Tuesday, October 22, 2024
Regular Meeting –
1:30 PM
The City Clerk/Agency/Authority Secretary hereby declares the agenda was posted by 5:00 p.m. on
October 18, 2024
at the entrance to Lancaster City Hall
44933 Fern Avenue, Lancaster, CA 93534
LEGISLATIVE BODY
City Council/Successor Agency/Financing/Housing/Power Authority Mayor/Chair R. Rex Parris
Vice Mayor/Vice Chair Marvin Crist
Council Member/Agency Director/Authority Member Lauren Hughes-Leslie Council Member/Agency Director/Authority Member Raj Malhi Council Member/Agency Director/Authority Member Ken Mann
CITY OF LANCASTER, CALIFORNIA
CITY COUNCIL/SUCCESSOR AGENCY/FINANCING/POWER AUTHORITY REGULAR MEETING AGENDA – TUESDA Y, 10/22/2024
~ 1 ~
AGENDA ITEMS TO BE REMOVED
Sometimes
it
is
necessary
to
remove
items
from
the
agenda.
We
apologize
for
any
inconvenience
this
may cause you.
PUBLIC BUSINESS FROM THE FLOOR - AGENDIZED
ITEMS
Any
person
who
would
like
to
address
the
Legislative
Bodies
on
any
agendized
item
is
requested
to
complete
a
speaker
card
for
the
City
Clerk/Agency/Authority
Secretary
and
identify
the
agenda
item
you
would
like
to
discuss.
Each
person
will
be
given
an
opportunity
to
address
the
Legislative
Body
at
the
time
such
item
is
discussed.
Speaker
cards
are
available
at
the
rear
of
the
Council
Chambers
and
your
speaker
card
must
be
filled
out
prior
to
the
agenda
item
being
called.
We
respectfully
request
that
you
fill
the
cards
out
completely
and
as
clearly
as
possible.
Following
this
procedure
will
allow
for
a
smooth
and
timely
process
for
the
meeting
and
we
appreciate
your
cooperation.
Individual speakers are limited to three (3) minutes each.
Consent
Calendar
items
under
the
Legislative
Body
may
be
acted
upon
with
one
motion,
a
second
and
the
vote.
If
you
desire
to
speak
on
an
item
or
items
on
the
Consent
Calendar,
you
may
fill
out
one
speaker
card
for
the
Consent
Calendar.
You
will
be
given
three
minutes,
unless
a
different
time
limit
is
announced,
to
address
your
concerns
before
the
Legislative
Body
takes
action
on
the
Consent
Calendar.
LEVINE ACT/GOVERNMENT CODE SECTION 84308
Parties
to
any
proceeding
involving
a
license,
permit,
or
other
entitlement
for
use
pending
before
the
City
Council
must
disclose
any
campaign
contribution
over
$250
(aggregated)
within
the
preceding
12 months
made
by
the
party,
their
agent,
and
those
required
to
be
aggregated
with
their
contributions
under
Gov.
Code
Section
82015.5.
The
disclosure
must
include
the
amount
contributed
and
the
name(s)
of
the
contributor(s).
Consent
Calendar
items
under
the
Legislative
Body
may
be
acted
upon
with
one
motion,
a
second
and
the
vote.
If
you
desire
to
speak
on
an
item
or
items
on
the
Consent
Calendar,
you
may
fill
out
one
speaker
card
for
the
Consent
Calendar.
You
will
be
given
three
minutes,
unless
a
different
time
limit
is
announced,
to
address
your
concerns
before
the
Legislative
Body
takes
action
on
the
Consent
Calendar.
“G.C.
Section
84308:
Yes”
on
this
agenda
indicates
that
the item is subject to these regulations.
CALL TO ORDER
City Council/Successor Agency/Financing/Housing/Power Authority
CITY OF LANCASTER, CALIFORNIA
CITY COUNCIL/SUCCESSOR AGENCY/FINANCING/POWER AUTHORITY REGULAR MEETING AGENDA – TUESDA Y, 10/22/2024
~ 2 ~
COUNCIL ACTIONS
ROLL CALL
City Council Members /Agency Directors /Authority Members: Hughes-Leslie, Malhi, Mann; Vice Mayor/ Vice Chair Crist, Mayor/Chair Parris
INVOCATION
Rashall Hightower, Living Word Worship Center
PLEDGE OF ALLEGIANCE
PRESENTATIONS
1. Antelope Valley Walls Presentation
Presenter: Victoria Reyna, Assistant Director-Parks, Arts, Recreation & Community Services
2. Valley Oasis Updates
Presenter: Sarah Perry, Valley Oasis
3. Team Up Lancaster
Presenter: Marissa Diaz-Director of Public Works
HOUSING AUTHORITY - CONSENT CALENDAR
HA CC 1.
Subordination
Agreement,
allowing
Urban
Renual,
L.P.
to
Proceed
with
a
Refinance
of
the
Senior Loan for Arbor Gardens Senior Apartments
Recommendation(s):
1. Adopt
Resolution
No.
24 -
authorizing
the
Executive
Director,
or
his
designee,
to
finalize
terms,
modify,
and
execute
a
subordination
agreement
in
a
form
approved
by
the
City
Attorney
with
respect
to
a
$3,300,000.00
Lancaster
Housing
Authority
Loan,
a
$475,000.00
Lancaster
Housing
Authority
(“Authority”)
loan,
and
a
new
loan
of
$5,900,000.00
from
PNC
Bank,
National
Association,
allowing
Urban
Renual,
L.P.
to
proceed with mortgage refinance of the senior loan for Arbor Gardens Senior Apartments.
2. Authorize the Executive Director, or his designee, to execute all related documents. PNC
Bank,
National
Association
is
making
a
loan
to
Urban
Renual
L.P.
in
the
original
principal
amount
of
$5,900,000.000
(Senior
Loan),
upon
the
terms
and
conditions
of
a
Multifamily
Loan
and
Security
Agreement
dated
as
of
October
31,
2024.
The
Senior
Loan
is
secured
by
a
Multifamily
Deed
of
Trust,
Assignment
of
Rents,
Security
Agreement
and
Fixture Filing.
CITY OF LANCASTER, CALIFORNIA
CITY COUNCIL/SUCCESSOR AGENCY/FINANCING/POWER AUTHORITY REGULAR MEETING AGENDA – TUESDA Y, 10/22/2024
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CONSENT CALENDAR
CC 1.
Waive
further
reading
of
any
proposed
ordinance.
(This
permits
reading
the
title
only
in
lieu
of reciting the entire text.)
CC 2.
Approve
the
City
Council/Successor
Agency/Financing/Housing/Power
Authority
Regular
Meeting Minutes of October 08, 2024.
CC 3.
Check Registers – September 22, 2024, through October 5, 2024.
Recommendation(s):
Approve
the
Check
and
Wire
Registers
for
payments
made
September
22,
2024,
through
October 5, 2024, in the amount of $10,176,958.32 as presented.
At
each
regular
City
Council
Meeting,
the
City
Council
is
presented
with
a
check
and
ACH/wire
registers
listing
the
financial
claims
(invoices)
against
and
paid
by
the
City
for
the
purchase
of
materials,
supplies,
services,
and
capital
projects
during
the
prior
three
to
four
weeks.
CC 4.
Fleet Program Single Vendor Expenditure Authority Increase and Appropriation
Recommendation(s):
1. Increase
the
City
Manager’s,
or
his
designee,
single-vendor
expenditure
authority
to
the
budgeted
amount
for
the
fleet
fund
capital
asset
purchase
and
lease
accounts
through
the
end
of
FY
2024-2025,
and
require
the
City
Manager
to
report
purchases
in
excess
of
the
purchasing authority to the City Council in writing; and
2. Appropriate $240,000.00 into account 111-44097-82000; and
3. Authorize the City Manager, or his designee, to execute and sign all documents.
To
address
this,
the
Maintenance
Services
Division
is
proposing
an
increase
in
the
City
Manager’s
expenditure
authority
for
single-vendor
vehicle
and
equipment
purchases.
This
increase
would
align
with
the
approved
capital
asset
budget
for
fleet
funds,
and
allow
staff
to
act
quickly
when
working
with
vendors,
securing
the
best
possible
deals.
The
proposed
adjustment
would
streamline
the
vehicle
procurement
process,
while
maintaining
compliance
with the City’s purchasing policies.
CC 5.
Award
of
Bid
and
Task
Order
for
Multi-Year
Professional
Services
(Service
Group
Category
16 -
Labor
Compliance)
-
PWCP
23-029
-
Avenue
L
and
5th
Street
East
Drainage
Improvements
Recommendation(s):
1. Award
Public
Works
Construction
Project
(PWCP)
23-029,
Avenue
L
and
5th
Street
East
Drainage
Improvements,
to
R.C.
Becker
and
Son,
Inc.
of
Santa
Clarita,
California,
in
the
amount
of
$948,554.01,
(plus
a
10%
contingency),
to
construct
drainage
improvements
at
the
CITY OF LANCASTER, CALIFORNIA
CITY COUNCIL/SUCCESSOR AGENCY/FINANCING/POWER AUTHORITY REGULAR MEETING AGENDA – TUESDA Y, 10/22/2024
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southeast
corner
of
Avenue
L
and
5 Street
East.
This
contract
was
awarded
per
California
Public
Contract
Code
Section
22038(b).
Authorize
the
City
Manager,
or
his
designee,
to
sign
all documents.
2. Find
the
City
has
complied
with
the
California
Environmental
Quality
Act.
A
Notice
of
Exemption was filed on June 19, 2007.
3. Authorize
Task
Order
expenditure
amount
of
$9,485.00,
(plus
a
5%
contingency),
for
labor
compliance
services
award
to
the
successful
firm
in
Multi-Year
Professional
Services
Agreement, Service Group Category (SGC) 16 - Labor Compliance.
The
proposed
project
is
funded
by
the
local
fund,
Drainage
Developer
Fees.
This
project
will
include
constructions
of
Master
Plan
of
Drainage
inlet,
storm
drainpipe,
water
systems
and
ancillary street improvements at the southeast comer of Avenue L
and 5
Street East
.
CC 6.
Authorize Deed Restriction for Skytower Park
Recommendation(s):
A.
Authorize the execution of a deed restriction for Skytower Park.
B.
Authorize
the
City
Manager,
or
his
designee,
to
execute
and
submit
all
documents
related
to the Deed Restriction.
On
July
1,
2020,
the
City
of
Lancaster
was
approved
for
funding
through
the
California
Office
of
Grants
and
Local
Services
(OGALS)
Prop
68 Per
Capita
Grant
Program
,
to
enhance
outdoor
fitness
amenities
at
Skytower
Park,
located
at
43434
Vineyard
Dr,
Lancaster,
CA
93535.
This
funding
enabled
the
construction
of
a
new
outdoor
exercise
station,
featuring
state-of-the-art
equipment
adjacent
to
the
basketball
court.
As
a
condition
of
the
grant,
the
City
must
file
a
deed
restriction
to
ensure
the
property
remains
dedicated
to
public
recreation
and fitness
CC 7.
Approval
of
the
Carryover
Water
Transfer
Agreement
between
the
City
of
Lancaster
and
the
50th District Agricultural Association
Recommendation(s):
1. Approve
the
Carryover
Water
Transfer
Agreement
between
the
City
of
Lancaster
and
the
50 District
Agricultural
Association
(50
District)
to
transfer
192-acre
feet
(AF)
of
carryover
water
that
the
50th
District
has
banked
since
the
Water
Adjudication
Judgement
was finalized.
2. Approve
an
additional
transfer
of
32 AF
of
carryover
water
per
year
from
the
50 District
to the City. This includes a total of 160 AF of carryover water over a five-year period.
3. Approve
the
Transfer
Request
Form,
which
will
be
submitted
jointly
by
the
City
of
Lancaster
and
50 District
to
the
Antelope
Valley
Water
Master
(Water
Master)
for
approval
of
the
transaction.
Approve
any
future
transfer
request
forms
submitted
by
the
City
and
50 District to complete this carryover water transfer agreement.
4. Authorize
the
City
Manager,
or
his
designees,
to
execute
all
documents
and
make
any
non-
substantive changes necessary to complete the transaction. th
th
th
th
th
th
th
CITY OF LANCASTER, CALIFORNIA
CITY COUNCIL/SUCCESSOR AGENCY/FINANCING/POWER AUTHORITY REGULAR MEETING AGENDA – TUESDA Y, 10/22/2024
~ 5 ~
As
a
participant
in
the
Antelope
Valley
Ground
Water
Adjudication,
the
50th
District
received
32 AF
of
permanent
ground
water
rights,
which
they
are
currently
not
utilizing
for
their
site
and
have
no
plans
to
utilize
in
the
future.
This
water
has
been
carried
over
as
allowed
by
the
Water
Adjudication
Judgment.
The
Adjudication
ruling
allows
the
50 District
to
transfer
carryover water rights to another State or local agency of their choosing.
CC 8.
Ordinance
Repealing
Chapter
2.39 of
the
Lancaster
Municipal
Code
Regarding
Social
Equity
Commission
Recommendation(s):
Adopt
Ordinance
No.
1120
repealing
Chapter
2.39 of
the
Lancaster
Municipal
Code
regarding Social Equity Commission.
The
Antelope
Valley,
and
primarily
the
cities
of
Palmdale
and
Lancaster,
share
many
common
goals,
interests
and
quality
of
life
issues.
Having
two
separate
municipal
commissions
(the
Social
Equity
Commission
in
Lancaster
and
the
Human
Rights
Advisory
Committee
in
Palmdale),
each
with
similar
goals
and
objectives,
dilutes
the
efficacy
and
benefits
that
would
be enhanced by a joining of these community-oriented groups.
CC 9.
Monthly Reports of Investments – August & September 2024
Recommendation(s):
Accept
and
approve
the
August
and
September
2024
Monthly
Report
of
Investments
as
submitted.
Each
month,
the
Finance
Department
prepares
a
report
listing
the
investments
for
all
separate
entities
under
the
jurisdiction
of
the
City
as
identified
in
the
City’s
Comprehensive
Annual
Financial Report.
CC 10.
Award
of
Bid
for
PWCP
21-023
PH2
Landscape
Restoration
Program
and
Task
Order
for
Multi-Year Professional Services (Service Group Category 16 – Labor Compliance)
Recommendation(s):
1. Award
Public
Works
Construction
Project
(PWCP)
21-023
PH2,
Landscape
Restoration
Program,
to
Marina
Landscape,
Inc,
of
Orange,
California,
in
the
amount
of
$4,251,985.00
(plus
a
20%
contingency),
to
replace
landscaping
and
irrigation
systems
along
the
Sierra
Highway
Bike
Path
from
Avenue
J
to
Avenue
M
and
authorize
the
City
Manager,
or
his
designee,
to
sign
all
documents.
This
contract
is
recommended
for
award
in
accordance
with
California Public Contract Code Section 22038(b).
2. Find
the
City
has
complied
with
the
California
Environmental
Quality
Act.
A
Notice
of
Exemption was filed on October 17, 2024.
3. Authorize
Task
Order
expenditure
amount
of
$42,519.85,
(plus
a
5%
contingency),
for
labor
compliance
services
award
to
the
successful
firm
in
Multi-Year
Professional
Services
Agreement, Service Group Category (SGC) 16 - Labor Compliance.
The
proposed
project
is
funded
by
Proposition
A
and
the
General
Fund,
and
will
replace
landscaping
and
irrigation
systems
along
the
Sierra
Highway
Bike
Path
from
Avenue
J
to
th
CITY OF LANCASTER, CALIFORNIA
CITY COUNCIL/SUCCESSOR AGENCY/FINANCING/POWER AUTHORITY REGULAR MEETING AGENDA – TUESDA Y, 10/22/2024
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PUBLIC HEARING
NEW BUSINESS
Avenue M. This project is Phase 2 in the Landscape Restoration Program.
PH 1.
Mitigation Fee Act (AB 1600) Report for Fiscal Year 2024.
Recommendation(s):
Staff
recommends
the
City
Council
receive
and
file
the
Mitigation
Fee
Act
(AB1600)
Report
on Development Impact Fees for the fiscal year ending June 30, 2024.
The
AB
1600
report
consists
of
a
brief
description
of
the
fee
type
in
the
account
or
fund,
the
amount
of
the
fee,
the
beginning
and
ending
balance
of
the
account
or
fund,
the
amount
of
fees
collected
and
the
interest
earned,
if
any.
If
there
are
funds
in
the
account
then
there
is
also
a
requirement
to
make
a
finding
that
there
is
a
reasonable
relationship
between
current
needs for and the purposes for which they were originally collected.
NB 1.
Ordinance
Adding
Chapter
8.34 to
the
Lancaster
Municipal
Code
Relating
to
the
Sale
of
Energy Drinks to Persons Under the Age of 18
Recommendation(s):
Introduce
Ordinance
No.
______
adding
Chapter
8.34 to
the
Lancaster
Municipal
Code
relating to the sale of energy drinks to persons under 18 years of age.
In
order
to
protect
the
public
health,
safety
and
welfare
of
persons
under
the
age
of
eighteen
(18)
years
of
age,
the
City
Council
of
the
City
of
Lancaster
has
determined
it
is
necessary
to
prohibit
the
sale
,
distribution,
giving
away
or
offering
of
energy
drinks
to
persons
under
the
age
of
eighteen
(18)
years
old.
Research
has
shown
that
the
consumption
of
energy
drinks
by
persons under the age of eighteen years old have several negative effects.
NB 2.
Lancaster Eats Support Program Overview and Implementation
Recommendation(s):
1. Authorize
the
City
Manager
or
his
designee
to
finalize
and
execute
loan
agreements
for
amounts
up
to
$25,000,
along
with
associated
operating
covenants,
between
the
City
of
Lancaster and Lancaster Eats Support Program participants.
2. Authorize the City Manager or his designee to execute all related documents.
The
Lancaster
Eats
Support
Program
(LESP)
was
established
to
stimulate
the
local
economy
by
attracting
and
supporting
small,
independent
restaurants,
wineries,
craft
breweries,
eateries,
and
distilleries.
This
initiative
aims
to
fill
vacant
commercial
spaces
with
sustainable
and
dynamic
businesses,
thus
enhancing
the
vibrancy
and
diversity
of
Lancaster's
community.
CITY OF LANCASTER, CALIFORNIA
CITY COUNCIL/SUCCESSOR AGENCY/FINANCING/POWER AUTHORITY REGULAR MEETING AGENDA – TUESDA Y, 10/22/2024
~ 7 ~
COUNCIL AGENDA
COUNCIL REPORTS
CA 1.
Discussion
and
consideration
of
nomination
and
appointment
of
new
Planning
Commission
Member.
CR 1.
Council Reports
LANCASTER FINANCING AUTHORITY
No action required at this time.
LANCASTER POWER AUTHORITY
No action required at this time.
LANCASTER SUCCESSOR AGENCY
No action required at this time.
CITY MANAGER / EXECUTIVE DIRECTOR ANNOUNCEMENTS
CITY CLERK/AGENCY/AUTHORITY SECRETARY ANNOUNCEMENT
PUBLIC BUSINESS FROM THE FLOOR - NON-AGENDIZED ITEMS
This
portion
of
the
agenda
allows
an
individual
the
opportunity
to
address
the
Legislative
Bodies
on
any
item
NOT
ON
THE
AGENDA
regarding
City/Agency/Authority
business
and
speaker
cards
must
be
submitted
prior
to
the
beginning
of
this
portion
of
the
Agenda.
Please
complete
a
speaker
card
for
the
City
Clerk/Agency/Authority
Secretary
and
identify
the
subject
you
would
like
to
address.
We
respectfully
request
that
you
fill
the
cards
out
completely
and
as
clearly
as
possible.
Following
this
procedure
will
allow
for
a
smooth
and
timely
process
for
the
meeting
and
we
CITY OF LANCASTER, CALIFORNIA
CITY COUNCIL/SUCCESSOR AGENCY/FINANCING/POWER AUTHORITY REGULAR MEETING AGENDA – TUESDA Y, 10/22/2024
~ 8 ~
appreciate
your
cooperation.
State
law
prohibits
the
Legislative
Body
from
taking
action
on
items
not
on
the
agenda
and
your
matter
may
be
referred
to
the
City
Manager/Executive
Director.
Individual
Speakers are limited to three (3) minutes each unless a different time limit is announced.
CITY COUNCIL / AGENCY/ AUTHORITY COMMENTS
CLOSED SESSION
1. Conference with Legal Counsel - Anticipated Litigation: significant exposure to litigation pursuant to Government Code
Section 54956.9(d) (2) - four potential cases.
2. Conference with Legal Counsel - Anticipated Litigation: consideration of initiation of litigation pursuant to Government Code Section 54956.9(d) (4) – four potential cases.
3. Conference Involving a Joint Powers Agency: Antelope Valley Air Quality Management District Pursuant to Government Code Section 54956.96 Discussion will concern: Antelope Valley Air Quality Management District v. United States Environmental Protection
Agency, et al. 9
Cir. Case No. 23-1614 Name of local agency representative on joint powers agency board: Marvin Crist, Ken Mann
4. Antelope Valley Groundwater Cases Included Action:
Los Angeles County Waterworks District No. 40 v. Diamond Farming Co.
Superior Court of California, County of Los Angeles, Case No. BC325201; Los Angeles County Waterworks District No. 40 v. Diamond Farming Co.
Superior Court of California, County of Kern, Case No. S-1500-CV-254-348; Wm. Bolthouse Farms, Inc. v. City of Lancaster, Diamond Farming Co. v.
City of Lancaster, Diamond Farming Co. v. Palmdale Water District Superior Court of California County of Riverside, consolidated actions; Case Nos. RIC 353 840, RIC 344 436, RIC 344 668
5. Brisa Mahoney, et al. v. City of Lancaster, et al., LASC Case No. 2OSTCV02556
6. Romines v. City of Lancaster, et al,, LASC Case No. 20 AVCV00345
7. Moujan v. City of Lancaster et al., LASC Case No. 20 AVCV00205
8. Lancaster v. Netflix, et al., LASC 21STCV01881
9. Castro v. Lancaster
10. Montenegro v. Green, LASC Case No. 22 AVCV01050
11. Perez v. Lancaster, LASC Case No. 23 AVCV00577
12. City of Whittier v. Superior Court, LASC Case No. 23 STCP03579
th
CITY OF LANCASTER, CALIFORNIA
CITY COUNCIL/SUCCESSOR AGENCY/FINANCING/POWER AUTHORITY REGULAR MEETING AGENDA – TUESDA Y, 10/22/2024
~ 9 ~
ADJOURNMENT
Next Regular Meeting:
November 12, 2024 at 5:00 PM
MEETING ASSISTANCE INFORMATION
In
compliance
with
the
Americans
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
meeting,
please
contact
the
City
Clerk
at
(661)723-6020.
Services
such
as
American
Sign
Language
interpreters,
a
reader
during
the
meeting,
and/or
large
copies
of
the
agenda
are
available.
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
business
days
notice
is
strongly
recommended.
For
additional
information,
please
contact
the
City
Clerk
at
(661)723-6020.
AGENDA ADDENDUM INFORMATION
On
occasion
items
may
be
added
after
the
agenda
has
been
mailed
to
subscribers.
Copies
of
the
agenda
addendum
item
will
be
available
at
the
City
Clerk
Department
and
are
posted
with
the
agenda
on
the
windows
of
the
City
Council
Chambers.
For
more
information,
please
call
the
City
Clerk
Department at (661) 723-6020.
All documents available for public review are on file with the City Clerk Department.
CITY OF LANCASTER, CALIFORNIA
CITY COUNCIL/SUCCESSOR AGENCY/FINANCING/POWER AUTHORITY REGULAR MEETING AGENDA – TUESDA Y, 10/22/2024
~ 10 ~
STAFF REPORT
Lancaster Housing Authority
HA CC 1
10/22/2024
TN
Date:October 22, 2024
To: Chair Parris and Authority Board Members
From: Chenin Dow, Assistant Director
Christopher Aune, Housing Manager
Subject:Subordination Agreement, allowing Urban Renual, L.P. to Proceed with a Refinance of the Senior Loan for Arbor Gardens Senior Apartments Recommendation:
1. Authorize the Executive Director, or his designee, to negotiate, finalize, and execute two subordination agreements in a form approved by the City Attorney with respect to a $3,300,000.00 Lancaster Housing Authority (“Authority”) Loan, a $475,000.00 Authority loan, and a new loan of $5,900,000.00 from PNC Bank, National Association, allowing Urban Renual, L.P. to proceed with mortgage refinance of the senior loan for Arbor Gardens Senior Apartments.
2. Authorize the Executive Director, or his designee, to finalize and execute all related documents in a form approved by the City Attorney.
G.C. Section 84308: No
Fiscal Impact:
None.
Background:
In September 2003, the Authority issued loans in the amount of $3,300,000.00 and $475,000.00 for Arbor Gardens Senior Apartments (the “Loans”). The project is owned and operated by Urban Renual L.P. (the “Developer”). A Regulatory Agreement and Declaration of Covenants were recorded simultaneously for the property to remain affordable for fifty-five (55) years, a condition of issuing the Loans.
Upon award, the Loans were placed in a junior position to a larger, senior loan on the project with the agreement of the Authority. In October 2014, the Authority again agreed to subordinate the Loans to a senior loan. This senior loan matures on November 1, 2024. 1 8
0 0
Now, PNC Bank, National Association is poised to issue a refinancing loan to Urban Renual L.P. in the original principal amount of $5,900,000.000 (Senior Loan), upon the terms and conditions of a Multifamily Loan and Security Agreement dated as of October 31, 2024. The Senior Loan is secured by a Multifamily Deed of Trust, Assignment of Rents, Security Agreement, and Fixture Filing. The proposed Senior Loan will replace the previous senior loan; thus, the Authority Loans would remain in a junior position, as has been the case since their original issuance.
The proposed action would authorize the Executive Director or his designee to negotiate, finalize, and execute two subordination agreements to this effect, in a form approved by the City Attorney.
This action will ensure the continued availability of deed-restricted units at Arbor Gardens, thus providing a safe, affordable place to live for low-income seniors in our community. la:ca:cd
CC 2
10/22/24
TN
Tuesday, October 08, 2024
CALL TO ORDER
Mayor Parris called the meeting of the Lancaster City Council / Successor Agency/ Financing/Housing/Power Authority to order at 1:34 p.m.
ROLL CALL
PRESENT: City Council Members /Agency Directors/Authority Members: Hughes-Leslie, Malhi, Mann, Vice Mayor/Vice Chair Crist, Mayor/Chairman Parris STAFF MEMBERS:
City Manager/ Executive Director; Assistant City Manager/Deputy Executive Director; City Attorney/Agency/Authority Counsel; City Clerk/Agency/Authority Secretary; Director-Public Works; Assistant Director-Parks, Recreation, Arts, & Community Services; Senior Director/Treasurer-Admin Services; Chief of Police
INVOCATION
Ethan Berthiaume, Grace Resources
PLEDGE OF ALLEGIANCE
Council Members Hughes-Leslie
HOUSING AUTHORITY CONSENT CALENDAR
On a motion by Vice Chair Crist and seconded by Authority Member Malhi, the Lancaster Housing Authority approved the Housing Authority Consent Calendar as comprised, by the following vote: 5-0-0-0; AYES: Hughes-Leslie, Malhi, Mann, Crist, Parris; NOES: None; ABSTAIN: None; ABSENT: None
HA CC 1. COMMITMENT LETTER WITH RAVELLO HOLDINGS, INC.
CC/SA/FA/HA/PA Minutes-10/08/24
2 Authorized the Executive Director to execute a loan commitment letter with Ravello Holdings, Inc. consistent with the terms outlined in this staff report.
CONSENT CALENDAR
On a motion by Vice Mayor Crist and seconded by Council Member Mann, the City Council approved the Consent Calendar as comprised, by the following vote: 5-0-0-0; AYES: Hughes-Leslie, Malhi, Mann, Crist, Parris; NOES: None; ABSTAIN: None; ABSENT: None
CC 1. ORDINANCE WAIVER
Waived further reading of any proposed ordinance. (This permits reading the title only in lieu of reciting the entire text.)
CC 2. MINUTES
Approved the City Council/Successor Agency/Financing/Power Authority Regular Meeting Minutes of September 10, 2024.
CC 3. CHECK REGISTERS – AUGUST 25, 2024, THROUGH SEPTEMBER 21, 2024
Approved the Check and Wire Registers for payments made August 25, 2024, through September 21, 2024, in the amount of $11,356,998.51 as presented.
CC 4. RELEASE OF COVENANT AND TERMINATION OF AGREEMENT TO HOLD
PROPERTY AS ONE PARCEL
Approved the Release of Covenant and Termination of Agreement to hold Property as one Parcel (“Release and Termination”) for parcels 1 through 4, inclusive of Parcel Map No. 18060, recorded in book 193, pages 18-22; made findings that the Release and Termination will not violate any of the provisions of the Subdivision Map Act and will not intrude upon the ordinance amending Title 16.24 - Article XI of the Municipal Code relating to Covenant of Easement, as adopted in Resolution No. 17-31; instructed the City Manager to execute the Release and Termination, and the City Clerk to attest the same.
CC 5. ACCEPTANCE OF DESIGN-BUILD SERVICES – PUBLIC WORKS CONSTRUCTION PROJECT NO. 24-013, PUBLIC SAFETY BUILDING
RENOVATION
Accepted the work designed and constructed by Bowe Contractors, Inc., for Public Works Construction Project No. 24-013, Public Safety Building Renovation, and directed the City Clerk to file the Notice of Completion for the project. Retention on this project shall be disbursed in accordance with California Public Contract Code Section 22038(b).
CC/SA/FA/HA/PA Minutes-10/08/24
3 CC 6. ACCEPTANCE OF RAWLEY DUNTLEY PLAYGROUND IMPROVEMENT
PROJECT
Accepted the work constructed by Playcore Wisconsin, Inc DBA GameTime c/o Great Western, for the Rawley Duntley Park Playground Improvements Project and directed the City Clerk to file the Notice of Completion for the project.
CC 7. APPROVE AMENDMENT NO. 1 TO THE PROGRAM MANAGEMENT
AGREEMENT FOR LANCASTER ENERGY SOLAR AND BATTERY STORAGE
PROGRAM
Approved Amendment No. 1 (Amendment) to the Program Management Agreement (Agreement) between the City of Lancaster (City) and authorized the City Manager or his designees to execute all documents and make any non-substantive changes necessary.
CC 8. ACCEPTANCE OF AVAMD FOR PURCHASE OF FOUR (4) HYDROGEN-
POWERED UTILITY TERRAIN VEHICLES
Approved a Professional Services Agreement with AVIDUTV of Lancaster, California, in the amount of $345, 825.00. Authorized the City Manager or his designee, to sign all documents.
CC 9. THIRD AMENDMENT TO THE AGREEMENT WITH POWERFLEX
SYSTEMS, INC., FOR THE CITY HALL RESILIENCY PROJECT
1. Approved the Third Amendment to the Agreement with PowerFlex Systems, Inc., (PowerFlex) for the City Hall Resiliency Project.
2. Authorized the City Manager, or his designee, to sign all agreements with PowerFlex and Southern California Edison related to the project.
CC 10.FIRST AMENDMENT TO LOAN AGREEMENT WITH FRIENDS OF THE ANTELOPE VALLEY FAIR, INC.
1. Authorized the City Manager or his designee to negotiate, finalize, and execute the First Amendment to the Loan Agreement with Friends of the Antelope Valley Fair, Inc.
2. Authorized the City Manager or his designee to execute all related documents.
CC 11.ACCEPTANCE OF PUBLIC WORKS CONSTRUCTION PROJECT NO. 23-027 - PUBLIC SAFETY BUILDING IMPROVEMENTS PHASE 1
CC/SA/FA/HA/PA Minutes-10/08/24
4 1. Approved Change Order No. 5 and increased the total amount of the contract with Toneman Development Corporation for Public Works Construction Project No. 23-027, Public Safety Building Improvements Phase 1, by $54,259.18 for a total revised contract amount of $502,055.86 plus a 20% contingency.
2. Accepted the work constructed by Toneman Development Corporation, for Public Works Construction Project No 23-027, Public Safety Building Improvements Phase I, and directed the City Clerk to file the Notice of Completion for the project. Retention of this project shall be disbursed in accordance with California Public Contract Code Section 22038(b).
PH 1. TEFRA HEARING/APPROVAL OF MULTIFAMILY HOUSING REVENUE
BONDS FOR TERRACINA AT LANCASTER APARTMENTS
Mayor Parris opened the public hearing.
The City Council waived the staff report on this item seeing that there were not any public comments.
Mayor Parris closed the public hearing.
On a motion by Vice Mayor Crist and seconded by Council Member Hughes-Leslie, the City Council adopted Resolution No. 24-59 pursuant to Section 147(f) of the Internal Revenue Code of 1986 approving the issuance of housing revenue bonds (the “Housing Revenue Bonds”) by the California Municipal Finance Authority (“CMFA”) in an aggregate principal amount not to exceed $55,000,000 to assist in the financing of the acquisition, construction, improvement and equipping of a multifamily rental housing project located at 1743 E. Avenue J4 in the City of Lancaster, California (the “Project”), by the following vote: 5-0-0-0; AYES: Hughes-Leslie, Malhi, Mann Crist, Parris; NOES:
None; ABSTAIN: None; ABSENT: None
NB 1. ORDINANCE REPEALING CHAPTER 2.39 OF THE LANCASTER
MUNICIPAL CODE REGARDING SOCIAL EQUITY COMMISSION
The City Council waived the staff report on this item seeing that there were not any public comments.
On a motion by Vice Mayor Crist and seconded by Council Member Mann, the City Council introduced Ordinance No. 1120 repealing Chapter 2.39 of the Lancaster Municipal Code regarding Social Equity Commission, by the following vote: 5-0-0-0; AYES:
Hughes-Leslie, Malhi, Mann, Crist, Parris; NOES: None; ABSTAIN: None; ABSENT:
None
CC/SA/FA/HA/PA Minutes-10/08/24
5 CR1. COUNCIL REPORTS
Staff provided a video recap regarding the Antelope Valley Auto Mall.
Council Member Hughes-Leslie reported on the Antelope Valley Fair.
Staff provided a video recap of the Antelope Valley Fair.
Mayor Parris reported on the Lancaster Police Department open house.
Staff provided a video recap of the Lancaster Police Department Open House.
Mayor Parris discussed the status of our current health care system. Mayor Parris also discussed partnership with Japan and the goal to cut cost of electricity by fifty percent (50%).
LANCASTER FINANCING AUTHORITY
No action required at this time.
LANCASTER POWER AUTHORITY
No action required at this time.
LANCASTER SUCCESSOR AGENCY
No action required at this time.
CITY MANAGER / EXECUTIVE DIRECTOR ANNOUNCEMENTS
Trolis Niebla, City Manager announced upcoming events such as Haunt at the Hanger on October 19, 2024 and Field of Drafts on November 2, 2024. The City Manager also announced upcoming Peace March scheduled on October 12, 2024.
CITY CLERK /AGENCY/AUTHORITY SECRETARY ANNOUNCEMENT
The City Clerk provided the public with the procedure to address the City Council/Successor Agency/Authority regarding non-agendized items.
PUBLIC BUSINESS FROM THE FLOOR - NON-AGENDIZED ITEMS
Addressing the City Council at this time:
Doug McAllister- discussed current issues with copper theft affecting Frontier Communications.
David Paul-discussed various topics such as desert trash dumping and copper wire theft issues.
Patricia McAllister-discussed issues with the cleanliness of Lancaster Blvd, crime and roaming cats.
CITY COUNCIL/AGENCY/AUTHORITY COMMENTS
CC/SA/FA/HA/PA Minutes-10/08/24
6 Vice Mayor Crist discussed issues with nitrous oxide epidemic and smoke shops selling nitrous oxide.
Mayor Parris directed staff to research the ability to create an ordinance removing smoke shops.
ADJOURNMENT
Mayor Parris adjourned the meeting at 2:13 p.m. and stated the next City Council/Successor Agency/Financing/Power Authority meeting will be held on Tuesday, October 22, 2024 at 1:30 p.m.
PASSED, APPROVED and ADOPTED this 22nd day of October 2024, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST: APPROVED:
__________________________ _____________________________ ANDREA ALEXANDER R. REX PARRIS
CITY CLERK MAYOR/CHAIRMAN
CC/SA/FA/HA/PA Minutes-10/08/24
7 STATE OF CALIFORNIA }
COUNTY OF LOS ANGELES } ss
CITY OF LANCASTER }
CERTIFICATION OF MINUTES
CITY COUNCIL/SUCCESSOR AGENCY/FINANCING/ HOUSING/POWER AUTHORITY I, ___________________________, ___________________________ of the City of Lancaster, CA, do hereby certify that this is a true and correct copy of the original City Council/Successor Agency/ Financing/ Housing/ Power Authority Minutes, for which the original is on file in my office.
WITNESS MY HAND AND THE SEAL OF THE CITY OF LANCASTER, CA on this _______________ day of ______________________, ____________. (seal)
____________________________________
STAFF REPORT
City of Lancaster
CC 3
10/22/2024
TN
Date:October 22, 2024
To: Mayor Parris and City Council Members
From:George N. Harris II, Senior Director/Treasurer – Admin Services Subject:Check Registers – September 22, 2024, through October 5, 2024.
Recommendation:
Approve the Check and Wire Registers for payments made September 22, 2024, through October 5, 2024, in the amount of $10,176,958.32 as presented.
G.C. Section 84308: No
Fiscal Impact:
$10,176,958.32, as detailed in the Check Registers.
Background:
At each regular City Council Meeting, the City Council is presented with a check and ACH/wire registers listing the financial claims (invoices) against and paid by the City for the purchase of materials, supplies, services, and capital projects during the prior three to four weeks.
This process provides the City Council with the opportunity to review the City’s expenditures.
Claims have been paid via checks, Automated Clearing House (ACH) payments, or federal wires.
The justifying backup information for each expenditure is available in the Finance Department.
Check Nos.: 7451375-7451624 $ 5,573,473.89
ACH/Wire Check Nos.: 101012033-101012034 $ 10,603,484.43 $ 16,176,958.32
Voided Check No.: N/A
Voided ACH/Wire No.: N/A
Attachment:
Check Register
ACH/Wire Register
1 7
9 8
STAFF REPORT
City of Lancaster
CC 4
10/22/2024
TN
Date:October 22, 2024
To: Mayor Parris and City Council Members
From:Marissa Diaz, Director - Public Works
Michael Harne, Assistant Director – Maintenance Services Subject:Fleet Program Single Vendor Expenditure Authority Increase and Appropriation Recommendations:
1. Increase the City Manager’s, or his designee, single-vendor expenditure authority to the budgeted amount for the fleet fund capital asset purchase and lease accounts through the end of FY 2024-2025, and require the City Manager to report purchases in excess of the purchasing authority to the City Council in writing; and
2. Appropriate $240,000.00 into account 111-44097-82000; and
3. Authorize the City Manager, or his designee, to execute and sign all documents.
G.C. Section 84308: No
Fiscal Impact:
Sufficient funds are available in the City Council-approved appropriations for the FY 2024-2025 Maintenance Services Operating Budget under account numbers 111-44000-8200, 111-44000- 5330, 111-44097-82000, 423-44000-5330, 423-44000-8200, 214-44000-5330, and 214-44000- 82000. Additionally, approval of this recommendation will appropriate $240,000.00 to increase the budget for account 111-44097-82000.
Background:
Several factors contribute to the ongoing vehicle and equipment shortages that hinder the City's operational needs. Maintenance Services staff must frequently compete with other buyers to secure necessary vehicles. Repeating this process 10–20 times a year places a significant strain on both Finance and Maintenance Services staff. Moreover, the City Manager’s current expenditure authority limits the number of vehicles that can be purchased from a single dealership.
For instance, a dealership may offer a highly favorable deal on a needed vehicle, however, if the 1 7
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City Manager’s expenditure authority for that dealership has been reached, the deal cannot be completed. In today’s competitive vehicle market, dealerships are unwilling to hold vehicles for the time it takes to secure City Council approval. This delay often results in missed opportunities to lock in favorable pricing and interest rates, further compounding the challenges.
To address this, the Maintenance Services Division is proposing an increase in the City Manager’s expenditure authority for single-vendor vehicle and equipment purchases. This increase would align with the approved capital asset budget for fleet funds, and allow staff to act quickly when working with vendors, securing the best possible deals. The proposed adjustment would streamline the vehicle procurement process, while maintaining compliance with the City’s purchasing policies. Maintenance Services staff will continue to follow the requirements of the Lancaster Municipal Code, as well as the purchasing department's approved procurement methods, such as quotes, cooperative agreements, or solicitations, to ensure the vendor offering the best value is selected. Once identified, staff will work with the selected vendor to finalize the purchase. If the City Manager approves purchases from a single vendor that exceed his established expenditure authority (currently $125,000.00, as set by ordinance), he will notify the City Council in writing for each such transaction in accordance with Council policy.
We respectfully request that the Council approve this increase in single-vendor expenditure authority.
HA:sm
STAFF REPORT
City of Lancaster
CC 5
10/22/2024
TN
Date:October 22, 2024
To: Mayor Parris and City Council Members
From:Marissa Diaz, Director - Public Works
Nicholas Godin, Assistant Director - City Engineering
Subject:Award of Bid and Task Order for Multi-Year Professional Services (Service Group Category 16 - Labor Compliance) - PWCP 23-029 - Avenue L and 5th Street East Drainage Improvements
Recommendations:
1. Award Public Works Construction Project (PWCP) 23-029, Avenue L and 5th Street East Drainage Improvements, to R.C. Becker and Son, Inc. of Santa Clarita, California, in the amount of $948,554.01, (plus a 10% contingency), to construct drainage improvements at the southeast corner of Avenue L and 5th Street East. This contract was awarded per California Public Contract Code Section 22038(b). Authorize the City Manager, or his designee, to sign all documents.
2. Find the City has complied with the California Environmental Quality Act. A Notice of Exemption was filed on June 19, 2007.
3. Authorize Task Order expenditure amount of $9,485.00, (plus a 5% contingency), for labor compliance services award to the successful firm in Multi-Year Professional Services Agreement, Service Group Category (SGC) 16 - Labor Compliance.
G.C. Section 84308: No
Fiscal Impact:
$1,053,368.66, (including 10% construction contract contingency and 5% labor compliance contingency); sufficient funds are available in the Capital Improvements Budget in project string CPl 7SD032.CONST, GL Accounts 41149900.8000.
Background:
The proposed project is funded by the local fund, Drainage Developer Fees. This project will include constructions of Master Plan of Drainage inlet, storm drainpipe, water systems and 1 7
8 9
ancillary street improvements at the southeast comer of Avenue L and 5 th Street East.
Per Section 2.2 of the Existing Community Workforce Agreement, (CWA), this project is subject to the CWA by and between the City of Lancaster and Los Angeles/Orange Counties Building and Construction Trades Council, and the Signatory Craft Councils and Unions. The PWCP 23-029 contract documents were prepared, and the project was advertised accordingly. Per Section 2.6(b) of the CWA, Letters of Assent shall be submitted by the Contractor and each of its subcontractors, of whatever tier, 48 hours prior to commencement of work, or within 48 hours after the award of Project Work to that Contractor (or subcontractor), whichever occurs later.
On September 10, 2024, at 11:00 a.m., the City conducted an electronic bid opening for PWCP 23-029 via PlanetBids. R.C. Becker and Son, Inc. was the lowest responsive responsible bidder.
The results of bids are shown below.
Contractor City Bid Amounts
1. R.C Becker and Son, Inc. Santa Clarita, CA $ 948,554.01
2. Granite Construction Company Lancaster, CA $ 1,170,923.00
3. C.A. Ramussen, Inc Valencia, CA $ 1,294,589.50
4. Aneen Construction, Inc.* Riverside, CA $ 1,976,825.00 Engineer's Estimate $ 1,260,958.00
* Deemed non-responsive bidder, bid bond was not submitted.
On November 8, 2022, the City Council approved Multi-Year Professional Service Agreements with the consulting firms recommended by staff to be pre-qualified service providers through December 31, 2026. The Multi-Year Agreement permits City staff to issue Task Orders for individual projects. Multi-Year Professional Services Agreement, Service Group Category (SGC) 16 - Labor Compliance, prequalified three (3) firms, proposals will be requested, and a task order will be executed with one of these firms:
Cumming Management Group, Inc.
Golden State Labor Compliance, LLC
Perceptive Enterprises, Inc.
NG:DL/vb
Attachment:
Vicinity Map
STAFF REPORT
City of Lancaster
CC6
10/22/24
TN
Date: October 22, 2024
To: Mayor Parris and City Council Members
From: Sonya Patterson, Director - Parks, Arts, Recreation, and Community Services Department
Subject:Authorize Deed Restriction for Skytower Park
Recommendation:
A. Authorize the execution of a deed restriction for Skytower Park.
B. Authorize the City Manager, or his designee, to execute and submit all documents related to the Deed Restriction.
G.C. Section 84308: N/A
Fiscal Impact:
No impact on general fund. The Improvements to Skytower Park Outdoor Fitness Equipment were funded by California Office of Grants and Local Services (OGALS) Prop 68 Per Capita Grant Program.
Background:
On July 1, 2020, the City of Lancaster was approved for funding through the California Office of Grants and Local Services (OGALS) Prop 68 Per Capita Grant Program, to enhance outdoor fitness amenities at Skytower Park, located at 43434 Vineyard Dr, Lancaster, CA 93535. This funding enabled the construction of a new outdoor exercise station, featuring state-of-the-art equipment adjacent to the basketball court.
As a condition of the grant, the City must file a deed restriction to ensure the property remains dedicated to public recreation and fitness. The deed restriction will prevent the sale or transfer of the property during the contract performance period and safeguard its use for the intended purpose, benefiting the community.
Attachment:
Grant Deed
1 3
9 2
SP:AC
STAFF REPORT
City of Lancaster
CC 7
10/22/2024
TN
Date: October 22, 2024
To: Mayor Parris and City Council Members
From: Patti Garibay, Director - Community Development
Subject: Approval of the Carryover Water Transfer Agreement between the City of Lancaster and the 50th District Agricultural Association Recommendations:
1. Approve the Carryover Water Transfer Agreement between the City of Lancaster and the 50th District Agricultural Association (50 th District) to transfer 192-acre feet (AF) of carryover water that the 50th District has banked since the Water Adjudication Judgement was finalized.
2. Approve an additional transfer of 32 AF of carryover water per year from the 50 th District to the City. This includes a total of 160 AF of carryover water over a five-year period.
3. Approve the Transfer Request Form, which will be submitted jointly by the City of Lancaster and 50 th District to the Antelope Valley Water Master (Water Master) for approval of the transaction. Approve any future transfer request forms submitted by the City and 50th District to complete this carryover water transfer agreement.
4. Authorize the City Manager, or his designees, to execute all documents and make any non- substantive changes necessary to complete the transaction.
G.C. Section 84308: No
Fiscal Impact:
The City will pay an application fee of $1,650 to the Water Master upon submittal of the transfer application. Funding is available in account 101-20000-5710 to pay for the application fee.
Background:
1 7
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As a participant in the Antelope Valley Ground Water Adjudication, the 50th District received 32 AF of permanent groundwater rights, which they are currently not utilizing for their site and have no plans to utilize in the future. This water has been carried over as allowed by the Water Adjudication Judgment. The Adjudication ruling allows the 50 th District to transfer carryover water rights to another State or local agency of their choosing. The process to transfer carryover water includes the submittal of an application to the Water Master, which provides details of the transfer, including the amount of water being transferred and where the water will be utilized by the recipient.
The City provides the 50 th District with support throughout the year for various events hosted at their site, including the Antelope Valley Fair, California Poppy Festival, and the Fourth of July Celebration. Staff help prepare the facility for the events, review traffic plans, and provide support on the day of the events in addition to other support activities.
The 50th District is willing to transfer the 192 AF of carryover water they currently have banked in addition to five additional years of carryover water totaling 160 AF to the City in exchange for the City’s continued support on the various events. With Council approval, staff will work with the 50 th District to submit the water transfer application and get approval for the transaction through the Water Master.
The City does not have plans to utilize the carryover water at this time but will have the water available to transfer or allocate for future projects. The City will need to submit a new point of extraction application to the Water Master once a location for use has been determined.
PG/sg
Attachments:
Ground Water Transfer Agreement
Transfer Request Form
GROUNDWATER TRANSFER AGREEMENT
This Carryover Water Transfer (“Agreement”) is entered into as of August 28, 2024 (“Effective Date”), by and between 50TH DISTRICT AGRICULTURAL ASSOCIATION, (“District”), and CITY OF LANCASTER, a California municipal corporation and charter city (“City”). District and City are individually referred to as a “Party” and collectively referred to as the “Parties”.
R E C I T A L S
A. District has 32 acre feet per year of (“AFY”) of Production Rights in the Antelope Valley Groundwater Basin pursuant to and as defined in the December 2015 Judgment in the consolidated Antelope Valley Groundwater Cases, Judicial Council Coordinated Proceeding No. 4408 (“Judgment”). District is not currently using the 32 acre feet of Production Rights allocated to it by the Judgment and the water has been carried over. The District currently has 192 AF of carryover water available.
B. Subject to the terms and conditions of this Agreement, the Parties now desire to enter into this Agreement in order to (1) provide for District’s transfer to City and City’s acceptance from District of 192 AF of Carryover water held by District as well as five additional years of carryover water, a total of 32 AFY.
NOW, THEREFORE, in consideration of the mutual covenants and obligations herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:
1.Incorporation of Recitals. The foregoing recitals are incorporated in and constitute a substantive part of this Agreement.
2.Transfer of Carryover Water. District shall transfer to City and City shall accept from District 192 AF of carryover water (the “Production Rights”), as that term is defined in the Judgment, held by District (“Production Rights Purchase”). The Production Rights Purchase shall be subject to the terms and conditions of this Section 2. As well as an additional five years of carryover water, equal to 32 AFY, 160 AF total.
(a)Purchase Consideration; Acknowledgment of Fair Market Value. In consideration of the transfer of Production Rights hereunder, City shall provide the services described in Exhibit A hereto and incorporated by this reference. The Parties acknowledge and agree that the Services constitute fair market value compensation for the Production Rights Purchase. (b)Transferred In Perpetuity. The Production Rights Purchase is a transfer of all rights, title and interest in and to the Production Rights. District shall transfer the Production Rights to City in perpetuity and shall not reserve or retain any interest in the Production Rights. (c)(a)Watermaster Approval. This transfer is subject to the provisions of the Judgment and the Watermaster’s Rules and Regulations, and also requires Watermaster approval. City shall complete and submit the Transfer Request Form, which is included as Attachment 1 to this Agreement, to the Watermaster for approval, with any and all costs incurred in seeking Watermaster approval borne by City. District shall reasonably cooperate with City to obtain Watermaster approval.
Commented [PG1]: Added this language
Commented [PG2]: Added this language
In the event that the Watermaster does not fully approve the transfer, this Agreement shall lapse and become null and void.
(d)Warranties, Representations, and Covenants of District. District hereby warrants, represents, and/or covenants to City that:
(i) Pending Claims. Other than the judgment in the consolidated Antelope Valley Groundwater Cases, Judicial Council Coordinated Proceeding No. 4408, to the best of District’s knowledge, there are no actions, suits, claims, legal proceedings, or any other proceedings affecting the Production Rights that are the subject of the Production Rights Purchase or any portion thereof, at law, or in equity before any court or governmental agency, domestic or foreign. (ii) Conflict with Other Obligation. To the best of District’s knowledge, neither the execution of this Agreement nor the performance of the obligations herein will conflict with, or breach any of the provisions of any bond, note, evidence of indebtedness, contract, lease, covenants, conditions and restrictions, or other agreement or instrument to which District or Production Rights may be bound.
(iii) Change of Situation. District shall, upon learning of any fact or condition which would cause any of the warranties and representations in the section not to be true as of the Effective Date, immediately give written notice of such fact or condition to City. (iv) Authority. District has the full right, power, and authority to grant the Production Rights to City as provided herein and to carry out District’s obligations hereunder. (v) Governmental Compliance. District has not received any notice from any governmental agency or authority alleging that it is currently in violation of any law, ordinance, rule, regulation or requirement applicable to the Production Rights. If any such notice or notices are received by District following the date this Agreement is signed by City, District shall, within ten (10) days of receipt of such notice notify City.
3.Cooperation; Further Acts. The Parties shall fully cooperate with one another and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.
4.Counterparts; Electronic Execution. This Agreement may be executed in multiple counterparts by the Parties. All counterparts so executed shall constitute one agreement binding upon the Parties, notwithstanding that the Parties are not signatories to the original or the same counterpart.
Each counterpart shall be deemed an original to this Agreement, all of which shall constitute one (1) agreement. Documents executed, scanned and transmitted electronically and electronic signatures shall be deemed original signatures for purposes of this Agreement and all matters related thereto, with such scanned and electronic signatures having the same legal effect as original signatures. This Agreement, any other document necessary for the consummation of the transaction contemplated by this Agreement may be accepted, executed or agreed to through the use of an electronic signature in accordance with the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. § 7001 et seq., and the Uniform Electronic Transactions Act, Cal. Civ. Code § 1633.1 et seq.
5.Effective Date. City shall execute this Agreement first, and District shall execute this Agreement second. The Effective Date of this Agreement shall be the date of execution by District.
6.Delegation to Chief Executive Officer. District’s Chief Executive Officer, or his/her designee, is authorized to take all actions on behalf of District in connection with any approvals, consents, or actions required of or by District under this Agreement.
7.Entire Agreement. This Agreement is freely and voluntarily entered into by the Parties after having had the opportunity to consult with their respective attorneys. The Parties, in entering into this Agreement, do not rely on any inducements, promises, or representations made by each other, their representatives, or any other person, other than those inducements, promises, and representations contained in this Agreement. This Agreement represents the entire agreement of the Parties. This Agreement may be modified only by a written amendment to this Agreement agreed to by the Parties. The Parties and the Party representatives executing this Agreement have the power and authority to execute this Agreement, and once executed by all Parties, this Agreement shall be binding upon the Parties.
8.Notice. Any notice related to this Agreement must be in writing and delivered personally or by U.S. Mail or nationally-recognized overnight service to the addresses below, which addresses may be changed at any time upon written notice:
To District:
50th District Agricultural Association
2551 W Avenue H
Lancaster, CA 93536
Attn: Dan Jacobs
(661) 948-6060 ext.101
[email protected]
To City:
City of Lancaster
44933 Fern Avenue
Lancaster, CA 93534
Attn: Patti Garibay
(661) 723-6072, Assistant Director, Community Development [email protected]
[Signatures appear on following page.]
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.
DISTRICT:
50TH DISTRICT AGRICULTURAL
ASSOCIATION
By:________________________________
Dan Jacobs, Chief Executive Officer
CITY:
CITY OF LANCASTER
By: ____________________________
Name:____________________________
Title: ____________________________
ATTEST:
_______________________________
Andrea Alexander, City Clerk
APPROVED AS TO FORM:
_______________________________
Allison E. Burns, City Attorney
Exhibit A
Services/Support Provided by the City of Lancaster to 50th District Agricultural Association For the Antelope Valley Fair:
1. Fence installed along Avenue I
2. Paving of vacant land across from Fair for parking lot
3. Tram drivers provided for the Fair
For the California Poppy Festival:
4. Maintenance preparation of the Fairgrounds for the Poppy Festival
5. Aerating turf areas before the Poppy Festival.
6. Coordinate all the painting for the Main parking lot and G-8 parking lot
7. Coordinate all the Waste Management portable restrooms
8. Removal of weeds and debris prior to the event
For the 4th of July
9. Traffic control plans freviewed for the 4th of July event
10. Public Works will deploy staff on overtime for traffic control pre, during, and post event
11. Use of delineators (cones, barricades, etc.)
General Support
12. Fill site asphalt cracks with sealer
13. Cleaning out the culvert that runs to the retention basin across the freeway
STAFF REPORT
City of Lancaster
CC 8
10/22/2024
TN
Date:October 22, 2024
To: Mayor Parris and City Council Members
From:Allison Burns, City Attorney
Subject:Ordinance Repealing Chapter 2.39 of the Lancaster Municipal Code Regarding Social Equity Commission
Recommendation:
Adopt Ordinance No. 1120 repealing Chapter 2.39 of the Lancaster Municipal Code regarding Social Equity Commission.
G.C. Section 84308: No
Fiscal Impact:
None
Background:
The Antelope Valley, and primarily the cities of Palmdale and Lancaster, share many common goals, interests and quality of life issues. Having two separate municipal commissions (the Social Equity Commission in Lancaster and the Human Rights Advisory Committee in Palmdale), each with similar goals and objectives, dilutes the efficacy and benefits that would be enhanced by a joining of these community-oriented groups. After consultation between the two cities, it was concluded that a single, reorganized body would better serve the entire region. Accordingly, this is the first step toward the administrative creation of a coordinated regional committee to promote and celebrate the diverse communities in the Antelope Valley by cultivating awareness, increasing diversity, encouraging sensitivity, promoting equity, and improving relations with various segments of the community.
At the Lancaster City Council meeting held on October 08, 2024, the City Council approved the introduction of Ordinance No. 1120, repealing Chapter 2.39 of the Lancaster Municipal Code regarding the Social Equity Commission, by the following vote: AYES: Hughes-Leslie, Malhi, 1 8
0 2
Mann, Crist, Parris; NOES: None: ABSTAIN: None; ABSENT: None. Staff recommends that the City Council proceed as recommended for the benefit of the City and region.
Attachment:
Ordinance No. 1120
A-1
4858-1827-3420v1/022283-0548
ORDINANCE NO. 1120
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
LANCASTER REPEALING CHAPTER 2.39 OF THE
LANCASTER MUNICIPAL CODE TO ELIMINATE THE
LANCASTER SOCIAL EQUITY COMMISSION
WHEREAS, the City Council is committed to cultivating and sustaining diversity; and WHEREAS, the City Council has determined that a valley-wide approach to promoting and celebrating the diverse communities in the Antelope Valley will better serve the community as a whole; and
WHEREAS, the City Council desires to facilitate a valley-wide inclusive community by cultivating awareness, increasing diversity, encouraging sensitivity, promoting equity, and improving relations with various segments of the community; and WHEREAS, the City Council has determined that elimination of the Lancaster Social Equity Commission will allow for a valley-wide approach to be implemented consistent with the foregoing recitals.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LANCASTER DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. The above recitals are true, correct, and constitute a substantive part of this Ordinance.
Section 2. Chapter 2.39 is hereby repealed in its entirety.
Section 3. If for any reason any portion of this Ordinance is found to be invalid by a court of competent jurisdiction, the balance of this Ordinance shall not be affected.
Section 4. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published and posted pursuant to the provisions of law in that regard and this Ordinance shall take effect 30 days after its final passage.
Ordinance No. 1120
2 4
7 5
9 I, Andrea Alexander, City Clerk of the City of Lancaster, do hereby certify that the foregoing ordinance was regularly introduced and placed upon its first reading on the 8 th day of October, 2024, and placed upon its second reading and adoption at a regular meeting of the City Council on the _____ day of __________________, 2024, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST: APPROVED:
ANDREA ALEXANDER R. REX PARRIS
City Clerk Mayor
City of Lancaster City of Lancaster
Ordinance No. 1120
3 4
7 5
9 STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF LANCASTER )
CERTIFICATION OF ORDINANCE
CITY COUNCIL
I, , City of Lancaster,
California, do hereby certify that this is a true and correct copy of the original Ordinance No. 1120, 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 9
10/22/2024
TN
Date:October 22, 2024
To: Mayor Parris and City Council Members
From:George N. Harris II, Senior Director/Treasurer – Admin Services Subject:Monthly Reports of Investments – August & September 2024 Recommendation:
Accept and approve the August and September 2024 Monthly Report of Investments as submitted.
G.C. Section 84308: No
Fiscal Impact:
None.
Background:
Each month, the Finance Department prepares a report listing the investments for all separate entities under the jurisdiction of the City as identified in the City’s Comprehensive Annual Financial Report.
Portfolio Recap
September 2024 August 2024 July 2024
Total Portfolio 3.45% 3.45% 3.52% Cal Class 5.26% 5.41% 5.42% Cal Class-Enhanced 5.27% 5.40% 5.43% Local Agency Investment Fund 4.58% 4.58% 4.52% Total Pooled Portfolio
Balance: $124,401,152 $126,086,293 $128,614,667
The portfolio balance decreased from July to August by $2,528,374 or 1.96%. Significant Revenues for August include $1,992,510 in Sales & Use Tax, $1,785,492 in Measure LC Sales Tax, and $5,564,648 in various reimbursements. Expenses include $11,257,986 for Operating & Miscellaneous, $884,070 in Debt Service, and $4,431,223 for Payroll & Benefits. 1 8
0 7
The portfolio balance decreased from August to September by $1,685,141 or 1.34%. Significant Revenues for August include $2,133,565 in Sales & Use Tax, $1,670,858 in Measure LC Sales Tax, and $3,995,949 in various reimbursements. Expenses include $28,643,433 for Operating & Miscellaneous and $4,645,009 for Payroll & Benefits.
The City’s temporary idle cash, those funds not immediately needed to pay current bills and not governed by bond indentures or bond resolutions, is invested by the City’s adopted Investment Policy. The City Council reviewed this policy regularly, with the latest policy adopted on February 13, 2018, by Resolution No. 18-06.
The City's cash management system is designed to accurately monitor and forecast expenditures and revenues, thus enabling the City to invest funds to the fullest extent possible within the guidelines of this Investment Policy. The City attempts to achieve the highest yield obtainable through a diversified portfolio only after meeting the criteria established for safety and liquidity in that order. The principal investment objectives of the City are:
1. Preservation of capital and protection of investment principal.
2. Maintenance of sufficient liquidity to meet anticipated cash flows.
3. Attainment of a market rate of return.
4. Diversification to avoid incurring unreasonable market risks and;
5. Compliance with the City’s Municipal Code and with all applicable City resolutions, California statutes, and Federal regulations.
The City’s portfolio is a short-term and intermediate-term fixed-income portfolio. The maximum maturity of any investment is 5 years, with consideration of anticipated cash flow requirements and known future liabilities. The City contracts with an investment advisory service (Insight Investment) to assist in the effort to maximize the returns of the City portfolio. The City’s investments include publicly traded Treasury notes, Treasury Bills, Federal Agency Investments, Time Deposits, Local Agency Investment Fund (LAIF), and California Cooperative Liquid Assets Securities System (Cal Class) under the auspices of the State Treasurer for investment.
Funds invested in LAIF and Cal Class are available within 24 hours, and other investments are available upon maturity at full face value. These investments enable the City to meet its expenditure requirements for the next six months, as required by state law.
The City’s investment procedures are governed by Sections 53600 et. seq. of the California Government Code. Additional requirements have been placed on the City’s authorized investments by the Investment Policy (a copy is available in the Finance Department or from the City Clerk), and all investments listed in the attached report adhere to these requirements.
Attachment:
A. August 2024 Report of Investments
B. September 2024 Report of Investments
STAFF REPORT
City of Lancaster
CC 10
10/22/2024
TN
Date: October 22, 2024
To: Mayor Parris and City Council Members
From: Patti Garibay, Director - Community Development
Nicole Jones, Senior Analyst – Community Development
Subject: Award of Bid for PWCP 21-023 PH2 Landscape Restoration Program and Task Order for Multi-Year Professional Services (Service Group Category 16 – Labor Compliance)
Recommendations:
1. Award Public Works Construction Project (PWCP) 21-023 PH2, Landscape Restoration Program, to Marina Landscape, Inc, of Orange, California, in the amount of $4,251,985.00 (plus a 20% contingency), to replace landscaping and irrigation systems along the Sierra Highway Bike Path from Avenue J to Avenue M and authorize the City Manager, or his designee, to sign all documents. This contract is recommended for award in accordance with California Public Contract Code Section 22038(b).
2. Find the City has complied with the California Environmental Quality Act. A Notice of Exemption was filed on October 17, 2024.
3. Authorize Task Order expenditure amount of $42,519.85, (plus a 5% contingency), for labor compliance services award to the successful firm in Multi-Year Professional Services Agreement, Service Group Category (SGC) 16 - Labor Compliance.
G.C. Section 84308: No
Fiscal Impact:
$5,147,027.85 (including 20% construction contract contingency and 5% labor compliance contingency); sufficient funds are available in Capital Improvements Budget in Project Strings CP11FW005.CONST, GL Account Numbers 10129900.8000 and 21829900.8000.
Background:
The proposed project is funded by Proposition A and the General Fund, and will replace landscaping and irrigation systems along the Sierra Highway Bike Path from Avenue J to Avenue 1 8
0 8
M. This project is Phase 2 in the Landscape Restoration Program. The Landscape Restoration Program was initiated by the PARCS Department and the City Manager’s Office and continues with the Community Development Department. It aims to create a cohesive look for landscaping throughout the City.
Per Section 2.2 of the Existing Community Workforce Agreement (“CWA”), this project is subject to the CWA by and between the City of Lancaster and Los Angeles/Orange Counties Building and Construction Trades Council, and the Signatory Craft Councils and Unions (“CWA”). The PWCP 21-023 contract documents were prepared, and the project was advertised accordingly. Per Section
2.6(b) of the CWA, Letters of Assent shall be submitted by the Contractor and each of its subcontractors, of whatever tier, forty-eight (48) hours prior to commencement of work, or within forty-eight (48) hours after the award of Project Work to that Contractor (or subcontractor), whichever occurs later.
On September 30, 2024, at 11:00 a.m., the City conducted an electronic bid opening for PWCP 21-023 via PlanetBids. Marina Landscape, Inc. was the lowest responsive bidder amongst three (3) bids. Of those three (3) bids, two (2) were deemed responsive. The bids were as follows:
Contractor City Bid Amounts Marina Landscape, Inc. Orange, CA $4,251,985.00
*Landscape Connection Group, Inc. Palmdale, CA $4,235,032.80 Rich Meier's Landscaping, Inc. Lancaster, CA $7,370,190.00 *Deemed non-responsive. Bid bond was received, but no Planet Bids Proposal was submitted.
On November 8, 2022, the City Council approved Multi-Year Professional Service Agreements with the consulting firms recommended by staff to be pre-qualified service providers through December 31, 2026. The Multi-Year Agreement permits City staff to issue Task Orders for individual projects. Multi-Year Professional Services Agreement, Service Group Category (SGC) 16 - Labor Compliance, prequalified three (3) firms, proposals will be requested, and a task order will be executed with one of these firms:
• Cumming Management Group, Inc.
• Golden State Labor Compliance, LLC
• Perceptive Enterprises, Inc.
NJ:gb
Attachment:
Vicinity Map
1 7
9 7
STAFF REPORT
City of Lancaster
PH 1
10/22/2024
TN
Date: October 22, 2024
To: Mayor Parris and City Council Members
From: George N. Harris II, Senior Director/Treasurer – Admin Services Subject: Mitigation Fee Act (AB 1600) Report for Fiscal Year 2024.
Recommendation:
Staff recommends that the City Council receive and file the Mitigation Fee Act (AB1600) Report on Development Impact Fees for the fiscal year ending June 30, 2024.
G.C. Section 84308: No
Fiscal Impact:
The acceptance of this report has no direct fiscal or budgetary impact.
Background:
In 1989, Section 6600 et seq. of the California Government Code became effective. When passed in 1987, this section was known as AB 1600. When the Legislature passed AB 1600, it added a new chapter to the California Government Code on impact fees for development projects. The chapter sets forth several requirements that local agencies must follow if they are to extract impact fees from developers to defray the cost of construction of public facilities or expanded public service obligations related to development projects. Section 66006 mandates the requirement for accounting, spending, and reporting fees and related interested earnings.
Through policies in the General Plan, the City has established the nexus between the developments and the capital improvements necessary to mitigate their effects and approved impact fees to fund the mitigation measures. The Lancaster Municipal Code section related to each fee type further implements the impact fees.
The AB 1600 report consists of a brief description of the fee type in the account or fund, the amount of the fee, the beginning and ending balance of the account or fund, the amount of fees collected, and the interest earned, if any. If there are funds in the account, then there is also a requirement to 1 7
9 7
make a finding that there is a reasonable relationship between current needs and the purposes for which they were originally collected.
To comply with AB 1600, the City Council must make a finding that there is a reasonable relationship between the current need for the fees and the purposes for which they were charged as demonstrated by programming of fees in the CIP and operational budgets. It is important that these findings be and are made to ensure a continuance of funding resources for these important programs.
As mandated by AB 1600, the City must publicize an annual report of development impact fees.
This annual report shall disclose the beginning and ending balance of each development impact fee account for the fiscal year, as well as any interest allocations and new development impact fee revenues.
Not less than 15 days after the information is made public, the City Council is required to review this information at its next regularly scheduled public meeting. On October 8th, 2024, a public notice was posted on the City’s website outlining that the annual AB 1600 report had been publicized on the City’s website and was also available for review at City Hall.
Attachment:
City of Lancaster AB 1600 Annual Report Development Impact Fees. 4 7
6 4
2023-2024
AB 1600 Annual Report
Development Impact Fees
Fiscal Year ended June 30, 2024
FINAL
For City Council consideration
October 22, 2024
CITY OF LANCASTER
AB 1600
Report
LANCASTER CITY COUNCIL
R. Rex Parris
Mayor
Marvin Crist
Vice Mayor
Lauren Hughes-Leslie
Councilmember
Raj Malhi
Councilmember
Ken Mann
Councilmember
P r e p a r ed b y:
City of Lancaster – Finance Division
44933 Fern Avenue
Lancaster, California 93534
Finance | City of Lancaster (cityoflancasterca.org)
CITY OF LANCASTER
AB 1600
Report
EXECUTIVE SUMMARY
Development Impact Fees are fees imposed by local government on new development projects to finance the acquisition, construction, and improvement of public facilities and infrastructure needed to serve those projects. California Government Code Section 66006 requires local agencies to submit a report detailing the status of their Development Impact Fee (DIF) program on an annual basis and make additional findings every fifth year. This report meets the legal requirements for Fiscal Year 2023-2024 (July 1, 2023 thru June 20, 2024).
The annual report must be made available to the public within 180 days of the close of the fiscal year and be presented to the public agency (City Council) at a regularly scheduled public meeting no sooner than 15 days after the report is made available to the public.
Section 1 – Requirements of the Mitigation Fee Act (AB
1600)
Assembly Bill (AB) 1600, commonly known as the Mitigation Fee Act, was enacted by the state of California in 1987 and created Section 66000 et. seq. of the Government Code and was amended by Assembly Bill (AB) 518, Senate Bill (SB) 1693 and most recently Assembly Bill (AB) 602. AB 1600 requires the City to report fee information annually and every fifth year.
This report summarizes the following information for each of the development impact fee programs:
A brief description of the fee program
Amount of the fee
Beginning and ending fund balances for the fee program Amount of fees collected and the interest earned during the previous year Identification of each public improvement for which fees were expended and the amount of expenditures, including the total percentage of the cost of the public improvement that was funded with fees Identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement and the public improvement remains incomplete
Description of each interfund transfer or loan made from the account, including the public improvement on which the transferred or loaned fees will be expended, and when each loan will be repaid and the rate of interest the account will receive on the loan
Identification of any refunds made once determined that sufficient monies have been collected to fund fee-related projects
For the fifth fiscal year following the first deposit into the account or fund, and every five years thereafter, the City must make the following findings with respect to any remaining funds in the fee account, regardless of whether those funds are committed:
1. Identification of the purpose to which the fees are to be allocated
2. Demonstrate a reasonable relationship between the fee and the purpose for which it is charged
3. Identification of all sources and amount of funding anticipated to complete financing in incomplete improvements identified as part of the City’s annual report
4. Identification of the approximate dates on which the funding referred to in Requirement 3 is expected to be deposited in to the appropriate account or fund
CITY OF LANCASTER
AB 1600
Report
The City of Lancaster currently collects the development impact fees listed below. This table also represents the fund that each fee is deposited into.
Fee Fund #
Street Improvement Fee(s) 414
Traffic Impact Fee 414
Traffic Signalization Fee 414
Los Angeles County Traffic Impact Fee
Drainage / Flood Control Fee 411
Urban Structure Program Fees 413
Park Development Fee 413
Administrative Offices Fee -
Residential 413
Administrative Offices Fee - Non
Residential 413
Corporate Yard Fee - Residential 413
Corporate Yard Fee - Non Residential 413
Dwelling Unit Fee (Park In Lieu) 413
Park Development Credits 203
Biological Impact Fee 412
Non- Specific (Impact) Fee 413
Other (Impact) Fee(s) 101
Section 2 – Annual Report
Development Impact Fees
In order to implement the goals, objectives, policies and specific actions of the general plan of the city, the capital improvement program and the city's annually adopted budget; to protect the health, safety and general welfare of the city's population; to mitigate impacts of new development on the level of service capacity in existing facilities; and to ensure that the burdens of financing capital improvements and operational services are borne by the development projects benefited thereby, and except as otherwise expressly set forth elsewhere in the City of Lancaster municipal code, every person constructing any new residential, commercial or industrial development shall pay to the city prior to issuance by the city of a building permit the development impact fees set forth and such other development impact fees as the city council may adopt by resolution or ordinance as necessary and appropriate from time to time.
The following section provides information necessary to meet the legal requirements for each impact fee fund. This includes a brief description of the fee, the beginning and ending balances, fee revenues collected, interest earned, and the expenditures on each project including the percentage that was funded with fees. It also includes a table summary of whether sufficient funds have been identified to complete future projects
CITY OF LANCASTER
AB 1600
Report
and the approximate date by which the construction of the public improvement will commence if sufficient funds have been identified. Any loans are also identified as well as any refunds from the fund.
CITY OF LANCASTER
AB 1600
Report
STREET IMPROVEMENT FEES (Fund 414)
Traffic Impact Fee
Description - To mitigate the additional traffic burdens created by new development to the city's arterial and collector street system, a street improvements fee will be imposed on all new development in the city to finance the costs of street improvements, including acquisition, widening and reconstruction, street landscaping, intersection improvements, and freeway interchange improvements.
Fee Schedule:
TRAFFIC IMPACT FEES
Single Family Dwellings
$2,092.00 per dwelling
unit
Multi-Family Dwellings/Mobile Homes
$1,861.00 per dwelling
unit
Commercial
$1.93 per gross bldg
SF
Industrial
$0.69 per gross bldg
SF
Traffic Signalization Fee
Description - To mitigate additional burdens created by new development to the city's traffic problems beyond the financial ability of the city to control, a traffic signalization fee will be imposed on all new development in the city to finance the costs of traffic signalization improvements.
Fee Schedule:
Residential Zones/Residential Specific Plans & Multiple Family Residential Zones
$1,314.00 per dwelling
unit
$31.00 per ADTE*
Commercial Zones $0.16 per gross bldg SF
$31.00 per ADTE*
Industrial/Manufacturing/Industrial Specific Plans $0.11 per gross bldg SF $31.00 per ADTE*
* Average Daily Trip
End
Fund 414 Balance (includes Traffic Impact & Traffic Signalization Fees):
Fund 414 / Street Improvement Fee
Beginning Fund Balance as of July 1, 2023 $ 1,754,861.00 Revenues
Fees Collected $ 490,578.03
Interest Earned $ -
Other Revenue(s)
Total Revenues $ 490,578.03
Expenses
Project Expenses $ (204,149.76)
Total Expenses $ (204,149.76)
Transfers In $ -
CITY OF LANCASTER
AB 1600
Report
Transfers Out $ -
Ending Balance as of June 30, 2024 $ 2,041,289.27
Los Angeles County Traffic Impact Fee
Applies to all projects within the area bounded by Avenue J-8, 40th Street West, Avenue L-8 and 100th Street West $1,756.00 per mile
CITY OF LANCASTER
AB 1600
Report
Drainage / Flood Control Fee (Fund 411)
Drainage Impact Fee
Description - In order to implement the goals, objectives, policies and specific actions of the Lancaster general plan and the city's master plan of drainage, and to mitigate the stormwater runoff impacts caused by new development, a drainage/flood control improvements fee will be imposed on all new development in the city pursuant to Article II of Chapter 13.04.
Fund 411 Balance:
Fund 411 Drainage / Flood Control
Fee
Beginning Fund Balance as of July 1, 2023 $ 10,957,159 Revenues
Fees Collected $ 491,545.55
Interest Earned $ -
Other Revenue(s)
Total Revenues $ 491,545.55
Expenses
Project Expenses $ (224,700.53)
Other Charges $ -
Total Expenses $ (224,700.53)
Transfers In
Transfers Out -
Ending Balance as of June 30, 2024 $ 11,224,004.02
Fee Schedule:
PLANNED LOCAL DRAINAGE FACILITIES FEES
Residential Zones/Residential Specific Plans and Multiple Family Residential Zones (including mobile home on private property) or Multi Family Zoning
$0.47 per SF of the lot or
parcel
Multi-Family Dwelling in Multiple-Family Residential or Commercial Zone (includes mobile homes in parks)
$0.47 per SF of the lot or
parcel
Residential Zones/Residential Specific Plans and Multiple Family Residential Zones (including mobile home on private property) or Multi Family
Zoning $20,452.00 per acre
Any other development in Commercial Zone
$0.47 per SF of new
impervious area
Any other development in Industrial Zone
$0.47 per SF of new
impervious area
Any other development in zone not indicated above
$0.47 per SF of new
impervious area
CITY OF LANCASTER
AB 1600
Report
URBAN STRUCTURE PROGRAM FEE(s) (Fund 413)
Park Development Fee
Description - To mitigate the impacts of new residential development on the availability of open space land and park and recreational facilities, a park development fee will be imposed on all new residential development in the city. The park development fee shall provide funds for the development of park, recreation and arts facilities.
Dwelling Unit - Park In Lieu Fee
Description - Each person who constructs any dwelling unit or units as defined, containing bedrooms in the city shall pay a fee or dedicate land in lieu of the payment of the fee and/or dedication of land as provided for in Resolution No. 85-56, as it may be amended, adopted in conjunction herewith. All fees and/or dedications pursuant to a said resolution shall be deposited or dedicated to the city.
Fee Schedule:
DWELLING UNIT FEES (PARK IN LIEU)
1 Bedroom or Studio
$556.00 per dwelling
unit
2 Bedroom or Mobile Home
$834.00 per dwelling
unit
3 Bedroom or More
$1,113.00 per dwelling
unit
Administrative Offices Fee
Description - To mitigate the burdens and increased demand for providing administrative facilities needed to serve new development and to support the well-being and general welfare of the city's residents and businesses, an administrative offices fee will be imposed on all new development in the city. The administrative offices' fee shall be used to finance land acquisition, design, construction, equipping and related capital costs for administrative facilities.
Corporate Yard Facilities Fee
Description - To mitigate the burdens and increased demand for governmental services created by new development and to provide adequate public services and support to the city's growing population. a corporate yard facilities fee will be imposed on all new development in the city. The corporate yard facilities fee shall be used to finance land acquisition, design. construction, equipping and related capital costs for municipal storage and equipment repair facilities.
CITY OF LANCASTER
AB 1600
Report
Fund 413 Balance:
Fund 413 Urban Structure Program Fee(s)
Beginning Fund Balance as of July 1, 2023 $ 1,775,189.00 Revenues
Fees Collected $ 395,971.81
Interest Earned $ -
Other Revenue(s) $ -
Total Revenues $ 395,971.81
Expenses
Project Expenses $ (105,961.40)
Other Charges
Total Expenses $ (105,961.40)
Transfers In
Transfers Out $ (42,411.57)
Ending Balance as of June 30, 2024 $ 2,022,787.84
Fee Schedule:
URBAN STRUCTURE PROGRAM FEES
Park Development Fee
$2,961.76 per dwelling
unit
Administrative Offices Fee: Residential
$71.50 per dwelling
unit
Administrative Offices Fee: Non-Residential $0.03 per SF Corporate Yard Fee: Residential
$67.52 per dwelling
unit
Corporate Yard Fee: Non-Residential $0.02 per SF
CITY OF LANCASTER
AB 1600
Report
Biological Impact Fee (Fund 412)
Description - The city council finds that new development of land within the city results in an incremental effect on biological resources, including loss of habitat and reduction in total numbers of flora and fauna on a regional basis. This chapter establishes the adoption, collection, administration, and use of a biological impact fee to mitigate the long-term incremental impact of adding new development. Further, in recognizing the regional nature of such impacts and the need for regional mitigation for them, as well as the statutory authority over biological resources granted to various federal and state agencies by law, this establishes the basis for such impact fees, conditions under which they are reduced or waived, and the situations under which such fees shall terminate.
The city council expressly finds that the biological impact fee is expressly adopted for the purpose of mitigating biological impacts on a regional basis. Therefore, the establishment of such fee shall be based on expected regional effects from new development and fees necessary to contribute to the city's "fair share" to mitigate such impacts on a regional basis. In establishing the criteria listed in Section
15.66.070 of the Citys municipal code, it is the intent of the city council that such fees may be expended either within or outside the city limits in order to achieve the goal of regional mitigation.
All biological impact fees shall be held in a separate account and shall only be expended upon an affirmative vote of a majority of the city council specifying the amount and use of such fees. Such fees shall only be expended for the following purposes:
Acquisition of Mitigation Land. Fees may be expended for the purpose of acquiring or paying a third party for the acquisition of, land for the permanent conservation of habitat or species. Such acquisition may include land outside of the city of Lancaster; however, any such lands that contain habitat or species that will compensate for the incremental loss of same within the city limits. In identifying such acquisition sites, the city may consult with the USFWS or CDFG for assistance.
Restoration of Habitat. Fees may be expended for the purpose of restoring habitat within identified permanent conservation areas. Environmental Education. Fees may be expended for the purpose of funding environmental education, provided that the city council finds that such efforts will contribute to a long-term improvement in the regional environment by increasing public awareness of the biological resources of the region. Other Uses. Fees may be expended for other uses provided that the city council finds that such use will meet the intent of this chapter. The city council expressly finds that assignment of such fees to a group with the authority to administer a regional conservation plan.
CITY OF LANCASTER
AB 1600
Report
Fund 412 Balance:
Fund 412 Biological Impact Fee
Beginning Fund Balance as of July 1, 2023
$
927,888.00
Revenues
Fees
Collected
$
119,882.88
Interest
Earned $ -
Other
Revenue(s)
Total
Revenues
$
119,882.88
Expenses
Project
Expenses
$
-
Other Charges
$
-
Total
Expenses
$
-
Transfers In
$
-
Transfers Out
$
-
Ending Balance as of June 30, 2024
$
1,047,770.88
Fee Schedule:
BIOLOGICAL IMPACT FEE
$770.00 per gross
acre
OPEN SPACE FEE
Single Family Dwellings
$350.00 per dwelling
unit
Multi-Family Dwellings/Mobile Homes
$237.00 per dwelling
unit
Commercial
$0.07 per gross bldg
1,000 SF
Office
$0.08 per gross bldg
1,000 SF
Industrial
$0.04 per gross bldg
1,000 SF
CITY OF LANCASTER
AB 1600
Report
Other (Impact) Fee (Fund 101):
Fund 101Other (Impact)
Fee
Beginning Fund Balance as of July 1, 2023 $ - Revenues
Fees
Collected
$
1,200,000.00
Interest
Earned $ -
Other
Revenue(s)
Total
Revenues
$
1,200,000.00
Expenses
Project
Expenses
$
(1,200,000.00)
Other Charges $ -
Total
Expenses
$
(1,200,000.00)
Transfers In $ -
Transfers Out $ -
Ending Balance as of June 30, 2024 $ -
Park Development Credits (Fund 203):
Fund 203 Park Development Credits
Beginning Fund Balance as of July 1, 2023
$
524,577.00
Revenues
Fees
Collected $ 98,269.79
Interest
Earned $ -
Other
Revenue(s)
Total
Revenues $ 98,269.79
CITY OF LANCASTER
AB 1600
Report
Expenses
Project
Expenses $ -
Other Charges $ -
Total
Expenses $ -
Transfers In $ -
Transfers Out $ -
Ending Balance as of June 30, 2024
$
622,846.79
Development Impact Fee Summary
CITY OF LANCASTER
AB 1600
Report
APPENDIX A
Public Notice
2023-2024
AB 1600 ANNUAL REPORT
DEVELOPMENT IMPACT FEES
CITY OF LANCASTER
AB 1600
Report
LEGAL NOTICE
CITY OF LANCASTER
NOTICE OF PUBLIC COMMENT PERIOD
AB1600 DEVELOPMENT IMPACT ANNUAL REPORT
2023-2024 FISCAL YEAR
Notice is hereby given that the City of Lancaster will hold a fifteen-day public comment period on the AB 1600 Development Impact Fee Report for the 2024 Fiscal Year, in compliance with recent changes to the Mitigation Fee Act, pursuant to California Assembly Bill 602 requirements.
PUBLIC COMMENT PERIOD: October 8 th, 2024 to
October 22nd, 2024
PLACE OF REVIEW: Lancaster City Hall
44933 Fern Avenue
Lancaster, CA 93534
All interested persons are invited to review and comment on the AB 1600 Development Impact Annual Report for the Fiscal Year 2023-2024 during the 15-day public review and comment period from October 8 th, 2024 to October 22 nd, 2024. Citizens wishing to submit written comments during the public review and comment period may mail them, postmarked no later than October 22nd, 2024, to the following:
City of Lancaster
Attention: City Clerk
44933 Fern Avenue
Lancaster, California 93534
In compliance with the Americans 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.
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.
______________________________ DATED: October 8 th, 2024
ANDREA ALEXANDER
City Clerk
City of Lancaster
-------------------------------------------------------------------------------------- ----------------------------------------
Published: October 8 th, 2024 -
Antelope Valley Press (Public Notices)
-City of Lancaster website
CITY OF LANCASTER
AB 1600
Report
APPENDIX B
Summary of Citizen Participation
Comments
(To be inserted after the conclusion of the
public review and comment period on October
22, 2024)
2023-2024
AB 1600 ANNUAL REPORT
DEVELOPMENT IMPACT FEES
STAFF REPORT
City of Lancaster
NB 1
10/22/2024
TN
Date:October 22, 2024
To: Mayor Parris and City Council Members
From:Trolis Niebla, City Manager
Allison Burns, City Attorney
Subject:Ordinance Adding Chapter 8.34 to the Lancaster Municipal Code Relating to the Sale of Energy Drinks to Persons Under the Age of 18
Recommendation:
Introduce Ordinance No. ______ adding Chapter 8.34 to the Lancaster Municipal Code relating to the sale of energy drinks to persons under 18 years of age.
G.C. Section 84308: No
Fiscal Impact:
None.
Background:
In order to protect the public health, safety and welfare of persons under the age of eighteen (18) years of age, the City Council of the City of Lancaster has determined it is necessary to prohibit the sale , distribution, giving away or offering of energy drinks to persons under the age of eighteen (18) years old. Research has shown that the consumption of energy drinks by persons under the age of eighteen years old have several negative effects. For instance, children may experience increased heart rates, anxiety, jitteriness, headache and fatigue. Furthermore, children younger than 18 years of age may have a lower tolerance for increased heart rates, anxiety, jitteriness, headache, and fatigue caused by energy drinks than those over the age of 18; and children younger than 18 years of age are more susceptible to the harmful effects of stimulants because their bodies are less developed than adults.
Staff recommends that the City Council approve the introduction of this ordinance as the protection of individuals eighteen years of age and younger outweigh the cost benefit of the sale of energy drinks.
1 8
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Attachment:
Ordinance No. _______
ORDINANCE NO.
AN ORDINANCE OF CITY COUNCIL OF THE CITY OF
LANCASTER, CALIFORNIA, ADDING CHAPTER 8.34 TO
THE LANCASTER MUNICIPAL CODE RELATING TO THE
SALE OF ENERGY DRINKS TO PERSONS UNDER 18 YEARS
OF AGE
WHEREAS, the City Council of the City of Lancaster finds the following: (1) the effects of energy drinks, when taken in excessive doses, include increased heart rates, anxiety, jitteriness, headache, and fatigue; (2) children younger than 18 years of age may have a lower tolerance for increased heart rates, anxiety, jitteriness, headache, and fatigue caused by energy drinks than those over the age of 18; and (3) children younger than 18 years of age are more susceptible to the harmful effects of stimulants because their bodies are less developed than adults; and WHEREAS, to protect public health, safety, and welfare, the City Council of the City of Lancaster has determined that it is necessary to prohibit any person from distributing, delivering, giving away, selling, or offering for sale an energy drink (a) to a person under 18 years of age and/or (b) within one thousand (1,000) feet of an elementary, junior high, or high school.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LANCASTER DOES HEREBY ORDAIN, AS FOLLOWS:
Section 1. The City Council of the City of Lancaster hereby finds and determines that the above recitals are true and correct.
Section 2. Chapter 8.34 is hereby added to the Lancaster Municipal Code to read as set forth in Exhibit “A” attached hereto.
Section 3. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is held for any reason to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional.
Section 4. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance, and shall cause the same to be published and posted pursuant to the provisions of law in that regard and this Ordinance shall take effect 30 days after adoption.
Ordinance No.
I, Andrea Alexander, of the City of Lancaster, do hereby certify that the foregoing ordinance was regularly introduced and placed upon its first reading on the __________ day of ________________, 2024, and placed upon its second reading and adoption at a regular meeting of the City Council on the ____ day of ________________, 2024, 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 }
Ordinance No.
CERTIFICATION OF ORDINANCE
CITY COUNCIL
I, ________________________________, ___________________________________ City of Lancaster, California, do hereby certify that this is a true and correct copy of the original Ordinance No. , 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”
CHAPTER 8.34
SALE OF ENERGY DRINKS TO MINORS
Sections:
8.34.010 Title.
8.34.020 Findings and purpose.
8.34.030 Definitions.
8.34.040 Sale of energy drink to person under 18 years of age prohibited.
8.34.050 Sale of energy drink near elementary, junior high, or high school prohibited.
8.34.060 Violation and penalty.
Section 8.34.010 Title.
This chapter shall be known as the City of Lancaster’s Energy Drink Regulations.
Section 8.34.020 Findings and purpose.
The City Council finds the following:
(1) The effects of energy drinks, when taken in excessive doses, include increased heart rates, anxiety, jitteriness, headache, and fatigue. (2) Children younger than 18 years of age may have a lower tolerance for increased heart rates, anxiety, jitteriness, headache, and fatigue caused by energy drinks than those over the age of 18.
(3) Children younger than 18 years of age are more susceptible to the harmful effects of stimulants because their bodies are less developed than adults.
8.34.030 Definitions.
Unless the particular provision requires, the definitions and provisions contained in this section shall govern the construction, meaning, and application of words and phrases used in this chapter.
“Energy drink” means a beverage that exceeds a caffeine content of seventy-one (71) milligrams per twelve (12) ounce serving and contains any of the following ingredients:
(1) taurine, naturally occurring or synthesized;
(2) guarana, including any extract or product of the plant or the seed of the plant;
(3) glucuronolactone; and/or
(4) any extract, herb, or tuber of any species of ginseng.
Energy drink also means a soft drink that is classified as a dietary supplement not regulated by the United States Food and Drug Administration and that contains eighty (80) or more milligrams of caffeine per eight (8) fluid ounces and generally includes a combination of methylxanthines, B vitamins and herbal ingredients.
“Person” means any individual, or corporation, partnership, association or other group or combination of individuals acting as an entity.
8.34.040 Sale of energy drink to person under 18 years of age prohibited.
It is unlawful for any person to distribute, deliver, give away, sell, or offer for sale an energy drink to a person under 18 years of age.
8.34.050 Sale of energy drink near elementary, junior high, or high school prohibited.
It is unlawful for any person to distribute, deliver, give away, sell, or offer for sale an energy drink within one thousand (1,000) feet of and abutting or adjacent to any elementary, junior high, or high school on those days that school is in session.
8.34.060 Violation and Penalty.
A. Violations of this chapter shall constitute a misdemeanor and shall be punishable in the manner provided in Section 1.12.020(A).
B. Causing, permitting, aiding, abetting, or concealing a violation of any provision of this chapter shall constitute a violation.
C. Violations of this chapter are hereby declared to be public nuisances. The city attorney or the district attorney may, in addition to or in lieu of prosecution in a criminal action hereunder, commence an action or actions, proceeding or proceedings for the abatement, removal and enjoinment thereof, in the manner provided by law, and shall take such other steps, and shall apply to such courts or court as may have jurisdiction to grant such relief as will abate or remove such violations and restrain and enjoin any person from acting contrary to the provisions of this chapter. The remedies provided by this chapter are cumulative and in addition to any other remedies available at law or in equity.
STAFF REPORT
City of Lancaster
NB 2
10/22/2024
TN
Date:October 22, 2024
To: Mayor Parris and City Council Members
From:Sydney Yeseta, Manager – Economic Development
Josh Thomas, Supervisor – Economic Development
Subject:Lancaster Eats Support Program Overview and Implementation Recommendations:
1. Authorize the City Manager or his designee to finalize and execute loan agreements for amounts up to $25,000, along with associated operating covenants, between the City of Lancaster and Lancaster Eats Support Program participants.
2. Appropriate $100,000 to account 10111000.5312 from General Fund fund balance to cover the program expenditures
3. Authorize the City Manager or his designee to execute all related documents.
G.C. Section 84308: No
Fiscal Impact:
The Lancaster Eats Support Program is designed to stimulate local economic growth by supporting small, locally owned, sit-down restaurants in Lancaster. To ensure the success and sustainability of this initiative, the City of Lancaster will allocate $100,000 from the General Fund for the program in the Fiscal Year 2024-25 budget.
Background:
The Lancaster Eats Support Program (LESP) was established to stimulate the local economy by attracting and supporting small, independent restaurants, wineries, craft breweries, eateries, and distilleries. This initiative aims to fill vacant commercial spaces with sustainable and dynamic businesses, thus enhancing the vibrancy and diversity of Lancaster's community.
Program Overview:
LESP offers forgivable loans of up to $25,000 with no interest to qualifying business owners. This 1 8
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financial assistance helps cover the costs of purchasing or upgrading restaurant equipment. The loans are forgivable over two years, encouraging long-term investment and stability in the community.
Eligibility:
Own or lease property within Lancaster's incorporated city limits.
Operate a small, locally owned sit-down restaurant (excluding fast food and fast casual establishments).
Purchase qualifying restaurant equipment.
Eligible expenses must be necessary for the operation of the business. Examples of qualified expenses include grills, dishwashers, walk-in refrigerators, deep fryers, draft systems, freezers, ranges, ovens, hoods, sinks, steam tables, salad bars, HVAC.
The loan will be structured in the form of a reimbursement for qualifying purchases. Staff will review all applications to determine eligibility and operate the program while sufficient funds last.
Forgiveness Structure:
Each year, the loan balance will be reduced by 50% for businesses that remain operational at the qualifying location. After two years of continuous business operation, the loan will be completely forgiven.
If a business relocates or closes before the two-year threshold, the remaining loan balance must be repaid by the business owner.
This program aims to reduce financial barriers for new and growing businesses, promotes long- term investment in Lancaster, and fosters a thriving, diverse community of local entrepreneurs.
JT/hb
Attachment:
Restaurant Equipment Loan Agreement and Operating Covenant Template
RESTAURANT EQUIPMENT LOAN AGREEMENT
By and Between the
CITY OF LANCASTER
and
_______________________________________________________ i
TABLE OF CONTENTS
Page
100. DEFINITIONS........................................................................................................................... 1 200. CITY ASSISTANCE ................................................................................................................. 3 201. City Equipment Loan..................................................................................................... 3 202. Disbursement of City Equipment Loan ......................................................................... 3 203. Repayment of City Equipment Loan ............................................................................. 5 204. Assumption of City Equipment Loan............................................................................ 5 205. Condition of the Site...................................................................................................... 5 300. COMPLIANCE WITH LAW; INDEMNITY ........................................................................... 6 301. Indemnity....................................................................................................................... 6 302. Compliance With Laws ............................................... Error! Bookmark not defined. 400. COVENANTS AND RESTRICTIONS..................................................................................... 8 401. Use and Operating Covenant......................................................................................... 8 402. Maintenance Covenant .................................................................................................. 8 403. Nondiscrimination Covenants ..................................................................................... 10 500. DEFAULTS AND REMEDIES............................................................................................... 11 501. Default Remedies ........................................................................................................ 11 502. Institution of Legal Actions......................................................................................... 11 503. Termination by the City............................................................................................... 11 504. Acceptance of Service of Process................................................................................ 11 505. Rights and Remedies Are Cumulative......................... Error! Bookmark not defined. 506. Inaction Not a Waiver of Default ................................................................................ 12 507. Applicable Law............................................................................................................ 12 600. GENERAL PROVISIONS....................................................................................................... 12 601. Notices, Demands and Communications Between the Parties .................................... 12 602. Enforced Delay; Extension of Times of Performance . Error! Bookmark not defined. 603. Transfers of Interest in Site or Agreement. ................................................................. 13 604. Relationship Between City and Participant ................................................................. 14 605. City Approvals and Actions ........................................................................................ 14 606. Counterparts................................................................................................................. 15 607. Integration.................................................................................................................... 15 608. Attorneys’ Fees............................................................................................................ 15 609. Titles and Captions ...................................................................................................... 15 610. Interpretation ............................................................................................................... 15 611. No Waiver.................................................................................................................... 15 612. Modifications............................................................................................................... 15 613. Severability.................................................................................................................. 15 614. Computation of Time................................................................................................... 15 615. Legal Advice................................................................ Error! Bookmark not defined. 616. Time of Essence........................................................................................................... 16 617. Cooperation. ................................................................................................................ 16 618. Conflicts of Interest ..................................................................................................... 16 619. Time for Acceptance of Agreement by City ............................................................... 16 ii
TABLE OF CONTENTS
Page
620. Non-Liability of Officials and Employees of the City ................................................ 16 621. Memorandum of Agreement ....................................................................................... 16
ATTACHMENTS
Attachment No. 1 Site Map
Attachment No. 2 Site Legal Description
Attachment No. 3 [Intentionally Omitted]
Attachment No. 4 Promissory Note
Attachment No. 5 Memorandum of Agreement
RESTAURANT EQUIPMENT LOAN AGREEMENT
THIS RESTAURANT EQUIPMENT LOAN AGREEMENT (this “Agreement”) is entered into as of _____________, 202_, by and between the CITY OF LANCASTER, a California municipal corporation and charter city (the “City”), and ____________________________________ (the “Participant”).
R E C I T A L S
The following recitals are a substantive part of this Agreement:
A. As a part of its ongoing economic development effort, the City has created and now operates the “Lancaster Eats Restaurant Equipment Loan Program” (the “Program”). The purpose of the Program is to provide new and established local restaurants with certain funding in order to facilitate the acquisition of equipment. The Program endeavors to build the synergy of various commercial areas by creating additional dining options, enhancing the atmosphere and stability of such areas with long-established and well-known local restaurants, and building the City’s sales tax base by providing local restaurants with opportunities for expansion.
B. Participant is the owner or lessee of certain real property commonly referred to as _______________________________ (the “Site”), which is depicted on the Site Map attached hereto as Attachment No. 1. The Site is more particularly described in the Site Legal Description attached hereto as Attachment No. 2. Participant currently operates or will operate a restaurant on the Site.
C. This Agreement is subject to all applicable laws, the provisions of the Program’s policies and procedures and standards, rules, regulations and policies adopted by the City.
D. The City and the Participant desire by this Agreement for the City to agree to make a loan (the “City Equipment Loan”) in order to assist the Participant in acquiring certain equipment that Participant will use at the Site as part of its restaurant operation, which is consistent with the Program’s goals and objectives. The amount of the City Equipment Loan shall be up to Twenty-Five Thousand Dollars ($25,000.00).
NOW, THEREFORE, the City and the Participant hereby agree as follows:
100. DEFINITIONS
“City Equipment Loan” means the loan from the City to the Participant, as set forth in Section 201 hereof.
“Agreement” means this Loan Agreement by and between the City and the Participant. “Best Knowledge” is defined in Section 205.1 hereof.
“City” means the City of Lancaster, California.
“County” shall mean the County of Los Angeles.
2 “Date of Agreement” means the date inserted in the first paragraph of this Agreement. “Default” means the failure of a party to perform any action or covenant required by this Agreement within the time periods provided herein following notice and opportunity to cure, as set forth in Section 501 hereof.
“Governmental Requirements” means all laws, ordinances, statutes, codes, rules, regulations, orders and decrees of the United States, the State of California, the County, the City or any other political subdivision in which the Site is located, and of any other political subdivision, agency or instrumentality exercising jurisdiction over the City, the Participant or the Site. “Hazardous Materials” means any substance, material or waste which is or becomes regulated by any local governmental authority, the State of California or the United States, including, but not limited to, any material or substance which is (i) defined as a “hazardous waste,” “extremely hazardous waste,” or “restricted hazardous waste” under Sections 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law), (ii) defined as a “hazardous substance” under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter-Presley-Tanner Hazardous Substance Account Act), (iii) defined as a “hazardous material,” “hazardous substance,” or “hazardous waste” under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) defined as a “hazardous substance” under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) petroleum, (vi) friable asbestos, (vii) polychlorinated byphenyls, (viii) methyl tert butyl ether, (ix) listed under Article 9 or defined as “hazardous” or “extremely hazardous” pursuant to Article 11 of Title 22 of the California Administrative Code, Division 4, Chapter 20, (x) designated as “hazardous substances” pursuant to Section 311 of the Clean Water Act (33 U.S.C. Section 1317), (xi) defined as a “hazardous waste” pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq. (42 U.S.C. Section 6903) or (xii) defined as “hazardous substances” pursuant to Section 101 of the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C.
Section 9601, et seq.
“Memorandum of Agreement” means the Memorandum of Agreement attached hereto as Attachment No. 5, to be executed by the parties hereto and recorded against the Site, as set forth in Section 622 hereof
“Notice” is defined in Section 601 hereof.
“Participant” means _________________________________________, and its lessees, successors and assigns.
“Program” means the City’s Lancaster Eats Restaurant Equipment Loan Program. “Program Policies” means the rules, regulations, policies and procedures that have been established by the City to govern the Program.
“Promissory Note” means the Promissory Note attached hereto as Attachment No. 4, to be executed by the Participant in favor of the City for the repayment of the City Equipment Loan, as set forth in Section 201 hereof.
3 “Site” means that certain real property depicted on the Site Map and more particularly described in the Site Legal Description.
“Site Legal Description” means the legal description of the Site which is attached hereto as Attachment No. 2 and incorporated herein by reference.
“Site Map” means the map of the Site which is attached hereto as Attachment No. 1 and incorporated herein by reference.
“Transfer” is defined in Section 603.1 hereof.
200. CITY ASSISTANCE
201. City Equipment Loan. The City hereby agrees to loan to the Participant the sum of up to Twenty-Five Thousand Dollars ($25,000.00) (the “City Equipment Loan”), subject to the terms and conditions set forth in this Agreement, and subject further to the terms and conditions set forth within the documents and instruments to be executed in connection with this transaction, including the Promissory Note, in substantially the form set forth in Attachment No. 4, and the Program Policies, all of which are incorporated herein. The City agrees to provide the City Equipment Loan in order to assist the Participant in acquiring equipment that will be used by Participant to operate a restaurant on the Site.
202. Disbursement of City Equipment Loan. The City agrees to disburse the City Equipment Loan in the manner and subject to the limitations contained in this Agreement. 202.1 Conditions Precedent to Initial Disbursement to Participant. The following are conditions precedent to the City’s obligation to make an initial disbursement of the City Equipment Loan to the Participant:
a. Execution and Delivery of Documents. Participant shall have executed and delivered to the City the Promissory Note and any other documents and instruments reasonably required to be executed and delivered by Participant. b. Request for Reimbursement. Participant shall have submitted a request for reimbursement to the City, which request shall include, at a minimum, the following: (i) a list that identifies the equipment for which the Participant seeks reimbursement; (ii) copies of documents that evidence the Participant has actually incurred the costs for which the Participant seeks disbursement/reimbursement (which documents shall include, without limitation, bills, invoices, statements, final bills of sale and/or receipts); and (iii) any other information and/or documents requested by the City. The City shall have the right to review the sufficiency and adequacy of documents and/or information submitted by the Participant in support of its request for disbursement/reimbursement and the City shall have the right to reasonably approve or disapprove of such documents and/or information.
c. Possession of Site. The City shall be satisfied that upon the disbursement the Participant or the Participant’s lessee has possession of the Site. d. Environmental. The City shall not have disapproved the environmental condition of the Site.
4 e. Permits and Approvals. The Participant shall have received all permits and land use approvals required pursuant to Section 302 hereof. In addition, Participant and each of its tenants, licensees and permittees shall have a current business license from the City. f. Compliance With Municipal Code. Participant shall be in compliance with this Agreement and the Lancaster Municipal Code. g. No Default. There shall exist no condition, event or act which would constitute an Event of Default (as hereinafter defined) hereunder or which, upon the giving of notice or the passage of time, or both, would constitute an Event of Default. 202.2 Conditions Precedent to Subsequent Disbursements to Participant. The following are conditions precedent to the City’s obligation to make any disbursement of the City Equipment Loan to the Participant subsequent to the initial disbursement:
a. Request for Reimbursement. Participant shall have submitted a request for reimbursement to the City, which request shall include, at a minimum, the following: (i) a list that identifies the equipment for which the Participant seeks reimbursement; (ii) copies of documents that evidence the Participant has actually incurred the costs for which the Participant seeks disbursement/reimbursement (which documents shall include, without limitation, bills, invoices, statements, final bills of sale and/or receipts); and (iii) any other information and/or documents requested by the City. The City shall have the right to review the sufficiency and adequacy of documents and/or information submitted by the Participant in support of its request for disbursement/reimbursement and the City shall have the right to reasonably approve or disapprove of such documents and/or information.
b. Possession of Site. The City shall be satisfied that upon the disbursement the Participant or the Participant’s lessee has possession of the Site. c. Environmental. The City shall not have disapproved the environmental condition of the Site.
d. Permits and Approvals. The Participant shall have received all permits and land use approvals required pursuant to Section 303 hereof. In addition, Participant and each of its tenants, licensees and permittees shall have a current business license from the City. e. Compliance With Municipal Code. Participant shall be in compliance with this Agreement and the Lancaster Municipal Code. f. No Default. There shall exist no condition, event or act which would constitute an Event of Default (as hereinafter defined) hereunder or which, upon the giving of notice or the passage of time, or both, would constitute an Event of Default. 202.3 Limitation on Frequency and Amount of Disbursement. The Participant shall submit no more than one (1) request for reimbursement as set forth in this Section 202 each month. If, and only if, the conditions precedent applicable to a disbursement of the City Equipment Loan have been satisfied or waived in the sole and absolute discretion of the City, the City shall within a reasonable time disburse to the Participant the amount stated in the request for reimbursement submitted pursuant to Section 202.2(b) or Section 202.3(a) (or the amount approved 5 by the City); provided, however, that the total aggregate amount of all disbursements made to the Participant pursuant to this Agreement shall not exceed Twenty-Five Thousand Dollars ($25,000.00). 203. Repayment of City Equipment Loan. As set forth in the Promissory Note, the City Equipment Loan shall be repayable in two (2) annual installments commencing on the first anniversary of the Date of this Agreement, and continuing on each anniversary thereafter until the City Equipment Loan is paid in full; provided, however, all unpaid principal shall be due and payable immediately upon the sale or other transfer of the Site which is not permitted or approved by the City pursuant to Section 603 hereof, or in the event of an uncured default of the Participant under this Agreement. The terms and conditions governing the Participant’s repayment of the City Equipment Loan are set forth in more detail in the Promissory Note. 204. Assumption of City Equipment Loan. The City Equipment Loan is made to Participant based upon Participant’s unique operational experience and expertise, and is personal to the Participant. Accordingly, neither this Agreement nor the Promissory Note shall be assignable or assumable by successors and assigns of Participant, except to permitted transferees pursuant to Section 603 hereof.
205. Condition of the Site.
205.1 Participant Disclosure. Participant hereby represents that to the best of its knowledge it is not aware of and has not received any notice or communication from any government agency having jurisdiction over the Site notifying Participant of the presence of surface or subsurface zone Hazardous Materials in, on, or under the Site, or any portion thereof. “Best knowledge,” as used herein, shall mean the actual or constructive knowledge of the Participant and its officers, directors, employees, agents and representatives, as based upon the documents and materials in the possession of Participant, and its officers, employees, agents and representatives. 205.2 Participant Precautions. Participant shall take all necessary precautions to prevent the release into the environment of any Hazardous Materials which are located in, on or under the Site. Such precautions shall include compliance with all Governmental Requirements with respect to Hazardous Materials. In addition, Participant shall install and utilize such equipment and implement and adhere to such procedures as are consistent with commercially reasonable standards as respects the disclosure, storage, use, removal and disposal of Hazardous Materials. 205.3 Indemnity. Participant agrees to indemnify, defend and hold the City harmless from and against any claim, action, suit, proceeding, loss, cost, damage, liability, deficiency, fine, penalty, punitive damage, or expense (including, without limitation, attorneys’ fees), resulting from, arising out of, or based upon (i) the release, use, generation, discharge, storage or disposal of any Hazardous Materials on, under, in or about, or the transportation of any such Hazardous Materials to or from the Site during the period that the Participant owns any portion of the Site, no matter when such claim, action, suit or proceeding is first asserted or begun and no matter how the Hazardous Materials came to be released, used, generated, discharged, stored or disposed of on, under, in or about, to or from the Site, or by whom or how they are discovered, or (ii) the violation, or alleged violation, of any statute, ordinance, order, rule, regulation, permit, judgment or license relating to the use, generation, release, discharge, storage, disposal or transportation of Hazardous Materials on, under, in or about, to or from, the portion of the Site owned by the Participant during the period that the Participant owns any portion of the Site. This indemnity shall include, without limitation, any damage, liability, fine, penalty, parallel indemnity after closing, cost 6 or expense arising from or out of any claim, action, suit or proceeding, including injunctive, mandamus, equity or action at law, for personal injury (including sickness, disease or death), tangible or intangible property damage, compensation for lost wages, business income, profits or other economic loss, damage to the natural resource or the environment, nuisance, contamination, leak, spill, release or other adverse effect on the environment. Participant shall not be required hereunder to indemnify the City for the foregoing claims to the extent caused by the negligence of, willful misconduct of, or breach of this Agreement by the City or its officers, employees, agents, representatives or volunteers.
300. COMPLIANCE WITH LAW; INDEMNITY
301. Indemnity. The Participant shall defend, indemnify, assume all responsibility for, and hold the City and its officers, employees, agents, representatives and volunteers harmless from, all claims, demands, damages, defense costs or liability of any kind or nature (including attorneys’ fees and costs) and for any damages to property or injuries to persons, including accidental death, which may be caused by or arise out of the Participant’s performance or failure to perform its obligations pursuant to this Agreement, whether such activities or performance thereof be by the Participant or by anyone employed or contracted with by the Participant and whether such damage shall accrue or be discovered before or after termination of this Agreement. The Participant shall not be required hereunder to indemnify the City for property damage, bodily injury or other claims to the extent caused by the negligence of, willful misconduct of, or breach of this Agreement by the City or its officers, employees, agents, representatives or volunteers.
The Participant shall have the obligation to defend any such action; provided, however, that this obligation to defend shall not be effective if and to the extent that Participant determines in its reasonable discretion that such action is meritorious or that the interests of the parties justify a compromise or a settlement of such action, in which case Participant shall compromise or settle such action in a way that fully protects the City from any liability or obligation.
In this regard, Participant’s obligation and right to defend shall include the right to hire (subject to written approval by the City) attorneys and experts necessary to defend, the right to process and settle reasonable claims, the right to enter into reasonable settlement agreements and pay amounts as required by the terms of such settlement, and the right to pay any judgments assessed against the Participant or the City. If the Participant defends any such action, as set forth above, it shall indemnify and hold harmless the City and its officers, employees, representatives and agents from and against any claims, losses, liabilities, or damages assessed or awarded against either of them by way of judgment, settlement, or stipulation.
302. Compliance With Laws. The Participant shall carry out all work on the Site in conformity with all applicable laws, including all applicable state labor standards, the City zoning and development standards, building, plumbing, mechanical and electrical codes, and all other provisions of the City’s Municipal Code, and all applicable disabled and handicapped access requirements, including without limitation the Americans With Disabilities Act, 42 U.S.C. Sections 12101, et seq., California Government Code Sections 4450, et seq., California Government Code Sections 11135, et seq., and the Unruh Civil Rights Act, Civil Code Sections 51, et seq. and all applicable state labor and work safety laws and regulations, including, to the extent applicable, the provisions of Labor Code Sections 1770, et seq. relating to prevailing wages as to which the City makes no representation. Participant agrees to hold the City harmless and to indemnify and defend the City from any claims arising under the provisions of Labor Code Sections 1720, et seq., including but not limited to the provisions of Labor Code Sections 1726 and 1781. Participant expressly 7 waives any rights it may have under Labor Code Sections 1726 or 1781. It shall be the sole responsibility of the Participant to determine the applicability of such laws to the development of the Property. Participant agrees to hold harmless, indemnify and defend the City from any claim or liability in connection with the requirements of this section. 205.4 Nondiscrimination in Employment. Participant certifies and agrees that all persons employed or applying for employment by it, its affiliates, subsidiaries, or holding companies, and all subcontractors, bidders and vendors, are and will be treated equally by it without regard to, or because of race, color, religion, ancestry, national origin, sex, age, pregnancy, childbirth or related medical condition, medical condition (cancer related) or physical or mental disability, and in compliance with Title VII of the Civil Rights Act of 1964, 42 U.S.C. Sections 2000, et seq., the Federal Equal Pay Act of 1963, 29 U.S.C. Section 206(d), the Age Discrimination in Employment Act of 1967, 29 U.S.C. Sections 621, et seq., the Immigration Reform and Control Act of 1986, 8 U.S.C. Sections 1324b, et seq., 42 U.S.C. Section 1981, the California Fair Employment and Housing Act, California Government Code Sections 12900, et seq., the California Equal Pay Law, California Labor Code Sections 1197.5, California Government Code Section 11135, the Americans with Disabilities Act, 42 U.S.C. Sections 12101, et seq., and all other anti-discrimination laws and regulations of the United States and the State of California as they now exist or may hereafter be amended. Participant shall allow representatives of the City access to its employment records related to this Agreement during regular business hours to verify compliance with these provisions when so requested by the City.
205.5 Levine Act Disclosure. California Government Code section 84308 (“Levine Act”) requires a party to a contract other than competitively bid, labor, or personal employment contract, to disclose any contribution of more than $250 that the party (or their agent) has made to a member of the City Council or any other officer of the City as defined in the Levine Act within the prior 12 months. The Levine Act also prohibits for 12 months following a final decision, a party (or their agent) from making a contribution of more than $250 to any member of the City Council or any other officer as defined in the Levine Act who may participate in the making of this Agreement.
A. By its signature on this Agreement, [COMPANY NAME] represents and warrants [select one]:
□ Neither [COMPANY NAME] nor any agent acting on behalf of [COMPANY NAME] has, within the 12 months preceding the commencement of negotiations of this Agreement, made any political contribution of more than $250 to any member of the City Council or any other officer as defined in the Levine Act who may have participated in the making of this Agreement.
OR
□ [COMPANY NAME] (or an agent acting on behalf of [COMPANY NAME]) has made a political contribution of more than $250 to:
Identify the person(s) or agent(s) who made the contribution:
____________________
____________________
____________________
8 Identify the City officer(s) who received the contribution:
____________________
____________________
____________________
B. By its signature on this Agreement, [COMPANY NAME] further represents and warrants [select one]:
□ Neither [COMPANY NAME] nor any agent or principal acting on behalf of [COMPANY NAME] intends, within the 12 months following the execution of this Agreement, to make any political contribution of more than $250 to any member of the City Council or any other officer as defined in the Levine Act who may have participated in the making of this Agreement.
OR
□ [COMPANY NAME] (or an agent acting on behalf of [COMPANY NAME] ) intends to make a political contribution of more than $250 to:
Identify the person(s) or agent(s) who will make the contribution:
____________________
____________________
____________________
Identify the City officer(s) who will receive the contribution:
____________________
____________________
____________________
400. COVENANTS AND RESTRICTIONS
401. Use and Operating Covenant. For a period of two (2) years, commencing upon the Date of Agreement (the “Operating Covenant Period”), the Participant shall operate (or shall cause its lessees, successors or assigns to operate) a restaurant on the Site on a continuous basis, in compliance with all Governmental Requirements and applicable permits and land use approvals. No other uses may be conducted on the Site during the Operating Covenant Period without the prior written approval of the City, which approval may be granted, refused, or conditioned in the sole and absolute discretion of the City.
402. Maintenance Covenant. During the Operating Covenant Period, Participant shall maintain (or shall cause its lessees, successors or assigns to maintain) the Site in accordance with the Maintenance Standards, as hereinafter defined. Said improvements shall include, but not be limited to, buildings, sidewalks, pedestrian lighting, landscaping, irrigation of landscaping, architectural elements identifying the Site and any and all other improvements on the Site. To accomplish the maintenance, Participant shall either staff or contract with and hire licensed and qualified personnel to perform the maintenance work, including the provision of labor, equipment, materials, support facilities, and any and all other items necessary to comply with the requirements of this Section 402. 9 205.6 Maintenance Standards. The following standards (“Maintenance Standards”) shall be complied with by Participant and its maintenance staff, contractors or subcontractors:
e.Landscape maintenance shall include, but not be limited to:
watering/irrigation; fertilization; mowing; edging; trimming of grass; tree and shrub pruning; trimming and shaping of trees and shrubs to maintain a healthy, natural appearance and safe road conditions and visibility, and irrigation coverage; replacement, as needed, of all plant materials; control of weeds in all planters, shrubs, lawns, ground covers, or other planted areas; and staking for support of trees.
f.Clean up maintenance shall include, but not be limited to:
maintenance of all sidewalks, paths and other paved areas in clean and weed free condition; maintenance of all such areas clear of dirt, mud, trash, debris or other matter which is unsafe or unsightly; removal of all trash, litter and other debris from improvements and landscaping prior to mowing; clearance and cleaning of all areas maintained prior to the end of the day on which the maintenance operations are performed to ensure that all cuttings, weeds, leaves and other debris are properly disposed of by maintenance workers.
g.All maintenance work shall conform to all applicable federal and state Occupational Safety and Health Act standards and regulations for the performance of maintenance. h.Any and all chemicals, unhealthful substances, and pesticides used in and during maintenance shall be applied in strict accordance with all governing regulations.
Precautionary measures shall be employed recognizing that all areas are open to public access. i.The Site shall be maintained in conformance and in compliance with reasonable commercial development maintenance standards for similar projects, including but not limited to: painting and cleaning of all exterior surfaces and other exterior facades comprising all private improvements and public improvements to the curbline. j.The Site shall be maintained as required by this Section 402 in good condition and in accordance with the custom and practice generally applicable to comparable businesses located in Southern California.
205.7 Failure to Maintain Site. In the event Participant does not maintain the Site in the manner set forth herein and in accordance with the Maintenance Standards, the City shall have the right to maintain such private and/or public improvements, or to contract for the correction of such deficiencies, after written notice to Participant. However, prior to taking any such action, the City agrees to notify Participant in writing if the condition of said improvements does not meet with the Maintenance Standards and to specify the deficiencies and the actions required to be taken by Participant to cure the deficiencies. Upon notification of any maintenance deficiency, Participant shall have thirty (30) days within which to correct, remedy or cure the deficiency. If the written notification states the problem is urgent relating to the public health and safety of the City, then then Participant shall have forty eight (48) hours to rectify the problem.
In the event Participant fails to correct, remedy, or cure or has not commenced correcting, remedying or curing such maintenance deficiency after notification and after the period of correction has lapsed, then the City shall have the right to maintain such improvements. Participant 10 agrees to pay the City such charges and costs. Participant acknowledges and agrees the City may also pursue any and all other remedies available in law or equity. Participant shall be liable for any and all attorneys’ fees, and other legal costs or fees incurred in collecting said maintenance costs. 206. Nondiscrimination Covenants. The Participant covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Site, nor shall the Participant or any person claiming under or through it or them establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Site.
The foregoing covenants shall run with the land.
The Participant shall refrain from restricting the rental, sale or lease of the Site on the basis of race, color, creed, religion, sex, marital status, handicap, national origin or ancestry of any person.
All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses:
e.In deeds: “The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land.”
f.In leases: “The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions:
“That there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased.”
g.In contracts: “There shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises which are the 11 subject of this Agreement, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land.” 500. DEFAULTS AND REMEDIES
501. Default Remedies. Subject to the extensions of time set forth in Section 602 of this Agreement, failure by either party to perform any action or covenant required by this Agreement within the time periods provided herein following notice and failure to cure as described hereafter, constitutes a “Default” under this Agreement. A party claiming a Default shall give written notice of Default to the other party specifying the Default complained of. Except as otherwise expressly provided in this Agreement, the claimant shall not institute any proceeding against any other party, and the other party shall not be in Default if such party within thirty (30) days from receipt of such notice has cured such Default, or if such Default is not reasonably capable of being cured within thirty (30) days, the party shall have immediately, with due diligence, commenced to cure, correct or remedy such failure or delay and shall have completed such cure, correction or remedy with diligence.
502. Institution of Legal Actions. Except as otherwise expressly provided for herein, the Participant’s sole remedy for the City’s breach of this Agreement shall be to institute an action at law or equity to seek specific performance of the terms of this Agreement. In no event shall the City’s obligation to make disbursements of the City Equipment Loan to the Participant be accelerated or made payable in a lump sum. The Participant shall not be entitled to recover damages for any Default of the City hereunder. Such legal actions must be instituted in the Superior Court of the County of Los Angeles, State of California, in an appropriate court in that county, or in the United States District Court for the Central District of California. 503. Termination by the City. In the event that the Participant is in Default of this Agreement and fails to cure such default within the time set forth in Section 501 hereof, this Agreement and any rights of the Participant or any assignee or transferee with respect to or arising out of the Agreement or the Site, shall, at the option of the City, be terminated by the City by written notice thereof to the Participant. From the date of the Notice of termination of this Agreement by the City to the Participant and thereafter this Agreement shall be deemed terminated, the City shall have no obligations to make any further disbursements of the City Equipment Loan pursuant to this Agreement or the Promissory Note, and there shall be no further rights or obligations between the parties, except that such termination shall accelerate the Participant’s obligation to repay any outstanding amount upon the Promissory Note in accordance with the terms thereof. 504. Acceptance of Service of Process. In the event that any legal action is commenced by the Participant against the City, service of process on the City shall be made by personal service upon the City Clerk of the City or in such other manner as may be provided by law. In the event that any legal action is commenced by the City against the Participant, service of process on the Participant shall be made by personal service upon any officer of Participant or in such other manner as may be provided by law.
505. Rights and Remedies Are Cumulative. Except as otherwise expressly stated in this Agreement, the rights and remedies of the parties are cumulative, and the exercise by either party of 12 one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 207. Inaction Not a Waiver of Default. Any failures or delays by either party in asserting any of its rights and remedies as to any Default shall not operate as a waiver of any Default or of any such rights or remedies, or deprive either such party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies.
208. Applicable Law. The laws of the State of California shall govern the interpretation and enforcement of this Agreement.
600. GENERAL PROVISIONS
601. Notices, Demands and Communications Between the Parties. Any approval, disapproval, demand, document or other notice (“Notice”) which either party may desire to give to the other party under this Agreement must be in writing and may be given by any commercially acceptable means to the party to whom the Notice is directed at the address of the party as set forth below, or at any other address as that party may later designate by Notice.
To City: City of Lancaster
44933 N. Fern Avenue
Lancaster, California 93534
Attention: Economic Development
Copy to: Stradling Yocca Carlson & Rauth LLP
660 Newport Center Drive, Suite 1600
Newport Beach, California 92660
Attention: Allison E. Burns
To Participant: ___________________________________
___________________________________
___________________________________
Attention: ___________________________________
Any written notice, demand or communication shall be deemed received immediately if delivered by hand and shall be deemed received on the third day from the date it is postmarked if delivered by registered or certified mail.
602. Enforced Delay; Extension of Times of Performance. In addition to specific provisions of this Agreement, performance by either party hereunder shall not be deemed to be in Default, and all performance and other dates specified in this Agreement shall be extended, where delays or Defaults are due to causes beyond the control or without the fault of the party claiming an extension of time to perform, which may include without limitation the following: war; insurrection; strikes; lockouts; riots; floods; earthquakes; fires; casualties; acts of God; acts of the public enemy; epidemics; quarantine restrictions; freight embargoes; lack of transportation; governmental restrictions or priority; litigation; unusually severe weather; inability to secure necessary labor, materials or tools; delays of any contractor, subcontractor or supplier; acts or omissions of the other party; acts or failures to act of the City or any other public or governmental agency or entity (other 13 than the acts or failures to act of the City which shall not excuse performance by the City); or any other causes beyond the control or without the fault of the party claiming an extension of time to perform. Notwithstanding anything to the contrary in this Agreement, an extension of time for any such cause shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause, if notice by the party claiming such extension is sent to the other party within thirty (30) days of the commencement of the cause. Times of performance under this Agreement may also be extended in writing by the mutual agreement of City and Participant. 209. Transfers of Interest in Site or Agreement.
209.1 Prohibition. The qualifications and identity of the Participant are of particular concern to the City. Accordingly, for the period commencing upon the date of this Agreement and until the expiration of the use covenants which are set forth in Section 401 hereof, except for those Permitted Transfers set forth in Section 603.2 hereof, no voluntary or involuntary successor in interest of the Participant shall acquire any rights or powers under this Agreement, nor shall the Participant make any total or partial sale, transfer, conveyance, assignment, subdivision, refinancing or lease of the whole or any part of the Site, (referred to herein as a “Transfer”), without the prior written approval of the City, except as expressly set forth herein. Any total or partial sale, transfer, conveyance, assignment, subdivision, refinancing or lease of the whole or any part of the Site will entitle the City to its right of termination of this Agreement, the termination of the obligation to disburse the City Equipment Loan, and the acceleration of the repayment of the Promissory Note.
209.2 Permitted Transfers. Notwithstanding any other provision of this Agreement to the contrary, City approval of an assignment of this Agreement or conveyance of the Site, or any part thereof, shall not be required in connection with any of the following:
e.Any transfers to an entity or entities in which the Participant retains a minimum of fifty-one percent (51%) of the ownership or beneficial interest and retains management and control of the transferee entity or entities.
f.The conveyance or dedication of any portion of the Site to the City or other appropriate governmental agency.
g.Any requested assignment for financing purposes.
h.Any lease of the Site, or any portion thereof, to an entity or entities in the ordinary course of the Participant’s business; provided, however, that such lease incorporates by reference and is expressly made subject to applicable provisions of this Agreement as required by Section 603.4.
In the event of an assignment by Participant under subparagraph (a) above not requiring the City’s prior approval, Participant nevertheless agrees that at least thirty (30) days prior to such assignment it shall give written notice to City of such assignment and satisfactory evidence that the assignee has assumed the obligations of this Agreement. 209.3 City Consideration of Requested Transfer. The City agrees that it will not unreasonably withhold approval of a request for approval of a Transfer made pursuant to this Section 603, provided the Participant delivers written notice to the City requesting such approval. 14 Such notice shall be accompanied by evidence regarding the proposed transferee’s operational qualifications and experience, and its financial commitments and resources, in sufficient detail to enable the City to evaluate the proposed assignee or purchaser pursuant to the criteria set forth in this Section 603 and as reasonably determined by the City. The City may, in considering any such request, take into consideration such factors as the expenses and financial condition of the transferee, and similar factors. The City agrees not to unreasonably withhold its approval of any such requested Transfer, taking into consideration the foregoing factors. An assignment and assumption agreement in form satisfactory to the City’s legal counsel shall also be required for all proposed assignments.
Within thirty (30) days after the receipt of the Participant’s written notice requesting City approval of an assignment or transfer pursuant to this Section 603, the City shall either approve or disapprove such proposed assignment or shall respond in writing by stating what further information, if any, the City reasonably requires in order to determine the request complete and determine whether or not to grant the requested approval. Upon receipt of such a response, the Participant shall promptly furnish to the City such further information as may be reasonably requested. 209.4 Lessees, Successors and Assigns. All of the terms, covenants and conditions of this Agreement shall be binding upon the Participant and its permitted lessees, successors and assigns. Whenever the term “Participant” is used in this Agreement, such term shall include any other permitted lessees, successors and assigns as herein provided. In the event the Participant leases the Site, or any portion thereof, to any other person or entity, the Participant agrees to and shall include a provision in such lease agreement incorporating by reference all applicable provisions of this Agreement, including, at a minimum, the covenants and restrictions set forth in Section 400. 209.5 Assignment by City. The City may assign or transfer any of its rights or obligations under this Agreement with the approval of the Participant, which approval shall not be unreasonably withheld; provided, however, that the City may assign or transfer any of its interests hereunder to any public or private entity controlled by the City at any time without the consent of the Participant.
203. Relationship Between City and Participant. It is hereby acknowledged that the relationship between the City and the Participant is not that of a partnership or joint venture and that the City and the Participant shall not be deemed or construed for any purpose to be the agent of the other. Accordingly, except as expressly provided herein or in the Attachments hereto, the City shall have no rights, powers, duties or obligations with respect to the development, operation, maintenance or management of the Site.
204. City Approvals and Actions. Where an approval or submission is required under this Agreement, such approval or submission shall be valid for purposes of this Agreement only if made in writing. Where this Agreement requires an approval or consent of the City, such approval may be given on behalf of the City by the City Manager or his or her designee. The City Manager or his or her designee is hereby authorized to take such actions as may be necessary or appropriate to implement this Agreement, including without limitation the execution of such documents or agreements as may be contemplated by this Agreement. The City Manager is authorized to execute amendments of this Agreement so long as such amendments do not materially increase the costs to be incurred by the City hereunder or materially decrease the revenues to be received by the City hereunder.
15 210. Counterparts. This Agreement may be signed in multiple counterparts which, when signed by all parties, shall constitute a binding agreement. This Agreement is executed in three (3) originals, each of which is deemed to be an original.
211. Integration. This Agreement contains the entire understanding between the parties relating to the transaction contemplated by this Agreement. All prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged in this Agreement and shall be of no further force or effect. Each party is entering this Agreement based solely upon the representations set forth herein and upon each party’s own independent investigation of any and all facts such party deems material.
212. Attorneys’ Fees. In any action between the parties to interpret, enforce, reform, modify, rescind, or otherwise in connection with any of the terms or provisions of this Agreement, the prevailing party in the action shall be entitled, in addition to damages, injunctive relief, or any other relief to which it might be entitled, reasonable costs and expenses including, without limitation, litigation costs and reasonable attorneys’ fees.
213. Titles and Captions. Titles and captions are for convenience of reference only and do not define, describe or limit the scope or the intent of this Agreement or of any of its terms.
Reference to section numbers are to sections in this Agreement, unless expressly stated otherwise. 214. Interpretation. As used in this Agreement, masculine, feminine or neuter gender and the singular or plural number shall each be deemed to include the others where and when the context so dictates. The word “including” shall be construed as if followed by the words “without limitation.” This Agreement shall be interpreted as though prepared jointly by both parties. 215. No Waiver. A waiver by either party of a breach of any of the covenants, conditions or agreements under this Agreement to be performed by the other party shall not be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions or conditions of this Agreement.
216. Modifications. Any alteration, change or modification of or to this Agreement, in order to become effective, shall be made in writing and in each instance signed on behalf of each party.
217. Severability. If any term, provision, condition or covenant of this Agreement or its application to any party or circumstances shall be held, to any extent, invalid or unenforceable, the remainder of this Agreement, or the application of the term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected, and shall be valid and enforceable to the fullest extent permitted by law. 218. Computation of Time. The time in which any act is to be done under this Agreement is computed by excluding the first day, and including the last day, unless the last day is a holiday or Saturday or Sunday, and then that day is also excluded. The term “holiday” shall mean all holidays as specified in Section 6700 and 6701 of the California Government Code. If any act is to be done by a particular time during a day, that time shall be Pacific Time Zone time. 219. Legal Advice. Each party represents and warrants to the other the following: they have carefully read this Agreement, and in signing this Agreement, they do so with full knowledge of 16 any right which they may have; they have received independent legal advice from their respective legal counsel as to the matters set forth in this Agreement, or have knowingly chosen not to consult legal counsel as to the matters set forth in this Agreement; and, they have freely signed this Agreement without any reliance upon any agreement, promise, statement or representation by or on behalf of the other party, or their respective agents, employees, or attorneys, except as specifically set forth in this Agreement, and without duress or coercion, whether economic or otherwise. 220. Time of Essence. Time is expressly made of the essence with respect to the performance by the City and the Participant of each and every obligation and condition of this Agreement.
221. Cooperation. Each party agrees to cooperate with the other in this transaction and, in that regard, to sign any and all documents which may be reasonably necessary, helpful, or appropriate to carry out the purposes and intent of this Agreement including, but not limited to, releases or additional agreements.
222. Conflicts of Interest. No member, official or employee of the City shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official or employee participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interested.
223. Time for Acceptance of Agreement by City. This Agreement, when executed by the Participant and delivered to the City, must be authorized, executed and delivered by the City on or before thirty (30) days after signing and delivery of this Agreement by the Participant or this Agreement shall be void, except to the extent that the Participant shall consent in writing to a further extension of time for the authorization, execution and delivery of this Agreement. 224. Non-Liability of Officials and Employees of the City. No member, official or employee of the City shall be personally liable to the Participant, or any successor in interest, in the event of any Default or breach by the City or for any amount which may become due to the Participant or its successors, or on any obligations under the terms of this Agreement. Participant hereby waives and releases any claim it may have against the members, officials or employees of the City with respect to any Default or breach by the City or for any amount which may become due to the Participant or its successors, or on any obligations under the terms of this Agreement. The Participant makes such release with full knowledge of Civil Code Section 1542 and hereby waives any and all rights thereunder to the extent of this release, if such Section 1542 is applicable.
Section 1542 of the Civil Code provides as follows:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE
TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.”
225. Memorandum of Agreement. The Memorandum of Agreement shall be recorded in the records of the Los Angeles County Recorder’s Office upon the Date of Agreement and prior and as a condition precedent to any disbursement of the City Equipment Loan. Following the termination of the Operating Period, the parties shall cooperate in removal of the Memorandum of Agreement from the records of the Los Angeles County Recorder’s Office. 17 IN WITNESS WHEREOF, the City and the Participant have executed this Agreement as of the date set forth above.
CITY:
CITY OF LANCASTER,
a California municipal corporation and charter city
By:
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
PARTICIPANT:
________________________________________
By:
Its:
ATTACHMENT NO. 1-1
ATTACHMENT NO. 1
SITE MAP
[To Be Inserted]
ATTACHMENT NO. 2-1
ATTACHMENT NO. 2
SITE LEGAL DESCRIPTION
[To Be Inserted]
ATTACHMENT NO. 3-1
ATTACHMENT NO. 3
[INTENTIONALLY OMITTED]
ATTACHMENT NO. 4-1
ATTACHMENT NO. 4
PROMISSORY NOTE
$25,000.00 , 202_
Lancaster, California
FOR VALUE RECEIVED, _______________________________, a
___________________________ (“Maker”), promises to pay to the CITY OF LANCASTER, a California municipal corporation and charter city (the “City”), or order at the City’s office at 44933 North Fern Avenue, Lancaster, California 93534, or such other place as the City may designate in writing, the principal sum of Twenty-Five Thousand Dollars ($25,000.00), or so much of such sum which has been disbursed by the City to or on behalf of the Maker (the “Note Amount”), in currency of the United States of America, which at the time of payment is lawful for the payment of public and private debts.
1. Agreement. This Promissory Note (the “Note”) is given in accordance with that certain Restaurant Equipment Loan Agreement executed by the City and Maker, dated as of __________, 202__ (the “Agreement”). The rights and obligations of the Maker and the City under this Note shall be governed by the Agreement and by the additional terms set forth in this Note.
2. Disbursement of Note Amount. The Note Amount shall be payable to or on behalf of the Maker as set forth in Section 202 of the Agreement.
3. Interest. This Note shall bear interest at a rate equal to the City’s weighted average portfolio yield in effect as of the date of the Agreement (i.e., the date specified in Section 1), adjusted annually.
4. Repayment of Note Amount. Note Amount shall be repayable in two (2) equal annual installments commencing on the first anniversary of the Date of the Agreement, and continuing on each anniversary thereafter until the Note Amount is paid in full; provided, however, that all unpaid principal shall be due and payable in accordance with the provisions of paragraph 5 hereof. Notwithstanding the foregoing, and provided that Maker is not (and has not at any point been) in default under this Note or the Agreement, each annual installment of principal and accrued interest shall be forgiven as and when such installment is due.
5. Acceleration and Other Remedies. Upon: (a) the occurrence of an Event of Default as defined in the Agreement, or (b) Participant selling, contracting to sell, giving an option to purchase, conveying, leasing, further encumbering, mortgaging, assigning or alienating the Site, whether directly or indirectly whether voluntarily or involuntarily or by operation of law, or any interest in the Site, or suffering its title, or any interest in the Site to be divested, whether voluntarily or involuntarily, without the consent of the City as set forth in Section 603 of the Agreement, City may, at City’s option, declare the outstanding principal amount of this Note and other charges hereunder to be due and payable immediately, and upon such declaration, such sums shall immediately become and be due and payable without demand or notice. All costs of collection, including, but not limited to, reasonable attorneys’ fees and all expenses incurred in connection with protection of, or realization on, the security for this Note, may be added to the principal hereunder, ATTACHMENT NO. 4-2
and shall accrue interest as provided herein. City shall at all times have the right to proceed against any portion of the security for this Note in such order and in such manner as such City may consider appropriate, without waiving any rights with respect to any of the security. Any delay or omission on the part of the City in exercising any right hereunder or under the Agreement shall not operate as a waiver of such right, or of any other right. No single or partial exercise of any right or remedy hereunder or under the Agreement or any other document or agreement shall preclude other or further exercises thereof, or the exercise of any other right or remedy. The acceptance of payment of any sum payable hereunder, or part thereof, after the due date of such payment shall not be a waiver of City’s right to either require prompt payment when due of all other sums payable hereunder or to declare an Event of Default for failure to make prompt or complete payment.
6. Termination. The City’s obligations to make any further disbursements under this Note shall be terminated in the event that the Agreement is terminated. Such termination shall not, however, modify or affect the Maker’s obligation to repay any amounts then due under this Note.
7. Waivers
(a) Maker expressly agrees that this Note or any payment hereunder may be extended from time to time at the City’s sole discretion and that the City may accept security in consideration for any such extension or release any security for this Note at its sole discretion all without in any way affecting the liability of Maker.
(b) No extension of time for payment of this Note made by agreement by the City with any person now or hereafter liable for the payment of this Note shall operate to release, discharge, modify, change or affect the original liability of Maker under this Note, either in whole or in part.
(c) The obligations of Maker under this Note shall be absolute and Maker waives any and all rights to offset, deduct or withhold any payments or charges due under this Note for any reasons whatsoever.
8. Attorneys’ Fees and Costs. Maker agrees that if any amounts due under this Note are not paid when due, to pay in addition, all costs and expenses of collection and reasonable attorneys’ fees paid or incurred in connection with the collection or enforcement of this Note, whether or not suit is filed.
9. Amendments and Modifications. This Note may not be changed orally, but only by an amendment in writing signed by Maker and by the City.
10. City May Assign. City may, at its option, assign its right to receive payment under this Note without necessity of obtaining the consent of Maker.
11. Maker Assignment Prohibited. Except in connection with transfers permitted pursuant to Section 603 of the Agreement, in no event shall Maker assign or transfer any portion of this Note without the prior express written consent of the City, which consent may be given or withheld in the City’s sole and absolute discretion.
12. Terms. Any terms not separately defined herein shall have the same meanings as set forth in the Agreement.
ATTACHMENT NO. 4-3
13. Enforcement. The obligations of Maker hereunder shall be in addition to and shall not limit or in any way affect the obligations of the Participant under the Agreement. This Note is independent of the obligations of the Maker under the Agreement.
14. Successors and Assigns. Whenever “City” is referred to in this Note, such reference shall be deemed to include the City of Lancaster and its successors and assigns, including, without limitation, any subsequent assignee or holder of this Note. All covenants, provisions and agreements by or on behalf of Participant, and on behalf of any makers, endorsers, guarantors and sureties hereof which are contained herein shall inure to the benefit of the City and City’s successors and assigns.
15. Miscellaneous. Time is of the essence hereof. This Note shall be governed by and construed under the laws of the State of California except to the extent Federal laws preempt the laws of the State of California. Participant irrevocably and unconditionally submits to the jurisdiction of the Superior Court of the State of California for the County of Los Angeles or the United States District Court of the Central District of California, as City hereof may deem appropriate, in connection with any legal action or proceeding arising out of or relating to this Note. Participant also waives any objection regarding personal or in rem jurisdiction or venue.
MAKER:
________________________________________
By:
Its:
ATTACHMENT NO. 5-1
ATTACHMENT NO. 5
MEMORANDUM OF AGREEMENT
RECORDING REQUESTED BY)
AND WHEN RECORDED MAIL TO:)
)
City of Lancaster )
44933 N. Fern Avenue )
Lancaster, California 93534 )
Attention: City Manager )
)
This document is exempt from the payment of a
recording fee pursuant to Government Code
Section 6103.
MEMORANDUM OF AGREEMENT
THIS MEMORANDUM OF AGREEMENT (“Memorandum”), dated for identification purposes as of , 202__, is entered into by and between the CITY OF LANCASTER, a California municipal corporation and charter city (“City”), and ______________________________, a ___________________________ (“Participant”).
1. Restaurant Equipment Loan Agreement. City and Participant have entered into a Restaurant Equipment Loan Agreement (“Agreement”), dated as of __________________, 202__ which provides for Participant’s acquisition and use of certain equipment as part of its restaurant operation located in the City of Lancaster, County of Los Angeles, State of California, as more fully described in Exhibit “A” attached hereto and incorporated herein by this reference (the “Site”). The Agreement is available for public inspection and copying at the office of the City of Lancaster, 44933 N. Fern Avenue, Lancaster, California. All of the terms, conditions, provisions and covenants of the Agreement are incorporated in this Memorandum by reference as though written out at length herein, and the Agreement and this Memorandum shall be deemed to constitute a single instrument or document.
2. Purpose of Memorandum. This Memorandum is prepared for recordation purposes only, and in no way modifies the terms, conditions, provisions and covenants of the Agreement. In the event of any inconsistency between the terms, conditions, provisions and covenants of this Memorandum and the Agreement, the terms, conditions, provisions and covenants of the Agreement shall prevail.
ATTACHMENT NO. 5-2
The parties have executed this Memorandum of Agreement as of the dates set forth above.
CITY:
CITY OF LANCASTER,
a California municipal corporation and charter city
By:
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
PARTICIPANT:
________________________________________
By:
Its:
EXHIBIT “A”
LEGAL DESCRIPTION
[To Be Inserted]