Montclair City Council
August 7, 2023

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 House 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 House.

6.3 Duration of Affordability Requirements. The Property 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 House 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 Property may be raised to a market rate rent at the end of the Affordability Period.

6.4 Selection of Tenants. The Property 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 House by providing to the Lessee names of persons who have expressed interest in renting the House. 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.

6.5 Income of Tenants. Prior to the rental or lease of each of the House 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.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 121 of 173 Attachment No. 2

(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 Property and shall be given a written notice which requires such tenant to vacate the Property 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 House 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 Property. The House shall be rented at an “Affordable Rent” to be established by the Authority as provided herein. The maximum monthly rental amount for the Property 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 Property may be increased once per year, regardless of when particular tenants commenced occupancy of the House. The maximum monthly rental amount for the House 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 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 House.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 122 of 173 Attachment No. 2

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 House, municipal or county water and sewer rates and charges which shall be levied against the House, or any interest therein, and which become a lien thereon and accrues during the Term.
(B) The Property 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 Property 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 Property 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.

SECTION 9. INDEMNIFICATION: FAITHFUL PERFORMANCE.

Lessee shall not suffer or permit any liens to be enforced against the fee simple estate as to the Property, 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 Property, 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 Property, 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 MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 123 of 173 Attachment No. 2

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 Property or any part thereof. Prior to commencement of any repair or alteration to the Property, 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 Property throughout the Term without expense to Authority, and to perform all repairs and replacements necessary to maintain and preserve the Property in 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 Property. 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 Property 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 Property 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 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, MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 124 of 173 Attachment No. 2

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 Property 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. (G) There shall be a prohibition against the Operator from developing or demolishing the Property during the term of the Agreement except for demolition required to conduct capital repairs to the Property.

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 Property. 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, air or other elements on, in or of the Property 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.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 125 of 173 Attachment No. 2

(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 Property.

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 Property 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.

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 MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 126 of 173 Attachment No. 2

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 Property for the purposes contemplated by this Lease and the Agreement, which requirements or necessity arise from the presence upon, about or beneath the Property 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 Property, 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 Property 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 Property 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 Property, 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 Property 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 Property. 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 on the Property, 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 Property and any property adjacent to the Property affected by Hazardous MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 127 of 173 Attachment No. 2

Materials emanating from the Property 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 Property: 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 Property.

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 Property 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.

SECTION 12. ALTERATION OF IMPROVEMENTS.

Lessee shall not make or permit to be made any structural alteration of, addition to or change in the Property, nor demolish all or any part of the Property without the prior written consent of MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 128 of 173 Attachment No. 2

Authority; provided, however, that the foregoing shall not prohibit or restrict the repair and/or replacement of the Property 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 Property in a clean and safe condition, including structural repair and restoration of damaged Property. Authority shall not be obligated by this Lease to make any improvements to the Property or to assume any expense therefor. Lessee shall not commit or suffer to be committed any waste or impairment of the Property, 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 Property 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 Property all debris resulting from such casualty and rebuild the Property in accordance with plans and specifications previously submitted to Authority and approved in writing in order to replace in kind and scope the Property which existed prior to such damage. In the event of a casualty in which the Property 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 Property 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 Property 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 Property (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 Property. 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 Property and performing as Lessee pursuant to this Lease. Approval by Authority of any sale, 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 MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 129 of 173 Attachment No. 2

or transfer of this Lease or the Property (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 Property (“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 Property 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, Property or effects of Lessee, its sublessees or representatives, agents, employees, guests, 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 Property, or in connection with the operation thereof, or from any defect in the Property. Lessee agrees to indemnify and save free and harmless Authority MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 130 of 173 Attachment No. 2

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 Property of all property of an insurable nature located upon the Property, 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 Property. 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 Property, 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 Property, 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 Property, 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. (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 Property MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 131 of 173 Attachment No. 2

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 Property, including the cost of construction of the Property, 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).

17.5 Insurance Proceeds Resulting from Loss or Damage to Property. All proceeds of insurance with respect to loss or damage to the Property 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 Property in accordance with plans and specifications approved in writing by Authority. To the extent that such proceeds exceed the cost of MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 132 of 173 Attachment No. 2

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 Property, 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 Property 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 Property 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 Property, 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 Property 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 Property, leaving the remainder of the Property 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 Property 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 Property not so taken. (B) In the event of taking of only a part of the Property, leaving the remainder of the Property 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 Property or the portion thereof so taken vests in the condemning authority.
(C) In the event the Property is so taken, this Lease and all of the right, title and interest thereunder, shall cease on the date title to the Property 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 Property, 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 Property was leased. (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 Property 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 Property pursuant to this Lease shall belong to Lessee. That portion of any award attributable to the fair market value of the Property or portion thereof taken shall belong to Authority and Lessee, as their interests may appear, except that MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 133 of 173 Attachment No. 2

in the event of a partial taking, where the Lease remains in effect and Lessee is obligated to restore or repair the Property, then Lessee shall be entitled to any portion of the award attributable to severance damages to the remaining Property. Said award shall be used for the restoration, repair or rebuilding of the Property 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 Property, the mortgagee shall be entitled to any portion of the award attributable to the Property, to the extent of its interest therein. The mortgagee may at its option apply said portions of the award to restoration of the Property or to reduction of the mortgage. Any excess portion of the award attributable to the condemnation of the Property 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 Property 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 Property 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 Property, 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 Property, 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:
(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 MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 134 of 173 Attachment No. 2

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 Property 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 Property, as well as operations conducted thereon, and to faithfully observe and secure compliance with, in the use of the Property, 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 Property, 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 Property. 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, sublessee or permittee has violated any such ordinance or statute in the use of the Property 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 Property for the purpose of viewing and ascertaining MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 135 of 173 Attachment No. 2

the condition of the same, or to protect its interests in the Property 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 Property 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 Property 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 Property; 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.

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;
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 136 of 173 Attachment No. 2

(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 Property, to collect all funds available to Lessee in connection with its operation and maintenance of the Property; and to perform all other consistent with Lessee’s obligation under this Lease as the court deems proper; (5) Maintain and operate the Property, 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 Property and Lessee, in such event, does hereby waive any demand for possession thereof, and agrees to surrender and deliver the Property 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 Property on the Property shall vest in Authority. Even though Lessee has breached the Lease and abandoned the Property, 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.

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 Property, (i) the liability of Lessee shall be MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 137 of 173 Attachment No. 2

limited to its interest in the Property, and any rents, issues and profits arising from any subleases of the Property 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 Property.

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 Property 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 Property 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 Property.

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.

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;
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 138 of 173 Attachment No. 2

(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 Property, 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 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 MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 139 of 173 Attachment No. 2

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 Property 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 Property 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.

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.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 140 of 173 Attachment No. 2

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 Property, 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 Property 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 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 MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 141 of 173 Attachment No. 2

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 Property throughout the Term.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 142 of 173 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 – 08/07/2023 Page 143 of 173 Exhibit A to Attachment No. 2

EXHIBIT A TO ATTACHMENT NO. 2

PROPERTY MAP
[To Be Attached]
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 144 of 173 MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 145 of 173 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:

APN:
1009-241-43-0000
Lot 4 Of Tract 12228, In The City Of Montclair, County Of San Bernardino, State Of California, As Shown On A Map Thereof Recorded In Book 166, Page 98 Of Maps, Of Miscellaneous Maps, In The Office Of The County Recorder Of Said County.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 146 of 173 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 – 08/07/2023 Page 147 of 173 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
APNS: 1009-241-43-0000

[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 property 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 – 08/07/2023 Page 148 of 173 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:

APN:
1009-241-43-0000
Lot 4 Of Tract 12228, In The City Of Montclair, County Of San Bernardino, State Of California, As Shown On A Map Thereof Recorded In Book 166, Page 98 Of Maps, Of Miscellaneous Maps, In The Office Of The County Recorder Of Said County.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 149 of 173 Exhibit A to Attachment No. 3

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 – 08/07/2023 Page 150 of 173 Exhibit A 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 property:

Real property in the City of Montclair, County of San Bernardino, State of California, described as follows:
1009-241-43-0000
Lot 4 Of Tract 12228, In The City Of Montclair, County Of San Bernardino, State Of California, As Shown On A Map Thereof Recorded In Book 166, Page 98 Of Maps, Of Miscellaneous Maps, In The Office Of The County Recorder Of Said County.
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 – 08/07/2023 Page 151 of 173 Resolution No. 23–04 Page 1 of 2
RESOLUTION NO. 23–04

A RESOLUTION OF THE MONTCLAIR HOUSING CORPORATION
APPROVING AGREEMENT NO. 23–59, AN AFFORDABLE HOUSING

AGREEMENT BY AND BETWEEN THE CITY OF MONTCLAIR,

MONTCLAIR HOUSING AUTHORITY, AND MONTCLAIR HOUSING

CORPORATION
WHEREAS, the City of Montclair (the "City") acquired properties located at 9729 Ramona Avenue (the "Property") with funds from the City's Housing Trust Fund for the purpose of increasing, improving, and preserving the City of Montclair’s supply of low– and–moderate income housing available at an affordable cost; and WHEREAS, the City is the owner of that Property within the corporate limits of the City of Montclair; and
WHEREAS, pursuant to the provisions of the California Housing Authority Law (Part 2 of Division 24 of the Health and Safety Code [herein, the "Housing Authority Law"]), the City has designated the Montclair Housing Authority (the "Housing Authority") as the successor housing entity for the City of Montclair; and WHEREAS, pursuant to the Housing Authority Law, the Housing Authority is a housing authority duly established and operating as a local housing authority performing a public function and may make and execute contracts necessary or convenient to the exercise of its powers; and
WHEREAS, the Montclair Housing Corporation (the "Housing Corporation") was formed as a 501(c)(3) to operate and maintain the housing assets including single and multi–family residential units of the Housing Authority; and WHEREAS, the City desires to convey to the Housing Authority the Property and the Housing Authority desires to acquire the Property from the City; and WHEREAS, upon acquiring of the Property, the Housing Authority intends to lease the Property to the Housing Corporation for operation of the Property as an affordable rental housing resources for low– to moderate–income households; and WHEREAS, Agreement No. 23–59, an Affordable Housing Agreement by and between the City, Housing Authority, and Housing Corporation, provides for the transaction contemplated above to occur in accordance with the public purposes and provisions of applicable state and local laws and requirements.

NOW, THEREFORE, BE IT RESOLVED that the Montclair Housing Corporation Board of Directors does hereby find, determine, and order as follows:

SECTION 1: The above recitals are true and correct and are a substantive part of this Resolution.

SECTION 2: The Montclair Housing Corporation hereby finds and determines that the transfer of the Properties to the Montclair Housing Authority will ensure the continued preservation and availability of low– and moderate–income housing is available at an affordable cost.

SECTION 3: The Montclair Housing Corporation is hereby authorized and directed to enter Agreement 23–59, an Affordable Housing Agreement by and among the City of Montclair, Montclair Housing Authority, and Montclair Housing Corporation.

SECTION 4: The Montclair Housing Corporation Secretary shall certify to the adoption of this Resolution.

APPROVED AND ADOPTED this XX day of XX, 2023.

Chair
ATTEST:

Secretary
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 152 of 173 Resolution No. 23–04 Page 2 of 2
I, Andrea M. Myrick, Secretary of the Montclair Housing Corporation, DO HEREBY CERTIFY that Resolution No. 23–04 was duly adopted by the Montclair Housing Corporation Board at a regular meeting thereof held on the XX day of XX, 2023, and that it was adopted by the following vote, to–wit:

AYES: XX
NOES: XX
ABSTAIN: XX
ABSENT: XX
Andrea M. Myrick
Secretary
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 153 of 173 MHA Resolution No. 23–03 Page 1 of 2
RESOLUTION NO. 23–03

A RESOLUTION OF THE MONTCLAIR HOUSING AUTHORITY
APPROVING AGREEMENT NO. 23–59, AN AFFORDABLE

HOUSING AGREEMENT BY AND BETWEEN THE CITY OF

MONTCLAIR, MONTCLAIR HOUSING AUTHORITY, AND

MONTCLAIR HOUSING CORPORATION, AND ACCEPTING

THE TRANSFER OF CERTAIN REAL PROPERTY LOCATED AT
9729 RAMONA AVENUE FROM THE CITY OF MONTCLAIR
WHEREAS, the City of Montclair (the "City") acquired properties located at 9729 Ramona Avenue (the "Property") with funds from the City's Housing Trust Fund for the purpose of increasing, improving, and preserving the City of Montclair’s supply of low– and–moderate income housing available at an affordable cost; and WHEREAS, the City is the owner of that Property within the corporate limits of the City of Montclair; and
WHEREAS, pursuant to the provisions of the California Housing Authority Law (Part 2 of Division 24 of the Health and Safety Code [herein, the "Housing Authority Law"]), the City has designated the Montclair Housing Authority (the "Housing Authority") as the successor housing entity for the City of Montclair; and WHEREAS, pursuant to the Housing Authority Law, the Housing Authority is a housing authority duly established and operating as a local housing authority performing a public function and may make and execute contracts necessary or convenient to the exercise of its powers; and
WHEREAS, the Montclair Housing Corporation (the "Housing Corporation") was formed as a 501(c)(3) to operate and maintain the housing assets including single and multi–family residential units of the Housing Authority; and WHEREAS, the City desires to convey to the Housing Authority the Property and the Housing Authority desires to acquire the Property from the City; and WHEREAS, upon acquiring of the Property, the Housing Authority intends to lease the Property to the Housing Corporation for operation of the Property as an affordable rental housing resources for low– to moderate–income households; and WHEREAS, Agreement No. 23–59, an Affordable Housing Agreement by and between the City, Housing Authority, and Housing Corporation, provides for the transaction contemplated above to occur in accordance with the public purposes and provisions of applicable state and local laws and requirements.

NOW, THEREFORE, BE IT RESOLVED that the Montclair Housing Authority Board of Directors does hereby find, determine, and order as follows:

SECTION 1: The above recitals are true and correct and are a substantive part of this Resolution.

SECTION 2: The Montclair Housing Authority hereby finds and determines that the transfer of the Property to the Montclair Housing Authority will ensure the continued preservation and availability of low– and moderate–income housing is available at an affordable cost.

SECTION 3: The Montclair Housing Authority is hereby authorized and directed to enter Agreement 23–59, an Affordable Housing Agreement by and among the City of Montclair, Montclair Housing Authority, and Montclair Housing Corporation.

SECTION 4: The Montclair Housing Authority agrees to accept the transfer of Property from the City of Montclair. The Executive Director of the Montclair Housing Authority, or designee, is authorized to record the grant deeds and further actions which are necessary or appropriate to transfer the Property to the Montclair Housing Authority.

SECTION 5: The Montclair Housing Authority Secretary shall certify to the adoption of this Resolution.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 154 of 173 MHA Resolution No. 23–03 Page 2 of 2
APPROVED AND ADOPTED this XX day of XX, 2023.

Chair
ATTEST:

Secretary
I, Andrea M. Myrick, Secretary of the Montclair Housing Authority, DO HEREBY CERTIFY that Resolution No. 23–03 was duly adopted by the Montclair Housing Authority Board at a regular meeting thereof held on the XX day of XX, 2023, and that it was adopted by the following vote, to–wit:

AYES: XX
NOES: XX
ABSTAIN: XX
ABSENT: XX
Andrea M. Myrick
Secretary
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 155 of 173 Public Works Committee Meeting Minutes – June 15, 2023 Page 1 of 3

MINUTES OF THE REGULAR MEETING OF THE PUBLIC WORKS
COMMITTEE HELD ON THURSDAY, JUNE 15, 2023, AT 4 P.M. IN THE THEATER CONFERENCE ROOM 9955 FREMONT AVENUE,

MONTCLAIR, CALIFORNIA
I. CALL TO ORDER
Chair Johnson called the meeting to order at 4:01 p.m.

II. ROLL CALL

Present: Mayor Pro Tem Johnson (Chair); Council Member Martinez (Committee Member); City Manager Starr; Director of Economic Development Agency Fuentes; Director of Public Works/City Engineer Heredia, Executive Director of Engineering/Major Projects Manager Hoerning; Director of Community Development Diaz, Project Manager Ortega

Absent: Acting Chief of Police Reed
III. APPROVAL OF MINUTES
The Committee approved the minutes of the meeting of May 18, 2023.

IV. PUBLIC COMMENT — None
V. PUBLIC WORKS DEPARTMENT UPDATES/ITEMS
A. OPERATIONS

1. MAINTENANCE ACTIVITIES
An Operations Activities Report for May 2023 was included with the agenda. There were no questions or issues with the report.

2. ADDITIONAL ITEMS — None
B. FACILITIES

1. MAINTENANCE ACTIVITIES
A Facilities Activities Report for May 2023 was included with the agenda.

There were no questions or issues with the report.

2. SPLASH PAD UPDATE
Director of Public Works/City Engineer Heredia reported that staff is waiting for parts for the controllers. Additionally, staff is addressing the flooring surface of the Splash Pad.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 156 of 173 Public Works Committee Meeting Minutes – June 15, 2023 Page 2 of 3 C. ENGINEERING DIVISION

1. California Uniform Public Construction Cost Accounting Act (CUPCAA) Director of Public Works/City Engineer Heredia reported that CUPCAA streamlines the procurement process of development and fast-tracks small public projects resulting in a saving of time and personnel resources.

Director of Public Works/City Engineer Heredia continued that specifically, under the Act, projects between $60,000 to $200,000 no longer would have to go to bid. For projects greater than $200,000, shall continue to observe the formal bidding process. The act also allows the City Manager’s authority to immediately award public works projects under $60,000.

VI. POLICE DEPARTMENT UPDATE/ITEMS — None
VII. COMMUNITY DEVELOPMENT DEPARTMENT PROJECT UPDATES/ITEMS Director of Community Development Diaz reported the Alexan Kendry Project on the southwest corner of Arrow Highway and Monte Vista Avenue will soon be obtaining building permits. The demo permits and grading permits have already been obtained.

All the previous tenants, with the exception of one, of the previous location have relocated.

Director of Community Development Diaz reported that staff is also currently working on plan check review for the Montclair Station project.

Director of Community Development Diaz reported that Kalaveras will be going to Planning Commission on June 26, 2023, to address their Conditional Use Permit (CUP) and Precise Plan and Design (PPD) for the complete remodel of the building.

VIII. CAPITAL PROJECT UPDATES
A. LOCAL PROJECTS

1. Alleyway Improvements
Director of Public Works Heredia reported that fourteen alleyways would be improved throughout the City. She estimates the project will go out to bid in July or August and construction will begin sometime in Fall 2023.

2. Flashing Stop Sign Replacement Program
Director of Public Works Heredia reported that the materials would arrive at the end of June. Once materials arrive, the installment of the flashing stop signs will commence.

B. REGIONAL PROJECTS

1. I–10 Corridor Project
Director of Public Works Heredia reported that Caltrans will be closing Benson Avenue from June 19, 2023, to August 22, 2023. Caltrans continues to work on the median and the center of the bridge. The project will take eight to nine months to address.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 157 of 173 Public Works Committee Meeting Minutes – June 15, 2023 Page 3 of 3 IX. COMMITTEE AND CITY MANAGER ITEMS
City Manager Starr reported that the state legislature has approved a $1,000,000,000 budget for operations of transit programs impacted by the COVID Pandemic.

Metrolink and other transit services that saw a ridership loss during the pandemic will continue to receive state funding to offset those losses. If LA Metro receives money from the state, the City is hopeful LA Metro will prioritize the Foothill Gold Line as they have previously stated.

X. ADJOURNMENT
At 4:21 p.m., Chair Johnson adjourned the meeting of the Public Works Committee.

The next meeting of the Public Works Committee is scheduled to be held at 4:00 p.m. on Thursday, July 20, 2023.

Submitted for Public Works Committee
approval,
Nadia Paz
Transcribing Secretary
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 158 of 173 Personnel Committee Minutes – July 17, 2023 Page 1 of 1

MINUTES OF THE MEETING OF THE MONTCLAIR

PERSONNEL COMMITTEE HELD ON MONDAY,
JULY 17, 2023, AT 6:25 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 6:25 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 June 19, 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 June 19, 2023.

IV. PUBLIC COMMENT – None
V. CLOSED SESSION
At 6:26 p.m., the Personnel Committee went into Closed Session regarding personnel matters related to appointments, resignations/ terminations, and evaluations of employee performance.

At 6:56 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 6:56 p.m., Mayor Pro Tem Johnson adjourned the Personnel Committee.

Submitted for Personnel Committee approval,
Edward C. Starr
City Manager
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 159 of 173

PENDING

APPROVAL
Adjourned Joint City Council/Montclair Housing Corporation Board Meeting Minutes – June 22, 2023 Page 1 of 3

MINUTES OF THE ADJOURNED JOINT MEETING OF THE

MONTCLAIR CITY COUNCIL AND MONTCLAIR HOUSING
CORPORATION BOARD HELD ON THURSDAY, JUNE 22, 2023, AT
6:00 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 6:00 p.m.

II. ROLL CALL

Present: Mayor/Chair Dutrey; Mayor Pro Tem/Vice Chair Johnson; Council Members/Directors Ruh, Martinez, and Lopez
City Manager/Executive Director Starr; Finance Director Kulbeck; Human Services Director Richter; Community Development
Director Diaz; City Clerk Myrick
III. COUNCIL/MHC BOARD WORKSHOP
A. Fiscal Year 2023–24 Preliminary Budget Review Presentation Finance Director Kulbeck discussed the FY 2023–24 Preliminary Budgets for the City of Montclair and the Montclair Housing Corporation with the aid of a PowerPoint presentation.

During the first segment of her presentation, Finance Manager Kulbeck noted a $3,785,229 surplus exists in the preliminary General Fund Revenues Budget, and the General Unassigned Reserve is at $8 million—approximately 22.45 percent of the preliminary General Fund Operating Appropriations Budget, nearing compliance with the Council’s Unassigned Reserve Ratio goal of 25 percent. She reviewed significant revenue components of the budget, including property, sales and use, and transactions and use taxes. She then presented the 2023–24 Preliminary Budget Appropriations for the departments and General Fund transfers.

Council Member Lopez received information about which Fire Station would be using the LifePak and what area would be enclosed for the Community Development Department.

Council Member Ruh received clarification from City Manager Starr that betterments would have to come from the City from the Gold Line Betterment Fund, and that the County of San Bernardino does not provide assistance. Council Member Ruh asked if there are plans to build something within the City for homelessness, and it was explained that it would be decided at a later time dependent on available land and funding.

In the next segment of the presentation, Finance Director Kulbeck discussed personnel services for the upcoming Fiscal Year including reclassification of the Deputy Fire Chief to Fire Chief, and reactivation of the Medic Squad.

In the portion titled “Building a Better Montclair,” Finance Director Kulbeck discussed efforts the City has undertaken and future strategies identified to improve fiscal and quality of life conditions in the City including:
 Forming a new Transactions and Use Tax District with the passage of Measure L at the 2020 Election, which significantly improved revenues;
 Evaluating service contracting for specified programs for cost savings; considering a Proposition 64 Commercial Cannabis Compliance program including potentially bringing forth a ballot measure at the 2022 General Municipal Election;
 Promote Development in North Montclair pursuant to the Amended North Montclair Specific Plan (NMDSP).

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 160 of 173

PENDING

APPROVAL
Adjourned Joint City Council/Montclair Housing Corporation Board Meeting Minutes – June 22, 2023 Page 2 of 3
At 6:48 p.m., Mayor Dutrey left City Council Chambers.

At 6:50 p.m., Mayor Dutrey returned to City Council Chambers.

Other goals discussed for “Building a Better Montclair” included:
 The Expanding Role in Promoting Economic Development, by the Montclair Economic Development Agency (EDA), which
plans to provide and enhance the City through the Economic Development Assets Fund (EDAF) which has a balance of
$5,623,917 after a proposed transfer in of $785,229. These funds will be used to provide and enhance funding within the EDA for real property acquisition, affordable housing
development, homeless assistance, and economic
development activities.

At 7:06 p.m. Council Member Lopez left City Council Chambers.  In April 2022, the Montclair Housing Authority
(MHA) became the beneficiary of $3.2 million in repaid
residual receipt loans that had been provided to Augusta Communities. These funds are restricted for affordable
housing programs.

At 7:10 p.m. Council Member Lopez returned to City Council Chambers.  In 2021 there was an issuance of Lease Revenue Bonds, these were slated to be used in the following four years to complete infrastructure projects identified by City Council for
improvement including; Reeder Ranch Park, Parks Master Plan, Flashing Stop Sign Replacement Program
At 7:14 p.m. Council Member Ruh left City Council Chambers.

Mayor Dutrey asked for clarification on improvements to the Saratoga Park baseball field amenities.

At 7:16 p.m. Council Member Ruh returned to City Council Chambers.

City Manager Starr said LD King is working on the proposal.

Council Member Martinez inquired about Opportunity Zones, and City Manager Starr provided clarification on the program.

Council Member Ruh expressed his concerns about how he believes the homelessness issue will be handled by the City.

Mayor Dutrey stated that addressing homelessness issues within the City should be executed at the County level.

In the final segment of her presentation on the City’s budget, Finance Director Kulbeck reviewed Special Purpose Funds established to address current and future liabilities, programs, projects, and goals requiring a commitment of funds not incorporated in the General Fund Operation Budget; and debt service on the 2014 and 2021 issues of Lease Revenue Bonds and 2021 Pension Obligation Bonds.

Council Member Lopez wanted to know if parking would be including in the $5.6 million request for the Gold Line Betterment Fund. He also noted concerns about the installation of new bike lanes reducing or restricting street parking for residents who do not have driveways.

Mayor Dutrey noted during his absence from the June 19th City Council meeting, the City Council discussed Juneteenth and gave direction to staff. He advised this is a matter that requires a meet and confer process with represented employees and requested the City Council discuss the addition of Juneteenth as a recognized City holiday in a future closed session under labor negotiations.

ACTION
ACTING: City Council
MOTION: Place an item on the agenda to discuss the inclusion of Juneteenth as an official City holiday under labor negotiations during a future regular meeting closed session.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 161 of 173

PENDING

APPROVAL
Adjourned Joint City Council/Montclair Housing Corporation Board Meeting Minutes – June 22, 2023 Page 3 of 3
ACTION
MADE BY:

SECOND BY:

Mayor Dutrey
Council Member Ruh
AYES:

NOES:

ABSTAIN:

ABSENT:

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

IV. PUBLIC COMMENT — None
V. ADJOURNMENT
At 7:59 p.m., Mayor/Chair Dutrey adjourned the City Council and Montclair Housing Corporation Board, and announced a special meeting would be held on Thursday, June 29, 2023, at 6:00 p.m. in the City Council Chambers to consider adoption of the Fiscal Year 2023–24 City and MHC Budgets and to consider actions on other related matters.

Submitted for City Council/Montclair Housing
Corporation Board approval,
Andrea Myrick
City Clerk
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 162 of 173

PENDING

APPROVAL
Special Joint City Council/Montclair Housing Corporation Board Meeting Minutes – June 29, 2023 Page 1 of 2

MINUTES OF THE SPECIAL JOINT MEETING OF THE MONTCLAIR

CITY COUNCIL AND MONTCLAIR HOUSING CORPORATION
BOARD HELD ON THURSDAY, JUNE 29, 2023, AT 6:04 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 6:04 p.m.

II. PLEDGE OF ALLEGIANCE
Mayor/Chair Dutrey led meeting participants in the Pledge.

III. ROLL CALL

Present: Mayor/Chair Dutrey; Mayor Pro Tem/Vice Chair Johnson; Council Members/Directors Ruh, Martinez, and Lopez
City Manager/Executive Director Starr; Finance Manager Kulbeck; Director of Human Services Richter; Director of Community Development Diaz; City Clerk Myrick
IV. COMMISSION APPOINTMENTS
A. Consider Making Appointments to Three (3) Scheduled Vacancies on the Planning Commission for Full Four–Year Terms Ending June 30, 2027
ACTION – Commission Appointments
ACTING: City Council
MOTION: Reappoint Jaso Sanchez and Sergio Sahagun Sr., and appoint Xavier Mendez, to the three scheduled
vacancies on the Planning Commission for full
four–year terms ending June 30, 2027.

MADE BY:

SECOND BY:

Mayor Pro Tem Johnson
Council Member Lopez
AYES:

NOES:

ABSTAIN:

ABSENT:

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

V. CONSENT CALENDAR
ACTION – Consent Calendar
ACTING: City Council
Montclair Housing Corporation Board
MOTION: Approve the Consent Calendar as presented.

MADE BY:

SECOND BY:

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

NOES:

ABSTAIN:

ABSENT:

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

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 163 of 173

PENDING

APPROVAL
Special Joint City Council/Montclair Housing Corporation Board Meeting Minutes – June 29, 2023 Page 2 of 2
A. Resolutions

1. Adoption of Resolution No. 23–3410 Authorizing Approval of the Change in Population in San Bernardino County
During 2022 for the Purpose of Calculating the Gann
Spending Limit for Fiscal Year 2023–24
ACTION – Consent Calendar – Item A–1
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.

2. Adoption of Resolution No. 23–3411 Establishing an
Appropriations Limit for Fiscal Year 2023–24 Pursuant to Article 13–B of the California Constitution and to Section 7910 of the Government Code
ACTION – Consent Calendar – Item A–2
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.

3. Adoption of Resolution No. 23–3412 Adopting the City of Montclair Fiscal Year 2023–24 Annual Budget
ACTION – Consent Calendar – Item A–3
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.

4. Adoption of Resolution No. 23–02 Adopting the Fiscal Year 2023–24 Budget for the Montclair Housing Corporation
The Montclair Housing Corporation Board of Directors adopted Resolution No. 23–02 adopting the Fiscal Year 2023–24 Budget for the Montclair Housing Corporation.

ACTION – Consent Calendar – Item A–4
ACTING: Montclair Housing Corporation Board
RESULT: Approved on Consent Calendar; motion carried 5–0.

VI. PULLED CONSENT CALENDAR ITEMS — None
VII. ADJOURNMENT
At 6:10 p.m., Mayor/Chair Dutrey adjourned the City Council and Montclair Housing Corporation Board.

Submitted for City Council/Montclair Housing
Corporation Board approval,
Andrea Myrick
City Clerk
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 164 of 173

PENDING

APPROVAL
Joint City Council/Successor Agency Board/Montclair Housing Corporation Board/Montclair Housing Authority Commission/ Montclair Community Foundation Board Meeting Minutes – July 17, 2023 Page 1 of 9

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, JULY 17, 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
Montclair Police Chaplain/Pastor Vicki Brobeck, Grace Fellowship Foursquare Church, gave the invocation.

III. PLEDGE OF ALLEGIANCE
Mayor Pro Tem/Vice Chair Johnson led meeting participants in the Pledge.

IV. ROLL CALL

Present: Mayor/Chair Dutrey; Mayor Pro Tem/Vice Chair Johnson; Council Members/Directors Ruh, Lopez and Martinez
City Manager/Executive Director Starr; Assistant City Manager/ Director of Human Services Richter; Director of Finance Kulbeck; Director of Community Development Diaz; Director of Public Works/City Engineer Heredia; Acting Police Chief Reed; City Attorney Robbins; City Clerk Myrick
V. PRESENTATIONS
A. Recognition of Outgoing Planning Commissioner Ginger Eaton Mayor Dutrey presented a Certificate of Recognition to outgoing Planning Commissioner Ginger Eaton for her 4 years of dedicated service on the Planning Commission.

Mayor Pro Tem Johnson presented Mrs. Eaton with an award commemorating her service to the City of Montclair.

Mrs. Eaton was also presented with certificates from the offices of Senator Susan Rubio and Congresswoman Norma Torres.

B. Community Activities Commission Presentation of 2023 Home Beautification Awards
CAC Vice Chair Escalante led a visual presentation of the winning homes of the 2023 Home Beautification Contest.

Mayor Dutrey presented awards to the following winners:

Traditional Home of the Year
10215 Vernon Avenue — Vanessa and Nick Rodriguez
Drought Tolerant Home of the Year
11185 Shetland Avenue — Irene and Humberto Chavez
VI. PUBLIC COMMENT
 Carolyn Raft, Board Trustee, West Valley Mosquito and Vector Control District, reminded the public that in August, sterile male mosquitoes will be released to help control the mosquito population in surrounding areas. She recognized that Joseph Govea passed away and offered her condolences to his family. She wished City Manager Starr a happy birthday.
 Joana Lubmann, Neware, stated she was speaking for businesses located on Brooks Street, explaining they are experiencing significant issues regarding theft, threats, and vandalism. They requested that these issues be taken seriously and that the City help to prevent them.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 165 of 173

PENDING

APPROVAL
Joint City Council/Successor Agency Board/Montclair Housing Corporation Board/Montclair Housing Authority Commission/ Montclair Community Foundation Board Meeting Minutes – July 17, 2023 Page 2 of 9  Abel Benitez, resident, stated he is a participant in the Community Garden and requested the program rules be revised to allow families to utilize more than one plot.
 Joan Lindhorst, resident, expressed frustration with a lack of communication from the Code Enforcement Division regarding her recent complaints about a neighbor’s unkempt yard.
 Herman Janssen expressed his support for Bill Kaufman operating a commercial cannabis business in the City.
 Bill Kaufman provided an update on his unsuccessful attempts to get a business license from City Hall for a commercial cannabis business out of the Shoe City building on Central Avenue and Moreno Street.

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 with a revision to A–1.

MADE BY:

SECOND BY:

Council Member/Director Lopez
Council Member/Director Ruh
AYES:

NOES:

ABSTAIN:

ABSENT:

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

A. Approval of Minutes

1. Regular Joint Meeting — June 19, 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, with a revision to include a comment by Council
Member Lopez that was inadvertently omitted.

B. Administrative Reports

1. Consider Receiving and Filing City Treasurer's Report – May 2023
ACTION – Consent Calendar – Item B–1
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5-0.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 166 of 173

PENDING

APPROVAL
Joint City Council/Successor Agency Board/Montclair Housing Corporation Board/Montclair Housing Authority Commission/ Montclair Community Foundation Board Meeting Minutes – July 17, 2023 Page 3 of 9

2. Consider Approval of City Warrant Register and Payroll Documentation
ACTION – Consent Calendar – Item B–2
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5-0.

3. Consider Receiving and Filing SA Treasurer’s Report – May 2023
ACTION – Consent Calendar – Item B–3
ACTING: Successor Agency Board
RESULT: Approved on Consent Calendar; motion carried 5-0.

4. Consider Approval of SA Warrant Register – May 2023
ACTION – Consent Calendar – Item B–4
ACTING: Successor Agency Board
RESULT: Approved on Consent Calendar; motion carried 5-0.

5. Consider Receiving and Filing MHC Treasurer's Report – May 2023
ACTION – Consent Calendar – Item B–5
ACTING: Montclair Housing Corporation Board
RESULT: Approved on Consent Calendar; motion carried 5-0.

6. Consider Approval of MHC Warrant Register – May 2023 ACTION – Consent Calendar – Item B–6
ACTING: Montclair Housing Corporation Board
RESULT: Approved on Consent Calendar; motion carried 5-0.

7. Consider Receiving and Filing of MHA Treasurer's Report – May 2023
ACTION – Consent Calendar – Item B–7
ACTING: Montclair Housing Authority Commissioners
RESULT: Approved on Consent Calendar; motion carried 5-0.

8. Consider Approval of MHA Warrant Register – May 2023 ACTION – Consent Calendar – Item B–8
ACTING: Montclair Housing Authority Commissioners
RESULT: Approved on Consent Calendar; motion carried 5-0.

9. Consider Authorizing a $151,164 Appropriation from
California Department of Parks and Recreation Per Capita Grant Funds and a $3,174,739 Appropriation from 2021
Lease Revenue Bond Funds for Costs Related to
Construction of the Sunset Park Beautification Project
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 167 of 173

PENDING

APPROVAL
Joint City Council/Successor Agency Board/Montclair Housing Corporation Board/Montclair Housing Authority Commission/ Montclair Community Foundation Board Meeting Minutes – July 17, 2023 Page 4 of 9 Consider Approving the Plans and Specifications and
Authorizing Staff to Advertise for Bid Proposals for
construction of the Sunset Park Beautification Project
Councilmember Lopez received clarification from City Manager Starr on the project cost.

ACTION – Consent Calendar – Item B–9
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5-0.

10. Consider Authorizing the Use of 2018 and 2019 Justice Assistance Grant Funds Totaling $29,884 Toward the Cost of Transitioning to a Records Management System Compliant
with the National Incident–Based Reporting System
ACTION – Consent Calendar – Item B–10
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5-0.

11. Consider Authorizing the Receipt of $15,717 from the FY 2021 State Homeland Security Grant Program to Purchase
Eleven AccuRad Personal Radiation Detectors
Consider Authorizing a $15,717 Appropriation from the
Public Safety Grant Capital Outlay Machinery and Tools
Account to Purchase Eleven AccuRad Personal Radiation
Detectors from Mirion Technologies
Mayor Pro Tem Johnson received clarification from Chief Pohl on what a personal radiation detector was.

ACTION – Consent Calendar – Item B–11
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5-0.

12. Consider Authorizing the Destruction of Certain Obsolete Public Records Pursuant to the City of Montclair Records Retention Schedule
ACTION – Consent Calendar – Item B–10
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5-0.

C. Agreements

1. Consider Approval of Agreement No. 23–42 with Liebert Cassidy Whitmore for Participation in the East Inland Empire Employment Relations Consortium and Premium Liebert
Library Subscription, Subject to Any Revisions Deemed
Necessary by the City Attorney
ACTION – Consent Calendar – Item C–1
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 168 of 173

PENDING

APPROVAL
Joint City Council/Successor Agency Board/Montclair Housing Corporation Board/Montclair Housing Authority Commission/ Montclair Community Foundation Board Meeting Minutes – July 17, 2023 Page 5 of 9

2. Consider Approval of Agreement No. 23–43 with Civic
Publications, Inc., for Public Education and Community
Outreach Services, Subject to Any Revisions Deemed
Necessary by the City Attorney
ACTION – Consent Calendar – Item C–2
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.

3. Consider Ratifying Agreement No. 23–44 with Colts
Landscape, Inc. for Landscape Maintenance Services
Consider Authority City Manager Edward C. Starr to Sign Said Agreement
ACTION – Consent Calendar – Item C–3
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.

4. Consider Awarding a Contract to Hyper Electric in the Amount of $154,350 for the Electric Vehicle Charging
Stations Project
Consider Authorizing a $15,500 Construction Contingency for the Project
Consider Approval of Agreement No. 23–45 with Hyper
Electric for Construction of the Project, Subject to Any Revisions Deemed Necessary by the City Attorney
ACTION – Consent Calendar – Item C–4
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.

5. Consider Approval of Agreement No. 23–46 with BFK
Architecture + Planning for Engineering Design Services for the Montclair Branch Public Library Restrooms, Courtyard, and Fire Stations Remodel Project, Subject to Any Revisions Deemed Necessary by the City Attorney
Consider Authorizing a $185,000 Appropriation from 2021 Lease Revenue Bond Proceeds for Costs Related to
Agreement No. 23–46
Consider Authorizing a $16,760 Design Services Contingency for the Project
ACTION – Consent Calendar – Item C–5
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.

6. Consider Approval of Agreement No. 23–47 With Nutrition Ink to Provide Nutrition Education Services for the City’s Senior Citizen Nutrition Program, Subject to Any Revisions Deemed Necessary by the City Attorney
ACTION – Consent Calendar – Item C–6
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 169 of 173

PENDING

APPROVAL
Joint City Council/Successor Agency Board/Montclair Housing Corporation Board/Montclair Housing Authority Commission/ Montclair Community Foundation Board Meeting Minutes – July 17, 2023 Page 6 of 9

7. Consider Approval of Agreement No. 23–48 with Suzanne Yoakum to Provide Case Management Services for the Senior Center, Subject to Any Revisions Deemed Necessary by the City Attorney
ACTION – Consent Calendar – Item C–7
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.

8. Consider Approval of Agreement No. 23–49 with Misha L.

Penn to Provide Grant Management and Fiscal Compliance
Services for the Human Services Department, Subject to Any Revisions Deemed Necessary by the City Attorney
ACTION – Consent Calendar – Item C–8
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.

9. Consider Approval of Agreement No. 23–52 with ZPR’s House of Car Wash for Car Wash Services for City Vehicles
ACTION – Consent Calendar – Item C–9
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.

10. Consider Approval of Agreement No. 23–53 with the
Montclair Chamber of Commerce to Provide Services to
Promote Local Economic Development, Subject to Any
Revisions Deemed Necessary by the City Attorney
Mayor Pro Tem/Vice Chair Johnson declared her abstention on Item C–10.

ACTION – Consent Calendar– Item C–10
ACTING: City Council
MOTION: Approve Item C–10.

MADE BY:

SECOND BY:

Council Member/Director Lopez
Council Member/Director Martinez
AYES:

NOES:

ABSTAIN:

ABSENT:

Lopez, Martinez, Ruh, Dutrey
None
Johnson
None
RESULT: Motion carried 4–0–1.

11. Consider Approval of Agreement No. 23–55 with TOC Public Relations to Develop a Recruitment Website Exclusively for the Police Department, Including a Photo and Video
Recruitment Package and a Social Media Ad Campaign for the Purpose of Attracting and Recruiting Police Officer
Candidates, Subject to Any Revisions Deemed Necessary by the City Attorney
Consider Authorizing Acting Police Chief Jason Reed to Sign Said Agreement
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 170 of 173

PENDING

APPROVAL
Joint City Council/Successor Agency Board/Montclair Housing Corporation Board/Montclair Housing Authority Commission/ Montclair Community Foundation Board Meeting Minutes – July 17, 2023 Page 7 of 9 Consider Authorizing a $40,000 Appropriation from the
Federal Asset Forfeiture Fund for Costs Associated with Agreement No. 23–55
ACTION – Consent Calendar – Item C–11
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.

D. Resolutions

1. Consider Adoption of Resolution No. 23–3409 Authorizing Placement of Liens on Certain Properties for Delinquent Sewer and Trash Charges
ACTION – Consent Calendar – Item D–1
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.

2. Consider Adoption of Resolution No. 23–3415 Approving Agreement No. 23–54, an Affordable Housing Agreement
with the Montclair Housing Authority and the Montclair
Housing Corporation; Authorizing the Transfer of 10053
Central Avenue, Montclair, to the Montclair Housing
Authority for use as Affordable Housing; and Declaring Such Real Property to be Exempt Surplus Land
ACTION – Consent Calendar – Item D–2
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.

Consider Adoption of MHC Resolution No. 23–03 Approving Agreement No. 23–54, an Affordable Housing Agreement
with the City of Montclair and the Montclair Housing
Authority
ACTION – Consent Calendar – Item D–2
ACTING: Montclair Housing Corporation Board
RESULT: Approved on Consent Calendar; motion carried 5–0.

Consider Adoption of MHA Resolution No. 23–02 Approving Agreement No. 23–54, an Affordable Housing Agreement
with the City of Montclair and the Montclair Housing
Corporation, and Accepting the Transfer of Certain Real Property from the City of Montclair
ACTION – Consent Calendar – Item D–2
ACTING: Montclair Housing Authority Commissioners
RESULT: Approved on Consent Calendar; motion carried 5–0.

IX. PULLED CONSENT CALENDAR ITEMS — None
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 171 of 173

PENDING

APPROVAL
Joint City Council/Successor Agency Board/Montclair Housing Corporation Board/Montclair Housing Authority Commission/ Montclair Community Foundation Board Meeting Minutes – July 17, 2023 Page 8 of 9 X. COMMUNICATIONS
A. Department Reports

1. Police Department — National Night Out
Acting Police Chief Reed provided information on this year’s National Night Out that will be held on August 1st from 6:30 p.m.– 10 p.m. at Alma Hofman Park. It will give the community the opportunity to learn more about the Montclair Police Department.

Police Officers will be there to speak to the public and allow kids the opportunity to see and handle some of the tools of the trade.

There will be different booths, including food vendors, and free face painting for the kids. The movie, “Jungle Cruise,” will be played at 8:15 p.m. The American Red Cross will be set–up for blood donations at the Senior Center from 2:00 p.m.–8:00 p.m.

B. City Attorney
City Attorney Robbins requested the City Council meet in closed session concerning the following:

1. Request for City Council to Meet in Closed Session Pursuant to Government Code Section 54957.6 Regarding Conference with Designated Labor Negotiator Edward C. Starr
Agency: City of Montclair
Employee Management
Associations: Montclair City Confidential Employees Association Montclair General Employees Association
Montclair Fire Fighters Association
Montclair Police Officers Association

2. Closed Session Pursuant to Government Code Section
54956.8 Regarding Real Property Negotiations
Property: APN 1009-241-43-0-000
Negotiating Parties: City of Montclair and Chen Sandy Living Trust Agency Negotiator: Edward C. Starr, City Manager
Under Negotiations: Recommendations Regarding Purchase Price C. City Manager/Executive Director
City Manager Starr made the following comments:

1. He congratulated former Deputy Fire Chief Pohl on his appointment to Fire Chief, and former Police Captain Jason Reed on his appointment to Acting Police Chief.

2. In relation to Mr. Kaufman’s public comments, he advised that commercial cannabis activities are not legal in the City of Montclair.

D. Mayor/Chair
Mayor/Chair Dutrey made the following comments:

1. He recognized the month of July for the following: Canada Day and Bastille Day.

2. He recognized Independence Day taking place on July 4th, and thanked the Police and Fire Departments for their efforts controlling illegal fireworks.

3. He requested staff schedule a workshop to update the City Council on the bond funds that have been spent and future bond allocation plans.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 172 of 173

PENDING

APPROVAL
Joint City Council/Successor Agency Board/Montclair Housing Corporation Board/Montclair Housing Authority Commission/ Montclair Community Foundation Board Meeting Minutes – July 17, 2023 Page 9 of 9 E. Council Members/Directors

1. Mayor Pro Tem/Vice Chair Ruh commented that he did not notice many illegal fireworks in his area on the Fourth of July.

He reminded the public of local street closures due to
construction. He reported his attendance at an Open House event held by Assembly Member Freddie Rodriguez. He
acknowledged the passing of Juan Campos, a local pastor, and expressed his condolences.

2. Council Member/Director Lopez commented that phone lines were busy on the Fourth of July do to concerned residents calling in, and expressed his hope that the community takes into consideration the mental wellbeing of veterans and pets next year when contemplating lighting illegal fireworks. He commended Montclair Little League’s All Stars team and
Montclair’s Travel Ball team on their accomplishments this season.

3. Mayor Pro Tem/Vice Chair Johnson reminded the community that an E–waste event hosted by the Montclair Chamber of Commerce is coming up. She also announced that on August 17th the Chamber will be holding a Night Under the Stars event at the Chino Basin Water Conservation District.

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

1. Public Works Committee – May 18, 2023

2. Personnel Committee – June 19, 2023
XI. CLOSED SESSION
At 8:40 p.m., the City Council went into closed session to discuss labor negotiations and real property negotiations.

XII. CLOSED SESSION ANNOUNCEMENTS
At 9:25 p.m., the City Council returned from closed session. Mayor Dutrey announced that the City Council met in closed session to discuss labor negotiations and real property negotiations; information was received and direction given to staff on both items; and no further announcements would be made at this time.

XIII. ADJOURNMENT
At 9:26 p.m., the City Council, Successor Agency Board, Montclair Housing Corporation Board, Montclair Housing Authority Commission, and Montclair Community Foundation Board were adjourned.

Submitted for City Council/Successor Agency Board/Montclair Housing Corporation Board/ Montclair Housing Authority
Commission/Montclair Community Foundation Board approval, Andrea Myrick,
City Clerk
The meeting was adjourned in memory of Joseph Govea and Pastor Juan Campos.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 173 of 173