding signage system including signage to assessed businesses, the visitor center and other points of interest; Improvements to existing parks and sports facilities utilized by overnight visitors; and Infrastructure improvements that enhance the destination’s competitive position to attract desirable special events year-round and attract overnight visitors.
Administration and Operations
The administration and operations portion of the budget shall be utilized for administrative staffing costs, office costs, and other general administrative costs such as insurance, audit, legal, and accounting fees.
LTBID Management District Plan 8
February 4, 2022
Contingency/Reserve
The budget includes a contingency line item to account for uncollected assessments, or higher than anticipated program costs, if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program or administration costs at the discretion of the TBID Committee. Policies relating to contributions to the reserve f und, the target amount of the reserve fund, and expenditure of monies from the reserve fund shall be set by the Owners’ Association.
B. Annual Budget
The total ten (10) year improvement and service plan assessment budget is projected at approximately $750,000 annually, or $70,543,988 through 2033 if the maximum assessment rate increases are adopted. A similar budget is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do, and if the assessment rate is increased. The annual assessment rate is three percent (3%) of gross short-term room rental revenue. During the ten (10) year term, the assessment rate may be increased by the Owners’ Association Board to a maximum of five percent (5%) of gross short-term room rental revenue. The maximum increase in any year shall be one-half of one percent (0.5%). The assessment rate may or may not increase starting in FY 2024-25, the increases may be implemented in later years at the discretion of the Owners’ Association. The table below demonstrates the maximum budget with the assumption that the assessment rate will be increased by 0.5% each year from FY 2024-25 to FY 2027-28 to the maximum assessment rate, as it is a required disclosure, it is not the anticipated course o f action. Additionally, a three percent (3%) annual increase in the total budget is shown in both scenarios, to account for estimated increased room night sales as a result of LTBID efforts. This three percent (3%) annual increase is a conservative estim ate based on the effects of similarly sized TBID budgets.
Estimated Annual Budget If Maximum Assessment Rates Are Adopted 2023-2033
Year
Sales,
Marketing &
Promotions
Visitor
Services Admin Contingency
/Reserve Total Assessment
Rate
2023-24 $1,516,200 $216,600 $324,900 $ 108,300 $2,166,000 3.0% 2024-25 $2,416,798 $371,815 $669,267 $ 185,908 $3,718,151 3.5% 2025-26 $3,556,217 $547,110 $984,799 $ 273,555 $5,471,103 4.0% 2026-27 $4,578,630 $704,405 $1,267,928 $ 352,202 $7,044,046 4.5% 2027-28 $5,239,935 $806,144 $1,451,059 $ 403,072 $8,061,438 5.0% 2028-29 $5,397,133 $830,328 $1,494,591 $ 415,164 $8,303,281 5.0% 2029-30 $5,559,047 $855,238 $1,539,428 $ 427,619 $8,552,380 5.0% 2030-31 $5,725,818 $880,895 $1,585,611 $ 440,448 $ 8,808,951 5.0% 2031-32 $5,897,593 $907,322 $1,633,180 $ 453,661 $ 9,073,220 5.0% 2032-33 $6,074,521 $934,542 $1,682,175 $ 467,271 $ 9,345,416 5.0% Total $ 45,961,892 $ 7,054,399 $12,632,938 $ 3,527,199 $70,543,988
The table below demonstrates the annual improvement and service plan budget with the assumption that the rates will not be increased during the LTBID’s ten (10) year term. Additionally, a three percent (3%) annual increase in the total budget is shown, to account for estimated increased room night sales as a result of LTBID efforts.
LTBID Management District Plan 9
February 4, 2022
Estimated Annual Budget If Maximum Assessment Rates Are Not Adopted 2023-2033
Year Sales, Marketing
& Promotions
Visitor
Services Admin Contingency
/Reserve Total
2023-24 $1,516,200 $216,600 $324,900 $108,300 $2,166,000 2024-25 $1,561,686 $223,098 $334,647 $111,549 $2,230,980 2025-26 $1,608,537 $229,791 $344,686 $114,895 $2,297,909 2026-27 $1,656,793 $236,685 $355,027 $118,342 $2,366,847 2027-28 $1,706,496 $243,785 $365,678 $121,893 $2,437,852 2028-29 $1,757,691 $251,099 $376,648 $125,549 $2,510,988 2029-30 $1,810,422 $258,632 $387,948 $129,316 $2,586,317 2030-31 $1,864,735 $266,391 $399,586 $133,195 $2,663,907 2031-32 $1,920,677 $274,382 $411,574 $137,191 $2,743,824 2032-33 $1,978,297 $282,614 $423,921 $141,307 $2,826,139 Total $ 17,381,534 $ 2,483,076 $3,724,614 $1,241,538 $24,830,763
C. California Constitutional Compliance
The LTBID assessment is not a property-based assessment subject to the requirements of Proposition 218. The Court has found, “Proposition 218 limited the term ‘assessments’ to levies on real property.”1 Rather, the LTBID assessment is a business -based assessment, and is subject to Proposition 26.
Pursuant to Proposition 26 a ll levies are a tax unless they fit one of seven exceptions. Two of these exceptions apply to the LTBID, a “specific benefit” and a “specific government service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services.
1. Specific Benefit
Proposition 26 requires that assessment funds be expe nded on, “ a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.”2 The services in this Plan are designed to provide targeted benefits directly to assessed lodging businesses, and are intended only to provide benefits and services directly to those businesses paying the assessment . These services are tailored not to serve the general public , businesses in general, or parcels of land, but rather to serve the specific lodging businesses within the LTBID. The activities described in this Plan are specifically targeted to increase demand for room night sales for assessed lodging businesses within the boundaries of the LTBID, and are narrowly tailored. LTBID funds will be used exclusively to provide the specific benefit of increased room night sales directly to the assessees. Assessment funds shall not be used to feature non -assessed lodging businesses in LTBID programs, or to directly generate sales for non -assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses.
1 Jarvis v. the City of San Diego 72 Cal App. 4th 230
2 Cal. Const. art XIII C § 1(e)(1)
LTBID Management District Plan 10
February 4, 2022
The assessment imposed by the LTBID is for a specific benefit conferred directly to the payors that is not provided to th ose not charged. The specific benefit conferred directly to the payors is an increase in room night sales. The specific benefit of an increase in room night sales for assessed lodging businesses will be provided only to lodging businesses paying the dist rict assessment, with sales, marketing & promotions and visitors services promoting lodging businesses paying the district assessment. The sales, marketing & promotions and visitors services programs will be designed to increase demand for room night sales at each assessed lodging businesses. Because they are necessary to provide the sales, marketing & promotions and visitors services programs that specifically benefit the assessed lodging businesses, the administration and contingency services also provide the specific benefit of increased room night sales to the assessed lodging businesses.
Although the LTBID, in providing specific benefits to payors, may produce incidental benefits to non-paying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that, “A specific benefit is not excluded from classification as a ‘specific benefit’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.”3
2. Specific Government Service
The assessment may also be utilized to provide, “a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.”4 The legislature has recognized that marketing and promotions services like those to be provided by the LTBID are government services within the meaning of Proposition 26 5. Further, the legislature has determined that “a specific government service is not excluded from classification as a ‘specific government service’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor.”6
3. Reasonable Cost
LTBID services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by DL, and reports submitted on an annual basis to the City. Only assessed lodging businesses will be featured in marketing materials, receive sales leads generated from district -funded activities, be featured in advertising campaigns, and benefit from other district-funded services. Non- assessed lodging businesses will not receive these, nor any other, district-funded services and benefits.
The LTBID-funded programs are all targeted directly at and feature only assessed businesses. It is, however, possible that there wi ll be a spill over benefit to non -assessed businesses. If non-assessed lodging businesses receive incremental room nights, that portion of the promotion or program generating those room nights shall be paid with non-LTBID funds. LTBID funds shall only be spent to benefit the assessed businesses, and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed businesses.
D. Assessment
The initial annual assessment rate is three percent (3 %) of gross sh ort-term room rental revenue.
During the ten (10) year term, the assessment rate may be increased by the Owners’ Association Board
3 Government Code § 53758(a)
4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)
LTBID Management District Plan 11
February 4, 2022
to a maximum of five percent (5%) of gross short-term room rental revenue. The maximum increase in any year shall be one -half of one percent (0.5%). Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days or stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.
The term “gross room rental revenue” as used herein means: the consideration charged, whether or not received, for the occupancy of space in a lodging business valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits, and property and services of any kind or nature, without any deduction therefrom whatsoever . Gross room rental revenue shall not include any federal, state or local taxes collected, including but not limited to transient occupancy taxes.
The assessment is levied upon and a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each tra nsient shall receive a receipt for payment from the business. The assessment shall be disclosed as the “ LTBID Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to trans ients. The assessment shall not be considered revenue for any purposes, including calculation of transient occupancy taxes.
Bonds shall not be issued.
E. Penalties and Interest
The LTBID shall reimburse the City of Lancaster for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent LTBID assessment are sought to be recovered in the same collection action by the City, the LTBID shall bear its pro rata share of such collection costs.
Assessed businesses which are delinquent in paying the assessment shall be responsible for paying:
1. Original Delinquency: Any lodging business that fails to remit any assessment imposed within the time required shall pay a penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment.
2. Continued Delinquency: Any lodging business that fails to remit any delinquent remittance on or before a period of thirty (30) days following the da te on which the remittance first became delinquent shall pay a second delinquency penalty of ten percent (10%) of the amount of the assessment in additional to the amount of the assessment and the ten percent (10%) penalty first imposed.
3. Fraud: If the City determines that the nonpayment of any remittance due is due to fraud, a penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the penalties stated in subsections 1 and 2 above.
4. Interest: In addition t o the penalties imposed, any lodging business that fails to remit any assessment imposed shall pay interest at the rate of one -half of one percent per month or fraction thereof on the amount of the assessment, exclusive of penalties, from the data on which the remittance first became delinquent until paid.
5. Penalties Merged with Assessment: Every penalty imposed and such interest as accrues under the provisions of this section, shall become a part of the assessment herein required to be paid.
LTBID Management District Plan 12
February 4, 2022
F. Time and Manner for Collecting Assessments
The LTBID assessment will be implemented beginning February 1, 2023 or as soon as possible thereafter, and end ten (10) years from its start date. The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business. The City shall take all reasonable efforts to collect the assessments from each lodging business. The City shall forward the assessments collected to the Owners’ Association.
LTBID Management District Plan 13
February 4, 2022
VI. GOVERNANCE
A. Owners’ Association
The City Council , through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the O wners’ Association of the LTBID as defined in Streets and Highways Code §36612. The City Council has determined that Visitors Bureau of Lancaster dba Destination Lancaster will serve as the Owners’ Association for the LTBID. DL’s Board of Directors shall be composed of nine (9) Directors as follows:
Two (2) Directors representing the City of Lancaster; Two (2) Directors representing the Antelope Valley Fairgrounds; Four (4) Directors representing assessed lodging businesses; and One (1) Director representing the Lancaster Chamber of Commerce.
B. Brown Act and California Public Records Act Compliance An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the DL board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act. Accordingly, the Owners’ Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action.
C. Annual Report
DL shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include:
Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district.
The improvements and activities to be provided for that fiscal year. An estimate of the cost of providing the improvements and the activities for that fiscal year. The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business f or that fiscal year.
The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
LTBID Management District Plan 14
February 4, 2022
APPENDIX 1 – LAW
*** THIS DOCUMENT IS CURRENT THROUGH THE 2021 SUPPLEMENT *** (ALL 2020 LEGISLATION)
STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994
CHAPTER 1. General Provisions
ARTICLE 1. Declarations
36600. Citation of part
This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.”
36601. Legislative findings and declarations; Legislative guidance
The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed.
Therefore, for special benefits to exist as a separate and distinct category from general benefits, the
LTBID Management District Plan 15
February 4, 2022
incidental or collateral effects of those special benefits are inherently part of those special benefits.
The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits.
(3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits.
Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined.
36602. Purpose of part
The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act. This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes.
36603. Preemption of authority or charter city to adopt ordinances levying assessments
Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)).
36603.5. Part prevails over conflicting provisions
Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.
36604. Severability
This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.
ARTICLE 2. Definitions
36606. “Activities”
“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district.
36606.5. “Assessment”
“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.
36607. “Business”
LTBID Management District Plan 16
February 4, 2022
“Business” means all types of businesses and includes financial institutions and professions.
36608. “City”
“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California.
36609. “City council”
“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part.
36609.4. “Clerk”
“Clerk” means the clerk of the legislative body.
36609.5. “General benefit”
“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.
36610. “Improvement”
“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.
36611. “Management district plan”; “Plan”
“Management district plan” or “plan” means a proposal as defined in Section 36622.
36612. “Owners’ association”
“Owners’ association” means a p rivate nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners’ association sh all comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), for all records relating to activities of the district. 36614. “Property”
“Property” means real property situated within a district.
LTBID Management District Plan 17
February 4, 2022
36614.5. “Property and business improvement district”; “District”
“Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part.
36614.6. “Property-based assessment”
“Property-based assessment” means any assessment made pursuant to this part upon real property.
36614.7. “Property-based district”
“Property-based district” means any district in which a city levies a property-based assessment.
36615. “Property owner”; “Business owner”; “Owner”
“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this par t requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient.
36615.5. “Special benefit”
“Special benefit” means, for purposes of a property -based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benef it includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value.
36616. “Tenant”
“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.
ARTICLE 3. Prior Law
36617. Alternate method of financing certain improvements and activities; Effect on other provisions
This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provi sions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.
CHAPTER 2. Establishment
36620. Establishment of property and business improvement district
A property and business improvement district may be established as provided in this chapter.
36620.5. Requirement of consent of city council
A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board
LTBID Management District Plan 18
February 4, 2022
of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city.
36621. Initiation of proceedings; Petition of property or business owners in proposed district
(a) Upon the submission of a writte n petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district.
The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall in clude a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained. (3) Information spec ifying that the complete management district plan shall be furnished upon request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activ ities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the impr ovements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consis tent with the requirements of Section 36623.
36622. Contents of management district plan
The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If t he assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries.
(b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the maximum cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities and a statement that the same improvements, maintenance, a nd activities are proposed for subsequent years shall satisfy the requirements of this subdivision.
LTBID Management District Plan 19
February 4, 2022
(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount propos ed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business. The plan also shall state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwi thstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k) (1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property -based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a property -based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. (l) In a property -based district, the total amount of all special benefits to be conferred upon the properties located within the property-based district.
(m) In a property-based district, the total amount of general benefits, if any. (n) In a property -based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (o) Any other item or matter required to be incorporated therein by the city council.
36623. Procedure to levy assessment
(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orall y or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest m ay be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a per son subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A writ ten protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay
LTBID Management District Plan 20
February 4, 2022
50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, sha ll be taken for a period of one year from the date of the finding of a majority protest by the city council. (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners.
36624. Changes to proposed assessments
At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627.
36625. Resolution of formation
(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as t o whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district.
(4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district sha ll not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the dist rict.
Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a p roperty-based district, that property within the district will receive a special benefit.
(8) In a property -based district, the total amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.
LTBID Management District Plan 21
February 4, 2022
36627. Notice and assessment diagram
Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part.
36628. Establishment of separate benefit zones within district; Categories of businesses
The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also defin e categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone.
36628.5. Assessments on businesses or property owners
The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, mai ntenance, and activities, provided that any property - based assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622.
36629. Provisions and procedures applicable to benefit zones and business categories
All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district.
36630. Expiration of district; Creation of new district
If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.
CHAPTER 3. Assessments
36631. Time and manner of collection of assessments; Delinquent payments
The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.
36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property
(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.
LTBID Management District Plan 22
February 4, 2022
(c) Properties zo ned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part.
36633. Time for contesting validity of assessment
The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36625. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.
36634. Service contracts authorized to establish levels of city services
The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed.
36635. Request to modify management district plan
The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter.
36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention
(a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded wi th the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.
36637. Reflection of modification in notices recorded and maps
Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627.
CHAPTER 3.5. Financing
36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments
(a)The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks -Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part.
LTBID Management District Plan 23
February 4, 2022
(b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution o f formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduce d or terminated if doing so would interfere with the timely retirement of the debt.
CHAPTER 4. Governance
36650. Report by owners’ association; Approval or modification by city council
(a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvement s, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributio ns to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.
The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the l evy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district.
36651. Designation of owners’ association to provide improvements, maintenance, and activities
The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.
CHAPTER 5. Renewal
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit
(a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues
LTBID Management District Plan 24
February 4, 2022
shall be spent to benefit only the parcels or businesse s in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.
CHAPTER 6. Disestablishment
36670. Circumstances permitting disestablishment of district; Procedure
(a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment. (2) During the operation of the district, there shall be a 30 -day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30 -day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment. (b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention.
36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district
(a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.
LTBID Management District Plan 25
February 4, 2022
APPENDIX 2 – ASSESSED BUSINESSES
Business Name Business Address City, State, ZIP
Best Western Plus (Desert Poppy) 2038 W. Ave. I Lancaster, CA 93536 Comfort Inn & Suites 1825 W. Ave J-12 Lancaster, CA 93534 Hampton Inn & Suites 2300 Double Play Way Lancaster, CA 93536 Holiday Inn Express 43719 17th St. West Lancaster, CA 93534 Homewood Suites 2320 Double Play Way Lancaster, CA 93536 Marriott Springhill Suites 1811 W. Ave J-12 Lancaster, CA 93534 Oxford Inn & Suites 1651 W. Ave K Lancaster, CA 93534
Residence Inn by Marriott 847 W Lancaster Blvd Lancaster, CA 93534 TownePlace Suites 2024 W. Ave J-8 Lancaster, CA 93536
*Lodging list as of January 2022
LTBID Management District Plan 26
February 4, 2022
APPENDIX 3 – BOUNDARY MAP
STAFF REPORT
City of Lancaster
CC 17
5/3/2022
JC
Date: May 3, 2022
To: Mayor Parris and City Council Members
From: Jason Caudle, City Manager
Subject:Renewal of General Services Agreement with Los Angeles County Recommendation:
Renew the General Services Agreement between the City of Lancaster and the County of Los Angeles for a period of five years.
Fiscal Impact:
Costs for General Services are included in departmental operating budgets.
Background:
The General Services Agreement (GSA) between the City of Lancaster and the County of Los Angeles will expire on June 30, 2022. To ensure the continuation of County services, which the City is currently receiving, and for the ability to add or augment services in the future, renewal of the agreement for a five-year period, commencing July 1, 2022, through June 30, 2027, is necessary.
The County GSA has been executed with most cities and a number of public entities within the County. It is general in nature and provides authority for the County to provide services requested, specifies the method by which Lancaster requests and pays for service, and provides for the annual adjustment of rates.
Services provided under the GSA primarily consist of miscellaneous services which cities and other public entities request from the County on an "as needed" basis. They include such functions as predatory animal control, prosecution of city ordinances, direct assessment collection, and a variety of public works activities. Ongoing and specific services, such as law enforcement, public health code enforcement, and animal care and control, are provided by the responsible County departments through Specific Service Agreements. Specific Service 8 9
1 Agreements between the City of Lancaster and the County of Los Angeles are not affected by the renewal of this GSA.
JC: avm
Attachment:
2022 GSA- Lancaster
1 of 6
GENERAL SERVICES AGREEMENT
THIS GENERAL SERVICES AGREEMENT ("Agreement"), dated for purposes of reference only, Ju ly 1, 2022, is made by and between the County of Los Angeles, hereinafter referred to as the "County", and the City of Lancaster , hereinafter referred to as the "City."
RECITALS:
(a) The City is desirous of contracting with the County for the performance by its appropriate officers and employees of City functions.
(b) The County is agreeable to performing such services on the terms and conditions hereinafter set forth.
(c) Such contracts are authorized and provided for by the provisions of Section 56½ of the Charter o f the County of Los Angeles and Section 51300, et seq., of the Government Code.
THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS:
1. The County agrees, through its officers, agents and employees, to perform those City functions, which are hereinafter provided for.
2. The City shall pay for such services as are provided under this Agreement at rates to be determined by the County Auditor-Controller in accordance with the policies and procedures established by the Board of Supervisors.
These rates shall be readjusted by the County Auditor-Controller annually effective the first day of July of each year to reflect the cost of such service in accordance with the policies and procedures for the determination of such rates as adopted by the Board of Supervisors of County.
3. No County agent, officer or department shall perform for said City any 2 of 6
function not coming within the scope of the duties of such agent, officer or department in performing services for the County.
4. No service shall be performed hereunder unless the City shall have available funds previously appropriated to cover the cost thereof.
5. No function or service shall be performed hereunder by any County agent, officer or department unless such function or service shall have been requested in writing by the City on order of the City Council thereof or such officer as it may designate and approved by the Board of Supervisors of the County, or such officer as it may designate, and each such service or function shall be performed at the tim es and under circumstances which do not interfere with the performance of regular County operations.
6. Whenever the County and City mutually agree as to the necessity for any such County agent, officer or department to maintain administrative headquarter s in the City, the City shall furnish at its own cost and expense all necessary office space, furniture, and furnishings, office supplies, janitorial service, telephone, light, water, and other utilities. In all instances where special supplies, stationer y, notices, forms and the like must be issued in the name of the City, the same shall be supplied by the City at its expense.
It is expressly understood that in the event a local administrative office is maintained in the City for any such County agent, officer or department, such quarters may be used by the County agent, officer or department in connection with the performance of its duties in territory outside the City and adjacent thereto provided, however, that the performance of such outside duties shall not be at any additional cost to the City.
7. All persons employed in the performance of such services and functions for 3 of 6
the City shall be County agent s, officers or employees, and no City employee as such shall be taken over by the County, and no per son employed hereunder shall have any City pension, civil service, or other status or right.
For the purpose of performing such services and functions, and for the purpose of giving official status to the performance hereof, every County agent, officer and employee engaged in performing any such service or function shall be deemed to be an agent, officer or employee of said City while performing service for the City within the scope of this agreement.
8. The City shall not be called upon to assume any liability for the direct payment of any salary, wages or other compensation to any County personnel performing services hereunder for the City, or any liability other than that provided for in this agreement.
Except as herein otherwise specified, the City s hall not be liable for compensation or indemnity to any County employee for injury or sickness arising out of his or her employment.
9. The parties hereto have executed an Assumption of Liability Agreement approved by the Board of Supervisors on December 27, 1977 and/or a Joint Indemnity Agreement approved by the Board of Supervisors on October 8, 1991. Whichever of these documents the City has signed later in time is currently in effect and hereby made a part of and incorporated into this agreement as set out in full herein. In the event that the Board of Supervisors later approves a revised Joint Indemnity Agreement and the City executes the revised agreement, the subsequent agreement as of its effective date shall supersede the agreement previously in effect between the parties hereto.
10. Each County agent, officer or department performing any service for the 4 of 6
City provided for herein shall keep reasonably itemized and in detail work or job records covering the cost of all services performed, including salary, wages and other compensation for labor, supervision and planning, plus overhead, the reasonable rental value of all County-owned machinery and equipment, rental paid for all rented machinery or equipment, together with the cost of an operator thereof when furnished with said machinery or equipment, the cost of all machinery and supplies furnished by the County, reasonable handling charges, and all additional items of expense incidental to the performance of such function or service.
11. All work done hereunder is subject to the limitations of the provisions of Section 23008 of the Government Code, and in accordance therewith, befor e any work is done or services rendered pursuant hereto, an amount equal to the cost or an amount 10% in excess of the estimated cost must be reserved by the City from its funds to ensure payment for work, services or materials provided hereunder.
12. The County shall render to the City at the close of each calendar month an itemized invoice which covers all services performed during said month, and the City shall pay County therefore within thirty (30) days after date of said invoice.
If such payment is not delivered to the County office which is described on said invoice within thirty (30) days after the date of the invoice, the County is entitled to recover interest thereon. Said interest shall be at the rate of seven (7) percent per annum or any portion thereof calculated from the last day of the month in which the services were performed.
13. Notwithstanding the provisions of Government Code Section 907, if such payment is not delivered to the County office which is described on said invoice within thirty (30) days after the date of the invoice, the County may satisfy such indebtedness, 5 of 6
including interest thereon, from any funds of any such City on deposit with the County without giving further notice to said City of County's intention to do so.
14. This Agreement shall become effective on the date herein- above first mentioned and shall run for a period ending June 30, 2027, and at the option of the City Council of the City, with the consent of the Board of Supervisors of County, shall be renewable thereafter for an additional period of not to exceed five (5) years.
15. In the event the City desires to renew this Agreement for said five- year period, the City Council shall not later than the last day of May 2027, notify the Board of Supervisors of County that it wishes to renew the same, whereupon the Board of Supervisors, not later than the last day of June 2027, shall notify the City Council in writing of its willingness to accept such renewal. Otherwi se, such Agreement shall finally terminate at the end of the aforedescribed period.
Notwithstanding the provisions of this paragraph herein- above set forth, the County may terminate this Agreement at any time by giving thirty (30) days' prior written notice to the City. The City may terminate this Agreement as of the first day of July of any year upon thirty (30) days' prior written notice to the County.
16. This Agreement is designed to cover miscellaneous and sundry services which may be supplied by the County of Los Angeles and the various departments thereof. In the event there now exists or there is hereafter adopted a specific contract between the City and the County with respect to specific services, such contract with respect to specific services shall be controlling as to the duties and obligations of the parties anything herein to the contrary notwithstanding, unless such special contract adopts the provisions hereof by reference.
6 of 6
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized officers.
Executed this _____________day of ________________________2022.
The City of Lancaster,
By _____________________________
Mayor
ATTEST:
City Clerk THE COUNTY OF LOS ANGELES
By_____________________________ By_____________________________ Chair, Board of Supervisors
ATTEST:
CELIA ZAVALA
Executive Officer/Clerk
of the Board of Supervisors
By_____________________________
Deputy
APPROVED AS TO FORM:
RODRIGO A. CASTRO-SILVA
County Counsel
By ___________________________
Senior Deputy
STAFF REPORT
City of Lancaster, California
CC 18
05/03/2022
JC
Date: May 3, 2022
To: Mayor Parris and City Council Members
From: Jennifer Seguin, Communications Manager
Subject:Award RFP 763-22 Outlook Magazine Print Vendor Contract Recommendation:
Award RFP 763-22, Outlook Magazine Print Vendor Contract, to Advanced Printing & Graphics of Lancaster, California, in the amount of $485,210.25 to print nine editions of the OUTLOOK Magazine. Authorize the City Manager, or his designee, to sign all documents.
Fiscal Impact:
$485,210.25 to be awarded; sufficient funds are available in Communication’s Reprographics budget account numbers 101-4205-253.
Background:
Since Lancaster incorporation in 1977, the Outlook magazine has been a media staple in the community. The Outlook Magazine is a periodical of the City of Lancaster that is published quarterly and distributed to households in the City. The Outlook Magazine provides updates to residents on the happenings in the City. Outlook is mailed to every resident and business within the City of Lancaster. The magazine is supported by the City’s robust sponsorship program.
As we continue to grow our media outreach, a physical printed magazine continues to be a standout approach to reaching all residents of all demographics.
The proposed scope of work includes:
●Quarterly print of Outlook Magazines (~63,500 prints)
●Proposal includes 2022-2024 FY; 9 prints anywhere between 48-56 pages ○Summer 2022 – typically mailed end of May beginning of June ○Fall 2022 – typically mailed end of August beginning of September ○Winter 2023 – typically mailed end of November beginning of December ○Spring 2023 – typically mailed end of February beginning of March ○Summer 2023 – typically mailed end of May beginning of June ○Fall 2023 – typically mailed end of August beginning of September ○Winter 2024 – typically mailed end of November beginning of December ○Spring 2024 – typically mailed end of February beginning of March ○Summer 2024 – typically mailed end of May beginning of June On March 10, 2022 the City conducted a bid opening for RFP 763-22. Two (2) qualified sealed bids were received by the due date of March 17, 2022 at 10:00 AM. The bids received are as follows:
Contractor City Bid Amount
Advantage Mailing LLC Anaheim $389,969.64
Advanced Printing & Graphics Lancaster $485,210.25
Following the City’s process of evaluating proposals - City staff conducted an extensive evaluation of the bids received. Proposals were evaluated and scored based on the following criteria:
qualifications of proposer and ability to meet deadlines, demonstrated successful experience with similar projects, cost proposal, quality and relevance of proposer’s work samples.
Advanced Printing & Graphics is not only located in Lancaster but has served the Lancaster community for over 20 years partnering with businesses throughout the Antelope Valley. As a full- service graphic design and printing company, APG is able to meet the needs outlined in the RFP process locally. APG is knowledgeable about the surrounding area and familiar with the Outlook publication process. Having worked with the City previously and having experience printing the Outlook magazine, APG was the highest scored proposal.
Attachment(s):
N/A
STAFF REPORT
City of Lancaster
Date: May 3, 2022
To: Mayor Parris and City Council Members
From: George Harris, Director of Finance & Information Technology Subject:Adoption of the City of Lancaster’s Community Development Block Grant Program (CDBG) and HOME Investment Partnership Program (HOME) 2022-2023 Program Year (PY) Action Plan
Recommendation:
a. Approve and adopt the CDBG and HOME Action Plan for the 2022-2023 PY to be submitted to the United States Department of Housing and Urban Development (HUD). b. Appropriate approximately $1,572,221 from PY 2022-2023 CDBG Funds. c. Appropriate approximately $676,132 from PY 2022-2023 HOME Funds. d. Provide City Staff with a methodology for distributing funds should the City’s 2022-2023 CDBG and HOME annual allocations increase or decrease.
e. Authorize the City Manager or designee to execute all contracts and associated documents, including subrecipient agreements, subject to City Attorney approval.
Financial Impact:
There will be no negative impact to the General Fund. As an entitlement grantee, the City is eligible to receive CDBG and HOME funds annually from HUD. The 2022-2023 Action Plan allocates approximately $1,572,221 in CDBG funds and $676,132 in HOME funds in furtherance of the City’s Consolidated Plan Strategic Plan Goals.
Background:
The City has been a CDBG entitlement community since 1986 and started receiving HOME funds in 2020. The City receives annual grants for developing viable urban communities that encompasses decent housing, provides suitable living environments, and expands economic opportunities, primarily for the benefit of low- and moderate-income persons. The proposed Action Plan is intended to provide a summary of proposed program activities, eligibility criteria, and funding levels for the 2022-2023 PY. All programs and/or projects submitted in the Plan are compliant with the HUD guidelines for eligible activities.
In accordance with Title 24 CFR part 91, this Action Plan lists the activities the City will undertake to address priorities and objectives with anticipated CDBG and HOME funding received during PH 1
5/3/2022
JC
the 2022-2023 PY. A new Action Plan is developed and submitted for each program year within the five-year planning period of the 2020-2024 Consolidated Plan.
To proceed with the City's Action Plan, which serves as the formal document to HUD for CDBG and HOME funding, it is necessary for the City Council to take public testimony on proposed projects.
In compliance with federal requirements and in accordance with the City’s Citizen Participation Plan, the City published its proposed Action Plan on April 6 2022, providing a 30-day public review and comment period. Comments received during the review period, spanning April 6, 2022, through May 6, 2022, will be attached to the Action Plan and incorporated into the plan where appropriate.
The Action Plan will be brought to the Council on May 3, 2022, for approval. The documents will be submitted to HUD to ensure the availability of CDBG and HOME funds.
Approval of the Action Plan will enable CDBG and HOME funding availability as of July 1, 2022, the start of the 2022-2023 PY.
Analysis:
As of the date of this meeting, HUD has not released the City’s CDBG and HOME annual allocation and therefore HUD has advised the City to prepare its Action Plan utilizing the City’s current year CDBG and HOME annual allocations. For this reason, it is anticipated that during the 2022-2023 PY, the City will receive approximately $1,572,221 of CDBG funds and $676,132 in HOME funds to be allocated to eligible activities. The program activities listed below will be implemented from July 1, 2022, to June 30, 2023.
CDBG Activities
Public Service
Antelope Valley Boys & Girls Club: After School Recreation Programming $20,000
The People Concern: Kensington Campus Interim Housing Program $116,800 Lost Angels Children’s Project: Lost Angels Workforce Development Program $99,033
Sub-Total: $235,833
Capital
WDACS/Antelope Valley Senior Center: Wellness Center $26,099 City of Lancaster: Mariposa Park Improvements $600,000
Penny Lane Centers: Drop-In Center Kitchen $186,658
City of Lancaster: Section 108 Loan Repayment Mental Health America $106,118 City of Lancaster: Section 108 Loan Repayment Children’s Center $103,069 Sub-Total: $1,021,944
Administration
Program Administration $274,444
Southern California Housing Rights Center: Fair Housing Services $40,000 Sub-Total: $314,444
TOTAL 2022-2023 CDBG PROGRAM $1,572,221
HOME Activities
Capital
CHDO Set-Aside $101,420
Homebuyer Assistance Program $507,099
Sub-Total: $608,519
Administration
Program Administration $67,613
Sub-Total: $67,613
TOTAL 2022-2023 HOME PROGRAM $676,132
Due to the uncertainty in the City’s 2022-2023 annual allocations, a request of the City Council is being made to provide staff and the public with a methodology for which activity budgets will be adjusted when the final allocations are released by HUD. It is recommended that City Council adopt the following language for adjusting activity budgets for the CDBG and HOME programs:
CDBG
Should the CDBG allocation be higher than $1,572,221:
oAdmin – Fair Housing will remain funded at $40,000 and the CDBG Administration budget will be increased to maximize the 20% cap for Administrative activities.
oPublic Service – The City will not award any additional activities but will increase the award to Lost Angels Children’s Project Work Force Development Program up to the lesser of a) their request of $100,000 or b) up to the increased amount to maximize the 15% cap for Public Service activities.
oCapital – Increase the award of Penny Lane Centers Drop-In Center Kitchen up to their request of $300,000. Should funds remain, the balance of funds shall be awarded to the Mariposa Park Improvement Project.
oFunding levels for all outstanding activities will remain the same as proposed in the 2022-2023 Action Plan.
Should the CDBG allocation be lower than $1,572,221:
oAdmin – Fair Housing will remain funded at $40,000 and the CDBG Administration budget will be decreased to be compliant with the 20% cap for Administrative activities.
oPublic Service – Decrease the Lost Angels Children’s Project Work Force Development Program to be compliant with the 15% cap for Public Service activities.
oCapital – Decrease the Penny Lane Centers Drop-In Center Kitchen to no less than $150,000. Should funds remain, the balance of funds shall be deducted from the Mariposa Park Improvement Project.
oFunding levels for all outstanding activities will remain the same as proposed in the 2022-2023 Action Plan.
HOME
Should the HOME allocation be higher than $676,132:
oAdmin – Increase HOME Administration budget to maximize the 10% cap for Administrative activities.
oCHDO – Increase CHDO set-aside to the minimum 15% cap for CHDO activities. oCapital – Balance of funds shall be awarded to the Homebuyer Assistance Program. Should the HOME allocation be lower than $676,132:
oAdmin – Decrease HOME Administration budget to be compliant with the 10% cap for Administrative activities.
oCHDO – Decrease CHDO set-aside to the minimum 15% cap for CHDO activities. oCapital – Balance of funds shall be deducted from to the Homebuyer Assistance Program.
Attachment:
City of Lancaster Draft 2022-2023 Action Plan
Annual Action Plan
FY 2022-2023
Draft
May 3, 2022
City of Lancaster i 2022 Annual Action Plan
This page intentionally left blank
City of Lancaster ii 2022 Annual Action Plan
Table of Contents
Table of Contents ................................ ................................ ................................ ................................ .... ii Version History ................................ ................................ ................................ ................................ ....... iii Executive Summary ................................ ................................ ................................ ............................ - 1 - AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) ................................ ............................... - 1 - PR-05 Lead & Responsible Agencies – 91.200(b) ................................ ................................ ............. - 7 - AP-10 Consultation – 91.100, 91.200(b), 91.215(l) ................................ ................................ .......... - 8 - AP-12 Participation – 91.105, 91.200(c) ................................ ................................ ........................ - 31 - Expected Resources ................................ ................................ ................................ ......................... - 34 - AP-15 Expected Resources – 91.220(c)(1,2) ................................ ................................ ................. - 34 - Annual Goals and Objectives ................................ ................................ ................................ ............ - 39 - AP-20 Annual Goals and Objectives................................ ................................ ............................... - 39 - AP-35 Projects – 91.220(d) ................................ ................................ ................................ ........... - 41 - AP-38 Project Summary ................................ ................................ ................................ ................ - 43 - AP-50 Geographic Distribution – 91.220(f) ................................ ................................ ..................... - 49 - Affordable Housing ................................ ................................ ................................ ........................... - 50 - AP-55 Affordable Housing – 91.220(g) ................................ ................................ ........................... - 50 - AP-60 Public Housing – 91.220(h) ................................ ................................ ................................ . - 52 - AP-65 Homeless and Other Special Needs Activities – 91.220(i) ................................ ..................... - 55 - AP-75 Barriers to Affordable Housing ................................ ................................ ............................. - 59 - AP-85 Other Actions – 91.220(k) ................................ ................................ ................................ ... - 61 - Program Specific Requirements ................................ ................................ ................................ ........ - 65 - AP-90 Program Specific Requirements – 91.220(l)(1,2,4) ................................ ............................... - 65 -
Action Plan Tables
Table 1 – Strategic Plan Summary ................................ ................................ ................................ ....... - 4 - Table 2 – Responsible Agencies ................................ ................................ ................................ .......... - 7 - Table 3 - Agencies, groups, organizations who participated................................ ................................ - 28 - Table 4 - Other local / regional / federal planning efforts ................................ ................................ ..... - 29 - Table 5 – Citizen Participation Outreach ................................ ................................ ............................ - 33 - Table 6 - Expected Resources – Priority Table ................................ ................................ ................... - 35 - Table 7 – Goals Summary ................................ ................................ ................................ ................. - 39 - Table 8 - Project Information ................................ ................................ ................................ ............. - 41 - Table 9 - Geographic Distribution ................................ ................................ ................................ ...... - 49 - City of Lancaster iii 2022 Annual Action Plan
Version History
No. Summary of Changes
1 Published Draft for Public Comment: March
30, 2022 Sent to HUD for Approval: May 13,
2022
Conducted Public Hearing: May 3,
2022 Approved by HUD: TBD
Original 2022-2023 Annual Action Plan.
City of Lancaster - 1 - 2022 Annual Action Plan
Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)
1. Introduction
The 2022 -2023 Action Plan is a one -year plan to address the community development and low - and moderate-income housing needs in the City of Lancaster. It is the third Action Plan of five annual plans implementing the 2020-2024 Consolidated Plan - Strategic Plan goals for the annual investment of Federa l Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) funds from the U.S. Department of Housing and Urban Development (HUD). The Action Plan identifies available resources, annual goals and projects for the period beginning July 1, 2022, and ending June 30, 2023.
The City receives CDBG and HOME funds from HUD on a formula basis each year, and in turn, allocates funds for projects designed to achieve the goals and outcomes included in the 2020-2024 Consolidated Plan - Strategic Plan. The CDBG and HOME programs provide for a wide range of eligible community development and housing projects that benefit low- and moderate-income Lancaster residents.
Community Development Block Grant (CDBG)
The Housing and Community Development Act of 1974 created the CDBG Program with three (3) primary objectives against which HUD evaluates the Consolidated Plan and the City's performance under the Plan. Those primary objectives are decent housing, suitable living environments, and expanded economi c opportunities for low- and moderate-income persons. The CDBG regulations require that each activity meet one (1) of the following national objectives:
• Benefit low- and moderate-income persons;
• Aid in the prevention or elimination of slums and blight; or • Meet other community development needs having a particular urgency (usually the result of a natural disaster).
HOME Investment Partnerships (HOME)
The Cranston-Gonzalez National Affordable Housing Act of 1990 created the HOME program to expand the supply of affordable housing for low- and moderate-income households. Often used in partnership with local nonprofit housing development organizations, the HOME program can support a wide range of affordable housing activities, including building, buying, and/or rehabilitating rental and ownership housing or providing direct rental assistance to low- and moderate-income people.
City of Lancaster - 2 - 2022 Annual Action Plan
2022-2023 Program Year
For the 2022-2023 program year, the City will receive $1,572,221 in CDBG funds and $676,132 in HOME funds for projects in this Action Plan.
Due to the uncertainty in the City’s 2022-2023 annual allocations, a request of the City Council is being made to provide staff and the public with a methodology for which activity budgets will be adjusted when the final allocations are released by HUD. It is recommended that City Council adopt the following language for adjusting activity budgets for the CDBG and HOME programs:
CDBG
• Should the CDBG allocation be higher than $1,572,221:
o Admin – Fair Housing will remain funded at $40,000 and the CDBG Administration budget will be increased to maximize the 20% cap for Administrative activities. o Public Service – The City will not award any additional activities but will increase the award to Lost Angels Children’s Project Work Force Development Program up to the lesser of a) their request of $100,000 or b) up to the increased amount to maximize the 15% cap for Public Service activities.
o Capital – Increase the award of Penny Lane Centers Drop -In Center Kitchen up to t heir request of $300,000. Should funds remain, the balance of funds shall be awarded to the Mariposa Park Improvement Project.
o Funding levels for all outstanding activities will remain the same as proposed in the 2022 - 2023 Action Plan.
• Should the CDBG allocation be lower than $1,572,221:
o Admin – Fair Housing will remain funded at $40,000 and the CDBG Administration budget will be decreased to be compliant with the 20% cap for Administrative activities. o Public Service – Decrease the Lost Angels Children’s P roject Work Force Development Program to be compliant with the 15% cap for Public Service activities. o Capital – Decrease the Penny Lane Centers Drop-In Center Kitchen to no less than $150,000.
Should funds remain, the balance of funds shall be deducted fr om the Mariposa Park Improvement Project.
o Funding levels for all outstanding activities will remain the same as proposed in the 2022 - 2023 Action Plan.
HOME
• Should the HOME allocation be higher than $676,132:
o Admin – Increase HOME Administration budget to maximize the 10% cap for Administrative activities.
o CHDO – Increase CHDO set-aside to the minimum 15% cap for CHDO activities. o Capital – Balance of funds shall be awarded to the Homebuyer Assistance Program.
City of Lancaster - 3 - 2022 Annual Action Plan
• Should the HOME allocation be lower than $676,132:
o Admin – Decrease HOME Administration budget to be compliant with the 10% cap for Administrative activities.
o CHDO – Decrease CHDO set-aside to the minimum 15% cap for CHDO activities. o Capital – Balance of funds shall be deducted from to the Homebuyer Assistance Program. 2022-2023 CDBG Activities
Public Service
Antelope Valley Boys & Girls Club: After School Recreation Programming $20,000 The People Concern: Kensington Campus Interim Housing Program $116,800 Lost Angels Children’s Project: Lost Angels Workforce Development Program $99,033 Sub-Total: $235,833
Capital
WDACS/Antelope Valley Senior Center: Wellness Center $26,099 City of Lancaster: Mariposa Park Improvements $600,000
Penny Lane Centers: Drop-In Center Kitchen $186,658
City of Lancaster: Section 108 Loan Repayment Mental Health America $106,118 City of Lancaster: Section 108 Loan Repayment Children’s Center $103,069 Sub-Total: $1,021,944
Administration
Program Administration $274,444
Southern California Housing Rights Center: Fair Housing Services $40,000 Sub-Total: $314,444
TOTAL 2022-2023 CDBG PROGRAM $1,572,221
2022-2023 HOME Activities
Capital
CHDO Set Aside $101,420
Homebuyer Assistance Program $507,099
Sub-Total: $608,519
Administration
Program Administration $67,613
Sub-Total: $67,613
TOTAL 2022-2023 HOME PROGRAM $676,132
City of Lancaster - 4 - 2022 Annual Action Plan
2. Summarize the objectives and outcomes identified in the Plan The City of Lancaster will address the following objectives during the 2022 -2023 program year. These objectives are as follows:
• Provide Decent Affordable Housing
• Improve and Expand Facilities and Infrastructure
• Provide Supportive Human Services
• Planning and Administration
Goal Name Category Need(s) Addressed Goal Outcome
Indicator
1 Increase the
Supply of
Affordable
Housing
Affordable Housing Affordable Housing 5 - Household
Housing Unit
2 Improve and
Expand Facilities
and Infrastructure
Non-Housing Community
Development
Facilities and
Infrastructure
500,000 - Persons
10 – Other
3 Provide
Supportive Human
Services
Homeless/Non-
Homeless/Special Needs
Supportive Human
Services 2,850 – Persons
4 Planning and
Administration
Non-Housing Community
Development
Planning and
Administration 10 - Other
5 Fair Housing
Non-Housing Community
Development/Homeless/Non-
Homeless/Special Needs
Supportive Human
Services 1,500 – Persons
6 Affordable
Housing
Preservation
Affordable Housing Affordable Housing 80 – Household
Housing Units
7 Promote
Homeownership
Opportunities
Affordable Housing Affordable Housing 25 - Households
Table 1 – Strategic Plan Summary
City of Lancaster - 5 - 2022 Annual Action Plan
3. Evaluation of past performance
The City is implementing the projects and activities included in the 2020 -2024 Consolidated Plan and prior action plans. City staff continually evaluates the CDBG Program and makes adjustments and/or process improvements where and when necessary. Currently, all projects and activities are on schedule for completion as planned. Overall, the City of Lancaster has been successful in selecting projects and activities which meet the City's 2020-2024 Consolidated Plan priorities and Annual Action Plan goals.
As of the preparation of this document, the City has not yet finalized its 2021 -2022 program year, and therefore are unable to report on those accomplishments. Accomplishment data for the 2021-2022 program year will be reported in the City’s 2021 -2022 Consolidated Annual Performance and Evaluation Report (CAPER) which is anticipated to be completed in September 2022.
During the 2020-2021 program year, the City and its partners were able to:
• Provide Fair Housing services to 317 individuals.
• Provide temporary rental assistance to 9 households.
• Complete the ADA Improvements to the Sergeant Steve Owen Memorial Park, benefiting 161 ,540 residents .
• Complete improvements to the Kensington Homeless facility benefiting 100 low -income homeless persons.
• Provide meals to 893 seniors and other residents of the City through the Feed the Need Program.
4. Summary of Citizen Participation Process and consultation process A public comment/review period notice outlining the proposed use of funds for the Consolidated Plan's Annual Action Plan for 2022 -2023 program year was published March 30, 2022, allowing a 30 -day review/comment period startin g on April 1, 2022, and ending on May 3, 2022. This notice was made in compliance with HUD guidelines and the City's approved Citizen Participation Plan of the 2020 -2024 Consolidated Plan.
A public hearing was held May 3, 2022, to receive public comment on the proposed 2022-2023 Action Plan and receive City Council action.
5. Summary of public comments
No comments were received during the preparation of the 2022 -2023 Action Plan or any amendments thereof.
6. Summary of comments or views not accepted and the reasons for not accepting them All comments and views were accepted. A complete list of comments received have been included in Appendix A.
City of Lancaster - 6 - 2022 Annual Action Plan
7. Summary
The City adopted the 2022-2023 Action Plan for the planning period of July 1, 2022, through June 30, 2023, to utilize $1,572,221 in CDBG and $676,132 in HOME funds on May 3, 2022.
City of Lancaster - 7 - 2022 Annual Action Plan
PR-05 Lead & Responsible Agencies – 91.200(b)
1. Agency/entity responsible for preparing/administering the Consolidated Plan The following are the agencies/entities responsible for preparing the 2022 -2023 Action Plan and those responsible for administration of each grant program and funding source.
Agency Role Name Department/Agency
CDBG Administrator Lancaster Finance and Information
Technology
HOME Administrator Lancaster Development
Services/Housing
Table 2 – Responsible Agencies
Narrative
The City’s Finance & Information Technology Department is the lead agency responsible for the administration of the CDBG program and the City’s Development Services Department is the lead agency responsible for the administration of the HOME program. The City has contracted with LDM Associates, Inc. to assist in the preparation of the 2022-2023 Action Plan.
In the development of this Consolidated Plan, the City developed and implemented a comprehensive citizen participation and consultation process and conducted a needs assessment and market analysis to identify levels of relative need regarding affordable ho using, homelessness, special needs, and community development. This information was gathered through consultation with public officials and local agencies, public outreach and community meetings, review of demographic and economic data, and housing market analysis.
In the implementation of the 2022 -2023 Action Plan, the Department shall be responsible for all grants planning, management and monitoring duties necessary to comply with HUD regulations and City policy Consolidated Plan Public Contact Information
City of Lancaster Finance and Information Technology Department Attn.: Nike Noack, Senior Finance Manger
44933 Fern Avenue
Lancaster, CA 93534
[email protected]
(661) 723-6135
City of Lancaster - 8 - 2022 Annual Action Plan
AP-10 Consultation – 91.100, 91.200(b), 91.215(l)
1. Introduction
Under the City Council / Manager form of government, the City Council appoints and provides policy direction to the City Manager, who is responsible for administering the city’s daily operations. As the elected legislative body of the City, the City Council has overall responsibility for the scope, direction and financing of City services. In setting policy, the City Council works closely with citizen advisory commissions and committees, considers staff information, recommendations and receives comments from the general public during open forums.
In the preparation of the 2022-2023 Action Plan, the City has consulted with public and private departments, agencies, social services and non -profit organizations to understand the community’s needs and available resources. Department staff provided input on how CDBG resources could be used and leveraged to provide services. The City solicited feedback through the following methods:
• Community Partners Meetings
• Notice of Funding Availability
• Workshops
• Public Notices
• Posting of documents on the City’s website
• Public Hearings
• Receipt of written comments
Additionally, cities and governments within the region were contacted and consulted as well. The input received helped to establish and inform the objectives and goals described in the Strategic Plan.
Provide a concise summary of the jurisdiction 's activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(I)).
The City is principal provider of community and economic development programs, housing projects, and financial support. The Los Angeles County Development Authority (LACDA) administers the Section 8 Voucher program. Activities to be undertaken by the LACDA are identified in the Public Housing Agency (PHA) 5 Year and One-Year Action Plans. The residents are invited each year to contribute to the drafting of the PHA’s Plan.
Other key health, mental health and service agencies that the City works closely with during the Action Plan process are listed below:
• Antelope Valley Service Provider Coalition
• Homelessness Plan Community Participation (Survey)
• County of Los Angeles
City of Lancaster - 9 - 2022 Annual Action Plan
Describe coordination with the Con tinuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness Los Angeles County’s homeless system of care is comprised of a network of public, private, faith-based, for- profit, and non -profit service providers who utilize several federal, state and local resources to provide services for homeless people. The region’s municipalities, including the City of Lancaster, also provide resources for services that assist the homeless and those at risk of becoming homeless. To address the needs of the homeless population most efficiently, HUD has tasked local governments with developing a Continuum of Care (CoC). The CoC is a planning model designed to assist homeless persons at every level of need and to move a client from homelessness to permanent housing. The CoC addresses both the lack of housing affordable to the lowest income levels and th e underlying causes of homelessness such as substance abuse, domestic violence, and mental illness. The County’s nonprofit community plays a key role in the current Continuum of Care (CoC) system. Hundreds of agencies throughout the County provide programs ranging from feeding the homeless on the street to creating permanent supportive housing opportunities. These services are available to homeless families with children, and single men and women The Los Angeles Homeless Services Authority (LAHSA) is the le ad agency for the CoC in Los Angeles County. LAHSA guides the development of homeless strategies and the implementation of programs to end homelessness throughout the region. LAHSA partners with other local government agencies and community- based non -profit agencies to provide homeless services throughout Los Angeles County. All service providers within the CoC can refer people with varying needs to the appropriate service provider(s) in their area. Homeless needs are presented by the levels of service that form the CoC:
• Prevention – Activities include income support, rental assistance, and advocacy. Eviction prevention and crisis intervention help at-risk households maintain their housing and sidestep homelessness. • Outreach and Assessment – Activities include walking the streets and other places not fit for human habitation and marketing available services to homeless persons reluctant to apply for services on their own. Once the client enters the system, the assessment process identifies the client’s needs. • Emergency Shelter – Offers a safe, secure, temporary place (up to 90 days) for homeless persons to reside while they prepare to move into more stable housing. • Transitional Housing – Long-term (up to 24 months) housing with supportive services that addres s the underlying causes of homelessness. Transitional housing programs enable people to successfully transition to and maintain permanent housing.
• Permanent and Permanent Supportive Housing – Permanent housing for most is affordable, market- rate housing. Permanent supportive housing enables persons with disabilities to live as independently as possible. Moving previously homeless persons into permanent housing is the primary objective of the Continuum.
• Supportive Services – Activities that help persons addr ess the underlying causes of homelessness and move toward self -sufficiency and independent living. Services include substance abuse treatment, employment education and job readiness, budgeting workshops, parenting classes, and childcare. Services may be part of a housing program or independently provided.
City of Lancaster - 10 - 2022 Annual Action Plan
For many City residents, the first entry into the CoC is through an emergency shelter, where individuals and families obtain emergency housing and supportive services directed to getting people off the streets and into a safe environment. Typically, people stay in an emergency shelter for a short period. Usually during this time, other housing is arranged, and the homeless person’s immediate social service and medical needs are addressed.
Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards and evaluate outcomes, and develop funding, policies and procedures for the administration of HMIS
The City's HUD entitlement allocation does not include ESG funds. However, the City will continue to support the efforts of LAHSA and the County of Los Angeles in their development of performance standards for the County’s ESG program that provide a measure to evaluate each subrecipients’ effectiveness, such as how well the service provider succeeds at 1) targeting those who need the assistance most; 2) reducing the number of people living on the streets or emergency shelters; 3) shortening the time people spend homeless; and 4) reducing each program participant’s housing barriers or housing stability risks. In addition, the City of Lancaster will continue its participation in the regional Antelope Valley Homeless Coalition. This partnership provides a coordinated effort, in conjunction with the LAHSA, for funding and the study of a variety of issues related to the homeless population, housing needs, public services, and overall enhancement of the region’s CoC.
City of Lancaster - 11 - 2022 Annual Action Plan
2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdictions consultations with housing, social service agencies and other entities 1 Agency/Group/Organization Housing Rights Center
Agency/Group/Organization Type Service-Fair Housing
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Public Housing Needs
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
2 Agency/Group/Organization American Association of University Women Agency/Group/Organization Type Services - Women
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
3 Agency/Group/Organization City of Santa Clarita
Agency/Group/Organization Type Other Government - Local What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Public Housing Needs
Homeless Strategy
Non-Homeless Special Needs
Economic Development
Anti-Poverty Strategy
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach,
the web-based survey.
City of Lancaster - 12 - 2022 Annual Action Plan
4 Agency/Group/Organization Latin American Civic Association Agency/Group/Organization Type Regional Organization
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach,
the web-based survey.
5 Agency/Group/Organization PLI Realty Inc.
Agency/Group/Organization Type For-Profit Business
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Lead-Based Paint Strategy
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach,
the web-based survey.
6 Agency/Group/Organization City of Palmdale
Agency/Group/Organization Type Other Government - Local What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Public Housing Needs
Homeless Strategy
Non-Homeless Special Needs
Economic Development
Anti-Poverty Strategy
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach,
the web-based survey.
7 Agency/Group/Organization Partners for Potential
Agency/Group/Organization Type Services – Persons with Disabilities What section of the Plan was addressed by
Consultation?
Non-Homeless Special Needs
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach,
the web-based survey.
City of Lancaster - 13 - 2022 Annual Action Plan
8 Agency/Group/Organization Bridge Housing
Agency/Group/Organization Type Housing
Services - Housing
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Public Housing Needs
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
9 Agency/Group/Organization Los Angeles Homeless Services Authority Agency/Group/Organization Type Services – Homeless
Regional Organization
What section of the Plan was addressed by
Consultation?
Homeless Needs – Chronically Homeless
Homeless Needs – Families with Children
Homeless Needs – Veterans
Homeless Needs – Unaccompanied Youth
Homelessness Strategy
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
10 Agency/Group/Organization Boy Scouts of America
Agency/Group/Organization Type Services - Children
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
11 Agency/Group/Organization California Association of Realtors Agency/Group/Organization Type Housing
Services – Housing
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Market Analysis
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
City of Lancaster - 14 - 2022 Annual Action Plan
12 Agency/Group/Organization L.A. County Sheriff’s Department Agency/Group/Organization Type Agency – Emergency Management Other Government - County
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
13 Agency/Group/Organization Habitat for Humanity
Agency/Group/Organization Type Housing
Services - Housing
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach,
the web-based survey.
14 Agency/Group/Organization County of Los Angeles Department of Public Health Agency/Group/Organization Type Services – Health
Health Agency
Regional Organization
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
15 Agency/Group/Organization The Breast Cancer Resource Center Inc.
Agency/Group/Organization Type Services – Health
Health Agency
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was cons ulted by email outreach
and the web-based survey.
City of Lancaster - 15 - 2022 Annual Action Plan
16 Agency/Group/Organization Step Up
Agency/Group/Organization Type Services – Homeless
What section of the Plan was addressed by
Consultation?
Homeless Needs – Chronically Homeless
Homeless Needs – Families with Children
Homeless Needs – Veterans
Homeless Needs – Unaccompanied Youth
Homelessness Strategy
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
17 Agency/Group/Organization Foundation for Children’s Dental Health Agency/Group/Organization Type Services – Children
Services – Health
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
18 Agency/Group/Organization North Los Angeles County Regional Center Agency/Group/Organization Type Regional Organization
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
19 Agency/Group/Organization College of the Canyons Foundation Agency/Group/Organization Type Services – Education
What section of the Plan was addressed by
Consultation?
Institution of Higher Education
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
City of Lancaster - 16 - 2022 Annual Action Plan
20 Agency/Group/Organization American Diabetes Association Agency/Group/Organization Type Services – Health
Health Agency
Regional Organization
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
Medical Institution
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
21 Agency/Group/Organization Jewish Vocational Services (Grow Office) Agency/Group/Organization Type Services – Employment
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
22 Agency/Group/Organization Antelope Valley Community Clinic Agency/Group/Organization Type Services – Health
Health Agency
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
23 Agency/Group/Organization Greater Antelope Valley Economic Alliance Agency/Group/Organization Type Services – Employment
Regional Organization
What section of the Plan was addressed by
Consultation?
Economic Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
City of Lancaster - 17 - 2022 Annual Action Plan
24 Agency/Group/Organization American Cancer Society
Agency/Group/Organization Type Services – Health
Health Agency
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was cons ulted by email outreach
and the web-based survey.
25 Agency/Group/Organization Antelope Valley America’s Job Center of California Agency/Group/Organization Type Services – Employment
Regional Organization
What section of the Plan was addressed by
Consultation?
Economic Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
26 Agency/Group/Organization Antelope Valley Dream Center Agency/Group/Organization Type Services – Food Distribution What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
27 Agency/Group/Organization Antelope Valley Family YMCA Agency/Group/Organization Type Services – Health
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
City of Lancaster - 18 - 2022 Annual Action Plan
28 Agency/Group/Organization Antelope Valley High School District Agency/Group/Organization Type Services – Education
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
29 Agency/Group/Organization Antelope Valley Hospital
Agency/Group/Organization Type Services – Health
Health Agency
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
30 Agency/Group/Organization Antelope Valley Partners for Health Agency/Group/Organization Type Services – Health
Health Agency
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
31 Agency/Group/Organization Antelope Valley Senior Center Agency/Group/Organization Type Services – Elderly Persons What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
City of Lancaster - 19 - 2022 Annual Action Plan
32 Agency/Group/Organization Antelope Valley Domestic Violence Council Agency/Group/Organization Type Services – Victims of Domestic Violence What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
33 Agency/Group/Organization Antelope Valley Edge
Agency/Group/Organization Type Services – Business Assistance What section of the Plan was addressed by
Consultation?
Economic Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
34 Agency/Group/Organization Antelope Valley College - Student Services Agency/Group/Organization Type Services – Education
Institution of Higher Education
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
35 Agency/Group/Organization Bartz-Altadonna Community Health Center Agency/Group/Organization Type Services – Health
Health Agency
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was cons ulted by email outreach
and the web-based survey.
City of Lancaster - 20 - 2022 Annual Action Plan
36 Agency/Group/Organization Boys & Girls Club of the Antelope Valley Agency/Group/Organization Type Services – Children
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
37 Agency/Group/Organization Care Net Women’s Resource Center Agency/Group/Organization Type Services – Health
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
38 Agency/Group/Organization Children’s Bureau
Agency/Group/Organization Type Services – Children
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
39 Agency/Group/Organization City of Hope Antelope Valley Agency/Group/Organization Type Services – Health
Health Agency
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
City of Lancaster - 21 - 2022 Annual Action Plan
40 Agency/Group/Organization Desert Haven Enterprises, Inc.
Agency/Group/Organization Type Services – Persons with Disabilities What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
41 Agency/Group/Organization Easter Seals
Agency/Group/Organization Type Services – Persons with Disabilities What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
42 Agency/Group/Organization Eastside Union School District Agency/Group/Organization Type Services - Education
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
43 Agency/Group/Organization Grace Resource Center
Agency/Group/Organization Type Services – Homeless
What section of the Plan was addressed by
Consultation?
Homeless Needs – Chronically Homeless
Homeless Needs – Families with Children
Homeless Needs – Veterans
Homeless Needs – Unaccompanied Youth
Homelessness Strategy
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
City of Lancaster - 22 - 2022 Annual Action Plan
44 Agency/Group/Organization Hope of the Valley: Antelope Valley Agency/Group/Organization Type Services – Homeless
What section of the Plan was addressed by
Consultation?
Homeless Needs – Chronically Homeless
Homeless Needs – Families with Children
Homeless Needs – Veterans
Homeless Needs – Unaccompanied Youth
Homelessness Strategy
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
45 Agency/Group/Organization Innovation Education
Agency/Group/Organization Type Services - Education
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
46 Agency/Group/Organization LA Family Housing
Agency/Group/Organization Type Services – Homeless
What section of the Plan was addressed by
Consultation?
Homeless Needs – Chronically Homeless
Homeless Needs – Families with Children
Homeless Needs – Veterans
Homeless Needs – Unaccompanied Youth
Homelessness Strategy
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outr each
and the web-based survey.
47 Agency/Group/Organization LACOE Gain – Lancaster Office Agency/Group/Organization Type Services – Employment
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
City of Lancaster - 23 - 2022 Annual Action Plan
48 Agency/Group/Organization LACOE Grow – Lancaster Office Agency/Group/Organization Type Services – Employment
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
49 Agency/Group/Organization Lancaster School District Agency/Group/Organization Type Services – Education
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
50 Agency/Group/Organization Lost Angels Children’s Project Agency/Group/Organization Type Services – Education
Services – Employment
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
51 Agency/Group/Organization Mental Health America of Los Angeles Agency/Group/Organization Type Services – Persons with Disabilities What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
City of Lancaster - 24 - 2022 Annual Action Plan
52 Agency/Group/Organization Paving the Way Foundation Agency/Group/Organization Type Services – Health
Services – Education
Services – Employment
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
53 Agency/Group/Organization Penny Lane Centers
Agency/Group/Organization Type Services – Children
Services – Persons with Disabilities
Services – Victims of Domestic Violence
Services - Employment
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
54 Agency/Group/Organization Project Joy USA
Agency/Group/Organization Type Services – Children
Services – Education
Services - Employment
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
55 Agency/Group/Organization Salvation Army
Agency/Group/Organization Type Services – Health
Services – Homeless
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
City of Lancaster - 25 - 2022 Annual Action Plan
56 Agency/Group/Organization Streetplus
Agency/Group/Organization Type Services – Neighborhood Stabilization What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
57 Agency/Group/Organization The Catalyst Foundation
Agency/Group/Organization Type Services – Persons with HIV/AIDS Services - Homeless
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
58 Agency/Group/Organization The Children’s Center of Antelope Valley Agency/Group/Organization Type Services – Children
Services - Education
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
59 Agency/Group/Organization The People Concern
Agency/Group/Organization Type Services – Housing
Services - Homeless
What section of the Plan was addressed by
Consultation?
Homeless Needs – Chronically Homeless
Homeless Needs – Families and Children
Homelessness Needs – Veterans
Homelessness Needs – Unaccompanied Youth
Homelessness Strategy
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
City of Lancaster - 26 - 2022 Annual Action Plan
60 Agency/Group/Organization Valley Oasis
Agency/Group/Organization Type Services – Victims of Domestic Violence Services - Homeless
What section of the Plan was addressed by
Consultation?
Homeless Needs – Chronically Homeless
Homeless Needs – Families and Children
Homelessness Needs – Veterans
Homelessness Needs – Unaccompanied Youth
Homelessness Strategy
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
61 Agency/Group/Organization Volunteers of America
Agency/Group/Organization Type Housing
Services – Housing
Services – Children
Services – Persons with Disabilities
Services - Homeless
What section of the Plan was addressed by
Consultation?
Homeless Needs – Chronically Homeless
Homeless Needs – Families and Children
Homelessness Needs – Veterans
Homelessness Needs – Unaccompanied Youth
Homelessness Strategy
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
62 Agency/Group/Organization Wesley Health Centers
Agency/Group/Organization Type Services – Health
Health Agency
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
City of Lancaster - 27 - 2022 Annual Action Plan
63 Agency/Group/Organization Westside Union School District Agency/Group/Organization Type Services - Education
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
64 Agency/Group/Organization YWCA
Agency/Group/Organization Type Services – Children
Services – Health
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
65 Agency/Group/Organization Girls Scout of Great Los Angeles Agency/Group/Organization Type Services - Children
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
66 Agency/Group/Organization Cub Scouts Pack #614
Agency/Group/Organization Type Services - Children
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
City of Lancaster - 28 - 2022 Annual Action Plan
67 Agency/Group/Organization St. Vincent De Paul
Agency/Group/Organization Type Services - Homeless
What section of the Plan was addressed by
Consultation?
Homeless Needs – Chronically Homeless
Homeless Needs – Families and Children
Homelessness Needs – Veterans
Homelessness Needs – Unaccompanied Youth
Homelessness Strategy
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
68 Agency/Group/Organization Carousel Ranch, Inc.
Agency/Group/Organization Type Services – Persons with Disabilities What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey.
Table 3 - Agencies, groups, organizations who participated Identify any Agency Types not consulted and provide rationale for not consulting The City maintains a list of agencies, organizations and other stakeholders that have expressed an interest in City’s CDBG and HOME programs and invited representatives from each entity to participate at multiple points in the planning process. All agencies were strongly encouraged to attend meetings and participate in surveys. Any agency or organization that was not consulted and would like to be included in the City’s list of stakeholders, the agency or organization may contact the Department Finance and Information Technology at (661) 723-6158.
Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
Continuum of
Care
County of Los
Angeles, Los
Angeles Homeless
Service Authority
(LAHSA)
The County of Los Angeles is a CoC applicant and conducts homeless counts, surveys of the homeless population, and strategic planning to end homelessness. Consistent with the goals of the CoC, the City's Strategic Plan will provide support to nonprofits that meet the social services needs of the City's residents with an emphasis on the homeless.
City of Lancaster - 29 - 2022 Annual Action Plan
Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
Housing Element City of Lancaster
Based on the Regional Housing Needs Allocation (RHNA) set for by the State of California, The Housing Element is the City's chief policy document for the development of affordable and market rate housing. Consistent with this policy
document, the City will maintain and enhance the quality of existing residential neighborhoods, promote and encourage fair housing opportunities fo r all economic segments of the community, regardless of age, sex, ethnic background,
physical condition, or family size.
Homelessness
Plan
City of Lancaster The City prepared a Homelessness Plan in August 2018 to gain a better understanding of homelessness in the City, the issues that contribute to homelessness, the makeup of the homeless population in the City, and identify goals and strategies to address homelessness and the associated
impacts. The Lancaster Community Homelessness Plan aims to decrease t he number of persons experiencing
homelessness in the City, reduce the impact of homelessness within the City, align City resources with County investments, through a regional approach, and improve quality of life for all residents. The objectives of the Plan are to align efforts with the County's Homeless Initiatives, consider a true balanced approach (for the entire community), provide equal
placement of attention on public safety and community
vitality, seek a collaborative approach, and engage the community.
ADA Self-
Evaluation and
Transition Plan
City of Lancaster The City's Americans with Disabilities Act (ADA) Self - Evaluation and Transition Plan (June 2015) was prepared to partially fulfill the requirements set forth in Title II of the Americans with Disabilities Act. The ADA states that a public entity must reasonably modify its policies, practices, or procedures to avoid discrimination against people with
disabilities. The report assists the City of Lancaster to identify policy, program, and physical barriers to accessibility and to develop barrier removal solutions that will facilitate the opportunity of access to all individuals.
Table 4 - Other local / regional / federal planning efforts
City of Lancaster - 30 - 2022 Annual Action Plan
Describe cooperation and coordination with other public entities, including the State and any adjacent units of general local government, in the implementation of the Consolidated Plan (91.215(l)) To enhance coordination among the CoC, public and assisted housing p roviders and private and governmental health, mental health and service agencies, the City invited each of these entities to provide input on the needs of the community in the development of this Consolidated Plan.
The City works with subrecipients of CDBG funds to ensure a coordinated effort among service agencies in the region to address the needs of the City’s residents, including but not limited to , chronically homeless individuals and families, families with children, v eterans and their families, unaccompanied youth, and persons who were recently homeless but now liv ing in permanent housing. To promote economic opportunities for low -income residents, the City coordinates with subrecipient social service agencies, businesses and housing developers to ensure that where there are job opportunities for low -income people in connection with HUD -assisted projects, information is disseminated through appropriate channels consistent with the objectives of Section 3 of the Housing and Community Development Act of 1968.
Narrative
The City is an urbanized community with easy access to broadband services throughout the City. Per BroadbandNow, the City is served by 21 internet service providers with 427 verified Internet plans since 2014. DSL and cable are the primary broadband types around the Lancaster metro area. Most affordable housing developments in California requires multiple layers of funding sources, such as Low-Income Housing Tax Credits (LIHTC) and HUD funds. These programs either mandate or encourage broadband services. All affordable housing developments in the City have access to broadband services. However, to address consultation requirements regarding broadband, the City coordinated with some of its main service providers including but not limited to Spectrum, Frontier, AT&T, and Earthlink to aid in narrowing the digital divide.
While broadband is available through multiple providers in the City resulting in increased competition, costs may remain excessive for some of the City residents. For this reason, access to high -speed broadband at affordable rates remains a need in the City, especially since COVID-19 which required immediate access to information to ensure individuals were compliant with social distancing require ments to safeguard against immediate infection and school closures which required students to learn from home.
City of Lancaster - 31 - 2022 Annual Action Plan
AP-12 Participation – 91.105, 91.200(c)
1. Summary of citizen participation process/Efforts made to broaden citizen participation The City encourages citizens to participate in the development of the five-year Consolidated Plan, as well as the Annual Action plan and the proposed use of CDBG and HOME funds. City staff developed a detailed participation process for the 2020-2024 Consolidate Plan. As required by HUD, nonprofits and community residents were provided adequate opportunity to review and comment on the original Citizen Participation Plan and on substantial amendments to the plan, if necessary.
Citizens were engaged through community meetings, surveys, public hearings, and individual meetings.
Citizens who participated in the process received extensive information about the Consolidated Plan, the citizen participation process, the HUD requirements for an entitlement City, the amount of funding that the City anticipates receiving and how those funds can be used by the City. Residents were given the opportunity to provide City staff with their input on the prioritization of community needs. Each of these efforts, including review of HUD Data and relevant policy documents, assisted the City in its goal setting efforts.
To fully involve the public in the Action Plan process, a public comment/r eview period notice outlining the proposed use of funds for the Action Plan for the 2022-2023 program year was published March 30, 2022, allowing a 30-day review/comment period ending May 3, 2022. This notice was made in compliance with HUD guidelines and the City’s approved Citizen Participation Plan. No comments were received during the public comment/review period. In addition, a public hearing was held May 3, 2022, to receive public comment on the proposed 2022 -2023 Action Plan and receive City Counc il action. No comments were received during the public hearing held on May 3, 2022.
City of Lancaster - 32 - 2022 Annual Action Plan
Citizen Participation Outreach
Sort
Order
Mode of
Outreach
Target of
Outreach
Summary of
Response/attendance
Summary of
Comments
received
Summary of
comments not
accepted and
reasons
URL (If applicable)
1 Newspaper
Ad
Non-targeted/
broad community
Notice of the 30 -day public
review and comment period
for the draft 2022-2023 Action
Plan. The public notice invited
interested residents to review
the draft documents.
Residents were also invited to
a public hearing to provide
oral comments before the City
Council on May 3, 2022.
No
comments
were
received.
No comments
were received.
Not applicable.
2 Internet
Outreach
Non-targeted/
broad community
The 2022 -2023 Action Plan
was posted on the City's
website for public review on
April 1, 2022. The public
notice solicited residents &
stakeholders to review the
draft Action Plan to provide
written comments by May
3,2022.
No public
comments
received.
No public
comments
received.
https://www.cityoflancaster
ca.org/our-
city/departments-
services/housing-
neighborhood-
revitalization/cdbg-
community-development-
block-grant
City of Lancaster - 33 - 2022 Annual Action Plan
Sort
Order
Mode of
Outreach
Target of
Outreach
Summary of
Response/attendance
Summary of
Comments
received
Summary of
comments not
accepted and
reasons
URL (If applicable)
3 Public
Hearing
Minorities
Non-English
Speaking -
Specify other
language: Any
other language
Persons with
disabilities
Non-
targeted/broad
community
Residents of
Public and
Assisted Housing
Public hearing before the City
Council on May 3 , 2022, to
receive comments on the draft
2022-2023 Annual Action
Plan prior to adoption and
submission to HUD.
No
comments
were
received.
No comments
were received.
Not applicable
Table 5 – Citizen Participation Outreach
City of Lancaster - 34 - 2022 Annual Action Plan
Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
The Strategic Plan goals included in the City’s Consolidated Plan were based on resources that were reasonably anticipated to be available to the City from federal, state, local and private sources from July 1, 2020, through June 30, 2025. The actual resources available to support activities during the implementation of the Consolidated Plan may vary significantly due to factors outside of the City’s control. For example, HUD formula grant allocations are subject to change each year based on a number of factors such as the amount of the national appropriation, changes in ACS population data applied to the CPD grant formulas, statutory changes to the CPD grant formulas, the addition or removal of entitlements receiving a particular CPD grant and the availability of reallocated funds. Additionally, state, local and private resources will vary significantly depending on economic conditions.
At the time of the preparation of this draft document, HUD has not released the City’s 2022 -2023 annual allocations for the CDBG and HOME programs. For this reason, HUD has advised the City to prepare the draft document utilizing the current year annual allocation for both programs. This Action Plan for FY 2022 (July 1, 2022, through June 30, 2023) is the third year of implementation for the five-year Consolidated Plan.
A number of housing and community development resources are currently available in the City. They include:
• HOME Investment Partnership Program (HOME)
• Community Development Block Grant (CDBG)
• General funds
• HUD Section 8 Rental Assistance Program (through LACDA) On May 3, 2022, the City approved the 2022 -2023 Action Plan allocating approximately $1,572,221 and $676,132 in CDBG and HOME funds, respectively.
City of Lancaster - 35 - 2022 Annual Action Plan
Anticipated Resources
Program Source of
Funds Uses of Funds
Expected Amount Available Year 3 Expected
Amount
Available
Remainder of
ConPlan
$
Narrative Description
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources: $
Total:
$
CDBG public -
federal
Acquisition
Admin and Planning
Economic Development
Housing
Public Improvements
Public Services
$1,572,221 $0 $0 $1,572,221 $3,144,442
The expected
amount available for
the remainder of the
Consolidated Plan
period assumes level
funding in future
years.
HOME public -
federal
Acquisition
Homebuyer assistance
Homeowner rehab
Multifamily rental new
construction
Multifamily rental rehab
New construction for
ownership
TBRA
$676,132 0 $0 $676,132 $1,352,264
The expected
amount available for
the remainder of the
Consolidated Plan
period assumes level
funding in future
years.
Table 6 - Expected Resources – Priority Table
City of Lancaster - 36 - 2022 Annual Action Plan
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied The City and HUD share an interest in leveraging HUD resources to the maximum extent feasible to deliver high-quality, creative and efficient housing programs, n eighborhood improvement programs, supportive services and economic development programs. During the 2022-2023 program year, the City will leverage its CDBG and HOME entitlement grants with a variety of funding resources in order to maximize the effectiveness of available funds. The City and its development partners will continue to seek new opportunities to leverage federal funds, such as the Low Income Housing Tax Credit program and other State of California resources made available as a result of recent State laws that took effect in 2019 and 2020.
Federal Resources
• Continuum of Care (CoC) Program
• HUD Veterans Affairs supportive Housing (HUD-VASH)
• Supportive Housing for the Elderly (Section 202)
• Supportive Housing for Persons with Disabilities (Section 811) • Housing Opportunities for Persons with AIDS (HOPWA)
• Youthbuild
• Federal Low-Income Housing Tax Credit Program
• Department of Transportation Grants
• Department of Energy Grants
• Federal Highway Administration
• Emergency Solutions Grant
• HOME Investment Partnerships
• CARES Act
• Project Homekey
State Resources
• State Low-Income Housing Tax Credit Program
• Building Equity and Growth in Neighborhoods Program (BEGIN) • CalHome Program
• Multifamily Housing Program (MHP)
• Housing Related Parks Grant
• CalHFA Single and Multi-Family Program
• Mental Health Service Act (MHSA) Funding
• Prop 47 – Board of State & Community Corrections
• Justice Assistance Grant (JAG) Program
• Homeless Emergency Aid Program (HEAP)
• Project Roomkey
City of Lancaster - 37 - 2022 Annual Action Plan
Local Resources
• Los Angeles County CoC
• Los Angeles County Development Authority (LACDA)
• Southern California Home Financing Authority (SCHFA)
• General Fund
Private Resources
• Federal Home Loan Bank Affordable Housing Program (AHP) • Community Reinvestment Act Programs
• United Way Funding
• Private Contributions
In addition, the City is a current recipient of American Rescue Plan Act (ARPA) funds and HOME American Rescue Plan (HOME ARP) funds which will go towards funding activities that help facilitate the City’s recovery from the devasting economic and health effects of the COVID-19 pandemic. The City anticipates allocating these funds via a Substantial Amendment to the 2021-2022 Annual Action Plan.
HOME Matching Requirements
HUD requires HOME recipients (PJs) to match 25 percent of their HOME annual allocation. In accordance with 24 CFR 92.222, PJs satisfying the distress criteria established by the HOME Program regulations are provided a match reduction. The match reductions are granted due to fiscal distress, severe fiscal distress, and Presidential disaster declarations. For those PJs with both fiscal distress and Presidential disaster match reductions, the PJ may take the higher match reduction for the current fiscal year.
When a local jurisdiction meets one of the distress criteria, it is determined to be in fiscal distress and receives a 50 percent reduction of match. If a local jurisdiction satisfies both of the distress criteria, it is determined to be in severe fiscal distress and receives a 100 percent reduction of match. The City of Lancaster has received a 100 percent match reduction from HUD, and therefore, is required to match 0 percent of HOME Funds using non-federal funds.
The City leverages HOME funds with othe r local and private non -federal resources even though it has received a 100 percent match reduction from the 25 percent matching requirement. Any funds that are used in a HOME activity in excess of the required match will be documented by the City and repo rted to HUD as part of the Consolidated Annual Performance and Evaluation Report (CAPER) each year.
If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan
Unfortunately, as of the date of this document, the City does not currently have any publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan. Although City of Lancaster - 38 - 2022 Annual Action Plan
the City previously owned foreclosed prop erties acquired under the Neighborhood Stabilization Program (NSP), the City has since rehabilitated and sold the properties to income eligible households. Throughout the five-year Consolidated Plan period, the City will continue to utilize and leverage CDBG and HOME funds for the acquisition of publicly owned land or property to address the needs of the community through collaborations with housing developers and Community Housing and Development Organizations (CHDOs) who possess the financial and adminis trative capacity to implement and complete affordable housing developments. Notwithstanding the aforementioned, the City is a recent awardee of HOME ARP funds from HUD. Although the City has not yet allocated these funds to eligible activities, the City will look at potentially programming these funds for the potential acquisition of land(s) or property(ies) with the intent to construct, rehabilitate and/or convert into affordable housing or transitional/emergency shelter to qualified populations and low-income residences. The City plans to allocate these funds via a Substantial Amendment to the City’s 2021-2022 Annual Action Plan.
Discussion
During July 2022 and June 2023, the City will rely on other public and private funding, including but not limited to:
• Low-Income Housing Tax Credits
• Project-based Section 8 certificates
• Project financing at favorable interest rates from local lenders • Private contributions to local CHDOs
• Private market real estate investments
• Market rate housing that subsidizes affordable units on the same development site to enhance the availability, affordability, and sustainability of affordable housing within the community.
City of Lancaster - 39 - 2022 Annual Action Plan
Annual Goals and Objectives
AP-20 Annual Goals and Objectives
Goals Summary Information
Sort
Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator
1 Increase the Supply
of Affordable
Housing
2022 2023 Affordable
Housing
City Wide Affordable Housing HOME:
$101,420
Other: 1
2 Improve and
Expand Facilities
and Infrastructure
2022 2023 Non-Housing
Community
Development
City Wide/
Eligible Census
Tracts
Facilities and
Infrastructure
CDBG:
$1,021,944
Public Facility or
Infrastructure Activities other
than Low/Moderate Income
Housing Benefit: 27,030
Persons Assisted
Other: 2
3 Provide Supportive
Human Services
2022 2023 Homeless
Non-Homeless
Special Needs
City Wide Supportive Human
Services
CDBG:
$235,833
Public service activities other
than Low/Moderate Income
Housing Benefit: 225
Persons Assisted
Homeless Person Overnight
Shelter: 60 Persons Assisted
4 Planning and
Administration
2022 2023 Non-Housing
Community
Development
City Wide Planning and
Administration
CDBG:
$274,444
HOME:
$67,613
Other: 2
5 Fair Housing 2022 2023 Homeless
Non-Homeless
Special Needs
Citywide Supportive Human
Services
CDBG:
$40,000
Public service activities other
than Low/Moderate Income
Housing Benefit: 300
Persons Assisted
6 Promote
Homeownership
Opportunities
2022 2023 Affordable
Housing
Citywide Affordable Housing HOME:
$507,099
Direct Financial Assistance to
Homebuyers – 5 households
assisted
Table 7 – Goals Summary
City of Lancaster - 40 - 2022 Annual Action Plan
Goal Descriptions
1 Goal Name Increase the Supply of Affordable Housing
Goal
Description
The City will increase its supply of affordable housing for low - and moderate-income residents through new construction.
2 Goal Name Improve and Expand Facilities and Infrastructure Goal
Description
Through various capital improvement projects, the City will improve and expand parks and recreation facilities that benefit low - and moderate-income neighborhoods and residents. The City will also improve and expand ADA access for persons with disabilities.
3 Goal Name Provide Supportive Human Services
Goal
Description
Improve supportive human services for low - and moderate-income persons in the following areas of concentration service: Homeless, Youth, Legal, Senior, Disabled, Health and Mental/Health, Transportation, Childcare, Victims of Domestic Violence, Substance Abuse, Neglected/Abused Children, HIV/AIDS, and Anti-Crime. 4 Goal Name Planning and Administration
Goal
Description
Plan and administer expenditure of HOME and CDBG funds. 5 Goal Name Fair Housing Services
Goal
Description
Affirmatively further fair housing choice through the provision of fair housing education, counseling, anti-discrimination and landlord-tenant mediation services. 6 Goal Name Promote Homeownership Opportunities
Goal
Description
Provide mortgage assistance to create affordable homeownership opportunities for low- and moderate-income households.
Estimate the number of extremely low-income, low-income, and moderate-income families to whom the jurisdiction will provide affordable housing as defined by HOME 91.315(b)(2) In accordance with the City’s goal to Promote Homeownership Opportunities, the City anticipates serving five (5) extremely-low- or low-income households with financial assistance towards purchasing their home.
HOME-assisted units shall meet the requirements of 24 CFR 92.254.
City of Lancaster - 41 - 2022 Annual Action Plan
AP-35 Projects – 91.220(d)
Introduction
During the 2022-2023 program year, the City will receive $1,572,221 in CDBG funds and $676,132 in HOME funds for FY 2022. To address the high priority needs identified in the Strategic Plan to the Consolidated Plan, the City will invest funds in projects that will increase the supply of affordable housing, preserve affordable housing, promote homeownership of affordable housing, provide fair housing services, provide public services and improve public facilities and infrastructure for low -income residents. Together, these projects will address the housing, community and economic development needs of the City’s residents - particularly those residents residing in the low- and moderate-income areas.
Projects
# Project Name
1 Increase the Supply of Affordable Housing
2 Improve and Expand Facilities and Infrastructure
3 Provide Supportive Human Services
4 Planning and Administration
5 Fair Housing
6 Promote Homeownership Opportunities
Table 8 - Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs Based on the Strategic Plan, the City is allocating 100 percent of its CDBG funds (excluding Section 108 Loan Repayments and administration) and HOME funds (excluding HOME administration) for program year 2022 to projects and activities that benefit low- and moderate-income people. Due to the nature of the projects and activities to be undertaken, investments in all projects concerning Pub lic Facilities and Infrastructure Improvements will be concentrated in eligible Census Tracts/Block Groups benefitting low- and moderate-income limited clientele, whereas public service and affordable housing activities will be available citywide.
The primary obstacles to meeting the underserved needs of low- and moderate-income people include lack of funding from federal, state and other local sources, the high cost of housing that is not affordable to low - income people and the lack of availability of home improvement financing in the private lending industry. In addition, cities across California are grappling with ramifications of Assembly Bill 1X26, which, in conjunction with a December 2011 California Supreme Court decision, eliminated RDAs and the associated diversion of property tax increment revenue to RDAs (known as tax increment or redevelopment funds). Redevelopment funds have represented one of the largest funding sources for affordable housing in California (redevelopment law required that 20 per cent of the funds must be spent for affordable housing) and were City of Lancaster - 42 - 2022 Annual Action Plan
utilized to revitalize blighted areas and foster economic development in redevelopment project areas.
To address these obstacles, the City is investing CDBG and HOME funds through the 2022 Ac tion Plan in projects that will be used to increase the supply of affordable housing, preserve affordable housing, promote homeownership, furthering fair housing, provide for public facilities and infrastructure improvements, and provide public services to low- and moderate-income residents.
City of Lancaster - 43 - 2022 Annual Action Plan
AP-38 Project Summary
Project Summary Information
1 Project Name
Increase the Supply of Affordable Housing
Target Area
Citywide
Goals Supported
Affordable Housing
Needs Addressed
Affordable Housing
Funding
HOME: $101,420
Description The City will increase its supply of affordable housing for low - and moderate- income residents through new construction.
Target Date
06/30/2023
Estimate the
number and type of
families that will
benefit from the
proposed activities
Other - 1
Location
Description
Citywide
Planned Activities CHDO Set Aside (Other – 1) - $101,420: The City will conduct a public hearing to amend the Action Plan once a suitable project is identified.
City of Lancaster - 44 - 2022 Annual Action Plan
2 Project Name Improve and Expand Facilities and Infrastructure Target Area Citywide/Eligible Census Tracts
Goals Supported Non-Housing Community Development
Needs Addressed Facilities and Infrastructure
Funding CDBG: $1,021,944
Description Through various capital improvement projects, the City will improve and expand parks and recreation facilities that benefit low - and moderate -income neighborhoods and residents. The City will also improve and expand ADA access for persons with disabilities.
Target Date 06/30/2023
Estimate the
number and type of
families that will
benefit from the
proposed activities
27,030 persons assisted
Other - 2
Location
Description
Activities will be conducted in areas that qualify as low- or moderate – income areas or otherwise presumed to benefit low – or moderate – income persons.
Planned Activities WDACS/Antelope Valley Senior Center – Wellness Center (3,500 persons) - $26,099: Funds will be used to renovate two (2) ind oor and one (1) outdoor spaces for seniors to exercise, socialize, eat, learn new hobbies and take educational classes.
Mariposa Park Improvements Project (23,230 persons assisted) - $600,000:
The City of Lancaster's ADA Transitional Plan identifies sever al ADA improvements for Mariposa park with a central component of making the area around the playground equipment ADA accessible.
Penny Lane Centers – Drop-In Center Kitchen (300 persons) - $186,658: Funds will be used to support the build -out of a comme rcial kitchen at the agency’s Drop-In Center for Transitional Aged Youth (TAY).
Section 108 Loan Repayment – Children’s Center (Other – 1) - $106,118: Funds will be used to repay a loan that was used to construct a 14,445 square foot child abuse center within the City.
Section 108 Loan Repayment – Mental Health America (Other – 1) - $103,069:
Funds will be used to repay a loan that was used to acquire property for the new site of the Antelope Valley Mental Health Association within the City.
City of Lancaster - 45 - 2022 Annual Action Plan
3 Project Name
Provide Supportive Human Services
Target Area
Citywide
Goals Supported
Homeless/Non-Homeless/Special Needs
Needs Addressed
Supportive Human Services
Funding
CDBG: $235,833
Description Improve supportive human services for low - and moderate-income persons in the following areas of concentration service: Homeless, Youth, Legal, Senior, Disabled, Health and Mental/Health, Transportation, Childcare, Vic tims of Domestic Violence, Substance Abuse, Neglected/Abused Children, HIV/AIDS, and Anti-Crime.
Target Date
06/30/2023
Estimate the
number and type of
families that will
benefit from the
proposed activities
285 persons assisted
Location
Description
Citywide
Planned Activities Antelope Valley Boys & Girls Club – After School Recreation Programming (175 persons) - $20,000: The program will provide low -income youths with a broad range of programs and activities in five (5) core areas (Character and Leadership Development; Education and Career Development; Health and Life Skills; The Arts; and Sports, Fitness and Recreation).
The People Concern – Kensington Campus Interim Housing Program (60 persons) - $116,800: The program will provide for interim housing to people experiencing homelessness.
Lost Angels Children’s Project – Lost Angels Workforce Development Program (50 persons) - $99,033: The program will provide vocational training classes in classic car restoration social enterprise. Participants will learn welding, fabrication, bodywork, paint & prep, engine assembly, electrical, and composites.
City of Lancaster - 46 - 2022 Annual Action Plan
4 Project Name
Planning and Administration
Target Area
Citywide
Goals Supported
Planning and Administration
Needs Addressed
Non-Housing Community Development
Funding
CDBG: $274,444
HOME: $67,613
Description
Plan and administer expenditure of HOME and CDBG funds.
Target Date
06/30/2023
Estimate the
number and type of
families that will
benefit from the
proposed activities
Other - 2
Location
Description
Citywide
Planned Activities
CDBG Administration (Other -1) - $274,444
HOME Administration (Other – 1) - $67,613
City of Lancaster - 47 - 2022 Annual Action Plan
5 Project Name
Fair Housing Services
Target Area
Citywide
Goals Supported
Homeless/Non-Homeless/Special Needs
Needs Addressed
Supportive Human Services
Funding
CDBG: $40,000
Description
Affirmatively further fair housing choice through the provision of fair housing education, counseling, anti-discrimination and landlord -tenant mediation services.
Target Date
06/30/2023
Estimate the
number and type of
families that will
benefit from the
proposed activities
300 persons
Location
Description
Citywide
Planned Activities Southern California Housing Rights Center – Fair Housing Services (300 persons) - $40,000: The program will fulfill the HUD regulatory mandate to affirmatively further fair housing choice through the provision of fair housing education, counseling, anti -discrimination and landlord -tenant mediation services.
City of Lancaster - 48 - 2022 Annual Action Plan
6 Project Name
Promote Homeownership Opportunities
Target Area
Citywide
Goals Supported
Affordable Housing
Needs Addressed
Affordable Housing
Funding
HOME: 507,099
Description
Provide mortgage assistance to create affordable homeownership opportunities for low- and moderate-income households.
Target Date
06/30/2023
Estimate the
number and type of
families that will
benefit from the
proposed activities
5 households assisted
Location
Description
Citywide
Planned Activities
Homebuyer Assistance Program (5 households) - $507,099: The program will provide income eligible homebuyers with financial assistance towards purchasing their home.
City of Lancaster - 49 - 2022 Annual Action Plan
AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the en titlement (including areas of low-income and minority concentration) where assistance will be directed
The city has not established targeted neighborhoods for investment of HOME and CDBG funds. The geographic distribution of Lancaster’s proposed projects for FY 2022-2023 are as follows:
• Supportive services are available citywide to low- and moderate-income residents, homeless persons, and persons with special needs.
• Park improvements, projects and ADA Transitional Plan Implementation will assist persons citywide. However, parks identified for improvements are mostly located in eligible Census Tract/Block Groups in which 51% of the population is low- and moderate-income. • Fair housing services are available citywide.
• Affordable Homeownership Assistance is provided citywide.
Geographic Distribution
Target Area Percentage of Funds
Citywide 73%
CDBG Eligible Census Tracts 27%
Table 9 - Geographic Distribution
Rationale for the priorities for allocating investments geographically The priority needs identified in the City’s FY 2020 – FY 2024 Consolidated Plan form the basis for allocating investments geographically within the jurisdiction during FY 2022. The established priorities are:
High Priority
• Provide Decent and Affordable Housing
• Improve and Expand Facilities and Infrastructure
• Provide Supportive Human Services
• Planning and Administration
Discussion
The City is allocating 100 percent of its non-administrative CDBG funds for program year 202 2-2023 to projects and activities that benefit low- and moderate-income people throughout the City.
City of Lancaster - 50 - 2022 Annual Action Plan
Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
Based on evaluation of 2011-2015 ACS and CHAS data, there is a high need for housing units affordable for low-income households and those severely cost burdened renters. Additionally, preservation of the physical and functional integrity of existing housing units occupied by low-and moderate-income households is a cost- effective way to invest limited resources to retain existing housing units that are already affordable to low - and moderate-income households in the community. Addressing substandard housing conditions through housing preservation activities provide that all economic segments of the community have the means to ensure that their property meets local standards and that all City residents have the opportunity to live in decent housing. For this reason, the City has placed a high priority on improving and increasing the supply of affordable housing during the 2020 -2024 Five -Year Consolidated Plan period through housing preservation and homeownership opportunities. During the 2022 -2023 program year, the City will invest $507,099 in HOME funds to provide eligible households with financial assistance in purchasing their home.
Through the City’s Homebuyer Assistance Program, the City anticipates assisting approximately 5 households. Although the City did not allocate funds towards housing preservation type programs, the City does anticipate rolling Neighborhood Stabilization Program (NSP) program income via a Substantial Amendment to the Action Plan to allocate funds to its Mobile Home Rehabilitation Program which will assist existing homeowners in rehabilitating necessary health and safety concerns as well as code violations.
One Year Goals for the Number of Households to be Supported Homeless 0
Non-Homeless 5
Special-Needs 0
Total 5
Table 12 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported Through Rental Assistance 0
The Production of New Units 0
Rehab of Existing Units 0
Acquisition of Existing Units 5
Total 5
Table 13 - One Year Goals for Affordable Housing by Support Type
City of Lancaster - 51 - 2022 Annual Action Plan
Discussion
The City has identified a high priority need to increase the supply of affordable housing through housing preservation and homeownership assistance. During the 2022 -2023 Program Year, the City invest HOME funds under its Homebuyer Assistance Program to provide financial assistance to five (5) eligible extremely- low income households, low-income households, and moderate-income households.
City of Lancaster - 52 - 2022 Annual Action Plan
AP-60 Public Housing – 91.220(h)
Introduction
The Lancaster Housing Authority (LHA) was formed under State of California Housing Authority Law to actively improve existing neighborhoods and develop affordable housing opportunities using local, state and federal resources. The LHA does not administer Section 8 and does not own HUD Public Housing; however, the City is within the service area of the Los Angeles County Development Authority (LACDA) for the purposes of Section 8 and Public Housing.
The main difference between Section 8 and Public Housing is ownership and management of the properties.
For Section 8, private landlords own the properties and accept Section 8 vouchers on behalf of their renters from the government. For Public Housing, the government owns and operates the properties. According to LACDA’s Annual Plan for Fiscal Year 2022-2023, the Section 8 and Public Housing programs currently have a waiting list of 37,228 applicants and 24,685 applicants, respectively. The amount of time spent on the waiting list for each program varies but can be as long as 14 years for Section 8 and five (5) years for Public Housing.
As of the 2022-2023 program year, the LACDA administers 1,745 Project-Based Vouchers (PBV) across 48 properties. The LACDA has 1,733 additional PBVs in the pipeline across 35 projects, which are expected to become operational over the next 3 years. Approximately 694 of these PBVs were committed in 2021 through NOFA 26-A, and outside of the NOFA by way of a previous competition that allows the LACDA to issue PBVs in accordance with 24 CFR 983.51.
Actions planned during the next year to address the needs to public housing LACDA will continue providing housing and public services to existing residents of the City. LACDA takes in feedback of residents collected through resident surveys distributed throughout the City to improve services.
During the 2022-2023 program year, LACDA is proposing the following major changes to the Public Housing and Section 8 Tenant-Based Program:
Public Housing
• Expansion of Waiting List Jurisdiction
• Conduct Annual Reexaminations Online Only
• Transitional Aged Youth (TAY) Preference
• Additions to the Lease
City of Lancaster - 53 - 2022 Annual Action Plan
Section 8
• Interims for Income Increases
• Setting and Applying Payment Standards
• Rent Reasonableness Determinations
• Allowable Moves for New Applicants
• Conducting Annual Reexaminations Online Only
• Family Unification Program
• Implementation of the Housing Choice Voucher Mobility Demonstration Program In addition, converting tenant -based vouchers to PBVs is necessary to increase the stock of affordable housing for special needs populations who face increasing barriers trying to find housing in the area’s private rental market. For this reason, LACDA intends to undertake the following:
Project Based Vouchers
• The LACDA is planning to convert up to 400 additional tenant -based vouchers to PBVs through NOFA 27 -A that is scheduled to be released in mid -December of 2021, to projects that were previously selecte d through a competitive process, which allows the LACDA to commit PBVs in accordance with 24 CFR 983.51.
• The LACDA has awarded 579 additional PBVs through NOFA 26 -A to projects located in unincorporated Los Angeles, Altadena, Huntington Park, Cudahy, Lancaster, and Montebello. 100% of these projects are dedicated to housing the homeless, with subpopulations consisting of persons with mental illness, veterans, seniors, and victims of domestic violence. • The LACDA has committed 115 project-based Veterans Affairs Supportive Housing (VASH) vouchers to 2 housing developments at the VA Medical Center located in West Los Angeles.
Rental Assistance Demonstration (RAD)
• LACDA is in the process of analyzing options for converting Public Housing to RAD in order to leverage assets to maintain sites. Currently, the LACDA is reviewing the RAD conversion at a site - based level and preparing to meet with residents for the proposed RAD conversion.
Actions to encourage public housing residents to become more involved in manageme nt and participate in homeownership
LACDA actively encourages residents to be involved in the organization through resident councils and active participation in housing authority decisions via surveys and other forms of engagement. Resident surveys were distributed with translation services available on request. Community meetings in low -income areas were hosted with copies of the Consolidated Plan draft being available in these areas. A public hearing is conducted to accept public comments on the draft pla n before its approval and submittal to HUD. Grant funding is administered to increase housing availability and accessibility to residents to encourage greater City of Lancaster - 54 - 2022 Annual Action Plan
participation in homeownership. LACDA also maintains quarterly newsletters for Section 8 tenants, public housing residents, and Section 8 property owners.
Unfortunately, during the 2022-2023 program year, LACDA’s Section 8 or Public Housing programs do not offer homeownership programs. However, LACDA promotes its Family Self-Sufficiency (FSS) Program which encourages families to pursue goals of furthering their education, training and employability in an effort to secure funds for a down payment towards the purchase of their new home. Despite a global pandemic, LACDA was able to graduate 31 FSS partici pants, with an average escrow account disbursement of $11,988.50. To cover the gap in financial assistance, the City will be allocating $507,099 in HOME funds during the 2022-2023 program year to provide eligible households with financial assistance in pur chasing their home. Through the City’s Homebuyer Assistance Program, the City anticipates assisting approximately 5 households.
If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
Not applicable. LACDA is considered a High Performing PHA.
Discussion
LACDA is well -positioned to continue providing Section 8 Housing Choice Vouchers in the City and throughout Los Angeles County. Through the City’s Homebuyer Assistance Program, the City is optimistic that it will be able to assist five (5) households with purchasing their new home during the 2022-2023 program year.
City of Lancaster - 55 - 2022 Annual Action Plan
AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
The City’s homeless population is similar to most homeless in the country in that they did not arrive in their current situation as a result of a single characteristic or life event. The majority of homeless have, or have had, risk factors that led to their current situation and which may contribute to chronic homelessness. The following are some of the potential causes of homelessness that have been identified by the Salvation Army, the National Coalition for the Homeless, and the California Homelessness Task Force: poverty (influenced by the lack of employment opportunities and decline in public assistance), unemployment , lack of affordable housing, poor physical or mental health, drug and alcohol abuse, gambling addiction, family and relationship breakdown, domestic violence, physical and/or sexual abuse and prison release.
For these reasons, the City will invest CDBG funds during the 2022-2023 program year to address this high priority need of providing supportive human services for those experiencing homelessness or at -risk of experiencing homelessness.
Describe the jurisdictions one -year goals and actions for reducing and ending homelessness including reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
Preventing and ending homelessness is a HUD priority addressed nationally through coordination of regional strategies carried out locally by government agencies and a wide variety of community-based and faith-based groups. The City supports the efforts of the Los Angeles Homeless Service Authority (LAHSA), County Continuum of Care (CoC), and its member organizations that address homelessness throughout the County and more specifically in Service Planning Area (SPA) 1. In alignment with this strategy, the City will use CDBG funds to support local service providers as well as City run programs to prevent homelessness and to expand the supply of affordable housing in the City for low-and moderate-income residents.
According to the Lancaster Community Homelessness Plan, dated August 2018, the City identified the following series of goals, actions, and priority needs related to the City’s efforts to combat homelessness:
• The addition of several personnel positions to effectively execute the plan. The positions include but are not limited to the following: Homeless Liaison, Community Ambassadors, Public Safety Specialist/Code Enforc ement Officer, Metrolink Public Safety Specialist, Marketing Services/Resource Connect(s), Volunteer Coordinator, and AmeriCorps Volunteers. • Goal #1 – Prevention – Provide activities or programs designed to prevent the incidence of homelessness and to assist those who are at risk of homelessness in improving their chances of not becoming homeless.
• Goal #2 – Housing - Provide a variety of suitable housing options to allow unsheltered homeless and sheltered homeless persons to transition to permanent housing. • Goal #3 – Engagement - Engage with the homeless community, service provider community, and the City of Lancaster - 56 - 2022 Annual Action Plan
community at large on the issue of homelessness. Provide easy access to information and opportunities to access services and volunteer. Provide education about the issue of homelessness in Lancaster.
• Goal #4 – Public Safety - Ensure Lancaster is a safe and clean place that is welcoming to residents and visitors.
• Goal #5 – Data-Driven Responsiveness - Implement solutions that are data-driven and/or have been tested through proven success.
• Goal #6 – Community Vitality - Reclaim and increase the use and enjoyment of public spaces by the entire community. Address the needs of all community members, including the homeless. • Goal #7 – Regional Collaboration - Collaborate with regional partners, as well as advocating for solutions related to homelessness at a state and regional level.
The address the needs of the City’s unsheltered homeless population, the City awarded $116,800 in CDBG funds towards its Kensington Campus I nterim Housing activity. The activity proposes to provide shelter for homeless individuals by providing funding for five (5) City beds throughout the year at the campus’ 14-acre therapeutic facility located at Avenue I and 32nd Street West in Lancaster. The campus is designed to house, employ, and rehabilitate the local homeless population, especially those unsheltered. Kensington offers both interim housing and permanent supportive housing, along with complete wraparound services, provided by The People Concern, including case management, wellness programs, medical and mental health care.
Addressing the emergency shelter and transitional housing needs of homeless persons Through the Homeless Initiative, the County and CoC are working to strengthen and increase the availability of housing and services at all levels. The ultimate solution to ending homelessness is transitional to permanent housing closely aligned with supportive services that ensure housing stability can be maintained. However, because the demand for affordable housing far outpaces the region’s supply, the CoC continues to rely on its emergency and bridge housing system in order to address the immediate needs of Los Angeles County’s homeless population. The CoC is collaborating with a range of non-profit and community organizations to fill the gap, including providing funding for a local winter shelter. Additional funding has been infused in the community through Project Roomkey to provide families with emergency motel vouchers and provide households with rapid rehousing assistance.
Los Angeles County has implemented policy and program changes aimed at ensuring homeless persons in Los Angeles County are rapidly housed and offered an appropriate level of support services to meet their circumstances and keep them stably housed. This increase in rapid rehousing and permanent supportive housing for the most vulnerable populations is attributed to Los Angeles County homeless service providers re-tooling their programs and shifting their focus to moving people quickly into permanent supportive housing throughout the County.
During the 2022 -2023 program year, the City awarded $116,800 in CDBG funds towards its Kensington Campus Interim Housing activity. The activity proposes to provide shelter for homeless individuals by providing funding for five (5) City beds throughout the year at the campus’ 14-acre therapeutic facility located City of Lancaster - 57 - 2022 Annual Action Plan
at Avenue I and 32nd Street West in Lancaster. The campus is designed to house, employ, and rehabilitate the local homeless population, especially those unsheltered. The facility is the largest fully integrated community of its kind in the Antelope Valley. At full occupancy, the facility offers 156 interim housing beds and 150 permanent supportive housing apar tments. Kensington’s interim housing, permanent supportive housing, and complete wraparound services, provided by The People Concern, include case management, wellness programs, medical and mental health care. The City believes that this campus is a critical resource for its most vulnerable neighbors as they rebuild their lives and find stability. The efforts of the City in conjunction with those efforts of LAHSA can significantly help reduce homelessness and increase the quality of life of the City’s residents.
Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
The homeless plan goals and efforts included in the foregoing paragraphs help homeless persons, especially chronically homeless individuals and families, families with children, veterans, and unaccompanied youth make the transition to permanent housing and independent living as proven by the Kensington Campus’ first 100 residents having moved into homes of their very own.
The City’s goals are consistent with HUD’s goal to shorten the period that individuals and families experience homelessness and to facilitate access for homeless individuals and families to affordable housing units. The City’s goals are aligned with HUD’s goal to prevent individuals and families who were recently homeless from becoming homeless again.
Helping low-income individuals and famil ies avoid becoming homeless, especially extremely low - income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs
An individual or family is considered to be at-risk of becoming homeless if they experience extreme difficulty maintaining their housing and has no reasonable alternatives for obtaining subsequent housing.
Homelessness often results from a complex set of circumstances that require people to choose between food, shelter and other basic needs. Examples of common circumstances that can cause homelessness include eviction, loss of income, insufficient income, disability, increase in the cost of housing, discharge from an institution, irreparable damage or deter ioration to housing, and fleeing from family violence. The “Approved Strategies to Combat Homelessness” published by L.A. County on February 9, 2016 (Homeless City of Lancaster - 58 - 2022 Annual Action Plan
Initiative) are consistent with State and Federal initiatives for ending homelessness and consist s of 47 strategies arranged by six guiding principles including A) Prevent Homelessness, B) Subsidize Housing, C) Increase Income, D) Provide Case Management and Services, E) Create a Coordinated System, and F) Increase Affordable/Homeless Housing. The Homeless Initiative represents a commitment by all stakeholders throughout the County to prevent and end homelessness. Through implementation of the collaborative goals of the Lancaster Community Homeless Plan and implementation of best practices developed th rough the CoC, the community will be able to serve people discharged from publicly funded institutions or systems of care such as health care facilities or correction programs. Full implementation of the Coordinated Entry System will reduce the number of people discharged from publicly funded institutions into homelessness.
Discussion
See discussions above.
City of Lancaster - 59 - 2022 Annual Action Plan
AP-75 Barriers to Affordable Housing
Introduction
A barrier to affordable housing is a public policy or nongovernmental condition that constrains the development or rehabilitation of affordable housing, such as land use controls, property taxes, state prevailing wage requirements, environmental protection, cost of land and availability of monetary resources. Barriers to affordable housing are distinguished from impediments to fair housing choice in the sense that barriers are lawful and impediments to fair housing choice are usually unlawful.
The primary barriers to affordable housing in the City are housing affordability an d the lack of monetary resources necessary to develop and sustain affordable housing, especially for those extremely low -income households and large families. The two barriers are related in the sense that demand for affordable housing exceeds the supply and insufficient resources are available to increase the supply of affordable housing to meet demand. The availability of funding for affordable housing has also been severely affected by the dissolution of Redevelopment in the State of California. The AB1x 26 legislation and subsequent AB 1484 legislation initially prevented the City from using approximately $6 million dollars in Redevelopment low/mod housing funds. Other housing funds, including four percent and nine percent Low Income Housing Tax Credits, HOME, PLHA, CalHOME, and the Multifamily Housing Program are not sufficient to finance an affordable housing project alone.
Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment The following actions will work to remove barriers to affordable housing:
• The City continues to follow the Housing Element of the General Plan. • Provide timely review of discretionary and non -discretionary residential development requests, with fees sufficiently only to cover the actual costs (direct and overhead) incurred by the City. • Periodically, evaluate land development processing procedures to ensure that project review is accomplished in the minimum time necessary to implement the General Plan and ensure protection of public health, safety, and welfare.
• As part of the regular proceedings of the Development Review Committee (DRC), make residential developers aware of City zoning ordinance provisions that provide up to a 35 percent density bonus, or equivalent financial incentive, to residential developers who a gree to make a corresponding percentage of the units within the project affordable to households, per State density bonus law. The City’s zoning ordinance will be revised to reflect the latest changes in density bonus law. • Leverage direct funding resources of the City and Lancaster Housing Authority with State and Federal funding sources to address the City’s objectives contained in Table H -1 “Quantified Objectives” of the Housing Element in order to facilitate the provision of single and multiple family dw elling units City of Lancaster - 60 - 2022 Annual Action Plan
available to very low, low, and moderate-income households. • Encourage private sector development of affordable housing by subsidizing development impact fees in exchange for long term affordable restrictions.
• Identify and acquire distressed re sidential projects (e.g., foreclosures, bankruptcies) and prepare them for sale or rent at affordable housing costs. This is an ongoing effort by the Housing Department. • Periodically review the General Plan and zoning map to ensure that locations for affor dable housing are encouraged in areas throughout the City, including locations within reasonable proximity to public facilities, transportation, schools, parks, and other daily services.
Implement the following strategies to provide housing opportunities s pecifically for extremely low -income households: Assist developers in seeking specialized funding sources for extremely low -income housing units; Identify and recruit developers (for-profit and non-profit) for the development of extremely low-income housing units; Re -evaluate the city’s development review process for higher density, mixed use, second dwelling unit, and other supportive housing to ensure development feasibility; and, Encourage other alternative housing options, including SRO (single room occ upancy) housing units to meet the needs of varying living situations.
Discussion
To address housing affordability and the lack of monetary resources for affordable housing, during the 2022- 2023 program year, the City will investment HOME funds to provide h omeownership assistance to five (5) households. Although the City no longer has access to Redevelopment Housing Set -Aside funds, the City will continue to leverage its CDBG and HOME funds to attract private and other available public resources.
This strategy will increase the supply of affordable housing and preserve existing affordable housing in the City.
City of Lancaster - 61 - 2022 Annual Action Plan
AP-85 Other Actions – 91.220(k)
Introduction
Priority needs established in the FY 2020 – FY 2024 Five-Year Consolidated Plan, which forms the basis for establishing objectives and outcomes in the FY 2022 One-Year Action Plan, are as follows:
• Provide Decent and Affordable Housing
• Improve and Expand Facilities and Infrastructure
• Provide Supportive Human Services
• Planning and Administration
Actions planned to address obstacles to meeting underserved needs The primary obstacles to meeting the underserved needs of low- and moderate-income people include lack of funding from federal, state and other local sources, the high cost of housing that is not af fordable to low- income people and the lack of availability of home improvement financing in the private lending industry. The City will continue to use CDBG funding to support public service agencies that address the special needs of the underserved, inclu ding the homeless, those at risk of homelessness, youth, seniors, female headed households, and the disabled. The City also proactively seeks additional resources to better meet the underserved needs. In addition, the City will continue to utilize HOME fun ds to preserve and expand its housing programs to meet the growing need for affordable housing.
Actions planned to foster and maintain affordable housing Increasing, improving, and maintaining affordable housing is identified as a High Priority for the City. The City will also continue to encourage developers, nonprofit organizations, and other interested parties to develop new affordable units and will support applications for development funds through the California Tax Credit Allocation Committee (CTCAC) and the State of California. In addition, the City allocated HOME funds to provide homeownership assistance to five (5) households.
Actions planned to reduce lead-based paint hazards
The Residential Lead Based Paint Hazard Reduction Act of 1992 (Title X) emphasizes prevention of childhood lead poisoning through housing -based approaches. The City has a need for lead hazard free housing and continues to work to reduce lead-based paint (LBP) hazards to comply with 24 CFR Part 35. The number of units considered to contain lead-based paint is relatively low. Having the information available to warn people about the need to maintain buildings, which may contain LBP, as well as other programs to encourage home maintenance, helps to aid in mitigating LBP hazards in the City.
The City will also encourage landowners to correct substandard conditions to minimize LBP hazards, especially owners of units where children ages six (6) and under live. Due to the average age of the City's City of Lancaster - 62 - 2022 Annual Action Plan
housing, homes containing lead-based paint are not believed to be a significant problem. However, the City will continue to evaluate and reduce lead-based paint hazards through the following actions and activities:
• Providing information to purchasers, owners, landlords, renters, and various pr operty management agencies regarding the dangers of lead-based paint and appropriate mitigation strategies, as part of the City's Homebuyer Assistance Program, Mobile Home Rehabilitation Assistance Programs (funded with prior year funds), and fair housing contract.
• Providing written information through one-on-one contact with contractors, building inspectors, code enforcement officers, and the general public.
Funding will not be provided until it is determined properties are free of LBP hazards.
Actions planned to reduce the number of poverty-level families While the City has no control over the majority of the factors affecting poverty, it may be able to assist those living below the poverty line. The City supports other governmental, private, and nonprofit agencies involved in providing services to low- and moderate-income residents and coordinates efforts with these groups where possible to allow for more efficient delivery of services.
During the 2022-2023 program year, the City will continue to implement its strategy to help impoverished families achieve economic independence and self-sufficiency. City residents may utilize existing County job training and social service programs to increase employment marketability, household income and housing options. The City will allocate 15 percent of CDBG funds to public service agencies that offer supportive services in the fight against poverty.
Improved employment opportunities are important in reducing the number of people living in poverty. To help improve resident's employability through training, therefore increasing the number of higher paying local jobs, referrals are made to Lancaster WorkForce Center that provides job search services such as workshops, computer classes, phones, fax, computers with internet access, job leads, newspapers, and a resource for job seekers aged 18 and above.
In addition to these local efforts, mainstream state and federal resources also contribute to reducing the number of individuals and families in poverty. Federal programs such as the Earned Income Tax Credit and Head Start provide pathways out of poverty for families who are ready to pursue employment and educational opportunities. Additionally in California, the primary programs that assist families in poverty are CalWORKS, CalFresh (formerly food stamps) and Medi -Cal. Together, these programs provide individuals and families with employment assistance, subsidy for food, medical care, childcare and cash payments to meet basic needs such as housing, nutrition and transportation. Other services are available to assist persons suffering from substance abuse, domestic violence and mental illness.
Actions planned to develop institutional structure
The City of Lancaster works with a wide range of public and community social service agencies to meet and City of Lancaster - 63 - 2022 Annual Action Plan
address the various needs of the community. In FY 2022, City staff will continue to collaborate internally, as well as with local non-profit advocacy groups and other County, State and Federal organizations.
In addition, the City as a whole, and each department within it, is committed to working with businesses to align common interests and achieve common goals. During the 2022 -2023 program year, the City’s Real Estate and Economic Development Manager and citywide staff will continue efforts to aid in the economic growth of the City by fostering and encouraging responsible economic development opportunities that result in: 1) a jobs/housing balance established through quality employment opportunities for reside nts; 2) an economic base through increased sales tax generation; and 3) economic wealth by attracting external monies to the local economy. Specifically, four targeted industries have been identified where there is a foundation of businesses in Lancaster c urrently and opportunities for growth. These industries include aerospace/aviation, healthcare, manufacturing, and film/entertainment. These business clusters offer a variety of high paying, high skilled jobs, which can be accessed either through traditional educational routes or through on the job training and apprenticeship programs.
Actions planned to enhance coordination between public and private housing and social service agencies The City of Lancaster's Housing Section manages all programs and functi ons related to the provision of affordable housing related projects. The Housing Division performs these functions in coordination with its Department of Development Services which includes an administration component and is comprised of Community Develop ment (including Planning), City Engineering, Capital Engineering, and Public Works Divisions. The HOME and CDBG programs are managed through the Housing Section and Finance and Information Technology Department , respectively, which allows for better commun ication and a more coordinated effort to address the issues affecting the low- and moderate-income residents of the City. It also supports the development of a clear and comprehensive affordable housing strategy that is consistently reflected in all affordable housing related documents, and a coordinated economic development strategy.
Actions that the City will undertake during the next year to enhance coordination between public and private housing, health, and social service agencies include:
• Working with the Los Angeles Homeless Service Agency (LAHSA) to provide homeless shelter and services.
• Coordination with LACDA to provide information about Section 8 Housing Choice Vouchers. • Coordinating with the County of Los Angeles Health Department, Childhood Lead Poisoning Prevention Program (CLPPP) to provide information about lead based paint hazards. • Funding a contract for fair housing services to provide fair housing and landlord/tenant complaint intake and mediation services to the residents of the City. • Following the City's adopted General Plan developed in collaboration with Los Angeles County. • Working with the Greater Antelope Valley Economic Alliance in an effort to address shared priorities such as transportation and air quality issues, large scale planni ng goals, and advocacy at regional, state, and federal levels.
• Consult with and invite the participation of a wide variety of agencies and organizations involved in City of Lancaster - 64 - 2022 Annual Action Plan
the delivery of housing and supportive services to low- and moderate-income residents in the City— particularly the low-and moderate- income areas.
Discussion
During the 2022-2023 program year, the City will invest CDBG and HOME resources to address obstacles to meeting underserved needs, foster and maintain affordable housing, reduce lead -based paint hazards, reduce the number of poverty -level families, de velop institutional structure and enhance coordination between public and private housing and social service agencies.
City of Lancaster - 65 - 2022 Annual Action Plan
Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction
In the implementation of programs and activities under the 2022-2023 Annual Action Plan, the City will follow all HUD regulations concerning the use of program income, forms of investment, overall low- and moderate- income benefit for the CDBG program and recapture requirements for the HOME program.
Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.
1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed $0
2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. $0
3. The amount of surplus funds from urban renewal settlements $0
4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan $0
5. The amount of income from float-funded activities $0 Total Program Income: $0
Other CDBG Requirements
1. The amount of urgent need activities $0
2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. The City will meet this requirement over the 2022-2023, 2023-2024 and 2024-2025 CDBG program years.
70%
City of Lancaster - 66 - 2022 Annual Action Plan
HOME Investment Partnership Program (HOME)
Reference 24 CFR 91.220(l)(2)
1. A description of other forms of investment being used beyond those identified in Section
92.205 is as follows:
The City does not use forms of investment other than what is included in § 92.205(b).
2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows:
During the 2022-2023 program year, the City will allocate HOME funds towards the City’s Homebu yer Assistance Program. This activity will provide the City the opportunity to provide financial assistance to eligible households in the purchasing of their home. The City’s Homebuyer Assistance Program will incorporate a recapture provision in accordance with § 92.254 (a)(5)(ii).
Housing that is for acquisition by a family must meet the affordability requirements of this paragraph. (1) The housing must be single family housing.
(2) The housing must be modest housing as follows:
(i) In the case of acquisit ion of newly constructed housing or standard housing, the housing has a purchase price for the type of single -family housing that does not exceed 95 percent of the median purchase price for the area, as described in paragraph (2)(iii) of this section. (ii) In the case of acquisition with rehabilitation, the housing has an estimated value after rehabilitation that does not exceed 95 percent of the median purchase price for the area, described in paragraph (a)(2)(iii) of this section.
(iii) If a participating jurisdiction intends to use HOME funds for homebuyer assistance or for the rehabilitation of owner -occupied single - family properties, the participating jurisdiction must use the HOME affordable homeownership limits provided by HUD for newly constructed housing and for existing housing. HUD will provide limits for affordable newly constructed housing based on 95 percent of the median purchase price for the area using Federal Housing Administration (FHA) single family mortgage program data for newly constru cted housing, with a minimum limit based on 95 percent of the U.S. median purchase price for new construction for nonmetropolitan areas. HUD will provide limits for affordable existing housing based on 95 percent of the median purchase price for the area using Federal FHA single family mortgage program data for existing housing data and other appropriate data that are available nation-wide for sales of existing housing, with a minimum limit based on 95 percent of the state- City of Lancaster - 67 - 2022 Annual Action Plan
wide nonmetropolitan area median purchase price using this data. (3) The housing must be acquired by a homebuyer whose household qualifies as a low -income household, and the housing must be the principal residence of the family throughout the period described in the Affordability Restriction Period table referenced below. In determining the income eligibility of the household, the participating jurisdiction must include the income of all persons living in the housing. The homebuyer must receive housing counseling.
As a condition of receiving HOME funds, the City requires the applicant to enter into a HOME Participation Agreement and Affordability Covenant Agreement that is recorded against the property and runs with the land. The Affordability Covenant Agreement contains a recapture restric tion stipulating that during the affordability period, if there is a property sale, transfer, or program default of the conditions of either the Promissory Note or the Affordable Housing Restriction, the City will provide for the recapture of HOME funds in accordance with the following:
1. Upon the occurrence of a sale or transfer, other than a City approved assumption, the entire amount of the HOME investment provided by the City loan will be due to the City, less any City approved principal reductions.
2. Upon the occurrence of a program default of the conditions of the promissory note, Affordable Housing Restriction, deed of trust, or Participation Agreement, the entire amount of the HOME investment provided by the City loan will be due to the City without any principal reductions.
3. Notwithstanding the preceding, in the event that the Net Proceeds resulting from a sale are not sufficient to provide for the full return of the Borrower’s investment inclusive of the original down payment and capital improvements per formed on the acquired property (subject to City verification and approval), then the Borrower shall be entitled to recover their original down payment amount and City approved capital improvement amounts before the City recapture of the HOME investment am ount (the City Loan).
For the purposes of this calculation, net proceeds shall mean the sales price minus the repayment of the Primary Loan undertaken to acquire the Property (other than HOME funds) and any closing costs. Capital improvements means those improvements legally made by Homeowner to the Property after the closing of Homeowner’s purchase of the Property, with a minimum cost of Five Thousand Dollars ($5,000) per item, and a useful remaining economic life of not less than five (5) years, as appr oved by the City and documented by invoices and receipts which the Homeowner certifies to be true and correct.
All recaptured funds will be used for HOME eligible activity(ies). These funds will be identified separately in the City’s accounting system by a unique Recaptured Revenue object number. Any recaptured funds will be used by the City before any additional HOME funds subject to the regulations found at 24 CFR
92.502 are drawn.
The City will provide for a reduction in the City loan amount principal, based on the Participant’s continuing compliance with all Program requirements as detailed within the recorded Affordable Housing City of Lancaster - 68 - 2022 Annual Action Plan
Restriction, Participation Agreement, promissory note, and deed of trust. No reduction will be available until the sixth (6 th) anniversary date of the promissory note. Beginning with the sixth (6 th) year through the fifteenth (15th) year, a reduction of the loan principal will be earned by the Participant for meeting all Program requirements from the day of property acquisition through the date of loan repayment. The annual loan principal reduction will be equal to ten percent (10%) o f the original principal loan amount, and the cumulative value of any loan reductions will only be credited at the time of loan repayment.
Should a default occur during the affordability period, the City shall have the right of first refusal to purchase the home from the homebuyer before foreclosure and may use additional HOME funds to acquire the housing in order to preserve the housing’s affordability. The purchase of the property shall be at the restricted sales price, less the amount of assistance originally provided by the City plus interest.
The restricted sales price is calculated using a formula that takes into account the purchase price, the change in consumer price index, and improvements made to the property.
Refinancing of the Program Loan shall be allowed when the proposed loan refinance amount does not exceed the then outstanding balance (plus refinancing and closing costs) of the existing Primary Loan.
An appraisal must be conducted to establish the market value of the property to ensure that the total outstanding loan obligations, inclusive of the City Loan do not exceed 95% of the property value at the time of the refinance. Cash-out refinancing is not allowed, however in the event the Participant refinances the Primary Loan, and the refinanc ing returns money to the homeowner, the homeowner must use the loan proceeds to pay down the City loan, thereby reducing the principal loan balance owed on the City loan.
Requests for subordination that do not conform to this policy shall be considered on a case-by-case basis. After subordination, the sum of all outstanding loans may not exceed the lower of either the HOME Maximum Purchase Price for existing homes in effect at the time of the refinance, or 95% of the property’s appraised market value. Subordination Requests shall be performed in conformance with the procedures detailed in the City Subordination Policy, acknowledged by the borrower via the First Mortgage Refinancing and Subordination Policy Acknowledgement and a formal request submitted to the City through the use of the City’s Request for Refinancing and Subordination Form.
3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows:
Please see narrative above.
Periods of affordability. The HOME-assisted housing must meet the affordability requirements for not less than the applicable period specified in the following table, beginning after project completion. The per City of Lancaster - 69 - 2022 Annual Action Plan
unit amount of HOME funds and the affordability period that they trigger are described in the table below:
Homeownership assistance HOME amount
per-unit Minimum period of affordability in years
Existing Housing per unit amount of HOME
Funds: Under $15,000 5
Existing Housing per unit amount of HOME
Funds: $15,000 to $40,000 10
Existing Housing per unit amount of HOME
Funds: Over $40,000 15
Acquisition of newly constructed housing 20
4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows:
The City does not intend to use HOME funds during the 2022 -2023 program year to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds.
APPENDIX A
Citizen Participation
LEGAL NOTICE
CITY OF LANCASTER
NOTICE OF PUBLIC HEARING AND 30-DAY REVIEW
AND COMMENT PERIOD FOR THE
DRAFT 2022–2023 ANNUAL ACTION PLAN
NOTICE IS HEREBY GIVEN that at its regular scheduled meeting to be held at 5:00 p.m. on Tuesday, May 3, 2022, in its chambers, located at 44933 Fern Avenue, Lancaster, the City Council will conduct a public hearing and accept public comments on the City’s Draft 2022-2023 Annual Action Plan (“Action Plan”).
PUBLIC COMMENT PERIOD: April 1, 2022 to
May 3, 2022
PLACE OF REVIEW: Lancaster City Hall
Finance and Information Technology Department
44933 Fern Avenue
Lancaster, CA 93534
DATE OF HEARING: Tuesday, May 3, 2022, 5:00 pm
PLACE OF HEARING: Council Chambers
Lancaster City Hall
44933 Fern Avenue
The Action Plan will be available for a 30-day public review and comment period from April 1, 2022, to May 3, 2022. Citizens wishing to submit written comments during the public review and comment period may mail them, postmarked no later than May 2, 2022, to the following:
City of Lancaster
Attention: Nike Noack, Senior Finance Manager
Finance and Information Technology Department
44933 Fern Avenue
Lancaster, California 93534
You may also email comments no later than 4:30 pm on May 3, 2022, to Ms. Noack at [email protected].
All interested persons are invited to review and comment on the Action Plan on the City’s website www.cityoflancasterca.org.
The City is an entitlement community that participates in the Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) Programs which require the submittal of a Five-Year Consolidated Plan as part of the City’s grant application to HUD. The plan establishes a framework of housing, community and economic development priorities for the City’s CDBG and HOME programs over the next five years. The Action Plan represents the third year of the City’s 2020 -2024 Five -Year Consolidated Plan. T he Action Plan will appropriate CDBG and HOME funds to specific programs and projects for the 2022 -2023 fiscal year. As of the date of this notice, HUD has not yet released the City’s 2022-2023 CDBG and HOME annual allocations. For this reason, HUD has advised the City to prepare its Action Plan utilizing the current year CDBG and HOME annual allocations of $1,572,221 and $676,132, respectively, to implement programs and projects that benefit low- and moderate-income residents.
In compliance with the Ame ricans with Disabilities Act, this meeting will be held at a location accessible to persons with disabilities; if you need special assistance to participate in this public meeting , please contact the City Clerk at (661)723 -6020. Telecommunication Device fo r the Deaf ( TDD) users may call the California TDD Relay Service at 1 -800-735-2922. Services such as American Sign Language interpreters, a reader during the meeting, auxiliary aids, large print copies of the agenda and/or translation assistance for non-English speakers are available upon reasonable and timely request. To ensure availability, you are advised to make your request at least 72 hours prior to the meeting/event you wish to attend. Due to difficulties in securing sign language interpreters, five or more nosiness days’ notice is strongly recommended. For additional information, please contact the City Clerk at (661)723-6020.
The City does not and shall not discriminate on the basis of race, color, religion (creed), gender, gender expression, age, national origin (ancestry), disability, marital status, sexual orientation, military status, or other protected class status in any of its activities or operations.
______________________________ DATED: March 25, 2022
ANDREA ALEXANDER
City Clerk
City of Lancaster
------------------------------------------------------------------------------------------------------------------------------ Published: Wednesday, March 30, 2022 - City of Lancaster website www.cityoflancasterca.org
Antelope Valley Press
AVISO DE AUDIENCIA PÚBLICA Y PERÍODO DE REVISIÓN Y
COMENTARIOS DE 30 DÍAS
AYUNTAMIETO DE LA CIUDAD DE LANCASTER
PLAN DE DESEMPEÑO ANUAL (2022-2023)
POR MEDIO DE LA PRESENTE SE NOTIFICA que en su reunion ordinaria porgramada , a las 5:00 p.m. el martes 3 de mayo de 2022, en su cámara, ubicada en 44933 Fern Avenue, Lancaster, el Concejo Municipal llevará a cabo una audiencia pública y aceptará comentarios públicos sobre el Plan de Desempeño Annual 2022-2023 de la Ciudad (“Plan de Desempeño”).
PERÍODO DE COMENTARIO PÚBLICO: 1 de abril de 2022 a
3 de mayo de 2022
LUGAR DE REVISÍON: Ayuntamiento de Lancaster
Departamento de Finanzas y
Tecnología de la Información
44933 Fern Avenue
Lancaster, CA 93534
FECHA DE AUDIENCIA: martes, 3 de mayo de 2022 5:00 pm
LUGAR DE AUDIENCIA: Cámaras del Consejo
Municipal de Lancaster
44933 Fern Avenue
El Plan de Desempeño estará disponible para revision pública y comentarios por un período de 30 días comenzando el 1 de abril de 2022 a 3 de mayo de 2022. Los ciudadanos que deseen enviar comentarios por escrito durante la revision pública y el período de comentarios pueden enviarlos por correo, a más tardar el 2 de mayo de 2022, a la siguiente dirección:
Ciudad de Lancaster
Atención: Nike Noack, Gerente Financiera Senior
Departamento de Finanzas y Tecnología de la Información 44933 Fern Avenue
Lancaster, California 93534
También puede enviar comentarios por correo electrónico antes de las 4:30 pm del 3 de mayo de 2022 a la Sra. Noack a [email protected]. Todas las personas interesadas están invitadas a revisar y comentar sobre el Plan de Desempeño en el sitio web de l a Ciudad www.cityoflancasterca.org.
La Ciudad es una comunidad con derecho a participar en el Programa de Subsidios Globales para el Desarrollo Comunitario (CDBG, por sus siglas en inglés) y Asociacion para Inversiones en Vivienda HOME (HOME, por sus siglas en inglés ) que requieren la presentación de un Plan Consolidado de Cinco Años como parte de la solicitud de subvención de la Ciudad a HUD. El plan establece un marco de prioridades de desarrollo económico, comunitario y de vivienda para los programas CDBG y HOME de la Ciudad durante los próximos cinco años. El Plan de Desempeño representa el tercer año del Plan Consolidado de Cinco Años 2020-2024 de la Ciudad. El Plan de Desempeño asignará fondos de CDBG y HOME a programas y proyectos específicos para el año fiscal 2022-2023. A la fecha de este aviso, HUD aún no ha publicado las asignaciones anuales de CDBG y HOME de la Ciudad para 2022 -2023. Por esta razón, HUD ha aconsejado a la Ciudad que prepare su Plan de Desempeño utilizando la s asignaciones anuales CDBG y HOME del año actual de $ 1,572,221 y $676,132 , para implementar programas y proyectos que benefician a residentes de ingresos bajos y moderados.
De conformidad con la Ley de Estadounidenses con Discapacidades, esta reunión se llevará a cabo en un lugar accesible para las personas con discapacidades; si necesita asistencia especial para participar en esta reunión pública, comuníquese con la Secretaria Municipal al (661) 723 -6020.
Los usuarios de dispositivo de telecomunicaciones pare personas con problemas auditivos (TDD, por sus siglas en inglés) pueden llamar al Servicio de Retransmisión de TDD de California al 1- 800-735-2922. Los servicios tales c omo intérpretes de Lenguaje de Señas Estadounidense, un lector durante la reunión, ayudas auxiliares, copias de la agenda en letra grande y/o asistencia de traducción para personas que no hablan inglés están disponibles previa solicitud razonable y oportuna. Para garantizar la disponibilidad, se recomienda realizar su solicitud al menos 72 horas antes de la reunión/evento al que desea asistir. Debido a las dificultades para conseguir intérpretes de lenguaje de señas, se recomienda encarecidamente un aviso c on cinco o más días de anticipación. Para obtener información adicional, comuníquese con la Secretaria Municipal al (661) 723-6020.
El Ayuntamiento de la ciudad no discrimina y no debería discriminar por motivos de raza, color, religión (credo), género, expresión de género, edad, origen nacional (ascendencia), discapacidad, estado civil, orientación sexual, estado militar u otro estado de clase protegida en cualquiera de sus actividades u operaciones.
______________________________ FECHA: 25 de marzo de 2022
ANDREA ALEXANDER
Secretaria Municipal
Ciudad de Lancaster
--------------------------------------------------------------------------------------------------------------------- ---------
Publicado: miercoles, 30 de marzo de 2022 - Sitio Web de la Ciudad www.cityoflancasterca.org
Antelope Valley Press
Summary of Comments Received
The City received the following comments as part of the 2022-2023 Annual Action Plan process.
This includes, but is not limited to, comments received during the 30-day public review period and the Public Hearing held on May 3, 2022:
• Comments will be entered prior to the City’s submission to HUD.
APPENDIX B
Grantee Unique Appendices
138
14 14
1 2
3 4
5 6
7 8
9 10
11 12
13 14
LEGEND:
CITY BOUNDARY
(As of February 14, 2019)
LOW AND MODERATE INCOME BLOCK GROUPS
CENSUS TRACK
BLOCK GROUP
CDBG - LOW AND MODERATE INCOME AREA MAP
2010 CENSUS DATA
north
scale:
0 mi
.5 mi
1 mi
2 mi
PARKS:
1 2
3 4
5 6
7 8
9 10
11 12
13 14
APOLLO COMMUNITY REGIONAL PARK
THE HANGAR - BASEBALL PARK
MARAUDER STADIUM
RAWLEY DUNTLEY PARK
PRIME DESERT WOODLANDS PRESERVE
FOREST E. HULL PARK
SGT. STEVE OWEN MEMORIAL PARK
JANE REYNOLDS PARK/WEBBER POOL
MARIPOSA PARK
DEPUTY PIERRE W. BAIN PARK/EAST SIDE POOL
EL DORADO PARK
TIERRA BONITA PARK
SKYTOWER PARK
LANCASTER NATIONAL SOCCER CENTER
E Ave. H
E Ave. I
E Ave. J
E Ave. K
E Ave. L
Columbia Way
W Ave. N
W Ave. K
W Ave. I
W Ave. H
W Ave. G
E Ave. G
W Ave. F
W Ave. E
9 9010.10
9003.00
9003.00
9008.03
9008.05
9007.05
9007.03
9007.04
9005.04
9005.01
9005.07
9005.08
9002.01
9006.02
9006.06
9006.07
9008.04
9009.01
9009.01
9010.03
9010.04
9010.08
9010.09
9010.11
9012.05
9012.13
9011.02
9011.01
9102.02
9010.07
B.G. 4
B.G. 4
B.G. 4
B.G. 1
B.G. 3
B.G. 3
B.G. 3
B.G. 2
B.G. 2
B.G. 2
B.G. 2
B.G. 2
B.G. 2
B.G. 2
B.G. 2
B.G. 2
B.G. 2
B.G. 2
B.G. 2
B.G. 2
B.G. 2
B.G. 2
B.G. 2
B.G. 2
B.G. 2
B.G. 2
B.G. 2
B.G. 2
B.G. 2
B.G. 2
B.G. 2
B.G. 1
B.G. 4
B.G. 4
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G. 1
B.G.3
B.G.3
B.G.3
B.G.3
B.G.3
B.G.3
B.G.3
B.G.3
B.G.3
B.G.2
B.G. 3
B.G. 3
B.G. 2
B.G. 4
B.G. 2
B.G. 2
B.G.
MARIPOSA
PARK
SERVICE AREA
MARIPOSA
PARK
SERVICE AREA
APPENDIX C
SF-424, SF-424D, & Certifications
SF-424 & Certifications
Upon approval of the City’s 202 2-2023 Annual Action Plan, the City’s SF -424 & SF-424D Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) application, and program Certifications will be included in Appendix C prior to the City’s submission to HUD.