Montclair City Council
August 7, 2023

CITY OF MONTCLAIR

CITY COUNCIL

SUCCESSOR REDEVELOPMENT AGENCY,

MONTCLAIR HOUSING CORPORATION, MONTCLAIR

HOUSING AUTHORITY, AND MONTCLAIR COMMUNITY

FOUNDATION MEETINGS
AGENDA
Monday, August 7, 2023
7:00 p.m.

Location
Council Chamber
5111 Benito Street
Montclair, CA 91763
Webinar Link
https://zoom.us/j/93717150550
Dial #
1–669–900–6833
Meeting ID
937–1715–0550
Mayor
Javier “John” Dutrey
Mayor Pro Tem
Tenice Johnson
Council Members
Bill Ruh
Corysa Martinez
Benjamin “Ben” Lopez
City Manager
Edward C. Starr
City Attorney
Diane E. Robbins
City Clerk
Andrea M. Myrick

REGULAR JOINT MEETING OF THE

CITY COUNCIL, SUCCESSOR AGENCY, MONTCLAIR HOUSING CORPORATION,

MONTCLAIR HOUSING AUTHORITY, AND MONTCLAIR COMMUNITY FOUNDATION to be held in the Council Chambers
5111 Benito Street, Montclair, California
Monday, August 7, 2023
7:00 p.m.

Remote Participation Information:

Zoom Link: https://zoom.us/j/93717150550
Dial Number: 1 (669) 900–6833
Meeting ID: 937–1715–0550
If you want to provide comments on an agenda item, including public hearing and closed session items, please complete a Speaker Card located in the Council Chambers or online at https://www.cityofmontclair.org/public–comment/. The Mayor/Chair (or the meeting’s Presiding Officer) will call on those who submitted requests to speak at the appropriate times during the meeting. Those who did not submit a request to speak who are present at the meeting location may raise their hand during Public Comment to request to speak. Those participating remotely may request speak using the “raise hand” function in Zoom or may dial *9 if on the phone, and then *6 to un–mute when called on to speak. Written comments (200–word limit per agenda item, and 200–word limit for all non–agenda items combined) and requests to speak can also be emailed to [email protected] at least one hour before the meeting begins.

Video recordings of Council meetings are available on the City's website at https://www.cityofmontclair.org/council–meetings/ and can be accessed by the end of the business day following the meeting.

AGENDA
I. CALL TO ORDER City Council [CC], Successor Agency Board [SA], Montclair Housing Corporation Board [MHC],
Montclair Housing Authority Commission [MHA],
Montclair Community Foundation Board [MCF]
II. INVOCATION
In keeping with our long–standing tradition of opening our Council meetings with an invocation, this meeting may include a nonsectarian invocation. Such invocations are not intended to proselytize or advance any faith or belief or to disparage any faith or belief. Neither the City nor the City Council endorses any particular religious belief or form of invocation.

III. PLEDGE OF ALLEGIANCE
IV. ROLL CALL
V. PRESENTATIONS
A. Southern California Edison Wildfire Mitigation Efforts Presentation VI. PUBLIC COMMENT
During Public Comment, you may comment on any subject that does not appear on this agenda. Each speaker has up to five minutes. The meeting’s presiding officer may provide more or less time to accommodate speakers with special needs or a large number of speakers waiting in line. (Government Code Section 54954.3).

If you did not submit a Speaker Card and would like to speak on an item on the Consent Calendar, please raise your hand during Public Comment to announce the agenda item you would like to provide comments on. The presiding officer will call on you to speak at the time of the item’s consideration.

Under the provisions of the Brown Act, the meeting bodies are prohibited from participating in substantial discussion of or taking action on items not listed on the agenda.

VII. PUBLIC HEARINGS — None

XXXXXXXXXXXXX
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 1 of 173 Page No.

VIII. CONSENT CALENDAR
A. Approval of Minutes

1. Adjourned Meeting — June 22, 2023 [CC/MHC] 160

2. Special Meeting — June 29, 2023 [CC/MHC] 163

3. Regular Joint Meeting — July 17, 2023 [CC/SA/MHC/MHA/MCF] 165 B. Administrative Reports

1. Consider Approval of Warrant Register & Payroll Documentation [CC] 5

2. Consider Implementing a Temporary, 18–Month Montclair Hiring Bonus Incentive Program Focusing on Recruitment of Lateral Police Officers and Police Officer Trainees Funded by Personnel Savings in the Montclair Police Department Budget Related to Current Police Officer Classification Vacancies [CC]
Consider Authorizing the Following Elements of the Montclair Hiring Bonus Incentive Program: a Lateral Police Officer Hiring Incentive Bonus Program, Providing a $30,000 Bonus to Each New Hire; a Police Officer Trainee Hiring Incentive Bonus Program, Providing a $10,000 Bonus to Each Newly Hired, Unsponsored Police Academy Trainee; and a Montclair Employee Police Recruitment Referral Bonus Program, Which May be Terminated at Any Time Prior to the End of the 18–Month Montclair Hiring Bonus Incentive Program, Providing a $2,500 Bonus to Each City of Montclair Employee Referring a Person who is Successfully Hired and Completes Probation as a Montclair Police Officer [CC]
Consider Authorizing the City Manager to Make Adjustments and Modifications to the Montclair Hiring Bonus Incentive Program, and to the Amount of the Hiring Incentive Bonus on a Case–By–Case Basis, Subject to Approval by the Montclair Personnel Committee to Ensure Success of the Program [CC] 6
C. Agreements

1. Consider Approval of Agreement No. 23–51 with Christian Development Center to Provide Case Management Services for the City’s Homeless Outreach and Assistance Program, Subject to Any Revisions Deemed Necessary by the City Attorney [CC] 19

2. Consider Approval of Agreement No. 23–56 with Revenue and Cost Specialists, LLC (RCS) to Conduct a Development Impact Fee Nexus Study, Subject to Any Revisions Deemed Necessary by the City Attorney [CC] 36

3. Consider Approval of Agreement No. 23–57 with Mobile Screening Solutions for Department of Transportation (DOT) Random Employee Drug and Alcohol Screening Services [CC] 72

4. Consider Approval of Agreement No. 23–58 Amending Agreement No. 06–175 with the County of San Bernardino for the Lease of a City–Owned Facility to Provide County Library Services, Subject to Any Revisions Deemed Necessary by the City Attorney [CC] 81
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 2 of 173 Page No.

D. Resolutions

1. Consider Adoption of Resolution No. 23–3413 Authorizing Placement of Assessments on Certain Properties for Delinquent Sewer and Trash Accounts [CC] 87

2. Consider Adoption of Resolution No. 23–3416 Declaring that Certain Real Property Located at 9729 Ramona Avenue, Montclair, is Exempt Surplus Land Pursuant to Government Code Section 54221 and Finding that Such Declaration is Exempt from Environmental Review Under the California Environmental Quality Act [CC]
Consider Adoption of Resolution No. 23–3417 Approving Agreement No. 23–59, an Affordable Housing Agreement with the Montclair Housing Authority and the Montclair Housing Corporation; Authorizing the Transfer of 9729 Ramona Avenue, Montclair, to the Montclair Housing Authority for Use as Affordable Housing Units [CC] Consider Adoption of MHC Resolution No. 23–04 Approving Agreement No. 23–59, an Affordable Housing Agreement with the City of Montclair and the Montclair Housing Authority [MHC]
Consider Adoption of MHA Resolution No. 23–03 Approving Agreement No. 23–59, 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 [MHA]
Consider Authorizing a $20,000 Appropriation from the Housing Trust Fund for Rehabilitation of the Property Located at 9729 Ramona Avenue, Montclair [MHA] 93
IX. PULLED CONSENT CALENDAR ITEMS
X. COMMUNICATIONS
A. Department Reports

1. Human Services — Upcoming Activities & Events

2. Police Department — National Night Out
A. City Attorney

1. Request for City Council to Meet in Closed Session Pursuant to Government Code §54956.9(d)(1) Regarding Pending Litigation [CC] Godoy v. City of Montclair

2. 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 [CC]
Agency: City of Montclair
Employee Management
Associations: Montclair City Confidential Employees Association Montclair General Employees Association
Montclair Fire Fighters Association
Montclair Police Officers Association
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 3 of 173 Page No.

B. City Manager/Executive Director
C. Mayor/Chairperson
D. Council Members/Directors
E. Committee Meeting Minutes (for informational purposes only)

1. Public Works Committee Meeting — June 15, 2023 [CC] 156

2. Personnel Committee Meeting — July 17, 2023 [CC] 159 XI. CLOSED SESION
XII. CLOSED SESSION ANNOUNCEMENTS
XIII. ADJOURNMENT
The next regular joint meeting of the City Council, Successor Agency Board, Montclair Housing Corporation Board, Montclair Housing Authority Commission, and Montclair Community Foundation Board will be held on Monday, August 21, 2023 at 7:00 p.m.

Reports, backup materials, and additional materials related to any item on this Agenda distributed to the meeting bodies after publication of the Agenda packet are available for public inspection in in the Office of the City Clerk between 7:00 a.m. and 6:00 p.m., Monday through Thursday. Please call the City Clerk’s Office at (909) 625–9416 or send an e–mail to [email protected] to request documents via e–mail.

If you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (909) 625–9416 or e–mail [email protected]. Notification prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 35.102–35.104 ADA Title II)
I, Andrea M. Myrick, City Clerk, hereby certify that I posted, or caused to be posted, a copy of this Agenda not less than 72 hours prior to this meeting on the City’s website at https://www.cityofmontclair.org/agendas/ and on the bulletin board adjacent to the north door of Montclair City Hall at 5111 Benito Street, Montclair, CA 91763 on Thursday, August 3, 2023.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 4 of 173

CITY COUNCIL

AGENDA REPORT
DATE: AUGUST 7, 2023
SECTION: CONSENT - ADMIN. REPORTS
ITEM NO.: 1
FILE I.D.: FIN540
DEPT.: FINANCE
PREPARER: A. VONG/V. FLORES
SUBJECT: CONSIDER APPROVAL OF WARRANT REGISTER AND PAYROLL DOCUMENTATION REASON FOR CONSIDERATION: The City Council is requested to consider approval of the Warrant Register and Payroll Documentation.

BACKGROUND: Mayor Pro Tem Johnson has examined the Warrant Register dated August 7, 2023, the Payroll Documentation dated June 18, 2023, and the Payroll Documentation dated July 2, 2023, and recommends their approval.

FISCAL IMPACT: The Warrant Register dated August 7, 2023, totals $1,646,963.27.

The Payroll Documentation dated June 18, 2023 totals $989,155.26 gross, with $656,764.11 net being the total cash disbursement.

The Payroll Documentation dated July 2, 2023 totals $736,147.11 gross, with $516,567.64 net being the total cash disbursement.

RECOMMENDATION: Staff recommends the City Council approve the above–referenced Warrant Register and Payroll Documentation.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 5 of 173

CITY COUNCIL

AGENDA REPORT
DATE: AUGUST 7, 2023
SECTION: CONSENT - ADMIN. REPORTS
ITEM NO.: 2
FILE I.D.: PER540
DEPT.: CITY MGR.

PREPARER: E. STARR
SUBJECT: CONSIDER IMPLEMENTING A TEMPORARY, 18–MONTH MONTCLAIR HIRING BONUS

INCENTIVE PROGRAM FOCUSING ON RECRUITMENT OF LATERAL POLICE OFFICERS

AND POLICE OFFICER TRAINEES FUNDED BY PERSONNEL SAVINGS IN THE

MONTCLAIR POLICE DEPARTMENT BUDGET RELATED TO CURRENT POLICE

OFFICER CLASSIFICATION VACANCIES

CONSIDER AUTHORIZING THE FOLLOWING ELEMENTS OF THE MONTCLAIR HIRING BONUS INCENTIVE PROGRAM: A LATERAL POLICE OFFICER HIRING INCENTIVE BONUS PROGRAM, PROVIDING A $30,000 BONUS TO EACH NEW HIRE; A POLICE OFFICER TRAINEE HIRING INCENTIVE BONUS PROGRAM, PROVIDING A $10,000 BONUS TO EACH NEWLY HIRED, UNSPONSORED POLICE ACADEMY TRAINEE; AND

A MONTCLAIR EMPLOYEE POLICE RECRUITMENT REFERRAL BONUS PROGRAM, WHICH MAY BE TERMINATED AT ANY TIME PRIOR TO THE END OF THE 18–MONTH MONTCLAIR HIRING BONUS INCENTIVE PROGRAM, PROVIDING A $2,500 BONUS

TO EACH CITY OF MONTCLAIR EMPLOYEE REFERRING A PERSON WHO IS

SUCCESSFULLY HIRED AND COMPLETES PROBATION AS A MONTCLAIR POLICE

OFFICER

CONSIDER AUTHORIZING THE CITY MANAGER TO MAKE ADJUSTMENTS AND

MODIFICATIONS TO THE MONTCLAIR HIRING BONUS INCENTIVE PROGRAM, AND TO THE AMOUNT OF THE HIRING INCENTIVE BONUS ON A CASE–BY–CASE BASIS,

SUBJECT TO APPROVAL BY THE MONTCLAIR PERSONNEL COMMITTEE TO ENSURE

SUCCESS OF THE PROGRAM
REASON FOR CONSIDERATION: The Montclair Police Department is currently experiencing a decline in qualified applicants for Police Officer positions at both the recruit and lateral levels, creating a deficiency in the number of full–time Police Officers available for assignment to special details. The Police Department currently has 14 Police Officer vacancies.

Establishing a hiring incentive program is proposed as a productive approach to increasing the Police Officer recruitment hiring pool, particularly for experienced lateral Police Officer candidates. Accordingly, the City Council is requested to consider establishing a Montclair Hiring Bonus Incentive Program as discussed in this report.

BACKGROUND: Law enforcement recruitments have long been tilted in favor of police departments, which often had far more qualified applicants than they did job openings.

However, in recent years, the COVID–19 pandemic and the social unrest of 2020 have, in part, contributed to a nationwide decline in the number applicants for police officers.

In addition to a drop in police recruits, many police agencies have realized a significant exodus of experienced police officers, either through resignation or retirement, forcing police agencies to market themselves in new ways, including through the temporary use of hiring incentive programs, in order to attract sufficient candidates to adequately staff their respective departments.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 6 of 173 Some industry analysts attribute this recent, albeit temporary disinterest in police work, to the following factors:

1. Nationwide protests that started in May 2020 calling for the defunding of Police Departments stemming from high–profile Law Enforcement use–of–force cases:
a. Many prospective police officer candidates and experienced police officers made the decision that police work could endanger their safety and cause them to be punished for the legitimate performance of their duties. b. Experienced police officers also cited a perceived decline in community and organizational support for police officers as a primary reason for resigning or retiring from police work.

2. COVID–19 pandemic and COVID protocols.
a. As with many industries, police department recruitments in the immediate, post–pandemic years have realized a decline in the number of potential entry–level candidates. This decline is attributed, in part, to a percentage of the population making the decision to remain at home in order to avoid the risk of exposure to contagions.
b. Some experienced police officers found that pandemic protocols implemented by organizations were anathema to their personal and political beliefs and, therefore, elected to withdraw from the profession.

Others resigned because of vaccination mandates.
c. In one state, a Lexipol study found that 68 percent of police agencies modified personnel scheduling; 62 percent of police agencies limited staff access to police facilities; and 30 percent of police agencies furloughed or reduced staffing due to COVID–19. Together, these operational changes impacted productivity, efficacy and teamwork and created an environment for declining morale and staff shortages. Similar actions occurred in other U.S. states.
d. According to an NPR report, COVID was the leading cause of death among active–duty law enforcement personnel during the pandemic, marking the period as the deadliest for active–duty law enforcement in nearly a century.

A Police Executive Research Forum (PERF) survey of 194 of the country’s approximately 18,000 police agencies, conducted in 2021, showed that the hiring of new police recruits was down five percent—with larger police departments struggling more than smaller ones. At the same time, resignations of experienced police officers jumped by 18 percent over the year before, while retirement rates were up by 45 percent—a pattern that has continued into the present.

Another recent study, which examines a sample of 14 police departments with more than 100 sworn officers across the U.S., found that among that sample 11 police agencies reported higher rates of resignations and retirements than what would have otherwise been expected based on pre–2020 observations; for example, Salt Lake City and Seattle saw the highest levels of decline, with between 6.7 percent and 16 percent higher losses of sworn personnel than expected from pre–2020 observations. Across all MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 7 of 173 the departments studied, an extra 1,429 officers were lost over what normal turnover would predict, equating to a loss of authorized strength that was 5.4 percent higher than expected—losses that are in addition to “normal” attrition, again based on pre–2020 observations. Montclair has seen a similar rate of attrition, with open sworn positions currently standing at a peak of 14 out of a total of 56—representing 25 percent of total sworn personnel.

The PERF report notes that declines in sworn personnel are impacting cities large and small across the U.S., although metropolitan police departments have been hit the hardest. Reasons cited by PERF for the decline in new recruits and departure of experienced police officers, include the following:

1. Increased scrutiny and criticism of police;

2. Widespread media coverage of police use of force; and

3. Protests calling for police reform/defunding the police.

The above areas of concern reported by police officers have made it difficult for many police agencies to hire new recruits and retain experienced officers. It should be noted, however, that calls to radically revamp policing and divert resources away from police departments to other agencies have largely abated, if not gone away entirely. Even in Minneapolis, seat of the “Defund the Police” movement, voters of that community resoundingly rejected a proposition to replace the city’s police department with a new Department of Public Safety. Early on in the Defund the Police movement there were only minor impacts across the U.S. in a handful of municipalities through reductions in police budgets—reductions that have, for the most part, been fully restored and, in some cases, increased beyond pre–“Defund the Police” level budgets. This restoration of confidence in police departments has resulted in some police agencies reporting a renewed interest in potential candidates and personnel retention.

Available evidence does suggest, however, that Police Departments nationwide struggled with retention of police officers well before the current hiring and retention crisis.

Between 2008 and 2014, for example, California lost six percent of its police force, largely due to a weak economy and budget cuts—both stemming from the Great Recession—according to the California Commission on Peace Officer Standards and Training. Furthermore, many police departments nationwide were shedding police officers during this same period.

In reviewing the pre–pandemic decline in police officers, a 2019 report by PERF called the struggle to hire recruits and the sharp increase in resignations and retirements among experienced police officers a “workforce crisis.” Some departments had seen as much as a 70 percent drop in job applications since 2015, the report revealed.

Taken in perspective, PERF argues that reversing trends related to hiring declines and retention of experienced police officers goes beyond police salaries and working conditions—issues that can be addressed fairly easily. In the current climate, many experienced police officers state their reasons for leaving are burnout and a lack of trust from the communities they serve. Very few departing police officers cited economic issues as the reason or cause for their resignations.

California, in particular, can boast of police officer wages and working conditions that are generally considered superior to what is available in other states. According to the MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 8 of 173 U.S. Bureau of Labor Statistics, May 2022 report on Occupational Employment and Wages, nationwide the mean annual wage for Police Officers is $71,380.

Following is the annual mean wage for each of the following five largest U.S. states:

1. California – $104,010

2. Texas – $66,570

3. New York – $81,750

4. Florida – $73,350

5. Illinois – $82,470
U.S states with the highest annual mean wage for Police Officers include the following:

1. California – $104,010

2. Washington – $92,250

3. New Jersey – $90,520

4. Hawaii – $89,640

5. Alaska – $85,710
Within the Southern California region, following is the annual mean wage for the respective two metropolitan statistical areas in proximity to Montclair:

1. Los Angeles–Long Beach–Anaheim – $104,270

2. Riverside–San Bernardino–Ontario – $99,320
In comparison, Montclair’s annual rate of pay for a police officer is currently $104,328.

Based on the above, it seems apparent, then, that Police Officer wages in California (including Montclair) are significantly higher than the annual rate of pay in other states, and should not generally function as a deterrent to recruitment and retention.

Nonetheless, California is not immune to the current decline in applications for new police recruits and the departure of experienced police officers.

In relation to the decline in new recruits, at least one study at researchgate.net found that in many parts of the nation, police departments are becoming increasingly more homogenous in their personnel composition, despite a concerted effort to recruit across a broader demographic plane—due in part, to a declining interest in police work across a number of demographic groups. Furthermore, the findings indicated that when adolescents across all demographic spectrums are exposed to negative social media on policing, they become less inclined to demonstrate interest in policing careers—a major concern given that adolescents represent the future pool of police applicants. Many police departments may also limit their pool of candidates by retaining restrictive acceptance standards that can exclude otherwise qualified applicants. Cannabis use, for example, can exclude applicants at many police departments, despite its increasing acceptance by the public, even in states where it remains illegal. For many California police departments, including Montclair’s, an applicant’s admission to his or her past use of cannabis is generally not used to automatically exclude an applicant for police work.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 9 of 173 What also appears to be clear is that police officer shortages are due, in part, to a larger reordering of the American economy. Low unemployment rates, ample job openings and a proliferation of remote work have emboldened people in many fields to seek better pay, new career paths or more time off to spend with family. And within policing, many departments were already facing a crush of officers nearing retirement age.

In relation to the loss of experienced police personnel, the obvious concern is that less qualified recruits take their place, giving rise to concerns related to the quality of policing provided. This predicament is exacerbated by the fact that it can take approximately 18 months from recruitment to end–of–training to transform an inexperienced recruit into a rookie police officer capable of responding to 9–1–1 service calls. On average, police officers hired after completion of an academy spend four months or longer in training before they can patrol the streets alone. The Bureau of Justice Statistics reports an average training period of approximately six to eight months.

For new recruits there is a rigorous application, background, training, physical and field evaluation process. By some estimates, only ten percent of applicants make it through the background process which includes a polygraph test, psychological evaluation, medical examination and interviews with a hiring team. Recruits who successfully clear screening hurdles and make it to a police academy where they are required to successfully complete physical agility and mental challenge requirements must then face a rigorous six–month to one–year training process, which further reduces the number of successful recruits.

Depending on the agency, the entire process of becoming a police officer—from application to the training academy, to being sworn in—can take up to one year. An academy graduate then must spend time on the streets with a training officer before they are released on their own to function as trained police officer—adding another six months to one year to the process.

As evidenced by the above training requirements for new recruits, there is a clear financial burden related to high police turnover. As departments struggle to fill the void left by departing officers, they incur a significant expense in hiring and training recruits.

Costs associated with recruitment, background checks, academy training, and field training can be substantial. According to one study, the cost of hiring and training a brand–new officer is estimated to cost between one and five times that officer’s annual salary—depending on police agency practices, labor and training costs, and other factors. In Montclair, that cost is typically equal to twice a new Police Officer’s annual wages.

Reversing the Decline in Police Officer Applications.

Reversing the current decline in police officer applicants may depend on implementing a number of systemic changes to recruiting practices. In some quarters, widespread job openings and the intense competition for recruits have forced conversations about how police officers are hired and what requirements they must meet.

1. Some police agencies have implemented changes to their hiring practices, including the following:
 The streamlining of lengthy and opaque application and background processes that can extend out for months;
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 10 of 173  Removal of longstanding hiring policies that disqualified applicants for past use of cannabis.
 Restrictions on the use of credit reports—e.g., examining only for failure to make child support payments, or running up expenditures prior to filing for bankruptcy;
 Revamped fitness requirements that weeded out otherwise–qualified candidates; and
 Eased rules on hairstyles, grooming standards and tattoos—currently under review by the Montclair Police Department.

2. Many jurisdictions are focusing on hiring experienced police officers due to their experience and quick turnaround in training. In contrast to hiring and training new recruits which, as indicated above, can take as long as 18–months to prepare for service, experienced lateral hires may take five to eight weeks to fully train to Montclair Police Department standards.

3. Many jurisdictions, nationwide, are turning to incentives to lure experienced police officer or hire new police recruits. Of the incentives offered, signing bonuses appear be the most common enticement for both new recruits and experienced lateral officers, the latter representing those individuals who are willing to move from one agency to another.

In California, incentive bonuses range from approximately $3,000 to $75,000, with highest being offered by the City of Alameda, making it the largest incentive bonus program in the nation. Examples of incentive hiring bonuses paid by other cities in California include, but are not limited to, the following:
 San Diego:
o $15,000 hiring bonus, lateral and recruit.
 San Diego County Sheriffs (National City, San Diego, Chula Vista, Oceanside, San Diego County):
o $30,000 hiring bonus, lateral and recruit.
 Chula Vista:
o $25,000 hiring bonus, lateral.
 Oceanside:
o $22,000 hiring bonus, lateral.
 Pomona:
o $25,000 hiring bonus, lateral and recruit.
 Colton:
o $15,000 hiring bonus, lateral and recruit.
 Chino:
o $10,000 hiring bonus, lateral and recruit.
 Upland:
o $12,500 hiring bonus, lateral.
o $7,500 hiring bonus, recruit.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 11 of 173  Downey:
o $3,000 hiring bonus, lateral and recruit.
 Inglewood:
o $40,000 hiring bonus, lateral.
o $30,000 hiring bonus, recruit who completed certified police academy.  Antioch:
o $30,000 hiring bonus, lateral and recruit.
 La Mesa:
o $15,000 hiring bonus, lateral and recruit.
 San Francisco:
o $5,000 hiring bonus, lateral and recruit.
 San Jose:
o $10,000 hiring bonus, lateral and recruit.
 Hayward
o $10,000 hiring bonus, lateral and recruit.
 Bart PD
o $15,000 hiring bonus.
 Alameda County Sheriff:
o $15,000 hiring bonus, lateral and recruit.
 San Mateo:
o $30,000 hiring bonus, lateral.
 Redding:
o $40,000 hiring bonus, lateral.

Outside of California, many cities and counties in other states are also paying hiring bonuses; however, nearly all of these hiring bonus programs are between $3,000 and $10,000, with only a few offering hiring incentives between $15,000 and $30,000.

Some national law enforcement experts and local police officials are opposed to incentives, likening them to professional athletes shopping around for the highest bidder, and arguing that there is little empirical evidence that incentives actually generate improvements to the recruitment dilemma.

The Police Executive Research Forum agrees that bonuses and other incentives are not the answer for struggling police agencies, arguing that the current recruitment drought is not a regional problem, but a nationwide problem that is made worse by police departments competing against each other at the same time. In effect, PERF argues that police agencies are cannibalizing each other, creating a zero–sum game where one police department gains, while another loses.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 12 of 173 The International Association of Chiefs of Police, in a 2019 study on the law enforcement recruitment crisis, cited competition for the best–available recruits and lateral transfers as a problem, especially in places like Southern California. The report concludes that agencies in regions where multiple law enforcement agencies are geographically close often find themselves in fierce competition to attract and secure the best candidates in the area.

An argument can be made, however, that incentives, if they are to be considered, are functionally more relevant for lateral candidates as opposed to new recruits, primarily because recruiting for laterals represents a quick turn–around in the recruitment process.

Despite the misgivings by some, and a lack of empirical evidence that affirmatively attests to the success of incentive programs, it is clear that the relatively low cost of a lateral transfer bonus program outweighs the high cost related to the hiring and training of new recruits; although, it is likely that, as bonuses for lateral transfers become more popular, an inflation factor could raise the cost of hiring incentives. In fact, the current nationwide recruitment phenomenon has created a competitive atmosphere between police agencies, with many trying to lure already–trained officers from other agencies by offering higher salaries and better incentives, causing many industry professionals to conclude that inter– department competition worsens the high turnover problem and raises questions about the long–term sustainability of incentivization practices.

While incentives may function as a short–term and necessary solution for many jurisdictions, law enforcement agencies may need to consider other systemic or operational changes related to recruiting, including re–evaluating training models for new recruits.

Many police agencies are turning to hiring marketing firms to reach candidates through TikTok, Snapchat, Instagram and Facebook. At its July 17, 2023, meeting, the Montclair City Council approved Agreement No. 23–55 with TOC Public Relations to develop a recruitment website exclusively for the Montclair Police Department for the purpose of attracting and recruiting Police Officer candidates to fill multiple vacancies. The Agreement includes a photo and video recruitment package and a targeted social media ad campaign.

Attracting new generations of police officers from the “Millennial” and “Gen Z” population groups presents law enforcement with another set of new challenges that call for different approaches to the recruitment process—challenges that may include the following:
 Studies suggest that younger generations want a better work–life balance and more immediate gratification. They also tend to not want to remain in one profession for any prolonged duration. Moreover, a nationwide unemployment rate of approximately 3.5 percent now means more opportunities exist for young people—opportunities that do not require them to undergo up to a year or more of interviews, background checks, psychological evaluations and six months of training at police academies.

Newer generations appear to want information quickly; e.g., they want to be able to apply and know right away if they have been accepted for employment; otherwise, they may quickly move on to other employment prospects.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 13 of 173  According to the Pew Research Center and other studies, the Millennial and Gen Z populations, together, represent the largest living generation in the U.S. (in excess of 80 million), making up an ever–increasing portion of the workforce, including for law enforcement. To bring the Millennial and Gen Z population into the profession, police departments must learn to revise their recruitment, training and retention practices. Hiring them into the profession must be revised to reflect their desires, interests, wants, and needs, particularly as it relates to the way they regard the workplace, and their home–work–life balance. Further, they are often driven by motivations and ideals that are different than their predecessors.

Montclair Hiring Bonus Incentive Program.

It is clear that if police agency resignations continue at the current pace, or there remains a diminished number of new candidates entering the police field, public safety could be compromised for the foreseeable future, and public confidence could be eroded in the ability of municipalities and counties to provide public safety.

Making systemic or operational changes to advance recruitment practices will take time to implement and produce results. In the short–term, it is clear that the Montclair Police Department needs to address its current outreach for new hires by considering implementation of a hiring–based incentive program. For that reason, the City Manager proposes a temporary, 18–month Montclair Hiring Bonus Incentive Program that focuses on the recruitment of lateral police officers and police officer trainees—the proposed hiring bonus incentive program has the support of Montclair Police Department management and the Montclair Police Officers’ Association (MPOA).

Lateral Police Officer Hiring Incentive Bonus Program. As proposed, the Lateral Police Officer Hiring Incentive Bonus Program will provide a $30,000 bonus to each new hire as follows:

1. $10,000 at hiring;

2. $10,000 upon completion of 18–month MOU probation period; and

3. $10,000 at the third anniversary date following completion of probation.

The following factors would impact a Lateral Police Officer hire’s eligibility to receive some or all of the payments, or would require some or all of the disbursed payments to be returned:
 A bonus recipient failing to satisfactorily complete probation would be required to pay back the initial $10,000 bonus payment, and would not be eligible to receive the balance of the bonus payments.
 A bonus recipient self–terminating his or her service with the City at any point prior to receiving the final bonus payment would be required to pay back the initial bonus payment and, if disbursed to the employee, the bonus paid upon completion of the MOU probation period. The employee would not be eligible to receive the balance of any remaining bonus payments.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 14 of 173  A bonus recipient whose service is terminated by the City after probation and prior to eligibility for the final bonus payment would not receive the final bonus payment and will be required to pay back both the initial bonus payment and the bonus payment provided upon completion of the MOU probation period.  A bonus recipient self–terminating his or her service with the City at any point prior to receiving the final bonus payment or within twelve months of receiving the final bonus payment in order to pursue a hiring bonus incentive offered by another police agency will be required to pay back the full amount of the hiring bonus incentive paid to the employee. The City reserves the right to inform the hiring agency of the employee’s intent to jump from agency to agency for bonus incentive payments.

For purposes of the Lateral Police Officer Hiring Incentive Bonus Program, a lateral police officer is a person in possession of a Peace Officer’s Standards and Training (P.O.S.T.) Basic Certificate, as defined by P.O.S.T.

In order to ensure the success and effectiveness of the Lateral Police Officer Hiring Incentive Bonus Program, City staff recommends the City Council provide the City Manager with authority to make adjustments to bonus payment provisions and the amount of the hiring incentive bonus on a case–by–case basis subject to approval by the Personnel Committee.

Police Officer Trainee Hiring Incentive Bonus Program. As proposed, the Police Officer Trainee Hiring Incentive Bonus Program will provide a $10,000 bonus to each newly hired, unsponsored (not hired on with a police agency) police academy trainee, as follows:

1. $2,500 at hiring and upon successful completion of police academy training; and

2. $7,500 upon completion of the MPOA–City MOU probation period.

The following factors would impact a Police Officer Trainee hire’s eligibility to receive some or all of the payments, or would require some or all of the disbursed payments to be returned:
 A bonus recipient failing to satisfactorily complete probation would be required to pay back the initial $2,500 bonus payment, and would not be eligible to receive the balance of the bonus payment.
 A bonus recipient self–terminating his or her service with the City at any point prior to receiving the final bonus payment would be required to pay back the initial bonus payment. The employee would not be eligible to receive the balance of any remaining bonus payments.
 A bonus recipient whose service is terminated by the City within twelve months after probation would be required to pay back the initial and post–probation bonus payment.
 A bonus recipient self–terminating his or her service with the City within twenty–four months of receiving the final bonus payment in order to pursue a hiring bonus incentive offered by another police agency will be required to pay back the full amount of the hiring bonus incentive paid to the employee. The City reserves the MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 15 of 173 right to inform the hiring agency of the employee’s intent to jump from agency to agency for bonus incentive payments.

In order to ensure the success and effectiveness of the Police Officer Trainee Hiring Incentive Bonus Program, City staff recommends the City Council provide the City Manager with authority to make adjustments to bonus payment provisions, and the amount of the hiring incentive bonus on a case–by–case basis, subject to approval by the Personnel Committee.

Montclair Employee Police Recruitment Referral Bonus Program. In addition to the above, the City Manager recommends a Montclair Employee Police Recruitment Referral Bonus Program, as follows:
 A $2,500 bonus to each employee of the City of Montclair who refers, for hiring as a police officer trainee, the name of a person unaffiliated in any way with the Montclair Police Department, either past or present. For the employee to receive the $2,500 bonus, the person referred for hiring must successfully become a sworn Montclair Police Officer by completing the hiring process, police academy, background process (including polygraph exam, psychological evaluation, medical examination and interviews with a hiring team), and probation period—at which time the bonus related to the Montclair Employee Police Recruitment Referral Bonus Program will be paid to the referring employee, provided the employee making the referral is, at the time of eligibility, an active employee on payroll with the City of Montclair.  A $2,500 bonus to each employee of the City of Montclair who refers, for hiring as a lateral police officer, the name of a person or former Montclair Police Officer, the latter who:
o Has not been an employee of the City of Montclair for at least twenty–four months prior to the offering of a Montclair hiring incentive,
o Did not leave City employment as part of a hiring incentive bonus program offered by another agency,
o Did not retire from the City of Montclair, and
o Whose separation from the City was for other than discipline, retirement, injury or other legal reason as determined by the City Manager.

For the employee to receive the $2,500 bonus, the person referred for hiring must successfully become a sworn Montclair Police Officer by completing the hiring process, background process (including polygraph exam, psychological evaluation, medical examination and interviews with a hiring team), and probation period—at which time the bonus related to the Montclair Employee Police Recruitment Referral Bonus Program will be paid to the referring employee, provided the employee making the referral is, at the time of eligibility, an active employee on payroll with the City of Montclair.
 Except as otherwise authorized by the City Manager, no City of Montclair employee shall be eligible to receive more than two $2,500 payments through the Montclair Employee Police Recruitment Referral Bonus Program.
 At the discretion of the City Manager, the Montclair Employee Police Recruitment Referral Bonus Program shall terminate at any time prior to the end of the temporary, 18–month Montclair Hiring Bonus Incentive Program.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 16 of 173 FISCAL IMPACT: All bonuses, as defined in this agenda report, would be paid for through current personnel savings in the Montclair Police Department Budget related to current Police Officer classification vacancies. The Montclair Hiring Bonus Incentive Program is subject to modification as determined necessary by the City Manager.

The Montclair Police Department currently has 14 Police Officer classification vacancies out of 56 total sworn positions (51 sworn non–management positions and five sworn management positions).

1. Under the Lateral Police Officer Hiring Incentive Bonus Program, hiring 14 lateral police officers would have a potential cost impact of up to $420,000, spread over multiple fiscal years. First year (Fiscal year 2023–24) payments under the program would be drawn from current personnel savings in the Montclair Police Department Budget related to current Police Officer classification vacancies.

2. Under the Police Officer Trainee Hiring Incentive Bonus Program, hiring 14 Police Officer Trainees would have a potential cost impact of $140,000, spread over multiple fiscal years. First year (Fiscal year 2023–24) payments under the program would be drawn from current personnel savings in the Montclair Police Department Budget related to current Police Officer classification vacancies.

3. Costs related to the Montclair Employee Police Recruitment Referral Bonus Program are unknown; however, in the event that 14 persons are successfully recommended for hiring under this program, the cost would be $35,000, spread over multiple fiscal years. First year (Fiscal year 2023–24) payments under the program would be drawn from current personnel savings in the Montclair Police Department Budget related to current Police Officer classification vacancies.

The actual cost of the proposed Montclair Hiring Bonus Incentive Program, if successfully implemented, is projected to fall between $140,000 to $455,000, spread over multiple fiscal years.

For Fiscal Year 2023–24, all bonuses, as defined in this agenda report, would be paid for through current personnel savings in the Montclair Police Department Budget related to current Police Officer classification vacancies.

Montclair Hiring Bonus Incentives will only be fully paid based on the results of recruitments for lateral Police Officers and Police Officer Trainees and the passing of probation by each person participating in the Montclair Hiring Bonus Incentive Program.

The Montclair Hiring Bonus Incentive Program will terminate after an 18–month period following the date of authorization by the City Council, or sooner based on the filling of current, vacant positions. The Montclair Hiring Bonus Incentive Program can only be extended by City Council authorization.

Except as otherwise authorized by the City Manager, no employee shall be eligible to receive more than one distribution of $2,500 through the Montclair Employee Police Recruitment Recommendation Bonus Program.

Upon implementation of the Montclair Hiring Bonus Incentive Program, and except as otherwise authorized by the City Manager, no employee of the City of Montclair who leaves MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 17 of 173 employment of the City, or left employment of the City within the twelve months preceding the date of authorization of the Montclair Hiring Bonus Incentive Program by the City Council, will be eligible to return to City employment and qualify for a bonus under the Montclair Hiring Bonus Incentive Program.

Except for the Montclair Employee Police Recruitment Referral Bonus Program, no current employee of the City of Montclair will be eligible for participation in the Montclair Hiring Bonus Incentive Program.

RECOMMENDATION: Staff recommends the City Council authorize the following:

1. Implement a temporary, 18–month Montclair Hiring Bonus Incentive Program, focusing on the recruitment of lateral police officers and police officer trainees funded by personnel savings in the Montclair Police Department budget related to existing Police Officer classification vacancies.

2. Authorize the following elements of the Montclair Hiring Bonus Incentive Program:
a. A Lateral Police Officer Hiring Incentive Bonus Program, providing a $30,000 bonus to each new hire;
b. A Police Officer Trainee Hiring Incentive Bonus Program, providing a $10,000 bonus to each newly hired, unsponsored police academy trainee; and
c. A Montclair Employee Police Recruitment Referral Bonus Program, which may be terminated at any time prior to the end of the 18–month Montclair Hiring Bonus Incentive Program by the City Manager, providing a $2,500 bonus to each City of Montclair employee referring a person who is successfully hired and completes probation as a Montclair Police Officer.

3. Authorize the City Manager to make adjustments and modifications to the Montclair Hiring Bonus Incentive Program, and to the amount of the hiring incentive bonus on a case–by–case basis, subject to approval by the Montclair Personnel Committee to ensure success of the program.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 18 of 173

CITY COUNCIL

AGENDA REPORT
DATE: AUGUST 7, 2023
SECTION: CONSENT - AGREEMENTS
ITEM NO.: 1
FILE I.D.: HSV046/GRT085
DEPT.: COMMUNITY DEV.

PREPARER: A.COLUNGA/G. FONDARIO
SUBJECT: CONSIDER APPROVAL OF AGREEMENT NO. 23–51 WITH CHRISTIAN DEVELOPMENT CENTER TO PROVIDE CASE MANAGEMENT SERVICES FOR THE CITY’S HOMELESS

OUTREACH AND ASSISTANCE PROGRAM, SUBJECT TO ANY REVISIONS DEEMED

NECESSARY BY THE CITY ATTORNEY
REASON FOR CONSIDERATION: The City Council is requested to consider approval of Agreement No. 23–51 with Christian Development Center (CDC) for case management services for the City’s Homeless Outreach and Assistance Program.

BACKGROUND: The Special Operations Unit (SOU) of the Montclair Code Enforcement Division has primary responsibility in working with homeless individuals within the City.

SOU seeks to implement its comprehensive approach to address homelessness by working with individuals to offer a variety of options, resources, and enforcement actions tailored as much as possible to their situation. As part of their daily efforts, SOU relies on assistance from other partner groups or organizations that have the same goal of helping to end homelessness, such as organizations like the CDC. The City’s partnership with CDC last fiscal year, pursuant to the last fiscal year’s contract, Agreement No. 22–81, assisted approximately 108 individuals with resources.

Proposed Agreement No. 23–51 would continue the relationship with the CDC from July 1, 2023 to June 30, 2024 and would enable their continued assistance with the City’s implementation of the Homeless Outreach and Assistance Program. CDC is a non–profit organization led by Pastors Don and Ethel Rucker, who since January 2020 have served as key partners in providing needed case management for individuals referred to them by SOU.

CDC has demonstrated their commitment in assisting the City with the implementation of the Homeless Outreach and Assistance Program in an empathetic and effective process through the services they provide. The CDC is available 24 hours a day, seven days a week, and provides a wide–range of services. Examples of services provided by CDC includes the following: on–site interventions, counseling services, navigation of appropriate resources (including, temporary and permanent housing options as well as placement of individuals into in–house rehabilitation facilities), rental assistance, transportation services, establishing and maintaining rapport with collaborating agencies and organizations, providing food, clothing, and hygiene items to needy individuals and families, as well as responding to calls for service and/or crisis situations as needed by the SOU.

The estimated cost for case management services for a twelve–month term is $60,000 ($5,000 per month) funded through the City’s grant award through the Homeless Housing Assistance & Prevention, Round 2 (HHAP–2) grant and also the City’s General Fund. General funds used for this agreement were allocated and approved in the fiscal year 2023–2024 budget.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 19 of 173 FISCAL IMPACT: If the City Council approves Agreement No. 23–51, $5,000 will be paid monthly for twelve months to CDC for case management services. Further, $3,300 will be funded through the HHAP–2 grant funding and $56,700 would be paid through the City’s General Fund. General Fund monies used for this agreement were allocated and approved in the Fiscal Year 2023–24 budget. The term of Agreement No. 23–51 is July 1, 2023 through June 30, 2024.

RECOMMENDATION: Staff recommends the City Council approve Agreement No. 23–51 with Christian Development Center to provide case management services for the Homeless Outreach and Assistance Program, subject to any revisions deemed necessary by the City Attorney.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 20 of 173 Agreement No. 23-51
1 CITY OF MONTCLAIR

AGREEMENT FOR CONSULTANT SERVICES
HOMELESS OUTREACH AND ASSISTANCE PROGRAM – CASE MANAGEMENT

SERVICES
THIS AGREEMENT is made and effective as of July 1, 2023 between the City of Montclair, a municipal corporation (“City”) and Christian Development Center, a 501(c)(3) non-profit organization (“Consultant”).

WHEREAS, the City and the County of San Bernardino Office of Homeless Services (OHS), hereinafter referred to as "County," have entered into an Agreement which authorizes the City to provide certain services, said City Agreement being No. 22-90 signed August 15, 2022; and
WHEREAS, the aforesaid Agreement provides that the City may subcontract for certain professional services subject to prior County approval; and WHEREAS, the City desires to engage the Consultant to provide professional services as detailed elsewhere in this Agreement; and
WHEREAS, the Consultant desires to perform and provide such services and hereby agrees to comply with all applicable requirements provided in the City’s Agreement No. 22-90 with the County, CONTRACTOR RESPONSIBILITIES and GENERAL CONTRACT REQUIREMENTS sections.

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the City and the Consultant agree as follows:

1. TERM
This Agreement shall commence on July 1, 2023 and shall remain and continue in effect for a period of 12 months until tasks described herein are completed, but in no event later than June 30, 2024 unless sooner terminated pursuant to the provisions of this Agreement.

2. SERVICES
Consultant shall perform the tasks described and set forth in Exhibit A, attached hereto and incorporated herein as though set forth in full. Consultant shall complete the tasks according to the schedule of performance which is also set forth in Exhibit A.

3. PERFORMANCE
Consultant shall at all times faithfully, competently and to the best of his/her ability, experience and talent, perform all tasks described herein. Consultant shall employ, at a minimum, generally accepted standards and practices utilized by persons MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 21 of 173 Agreement No. 23-51
2 engaged in providing similar services as are required of Consultant hereunder in meeting its obligations under this Agreement.

4. CITY MANAGEMENT
City’s Community Development Director shall represent City in all matters pertaining to the administration of this Agreement, review and approval of all products submitted by Consultant, but not including the authority to enlarge the Tasks to be Performed or change the compensation due to Consultant. City’s Community Development Director shall be authorized to act on City’s behalf and to execute all necessary documents which enlarge the Tasks to be Performed or change Consultant’s compensation, subject to Section 5 hereof.

5. PAYMENT
(a) The City agrees to pay Consultant monthly, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit B, attached hereto and incorporated herein by this reference as though set forth in full.

This amount is subject to receipt of grant funding and shall not exceed $50,000 for the total term of the Agreement unless additional payment is approved as provided in this Agreement.
(b) Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the City Manager. Consultant shall be compensated for any additional services in the amounts and in the manner as agreed to by City Manager and Consultant at the time City’s written authorization is given to Consultant for the performance of said services.

The City Manager may approve additional work not to exceed ten percent (10%) of the amount of the Agreement. Any additional work in excess of this amount shall be approved by the City Council.
(c) Consultant agrees that, in no event shall City be required to pay to Consultant any sum in excess of ninety-five percent (95%) of the maximum payable hereunder prior to receipt by City of all final documents, together with all supplemental technical documents, as described herein acceptable in form and content to City. Final payments shall be made no later than sixty (60) days after presentation of final documents and acceptance thereof by City.

6. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE (a) The City may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon the Consultant at least ten (10) days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise.

If the City suspends or terminates a portion of this Agreement, such suspension or termination shall not make void or invalidate the remainder of this Agreement.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 22 of 173 Agreement No. 23-51
3 (b) In the event this Agreement is terminated pursuant to this Section, the City shall pay to Consultant on a pro-rata basis the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City.

7. DEFAULT OF CONSULTANT
(a) The Consultant’s failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any work performed after the date of default and can terminate this Agreement immediately by written notice to the Consultant. If such failure by the Consultant to make progress in the performance of work hereunder arises out of causes beyond the Consultant’s control, and without fault or negligence of the Consultant, it shall not be considered a default.
(b) If the City Manager or his/her delegate determines that the Consultant is in default in the performance of any of the terms or conditions of this Agreement, he/she shall cause to be served upon the Consultant a written notice of the default. The Consultant shall have ten (10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event that the Consultant fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement.

8. OWNERSHIP OF DOCUMENTS
(a) Consultant shall maintain complete and accurate records with respect to billed time, sales, costs, expenses, receipts and other such information required by City that relate to the performance of services under this Agreement. Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of City or its designees at reasonable times to such books and records; shall give City the right to examine and audit said books and records; shall permit City to make transcripts therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment.
(b) Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, claims, applications, computer files, notes, and other documents prepared in the course of providing the services to be performed pursuant to this Agreement shall become the sole property of the City and may be used, reused, or otherwise disposed of by the City without the permission of the Consultant. With respect to computer files, Consultant shall make available to the City, at the Consultant’s office and upon reasonable written request by the City, the necessary MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 23 of 173 Agreement No. 23-51
4 computer software and hardware for purposes of accessing, compiling, transferring and printing computer files.

9. INDEMNIFICATION
(a) Defense, Indemnity and Hold Harmless. Consultant shall defend, indemnify, and hold harmless the City, its present and former officers, directors, employees, agents, staff, volunteers, mayor, council, boards, committees, and representatives, as broadly interpreted (collectively, the “Indemnified Parties”), of and from all claims, suits, demands, obligations, losses, damages, sums, or any other matters threatened or presently asserted, including but not limited to all legal fees, costs of defense and litigation expenses (including legal fees, expert fees and any other costs or fees, including those of adverse parties imposed on or sought against the Indemnified Parties), arising directly or indirectly out of any liability or claim of loss or liability for personal injury, bodily injury to persons, contractual liability, errors or omissions, breach, failure to perform, damage to or loss of property, or any other loss, damage, injury or other claim of any kind or nature arising out of the work to be performed by Consultant herein, caused by or arising out of the negligent acts or omissions, or intentional misconduct of Consultant, including its subcontractors, employees, agents, and other persons or entities performing work for Consultant.
(b) Contractual Indemnity. To the fullest extent permitted under California law, Consultant shall contractually indemnify, defend and hold harmless the Indemnified Parties from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses, amounts for good faith settlement, or costs of any kind, whether actual, alleged or threatened, including attorney’s fees and costs, court costs, interest, defense costs, and expert witness fees and costs), arising out of or related to, in whole or in part, the performance of this Agreement by Consultant or by any individual or entity for which Consultant is legally liable, including but not limited to Consultant’s officers, agents, representative, employees, independent Consultants, subconsultants/subcontractors or affiliated or related entities and/or its or their employees, agents and representatives, caused by or arising out of all negligent acts or omissions, or intentional misconduct of Consultant, including its subconsultants/subcontractors, employees, agents and other persons or entities performing work for Consultant. Indemnification shall include any claim that Consultant, or Consultant’s employees or agents, are or may be considered and treated as employees of the City or are entitled to any employee benefits from City including but not limited to those available under Public Employees Retirement Law. The obligation to indemnify, defend and hold harmless the Indemnified Parties shall apply to all liability as defined above regardless of whether the Indemnified Parties were or are alleged to have been negligent, except that it shall not apply to claims arising from the sole negligence or willful intentional misconduct of the Indemnified Parties. Consultant’s obligation to defend the Indemnified Parties is not contingent upon there being an acknowledgement of or determination of the merit of any claims, liability, demands, causes of action, suits, losses, expenses, errors, omissions and/or costs. (c) Subconsultants/subcontractors and Indemnification. Consultant agrees to and shall obtain executed indemnity agreements in favor of the Indemnified Parties with MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 24 of 173 Agreement No. 23-51
5 provisions identical to those set forth from each and every Subconsultant, Subcontractor, or other person or entity involved by, for, with, or on behalf of Consultant in the performance of any aspect of this Agreement. In the event Consultant fails to obtain such indemnity obligations, Consultant shall be fully responsible for each and every Subconsultant, Subcontractor or other person or entity in terms of defense, indemnity and hold harmless obligations in favor of the Indemnified Parties as set forth above. This obligation to indemnify and defend the Indemnified Parties is binding on the successors, assigns, or heirs of Consultant and shall survive the full performance or termination of this Agreement. These indemnification provisions are independent of and shall not in any way be limited or superseded by the insurance requirements and insurance-related provisions of this Agreement.
(d) City Lost or Damaged Property – Theft. Consultant further agrees to pay or cause to be paid to the Indemnified Parties’ benefit, any and all damages, fines, penalties, and loss or theft of property of the City arising out of or related in any way to the negligent acts or omissions or intentional misconduct of Consultant or of Consultant’s officers, agents, representatives, employees, independent contractors, subconsultants or affiliated or related entities and/or its or their employees, agents and representatives, whether such actions, omissions to act, negligence or intentional conduct is or was authorized by this Agreement or not. City assumes no responsibility whatsoever for any property placed on the premises of City. Consultant further agrees to waive all rights of subrogation against the Indemnified Parties.
(e) Non-Waiver and Non-Exhaustion of City’s Further Rights and Remedies. No aspect of this provision shall in any way limit or effect the rights of the Indemnified Parties against the Consultant under the terms of this Agreement or otherwise. The indemnification provisions shall apply regardless of whether this Agreement is executed after Consultant begins the work and shall extend to claims arising after this Agreement is performed or terminated, including a dispute as to the termination of Consultant. The indemnity obligations of Consultant shall continue until it is determined by final judgment that the claim against the City and any Indemnified Parties is determined by final judgment and after exhaustion of any rights of appeal. Further, no aspect of this provision shall impact the City’s rights to contribution from Consultant, or for the City to dispute Consultant’s refusal to defend and indemnify City. (f) Limitations on Scope of Indemnity. Notwithstanding the foregoing, Consultant shall not be responsible for indemnification for claims or losses caused by the sole negligence or intentional wrongdoing of Indemnified Parties. Further, the indemnity provided shall be interpreted as broadly as permitted under California law and as to agreements between parties and shall if required be reformed to be consistent with those laws to protect and save this provision for the protection of the Indemnified Parties. (g) The obligations of Consultant under this or any other provision of this Agreement shall not be limited by the provisions of any workers’ compensation act or similar act. The Consultant expressly waives any statutory immunity under such statutes or laws as to the Indemnified Parties. The Consultant’s indemnity obligation set forth in this Section 9 shall not be limited by the limits of any policies of insurance required or provided by the Consultant pursuant to this Agreement.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 25 of 173 Agreement No. 23-51
6 (h) The Consultant’s covenant under this Section 9 shall survive the expiration or termination of this Agreement.

10. INSURANCE
(a) Types of Required Coverages
Without limiting the indemnity provisions of the Contract, the Consultant shall procure and maintain in full force and effect during the term of the Contract, the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so.
(1) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 0001 covering “Any Auto” (Symbol 1), including owned, nonowned and hired autos, or the exact equivalent, with minimum limits of $100,000 for bodily injury and property damage, each accident.

If Consultant owns no vehicles, auto liability coverage may be provided by means of a non-owned and hired auto endorsement to the general liability policy. Automobile liability insurance and endorsements shall be kept in force at all times during the performance of this Agreement.
(2) Workers’ Compensation: If applicable, Workers’ Compensation Insurance, as required by the State of California and Employer’s Liability Insurance with a limit of not less than $1,000,000 each accident for bodily injury and $1,000,000 each employee for bodily injury by disease.
(b) Endorsements
Insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for approval.
(1) The insurance coverages required by Section (a)(1) Automobile Liability Insurance shall contain the following provisions or be endorsed to provide the following:

Additional Insured: The City, its elected officials, officers, employees, volunteers, boards, agents and representatives shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Contract. Coverage for the additional insureds shall apply to the fullest extent permitted by law.

Additional Insured Endorsements shall not:

1. Be limited to “Ongoing Operations”

2. Exclude “Contractual Liability”

3. Restrict coverage to the “Sole” liability of consultant MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 26 of 173 Agreement No. 23-51
7 4. Exclude “Third-Party-Over Actions”

5. Contain any other exclusion contrary to the Contract) (2) The policy or policies of insurance required by Section (a)(2) Workers’ Compensation shall be endorsed, as follows:

Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the indemnified parties.
(c) Notice of Cancellation
Required insurance policies shall not be cancelled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium.

11. INDEPENDENT CONTRACTOR
(a) Consultant is and shall at all times remain as to the City a wholly independent contractor. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control and shall not be construed to be employees of City for any purpose, including eligibility under Public Employees Retirement Law. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Consultant or any of Consultant’s officers, employees, or agents, except as set forth in this Agreement.

Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the City.

Consultant shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner.
(b) No employee benefits shall be available to Consultant in connection with the performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement City shall not pay salaries, wages, or other compensation or benefits to Consultant for performing services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder.
(c) In regard to the professional services provided by Consultant and defined in Exhibit “A,” City and Consultant specifically agree as follows:
(1) While Consultant may perform certain services at the premises of City, Consultant is not required to do so and may perform services at its separate business location.
(2) With the exception of agreed upon project completion dates and the agreement the Consultant will be available at reasonable business hours, the Consultant shall have the ability to set his/her own hours of operation.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 27 of 173 Agreement No. 23-51
8 (3) Consultant represents that the services he/she performs under this Agreement are the same services Consultant is customarily engaged in his/her business. City acknowledges that Consultant does not perform services exclusively for City and that Consultant performs or is available to perform these same services to other clients. (4) Consultant will use his/her own discretion and independent judgment in the performance of the services rendered for City under the terms of this Agreement.

12. LEGAL RESPONSIBILITIES
The Consultant shall keep itself informed of State and Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its services pursuant to this Agreement. The Consultant shall at all times observe and comply with all such laws and regulations. The City, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the Consultant to comply with this Section.

13. UNDUE INFLUENCE
Consultant declares and warrants that no undue influence or pressure is used against or in concert with any officer or employee of the City of Montclair in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of the City of Montclair will receive compensation, directly or indirectly, from Consultant, or from any officer, employee or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement.

Violation of this Section shall be a material breach of this Agreement entitling the City to any and all remedies at law or in equity.

14. NO BENEFIT TO ARISE TO LOCAL EMPLOYEES
No member, officer, or employee of City, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the Project during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for work to be performed in connection with the project performed under this Agreement.

15. RELEASE OF INFORMATION/CONFLICTS OF INTEREST
(a) All information gained by Consultant in performance of this Agreement shall be considered confidential and shall not be released by Consultant without City’s prior written authorization. Consultant, its officers, employees, agents, or subconsultants, shall not without written authorization from the City Manager or unless requested by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, responses to interrogatories, or other information concerning the work performed under this Agreement or relating to any project or property located MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 28 of 173 Agreement No. 23-51
9 within the City. Response to a subpoena or court order shall not be considered “voluntary” provided Consultant gives City notice of such court order or subpoena. (b) Consultant shall promptly notify City should Consultant, its officers, employees, agents or subconsultants be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, requests for admissions, or other discovery request, court order, or subpoena from any person or party regarding this Agreement and the work performed thereunder or with respect to any project or property located within the City. City retains the right, but has no obligation, to represent Consultant and/or be present at any deposition, hearing, or similar proceeding. Consultant agrees to cooperate fully with City and to provide the opportunity to review any response to discovery requests provided by Consultant.

However, City’s right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.
(c) Consultant covenants that neither he/she nor any office or principal of their firm have any interest in, or shall acquire any interest, directly or indirectly, which will conflict in any manner or degree with the performance of their services hereunder.

Consultant further covenants that in the performance of this Agreement, no person having such interest shall be employed by them as an officer, employee, agent or subconsultant. Consultant further covenants that Consultant has not contracted with nor is performing any services, directly or indirectly, with any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) owning property in the City or the study area and further covenants and agrees that Consultant and/or its subconsultants shall provide no service or enter into any agreement or agreements with a/any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) owning property in the City or the study area prior to the completion of the work under this Agreement.

16. NOTICES
Any notices which either party may desire to give to the other party under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by notice:

To City: Mike Diaz, Director of Community Development
City of Montclair
5111 Benito Street
Montclair, CA 91763
To Consultant: Donald Rucker, President
Christian Development Center
5080 Kingsley Street
Montclair, CA 91763
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 29 of 173 Agreement No. 23-51
10 17. ASSIGNMENT
The Consultant shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the City.

Consultant’s responsible employee may use assistants, under his direct supervision, to perform some of the services under this Agreement. Consultant shall provide City fourteen (14) days’ notice prior to the departure of the responsible employee from Consultant’s employ. Should he leave Consultant’s employ, the City shall have the option to immediately terminate this Agreement, within three (3) days of the close of said notice period. Upon termination of this Agreement, Consultant’s sole compensation shall be payment for actual services performed up to, and including, the date of termination or as may be otherwise agreed to in writing between the City Council and the Consultant.

18. LICENSES
At all times during the term of this Agreement, Consultant shall have in full force and effect, all licenses required of it by law for the performance of the services described in this Agreement, including a City of Montclair business license.

19. GOVERNING LAW
The City and Consultant understand and agree that the laws of the State of California shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the municipal, superior, or federal district court with jurisdiction over the City of Montclair.

20. ENTIRE AGREEMENT
This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party’s own independent investigation of any and all facts such party deems material.

21. CONFIDENTIALITY
Information and materials obtained by the Consultant from City during the performance of this Agreement shall be treated as strictly confidential and shall not be used by the Consultant for any purpose other than the performance of this Agreement.

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11 22. DISCRIMINATION
The Consultant agrees that no person shall be excluded from employment in the performance of this Agreement on grounds of race, creed, color, sex, age, marital status, or place of national origin. In this connection, the Consultant agrees to comply with all County, State and Federal laws relating to equal employment opportunity rights.

23. AUTHORITY TO EXECUTE THIS AGREEMENT
The person or persons executing this Agreement on behalf of Consultant warrants and represents that he/she has the authority to execute this Agreement on behalf of the Consultant and has the authority to bind Consultant to the performance of its obligations hereunder.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written.

CITY OF MONTCLAIR CHRISTIAN DEVELOPMENT CENTER
By:

By:

Javier John Dutrey, Mayor Donald Rucker, President
Attest:

By:

Andrea Myrick, City Clerk
Approved as to Form:

By:

Diane E. Robbins, City Attorney
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 31 of 173 Agreement No. 23-51
12 EXHIBIT A

DEFINITIONS
HOMELESS OUTREACH. Proactive exploration and engagement of homeless individuals and/or families either occupying or migrating through various portions of the City.

NAVIGATION OF SERVICES. Exploration and enrollment (of homeless individuals) into various programs and services based on individual needs. Including but not limited to: Drug and Alcohol rehabilitation programs, financial assistance, medical and mental health resources, assistance to social services programs, temporary and permeant housing, and transportation services.

HANDS-ON CASE MANAGEMENT. One-on-one intervention with homeless individuals and/or families, including, but not limited to, navigation of services and development of personalized plans and strategies needed to overcome obstacles, obtain, and sustain long-term housing.

PAROLE/PROBATION INTERVENTION. Interaction with Parole and Probation Officers regarding status of homeless individuals on supervised release programs and assistance in obtaining available housing and participating in rehabilitation programs offered by Parole and Probation Departments (including authorization to place said individuals into programs and facilities that cross county lines).

IN-HOUSE REHABILITATION CENTERS. Facilities that provide “In-Patient” Drug and Alcohol treatment programs necessary to overcome addiction to said substances.

QUALIFYING CRITERIA. Requirements for entering various in-house rehabilitation facilities and/or housing programs.

COURT APPOINTED OBLIGATIONS. Mandated drug and alcohol treatment programs as well as mandated counseling services and/or classes (including, but not limited to, Anger Management, Parenting Classes, Behavior Modification, Domestic Violence, Driving under the Influence, etc.).

MONTCLAIR’S TRAILER PROGRAM. In accordance with the City’s Homeless Outreach and Assistance Program, Metro Honda of Montclair purchases recreational trailers for homeless individuals and/or families in an effort to provide temporary, transitional, and affordable housing.

ADEQUATE SUPPLIES OF FOOD/MISCELLANEOUS ITEMS. Enough food, clothing, and other miscellaneous items needed to sustain individuals and/or families participating in programs or transitioning into temporary/permanent housing for a determined amount of time.

SERVICES PROVIDED
During the term of this Agreement and in accordance with Section 2, CDC shall provide the services described below:

1. Hands-on Case Management services for individuals and/or families experiencing homelessness or at imminent risk of experiencing homelessness. CDC provides a widerange of services and are available 24 Hours a Day/7 Days a Week. Said services include, but are not limited to:
 Accompanies the City’s Special Operations Unit on Homeless Outreach Details a MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 32 of 173 Agreement No. 23-51
13 minimum of two times per week as well as responds to special requests/calls for service from said unit regarding homeless individuals and/or families in need of assistance.  Provides on-site counseling and/or case management services to individuals both willing and reluctant to accept services. Said services include, but are not limited to, comprehensive interviews and information gathering. Outreach and intervention with family members, friends, and social workers if applicable. Navigation of services based on individual needs, including, but not limited to, in and out-patient drug and alcohol programs, medical and/or mental health assessments, domestic violence referrals (including transportation to safe houses), intervention and placement of said individuals through Adult Protective Services, assessment of prescribed and/or needed medications, Parole and Probation intervention, as well as assessment of individuals for financial aid programs and other necessary benefits needed to assist homeless individuals and/or families with breaking their cycle of homelessness.  Completion of all required and/or necessary documentation (including, San Bernardino County’s Exhibit E).
 Transports individuals to various in-house rehabilitation centers and/or housing programs throughout various counties, including, but not limited to, San Bernardino, Riverside, and Los Angeles County.
 Provides transportation to various appointments and facilities including, but not limited to, Doctors appointments, counseling sessions, Parole and Probation offices, Department of Motor Vehicles, Social Service offices, employment agencies, employment interviews, as well as various courthouses and rehabilitation centers for the purpose of fulfilling mandatory and/or court appointed obligations, and other agencies and organizations providing services that assist individuals with integrating back into society.

2. Explores appropriate housing options based on individual needs and economic status. Said housing includes, but is not limited to, family shelter programs, safe houses, room and board facilities, shared housing, assisted living accommodations, long-term care facilities, skilled nursing facilities, sober living homes, rooms for rent, apartment units, as well as mobile homes and recreational trailers used for temporary and permanent housing.

3. In cooperation with Metro Honda of Montclair temporary housing assistance (i.e. purchasing trailers for homeless individuals), Case Managers are responsible for management and maintenance of trailers, including, but not limited to:
 Conducts monthly interior and exterior inspections and/or evaluations of trailers for damages, defects, and signs of deterioration (including, but not limited to, faulty weather protection, dampness of habitable rooms, electrical hazards, plumbing hazards, inadequate sanitation facilities, hazardous mechanical equipment, inoperable and/or hazardous appliances, non-functioning smoke and/or carbon monoxide detectors) as well as cleanliness and proper care of unit and surrounding premises.
 Evaluates necessary repairs.
 Obtains bids for required and/or necessary repairs and improvements needed to trailers.
 Facilitates needed and/or necessary repairs and improvements conducted on trailers.  Facilitates all necessary contracts and agreements with occupants placed in trailers.  Monitors behavior of occupants, including, but not limited to, enforcement of park regulations and/or house rules.
 Provides Case Management services to occupants of said trailers in accordance with guidelines noted above.

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14  Works closely with Metro Honda staff members to purchase additional trailers and other forms of temporary and transitional housing in accordance with City of Montclair’s trailer program with said organization.
 Conducts all administrative transactions to transfer and/or register new trailers.  Searches various locations for proper placement of new trailers.

4. Enters and maintains appropriate and up-to-date information on homeless individuals contacted by the City’s Special Operations Unit into San Bernardino County’s Homeless Management Information System (HMIS)

5. Maintain and disperse adequate supplies of food, clothing, and hygiene items (as well as other miscellaneous items) as needed for homeless individuals and/or families participating in programs or settling into various forms of housing.

6. Provides parenting and life skills classes to homeless individuals and families.

7. Attends and maintains appropriate and up-to-date training on various programs and resources (including, but not limited to, homeless computer programs and databases necessary to track and assist homeless individuals). Temporary and permanent housing programs, rental assistance programs, financial aid programs, mental health and healthcare programs, legal aid programs, Social Security/SSI benefits, food and clothing programs, utility assistance, as well as qualifying criteria and strategies necessary to assist homeless individuals and/or families with securing and sustaining stable living environments and life styles.

8. Attends a variety of monthly meetings as well as incidental and/or on-site meetings and interventions as requested by the City’s Special Operations Unit. Said meetings and/or interventions include, but are not limited to:
 West-End Steering Committee (Monthly Meeting)
 Interagency Council on Homelessness (Monthly Meeting)  Homeless Service Providers (Monthly Meeting)
 West End Behavioral Health (Monthly Meeting)
 Faith-Based Collaborative (Monthly Meeting), as well as  On and off-site meetings and interventions with chronic homeless individuals for purposes of evaluating and/or screening said individuals for appropriate programs.  Meetings with family members, friends and social workers of said individual(s)  On and Off-Site meetings to assists homeless individuals with required interviews and/or screening criteria necessary to enter various in-house rehabilitation centers and/or housing programs.
 Meets and collaborates with various agencies and organizations to determine appropriate placement and/or services for said individuals and families.

9. Maintains records of all supporting documents and submits to the City’s Special Operations Unit on the first day of each month. Documentation includes but is not limited to:
 Individuals served
 Actions taken.
 Services provided.
 Receipts for purchases or transportation provided.

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15 EXHIBIT B
The compensation for the services provided by CDC is set at $5,000 per month not to exceed $60,000 for the term of the agreement. Compensation is to be provided by funds made available by the “Homeless Housing Assistance & Prevention Grant” (HHAP), at $275 per month; and the City of Montclair at $4,725 per month; in accordance with the payment rates and terms and the schedule of payment as set forth herein.

In the event grant funding for said services is lapsed, reduced, terminated, enhanced, extended, decreased, or diminished, the City shall assume the monthly payment, in part or in full, up to the specified monthly amount, until the conclusion of the agreement timeframe set forth in this Agreement.

Payment Schedule
(July 1, 2023 – June 30, 2024)
Month HHAP Amount City Amount
July $275 $4,725
August $275 $4,725
September $275 $4,725
October $275 $4,725
November $275 $4,725
December $275 $4,725
January $275 $4,725
February $275 $4,725
March $275 $4,725
April $275 $4,725
May $275 $4,725
June $275 $4,725
Sub-totals $3,300 $56,700
TOTAL $60,000
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 35 of 173

CITY COUNCIL

AGENDA REPORT
DATE: AUGUST 7, 2023
SECTION: CONSENT - AGREEMENTS
ITEM NO.: 2
FILE I.D.: FLP113
DEPT.: ECONOMIC DEV.

PREPARER: M. FUENTES
SUBJECT: CONSIDER APPROVAL OF AGREEMENT NO. 23–56 WITH REVENUE AND COST

SPECIALISTS, LLC (RCS) TO CONDUCT A DEVELOPMENT IMPACT FEE NEXUS STUDY,

SUBJECT TO ANY REVISIONS DEEMED NECESSARY BY THE CITY ATTORNEY REASON FOR CONSIDERATION: The City Council is requested to consider approval of Agreement No. 23–56 with Revenue and Cost Specialists, LLC (RCS) to conduct a comprehensive development impact fee nexus study and to provide recommendations to the City Council related to development impact fees charged by the City.

A copy of proposed Agreement No. 23–56 is attached for the City Council’s review and consideration.

BACKGROUND: As part of the exercise in reviewing fees charged by the City, staff is recommending that the City of Montclair conduct a comprehensive development impact fee nexus study given the amount of future development that is anticipated to occur as part of the North Montclair Downtown Specific Plan, Montclair Place District Specific Plan, and the yet to be adopted General Plan Update, Arrow Highway Mixed Use District Specific Plan, and Corridors Plan.

What Are Development Impact Fees?
Development Impact Fees (DIF) are one–time fees paid by new developments to fund the cost of providing public infrastructure needed to support that development. This authorization is granted through the Mitigation Fee Act (California Government Code sections 66001 through 66025). The Mitigation Fee Act is premised on the concept that new developments have to mitigate impacts on the public infrastructure system.

A DIF is not a tax or special assessment, but rather a fee directly related to the cost of providing the public infrastructure needed to support that development. The fee amount must be reasonably related to the cost of the public infrastructure provided by the government collecting the fee; otherwise, the fee may be considered a special tax and subject to two–thirds voter approval. Therefore, DIFs may not be levied to pay for existing infrastructure deficiencies unrelated to the impacts of new development.

A jurisdiction must legislatively adopt findings of a reasonable relationship between the purpose of the fee and the impact created by the new development, as well as a proportional relationship between the amount of the fee and the amount of the impact, before enacting a DIF program.

Although local governments began levying impact fees in the 1920s as a way to finance infrastructure, in 1987 the California legislature passed the Mitigation Fee Act to establish the principles governing impact fee exactions and, to some extent, to codify existing constitutional requirements. Government Code Sections 66001–66025 establish legal requirements to implement a DIF program for fees that meet the terms of the Mitigation Fee Act.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 36 of 173 According to the Mitigation Fee Act, to establish a DIF program a jurisdiction must legislatively accept a nexus study that identifies:
 The purpose of any fees;
 How fees will be used;
 A reasonable relationship between the fee–funded public infrastructure and the type of development paying the fee; and
 A proportional relationship between the amount of the fee and the amount of the impact, or demand created by the new development paying the fee.

DIFs are common among cities throughout California and are a well–accepted way to fund public infrastructure such as roads, sewer and water facilities, and public facilities (park buildings, libraries, and fire protection services) to accommodate the new developments.

Request for Quotes for a Development Impact Fee Nexus Study A majority of California cities have DIFS, including the cities of Big Bear Lake, Chino, Colton, Corona, Grand Terrace, Highland, Jurupa Valley, Loma Linda, Murrieta, Ontario, Rialto, Riverside, and San Bernardino. In addition, various counties and joint powers authorities have DIFS, including Riverside County, Riverside County Transportation Department, San Bernardino County, and San Bernardino County Transportation Authority.

Many of the local agencies mentioned above have used the firm Revenue and Cost Specialists, LLC (RCS) for the creation of DIFs and to conduct development impact fee nexus studies. Staff contacted several agencies that have utilized the services of RCS to develop DIF nexus studies and received significant positive feedback regarding the firm and the services that they provided.

As a result, staff requested and obtained a quote from RCS regarding the creation of DIFs and conducting a development impact fee nexus study. RCS provided a quote of $34,500 to conduct a DIF nexus study and provide recommendations based on the study.

The City of Montclair is currently utilizing the services of RCS to conduct a comprehensive costs of service study related to fees charged by the City of Montclair that are not subject to the Mitigation Fee Act (Agreement No. 22–80).

After careful consideration, staff has elected to use the services of RCS based on cost, the firm’s familiarity with the City of Montclair, feedback from various other local government agencies who have utilized the services of RCS, and current services being provided by RCS to the City of Montclair.

Scope of Work
RCS proposes to undertake the calculation and textual support of a new DIF calculation and DIF nexus study. RCS staff will perform the following to complete the DIF calculation and quantify the costs generated by new development in terms of a development impact fee schedule for City of Montclair land uses.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 37 of 173 RCS is proposing the creation of DIFS for the following public infrastructures:
 Law Enforcement Facilities, Vehicles, and Equipment;
 Fire Suppression Facilities, Vehicles, and Equipment;  Traffic Circulation System, including Streets, Signals, and Bridges;  Storm Drainage Collection System;
 Wastewater Collection System and Treatment;
 General Facilities (City Hall and City Maintenance Yard);  Public Use Facilities (Community/Senior Center); and
 Park Land Acquisition, Open Space, and Park Improvements.

To provide the basis for the DIFs, the following steps would be taken by RCS, working with City staff and other consultants where necessary and appropriate:
 Task 1: Preliminary Research;
 Task 2: Series of Working Meetings;
 Task 3: Draft Development Impact Fee Calculation and Nexus Report; and  Task 4: Presentation of Proposed Development Impact Fee Calculation and Nexus Report to the City Council.

RCS will also be available for ongoing consultation and any further analysis of the research data collected.

About Revenue and Cost Specialists, LLC
RCS was founded in 1980 by two former city managers and a finance director who, after the passage of Propositions 13 and 4, discovered that user fees were a legal option to recover lost municipal revenues. RCS’ four principals make up the Limited Liability Company, which has been financially stable since the company started. Combined, RCS principals have over 100 years of experience in cost allocation plans and fee studies and have served over 250 municipalities. RCS has provided these services to a wide array of public agencies, from the smallest special districts to larger and more complex cities and counties.

FISCAL IMPACT: Proposed Agreement No. 23–56 would authorize staff to retain the services of RCS to conduct a development impact fee nexus study and to provide recommendations to the City Council. The costs of services related to proposed Agreement No. 23–56 is estimated to not exceed $44,500, inclusive of a $10,000 contingency. Costs associated with proposed Agreement No. 23–56 would come out of the Economic Development Fund.

RECOMMENDATION: Staff recommends that the City Council approve Agreement No. 23–56 with RCS to conduct a development impact fee nexus study, subject to any revisions deemed necessary by the City Attorney.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 38 of 173 Agreement No. 23-56

CITY OF MONTCLAIR

AGREEMENT FOR CONSULTANT SERVICES
THIS AGREEMENT is made and effective as of August 7, 2023, between the City of Montclair, a California Municipal Corporation ("City") and Revenue & Cost Specialists, LLC, a Limited Liability Company ("Consultant"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

1. TERM
This Agreement shall commence on August 7, 2023 and shall remain and continue in effect until modified by the parties or terminated pursuant to the provisions of this Agreement.

2. SERVICES
The parties intend Consultant to assist the City with conducting a development impact fee study. Consultant shall perform the tasks described and set forth in Exhibit A, attached hereto and incorporated herein as though set forth in full. Consultant shall complete the tasks according to the schedule of performance which is also set forth in Exhibit A.

3. PERFORMANCE
Consultant shall at all times faithfully, competently and to the best of his/her ability, experience and talent, perform all tasks described herein. Consultant shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Consultant hereunder in meeting its obligations under this Agreement.

4. CITY MANAGEMENT
City’s City Manager shall represent City in all matters pertaining to the administration of this Agreement, and the review and approval of all products submitted by Consultant. City’s City Manager shall be authorized to act on City’s behalf and to execute all necessary documents which enlarge the Scope of Services to be Performed or change Consultant’s compensation as provided in Section 5(b) below.

5. PAYMENT
(a) The City agrees to pay Consultant monthly, in accordance with the payment rates and terms and the schedule of payment Schedule of Fees set forth in Exhibit A, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the tasks detailed in Exhibit A.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 39 of 173 Agreement No. 23-56

(b) Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the City Manager. Consultant shall be compensated for any additional services in the amounts and in the manner as agreed to by City Manager and Consultant at the time City's written authorization is given to Consultant for the performance of said services. (c) Consultant will submit invoices monthly for actual services performed. Said invoices shall detail all costs, rates and hours for individual tasks. Invoices shall be submitted on or about the first business day of each month, or as soon thereafter as practical, for services provided in the previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to all non-disputed fees. If the City disputes any of the Consultant’s fees, it shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth on the invoice. (d) Consultant agrees that, in no event shall City be required to pay to Consultant any sum in excess of ninety-five percent (95%) of the maximum payable hereunder prior to receipt by City of all final documents, together with all supplemental technical documents, as described herein acceptable in form and content to City. Final payments shall be made no later than sixty (60) days after presentation of final documents and acceptance thereof by City.

6. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE (a) The City may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon the Consultant at least ten (10) days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise.

If the City suspends or terminates a portion of this Agreement, such suspension or termination shall not make void or invalidate the remainder of this Agreement. Consultant also may terminate this Agreement by serving upon the City at least thirty (10) days prior written notice.
(b) In the event this Agreement is terminated pursuant to this Section, the City shall pay to Consultant on a pro-rata basis the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. Upon termination of the Agreement pursuant to this Section, the Consultant will submit an invoice to the City pursuant to Section 5(c).

7. DEFAULT OF CONSULTANT
(a) The Consultant’s failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any work performed after the date of default and can terminate this Agreement immediately by written notice to the Consultant. If such failure by the Consultant to make progress in the performance of work hereunder arises out of causes MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 40 of 173 Agreement No. 23-56

beyond the Consultant’s control, and without fault or negligence of the Consultant, it shall not be considered a default.
(b) If the City Manager or his/her delegate determines that the Consultant is in default in the performance of any of the terms or conditions of this Agreement, he/she shall cause to be served upon the Consultant a written notice of the default. The Consultant shall have ten (10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event that the Consultant fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement.

8. OWNERSHIP OF DOCUMENTS
(a) Consultant shall maintain complete and accurate records with respect to billed time, sales, costs, expenses, receipts and other such information required by City that relate to the performance of services under this Agreement. Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of City or its designees at reasonable times to such books and records; shall give City the right to examine and audit said books and records; shall permit City to make transcripts therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. (b) Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, claims, applications, computer files, notes, and other documents prepared in the course of providing the services to be performed pursuant to this Agreement shall become the sole property of the City and may be used, reused, or otherwise disposed of by the City without the permission of the Consultant. With respect to computer files, Consultant shall make available to the City, at the Consultant’s office and upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring and printing computer files.

Notwithstanding the above, computer software (including without limitation financial models, compilations of formulas and spreadsheet models), prepared by Consultant are Instruments of Service of Consultant and shall remain the property of Consultant.

Consultant shall likewise retain all common law, statutory and other reserved rights, including the copyright thereto.

9. INDEMNIFICATION
(a) Defense, Indemnity and Hold Harmless. Consultant shall defend, indemnify, and hold harmless the City, its present and former officers, directors, employees, agents, staff, volunteers, mayor, council, boards, committees, and representatives, as broadly interpreted (collectively, the “Indemnified Parties”), of and MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 41 of 173 Agreement No. 23-56

from all claims, suits, demands, obligations, losses, damages, sums, or any other matters threatened or presently asserted, including but not limited to all legal fees, costs of defense and litigation expenses (including legal fees, expert fees and any other costs or fees, including those of adverse parties imposed on or sought against the Indemnified Parties), arising directly or indirectly out of any liability or claim of loss or liability for personal injury, bodily injury to persons, contractual liability, errors or omissions, breach, failure to perform, damage to or loss of property, or any other loss, damage, injury or other claim of any kind or nature arising out of the work to be performed by Consultant herein, caused by or arising out of the negligent acts or omissions, or intentional misconduct of Consultant, including its subcontractors, subconsultants, employees, agents, and other persons or entities performing work for Consultant. (b) Contractual Indemnity. To the fullest extent permitted under California law, Consultant shall contractually indemnify, defend and hold harmless the Indemnified Parties from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses, amounts for good faith settlement, or costs of any kind, including attorney’s fees and costs, court costs, interest, defense costs, and expert witness fees and costs), arising out of or related to, in whole or in part, the performance of this Agreement by Consultant or by any individual or entity for which Consultant is legally liable, including but not limited to Consultant’s officers, agents, representative, employees, independent contractors, subcontractors, subconsultants, or affiliated or related entities and/or its or their employees, agents and representatives, caused by or arising out of all negligent acts or omissions, or intentional misconduct of Consultant, including its subcontractors, subconsultants, employees, agents and other persons or entities performing work for Consultant. Indemnification shall include any claim that Consultant, or Consultant’s employees or agents, are or may be considered and treated as employees of the City or are entitled to any employee benefits from City including but not limited to those available under Public Employees Retirement Law. The obligation to indemnify, defend and hold harmless the Indemnified Parties shall apply to all liability as defined above regardless of whether the Indemnified Parties were or are alleged to have been negligent, except that it shall not apply to claims arising from the sole negligence or willful intentional misconduct of the Indemnified Parties. Consultant’s obligation to defend the Indemnified Parties is not contingent upon there being an acknowledgement of or determination of the merit of any claims, liability, demands, causes of action, suits, losses, expenses, errors, omissions and/or costs.
(c) Subcontractors/Subconsultants and Indemnification. Consultant agrees to and shall obtain executed indemnity agreements in favor of the Indemnified Parties with provisions identical to those set forth from each and every Subcontractor, Sub consultant, or other person or entity involved by, for, with, or on behalf of Consultant in the performance of any aspect of this Agreement. In the event Consultant fails to obtain such indemnity obligations, Consultant shall be fully responsible for each and every Subcontractor, Subconsultant or other person or entity in terms of defense, indemnity and hold harmless obligations in favor of the Indemnified Parties as set forth above. This obligation to indemnify and defend the Indemnified Parties is binding on the successors, assigns, or heirs of Consultant and shall survive the full performance or termination of this Agreement. These indemnification provisions are independent of and shall not in any MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 42 of 173 Agreement No. 23-56

way be limited or superseded by the insurance requirements and insurance-related provisions of this Agreement.
(d) City Lost or Damaged Property – Theft. Consultant further agrees to pay or cause to be paid to the Indemnified Parties’ benefit, any and all damages, fines, penalties, and loss or theft of property of the City arising out of or related in any way to the negligent acts or omissions or intentional misconduct of Consultant or of Consultant’s officers, agents, representatives, employees, independent contractors, subcontractors or affiliated or related entities and/or its or their employees, agents and representatives, whether such actions, omissions to act, negligence or intentional conduct is or was authorized by this Agreement or not. City assumes no responsibility whatsoever for any property placed on the premises of City. Consultant further agrees to waive all rights of subrogation against the Indemnified Parties.
(e) Non-Waiver and Non-Exhaustion of City’s Further Rights and Remedies. No aspect of this provision shall in any way limit or effect the rights of the Indemnified Parties against the Consultant under the terms of this Agreement or otherwise. The indemnification provisions shall apply regardless of whether this Agreement is executed after Consultant begins the work and shall extend to claims arising after this Agreement is performed or terminated, including a dispute as to the termination of Consultant. The indemnity obligations of Consultant shall continue until it is determined by final judgment that the claim against the City and any Indemnified Parties is determined by final judgment and after exhaustion of any rights of appeal. Further, no aspect of this provision shall impact the City’s rights to contribution from Consultant, or for the City to dispute Consultant’s refusal to defend and indemnify City. (f) Limitations on Scope of Indemnity. Notwithstanding the foregoing, Consultant shall not be responsible for indemnification for claims or losses caused by the sole negligence or intentional wrongdoing of Indemnified Parties. Further, the indemnity provided shall be interpreted as broadly as permitted under California law and as to agreements between parties and shall if required be reformed to be consistent with those laws to protect and save this provision for the protection of the Indemnified Parties. (g) The obligations of Consultant under this or any other provision of this Agreement shall not be limited by the provisions of any workers’ compensation act or similar act. The Consultant expressly waives any statutory immunity under such statutes or laws as to the Indemnified Parties. The Consultant’s indemnity obligation set forth in this Section 9 shall not be limited by the limits of any policies of insurance required or provided by the Consultant pursuant to this Agreement.
(h) The Consultant’s covenant under this Section 9 shall survive the expiration or termination of this Agreement.

10. INSURANCE
The City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 43 of 173 Agreement No. 23-56

(a) Types of Required Coverages
Without limiting the indemnity provisions of the Contract, the Consultant shall procure and maintain in full force and effect during the term of the Contract, the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so. (1) Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office “occurrence” form CG 00 01, including products and completed operations, property damage, bodily injury, and personal & advertising injury with limits no less than $2,000,000 per occurrence, and $4,000,000 aggregate total bodily injury, personal injury, and property damage.
(2) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 0001 covering “Any Auto” (Symbol 1), including owned, non-owned and hired autos, or the exact equivalent, with minimum limits of $1,000,000 for bodily injury and property damage, each accident. If Contractor owns no vehicles, auto liability coverage may be provided by means of a non-owned and hired auto endorsement to the general liability policy. Automobile liability insurance and endorsements shall be kept in force at all times during the performance of this Agreement. (3) Workers’ Compensation: Workers’ Compensation Insurance, as required by the State of California and Employer’s Liability Insurance with a limit of not less than $1,000,000 each accident for bodily injury and $1,000,000 each employee for bodily injury by disease. (4) Professional Liability: Professional Liability insurance with limit of not less than $2,000,000 each claim. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusion that may potentially affect the work to be performed.
(b) Endorsements
Insurance policies shall not be in compliance if they include any limiting provision or endorsement. The insurance policies shall contain, or be endorsed to contain, the following provisions:
(1) Commercial General Liability
Additional Insured: The City, its elected officials, officers, employees, volunteers, boards, agents and representatives shall be additional insureds with regard to liability and defense of suits or claims arising out of the work or operations performed by or on behalf of the Consultant including materials, parts or equipment furnished in connection with such work or operations. Coverage for the additional insureds shall apply to the fullest extent permitted by law.

Additional Insured Endorsements shall not:

1. Be limited to “Ongoing Operations”
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 44 of 173 Agreement No. 23-56

2. Exclude “Contractual Liability

3. Restrict coverage to the “Sole” liability of contractor

4. Exclude “Third-Party-Over Actions”

5. Contain any other exclusion contrary to the Agreement Additional Insured Endorsements shall be at least as broad as ISO Forms CG 20 10 11 85; or CG 20 and 10 and CG 2037.

Primary Insurance: This insurance shall be primary and any other insurance, whether primary, excess, umbrella or contingent insurance, including deductible, or self-insurance available to the insureds added by endorsement, shall be in excess of, and shall not contribute with, this insurance. Coverage shall be at least as broad as ISO CG 20 01 04 13. (2) Auto Liability
Additional Insured: The City, its elected officials, officers, employees, volunteers, boards, agents, and representatives shall be additional insureds with regard to liability and defense of suits or claims arising out of the work or operations performed by or on behalf of the Contractor.

Primary Insurance: This insurance shall be primary and any other insurance whether primary, excess, umbrella or contingent insurance, including deductible, or self-insurance available to the insureds added by endorsement shall be in excess of and shall not contribute with this insurance.
(3) Workers’ Compensation
Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the indemnified parties. (c) Notice of Cancellation.

Required insurance policies shall not be cancelled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (d) Waiver of Subrogation
Required insurance coverages shall not prohibit Consultant from waiving the right of subrogation prior to a loss. Consultant shall waive all rights of subrogation against the indemnified parties and policies shall contain or be endorsed to contain such a provision. This provision applies regardless of whether the City has received a waiver of subrogation endorsement from the insurer.
(e) Evidence of Insurance
All policies, endorsements, certificates, and/or binders shall be subject to approval by the City as to form and content. These requirements are subject to amendment or waiver only if so approved in writing by the City. The City reserves the MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 45 of 173 Agreement No. 23-56

right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15) days prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.
(f) Deductible or Self-Insured Retention
Any deductible or self-insured retention must be approved in writing by the City and shall protect the indemnified parties in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention. The City may require the Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the Consultant or the City.
(g) Contractual Liability/Insurance Obligations
The coverage provided shall apply to the obligations assumed by the Consultant under the indemnity provisions of this Agreement. The insurance obligations under this Agreement shall be: (1) all the insurance coverage and/or limits carried by or available to the Consultant; or (2) the minimum insurance coverage requirements and/or limits shown in this Agreement; whichever is greater. Any insurance proceeds in excess of or broader than the minimum required coverage and/or minimum required limits, which are applicable to a given loss, shall be available to the City. No representation is made that the minimum insurance requirements of this Agreement are sufficient to cover the obligations of the Consultant under this Agreement.
(h) Failure to Maintain Coverage
Consultant agrees to suspend and cease all operations hereunder during such period of time as the required insurance coverage is not in effect and evidence of insurance has not been furnished to the City. The City shall have the right to withhold any payment due Consultant until Consultant has fully complied with the insurance provisions of this Contract. In addition, the City may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, City may take out the necessary insurance and pay, at Consultant’s expense, the premium thereon.

In the event that the Consultant’s operations are suspended for failure to maintain required insurance coverage, the Consultant shall not be entitled to an extension of time for completion of the Work because of production lost during suspension. (i) Acceptability of Insurers
Each such policy shall be from a company or companies with a current A.M.

Best’s rating of no less than A:VII and authorized to do business in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 46 of 173 Agreement No. 23-56

provisions of the California Insurance Code or any federal law. Any other rating must be approved in writing in accordance with the City.
(j) Claims Made Policies
If coverage is written on a claims-made basis, the retroactive date on such insurance and all subsequent insurance shall coincide or precede the effective date of the initial Consultant’s Agreement with the City and continuous coverage shall be maintained or an extended reporting period shall be exercised for a period of at least five (5) years from termination or expiration of this Agreement. (k) Insurance for Subcontractors
Consultant shall be responsible for causing Subcontractors/Subconsultants to purchase the same types and limits of insurance in compliance with the terms of this Agreement, including adding the City as an Additional Insured, providing Primary and Non-Contributory coverage and Waiver of Subrogation to the Subcontractors’/Subconsultant’s policies. The Commercial General Liability Additional Insured Endorsement shall be on a form at least as board as CG 20 38 04 13.

11. INDEPENDENT CONTRACTOR
(a) Consultant is and shall at all times remain as to the City a wholly independent contractor. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control and shall not be construed to be employees of City for any purpose, including eligibility under Public Employees Retirement Law. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Consultant or any of Consultant’s officers, employees, or agents, except as set forth in this Agreement.

Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the City.

Consultant shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner. Consultant shall be solely responsible and hold the City harmless for all matters relating to the payment of Consultant’s employees, including compliance with Social Security withholdings and all other regulations governing such matters.
(b) No employee benefits shall be available to Consultant in connection with the performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement City shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder.

12. LEGAL RESPONSIBILITIES
The Consultant shall keep itself informed of State and Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its services pursuant to this Agreement. The Consultant shall at all times observe and comply with all such laws and regulations. The City, and its officers and employees, shall MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 47 of 173 Agreement No. 23-56

not be liable at law or in equity occasioned by failure of the Consultant to comply with this Section.

13. UNDUE INFLUENCE
Consultant declares and warrants that no undue influence or pressure is used against or in concert with any officer or employee of the City of Montclair in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of the City of Montclair will receive compensation, directly or indirectly, from Consultant, or from any officer, employee or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement.

Violation of this Section shall be a material breach of this Agreement entitling the City to any and all remedies at law or in equity.

14. NO BENEFIT TO ARISE TO LOCAL EMPLOYEES
No member, officer, or employee of City, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the Project during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for work to be performed in connection with the project performed under this Agreement.

15. RELEASE OF INFORMATION/CONFLICTS OF INTEREST
(a) All information gained by Consultant in performance of this Agreement shall be considered confidential and shall not be released by Consultant without City’s prior written authorization. Consultant, its officers, employees, agents, or subconsultants, shall not without written authorization from the City Manager or unless requested by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, responses to interrogatories, or other information concerning the work performed under this Agreement or relating to any project or property located within the City. Response to a subpoena or court order shall not be considered "voluntary" provided Consultant gives City notice of such court order or subpoena.
(b) Consultant shall promptly notify City should Consultant, its officers, employees, agents or subconsultants be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, requests for admissions, or other discovery request, court order, or subpoena from any person or party regarding this Agreement and the work performed thereunder or with respect to any project or property located within the City. City retains the right, but has no obligation, to represent Consultant and/or be present at any deposition, hearing, or similar proceeding.

Consultant agrees to cooperate fully with City and to provide the opportunity to review any response to discovery requests provided by Consultant. However, City’s right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 48 of 173 Agreement No. 23-56

(c) Consultant shall comply with all applicable federal, state and local Conflict of Interest laws, including the Political Reform Act (California Government Code, Section 81000, et. seq.) and California Government Code, Section 1090, et. seq. Consultant covenants that neither he/she nor any officer or principal of their firm have any interest in, or shall acquire any interest, directly or indirectly, which will conflict in any manner or degree with the performance of their services hereunder. Consultant further covenants that in the performance of this Agreement, no person having such interest shall be employed by them as an officer, employee, agent or subconsultant. Consultant further covenants that Consultant has not contracted with nor is performing any services, directly or indirectly, with any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) owning property in the City or the study area and further covenants and agrees that Consultant and/or its subconsultants shall provide no service or enter into any agreement or agreements with a/any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) owning property in the City or the study area prior to the completion of the work under this Agreement. Further, Consultant covenants not to give or receive any compensation, monetary or otherwise, to or from the ultimate vendor(s) of services to the City as a result of the performance of this Agreement, or the services that may be procured by the City as a result of the recommendations made by the Consultant. The Consultant’s covenant under this Section shall survive the termination of this Agreement.

16. NOTICES
Any notices which either party may desire to give to the other party under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by notice:

To City: Mikey Fuentes, Dir. of Economic Development
City of Montclair
5111 Benito Street
Montclair, CA 91763
To Consultant: Eric S Johnson, President
Revenue & Cost Specialists, LLC
1519 East Chapman, Suite C
Fullerton, CA 92831

17. ASSIGNMENT AND SUBCONTRACTING
The Consultant shall not assign any of its rights or delegate any of its duties under this Agreement, either in whole or in part, nor any monies due hereunder, without prior written consent of the City. The City’s consent to an assignment of rights under this Agreement shall not release the Consultant from any of its obligations or alter any of its obligations to be performed under this Agreement. Any attempt at assignment or delegation by the Consultant in violation of this Section 17 shall be void and of no legal MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 49 of 173 Agreement No. 23-56

effect and shall constitute grounds to terminate this Agreement for cause. The Consultant shall not subcontract any performance required under this Agreement without the City’s prior written consent.

18. LICENSES
At all times during the term of this Agreement, Consultant shall have in full force and effect, all licenses required of it by law for the performance of the services described in this Agreement, including a City of Montclair business license.

19. GOVERNING LAW
The City and Consultant understand and agree that the laws of the State of California shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the municipal, superior, or federal district court with jurisdiction over the City of Montclair.

20. ENTIRE AGREEMENT
This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party’s own independent investigation of any and all facts such party deems material.

21. PRIORITY OF AGREEMENT
To the extent any provision of Consultant’s Proposal attached hereto as Exhibit “A” conflicts with the terms and provisions of this Agreement, the terms and provisions of this Agreement shall control and shall take precedence over those contained in Consultant’s Proposal.

22. CONFIDENTIALITY
Information and materials obtained by the Consultant from City during the performance of this Agreement shall be treated as strictly confidential and shall not be used by the Consultant for any purpose other than the performance of this Agreement.

Consultant’s covenant under this Section shall survive the expiration or termination of this Agreement.

23. DISCRIMINATION
The Consultant agrees that no person shall be excluded from employment in the performance of this Agreement on grounds of race, creed, color, sex, age, marital status, or place of national origin. In this connection, the Consultant agrees to comply with all County, State and Federal laws relating to equal employment opportunity rights.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 50 of 173 Agreement No. 23-56

24. EFFECT OF PARTIAL INVALIDITY
If any term or provision of this Agreement shall be held invalid or unenforceable, the remainder of this Agreement and any application of the terms shall remain valid and enforceable under this Agreement or California law.

25. CLAIMS AGAINST CITY
Consultant must comply with the claim procedures set forth in Government Code sections 900, et. seq., and/or Montclair Municipal Code, Chapter 1.16, as applicable, prior to filing any lawsuit against the City. Such claims and any subsequent lawsuit based upon the claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by Consultant. If no such claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Consultant shall be barred from bringing and maintaining a valid lawsuit against the City.

26. AUTHORITY TO EXECUTE THIS AGREEMENT
The person or persons executing this Agreement on behalf of Consultant warrants and represents that he/she has the authority to execute this Agreement on behalf of the Consultant and has the authority to bind Consultant to the performance of its obligations hereunder.

27. NO THIRD PARTY BENEFICIARIES
This Agreement is made solely for the benefit of the Parties to this Agreement and their respective successors and assigns, and no other person or entity may have or acquire a right by virtue of this Agreement.

28. COST OF LITIGATION
If any legal action is necessary to enforce any provision of this Agreement or for damages by reason of an alleged breach of any provisions of this Agreement (whether in contract, tort or both), the prevailing Party shall be entitled to receive from the losing Party all attorneys’ fees, costs and expenses in such amount as the courts may determine to be reasonable. In awarding the cost of litigation, the court shall not be bound by any court fee schedule, but shall, if it is in the interest of justice to do so, award the full amount of costs, expenses and attorneys’ fees paid or incurred in good faith.

29. COUNTERPARTS
This Agreement may be executed in any number of counterparts, each of which shall be deemed to be the original, and all of which together shall constitute one and the same instrument.
[Signatures on Following Page]
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 51 of 173 Agreement No. 23-56

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written.

CITY CONSULTANT
By: By:

Javier John Dutrey, Mayor Eric S. Johnson President
Attest:

By:

Andrea M. Myrick, City Clerk
Approved as to Form:

By:

Diane E. Robbins, City Attorney
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 52 of 173 Proposal for the City of Montclair, CA

––
Proposal for the City of Montclair
Development Impact Fee Study
1519 E Chapman Ave
Suite C
Fullerton, CA 92831
(714) 992-9020
www.revenuecost.com
Exhibit A
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 53 of 173 Proposal for the City of Montclair, CA

TABLE OF CONTENTS July 14, 2023
Table of Contents......................................................................................................................................................... 2 Transmittal Letter...................................................................................................................................................... 3 Organization Qualifications................................................................................................................................. 5 Project Manager.......................................................................................................................................................... 7 Scope of Work............................................................................................................................................................. 11 Project Schedule ....................................................................................................................................................... 14 References.................................................................................................................................................................... 15 Proposed Budget...................................................................................................................................................... 19 –
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 54 of 173 Proposal for the City of Montclair, CA

July 14, 2023
City of Montclair
Attn: Mikey Fuentes, Director of Economic Development
5111 Benito St
Montclair, CA 91763
Proposal for City of Montclair – Development Impact Fee Study Revenue & Cost Specialists, LLC (RCS) appreciates the opportunity to provide you with this Development Impact Fee Study proposal. RCS has provided such studies and other feecosting services since 1980, making us the first and foremost authority in costing services for California. Our combined 100 years of experience and knowledge in this industry will ensure a successful project that’s on time and under budget.

Our impact fee study process is straightforward, imposes minimal impact on staff, and provides proper information, allowing staff, City Council, and other stakeholders to make the best policy decisions for Montclair. We strive to ensure confidence in the information and recommendations of the final Report.

The results of our study will allow the City to identify and recover, with certainty, the maximum financial impact from future development. The terms of this proposal will be honored for 90 calendar days from the date of submission. Please contact Scott at (714) 992- 9026 or [email protected] with any questions.

Sincerely,

GREGORY BROWN SCOTT THORPE
Vice President Principal
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 55 of 173 Proposal for the City of Montclair, CA

RCS Contacts
Revenue & Cost Specialists
1519 E Chapman Ave, Ste C
Fullerton, CA 92831
www.revenuecost.com
Scott Thorpe
Principal
714-992-9026
[email protected]
Gregory Brown
Vice President
714-992-9022
[email protected]
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 56 of 173 Proposal for the City of Montclair, CA

ORGANIZATION QUALIFICATIONS

ABOUT RCS
RCS (Taxpayer ID No. 330787781) was founded in 1980 by
two former City Managers and a Finance Director who, after the passage of Propositions 13 and 4, discovered that user fees were a legal option to recover lost municipal revenues.

Forty-two years later, Revenue & Cost Specialists continues its focus on cost allocation and user fee calculation services.

After the passage of AB 1600 in 1988, our company added impact fee calculation services to help municipalities finance public facility expansion.

In 2000, RCS created Government Software Systems to develop robust costing software that serves fee calculation needs better than spreadsheets. Our company has provided additional services to municipalities, including long-range financial planning, accounting procedures, and utility rate studies.

To this day, RCS continues to thrive through repeat business, referrals, and references. As a small business, RCS takes only a handful of new clients each year, allowing us to dedicate the appropriate number of resources to them. What’s unique about RCS is the work longevity of our team members. Client cities from 20 years ago still call and speak with the RCS Partner about their project back then.

For 2023, RCS is celebrating our 43rd year in business and looking forward to another 40- plus years of partnering with municipalities.

QUALIFICATIONS
RCS’s five principals comprise the Limited Liability Company. RCS principals have over 100 years of combined experience in cost allocation plans and fee studies and served over 250 municipalities. We have provided these services to a wide array of public agencies, from the smallest special district to larger and more complex cities and counties. While based in Orange County, we engage in projects throughout the State of California.

RCS principals are municipal cost and revenue consultants specializing in the following:
• User Fee Studies
• Cost Allocation Plans
• Development Impact Fee Studies
• Special studies and reports supporting municipal financing management MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 57 of 173 Proposal for the City of Montclair, CA

These specializations allow RCS to focus on every aspect of municipal fees and be the best at what we do. We are confident in our project time estimates and do not respond to RFPs when the project workload exceeds our capacity. We have suggested new fees that are not common practice throughout the state and have challenged and removed municipal fees that were not defensible. We have assisted municipalities in streamlining their fee-based processes.

All RCS principals are knowledgeable in fund accounting, department structures, and municipal services. We stay current on pending financial and legal issues that challenge municipalities. All principals are comfortable speaking with city staff at all levels, drafting reports and resolutions, and presenting to the public, stakeholders, and City Council members.

RCS principals perform all studies in a professional and expedient manner and do not rely on junior staff to perform these vital tasks with our clients. We also don’t rely on status memos because we will often be at City Hall to tell you how the project is going in person.

Rick Kermer, a Partner, was one of the founders of RCS. Rick used his CPA and audit experience to build cost allocation, user fee spreadsheets, and software that passes rigorous analysis and reporting accounting standards. Rick’s work is the foundation of all the fee study work offered today. He is now semi-retired, taking only a handful of projects each year.

Eric Johnson, the President, has streamlined and perfected the process of CAP and User Fee Study engagements. With over 30 years and hundreds of completed studies, Eric has created a superior process that demands little city staff time while obtaining maximum results. Eric quickly understands complex city services and how to calculate fees for them. He relates well with elected officials because he responds with candor and brevity. If you speak to any of Eric’s prior or current clients, they will tell you how easy the process was.

Scott Thorpe, a Principal, joined RCS in 1985. Before that, he spent 13 years in the cities of Chula Vista, Covina, Anaheim, and Brea, serving in various roles within the city manager’s offices. Scott performed user fee studies for several years, transitioning to development impact fees when AB 1600 was enacted. He has written articles laying out the fundamentals of impact fees, and his work has generated tens of millions in fee revenues for cities.

Chu Thai, Vice President, joined RCS after 22 years of municipal experience. As a budget manager and finance director, Chu has successfully coordinated user fee increases, impact fee increases, utility rate increases, and tax ballot measures. His experience helps clients avoid the unseen perils that jeopardize municipal projects. After project completion, Chu leaves behind well-documented reports and spreadsheets for City staff. His career has focused on improving cities’ financial stability and implementing operational effectiveness and efficiencies in local government.

Gregory Brown, a Vice President, is the newest team member of RCS. However, he has already performed development impact fee studies for a dozen different cities and districts.

Gregory spent 20 years working in small business before joining the RCS team. He was MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 58 of 173 Proposal for the City of Montclair, CA

trained by Scott Thorpe in development impact fee and applies the same methodology Scott Thorpe developed over 35 years while also incorporating his experience in managing small businesses with a focus on efficiency.

RCS PROJECT MANAGER FOR MONTCLAIR
Scott Thorpe, Principal, and Greg Brown, Vice President, will work together on the Development Impact Fee Study.

RCS may assign additional specialists to the project to help maintain the proposed schedule and ensure product quality. We thoroughly understand and will be involved in every phase of the impact fee study, advising City staff when necessary. Resumes for the RCS project team are included in this proposal on the following pages.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 59 of 173 Proposal for the City of Montclair, CA

EDUCATION
Bachelor of Arts in Public
Administration – San Diego
State University
Master of Public
Administration - California
State University Fullerton

AFFILIATIONS
California Society of
Municipal Finance Officers
Government Finance Officers
Association
Scott Ian Thorpe
Principal
Mr. Thorpe has been with RCS since 1985 and built his career and reputation on the proper establishment of development impact fees. His early publications helped shape the
foundation of calculating and implementing impact fees. Scott has produced studies for projects ranging from small, singleuse developments to large, master-planned communities throughout California. He is actively involved in all aspects of the projects, from kick-off, through Council adoption and beyond fee collection and reporting.

Municipal Experience
City of Brea – Management & Budget Manager
Developed budget preparation and management information reporting systems. Established personal computer
operations, including acquisition, placement, and
maintenance of all equipment to initial and ongoing employee training. Created a comprehensive legislative program for reviewing all federal, state and local legislation.

City of Anaheim – Budget Analyst/Management
Operations Auditor
Assisted in the preparation of a $350,000,000 annual budget.

Provided centralized management support and assistance of line departments with a variety of services including work measurement and management techniques program
development, productivity improvement, internal
management audits, budget review/analysis, revenue
forecasting and auditing, and data processing systems
development. Specialized in management assistance to public safety, stadium, convention center and golf operations.

Responsible for fiscal, work-unit measurement and
management training sessions required of all city
management staff.

City of Covina – Administrative Assistant to the City
Manager
Performed general program development with significant
emphasis on the improvement of the budget process,
legislative, public information, and agenda process systems.

Conducted a major annexation study and effort.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 60 of 173 Proposal for the City of Montclair, CA

Scott Ian Thorpe
Principal
Municipal Experience
(continued)
City of Chula Vista – Administrative Aide
Entry level job which involved completion of a City-wide Policy and Procedure Manual, operation reviews of long-term fire vehicle equipment purchases and of the municipal bus system stop locations.

Publications
"Financing Capital Improvements", Journal American Water Works Association, August, 1991, pages 50-52
"Impact Fees: Practical Guide for Calculation and
Implementation", Journal of Urban Planning and
Development, Vol. 18, No. 3, September, 1992, pages 106- 118
“The Missing Ingredient in State-Mandated General Plans”, Public Management, International City Management
Association”, March 2014. Pages 21-22.

Other Accomplishments
Charter Oak Unified School District Facility Closure
Committee-Board Appointee
Guest Lecturer on various municipal
government/management topics at two universities
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 61 of 173 Proposal for the City of Montclair, CA

EDUCATION
Bachelor of Arts in History –
Cal Poly Pomona
Gregory Ross Brown
Vice President
Professional Experience
Revenue & Cost Specialists – Vice President
(2022- Present) Assisting in meetings, gathering data,
building fee structures, analyzing, and writing reports.

Revenue & Cost Specialists – Associate
(2020 – 2022) Assist in working meetings, data gathering, analysis, and input. Write and/or edit text for completed Development Impact Fee cost calculations.

Simple Health Acupuncture and Wellness Center Inc.

Long Beach, CA – Clinic Director
(2012 – 2022) Oversaw all operations of a continuing
multiple-modality health clinic involving seventeen
employees.

Project Experience
Development Impact Fees
Apple Valley Fire Protection District, CA
City of Highland, CA
City of Shafter, CA (In Progress)
City of Gardena, CA (In Progress)
City of West Covina, CA (In Progress)
City of Hercules, CA (In Progress)
City of Corning, CA (In Progress)
City of El Segundo, CA
City of Farmersville, CA
City of Livingston, CA
City of Loma Linda, CA
City of Morro Bay, CA
City of Hawthorne, CA (In Progress)
Cost of Services Studies
City of Hawthorne, CA
City of Laguna Beach, CA
City of Santa Maria, CA
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 62 of 173 Proposal for the City of Montclair, CA

SCOPE OF WORK

DEVELOPMENT IMPACT FEE
To make certain the City of Montclair continues to provide basic municipal services as the City grows, RCS proposes to undertake the calculation and textual support of a new Development Impact Fee Calculation and Nexus Report. RCS staff will perform the following to complete the Development Impact Fee (DIF) calculation and quantify the costs generated by new development in terms of an Impact Fee Schedule for city land uses.

Based on our preliminary review of the reports and documentation available by the City, we propose development impact fees for the following infrastructures.

1. Law Enforcement Facilities, Vehicles, and Equipment

2. Fire Suppression Facilities, Vehicles, and Equipment

3. Traffic Circulation System, including Streets, Signals, and Bridges

4. Storm Drainage Collection System

5. Wastewater Collection System and Treatment

6. General Facilities (City Hall and City Maintenance Yard)

7. Public Use Facilities (Community/Senior Center)

8. Park Land Acquisition, Open Space and Park Improvements RCS has the experience and determination to research and identify the maximum financial impact of future developments in Montclair. With this information, staff can realize the city's best funding and implementation policies.

We plan to use a series of direct, focused meetings between RCS experts and knowledgeable City staff to produce an accurate, logical, and defensible final product. RCS' objective is to ensure that City staff feels confident about the data and the report, therefore, confident in supporting the results at public hearings.

The fee recommendations included in RCS' final Development Impact Fee Calculation and Nexus Report will be legally defensible, easy to understand, and supported by City staff. Our years of experience in impact fees and working with local government finance officers ensures this project will be completed successfully and on time.

To provide the basis for the Development Impact Fees, the following steps would be taken by the Revenue & Cost Specialist staff, working with City staff and other consultants where necessary and appropriate:

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 63 of 173 Proposal for the City of Montclair, CA

Task 1: Preliminary Research
Prior to any meetings, RCS will perform a field "windshield" survey to become acquainted with the physical characteristics and general improvement needs and standards of the City. We will request and review all City maps, land-use documents, and available master plans, especially the Comprehensive General Plan, before the kick-off meeting. We will review the City's history of impact fee schedules, resolutions, ordinances, and Annual and Five-Year Reports per Government Code Sections 66006 and 66001. RCS will review recent Operating Budgets, CIP Budgets, Comprehensive Annual Financial Reports, and fixed asset reports.

RCS will meet and discuss the City’s planning, capital financing process, and community development standards with the City Engineer, City Planner, and other executive staff to determine the improvements that most likely will evolve from the project planning documents and be needed to support and give validity to the City's Comprehensive General Plan.

Task 2: Series of Working Meetings
RCS will meet with City staff responsible for each infrastructure to help identify all projects needed through theoretical build-out via the use of master plans, specific plans, and other service requirement studies. The more supporting documents we can find, the better the Study will be. The greatest support would be an engineerprepared Master Plan. RCS will endeavor to increase the validity of available information if such a document is unavailable. RCS will request from the City all reports, master plans, specific plans, and other related reports identifying needed infrastructure. If needed, RCS can assist the City with developing project lists and supporting data. RCS will review project cost estimates and textual explanations for accuracy and completeness.

RCS will identify and analyze the demand drivers specific to each infrastructure or service area. The drivers are the factors of nexus demand related to each land use and would be based on the project plans or City productivity records. These demand drivers will help determine the distribution of the benefits of nexus for, and impact of each group of projects on each of the above categories of land use. The proportional analysis is necessary to identify what burdens would be placed upon the existing and future infrastructure would be undertaken.

Task 3: Draft Development Impact Fee Calculation and Nexus Report Since the Report is based on information and estimates provided by City staff, it is important that all participants are comfortable with the methodology and data presented. RCS will prepare a draft report consisting of the fee structures and the necessary relevant nexus text and report with recommended fees. This meeting will include discussions on policy issues, implementation strategies, and revenue MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 64 of 173 Proposal for the City of Montclair, CA

collection procedures. RCS will provide the draft report for staff consideration and distribution.

Task 4: Presentation of Proposed Development Impact Fee Calculation and Nexus Report to the City Council
RCS will attend the City Council meeting to discuss the report methodology and present findings, provide a formal presentation, and answer questions about those findings. RCS will have the necessary supporting documentation for the meeting and will be the primary contact to answer all questions, following up with any City Council direction with the assistance of City staff.

CLIENT INPUT
RCS will make every effort to advise, seek input from and, in general, explain the work as it is being performed. We depend on dedicated and engaged staff participation for a project to be completed successfully. Most of the staff participation is to attend working meetings with RCS.

The City should also designate a Project Coordinator for the fee study who will:
1) Identify key City staff and coordinate the kick-off meeting(s) 2) Assist in obtaining the requested information
3) Coordinate the review of draft reports, and
4) Provide project direction if needed

ONSITE MEETINGS AND VIDEO CONFERENCING MEETINGS
For the project kick-off and working meetings on the same day, the City may choose to have RCS onsite or conduct the meetings through a video conferencing account.

All working meetings will be through our Zoom account or a video conferencing software of the City’s choice. Our experience has determined that video conferencing is more flexible in scheduling meetings, lets City staff quickly access reports and files on their computers, and allows everyone to view and discuss the same documents at the same time.

RCS plans to participate in the City Council meetings onsite at the City of Montclair.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 65 of 173 Proposal for the City of Montclair, CA

PROJECT SCHEDULE
RCS’ references will attest that our timelines are ideal for impact fee studies. This schedule, of course, will require the cooperative participation of City staff. We will be having meetings with staff every two to three weeks and provide them with updates. Department meetings will be 30 minutes to two hours each.

RCS will comply with local, county, and state protocols for safely conducting meetings as the COVID-19 pandemic evolves.

Development Impact Fee Study Aug
2023
Sep
2023
Oct
2023
Nov
2023
Dec
2023
Jan
2024
Land-use Database Compilation
Determine Infrastructure LOS
Discuss Desired Projects w. Staff
Review Project Costs & Descriptions
Review Demand Drivers (Nexus)
Apply Nexus Distribution Factors
Review Draft DIF Report with Staff
Prepare Final DIF Report
Present DIF Study to Council
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 66 of 173 Proposal for the City of Montclair, CA

REFERENCES
REFERENCES – DEVELOPMENT IMPACT FEE STUDY
We have recently completed similar Development Impact Fee Calculation and Nexus Report projects for the following jurisdictions. We encourage you to contact any RCS client regarding our understanding of the nature of municipalities and working relationship with city staff. Copies of recent impact fee reports can be provided upon your request.

Jurisdiction Reference Contact
City of Loma Linda
(909) 799-2800
Jarb Thaipejr, City Manager
Lorena Matarrita, Community Development, Senior Planner Completed an update to a prior RCS-conducted DIF Report and Master Facilities Plan. RCS’ Nexus Report update will raise approximately $333 million in Development Impact Fees for the City.

City of El Segundo
(909) 334-3414 Nick Liguori, Director of Finance
Completed the City’s DIF Calculation and Nexus Report in 2022. RCS’ Nexus Report will raise approximately $300 million in Development Impact Fees for the City.

City of Farmersville
(559) 747-0458 Steve Huntley, Director of Finance & Administration RCS was selected in September 2020 to update the City’s Cost Allocation Plan, User Fees, and Impact Fees.

City of Ontario
(909) 395-2000 Derrick Womble, Administrative Officer
Ontario is also a long-term RCS client, with RCS conducting its first full-infrastructure DIF Nexus Report and two major updates. The City DIF Calculation and Nexus Report supports the doubling of the size and population of the City within the Ontario Ranch Specific Plan area boosting the City’s housing by 59,000 dwelling units (150% increase) and its business square feet by 100,000,000 (71% increase).

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 67 of 173 Proposal for the City of Montclair, CA

CLIENTS SERVED

USER FEE STUDY/COST

ALLOCATION PLAN
Carpentaria-Summerland Fire
District
Chino Valley Independent Fire
District
City of Alhambra
City of Antioch
City of Arcadia
City of Atascadero
City of Azusa
City of Banning
City of Barstow
City of Bend, OR
City of Beverly Hills
City of Big Bear Lake
City of Brea
City of Buena Park
City of Carlsbad
City of Carmel-by-the-Sea
City of Carpentaria
City of Carson
City of Ceres
City of Chino
City of Claremont
City of Coachella
City of Concord
City of Corona
City of Cotati
City of Cudahy
City of Desert Hot Springs
City of Diamond Bar
City of Dinuba
City of Dublin, Ohio
City of El Cajon
City of El Segundo
City of Elk Grove
City of Eureka
City of Folsom
City of Fontana
City of Foster City
City of Fountain Valley
City of Fullerton
City of Glendale
City of Glendora
City of Goodyear, Arizona
City of Hemet
City of Hermosa Beach
City of Hesperia
City of Highland
City of Huntington Beach
City of Kennewick, WA
City of La Canada-Flintridge
City of La Habra Heights
City of La Mirada

USER FEE STUDY/COST
ALLOCATION PLAN (continued)
City of La Palma
City of La Puente
City of Lake Elsinore
City of Lake Forest
City of Lakewood
City of Lancaster
City of Lathrop
City of Lawndale
City of Lemoore
City of Lincoln
City of Lindsay
City of Loma Linda
City of Long Beach
City of Los Altos
City of Lynwood
City of Mammoth Lakes
City of Manhattan Beach
City of Marina
City of Menifee
City of Merced
City of Milpitas
City of Monrovia
City of Monterey
City of Moreno Valley
City of Morgan Hill
City of Morro Bay
City of Needles
City of Norwalk
City of Oakdale
City of Oceanside
City of Ontario
City of Oroville
City of Oxnard
City of Palm Desert
City of Palm Springs
City of Palmdale
City of Pasadena
City of Peoria, AZ
City of Pico Rivera
City of Pismo Beach
City of Pittsburg
City of Pomona
City of Port Hueneme
City of Porterville
City of Rancho Cucamonga
City of Rancho Palos Verdes
City of Red Bluff
City of Redlands
City of Rialto
City of Richmond
City of Ridgecrest
City of Riverside

USER FEE STUDY/COST
ALLOCATION PLAN (continued)
City of Rocklin
City of Salinas
City of San Clemente
City of San Gabriel
City of San Juan Capistrano
City of San Marino
City of San Rafael
City of Sanger
City of Santa Clarita
City of Santa Monica
City of Santa Paula
City of Scotts Valley
City of Seal Beach
City of Seaside
City of Selma
City of Shafter
City of Sierra Madre
City of Simi Valley
City of Solana Beach
City of South Gate
City of South Lake Tahoe
City of South Pasadena
City of Springville, UT
City of Stockton
City of Suisun City
City of Taft
City of Thousand Oaks
City of Tracy
City of Tulare
City of Turlock
City of Upland
City of Villa Park
City of Vista
City of West Covina
City of West Jordan, UT
City of Westminster
City of Yuba City
City or Rancho Mirage
Coachella Valley Assoc of Gov’t
Contra Costa County
County of Cobb, GA
County of Contra Costa
County of San Bernardino
County of Tulare
Imperial County
Oceanside Harbor District
Orange County Fire Authority
Orange County Vector Control
District
Placer County Water Agency
Riverside County Transport.

Comm.

San Bernardino Assoc. Gov’t
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 68 of 173 Proposal for the City of Montclair, CA

USER FEE STUDY/COST
ALLOCATION PLAN (continued)
South Jordan City, UT
Town of Apple Valley
Town of Los Gatos
Town of Mammoth Lakes
Town of Truckee
Ventura County Fire District

IMPACT FEE STUDY
Antelope Valley Fire District
Apple Valley Fire District
Barstow Fire District
Bridgeport Fire District
Brigham City Corporation, UT
Carpentaria-Summerland Fire
District
Chalfant Public Services (Fire)
Protection District
City of Alhambra
City of Anaheim
City of Atascadero
City of Baldwin Park
City of Barstow
City of Big Bear Lake
City of Calimesa
City of Chino
City of Coachella
City of Colton
City of Corona
City of Desert Hot Springs
City of Folsom
City of Gilroy
City of Glendale
City of Gonzales
City of Grand Terrace
City of Greenfield
City of Hemet
City of Highland
City of Huntington Beach
City of Jurupa Valley
City of King City
City of Laguna Hills
City of Lemoore
City of Loma Linda
City of Menifee
City of Monterey Park
City of Morgan Hill
City of Murrieta
City of Needles
City of Newport Beach
City of North Ogden, UT
City of Oceanside
City of Ontario
City of Orange
City of Oroville
City of Paso Robles
City of Petaluma
City of Pismo Beach
IMPACT FEE STUDY (continued)
City of Rancho Cordova
City of Reedley
City of Rialto
City of Riverside
City of San Bernardino
City of Santa Paula
City of Scotts Valley
City of Sedona, AZ
City of Selma
City of Sierra Madre
City of Thousand Oaks
City of Tracy
City of Tulare
City of Wheatland
City of Whittier
County of Monterey Sheriff’s
Department
County of San Bernardino
Feather River Recreation and
Park District
June Lake Fire District
Lake Havasu City, AZ
Long Valley Fire District
North Central Fire District
SANBAG
South Jordan City, UT
South Ogden City, UT
Town of Apple Valley
Town of Mammoth Lakes
Town of Paradise
Town of Truckee
Washington Terrace City, UT
West Jordan City, UT
Wheeler Crest Fire District

ACCOUNTING PROCEDURES
City of Buena Park
City of Compton
City of La Habra
City of La Palma
City of Morgan Hill
City of Palmdale
Commerce Redevelopment City
South Gate Housing Authority

ASSISTANCE TO CITY
ATTORNEYS (confidential)
Cohen and Berliner – Litigation
Assistance
Rutan and Tucker – Litigation
Assistance
San Diego City – Building & Safety
Fee Litigation Assistance
San Diego County Counsel – DIF
Use Litigation Assistance

CASH MANAGEMENT
City of Buena Park
City of Commerce
City of Compton
City of Palmdale
La Mirada Civic Theater

DATA PROCESSING
City of La Palma
City of Palmdale
City of San Clemente
City of South Gate
City of Villa Park
Ontario-Montclair School District

LONG RANGE FINANCIAL PLAN
City of Chino
City of Cudahy
City of Hesperia
City of Lake Elsinore
City of South Gate
City of Turlock

MASTER FACILITIES
PLANS/CIPs
Apple Valley Fire District
Barstow Fire District
Bridgeport Fire District
Brigham City Corporation, UT
Carpentaria-Summerland Fire
District
Chalfant Public Services (Fire)
Protection District
City of Anaheim
City of Atascadero
City of Barstow
City of Big Bear Lake
City of Calimesa
City of Carpentaria
City of Chino
City of Corona
City of Desert Hot Springs
City of Folsom
City of Gonzales
City of Grand Terrace
City of Greenfield
City of Highland
City of Huntington Beach
City of Jurupa valley
City of King City
City of Lancaster
City of Loma Linda
City of Menifee
City of Murrieta
City of Needles
City of Newport Beach
City of Norco
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 69 of 173 Proposal for the City of Montclair, CA

MASTER FACILITIES
PLANS/CIPs (continued)
City of Ontario
City of Orange
City of Oroville
City of Paso Robles
City of Rancho Cordova
City of Riverside
City of San Bernardino
City of Santa Paula
City of Sedona, AZ
City of Selma
City of Tracy
City of Wheatland
City of Whittier
June Lake Fire District
Lake Havasu City, AZ
Long Valley Fire District
North Central Fire District
North Ogden City, UT
South Jordan City, UT
South Ogden City, UT
Town of Apple Valley
Town of Mammoth Lakes
Town of Paradise
Town of Truckee
Wheeler Crest Fire District

ORGANIZATIONAL AND

MANAGEMENT
City of La Mirada
City of South Gate
City of Vista
Ontario-Montclair School District

UTILITY RATE STUDY
City of Brea
City of Chino
City of El Segundo

MISCELLANEOUS PROJECTS
Brigham City Corporation, UT –
Closed Indian School Use
Conversion
City of Azusa – Plan
Check/Inspection Process
Review
City of Beverly Hills – Rent
Stabilization Fee
City of Colton – Electric Utilities
Collection Procedural Manual
City of Corona – Communications
Repeater Cost Financing
City of Corona – Interstate 15
Area Public Safety Facility
Financing
City of Fontana – General &
Departmental Overhead Plan
City of Garden Grove - Internal
Service Fund Balance Study
City of Hemet – Supplemental DIF,
Public Peril Report
City of Los Altos – Existing DIF
Review
City of Milpitas – Business License
Ordinance Review
City of Needles – Development
Agreement Assistance
City of Pico Rivera – Business
License Ordinance Review
City of Port Hueneme – Revenue
Search Report
City of Redlands – Street
Sweeping Rate Study
City of San Bernardino –
Verdemont Area Financing
Analysis

MISCELLANEOUS PROJECTS
(continued)
City of San Clemente – Business
License Review
City of Santa Paula – General Plan
Element
City of Seaside – Hayes Housing
Development Service Demands
City of South Lake Tahoe –
Transfer of Custody Cost
Verification
City of Westminster –
Productivity Measurement
Module
Lake Havasu City, AZ – Capital
Financing Plan
Los Angeles Fire/Police
Retirement System – Fiscal
Review
San Bernardino County – Special
District Office Finance Review
South Jordan City, UT – Business
Regulation Costing
Town of Windsor – Long Range
Capital Financing Plan
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 70 of 173 Proposal for the City of Montclair, CA

PROPOSED BUDGET
Revenue & Cost Specialists proposes the following project costs, which will NOT TO EXCEED AMOUNT OF $34,500.

Development Impact Fee
Preliminary Research 30 4,500
Identify Land-Use Build Out Land Use Database 35 5,250
Identify Current/Future Needs Schedule of Capital Costs 45 6,750 Mathematical Nexus Calculation Spreadsheets of Calculations 48 7,200 Textual Nexus Draft & Final DIF Reports 56 8,400
Public Meetings Presentations (2) 16 2,400
TOTAL PROJECT COST 230 $34,500
The above costs are based on a charge of $150 per hour. The billing rate for any additional work not covered by this proposal would be $200 per hour. Our proposal covers all costs except for the following additional costs that the City may incur:
• Insurance coverage beyond our basic general liability and worker’s compensation requiring an additional premium. RCS standard coverage includes worker’s compensation pursuant to state law, comprehensive liability Insurance with a combined single limit coverage of $2,000,000, and professional liability insurance with a combined coverage of $2,000,000.
• Report reproduction beyond one physical master copy of the final Report. • Excessive public meeting attendance.
• Excessive revisions to the report once the draft report has been approved by City staff.

RCS will submit five equal invoices for the Development Impact Fee Study, plus any miscellaneous costs from the previous paragraph. The first invoice will be submitted ten days after the start of each. Invoices will be due within 30 days of submission.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 71 of 173

CITY COUNCIL

AGENDA REPORT
DATE: AUGUST 7, 2023
SECTION: CONSENT - AGREEMENTS
ITEM NO.: 3
FILE I.D.: PER125
DEPT.: ADMIN. SVCS.

PREPARER: A. MYRICK
SUBJECT: CONSIDER APPROVAL OF AGREEMENT NO. 23–57 WITH MOBILE SCREENING

SOLUTIONS FOR DEPARTMENT OF TRANSPORTATION RANDOM EMPLOYEE DRUG

AND ALCOHOL SCREENING SERVICES
REASON FOR CONSIDERATION: The City Council is requested to consider approval of Agreement No. 23–57 with Mobile Screening Solutions (MSS) for Department of Transportation (DOT) random employee drug and alcohol screening services.

BACKGROUND: Since 1996, the City has been subject to DOT regulations requiring a drug and alcohol testing program for employees performing certain duties, including operating heavy commercial equipment and buses. These employees are placed in a pool that is periodically subject to random drug and alcohol testing, and upon reasonable suspicion of impairment on the job.

Public Works staff previously handled the administration of this program including training, random selection of employees for testing, and recordkeeping. However, after reviewing the program, the City’s Human Resources Consultant recommended removing all Public Works Department staff from administering the random selection process, which prompted the program’s administration to be handed over to the Personnel Division. Additionally, earlier this year in February, California Highway Patrol (CHP) performed an inspection to verify compliance with DOT testing, and the CHP inspector suggested, as a best practice, to not perform the random selection process in–house, but to contract the entire process with a third party to ensure full compliance and integrity for the random selection of employees.

In 2022, prior to the transfer of the program, Public Works Department staff was researching improvements to the program. They requested the Personnel Division continue these efforts by having on–site testing performed instead of sending employees to a medical clinic, which would save time and improve the integrity of the tests. Public Works staff initially received a proposal from MSS for on–site testing services back in March of 2022. When Personnel staff reached out to MSS, they agreed to honor the quote. Staff also contacted another mobile testing company that serves the area, PHS Mobile Health Solutions, which initially claimed they could provide the requested services; however, it was found they do not provide DOT–approved testing.

The rates outlined in the contract provided by MSS are as follows, and the total estimated cost is based on the City having 20 employees in the Program:

Service Fee Unit Amount Total
Randomizer $ 475 Annual 1 $ 475
On–Site Testing 175 Per visit 4 700
DOT Drug Test 68 Per Test 20 1,360
BAT Alcohol Test 75 Per Test 4 300
Estimated Testing Total: $ 2,835
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 72 of 173 MSS also provides training and consulting services related to this program that the City may utilize as needed to remain compliant with DOT requirements.

FISCAL IMPACT: Funds to cover services to be provided by MSS were approved in the Fiscal Year 2023–24 Budget. In the Administrative Services Department, $2,000 is budgeted for “DOT Certified Drug Testing Program Training” in Program Account No. 4311–52540 (Training), and $20,000 is budgeted for “Physical examinations for prospective employees, drug/alcohol tests, employee annual/biannual physicals, and driver's license” in Program Account No. 4315–52510 (Medical Examinations).

RECOMMENDATION: Staff recommends that the City Council approve Agreement No. 23–57 with MSS for DOT random employee drug and alcohol screening services.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 73 of 173 16155 Sierra Lakes Parkway
Suite 160-321
Fontana, CA 92336
(888) 343-6673 Toll Free
(877) 235-5056 Fax
www.drugfreenetwork.org
March 22, 2022
Alex Cardona
City of Montclair
5111 Benito Street
Montclair, CA 91763
Dear Alex:

Per our conversation, I would like to submit the following proposal with our services and pricing in writing for your review and approval.

OBJECTIVE
Implement and maintain both DOT Certified and non-DOT Drug Testing program for current employees and prospective employees. Review and update current Drug Free Workplace policy and make changes as necessary to ensure compliance with the DOT and State of California Regulations.

SCOPE OF SERVICES

1. DOT Drug Testing (Drivers)
i. Per DOT Guidelines, all tests must be administered in accordance with the Department of Transportation for DOT Certified drivers and DOT safety sensitive jobs per current DOT guidelines.

1. Controlled substance test must be conducted in accordance with 49 CFR Part 40 for DOT employees. The drugs tested are:

Marijuana metabolites, Cocaine metabolites, Amphetamines, Opiate metabolites, and Phencyclidine.
a. Lab Testing via collection center:
i. CITY OF MONTCLAIR may work with either Quest Diagnostics clinics or preferred clinics (non-Quest) for urine collection. CITY OF MONTCLAIR may choose which collection site the company would like to use, or we can provide a list of collection sites.

Agreement No. 23-57
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 74 of 173

CITY OF MONTCLAIR
March 22, 2022

b. On-site collection services:
ii. Drivers may also use MSS (Mobile Screening Solutions, Inc) for collections at CITY OF MONTCLAIR (On-Site), when MSS is administering tests on-site at any CITY OF MONTCLAIR location.

This is best practice per FMCSA.
c. Results:
iii. Lab results generally come back within 24 hours for negative results from receipt at laboratory. Weekends and holidays must also be taken into consideration. Negative results will be signed off by an MRO (Medical Review Officer).
iv. Both Negative and Positive results will be sent to MRO for confirmation via Medical Doctor. Results generally come back in 48-72 hours.

Weekends and holidays must also be taken into consideration. v. Results will be reported directly to CITY OF MONTCLAIR. Results can be reported via Fax, E-mail, online, US Mail, or any combination.

MSS can also set up an online account via the internet for the DER and Assistant DER to access all results 24 hours a day, 7 days a week.

2. Alcohol Testing:
i. MSS will set up an account at a local clinic for BAT (Breath Alcohol Test); we can also work with an existing clinic that CITY OF MONTCLAIR has a contract with. Should a test strip come up positive, CITY OF MONTCLAIR would require BAT confirmation (per DOT guidelines). ii. MSS will conduct alcohol testing on-site when collecting drug test specimens.

3. Drug Free Workplace Program
a. What our program offers to CITY OF MONTCLAIR:
i. Full Compliance and Defensibility.
ii. Full Training for Supervisors, Human Resources, Employees. iii. Consultation and Management of Drug Free Workplace Program as a Third-Party Administrator.
iv. Compliance of Random Drug Testing including quarterly draw of employees.
v. Reporting all results and MIS reports yearly.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 75 of 173

CITY OF MONTCLAIR
March 22, 2022

4. Support
i. MSS can be reached 24 hours a day, 7 days a week and are also available for on-site workplace drug testing, including reasonable suspicion, postaccident, random drug testing, and BAT testing.

1. MSS may also be available on-site for pre-employment drug testing, alcohol testing, and background check services for any new hire employment pools.

BILLING

1. Billing is generated monthly with detailed reports.

CONTRACT TERMS

1. Contract terms are Yearly- No long-term contracts. MSS’s goal is to deliver superior service every day, therefore, we do not feel the need to “lock in” contracts. Our goal at MSS is to develop long-term relationships with our partner companies. We do ask that CITY OF MONTCLAIR provide a two-week notice of termination, if applicable.

CITY OF MONTCLAIR RESPONSIBILITIES
For Drug Screening:
a. DOT Drug Screening:

1. MSS will supply CITY OF MONTCLAIR with drug testing chain of custody forms for urine drug testing. Your company information will be pre-printed on all forms for Quest Diagnostics. We can supply you with a list of approved locations within a 50 mile radius of your location(s). You may also submit electronically to Quest and e-mail the chain of custody form to your employee/prospective employee to print and take to the collection center. Collection centers may also be found online by visiting:
i. Quest: www.questdiagnostics.com/psc/

2. All the employee/applicant needs to do is hand the collection site personnel the preprinted form - everything else is handled by the personnel at the collection site.

3. MSS will be happy to collect DOT drug tests on-site. The officers of CITY OF MONTCLAIR and MSS will set up quarterly dates for on-site collection services.

4. MSS is also available for reasonable suspicion and accidents for DOT drug tests onsite (Additional fees apply). Depending on location, a third-party clinic or collection service may be utilized for timely service.

For Alcohol Screening:
a. DOT Alcohol Screening:
a. MSS will conduct alcohol screening at the time of on-site utilizing DOT approved devices.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 76 of 173

CITY OF MONTCLAIR
March 22, 2022

BENEFITS TO CITY OF MONTCLAIR
MSS will save your company money and time on drug testing, alcohol testing, and background checks.

MSS provides results generally in 24 hours or less for negative, 72 hours or less for positive (due to confirmation process). We can come to you and collect on-site, or you can send your employee/ applicant to a collection site close to CITY OF MONTCLAIR’s location, yards, or the employee’s home.

FEES
Drug Testing Services: $68.00 for DOT, $55.00 for Non- DOT Urine drug testing at Quest Diagnostics.

Drug test includes collection, lab analysis, initial screen, confirmation, MRO review and reporting. *For on-site testing MSS utilizes MedTox Laboratories or Alere Toxicology and we generally have results back the same day or within 24 hours of testing.

If you send the employee/applicant to a non-Approved lab or clinic, there may be an additional charge of $35.00 per person. This is a pass-through charge for using out-of-network labs. The collection site may also charge a collection fee if outside Quest network.

Drug Free Workplace Program. MSS will initiate the random draw to select employees on a quarterly basis utilizing a randomizer program approved by the DOT. The fee for this service is $475.00 annually.

This fee includes customized forms, customized manuals for HR Department, supervisors, employees, and administrative random selection set-up.

We will also review your current documents for DOT compliance for no additional charge.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 77 of 173

CITY OF MONTCLAIR
March 22, 2022

BREAKDOWN OF COSTS AND FEES:

Drug Testing: Cost:

DOT Drug Testing (urine) $68.00 Includes Collection, MRO reporting, Results, and Compliance.

Non DOT Drug Testing (urine) $55.00 Includes Collection, MRO reporting, Results, and Compliance.

On-site collection $175.00 On-site collection fee includes 1 hour standby- overtime hours are billed at $75.00 per hour for collector rate
After Hours Post Accident
Collection $275.00 Additional per Call plus cost of service called for, i.e. DOT nonDOT drug test. Depending on the location, there may be additional millage charge of 58.5 cents per mile per IRS regulations. (Regular hours for collection are 9am-3pm)
Non-Approved Collection Site $35.00 (+/-) per collection. (Preferred Quest collection centers) Alco-Screen 4 Minute
DOT Approved Alcohol Test $45.00 per non-DOT employee. (Utilized for on-site collections) Alcohol BAT tests at local $75.00 per BAT test. (Utilized on-site for confirmation of POS results) clinics. (DOT/ non-DOT)
Random Selection Set-up $475.00 per year. (Drug Free Workplace Program) Training $950.00 plus $12.50 per certificate. (DOT Supervisor training, Human Resource staff training, Employee training).

Consulting $450.00/hr. Employee manuals, Drug Free Workplace manuals, Legal Consulting, general consulting.

Background Checks: Cost:

Package 1 (non driver) $39.95. (Nationwide Criminal Summary Report, Social Security Address Trace, Social Security Number Verification, and Sexual Offender Search- all 50 States).

Package 2 (driver) $49.95 + DMV Access Fees (Motor Vehicle Report, Drivers License Verification Nationwide Criminal Summary Report, Social Security Address Trace, Social Security Number Verification, and Sexual Offender Search- all 50 States).

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 78 of 173

CITY OF MONTCLAIR
March 22, 2022

CLOSING
We at MSS understand how important it is that public entities, such as the CITY OF MONTCLAIR are offered the best possible solutions at the most reasonable prices. MSS will ensure that your organization receives the best possible services at the lowest prices available. MSS strives to be the “go to” resource for each company we work with. We are your consultants to a Drug Free Workplace. We want to be your partner, not just a vendor.

MSS will also periodically review your Drug Free Workplace program/services and suggest ways to save you money, and more importantly, time!
MSS takes great pride in what we can offer and how we can help CITY OF MONTCLAIR succeed as a Drug Free Workplace. We appreciate the opportunity to serve CITY OF MONTCLAIR and we look forward to working with you for many years to come!
Sincerely,
Harrison Lux
(909) 224-0801 direct
(888) 343-6673 toll free
www.drugfreentwork.org
Enclosures
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 79 of 173

CITY OF MONTCLAIR
March 22, 2022

RESPONSE
This letter correctly sets forth the understanding of services offered.

Accepted by (signature) Title Date
________________________________ (_______)_________________________ ext: ______ Print Name Phone Number/ Extension
Potential start date of services: _______/________/_________ Please fax to (877) 235-5056.

Your account manager will contact you after receipt of this fax.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 80 of 173

CITY COUNCIL

AGENDA REPORT
DATE: AUGUST 7, 2023
SECTION: CONSENT - AGREEMENTS
ITEM NO.: 4
FILE I.D.: LIB050
DEPT.: ECONOMIC DEV.

PREPARER: M. FUENTES
SUBJECT: CONSIDER APPROVAL OF AGREEMENT NO. 23–58 AMENDING AGREEMENT NO. 06– 175 WITH THE COUNTY OF SAN BERNARDINO FOR THE LEASE OF A CITY–OWNED

FACILITY TO PROVIDE COUNTY LIBRARY SERVICES, SUBJECT TO ANY REVISIONS

DEEMED NECESSARY BY THE CITY ATTORNEY
REASON FOR CONSIDERATION: The City Council is requested to consider approval of Agreement No. 23–58 amending Agreement No. 06–175 with San Bernardino County (County) for the lease of a City–owned facility to provide County library services.

A copy of proposed Agreement No. 23–58 is attached for the City Council’s review and consideration.

BACKGROUND: The County has been leasing a City facility to provide County library services to the Montclair community since the early 1960s. This resource is a vital component of the Montclair Civic Center and the Montclair Community.

On December 4, 2006, the Montclair City Council approved Agreement No. 06–175 with the County to lease a City–owned facility to provide County library services. Agreement No. 06–175 superseded all previous agreements with the County for lease of the facility for library services, and included updated language related to utilities and maintenance costs, the division of the leased facility into separate sections, and division of maintenance responsibilities for the leased facility.

On November 20, 2017, the City Council approved Agreement No. 17–90 amending Agreement No. 06–175, to allow the County to exercise the first of the two five–year extended lease term periods contained in Agreement No. 06–175.

In order for the County to continue providing County library services, Agreement No. 17–90 must be amended to allow the County to exercise the second of the two five–year extended lease term periods contained in Agreement No. 06–175 Proposed Amendment
Agreement No. 06–175 includes provisions that allow for the extension of the initial term period following the expiration of the Agreement on December 31, 2017. The following includes the provisions of Agreement No. 06–175 that allow for the extension of the initial term period.
 Paragraph 5. Option to Extend Term: City gives County the option to extend the term of the lease on the same provisions and conditions, except for the monthly rent, for two (2) five–year periods (“extended terms”) following the expiration of the initial term, by County giving notice of its intention to exercise the option to City prior to the expiration of the preceding term or during any holding over pursuant to Paragraph 7, Holding Over. The rent for each extended MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 81 of 173 term shall be adjusted by good faith negotiation of the parties to the current operational costs, to include electricity, water, trash, gas, sewer, custodial services, and grounds maintenance.
 Paragraph 7. Holding Over: In the event the County shall hold over and continue to occupy the premises with the consent of the City, expressed or implied, the tenancy shall be deemed to be a tenancy from month–to–month upon the same terms and conditions, including rent, as existed and prevailed at the time of the expiration of the term of this Lease.

Paragraph 5. Option to Extend Term of Agreement No. 06–175 allows for the extension of the Agreement for two five–year periods commencing after the initial term period, for a combined total of ten years. City Staff must be notified in writing if the County elects to exercise one or both of the five–year extended term periods.

City staff recently received a letter indicating the County’s desire to exercise the second of the available five–year extended term periods of Agreement No. 06–175.

The County proposes extending the term of Agreement No. 06–175 for five (5) years commencing on September 1, 2023, through August 31, 2028.

In the letter, the County proposes an annual two percent (2%) increase during the duration of the proposed five–year extended term period. The table below indicates the proposed base year rent schedule for the five–year extended term period.

Proposed Base Year Rent Schedule
Adoption of proposed Agreement No. 23–58 would allow the County to continue providing library services for the next five years. All other terms, conditions, and provisions of Agreement No. 06–175 and Agreement No. 17–90, to the extent not modified in proposed Agreement No. 23–58, shall remain in full force and effect.

FISCAL IMPACT: Adoption of proposed Agreement No. 23–58 would allow for the extension of Agreement No. 06–175 for an additional five–year period.

Under proposed Agreement No. 23–58 the City would receive an initial annual payment from the County of $67,758, or roughly $5,646 per month. The annual payment would be subject to a two percent annual increase for the duration of the proposed five–year term period. At the end of the five–year term, the City would receive a maximum annual payment from the County of $73,343, or roughly $6,111 per month.

Term Sq. Ft. Approx.

Rate (PSF)
Rent Per
Month
Per Year
9/1/23 – 8/31/24 12,275 $0.46 $5,646.50 $ 67,758
9/1/24 – 8/31/25 12,275 $0.47 $ 5,759.43 $ 69,113
9/1/25 – 8/31/26 12,275 $0.48 $ 5,874.62 $ 70,495
9/1/26 – 8/31/27 12,275 $0.49 $ 5,992.11 $ 71,905
9/1/27 – 8/31/28 12,275 $0.50 $ 6,111.95 $ 73,343
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 82 of 173 In all, the City would see a total increase in the annual payment received from the County of roughly $13,824 over the five–year term period.

The City will continue to be responsible for all maintenance and custodial services for the leased City–owned facility including grounds, parking lot, and exterior lighting. The County will continue to service the fire extinguishers and provide its own internet access, data, and telecommunication services. The City will continue to pay for all other utilities and fire alarm service.

RECOMMENDATION: Staff recommends the City Council approve Agreement No. 23–58 amending Agreement No. 06–175 with the County of San Bernardino for the lease of a City facility to provide County library services, subject to any revisions deemed necessary by the City Attorney.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 83 of 173 Standard Contract Page 1 of 3

THE INFORMATION IN THIS BOX IS NOT A PART OF THE CONTRACT AND IS FOR COUNTY USE ONLY Real Estate Services Department
Department Contract Representative Terry W. Thompson, Director Telephone Number (909) 387-5000
Contractor City of Montclair
Contractor Representative Mikey Fuentes
Telephone Number (909) 625-9497
Contract Term 09/1/23 – 08/31/28
Original Contract Amount $919,032.00
Amendment Amount $352,615.36
Total Contract Amount $1,271,647.36
Cost Center 7810001000
GRC/PROJ/JOB No. 60002290
IT IS HEREBY AGREED AS FOLLOWS:

WHEREAS, San Bernardino County (“COUNTY”), as tenant, and City of Montclair (“CITY”), as Landlord, have previously entered into Lease Agreement, Contract No. 07-147 A-1 dated December 5, 2017 (“Lease”) wherein CITY leases certain premises located at 9955 Fremont Avenue, Montclair, CA 91763 as more specifically described in the Lease, to the COUNTY; which Lease expired dated December 31, 2022 and has continued on a permitted month to month holdover; and
WHEREAS, the COUNTY and CITY now desire to amend the Lease to extend the term of the Lease for five (5) years for the period of September 1, 2023 through August 31, 2028, following a permitted holdover for the period of January 1, 2023 through August 31, 2023, adjust the rental rate schedule, and amend certain other terms of the Lease as more specifically set forth in this amendment (the “Second Amendment”).

NOW, THEREFORE, in consideration of mutual covenants and conditions, effective as of September 1, 2023, unless otherwise expressly provided herein, the parties hereto agree the Lease, is amended as follows:

1. Pursuant to Paragraph 7, HOLDING OVER, COUNTY shall, with CITY’s express consent granted herein, occupy the Premises on a holdover tenancy for the period from January 1, 2023 through August 31, 2023, in the total amount of $39,529.

2. EXTEND the term of the Lease as provided in Paragraph 3, TERM, for five (5) years from September 1, 2023 through August 31, 2028 (the “Second Extended Term”). The parties acknowledge and agree that the existing five-year option to extend the term of the Lease pursuant to Paragraph 5, OPTION TO EXTEND TERM remains available for future exercise by the COUNTY in accordance with said paragraph.

3. DELETE in its entirety the existing Paragraph 4, RENT, and SUBSTITUTE therefore the following as a new Paragraph 4, RENT:

Contract Number
07-147 A-2
SAP Number
Agreement No. 23-58
Amendment No. 2 to 06-175
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 84 of 173 Revised 5/12/21 Page 2 of 3

4. RENT:

A. COUNTY shall pay to CITY the following monthly rental payments payable quarterly in advance on the first day of the first month of each calendar quarter year, commencing when the Second Extended Term commences, continuing during the Second Extended Term, subject to an approximate two percent (2%) annual increase reflected and included in the amounts as more specifically set forth below:

September 1, 2023 through August 31, 2024 $5,646.50
September 1, 2024 through August 31, 2025 $5,759.43
September 1, 2025 through August 31, 2026 $5,874.62
September 1, 2026 through August 31, 2027 $5,992.11
September 1, 2027 through August 31, 2028 $6,111.95
B. Rent for any partial month shall be prorated based on actual number of days of the month. CITY shall accept all Rent and other payments from COUNTY under this Lease via electronic fund transfer (EFT) directly deposited into the CITYS designated checking or other bank account. CITY shall promptly comply with directions and accurately complete forms provided to the COUNTY required to process EFT payments.

5. This Second Amendment may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, and such counterparts shall together constitute one and the same First Amendment. The parties shall be entitled to sign and transmit an electronic signature of this Second Amendment (whether by facsimile, PDF, or other mail transmission), which signature shall be binding on the party whose name is contained therein. Each party providing an electronic signature agrees to promptly execute and deliver to the other party an original signed Second Amendment upon request.

REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 85 of 173 Revised 5/12/21 Page 3 of 3

6. All other terms and conditions of the Lease shall remain the same and are hereby incorporated by reference. In the event of any conflict between the Lease, and this Second Amendment, the terms and conditions of this Second Amendment shall control.

END OF FIRST AMENDMENT.

FOR COUNTY USE ONLY
Approved as to Legal Form Reviewed for Contract Compliance Reviewed/Approved by Department John Tubbs II, Deputy County Counsel Lyle Ballard, Real Property Manager, RESD Date Date Date

SAN BERNARDINO COUNTY CITY OF MONTCLAIR
By
Dawn Rowe, Chair, Board of Supervisors Javier John Dutrey, Mayor Dated:

SIGNED AND CERTIFIED THAT A COPY OF THIS
Andrea Myrick, City Clerk DOCUMENT HAS BEEN DELIVERED TO THE

CHAIRMAN OF THE BOARD
Lynna Monell
Clerk of the Board of Supervisors
San Bernardino County
By Dated:

Deputy
Address 5111 Benito Street
Montclair, CA 91763
Diane E. Robbins, City Attorney
Attest:

Approved
as to form:

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 86 of 173

CITY COUNCIL

AGENDA REPORT
DATE: AUGUST 7, 2023
SECTION: CONSENT - RESOLUTIONS
ITEM NO.: 1
FILE I.D.: STB300–17
DEPT.: FINANCE
PREPARER: C. GRAVES
SUBJECT: CONSIDER ADOPTION OF RESOLUTION NO. 23–3413 AUTHORIZING PLACEMENT OF

ASSESSMENTS ON CERTAIN PROPERTIES FOR DELINQUENT SEWER AND TRASH

ACCOUNTS
REASON FOR CONSIDERATION: The City Council is requested to consider adoption of Resolution No. 23–3413 authorizing placement of assessments on certain properties for delinquent sewer and trash accounts. There are 523 outstanding liens on properties for collection of delinquent civil debts owed to the City or sewer and trash service. Placement of assessments on these properties would assist in more timely collection of these delinquent accounts.

A copy of proposed Resolution No. 23–3413 is attached for City Council review and consideration.

BACKGROUND: The City Council authorized the placement of 637 liens on properties for delinquent sewer and trash charges on the following dates:

Date No. of Liens
October 6, 2022 92
November 10, 2022 113
February 9, 2023 107
March 9, 2023 127
June 8, 2023 95
July 19, 2023 + 103
Total: 637
Of these 637 liens, 114 have been cleared.

It is recommended that assessments, which are collected with the property tax, be placed on the properties where the 523 unpaid liens remain. This would result in more timely collection of the delinquencies than the lien process, which generates payment only upon sale or refinancing of the property.

In addition to the regular bimonthly billings, the City has sent bimonthly letters to these property owners advising them of their delinquencies. They received notification when the liens were placed and were again notified on July 6, 2023, that the action proposed this evening would be considered by the City Council.

FISCAL IMPACT: Recoverable amount is $207,488.60
RECOMMENDATION: Staff recommends the City Council adopt Resolution No. 23–3413 authorizing placement of assessments on certain properties for delinquent sewer and trash charges.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 87 of 173 Resolution No. 23–3413 Page 1 of 1
RESOLUTION NO. 23–3413

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF MONTCLAIR AUTHORIZING PLACEMENT

OF ASSESSMENTS ON CERTAIN PROPERTIES FOR

DELINQUENT SEWER AND TRASH ACCOUNTS
WHEREAS, Chapter 1.12 of the Montclair Municipal Code authorizes various methods by which delinquent civil debts may be collected including, but not limited to, the placement of assessments on the properties on which the debts were generated; and WHEREAS, City Council has recently placed 637 property liens on properties on which there are delinquent civil debts for unpaid sewer and trash charges; and WHEREAS, the lien amount was paid on 114 of these liens; and WHEREAS, it is appropriate to also place assessments on these properties where the 390 liens remain outstanding as identified on Exhibit A of this Resolution to further encourage the payment of these charges owed to the City; and WHEREAS, the owners of these properties have received notification of proposed actions against their properties including the date and time when such action would be considered by the City Council.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Montclair does hereby approve the placement of assessments on the properties and in the amounts specified in Exhibit A, entitled "August 2023 – Property Assessments." BE IT FURTHER RESOLVED that the City Clerk is authorized to provide the San Bernardino County Assessor's Office with the documents required to cause such assessments to be placed.

APPROVED AND ADOPTED this XX day of XX, 2023.

Mayor
ATTEST:

City Clerk
I, Andrea M. Myrick City Clerk of the City of Montclair, DO HEREBY CERTIFY that Resolution No. 23–3413 was duly adopted by the City Council of said city and was approved by the Mayor of said city at a regular meeting of said City Council 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
City Clerk
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 88 of 173 Exhibit A to Resolution No. 23–3413
August 2023 – Property Assessments

Street No. Street Lien 1 Lien 2 Lien 3
Total
Assessment
Amount
Account Type
11225 Ada Avenue 364.30 366.20 372.90 1,103.40 Residential 5356 Alamitos Street 364.66 366.93 378.78 1,110.37 Residential 5366 Alamitos Street 376.49 367.60 744.09 Senior
9757 Amherst Avenue 364.61 366.92 378.78 1,110.31 Residential 9910 Amherst Avenue 364.66 366.93 378.78 1,110.37 Residential 9960 Amherst Avenue 384.37 384.37 Residential
11141 Amherst Avenue 364.48 366.22 372.90 1,103.60 Residential 11151 Amherst Avenue 364.33 366.20 372.90 1,103.43 Residential 5460 Armsley Street 444.04 308.53 752.57 Residential
5363 Arrow Hwy 743.49 491.90 1,235.39 Commercial
5102 Aspen Drive 464.52 464.52 Residential
9909 Bel Air Avenue 482.69 379.91 380.21 1,242.81 Residential 9910 Bel Air Avenue 319.12 319.12 Residential
9950 Bel Air Avenue 364.64 366.92 731.56 Residential
10045 Bel Air Avenue 443.77 387.23 831.00 Residential
10145 Bel Air Avenue 364.48 366.22 372.90 1,103.60 Residential 10283 Bel Air Avenue 398.68 398.68 Residential
10545 Belgian Place 571.54 571.54 Residential
5219 Belvedere Way 402.59 402.59 Residential
4435 Benito Street 398.95 370.71 376.21 1,145.87 Residential 4460 Benito Street 364.66 366.93 378.78 1,110.37 Residential 4553 Benito Street 485.38 485.38 Residential
4814 Benito Street 454.04 454.04 Senior
5206 Benito Street 365.58 365.58 Commercial
5233 Benito Street 334.54 336.86 346.40 1,017.80 Senior 5429 Benito Street 364.66 366.93 378.78 1,110.37 Residential 5598 Benito Street 394.03 396.28 408.81 1,199.12 Residential 4843 Berkeley Street 365.26 367.00 378.79 1,111.05 Residential 5214 Berkshire Way 295.89 295.89 Residential
9598 Bolton Avenue 364.66 366.93 378.78 1,110.37 Residential 4541 Bonnie Brae Street 364.66 366.93 378.78 1,110.37 Residential 5051 Brooks Street 359.05 359.05 Residential
11339 Brunswick Lane 396.80 396.80 Residential
11419 Brunswick Lane 353.10 395.88 748.98 Residential
11457 Brunswick Lane 396.80 396.80 Residential
9851 Camarena Avenue 364.66 366.93 378.78 1,110.37 Residential 4443 Cambridge Street 387.25 369.42 379.05 1,135.72 Residential 4853 Cambridge Street 365.65 367.04 378.79 1,111.48 Residential 5448 Cambridge Street 312.80 312.80 Residential
5470 Cambridge Street 365.65 367.04 378.79 1,111.48 Residential 5471 Cambridge Street 364.66 366.93 378.78 1,110.37 Residential 5561 Cambridge Street 584.01 584.01 Residential
5570 Cambridge Street 322.62 322.62 Residential
9242 Camulos Avenue 491.41 380.87 872.28 Residential
9243 Camulos Avenue 364.66 366.93 378.78 1,110.37 Residential 9426 Camulos Avenue 390.63 408.77 799.40 Residential
9511 Camulos Avenue 394.07 396.29 408.81 1,199.17 Residential 9540 Camulos Avenue 525.14 410.70 410.40 1,346.24 Residential 9737 Camulos Avenue 375.21 375.21 Residential
9877 Camulos Avenue 394.07 396.29 408.81 1,199.17 Residential 10060 Camulos Avenue 346.12 346.12 Residential
10234 Camulos Avenue 372.30 367.08 373.00 1,112.38 Residential 10259 Camulos Avenue 364.48 366.22 372.90 1,103.60 Residential 11409 Cannery Row 385.05 400.15 785.20 Residential
4924 Canoga Street 364.48 366.22 372.90 1,103.60 Residential 5666 Caroline Street 365.65 367.04 378.79 1,111.48 Residential 11178 Carrillo Avenue 364.48 366.22 372.90 1,103.60 Residential 4337 Clair Street 600.03 425.08 1,025.11 Residential
9795 Coalinga Avenue 364.66 366.93 378.78 1,110.37 Residential 9824 Coalinga Avenue 337.78 342.66 354.16 1,034.60 Senior 10164 Coalinga Avenue 364.47 366.22 372.90 1,103.59 Residential 10231 Coalinga Avenue 315.11 315.11 Residential
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 89 of 173 Exhibit A to Resolution No. 23–3413
August 2023 – Property Assessments

Street No. Street Lien 1 Lien 2 Lien 3
Total
Assessment
Amount
Account Type
10276 Coalinga Avenue 417.79 417.79 Residential
11148 Coalinga Avenue 364.45 366.22 372.90 1,103.57 Residential 11465 Cobblestone Lane 287.41 387.14 674.55 Residential 11362 Cumberland Lane 382.49 382.49 Residential
11370 Cumberland Lane 392.29 392.29 Residential
11373 Cumberland Lane 399.40 399.40 Residential
11469 Cumberland Lane 396.85 396.85 Residential
11476 Cumberland Lane 398.93 401.98 800.91 Residential
11333 Dartmouth Lane 382.49 382.49 Residential
11446 Dartmouth Lane 335.45 335.45 Residential
9477 Del Mar Avenue 503.27 408.30 410.13 1,321.70 Residential 10190 Del Mar Avenue 364.48 366.22 372.90 1,103.60 Residential 10236 Del Mar Avenue 319.36 361.26 372.36 1,052.98 Residential 4405 Denver Street 394.04 396.28 408.81 1,199.13 Residential 4455 Denver Street 482.69 379.91 380.21 1,242.81 Senior 5616 Denver Street 364.66 366.93 378.78 1,110.37 Residential 5626 Denver Street 394.35 396.32 408.81 1,199.48 Residential 5168 El Morado Street 401.84 403.06 415.62 1,220.52 Residential 5357 El Morado Street 517.06 395.30 912.36 Senior
5429 El Morado Street 364.66 366.93 378.78 1,110.37 Residential 11159 Essex Avenue 364.48 366.22 372.90 1,103.60 Residential 4705 Evart Street 408.43 371.05 373.44 1,152.92 Residential 9463 Exeter Avenue 518.68 0.00 0.00 518.68 Residential
4114 Faircove Court 415.49 404.19 819.68 Residential
4219 Fauna Street 353.48 365.01 372.77 1,091.26 Residential 4267 Fauna Street 371.27 732.54 413.19 1,517.00 Residential 4291 Fauna Street 364.48 366.22 372.90 1,103.60 Residential 4432 Fauna Street 337.39 363.24 700.63 Residential
4456 Fauna Street 334.37 336.15 341.68 1,012.20 Senior
4703 Fauna Street 364.47 366.22 372.90 1,103.59 Residential 4738 Fauna Street 352.48 364.90 372.76 1,090.14 Residential 4852 Fauna Street 364.41 366.21 372.90 1,103.52 Residential 5420 Fauna Street 497.39 497.39 Residential
9367 Felipe Avenue 485.38 391.81 877.19 Residential
9793 Felipe Avenue 333.92 336.79 346.39 1,017.10 Residential 8919-21 Felipe Avenue 658.94 662.43 675.80 1,997.17 Multifamily 4639 Flora Street 376.95 367.59 744.54 Residential
4660 Flora Street 364.47 366.22 372.90 1,103.59 Residential 5382 Flora Street 379.22 379.22 Residential
9020 Fremont Avenue 364.10 366.24 376.43 1,106.77 Senior 9823 Fremont Avenue 364.65 366.93 378.78 1,110.36 Residential 10253 Fremont Avenue 364.47 366.22 372.90 1,103.59 Residential 10287 Fremont Avenue 393.85 395.58 402.60 1,192.03 Residential 11049 Fremont Avenue 583.48 583.48 Residential
10149 Galena Avenue 364.47 366.22 730.69 Residential
9985 Geneva Avenue 364.64 366.92 378.78 1,110.34 Residential 10161 Geneva Avenue 327.72 327.72 Residential
4328 Granada Street 364.66 366.93 378.78 1,110.37 Residential 4155 Grand Avenue 355.10 355.10 Residential
9772 Greenwood Avenue 316.09 316.09 Residential
3792 Hampton Drive 396.80 396.80 Residential
11418 Hartford Ln 403.57 403.57 Residential
4376 Harvard Street 364.61 366.92 378.78 1,110.31 Residential 4418 Harvard Street 364.65 366.93 378.78 1,110.36 Residential 4430 Harvard Street 365.65 463.53 829.18 Residential
5141-43 Harvard Street 658.69 663.79 687.55 2,010.03 Multifamily 9607 Helena Avenue 354.25 354.25 Residential
11353 Hickory Lane 355.10 355.10 Residential
11443 Hickory Lane 315.86 315.86 Residential
4103 Howard Street 364.48 366.22 372.90 1,103.60 Residential 4341 Howard Street 364.47 366.22 494.20 1,224.89 Residential 4705 Howard Street 396.80 396.80 Residential
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 90 of 173 Exhibit A to Resolution No. 23–3413
August 2023 – Property Assessments

Street No. Street Lien 1 Lien 2 Lien 3
Total
Assessment
Amount
Account Type
4910 Howard Street 407.88 397.12 402.76 1,207.76 Residential 4992 Howard Street 436.57 294.48 731.05 Residential
5044 Howard Street 499.15 499.15 Residential
5190 Howard Street A & B 724.77 729.23 754.41 2,208.41 Multifamily 4585 James Street 394.05 396.29 408.81 1,199.15 Residential 9756 Kimberly Avenue 557.28 557.28 Residential
9860 Kimberly Avenue 346.12 346.12 Residential
9877 Kimberly Avenue 512.83 414.80 927.63 Residential
10236 Kimberly Avenue 364.47 366.22 372.90 1,103.59 Residential 10244 Kimberly Avenue 376.18 555.10 931.28 Residential
11065 Kimberly Avenue 363.77 366.14 372.89 1,102.80 Residential 11175 Kimberly Avenue 484.69 385.93 870.62 Residential
4671 Kingsley Street 330.36 624.01 954.37 Multifamily
5476 Kingsley Street 364.48 364.48 Residential
5400 La Deney Street 344.04 344.04 Senior
5015 Laurel Street 435.57 435.57 Residential
9744 Lehigh Avenue 331.83 363.31 378.38 1,073.52 Residential 10360-62 Lehigh Avenue 658.96 662.44 675.80 1,997.20 Multifamily 10007 Lindero Avenue 317.44 317.44 Senior
10042 Lindero Avenue 482.69 379.91 280.21 1,142.81 Residential 4595 Mane Street 331.83 362.62 372.50 1,066.95 Residential 4846 Mane Street 345.95 390.31 402.01 1,138.27 Residential 8875 Maple Avenue 397.30 397.30 Residential
9527 Marion Avenue 364.66 366.93 378.78 1,110.37 Residential 9547 Marion Avenue 349.93 366.93 378.78 1,095.64 Residential 11154 Marion Avenue 348.26 348.26 Residential
11336 Marquette Ln 271.91 385.07 656.98 Residential
11442 Marquette Ln 393.06 401.21 794.27 Residential
9595 Mills Avenue 394.01 396.28 408.81 1,199.10 Residential 10231 Mills Avenue 364.48 366.22 372.90 1,103.60 Residential 3796 Millstone Lane 362.10 362.10 Residential
11458 Millstone Lane 378.40 399.25 777.65 Residential
5239 Monte Verde Street 331.83 362.62 372.50 1,066.95 Residential 10290 Monte Vista Avenue 380.36 372.47 378.95 1,131.78 Senior 5616 Moreno Street 365.74 365.74 Residential
10163 Oak Glen Avenue 334.39 336.15 341.68 1,012.22 Senior 10594 Oak Glen Avenue 492.73 492.73 Residential
4595 Oakdale Street 335.29 363.01 372.55 1,070.85 Residential 4644 Olive Street 410.17 414.34 428.07 1,252.58 Residential 4771 Orchard Street 404.41 404.41 Residential
4779 Orchard Street 334.18 336.82 671.00 Senior
5032 Orchard Street 402.10 347.17 408.91 1,158.18 Residential 5171 Orchard Street 322.39 603.79 926.18 Senior
5422 Orchard Street 364.48 366.22 372.90 1,103.60 Residential 5690 Orchard Street 364.66 366.93 378.78 1,110.37 Residential 3765 Peachwood Drive 396.80 396.80 Residential
3971 Peachwood Drive 276.15 276.15 Residential
9633 Poulsen Avenue 500.90 0.00 500.90 Residential
9925 Poulsen Avenue 364.65 366.93 378.78 1,110.36 Residential 9935 Poulsen Avenue 360.64 404.89 765.53 Residential
10154 Poulsen Avenue 368.83 366.69 372.95 1,108.47 Residential 9375 Pradera Avenue 1,373.36 1,382.32 1,408.58 4,164.26 Multifamily 10074 Pradera Avenue 521.06 521.06 Residential
10206 Pradera Avenue 364.48 372.90 737.38 Residential
4426 Princeton Street 378.89 368.50 378.95 1,126.34 Residential 4467 Princeton Street 365.65 367.04 378.79 1,111.48 Residential 9060 Ramona Avenue 366.83 378.76 745.59 Residential
9587 Ramona Avenue 365.65 367.04 378.79 1,111.48 Residential 9706 Ramona Avenue 303.12 425.37 728.49 Residential
9801 Ramona Avenue 363.60 363.60 Senior
8981 Rose Avenue 271.91 385.07 656.98 Commercial
9413 Rose Avenue 423.34 425.63 438.84 1,287.81 Residential MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 91 of 173 Exhibit A to Resolution No. 23–3413
August 2023 – Property Assessments

Street No. Street Lien 1 Lien 2 Lien 3
Total
Assessment
Amount
Account Type
9434 Rose Avenue 364.66 366.93 378.78 1,110.37 Residential 9441 Rose Avenue 558.96 558.96 Residential
9734 Rose Avenue 410.72 410.72 Residential
9866 Rose Avenue 334.55 336.87 346.40 1,017.82 Senior
9966 Rose Avenue 364.64 364.64 Residential
4683 Rosewood Street 365.65 367.04 378.79 1,111.48 Residential 5361 Rosewood Street 364.66 366.93 378.78 1,110.37 Residential 11076 Roswell Avenue 398.06 398.06 Residential
11078 Roswell Avenue 271.91 271.91 Residential
4164 Rudisill Street 364.61 366.92 378.78 1,110.31 Residential 4245 Rudisill Street 363.97 366.86 378.78 1,109.61 Residential 4246 Rudisill Street 481.70 481.70 Residential
4300 Rudisill Street 331.59 331.59 Residential
4711 San Bernardino Street 364.66 366.93 378.78 1,110.37 Residential 4749 San Bernardino Street 364.64 366.92 523.32 1,254.88 Residential 4843 San Bernardino Street 348.63 348.63 Residential
4844 San Bernardino Street 394.04 396.28 790.32 Residential 5216 San Bernardino Street 364.09 366.87 378.78 1,109.74 Residential 5418 San Bernardino Street 346.12 346.12 Residential
5489 San Bernardino Street 399.62 322.82 406.79 1,129.23 Residential 5412 San Jose Street 572.40 389.78 962.18 Residential
5422 San Jose Street 394.04 396.28 408.81 1,199.13 Residential 4424 San Jose Street #05 364.52 366.91 378.78 1,110.21 Residential 4424 San Jose Street #10 364.97 364.97 Residential
4424 San Jose Street #18 479.74 391.18 870.92 Residential 4424 San Jose Street #27 364.66 366.93 378.78 1,110.37 Residential 4630 San Jose Street M 276.15 276.15 Residential
4622 San Jose Street O 398.90 398.90 Residential
4622 San Jose Street R 431.24 422.43 377.41 1,231.08 Residential 4622 San Jose Street U 276.15 276.15 Residential
11020 San Pasqual Avenue 364.48 366.22 372.90 1,103.60 Residential 9820 Santa Anita Avenue 365.91 365.91 Residential
10183 Santa Anita Avenue 525.86 416.93 942.79 Residential 10204 Santa Anita Avenue 492.73 492.73 Residential
10221 Santa Anita Avenue 518.95 389.71 908.66 Residential 10298 Santa Anita Avenue 540.98 540.98 Residential
10016 Santa Anita Avenue 334.92 334.92 Residential
11011 Stallion Avenue 364.97 366.27 411.41 1,142.65 Residential 4781 State Street 394.94 394.94 Residential
5134 Sundance Drive 382.73 395.15 777.88 Residential
9514 Surrey Avenue 386.76 386.76 Residential
9617 Surrey Avenue 364.66 366.93 378.78 1,110.37 Residential 9793 Surrey Avenue 348.23 376.72 724.95 Residential
9773 Tudor Avenue 393.99 393.99 Residential
10289 Tudor Avenue 364.48 366.22 372.90 1,103.60 Residential 10115 Vernon Avenue 482.69 379.22 374.33 1,236.24 Residential 10236 Vernon Avenue 482.69 379.22 374.33 1,236.24 Residential 10373 Via Palma 398.74 398.74 Residential
11043 Wesley Avenue 365.57 366.34 372.91 1,104.82 Residential 11053 Wesley Avenue 364.64 366.23 372.90 1,103.77 Residential 11178 Whitewater Avenue 364.41 366.21 372.90 1,103.52 Residential 4878 Yale Street 390.19 390.19 Residential
5405 Yale Street 380.33 368.65 378.97 1,127.95 Residential 4515 Yosemite Drive 364.48 366.22 664.75 1,395.45 Residential 207,488.60
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 92 of 173

CITY COUNCIL

AGENDA REPORT
DATE: AUGUST 7, 2023
SECTION: CONSENT - RESOLUTIONS
ITEM NO.: 2
FILE I.D.: EDD100/MHA100
DEPT.: ECONOMIC DEV./MHA
PREPARER: M. FUENTES
SUBJECT: CONSIDER ADOPTION OF RESOLUTION NO. 23–3416 DECLARING THAT CERTAIN REAL PROPERTY LOCATED AT 9729 RAMONA AVENUE, MONTCLAIR, IS EXEMPT SURPLUS LAND PURSUANT TO GOVERNMENT CODE SECTION 54221 AND FINDING

THAT SUCH DECLARATION IS EXEMPT FROM ENVIRONMENTAL REVIEW UNDER THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
CONSIDER ADOPTION OF RESOLUTION NO. 23–3417 APPROVING AGREEMENT NO. 23–59, AN AFFORDABLE HOUSING AGREEMENT WITH THE MONTCLAIR HOUSING AUTHORITY AND THE MONTCLAIR HOUSING CORPORATION; AUTHORIZING THE TRANSFER OF 9729 RAMONA AVENUE, MONTCLAIR, TO THE MONTCLAIR HOUSING

AUTHORITY FOR USE AS AFFORDABLE HOUSING UNITS
CONSIDER ADOPTION OF MHC RESOLUTION NO. 23–04 APPROVING AGREEMENT NO. 23–59, AN AFFORDABLE HOUSING AGREEMENT WITH THE CITY OF MONTCLAIR

AND THE MONTCLAIR HOUSING AUTHORITY
CONSIDER ADOPTION OF MHA RESOLUTION NO. 23–03 APPROVING AGREEMENT NO. 23–59, 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
CONSIDER AUTHORIZING A $20,000 APPROPRIATION FROM THE HOUSING TRUST FUND FOR REHABILITATION OF THE PROPERTY LOCATED AT 9729 RAMONA

AVENUE, MONTCLAIR
REASON FOR CONSIDERATION: Proposed Agreement No. 23–59 is an Affordable Housing Agreement between the City of Montclair (City), the Montclair Housing Authority (MHA), and the Montclair Housing Corporation (MHC) for the conveyance of real property located at 9729 Ramona Avenue and the subsequent leasing and operations of said property as affordable housing units.

Proposed City Council Resolution No. 23–3416 would declare the property as exempt surplus land pursuant to Government Code (GC) Section (§) 54221 and find that such declaration is exempt from environmental review under the California Environmental Quality Act.

Proposed City Council Resolution No. 23–3417 would approve entering into Agreement No. 23–59 and would authorize the transfer of Property from the City to the MHA.

Proposed MHC Resolution No. 23–04 would approve entering into Agreement No. 23–

59. Proposed MHA Resolution No. 23–03 would approve entering into Agreement No. 23–59 and accept the transfer of property from the City to the MHA.

A copy of the proposed resolutions and agreement are attached for review and consideration by the City Council, the MHA Commissioners, and the MHC Board.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 93 of 173 BACKGROUND: In June 1987, the former Redevelopment Agency (RDA) Board of Directors adopted the Central Avenue Single–family Acquisition Policy (Policy) authorizing staff to make purchase offers on single–family residences along the Central Avenue corridor, subject to the former Redevelopment Agency Board of Directors’ approval.

The Policy was later expanded to include areas along Central Avenue or in locations of high visibility. Pursuant to the Policy, a total of 17 single–family homes were purchased by the former RDA before its dissolution.

With the dissolution of redevelopment agencies in 2011 (AB 1X 26) and the California Supreme Court's decision in California Redevelopment Association v. Matosantos, the City Council elected to continue the former RDA’s policy of acquiring single–family residences along the Central Avenue corridor or in locations of high visibility and further expanded the Policy to included residences along all of the City's major corridors.

The properties formerly owned by the RDA were transferred to the Montclair Housing Authority (MHA), the successor housing entity, and are currently rented to low– to– moderate–income families and are managed by the Montclair Housing Corporation (MHC), a nonprofit public–benefit corporation organized for the purpose of increasing, improving, and preserving affordable housing in the City of Montclair.

The rents and other income from the MHC belong to the MHA; however, they are granted to the MHC for use in covering expenses of operating the various housing units. The amount of rents collected from the renters is established by the State Department of Housing and Community Development and varies based upon income levels.

Surplus Land Act
The California Surplus Land Act (SLA—GC §54220, et seq.) governs the disposition of surplus lands and requires local agencies to follow certain disposition procedures to provide opportunities for certain uses, including affordable housing development, on any land a local agency may sell, lease, or dispose of.

The SLA requires that a local agency declare land as either “surplus” or “exempt surplus” by an action of its legislative body, supported by written findings. Therefore, before the City can convey the Property to MHA, the City Council will need to determine that the conveyance of the Property to the MHA is "exempt surplus land," as that term is defined in the SLA.

If the Property is not exempt surplus land, the City would be required to advertise the availability of the property interest and engage in negotiations with parties interested in developing the property for housing, or open space uses.

Pursuant to §102(h) of the implementing regulations adopted by the California Department of Housing and Community Development (HCD Guidelines), the disposition of surplus lands means “the sale or lease of local agency–owned land formally declared surplus.” The Property is not subject to sale or lease and therefore is not subject to the SLA.

Pursuant to the Surplus Land Act, specifically GC §54221(f)(1)(D), and HCD Guidelines, "exempt surplus land" includes “surplus land that a local agency is transferring to another local, state or federal agency for the agency’s use.” The City and the MHA are considered local agencies; accordingly, a transfer of the Property by the City to MHA would constitute a transfer of exempt surplus land from one local agency to another and satisfy the requirements of this exemption.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 94 of 173 Proposed City Council Resolution No. 23–3416 would declare the property located at 9729 Ramona Avenue, Montclair, as exempt surplus land pursuant to GC §54221(f)(1)(D) and find that such declaration is exempt from environmental review under the California Environmental Quality Act.

Upon approval of Resolution No. 23–3416, staff would be required to notify HCD of the City’s declaration of the property as exempt surplus land and wait a period of thirty days prior to the disposition and transfer of the Property to the MHA.

Agreement No. 23–59 Affordable Housing Agreement
In order to meet the City's Regional Housing Needs Assessment (RHNA), a representation of future housing needs for all income levels in a region, staff recommends the property be operated as a rental unit made available to low– to moderate–income persons. As such, staff has prepared Agreement No. 23–59, an affordable housing agreement by and between the City, MHA, and MHC.

Proposed Agreement No. 23–59 contains language related to the conveyance of the property, compliance with applicable laws, use of the property, remedies, and general provisions. The more salient points of proposed Agreement No. 23–59 relate to the conveyance of fee title of the property from the City to the MHA and leasing of the property from the MHA to the MHC for the day–to–day operation of the property, as well as the rehabilitation and rental of the property to low– to moderate–income persons. 9729 Ramona Avenue
The subject property is located on a highly visible and desirable portion of Ramona Avenue between Benito Street and San Bernardino Street, thereby meeting the criteria established in the City Council's Policy to acquire properties along the City's major corridors and areas of high visibility.

The property was built in 1984 and the lot size is 10,595 square feet. The dwelling unit includes three bedrooms and two bathroom and is 1,639 square feet.

Staff is recommending several improvements to the residential unit related to general property clean–up including: minor painting, landscaping, and fence replacement.

FISCAL IMPACT: Approval of Agreement No. 23–59 would produce no fiscal impact to the City of Montclair General Fund.

Staff is recommending an allocation of $20,000 from the Housing Trust Fund in order to cover estimated costs for rehabilitation of the property.

RECOMMENDATION: Staff recommends that the City Council take the following actions:

1. Adopt Resolution No. 23–3416 declaring that certain real property located at 9729 Ramona Avenue, Montclair, is exempt surplus land pursuant to Government Code Section 54221 and finding that such declaration is exempt from environmental review under the California Environmental Quality Act;

2. Adopt Resolution No. 23–3417 approving Agreement No. 23–59, an Affordable Housing Agreement with the Montclair Housing Authority and Montclair Housing Corporation; authorizing transfer of certain real property located at 9729 Ramona Avenue, Montclair, to the Montclair Housing Authority for use as affordable housing units; and
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 95 of 173 Staff recommends that the Montclair Housing Corporation Board of Directors adopt Resolution. No. 23–04 approving Agreement No. 23–59, an Affordable Housing Agreement with the City of Montclair and the Montclair Housing Authority.

Staff recommends that the Montclair Housing Authority Commissioners take the following actions:

1. Adopt Resolution No. 23–03 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 from the City of Montclair to the Montclair Housing Authority.

2. Authorize a $20,000 appropriation from the Housing Trust Fund for rehabilitation of the property located at 9729 Ramona Avenue, Montclair.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 96 of 173 Resolution No. 23–3416 Page 1 of 3
RESOLUTION NO. 23–3416

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MONTCLAIR PURSUANT TO GOVERNMENT CODE SECTION
54221 DECLARING THAT CERTAIN REAL PROPERTY
LOCATED AT 9729 RAMONA AVENUE IS EXEMPT SURPLUS

LAND, AND FINDING THAT SUCH DECLARATION IS EXEMPT

FROM ENVIRONMENTAL REVIEW UNDER THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
WHEREAS, the City of Montclair (the "City") acquired property located at 9729, Ramona Avenue (APN 1009–241–43–0000), as more particularly described in Exhibit A, attached hereto and incorporated herein by reference (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, the Surplus Land Act, Government Code sections 54220 et seq. (the “Act”) applies when a local agency disposes of “surplus land,” which is defined in the Act as “land owned in fee simple by any local agency for which the local agency’s governing body takes formal action in a regular public meeting declaring that the land is surplus and is not necessary for the agency’s use.” (Government Code section 54221(b)(1)); and
WHEREAS, the Act expressly does “not apply to the disposal of exempt surplus land.” (Government Code section 54222.3); and
WHEREAS, under the Act, “exempt surplus land” includes land that a local agency is transferring to another local, state, or federal agency for the transferee agency’s use. (Government Code section 54221(f)(1)(D)); and
WHEREAS, the Act requires local agencies such as the City to declare certain real property they own as either “surplus land” or “exempt surplus land,” as supported by written findings, prior to any disposition of the real property; 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 City desires to transfer the Property to the Housing Authority, which is a “local agency” under the Act, and upon acquiring of the Property, the Housing Authority intends to ensure the Property, which already contains pre–existing constructed housing unit(s) and does not require development, is utilized as an affordable rental housing resources for low– to moderate–income households; and WHEREAS, the City Council has reviewed this Resolution and now desires to declare the Property as exempt surplus land under the Act, based on the findings and justifications contained in this Resolution.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Montclair 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 and findings of the City Council.

SECTION 2: The City Council hereby declares that the Property is exempt from the Act as exempt surplus land pursuant to Government Code section 54221(f)(1)(D), based on the findings contained in this Resolution for the Property, namely that the City intends to transfer the Property to the Housing Authority, another local agency, for the Housing Authority’s purposes of maintaining affordable rental housing.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 97 of 173 Resolution No. 23–3416 Page 2 of 3

SECTION 3: This Resolution has been reviewed with respect to the applicability of the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) (“CEQA”). City staff has determined that the designation of the Property as exempt surplus does not have the potential for creating a significant effect on the environment and is therefore exempt from further review under CEQA pursuant to State CEQA Guidelines Section 15060(c)(3), because it is not a project as defined by the CEQA Guidelines, Section 15378. Adoption of the Resolution, in and of itself, does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.

SECTION 4: The City Manager or designee is hereby authorized and directed to send a copy of this Resolution to the California Department of Housing and Community Development in accordance with the requirements of Section 400(e) of the SLA Guidelines.

SECTION 5: If any section, subsection, paragraph, sentence, clause or phrase of this Resolution is declared by a court of competent jurisdiction to be unconstitutional or otherwise invalid, such decision shall not affect the validity of the remaining portions of this Resolution.

SECTION 6: The City Clerk shall certify to the adoption of this Resolution.

APPROVED AND ADOPTED this XX day of XX, 2023.

Mayor
ATTEST:

City Clerk
I, Andrea M. Myrick, City Clerk of the City of Montclair, DO HEREBY CERTIFY that Resolution No. 23–3416 was duly adopted by the Montclair City Council 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
City Clerk

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 98 of 173 Resolution No. 23–3416 Page 3 of 3

EXHIBIT A

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 99 of 173 Resolution No. 23–3417 Page 1 of 3
RESOLUTION NO. 23–3417

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MONTCLAIR APPROVING AGREEMENT NO. 23–27, AN

AFFORDABLE HOUSING AGREEMENT BY AND BETWEEN THE

CITY OF MONTCLAIR, MONTCLAIR HOUSING AUTHORITY,
AND MONTCLAIR HOUSING CORPORATION; AUTHORIZING
TRANSFER OF CERTAIN REAL PROPERTIES LOCATED AT 9729

RAMONA AVENUE FROM THE CITY OF MONTCLAIR TO THE
MONTCLAIR HOUSING AUTHORITY; AND DECLARING SUCH

REAL PROPERTIES TO BE EXEMPT SURPLUS LAND
WHEREAS, the City of Montclair (the "City") acquired property located at 9729, Ramona Avenue (APN 1009–241–43–0000), as more particularly described in Exhibit A, attached hereto and incorporated herein by reference (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 those Property within the corporate limits of the City of Montclair; and
WHEREAS, the Surplus Land Act, Government Code sections 54220 et seq. (the “Act”) applies when a local agency disposes of “surplus land,” which is defined in the Act as “land owned in fee simple by any local agency for which the local agency’s governing body takes formal action in a regular public meeting declaring that the land is surplus and is not necessary for the agency’s use.” (Government Code section 54221(b)(1)); and
WHEREAS, the Act expressly does “not apply to the disposal of exempt surplus land.” (Government Code section 54222.3); and
WHEREAS, under the Act, “exempt surplus land” includes land that a local agency is transferring to another local, state, or federal agency for the transferee agency’s use. (Government Code section 54221(f)(1)(D)); and
WHEREAS, the Act requires local agencies such as the City to declare certain real property they own as either “surplus land” or “exempt surplus land,” as supported by written findings, prior to any disposition of the real property; 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 City desires to transfer the Property to the Housing Authority, which is a “local agency” under the Act, and upon acquiring of the Property, the Housing Authority intends to ensure the Property, which already contains pre–existing constructed housing unit(s) and does not require development, is utilized as an affordable rental housing resources for low– to moderate–income households; and WHEREAS, the City Council has declared the Property as exempt surplus land under the Act, based on the findings and justifications contained in Resolution No. 23– 3416; 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 mutli–family residential units of the Housing Authority; and WHEREAS, no development of the Property is contemplated; 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 MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 100 of 173 Resolution No. 23–3417 Page 2 of 3
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 City Council of the City of Montclair 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 City of Montclair 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 City of Montclair 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 City of Montclair agrees to the transfer of the Property to the Montclair Housing Authority. The City Manager, or designee, is authorized to record the grant deeds and further actions that are necessary or appropriate to transfer the Properties to the Montclair Housing Authority.

SECTION 5: The City Clerk shall certify to the adoption of this Resolution.

APPROVED AND ADOPTED this XX day of XX, 2023.

Mayor
ATTEST:

City Clerk
I, Andrea M. Myrick, City Clerk of the City of Montclair, DO HEREBY CERTIFY that Resolution No. 23–3417 was duly adopted by the Montclair City Council 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
City Clerk

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 101 of 173 Resolution No. 23–3417 Page 3 of 3

EXHIBIT A

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 102 of 173

AFFORDABLE HOUSING AGREEMENT
by and among the

MONTCLAIR HOUSING AUTHORITY
and the

CITY OF MONTCLAIR
and the

MONTCLAIR HOUSING CORPORATION
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 103 of 173 Agreement No. 23-59
i

TABLE OF CONTENTS

1. DEFINITIONS .......................................................................................................................... 1

2. CONVEYANCE OF THE PROPERTY ................................. Error! Bookmark not defined.

2.1 Conveyance of Fee Title ............................................................................................... 2

2.2 Lease Terms .................................................................................................................. 3

2.3 Conditions Precedent to Commencement of Lease ...................................................... 3

3. COMPLIANCE WITH LAWS ................................................................................................. 3

4. USE OF THE PROPERTY ....................................................................................................... 3

4.1 Use In Conformance with Agreement .......................................................................... 3

4.2 Affordable Rental Housing ........................................................................................... 4

4.3 Occupancy Standards .................................................................................................... 5

4.4 Management and Maintenance ..................................................................................... 5

4.5 Rights of Access ........................................................................................................... 6

4.6 Nondiscrimination ......................................................................................................... 7

4.7 Effect of Violation of the Terms and Provisions of this Agreement After Completion of Construction .......................................................................................... 8

5. REMEDIES ............................................................................................................................... 8

5.1 Events of Default .......................................................................................................... 8

5.2 Remedies ....................................................................................................................... 8

5.3 Force Majeure ............................................................................................................... 8

5.4 Attorneys’ Fees ............................................................................................................. 9

5.5 Remedies Cumulative ................................................................................................... 9

5.6 Waiver of Terms and Conditions .................................................................................. 9

5.7 Non-Liability of Authority Officials and Employees ................................................... 9

6. GENERAL PROVISIONS ........................................................................................................ 9

6.1 Time .............................................................................................................................. 9

6.2 Notices .......................................................................................................................... 9

6.3 Representations and Warranties of Operator .............................................................. 10

6.4 Limitation Upon Change in Ownership, Management and Control of Operator ........ 10

6.5 No Third Parties Benefited ......................................................................................... 11

6.6 Partial Invalidity .......................................................................................................... 11

6.7 Governing Law ........................................................................................................... 11

6.8 Amendment ................................................................................................................. 11

6.9 Approvals .................................................................................................................... 11 ATTACHMENT NO. 1 – LEGAL DESCRIPTION
ATTACHMENT NO. 2 – LEASE
ATTACHMENT NO. 3 – CITY DEED
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 104 of 173

AFFORDABLE HOUSING AGREEMENT
THIS AFFORDABLE HOUSING AGREEMENT (the “Agreement”) is hereby entered into as of September 7, 2023 (the “Date of Agreement”), by and among the CITY OF MONTCLAIR, a California municipal corporation (the “City”), the MONTCLAIR HOUSING AUTHORITY, a public body, corporate and politic (the “Authority”), the and MONTCLAIR HOUSING CORPORATION, a California nonprofit public benefit corporation (the “Operator”).

RECITALS
A. Authority is a housing authority duly established and operating as a local housing authority pursuant to the California Housing Authority Law, Chapter 1 of Part 2 of Division 24 of the California Health and Safety Code (“Housing Authority Law” or “HAL”).

B. City is the owner of that certain property located within the corporate limits of the City of Montclair, located at 9729 Ramona Avenue, Montclair, California (the “Property” or “House”). The Property is further described in the Legal Description which is attached hereto as Attachment No. 1.

C. City desires to convey to Authority the Property and Authority desires to acquire the Property from the City as provided herein.

D. Upon acquiring the Property, Authority intends to lease the Property to the Operator for the operation of the Property as an affordable rental housing resources for households of “Low Income” as defined below.

E. The transaction contemplated by this Agreement is in the vital and best interest of the City and the health, safety and welfare of its residents, and in accord with the public purposes and provisions of applicable state and local laws and requirements.

NOW, THEREFORE, the parties hereto agree as follows:

1. DEFINITIONS. The following terms shall have the following definitions for the purpose of this Agreement:
“Additional Rent” is defined in Section 2.2 hereof.
“Affordable Rent” is defined in Section 4.2(f) hereof.
“Authority” means the Montclair Housing Authority, a public body, corporate and politic, exercising governmental functions and powers and organized and existing under the Housing Authority Law of the State of California, and any assignee of or successor to its rights, powers and responsibilities.
“Agreement” means this Affordable Housing Agreement among Authority, City, and Operator.
“Authority Executive Director” means the Executive Director of the Authority or his or her designee.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 105 of 173 Agreement No. 23-59
2 “City” means the City of Montclair, California, a California municipal corporation. “City Code” means and refers to the City of Montclair Municipal Code as revised from time to time.
“City Deed” means a grant deed substantially in the form of Attachment No. 3. “Date of Agreement” is defined in the first paragraph of this Agreement. “Event of Default” means the failure of a party to perform any action or covenant required by this Agreement within the time periods provided herein following notice and opportunity to cure, as set forth in Section 5.1 hereof.
“House” means the single family home which islocated on and constitutes part of the Property. “Housing Authority Law” or “HAL” has the meaning set forth therefor in Recital A. “Low Income Household” shall mean a household earning not greater than eighty percent (80%) of San Bernardino County median income as determined pursuant to Health and Safety Code Section 50079.5.
“Net Profits” shall mean all gross income from the Property, including without limitation rents and interest on security deposits, less the sum of the Operating Expenses. “Operating Expenses” shall mean actual, reasonable and customary costs, fees and expenses directly incurred and attributable to the operation, maintenance, and management of the Property. The Operating Expenses shall not include non-cash expenses, including without limitation, depreciation. “Operator” means the Montclair Housing Corporation, a California nonprofit public benefit corporation.
“Parties” means, collectively, City, Authority, and Operator. “Property” means the single family house in the City of Montclair located at 9729 Ramona Avenue, Montclair, California, and described in the Legal Descriptions. “Property Value” means the amount of Seven Hundred Thousand Dollars ($700,000). The Property’s Value is mutually believed to be by each of the Parties to represent the fair market value of the Property as of the Date of Agreement.

2. CONVEYANCE OF THE PROPERTY.

2.1 Conveyance of Fee Title. City agrees to convey to Authority the Property by City Deed. The purchase price payable by Authority to City in consideration of the conveyance of the Property shall be One Dollar ($1.00) (the “Authority Purchase Price”); provided that City may waive receipt of Authority Purchase Price. Upon request therefor by Authority, City will, in connection with the conveyance of the Property, provide to Authority an owner’s standard ALTA policy of title insurance as to the Property by a title insurer mutually acceptable to City and Authority, with the policy to be based upon the Property Value (the “Authority Title Policy”). Any and all documentary transfer MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 106 of 173 3 taxes, recording fees, escrow charges, premiums for title insurance, and any costs associated with the conveyance of the Property to Authority shall be borne by City.

2.2 Lease Terms. Subject to the satisfaction of all of the conditions precedent to commencement of the Lease set forth in Section 2.3 hereof, the Authority shall lease the Property to the Operator for a fifteen (15) year term at a base rental amount of One Dollar ($1.00) per year together with the “Additional Rent” as set forth below. The terms and conditions of such lease shall be set forth in a “Lease” to be executed by the Authority and the Operator in the form of Attachment No. 2 which is attached hereto and incorporated herein.

At the end of each operating year, the Operator shall calculate total gross operating revenue for that year, and shall thereupon pay to the Authority as “Additional Rent” an amount equal to Net Profits, which equals total gross operating revenue less the Operating Expenses for that year. If total gross revenue from the Property for that year is less than the Operating Expenses, no Additional Rent shall be payable and the Operator shall be responsible for such additional costs from its own funds, and shall not be entitled to additional compensation from the Authority or be entitled to reduce the required level of services. The Authority and its authorized representatives shall, at all times, have access for the purpose of audit or inspection to any and all books, documents, papers, records, property, and premises of the Operator which in any manner relate to the expenses and revenues of the Property under this Agreement and the Operator’s obligations hereunder. The Operator’s staff shall cooperate fully with authorized auditors when they conduct audits and examinations of Authority funded programs. Within thirty (30) days of the submittal of such audit report, the Operator shall provide a written response to all conditions or findings reported in such audit report. The response must discuss each condition or finding and set forth a proposed resolution, including a schedule for correcting any deficiency. All conditions or correction actions shall take place within six (6) months after receipt of the audit report unless the Authority Executive Director or designee authorizes an extension of time to submit such corrections.

2.3 Conditions Precedent to Commencement of Lease. Prior to and as conditions to the Authority’s execution of and the commencement of the Lease: (i) City shall have conveyed the titles of the Property to Authority; (ii) if requested by Authority, City shall have caused to be delivered to Authority the Authority Title Policy; (iii) Operator shall have executed the Lease; and (iv) Operator shall have provided proof of insurance (certificates) conforming to Section 3.7 of this Agreement.

3. COMPLIANCE WITH LAWS. Operator shall carry out the operation of the Property in conformity with all applicable laws, including all applicable state labor standards, City zoning and development standards, building, plumbing, mechanical and electrical codes, and all other provisions of the City Code, and all applicable disabled and handicapped access requirements, including without limitation the Americans With Disabilities Act, 42 U.S.C. Section 12101, et seq., Government Code Section 4450, et seq., Government Code Section 11135, et seq., and the Unruh Civil Rights Act, Civil Code Section 51, et seq.

4. USE OF THE PROPERTY.

4.1 Use in Conformance with Agreement. The Operator covenants and agrees for itself, its successors, its assigns and every successor in interest to the Property or any part thereof that, during the term of this Agreement, the Operator, such successors and such assignees, shall use, MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 107 of 173 4 operate and maintain the Property in conformity with this Agreement and shall devote the Property to the uses specified in this Agreement for the periods of time specified therein.

4.2 Affordable Rental Housing.
(a) Number of Units. Upon the commencement of the Lease, the Operator agrees to make available, restrict occupancy to, and rent the House to Low Income Households, at an Affordable Rent.
(b) Lease Requirements. Prior to rental of the House within the Property, the Operator shall submit a standard lease form to the Authority for the Authority’s approval. The Authority Executive Director, or designee, shall reasonably approve such lease form upon finding that such lease form is consistent with this Agreement. The Operator shall enter into a lease, in the form approved by the Authority, with each tenant of the House. (c) Duration of Affordability Requirements. The House shall be subject to the requirements of this Section 4.2 for a period coextensive with the term of the Lease. 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 at least once every six (6) months of the expiration date of this requirement, and that the rent payable on the House may be raised to a market rate rent at the end of the Affordability Period. (d) Selection of Tenants. The House shall be leased to tenants selected by the Operator 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 Operator names of persons who have expressed interest in renting the House. The Operator shall adopt a tenant selection system, which shall be approved by the Authority Executive Director, or designee. 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. (e) Income of Tenants. Prior to the rental or lease of the House to tenants, and annually thereafter, the Operator shall obtain an income certification from each tenant of the Property. The Operator shall verify the income certification of the tenant in one or more of the following methods:
(1) obtain two (2) paycheck stubs from the tenant’s two (2) most recent pay periods, if any.
(2) obtain a true copy of an income tax return from the tenant for the most recent tax year in which a return was filed.
(3) obtain an income verification certification from the employer of the tenant.
(4) 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.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 108 of 173 5 (5) obtain a credit report from a commercial credit reporting agency. (6) obtain an alternate form of income verification reasonably requested by the Operator, if none of the above forms of verification is available to the Operator.

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 Operator 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 Operator’s determination that the tenant is no longer qualified as a Low Income Household, such tenant shall no longer be eligible to rent such House and shall be given a written notice which requires such tenant to vacate the House within sixty (60) days, and the Operator 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 Operator shall annually submit to the Authority a certification that the House are actually occupied by a Low Income Household in the form which is provided by the Authority.
(f) 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 House shall be established at not greater than 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 House or, if greater, the amount determined pursuant to Health and Safety Code section 50053(b)(3). For purposes of this Section 4.2, “rent” means the total of monthly payments for (a) use and occupancy of the House and land and facilities associated therewith, (b) any separately charged fees or service charges assessed by the Operator which are required of all tenants, other than security deposits, (c) a reasonable allowance for an adequate level of service of utilities not included in (a) or (b) above, including garbage collection, sewer, water, electricity, gas and other heating, cooking and refrigeration fuels, but not including telephone service, and (d) possessory interest, taxes or other fees or charges assessed for use of the land and facilities associated therewith by a public or private entity other than Operator. 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. 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. Upon the approval of the Authority or the Authority Executive Director, rents may be established at amounts which are lower than the maximum monthly rental amounts set forth above.

4.3 Occupancy Standards. Occupancy of the House shall be limited to five (5) persons.

4.4 Management and Maintenance. The Operator shall manage and maintain the Property in conformity with the City Code. The following standards shall be complied with by Operator and its maintenance staff, contractors or subcontractors:
(a) Operator shall maintain the Property in a safe and sanitary fashion and in first class condition for single family houses of their age and type.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 109 of 173 6 (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, and in strict accordance with all governing regulations. Precautionary measures shall be employed recognizing that all areas are open to public access. (f) Operator 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 Operator to and the Operator shall hire a management company acceptable to the Authority to manage the Properties.

If, at any time, the Operator 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 Operator shall pay such costs as are reasonably incurred for such maintenance.

4.5 Rights of Access. The Authority, for itself and for the City and other public agencies, at their sole risk and expense, shall have the right to inspect the Properties. Any such inspection shall be made only after reasonable notice to Operator. Upon receipt of such notice, the Operator agrees to cooperate with the Authority in making the Property available for inspection by the Authority and/or City. Operator acknowledges and agrees that in the event that if for any reason the MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 110 of 173 7 Operator fails to consent to such entry or inspection, the Authority may obtain an administrative inspection warrant or take such other legal actions as may be necessary to gain entry to and inspect the Properties. Authority shall indemnify and hold Operator harmless from any costs, claims, damages or liabilities pertaining to any entry.

4.6 Nondiscrimination. The Operator covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Properties, nor shall Operator itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Site or any portion thereof. The foregoing covenants shall run with the land.

The Operator shall refrain from restricting the rental, sale or lease of the Property on the basis of race, color, creed, religion, sex, marital status, disability, familial status, national origin or ancestry of any person. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses:
(a) In deeds: “The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land.”
(b) In leases: “The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions:
“That there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased.”
(c) In contracts: “There shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 111 of 173 8 Code, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises subject to this agreement nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the premises.”
The covenants established in this Agreement and the Lease for the Property shall, without regard to technical classification and designation, be binding for the benefit and in favor of the Authority, its successors and assigns, the City and any successor in interest to the Properties. The covenants against discrimination shall remain in effect in perpetuity. However, nothing in this Section 4.6 shall give the Operator any additional rights to convey a fee or leasehold interest in the Property except as otherwise authorized by this Agreement.

4.7 Effect of Violation of the Terms and Provisions of this Agreement After Completion of Construction. The covenants established in this Agreement shall, without regard to technical classification and designation, be binding upon and for the benefit and in favor of the Operator and the Authority, their respective successors and assigns, as to those covenants which are for their benefit. The covenants contained in this Agreement shall remain in effect until the expiration of the Affordability Period. The covenants against discrimination shall remain in perpetuity. The Authority is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own rights and for the purposes of protecting the interests of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided. The Agreement and the covenants shall run in favor of the Authority, without regard to whether the Authority has been, remains or is an owner of any land or interest therein in the Properties. The Authority shall have the right, if the Agreement or covenants are breached, to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which it or any other beneficiaries of this Agreement and covenants may be entitled.

5. REMEDIES.

5.1 Events of Default. An “Event of Default” shall occur under this Agreement when there shall be a material breach of any condition, covenant, warranty, promise or representation contained in this Agreement and such breach shall continue for a period of thirty (30) days after written notice thereof to the defaulting party without the defaulting party curing such breach, or if such breach cannot reasonably be cured within such thirty (30) day period, commencing the cure of such breach within such thirty (30) day period and thereafter diligently proceeding to cure such breach; provided, however, that if a different period or notice requirement is specified for any particular breach under any other paragraph of this Agreement, the specific provision shall control.

5.2 Remedies. The occurrence of any Event of Default shall give the nondefaulting party the right to proceed with any and all remedies set forth in this Agreement, including an action for damages, an action or proceeding at law or in equity to require the defaulting party to perform its obligations and covenants under this Agreement or to enjoin acts or things which may be unlawful or in violation of the provisions of this Agreement, and the right to terminate this Agreement.

5.3 Force Majeure. Subject to the party’s compliance with the notice requirements as set forth below, performance by either party hereunder shall not be deemed to be in default, and all performance and other dates specified in this Agreement shall be extended, where MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 112 of 173 9 delays or defaults are due to war, insurrection, strikes, lockouts, riots, floods, earthquakes, fires, assaults, acts of God, acts of the public enemy, epidemics, pandemics, quarantine restrictions, freight embargoes, lack of transportation, governmental restrictions or priority, litigation, unusually severe weather, inability to secure necessary labor, materials or tools, acts or omissions of the other party, acts or failures to act of any public or governmental entity (except that the Authority’s acts or failure to act shall not excuse performance of the Authority hereunder), or any other causes beyond the control and without the fault of the party claiming an extension of time to perform. An extension of the time for any such cause shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause, if notice by the party claiming such extension is sent to the other party within thirty (30) days of the commencement of the cause.

In addition to the foregoing, following the acquisition of the Property by Authority, the Authority Executive Director shall have the authority to extend times for performance by up to one hundred eighty (180) days in the aggregate without necessity of further action by the governing board of the Authority.

5.4 Attorneys’ Fees. In addition to any other remedies provided hereunder or available pursuant to law, if either party brings an action or proceeding to enforce, protect or establish any right or remedy hereunder, the prevailing party shall be entitled to recover from the other party its costs of suit, including without limitation expert witness fees, and reasonable attorneys’ fees.

5.5 Remedies Cumulative. No right, power, or remedy given to the Authority by the terms of this Agreement is intended to be exclusive of any other right, power, or remedy; and each and every such right, power, or remedy shall be cumulative and in addition to every other right, power, or remedy given to the Authority by the terms of any such instrument, or by any statute or otherwise against Operator and any other person.

5.6 Waiver of Terms and Conditions. The Authority may, in its sole discretion, waive in writing any of the terms and conditions of this Agreement. Waivers of any covenant, term, or condition contained herein shall not be construed as a waiver of any subsequent breach of the same covenant, term, or condition.

5.7 Non-Liability of Authority Officials and Employees. No member, official, employee or agent of the City or Authority shall be personally liable to Operator, or any successor in interest, in the event of any default or breach by the Authority or for any amount which may become due to Operator or its successors, or on any obligations under the terms of this Agreement.

6. GENERAL PROVISIONS.

6.1 Time. Time is of the essence in this Agreement.

6.2 Notices. Any notice requirement set forth herein shall be deemed to be satisfied three (3) days after mailing of the notice first-class United States certified mail, postage prepaid, or by personal delivery, addressed to the appropriate party at the following addresses:

Authority: Montclair Housing Authority
5111 Benito Street
Montclair, California 91763
Attention: Executive Director
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 113 of 173 10 Lessee: Montclair Housing Corporation
5111 Benito Street
Montclair, California 91763
Attention: Executive Director
City: City of Montclair
5111 Benito Street
Montclair, California 91763
Attention: City Manager

6.3 Representations and Warranties of Operator. Operator hereby represents and warrants to the Authority as follows:
(a) Organization. Operator is a duly organized, validly existing nonprofit corporation in good standing under the laws of the State of California and has the power and authority to own its property and carry on its business as now being conducted. (b) Authority of Operator. Operator has full power and authority to execute and deliver this Agreement and to make and accept the borrowings contemplated hereunder, to execute and deliver the documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement, and to perform and observe the terms and provisions of all of the above.
(c) Valid Binding Agreement. This Agreement and all other documents or instruments which have been executed and delivered pursuant to or in connection with this Agreement constitute or, if not yet executed or delivered, will when so executed and delivered constitute, legal, valid and binding obligations of Operator enforceable against it in accordance with their respective terms.
(d) Pending Proceedings. Operator is not in default under any law or regulation or under any order of any court, board, commission or agency whatsoever, and there are no claims, actions, suits or proceedings pending or, to the knowledge of Operator, threatened against or affecting Operator, at law or in equity, before or by any court, board, commission or agency whatsoever which might, if determined adversely to Operator, materially affect Operator’s ability to perform its obligations hereunder.

6.4 Limitation Upon Change in Ownership, Management and Control of Operator.
(a) Prohibition. The identity and qualifications of Operator are of particular concern to the Authority. It is because of this identity and these qualifications that the Authority has entered into this Agreement with Operator. No voluntary or involuntary successor in interest of Operator shall acquire any rights or powers under this Agreement by assignment or otherwise, nor shall Operator make any total or partial sale, transfer, conveyance, encumbrance to secure financing, assignment or lease of the whole or any part of the Property without the prior written approval of the Authority, which approval may be granted, conditionally granted, or denied at the sole and absolute discretion of the Authority Executive Director; provided that the rental of the Property by Operator to a Low Income household at Affordable Rent in conformity with the Lease shall not require the specific approval by the Authority Executive Director.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 114 of 173 11 (b) Successors and Assigns. This Agreement shall run with the land, and all of the terms, covenants and conditions of this Agreement shall be binding upon Operator and the permitted successors and assigns of Operator. Whenever the term “Operator” is used in this Agreement, such term shall include any other permitted successors and assigns as herein provided.

6.5 No Third Parties Benefited. This Agreement is made and entered into for the sole protection and benefit of the Authority, its successors and assigns, City, successors and assigns, and Operator, its permitted successors and assigns, and no other person or persons shall have any right of action hereon.

6.6 Partial Invalidity. If any provision of this Agreement shall be declared invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions hereof shall not in any way be affected or impaired.

6.7 Governing Law. This Agreement and other instruments given pursuant hereto shall be construed in accordance with and be governed by the laws of the State of California. Any references herein to particular statutes or regulations shall be deemed to refer to successor statutes or regulations, or amendments thereto.

6.8 Amendment. This Agreement may not be changed orally, but only by agreement in writing signed by Operator and the Authority.

6.9 Approvals. Where an approval or submission is required under this Agreement, such approval or submission shall be valid for purposes of this Agreement only if made in writing. Where this Agreement requires an approval or consent of the Authority, such approval may be given on behalf of the Authority by the Authority Executive Director or his or her designee. The Authority Executive Director or his or her designee is hereby authorized to take such actions as may be necessary or appropriate to implement this Agreement, including without limitation the execution of such documents or agreements as may be contemplated by this Agreement. The Authority Executive Director is authorized to execute amendments of this Agreement so long as such amendments do not materially increase the costs to be incurred by the Authority hereunder or materially decrease the revenues to be received by the Authority hereunder.

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 115 of 173 S-1
IN WITNESS WHEREOF, the Authority, City, and the Operator have executed this Agreement as of the date set forth above.

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

Authority Executive Director

CITY OF MONTCLAIR,
a municipal corporation
By:

City Manager

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

Its:

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 116 of 173 Attachment No. 1

ATTACHMENT NO. 1

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

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 117 of 173 Attachment No. 2

ATTACHMENT NO. 2
LEASE
By and Between

THE MONTCLAIR HOUSING AUTHORITY
and

MONTCLAIR HOUSING CORPORATION
MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 118 of 173 Attachment No. 2

LEASE
THIS LEASE (the “Lease”) is made as of September 7, 2023, by and between the MONTCLAIR HOUSING AUTHORITY, a public body, corporate and politic (the “Authority” or “Lessor”), and MONTCLAIR HOUSING CORPORATION, a California nonprofit public benefit corporation (the “Operator” or “Lessee”).

SECTION 1. SUBJECT OF LEASE.

1.1 Purpose of the Lease. The purpose of this Lease is to effectuate the Affordable Housing Agreement by and among the Authority, the City of Montclair, a municipal corporation (the “City”), and the Operator dated September 7, 2023 (the “Agreement”), by providing for the lease of the “Properties” (as hereinafter defined) within the City of Montclair to Lessee and the sublease of the Property to Low Income Persons. The Agreement, which is available in the offices of the Authority as a public record, is incorporated herein by reference and made a part hereof as though fully set forth herein.

SECTION 2. LEASE OF THE PROPERTIES.

The Authority, for and in consideration of the rents, covenants and agreements hereinafter reserved and contained on the part of Lessee to be paid, kept, performed and observed by Lessee, hereby leases to Lessee, and Lessee hereby leases from Authority, that certain real property consisting of single family house in the City of Montclair (the “City”) located at 9729 Ramona Avenue (the “House”), and having the legal description in the “Legal Description” attached hereto as Exhibit A and incorporated herein by this reference. Except as expressly provided to the contrary in this Lease, reference to the Property is to the described land, inclusive of any improvements now or hereafter located on the land.

SECTION 3. LEASE TERM.

Lessee shall lease the Property from Authority and Authority shall lease the Property to Lessee for a term commencing on September 07, 2023 (the “Commencement Date”) and continuing until [September 07, 2038] (the “Term”), unless sooner terminated as provided for herein. The term “Lease Year” shall mean a period commencing on the Commencement Date or an anniversary thereof and continuing for one full calendar year thereafter.

SECTION 4. USE OF THE PROPERTIES.

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

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

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

MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 119 of 173 Attachment No. 2

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

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

SECTION 5. RENT.

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

5.2 Rent.
(A) During the Term of this Lease, Lessee agrees to pay in advance, on the Commencement Date and thereafter on the first day of each “Lease Year” (as hereinafter defined), rent in the amount of One Dollar ($1.00) per house. The parties understand and acknowledge that the primary consideration for this Lease is the performance of the covenants set forth in this Lease and the Agreement, particularly (without limitation, however) the covenants to rent the units to low- and moderate income tenants at an affordable rent pursuant to Section 6 hereof and Section 4.2 of the Agreement. As used herein, a “Lease Year” shall consist of twelve (12) consecutive calendar months ending on the anniversary (the “Anniversary Date”) of the day immediately preceding the Commencement Date.
(B) During the Term of this Lease, Lessee agrees to pay at the end of each Lease Year the “Additional Rent,” as herein defined. At the end of each Operating Year, the Lessee shall calculate total gross operating revenue for that year, and shall thereupon pay to the Authority as “Additional Rent” an amount equal to total gross operating revenue less the operating costs for that year. If total gross operating revenue for that year is less than operating costs, no Additional Rent shall be payable and the Lessee and the Authority shall negotiate in good faith for the Authority to provide additional compensation to cover such deficit. The Authority and its authorized representatives shall, at all times, have access for the purpose of audit or inspection to any and all books, documents, papers, records, property, and premises of the Lessee which in any manner relate to the expenses and revenues of the Property under this Lease and the Lessee’s obligations hereunder. The Lessee’s staff shall cooperate fully with authorized auditors when they conduct audits and examinations of Authority funded programs. Within thirty (30) days of the submittal of such audit report, the Lessee shall provide a written response to all conditions or findings reported in such audit report. The response must discuss each condition or finding and set forth a proposed resolution, including a schedule for correcting any deficiency. All conditions or correction actions shall take place within six (6) months after receipt of MONTCLAIR CITY COUNCIL MEETING – 08/07/2023 Page 120 of 173 Attachment No. 2