Montclair City Council
May 1, 2023

ATTACHMENT NO. 1

LEGAL DESCRIPTION
That certain real property located in the State of California, County of San Bernardino, City of Montclair, and described as follows:

APNS:
1009-273-19-0000
Tract 5156 Lot 159
1010-021-03-0000
Tract 3932 Lot 43
1009-273-25-0000
Tract 5156 Lot 165
MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 159 of 204 Attachment No. 2

ATTACHMENT NO. 2
LEASE
By and Between

THE MONTCLAIR HOUSING AUTHORITY
and

MONTCLAIR HOUSING CORPORATION
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LEASE
THIS LEASE (the “Lease”) is made as of May 2, 2023, by and between the MONTCLAIR HOUSING AUTHORITY, a public body, corporate and politic (the “Authority” or “Lessor”), and MONTCLAIR HOUSING CORPORATION, a California nonprofit public benefit corporation (the “Operator” or “Lessee”).

SECTION 1. SUBJECT OF LEASE.

1.1 Purpose of the Lease. The purpose of this Lease is to effectuate the Affordable Housing Agreement by and among the Authority, the City of Montclair, a municipal corporation (the “City”), and the Operator dated May 2, 2023 (the “Agreement”), by providing for the lease of the “Properties” (as hereinafter defined) within the Redevelopment Project area to Lessee and the sublease of the Properties to Low Income Persons. The Agreement, which is available in the offices of the Authority as a public record, is incorporated herein by reference and made a part hereof as though fully set forth herein.

1.2 The Redevelopment Plan. As of the “Commencement Date” (as hereinafter defined), the “Properties” (as hereinafter defined) is in compliance with the Redevelopment Plan for the Redevelopment Project.

SECTION 2. LEASE OF THE PROPERTIES.

The Authority, for and in consideration of the rents, covenants and agreements hereinafter reserved and contained on the part of Lessee to be paid, kept, performed and observed by Lessee, hereby leases to Lessee, and Lessee hereby leases from Authority, that certain real property consisting of single family houses in the City of Montclair (the “City”) located at 9814, 9875, and 9878 Monte Vista Avenue (the “Houses”), and having the legal description in the “Legal Description” attached hereto as Exhibit A and incorporated herein by this reference. Except as expressly provided to the contrary in this Lease, reference to the Properties is to the described land, inclusive of any improvements now or hereafter located on the land.

SECTION 3. LEASE TERM.

Lessee shall lease the Properties from Authority and Authority shall lease the Properties to Lessee for a term commencing on May 2, 2023 (the “Commencement Date”) and continuing until [May 2, 2038] (the “Term”), unless sooner terminated as provided for herein. The term “Lease Year” shall mean a period commencing on the Commencement Date or an anniversary thereof and continuing for one full calendar year thereafter.

SECTION 4. USE OF THE PROPERTIES.

4.1 Use of the Properties. Lessee covenants and agrees for itself, its successors and assigns, that during the Term, the Properties shall be devoted to those uses as set forth in the Agreement and the Redevelopment Plan.

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4.2 Management. Lessee shall manage or cause the Properties to be managed in a prudent and business-like manner, consistent with first-class single family rental housing in San Bernardino County, California.

Lessee may contract with a management company or manager to operate and maintain the Properties in accordance with the terms of this Lease; provided, however, that the selection and hiring of such management company shall be subject to approval by Authority, or its Executive Director.

Lessee may act as manager. Approval of a management company or manager by Authority shall not be unreasonably withheld. If, at any time, the management company is not performing to the reasonable satisfaction of the Authority, or its Executive Director or the City Manager of the City, and said condition is not corrected after expiration of ninety (90) days from the date of written notice from the Authority, the Authority may direct the Lessee to, and the Lessee shall, terminate immediately the management contract. Notwithstanding the above, Lessee shall use its best efforts to correct any defects in management at the earliest feasible time and, if necessary, to replace the management company prior to the elapsing of such time period.

4.3 Only Lawful Uses Permitted. Lessee shall not use the Properties for any purpose that is in violation of any law, ordinance or regulation of any federal, state, county or local governmental agency, body or entity. Furthermore, Lessee shall not maintain or commit any nuisance, as now or hereafter defined by any applicable statutory or decisional law, on the Properties, or any part thereof.

SECTION 5. RENT.

5.1 Net Lease. It is the intent of the parties hereto that the rent provided herein shall be absolutely net to Authority and that Lessee shall pay all costs, charges and expenses of every kind and nature against the Properties which may arise or become due during the Term and which, except for execution hereof, would or could have been payable by Authority.

5.2 Rent.
(A) During the Term of this Lease, Lessee agrees to pay in advance, on the Commencement Date and thereafter on the first day of each “Lease Year” (as hereinafter defined), rent in the amount of One Dollar ($1.00) per house. The parties understand and acknowledge that the primary consideration for this Lease is the performance of the covenants set forth in this Lease and the Agreement, particularly (without limitation, however) the covenants to rent the units to low- and moderate income tenants at an affordable rent pursuant to Section 6 hereof and Section 4.2 of the Agreement. As used herein, a “Lease Year” shall consist of twelve (12) consecutive calendar months ending on the anniversary (the “Anniversary Date”) of the day immediately preceding the Commencement Date.
(B) During the Term of this Lease, Lessee agrees to pay at the end of each Lease Year the “Additional Rent,” as herein defined. At the end of each Operating Year, the Lessee shall calculate total gross operating revenue for that year, and shall thereupon pay to the Authority as “Additional Rent” an amount equal to total gross operating revenue less the operating costs for that year. If total gross operating revenue for that year is less than operating costs, no Additional Rent shall be payable and the Lessee and the Authority shall negotiate in good faith for the Authority to provide additional compensation to cover such deficit. The Authority and its authorized representatives shall, at all times, have access for the purpose of audit or inspection to any and all books, documents, papers, records, property, and premises of the Lessee which in any manner relate to the expenses and revenues MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 162 of 204 Attachment No. 2

of the Properties under this Lease and the Lessee’s obligations hereunder. The Lessee’s staff shall cooperate fully with authorized auditors when they conduct audits and examinations of Authority funded programs. Within thirty (30) days of the submittal of such audit report, the Lessee shall provide a written response to all conditions or findings reported in such audit report. The response must discuss each condition or finding and set forth a proposed resolution, including a schedule for correcting any deficiency. All conditions or correction actions shall take place within six (6) months after receipt of the audit report unless the Authority Executive Director or designee authorizes an extension of time to submit such corrections.

5.3 Payment of Rent. All rent that becomes due and payable pursuant to this Lease shall be paid to the Authority at the address of the Authority listed in Section 26.7 or such other place as the Authority may from time to time designate by written notice to the Lessee without notice or demand, and without setoff, counterclaim, abatement, deferment, suspension or deduction. Except as expressly provided herein, under no circumstances or conditions, whether now existing or hereafter arising, or whether beyond the present contemplation of the parties, shall the Authority be expected or required to make any payment of any kind whatsoever or to perform any act or obligation whatsoever or be under any obligation or liability hereunder or with respect to the Properties.

SECTION 6. AFFORDABLE HOUSING REQUIREMENTS

6.1 Affordable Unit. The Lessee agrees to make available, restrict occupancy to, and rent the Houses to “Low Income Households” at the rents established pursuant to Section 6.6 hereof. “Low Income Household” shall mean a household earning not greater than eighty percent (80%) of San Bernardino County median income as further set forth in California Health and Safety Code Section 50079.5.

6.2 Lease Requirements. Prior to rental of the Properties, Lessee shall submit a standard lease form to the Authority for Authority’s approval. The Authority shall approve such lease form upon finding that such lease form is consistent with this Lease and the Agreement. The Lessee shall enter into a lease, in the form approved by the Authority, with each tenant of the Houses.

6.3 Duration of Affordability Requirements. The Properties shall be subject to the requirements of this Section 6 for a period coextensive with the term of this Lease beginning on the Commencement Date. The duration of this requirement shall be known as the “Affordability Period.” All tenants residing in the Houses during the last two (2) years of the Affordability Period shall be given notice by the Lessee at least once every six (6) months of the expiration date of this requirement, and that the rent payable on the Properties may be raised to a market rate rent at the end of the Affordability Period.

6.4 Selection of Tenants. The Properties shall be leased to tenants selected by the Lessee who meet all of the requirements provided herein. The Authority may, from time to time, assist in the leasing of the Houses by providing to the Lessee names of persons who have expressed interest in renting the Houses. Lessee shall adopt a tenant selection system, which shall be approved by the Authority. The tenant selection system shall include, without limitation, a method for investigation of the credit history of proposed tenants through obtaining a credit report on the proposed tenant. Highest priority in the selection of tenants shall be given to those applicants who have been displaced by Authority projects, if any.

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6.5 Income of Tenants. Prior to the rental or lease of each of the Houses to a tenant, and annually thereafter, the Lessee shall obtain an income certification from the tenant of the Properties.

The Lessee shall verify the income certification of the tenant in one or more of the following methods:
(A) obtain two (2) paycheck stubs from the tenant’s two (2) most recent pay periods, if any.
(B) obtain a true copy of an income tax return from the tenant for the most recent tax year in which a return was filed.
(C) obtain an income verification certification from the employer of the tenant. (D) obtain an income verification certification from the Social Security Administration and/or the California Department of Social Services if the tenant receives assistance from such agencies.
(E) obtain a credit report from a commercial credit reporting agency. (F) obtain an alternate form of income verification reasonably requested by the Lessee, if none of the above forms of verification is available to the Lessee.

A person or family who at the time of income certification qualified as a Low Income Household shall continue to be deemed so qualified, until such time as the person or family’s income is redetermined and the person or family is determined by the Lessee to no longer be so qualified, even if such person or family’s income has subsequently increased to an amount above the applicable income level. Upon the Lessee’s determination that the tenant is no longer qualified as a Low Income Household, such tenant shall no longer be eligible to rent the Properties and shall be given a written notice which requires such tenant to vacate the Properties within sixty (60) days, and the Lessee shall provide assistance to such tenants in finding another appropriate rental unit in the vicinity. The tenant lease shall contain the above provisions. In addition, the Lessee shall annually submit to the Authority a certification that the Houses is actually occupied by Low-Income Households in such form as may be provided by the Authority.

6.6 Determination of Affordable Rent for the Properties. The Houses shall be rented at an “Affordable Rent” to be established by the Authority as provided herein. The maximum monthly rental amount for the Properties shall be established at the lesser of (a) fair market rent, as reasonably determined by the Operator, or (b) thirty percent (30%) of sixty percent (60%) of San Bernardino County median income for a household size appropriate for the unit or, if greater, the amount determined pursuant to Health and Safety Code section 50053(b)(3). Household size appropriate to the unit shall mean two persons for a one bedroom House, three persons for a two bedroom House, four persons for a three bedroom House, and five persons for a four bedroom House. The rents of the Properties may be increased once per year, regardless of when particular tenants commenced occupancy of the Houses. The maximum monthly rental amount for the Houses shall include a reasonable utilities allowance to be determined by the Authority, which utilities allowance shall be set at an amount which will cover the projected charge for all utilities (whether paid for by Lessee or paid directly by the individual tenant), including gas and electrical service, water, sewer and garbage collection, but excluding telephone service and cable television. The Authority may in its discretion base the utilities allowance on a utilities allowance adopted in connection with the Section 8 program administered by the United States Department of Housing and Urban Development. Upon the approval MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 164 of 204 Attachment No. 2

of the Authority or Authority Executive Director, rents may be established at amounts which are lower than the maximum monthly rental amounts set forth above.

SECTION 7. UTILITIES AND TAXES.

7.1 Utilities. Lessee shall pay or cause to be paid by the tenants all charges for gas, electricity, water, sewer, garbage collection, cable television, and other utilities furnished to the Houses.

7.2 Real Estate Taxes.
(A) As used herein, the term “real estate taxes” shall mean all real estate taxes, assessments for improvements to the Houses, municipal or county water and sewer rates and charges which shall be levied against the Houses, or any interest therein, and which become a lien thereon and accrues during the Term.
(B) The Properties shall be assessed and taxed in the same manner as privately owned property, provided, however, that Lessee may apply for and obtain a full or partial exemption from property taxes. The Authority shall provide notice to the San Bernardino County Assessor within thirty (30) days of the commencement of this Lease as required by Health and Safety Code Section 33673.1. Lessee shall pay or cause to be paid, before any fine, penalty, interest or cost may be added thereto for the nonpayment thereof, all real estate taxes levied against any and all interests in the Property during the Term, and not merely the assessed value of the leasehold interest in the Property. (C) Any real estate taxes which are payable by Lessee hereunder shall be prorated between Authority and Lessee as of the Commencement Date and then again at the expiration or earlier termination of the Term.
(D) Lessee shall have the right to apply for the “welfare exemption” and any other applicable exemption from real property taxes, and shall further have the right to contest the amount or validity of any real estate taxes, in whole or in part, by appropriate administrative and legal proceedings, without any costs or expense to Authority. Lessee may postpone payment of any such contested real estate taxes pending the prosecution of such proceedings and any appeals so long as such proceedings shall operate to prevent the collection of such real estate taxes and the sale of the Property to satisfy any lien arising out of the nonpayment of the same, and Lessee furnishes a bond to Authority securing the payment of the same in the event a decision in such contest shall be adverse to Lessee.

7.3 Personal Property Taxes. Lessee covenants and agrees to pay before delinquency all personal property taxes, assessments and liens of every kind and nature upon all personalities as may be from time to time situated within the Property.

SECTION 8. OWNERSHIP OF IMPROVEMENTS, FIXTURES AND FURNISHINGS.

The Properties shall, during the Term, be and remain the property of the Authority. Upon termination of this Lease, whether by expiration of the Term or otherwise, all fixtures and furnishings within the Properties shall, without compensation to Lessee, be Authority’s property, free and clear of all claims to or against them by Lessee or any third person, firm or entity.

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SECTION 9. INDEMNIFICATION: FAITHFUL PERFORMANCE.

Lessee shall not suffer or permit any liens to be enforced against the fee simple estate as to the Properties, nor against Lessee’s leasehold interest therein by reason of work, labor, services or materials supplied or claimed to have been supplied to Lessee or anyone holding the Properties, or any part thereof, through or under Lessee, and Lessee agrees to defend, indemnify and hold Authority harmless against such liens. If any such lien shall at any time be filed against the Properties, Lessee shall, within thirty (30) days after notice to Lessee of the filing thereof, cause the same to be discharged of record; provided, however, that Lessee shall have the right to contest the amount or validity, in whole or in part, of any such lien by appropriate proceedings but in such event, Lessee shall notify Authority and promptly bond such lien in the manner authorized by law with a responsible surety company qualified to do business in the State of California or provide other security acceptable to Authority. Lessee shall prosecute such proceedings with due diligence. Nothing in this Lease shall be deemed to be, nor shall be construed in any way to constitute, the consent or request of Authority, express or implied, by inference or otherwise, to any person, firm or corporation for the performance of any labor or the furnishing of any materials for any construction, rebuilding, alteration or repair of or to the Properties or any part thereof. Prior to commencement of any repair or alteration to the Properties, Lessee shall give Authority not less than thirty (30) days advance notice in writing of intention to begin said activity in order that nonresponsibility notices may be posted and recorded as provided by State and local laws; provided that a shorter notice may be given in cases of emergency.

SECTION 10. MAINTENANCE AND REPAIR.

Lessee agrees to assume full responsibility for the management, operation and maintenance of the Properties throughout the Term without expense to Authority, and to perform all repairs and replacements necessary to maintain and preserve the Propertiesin a clean and safe condition reasonably satisfactory to Authority and in compliance with all applicable laws. Lessee agrees that Authority shall not be required to perform any maintenance, repairs or services or to assume any expense in connection with the Properties. Lessee hereby waives all rights to make repairs or to cause any work to be performed at the expense of Authority as provided for in Section 1941 and 1942 of the California Civil Code. The Lessee shall manage and maintain the Properties in conformity with the Montclair Municipal Code.

The following standards shall be complied with by Lessee and its maintenance staff, contractors or subcontractors:
(A) Lessee shall maintain the Properties in a safe and sanitary fashion in a first class condition.
(B) Landscape maintenance shall include, but not be limited to:
watering/irrigation; fertilization; mowing, edging, and 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 optimum 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.
(C) Clean-up maintenance shall include, but not be limited to: maintenance of all private paths, parking areas, driveways 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 MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 166 of 204 Attachment No. 2

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.
(D) All maintenance work shall conform to all applicable federal and state Occupation Safety and Health Act standards and regulations for the performance of maintenance. (E) Any and all chemicals, unhealthful substances, and pesticides used in and during maintenance shall be applied only by persons possessing valid California applicators licenses, and in strict accordance with all governing regulations. Precautionary measures shall be employed recognizing that all areas are open to public access.
(F) Lessee shall make such capital repairs to the Properties as are necessary, including the following: carpet and drape replacement; appliance replacement; exterior painting, hot water heater replacement; plumbing fixtures replacement, including tubs and showers, toilets, lavatories, sinks, faucets; air conditioning and heating replacement; asphalt repair and replacement, and seal coating; roofing repair and replacement; landscape tree replacement and irrigation pipe and controls replacement; gas line pipe replacement; and lighting fixture replacement.

Management and maintenance shall be overseen by the Authority or its designee and, if the above standards are breached, after notice and opportunity to cure within the time set forth in this paragraph, the Authority or its designee may in its reasonable discretion direct the Lessee to and the Lessee shall hire a management company acceptable to the Authority to manage the Properties. If, at any time, the Lessee or the management company fails to adequately maintain such areas, and such condition is not corrected immediately upon notice of an imminent threat to health and safety or after expiration of thirty (30) days from the date of written notice from the Authority for all other violations, the Authority may (but shall not be obligated to) perform the necessary maintenance and Lessee shall pay such costs as are reasonably incurred for such maintenance.

SECTION 11. ENVIRONMENTAL MATTERS.

11.1 Definitions. For the purposes of this Lease, unless the context otherwise specifies or requires, the following terms shall have the meanings herein specified:
(A) The term “Hazardous Materials” shall mean (i) any “hazardous substance” as defined by the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. Section 9601, et seq.), as amended from time to time, and regulations promulgated thereunder; (ii) any “hazardous substance” as defined by the Carpenter-Presley-Tanner Hazardous Substance Account Act (California Health and Safety Code Sections 25300, et seq.), as amended from time to time, and regulations promulgated thereunder; (iii) asbestos; (iv) polychlorinated biphenyls; (v) petroleum, oil, gasoline (refined and unrefined) and their respective by products and constituents; and (vi) any other substance, whether in the form of a solid, liquid, gas or any other form whatsoever, which by any “Governmental Requirements” (as defined in Subparagraph c of this Section 11.1) either requires special handling in its use, transportation, generation, collection, storage, handling, treatment or disposal, or is defined as “hazardous” or harmful to the environment. (B) The term “Hazardous Materials Contamination” shall mean the contamination (whether presently existing or hereafter occurring) of the improvements, facilities, soil, groundwater, MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 167 of 204 Attachment No. 2

air or other elements on, in or of the Properties by Hazardous Materials, or the contamination of the buildings, facilities, soil, groundwater, air or other elements on, in or of any other property as a result of Hazardous Materials at any time (whether before or after the Date of Lease) emanating from the Property.
(C) The term “Governmental Requirements” shall mean all past, present and future laws, ordinances, statutes, codes, rules, regulations, orders and decrees of the United States, the state, the county, the city, or any other political subdivision in which the Property are located, and any other state, county city, political subdivision, agency, instrumentality or other entity exercising jurisdiction over Authority, Lessee or the Properties.

11.2 Responsibility for Contamination. Lessee assumes any and all responsibility and Liabilities (as defined in Section 11.4 of this Lease) for all Hazardous Materials Contamination, which occurs during the Term of this Lease.

11.3 Indemnification. Lessee shall save, protect, defend, indemnify and hold harmless Authority and its officers, directors, shareholders, employees and agents from and against any and all liabilities, suits, actions, claims, demands, penalties, damages (including, without limitation, penalties, fines and monetary sanctions), losses, costs or expenses (including, without limitation, consultants’ fees, investigation and laboratory fees, reasonable attorneys’ fees and remedial and response costs) (the foregoing are hereinafter collectively referred to as “Liabilities”) which may now or in the future be incurred or suffered by Authority and its officers, directors, shareholders, employees or agents by reason of, resulting from, in connection with, or arising in any manner whatsoever as a direct or indirect result of (1) the presence on or under, or escape, seepage, leakage, spillage, discharge, emission or release from the Properties of any Hazardous Materials or Hazardous Materials Contamination after the commencement of this Lease, including any Liabilities incurred under any Governmental Requirements relating to such Hazardous Materials or Hazardous Materials Contamination, (2) the performance by Lessee of any acts, including, but not limited to, the performance of any act required by this Lease, and (3) the performance by the Authority of any act required to be performed by the Lessee under this Lease. Lessee’s obligations under this Section 11.3 shall survive the expiration of this Lease.

Authority shall save, protect, defend, indemnify and hold harmless Lessee and its officers, directors, shareholders, employees and agents from and against any and all liabilities, suits, actions, claims, demands, penalties, damages (including without limitation, penalties, fines and monetary sanctions), losses, costs or expenses (including, without limitation, consultants’ fees, investigation and laboratory fees, reasonable attorneys’ fees and remedial and response costs) (the foregoing are hereinafter collectively referred to as “Liabilities”) which may now or in the future be incurred or suffered by Lessees and its officers, directors, shareholders, employees or agents by reason of, resulting from, in connection with, or arising in any manner whatsoever as a direct or indirect result of (1) the presence on or under, or escape, seepage, leakage, spillage, discharge, emission or release from the Authority of any Hazardous Materials or Hazardous Materials Contamination prior to the commencement of this Lease, including any Liabilities incurred under any Governmental Requirements relating to such Hazardous Materials or Hazardous Materials Contamination, (2) the performance by Authority of any acts, including, but not limited to, the performance of any act required by this Lease, and (3) the performance by the Lessee of any act required to be performed by the Authority under this Lease. Authority’s obligations under this Section 11.3 shall survive the expiration of this Lease.

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11.4 Duty to Prevent Hazardous Material Contamination. Lessee shall take all necessary precautions to prevent the release of any Hazardous Materials into the environment. Such precautions shall include compliance with all Governmental Requirements with respect to Hazardous Materials. In addition, Lessee shall install and utilize such equipment and implement and adhere to such procedures as are consistent with the highest standards generally applied by residential developments as respects the disclosure, storage, use, removal and disposal of Hazardous Materials.

11.5 Obligation of Tenant to Remediate Premises. Notwithstanding the obligation of Lessee to indemnify Authority pursuant to Section 11.3 of this Lease, Lessee shall, at its sole cost and expense, promptly take (i) all actions required by any federal, state or local governmental agency or political subdivision or any Governmental Requirements and (ii) all actions necessary to make full economic use of the Properties for the purposes contemplated by this Lease and the Agreement, which requirements or necessity arise from the presence upon, about or beneath the Properties of any Hazardous Materials or Hazardous Materials Contamination no matter when occurring. Such actions shall include, but not be limited to, the investigation of the environmental condition of the Properties, the preparation of any feasibility studies or reports and the performance of any cleanup, remedial, removal or restoration work. Lessee shall take all actions necessary to promptly restore the Properties to an environmentally sound condition for the uses contemplated by this Lease and the Agreement notwithstanding any lesser standard of remediation allowable under applicable Governmental Requirements. Lessee shall nevertheless obtain the Authority’s written approval prior to undertaking any activities required by this Section 11.5 during the Term of this Lease, which approval shall not be unreasonably withheld so long as such actions would not adversely affect the Property or be harmful to any other person or property. The Authority’s obligations under this Section 11.5 shall survive the expiration of this Lease.

11.6 Right of Entry. Notwithstanding any other term or provision of this Lease, Lessee shall permit the Authority or its agents or employees to enter the Properties at any time during normal business hours (except in the event of an emergency ), without prior notice in the event of an emergency, and with not less than forty-eight hours advance notice if no emergency is involved, to inspect, monitor and/or take emergency or long-term remedial action with respect to Hazardous Materials and Hazardous Materials Contamination on or affecting the Properties, or to discharge Lessee’s obligations hereunder with respect to such Hazardous Materials and Hazardous Materials Contamination when Lessee has failed to do so. All costs and expenses incurred by the Authority in connection with performing Lessee’s obligations hereunder shall be reimbursed by Lessee to the Authority within ten (10) days of Lessee’s receipt of written request therefor.

11.7 Storage or Handling of Hazardous Materials. Lessee, at its sole cost and expense, shall comply with all Governmental Requirements for the storage, use, transportation, handling and disposal of Hazardous Materials. In the event Lessee does store, use, transport, handle or dispose of any Hazardous Materials, Lessee shall notify Authority in writing at least ten (10) days prior to their first appearance on the Properties and Lessee’s failure to do so shall constitute a material default under this Lease. Lessee shall conduct all monitoring activities required or prescribed by applicable Governmental Requirements, and shall, at its sole cost and expense, comply with all posting requirements of Proposition 65 or any other similarly enacted Governmental Requirements. In addition, in the event of any complaint or governmental inquiry, or if otherwise deemed necessary by the Authority in its reasonable judgment, the Authority may require Lessee, at Lessee’s sole cost and expense, to conduct specific monitoring or testing activities with respect to Hazardous Materials on the Properties. Lessee’s monitoring programs shall be in compliance with applicable Governmental Requirements, and any program related to the specific monitoring of or testing for Hazardous Materials MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 169 of 204 Attachment No. 2

on the Properties, shall be satisfactory to Authority, in Authority’s reasonable discretion. Lessee shall further be solely responsible, and shall reimburse Authority, for all costs and expenses incurred by Authority arising out of or connected with the removal, clean-up and/or restoration work and materials necessary to return the Properties and any property adjacent to the Properties affected by Hazardous Materials emanating from the Properties to their condition existing at the time of the Commencement Date. Lessee’s obligations hereunder shall survive the termination of this Lease.

11.8 Environmental Inquiries. Lessee shall notify Authority, and provide to Authority a copy or copies, of the following environmental permits, disclosures, applications, entitlements or inquiries relating to the Properties: Notices of violation, notices to comply, citations, inquiries, clean-up or abatement orders, cease and desist orders, reports filed pursuant to self-reporting requirements and reports filed or applications made pursuant to any Governmental Requirement relating to Hazardous Materials and underground tanks, and Lessee shall report to the Authority, as soon as possible after each incident, any unusual, potentially important incidents, including but not limited to, the following:
(A) All required reports of releases of Hazardous Materials, including notices of any release of Hazardous Materials as required by any Governmental Requirement; (B) All fires;
(C) All instances where asbestos has been or may be disturbed by repair work, tenant improvements or other activities in buildings containing asbestos; (D) All notices of suspension of any permits;
(E) All notices of violation from Federal, State or local environmental authorities; (F) All orders under the State Hazardous Waste Control Act and the State Hazardous Substance Account Act and corresponding federal statutes, concerning investigation, compliance schedules, clean up, or other remedial actions; (G) All orders under the Porter-Cologne Act, including corrective action orders, cease and desist orders, and clean-up and abatement orders; (H) Any notices of violation from OSHA or Cal-OSHA concerning employees’ exposure to Hazardous Materials;
(I) All complaints and other pleadings filed against Lessee and/or Authority relating to Lessee’s storage, use, transportation, handling or disposal of Hazardous Materials on the Properties.

In the event of a release of any Hazardous Materials into the environment, Lessee shall, as soon as possible after the release, furnish to the Authority a copy of any and all reports relating thereto and copies of all correspondence with governmental agencies relating to the release. Upon request of the Authority, Lessee shall furnish to the Authority a copy or copies of any and all other environmental entitlements or inquiries relating to or affecting the Properties including, but not limited to, all permit applications, permits and reports including, without limitation, those reports and other matters which may be characterized as confidential.

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SECTION 12. ALTERATION OF IMPROVEMENTS.

Lessee shall not make or permit to be made any structural alteration of, addition to or change in the Properties, nor demolish all or any part of the Properties without the prior written consent of Authority; provided, however, that the foregoing shall not prohibit or restrict the repair and/or replacement of the Properties by Lessee. In requesting such consent Lessee shall submit to Authority detailed plans and specifications of the proposed work and an explanation of the need and reasons therefor. This provision shall not limit or set aside any obligation of Lessee under this Lease to maintain the Properties in a clean and safe condition, including structural repair and restoration of damaged Properties. Authority shall not be obligated by this Lease to make any improvements to the Properties or to assume any expense therefor. Lessee shall not commit or suffer to be committed any waste or impairment of the Properties, or any part thereof, except as otherwise permitted pursuant to this Lease.

SECTION 13. DAMAGE OR DESTRUCTION.

Lessee agrees to give notice to Authority of any fire or other damage (collectively “casualty”) that may occur on the Properties within ten (10) days of such fire or damage. In the event of such casualty Lessee agrees, to the extent of any insurance proceeds available therefor, to make or cause to be made full repair of such casualty, or Lessee agrees, to the extent of any insurance proceeds available therefor, to clear and remove from the Properties all debris resulting from such casualty and rebuild the Properties in accordance with plans and specifications previously submitted to Authority and approved in writing in order to replace in kind and scope the Properties which existed prior to such damage. In the event of a casualty in which the Properties are not required to be repaired, restored or rebuilt by Lessee pursuant to the terms of this Section 13, and provided Lessee does not nevertheless elect to repair, restore or rebuild the Properties although Lessee has no obligations to do so, Authority may terminate this Lease.

SECTION 14. SALE, ASSIGNMENT, SUBLEASE OR OTHER TRANSFER.

Except for (a) the lease of the Properties to a tenant, and (b) transfers made pursuant to Section 6.4 of the Agreement, Lessee shall not sell, assign, sublease or otherwise transfer this Lease or any right therein, nor make any total or partial sale, assignment, sublease or transfer in any other mode or form of the whole or any part of the Properties (each of which events is referred to in this Lease as an “Assignment”), without prior written approval of Authority, which approval shall not be unreasonably withheld as more particularly set forth below in this Section 14.2. Notwithstanding anything else herein contained, the term “Assignment” shall not be deemed to include the obtaining of any “Capital Improvement Loan(s)” (all as hereinafter defined), but shall be deemed to include all refinancing thereof and any other loans approved by Authority. Any purported assignment without the prior written consent of Authority shall render this Lease absolutely null and void and shall confer no rights whatsoever upon any purported assignee or transferee. The approval of Authority to any Assignment shall not be unreasonably withheld if the proposed purchaser, assignee, sublessee or transferee has reasonably demonstrated to the Authority, at least sixty (60) days prior to the effective date of such Assignment, such proposed purchaser’s, assignee’s, sublessee’s or transferee’s financial capability and overall competence and experience to construct and operate the Properties. Review of experience in operating similar projects shall not be required with respect to institutional lenders providing financing pursuant to Section 15 hereof so long as the original Lessee (or a successor that has been expressly approved in writing by the Authority) remains responsible for operating the Properties and performing as Lessee pursuant to this Lease. Approval by Authority of any sale, MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 171 of 204 Attachment No. 2

assignment, sublease or transfer shall be conditioned upon such purchaser, assignee, sublessee or transferee agreeing in writing to assume the rights and obligations thereby sold, assigned, subleased or transferred, and to keep and perform all covenants, conditions and provisions of this Lease which are applicable to the rights acquired. In the absence of specific written agreement by Authority, no such sale, assignment, sublease or transfer of this Lease or the Properties (or any portion thereof), or approval by Authority of any such sale, assignment, sublease or transfer shall be deemed to relieve Lessee or any other party from any obligation under this Lease.

Notwithstanding anything else contained in this Section 14, this Lease may be assigned, without the consent of Authority, to the purchaser at any foreclosure sale, whether judicial or non-judicial, or to the beneficiary or mortgagee under any Permitted Encumbrance (as defined in Section 15), pursuant to foreclosure or similar proceedings, or pursuant to an assignment or other transfer of this Lease to such beneficiary or mortgagee in lieu thereof, and may thereafter be assigned by such beneficiary or mortgagee without Authority’s consent, and any such purchaser, beneficiary, mortgagee or assignee shall be liable to perform the obligations herein imposed on Lessee, other than as set forth in Sections 15 of this Lease, only for and during the period that such purchaser, beneficiary, mortgagee or assignee is in possession or ownership of the leasehold estate created hereby.

SECTION 15. FINANCING.

Lessee may, at any time and from time to time during the Term, upon prior written notice to the Authority and subject to the requirements of Sections 5.3 and 14 hereof, request that the Authority authorize Lessee to mortgage, pledge, hypothecate or otherwise encumber to a federally or state chartered bank or savings and loan, a life insurance company, a mortgage company, a pension fund, investment trust or similar institutional lender (herein called “Lender”) by deed of trust or mortgage or other security instrument all or any portion of Lessee’s right, title and interest pursuant to this Lease and the leasehold estate hereby, following thirty (30) days prior written notice to Authority (which notice shall include an itemization of and budget for the capital improvements to be financed), to secure financing of capital improvements to the Properties (“Capital Improvement Loan(s)”). The Authority shall consider such request in good faith, and may approve, disapprove or conditionally approve in Authority’s reasonable discretion. The encumbrances securing the Capital Improvement Loan(s), together with refinancing of the Capital Improvement Loan(s) approved by the Authority pursuant to Section 14, and any other loan or encumbrance approved by the Authority pursuant to this Lease shall be deemed to be “Permitted Encumbrances.”
The proceeds of any Capital Improvement Loan(s) shall be used solely to pay (i) the costs of construction of capital improvements to the Property, and (ii) the costs of obtaining the Capital Improvement Loan(s).

Authority and Lessee acknowledge and agree that neither Authority’s interest or fee ownership of the Properties nor Authority’s right to receive Rent hereunder shall be subordinate to any Permitted Encumbrance or any other lien, mortgage, deed of trust, pledge or other encumbrance of Lessee’s leasehold interest hereunder.

SECTION 16. INDEMNITY.

During the Term, Lessee agrees that Authority and City, their agents, officers, representatives and employees, shall not be liable for any claims, liabilities, penalties, fines or for any damage to the goods, properties or effects of Lessee, its sublessees or representatives, agents, employees, guests, MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 172 of 204 Attachment No. 2

licensees, invitees, patrons or clientele or of any other person whomsoever, nor for personal injuries to, or deaths of any persons, whether caused by or resulting from any act or omission of Lessee or its sublessees or any other person on or about the Properties, or in connection with the operation thereof, or from any defect in the Properties. Lessee agrees to indemnify and save free and harmless Authority and City and their authorized agents, officers, representatives and employees against any of the foregoing liabilities and any costs and expenses incurred by Authority or City on account of any claim or claims therefor. Lessee shall not be responsible for (and such indemnity shall not apply to) any acts, errors or omissions of Authority, City, or their respective agents, officers, representatives or employees.

SECTION 17. INSURANCE.

17.1 Insurance to be Provided by Lessee. During the Term, Lessee, at its sole cost and expense, shall:
(A) Maintain or cause to be maintained a policy or policies of insurance against loss or damage to the Properties of all property of an insurable nature located upon the Properties, resulting from fire, lightning, vandalism, malicious mischief, and such other perils ordinarily included in extended coverage fire insurance policies. Such policy or policies shall be required to provide coverage against loss or damage resulting from flood and/or earthquake only to the extent such coverage is available at commercially reasonable rates and is required by any lender making a loan to Lessee which is secured by the Properties. Such insurance policy shall name Authority as an additional insured and shall be maintained in an amount not less than one hundred percent (100%) of the full insurable value of the Properties, as defined herein in this Section 17. (B) Maintain or cause to be maintained public liability insurance issued by a company with a Best’s rating of not less than A, to protect against loss from liability imposed by law for damages on account of personal injury, including death therefrom, suffered or alleged to be suffered by any person or persons whomsoever on or about the Properties, or in connection with the operation thereof, resulting directly or indirectly from any acts or activities of Lessee or its sublessees, or any person acting for Lessee, or under their respective control or direction, and also to protect against loss from liability imposed by law for damages to any property of any person occurring on or about the Properties, or in connection with the operation thereof, caused directly or indirectly by or from acts or activities of Lessee of its sublessees, or any person acting for Lessee, or under their respective control or direction. Such property damage and personal injury insurance shall also provide for and protect against incurring any legal cost in defending claims for alleged loss. Such personal injury and property damage insurance shall be maintained in full force and effect during the entire term of this Lease in the amount of at least One Million Dollars ($1,000,000) combined single limit, naming Authority and City as additional insured. If the operation under this Lease results in an increased or decreased risk in the reasonable determination of Authority, then Lessee agrees that the minimum limit hereinabove designated shall be changed accordingly upon request by Authority. Lessee agrees that provisions of this paragraph as to maintenance of insurance shall not be construed as limiting in any way the extent to which Lessee may be held responsible for the payment of damages to persons or property resulting from Lessee’s activities, activities of its sublessees or the activities of any other person or persons for which Lessee is otherwise responsible. Pollution liability insurance provided in compliance with the indemnification provision required by Section 11.3 hereof shall be required only to the extent such coverage is available at commercially reasonable rates.

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(C) Maintain or cause to be maintained worker’s compensation insurance issued by a responsible carrier authorized under the laws of the State of California to insure employers against liability for compensation under the workers’ compensation laws now in force in California, or any laws hereafter enacted as an amendment or supplement thereto or in lieu thereof. Such workers’ compensation insurance shall cover all persons employed by Lessee in connection with the Properties and shall cover full liability for compensation under any such act aforesaid, based upon death or bodily injury claims made by, for on behalf of any person incurring or suffering injury or death in connection with the Property or the operation thereof by Lessee.

17.2 Definition of “Full Insurable Value”. The term “full insurable value” as used in this Section 17 shall mean the actual replacement cost (excluding the cost of excavation, foundation and footings below the lowest floor and without deduction for depreciation) of the Properties, including the cost of construction of the Properties, architectural and engineering fees, and inspection and supervision. To ascertain the amount of coverage required, Lessee shall cause the full insurable value to be determined from time to time by appraisal by the insurer or, if no such appraisal is available, by an appraiser mutually acceptable to Authority and Lessee, not less often than once every three (3) years.

17.3 General Insurance Provisions. All liability policies of insurance provided for in this Section 17 shall name Lessee as the insured and Authority as an additional insured, as their respective interests may appear. All property casualty insurance policies shall include the interest of any Lessee’s Mortgagee, and may provide that any loss is payable jointly to Lessee and Lessee’s Mortgagee in which event such policies shall contain standard mortgage loss payable clauses. Lessee agrees to timely pay all premiums for such insurance and, at its sole cost and expense, to comply and secure compliance with all insurance requirements necessary for the maintenance of such insurance.

Lessee agrees to submit policies of all insurance required by this Section 17 of this Lease, or certificates evidencing the existence thereof, to Authority on or before the effective date of this Lease, indicating full coverage of the contractual liability imposed by this Lease. At least thirty (30) days prior to expiration of any such policy, copies of renewal policies, or certificates evidencing the existence thereof, shall be submitted to Authority.

All insurance provided for under this Section 17 shall be effected under policies issued by insurers of recognized responsibility, licensed or permitted to do business in the State of California, approved by Authority.

All policies or certificates of insurance shall: (i) provide that such policies shall not be cancelled or limited in any manner without at least thirty (30) days prior written notice to Authority; (ii) provide that such coverage is primary and not contributing with any insurance as may be obtained by the Authority and shall contain a waiver of subrogation for the benefit of the City and the Authority; and (iii) name the City, Authority, and their respective officers, agents, and employees as additional insured under such policies.

17.4 Failure to Maintain Insurance. If Lessee fails or refuses to procure or maintain insurance as required by this Lease, Authority shall have the right, at Authority’s election, and upon ten (10) days prior notice to Lessee, to procure and maintain such insurance. The premiums paid by Authority shall be treated as added rent due from Lessee, to be paid on the first day of the month following the date on which the premiums were paid. Authority shall give prompt notice of the payment of such premiums, stating the amounts paid and the name of the insured(s).

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17.5 Insurance Proceeds Resulting from Loss or Damage to Properties. All proceeds of insurance with respect to loss or damage to the Properties during the term of this Lease shall be payable, under the provisions of the policy of insurance, to Lessee, and said proceeds shall constitute a trust fund to be used for the restoration, repair and rebuilding of the Properties in accordance with plans and specifications approved in writing by Authority. To the extent that such proceeds exceed the cost of such restoration, repair or rebuilding, then such additional proceeds shall be distributed to the Authority. Notwithstanding the foregoing, within the period during which there is an outstanding mortgage upon the Properties, such proceeds shall be payable in accordance with Section 17.3 of this Lease.

In the event this Lease is terminated by mutual agreement of Authority and Lessee and said Properties are not restored, repaired or rebuilt, the insurance proceeds shall be jointly retained by the Authority and Lessee and shall be applied first to any payments due under this Lease from Lessee to Authority, second to restore the Properties to its original condition and to a neat and clean condition, and finally any excess shall be apportioned between Lessee and Authority as their interests may appear; provided, however, that within any period when there is an outstanding mortgage upon the Properties, such proceeds shall be applied first to discharge the debt secured by the mortgage and then for the purposes and in the order set forth above in this paragraph. The value of each interest for the purpose of apportioning excess proceeds under this Section 17.5 shall be the fair market value of such interests immediately prior to the occurrence of the damage or destruction.

SECTION 18. EMINENT DOMAIN.

In the event that the Properties or any part thereof shall be taken for public purposes by condemnation as a result of any action or proceeding in eminent domain, then, as between Authority and Lessee (or mortgagee, if a mortgage is then in effect), the interests of Authority and Lessee (or mortgagee) in the award and the effect of the taking upon this Lease shall be as follows:
(A) In the event of such taking of only a part of the Properties, leaving the remainder of the Properties in such location and in such form, shape and size as to be used effectively and practicably for the conduct thereon of the uses permitted hereunder, this Lease shall terminate and end as to the portion of the Properties so taken as of the date title to such portion vests in the condemning authority, but shall continue in full force and effect as to the portion of the Properties not so taken.
(B) In the event of taking of only a part of the Properties, leaving the remainder of the Properties in such location, or in such form, shape or reduced size as to render the same not effectively and practicably usable, for the conduct thereon of the uses permitted hereunder, this Lease and all right, title and interest thereunder shall cease on the date title to the Properties or the portion thereof so taken vests in the condemning authority.
(C) In the event the Properties is so taken, this Lease and all of the right, title and interest thereunder, shall cease on the date title to the Properties vests in the condemning authority. (D) Promptly after a partial taking, at Lessee’s expense and in the manner specified in provisions of this Lease related to maintenance, repairs, alterations, Lessee shall restore the Properties, to the extent of condemnation proceeds received by Lessee, so as to place them in a condition suitable for the uses and purposes for which the Properties was leased.

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(E) In the event of any taking under subparagraphs (a), (b) or (c) hereinabove, that portion of any award of compensation attributable to the fair market value of the Properties or portion thereof taken, valued as subject to this Lease, shall belong to Authority. That portion of any award attributable to the fair market value of Lessee’s leasehold interest in the Properties pursuant to this Lease shall belong to Lessee. That portion of any award attributable to the fair market value of the Properties or portion thereof taken shall belong to Authority and Lessee, as their interests may appear, except that in the event of a partial taking, where the Lease remains in effect and Lessee is obligated to restore or repair the Properties, then Lessee shall be entitled to any portion of the award attributable to severance damages to the remaining Properties. Said award shall be used for the restoration, repair or rebuilding of the Properties in accordance with plans and specifications approved in writing by Authority. To the extent that said award for severance damages exceeds the cost of such restoration, repair or rebuilding, then such award shall be apportioned between Lessee and Authority as their interests may appear. The value of each interest for the purpose of apportionment under this Section shall be the fair market value of such interests at the time of the taking. (F) Provided, however, that within the period during which there is an outstanding mortgage on the Properties, the mortgagee shall be entitled to any portion of the award attributable to the Properties, to the extent of its interest therein. The mortgagee may at its option apply said portions of the award to restoration of the Properties or to reduction of the mortgage. Any excess portion of the award attributable to the condemnation of the Properties shall be apportioned between Lessee and Authority as their interests may appear.
(G) Notwithstanding the foregoing provisions of this Section, Authority may, in its discretion and without affecting the validity and existence of this Lease, transfer Authority’s interests in the Properties in lieu of condemnation to any authority entitled to exercise the power of eminent domain. In the event of such transfer by Authority, Lessee (or mortgagee if a mortgage is then in effect) and Authority shall retain whatever rights they may have to recover from said authority the fair market value of their respective interests in the Properties taken by the authority. (H) All valuations to be made pursuant to this Section 18 shall be made by mutual agreement of Authority and Lessee.

SECTION 19. OBLIGATION TO REFRAIN FROM DISCRIMINATION.

There shall be no discrimination against or segregation of any person or group of persons, on account of sex, marital status, race, color, creed, religion, national origin or ancestry in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the Properties, and Lessee itself or any person claiming under or through it shall not 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 thereof or any portion thereof, or in the providing of goods, services, facilities, privileges, advantages and accommodation.

Lessee shall refrain from restricting the rental, sale or lease of the Properties, or any portion thereof, on the basis of sex, marital status, race, color, creed, religion, ancestry or national origin of any person. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses:

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(A) In Leases: “The lessee herein covenants by and for itself, its heirs, executors, administrators and assigns, and all persons claiming under or through it, 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 sex, marital status, race, color, creed, religion, disability, familial status, national origin, or ancestry, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee itself, or any person claiming under or through it, 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.” (B) In Contracts:
“There shall be no discrimination against or segregation of, any person or group of persons on account of sex, marital status, race, color, creed, religion, disability, familial status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferee itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use of occupancy of tenants, lessees, subtenants, sublessees or vendees of the premises.”
SECTION 20. NONDISCRIMINATION IN EMPLOYMENT.

Lessee, for itself and its successors and assigns, agrees that during the operation of the Properties provided for in this Lease, and during any work of repair or replacement, Lessee will not discriminate against any employee or applicant for employment because of race, color, creed, religion, sex, marital status, physical or mental disability, sexual orientation, ancestry or national origin.

SECTION 21. LABOR STANDARDS.

Lessee shall comply, and require all contractors and subcontractors employed pursuant to this Lease to comply with all applicable labor standards provisions of the California Labor Code and federal law, including payment of prevailing wages for off-site work. Lessee shall comply with all bidding requirements applicable pursuant to the California Public Contracts Code or other applicable law.

SECTION 22. COMPLIANCE WITH LAW.

Lessee agrees, at its sole cost and expense, to comply and secure compliance with all the requirements now in force, or which may hereafter be in force, of all municipal, county, state and federal authorities, pertaining to the Properties, as well as operations conducted thereon, and to faithfully observe and secure compliance with, in the use of the Properties, all applicable county and municipal ordinances and state and federal statutes now in force or which may hereafter be in force, and to pay before delinquency all taxes, assessments, and fees, if any, assessor levied upon Lessee or the Properties, including the land and any buildings, structures, machines, appliances or other improvements of any nature whatsoever, erected, installed or maintained by Lessee or by reason of the business or other activities of Lessee upon or in connection with the Properties. The judgment of any court of competent jurisdiction, or the admission of Lessee or any sublessee or permittee in any action or proceeding against them, or any of them, whether Authority be a party thereto or not, that Lessee, MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 177 of 204 Attachment No. 2

sublessee or permittee has violated any such ordinance or statute in the use of the Properties shall be conclusive of that fact as between Authority and Lessee, or such sublessee or permittee.

SECTION 23. ENTRY AND INSPECTION.

Authority reserves and shall have the right during reasonable business hours (except in cases of emergency), upon forty-eight (48) hours prior notice (except in cases of emergency) to Lessee by the Executive Director of Authority, to enter the Properties for the purpose of viewing and ascertaining the condition of the same, or to protect its interests in the Properties or to inspect the operations conducted thereon.

SECTION 24. RIGHT TO MAINTAIN.

In the event that the entry or inspection by Authority pursuant to Section 23 hereof discloses that the Properties are not in a decent, safe, and sanitary condition, Authority shall have the right, after thirty (30) days written notice to Lessee (except in case of emergency, in which event no notice shall be necessary), to have any necessary maintenance work done for and at the expense of Lessee and Lessee hereby agrees to pay promptly any and all costs incurred by Authority in having such necessary maintenance work done in order to keep the Properties in a decent, safe and sanitary condition. The rights reserved in this Section shall not create any obligations or Authority or increase obligations elsewhere in this Lease imposed on Authority.

SECTION 25. EVENTS OF DEFAULT AND REMEDIES.

25.1 Events of Default by Lessee.
(A) Lessee shall abandon or surrender the Properties; or (B) Lessee shall fail or refuse to pay, within ten (10) days of notice from Authority that the same is due, any installment of rent or any other sum required by this Lease to be paid by Lessee; or
(C) Lessee shall fail to perform any covenant or condition of the Agreement and/or this Lease other than as set forth in subparagraphs (a) or (b) above, and any such failure shall not be cured within thirty (30) days following the service on Lessee of a written notice from Authority specifying the failure complained of, or if it is not practicable to cure or remedy such failure within such thirty (30) day period, within such longer period as shall be reasonable under the circumstances; or
(D) Lessee shall voluntarily file or have involuntarily filed against it any petition under any bankruptcy or insolvency act or law and the same shall not be dismissed within sixty (60) days thereafter; or
(E) Lessee shall be adjudicated a bankrupt; or
(F) Lessee shall make a general assignment for the benefit of creditors in violation of the terms of this Lease; then such event shall constitute an event of default under this Lease.

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25.2 Remedies of Authority. In the event of any such default as described in Section 25.1, Authority may, at its option:
(1) Correct or cause to be corrected said default and charge the costs thereof (including costs incurred by Authority in enforcing this provision) to the account of Lessee, which charge shall be due and payable within fifteen (15) days after presentation by Authority of a statement of all or part of said costs;
(2) Correct or cause to be corrected said default and pay the costs thereof (including costs incurred by Authority in enforcing this provision) from the proceeds of any insurance; or in the event that Lessee has obtained a faithful performance bond indemnifying Authority, Authority may call upon the bonding agent to correct said default or to pay the costs of such correction performed by or at the direction of Authority;
(3) Exercise its right to maintain any and all actions at law or suits in equity to compel Lessee to correct or cause to be corrected said default; (4) Have a receiver appointed to take possession of Lessee’s interest in the Property, with power in said receiver to administer Lessee’s interest in the Properties, to collect all funds available to Lessee in connection with its operation and maintenance of the Properties; and to perform all other consistent with Lessee’s obligation under this Lease as the court deems proper; (5) Maintain and operate the Properties, without terminating this Lease; (6) With respect to a monetary default or material non-monetary default, terminate this Lease by written notice to Lessee of its intention to do so.

25.3 Right of Authority in the Event of Termination of Lease. Upon termination of this Lease pursuant to Section 25.2, it shall be lawful for Authority to re-enter and repossess the Properties and Lessee, in such event, does hereby waive any demand for possession thereof, and agrees to surrender and deliver the Properties peaceably to Authority immediately upon such termination in good order, condition and repair, except for reasonable wear and tear. Lessee agrees that upon such termination, title to all the Properties on the Properties shall vest in Authority. Even though Lessee has breached the Lease and abandoned the Properties, this Lease shall continue in effect for so long as Authority does not terminate Lessee’s right to possession, and Authority may enforce all of its right and remedies under this Lease, including, but not limited to, the right to recover the rent as it becomes due under this Lease. No ejectment, re-entry or other act by or on behalf of Authority shall constitute a termination unless Authority gives Lessee notice of termination in writing. Termination of this Lease shall not relieve or release Lessee from any obligation incurred pursuant to this Lease prior to the date of such termination. Termination of this Lease shall not relieve Lessee from the obligation to pay any sum due to Authority or from any claim for damages against Lessee.

25.4 Damages. Damages which Authority recovers in the event of default under this Lease shall be those which are then available under applicable California case and statutory law to lessors for leases in the State of California including, but not limited to, any accrued but unpaid rent and the worth at the time of award of the amount by which the unpaid rent for the balance of the term of this Lease after the date of award exceeds the amount of such rental loss for the same period that Lessee proves could be reasonably avoided.

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25.5 Rights and Remedies are Cumulative. The remedies provided by this Section 25 are not exclusive and shall be cumulative to all other rights and remedies possessed by Authority. The exercise by Authority of one or more 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 Lessee.

25.6 Limitation of Lessee’s Liability. Notwithstanding anything to the contrary herein contained, following completion of the construction of the Properties, (i) the liability of Lessee shall be limited to its interest in the Properties, and any rents, issues and profits arising from any subleases of the Properties which are misapplied, or which have accrued but are not yet due and payable, at the time of any default hereunder and which are misapplied by Lessee when collected, and, in addition, with respect to any obligation to hold and apply insurance proceeds, proceeds of condemnation or other monies hereunder, any such monies received by it to the extent not so applied; (ii) no other assets of Lessee shall be affected by or subject to being applied to the satisfaction of any liability which Lessee may have to Authority or to another person by reason of this Lease; and (iii) any judgment, order, decree or other award in favor of Authority shall be collectible only out of, or enforceable in accordance with, the terms of this Lease by termination or other extinguishment of Lessee’s interest in the Properties. As a condition to protection under the provisions of this Section 25.6, Lessee covenants not to collect more than one (1) month’s rent in advance, exclusive of reasonable security deposits, under the terms of any subleases of the Properties that Lessee may enter into.

Notwithstanding the foregoing, it is expressly understood and agreed that the aforesaid limitation on liability shall in no way restrict or abridge Lessee’s continued personal liability for:
(1) fraud or willful or grossly negligent misrepresentation made by Lessee in connection with this Lease;
(2) misapplication of (i) proceeds of insurance and condemnation or (ii) rentals received by Lessee under subleases subsequent to the date Authority is entitled to re-enter the Properties by reason of Lessee’s default pursuant to the terms hereof and applicable law; (3) the retention by Lessee of all advance rentals and security deposits of sublessees not refunded to or forfeited by such sublessees; (4) the indemnification undertakings of Lessee under Section 16; and (5) Material waste by Lessee with respect to the Properties.

25.7 Events of Default by Authority. If the Authority shall fail to perform any covenant or condition of the Agreement and/or this Lease, and any such failure shall not be cured within thirty (30) days following the service on Authority of a written notice from Lessee specifying the failure complained of, or if it is not practicable to cure or remedy such failure within such thirty (30) day period, within such longer period as shall be reasonable under the circumstances, the such event shall constitute an event of default under this Lease.

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25.8 Remedies of Lessee. In the event of any such default as described in Section 25.6, Authority may, at its option:
(1) Correct or cause to be corrected said default and charge the costs thereof (including costs incurred by Lessee in enforcing this provision) as an operating expense for the current year;
(2) Correct or cause to be corrected said default and pay the costs thereof (including costs incurred by Lessee in enforcing this provision) from the proceeds of any insurance; or in the event that Authority has obtained a faithful performance bond indemnifying Lessee, Lessee may call upon the bonding agent to correct said default or to pay the costs of such correction performed by or at the direction of Lessee;
(3) Exercise its right to maintain any and all actions at law or suits in equity compel Authority to correct or cause to be corrected said default; (4) Maintain and operate the Properties, without terminating this Lease; (5) With respect to a monetary default or material non-monetary default, terminate this Lease by written notice to Authority of its intention to do so.

SECTION 26. MISCELLANEOUS.

26.1 Governing Law. The laws of the State of California shall govern the interpretation and enforcement of this Lease.

26.2 Legal Actions. In addition to any other rights or remedies, either party may institute legal action to cure, correct or remedy any default, to recover damages for any default, or to obtain any other remedy consistent with the purpose of this Lease. Such legal actions must be instituted in the Superior Court of San Bernardino County, State of California, in any other appropriate court in that County, or in the Federal District Court in the Central District of California.

26.3 Acceptance of Service of Process. In the event that any legal action is commenced by Lessee against Authority, service of process on Authority shall be made by personal service upon the Chairman or Executive Director of Authority, or in such other manner as may be provided by law.

In the event that any legal action is commenced by Authority against Lessee, service of process on Lessee shall be made by personal service upon any officer of Lessee or in such other manner as may be provided by law, whether made within or without the State of California.

26.4 Attorneys’ Fees And Court Costs. In the event that either Authority or Lessee shall bring or commence an action to enforce the terms and conditions of this Lease or to obtain damages against the other party arising from any default under or violation of this Lease, then the prevailing party shall be entitled to and shall be paid reasonable attorneys’ fees and court costs therefor.

26.5 Inspection of Books And Records. Authority has the right (at Lessee’s office, upon not less than forty-eight (48) hours’ notice, and during normal business hours) to inspect the books and records of Lessee pertaining to the Property as pertinent to the purposes of this Lease. Lessee also has the right (at Authority’s office, upon not less than forty-eight (48) hours’ notice, and at all reasonable MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 181 of 204 Attachment No. 2

times) to inspect the books and records of Authority pertaining to the Property as pertinent to the purposes of this Lease.

26.6 Interest. Any amount due Authority that is not paid when due shall bear interest from the date such amount becomes due until it is paid. Interest shall be at a rate equal to the lesser of the discount rate established by the San Francisco office of the Federal Reserve Bank, plus two percent (2%), on the first day of the month such amount becomes due, and the maximum rate permitted by applicable law.

26.7 Notices. All notices, statements, demands, requests, consents, approvals, authorizations, offers, agreements, appointments or designations hereunder by either party to the other shall be in writing and shall be sufficiently given and served upon the other party, upon personal delivery or five (5) days after deposit within California in the United States mail, certified or registered mail, return receipt requested, postage prepaid and addressed as follows:

Authority: Montclair Housing Authority
5111 Benito Street
Montclair, California 91763
Attention: Executive Director
Lessee: Montclair Housing Corporation
5111 Benito Street
Montclair, California 91763
Attention: Executive Director
or to such other address as either party shall later designate for such purposes by written notice to the other party.

26.8 Time is of the Essence. Time is of the essence in the performance of the terms and conditions of this Lease.

26.9 Non-Merger of Fee And Leasehold Estates. If both Authority’s and Lessee’s estates in the Properties or both become vested in the same owner, this Lease shall nevertheless not be destroyed by application of the doctrine of merger except at the express election of Authority and Lessee’s Mortgagee. The voluntary or other surrender of this Lease by Lessee, or a mutual cancellation thereof, shall not work as a merger and shall, at the option of Authority, terminate all or any existing sublease or subtenancies or may, at the option of Authority, operate as an assignment to Authority of any or all such existing subleases or subtenancies.

26.10 Holding Over. The occupancy of the Properties after the expiration of the Term of this Lease shall be construed to be a tenancy from month to month, and all other terms and conditions of this Lease shall continue in full force and effect.

26.11 Conflict of Interest. No member, official or employee of Authority shall have any personal interest, direct or indirect, in this Lease nor shall any such member, official or employee participate in any decision relating to the Lease which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interested.

MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 182 of 204 Attachment No. 2

Lessee warrants that it has not paid or given, and will not pay or give, any third party any money or other consideration for obtaining this Lease.

26.12 Non-Liability of Authority Officials And Employees. No member, official or employee of Authority shall be personally liable to Lessee, or any successor in interest, in the event of any default or breach by Authority or for any amount which may become due to Lessee or successor or on any obligations under the terms of this Lease.

26.13 Relationship. The relationship between the parties hereto shall at all times be deemed to be that of landlord and tenant. The parties do not intend nor shall this Lease be deemed to create a partnership or joint venture.

26.14 Transactions with Affiliates. Lessee shall have the right to enter into transactions with subsidiaries, affiliates and other related entities for the purpose of leasing space, providing cleaning, maintenance and repair services, insurance policies and other purposes related to the use and development of the Properties, provided that all such costs, charges and rents are competitive with the costs, charges, rent and other sums which would be paid by or to, as the case may be, an unrelated third party.

26.15 Waivers And Amendments. All waivers of the provisions of this Lease must be in writing and signed by the appropriate authorities of Authority or Lessee.

The waiver by Authority of any breach of any term, covenant, or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition, or any subsequent breach of the same or any other term, covenant or condition herein contained. The subsequent acceptance of rent hereunder by Authority shall not be deemed to be a waiver of any preceding breach of Lessee of any term, covenant or condition of this Lease, regardless of Authority’s knowledge of such preceding breach at the time of acceptance of such rent. Failure on the part of Authority to require or exact full and complete compliance with any of the covenants or conditions of this Lease shall not be construed as in any manner changing the terms hereof and shall not prevent Authority from enforcing any provision hereof. All amendments hereto must be in writing and signed by the appropriate authorities of Authority and Lessee. The Lessee’s Mortgagee permitted by this Lease shall not be bound by any waiver or amendment to this Lease without Lessee’s Mortgagee giving its prior written consent.

26.16 Non-Merger With Agreement. None of the terms, covenants or conditions agreed upon in writing in the Agreement and other instruments between the parties to this Lease with respect to obligations to be performed, kept or observed by Lessee or Authority in respect to the Properties or any part thereof, shall be deemed to be merged with this Lease.

26.17 Duplicate Originals. This Lease is executed in three (3) duplicate originals, each of which is deemed to be an original.

26.18 Severability. If any provision of this Lease or the application thereof to any person or circumstances shall be invalid or unenforceable to any extent, the remainder of this Lease and the application of such provisions to other persons or circumstances shall not be affected thereby and shall be enforceable to the greatest extent permitted by law.

26.19 Terminology. All personal pronouns used in this Lease, whether used in the masculine, feminine, or neuter gender, shall include all other genders; the singular shall include the MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 183 of 204 Attachment No. 2

plural, and vice versa. Titles of sections are for convenience only, and neither limit nor amplify the provisions of the Lease itself. Except for terms expressly defined in this Lease, all terms shall have the same meaning as set forth in the Agreement.

26.20 Binding Effect. This Lease, and the terms, provisions, promises, covenants and conditions hereof, shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors and assigns.

26.21 Estoppel Certificate. Each of the parties shall at any time and from time to time upon not less than twenty (20) days’ prior notice by the other, execute, acknowledge and deliver to such other party a statement in writing certifying that this Lease is unmodified and is in full force and effect (or if there shall have been modifications that this Lease is in full force and effect as modified and stating the modifications), and the dates to which the rent has been paid, and stating whether or not to the best knowledge of the signer of such certificate such other party is in default in performing or observing any provision of this Lease, and, if in default, specifying each such default of which the signer may have knowledge, and such other matters as such other party may reasonably request, it being intended that any such statement delivered by Lessee may be relied upon by Authority or any successor in interest to Authority or any prospective mortgagee or encumbrancer thereof, and it being further intended that any such statement delivered by Authority may be relied upon by any prospective assignee of Lessee’s interest in this Lease or any prospective mortgagee or encumbrancer thereof.

Reliance on any such certificate may not extend to any default as to which the signer of the certificate shall have had no actual knowledge.

26.22 Force Majeure. The time within which Authority or Lessee is obligated herein to perform any obligation hereunder, other than an obligation that may be performed by the payment of money, shall be extended and the performance excused when the delay is caused by fire, earthquake or other acts of God, strike, lockout, acts of public enemy, riot, insurrection or other cause beyond the control of the applicable party.

26.23 Quiet Enjoyment. Landlord does hereby covenant, promise and agree to and with Tenant that Tenant, for so long as it is not in default hereof, shall and may at all times peaceable and quietly have, hold, use, occupy and possess the Properties throughout the Term.

MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 184 of 204 Attachment No. 2

IN WITNESS WHEREOF, the parties hereto have caused this Lease to be executed by their lawfully authorized officers.

AUTHORITY:

MONTCLAIR HOUSING AUTHORITY, a public
body corporate and politic
By:

Its:

LESSEE:

MONTCLAIR HOUSING CORPORATION, a
California nonprofit public benefit corporation
By:

Its:

MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 185 of 204 Exhibit A to Attachment No. 2

EXHIBIT A TO ATTACHMENT NO. 2

PROPERTY MAP
[To Be Attached]
MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 186 of 204 "1/4


5SBDU

-PU


5SBDU

-PU

MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 187 of 204 "1/

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MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 188 of 204 Exhibit B to Attachment No. 2

EXHIBIT B TO ATTACHMENT NO. 2

LEGAL DESCRIPTION
That certain real property located in the State of California, County of San Bernardino, City of Montclair, and described as follows:

APNS:
1009-273-19-0000
Tract 5156 Lot 159
1010-021-03-0000
Tract 3932 Lot 43
1009-273-25-0000
Tract 5156 Lot 165
MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 189 of 204 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA )
) ss.

COUNTY OF ____________ )
On _____________________________ , before me, _______________________________ , Notary Public, (Print Name of Notary Public)
personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public

OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form.

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT Individual
Corporate Officer
___________________________________________________________ Title(s)
___________________________________________________________ Title Or Type Of Document
Partner(s) Limited General
Attorney-In-Fact
Trustee(s)
Guardian/Conservator
Other:_____________________________________
Signer is representing:

Name Of Person(s) Or Entity(ies)
___________________________________________________________ ___________________________________________________________ ___________________________________________________________ Number Of Pages
___________________________________________________________ Date Of Documents
___________________________________________________________ Signer(s) Other Than Named Above
MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 190 of 204 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA )
) ss.

COUNTY OF ____________ )
On _____________________________ , before me, _______________________________ , Notary Public, (Print Name of Notary Public)
personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public

OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form.

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT Individual
Corporate Officer
___________________________________________________________ Title(s)
___________________________________________________________ Title Or Type Of Document
Partner(s) Limited General
Attorney-In-Fact
Trustee(s)
Guardian/Conservator
Other:_____________________________________
Signer is representing:

Name Of Person(s) Or Entity(ies)
___________________________________________________________ ___________________________________________________________ ___________________________________________________________ Number Of Pages
___________________________________________________________ Date Of Documents
___________________________________________________________ Signer(s) Other Than Named Above
MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 191 of 204 Attachment No. 3

ATTACHMENT NO. 3

CITY DEED

RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:

Montclair Housing Authority
5111 Benito Street
Montclair, California 91763
Attn: Executive Director
APN: ___________ [Space above for recorder.]
Exempt from recording fee and documentary transfer
tax pursuant to Government Code Section 27383 and
Revenue and Taxation Code Section 11928.

GRANT DEED
FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the CITY OF MONTCLAIR, a municipal corporation (“Grantor”), hereby grants to the MONTCLAIR HOUSING AUTHORITY, a public body, corporate and politic, that certain real properties located in the County of San Bernardino, State of California, more particularly described on Exhibit A attached hereto and incorporated herein by this reference.

CITY OF MONTCLAIR,
a municipal corporation
By:

City Manager
MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 192 of 204 Exhibit A to Attachment No. 3

EXHIBIT A TO ATTACHMENT NO. 3

LEGAL DESCRIPTION
The land referred to herein below is situated in the City of Montclair, County of San Bernardino, State of California and is described as follows:

APNS:
1009-273-19-0000
Tract 5156 Lot 159
1010-021-03-0000
Tract 3932 Lot 43
1009-273-25-0000
Tract 5156 Lot 165
MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 193 of 204 Certificate of Acceptance to Attachment No. 3

CERTIFICATE OF ACCEPTANCE
This is to certify that the fee interest in real property conveyed under the foregoing Grant Deed by the City of Montclair, a municipal corporation, as to the following properties:

Real property in the City of Montclair, County of San Bernardino, State of California, described as follows:

APNS:
1009-273-19-0000
Tract 5156 Lot 159
1010-021-03-0000
Tract 3932 Lot 43
1009-273-25-0000
Tract 5156 Lot 165
is hereby accepted by the Executive Director of the Montclair Housing Authority (“Authority” and “Grantee”) on behalf of the governing board of the Authority pursuant to authority conferred by action of the governing board of the Authority on ________________ __, ____, and the Grantee consents to recordation thereof by its duly authorized officer.

MONTCLAIR HOUSING AUTHORITY,
a public body, corporate and politic
By:

Executive Director
MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 194 of 204 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA )
) ss.

COUNTY OF ____________ )
On _____________________________ , before me, _______________________________ , Notary Public, (Print Name of Notary Public)
personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public

OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form.

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT Individual
Corporate Officer
___________________________________________________________ Title(s)
___________________________________________________________ Title Or Type Of Document
Partner(s) Limited General
Attorney-In-Fact
Trustee(s)
Guardian/Conservator
Other:_____________________________________
Signer is representing:

Name Of Person(s) Or Entity(ies)
___________________________________________________________ ___________________________________________________________ ___________________________________________________________ Number Of Pages
___________________________________________________________ Date Of Documents
___________________________________________________________ Signer(s) Other Than Named Above
MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 195 of 204 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA )
) ss.

COUNTY OF ____________ )
On _____________________________ , before me, _______________________________ , Notary Public, (Print Name of Notary Public)
personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public

OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form.

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT Individual
Corporate Officer
___________________________________________________________ Title(s)
___________________________________________________________ Title Or Type Of Document
Partner(s) Limited General
Attorney-In-Fact
Trustee(s)
Guardian/Conservator
Other:_____________________________________
Signer is representing:

Name Of Person(s) Or Entity(ies)
___________________________________________________________ ___________________________________________________________ ___________________________________________________________ Number Of Pages
___________________________________________________________ Date Of Documents
___________________________________________________________ Signer(s) Other Than Named Above
MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 196 of 204 Personnel Committee Minutes – April 3, 2023 Page 1 of 1

MINUTES OF THE MEETING OF THE MONTCLAIR

PERSONNEL COMMITTEE HELD ON MONDAY,
APRIL 3, 2023, AT 8:35 P.M. IN THE CITY
ADMINISTRATIVE OFFICES, 5111 BENITO STREET,

MONTCLAIR, CALIFORNIA
I. CALL TO ORDER
Mayor Pro Tem Johnson called the meeting to order at 8:35 p.m.

II. ROLL CALL

Present: Mayor Pro Tem Johnson, Council Member Ruh, City Manager Starr, and Assistant City Manager/Director of
Human Services Richter
III. APPROVAL OF MINUTES
A. Minutes of the Regular Personnel Committee Meeting of March 20, 2023.

Moved by Council Member Ruh, seconded by Mayor Pro Tem
Johnson, and carried unanimously to approve the minutes of the Personnel Committee meeting on March 20, 2023.

IV. PUBLIC COMMENT – None
V. CLOSED SESSION
At 8:36 p.m., the Personnel Committee went into Closed Session regarding personnel matters related to appointments, resignations/ terminations, and evaluations of employee performance.

At 8;55 p.m., the Personnel Committee returned from Closed Session.

Mayor Pro Tem Johnson stated that no announcements would be made at this time.

VI. ADJOURNMENT
At 8;55 p.m., Mayor Pro Tem Johnson adjourned the Personnel Committee.

Submitted for Personnel Committee approval,
Edward C. Starr
City Manager
MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 197 of 204

PENDING

APPROVAL
City Council Adjourned Meeting Minutes – April 3, 2023 Page 1 of 1

MINUTES OF THE ADJOURNED MEETING OF THE MONTCLAIR
CITY COUNCIL HELD ON MONDAY, APRIL 3, 2023, AT 5:45 P.M.

IN THE CITY COUNCIL CHAMBERS, 5111 BENITO STREET,

MONTCLAIR, CALIFORNIA
I. CALL TO ORDER
Mayor Dutrey called the meeting to order at 5:45 p.m.

II. ROLL CALL

Present: Mayor Dutrey; Mayor Pro Tem Johnson; Council Members Ruh, Lopez and Martinez
City Manager Starr; Assistant City Manager/Director of Human Services Richter; Director of Finance Kulbeck; Executive Director of Public Safety/Police Chief Avels; Director of Public Works/City Engineer Heredia; City Clerk/Human Resources Manager Myrick III. COUNCIL WORKSHOP
A. Parks and Recreation Master Plan Update by KTUA
Jacob Leon of KTUA, presented an update on the development of a Parks and Recreation Master Plan. He explained the processes that KTUA used to seek input from residents regarding desired amenities and changes for parks in the community. This included holding community workshops, participating in public events, and inviting residents to participate in a poll.

Mayor Dutrey asked if this plan includes upgrading baseball fields at Saratoga Park.

City Manager Starr stated the Parks and Recreation Master Plan is a general analysis of current and future needs for park development, and specific park recommendations will come later.

Mayor Dutrey expressed his disappointment that the plan did not specifically address anticipated improvements to Saratoga Park.

Council Member Ruh proposed expanding the use of shared spaces in order to increase aggregate park space, such as using space at schools, private communities, and organizations. He also spoke in favor of updating existing parks as opposed to developing new parks.

Council Member Lopez mentioned that adding an amphitheater and designated soccer fields would be beneficial for residents. He further stated his concern about an increase in crime in parks.

Mayor Pro Tem Johnson advised residents whose homes abut the San Antonio Channel have reported increased burglaries and would prefer the City not provide amenities such as exercise stations near residential homes to deter loitering.

Council Member Martinez thanked the community for their engagement and stated adding and improving parks will give youth positive outlets for recreation purposes. She further stated she does not believe that crime will increase but perhaps will decrease.

IV. PUBLIC COMMENT
 Annette Brunske suggested the plan should be to focus on improving parks that currently exist in the City. She stated she would like a walking path around MacArthur Park.

V. ADJOURNMENT
At 6:42 p.m., the City Council was adjourned.

Submitted for City Council approval,

Andrea M. Myrick
City Clerk
MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 198 of 204

PENDING

APPROVAL
Joint City Council/Successor Agency Board/Montclair Housing Corporation Board/Montclair Housing Authority Commission/ Montclair Community Foundation Board Meeting Minutes – April 3, 2023 Page 1 of 6

MINUTES OF THE REGULAR JOINT MEETING OF THE MONTCLAIR

CITY COUNCIL, SUCCESSOR AGENCY AND MONTCLAIR HOUSING

CORPORATION BOARDS, MONTCLAIR HOUSING AUTHORITY

COMMISSION, AND MONTCLAIR COMMUNITY FOUNDATION
BOARD HELD ON MONDAY, MARCH 20, 2023, AT 7:00 P.M. IN
THE CITY COUNCIL CHAMBERS, 5111 BENITO STREET,

MONTCLAIR, CALIFORNIA
I. CALL TO ORDER
Mayor/Chair Dutrey called the meeting to order at 7:00 p.m.

II. INVOCATION
Pastor Donald Rucker, Christian Development Center, gave the invocation.

III. PLEDGE OF ALLEGIANCE
Council Member/Director Martinez led meeting participants in the Pledge.

IV. ROLL CALL

Present: Mayor/Chair Dutrey; Mayor Pro Tem/Vice Chair Johnson; Council Members/Directors Ruh, Martinez, and Lopez
City Manager/Executive Director Starr; Assistant City Manager/ Director of Human Services Richter; Director of Finance Kulbeck; Executive Director of Public Safety/Police Chief Avels; Director of Public Works/City Engineer Heredia; City Attorney Robbins; City Clerk/Human Services Manager Myrick
V. PRESENTATIONS
A. Community Activities Commission Presentation of 2023 Volunteer Recognition Awards
Commissioner Ferraro recognized the following volunteers for their volunteerism with the City:
 Morgan Rucker for helping those in need.
 Mitchell Tran for commitment to Montclair youth programs.  Cherul Sackett for commitment to Foothill Family Shelter.  Irma Sanchez for commitment to Montclair Chamber of Commerce.  Mariza Hernandez for commitment to Montclair Little League.  Ester Vargas Pipersky for commitment to Meals on Wheels Program.  Sharon Johnson for commitment to Montclair Senior Nutrition Program.  Tom Padilla for commitment to serving senior citizens of Montclair.  Judith Gomez for commitment to Vernon Middle School.
 Sue Yoakum for dedication to Women’s Club of Montclair.

All volunteers were presented with plaques from the City and Certificates of Recognition from the offices of San Bernardino County Fourth District Supervisor Curt Hagman, California Assembly Member Freddie Rodriguez, California Senator Susan Rubio, and U.S. Representative Norma Torres.

B. Proclamation Declaring April 2023 as “Child Abuse Prevention Month” in the City of Montclair
Mayor Dutrey presented a proclamation declaring April 2023 as Child Abuse Prevention Month to Wendy Alvarez, Interim Network Officer, Children’s Network of San Bernardino County.

C. Proclamation Declaring April 2023 as “DMV/Donate Life California Month” in the City of Montclair
Maribel Galvan accepted a proclamation from Mayor Dutrey declaring April as DMV/Donate Life California Month.

MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 199 of 204

PENDING

APPROVAL
Joint City Council/Successor Agency Board/Montclair Housing Corporation Board/Montclair Housing Authority Commission/ Montclair Community Foundation Board Meeting Minutes – April 3, 2023 Page 2 of 6 D. Proclamation Declaring April 22, 2023 as “Arbor Day” in the City of Montclair
Public Works Director Monica Heredia was presented a proclamation from Mayor Dutrey declaring April 22nd as Arbor Day. She stated that on this day the City would be holding tree–planting events at both Sunset and MacArthur Parks.

E. Proclamation Declaring April 29, 2023 as “World Wish Day” in the City of Montclair
Ronnie Medrano, Volunteer Services Coordinator for Make–a–Wish OC and IE, accepted the World Wish Day proclamation presented by Mayor Dutrey.

VI. PUBLIC COMMENT
 Carolyn Raft, West Valley Mosquito and Vector Control District Board Secretary and Representative for Montclair, gave an update on what the agency is doing to eradicate mosquitoes in the area, including being the first district in California to release sterile males to lower the population of mosquitoes. She also stated the new director has been able to bring in the City of Upland, which has helped to increase revenues.
 Jordi Ubaldo, Event Coordinator, Montclair Chamber of Commerce, announced that the Chamber will be hosting a Networking Breakfast on April 13, 2023, at 8:30 a.m. at the Montclair Police Department.

VII. PUBLIC HEARINGS — None
VIII. CONSENT CALENDAR
ACTION – Consent Calendar
ACTING: City Council
Successor Agency Board
Montclair Housing Corporation Board
Montclair Housing Authority Commissioners
Montclair Community Foundation Board
MOTION: Approve the Consent Calendar as presented.

MADE BY:

SECOND BY:

Council Member/Director Lopez
Mayor Pro Tem/Vice Chair Johnson
AYES:

NOES:

ABSTAIN:

ABSENT:

Martinez, Ruh, Johnson, Dutrey, Lopez
None
None
None
RESULT: Motion carried 5–0.

A. Approval of Minutes

1. Regular Joint Meeting — March 20, 2023
ACTION – Consent Calendar – Item A–1
ACTING: City Council
Successor Agency Board
Montclair Housing Corporation Board
Montclair Housing Authority Commissioners
Montclair Community Foundation Board
RESULT: Approved on Consent Calendar; motion carried 5–0.

MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 200 of 204

PENDING

APPROVAL
Joint City Council/Successor Agency Board/Montclair Housing Corporation Board/Montclair Housing Authority Commission/ Montclair Community Foundation Board Meeting Minutes – April 3, 2023 Page 3 of 6 B. Administrative Reports

1. Consider Approval of City Warrant Register and Payroll Documentation
ACTION – Consent Calendar – Item B–1
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.

2. Consider Authorizing the Destruction of Certain Obsolete Public Records Pursuant to the City of Montclair Records Retention Schedule
ACTION – Consent Calendar – Item B–2
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.

3. Consider Authorizing the Establishment of an Executive Director of Engineering and Major Projects Manager
Classification in the Public Works Department
Consider Authorizing a $50,000 Allocation from the
Unanticipated Personnel Adjustments Special Purpose
Reserve Fund to Provide for Wages and Benefits for the
Candidate Appointed to the Executive Director of
Engineering and Major Projects Manager Position for the Balance of Fiscal Year 2022–23
ACTION – Consent Calendar – Item B–3
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.

C. Agreements

1. Consider Award of Contract to Superior Pavement Markings in the Amount of $460,900 for the Flashing Stop Sign
Replacement Program
Consider Approval of Agreement No. 23–17 with Superior
Pavement Markings for the Flashing Stop Sign Replacement Program, Subject to Any Revisions Deemed Necessary by the City Attorney
Consider Authorizing the Purchase of 40 Additional Flashing Stop Signs in the Amount of $64,256.60
Consider Authorizing a $23,045 Construction Contingency for the Project
Council Member Lopez received clarification regarding the number of intersections that would receive flashing stop signs.

ACTION – Consent Calendar – Item C–1
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.

2. Consider Approval of Agreement No. 23–30 with LD King, Inc. for Engineering Design Services for Street, Sewer, and Storm Drain Improvements for the Arrow Highway Improvement
Project, Subject to Any Revisions Deemed Necessary by the City Attorney
MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 201 of 204

PENDING

APPROVAL
Joint City Council/Successor Agency Board/Montclair Housing Corporation Board/Montclair Housing Authority Commission/ Montclair Community Foundation Board Meeting Minutes – April 3, 2023 Page 4 of 6 Consider Approval of Agreement No. 23–21 with AGA
Engineers, Inc. for Engineering Traffic Signal Upgrades at Four Intersections in Support of the Arrow Highway
Improvement Project, Subject to Any Revisions Deemed
Necessary by the City Attorney
Consider Authorizing a $79,470 Engineering Design Services Contingency for Agreement Nos. 23–21 and 23–30
Consider Authorizing a $296,000 Appropriation from the
Redevelopment Project Area No. III Tax Allocation Bond Fund and a $14,000 Appropriation from the Sewer Fund for Costs Related to Agreement Nos. 23–21 and 23–30
ACTION – Consent Calendar – Item C–2
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.

D. Resolutions

1. Consider Adoption of Resolution No. 23–3401 Rescinding and Replacing Resolution No. 17–3145 Designating Restricted Parking on Public Streets and Alleys to Include Restricted Parking on the South Side of Orchard Street Fronting Sunset Park
Mayor Pro Tem Johnson received clarification that the new parking restriction would not allow for residential permit parking.

ACTION – Consent Calendar – Item D–1
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.

2. Consider Adoption of Resolution No. 23–3402 Approving the Tree City USA Application for 2023 and Authorizing the
Director of Public Works to Sign the Application
ACTION – Consent Calendar – Item D–2
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.

IX. PULLED CONSENT CALENDAR ITEMS — None
X. COUNCIL WORKSHOP
A. Proposed Ordinance Regulating the Parking of Oversized and Recreational Vehicles on Public Streets
The City Council continued this presentation to an adjourned meeting to be held on Monday, May 1, 2023, at 5:45p.m. in the City Council Chambers.

XI. COMMUNICATIONS
A. Department Reports

1. Human Services Department — Upcoming Events & Programs Assistant City Manager/Director of Human Services Richter provided information on upcoming programs and events
including the Summer Day Camp that will be held at the Youth Center, with pre–registration starting on May 1st. She gave a reminder that the Easter Eggstravaganza that will be on April 8th at Alma Hofman Park and the Montclair Community Center, MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 202 of 204

PENDING

APPROVAL
Joint City Council/Successor Agency Board/Montclair Housing Corporation Board/Montclair Housing Authority Commission/ Montclair Community Foundation Board Meeting Minutes – April 3, 2023 Page 5 of 6 and also announced the Youth Center will be opening April 17th, and is free to all youth grades 7–12 who live in Montclair or attend a Montclair school during the 2022–23 school year.

B. City Attorney
City Attorney Robbins pulled from the agenda the following item and stated the City Council is no longer requested to hold a closed session:

1. Closed Session Pursuant to Government Code
§54956.9(d)(1) Regarding Pending Litigation
Gavilanes v. City of Montclair
C. City Manager/Executive Director — None
D. Mayor/Chair

1. Notice – Cancellation of April 17, 2023 Regular Joint Meeting Mayor/Chair Dutrey announced the April 17, 2023 regular joint meeting is cancelled due to the anticipated lack of a quorum.

2. Mayor Dutrey recognized the following that will occur in the Month of April: Passover, Administrative Professionals Day, Easter/Good Friday, Arab American Heritage Month and Cancer Control Month. He also commented on the success of Golden Girls Softball League’s opening day event.

E. Council Members/Directors

1. Council Member/Director Ruh attended opening day of the Golden Girls Softball League and commented on the great turnout. He also attended a recent Metropolitan Transit Authority meeting, which is making the Gold Line its number one priority. He mentioned his friend who is a teacher gave a generous gift of books to the Montclair After–School Program.

He further recognized Community Activities Commissioner Diane Wells for being named Montclair’s Woman of the Year for California’s 22nd Senate District by Senator Rubio and
acknowledged all volunteers for their contributions to the City.

2. Council Member/Director Lopez congratulated Carolyn Raft for serving ten years on the West Valley Mosquito and Vector Control District Board. He announced that Tokyo Kitchen, would be offering 20 percent off in celebration of their one–year reopening anniversary. He further encouraged residents to watch their driving speed after a horrific 5–car accident occurred in the City over the weekend.

3. Mayor Pro Tem/Vice Chair Johnson stated she attended the Golden Girls Softball League opening day and was proud to wear a T–shirt from the 1999 All–Stars Team. She commended Economic Development and Housing staff for providing a tour of low–income multifamily properties within the City and the services and resources they provide for residents. She noted Monte Vista Water District held a successful water wise event and she appreciated City Staff for providing fun resources for young attendees.

F. Committee Meeting Minutes
The following committee minutes were received and filed for informational purposes:

1. Public Works Committee Meeting – October 20, 2022

2. Public Works Committee Meeting – November 17, 2022

3. Public Works Committee Meeting – February 16, 2023
MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 203 of 204

PENDING

APPROVAL
Joint City Council/Successor Agency Board/Montclair Housing Corporation Board/Montclair Housing Authority Commission/ Montclair Community Foundation Board Meeting Minutes – April 3, 2023 Page 6 of 6

4. Personnel Committee – March 20, 2023
XII. CLOSED SESSION — None
XIII. CLOSED SESSION ANNOUNCEMENTS — None
XIV. ADJOURNMENT
At 8:26 p.m., the Successor Agency Board, Montclair Housing Corporation Board, Montclair Housing Authority Commission, and Montclair Community Foundation Board were adjourned.

At 8:26 p.m., the City Council was adjourned to Monday, May 1, 2023 at 5:45 p.m. in the City Council Chambers for a workshop on the proposed Ordinance regulating the parking of oversized and recreational vehicles on public streets.

The meeting was adjourned in memory of Mary Teresa Bianco–Dufour whose son Gary Dufour started his career in the Montclair Police Department.

Submitted for City Council/Successor Agency Board/Montclair Housing Corporation Board/ Montclair Housing Authority
Commission/Montclair Community Foundation Board approval,

Andrea Myrick,
City Clerk
MONTCLAIR CITY COUNCIL MEETING – 05/01/2023 Page 204 of 204

CITY OF MONTCLAIR

TREASURER'S REPORT

FOR THE MONTH ENDING
MARCH 31, 2023

TABLE OF CONTENTS
SCHEDULE 1
STATEMENTS OF COMPLIANCE WITH INVESTMENT POLICY AND INVESTMENT STRATEGY FOR MARCH 31, 2023 SCHEDULE 2

STATEMENT OF CASH AND INVESTMENTS BY FUND
SCHEDULE 3

STATEMENT OF CASH AND INVESTMENT ACCOUNTS
GRAPH

CASH AND INVESTMENTS BY TYPE

COMPLIANCE STATEMENT

CITY OF MONTCLAIR

STATEMENTS OF COMPLIANCE WITH THE INVESTMENT POLICY

AND INVESTMENT STRATEGY
MARCH 31, 2023
The City has the following amount invested in various financial instruments. This conforms with the investment policy approved by the City Council.

Total Investments $33,170,030
During the current month the City was in compliance with the internal control procedures set forth in the Investment Policy.

INVESTMENT STRATEGY FOR THE UPCOMING MONTH
SCHEDULE 1
During the upcoming month, surplus moneys will be invested in the Local Agency Investment Fund and other investments authorized in the Investment Policy. The City has sufficient monies available to meet expenditures during the next six month period.

SCHEDULE2

CITY OF MONTCLAIR

STATEMENT OF CASH AND INVESTMENTS BY FUND
AS OF MARCH 31, 2023
Beginning lnterfund Ending
Fund Balance Recelets Disbursements Transfers Balance
General Fund $ 5,821,926.42 $ 3,301,254.00 $ 3,185,534.28 $ 6,686.65 $ 5,944,332.79 (1) Gas Tax Fund (17,835.76} 74,398.10 138,551.70 (81,989.36) (2) Road Maintenance - Section 2032 1,706,348.51 124,913.82 1,831,262.33 Measure I Fund 5,321,255.89 76,919.36 5,398,175.25
Traffic Safety 63,270.00 14,066.07 77,336.07
Disability Access Fund - Bus. License 50,385.30 904.00 51,289.30 Park Maintenance 24,611.15 3,803.12 20,808.03
Park Development 1,155,507.06 700.00 1,156,207.06
CDBG (664,662.97} 546,354.69 64,736.15 (183,044.43} (2) SB2 Planning Grant (58,642.50) (58,642.50} (2)
Air Quality Improvement Trust 105,629.94 11,712.68 117,342.62 Senior Nutrition Program (55,314.76) 11,557.91 19,790.50 (63,547.35) (2) American Resue Plan 4,794,353.00 4,794,353.00
Forfeiture Fund - State 113,953.63 113,953.63
Proposition 30/SB 109 88,596.62 566.67 88,029.95
SB 509 Public Safety 326,173.47 60,421.00 26,476.29 360,118.18 Forfeiture Fund-Federal/DOJ 514,187.58 84,104.33 21,599.60 576,692.31 Asset Seizure Fund 0.73 020 0.93
Section 11489 Subfund 35,448.75 35,448.75
Fed Asset Forfeiture-Treasury 126,897.52 126,897.52
School District Grant Fund
State Supplemental Law Enforce 529,966.05 199,972.00 329,994.05 Local Law Enforcement Block Gr 18.67 18.67
PC 1202.5 Crime Prevention 2,342.86 10.86 2,353.72
Recycling Grant Fund 124,098.51 6,123.00 130,221.51
Statewide Park Dev Grant 174,976.00 174,976.00
Homeless Housing Assist Preven 2,384.43 20,000.00 2,800.00 19,584.43 (2) LEAP Grant (109,186.50) 50,210.25 (58,976.25) (2)
After School Program Fund (501,799.02) 159,368.19 227,900.46 (570,331.29) (2) City of Hope 1,290.78 1,290.78
Safety Dept. Grants 513,164.36 419.00 512,745.36
OSMD Immunization Grant 1,370.50 1,370.50 (2)
Kaiser Permanente Grant 2,886.87 2,886.87
Resource Center Grant - OMSD 28,994.24 2,354.70 26,639.54 Title IIIB Sr Support Services (7,017.03} 2,402.61 4,687.81 (9,302.23) (2) Healthy Community Strategic Plan 14,823.19 14,823.19
ASES Supplemental Grant 70,528.20 14,105.64 84,633.84
E.M.S. - Paramedic Fund 4,230.12 1,973.47 1,995.55 4,208.04 (3) Economic Development 3,801,102.89 6.56 1,448,314.44 2,352,795.01 City Contributions/Donations Fund 500.00 500.00
Sewer Operating Fund 2,638,309.49 641,999.45 802,706.95 2,477,601.99 Sewer Replacement Fund 2,439,666.85 2,439,666.85
CFO 2011-1 (Paseos} 177,677.73 25,173.27 4,445.30 198,405.70 CFO 2011-2 (Arrow Station) 108,400.18 1,413.14 899.88 108,913.44 Inland Empire Utility Agency 4,051,622.84 4,051,622.84
Sewer Expansion Fee Fund 869,951.34 869,951.34
Developer Impact Fees - Local 1,282,118.12 149.00 1,282,267.12 Developer Impact Fees - Regional 278,054.82 335.00 278,389.82 Burrtec Pavement Impact Fees 216,595.38 216,595.38
PUC Reimbursement Fund-MVGS 262,502.41 262,502.41
Utility Underground In-Lieu 383,396.52 383,396.52
General Plan Update Fee 109,457.75 665.64 110,123.39
Housing Fund 555,708.20 555,708.20
Public Education/Govt. PEG Fee Fund 113,981.64 113,981.64 Infrastructure Fund (611,779.32) 59,938.26 (551,841.06} (4) COVID-19 (92,796.74} 0.01 (92,796.73)
Successor Agency Bonds-Taxable 4,853,146.40 4,853,146.40 Successor Agency Bonds-Tax Exempt 8,006,107.60 17,175.63 7,988,931.97 2021 Lease Revenue Bond Proceeds (1,031,365.13) 823,989.25 (1,855,354.38) 2014 Lease Revenue Bond Debt Svc (326,779.82) 192,101.21 794,193.75 (928,872.36) (5) 2021 Lease Revenue Bond Debt Svc 1,641,440.63 1.66 1,647,206.25 (5,763.96) Pension Obligation Bond Debt Svc 3,664,452.49 3,664,452.49 Contingency Fund 0.96 0.96 (1)
Assigned General Fund Reserves 19,577,048.42 17,678.59 {23,283.00} 19,536,086.83 (1) TOTALS $ 73,273,683.46 $ 5,483,283.38 $ 9,457,797.87 $ {16,596.35} $ 69,28Z,572.62 Negative Cash Notes follow this presentation.

Notes on Negative Cash Balances
(1) The General Operating Fund may have a negative cash for the majority of the fiscal year awaiting property and sales tax collections. This is covered by the Contingency Fund and other General Fund Reserve Funds until those collections are received. As Contingency and General Reserves exceed this negative, the City is not utilizing restricted resources. (2) These are reimbursable grant funds that utilize general pool monies initially to cover expenditures pending reimbursement from the granting agencies. Therefore, it is not uncommon for these to be negative until that reimbursement is received. (3) This fund has operational deficits annually. At the end of the fiscal year it is restored by a General Fund Transfer. (4) The Infrastructure Fund receives transfers from other funds to accomplish infrastructure projects. Those transfers are usually recorded when the projects nears completion or prior to mid-year budget preparation. Any negative in that fund will be eliminated at those times. Transfers from these funds (C.D.B.G., Gas Tax, Measure I, etc.) may go negative on cash pending collections of these revenues. In this way we can determine if obligations for projects are exceeding current resources. ( 5) This debt service operation utilizes transaction and use taxes which are part of the sales tax and Successor Agency property taxes. These have been sufficient in prior fiscal years to cover the necessary debt service; however, they are not completely received until fiscal year-end. Once debt service is covered the excess will be transferred to the General Fund.

CITY OF MONTCLAIR

STATEMENT OF CASH AND INVESTMENT ACCOUNTS
AS OF MARCH 31, 2023
Par Value

CHECKING ACCOUNT
Checking Account
Asset Seizure Account
Purchase
Date
CASH W/FISCAL AGENT, CD's, LAIF DEPOSITS, AND
SHORT-TERM U.S. AGENCY SECURITIES
Local Agency Investment Fund (LAIF)
First American Government
U.S. AGENCY SECURITIES
TOTAL
Current market values obtained from US Bank.

Maturity
Date
Coupon
Interest
Rate

2.870%
Current
Market
Value
30,570,348.13
2,000,000.00
$ 32,570,348.13
$
Balance
at Cost
31,170,029.58
2,000,000.00
SCHEDULE 3
Totals
$ 36,110,073.46
$ 2,469.58
$33,170,029.58
$
$ 69,282,572.62
LAI

45.00%

CITY OF MONTCLAIR

CASH AND INVESTMENTS BY TYPE
March 31, 2023
Total Cash & Investments $69,282,573
■ Investments

2.90%
□ Checking

52.10%

CITY OF MONTCLAIR AS SUCCESSOR TO

THEREDEVELOPMENTAGENCY

TREASURER'S REPORT

FOR THE MONTH ENDING
March 31, 2023

CITY OF MONTCLAIR AS SUCCESSOR TO

THE REDEVELOPMENT AGENCY

STATEMENT OF CASH BY FUND
March 31, 2023

COMBINED OPERATING FUND
Operating (2,891.04) $ (2,891.04)
LRPRP Fund
Operating 0.00 $ 0.00
RORF 632,875.34
RORF Area I 0.00
RORF Area II 0.00
RORF Area Ill 0.00
RORF Area IV 0.00
RORF Area V 0.00
RORF Area VI 0.00 $ 632,875.34
TOTAL CASH $ 629,984.30
Checking Account
US Bank

TOTAL CASH
NOTE:

CITY OF MONTCLAIR AS SUCCESSOR TO

THE REDEVELOPMENT AGENCY

STATEMENT OF CASH
March 31, 2023
629,984.30
629,984.30
In accordance with State law, the Successor Agency receives the monies necessary to cover its obligations for the upcoming six month period. The monies are received in January and June of each year.

The Successor Agency has sufficient funds available to meet expenditures during the upcoming six-month period.

CITY OF MONTCLAIR AS SUCCESSOR TO

THE REDEVELOPMENT AGENCY

WARRANT REGISTER

FOR THE MONTH ENDING
March 31, 2023
City of Montclair
Final Warrant Register
Council Date 05/01/2023
Regular Warrants
Checking Account: Successor to the RDA
SRDA Combined Operating Fund
RORF
(Redevelopment Obligation
Retirement Funds)
Warrants

0.00 0.00
US Bank
transfers
9,211.19
2,579,009.50

0.00 2,588,220.69
Area Totals
9,211.19
2,579,009.50
March 2023 Total 2,588,220.69
Note: Reimburse City for 03/02 payrolls
Reimburse City for 03/16 payrolls
Reimburse City for 03/30 payrolls
RORF-2019 Series A&B Bond Payment
Vice Chair Johnson
Book Transfer Daily Activity Detail

CITY OF MONTCLAIR
SinglePoint
Reported Activity From 03/01/2023 To 03/31/2023
Printed on 04/10/2023 at 5: 17 PM PDT
.bank
Effective Date Amount From: Debit Account Number To: Credit Account Number Status 03/30/2023
Debit Account Name
Debit Account Type
Credit Account Name
Credit Account Type
Template Name
Memo
Initiate Date
Initiate Time
Initiated By
Completed Date
Completed Time
$2891.04 153499275813

CITY OF MONTCLAIR SUCCESSOR AGENCY
DOA

CITY OF MONTCLAIR GENERAL ACCOUNT
DOA
Reimb City for 03/30/23 Payroll
03/30/2023
08:03PM CDT

JKULBECK
03/30/2023
08:03PM CDT
153499275805 Completed
Effective Date Amount From: Debit Account Number To: Credit Account Number Status 03/15/2023
Debit Account Name
Debit Account Type
Credit Account Name
Credit Account Type
Template Name
Memo
Initiate Date
Initiate Time
Initiated By
Completed Date
Completed Time
$3458.81 153499275813

CITY OF MONTCLAIR SUCCESSOR AGENCY
DOA

CITY OF MONTCLAIR GENERAL ACCOUNT
DOA
Reimb City for 03/16/23 Payroll
03/15/2023
07:43PM CDT

JKULBECK
03/15/2023
07:43PM CDT
153499275805 Completed
Effective Date Amount From: Debit Account Number To: Credit Account Number Status 03/02/2023
Debit Account Name
Debit Account Type
Credit Account Name
Credit Account Type
Template Name
Memo
Initiate Date
Initiate Time
Initiated By
Completed Date
Completed Time
Total Number of Book Transfers:

Total Amount of Book Transfers:
--- End of Report ---

$2861.34 153499275813

CITY OF MONTCLAIR SUCCESSOR AGENCY
ODA

CITY OF MONTCLAIR GENERAL ACCOUNT
DOA
Reimb City for 03/02/23 Payroll
03/02/2023
10:03AM CDT

JKULBECK
03/02/2023
10:03AM CDT
3 $9,211.19
153499275805 Completed
Printed on 04/10/2023 at 5:17 PM PDT
Wire Transfer Daily Activity Summary

CITY OF MONTCLAIR
SinglePoint
Reported Activity From 03/01/2023 To 03/30/2023
Printed on 04/10/2023 at 5:23 PM PDT
Debit Account Number: 153499275813
Total Transactions Listed: 2
bank~
Repetitive Beneficiary Account Number/ Fed Ref/
Send Date Amount Control No ID Type Beneficiary Name PAR No SWIFT Ref Status 03/13/2023
03/13/2023

$793,553.96
$1,785,455.54
137355777 USBank SRDAB
137355759 USBank SRDAA
FED
FED
180121167365
U.S. Bank Trust N.A.
180121167365
U.S. Bank Trust N.A.
230313015773 Completed
230313015644 Completed
Printed on 04/10/2023 at 5:23 PM PDT

CITY OF MONTCLAIR

HOUSING CORPORATION

TREASURER'S REPORT

FOR THE MONTH ENDING
March 31, 2023

TABLE OF CONTENTS
SCHEDULE 1 - STATEMENT OF CASH AND INVESTMENTS

CASH AND INVESTMENTS GRAPH
Checking Account
US Bank
Investments
LAIF

CITY OF MONTCLAIR

HOUSING CORPORATION

STATEMENT OF CASH AND INVESTMENTS
March 31, 2023
Interest
Rate

2.87%
Market
Value
1,700,952.08

TOTAL CASH & INVESTMENTS
NOTE:

Schedule 1
Book
Value
246,871.62
1,733,208.37
1,980,079.99
Pursuant to the Corporation's Investment Policy, all moneys are invested in banks, the Local Agency Investment Fund, and in securities with maturities of no greater than three years.

The Corporation has sufficient funds available to meet expenditures during the upcoming six-month period.

The Corporation is in compliance with the internal control procedures set forth in its Investment Policy.

Checking Acct

12.5%

CITY OF MONTCLAIR

HOUSING CORPORATION

CASH AND INVESTMENTS GRAPH
March 31, 2023
Total Cash & Investments - $1,980,080
Local Agency Investment
Fund

87.5%

CITY OF MONTCLAIR

HOUSING CORPORATION

WARRANT REGISTER

FOR THE MONTH ENDING
March 31, 2023
ACH
Warrants Transfers

0.00 0.00
March 2023 Total
US Bank transfers:

Vice Chair Johnson
City of Montclair
Final Warrant Register
Council Date 05/01/2023
Regular Warrants
Checking Account: MHC
Voided
Checks

0.00 US Bank
transfers
39,608.67
Totals
39,608.67
39,608.67
Accounts Payable
Checks by Date - Summary by Check Number
User:

Printed:

Check No
5444
5445
5446
5447
5448
5449
5450
5451
cramirez
4/10/2023 5 :26 PM
Vendor No
Hugo00l
Land012
mont002
Perf003
Sout018
Mont002
Mont074
Sout018
Vendor Name Check Date
Hugo Jaramillo 03/02/2023
Landscape Maintenance Unlimited 03/02/2023
City of Montclair 03/02/2023
Perforn1ance Construction & Remodeling 11 03/02/2023
Southern California Edison Co
City of Montclair
Monte Vista Water District
Southern California Edison Co
03/02/2023
03/16/2023
03/16/2023
03/16/2023

MONTCLAI
Report Total (8 checks):

AP Checks by Date - Summary by Check Number (4/10/2023 5 :26 PM) Check Amount
10,550.00
4,710.00
11,079.84
10,195.00

14.18 2,063.40
741.20
255.05
39,608.67

CITY OF MONTCLAIR

HOUSING AUTHORITY

TREASURER'S REPORT

FOR THE MONTH ENDING
March 31, 2023
Checking Account
US Bank

TOTAL CASH
NOTE:

CITY OF MONTCLAIR

HOUSING AUTHORITY

STATEMENT OF CASH
March 31, 2023
Schedule 1
Amount
3,179,582.44
$ 3,179,582.44
============
During the upcoming month, surplus moneys will be invested in the Local Agency Investment Fund.

The MHA has sufficient monies avai.lable to meet expenditures during the next six month period.

CITY OF MONTCLAIR

HOUSING AUTHORITY

WARRANT REGISTER

FOR THE MONTH ENDING
March 31, 2023
Warrants
City of Montclair
Final Warrant Register
Council Date 05/01/2023
Regular Warrants
Checking Account: MHA
Voided US Bank
Checks transfers - out.

0.00 0.00 0.00
March 2023 Total
Vice Chair Johnson
Totals

0.00 0.00