CITY OF MONTCLAIR
LEASE AGREEMENT
This City of Montclair Lease Agreement ("Lease"), is made and entered into as of August 19, 2024 (the “Commencement Date”), by and between the City of Montclair, a California Municipal Corporation, with its principal place of business located at 5111 Benito Street, Montclair, California, 91763 ("Landlord" or “City”), and Chaplain of the Streets, a 501(c)(3) non–profit corporation, with its principal place of business located at 12142 Central Ave Suite 200, Chino, California, 91710 ("Tenant"). Landlord and Tenant are each sometimes referred to herein individually as a "Party," and collectively as the "Parties."
RECITALS
This Lease is made with reference to the following facts:
A. Landlord is the owner of that certain real property consisting of an approximately 912 square foot single–story building that is located at 9661 Central Avenue, Montclair, California, 91763 including fixtures and furniture therein, as more particularly described in Exhibit "A" attached hereto and incorporated herein by this reference ("Property"). Except as expressly provided to the contrary in this Lease, reference to the Property is to the described land, together with all fixtures, furniture and improvements.
B. Landlord desires to lease a portion of the Property to Tenant and Tenant desires to lease the Property from Landlord, as more particularly described in Exhibit "B" attached hereto and incorporated herein by this reference ("Leased Space") on the terms and conditions set forth in this Lease.
C. Landlord's entry into this Lease will benefit the health, safety, and welfare of the City because Tenant's business operations at the Property will provide for a centralized location for those individuals who are homeless to have access to services including but not limited to street outreach, case management, education and life training skills, shelter and housing referrals, employment assistance, legal aid, and advocacy work.
D. Landlord's entry into this Lease will also help the City Council of the City (the “City Council”) achieve its goals of systematically addressing homelessness and access to services sought out by individuals who are homeless due to mental illness, substance use disorder, disability, or other barriers. All of these goals are intended to improve the health, safety, and welfare of the community and to help address homelessness in the community.
LEASE
NOW, THEREFORE, in consideration of the above recited facts, the mutual covenants set forth in this Lease and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:
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1. INCORPORATION OF RECITALS
The foregoing recited facts are true and correct and are incorporated into this Lease by this reference, as if restated in full.
2. LEASE
For and in consideration of the Rent (as defined below), and the conditions, covenants and agreements set forth in this Lease, Landlord leases to Tenant, and Tenant leases from Landlord, the Leased Space on the terms and conditions set forth in this Lease.
3. TERM
3.1 Term of the Lease. Unless earlier terminated or extended, the term of this Lease ("Term") shall be one (1) year commencing on the Commencement Date and expiring on June 30, 2025 ("Expiration Date"). If Tenant fails to vacate the Leased Space on the Expiration Date, or whatever later date is agreed to upon Tenant's exercise of the Option (defined in Section 3.2 below), or within the required time frame after this Lease is earlier terminated by Tenant, without Landlord's written consent, Tenant's holdover tenancy shall be a month–to–month tenancy, for a rental amount equal to the fair market rent for the Lease Space as determined by an appraiser to be designated by City, on all other terms and conditions of this Lease, until either Party terminates Tenant's holdover tenancy.
3.2 Option to Extend. If Tenant is not in default under this Lease at the Expiration Date, and the Lease has not been earlier terminated, Tenant shall have the option to request that Landlord extend this Lease for up to four (4) additional, successive one (1)–year terms under terms that are mutually satisfactory to both Parties ("Option"). If Tenant wishes to exercise this Option, Tenant shall, as to each option to extend by one year, not less than ninety (90) days prior to the Expiration Date of this Lease, provide Landlord with a written 90–day notice of Tenant's interest in negotiating the terms for extension of this Lease. Landlord shall have the right to grant or deny Tenant's request in its sole discretion.
4. RENT
4.1 Rent. Tenant and Landlord agree that the market rent for the use of the Property is Twenty Eight Thousand Eight Hundred and One Dollars ($28,800.00) per year (“Market Rate”). In view of the restricted uses permitted under this Lease and the agreement of Tenant to provide the “Designated Services” (as set forth in Exhibit C hereto), Landlord is prepared to charge a discounted rent of One Dollar ($1.00) per year (“Discounted Rent”). The Discounted Rent shall be applicable for any year, or portion thereof, during which the Tenant conducts the Designated Services on the Property and otherwise acts in compliance with this Lease; for any periods (including portions of any year) in which Tenant fails to conduct the Designated Services on the Property or during which Tenant is not in compliance with this Lease, Tenant shall be obligated to pay as rent the Market Rent. The applicable rent as determined in conformity with the preceding portion of this Section 4.1 constitutes the “Rent”.
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4.2 Dishonored Check. In the event that any check or other instrument of payment given by Tenant to Landlord is dishonored for any reason, Landlord may charge a fee of twenty–five dollars ($25.00) for each such check or other instrument that is dishonored.
5. Designated Services
5.1 Designated Services. In lieu of a portion of the Rent, Tenant may elect to perform certain services for Landlord (“Designated Services”). The specific services, frequency of services, and corresponding rent reduction are more particularly described in Exhibit "C" attached hereto and incorporated herein by this reference.
5.2 Designated Services Qualifications. Tenant must be qualified and possess the necessary skills to perform the Designated Services safely and effectively. Landlord reserves the right to approve or deny Tenant's request to perform Designated Services based on qualifications and experience.
5.3 Performance of Designated Services. Tenant agrees to perform the Designated Services in a professional and timely manner, in accordance with the standards outlined in Exhibit “C”. Tenant shall be responsible for providing all necessary tools and materials to perform the Designated Services, unless otherwise agreed upon in writing by Landlord. Landlord reserves the right to inspect the work performed by Tenant as part of the Designated Services.
5.4 Termination of Designated Services. Landlord may terminate Tenant's ability to perform Designated Services for repeated failure to perform the services satisfactorily or for any breach of this Agreement. Tenant may discontinue performing Designated Services with thirty (30) days written notice to Landlord.
6. USE OF THE PROPERTY
6.1 Use of the Property. Tenant shall have the right and Tenant covenants and agrees to use the Property only for professional office and homeless outreach services which may include, but are not limited to providing recourses and services related to housing, employment, healthcare, and mental health services, and for no other purposes, without the express, prior written approval of Landlord. Tenant shall not occupy or use, or permit all or any part of the Property required to be occupied or used, for any unlawful or illegal business, use or purpose, nor for any business, use or purpose that is disreputable or extra–hazardous. Tenant shall immediately upon discovery of any such unlawful, illegal, disreputable or extra– hazardous use, take all necessary steps, legal and equitable, to compel the discontinuance of such use and immediately remove occupants or other persons guilty of such unlawful, illegal, disreputable or extra–hazardous use from the Property.
6.2 Parking. Tenant shall be provided with designated parking spots on the Property. The designated parking space shall be deemed to constitute part of the Leased Space for purposes of this Lease.
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6.3 Management of the Property. The Property shall be managed or caused to be managed by the Landlord, excepting that Tenant shall be responsible for maintenance and the conduct of operations on the Leased Space.
6.4 Waste and Nuisance. Tenant shall not commit or allow any waste on or about the Property, nor commit, allow or maintain any public or private nuisance on or about the Property, or impairment of the Property, or any part thereof.
6.5 Compliance with Laws, Rules, Regulations. Tenant shall at all times comply with all requirements of local, state and federal laws, rules, orders and regulations now in force or which may be in force and such rules as may be established from time to time by Landlord in relation to the Leased Space ("Regulations") at any time during the Term. As part of complying with the Regulations, Tenant shall obtain, at Tenant's sole cost and expense, all licenses, permits and approvals that the Regulations require for the use or operation of the Property. Tenant shall maintain all required licenses, permits and approvals throughout the Term of this Lease
6.6 Obligation to Refrain from Discrimination. Tenant shall not discriminate against any person, or group of persons, on account of sex, marital status, race, color, creed, religion, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property.
6.7 Condition of Property. Tenant acknowledges that it intends to and will occupy the Property on the Effective Date in it’s AS–IS condition, as of the Effective Date.
Tenant acknowledges and agrees that Landlord has made absolutely no representations, guarantees or warranties regarding the Property, nor has Landlord made representations, guarantees or warranties regarding whether the Property and Improvements (as defined in Section 9.1) comply with applicable covenants and restrictions of record, building codes, ordinances or statutes in effect on the Effective Date.
6.8 Assumption of Risk, Waiver, and Landlord's Non–liability. To the maximum extent allowed by law, except for Landlord's willful misconduct or grossly negligent acts, Tenant assumes any and all risk of loss, damage or injury of any kind to any person or property that is on or about the Property. Tenant's assumption of risk shall include, without limitation, loss or damage caused by defects within the Property or any Improvements (as defined in Section 9.1), accident, fire or other casualty on or about the Property. To the maximum extent allowed by law, except for Landlord's willful misconduct or grossly negligent acts, Tenant hereby waives all claims and demands against Landlord, its elected officials, officers, employees, volunteers, consultants and agents for injury to persons, damage to property or any other interest of Tenant sustained by Tenant or any other person claiming through Tenant and resulting from any occurrence on or about the Property.
Tenant has been advised by its legal counsel concerning the content and effect of California Civil Code Section 1542, which provides:
A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.
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In reference to the waivers set forth in this Section, Tenant hereby waives the benefits of Civil Code Section 1542 and all other state or federal statutes, legal principles, or judicial decisions of the same or similar effect. The provisions of this Section shall survive the expiration or termination of this Lease.
6.9 Hazardous Materials Prohibited. The use, generation, storage or disposal of "Hazardous Materials" (defined below) on the Property is strictly prohibited, and any such use, generation, storage, or disposal shall result in a default and termination of this Lease. For the purpose of this section, "Hazardous Materials" means substances defined as "hazardous substances," "hazardous materials," "toxic substances," "hazardous wastes," "extremely hazardous wastes," or "restricted hazardous wastes," or stated to be known to cause cancer or reproductive toxicity, under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. sections 9601, et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. sections 1801, et seq.; the Resource Conservation and Recovery Act, 42 U.S.C. sections 6901, et seq.; the Federal Water Pollution Control Act, 33 U.S.C. sections 1317, et seq.; sections 25115, 25117, 25122.7, 25140, 25249.5, 25249.8, 25281, 25316 or 25501 of the California Health & Safety Code; or any substance so defined or stated in any of the regulations adopted and publications promulgated pursuant to said laws as they may be amended from time to time.
6.10 Taxable Possessory Interests. If the County of San Bernardino determines that this Lease creates a taxable possessory interest pursuant to Revenue Taxation Code Section 107, Tenant shall be solely responsible for the payment of property taxes (with respect to such possessory interest).
6.11 Quiet Enjoyment. The Parties hereto mutually covenant and agree that Tenant, by keeping and performing the covenants herein contained, shall at all times during the Term of this Lease peaceably and quietly have, hold and enjoy the Leased Space.
7. RIGHTS OF ACCESS; PUBLIC IMPROVEMENTS AND FACILITIES Landlord at its sole risk and expense, reserves the right to enter or authorize its agents to enter the Property or any part thereof at all reasonable times and with as little interference as possible, for the purposes of construction, reconstruction, maintenance, repair or service of any public improvements or public facilities located on the Property. Any such entry shall be made only after reasonable notice to Tenant, and Landlord or such other agent shall indemnify, defend and hold Tenant harmless from any claims or liabilities by their respective agents that arise out of Landlord's entrance on the Property and not caused by Tenant's sole willful misconduct or gross negligence. Landlord and such other agent shall make all reasonable efforts to keep any inconvenience, annoyance, disturbance or loss of business to a minimum. Ninety (90) days prior to the end of the Term of this Lease, Landlord shall have the right to show the Property to prospective lessees in its discretion.
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8. UTILITIES, LIENS AND OTHER CHARGES
8.1 Utilities. Landlord agrees to pay or cause to be paid, as and when they become due and payable, all charges for water, gas, light, heat, telephone, electricity and other utility and communication services rendered or used on or about the Property at all times during the Term of this Lease.
8.2 Other Liens. Tenant shall not, directly or indirectly, create or permit to be created or to remain, and will promptly discharge, at its expense, any mortgage, lien, encumbrance or charge on or pledge of the Property or any part thereof, or Tenant's interest therein, or the rent, additional rent or other sums payable by Tenant under this Lease. Tenant shall notify Landlord promptly of any lien or encumbrance which has been created on or attached to the Property, or to Tenant's leasehold estate therein, whether by act of Tenant or otherwise. The existence of any mechanic's, laborer's, materialmen's, supplier's or vendor's lien, or any right in respect thereof, shall not constitute a violation of this Section if payment is not yet due upon the contract or for the goods or services in respect of which any such lien has arisen.
9. OWNERSHIP OF AND RESPONSIBILITY FOR IMPROVEMENTS
9.1 Ownership during Term and at Termination. All improvements on the Property, whether existing thereon at the Commencement Date or constructed or installed by Tenant or Landlord as permitted or required by this Lease ("Improvements"), shall, during the Term of this Lease, be and remain the property of Landlord. Tenant shall have no right at any time to waste, destroy, demolish or remove any of the Improvements. Tenant shall not engage in any improvements to or demolition of improvements to the Property. Tenant's rights and powers with respect to the Improvements are subject to the terms and limitations of this Lease.
Landlord and Tenant covenant for themselves and all persons claiming under or through them that the improvements are real property.
9.2 Ownership of Fixtures and Furnishings at Termination. On the Expiration Date or sooner termination of this Lease, Landlord may, at Landlord's election, demand the removal from the Leased Space or the Property of all of Tenant's fixtures, equipment and furnishings, or of certain fixtures, equipment or furnishings, as specified in the notice provided for below at Tenant's sole cost and expense. A demand to take effect on the Expiration Date shall be effectuated by notice given at least three (3) months before the Expiration Date. A demand to take effect on any other termination date of the Lease shall be effectuated by notice given concurrently with the notice of termination or within a reasonable period after such termination.
Any of Tenant's fixtures, equipment and furnishings not specified by Landlord to be removed, and, at Landlord's election, any fixtures, equipment and furnishings specified for removal by Landlord that are not removed by Tenant within thirty (30) days following the Expiration Date or other termination date shall be deemed abandoned by Tenant and shall, without compensation to Tenant, then become Landlord's property, free and clear of any and all claims to or against them by Tenant or any third person, and may be retained, removed, sold, destroyed or otherwise disposed of by Landlord in Landlord's sole discretion.
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Tenant shall defend, indemnify and hold harmless Landlord from and against any and all liability and loss arising from any such claims or from Landlord's exercise of the rights conferred by this Section.
9.3 Alteration of Improvements. Tenant shall not make or permit to be made any alteration or addition to the Property, nor demolish all or any part of the Property or Improvements.
9.4 Damage or Destruction. Tenant agrees to give notice to Landlord of any fire or other damage that occurs on the Property or the Improvements within five (5) days after such fire or damage. Except as otherwise provided in Section 15.3, if the Improvements shall be damaged or destroyed by any cause which puts the Improvements into a condition which is not decent, safe and sanitary, Tenant agrees to make or cause to be made full repair of said damage and to restore the Improvements to the condition which existed prior to said damage, or Tenant agrees to clear and remove from the Property all debris resulting from said damage and rebuild the Improvements in accordance with plans and specifications previously submitted to Landlord and approved in writing in order to replace in kind and scope the Improvements which existed prior to such damage; provided, however, that Tenant's liability pursuant to this Section shall be limited to the extent of available proceeds from Tenant's insurance coverage maintained pursuant to Section 14.1.
9.5 Indemnification; Notice of Non–responsibility. Tenant agrees to hold Landlord, its elected officials, officers, employees, volunteers or agents free and harmless, and indemnify Landlord against all claims, liabilities, costs and expenses, for labor and materials in connection with all construction, repairs or alterations on the Property and the Improvements performed by Tenant, Tenant's agent or at Tenant's direction pursuant to this Section 9 and the cost of defending against such claims, including reasonable attorneys' fees.
Landlord shall have the right to post and maintain on the Property and the Improvements any notice of non–responsibility provided for under applicable law.
10. MAINTENANCE
10.1 Maintenance and Repair of the Property. Landlord shall assume full responsibility for the operation and maintenance of the Leased Space and the Improvements throughout the Term of the Lease without expense to Tenant unless otherwise specified herein, and shall keep the Leased Space and Improvements, and perform all maintenance and repairs necessary to maintain and preserve the Leased Space and Improvements, in good and clean condition and repair and in a clean, safe and sanitary manner and in compliance with all applicable laws, rules and regulations. Landlord agrees that Tenant shall not be required to perform any maintenance, repairs, or services or to assume any expense not specifically assumed herein in connection with the Property and the Improvements.
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10.2 Capital Improvements. Notwithstanding anything contained in this Lease to the contrary, Landlord shall be responsible for all capital replacements and improvements deemed necessary by Landlord to maintain and preserve the Leased Space and Improvements in Landlord's sole discretion, provided, however, this obligation shall not relieve Tenant of the obligation to make such replacements or improvements if they are necessitated by damage caused by Tenant. For the purposes of this Lease, a capital replacement or improvement shall mean a replacement or improvement that has a useful life of longer than ten (10) years. That notwithstanding, Landlord shall have the right, in lieu of making any such capital replacement or improvement, to terminate this Lease on ninety (90) days notice to Tenant.
11. ASSIGNMENT, SUBLETTING, TRANSFER
Tenant shall not assign or attempt to assign this Lease or any right herein, nor make any total or partial conveyance, assignment, sublease or transfer in any other mode or form of the whole or any part of the Leased Space or the Improvements, without prior written approval of Landlord. Such approval may only be given by Landlord if: (a) such conveyance, assignment, sublease or transfer is deemed by Landlord to be in Landlord's best interests; (b) the proposed conveyee, assignee, sublessee or transferee has, in the opinion of Landlord, the financial capability and overall competence to develop and operate the conveyed, assigned, subleased or transferred obligations and premises; and (c) all rent or other consideration that Tenant charges or receives from the proposed conveyee, assignee, sublessee or transferee or as a result of the conveyance, assignment, sublease or transfer of this Lease, that is greater than the Rent paid by Tenant to Landlord under this Lease, shall be immediately remitted to Landlord. Approval by Landlord of any conveyance, assignment, sublease or transfer shall be conditioned upon such conveyee, assignee, sublessee or transferee agreeing in writing to assume the rights and obligations thereby conveyed, assigned, subleased or transferred and to keep and perform all covenants, conditions and provisions of this Lease which are applicable to the rights acquired. In addition to the foregoing, any approval, conditional approval, or disapproval of any assignment, subletting or transfer shall be at the sole and absolute discretion of the Landlord (which may act through its City Manager) In the absence of specific written agreement by Landlord, no such conveyance, assignment, sublease or transfer of this Lease or the Leased Space or the Improvements (or portion thereof), or approval by Landlord of any such conveyance, assignment, sublease or transfer shall be deemed to relieve Tenant or any other party from any obligations under this Lease.
12. MORTGAGES
Tenant shall have no right to mortgage, pledge, deed in trust or otherwise encumber this Lease, or the interest of Tenant hereunder, and to assign or pledge the same as security for any debt.
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13. INDEMNIFICATION
With the exception of any default on behalf of the Landlord under this Lease (including but not limited to a breach of Quiet Enjoyment, willful misconduct or gross negligence), Tenant shall defend, indemnify and hold harmless Landlord, its elected officials, officers, employees, volunteers and agents (each an "Indemnified Party") from and against any and all claims or demands for loss or damage, including, without limitation, property damage, personal injury and wrongful death, arising out of or in connection with the use or occupancy of the Property by Tenant, officers, officials, agents, contractors, employees, guests or invitees; any willful or negligent act (whether active or passive) or omission of Tenant, officers, officials, agents, contractors, employees, guests or invitees; any accident or fire on the Property; any nuisance made or suffered thereon; and any failure by Tenant to keep the Property in a safe condition; and the breach, default, violation or nonperformance of this Agreement by Tenant. Tenant shall pay, satisfy and discharge any and all money judgments that may be recovered against any Indemnified Party, including attorney's fees and costs of litigation, in connection with the foregoing. Tenant's obligations under this Section shall survive termination of this Lease, and shall not be restricted to insurance proceeds, if any, received by Tenant or any Indemnified Party. Tenant shall not be obligated to defend, indemnify or hold harmless any Indemnified Party to the extent any claim, loss, action, damage, liability, or expense (including attorneys' fees) is ultimately determined to be the result of the gross negligence or willful misconduct of such Indemnified Party.
14. INSURANCE
From the Commencement Date and for the duration of the Term of this Lease and any holding over by Tenant, Tenant shall secure and maintain, at its own expense, insurance against claims for injuries to persons or damages to property that may arise out of or in connection with the possession, use, occupancy, management, operation, repair, maintenance or control of the Leased Space by Tenant and/or its officers, officials, agents, contractors, employees, guests or invitees as follows:
14.1 Minimum Scope and Limits of Coverage: (1) "All Risk" property insurance covering the full replacement value of the Property but not less than $750,000; (2) Comprehensive General Liability insurance using Insurance Services Office Commercial General Liability occurrence form number CG 0001 or exact equivalent in an amount not less than two million dollars ($2,000,000) per occurrence for bodily injury, personal injury and property damage including contractual liability and ($4,000,000) aggregate total bodily injury, personal injury, and property damage; (3) Automobile Liability insurance using Insurance Services Office Business Auto Coverage form number CA 000l, code 1 (any auto) or exact equivalent in an amount not less than one million dollars ($1,000,000) per accident for bodily injury and property damage; and (4) Workers' Compensation and Employer's Liability as required by the State of California and Employer's Liability Insurance, with workers compensation limits as required by California law and Employers Liability Limits of one million dollars ($1,000,000) per accident for bodily injury or disease.
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14.2 Insurance Endorsements. The insurance policies shall contain the following provisions, or Tenant shall provide endorsements on forms supplied or approved by Landlord to add the following provisions to the insurance policies:
14.3 General and Automobile Liability. Each general liability and automobile liability policy shall be endorsed to state that: (A) Landlord, its elected officials, officers, employees, volunteers and agents shall be covered as additional insureds with respect to the possession, use, occupancy, management, operation, repair, maintenance or control of the Property by Tenant and its officers, officials, agents, representatives, volunteers, employees, guests or invitees; and (B) the insurance coverage shall be primary insurance with respect to Landlord, its elected officials, officers, employees, volunteers and agents, or if excess, shall stand in an unbroken chain of coverage excess of Tenant's scheduled underlying coverage. Any insurance or self–insurance maintained by Landlord, its elected officials, officers, employees, volunteers and agents shall be excess of Tenant's insurance and shall not be called upon to contribute with it.
14.4 Workers' Compensation and Employers Liability Coverage. The insurer shall agree to waive all rights of subrogation against Landlord, its elected officials, officers, employees, volunteers and agents for losses paid under the terms of the insurance policy that arise from work performed by Tenant.
14.5 All Coverage. Each insurance policy required by this Lease shall not be canceled or materially changed without first giving thirty (30) days prior written notice to Landlord.
14.6 Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating no less than A: VII, licensed and admitted to do business in California, and satisfactory to Landlord.
14.7 Verification of Coverage. Tenant shall furnish Landlord with original certificates of insurance and endorsements affecting coverage required by this Lease on forms satisfactory to Landlord. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by Landlord, if requested. All certificates and endorsements must be received and approved by Landlord.
Landlord reserves the right to require complete, certified copies of all required insurance policies, at any time.
15. DEFAULTS, REMEDIES AND TERMINATION
15.1 Defaults – General. Failure or delay by either Party to perform or comply with any condition or provision of this Lease constitutes a default under this Lease, and grounds for termination. Upon the occurrence of a default, the injured Party shall give written notice of default to the Party in default, specifying the default complained of by the injured Party. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. If the default is not commenced to be cured within thirty (30) days after service of the notice of default and is not cured promptly in a continuous and diligent manner within a reasonable period of time after commencement to the non–defaulting Party's MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 148 of 248 Agreement No. 24-71
satisfaction, the non–defaulting Party may thereafter terminate this Lease and/or commence an action for damages, specific performance or any other remedy available in law or equity against the defaulting Party with respect to such default, without liability for any reason or under any theory in connection with such termination, and without creating any right to recovery of damages of any kind or nature in the non–defaulting Party.
15.2 Enforced Delay in Performance for Causes Beyond Control of Party. Performance by either Party hereunder shall not be deemed to be in default where delays or defaults are due to war; insurrection; strikes; lockouts; riots; floods; earthquakes; fires; casualties; acts of God or other deities; acts of the public enemy; epidemics; quarantine restrictions; freight embargoes; lack of transportation; governmental restrictions or priority; litigation; unusually severe weather; inability to secure necessary labor, materials or tools; delays of any contractor or supplier; acts of the other Party; acts or failure to act of any public or governmental agency or entity (other than any act or failure to act of Landlord, which shall not excuse performance by Landlord) or any other cause beyond the control or without the fault of the party claiming an extension of the time to perform. An extension of time for any such cause shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause. If, however, notice by the Party claiming such extension is sent to the other Party more than thirty (30) days after the commencement of the cause, the period shall commence to run only thirty (30) days prior to the giving of such notice. Times of performance under this Lease may also be extended in writing by Tenant and Landlord. Notwithstanding the foregoing, there shall be no extensions by virtue of enforced delay in relation to payment of Rent.
15.3 Damage or Destruction of Property. If during the Term of this Lease, any portion of the Property is damaged by fire or other catastrophic cause, so as to render such portion of the Property untenable, the obligations under this Lease may be suspended while such portion of the Property remains untenable. In the event of such damage, Tenant shall give Landlord notice of such untenable condition and the Landlord shall elect in its sole discretion, whether to repair the Property (if damaged by Tenant or an invitee of Tenant) or to cancel this Lease with respect thereto. Landlord shall notify Tenant in writing of its election within thirty (30) days after service of notice by Tenant. In the event that Landlord elects not to repair the Property or portion thereof, this Lease shall be deemed cancelled as of the date the damage occurred with respect to the untenable portion(s) of the Property. If this Lease is cancelled pursuant to this Section, Landlord shall not be liable to Tenant for any reason or under any theory and Tenant shall not be entitled to recover damages of any kind or nature from Landlord.
Additionally, if during the Term, any portion of the Property is damaged by fire or other catastrophic cause, so as to render such portion of the Property untenable, then Tenant can elect in writing to cancel this Lease with respect to the untenable portion(s) of the Property by providing written notice of its election to Landlord within thirty (30) days of the damage.
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15.4 Additional Remedies of Landlord. In addition to the foregoing, if Tenant defaults with regard to any of the provisions of this Lease, and fails to cure such default to Landlord's satisfaction as provided in Landlord's notice to Tenant, Landlord, at its option, may thereafter (but not before), to the extent permitted by law:
correct or cause to be corrected said default and charge the costs therefor to the account of Tenant; and/or correct or cause to be corrected said default and pay the costs thereof from the proceeds of any insurance.
15.5 Landlord's Re–Possession of Property. In the event that Landlord terminates this Lease, Landlord shall have the right to re–enter and repossess the Property without process of law, and Tenant, in such event, does hereby waive any demand for possession thereof, and agrees to surrender and deliver the Property peaceably to Landlord immediately upon such termination in good order, condition and repair, except for reasonable wear and tear.
No ejectment, re–entry or other act by or on behalf of Landlord shall constitute a termination unless Landlord gives Tenant notice of termination in writing. Such termination shall not relieve or release Tenant from any obligation incurred pursuant to this Lease prior to the date of such termination.
Termination of the Lease under this Section shall not relieve Tenant from the obligation to pay any sum due to Landlord or from any claim for damages against Tenant.
The right of termination provided by this Section is not exclusive and shall be cumulative to all other rights and remedies possessed by Landlord, and nothing contained herein shall be construed so as to defeat any other rights or remedies to which Landlord may be entitled.
15.6 Acknowledgment of Adequacy of Relocation Benefits Paid. If either Party terminates this Lease for any reason contemplated or authorized by this Section 15 or any other Section of the Lease, Tenant hereby expressly, knowingly and voluntarily waives any and all rights, benefits and/or assistance it may be entitled to receive from Landlord due to such termination, including, without limitation, loss of goodwill, inverse condemnation, or relocation assistance as provided for in California Government Code sections 7260, et seq. and 42 U.S.C. section 4601, et seq.
Tenant has been advised by its legal counsel concerning the content and effect of California Civil Code section 1542, which provides:
A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.
In reference to the waiver set forth in this Section, by its initials below, Tenant waives the benefits of Civil Code Section 1542 and all other state or federal statutes, legal principles, or judicial decisions of similar effect. This provision shall survive the expiration or termination of this Lease.
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16. LEGAL ACTIONS
Institution of Legal Actions. In addition to any other rights or remedies, either Party may institute legal action to cure, correct, or remedy any default, to recover damages for any default, or to obtain any other remedy consistent with the purpose of this Lease. Such legal action must be instituted in the Superior Court of the County of San Bernardino, State of California, or in the Federal District Court in the Central District of California.
16.1 Applicable Law. The laws of the State of California shall govern the interpretation and enforcement of this Lease.
16.2 Acceptance of Service of Process. In the event that any legal action is commenced by Tenant against Landlord, service of process on Landlord shall be made by personal service upon the City Clerk, or in such other manner as may be provided by law.
In the event that any legal action is commenced by Landlord against Tenant, service of process on Tenant shall be made by personal service upon an officer and/or member of Tenant and shall be valid whether made within or without the State of California, or in such manner as may be provided by law.
16.3 Attorneys' Fees and Court Costs. In the event that either Landlord or Tenant shall bring or commence an action arising out of or in connection with this Lease the prevailing Party shall be entitled to and shall be paid reasonable attorneys' fees and court costs therefor.
17. GENERAL PROVISIONS
17.1 Notice. All notices, demands and communications between Landlord and Tenant under this Lease 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 Landlord: Mikey Fuentes, Dir. of Economic Development City of Montclair
5111 Benito Street
Montclair, CA 91763
To Tenant: Dianna Delgado
Chaplain of the Streets
12142 Central Avenue Suite 200
Chino, CA 91710
17.2 Time of Essence. Time is of the essence with respect to the performance of each and every provision of this Lease.
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17.3 Conflict of Interests. No elected official, officer, contractor, agent or employee of Landlord shall have any personal interest, direct or indirect, in this Lease, nor shall any such elected official, officer, contractor, agent or employee participate in any decision relating to the Lease which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interested. Tenant warrants that it has not paid or given, and will not pay or give, any third party any money or other consideration for obtaining this Lease.
17.4 Non–liability of Landlord Officials and Employees. No elected official, officer, contractor, agent or employee of Landlord shall be personally liable to Tenant, or any successor in interest, in the event of any default or breach by Landlord or for any amount which may become due to Tenant or successor or on any other obligation under the terms of this Lease.
17.5 Inspection of Books and Records. Landlord has the right at all reasonable times to inspect the books and records of Tenant pertaining to its operations on the Property as pertinent to the purposes of this Lease. Tenant also has the right at all reasonable times to inspect the books and records of Landlord pertaining to the Property as pertinent to the purposes of this Lease.
17.6 Entry and Inspection of Property. Landlord shall have the right at all reasonable times to enter the Property for the purpose of viewing and ascertaining the condition of the same, or to protect its interests in the Property and the Improvements or to inspect the operations conducted thereon. Any such entry shall be made only after reasonable notice to Tenant. In the event that such entry or inspection by Landlord discloses that the Property or the Improvements are not in a decent, safe, and sanitary condition, are damaged, or in disrepair, Landlord shall have the right, after thirty (30) days written notice to Tenant, to have any necessary maintenance or repair work done for and at the expense of Tenant and Tenant hereby agrees to pay promptly any and all costs incurred by Landlord in having such necessary maintenance or repair work done in order to keep the Property and the Improvements in a decent, safe and sanitary condition. The rights reserved in this Section shall not create any obligations on Landlord or increase any obligations imposed on Landlord elsewhere in this Lease.
17.7 No Partnership. Neither anything in this Lease contained, nor any acts of Landlord or Tenant shall be deemed or construed by any person to create the relationship of principal and agent, or of partnership, or of joint venture, or of any association between Landlord and Tenant.
17.8 No Third–Party Beneficiaries. There are no intended third–party beneficiaries of any right or obligation assumed by the Parties under this Lease.
17.9 Compliance with Law. Tenant agrees, at its sole cost and expense, to comply and secure compliance with all the requirements now in force, or which may hereafter be in force of all municipal, county, state and federal authorities, pertaining to the Property, as well as operations conducted thereon; and to faithfully observe and secure compliance with, in the use of the Property, all applicable city, county and municipal ordinances, rules and regulations and all state and federal statutes, rules, orders and regulations now in force or which may hereafter be in force, including all MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 152 of 248 Agreement No. 24-71
laws prohibiting discrimination or segregation in the use, sale, lease or occupancy of the property. The judgment of any court of competent jurisdiction, or the admission of Tenant or any sublessee or permittee in any action or proceeding against them, or any of them, whether Landlord be a party thereto or not, that Tenant, sublessee or permittee has violated any such law, rule, order or regulation in the use of the Property shall be conclusive of that fact as between Landlord and Tenant.
17.10 Waiver. Any failure or delay by either Party in asserting any of its rights and remedies under this Lease shall not operate as a waiver of any default or of any such rights or remedies. Delays by either Party in asserting any of its rights and remedies shall not deprive either Party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies.
17.11 Rights and Remedies Are Cumulative. The rights and remedies of the Parties under this Lease are cumulative, and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.
17.12 Severability. If any provision of this Lease shall be adjudged invalid or unenforceable by a court of competent jurisdiction, the remaining provisions of this Lease shall not be affected thereby and shall be valid and enforceable to the fullest extent permitted by law.
17.13 Binding Effect. This Lease, and the Terms, provisions, promises, covenants and conditions hereof, shall be binding upon and shall inure to the benefit of the Parties hereto and their respective heirs, legal representatives, successors and assigns.
17.14 Counterparts. This Lease may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute the fully executed Lease.
17.15 Authority to Enter Lease. Each Party warrants that the individual who has signed this Lease on its behalf has the legal power, right, and authority to make this Lease and bind each respective Party thereto.
17.16 Entire Agreement; Modifications. This Lease constitutes the entire agreement between the Parties regarding the subject matter of this Lease, superseding all other agreements or understandings, whether written or oral. This Lease may not be modified or amended except in writing signed by the Parties. This Lease shall be binding upon and inure to the benefit of Landlord and Tenant and their respective heirs, beneficiaries, successors and assigns. [Signatures on Following Page]
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written.
LANDLORD TENANT
By: By:
Javier John Dutrey, Mayor Dianna Delgado, Chaplain of the Streets Attest:
By:
Andrea M. Myrick, City Clerk
Approved as to Form:
By:
Diane E. Robbins, City Attorney
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EXHIBIT A
LEGAL DESCRIPTION OF PROPERTY
The following described real property, together with all improvements thereon:
TRACT 4503 LOT 18
APN: 1008–611–18–0000
TRACT 4503 LOT 19
APN: 1008–611–19–0000
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EXHIBIT B
LEASE SPACE DESCRIPTION
Lease Space - one 144 square foot room, located at 9661 Central Avenue, Montclair, California, 91763, and depicted on the schematic immediately following this page.
The Leased Space shall be deemed to include one parking space as designated by Landlord; the particular parking space available may be changed from time to time by Landlord with Landlord giving notice of any such changes to Tenant.
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EXHIBIT B
LEASE SPACE DESCRIPTION
9661 Central Avenue
Property Layout
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EXHIBIT C
Designated Services
1. Designated Services. During the term of this Agreement and in accordance with Section 5, the following activities will constitute Designated Services that would allow the Tenant to request a rent reduction.
a. Accompanying the City’s Special Operations Unit on Homeless Outreach Detail a minimum of twenty–five (25) hours per week as well as respond to special requests/calls for service from the Special Operations Unit regarding homeless individuals and/or families in need of assistance.
2. Maintenance of Records. During the term of this Agreement, Tenant must provide records of supporting documents demonstrating that Designated Services were provided for the month that a reduction in rent is requested. Documentation includes but it not limited to individuals served, actions taken, and services provided. Tenant is also required to meet periodically with the City Manager or his/her designee to review the provision of Designated Services and other compliance by Tenant with this Agreement.
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CITY COUNCIL
AGENDA REPORT
DATE: AUGUST 19, 2024
SECTION: CONSENT - AGREEMENTS
ITEM NO.: 9
FILE I.D.: MCF150/MCF175
DEPT.: MCF
PREPARER: A. COLUNGA
SUBJECT: CONSIDER APPROVAL OF AGREEMENT NO. 24–72 WITH KAISER FOUNDATION HOSPITALS TO ACCEPT A GRANT AWARD IN THE AMOUNT OF $15,000 TO SUPPORT
THE MONTCLAIR TO COLLEGE PROGRAM
CONSIDER AUTHORIZING EXECUTIVE DIRECTOR EDWARD C. STARR TO SIGN AGREEMENT NO. 24–72
REASON FOR CONSIDERATION: The City Council serves as the Montclair Community Foundation (MCF) Board of Directors. The MCF Board is requested to consider authorizing Agreement No. 24–72 with Kaiser Foundation Hospitals for acceptance of a grant in the amount of $15,000 to support the Montclair to College Program (MTC). In addition, consider authorizing the Executive Director Edward C. Starr to sign Agreement No. 24–72.
BACKGROUND: In May 2024, the MCF was invited by Kaiser Permanente Ontario Medical Center Community Health Contributions Program to apply for grant funding under one of their strategic priorities.
The vision of MCF is to work collaboratively to strengthen services and enhance the quality of life for residents by promoting health, wellness and economic stability for all including the most vulnerable in our community. The mission of MCF is to guarantee a quality community for all, by working together as diverse, committed individuals and organizations to make an impact that improves the overall well–being of the community.
MTC, previously known as “Online to College,” was established in 1998. MTC is supported by MCF to offer Montclair students the opportunity to attend Chaffey College through a scholarship that includes tuition, books, parking and other necessary fees.
The program began at three Montclair Elementary schools and later expanded to include all elementary schools. MTC continued to evolve and in 2015 MTC began at the 9th grade level at Montclair High School (MHS) to allow for more consistency within the program.
MTC operates with the overall goal of increasing economic prosperity in Montclair through increasing college enrollment rates among students at MHS. In addition to offering MHS students college funding, and educational support, MTC also provides students with the opportunity to participate in college workshops, campus tours, and community activities.
MTC will achieve the following objectives with the grant funding:
Enroll participants in the Montclair to College Program Connect MTC program participants with employment resources and community service opportunities
Increase awareness of the MTC program among MTC students MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 159 of 248 FISCAL IMPACT: Kaiser Foundation Hospitals has approved a grant award to MCF in the amount of $15,000 for MTC. There will be no direct fiscal impact on the Montclair Community Foundation as a result of the approval of Agreement No. 24–72. The term of Agreement 24–72 is September 1, 2024, through August 31, 2025.
RECOMMENDATION: Staff recommends that the Board of Directors for Montclair Community Foundation take the following actions:
1. Approve Agreement No. 24–72 with Kaiser Foundation Hospitals to accept a grant award in the amount of $15,000 to support the Montclair to College Program.
2. Authorize the Executive Director Edward C. Starr to sign Agreement No. 24–72.
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UNCONDITIONAL GRANT AGREEMENT
Kaiser Foundation Hospitals (Grantor) makes this grant to Montclair Community Foundation (Grantee) for the purpose and with the terms outlined below.
The following terms listed below, and all exhibits, appendices, and other attachments hereto form “the Agreement.”
Grant Title: Montclair to College: Increasing College Access in Montclair Grant
Number: 168099
Grant
Purpose:
The Montclair to College (MTC) program is supported by the Montclair Community Foundation with the overall goal of increasing college access in Montclair by decreasing the barriers to educational attainment. MTC targets Montclair High School Students and their families, providing support through the transition to college process, and offers students a full scholarship to Chaffey College.
Grant
Objectives:
Grantee agrees to make reasonable progress towards achieving the objective(s) as stated in the grant application. Reasonable progress will be determined in exercise of Grantor’s sole discretion Grant
Period:
Start Date: 9/1/2024
End Date: 8/31/2025
Term: 12 months
Grant
Amount: $15,000.00
Project
Contact
Person:
Alyssa Colunga, Assistant Director of Human Services & Grants Manager
[email protected]
909-625-9495
Grantee
Mailing
Address:
5111 Benito St.
Montclair, California 91763
Kaiser
Permanente
Grant Lead:
Martha Valencia
[email protected]
Special
Conditions
This is an unconditional Grant subject to the terms below.
Payment
Schedule
Payment dates are approximate. Initial payment is based on execution of the grant agreement; any subsequent payment dates are estimated. If multiple payments are indicated, the payments will be dispersed after receipt and review of the corresponding reports.
Agreement No. 24-72
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Payment Amount:
$15,000.00
Due upon execution of the grant
agreement
Reporting
Schedule
Final Narrative and Expenditure Report Due:
9/30/2025
I. GRANT TERMS
A. Use of Grant Funds. Grantee will use the grant funds for the intended purpose. Grant funds may not be expended, loaned, pledged, or transferred for reasons other than carrying out the Project without Grantor’s prior written approval. Grantee may not expend any grant funds for any purpose that is not charitable, for any political or impermissible lobbying activity, or for any purpose other than one specified in Section 170(c)(2)(b) of the Internal Revenue Code.
B. Grant Expenditures. Grantee agrees that the grant fund expenditures will be allocated as specifically itemized in the budget submitted in your grant application.
Grantee will seek prior written approval from Grantor for any budget re-allocations exceeding 10% of the total grant amount.
Reporting Guidelines. The results of the grant are important and will help shape the future of Kaiser Permanente’s grantmaking. The Grantee is responsible for submitting required reporting using Kaiser Permanente’s online grants management system and if applicable Kaiser Permanente's identified collection tool for data metrics, in accordance with the reporting schedule above. An email notification will be sent to the submitter identified on the grant application 30 days prior to the report due date. To ensure the submitter’s contact information is up to date, please notify the Kaiser Permanente Grant Lead with any changes. Any questions or concerns regarding specific reporting requirements should be discussed and resolved in consultation with the Kaiser Permanente Grant Lead. Please note, if the grant requires working with an external evaluator or if the grantee is requested to participate in interviews or focus groups, the grantee will be notified of their requested participation in any evaluation activities in advance of the activity. If multiple payments are indicated, the payments will be dispersed upon receipt and approval of the corresponding reports.
C. Public Access. If requested, Grantee will provide Grantor copies of any results, reports, publications, data, and other materials created or developed through the Project, unless such information is propriety or contains information deemed sensitive by the Grantee. If any third-party reports, articles, or other publications regarding the Project funded by this grant are available to the public, Grantee will assist Grantor in obtaining copies if needed.
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D. Non-discrimination. Grantee agrees that, in carrying out the objectives supported by this grant, it will not unlawfully discriminate in its employment practices, volunteer opportunities, or the delivery of programs or services, based on race, color, religion, gender, gender identity/expression, national origin, ancestry, age, medical condition, disability, veteran status, marital status, sexual orientation, or any other characteristic protected by law.
E. Nonprofit Status. Grantee affirms that it is currently in good standing, and shall remain during the period funded, a nonprofit public benefit corporation exempt from federal income taxes under section 501(c)(3) of the Internal Revenue Code or a local, state, or federal government agency eligible to receive charitable contributions as described in the grant proposal submitted. Grantee will notify Grantor immediately of any changes in its tax status during the grant term.
F. Change in Grantee Operations. Grantee will advise Grantor within thirty (30) business days of the occurrence, or actual knowledge of the imminent occurrence, of any of the following changes in Grantee's status. In the event of any of these occurrences the agreement will be terminated:
1. Grantee no longer retains the services of personnel adequate to enable Grantee to continue to perform its obligations under this Agreement.
2. Grantee's inability to expend grant funds in accordance with the terms of the grant Agreement, or;
3. Any development that significantly and adversely affects the operation of the Project or Grantee, including, without limitation, changes to Project scope of grant or timeline.
4. Any changes to Grantee’s financial status that adversely affects the operation of the Project or Grantee.
G. Conflict of Interest. Grantee shall, in connection with the grant application submission, have disclosed to Grantor a comprehensive list of Grantee’s Directors, Officers, and individuals on its governing body and an assessment of their affiliations, if any, to Kaiser Permanente or any of the Permanente Medical Groups and their subsidiaries, for the purpose of identifying and eliminating any possible conflicts of interest. Grantee will disclose any changes to the list of Directors, Officers, or individuals on its governing body and their affiliations that may generate a potential conflict of interest during the term of this Agreement to ensure compliance with policy.
H. Future Funding. Grantee acknowledges that Grantor and its representatives have made no actual or implied promise of future funding except for the amounts specified by this Agreement.
II. PUBLICITY/PROMOTION
A. Grantee Communications with Media/Use of Logo. Grantor requires review and comment on all press releases that are directly related to the grant, as applicable.
Grantor requests prior approval before the use of its logo in any communications. If MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 163 of 248 4 | Page
Grantee plans to issue a press release related to this Grant, Grantee will contact Grantor at least 15 days before the desired announcement date. Grantor must be addressed as “Kaiser Permanente” in all communications. Grantor acknowledges that Grantee, if a 501(c)(3) organization is subject to certain limitations regarding public acknowledgment and agrees that any such decisions regarding visibility and donor recognition will be subject to any such limitations.
B. Communications with Media and Published Materials. Grantor may periodically publicize Project progress and/or results through public communications (including press releases), reports, websites, and other materials. Grantee agrees that Grantor may use the logo of the organization in such publications.
III. GRANT TERMINATION: RIGHT TO MODIFY
A. Grantor may terminate this grant for convenience upon 30 days’ written notice. Grantor or Grantee may terminate this grant immediately for the reasons specified in this Agreement or in willful misconduct or negligence.
IV. INDEMNIFICATION
A. To the extent consistent with applicable law, each Party agrees to defend, indemnify, and hold the other Party and its officers, employees, directors, owners, and authorized agents harmless from and against all third-party claims, suits, damages and liabilities, costs and expenses incurred therewith, including reasonable attorneys' fees, to the extent caused by the negligent or willful act or omission of the indemnifying Party, its officers, employees, directors, owners, or authorized agents.
V. COMPLIANCE
A. Grantee agrees to comply with all applicable laws in the use of the grant funds and Grantee’s development and operation of the Project. Grantee shall (i) maintain, in full force and effect, all required governmental or professional licenses and credentials for itself, its facilities and its employees and all other persons engaged in work in conjunction with this grant, and (ii) perform its duties and obligations under this Agreement according to industry standards and in compliance with all applicable laws.
As an organization with numerous contracts with the federal government, Kaiser Permanente and its affiliates are subject to various federal laws, executive orders, and regulations regarding equal opportunity and affirmative action. This Section constitutes notice that Grantee may be required to comply with the following Federal Acquisition Regulations (each a “FAR”) at 48 CFR Part 52, which are incorporated herein by reference: (a) Equal Opportunity (April 2002) at FAR 52.222-26; (b) Equal Opportunity for Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible Veterans (Sept. 2006) at FAR 52.222-35; (c) Affirmative Action for Workers with Disabilities (June 1998) at FAR 52.222-36, and (d) Utilization of Small Business Concerns (May 2004) at FAR 52.219¬8. To the extent any of the foregoing federal statutes become applicable to Grantee, Kaiser Permanente will advise Grantee. In MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 164 of 248 5 | Page
addition, Executive Order 13495 concerning the obligations of federal contractors and subcontractors to provide notice to employees about their rights under Federal labor laws, or its successor, shall be incorporated herein by reference.
VI. MISCELLANEOUS
A. In the event that any suit or action is instituted concerning the Agreement, the substantially prevailing Party shall recover all costs, including, without limitation, the court costs and reasonable attorney's fees incurred in each such action, suit, or proceeding, including all appeals or petitions therefrom. Grantee may not assign any right, duty, or obligation under this Agreement without prior written approval from Kaiser Permanente. Any change of ownership or control of Grantee shall be deemed an assignment. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective, permitted successors and assigns. This Agreement, including any exhibits and attachments (all of which are incorporated into this Agreement by this reference), is the entire Agreement of the Parties with respect to the subject matter herein, and supersedes all other agreements, promises, negotiations, or representations, whether oral or written. This Agreement, including exhibits and attachments, may not be amended except in a writing signed by each Party.
Regarding administration of this grant, the parties understand and agree that each is always acting and performing as an independent contractor. Except as expressly set forth in this Agreement, neither Party, nor any of its employees, shall be construed to be the agent, employee, or representative of the other for any purpose, or liable for any acts or omissions of the other.
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SIGNATURE PAGE, Grant #168099
1. Grantee Signature. By signing this Agreement, the Grantee signatory acknowledges that they have read and understood the Agreement, they have the authority to sign this Agreement and bind the Grantee thereto, and that the Grantee hereby accepts and agrees to perform all the terms of this Agreement.
2. Kaiser Permanente Signature. By signing this Agreement, KP signatory acknowledges that they have read and understood the Agreement, they have the authority to sign this Agreement and bind KP thereto, and that KP hereby accepts and agrees to perform all the terms of this Agreement.
Grantee Organization Signatory
Name: Edward Starr
Title: Executive Director
Organization: Montclair Community Foundation
Signature:
Date Signed:
Kaiser Foundation Hospital/Health Plan Signatory
Name: Georgina Garcia
Title: SVP, Area Manager
Organization: Kaiser Foundation Hospitals
Signature:
Date Signed:
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 166 of 248
CITY COUNCIL
AGENDA REPORT
DATE: AUGUST 19, 2024
SECTION: CONSENT - RESOLUTIONS
ITEM NO.: 1
FILE I.D.: EDD100/MHA100
DEPT.: ECONOMIC DEV./MHA
PREPARER: M. FUENTES
SUBJECT: CONSIDER ADOPTION OF RESOLUTION NO. 24–3439 APPROVING AGREEMENT NO. 24–65, AN AFFORDABLE HOUSING AGREEMENT WITH THE MONTCLAIR HOUSING AUTHORITY AND THE MONTCLAIR HOUSING CORPORATION; AUTHORIZING THE TRANSFER OF 9603 MILLS AVENUE, MONTCLAIR, TO THE MONTCLAIR HOUSING AUTHORITY FOR USE AS AFFORDABLE HOUSING; AND DECLARING SUCH REAL
PROPERTYTO BE EXEMPT SURPLUS LAND
CONSIDER AUTOHRIZING A $35,000 APPROPRIATION FROM THE ECONOMIC
DEVELOPMENT ASSETS FUND FOR REHABILITATION OF THE PROPERTY LOCATED AT 9603 MILLS AVENUE, MONTCLAIR
CONSIDER ADOPTION OF MHA RESOLUTION NO. 24–02 APPROVING AGREEMENT NO. 24–65, 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 ADOPTION OF MHC RESOLUTION NO. 24–03 APPROVING AGREEMENT NO. 24–65, AN AFFORDABLE HOUSING AGREEMENT WITH THE CITY OF MONTCLAIR
AND THE MONTCLAIR HOUSING CORPORATION
REASON FOR CONSIDERATION: Proposed Agreement No. 24–65 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 9603 Mills Avenue and the subsequent leasing and operations of said property as an affordable housing unit.
Proposed City Council Resolution No. 24–3439 would approve entering into Agreement No. 24–65, and would authorize the transfer of Property to the MHA.
Proposed MHA Resolution No. 24–02 would approve entering into Agreement No. 24– 65, and accept the transfer of property from the City.
Proposed MHC Resolution No. 24–03 would approve entering into Agreement No. 24–
65. A copy of the proposed resolutions and agreement are attached for review and consideration by the City Council, MHA Commissioners, and MHC Board.
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, Monte Vista Avenue, Mills 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.
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 167 of 248 With the dissolution of community 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.
Agreement No. 24–65 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 properties be operated as rental units made available to low–to–moderate–income persons. As such, staff has prepared Agreement No. 24–65 an affordable housing agreement by and between the City, MHA, and MHC.
Proposed Agreement No. 24–65 contains language related to the conveyance of the Properties, compliance with applicable laws, use of the properties, remedies, and general provisions. The more salient points of proposed Agreement No. 24–65 relate to the conveyance of fee title of Properties from the City to the MHA and leasing of the properties from the MHA to the MHC for the day–to–day operation of the properties, as well as the rehabilitation and rental of the properties to low–to–moderate–income persons.
9603 Mills Avenue, Montclair
The subject Property is located on a highly visible and desirable portion of Mills Avenue, 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 1956 and the lot size is 7,310 square feet. The dwelling unit is 1,144 square feet with three bedrooms and one bathroom.
FISCAL IMPACT: Staff is requesting an appropriation of funds from the Economic Development Agency Assets Fund totaling a maximum of $35,000 related to costs associated with installation of new flooring, rehabilitation of a restroom, installation of a new fence, and interior paint.
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 168 of 248 RECOMMENDATION: Staff recommends that the City Council take the following actions:
1. Adopt Resolution No. 24–3439 approving Agreement No. 24–65, an Affordable Housing Agreement with the Montclair Housing Authority and Montclair Housing Corporation; authorizing transfer of certain real property located at 9603 Mills Avenue, Montclair, to the Montclair Housing Authority for use as affordable housing; and declaring such real property to be exempt surplus land; and
2. Authorize a $35,000 appropriation from the Economic Development Assets Fund for rehabilitation of the property located at 9603 Mills Avenue, Montclair.
Staff recommends that the Montclair Housing Authority Commissioners adopt Resolution No. 24–02 approving Agreement No. 24–65, an Affordable Housing Agreement with the City of Montclair and Montclair Housing Corporation, and accepting the transfer of certain real property from the City of Montclair to the Montclair Housing Authority.
Staff recommends that the Montclair Housing Corporation Board of Directors adopt Resolution. No. 24–03 approving Agreement No. 24–65, an Affordable Housing Agreement with the City of Montclair and the Montclair Housing Authority.
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 169 of 248 Resolution No. 24–3439 Page 1 of 2
RESOLUTION NO. 24–3439
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MONTCLAIR APPROVING AGREEMENT NO. 24–65, AN
AFFORDABLE HOUSING AGREEMENT BY AND BETWEEN THE
CITY OF MONTCLAIR, MONTCLAIR HOUSING AUTHORITY,
AND MONTCLAIR HOUSING CORPORATION; AUTHORIZING
TRANSFER OF CERTAIN REAL PROPERTY LOCATED AT 9603
MILLS AVENUE, MONTCLAIR, CALIFORNIA, 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 9603 Mills Avenue (the "Property") with funds from the City's Economic Development Agency Assets Fund for the purpose of increasing, improving, and preserving the City of Montclair’s supply of low–and–moderate income housing available at an affordable cost; and
WHEREAS, the City is the owner of that Property within the corporate limits of the City of Montclair; and
WHEREAS, pursuant to the provisions of the California Housing Authority Law (Part 2 of Division 24 of the Health and Safety Code [herein, the "Housing Authority Law"]), the City has designated the Montclair Housing Authority (the "Housing Authority") as the successor housing entity for the City of Montclair; and WHEREAS, pursuant to the Housing Authority Law, the Housing Authority is a housing authority duly established and operating as a local housing authority performing a public function and may make and execute contracts necessary or convenient to the exercise of its powers; and
WHEREAS, the Montclair Housing Corporation (the "Housing Corporation") was formed as a 501(c)(3) to operate and maintain the housing assets including single and multi–family residential units of the Housing Authority; and WHEREAS, the City desires to convey to the Housing Authority the Property and the Housing Authority desires to acquire the Property from the City; and WHEREAS, 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 resource for low–to–moderate income households; and WHEREAS, Agreement No. 24–65, 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; and WHEREAS, Assembly Bill 1486 (“AB 1486”) expanded the Surplus Land Act (Government Code section 54220 et seq.) (the “SLA”) requirements for local agencies prior to the disposition and disposal of any “surplus land" or "exempt surplus land"; and WHEREAS, the Property meets the definition of “surplus land,” as it is no longer necessary for the City’s use and the City seeks to dispose of the Property; and Whereas, even if the SLA were to apply, the Property would be exempt surplus land, pursuant to section 54221(f)(1)(D) of the SLA, because it is being transferred to the MHA, another government agency, for its use.
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.
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 170 of 248 Resolution No. 24–3439 Page 2 of 2
SECTION 3: The City of Montclair is hereby authorized and directed to enter Agreement 24–65, 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 Property to the Montclair Housing Authority.
SECTION 5: The City of Montclair hereby finds and declares that the Property is no longer necessary for the City’s use and are surplus land, as defined in California Government Code section 54221, based on the true and correct written findings found in this Resolution and incorporated herein by reference. The City is authorized to transfer the Property without regard to the SLA pursuant to Government Code section 54221(f)(1)(D), so long as the transfer is to another government agency, the Montclair Housing Authority, for their use.
SECTION 5: The City Council authorizes City Manager Edward C. Starr to sign Agreement No. 24–65 on behalf of the City of Montclair.
SECTION 6: The City Clerk shall certify to the adoption of this Resolution.
APPROVED AND ADOPTED this XX day of XX, 2024.
Mayor
ATTEST:
City Clerk
I, Andrea M. Myrick, City Clerk of the City of Montclair, DO HEREBY CERTIFY that Resolution No. 24–3439 was duly adopted by the Montclair City Council at a regular meeting thereof held on the XX day of XX, 2024, 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 – 08/19/2024 Page 171 of 248 MHA Resolution No. 24–02 Page 1 of 2
RESOLUTION NO. 24–02
A RESOLUTION OF THE MONTCLAIR HOUSING AUTHORITY
APPROVING AGREEMENT NO. 24–65, AN AFFORDABLE
HOUSING AGREEMENT BY AND BETWEEN THE CITY OF
MONTCLAIR, MONTCLAIR HOUSING AUTHORITY, AND
MONTCLAIR HOUSING CORPORATION, AND ACCEPTING
THE TRANSFER OF CERTAIN REAL PROPERTY LOCATED AT
9603 MILLS AVENUE, MONTCLAIR, CALIFORNIA, FROM THE
CITY OF MONTCLAIR
WHEREAS, the City of Montclair (the "City") acquired property located at 9603 Mills Avenue (the "Property") with funds from the City's Economic Development Agency Assets Fund for the purpose of increasing, improving, and preserving the City of Montclair’s supply of low–and–moderate income housing available at an affordable cost; and
WHEREAS, the City is the owner of that Property within the corporate limits of the City of Montclair; and
WHEREAS, pursuant to the provisions of the California Housing Authority Law (Part 2 of Division 24 of the Health and Safety Code [herein, the "Housing Authority Law"]), the City has designated the Montclair Housing Authority (the "Housing Authority") as the successor housing entity for the City of Montclair; and WHEREAS, pursuant to the Housing Authority Law, the Housing Authority is a housing authority duly established and operating as a local housing authority performing a public function and may make and execute contracts necessary or convenient to the exercise of its powers; and
WHEREAS, the Montclair Housing Corporation (the "Housing Corporation") was formed as a 501(c)(3) to operate and maintain the housing assets including single and multi–family residential units of the Housing Authority; and WHEREAS, the City desires to convey to the Housing Authority the Property and the Housing Authority desires to acquire the Property from the City; and WHEREAS, upon acquiring the Property, the Housing Authority intends to lease the Property to the Housing Corporation for operation of the Property as an affordable rental housing resource for low–to–moderate income households; and WHEREAS, Agreement No. 24–65, an Affordable Housing Agreement by and between the City, Housing Authority, and Housing Corporation, provides for the transaction contemplated above to occur in accordance with the public purposes and provisions of applicable state and local laws and requirements.
NOW, THEREFORE, BE IT RESOLVED that the Montclair Housing Authority Board of Directors does hereby find, determine, and order as follows:
SECTION 1: The above recitals are true and correct and are a substantive part of this Resolution.
SECTION 2: The Montclair Housing Authority hereby finds and determines that the transfer of the Property to the Montclair Housing Authority will ensure the continued preservation and availability of low– and moderate–income housing is available at an affordable cost.
SECTION 3: The Montclair Housing Authority is hereby authorized and directed to enter Agreement 24–65, an Affordable Housing Agreement by and among the City of Montclair, Montclair Housing Authority, and Montclair Housing Corporation.
SECTION 4: The Montclair Housing Authority agrees to accept the transfer of Property from the City of Montclair. The Executive Director of the Montclair Housing Authority, or designee, is authorized to record the grant deeds and further actions which are necessary or appropriate to transfer the Property to the Montclair Housing Authority.
SECTION 5: The Montclair Housing Authority Secretary shall certify to the adoption of this Resolution.
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 172 of 248 MHA Resolution No. 24–02 Page 2 of 2
APPROVED AND ADOPTED this XX day of XX, 2024.
Chairman
ATTEST:
Secretary
I, Andrea M. Myrick, Secretary of the Montclair Housing Authority, DO HEREBY CERTIFY that Resolution No. 24–02 was duly adopted by the Montclair Housing Authority Board of Directors at a regular meeting thereof held on the XX day of XX, 2024, and that it was adopted by the following vote, to–wit:
AYES: XX
NOES: XX
ABSTAIN: XX
ABSENT: XX
Andrea M. Myrick
Secretary
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 173 of 248 MHC Resolution No. 24–03 Page 1 of 2
RESOLUTION NO. 24–03
A RESOLUTION OF THE MONTCLAIR HOUSING CORPORATION
APPROVING AGREEMENT NO. 24–03, AN AFFORDABLE HOUSING
AGREEMENT BY AND BETWEEN THE CITY OF MONTCLAIR,
MONTCLAIR HOUSING AUTHORITY, AND MONTCLAIR HOUSING
CORPORATION
WHEREAS, the City of Montclair (the "City") acquired property located at 9603 Mills Avenue (the "Property") with funds from the City's Economic Development Agency Assets Fund, for the purpose of increasing, improving, and preserving the City of Montclair’s supply of low–and–moderate income housing available at an affordable cost; and
WHEREAS, the City is the owner of that Property within the corporate limits of the City of Montclair; and
WHEREAS, pursuant to the provisions of the California Housing Authority Law (Part 2 of Division 24 of the Health and Safety Code [herein, the "Housing Authority Law"]), the City has designated the Montclair Housing Authority (the "Housing Authority") as the successor housing entity for the City of Montclair; and WHEREAS, pursuant to the Housing Authority Law, the Housing Authority is a housing authority duly established and operating as a local housing authority performing a public function and may make and execute contracts necessary or convenient to the exercise of its powers; and
WHEREAS, the Montclair Housing Corporation (the "Housing Corporation") was formed as a 501(c)(3) to operate and maintain the housing assets including single and multi–family residential units of the Housing Authority; and WHEREAS, the City desires to convey to the Housing Authority the Property and the Housing Authority desires to acquire the Property from the City; and WHEREAS, upon acquiring of the Property, the Housing Authority intends to lease the Property to the Housing Corporation for operation of the Property as an affordable rental housing resources for low–to–moderate income households; and WHEREAS, Agreement No. 24–65, an Affordable Housing Agreement by and between the City, Housing Authority, and Housing Corporation, provides for the transaction contemplated above to occur in accordance with the public purposes and provisions of applicable state and local laws and requirements.
NOW, THEREFORE, BE IT RESOLVED that the Montclair Housing Corporation Board of Directors does hereby find, determine, and order as follows:
SECTION 1: The above recitals are true and correct and are a substantive part of this Resolution.
SECTION 2: The Montclair Housing Corporation hereby finds and determines that the transfer of the Property to the Montclair Housing Authority will ensure the continued preservation and availability of low– and moderate–income housing is available at an affordable cost.
SECTION 3: The Montclair Housing Corporation is hereby authorized and directed to enter Agreement 24–65, an Affordable Housing Agreement by and among the City of Montclair, Montclair Housing Authority, and Montclair Housing Corporation.
SECTION 4: The Montclair Housing Corporation authorizes the Executive Director of the Montclair Housing Corporation to execute Agreement No. 24–65 on behalf of the Montclair Housing Corporation.
SECTION 5: The Montclair Housing Corporation Secretary shall certify to the adoption of this Resolution.
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 174 of 248 MHC Resolution No. 24–03 Page 2 of 2
APPROVED AND ADOPTED this XX day of XX, 2024.
Chair
ATTEST:
Secretary
I, Andrea M. Myrick, Secretary of the Montclair Housing Corporation, DO HEREBY CERTIFY that Resolution No. 24–03 was duly adopted by the Montclair Housing Corporation Board of Directors at a regular meeting thereof held on the XX day of XX, 2024, and that it was adopted by the following vote, to–wit:
AYES: XX
NOES: XX
ABSTAIN: XX
ABSENT: XX
Andrea M. Myrick
Secretary
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 175 of 248 Agreement No. 24-65
AFFORDABLE HOUSING AGREEMENT
by and among the
MONTCLAIR HOUSING AUTHORITY
and the
CITY OF MONTCLAIR
and the
MONTCLAIR HOUSING CORPORATION
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 176 of 248 Agreement No. 24-65
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 – 08/19/2024 Page 177 of 248 Agreement No. 24-65
1 AFFORDABLE HOUSING AGREEMENT
THIS AFFORDABLE HOUSING AGREEMENT (the “Agreement”) is hereby entered into as of August 19, 2024 (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 9603 Mills 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 “Moderate 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.
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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 is located on and constitutes part of the Property. “Housing Authority Law” or “HAL” has the meaning set forth therefor in Recital A. “Moderate Income Household” shall mean a household earning between eighty percent (80%) to one-hundred and twenty percent (120%) 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 9603 Mills Avenue, Montclair, California, and described in the Legal Descriptions. “Property Value” means the amount of Six Hundred and Sixty Five Thousand Dollars ($665,000). 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 – 08/19/2024 Page 179 of 248 Agreement No. 24-65
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 – 08/19/2024 Page 180 of 248 Agreement No. 24-65
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 Moderate 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 – 08/19/2024 Page 181 of 248 Agreement No. 24-65
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 Moderate 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 Moderate 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 Moderate 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 – 08/19/2024 Page 182 of 248 Agreement No. 24-65
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.
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 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.
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7 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 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.”
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8 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 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 MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 185 of 248 Agreement No. 24-65
9 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
Lessee: Montclair Housing Corporation
5111 Benito Street
Montclair, California 91763
Attention: Executive Director
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10 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 Moderate Income household at Affordable Rent in conformity with the Lease shall not require the specific approval by the Authority Executive Director. (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.
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11 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.
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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:
Edward C. Starr
Authority Executive Director
CITY OF MONTCLAIR,
a municipal corporation
By:
Edward C. Starr
City Manager
MONTCLAIR HOUSING CORPORATION,
a California nonprofit public benefit corporation
By:
Edward C. Starr
Executive Director
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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:
1009-191-01-0000
POMONA LAND AND WATER CO SUB COM AT INTERSECTION ELY LI OF MILLS AVE AND S LI LOT 2 BLK 8 TH N 20 DEG 05 MIN 35 SECONDS E 85.96 FT TH E 105 FT TH S 20 DEG 05 MIN 35 SECONDS W 85.96 FT TO S LI SD LOT TH W TO PT BEG EX ST .18 AC M/L MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 190 of 248 Agreement No. 24-65
Attachment No. 2
ATTACHMENT NO. 2
LEASE
By and Between
THE MONTCLAIR HOUSING AUTHORITY
and
MONTCLAIR HOUSING CORPORATION
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Attachment No. 2
LEASE
THIS LEASE (the “Lease”) is made as of August 19, 2024, 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 August 19, 2024 (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 Moderate 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 9603 Mills 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 August 19, 2024 (the “Commencement Date”) and continuing until [August 19, 2039] (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.
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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 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 the audit report unless the Authority Executive Director or designee authorizes an extension of time to submit such corrections.
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5.3 Payment of Rent. All rent that becomes due and payable pursuant to this Lease shall be paid to the Authority at the address of the Authority listed in Section 26.7 or such other place as the Authority may from time to time designate by written notice to the Lessee without notice or demand, and without setoff, counterclaim, abatement, deferment, suspension or deduction. Except as expressly provided herein, under no circumstances or conditions, whether now existing or hereafter arising, or whether beyond the present contemplation of the parties, shall the Authority be expected or required to make any payment of any kind whatsoever or to perform any act or obligation whatsoever or be under any obligation or liability hereunder or with respect to the Properties.
SECTION 6. AFFORDABLE HOUSING REQUIREMENTS
6.1 Affordable Unit. The Lessee agrees to make available, restrict occupancy to, and rent the House to “Moderate Income Households” at the rents established pursuant to Section 6.6 hereof. “Moderate Income Household” shall mean a household earning between eighty percent (80%) to onehundred and twenty percent (120%) of San Bernardino County median income as determined pursuant to Health and Safety Code Section 50079.5.
6.2 Lease Requirements. Prior to rental of the Properties, Lessee shall submit a standard lease form to the Authority for Authority’s approval. The Authority shall approve such lease form upon finding that such lease form is consistent with this Lease and the Agreement. The Lessee shall enter into a lease, in the form approved by the Authority, with each tenant of the House.
6.3 Duration of Affordability Requirements. The Property shall be subject to the requirements of this Section 6 for a period coextensive with the term of this Lease beginning on the Commencement Date. The duration of this requirement shall be known as the “Affordability Period.” All tenants residing in the House during the last two (2) years of the Affordability Period shall be given notice by the Lessee at least once every six (6) months of the expiration date of this requirement, and that the rent payable on the Property may be raised to a market rate rent at the end of the Affordability Period.
6.4 Selection of Tenants. The Property shall be leased to tenants selected by the Lessee who meet all of the requirements provided herein. The Authority may, from time to time, assist in the leasing of the House by providing to the Lessee names of persons who have expressed interest in renting the House. Lessee shall adopt a tenant selection system, which shall be approved by the Authority. The tenant selection system shall include, without limitation, a method for investigation of the credit history of proposed tenants through obtaining a credit report on the proposed tenant. Highest priority in the selection of tenants shall be given to those applicants who have been displaced by Authority projects, if any.
6.5 Income of Tenants. Prior to the rental or lease of each of the House to a tenant, and annually thereafter, the Lessee shall obtain an income certification from the tenant of the Properties.
The Lessee shall verify the income certification of the tenant in one or more of the following methods:
(A) obtain two (2) paycheck stubs from the tenant’s two (2) most recent pay periods, if any.
(B) obtain a true copy of an income tax return from the tenant for the most recent tax year in which a return was filed.
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(C) obtain an income verification certification from the employer of the tenant. (D) obtain an income verification certification from the Social Security Administration and/or the California Department of Social Services if the tenant receives assistance from such agencies.
(E) obtain a credit report from a commercial credit reporting agency. (F) obtain an alternate form of income verification reasonably requested by the Lessee, if none of the above forms of verification is available to the Lessee.
A person or family who at the time of income certification qualified as a Moderate Income Household shall continue to be deemed so qualified, until such time as the person or family’s income is redetermined and the person or family is determined by the Lessee to no longer be so qualified, even if such person or family’s income has subsequently increased to an amount above the applicable income level. Upon the Lessee’s determination that the tenant is no longer qualified as a Moderate Income Household, such tenant shall no longer be eligible to rent the Property and shall be given a written notice which requires such tenant to vacate the Property within sixty (60) days, and the Lessee shall provide assistance to such tenants in finding another appropriate rental unit in the vicinity.
The tenant lease shall contain the above provisions. In addition, the Lessee shall annually submit to the Authority a certification that the House is actually occupied by Low-Income Households in such form as may be provided by the Authority.
6.6 Determination of Affordable Rent for the Property. The House shall be rented at an “Affordable Rent” to be established by the Authority as provided herein. The maximum monthly rental amount for the Property shall be established at the lesser of (a) fair market rent, as reasonably determined by the Operator, or (b) thirty percent (30%) of sixty percent (60%) of San Bernardino County median income for a household size appropriate for the unit or, if greater, the amount determined pursuant to Health and Safety Code section 50053(b)(3). Household size appropriate to the unit shall mean two persons for a one bedroom House, three persons for a two bedroom House, four persons for a three bedroom House, and five persons for a four bedroom House. The rents of the Property may be increased once per year, regardless of when particular tenants commenced occupancy of the House. The maximum monthly rental amount for the House shall include a reasonable utilities allowance to be determined by the Authority, which utilities allowance shall be set at an amount which will cover the projected charge for all utilities (whether paid for by Lessee or paid directly by the individual tenant), including gas and electrical service, water, sewer and garbage collection, but excluding telephone service and cable television. The Authority may in its discretion base the utilities allowance on a utilities allowance adopted in connection with the Section 8 program administered by the United States Department of Housing and Urban Development. Upon the approval of the Authority or Authority Executive Director, rents may be established at amounts which are lower than the maximum monthly rental amounts set forth above.
SECTION 7. UTILITIES AND TAXES.
7.1 Utilities. Lessee shall pay or cause to be paid by the tenants all charges for gas, electricity, water, sewer, garbage collection, cable television, and other utilities furnished to the House.
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7.2 Real Estate Taxes.
(A) As used herein, the term “real estate taxes” shall mean all real estate taxes, assessments for improvements to the House, municipal or county water and sewer rates and charges which shall be levied against the House, or any interest therein, and which become a lien thereon and accrues during the Term.
(B) The Property shall be assessed and taxed in the same manner as privately owned property, provided, however, that Lessee may apply for and obtain a full or partial exemption from property taxes. The Authority shall provide notice to the San Bernardino County Assessor within thirty (30) days of the commencement of this Lease as required by Health and Safety Code Section 33673.1. Lessee shall pay or cause to be paid, before any fine, penalty, interest or cost may be added thereto for the nonpayment thereof, all real estate taxes levied against any and all interests in the Property during the Term, and not merely the assessed value of the leasehold interest in the Property. (C) Any real estate taxes which are payable by Lessee hereunder shall be prorated between Authority and Lessee as of the Commencement Date and then again at the expiration or earlier termination of the Term.
(D) Lessee shall have the right to apply for the “welfare exemption” and any other applicable exemption from real property taxes, and shall further have the right to contest the amount or validity of any real estate taxes, in whole or in part, by appropriate administrative and legal proceedings, without any costs or expense to Authority. Lessee may postpone payment of any such contested real estate taxes pending the prosecution of such proceedings and any appeals so long as such proceedings shall operate to prevent the collection of such real estate taxes and the sale of the Property to satisfy any lien arising out of the nonpayment of the same, and Lessee furnishes a bond to Authority securing the payment of the same in the event a decision in such contest shall be adverse to Lessee.
7.3 Personal Property Taxes. Lessee covenants and agrees to pay before delinquency all personal property taxes, assessments and liens of every kind and nature upon all personalities as may be from time to time situated within the Property.
SECTION 8. OWNERSHIP OF IMPROVEMENTS, FIXTURES AND FURNISHINGS.
The Property shall, during the Term, be and remain the property of the Authority. Upon termination of this Lease, whether by expiration of the Term or otherwise, all fixtures and furnishings within the Property shall, without compensation to Lessee, be Authority’s property, free and clear of all claims to or against them by Lessee or any third person, firm or entity.
SECTION 9. INDEMNIFICATION: FAITHFUL PERFORMANCE.
Lessee shall not suffer or permit any liens to be enforced against the fee simple estate as to the Property, nor against Lessee’s leasehold interest therein by reason of work, labor, services or materials supplied or claimed to have been supplied to Lessee or anyone holding the Property, or any part thereof, through or under Lessee, and Lessee agrees to defend, indemnify and hold Authority harmless against such liens. If any such lien shall at any time be filed against the Property, Lessee shall, within thirty (30) days after notice to Lessee of the filing thereof, cause the same to be discharged of record; provided, however, that Lessee shall have the right to contest the amount or validity, in whole or in MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 196 of 248 Attachment No. 2
part, of any such lien by appropriate proceedings but in such event, Lessee shall notify Authority and promptly bond such lien in the manner authorized by law with a responsible surety company qualified to do business in the State of California or provide other security acceptable to Authority. Lessee shall prosecute such proceedings with due diligence. Nothing in this Lease shall be deemed to be, nor shall be construed in any way to constitute, the consent or request of Authority, express or implied, by inference or otherwise, to any person, firm or corporation for the performance of any labor or the furnishing of any materials for any construction, rebuilding, alteration or repair of or to the Property or any part thereof. Prior to commencement of any repair or alteration to the Property, Lessee shall give Authority not less than thirty (30) days advance notice in writing of intention to begin said activity in order that nonresponsibility notices may be posted and recorded as provided by State and local laws; provided that a shorter notice may be given in cases of emergency.
SECTION 10. MAINTENANCE AND REPAIR.
Lessee agrees to assume full responsibility for the management, operation and maintenance of the Property throughout the Term without expense to Authority, and to perform all repairs and replacements necessary to maintain and preserve the Property in a clean and safe condition reasonably satisfactory to Authority and in compliance with all applicable laws. Lessee agrees that Authority shall not be required to perform any maintenance, repairs or services or to assume any expense in connection with the Property. Lessee hereby waives all rights to make repairs or to cause any work to be performed at the expense of Authority as provided for in Section 1941 and 1942 of the California Civil Code.
The Lessee shall manage and maintain the Property in conformity with the Montclair Municipal Code.
The following standards shall be complied with by Lessee and its maintenance staff, contractors or subcontractors:
(A) Lessee shall maintain the Property in a safe and sanitary fashion in a first class condition.
(B) Landscape maintenance shall include, but not be limited to:
watering/irrigation; fertilization; mowing, edging, and trimming of grass; tree and shrub pruning; trimming and shaping of trees and shrubs to maintain a healthy, natural appearance and safe road conditions and visibility, and optimum irrigation coverage; replacement, as needed, of all plant materials; control of weeds in all planters, shrubs, lawns, ground covers, or other planted areas; and staking for support of trees.
(C) Clean-up maintenance shall include, but not be limited to: maintenance of all private paths, parking areas, driveways and other paved areas in clean and weed-free condition; maintenance of all such areas clear of dirt, mud, trash, debris or other matter which is unsafe or unsightly; removal of all trash, litter and other debris from improvements and landscaping prior to mowing; clearance and cleaning of all areas maintained prior to the end of the day on which the maintenance operations are performed to ensure that all cuttings, weeds, leaves and other debris are properly disposed of by maintenance workers.
(D) All maintenance work shall conform to all applicable federal and state Occupation Safety and Health Act standards and regulations for the performance of maintenance. (E) Any and all chemicals, unhealthful substances, and pesticides used in and during maintenance shall be applied only by persons possessing valid California applicators licenses, MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 197 of 248 Attachment No. 2
and in strict accordance with all governing regulations. Precautionary measures shall be employed recognizing that all areas are open to public access.
(F) Lessee shall make such capital repairs to the Property as are necessary, including the following: carpet and drape replacement; appliance replacement; exterior painting, hot water heater replacement; plumbing fixtures replacement, including tubs and showers, toilets, lavatories, sinks, faucets; air conditioning and heating replacement; asphalt repair and replacement, and seal coating; roofing repair and replacement; landscape tree replacement and irrigation pipe and controls replacement; gas line pipe replacement; and lighting fixture replacement.
Management and maintenance shall be overseen by the Authority or its designee and, if the above standards are breached, after notice and opportunity to cure within the time set forth in this paragraph, the Authority or its designee may in its reasonable discretion direct the Lessee to and the Lessee shall hire a management company acceptable to the Authority to manage the Property. If, at any time, the Lessee or the management company fails to adequately maintain such areas, and such condition is not corrected immediately upon notice of an imminent threat to health and safety or after expiration of thirty (30) days from the date of written notice from the Authority for all other violations, the Authority may (but shall not be obligated to) perform the necessary maintenance and Lessee shall pay such costs as are reasonably incurred for such maintenance.
SECTION 11. ENVIRONMENTAL MATTERS.
11.1 Definitions. For the purposes of this Lease, unless the context otherwise specifies or requires, the following terms shall have the meanings herein specified:
(A) The term “Hazardous Materials” shall mean (i) any “hazardous substance” as defined by the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. Section 9601, et seq.), as amended from time to time, and regulations promulgated thereunder; (ii) any “hazardous substance” as defined by the Carpenter-Presley-Tanner Hazardous Substance Account Act (California Health and Safety Code Sections 25300, et seq.), as amended from time to time, and regulations promulgated thereunder; (iii) asbestos; (iv) polychlorinated biphenyls; (v) petroleum, oil, gasoline (refined and unrefined) and their respective by products and constituents; and (vi) any other substance, whether in the form of a solid, liquid, gas or any other form whatsoever, which by any “Governmental Requirements” (as defined in Subparagraph c of this Section 11.1) either requires special handling in its use, transportation, generation, collection, storage, handling, treatment or disposal, or is defined as “hazardous” or harmful to the environment. (B) The term “Hazardous Materials Contamination” shall mean the contamination (whether presently existing or hereafter occurring) of the improvements, facilities, soil, groundwater, air or other elements on, in or of the Property by Hazardous Materials, or the contamination of the buildings, facilities, soil, groundwater, air or other elements on, in or of any other property as a result of Hazardous Materials at any time (whether before or after the Date of Lease) emanating from the Property.
(C) The term “Governmental Requirements” shall mean all past, present and future laws, ordinances, statutes, codes, rules, regulations, orders and decrees of the United States, the state, the county, the city, or any other political subdivision in which the Property are located, and any other state, county city, political subdivision, agency, instrumentality or other entity exercising jurisdiction over Authority, Lessee or the Property.
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11.2 Responsibility for Contamination. Lessee assumes any and all responsibility and Liabilities (as defined in Section 11.4 of this Lease) for all Hazardous Materials Contamination, which occurs during the Term of this Lease.
11.3 Indemnification. Lessee shall save, protect, defend, indemnify and hold harmless Authority and its officers, directors, shareholders, employees and agents from and against any and all liabilities, suits, actions, claims, demands, penalties, damages (including, without limitation, penalties, fines and monetary sanctions), losses, costs or expenses (including, without limitation, consultants’ fees, investigation and laboratory fees, reasonable attorneys’ fees and remedial and response costs) (the foregoing are hereinafter collectively referred to as “Liabilities”) which may now or in the future be incurred or suffered by Authority and its officers, directors, shareholders, employees or agents by reason of, resulting from, in connection with, or arising in any manner whatsoever as a direct or indirect result of (1) the presence on or under, or escape, seepage, leakage, spillage, discharge, emission or release from the Property of any Hazardous Materials or Hazardous Materials Contamination after the commencement of this Lease, including any Liabilities incurred under any Governmental Requirements relating to such Hazardous Materials or Hazardous Materials Contamination, (2) the performance by Lessee of any acts, including, but not limited to, the performance of any act required by this Lease, and (3) the performance by the Authority of any act required to be performed by the Lessee under this Lease. Lessee’s obligations under this Section 11.3 shall survive the expiration of this Lease.
Authority shall save, protect, defend, indemnify and hold harmless Lessee and its officers, directors, shareholders, employees and agents from and against any and all liabilities, suits, actions, claims, demands, penalties, damages (including without limitation, penalties, fines and monetary sanctions), losses, costs or expenses (including, without limitation, consultants’ fees, investigation and laboratory fees, reasonable attorneys’ fees and remedial and response costs) (the foregoing are hereinafter collectively referred to as “Liabilities”) which may now or in the future be incurred or suffered by Lessees and its officers, directors, shareholders, employees or agents by reason of, resulting from, in connection with, or arising in any manner whatsoever as a direct or indirect result of (1) the presence on or under, or escape, seepage, leakage, spillage, discharge, emission or release from the Authority of any Hazardous Materials or Hazardous Materials Contamination prior to the commencement of this Lease, including any Liabilities incurred under any Governmental Requirements relating to such Hazardous Materials or Hazardous Materials Contamination, (2) the performance by Authority of any acts, including, but not limited to, the performance of any act required by this Lease, and (3) the performance by the Lessee of any act required to be performed by the Authority under this Lease. Authority’s obligations under this Section 11.3 shall survive the expiration of this Lease.
11.4 Duty to Prevent Hazardous Material Contamination. Lessee shall take all necessary precautions to prevent the release of any Hazardous Materials into the environment. Such precautions shall include compliance with all Governmental Requirements with respect to Hazardous Materials. In addition, Lessee shall install and utilize such equipment and implement and adhere to such procedures as are consistent with the highest standards generally applied by residential developments as respects the disclosure, storage, use, removal and disposal of Hazardous Materials.
11.5 Obligation of Tenant to Remediate Premises. Notwithstanding the obligation of Lessee to indemnify Authority pursuant to Section 11.3 of this Lease, Lessee shall, at its sole cost and expense, promptly take (i) all actions required by any federal, state or local governmental agency or political subdivision or any Governmental Requirements and (ii) all actions necessary to make full MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 199 of 248 Attachment No. 2
economic use of the Property for the purposes contemplated by this Lease and the Agreement, which requirements or necessity arise from the presence upon, about or beneath the Property of any Hazardous Materials or Hazardous Materials Contamination no matter when occurring. Such actions shall include, but not be limited to, the investigation of the environmental condition of the Property, the preparation of any feasibility studies or reports and the performance of any cleanup, remedial, removal or restoration work. Lessee shall take all actions necessary to promptly restore the Property to an environmentally sound condition for the uses contemplated by this Lease and the Agreement notwithstanding any lesser standard of remediation allowable under applicable Governmental Requirements. Lessee shall nevertheless obtain the Authority’s written approval prior to undertaking any activities required by this Section 11.5 during the Term of this Lease, which approval shall not be unreasonably withheld so long as such actions would not adversely affect the Property or be harmful to any other person or property. The Authority’s obligations under this Section 11.5 shall survive the expiration of this Lease.
11.6 Right of Entry. Notwithstanding any other term or provision of this Lease, Lessee shall permit the Authority or its agents or employees to enter the Property at any time during normal business hours (except in the event of an emergency ), without prior notice in the event of an emergency, and with not less than forty-eight hours advance notice if no emergency is involved, to inspect, monitor and/or take emergency or long-term remedial action with respect to Hazardous Materials and Hazardous Materials Contamination on or affecting the Property, or to discharge Lessee’s obligations hereunder with respect to such Hazardous Materials and Hazardous Materials Contamination when Lessee has failed to do so. All costs and expenses incurred by the Authority in connection with performing Lessee’s obligations hereunder shall be reimbursed by Lessee to the Authority within ten (10) days of Lessee’s receipt of written request therefor.
11.7 Storage or Handling of Hazardous Materials. Lessee, at its sole cost and expense, shall comply with all Governmental Requirements for the storage, use, transportation, handling and disposal of Hazardous Materials. In the event Lessee does store, use, transport, handle or dispose of any Hazardous Materials, Lessee shall notify Authority in writing at least ten (10) days prior to their first appearance on the Property and Lessee’s failure to do so shall constitute a material default under this Lease. Lessee shall conduct all monitoring activities required or prescribed by applicable Governmental Requirements, and shall, at its sole cost and expense, comply with all posting requirements of Proposition 65 or any other similarly enacted Governmental Requirements. In addition, in the event of any complaint or governmental inquiry, or if otherwise deemed necessary by the Authority in its reasonable judgment, the Authority may require Lessee, at Lessee’s sole cost and expense, to conduct specific monitoring or testing activities with respect to Hazardous Materials on the Property. Lessee’s monitoring programs shall be in compliance with applicable Governmental Requirements, and any program related to the specific monitoring of or testing for Hazardous Materials on the Property, shall be satisfactory to Authority, in Authority’s reasonable discretion. Lessee shall further be solely responsible, and shall reimburse Authority, for all costs and expenses incurred by Authority arising out of or connected with the removal, clean-up and/or restoration work and materials necessary to return the Property and any property adjacent to the Property affected by Hazardous Materials emanating from the Property to their condition existing at the time of the Commencement Date. Lessee’s obligations hereunder shall survive the termination of this Lease.
11.8 Environmental Inquiries. Lessee shall notify Authority, and provide to Authority a copy or copies, of the following environmental permits, disclosures, applications, entitlements or inquiries relating to the Property: Notices of violation, notices to comply, citations, inquiries, clean-up or abatement orders, cease and desist orders, reports filed pursuant to self-reporting requirements and MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 200 of 248 Attachment No. 2
reports filed or applications made pursuant to any Governmental Requirement relating to Hazardous Materials and underground tanks, and Lessee shall report to the Authority, as soon as possible after each incident, any unusual, potentially important incidents, including but not limited to, the following:
(A) All required reports of releases of Hazardous Materials, including notices of any release of Hazardous Materials as required by any Governmental Requirement; (B) All fires;
(C) All instances where asbestos has been or may be disturbed by repair work, tenant improvements or other activities in buildings containing asbestos; (D) All notices of suspension of any permits;
(E) All notices of violation from Federal, State or local environmental authorities; (F) All orders under the State Hazardous Waste Control Act and the State Hazardous Substance Account Act and corresponding federal statutes, concerning investigation, compliance schedules, clean up, or other remedial actions; (G) All orders under the Porter-Cologne Act, including corrective action orders, cease and desist orders, and clean-up and abatement orders; (H) Any notices of violation from OSHA or Cal-OSHA concerning employees’ exposure to Hazardous Materials;
(I) All complaints and other pleadings filed against Lessee and/or Authority relating to Lessee’s storage, use, transportation, handling or disposal of Hazardous Materials on the Property.
In the event of a release of any Hazardous Materials into the environment, Lessee shall, as soon as possible after the release, furnish to the Authority a copy of any and all reports relating thereto and copies of all correspondence with governmental agencies relating to the release. Upon request of the Authority, Lessee shall furnish to the Authority a copy or copies of any and all other environmental entitlements or inquiries relating to or affecting the Property including, but not limited to, all permit applications, permits and reports including, without limitation, those reports and other matters which may be characterized as confidential.
SECTION 12. ALTERATION OF IMPROVEMENTS.
Lessee shall not make or permit to be made any structural alteration of, addition to or change in the Property, nor demolish all or any part of the Property without the prior written consent of Authority; provided, however, that the foregoing shall not prohibit or restrict the repair and/or replacement of the Property by Lessee. In requesting such consent Lessee shall submit to Authority detailed plans and specifications of the proposed work and an explanation of the need and reasons therefor. This provision shall not limit or set aside any obligation of Lessee under this Lease to maintain the Property in a clean and safe condition, including structural repair and restoration of damaged Property. Authority shall not be obligated by this Lease to make any improvements to the Property or to assume any expense therefor. Lessee shall not commit or suffer to be committed any MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 201 of 248 Attachment No. 2
waste or impairment of the Property, or any part thereof, except as otherwise permitted pursuant to this Lease.
SECTION 13. DAMAGE OR DESTRUCTION.
Lessee agrees to give notice to Authority of any fire or other damage (collectively “casualty”) that may occur on the Property within ten (10) days of such fire or damage. In the event of such casualty Lessee agrees, to the extent of any insurance proceeds available therefor, to make or cause to be made full repair of such casualty, or Lessee agrees, to the extent of any insurance proceeds available therefor, to clear and remove from the Property all debris resulting from such casualty and rebuild the Property in accordance with plans and specifications previously submitted to Authority and approved in writing in order to replace in kind and scope the Property which existed prior to such damage. In the event of a casualty in which the Property are not required to be repaired, restored or rebuilt by Lessee pursuant to the terms of this Section 13, and provided Lessee does not nevertheless elect to repair, restore or rebuild the Property although Lessee has no obligations to do so, Authority may terminate this Lease.
SECTION 14. SALE, ASSIGNMENT, SUBLEASE OR OTHER TRANSFER.
Except for (a) the lease of the Property to a tenant, and (b) transfers made pursuant to Section 6.4 of the Agreement, Lessee shall not sell, assign, sublease or otherwise transfer this Lease or any right therein, nor make any total or partial sale, assignment, sublease or transfer in any other mode or form of the whole or any part of the Property (each of which events is referred to in this Lease as an “Assignment”), without prior written approval of Authority, which approval shall not be unreasonably withheld as more particularly set forth below in this Section 14.2. Notwithstanding anything else herein contained, the term “Assignment” shall not be deemed to include the obtaining of any “Capital Improvement Loan(s)” (all as hereinafter defined), but shall be deemed to include all refinancing thereof and any other loans approved by Authority. Any purported assignment without the prior written consent of Authority shall render this Lease absolutely null and void and shall confer no rights whatsoever upon any purported assignee or transferee. The approval of Authority to any Assignment shall not be unreasonably withheld if the proposed purchaser, assignee, sublessee or transferee has reasonably demonstrated to the Authority, at least sixty (60) days prior to the effective date of such Assignment, such proposed purchaser’s, assignee’s, sublessee’s or transferee’s financial capability and overall competence and experience to construct and operate the Property. Review of experience in operating similar projects shall not be required with respect to institutional lenders providing financing pursuant to Section 15 hereof so long as the original Lessee (or a successor that has been expressly approved in writing by the Authority) remains responsible for operating the Property and performing as Lessee pursuant to this Lease. Approval by Authority of any sale, assignment, sublease or transfer shall be conditioned upon such purchaser, assignee, sublessee or transferee agreeing in writing to assume the rights and obligations thereby sold, assigned, subleased or transferred, and to keep and perform all covenants, conditions and provisions of this Lease which are applicable to the rights acquired. In the absence of specific written agreement by Authority, no such sale, assignment, sublease or transfer of this Lease or the Property (or any portion thereof), or approval by Authority of any such sale, assignment, sublease or transfer shall be deemed to relieve Lessee or any other party from any obligation under this Lease.
Notwithstanding anything else contained in this Section 14, this Lease may be assigned, without the consent of Authority, to the purchaser at any foreclosure sale, whether judicial or non-judicial, or to the beneficiary or mortgagee under any Permitted Encumbrance (as defined in MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 202 of 248 Attachment No. 2
Section 15), pursuant to foreclosure or similar proceedings, or pursuant to an assignment or other transfer of this Lease to such beneficiary or mortgagee in lieu thereof, and may thereafter be assigned by such beneficiary or mortgagee without Authority’s consent, and any such purchaser, beneficiary, mortgagee or assignee shall be liable to perform the obligations herein imposed on Lessee, other than as set forth in Sections 15 of this Lease, only for and during the period that such purchaser, beneficiary, mortgagee or assignee is in possession or ownership of the leasehold estate created hereby.
SECTION 15. FINANCING.
Lessee may, at any time and from time to time during the Term, upon prior written notice to the Authority and subject to the requirements of Sections 5.3 and 14 hereof, request that the Authority authorize Lessee to mortgage, pledge, hypothecate or otherwise encumber to a federally or state chartered bank or savings and loan, a life insurance company, a mortgage company, a pension fund, investment trust or similar institutional lender (herein called “Lender”) by deed of trust or mortgage or other security instrument all or any portion of Lessee’s right, title and interest pursuant to this Lease and the leasehold estate hereby, following thirty (30) days prior written notice to Authority (which notice shall include an itemization of and budget for the capital improvements to be financed), to secure financing of capital improvements to the Property (“Capital Improvement Loan(s)”). The Authority shall consider such request in good faith, and may approve, disapprove or conditionally approve in Authority’s reasonable discretion. The encumbrances securing the Capital Improvement Loan(s), together with refinancing of the Capital Improvement Loan(s) approved by the Authority pursuant to Section 14, and any other loan or encumbrance approved by the Authority pursuant to this Lease shall be deemed to be “Permitted Encumbrances.”
The proceeds of any Capital Improvement Loan(s) shall be used solely to pay (i) the costs of construction of capital improvements to the Property, and (ii) the costs of obtaining the Capital Improvement Loan(s).
Authority and Lessee acknowledge and agree that neither Authority’s interest or fee ownership of the Property nor Authority’s right to receive Rent hereunder shall be subordinate to any Permitted Encumbrance or any other lien, mortgage, deed of trust, pledge or other encumbrance of Lessee’s leasehold interest hereunder.
SECTION 16. INDEMNITY.
During the Term, Lessee agrees that Authority and City, their agents, officers, representatives and employees, shall not be liable for any claims, liabilities, penalties, fines or for any damage to the goods, Property or effects of Lessee, its sublessees or representatives, agents, employees, guests, licensees, invitees, patrons or clientele or of any other person whomsoever, nor for personal injuries to, or deaths of any persons, whether caused by or resulting from any act or omission of Lessee or its sublessees or any other person on or about the Property, or in connection with the operation thereof, or from any defect in the Property. Lessee agrees to indemnify and save free and harmless Authority and City and their authorized agents, officers, representatives and employees against any of the foregoing liabilities and any costs and expenses incurred by Authority or City on account of any claim or claims therefor. Lessee shall not be responsible for (and such indemnity shall not apply to) any acts, errors or omissions of Authority, City, or their respective agents, officers, representatives or employees.
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SECTION 17. INSURANCE.
17.1 Insurance to be Provided by Lessee. During the Term, Lessee, at its sole cost and expense, shall:
(A) Maintain or cause to be maintained a policy or policies of insurance against loss or damage to the Property of all property of an insurable nature located upon the Property, resulting from fire, lightning, vandalism, malicious mischief, and such other perils ordinarily included in extended coverage fire insurance policies. Such policy or policies shall be required to provide coverage against loss or damage resulting from flood and/or earthquake only to the extent such coverage is available at commercially reasonable rates and is required by any lender making a loan to Lessee which is secured by the Property. Such insurance policy shall name Authority as an additional insured and shall be maintained in an amount not less than one hundred percent (100%) of the full insurable value of the Property, as defined herein in this Section 17.
(B) Maintain or cause to be maintained public liability insurance issued by a company with a Best’s rating of not less than A, to protect against loss from liability imposed by law for damages on account of personal injury, including death therefrom, suffered or alleged to be suffered by any person or persons whomsoever on or about the Property, or in connection with the operation thereof, resulting directly or indirectly from any acts or activities of Lessee or its sublessees, or any person acting for Lessee, or under their respective control or direction, and also to protect against loss from liability imposed by law for damages to any property of any person occurring on or about the Property, or in connection with the operation thereof, caused directly or indirectly by or from acts or activities of Lessee of its sublessees, or any person acting for Lessee, or under their respective control or direction. Such property damage and personal injury insurance shall also provide for and protect against incurring any legal cost in defending claims for alleged loss. Such personal injury and property damage insurance shall be maintained in full force and effect during the entire term of this Lease in the amount of at least One Million Dollars ($1,000,000) combined single limit, naming Authority and City as additional insured. If the operation under this Lease results in an increased or decreased risk in the reasonable determination of Authority, then Lessee agrees that the minimum limit hereinabove designated shall be changed accordingly upon request by Authority. Lessee agrees that provisions of this paragraph as to maintenance of insurance shall not be construed as limiting in any way the extent to which Lessee may be held responsible for the payment of damages to persons or property resulting from Lessee’s activities, activities of its sublessees or the activities of any other person or persons for which Lessee is otherwise responsible. Pollution liability insurance provided in compliance with the indemnification provision required by Section 11.3 hereof shall be required only to the extent such coverage is available at commercially reasonable rates. (C) Maintain or cause to be maintained worker’s compensation insurance issued by a responsible carrier authorized under the laws of the State of California to insure employers against liability for compensation under the workers’ compensation laws now in force in California, or any laws hereafter enacted as an amendment or supplement thereto or in lieu thereof. Such workers’ compensation insurance shall cover all persons employed by Lessee in connection with the Property and shall cover full liability for compensation under any such act aforesaid, based upon death or bodily injury claims made by, for on behalf of any person incurring or suffering injury or death in connection with the Property or the operation thereof by Lessee.
17.2 Definition of “Full Insurable Value”. The term “full insurable value” as used in this Section 17 shall mean the actual replacement cost (excluding the cost of excavation, foundation and MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 204 of 248 Attachment No. 2
footings below the lowest floor and without deduction for depreciation) of the Property, including the cost of construction of the Property, architectural and engineering fees, and inspection and supervision.
To ascertain the amount of coverage required, Lessee shall cause the full insurable value to be determined from time to time by appraisal by the insurer or, if no such appraisal is available, by an appraiser mutually acceptable to Authority and Lessee, not less often than once every three (3) years.
17.3 General Insurance Provisions. All liability policies of insurance provided for in this Section 17 shall name Lessee as the insured and Authority as an additional insured, as their respective interests may appear. All property casualty insurance policies shall include the interest of any Lessee’s Mortgagee, and may provide that any loss is payable jointly to Lessee and Lessee’s Mortgagee in which event such policies shall contain standard mortgage loss payable clauses. Lessee agrees to timely pay all premiums for such insurance and, at its sole cost and expense, to comply and secure compliance with all insurance requirements necessary for the maintenance of such insurance.
Lessee agrees to submit policies of all insurance required by this Section 17 of this Lease, or certificates evidencing the existence thereof, to Authority on or before the effective date of this Lease, indicating full coverage of the contractual liability imposed by this Lease. At least thirty (30) days prior to expiration of any such policy, copies of renewal policies, or certificates evidencing the existence thereof, shall be submitted to Authority.
All insurance provided for under this Section 17 shall be effected under policies issued by insurers of recognized responsibility, licensed or permitted to do business in the State of California, approved by Authority.
All policies or certificates of insurance shall: (i) provide that such policies shall not be cancelled or limited in any manner without at least thirty (30) days prior written notice to Authority; (ii) provide that such coverage is primary and not contributing with any insurance as may be obtained by the Authority and shall contain a waiver of subrogation for the benefit of the City and the Authority; and (iii) name the City, Authority, and their respective officers, agents, and employees as additional insured under such policies.
17.4 Failure to Maintain Insurance. If Lessee fails or refuses to procure or maintain insurance as required by this Lease, Authority shall have the right, at Authority’s election, and upon ten (10) days prior notice to Lessee, to procure and maintain such insurance. The premiums paid by Authority shall be treated as added rent due from Lessee, to be paid on the first day of the month following the date on which the premiums were paid. Authority shall give prompt notice of the payment of such premiums, stating the amounts paid and the name of the insured(s).
17.5 Insurance Proceeds Resulting from Loss or Damage to Property. All proceeds of insurance with respect to loss or damage to the Property during the term of this Lease shall be payable, under the provisions of the policy of insurance, to Lessee, and said proceeds shall constitute a trust fund to be used for the restoration, repair and rebuilding of the Property in accordance with plans and specifications approved in writing by Authority. To the extent that such proceeds exceed the cost of such restoration, repair or rebuilding, then such additional proceeds shall be distributed to the Authority. Notwithstanding the foregoing, within the period during which there is an outstanding mortgage upon the Property, such proceeds shall be payable in accordance with Section 17.3 of this Lease.
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In the event this Lease is terminated by mutual agreement of Authority and Lessee and said Property are not restored, repaired or rebuilt, the insurance proceeds shall be jointly retained by the Authority and Lessee and shall be applied first to any payments due under this Lease from Lessee to Authority, second to restore the Property to its original condition and to a neat and clean condition, and finally any excess shall be apportioned between Lessee and Authority as their interests may appear; provided, however, that within any period when there is an outstanding mortgage upon the Property, such proceeds shall be applied first to discharge the debt secured by the mortgage and then for the purposes and in the order set forth above in this paragraph. The value of each interest for the purpose of apportioning excess proceeds under this Section 17.5 shall be the fair market value of such interests immediately prior to the occurrence of the damage or destruction.
SECTION 18. EMINENT DOMAIN.
In the event that the Property or any part thereof shall be taken for public purposes by condemnation as a result of any action or proceeding in eminent domain, then, as between Authority and Lessee (or mortgagee, if a mortgage is then in effect), the interests of Authority and Lessee (or mortgagee) in the award and the effect of the taking upon this Lease shall be as follows:
(A) In the event of such taking of only a part of the Property, leaving the remainder of the Property in such location and in such form, shape and size as to be used effectively and practicably for the conduct thereon of the uses permitted hereunder, this Lease shall terminate and end as to the portion of the Property so taken as of the date title to such portion vests in the condemning authority, but shall continue in full force and effect as to the portion of the Property not so taken. (B) In the event of taking of only a part of the Property, leaving the remainder of the Property in such location, or in such form, shape or reduced size as to render the same not effectively and practicably usable, for the conduct thereon of the uses permitted hereunder, this Lease and all right, title and interest thereunder shall cease on the date title to the Property or the portion thereof so taken vests in the condemning authority.
(C) In the event the Property is so taken, this Lease and all of the right, title and interest thereunder, shall cease on the date title to the Property vests in the condemning authority. (D) Promptly after a partial taking, at Lessee’s expense and in the manner specified in provisions of this Lease related to maintenance, repairs, alterations, Lessee shall restore the Property, to the extent of condemnation proceeds received by Lessee, so as to place them in a condition suitable for the uses and purposes for which the Property was leased. (E) In the event of any taking under subparagraphs (a), (b) or (c) hereinabove, that portion of any award of compensation attributable to the fair market value of the Property or portion thereof taken, valued as subject to this Lease, shall belong to Authority. That portion of any award attributable to the fair market value of Lessee’s leasehold interest in the Property pursuant to this Lease shall belong to Lessee. That portion of any award attributable to the fair market value of the Property or portion thereof taken shall belong to Authority and Lessee, as their interests may appear, except that in the event of a partial taking, where the Lease remains in effect and Lessee is obligated to restore or repair the Property, then Lessee shall be entitled to any portion of the award attributable to severance damages to the remaining Property. Said award shall be used for the restoration, repair or rebuilding of the Property in accordance with plans and specifications approved in writing by Authority. To the extent that said award for severance damages exceeds the cost of such restoration, repair or rebuilding, MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 206 of 248 Attachment No. 2
then such award shall be apportioned between Lessee and Authority as their interests may appear. The value of each interest for the purpose of apportionment under this Section shall be the fair market value of such interests at the time of the taking.
(F) Provided, however, that within the period during which there is an outstanding mortgage on the Property, the mortgagee shall be entitled to any portion of the award attributable to the Property, to the extent of its interest therein. The mortgagee may at its option apply said portions of the award to restoration of the Property or to reduction of the mortgage. Any excess portion of the award attributable to the condemnation of the Property shall be apportioned between Lessee and Authority as their interests may appear.
(G) Notwithstanding the foregoing provisions of this Section, Authority may, in its discretion and without affecting the validity and existence of this Lease, transfer Authority’s interests in the Property in lieu of condemnation to any authority entitled to exercise the power of eminent domain. In the event of such transfer by Authority, Lessee (or mortgagee if a mortgage is then in effect) and Authority shall retain whatever rights they may have to recover from said authority the fair market value of their respective interests in the Property taken by the authority. (H) All valuations to be made pursuant to this Section 18 shall be made by mutual agreement of Authority and Lessee.
SECTION 19. OBLIGATION TO REFRAIN FROM DISCRIMINATION.
There shall be no discrimination against or segregation of any person or group of persons, on account of sex, marital status, race, color, creed, religion, national origin or ancestry in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the Property, and Lessee itself or any person claiming under or through it shall not establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees thereof or any portion thereof, or in the providing of goods, services, facilities, privileges, advantages and accommodation.
Lessee shall refrain from restricting the rental, sale or lease of the Property, or any portion thereof, on the basis of sex, marital status, race, color, creed, religion, ancestry or national origin of any person. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses:
(A) In Leases: “The lessee herein covenants by and for itself, its heirs, executors, administrators and assigns, and all persons claiming under or through it, and this lease is made and accepted upon and subject to the following conditions:
“That there shall be no discrimination against or segregation of any person or group of persons, on account of sex, marital status, race, color, creed, religion, disability, familial status, national origin, or ancestry, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee itself, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased.” MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 207 of 248 Attachment No. 2
(B) In Contracts:
“There shall be no discrimination against or segregation of, any person or group of persons on account of sex, marital status, race, color, creed, religion, disability, familial status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferee itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use of occupancy of tenants, lessees, subtenants, sublessees or vendees of the premises.”
SECTION 20. NONDISCRIMINATION IN EMPLOYMENT.
Lessee, for itself and its successors and assigns, agrees that during the operation of the Property provided for in this Lease, and during any work of repair or replacement, Lessee will not discriminate against any employee or applicant for employment because of race, color, creed, religion, sex, marital status, physical or mental disability, sexual orientation, ancestry or national origin.
SECTION 21. LABOR STANDARDS.
Lessee shall comply, and require all contractors and subcontractors employed pursuant to this Lease to comply with all applicable labor standards provisions of the California Labor Code and federal law, including payment of prevailing wages for off-site work. Lessee shall comply with all bidding requirements applicable pursuant to the California Public Contracts Code or other applicable law.
SECTION 22. COMPLIANCE WITH LAW.
Lessee agrees, at its sole cost and expense, to comply and secure compliance with all the requirements now in force, or which may hereafter be in force, of all municipal, county, state and federal authorities, pertaining to the Property, as well as operations conducted thereon, and to faithfully observe and secure compliance with, in the use of the Property, all applicable county and municipal ordinances and state and federal statutes now in force or which may hereafter be in force, and to pay before delinquency all taxes, assessments, and fees, if any, assessor levied upon Lessee or the Property, including the land and any buildings, structures, machines, appliances or other improvements of any nature whatsoever, erected, installed or maintained by Lessee or by reason of the business or other activities of Lessee upon or in connection with the Property. The judgment of any court of competent jurisdiction, or the admission of Lessee or any sublessee or permittee in any action or proceeding against them, or any of them, whether Authority be a party thereto or not, that Lessee, sublessee or permittee has violated any such ordinance or statute in the use of the Property shall be conclusive of that fact as between Authority and Lessee, or such sublessee or permittee.
SECTION 23. ENTRY AND INSPECTION.
Authority reserves and shall have the right during reasonable business hours (except in cases of emergency), upon forty-eight (48) hours prior notice (except in cases of emergency) to Lessee by the Executive Director of Authority, to enter the Property for the purpose of viewing and ascertaining the condition of the same, or to protect its interests in the Property or to inspect the operations conducted thereon.
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 208 of 248 Attachment No. 2
SECTION 24. RIGHT TO MAINTAIN.
In the event that the entry or inspection by Authority pursuant to Section 23 hereof discloses that the Property are not in a decent, safe, and sanitary condition, Authority shall have the right, after thirty (30) days written notice to Lessee (except in case of emergency, in which event no notice shall be necessary), to have any necessary maintenance work done for and at the expense of Lessee and Lessee hereby agrees to pay promptly any and all costs incurred by Authority in having such necessary maintenance work done in order to keep the Property in a decent, safe and sanitary condition. The rights reserved in this Section shall not create any obligations or Authority or increase obligations elsewhere in this Lease imposed on Authority.
SECTION 25. EVENTS OF DEFAULT AND REMEDIES.
25.1 Events of Default by Lessee.
(A) Lessee shall abandon or surrender the Property; or
(B) Lessee shall fail or refuse to pay, within ten (10) days of notice from Authority that the same is due, any installment of rent or any other sum required by this Lease to be paid by Lessee; or
(C) Lessee shall fail to perform any covenant or condition of the Agreement and/or this Lease other than as set forth in subparagraphs (a) or (b) above, and any such failure shall not be cured within thirty (30) days following the service on Lessee of a written notice from Authority specifying the failure complained of, or if it is not practicable to cure or remedy such failure within such thirty (30) day period, within such longer period as shall be reasonable under the circumstances; or
(D) Lessee shall voluntarily file or have involuntarily filed against it any petition under any bankruptcy or insolvency act or law and the same shall not be dismissed within sixty (60) days thereafter; or
(E) Lessee shall be adjudicated a bankrupt; or
(F) Lessee shall make a general assignment for the benefit of creditors in violation of the terms of this Lease; then such event shall constitute an event of default under this Lease.
25.2 Remedies of Authority. In the event of any such default as described in Section 25.1, Authority may, at its option:
(1) Correct or cause to be corrected said default and charge the costs thereof (including costs incurred by Authority in enforcing this provision) to the account of Lessee, which charge shall be due and payable within fifteen (15) days after presentation by Authority of a statement of all or part of said costs;
(2) Correct or cause to be corrected said default and pay the costs thereof (including costs incurred by Authority in enforcing this provision) from the proceeds of any insurance; or in the event that Lessee has obtained a faithful performance bond indemnifying Authority, Authority MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 209 of 248 Attachment No. 2
may call upon the bonding agent to correct said default or to pay the costs of such correction performed by or at the direction of Authority;
(3) Exercise its right to maintain any and all actions at law or suits in equity to compel Lessee to correct or cause to be corrected said default; (4) Have a receiver appointed to take possession of Lessee’s interest in the Property, with power in said receiver to administer Lessee’s interest in the Property, to collect all funds available to Lessee in connection with its operation and maintenance of the Property; and to perform all other consistent with Lessee’s obligation under this Lease as the court deems proper; (5) Maintain and operate the Property, without terminating this Lease; (6) With respect to a monetary default or material non-monetary default, terminate this Lease by written notice to Lessee of its intention to do so.
25.3 Right of Authority in the Event of Termination of Lease. Upon termination of this Lease pursuant to Section 25.2, it shall be lawful for Authority to re-enter and repossess the Property and Lessee, in such event, does hereby waive any demand for possession thereof, and agrees to surrender and deliver the Property peaceably to Authority immediately upon such termination in good order, condition and repair, except for reasonable wear and tear. Lessee agrees that upon such termination, title to all the Property on the Property shall vest in Authority. Even though Lessee has breached the Lease and abandoned the Property, this Lease shall continue in effect for so long as Authority does not terminate Lessee’s right to possession, and Authority may enforce all of its right and remedies under this Lease, including, but not limited to, the right to recover the rent as it becomes due under this Lease. No ejectment, re-entry or other act by or on behalf of Authority shall constitute a termination unless Authority gives Lessee notice of termination in writing. Termination of this Lease shall not relieve or release Lessee from any obligation incurred pursuant to this Lease prior to the date of such termination. Termination of this Lease shall not relieve Lessee from the obligation to pay any sum due to Authority or from any claim for damages against Lessee.
25.4 Damages. Damages which Authority recovers in the event of default under this Lease shall be those which are then available under applicable California case and statutory law to lessors for leases in the State of California including, but not limited to, any accrued but unpaid rent and the worth at the time of award of the amount by which the unpaid rent for the balance of the term of this Lease after the date of award exceeds the amount of such rental loss for the same period that Lessee proves could be reasonably avoided.
25.5 Rights and Remedies are Cumulative. The remedies provided by this Section 25 are not exclusive and shall be cumulative to all other rights and remedies possessed by Authority. The exercise by Authority of one or more such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by Lessee.
25.6 Limitation of Lessee’s Liability. Notwithstanding anything to the contrary herein contained, following completion of the construction of the Property, (i) the liability of Lessee shall be limited to its interest in the Property, and any rents, issues and profits arising from any subleases of the Property which are misapplied, or which have accrued but are not yet due and payable, at the time of any default hereunder and which are misapplied by Lessee when collected, and, in addition, with MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 210 of 248 Attachment No. 2
respect to any obligation to hold and apply insurance proceeds, proceeds of condemnation or other monies hereunder, any such monies received by it to the extent not so applied; (ii) no other assets of Lessee shall be affected by or subject to being applied to the satisfaction of any liability which Lessee may have to Authority or to another person by reason of this Lease; and (iii) any judgment, order, decree or other award in favor of Authority shall be collectible only out of, or enforceable in accordance with, the terms of this Lease by termination or other extinguishment of Lessee’s interest in the Property.
As a condition to protection under the provisions of this Section 25.6, Lessee covenants not to collect more than one (1) month’s rent in advance, exclusive of reasonable security deposits, under the terms of any subleases of the Property that Lessee may enter into.
Notwithstanding the foregoing, it is expressly understood and agreed that the aforesaid limitation on liability shall in no way restrict or abridge Lessee’s continued personal liability for:
(1) fraud or willful or grossly negligent misrepresentation made by Lessee in connection with this Lease;
(2) misapplication of (i) proceeds of insurance and condemnation or (ii) rentals received by Lessee under subleases subsequent to the date Authority is entitled to re-enter the Property by reason of Lessee’s default pursuant to the terms hereof and applicable law; (3) the retention by Lessee of all advance rentals and security deposits of sublessees not refunded to or forfeited by such sublessees; (4) the indemnification undertakings of Lessee under Section 16; and (5) Material waste by Lessee with respect to the Property.
25.7 Events of Default by Authority. If the Authority shall fail to perform any covenant or condition of the Agreement and/or this Lease, and any such failure shall not be cured within thirty (30) days following the service on Authority of a written notice from Lessee specifying the failure complained of, or if it is not practicable to cure or remedy such failure within such thirty (30) day period, within such longer period as shall be reasonable under the circumstances, the such event shall constitute an event of default under this Lease.
25.8 Remedies of Lessee. In the event of any such default as described in Section 25.6, Authority may, at its option:
(1) Correct or cause to be corrected said default and charge the costs thereof (including costs incurred by Lessee in enforcing this provision) as an operating expense for the current year;
(2) Correct or cause to be corrected said default and pay the costs thereof (including costs incurred by Lessee in enforcing this provision) from the proceeds of any insurance; or in the event that Authority has obtained a faithful performance bond indemnifying Lessee, Lessee may call upon the bonding agent to correct said default or to pay the costs of such correction performed by or at the direction of Lessee;
(3) Exercise its right to maintain any and all actions at law or suits in equity compel Authority to correct or cause to be corrected said default; MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 211 of 248 Attachment No. 2
(4) Maintain and operate the Property, without terminating this Lease; (5) With respect to a monetary default or material non-monetary default, terminate this Lease by written notice to Authority of its intention to do so.
SECTION 26. MISCELLANEOUS.
26.1 Governing Law. The laws of the State of California shall govern the interpretation and enforcement of this Lease.
26.2 Legal Actions. In addition to any other rights or remedies, either party may institute legal action to cure, correct or remedy any default, to recover damages for any default, or to obtain any other remedy consistent with the purpose of this Lease. Such legal actions must be instituted in the Superior Court of San Bernardino County, State of California, in any other appropriate court in that County, or in the Federal District Court in the Central District of California.
26.3 Acceptance of Service of Process. In the event that any legal action is commenced by Lessee against Authority, service of process on Authority shall be made by personal service upon the Chairman or Executive Director of Authority, or in such other manner as may be provided by law.
In the event that any legal action is commenced by Authority against Lessee, service of process on Lessee shall be made by personal service upon any officer of Lessee or in such other manner as may be provided by law, whether made within or without the State of California.
26.4 Attorneys’ Fees And Court Costs. In the event that either Authority or Lessee shall bring or commence an action to enforce the terms and conditions of this Lease or to obtain damages against the other party arising from any default under or violation of this Lease, then the prevailing party shall be entitled to and shall be paid reasonable attorneys’ fees and court costs therefor.
26.5 Inspection of Books And Records. Authority has the right (at Lessee’s office, upon not less than forty-eight (48) hours’ notice, and during normal business hours) to inspect the books and records of Lessee pertaining to the Property as pertinent to the purposes of this Lease. Lessee also has the right (at Authority’s office, upon not less than forty-eight (48) hours’ notice, and at all reasonable times) to inspect the books and records of Authority pertaining to the Property as pertinent to the purposes of this Lease.
26.6 Interest. Any amount due Authority that is not paid when due shall bear interest from the date such amount becomes due until it is paid. Interest shall be at a rate equal to the lesser of the discount rate established by the San Francisco office of the Federal Reserve Bank, plus two percent (2%), on the first day of the month such amount becomes due, and the maximum rate permitted by applicable law.
26.7 Notices. All notices, statements, demands, requests, consents, approvals, authorizations, offers, agreements, appointments or designations hereunder by either party to the other shall be in writing and shall be sufficiently given and served upon the other party, upon personal delivery or five (5) days after deposit within California in the United States mail, certified or registered mail, return receipt requested, postage prepaid and addressed as follows:
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 212 of 248 Attachment No. 2
Authority: Montclair Housing Authority
5111 Benito Street
Montclair, California 91763
Attention: Executive Director
Lessee: Montclair Housing Corporation
5111 Benito Street
Montclair, California 91763
Attention: Executive Director
or to such other address as either party shall later designate for such purposes by written notice to the other party.
26.8 Time is of the Essence. Time is of the essence in the performance of the terms and conditions of this Lease.
26.9 Non-Merger of Fee And Leasehold Estates. If both Authority’s and Lessee’s estates in the Property or both become vested in the same owner, this Lease shall nevertheless not be destroyed by application of the doctrine of merger except at the express election of Authority and Lessee’s Mortgagee. The voluntary or other surrender of this Lease by Lessee, or a mutual cancellation thereof, shall not work as a merger and shall, at the option of Authority, terminate all or any existing sublease or subtenancies or may, at the option of Authority, operate as an assignment to Authority of any or all such existing subleases or subtenancies.
26.10 Holding Over. The occupancy of the Property after the expiration of the Term of this Lease shall be construed to be a tenancy from month to month, and all other terms and conditions of this Lease shall continue in full force and effect.
26.11 Conflict of Interest. No member, official or employee of Authority shall have any personal interest, direct or indirect, in this Lease nor shall any such member, official or employee participate in any decision relating to the Lease which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interested.
Lessee warrants that it has not paid or given, and will not pay or give, any third party any money or other consideration for obtaining this Lease.
26.12 Non-Liability of Authority Officials And Employees. No member, official or employee of Authority shall be personally liable to Lessee, or any successor in interest, in the event of any default or breach by Authority or for any amount which may become due to Lessee or successor or on any obligations under the terms of this Lease.
26.13 Relationship. The relationship between the parties hereto shall at all times be deemed to be that of landlord and tenant. The parties do not intend nor shall this Lease be deemed to create a partnership or joint venture.
26.14 Transactions with Affiliates. Lessee shall have the right to enter into transactions with subsidiaries, affiliates and other related entities for the purpose of leasing space, providing cleaning, maintenance and repair services, insurance policies and other purposes related to the use and development of the Property, provided that all such costs, charges and rents are competitive with the MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 213 of 248 Attachment No. 2
costs, charges, rent and other sums which would be paid by or to, as the case may be, an unrelated third party.
26.15 Waivers And Amendments. All waivers of the provisions of this Lease must be in writing and signed by the appropriate authorities of Authority or Lessee.
The waiver by Authority of any breach of any term, covenant, or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition, or any subsequent breach of the same or any other term, covenant or condition herein contained. The subsequent acceptance of rent hereunder by Authority shall not be deemed to be a waiver of any preceding breach of Lessee of any term, covenant or condition of this Lease, regardless of Authority’s knowledge of such preceding breach at the time of acceptance of such rent. Failure on the part of Authority to require or exact full and complete compliance with any of the covenants or conditions of this Lease shall not be construed as in any manner changing the terms hereof and shall not prevent Authority from enforcing any provision hereof. All amendments hereto must be in writing and signed by the appropriate authorities of Authority and Lessee. The Lessee’s Mortgagee permitted by this Lease shall not be bound by any waiver or amendment to this Lease without Lessee’s Mortgagee giving its prior written consent.
26.16 Non-Merger With Agreement. None of the terms, covenants or conditions agreed upon in writing in the Agreement and other instruments between the parties to this Lease with respect to obligations to be performed, kept or observed by Lessee or Authority in respect to the Property or any part thereof, shall be deemed to be merged with this Lease.
26.17 Duplicate Originals. This Lease is executed in three (3) duplicate originals, each of which is deemed to be an original.
26.18 Severability. If any provision of this Lease or the application thereof to any person or circumstances shall be invalid or unenforceable to any extent, the remainder of this Lease and the application of such provisions to other persons or circumstances shall not be affected thereby and shall be enforceable to the greatest extent permitted by law.
26.19 Terminology. All personal pronouns used in this Lease, whether used in the masculine, feminine, or neuter gender, shall include all other genders; the singular shall include the plural, and vice versa. Titles of sections are for convenience only, and neither limit nor amplify the provisions of the Lease itself. Except for terms expressly defined in this Lease, all terms shall have the same meaning as set forth in the Agreement.
26.20 Binding Effect. This Lease, and the terms, provisions, promises, covenants and conditions hereof, shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors and assigns.
26.21 Estoppel Certificate. Each of the parties shall at any time and from time to time upon not less than twenty (20) days’ prior notice by the other, execute, acknowledge and deliver to such other party a statement in writing certifying that this Lease is unmodified and is in full force and effect (or if there shall have been modifications that this Lease is in full force and effect as modified and stating the modifications), and the dates to which the rent has been paid, and stating whether or not to the best knowledge of the signer of such certificate such other party is in default in performing or observing any provision of this Lease, and, if in default, specifying each such default of which the signer may have knowledge, and such other matters as such other party may reasonably request, it MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 214 of 248 Attachment No. 2
being intended that any such statement delivered by Lessee may be relied upon by Authority or any successor in interest to Authority or any prospective mortgagee or encumbrancer thereof, and it being further intended that any such statement delivered by Authority may be relied upon by any prospective assignee of Lessee’s interest in this Lease or any prospective mortgagee or encumbrancer thereof.
Reliance on any such certificate may not extend to any default as to which the signer of the certificate shall have had no actual knowledge.
26.22 Force Majeure. The time within which Authority or Lessee is obligated herein to perform any obligation hereunder, other than an obligation that may be performed by the payment of money, shall be extended and the performance excused when the delay is caused by fire, earthquake or other acts of God, strike, lockout, acts of public enemy, riot, insurrection or other cause beyond the control of the applicable party.
26.23 Quiet Enjoyment. Landlord does hereby covenant, promise and agree to and with Tenant that Tenant, for so long as it is not in default hereof, shall and may at all times peaceable and quietly have, hold, use, occupy and possess the Property throughout the Term.
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 215 of 248 Attachment No. 2
IN WITNESS WHEREOF, the parties hereto have caused this Lease to be executed by their lawfully authorized officers.
AUTHORITY:
MONTCLAIR HOUSING AUTHORITY, a public
body corporate and politic
By:
Edward C. Starr
Authority Executive Director
LESSEE:
MONTCLAIR HOUSING CORPORATION, a
California nonprofit public benefit corporation
By:
Edward C. Starr
Executive Director
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 216 of 248 Agreement No. 24-65
Exhibit B to Attachment No. 2
EXHIBIT A TO ATTACHMENT NO. 2
LEGAL DESCRIPTION
That certain real property located in the State of California, County of San Bernardino, City of Montclair, and described as follows:
APN:
1009-191-01-0000
POMONA LAND AND WATER CO SUB COM AT INTERSECTION ELY LI OF MILLS AVE AND S LI LOT 2 BLK 8 TH N 20 DEG 05 MIN 35 SECONDS E 85.96 FT TH E 105 FT TH S 20 DEG 05 MIN 35 SECONDS W 85.96 FT TO S LI SD LOT TH W TO PT BEG EX ST .18 AC M/ MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 217 of 248 Attachment No. 3
ATTACHMENT NO. 3
CITY DEED
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
Montclair Housing Authority
5111 Benito Street
Montclair, California 91763
Attn: Executive Director
APN: 1009-191-01-0000
[Space above for recorder.]
Exempt from recording fee and documentary transfer
tax pursuant to Government Code Section 27383 and
Revenue and Taxation Code Section 11928.
GRANT DEED
FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the CITY OF MONTCLAIR, a municipal corporation (“Grantor”), hereby grants to the MONTCLAIR HOUSING AUTHORITY, a public body, corporate and politic, that certain real property located in the County of San Bernardino, State of California, more particularly described on Exhibit A attached hereto and incorporated herein by this reference.
CITY OF MONTCLAIR,
a municipal corporation
By:
Edward C. Starr
City Manager
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 218 of 248 Exhibit A to Attachment No. 3
EXHIBIT A TO ATTACHMENT NO. 3
LEGAL DESCRIPTION
That certain real property located in the State of California, County of San Bernardino, City of Montclair, and described as follows:
APN:
1009-191-01-0000
POMONA LAND AND WATER CO SUB COM AT INTERSECTION ELY LI OF MILLS AVE AND S LI LOT 2 BLK 8 TH N 20 DEG 05 MIN 35 SECONDS E 85.96 FT TH E 105 FT TH S 20 DEG 05 MIN 35 SECONDS W 85.96 FT TO S LI SD LOT TH W TO PT BEG EX ST .18 AC M MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 219 of 248
CERTIFICATE OF ACCEPTANCE
This is to certify that the fee interest in real property conveyed under the foregoing Grant Deed by the City of Montclair, a municipal corporation, as to the following property:
Real property in the City of Montclair, County of San Bernardino, State of California, described as follows:
APN:
1009-191-01-0000
POMONA LAND AND WATER CO SUB COM AT INTERSECTION ELY LI OF MILLS AVE AND S LI LOT 2 BLK 8 TH N 20 DEG 05 MIN 35 SECONDS E 85.96 FT TH E 105 FT TH S 20 DEG 05 MIN 35 SECONDS W
85.96 FT TO S LI SD LOT TH W TO PT BEG EX ST .18 AC M
Is hereby accepted by the Executive Director of the Montclair Housing Authority (“Authority” and “Grantee”) on behalf of the governing board of the Authority pursuant to authority conferred by action of the governing board of the Authority on ________________ __, ____, and the Grantee consents to recordation thereof by its duly authorized officer.
MONTCLAIR HOUSING AUTHORITY,
a public body, corporate and politic
By:
Edward C. Starr
Authority Executive Director
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 220 of 248
CITY COUNCIL
AGENDA REPORT
DATE: AUGUST 19, 2024
SECTION: CONSENT - RESOLUTIONS
ITEM NO.: 2
FILE I.D.: STB300–17
DEPT.: FINANCE
PREPARER: C. GRAVES
SUBJECT: CONSIDER ADOPTION OF RESOLUTION NO. 24–3450 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. 24–3450 authorizing placement of assessments on certain properties for delinquent sewer and trash accounts. There are 456 outstanding liens on properties for collection of delinquent civil debts owed to the City for 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. 24–3450 is attached for City Council review and consideration.
BACKGROUND: The City Council authorized the placement of 566 liens on properties for delinquent sewer and trash charges on the following dates:
Date No. of Liens
October 5, 2023 94
November 13, 2023 130
February 7, 2024 103
March 7, 2024 138
June 6, 2024 101
Total 566
Of these 566 liens, 110 have been cleared.
It is recommended that assessments, which are collected with the property tax, be placed on the properties where the 456 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 June 27, 2024, that the action proposed this evening would be considered by the City Council.
FISCAL IMPACT: The City Council’s adoption of Resolution No. 24–3450 would result in a recoverable amount of $193,000.64.
RECOMMENDATION: Staff recommends the City Council adopt Resolution No. 24–3450 authorizing placement of assessments on certain properties for delinquent sewer and trash charges as listed on Exhibit A of said Resolution.
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 221 of 248 Resolution No. 24–3450 Page 1 of 1
RESOLUTION NO. 24–3450
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 566 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 110 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 2024 – 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, 2024.
Mayor
ATTEST:
City Clerk
I, Andrea M. Myrick City Clerk of the City of Montclair, DO HEREBY CERTIFY that Resolution No. 24–3450 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, 2024, 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 – 08/19/2024 Page 222 of 248 Exhibit A to Resolution No. 24–3450
August 2024 – Property Assessments
Street No. Account
Type Street Lien 1 Lien 2 Lien 3
Total
Assessment
Amount
11141 Residential Ada Avenue 372.15 390.66 762.81
11225 Residential Ada Avenue 382.70 401.59 405.14 1,189.43 5366 Senior Alamitos Street 391.42 391.42
5389 Senior Alamitos Street 337.04 337.04
9757 Residential Amherst Avenue 392.84 404.17 797.01
9910 Residential Amherst Avenue 392.84 404.17 797.01
9960 Residential Amherst Avenue 393.46 404.25 797.71
10065 Residential Amherst Avenue 285.48 405.57 691.05
11141 Residential Amherst Avenue 392.20 401.59 405.14 1,198.93 4238 Residential Appaloosa Way 573.87 573.87
10532 Residential Arabian Place 384.30 384.30
5105 Residential Aspen Drive 535.11 535.11
4624 Multifamily Bandera Street 670.56 670.56
4860 Multifamily Bandera Street 354.44 354.44
5207 Residential Bandera Street 442.38 442.38
5211 Residential Bandera Street 419.55 419.55
5215 Residential Bandera Street 369.55 369.55
5633 Residential Bandera Street 449.78 449.78
5663 Residential Bandera Street 358.88 358.88
9909 Residential Bel Air Avenue 393.00 404.19 797.19
9910 Residential Bel Air Avenue 303.74 394.37 698.11
10045 Residential Bel Air Avenue 393.77 404.28 798.05
10145 Residential Bel Air Avenue 392.20 401.59 405.14 1,198.93 10545 Residential Belgian Place 403.98 403.98
10551 Residential Belgian Place 307.76 307.76
5218 Residential Belvedere Way 303.48 303.48
5219 Residential Belvedere Way 426.33 426.33
4460 Residential Benito Street 539.24 420.27 959.51
4553 Residential Benito Street 368.66 368.66
4814 Senior Benito Street 369.49 369.98 739.47
4824 Residential Benito Street 789.12 447.76 1,236.88
5206 Commercial Benito Street 398.38 421.33 819.71
5429 Residential Benito Street 392.84 404.17 797.01
5598 Residential Benito Street 423.70 435.12 858.82
4594 Residential Benson Avenue 397.28 439.33 836.61
9590 Senior Benson Avenue 512.81 413.30 926.11
4843 Residential Berkeley Street 392.84 404.17 797.01
5353 Residential Berkeley Street 421.03 452.34 873.37
5392 Residential Berkeley Street 343.68 398.77 742.45
5011 Residential Birch Street 382.76 382.76
4532 Residential Bodega Court 486.25 486.25
9543 Residential Bolton Avenue 525.33 418.75 944.08
9598 Residential Bolton Avenue 392.84 404.17 797.01
4541 Residential Bonnie Brae Street 392.84 404.17 797.01 4576 Residential Bonnie Brae Street 346.27 399.06 745.33 5450 Residential Bonnie Brae Street 396.21 396.21
5369 Commercial Brooks Street 439.08 439.08
11339 Residential Brunswick Lane 402.54 421.87 824.41
11419 Residential Brunswick Lane 409.69 409.69
9851 Residential Camarena Avenue 392.84 404.17 797.01
10401 Residential Camarena Avenue 400.02 400.02
4443 Residential Cambridge Street 392.88 404.18 797.06
5448 Residential Cambridge Street 490.35 383.28 873.63
5470 Residential Cambridge Street 392.84 404.17 797.01
5471 Residential Cambridge Street 392.84 404.17 797.01
5561 Residential Cambridge Street 415.42 406.66 822.08
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 223 of 248 Exhibit A to Resolution No. 24–3450
August 2024 – Property Assessments
Street No. Account
Type Street Lien 1 Lien 2 Lien 3
Total
Assessment
Amount
5645 Residential Cambridge Street 626.72 626.72
9243 Residential Camulos Avenue 392.84 404.17 797.01
9426 Residential Camulos Avenue 423.70 435.12 858.82
9433 Residential Camulos Avenue 343.83 398.78 742.61
9511 Residential Camulos Avenue 423.70 435.12 858.82
9540 Residential Camulos Avenue 423.87 435.14 436.38 1,295.39 9877 Residential Camulos Avenue 423.70 435.12 858.82
10060 Residential Camulos Avenue 389.25 389.25
10234 Residential Camulos Avenue 392.21 401.59 405.14 1,198.94 10259 Residential Camulos Avenue 414.04 421.50 424.84 1,260.38 11409 Residential Cannery Row 410.26 410.26
4912 Residential Canoga Street 291.53 291.53
4924 Residential Canoga Street 392.20 401.59 405.14 1,198.93 5666 Residential Caroline Street 392.84 404.17 797.01
11178 Residential Carrillo Avenue 392.20 401.59 405.14 1,198.93 9845 Residential Central Avenue 545.59 545.59
4337 Residential Clair Street 425.49 432.80 436.12 1,294.41 4241 Residential Clydesdale Way 331.02 398.25 729.27
4303 Residential Clydesdale Way 443.83 409.78 853.61
9795 Residential Coalinga Avenue 392.84 404.17 797.01
9824 Senior Coalinga Avenue 367.31 380.22 747.53
10164 Residential Coalinga Avenue 392.20 401.59 405.14 1,198.93 10231 Residential Coalinga Avenue 385.84 400.88 405.06 1,191.78 11148 Residential Coalinga Avenue 392.20 401.59 405.14 1,198.93 11465 Residential Cobblestone Lane 408.52 408.52
11207 Residential College Avenue 359.05 359.05
11362 Residential Cumberland Lane 400.64 421.62 822.26
11373 Residential Cumberland Lane 402.88 421.93 824.81
11438 Residential Cumberland Lane 452.33 452.33
11469 Residential Cumberland Lane 402.56 421.88 824.44
11333 Residential Dartmouth Lane 400.64 421.62 822.26
10190 Residential Del Mar Avenue 392.20 401.59 405.14 1,198.93 10236 Residential Del Mar Avenue 392.14 401.57 405.14 1,198.85 4405 Residential Denver Street 423.70 435.12 858.82
5427 Residential Denver Street 525.33 418.75 944.08
5616 Residential Denver Street 392.84 404.17 797.01
5626 Residential Denver Street 423.70 435.12 858.82
4512 Residential Donner Court 311.61 368.66 680.27
5168 Residential El Morado Street 430.66 430.66
5429 Residential El Morado Street 392.84 404.17 797.01
11159 Residential Essex Avenue 392.20 401.59 405.14 1,198.93 4705 Residential Evart Street 392.25 401.60 405.14 1,198.99 9463 Residential Exeter Avenue 320.15 396.18 716.33
4114 Residential Faircove Court 410.80 410.80
4219 Residential Fauna Street 392.18 401.59 405.14 1,198.91 4256 Residential Fauna Street 411.89 406.27 818.16
4267 Residential Fauna Street 379.63 400.20 779.83
4291 Residential Fauna Street 392.20 401.59 405.14 1,198.93 4703 Residential Fauna Street 392.20 401.59 405.14 1,198.93 4774 Senior Fauna Street 490.90 490.90
4852 Residential Fauna Street 392.20 401.59 405.14 1,198.93 5420 Residential Fauna Street 358.88 397.92 404.73 1,161.53 8936 Residential Felipe Avenue 410.75 410.75
9367 Residential Felipe Avenue 394.27 404.34 798.61
9378 Residential Felipe Avenue 535.11 535.11
10260 Residential Felipe Avenue 380.58 400.31 405.00 1,185.89 MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 224 of 248 Exhibit A to Resolution No. 24–3450
August 2024 – Property Assessments
Street No. Account
Type Street Lien 1 Lien 2 Lien 3
Total
Assessment
Amount
8919-21 Multifamily Felipe Avenue 714.39 733.17 740.28 2,187.84 8947-49 Multifamily Felipe Avenue 354.44 354.44
4639 Senior Flora Street 426.03 426.03
4660 Senior Flora Street 392.20 604.89 997.09
4704 Residential Flora Street 332.16 444.54 776.70
5370 Residential Flora Street 540.75 540.75
5382 Residential Flora Street 364.61 364.61
9020 Senior Fremont Avenue 388.51 399.62 788.13
9729 Residential Fremont Avenue 358.88 358.88
9823 Residential Fremont Avenue 392.84 404.17 797.01
10253 Residential Fremont Avenue 392.20 401.59 405.14 1,198.93 10287 Residential Fremont Avenue 423.01 432.53 436.09 1,291.63 11049 Residential Fremont Avenue 406.56 406.56
9771 Residential Galena Avenue 589.62 589.62
9985 Residential Geneva Avenue 392.84 404.17 797.01
4328 Residential Granada Street 392.84 404.17 797.01
4155 Residential Grand Avenue 397.00 311.15 708.15
3792 Residential Hampton Drive 402.54 421.87 824.41
11335 Residential Hartford Lane 271.33 271.33
4376 Senior Harvard Street 392.84 404.17 797.01
4418 Residential Harvard Street 392.84 404.17 797.01
4430 Residential Harvard Street 402.16 405.20 807.36
4883 Residential Harvard Street 390.77 390.77
5430 Residential Harvard Street 540.43 420.41 960.84
5141-43 Multifamily Harvard Street 715.69 738.35 1,454.04 4522 Residential Hawthorne Street 358.88 358.88
5584 Residential Hawthorne Street 535.11 535.11
9045 Residential Helena Avenue 372.87 372.87
5064 Commercial Holt Blvd. 594.76 594.76
4103 Residential Howard Street 392.20 401.59 405.14 1,198.93 4341 Residential Howard Street 406.65 403.18 405.31 1,215.14 4705 Residential Howard Street 402.54 421.87 824.41
5190 Multifamily Howard Street A & B 784.36 807.23 1,591.59 4585 Residential James Street 423.70 435.12 858.82
9877 Residential Kimberly Avenue 418.92 430.84 849.76
10209 Residential Kimberly Avenue 389.76 389.76
10244 Residential Kimberly Avenue 403.79 405.38 809.17
11065 Residential Kimberly Avenue 392.20 401.59 793.79
11175 Residential Kimberly Avenue 685.89 436.41 1,122.30 4671 Multifamily Kingsley Street 354.44 354.44
5476 Residential Kingsley Street 483.39 452.02 935.41
5141-43 Multifamily Kingsley Street 689.27 354.44 1,043.91 5400 Residential La Deney Street 357.39 368.65 726.04
5015 Residential Laurel Street 415.72 420.80 423.88 1,260.40 10360-62 Multifamily Lehigh Avenue 714.39 733.17 740.28 2,187.84 9958 Residential Lindero Avenue 501.41 416.12 917.53
10042 Residential Lindero Avenue 393.00 404.19 797.19
4414 Residential Mane Street 435.24 435.24
4428 Residential Mane Street 333.40 397.64 731.04
4595 Residential Mane Street 392.15 401.59 405.14 1,198.88 4839 Residential Mane Street 405.14 405.14
9527 Residential Marion Avenue 392.84 404.17 797.01
9528 Residential Marion Avenue 278.23 278.23
11336 Residential Marquette Lane 408.26 408.26
11442 Residential Marquette Lane 410.39 410.39
4444 Residential Merle Street 519.07 519.07
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 225 of 248 Exhibit A to Resolution No. 24–3450
August 2024 – Property Assessments
Street No. Account
Type Street Lien 1 Lien 2 Lien 3
Total
Assessment
Amount
9121 Residential Mills Avenue 368.66 401.52 770.18
9595 Residential Mills Avenue 435.12 435.12
9745 Residential Mills Avenue 840.67 453.44 1,294.11
9857 Residential Mills Avenue 368.66 368.66
10189 Residential Mills Avenue 521.47 521.47
10231 Residential Mills Avenue 392.20 401.59 405.14 1,198.93 3796 Residential Millstone Lane 377.63 377.63
11458 Residential Millstone Lane 410.14 410.14
5239 Residential Monte Verde Street 392.15 401.59 405.14 1,198.88 9721 Residential Monte Vista Avenue 323.82 271.58 595.40 5616 Residential Moreno Street 514.23 514.23
5136 Commercial N Plaza Lane 868.65 868.65
10163 Senior Oak Glen Avenue 357.14 366.10 369.61 1,092.85 4595 Residential Oakdale Street 392.16 401.59 405.14 1,198.89 4644 Residential Olive Street 369.06 428.07 797.13
5032 Residential Orchard Street 423.71 435.12 858.83
5171 Senior Orchard Street 385.97 369.28 369.96 1,125.21 5422 Residential Orchard Street 392.20 401.59 405.14 1,198.93 5471 Residential Orchard Street 390.12 271.55 661.67
5640 Residential Orchard Street 1,048.8
8 1,048.88
5690 Residential Orchard Street 392.84 404.17 797.01
4838 Residential Phillips Blvd. 403.78 403.78
4996 Residential Phillips Blvd. 314.61 314.61
9925 Residential Poulsen Avenue 392.84 404.17 797.01
9991 Residential Poulsen Avenue 401.49 401.49
9375 Multifamily Pradera Avenue 1,439.2
8 670.56 2,109.84
10074 Residential Pradera Avenue 438.17 436.72 874.89
10206 Residential Pradera Avenue 392.20 401.59 405.14 1,198.93 4426 Residential Princeton Street 392.87 404.18 797.05
9109 Residential Ramona Avenue 369.03 369.03
9587 Residential Ramona Avenue 392.84 404.17 797.01
10080 Residential Ramona Avenue 400.44 358.88 759.32
10654-60 Commercial Ramona Avenue 355.97 355.97
4668 Residential Rawhide Street 532.60 419.55 952.15
8981 Commercial Rose Avenue 291.57 291.57
9413 Residential Rose Avenue 454.55 466.07 920.62
9434 Residential Rose Avenue 392.84 404.17 797.01
9866 Senior Rose Avenue 357.65 368.68 726.33
4683 Residential Rosewood Street 392.84 404.17 797.01
11076 Residential Roswell Avenue 402.72 402.72
5432 Residential Rudisill Street 410.32 410.32
4711 Residential San Bernardino Street 392.84 404.17 797.01 4749 Residential San Bernardino Street 408.74 405.92 814.66 4834 Residential San Bernardino Street 368.66 368.66
4843 Residential San Bernardino Street 520.62 520.62
5216 Residential San Bernardino Street 392.84 404.17 797.01 5489 Residential San Bernardino Street 429.69 442.00 871.69 5528 Residential San Bernardino Street 426.23 426.23
5412 Residential San Jose Street 368.66 368.66
5422 Residential San Jose Street 423.70 435.12 858.82
5593 Residential San Jose Street 330.43 330.43
4424 Residential San Jose Street #14 449.56 449.56
4424 Residential San Jose Street #18 394.21 404.32 798.53 4424 Residential San Jose Street #34 479.63 479.63
4622 Residential San Jose Street O 402.83 402.83
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 226 of 248 Exhibit A to Resolution No. 24–3450
August 2024 – Property Assessments
Street No. Account
Type Street Lien 1 Lien 2 Lien 3
Total
Assessment
Amount
4622 Residential San Jose Street R 443.09 443.09
11020 Residential San Pasqual Avenue 392.20 401.59 405.14 1,198.93 10016 Residential Santa Anita Avenue 394.84 668.74 1,063.58 10183 Residential Santa Anita Avenue 424.59 432.70 436.11 1,293.40 10221 Residential Santa Anita Avenue 394.04 401.78 405.16 1,200.98 9825 Residential Saratoga Avenue 368.66 368.66
9830 Residential Saratoga Avenue 568.75 568.75
5538 Residential Shirley Lane 532.60 419.55 952.15
11011 Residential Stallion Avenue 396.43 402.05 405.19 1,203.67 5131 Residential Sundance Drive 285.94 285.94
5134 Residential Sundance Drive 276.49 276.49
9617 Residential Surrey Avenue 392.84 404.17 797.01
9554 Senior Tudor Avenue 499.01 388.83 887.84
9773 Residential Tudor Avenue 386.43 431.02 817.45
10289 Residential Tudor Avenue 392.20 401.59 405.14 1,198.93 10427 Senior Tudor Avenue 356.92 356.92
9784 Residential Vernon Avenue 358.88 400.44 759.32
10115 Residential Vernon Avenue 392.35 392.35
10236 Residential Vernon Avenue 392.35 401.61 405.14 1,199.10 10438 Residential Via Palma 304.28 394.44 698.72
11053 Residential Wesley Avenue 392.20 401.59 405.14 1,198.93 10995 Senior Whitewater Avenue 576.02 576.02
11178 Residential Whitewater Avenue 392.20 401.59 405.14 1,198.93 11263 Residential Whitewater Avenue 358.88 358.88
5013 Residential Willow Street 568.49 568.49
5405 Residential Yale Street 392.87 404.18 797.05
4515 Residential Yosemite Drive 424.30 405.12 405.52 1,234.94 10472 Residential Yosemite Drive 370.00 370.00
TOTAL: $193,000.64
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 227 of 248
CITY COUNCIL
AGENDA REPORT
DATE: AUGUST 19, 2024
SECTION: CONSENT - RESOLUTIONS
ITEM NO.: 3
FILE I.D.: TRN510
DEPT.: PUBLIC WORKS
PREPARER: M. HEREDIA
SUBJECT: CONSIDER ADOPTION OF RESOLUTION NO. 24–3451 ADOPTING THE MEASURE I FIVE– YEAR CAPITAL PROJECT NEEDS ANALYSIS FOR FISCAL YEARS 2025–26 THROUGH 2029–30
CONSIDER ADOPTION OF RESOLUTION NO. 24–3452 ADOPTING THE MEASURE I FIVE–YEAR LOCAL STREET CAPITAL IMPROVEMENT PROGRAM FOR FISCAL YEARS 2025–26 THROUGH 2029–30
REASON FOR CONSIDERATION: The San Bernardino County Transportation Authority (SBCTA) requires each local jurisdiction to annually update its Five–Year Capital Project Needs Analysis (CPNA) and Local Street Capital Improvement Program (CIP).
Copies of proposed Resolution Nos. 24–3451 and 24–3452 adopting the five–year CPNA and five–year CIP, respectively, are attached for City Council review and consideration.
BACKGROUND: Measure I, the 2010–2040 countywide transportation sales tax program, requires that each local jurisdiction applying for funds from the Valley Major Street and Valley Freeway Interchange Programs annually adopt and update Five–Year CPNAs and CIPs. The CPNA differs from the Measure I CIP in that the CPNA contains only projects that are included in SBCTA's Nexus Study Program. Projects in the CPNA typically include freeway interchange projects, arterial widening projects, and grade separation projects.
Project funding also includes contributions from developers through the regional Development Impact Fee Program. The CPNA projects in the City of Montclair that make use of the Valley Major Street and Freeway Interchange Program funds include the reconstruction of the Monte Vista Avenue/I–10 Freeway Interchange Project and the Monte Vista/Union Pacific Grade Separation Project. The CIP list identifies the projects which will be funded by the local pass–through program.
FISCAL IMPACT: There is no immediate fiscal impact to the City with the adoption of Resolution Nos. 24–3451 and 24–3452. The CPNA, as its name implies, is a needs analysis allowing SBCTA to prioritize transportation improvement needs throughout the County. Having projects listed in the CPNA is not a guarantee that funds would be made available when needed, but failure to have a project listed would further delay funding until the project is listed. Measure I Local Pass–Through Program funds are received monthly and fund the projects listed on the Local Street Program. The City has been successful expediting construction of major infrastructure and utilized the available loan program from SBCTA to accelerate construction of improvements needed along Monte Vista Avenue. Future revenues from the SBCTA program will be used to pay the loan.
RECOMMENDATION: Staff recommends that the City Council take the following actions:
1. Adopt Resolution No. 24–3451 adopting the Measure I Five–Year Capital Project Needs Analysis for Fiscal Years 2025–26 through 2029–30; and
2. Adopt Resolution No. 24–3452 adopting the Measure I Five–Year Local Street Capital Improvement Program for Fiscal Years 2025–26 through 2029–30.
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 228 of 248 Resolution No. 24–3451 Page 1 of 2
RESOLUTION NO. 24–3451
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MONTCLAIR ADOPTING THE MEASURE I FIVE–YEAR CAPITAL
PROJECTS NEEDS ANALYSIS FOR FISCAL YEARS 2025/2026
THROUGH 2029/2030
WHEREAS, San Bernardino County voters approved passage of Measure I in November 2004, authorizing the San Bernardino County Transportation Authority to impose a one–half of one percent retail transactions and use tax applicable in the incorporated and unincorporated territory of the County of San Bernardino; and WHEREAS, revenue from the tax can only be used for transportation improvement and traffic management programs authorized in the Expenditure Plans set forth in Ordinance No. 04–1 of the Authority; and
WHEREAS, the Strategic Plan requires each local jurisdiction applying for revenue from certain Measure I Programs to annually adopt and update a Five–Year Capital Project Needs Analysis; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Montclair hereby adopts the Measure I Five–Year Capital Project Needs Analysis for Fiscal Years 2025/2026 through 2029/2030, a copy of which is attached to this Resolution.
APPROVED AND ADOPTED this XX day of XX, 2024.
Mayor
ATTEST:
City Clerk
I, Andrea M. Myrick, City Clerk of the City of Montclair, DO HEREBY CERTIFY that Resolution No. 24–3451 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, 2024, 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 – 08/19/2024 Page 229 of 248 Resolution No. 24–3451 Page 2 of 2
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 230 of 248 Resolution No. 24–3452 Page 1 of 3
RESOLUTION NO. 24–3452
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MONTCLAIR ADOPTING THE MEASURE I FIVE–YEAR CAPITAL
IMPROVEMENT PROGRAM AND EXPENDITURE STRATEGY
FOR FISCAL YEAR 2025–26 TO FISCAL YEAR 2029–30
WHEREAS, San Bernardino County voters approved passage of Measure I in November 2004, authorizing the San Bernardino County Transportation Authority (SBCTA) to impose a one–half of one percent retail transactions and use tax applicable in the incorporated and unincorporated territory of the County of San Bernardino; and WHEREAS, revenue from the tax can only be used for transportation improvement and traffic management programs authorized in the Expenditure Plans set forth in Ordinance 04–01 of the Authority, and
WHEREAS, the SBCTA’s Measure I Strategic Plan requires each local jurisdiction applying for revenue from the Local Streets Program to annually adopt and update a Five–Year Capital Improvement Plan; and
WHEREAS, California Public Utilities Code 190300 and Ordinance No. 04–1 require each local jurisdiction to maintain General Fund expenditures for transportation– related construction and maintenance activities at the required Maintenance of Effort base year level in each fiscal year of the adopted Five–Year Capital Improvement Plan, which for the City of Montclair is $894,728.
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Montclair hereby adopts the Measure I Five–Year Capital Improvement Program and Expenditure Strategy for Fiscal Year 2025–26 to Fiscal Year 2029–30 attached to this resolution.
APPROVED AND ADOPTED this XX day of XX, 2024.
Mayor
ATTEST:
City Clerk
I, Andrea M. Myrick, City Clerk of the City of Montclair, DO HEREBY CERTIFY that Resolution No. 24–3452 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, 2024, 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 – 08/19/2024 Page 231 of 248 Resolution No. 24–3452 Page 2 of 3
CITY OF MONTCLAIR
MEASURE I CAPITAL IMPROVEMENT PLAN
EXPENDITURE STRATEGY
Fiscal Year 2025/2026 to Fiscal Year 2029/2030
The City of Montclair plans on using Measure I as matching funds for federal funds associated with the design and construction of the Central Avenue Bridge at the Union Pacific Railroad tracks. The funds will also be utilized to service the I–10/Monte Vista Interchange Term Loan Agreements in place. The City also intends to expend Measure I funds on maintenance of City streets to the extent permissible under SBCTA policies.
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 232 of 248 Resolution No. 24–3452 Page 3 of 3
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 233 of 248
CITY COUNCIL
AGENDA REPORT
DATE: AUGUST 19, 2024
SECTION: CONSENT - RESOLUTIONS
ITEM NO.: 4
FILE I.D.: STG250/FIN250–A
DEPT.: FINANCE
PREPARER: J. KULBECK
SUBJECT: CONSIDER ADOPTION OF RESOLUTION NO. 24–3454 DESIGNATING AUTHORIZED
AGENTS OF THE CITY OF MONTCLAIR FOR CALIFORNIA OFFICE OF EMERGENCY
SERVICES (CAL OES) PUBLIC ASSISTANCE GRANTS
CONSIDER APPPROVING FOR SUBMITTAL THE CAL OES FORM 130 UPDATING THE CITY’S AUTHORIZED AGENTS
REASON FOR CONSIDERATION: On March 16, 2020, the City Council approved Resolution No. 20–3263 declaring that a local public health emergency exists in the City of Montclair, and by that Resolution the City Council started the processes required to receive state and federal funding assistance for expenses related to the COVID–19 pandemic. On April 20, 2020 the City Council approved Resolution No. 20–3264 designating authorized agents for California Governor’s Office of Emergency Services (CAL OES) Public Assistance Grants. Resolutions designating authorized agents should be renewed every three years and/or if there is a change in the authorized agents.
BACKGROUND: The Cal OES Designation of Applicant’s Agent Resolution (Cal OES Form 130) designates the agents authorized to submit applications for the purpose of obtaining federal financial assistance, under (1) the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988, as administered by the Federal Emergency Management Agency (FEMA); and/or (2) state financial assistance made available under the California Disaster Assistance Act, as administered by the Governor’s Office of Emergency Service (Cal OES). A Cal OES Form 130 is required of all applicants to be eligible to receive funding. Staff recommends that the form designate agents by title, instead of specific names, and be effective for all open and future disasters declared by the state or federal government for up to three years following the date of approval by City Council to expedite the process in the future. It is recommended that the following change be made to the authorized agents: remove Finance Manager and add Director of Finance.
FISCAL IMPACT: Adoption of the resolution will permit the City to obtain financial assistance for all open and future disasters declared by the state or federal government up to three (3) years following the date of approval.
RECOMMENDATION: Staff recommends the City Council take the following actions:
1. Adopt Resolution No. 24–3454 designating authorized agents of the City of Montclair for California Office of Emergency Services (Cal OES) Public Assistance Grants
2. Approve for submittal the Cal OES Form 130 updating the City’s authorized agents.
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 234 of 248 Resolution No. 24–3454 Page 1 of 1
RESOLUTION NO. 24–3454
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MONTCLAIR DESIGNATING AUTHORIZED AGENTS FOR
CALIFORNIA GOVERNOR’S OFFICE OF EMERGENCY
SERVICES (CAL OES) PUBLIC ASSISTANCE GRANTS
WHEREAS, in the event of an emergency declaration by the President of the United States or the Governor of the State of California; and
WHEREAS, federal financial assistance is made available under the Robert T.
Stafford Disaster Relief and Emergency Assistance Act of 1988 and administered by the Federal Emergency Management Agency (FEMA), and state financial assistance is made available under the California Disaster Assistance Act and administered by the Governor’s Office of Emergency Service (Cal OES); and
WHEREAS, in order to be eligible for public assistance, the City of Montclair must designate the appropriate application agents, titles only, to engage with FEMA or Cal OES by resolution and file Cal OES Form 130 with the Governor’s Office of Emergency Services,
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Montclair designate the following agents, titles only, to engage with the Federal Emergency Management Agency and the Governor’s Office of Emergency Services as follows:
1. City Manager
2. Police Chief
3. Director of Finance
This is a universal resolution and is effective for all open and future disasters up to three (3) years following the date of approval. The City Clerk is authorized to complete any forms and undertake any other actions required to implement this resolution.
APPROVED AND ADOPTED this XX day of XX, 2024.
Mayor
ATTEST:
City Clerk
I, Andrea M. Myrick, City Clerk of the City of Montclair, DO HEREBY CERTIFY that Resolution No. 24–3454 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, 2024, 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 – 08/19/2024 Page 235 of 248
STATE OF CALIFORNIA
GOVERNOR’S OFFICE OF EMERGENCY SERVICES
Cal OES 130
Cal OES ID No: ______________________
DESIGNATION OF APPLICANT'S AGENT RESOLUTION
FOR NON-STATE AGENCIES
BE IT RESOLVED BY THE OF THE
(Governing Body) (Name of Applicant)
THAT , OR
(Title of Authorized Agent)
, OR
(Title of Authorized Agent)
(Title of Authorized Agent)
is hereby authorized to execute for and on behalf of the , a public entity (Name of Applicant)
established under the laws of the State of California, this application and to file it with the California Governor’s Office of Emergency Services for the purpose of obtaining certain federal financial assistance under Public Law 93-288 as amended by the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988, and/or state financial assistance under the California Disaster Assistance Act.
THAT the ________________________________________________, a public entity established under the laws of the State of California, (Name of Applicant)
hereby authorizes its agent(s) to provide to the Governor’s Office of Emergency Services for all matters pertaining to such state disaster assistance the assurances and agreements required.
Please check the appropriate box below:
This is a universal resolution and is effective for all open and future disasters up to three (3) years following the date of approval below.
This is a disaster specific resolution and is effective for only disaster number(s) ________________________ Passed and approved this day of , 20
(Name and Title of Governing Body Representative)
(Name and Title of Governing Body Representative)
(Name and Title of Governing Body Representative)
CERTIFICATION
I, , duly appointed and of
(Name) (Title)
, do hereby certify that the above is a true and correct copy of a (Name of Applicant)
Resolution passed and approved by the of the
(Governing Body) (Name of Applicant)
on the day of , 20 .
(Title)
(Signature)
Cal OES 130 (Rev.9/13)
24 071-48788
City Council City of Montclair
City Manager
Police Chief
Director of Finance
City of Montclair
City of Montclair
19th August 24
Javier John Dutrey, Mayor
Tenice Johnson, Mayor Pro Tem
William Ruh, Council Member
Andrea M. Myrick City Clerk
City of Montclair
City Council City of Montclair
19th August
City Clerk
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 236 of 248
STATE OF CALIFORNIA
GOVERNOR’S OFFICE OF EMERGENCY SERVICES
Cal OES 130 - Instructions
Cal OES Form 130 Instructions
A Designation of Applicant’s Agent Resolution for Non-State Agencies is required of all Applicants to be eligible to receive funding. A new resolution must be submitted if a previously submitted Resolution is older than three (3) years from the last date of approval, is invalid or has not been submitted.
When completing the Cal OES Form 130, Applicants should fill in the blanks on page 1. The blanks are to be filled in as follows:
Resolution Section:
Governing Body: This is the group responsible for appointing and approving the Authorized Agents.
Examples include: Board of Directors, City Council, Board of Supervisors, Board of Education, etc.
Name of Applicant: The public entity established under the laws of the State of California. Examples include: School District, Office of Education, City, County or Non-profit agency that has applied for the grant, such as: City of San Diego, Sacramento County, Burbank Unified School District, Napa County Office of Education, University Southern California.
Authorized Agent: These are the individuals that are authorized by the Governing Body to engage with the Federal Emergency Management Agency and the Governor’s Office of Emergency Services regarding grants applied for by the Applicant. There are two ways of completing this section:
1. Titles Only: If the Governing Body so chooses, the titles of the Authorized Agents would be entered here, not their names. This allows the document to remain valid (for 3 years) if an Authorized Agent leaves the position and is replaced by another individual in the same title. If “Titles Only” is the chosen method, this document must be accompanied by a cover letter naming the Authorized Agents by name and title. This cover letter can be completed by any authorized person within the agency and does not require the Governing Body’s signature.
2. Names and Titles: If the Governing Body so chooses, the names and titles of the Authorized Agents would be listed. A new Cal OES Form 130 will be required if any of the Authorized Agents are replaced, leave the position listed on the document or their title changes.
Governing Body Representative: These are the names and titles of the approving Board Members.
Examples include: Chairman of the Board, Director, Superintendent, etc. The names and titles cannot be one of the designated Authorized Agents, and a minimum of two or more approving board members need to be listed.
Certification Section:
Name and Title: This is the individual that was in attendance and recorded the Resolution creation and approval.
Examples include: City Clerk, Secretary to the Board of Directors, County Clerk, etc. This person cannot be one of the designated Authorized Agents or Approving Board Member (if a person holds two positions such as City Manager and Secretary to the Board and the City Manager is to be listed as an Authorized Agent, then the same person holding the Secretary position would sign the document as Secretary to the Board (not City Manager) to eliminate “Self Certification.”
Cal OES 130 (Rev.9/13) Page 2
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 237 of 248 Public Works Committee Meeting Minutes – April 18, 2024 Page 1 of 4
MINUTES OF THE REGULAR MEETING OF THE PUBLIC WORKS
COMMITTEE HELD ON THURSDAY, APRIL 18, 2024, AT 4 P.M. IN THE THEATER CONFERENCE ROOM, 9955 FREMONT AVENUE,
MONTCLAIR, CALIFORNIA
I. CALL TO ORDER
Chair Johnson called the meeting to order at 4:01 p.m.
II. ROLL CALL
Present: Mayor Pro Tem Johnson (Chair); Council Member Martinez (Committee Member); Director of Public Works/City Engineer Heredia; Executive Director of Engineering/Major Projects Manager Hoerning; Director of Community Development Diaz; Project Manager Ortega; Police Chief Reed; Associate Engineer Stevenson
Absent: City Manager Starr arrived at 4:25 p.m. due to a prolonged meeting.
Director of Economic Development Agency Fuentes arrived at 4:39 p.m. due to a prolonged meeting.
III. APPROVAL OF MINUTES
The Committee approved the minutes for the meeting held on January 18, 2024.
IV. PUBLIC COMMENT — None
V. PUBLIC WORKS DEPARTMENT UPDATES/ITEMS
A. OPERATIONS
1. MAINTENANCE ACTIVITIES
An Operations Activities Report for January, February, and March 2024 was included with the agenda. There were no issues with the reports.
2. ADDITIONAL ITEMS — None
B. FACILITIES
1. MAINTENANCE ACTIVITIES
A Facilities Activities Report for January, February, and March 2024 was included with the agenda. There were no questions or issues with the report.
2. ADDITIONAL ITEMS — None
C. ENGINEERING DIVISION
1. TKE Engineering, Inc. On-Call Services
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 238 of 248 Public Works Committee Meeting Minutes – April 18, 2024 Page 2 of 4 expressed gratitude toward the City Council for recently approving the OnCall Inspection Services agreement which will help the department’s lone inspector continue to inspect those projects throughout the next fiscal year.
2. Tree Planting Events
The City partnered with Sustainable Claremont and hosted three separate tree planting events at Saratoga Park, the Pacific Electric Trail, and Reeder Ranch in February and March. Two more events are planned over the coming weeks.
Sustainable Claremont is interested in partnering again next year to plant and donate more trees to the City.
3. Arbor Day
One of the aforementioned tree planting events will take place on April 26th which is National Arbor Day at Sunset Park.
4. Library & Fire Station Remodels
Both projects are currently in the design phase.
The remodel of the library restrooms includes making the existing restrooms ADA compliant and adding two new restrooms. The design is complete and under review. Staff expects to bring the plans before the City Council within the next 1-2 months.
Fire Station #1 and #2 remodel will revamp the dormitory rooms, kitchen, locker rooms, and restrooms. There will be separate male and female locker rooms.
VI. POLICE DEPARTMENT UPDATE/ITEMS — None
VII. COMMUNITY DEVELOPMENT DEPARTMENT PROJECT UPDATES/ITEMS Director of Community Development Diaz announced that Code Enforcement has hired an Administrative Specialist, a newly created position, which will help relieve some of the workload from the current Community Development Administrative Specialist.
A new Code Enforcement officer was also recently hired and is currently going through background check.
Interviews for the open Plan Checker position were completed and the applicant has accepted the position. Interviews for a Building Official are scheduled for next week.
A major cleanup was done at the San Antonio Creek Trail. The bridge on Holt Boulevard was reinforced with temporary fencing to prevent tunneling.
Director of Community Development Diaz gave status updates on various smaller development projects around the city and reported that everything is going according to schedule.
that there is about $12M invested into capital projects around the City and Executive Director of Engineering/Major Projects Manager Hoerning stated MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 239 of 248 Public Works Committee Meeting Minutes – April 18, 2024 Page 3 of 4 A. LOCAL PROJECTS
1. Reeder Ranch Park
Project Manager Ortega reports that the project is about 60% complete.
Installation of the playground will begin next week, followed by landscaping and irrigation installation. The murals were covered with an anti-graffiti coat of paint to preserve the artwork.
2. Reeder Ranch House Painting
Since lead was found on the exterior surfaces of the house, Associate Engineer Stevenson is now consulting with experts to find a cost-efficient solution.
Project Manager Ortega intends to time the project completion date so that the grand opening of the Reeder Ranch House and the Reeder Ranch Park can occur simultaneously.
3. Sunset Park Beautification
Executive Director of Engineering/Major Projects Manager Hoerning reiterated that the tree planting event at Sunset Park will be on Friday, April 26th and warns the public that it is still an active construction zone and to take caution. She gave updates on various features around the park despite poor weather conditions adding challenges to the project’s completion schedule.
Caltrans granted the City a six-month extension past the June 30th deadline.
4. Retroreflective Signal Backplate Installation
Associate Engineer Stevenson reported that the City received an updated traffic control plan for installation and certificate of liability. Once the contractor submits their encroachment and construction applications, the City can issue permits so work can commence. The intersections that will be affected are as follows: Palo Verde & Fremont, Richton & Transcenter, Monte Vista & Brooke, Mission & Fremont, State Street & Greenwood, and San Bernardino & Fremont.
5. Alleyway Improvements
Associate Engineer Stevenson is collaborating with the contractor to coordinate the sequencing of construction in the alleyways to minimize the impact it will have on residents. Construction work is anticipated to begin in approximately six weeks.
6. Arrow/Fremont Intersection Improvements
Executive Director of Engineering/Major Projects Manager Hoerning reports that Gentry Brothers has completed most of the underground improvements and are now working on traffic signal improvements. Village Partners requested Gentry Brothers to temporarily move away from the project site VIII. CAPITAL PROJECT UPDATES
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 240 of 248 Public Works Committee Meeting Minutes – April 18, 2024 Page 4 of 4 Both contractors and City staff have agreed to grant the request. The work is expected to take four to six weeks.
7. Roadway Striping
Director of Public Works/City Engineer Heredia reported that the work was completed on several major streets around the City. The contractor will next cover all of Ramona Avenue.
8. Ramona/Howard Roundabout
Associate Engineer Stevenson announced that bid opening for the project is on Monday, April 22nd.
B. REGIONAL PROJECTS
1. I–10 Freeway Construction
City Manager Starr reported that the project at Monte Vista Avenue and the I-10 Freeway was delayed due to a financial dispute between the contractors and the San Bernardino County Transportation Authority (SBCTA). The issue has been resolved and workers have returned to the site. Operational capabilities are not expected to be completed until sometime mid-summer.
IX. COMMITTEE AND CITY MANAGER ITEMS
A. Gold Line Extension to Montclair
City Manager Starr indicated that the state could announce that it will release state funding from their climate action bills. The State publicized that it will be released over the course of several years. SBCTA announced that if the Foothill Gold Line is not completed by next year (April 2025), then they are going to return the unused project funds to the State.
X. ADJOURNMENT
At 4:49 p.m., Chair Johnson adjourned the meeting of the Public Works Committee.
The next meeting of the Public Works Committee scheduled to be held at 4:00 p.m. on Thursday, May 16, 2024 will be canceled due to lack of quorum. The Committee anticipates meeting again on June 20th, 2024 at 4:00 p.m.
Submitted for Public Works Committee
approval,
Uhura Mckenzie
Transcribing Secretary
before sidewalk and gutters are constructed so that they can complete underground infrastructure needed to support Village Partner’s development.
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 241 of 248 Personnel Committee Minutes – July 15, 2024 Page 1 of 1
MINUTES OF THE MEETING OF THE MONTCLAIR
PERSONNEL COMMITTEE HELD ON MONDAY,
JULY 15, 2024, AT 6:00 P.M. IN THE CITY
ADMINISTRATIVE OFFICES, 5111 BENITO STREET,
MONTCLAIR, CALIFORNIA
I. CALL TO ORDER
Mayor Pro Tem Johnson called the meeting to order at 6:00 p.m.
II. ROLL CALL
Present: Mayor Pro Tem Johnson, Council Member Ruh, City Manager Starr, and Assistant City Manager/Director of
Human Services Richter
III. APPROVAL OF MINUTES
A. Minutes of the Regular Personnel Committee Meeting of July 1, 2024.
Moved by Council Member Ruh, seconded by Mayor Pro Tem
Johnson, and carried unanimously to approve the minutes of the Personnel Committee meeting on July 1, 2024.
IV. PUBLIC COMMENT – None
V. CLOSED SESSION
At 6:01 p.m., the Personnel Committee went into Closed Session regarding personnel matters related to appointments, resignations/ terminations, and evaluations of employee performance.
At 6:20 p.m., the Personnel Committee returned from Closed Session.
Mayor Pro Tem Johnson stated that no announcements would be made at this time.
VI. ADJOURNMENT
At 6:20 p.m., Mayor Pro Tem Johnson adjourned the Personnel Committee.
Submitted for Personnel Committee approval,
Edward C. Starr
City Manager
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 242 of 248
PENDING
APPROVAL
Joint City Council/Successor Agency Board/Montclair Housing Corporation Board/Montclair Housing Authority Commission/ Montclair Community Foundation Board Meeting Minutes — July 15, 2024 Page 1 of 6
MINUTES OF THE REGULAR JOINT MEETING OF THE MONTCLAIR
CITY COUNCIL, SUCCESSOR AGENCY AND MONTCLAIR HOUSING
CORPORATION BOARDS, MONTCLAIR HOUSING AUTHORITY
COMMISSION, AND MONTCLAIR COMMUNITY FOUNDATION
BOARD HELD ON MONDAY, JULY 15, 2024 AT 7:01 P.M. IN THE CITY COUNCIL CHAMBERS, 5111 BENITO STREET, MONTCLAIR,
CALIFORNIA
I. CALL TO ORDER
Mayor/Chair Dutrey called the meeting to order at 7:01 p.m.
II. INVOCATION
Council Member/Director Ruh gave the invocation.
III. PLEDGE OF ALLEGIANCE
Mayor Pro Tem/Vice Chair Johnson led meeting participants in the Pledge.
IV. ROLL CALL
Present: Mayor/Chair Dutrey; Mayor Pro Tem/Vice Chair Johnson; Council Members/Directors Ruh, Martinez, and Lopez
City Manager/Executive Director Starr; Assistant City Manager/ Director of Human Services Richter; Director of Finance Kulbeck; Director of Public Works/City Engineer Heredia; Fire Chief Pohl; Director of Economic Development Agency Fuentes; City
Attorney Robbins; City Clerk Myrick
V. PRESENTATIONS
A. Recognition of Outgoing Community Activities Commissioner Alex Hernandez
Mayor Dutrey presented a Certificate of Recognition and an award commemorating his service to the City of Montclair to outgoing Community Activities Commissioner Alex Hernandez for his 8 years of dedicated service on the Community Activities Commission (CAC).
Mr. Hernandez expressed gratitude to the City Council, his fellow commissioners, staff, and the community for the experience during his term.
B. Community Activities Commission Presentation of 2024 Home Beautification
CAC Vice Chair Ferraro led a visual presentation of the winning homes of the 2024 Home Beautification Contest.
Mayor Dutrey presented awards to the following winners:
Traditional Home of the Year
4641 Highland Street — Alejandro and Sonia Rieger
Drought Tolerant Home of the Year
9553 Helena Avenue — Jean Beer
VI. PUBLIC COMMENT
Sousan Elias, resident, expressed frustration with the lack of action from Code Enforcement and the Police Department regarding her neighbor at 9775 Coalinga Avenue despite several complaints and calls for service related to illegal parking, littering, overweight vehicles, unattached trailers, and livestock.
VII. PUBLIC HEARINGS — None
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 243 of 248
PENDING
APPROVAL
Joint City Council/Successor Agency Board/Montclair Housing Corporation Board/Montclair Housing Authority Commission/ Montclair Community Foundation Board Meeting Minutes — July 15, 2024 Page 2 of 6 VIII. CONSENT CALENDAR
ACTION – Consent Calendar
ACTING: City Council
Successor Agency Board
Montclair Housing Corporation Board
Montclair Housing Authority Commissioners
Montclair Community Foundation Board
DISCUSSION: Item C–4
MOTION: Pull item C–3 and approve the remainder of the Consent Calendar as presented.
MADE BY:
SECOND BY:
Council Member/Director Ruh
Mayor Pro Tem/Vice Chair Johnson
AYES:
NOES:
ABSTAIN:
ABSENT:
Lopez, Martinez, Ruh, Johnson, Dutrey
None
None
None
RESULT: Motion carried 5–0.
A. Approval of Minutes
1. Regular Joint Meeting — July 1, 2024
ACTION – Consent Calendar – Item A–1
ACTING: City Council
Successor Agency Board
Montclair Housing Corporation Board
Montclair Housing Authority Commissioners
Montclair Community Foundation Board
RESULT: Approved on Consent Calendar; motion carried 5–0.
B. Administrative Reports
1. Consider Receiving and Filing City Treasurer's Report — June 2024
ACTION – Consent Calendar – Item B–1
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.
2. Consider Approval of Warrant Register and Payroll
Documentation
ACTION – Consent Calendar – Item B–2
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.
3. Consider Receiving and Filing SA Treasurer’s Report — June 2024
ACTION – Consent Calendar – Item B–3
ACTING: Successor Agency Board
RESULT: Approved on Consent Calendar; motion carried 5–0.
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 244 of 248
PENDING
APPROVAL
Joint City Council/Successor Agency Board/Montclair Housing Corporation Board/Montclair Housing Authority Commission/ Montclair Community Foundation Board Meeting Minutes — July 15, 2024 Page 3 of 6
4. Consider Approval of SA Warrant Register — June 2024 ACTION – Consent Calendar – Item B–4
ACTING: Successor Agency Board
RESULT: Approved on Consent Calendar; motion carried 5–0.
5. Consider Receiving and Filing MHC Treasurer's Report June 2024
ACTION – Consent Calendar – Item B–5
ACTING: Montclair Housing Corporation Board
RESULT: Approved on Consent Calendar; motion carried 5–0.
6. Consider Approval of MHC Warrant Register — June 2024 ACTION – Consent Calendar – Item B–6
ACTING: Montclair Housing Corporation Board
RESULT: Approved on Consent Calendar; motion carried 5–0.
7. Consider Receiving and Filing of MHA Treasurer's Report — June 2024
ACTION – Consent Calendar – Item B–7
ACTING: Montclair Housing Authority Commissioners
RESULT: Approved on Consent Calendar; motion carried 5–0.
8. Consider Approval of MHA Warrant Register — June 2024 ACTION – Consent Calendar – Item B–8
ACTING: Montclair Housing Authority Commissioners
RESULT: Approved on Consent Calendar; motion carried 5–0.
9. Consider Authorizing the Purchase of a 2024 Ford F–150 4x4 Supercrew Vehicle for the Fire Department from Ken Grody Ford of Redlands in the Total Amount of $60,000
ACTION – Consent Calendar – Item B–9
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.
C. Agreements
1. Consider Approval of Amendment No. 1 to Agreement No. 23–44 with Colts Landscape, Inc. for Additional Landscape Maintenance Services
ACTION – Consent Calendar – Item C–1
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 245 of 248
PENDING
APPROVAL
Joint City Council/Successor Agency Board/Montclair Housing Corporation Board/Montclair Housing Authority Commission/ Montclair Community Foundation Board Meeting Minutes — July 15, 2024 Page 4 of 6
2. Consider Approval of Agreement No. 24–55 with Cintas Corporation for Supply and Maintenance of Public Works
Department Employee Uniforms
ACTION – Consent Calendar – Item C–2
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.
4. Consider Approval of Agreement No. 24–60 with Set Free Church Pomona Valley for the Lease of a City Owned
Property, Subject to Any Revisions Deemed Necessary by the City Attorney
Council Member Ruh received clarification that the building will be used by the church for Administrative purposes only.
Council Member Lopez asked how flexible the City would be on the amount of time the church must assist the Code
Enforcement Special Operations Unit with homelessness cases.
City Manager Star clarified the Church has a minimum
requirement of 25 hours of services they will need to fulfill within a span of 4 days in a week, which can be distributed as needed between the days.
ACTION – Consent Calendar – Item C–4
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.
5. Consider Approval of Agreement No. 24–61 with Loma Linda University Children’s Hospital, a Memorandum of
Understanding for the Montclair Police Department’s use of the Children’s Assessment Center [CC]
Consider Authorizing Chief of Police Jason Reed to Sign Agreement No. 24–61
ACTION – Consent Calendar – Item C–5
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.
D. Resolutions
1. Consider Adoption of Resolution No. 24–3437 Adopting a Records and Information Management Program Policy and
Record Retention Schedules Together as the City of
Montclair’s Official Records Management Program
ACTION – Consent Calendar – Item D–1
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.
2. Consider Adoption of Resolution No. 24–3446 Authorizing Placement of Liens on Certain Properties for Delinquent Sewer and Trash Charges
ACTION – Consent Calendar – Item D–2
ACTING: City Council
RESULT: Approved on Consent Calendar; motion carried 5–0.
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 246 of 248
PENDING
APPROVAL
Joint City Council/Successor Agency Board/Montclair Housing Corporation Board/Montclair Housing Authority Commission/ Montclair Community Foundation Board Meeting Minutes — July 15, 2024 Page 5 of 6 IX. PULLED CONSENT CALENDAR ITEMS
C. Agreements
3. Consider Approval of Agreement No. 24–59 with Blais & Associates, Inc. for Grant Writing Services
Council Member Lopez recused himself due to holding a
position with a competitor of Blais & Associates, Inc.
ACTION – Consent Calendar – Item C–3
ACTING: City Council
MOTION: Approve Agreement No. 24–59 with Blais &
Associates, Inc. for grant writing services.
MADE BY:
SECOND BY:
Council Member/Director Ruh
Mayor Pro Tem/Vice Chair Johnson
AYES:
NOES:
ABSTAIN:
ABSENT:
Martinez, Ruh, Johnson, Dutrey
None
Lopez
None
RESULT: Motion carried 4–0–1 (Lopez abstained).
X. COMMUNICATIONS
A. Department Reports
1. Police Department — National Night Out
Police Chief Reed announced National Night Out is on August 6th, where the community can meet Montclair Police officers, see law enforcement equipment up close, and learn more about the Police Department at Alma Hofman Park from 6:30 to 10:00 p.m. The event will also have food vendors, face painting, and the movie "Top Gun Maverick" will begin at 7:45 p.m. The Splash Pad is open until 8:00 p.m., and the American Red Cross will be at the Senior Center for blood donations from 2:00 to 8:00 p.m.
2. Human Services Department — Upcoming Events
Assistant City Manager/Director of Human Services Richter invited the community to the upcoming Vendor Fair and Concert in the Park tomorrow evening at Alma Hofman Park and
reviewed the upcoming schedule of concerts and movies to take place each following Tuesday this summer through July 30. She also announced upcoming food distribution and pantry events, and registration information for Montclair After–School Program summer and school sessions and the Youth Volleyball Program.
B. City Attorney — No comments
C. City Manager/Executive Director — No comments
D. Mayor/Chair
1. Mayor/Chair Dutrey advised he would not be at the August 5th meeting because he will be on a family trip. He reported his attendance at a Metro Gold Line foothill extension tour; announced that Omnitrans, in partnership with San Bernardino County Transportation Authority (SBCTA), has acquired the first four 40–foot CNG fuel buses for the West Valley Connector project and SBCTA has acquired its first zero–emission high speed train; reported that last week he attended a summit to discuss regional homelessness with mayors and city managers of surrounding cities; and condemned the assassination
attempt on former President Trump last week.
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 247 of 248
PENDING
APPROVAL
Joint City Council/Successor Agency Board/Montclair Housing Corporation Board/Montclair Housing Authority Commission/ Montclair Community Foundation Board Meeting Minutes — July 15, 2024 Page 6 of 6 E. Council Members/Directors
1. Council Member/Director Ruh reported his attendance at the Gold Line foothill extension tour noting several other elected representatives in attendance, and Panera’s grand opening event held on July 17th from 10:00 a.m. –12:00 p.m. He wished everyone peace during the 2024 Election season.
2. Council Member/Director Lopez wished a happy belated anniversary to Mayor Dutrey and his wife, Anne, expressed his hope for respect between all political parties during the election, and received an update on the Monte Vista Avenue construction from Director of Public Works/City Engineer Heredia.
3. Council Member/Director Martinez commended her colleagues and staff for the hard work and dedication over the years to bring the Gold Line to Montclair, and acknowledged the 5th anniversary of the Pomona Valley Pride Center.
F. Committee Meeting Minutes
The following committee minutes were received and filed for informational purposes:
1. Personnel Committee — July 1, 2024
XI. ADJOURNMENT
At 8:00 p.m., the City Council, Successor Agency Board, Montclair Housing Corporation Board, Montclair Housing Authority Commission, and Montclair Community Foundation Board were adjourned
Submitted for City Council/Successor Agency Board/Montclair Housing Corporation Board/Montclair Housing Authority
Commission/Montclair Community Foundation Board approval,
Andrea Myrick,
City Clerk
MONTCLAIR CITY COUNCIL MEETING – 08/19/2024 Page 248 of 248