Newark City Council
February 27, 2025

AGENDA
Thursday, February 27, 2025
7:00 P.M.

Michael K. Hannon, Mayor
Eve Marie Little, Vice Mayor
Matthew Jorgens, Council Member
Terrence Grindall, Council Member
Julie Del Catancio, Council Member
A. ROLL CALL
B. PRESENTATIONS

1. Alameda County Mosquito Abatement District Presentation C. PUBLIC COMMENT
The public is invited to address the City Council on any item not listed on the agenda. Public Comments are generally limited to 5 minutes per speaker. Please note that State law prohibits the Council from acting on non-agenda items.

D. CONSENT CALENDAR
Consent Calendar items are considered to be routine and may be approved by one motion.

There will be no separate discussion on these items unless there is a request by a Council Member, a staff member, or a member of the public to remove an item for separate discussion and action.

1. Approval of Audited Demands

2. Approval of February 13, 2025, minutes

3. Adopt a resolution approving the Consulting Services Agreement with Lance, Soll & Lunghard, LLP (LSL), Certified Public Accountants, for Professional Auditing Services

4. Adopt a resolution approving a modification to a contractual services agreement with Surf to Snow Environmental Resource Management, Inc. to conduct inspections of industrial and commercial facilities as required by the City's stormwater discharge permit

5. Adopt a resolution authorizing the City Manager to execute Contractual Service Agreements for On-Call Civil Engineering Services with the following consultants: Coastland Civil Engineering, LLP, CSW-Stuber Stroeh Engineering Group, Inc., Haley & Aldrich, Inc., and F.J. Kennedy and Associates, Inc.

6. Adopt a resolution acknowledging receipt of the report made by the Fire Chief of the Alameda County Fire Department regarding the inspection of certain occupancies required to perform annual inspections pursuant to California Health and Safety Code Section 13146.2 and 13146.3, which includes educational and residential occupancies E. PUBLIC HEARINGS

1. Consideration of an Appeal from the decision of the Public Works Director to issue a tree removal permit to the Waterford Association authorizing removal of a Eucalyptus Tree on private property located at 6200 Buena Vista Drive
F. OTHER BUSINESS

1. Adopt a resolution authorizing the City Manager to execute the amendment to the Affordable Housing Loan Agreement for the Thornton Avenue Apartments project, including the Purchase and Sale Agreement, deed of trust and all related documents necessary to complete the purchase and conveyance of property located at 6347-6375 Thornton Avenue, a Short-Term Lease Agreement with Thornton, L.P. and a Lease Option Agreement with Thornton, L.P. for said property, and adopt a resolution to declare the property exempt surplus land. Exempt from the CEQA per CEQA Guidelines Sections 15061(b)(3) and 15312.

2. Community Preservation Presentation

3. Adopt a resolution to appoint Corazon Dino as an Interim Human Resources Director pursuant to Government Code section 21221(h)
G. CITY MANAGER UPDATES
H. CITY COUNCIL MATTERS
City Council Members report on attendance at intergovernmental agency meetings, conferences, and seminars since the last meeting. City Council Members may also announce upcoming events and coordinate attendance; report on local events attended since the last meeting; and make brief comments on issues of concern.

1. Adopt a resolution approving the Mayor's appointments to the Planning Commission and Measure GG Tax Oversight Committee
I. CLOSED SESSION

1. Closed session for conference with Labor Negotiators pursuant to California Government Code Section 54957.6.

Agency designated representatives: Assistant City Manager Hovorka, Interim Human Resources Director Dino, and Special Counsel Jesse Lad
Employee Organization: The Newark Police Association
Agency designated representatives: Assistant City Manager Hovorka, and Interim Human Resources Director Dino
Employee Organizations: The Newark Police Management Association and the Newark Association of Miscellaneous Employees
Unrepresented Employees: Employees subject to the Compensation and Benefit Plan for the Confidential Employee Group
Agency designated representative: Interim Human Resources Director Dino Unrepresented Employees: Employees subject to the Compensation and Benefit Plan for the Management, Supervisory, and Professional Employee Group J. ADJOURNMENT

MEETING INFORMATION
Members of the public may attend the meeting in person, watch online, or watch on Cable Channel 26. The ability to observe online or Cable Channel 26 is predicated on those technologies being available and functioning without technical difficulties.  Should those platforms not be available, or become non-functioning, or should the City Council otherwise encounter technical difficulties that make those platforms unavailable, the City Council will proceed with business in person unless otherwise prohibited by law.

How to view the meeting remotely:

Livestream online at YouTube: https://www.youtube.com/@cityofnewark3077/streams Copy/paste the YouTube URL into your browser if the link does not automatically open.

Cable Channel 26 - if the meeting does not broadcast live, please contact your service provider and request the City of Newark channel lineup.

Zoom will no longer be available for public participation unless required by Assembly Bill 2449. Should a Council Member or the Mayor attend the meeting via Zoom pursuant to Assembly Bill 2449, then the Webinar ID No. 875 3973 0896 will be activated.  The Mayor will make an announcement at the beginning of the meeting that the City will be allowing public comment via Zoom.  Raise your virtual hand to notify the City Clerk that you would like to speak during the item that you wish to speak on.

How to submit written Public Comment:

Send an email to City Clerk by 3:00 p.m. the day of the meeting.  Please identify the agenda item number in the subject line of your email.  Emails will be compiled into one file and will be distributed to the City Council before the meeting.

No question shall be asked of a council member, city staff, or an audience member except through the Mayor. No person shall interrupt the meeting. Any person who refuses to carry out instructions given by the Mayor for the purpose of maintaining order may be guilty of an infraction and may result in removal from the meeting.

Council Meeting Access/Materials:

The agenda packet is available for review at Agendas and Minutes. The packet is typically posted to the City website the Friday before the meeting, but no later than 72 hours before the meeting.

Pursuant to Government Code 54957.5, supplemental materials distributed less than 72 hours before this meeting, to a majority of the City Council, will be made available for public inspection at this meeting and will be posted at https://www.newark.org/departments/city-manager-s-office/agendas-minutes and will concurrently be made available for public inspection during regular business hours at the David W. Smith City Hall, 37101 Newark Boulevard, Newark CA.  Materials prepared by City staff and distributed during the meeting are available for public inspection at the meeting or after the meeting if prepared by some other person. Documents related to closed session items or are exempt from disclosure will not be made available for public inspection. For those persons who require special accommodations, please contact the City Clerk at least two days prior to the meeting at  City Clerk or 510-578-4266.

Mission Statement
It is our mission to serve and partner with our community to continually enhance the quality of life of everyone in Newark.

Executive Team Members

David J. Benoun
City Manager
Lenka Hovorka
Assistant City Manager
Kristopher J. Kokotaylo
City Attorney
Steven Turner
Community Development Director
Jonathan Arguello
Police Chief
Edwin Miranda
CIO/Information Technology
Director
Howard Young
Public Works Director
Cora Dino
Interim Human Resources Director
Krysten Lee
Finance Director
Ryan Nishimoto
ACFD Deputy Chief
Nicholas Cuevas, Recreation and Community Services Director Item  B. 1.

DATE 02/27/2025
TO Honorable Mayor and City Council Members
FROM Sheila Harrington, City Clerk
SUBJECT    Alameda County Mosquito Abatement District Presentation It is the overall goal of the Alameda County Mosquito Abatement District (District) to provide for the public's health and comfort by carrying on a program of mosquito control and source reduction. Public Outreach Manager Judith Pierce and Board Trustee Eric Hentschke will provide a presentation on the District's activities.

Attachments
Presentation
Insect Identification
Newark Information
Mosquitoes and Newark
Presentation Overview
• Introduction to district and to Judith Pierce, Public Outreach Coordinator
• Why are mosquitoes so common in Newark?
• What can we do to decrease mosquitoes?
• What can community engagement look like?
Why are mosquitoes so common here?

Mosquito life-cycle
Residents can interrupt the cycle

What Do Mosquitoes Need to Reproduce?
• Standing water to lay eggs
-  can be as small as a bottle cap of water
• 1 to 2 weeks to hatch and develop
• A blood meal from animals or humans to produce
eggs
We need help to reduce mosquitoes in Newark
What does an integrated pest management
approach to mosquito control look like?
8 Local officials are ideal partners in community
action and education
Assist mosquito
control technicians with
education and connection
to neighbors
Engaging with groups that
can provide support and
insight for community
needs such as languages,
media outreach, safety
concerns etc.
9 Through partnership, local officials can help us do our jobs better • Clear up questions about mosquitoes versus other insects • Referring to ACMAD when appropriate
• Asking us to participate in events and community outreach Thank you for your time!
Contact:

Judith Pierce, Public Education Officer
510-783-7744
www.mosquitoes.org
11 Item  D. 1.

DATE 02/27/2025
TO Honorable Mayor and City Council Members
FROM Krysten Lee, Finance Director
SUBJECT    Approval of Audited Demands
Attachments
Audited Demands 01.30.25
Audited Demands 02.06.25





  
 







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Item  D. 2.

DATE 02/27/2025
TO Honorable Mayor and City Council Members
FROM Sheila Harrington, City Clerk
SUBJECT    Approval of February 13, 2025, minutes
Attachments
Minutes
City of Newark | Newark City Council
Mayor Michael K. Hannon | Vice Mayor Eve Marie Little | Council Members: Matthew Jorgens, Terrence Grindall, Julie Del Catancio

Minutes
Thursday, February 13, 2025
7:00 P.M.

A. ROLL CALL
Mayor Hannon called the meeting to order at 7:05 p.m. Council Members Grindall, Jorgens, Catancio, and Vice Mayor Little were present.

B. PRESENTATIONS

1. Introduction of employee(s)
Mayor Hannon introduced: Andrew Musantry, Sergeant, Jason Masters, Public Safety Dispatcher, Morgan Pedersen, Management Analyst, and Naz Jalalidin, Management Analyst.

2. Proclaim February as Black History Month
Mayor Hannon presented the proclamation to: Jean Ficklin, Danielle CranonJones, Recreation Coordinator, Raquel Thomas, Collections Assistant, Adriene Frazier-Burrell, Fire Code Compliance Officer, and Tianna Jones, Administrative Support Specialist II.

3. Presentation on Eden I & R, Inc. 2-1-1 information and referral services Mayor Hannon announced that this presentation would be rescheduled for a future meeting.

Page No. 2
City of Newark City Council Minutes February 13, 2025
Mayor Hannon amended the agenda to move item H.1 Consideration of a resolution reaffirming Newark as a Welcoming City
Resolution No. 11724
Mayor Hannon gave a presentation on the history of Newark as a Welcoming City and the need to reaffirm.  (Presentation on file with City Clerk.) Mayor Hannon and Vice Mayor Little read aloud, in English and Spanish, Resolution No. 10,598, which declared Newark a Welcoming City in 2017.

The City Council discussed the resolution and the need for it to be reaffirmed.

Sucy Collazo shared a story of a student who did not want to go to school because she feared deportation.  She thanked the City Council for making the country feel safer.

Jacinta Arteaga thanked Mayor Hannon bringing this item forward and making the community feel safer. She stated that some residents do not realize this is a welcoming city.

Mayor Hannon requested that community leaders inform the community of the Welcoming City affirmation.

Vice Mayor Little moved, Council Member Catancio seconded, to adopt a resolution Reaffirming Newark as a Welcoming City. The motion passed, 5 AYES.

Mayor Hannon called for a recess at 8:01 p.m. The meeting resumed at 8:10 p.m.

Page No. 3
City of Newark City Council Minutes February 13, 2025

4. Presentation on Eden Council for Hope and Opportunity (ECHO Housing) Christina M. Soto, Executive Director of ECHO Housing gave the presentation.

Presentation on file with the City Clerk.  ECHO Housing provides fair housing services, tenant/property owner services, rental assistance program, homebuyer education program, home seeking/Project Share, shared housing and placement, and rent review for some jurisdictions.

No one from the public requested to speak.

The City Council thanked Ms. Soto for the presentation and information.

Mayor Hannon requested that ECHO Housing consider proactive inspection of rental units.

C. PUBLIC COMMENT
No one requested to speak.

D. CONSENT CALENDAR
Council Member Jorgens moved, Council Member Grindall seconded, to approve Consent Calendar items D.1 to D.3, that the resolutions be numbered consecutively, and that reading of the titles suffice for adoption.  The motion passed, 5 AYES.

1. Approval of Audited Demands

2. Approval of January 16, 2025, special meeting and January 23, 2025, regular meeting minutes

3. Adopt a resolution approving agreement with HdL Coren & Cone for Property Tax Management Services
Resolution No. 11725
E. PUBLIC HEARINGS
Page No. 4
City of Newark City Council Minutes February 13, 2025
F. OTHER BUSINESS
G. CITY MANAGER UPDATES
City Manager Benoun announced: an Objective Design Standards Community Open House on February 26 at the library and a Recreation and Community Services Department Hiring Faire on February 21 at the Silliman Center.

H. CITY COUNCIL MATTERS

1. Consideration of a resolution reaffirming Newark as a Welcoming City This item was considered out of order.

Council Member Catancio stated that she attended the Black History and Lunar New Year events.  She announced that a Special Olympics event would be held at Newark Memorial High School.

Council Member Grindall stated that he attended the Alameda County Housing Committee meeting and noted that 35,000 applications were submitted for 200 housing units.  He proposed that the City Council reaffirm the City’s inclusive community status for the LGBTQ community.  The City Council concurred to place this on a future agenda.

Council Member Grindall announced that Promotores and Newark Police Department would meet on February 25, 2025, for Pan Dulce to discuss community concerns.  He stated the next Coffee with a Council Member would be held at the Newark Boulevard Starbucks on February 15, 2025.

Vice Mayor Little stated that she has organized the following events: four VIP Pokémon parties at the 88 Card House, Senior Citizen workshops on May 6, 2025, to discuss cybersecurity and identify theft and May 1, 2025, to discuss social security.  Earth Day Clean up event on March 15, 2025, at Don Edwards Wildlife Refuge.  Mission Peak Yoyo Day on March 31, 2025.  Details and RSVP information available at evemarielittle.com
Page No. 5
City of Newark City Council Minutes February 13, 2025
Mayor Hannon congratulated the Newark Rotary Club for their annual Crab Feed, the money raised helps community nonprofits.  He thanked the Newark Interact Club for their assistance.  He wished everyone a Happy Valentine’s Day.

I. CLOSED SESSION
J. ADJOURNMENT
Mayor Hannon adjourned the meeting at 8:41 p.m.

Item  D. 3.

DATE 02/27/2025
TO Honorable Mayor and City Council Members
FROM Siobhan Henderson, Accounting Assistant II
SUBJECT    Adopt a resolution approving the Consulting Services Agreement with Lance, Soll & Lunghard, LLP (LSL), Certified Public Accountants, for Professional Auditing Services
SUMMARY AND RECOMMENDATION
Lance, Soll & Lunghard, LLP (LSL) has served as the City of Newark’s independent auditor for six fiscal years, providing high-quality service and expertise in governmental audits. The current contract expired at the end of Fiscal Year 2024.

To maintain continuity and compliance with best practices, staff recommends approving a new six-year contract with LSL through Fiscal Year 2030, with a total not-to-exceed amount of $599,257.

While audit firm rotation was once encouraged, current best practices emphasize rotating engagement partners or senior staff within the same firm to ensure independence while preserving institutional knowledge. Given the shortage of government-specialized audit firms, this approach aligns with recommendations from the Government Finance Officers Association (GFOA), Government Accountability Office (GAO), and the American Institute of Certified Public Accountants (AICPA).

To uphold audit quality and independence, the City will implement staff rotation measures:

A new lead audit partner will be assigned for the Fiscal Year 2025 audit.

A new audit manager will be appointed for the Fiscal Year 2027 audit.

Staff recommends that the City Council adopt a resolution approving this agreement to ensure continued regulatory compliance, transparency, and fiscal accountability.

BACKGROUND
The Government Finance Officers Association (GFOA) recommends that local governments obtain independent financial audits to ensure transparency, regulatory compliance, and public accountability.

The City of Newark engaged LSL through a competitive selection process in 2019, with an initial contract not to exceed $347,927. In November 2023, the contract was extended for two years through June 30, 2024, with an additional $175,931.

To maintain continuity and uphold high auditing standards, staff recommends approving a new six-year contractual services agreement with LSL through Fiscal Year 2030, for a total not-to-exceed amount of $599,257.

DISCUSSION/ANALYSIS
Independent audits are essential for ensuring financial transparency and regulatory compliance.

Since April 2019, LSL has provided the City with:

Annual Financial Audits – Reviewing the Annual Comprehensive Financial Report (ACFR), ensuring eligibility for the GFOA Award for Excellence in Financial Reporting.

Financial & Compliance Audits – Confirming compliance with Measure B/BB, Measure GG, VRF, UUT, and TDA funding requirements.

State Controller’s Report Preparation – Assisting with financial report submissions.

Single Audits – Conducting audits in accordance with federal Uniform Guidance for grant-related funding.

The Government Finance Officers Association (GFOA) advises adherence to Governmental Accounting Standards Board (GASB) guidelines. While rotating audit firms was once encouraged, best practices now emphasize rotating engagement partners or senior staff within the same firm to maintain independence while preserving institutional knowledge.

The GFOA does not mandate firm rotation, and the AICPA requires partner rotation every five years for public companies, though this is not required for municipalities. The GAO’s Yellow Book recommends monitoring long audit firm tenure and implementing safeguards, such as rotating key personnel, to balance continuity, cost efficiency, and auditor independence. While California does not require audit firm rotation, many cities adopt these best practices to enhance transparency and efficiency.

Given the shortage of audit firms specializing in governmental audits, rotating engagement partners or senior audit staff has become the preferred approach.

To align with best practices and maintain audit quality, staff rotation will be implemented:

A new lead audit partner will be assigned for the Fiscal Year 2025 audit.

A new audit manager will be appointed for the Fiscal Year 2027 audit.

The proposed contractual services agreement ensures the City’s continued compliance with GASB and Government Code Section 12410.6(b), while LSL will provide ongoing technical assistance to address evolving accounting standards.

FISCAL IMPACT
The current 2024-2026 Biennial Budget and Capital Improvement Plan includes The current 2024-2026 Biennial Budget and Capital Improvement Plan includes sufficient funding for this agreement through the end of FY 2026. This is a multi-year agreement with the remaining years to be appropriated in future biennial budget processes.

REVIEW AND APPROVAL
Prepared by - Siobhan Henderson, Accounting Assistant
Reviewed by - Gloria del Rosario, Deputy Finance Director Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - David J. Benoun, City Manager
Attachments
Resolution
Agreement
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK APPROVING THE CONSULTING SERVICES

AGREEMENT WITH LANCE, SOLL & LUNGHARD, LLP FOR

PROFESSIONAL AUDITING SERVICES
WHEREAS, the City of Newark requires independent financial audits to ensure transparency, regulatory compliance, and public accountability in accordance with the Government Finance Officers Association (GFOA) best practices and Governmental Accounting Standards Board (GASB) guidelines; an
WHEREAS, the City of Newark requires independent financial audits to ensure transparency, regulatory compliance, and public accountability in accordance with best practices set forth by the Government Finance Officers Association (GFOA) and Governmental Accounting Standards Board (GASB) guidelines; and
WHEREAS, the City previously awarded a multi-year Consulting Services Agreement ("Agreement") to Lance, Soll & Lunghard, LLP (LSL) for professional auditing services, with an initial term through June 30, 2022, and a not-to-exceed amount of $347,927; and WHEREAS, due to LSL’s satisfactory performance, the City exercised the two optional years, extending the Agreement through June 30, 2024, and increasing the not-to-exceed amount by $175,931; and
WHEREAS, to maintain continuity, uphold high auditing standards, and align with current best practices, staff recommends approving a new six-year Contractual Services Agreement with LSL through Fiscal Year 2030, with a total not-to-exceed amount of $599,257; and WHEREAS, while audit firm rotation was once encouraged, current best practices emphasize rotating engagement partners or senior staff within the same firm to maintain independence while preserving institutional knowledge, as recommended by the GFOA, the Government Accountability Office (GAO), and the American Institute of Certified Public Accountants (AICPA); and WHEREAS, the 2024-2026 Biennial Budget and Capital Improvement Plan includes sufficient funding for this agreement through the end of Fiscal Year 2026, with future years to be appropriated in subsequent budget cycles.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newark as follows:

1. The City Council hereby approves the Agreement with LSL for professional auditing services for a six-year term through Fiscal Year 2030, with a total not-to-exceed contract amount of $599,257, and authorizes the City Manager to execute the Agreement with Lance, Soll & Lunghard, LLP, in a form approved by the City Attorney.

2. The City Manager, together with the Finance Director, is authorized to take all necessary actions to implement the agreement, including approving annual engagement letters and overseeing engagement partner rotations in compliance with best practices.

Consulting Services Agreement between
City of Newark and Lance, Soll & Lunghard, LLP Page 1 of 14

CONSULTING SERVICES AGREEMENT BETWEEN

THE CITY OF NEWARK
AND

LANCE, SOLL & LUNGHARD, LLP

FOR PROFESSIONAL AUDITING SERVICES
This Agreement for consulting services (“Agreement”) is made by and between the City of Newark, a municipal corporation, (“City”) and Lance, Soll & Lunghard LLP, a limited liability company, with offices located at 2151 River Plaza Dr., Suite 150, Sacramento, CA 95833, (“Consultant”), (together referred to as the “Parties”) as of February 27, 2025 (the “Effective Date”).

Section 1. Services. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide to City the services described in the Scope of Work attached as Exhibit A and incorporated herein, at the time and place and in the manner specified therein. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit A, the Agreement shall prevail.

1.1 Term of Services. The term of this Agreement shall begin on the Effective Date and shall end on June 30, 2030, and Consultant shall complete the work described in Exhibit A on or before that date, unless the term of the Agreement is otherwise terminated or extended, as provided for in Section 8. The time provided to Consultant to complete the services required by this Agreement shall not affect the City’s right to terminate the Agreement, as referenced in Section 8. Funding for services beyond the current fiscal year will be included in future City budgets but is subject to City Council approval of annual appropriations.]

1.2 Standard of Performance. Consultant shall perform all services required pursuant to this Agreement according to the standards observed by a competent practitioner of the profession in which Consultant is engaged and in the geographical area in which Consultant practices its profession.

1.3 Assignment of Personnel. Consultant shall assign only competent personnel to perform services pursuant to this Agreement. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the reassignment of any such persons, Consultant shall, immediately upon receiving notice from City of such desire of City, reassign such person or persons.

1.4 Time is of the Essence. Time is of the essence. Consultant shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary to timely finish the Scope of Work, to meet the standard of performance provided in Section 1.1 and 1.2 above and to satisfy Consultant’s obligations hereunder.

Section 2. COMPENSATION. City hereby agrees to pay Consultant a sum not to exceed five hundred ninety-nine thousand two hundred fifty-seven dollars, ($599,257) notwithstanding any contrary indications that may be contained in Consultant’s proposal for services to be performed and reimbursable costs incurred under this Agreement. In the event of a conflict between this Agreement and Consultant’s proposal, attached as Exhibit A, regarding the amount of compensation, the Agreement shall prevail. City shall pay Consultant for services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified below shall be the only payments from City to Consultant for services rendered pursuant to this Agreement. Consultant shall submit all Consulting Services Agreement between
City of Newark and Lance, Soll & Lunghard, LLP Page 2 of 14 invoices to City in the manner specified herein. Except as specifically authorized by City in writing, Consultant shall not bill City for duplicate services performed by more than one person.

Consultant and City acknowledge and agree that compensation paid by City to Consultant under this Agreement is based upon Consultant’s estimated costs of providing the services required hereunder, including salaries and benefits of employees and subcontractors of Consultant. Consequently, the parties further agree that compensation hereunder is intended to include the costs of contributions to any pensions and/or annuities to which Consultant and its employees, agents, and subcontractors may be eligible. City therefore has no responsibility for such contributions beyond compensation required under this Agreement.

2.1 Invoices. Consultant shall submit invoices, not more often than once a month during the term of this Agreement, based on the cost for services performed and reimbursable costs incurred prior to the invoice date. Invoices shall contain the following information, unless waived by the Contract Administrator:
 Serial identifications of progress bills; i.e., Progress Bill No. 1 for the first invoice, etc.;  Project name & number if applicable;
 Purchase Order number to expedite payment;
 The beginning and ending dates of the billing period;  A task summary containing the original contract amount, the amount of prior billings, the total due this period, the balance available under the Agreement, and the percentage of completion;
 At City’s option, for each work item in each task, a copy of the applicable time entries or time sheets shall be submitted showing the name of the person doing the work, the hours spent by each person, a brief description of the work, and each reimbursable expense;
 The total number of hours of work performed under the Agreement by Consultant and each employee, agent, and subcontractor of Consultant performing services hereunder;  The Consultant’s signature;
 Consultant shall give separate notice to the City when the total number of hours worked by Consultant and any individual employee, agent, or subcontractor of Consultant reaches or exceeds 800 hours within a 12-month period.

2.2 Monthly Payment. City shall make monthly payments, based on invoices received, for services satisfactorily performed, and for authorized reimbursable costs incurred. City shall have 30 days from the receipt of an invoice that complies with all of the requirements above to pay Consultant.

Consulting Services Agreement between
City of Newark and Lance, Soll & Lunghard, LLP Page 3 of 14

2.3 Final Payment. City shall pay the last 10% of the total sum due pursuant to this Agreement within 60 days after completion of the services and submittal to City of a final invoice, if all services required have been satisfactorily performed.

2.4 Total Payment. City shall pay for the services to be rendered by Consultant pursuant to this Agreement. City shall not pay any additional sum for any expense or cost whatsoever incurred by Consultant in rendering services pursuant to this Agreement. City shall make no payment for any extra, further, or additional service pursuant to this Agreement.

In no event shall Consultant submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a task or for the entire Agreement, unless the Agreement is modified prior to the submission of such an invoice by a properly executed change order or amendment.

2.5 Hourly Rate/Fees. Unless the services provided are for a lump sum or flat fee, fees for work performed by Consultant on an hourly basis shall not exceed the amounts shown on the compensation cost proposal attached hereto as Exhibit B. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit B, the Agreement shall prevail.

2.6 Reimbursable Expenses. Reimbursable expenses are specified in Exhibit B, attached hereto and incorporated herein. Reimbursable expenses not listed in Exhibit B are not chargeable to City. Reimbursable expenses shall not include a mark-up and are billed as a direct costs. In no event shall expenses be advanced by the City to the Consultant. Reimbursable expenses are included in the total amount of compensation provided under this Agreement that shall not be exceeded.

2.7 Payment of Taxes. Consultant is solely responsible for the payment of employment taxes incurred under this Agreement and any similar federal or state taxes.

2.8 Payment upon Termination. In the event that the City or Consultant terminates this Agreement pursuant to Section 8, the City shall compensate the Consultant for all outstanding costs and reimbursable expenses incurred for work satisfactorily completed as of the date of written notice of termination. Consultant shall maintain adequate logs and timesheets to verify costs incurred to that date.

2.9 Authorization to Perform Services. The Consultant is not authorized to perform any services or incur any costs whatsoever under the terms of this Agreement until receipt of authorization from the Contract Administrator.

2.10. Business License. The Consultant is not authorized to perform services or incur costs whatsoever under the terms of this Agreement until Consultant applies for and has been issued a business license from the City pursuant to Title 5 of the Newark Municipal Code.

Section 3. FACILITIES AND EQUIPMENT. Except as set forth herein, Consultant shall, at its sole cost and expense, provide all facilities and equipment that may be necessary to perform the Consulting Services Agreement between
City of Newark and Lance, Soll & Lunghard, LLP Page 4 of 14 services required by this Agreement. City shall make available to Consultant only the facilities and equipment listed in this section, and only under the terms and conditions set forth herein.

City shall furnish physical facilities such as desks, filing cabinets, and conference space, as may be reasonably necessary for Consultant’s use while consulting with City employees and reviewing records and the information in possession of the City. The location, quantity, and time of furnishing those facilities shall be in the sole discretion of City. In no event shall City be obligated to furnish any facility that may involve incurring any direct expense, including but not limited to computer, long-distance telephone or other communication charges, vehicles, and reproduction facilities.

Section 4. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement, Consultant, at its own cost and expense, unless otherwise specified below, shall procure the types and amounts of insurance listed below against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the Consultant and its agents, representatives, employees, and subcontractors. Consistent with the following provisions, Consultant shall provide proof satisfactory to City of such insurance that meets the requirements of this section and under forms of insurance satisfactory in all respects, and that such insurance is in effect prior to beginning work to the City. Consultant shall maintain the insurance policies required by this section throughout the term of this Agreement. The cost of such insurance shall be included in the Consultant's bid. Consultant shall not allow any subcontractor to commence work on any subcontract until Consultant has obtained all insurance required herein for the subcontractor(s) and provided evidence that such insurance is in effect to City. Verification of the required insurance shall be submitted and made part of this Agreement prior to execution.

4.1 Required Coverage. Consultant shall maintain all required insurance listed herein for the duration of this Agreement.

COVERAGE TYPE OF INSURANCE MINIMUM LIMITS
A Commercial General
Liability
Premises Liability; Products
and Completed Operations;
Contractual Liability; Personal
Injury and Advertising Liability
$2,000,000 per occurrence;
Bodily Injury and Property
Damage
$4,000,000 in the aggregate;
Commercial general coverage
shall be at least as broad as
Insurance Services Office
Commercial General Liability
occurrence form CG 0001
(most recent edition) covering
comprehensive General
Liability on an “occurrence”
basis
B Commercial or Business
Automobile Liability
All owned vehicles, hired or
leased vehicles, non-owned,
$1,000,000 per occurrence;
Any Auto; Bodily Injury and
Property Damage. Automobile
coverage shall be at least as
Consulting Services Agreement between
City of Newark and Lance, Soll & Lunghard, LLP Page 5 of 14 borrowed and permissive uses.

Personal Automobile Liability
is acceptable for individual
contractors with no
transportation or hauling
related activities
broad as Insurance Services
Office Automobile Liability
form CA 0001 (most recent
edition), Code 1 (any auto). No
endorsement shall be attached
limiting the coverage.

C Workers’ Compensation
(WC) and Employers
Liability (EL)
Required for all contractors
with employees
WC: Statutory Limits
EL: $100,000 per accident for
bodily injury or disease.

Consultant may rely on a selfinsurance program to meet those requirements, but only if
the program of self-insurance
complies fully with the
provisions of the California
Labor Code. The insurer shall
waive all rights of subrogation
against the City and its officers,
officials, employees, and
volunteers for loss arising from
work performed under this
Agreement
D Professional Liability/Errors
& Omissions
Includes endorsements of
contractual liability
$2,000,000 per occurrence
$4,000,000 policy aggregate;
Any deductible or self-insured
retention shall not exceed
$150,000 per claim

4.2 Additional requirements. Each of the following shall be included in the insurance coverage or added as a certified endorsement to the policy:
a. All required insurance shall be maintained during the entire term of the Agreement with the following exception: Insurance policies and coverage(s) written on a claims-made basis shall be maintained during the entire term of the Agreement and until three (3) years following termination and acceptance of all work provided under the Agreement, with the retroactive date of said insurance (as may be applicable) concurrent with the commencement of activities pursuant to this Agreement b. All insurance required above with the exception of Professional Liability, Personal Automobile Liability, Workers’ Compensation and Employers Liability, shall be endorsed to name as additional insured: City of Newark, its City Council, and all City officers, agents, employees, volunteers and representatives.
c. For any claims related to this Agreement or the work hereunder, the Consultant’s insurance covered shall be primary insurance as respects the City, its officers, officials, employees, and Consulting Services Agreement between
City of Newark and Lance, Soll & Lunghard, LLP Page 6 of 14 volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it. d. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after 30 days’ prior written notice has been provided to the City.
e. Certificates of Insurance: Before commencing operations under this Agreement, Consultant shall provide Certificate(s) of Insurance and applicable insurance endorsements, in form and satisfactory to City, evidencing that all required insurance coverage is in effect. The City reserves the rights to require the Consultant to provide complete, certified copies of all required insurance policies.
f. Subcontractors: Consultant shall include all subcontractors as an insured (covered party) under its policies or shall furnish separate certificates and endorsements for each subcontractor.

All coverages for subcontractors shall be subject to all of the requirements stated herein. g. Claims-made limitations. The following provisions shall apply if the professional liability coverage is written on a claims-made form:
i. The retroactive date of the policy must be shown and must be before the date of the Agreement.
ii. Insurance must be maintained and evidence of insurance must be provided for at least five years after completion of the Agreement or the work, so long as commercially available at reasonable rates.
iii. If coverage is canceled or not renewed and it is not replaced with another claimsmade policy form with a retroactive date that precedes the date of this Agreement, Consultant must purchase an extended period coverage for a minimum of three (3) years after completion of work under this Agreement.
iv. A copy of the claim reporting requirements must be submitted to the City for review prior to the commencement of any work under this Agreement.

4.3 All Policies Requirements.
a. Acceptability of insurers. All insurance required by this section is to be placed with insurers with a Bests' rating of no less than A:VII. Insurance shall be maintained through an insurer with a minimum A.M. Best Rating of A- or better, with deductible amounts acceptable to the City. Acceptance of Consultant’s insurance by City shall not relieve or decrease the liability of Consultant hereunder. Any deductible or self-insured retention amount or other similar obligation under the policies shall be the sole responsibility of the Consultant. b. Deductibles and Self-Insured Retentions. Consultant shall disclose to and obtain the written approval of City for the self-insured retentions and deductibles before beginning any of the services or work called for by any term of this Agreement. At the option of the City, either: the Consulting Services Agreement between
City of Newark and Lance, Soll & Lunghard, LLP Page 7 of 14 insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, employees, and volunteers; or the Consultant shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses.
c. Wasting Policies. No policy required by this Section 4 shall include a “wasting” policy limit (i.e. limit that is eroded by the cost of defense). d. Waiver of Subrogation. Consultant hereby agrees to waive subrogation which any insurer or contractor may require from vendor by virtue of the payment of any loss.

Consultant agrees to obtain any endorsements that may be necessary to affect this waiver of subrogation. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the entity for all work performed by the consultant, its employees, agents, and subcontractors.

4.4 Remedies. In addition to any other remedies City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Consultant’s breach:
 Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under the Agreement;
 Order Consultant to stop work under this Agreement or withhold any payment that becomes due to Consultant hereunder, or both stop work and withhold any payment, until Consultant demonstrates compliance with the requirements hereof; and/or  Terminate this Agreement.

Section 5. INDEMNIFICATION AND CONSULTANT’S RESPONSIBILITIES.

Consultant shall indemnify, defend with counsel acceptable to City, and hold harmless City and its officers, officials, employees, agents and volunteers from and against any and all liability, loss, damage, claims, expenses, and costs (including without limitation, attorney’s fees and costs and fees of litigation) (collectively, “Liability”) of every nature arising out of or in connection with Consultant’s performance of the Services or its failure to comply with any of its obligations contained in this Agreement, except such Liability caused by the sole negligence or willful misconduct of City.

The Consultant’s obligation to defend and indemnify shall not be excused because of the Consultant’s inability to evaluate Liability or because the Consultant evaluates Liability and determines that the Consultant is not liable to the claimant. The Consultant must respond within 30 days, to the tender of any claim for defense and indemnity by the City, unless this time has been extended by the City. If the Consultant fails to accept or reject a tender of defense and indemnity within 30 days, in addition to any other remedy authorized by law, so much of the money due the Consultant under and by virtue of this Agreement as shall reasonably be considered necessary by the City, may be retained by the City until disposition has been made of the claim or suit for damages, or until the Consultant accepts or rejects the tender of defense, whichever occurs first.

Consulting Services Agreement between
City of Newark and Lance, Soll & Lunghard, LLP Page 8 of 14 With respect to third party claims against the Consultant, the Consultant waives any and all rights of any type to express or implied indemnity against the Indemnitees.

Notwithstanding the forgoing, to the extent this Agreement is a “construction contract” as defined by California Civil Code Section 2782, as may be amended from time to time, such duties of consultant to indemnify shall not apply when to do so would be prohibited by California Civil Code Section 2782.

In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

Section 6. STATUS OF CONSULTANT.

6.1 Independent Contractor. At all times during the term of this Agreement, Consultant shall be an independent contractor and shall not be an employee of City. City shall have the right to control Consultant only insofar as the results of Consultant's services rendered pursuant to this Agreement and assignment of personnel pursuant to Subparagraph 1.3; however, otherwise City shall not have the right to control the means by which Consultant accomplishes services rendered pursuant to this Agreement. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any and all claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (PERS) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits.

6.2 Consultant Not an Agent. Except as City may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent.

Consultant shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever.

Section 7. LEGAL REQUIREMENTS.

7.1 Governing Law. The laws of the State of California shall govern this Agreement.

7.2 Compliance with Applicable Laws. Consultant and any subcontractors shall comply with all laws applicable to the performance of the work hereunder.

7.3 Other Governmental Regulations. To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, Consultant and any subcontractors shall comply with all applicable rules and regulations to which City is bound by the terms of such fiscal assistance program.

Consulting Services Agreement between
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7.4 Licenses and Permits. Consultant represents and warrants to City that Consultant and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective professions. Consultant represents and warrants to City that Consultant and its employees, agents, any subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions. In addition to the foregoing, Consultant and any subcontractors shall obtain and maintain during the term of this Agreement valid Business Licenses from City.

7.5 Nondiscrimination and Equal Opportunity. Consultant shall not discriminate, on the basis of a person’s race, religion, color, national origin, age, physical or mental handicap or disability, medical condition, genetic information, marital status, sex, sexual orientation, gender, or gender identity, against any employee, applicant for employment, subcontractor, bidder for a subcontract, or participant in, recipient of, or applicant for any services or programs provided by Consultant under this Agreement. Consultant shall comply with all applicable federal, state, and local laws, policies, rules, and requirements related to equal opportunity and nondiscrimination in employment, contracting, and the provision of any services that are the subject of this Agreement, including but not limited to the satisfaction of any positive obligations required of Consultant thereby.

Consultant shall include the provisions of this Subsection in any subcontract approved by the Contract Administrator or this Agreement.

Section 8. TERMINATION AND MODIFICATION.

8.1 Termination. City may cancel this Agreement at any time and without cause upon written notification to Consultant. Consultant may cancel this Agreement upon thirty (30) days’ written notice to City and shall include in such notice the reasons for cancellation.

In the event of termination, Consultant shall be entitled to compensation for services performed to the effective date of termination; City, however, may condition payment of such compensation upon Consultant delivering to City any or all work product, including, but not limited to documents, photographs, computer software, video and audio tapes, and other materials provided to Consultant or prepared by or for Consultant or the City in connection with this Agreement.

8.2 Extension. City may, in its sole and exclusive discretion, extend the end date of this Agreement beyond that provided for in Subsection 1.1. Any such extension shall require a written amendment to this Agreement, as provided for herein. Consultant understands and agrees that, if City grants such an extension, City shall have no obligation to provide Consultant with compensation beyond the maximum amount provided for in this Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no obligation to reimburse Consultant for any otherwise reimbursable expenses incurred during the extension period.

8.3 Amendments. The Parties may amend this Agreement only by a writing signed by all the Parties.

8.4 Assignment and Subcontracting. City and Consultant recognize and agree that this Agreement contemplates personal performance by Consultant and is based upon a determination of Consulting Services Agreement between
City of Newark and Lance, Soll & Lunghard, LLP Page 10 of 14 Consultant’s unique personal competence, experience, and specialized personal knowledge.

Moreover, a substantial inducement to City for entering into this Agreement was and is the professional reputation and competence of Consultant. Consultant may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. Consultant shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors noted in the proposal, without prior written approval of the Contract Administrator.

8.5 Survival. All obligations arising prior to the termination of this Agreement and all provisions of this Agreement allocating liability between City and Consultant shall survive the termination of this Agreement.

8.6 Options upon Breach by Consultant. If Consultant materially breaches any of the terms of this Agreement, City’s remedies shall include, but not be limited to, the following:

8.6.1 Immediately terminate the Agreement;

8.6.2 Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Consultant pursuant to this Agreement;

8.6.3 Retain a different consultant to complete the work described in Exhibit A not finished by Consultant; or

8.6.4 Charge Consultant the difference between the cost to complete the work described in Exhibit A that is unfinished at the time of breach and the amount that City would have paid Consultant pursuant to Section 2 if Consultant had completed the work.

8.6.5 No remedy mentioned in this Agreement is intended to be exclusive of any other right, power, or remedy, permitted by law. Neither the failure nor the delay on the part of the City to exercise any such rights and remedies shall operate as a waiver thereof, nor shall any single or partial exercise by the City of any such right or remedy preclude any other or further exercise of any such right or remedy.

Section 9. KEEPING AND STATUS OF RECORDS.

9.1 Records Created as Part of Consultant’s Performance. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that Consultant prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the City. Consultant hereby agrees to deliver those documents to the City upon termination of the Agreement and City may use, reuse or otherwise dispose of the documents without Consultant’s permission. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for the City and are not necessarily suitable for any future or other use. City and Consultant agree that, until final approval by City, all data, plans, specifications, reports and other documents are confidential and will not be released to third parties without prior written consent of both parties.

Consulting Services Agreement between
City of Newark and Lance, Soll & Lunghard, LLP Page 11 of 14

9.2 Consultant’s Books and Records. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services or expenditures and disbursements charged to the City under this Agreement for a minimum of 3 years, or for any longer period required by law, from the date of final payment to the Consultant to this Agreement. All such records should be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible.

9.3 Inspection and Audit of Records. Any records or documents that Section 9.2 of this Agreement requires Consultant to maintain shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of the City. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds $10,000.00, the Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of the City, for a period of 3 years after final payment under the Agreement.

Section 10 MISCELLANEOUS PROVISIONS.

10.1 Attorneys’ Fees. If a party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees in addition to any other relief to which that party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose.

10.2 Venue. In the event that either party brings any action against the other under this Agreement, the parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of Alameda or in the United States District Court for the Northern District of California.

10.3 Severability. If a court of competent jurisdiction finds or rules that any provision of this Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so adjudged shall remain in full force and effect. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement.

10.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement.

10.5 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the parties.

10.6 Use of Recycled Products. Consultant shall prepare and submit all reports, written studies and other printed material on recycled paper to the extent it is available at equal or less cost than virgin paper.

10.7 Conflict of Interest. Consultant may serve other clients, but none whose activities within the corporate limits of City or whose business, regardless of location, would place Consultant Consulting Services Agreement between
City of Newark and Lance, Soll & Lunghard, LLP Page 12 of 14 in a “conflict of interest,” as that term is defined in the Political Reform Act, codified at California Government Code Section 81000 et seq.

Consultant shall not employ any City official in the work performed pursuant to this Agreement. No officer or employee of City shall have any financial interest in this Agreement that would violate California Government Code Sections 1090 et seq. Consultant hereby warrants that it is not now, nor has it been in the previous 12 months, an employee, agent, appointee, or official of the City. If Consultant was an employee, agent, appointee, or official of the City in the previous twelve months, Consultant warrants that it did not participate in any manner in the forming of this Agreement.

Consultant understands that, if this Agreement is made in violation of Government Code § 1090 et seq., the entire Agreement is void and Consultant will not be entitled to any compensation for services performed pursuant to this Agreement, including reimbursement of expenses, and Consultant will be required to reimburse the City for any sums paid to the Consultant. Consultant understands that, in addition to the foregoing, it may be subject to criminal prosecution for a violation of Government Code § 1090 and, if applicable, will be disqualified from holding public office in the State of California.

10.8 Solicitation. Consultant agrees not to solicit business at any meeting, focus group, or interview related to this Agreement, either orally or through any written materials.

10.9 Contract Administration. This Agreement shall be administered by the City Manager, or his designee, identified as Krysten Lee ("Contract Administrator"). All correspondence, meeting documentation, invoices and project deliverables shall be directed to or through the Contract Administrator.

10.10 Notices. Any notice, demand, request, consent or approval that either party is required to give the other pursuant to this Agreement, shall be in writing and may be given by either (i) personal service, (ii) delivery by reputable overnight delivery service (e.g. Federal Express) which provides a receipt showing date and time of delivery, (iii) certified United States mail, postage prepaid, return receipt requested, or (iv) by email transmission . Notice shall be effective upon personal delivery or delivery to the addresses specified below, as reflected on the receipt of delivery or return receipt, as applicable.

Any written notice to Consultant shall be sent to:

Lance, Soll & Lunghard, LLP
Attn: Brandon Young, Partner
2151 River Plaza Dr., Suite 150
Sacramento, CA 95833
Consulting Services Agreement between
City of Newark and Lance, Soll & Lunghard, LLP Page 13 of 14 All other written notices to City shall be sent to:
_______ Kristopher J. Kokotaylo,
_______ City Attorney
City of Newark City of Newark
37101 Newark Blvd. with a copy to 37101 Newark Blvd.

Newark, CA 94560 Newark, CA 94560

10.12 Professional Seal. Where applicable in the determination of the contract administrator, the first page of a technical report, first page of design specifications, and each page of construction drawings shall be stamped/sealed and signed by the licensed professional responsible for the report/design preparation. The stamp/seal shall be in a block entitled "Seal and Signature of Registered Professional with report/design responsibility," as in the following example. _________________________________________
Seal and Signature of Registered Professional with
report/design responsibility.

10.13 Integration. This Agreement, including the scope of work attached hereto and incorporated herein as Exhibits A and B represent the entire and integrated agreement between City and Consultant and supersedes all prior negotiations, representations, or agreements, either written or oral.

Exhibit A Scope of Services
Exhibit B Cost Proposal

10.14 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement.

SIGNATURES ON FOLLOWING PAGE
Consulting Services Agreement between
City of Newark and Lance, Soll & Lunghard, LLP Page 14 of 14 The Parties have executed this Agreement as of the Effective Date.

CITY OF NEWARK LANCE, SOLL & LUNGHARD, LLP
____________________________ ______________________________ ________, CITY MANAGER
Title: _________________________
ATTEST:
___________________________
______, CITY CLERK
APPROVED AS TO FORM:
____________________________
KRISTOPHER J. KOKOTAYLO

CITY ATTORNEY
5638310.1
Version 3.2.21

EXHIBIT A

SCOPE OF SERVICES

EXHIBIT B

COMPENSATION SCHEDULE
Consulting Services Agreement between
City of Newark and _________
Item  D. 4.

DATE 02/27/2025
TO Honorable Mayor and City Council Members
FROM James Scanlin, Environmental Services Manager
SUBJECT    Adopt a resolution approving a modification to a contractual services agreement with Surf to Snow Environmental Resource Management, Inc. to conduct inspections of industrial and commercial facilities as required by the City's stormwater discharge permit
SUMMARY AND RECOMMENDATION
The San Francisco Bay Regional Water Quality Control Board (Water Board) issues stormwater discharge permits to the City. These permits require the City to conduct inspections of commercial and industrial facilities to ensure that the facilities are implementing management practices to prevent pollutants from contaminating stormwater discharges. In 2022, the City released a request for proposals (RFP) to conduct these inspections. Surf to Snow Environmental Resource Management, Inc. (Surf to Snow) was selected to provide these services. The City executed a contract with Surf to Snow in July 2022 for $55,120. The Agreement was for a one-year term with the option to extend the Agreement for two additional one-year terms. In August 2023, the City modified the contract (First Amendment) to extend the contract termination date to June 30, 2024, and increased the contract amount by $65,000 for a new not-to-exceed amount of $120,120. In July 2024, the City extended the contract termination date to June 30, 2025 (Second Amendment) without providing additional funding. Staff proposes a Third Amendment to increase the contract amount by $59,000 for a new not-to-exceed amount of $179,120 to allow Surf to Snow to conduct inspections through June 30, 2025.

Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute the third amendment to the contractual services agreement with Surf to Snow Environmental Resource Management, Inc. to continue conducting inspections of industrial and commercial facilities to ensure compliance with the Municipal Regional Stormwater Permit.

BACKGROUND
The City, along with the other cities, unincorporated areas, and flood control districts in The City, along with the other cities, unincorporated areas, and flood control districts in Alameda, Contra Costa, Santa Clara, and San Mateo counties, is issued a National Pollutant Discharge Elimination System (NPDES) Permit from the Water Board for discharges from its storm sewer system to the San Francisco Bay. This permit is referred to as the Municipal Regional Stormwater Permit or MRP. The Water Board adopted a revised MRP on May 11, 2022 which went into effect on July 1, 2022. The MRP requires the City to implement numerous activities to prevent pollutants from contaminating its stormwater discharges including: (1) inspect all the installed stormwater treatment systems to ensure that they are operating properly and to require additional maintenance if needed; (2) inspect all industrial and commercial sites that could cause or contribute to pollution of stormwater discharges to ensure that proper best management practices (BMPs) are being implemented and to require corrective action as needed; (3) effectively prohibit non-stormwater discharges from entering the storm drain system and to respond to any discharges or complaints of discharges, and to ensure the discharges cease and are cleaned up; and  (4) eliminate the discharge of trash to its storm drain system by June 30, 2025. Failure to comply with these permit requirements could result in fines from the State or in third-party lawsuits.

DISCUSSION/ANALYSIS
Surf to Snow was selected through a competitive selection process and has provided excellent service. The Agreement allows for extending the contract termination date through June 30, 2025. Approving this contract modification will allow the City to meet the State's requirements to inspect commercial and industrial facilities to ensure pollution control management practices are implemented.

FISCAL IMPACT
The 2024-2026 Biennial Budget and Capital Improvement Plan contains sufficient funding for this scope of work. No budget modifications are necessary.

REVIEW AND APPROVAL
Prepared by - James Scanlin, Environmental Services Division Manager Reviewed by - Howard Young, Public Works Director
Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - David J. Benoun, City Manager
Attachments
Original Agreement
1st Amendment to Agreement
S2S 2nd Amendment
Surf to Snow Resolution 3rd Amendment
S2S Third Amendment
Exhibit B-Revised Rate Schedule

Elizabeth Frantz
August 1, 2024
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK AUTHORIZING THE CITY MANAGER TO EXECUTE

THE THIRD AMENDMENT TO THE CONTRACTUAL

SERVICES AGREEMENT WITH SURF TO SNOW
ENVIRONMENTAL RESOURCE MANAGEMENT, INC., FOR

MUNICIPAL STORMWATER INSPECTION SERVICES
WHEREAS, the State of California hasissued to the City of Newark Waste Discharge Requirements and a National Pollutant Discharge Elimination System (NPDES) Permit (No.

CAS612008) for the discharge of stormwater runoff from the municipal separate stormwater system; and
WHEREAS, the City is required by the terms of the Permit to conduct inspections of stormwater treatment systems and industrial and commercial facilities to ensure that the systems are operating properly and that the facilities are implementing appropriate best management practices; and
WHEREAS, the City and Surf to Snow Environmental Resources, Inc. ("Consultant") entered into an Agreement between City and Consultant for Municipal Stormwater Inspection Services effective July 28, 2022 (Agreement) in the amount of $55,120; and WHEREAS, the City previously amended the Agreement through a First Amendment in August 2023 to increase the contract amount by $65,000, bringing the total not-to-exceed amount to $120,120, and extending the contract term to June 30, 2024; and
WHEREAS, a Second Amendment in July 2024 further extended the contract termination date to June 30, 2025 to continue compliance with the City's Municipal Regional Stormwater Permit (MRP); and WHEREAS, Consultant has satisfactorily completed the scope of services in the Municipal Stormwater Inspection Services Agreement and the Amendments; and WHEREAS, Municipal Stormwater Inspections are required by the City’s Municipal Regional Stormwater Permit to be conducted annually; and
WHEREAS, the City intends, upon mutual written agreement by both parties, to revise the payment schedule as provided for in the Agreement; and
WHEREAS, the City now desires to further amend the Agreement through a Third Amendment to provide additional funding of $59,000, increasing the total contract not-to-exceed amount to $179,120, ensuring continued compliance with the Municipal Regional Stormwater Permit requirements.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Newark hereby authorizes the City Manager to execute the Third Amendment to the Contractual Services Agreement with Surf to Snow Environmental Resource Management, Inc., in a form approved by the City Attorney, increasing the total contract not-to-exceed amount to $179,120, and to execute any necessary documents and take all actions necessary to effectuate the intent of this Resolution.

THIRD AMENDMENT TO THE CONTRACTUAL

SERVICES AGREEMENT BETWEEN THE CITY OF

NEWARK AND SURF TO SNOW ENVIRONMENTAL
RESOURCES, INC.

This Third Amendment to Contractual Services Agreement between the City of Newark, a municipal corporation, ("City") and Surf to Snow Environmental Resources, Inc., ("Consultant") dated July 28, 2022 (the “Agreement”), is entered into as of _____________, 2025 for the provision of Municipal Stormwater Inspection Services.

RECITALS
WHEREAS, the City and Surf to Snow Environmental Resources, Inc. ("Consultant") entered into an Agreement between City and Consultant for Municipal Stormwater Inspection Services effective July 28, 2022 (Agreement); and
WHEREAS, The Agreement was amended to provide additional inspection services, increase funding, and revise the Term/Termination date to June 30, 2025.

WHEREAS, Consultant has satisfactorily completed the scope of services in the Municipal Stormwater Inspection Services Agreement and the Amendments; and WHEREAS, Municipal Stormwater Inspections are required by the City’s Municipal Regional Stormwater Permit to be conducted annually; and
WHEREAS, the City intends, upon mutual written agreement by both parties, to revise the payment schedule as provided for in the Agreement.

NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
(1) Notwithstanding Section 1 of the Agreement, the parties hereby agree to add additional funding in the amount of $59,000.00 to the Agreement for a new not to exceed the amount of $179,120.00.
(2) Notwithstanding Section 3 of the Agreement, the parties hereby agree to revise the payment schedule of the Agreement to the payment schedule as contained in Exhibit B.

The Third Amendment of the Agreement for Municipal Stormwater Inspection Services has been executed by the parties as of the date first set forth above.

City of Newark
David J. Benoun
City Manager
Dated
Attest:
__________________________
Sheila Harrington
City Clerk
Approved as to Form:

Kristopher J. Kokotaylo
City Attorney
Consultant

Elizabeth Franz
Chief Operating Officer
Dated

Surf to Snow Environmental Resource Management, Inc.

Pricing Summary
MRP Provision C.3 O&M Verification Inspections (Unit Rate) MRP Provision C.4 Business Inspections (Unit Rate) Units Unit Rate Number of
Locations per
Year
Total Estimate
per Year
Units Unit Rate Number of
Locations per
Year
Total Estimate
per Year
C.3 O&M Inspection (Initial) $326.97 31.00 $10,136.07 C.4 Business Inspection (Initial) $326.97 60.00 $19,618.20 C.3 O&M Inspection (1st Re-Insp) $259.50 10.00 $2,595.00 C.4 Business Inspection (1st Re-Insp) $259.50 8.00 $2,076.00 C.3 O&M Inspection (2nd Re-Insp) $259.50 - $0.00 C.4 Business Inspection (2nd Re-Insp) $259.50 - $0.00 $12,731.07 $21,694.20
Spill & Discharge Response (Unit Rate) Trash Assessments for Private Land Drainage Areas (Unit Rate) Task Unit Rate Number of
Locations per
Year
Total Estimate
per Year
Task Unit Rate Number of
Locations per
Year
Total Estimate
per Year
Illicit Discharge - Typical Spill Response $741.13 6.00 $4,446.78 Trash Assessments for Private Land Drainage Areas (PLDAs)-Combined
with C.4 Inspections
$106.40 35.00 $3,724.00
Illicit Discharge - Emergency
Weekend/After-Hours Spill Response
$1,379.50 1.00 $1,379.50 $3,724.00
$5,826.28
Post-Inspection Reporting & Deliverables (T&M) Project Management & QAQC (T&M) Total Estimate
per Year
Total Estimate
per Year
$871.92 $7,951.08
$3,736.80 $887.49
$4,608.72 $8,838.57
$57,422.84
Assumptions
1 2 Assume no escalation for Year 2 rates. Assume an escalation will be approved for Year 3 rates for a cost of living adjustment based on current year escalation rate. 3 4 C.3/C.4 re-inspection units include time for research, scheduling, onsite inspection, & reporting. Assume total of 2.5 hours per inspection on average. 5 6 Assume 31 initial C.3 inspections yearly. Assume 10 total reinspections are needed before 6/30/25. 7 8
9 10 Assume QA/QC required for each Inspection/Spill Response/PLDA/Mobile Business report. Assume 0.25 hours per report. 11 Assume project support active for 5 months of the year. Assume 2 hours per month of PM time will be required during these active months. 12 Assume up to 3 meetings with the City yearly (kickoff meeting, meeting to discuss database, & meeting 60 days prior to end of contract term). 13 Proposal assumptions assume a 3-year duration. If performance period extends beyond 3 years, assumptions and rates will be subject to change.

T&M Rates
Labor Category Regular Weekend/
After Hours
Contract Manager $171.27 $256.91
Assistant PM/Field POC $124.56 $186.84
QSD $145.32 $217.98
QSP $114.18 $171.27
DI $98.61 $147.92
GIS $101.73 $152.60
Hourlys Rate
Initial C.3/C.4 inspection units include time for research, scheduling, onsite inspection, reporting, & time to collect GIS data for the City's database. Assume total of 3 hours per inspection on average.

Assume 7 spill responses yearly. Assume 4 hours per inspection per site, 1.5 hours follow up per site, & 60 miles roundtrip. The Weekend/After-Hours Spill Response rate includes

1.5xhourly rate for inspection & assumes follow up after inspection occurs during normal working hours.

Proposal includes a new task for trash assessments on private land drainage areas (PLDA). Assume all PLDA assessments assigned to S2S will be performed with a C.4 inspection. When this assessment is paired with a C.4 inspection, only the additional reporting time will need to be covered. The PLDA unit included is for reporting only.

Assume 60 initial C.4 inspections yearly. Assume 8 total reinspections are needed before 6/30/25.

C.3 Inspection Total C.4 Inspection Total
Project Management & QAQC
Communication with City (meetings/calls)
Total Estimated Cost Per Year (C.3 + C.4 + Spill + PLDA + Mobile Business + PM + Weekly/Monthly Reporting) Task
Monthly Reporting
Weekly Reporting
Post-Inspection Reporting & Deliverable Total Project Management & QAQC Total Trash Assessment for Private Land Drainage Areas Total
Spill & Discharge Response Total
Assume inspection of Mobile Business may be needed. If any occur, the inspection billing will be covered by an Illicit Discharge unit (if out in the field) or an Initial Inspection unit (if at the business base location).

Task
A proposal has been requested to continue services for the City of Newark. This proposal includes tasks and rates for the 2024-2025 reporting year (Year 1), with the possibility of 2 additional years (Year 2 and Year 3).

Item  D. 5.

DATE 02/27/2025
TO Honorable Mayor and City Council Members
FROM Daniel Sequeira, City Engineer
SUBJECT    Adopt a resolution authorizing the City Manager to execute Contractual Service Agreements for On-Call Civil Engineering Services with the following consultants: Coastland Civil Engineering, LLP, CSW-Stuber Stroeh Engineering Group, Inc., Haley & Aldrich, Inc., and F.J. Kennedy and Associates, Inc.

SUMMARY AND RECOMMENDATION
In accordance with the City’s Purchasing Ordinance and procedures, staff prepared and initiated an open and competitive Request for Qualifications (RFQ) for on-call Civil Engineering Services. The RFQ specified that selection would be made based on quality and completeness of submissions as well as each firm’s experience with engagements of similar scope and complexity, satisfaction of previous clients, and proposed rate schedule.

Staff recommends that City Council adopt a resolution authorizing the City Manager to execute Contractual Service Agreements, in a form approved by the City Attorney, with the four consultants for on-call Civil Engineering Services for the firms that staff determined most qualified.

BACKGROUND
The Public Works Department has significant projects pending and four vacancies in the Engineering Division: two Senior Civil Engineers, one Associate Civil Engineer, and one Engineering Technician. Staff is in the recruitment process but has a current and ongoing need for specialized skills to augment existing staff to manage the Capital Improvement Program and multiple land development projects. Accordingly, on December 23, 2024, staff released an RFQ for on-call Civil Engineering Services. The on-call scope of services for the RFQ is described below:

Civil Engineering Services

1. Prepare plans, specifications and estimate for the Slurry Seal 2025 Project.

2. Prepare the 5-Year Capital Improvement Program.

3. Update the City's Standard Details.

4. Provide construction management and inspections services for paving projects, utility installation and replacement, and storm drain systems.

5. Provide staff augmentation for the Land Development and Capital Improvement Program sections.

6. Serve as City Surveyor in reviewing, signing and stamping subdivision maps, Certificates of Correction, Lot Line Adjustments and Abandonments in conformance with City, State, County requirements.

7. Other duties as assigned by City Engineer.

DISCUSSION/ANALYSIS
Statement of Qualifications (SOQs) from interested consultants were submitted to the City on January 7, 2024.

A total of seven SOQs were received.  Staff evaluated the SOQs and ranked them based on the firm’s understanding of the City’s desires and approach to completing the work, experience with contracts of similar scope, complexity and magnitude, qualifications of the staff being assigned, proposed rate schedule, satisfaction of previous clients, and the firm’s ability to work effectively with City staff. The SOQs were received from the following firms:

BKF Engineers
Coastland I DCCM
CSWST
Haley & Aldrich, Inc.

Interwest Consulting Group
Kennedy and Associates
Ruggeri-Jensen-Azar
The professional services fees is generally consistent and does not significanty vary among the consultants that submitted SOQs.

Staff is recommending the approval of Contractual Services Agreements with four different consultant firms, each with a not to exceed amount as indicated below:

Coastland I DCCM: $750,000
CSWST2: $750,000
Haley & Aldrich: $900,000
Kennedy and Associates: $500,000
The contract amounts recommended by staff is based on the scope of services staff is planning to assign to each consultant in order to deliver certain CIP and land development projects during the contract term.

All agreements will be for a four-year term, expiring on June 30, 2029.  Under the terms of the agreements, the selected firms will provide the requested services based on the adopted compensation rates.

FISCAL IMPACT
The proposed action will not have any direct impact on the General Fund at this time.

Funds to pay for services related to Capital Improvement Program (CIP) projects will be provided by each individual CIP project budget approved by the City Council when it adopted the Biennial Budget for 2024-2026 (Budget). Funds to pay for the preparation of the 5-Year CIP will be provided by the Public Works – Engineering operating budget, also approved by the City Council when it adopted the Budget. Funds to pay for services related to land development projects will be offset by Development Services fees provided for in the Master Fee Schedule adopted by the City Council on November 14, 2024, and effective January 13, 2025.

REVIEW AND APPROVAL
Prepared by - Brett Oeverndiek, Management Analyst II
Prepared for - Daniel A. Sequeira, PE, City Engineer
Reviewed by - Howard Young, Public Works Director
Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - David J. Benoun, City Manager
Attachments
RFQ
Resolution
1 REQUEST FOR QUALIFICATIONS
On-Call Civil Engineering Services
STATEMENTS OF QUALIFICATIONS MUST BE RECEIVED BY E-MAIL:

TUESDAY, JANUARY 7, 2024 at 5:00 PM
City of Newark
Department of Public Works
37101 Newark Boulevard
Newark, CA 94560
Point of Contact:

Daniel A. Sequeira, PE
City Engineer
[email protected]
2 REQUEST FOR QUALIFICATIONS (RFQ)

ON-CALL CIVIL ENGINEERING SERVICES

1. INTRODUCTION
The City of Newark (City) is seeking experienced and qualified Civil Engineering firm(s) (Consultant) to perform civil engineering services to augment City staff. The Consultant will be expected to perform various civil engineering duties and to work collaboratively with City staff. The Consultant(s) will be expected to act on behalf, and as an extension, of City staff, in the interests of the City and safety of its residents.

2. BACKGROUND
The City of Newark is located in Southern Alameda County at the east end of the Dumbarton Bridge, 30 miles south of Oakland, 15 miles north of San Jose. Newark was incorporated as a General Law City in 1955 and has a Council/Manager form of government. Newark’s population is approximately 49,149, with an encompassed area of approximately 13 square miles. Other information regarding the City of Newark can be found on the City’s website – www.newark.org.

3. GENERAL
The selected firm(s) will work under the general direction of the Public Works Director or designee to perform services as they are required. Consultant selection will be at the sole discretion of the City. No consultant is guaranteed work.

The selected consultant(s) will enter into a Contractual Services Agreement which will specify the billing rates, personnel to be assigned, and other terms. No monthly retainer is anticipated. Additional services may be authorized by Task Orders issued by the City in the form of a written request.

The City is requesting services for a minimum term of two (2) years, renewable for two additional one (1) year periods, upon mutual consent of the City and Consultant.

Approximately 60 days prior to the end of each agreement period, a meeting may be held between the Consultant(s) and City of Newark staff to conduct a performance review, revise the scope and/or language of the agreement, and submit the Consultants’ most current rate schedules. The Contractual Services Agreement requires the City Council’s approval.

Extensions to the term of the agreement, as allowed, will be subject to review and approval of the Public Works Director, City Manager and/or City Council.

4. SCOPE OF SERVICES
The desired scope of civil engineering services encompasses a wide range of activities and may include the following:

1. Prepare plans, specifications and estimate for the Slurry Seal 2025 Project, scheduled for construction in summer 2025. Due to the compressed schedule, the consultant must be willing to start work prior to City Council approval of the contract through authorization of a Letter of Intent.

2. Prepare the 5-Year Capital Improvement Program, scheduled for City Council adoption in June 2025. The current CIP:
https://www.newark.org/home/showpublisheddocument/8775/637974495915500000 3 3. Update the City’s Standard Details. The current Standard Details:
https://www.newark.org/home/showpublisheddocument/9135/638252047500478108

4. Provide construction management and inspections services for asphalt concrete paving, utility installations, trench backfill and compaction, and storm drain systems.

5. Provide staff augmentation for the Land Development and Capital Improvement Program sections.

6. Serve as City Surveyor in reviewing, signing and stamping (seal) all maps, plats, legal description and other documents and providing technical map checking, review Certificates of Correction, Lot Line Adjustments and Abandonments for technical correctness and conformance with State, County and City requirements.

7. Other duties as assigned by City Engineer.

Consultant(s) hereby agree to furnish any and all materials, labor and equipment to perform the inspection services.

Additionally, Consultant(s) will be expected to work collaboratively with Public Works staff and other City departments, such as Planning, Building, and Fire. External agencies that may also require effective communication include Union Sanitary District, Alameda County Water District, Alameda County Flood Control, PG&E, and other dry utility companies. The above list is not exhaustive, but rather an overview of primary-level expectations.

If the consulting firm includes more than one Consultant in their RFQ, selected Consultants will be required to maintain adequate communication between one another to remain fully cognizant of their assigned projects’ progression. The Consultant(s) will be expected to represent the City, protecting the interests of the City and its residents in communications with City staff, residents and developers/contractors/applicants.

5. STATEMENT OF QUALIFICATIONS/PROPOSAL FORMAT AND CONTENT The proposal shall be brief, precise, and shall not include unnecessary promotional material. The proposal shall not exceed 10 pages, excluding resumes.

The proposal should contain the following elements in the exact order and segmentation listed below:
a. Cover Letter. Describe your firm or team’s interest and commitment in providing On-Call Civil Engineering services to the City. Specify which item numbers, e.g., 1, 2, and 3, in Section 4 above your firm would like to be considered for. The letter shall be signed by a person authorized to negotiate a contract with the City. b. Staffing, Team Experience and Understanding of Requested Services & Objectives.

Describe the qualifications and experience of the team members expected to be assigned to this project. The description shall include previous experience with similar contracts.

Include an organization chart and provide a matrix including which projects team members have worked on together in the past. Provide a discussion demonstrating the firm’s understanding of the services to be provided and their significance to the overall City goals. 4 c. Experience providing similar services. The Consultant must present significant evidence of successful completion of similar services provided for local government clients over the past five years.
d. Resumes. Include single page resumes of the key personnel to be assigned to the consultant team. It is expected that designated key staff will remain for the duration of the agreement. Key staff substitution will be allowed only after consultation and concurrence with the City.
e. References. Provide at least three references (name, agency, title, address and telephone number) for recent similar or related work.
f. Rate Schedule. Present proposed compensation rate schedule for services. g. City’s Standard Contractual Services Agreement. A sample of the City’s Standard Contractual Services Agreement (Agreement), including insurance requirements, is provided as Attachment A. If the interested firm would like to request amendments or exceptions to the Agreement and/or insurance requirements, these shall be specifically noted in the Statement of Qualifications. Otherwise, provide confirmation of your firm’s ability to meet the City’s Standard Contractual Services Agreement and insurance requirements. Requested amendments and exceptions will be taken into consideration in evaluating the Statement of Qualifications. Requests for amendments and/or exceptions to the Agreement will not be considered if not included in the submitted Statement of Qualifications.
h. Other Relevant Information. Provide additional relevant information that may be helpful in the selection process.

6. SELECTION CRITERIA AND SELECTION PROCESS WITH ESTIMATED DATES Statements of Qualifications will be screened, and the top candidate(s) will be reviewed by a selection committee. The qualifications for the top candidates will be verified and references will be checked. In reviewing the Statements of Qualifications, the City will carefully weigh:
➢ Consultant’s understanding of the City’s desires and general approach to completing the work
➢ Consultant’s experience with contracts of similar scope, complexity and magnitude ➢ Qualifications of the staff being assigned to this project ➢ Demonstrated ability of the Consultant to perform high quality work, to control costs and to meet time schedules
➢ Satisfaction of previous clients
➢ Ability to work effectively with City staff
➢ Proposed rate schedule
5 The City retains sole discretion to evaluate qualifications and may award the Consultant(s) the City deems to have the most responsive Statement of Qualifications. Receipt of qualifications in response to this RFQ does not obligate the City in any way to engage any Consultant and the City reserves the right to reject any or all qualifications, wholly or in part, at any time, without penalty. The City shall retain the right to abandon the qualification process at any time prior to the actual execution of a contract with a Consultant, and the City shall bear no financial or other responsibility in the event of such abandonment. The City reserves the right to negotiate all final terms and conditions of any agreements entered into. The City’s target dates are as follows:

Release of RFQ: December 23, 2024
Statement of Qualifications due: January 7, 2025
Services Agreement scheduled for City Council approval: February 2025

7. SUBMITTAL GUIDELINES
Consultants shall e-mail an electronic pdf file of the Statement of Qualification with a subject line “City of Newark – Statement of Qualifications for Civil Engineering Services” to:

Daniel A. Sequeira, PE
City Engineer
[email protected]
Proposals shall be received by 5:00 p.m. on January 7, 2025.

HARD COPIES AND FAX SUBMISSIONS WILL NOT BE ACCEPTED.

Any changes made by the City to the requirements in this RFQ will be made by written addenda. Any written addenda issued to this RFQ shall be incorporated into the terms and conditions of any resulting Agreement. The City will not be bound by any modifications to or deviations from the requirements set forth in this RFQ as the result of oral instructions. The City reserves the right to revise or withdraw this RFQ at any time and for any reason.

The City reserves the right to reject any and all proposals, to waive any minor informalities, irregularities, and/or non-responsiveness that does not influence the competitive nature of the proposal, to request additional information concerning any statement for purposes of clarification, to accept or negotiate any modification to any statement following the deadline for receipt of all statements, and to waive any irregularities if such would serve the best interests of the City.

All inquiries regarding the RFQ should be directed to Daniel A. Sequeira, PE, City Engineer, by email at [email protected].

Additional Submittal Information
The City assumes no responsibility for delays caused by delivery service.

All costs incurred during proposal preparation or in any way associated with the Consultant’s preparations, submission, presentation, or oral interview, if held, shall be the sole responsibility of the Consultant.
6 If awarded a contract, the Consultant shall maintain insurance coverage, including errors and omissions and worker’s compensation, reflecting the minimum amounts and conditions specified by the City as outlined in the attached Contractual Services Agreement.

Consultants are liable for all errors or omissions contained in their Statement of Qualifications. By submitting a Statement of Qualifications, interested firms represent that they: (1) have thoroughly examined and become familiar with the Work required under this RFQ; (2) comprehend all conditions that may impact the requested scope of services; (3) have reviewed of all addenda, if any; and (4) are capable of providing the equipment, goods and services necessary to perform the requested scope of services and/or meet the specifications outlined in this RFQ, in a manner that meets the City’s objectives. Failure to examine the documents and inform itself shall be at firms’ own risk. A Proposer shall have no claim against the City based upon ignorance of or misunderstanding of the RFQ documents. Once the award has been made, failure of a firm to have read all of the conditions and instructions of the RFQ and/or the Agreement shall not be cause to alter any term of the Agreement nor shall such failure provide valid grounds for a firm to withdraw its Statement of Qualifications or to seek additional compensation.

Additionally, if awarded a contract, the Consultant shall maintain a valid City of Newark business license at all times during the performance of work under the contract.

All Statements of Qualifications and rates set forth therein shall be deemed to include applicable taxes. Interested firms shall be appropriately licensed in accordance with the laws of the State of California for the work to be performed. The cost for any required licenses or permits shall be the responsibility of the selected firm(s). The selected firm(s) is liable for any and all taxes due as a result of the agreement. 7 ATTACHMENT A

CITY OF NEWARK

STANDARD SERVICES AGREEMENT

RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK AUTHORIZING THE CITY MANAGER TO

NEGOTIATE AND ENTER INTO A CONTRACTUAL

SERVICES AGREEMENTS FOR ON-CALL CIVIL

ENGINEERING SERVICES WITH THE FOLLOWING
CONSULTANTS: COASTLAND CIVIL ENGINEERING, INC.;
CSW-STUBER STROEH ENGINEERING GROUP, INC.;
HALEY & ALDRICH, INC.; F.J. KENNEDY AND
ASSOCIATES, INC.

WHEREAS, the Public Works Department has four vacancies in the Engineering Division: two Senior Civil Engineers, one Associate Civil Engineer, and one Engineering Technician; and
WHEREAS, recruitments for these positions have started; however, there is a need to augment existing staff to manage Capital Improvement Program and Land Development projects; and
WHEREAS, the City of Newark Public Works Department issued a Request for Qualifications for on-call civil engineering services to augment City staff; and WHEREAS, a total of seven (7) statements of qualifications were received and evaluated by staff on their cost of services, qualifications and experience of firm and staff identified, the firm’s understanding of the City’s desires and general approach to completing the work, and other factors; and
WHEREAS, based on staff’s evaluation, the following firms were determined to be the most qualified to provide the services requested:
 Coastland Civil Engineering, LLP
 CSW-Stuber Stroeh Engineering Group, Inc.
 Haley & Aldrich, Inc.
 F.J. Kennedy and Associates, Inc.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Newark does hereby authorize the City Manager to negotiate and enter into a Contractual Services Agreements, in a form approved by the City Attorney, with the firms listed below for the stated not to exceed amounts:
 Coastland Civil Engineering, LLP – $750,000
 CSW-Stuber Stroeh Engineering Group, Inc. – $750,000
 Haley & Aldrich, Inc. – $900,000
 F.J. Kennedy and Associates, Inc. – $500,000
BE IT FURTHER RESOLVED that the City Council of the City of Newark does hereby authorize the City Manager to take all actions necessary to effectuate the intent of this Resolution.

Item  D. 6.

DATE 02/27/2025
TO Honorable Mayor and City Council Members
FROM Ryan Nishimoto, ACFD Deputy Chief
SUBJECT    Adopt a resolution acknowledging receipt of the report made by the Fire Chief of the Alameda County Fire Department regarding the inspection of certain occupancies required to perform annual inspections pursuant to California Health and Safety Code Section 13146.2 and 13146.3, which includes educational and residential occupancies
SUMMARY AND RECOMMENDATION
Staff recommends that the City Council by resolution, expressly acknowledge the measure of compliance of the Alameda County Fire Department with Health and Safety Code Section 1316.2 and 13146.3 in the area encompassed by the City of Newark.

BACKGROUND
California Senate Bill 1205 (SB 1205) was signed into law in 2018 after the tragic Ghost Ship Fire brought national attention to California and put a spotlight on fire safety laws as well as the performance of fire inspections.  SB 1205 took effect on January 1, 2019 and amended California law to require fire departments that are required to perform annual inspections to annually report to City Councils (or other relevant legislative bodies) on their compliance with the annual inspection requirement. As required by SB 1205, the Alameda County Fire Department submits this report to the City Council outlining the Alameda County Fire Department’s compliance with the annual inspection requirements set forth in California Health and Safety Code Sections 13146.2 and 13146.3.

The annual report of these inspections includes every building within the City of Newark used as a public or private school, hotel, motel, lodging house, apartment house, and certain residential care facilities for compliance with building standards.

DISCUSSION/ANALYSIS
The purpose of annual fire and life safety inspections is to mitigate known hazards, reduce risk to the community, and ensure reasonable compliance with the California Fire Code.  As noted above, California Health and Safety Code Sections 13146.2 and 13146.3 mandate that the Alameda County Fire Department inspect all public or private schools, hotels, motels, lodging houses, apartment houses, and certain residential care facilities annually.

These occupancies fall under Groups E (Educational) and R (Residential R1 and R2) identified in the proposed City Council resolution.  The Alameda County Fire Department personnel completed 31 inspections of educational Group E occupancies and 191 residential Group R occupancies during fiscal year 2023/2024.  This represents a 100% compliance rate. A list of the inspections including dates is attached.  The inspections revealed that the occupancies were either in compliance or had minor correctable violations with no significant violations requiring closure.

Alameda County Fire Department's compliance with the annual inspection requirements was 100% completed for fiscal year 2023/2024.

FISCAL IMPACT
None
REVIEW AND APPROVAL
Prepared by - Ryan Nishimoto, Deputy Chief
Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - David J. Benoun, City Manager
Attachments
SB1205 FY23-24
Resolution 23/24 SB 1205
Newark SB1205 FY23-24
Street Number Street Name Street Type Occupant Name Occu. Inspection Date 6309 Baine Avenue Apt 8 Units R 10/13/2023
6327 Baine Avenue Apt 8 Units R 10/13/2023
6345 Baine Avenue Apt 7 Units R 10/13/2023
6361 Baine Avenue Apt 7 Units R 10/13/2023
6377 Baine Avenue Apt 7 Units R 10/13/2023
6393 Baine Avenue Apt 7 Units R 10/13/2023
6401 Baine Avenue Apt 4 Units R 8/31/2023
6411 Baine Avenue Apt 4 Units R 8/31/2023
6437 Baine Avenue Apt 7 Units R 10/23/2023
6453 Baine Avenue Apt 7 Units R 10/13/2023
35660 Cedar Avenue Montessori School of Newark E 3/25/2024 39600 Cedar Avenue Challenger Pre-School E 3/4/2024
39821-39887 Cedar Avenue Murieta Condos R 12/21/2023
6544 Clark Avenue 4-Plex R 3/8/2024
6564 Clark Avenue 4-Plex R 3/6/2024
35487 Dumbarton Avenue Challenger Elementary/Middle School E 2/14/2024 6537 Graham Avenue Apartment R 7/29/2023
6561 Graham Avenue Apt 6 Units R 5/16/2024
6585 Graham Avenue 4-Plex R 5/19/2024
6623 Graham Avenue Apt 6 Units R 8/19/2023
6671 Graham Avenue Apartments R 7/29/2023
6737 Graham Avenue Triplex R 8/19/2023
6749 Graham Avenue 3-Plex R 3/8/2024
6761 Graham Avenue 3-Plex R 5/30/2024
6773 Graham Avenue 3-Plex R 11/19/2023
5801 Jarvis Avenue Little Flowers Learning Center/Montessori E 3/25/2024 6201 Lafayette Avenue Newark Junior High School E 5/2/2024 5977 Mowry Avenue Comfort Inn & Suites R 4/1/2024
5735 Musick Avenue Musick E 2/14/2024
5735 Musick Avenue Musick Childcare E 2/14/2024
6071 Smith Avenue Birch Grove Primary (TK-2nd) E 1/25/2024 5318 St Mark Avenue Apt 16 Units R 11/22/2023
5366 St Mark Avenue Apt 16 Units R 11/22/2023
5424 St Mark Avenue 5424 St Mark Ave R 11/22/2023
5464 St Mark Avenue Apt 16 Units R 11/22/2023
5788 Thornton Avenue St Edwards Catholic School E 3/4/2024 7881 Thornton Avenue Apt 4 Units R 1/29/2024
7629 Wells Avenue Apt 4 Units R 8/18/2023
7881 Wells Avenue Apt 5 Units R 10/13/2023
7475-91 Wells Avenue Apt 4 Units R 1/29/2024
6054 Cedar Boulevard Apt 12 Units R 8/30/2023
6168 Cedar Boulevard Apt 16 Units R 11/9/2023
35501 Cedar Boulevard Newark Community Center Preschool E 3/26/2024 35753 Cedar Boulevard Bridgepoint E 3/4/2024
35777 Cedar Boulevard Newark Adult School E 3/4/2024
37177 Cedar Boulevard Apt 4 Units R 8/31/2023
37203 Cedar Boulevard Apt 6 Units R 8/19/2023
37221 Cedar Boulevard Apt 4 Units R 8/31/2023
37235 Cedar Boulevard Apt 4 Units R 5/16/2024
38325 Cedar Boulevard Kings Kids Preschool E 3/26/2024
39150 Cedar Boulevard Chase (Newark) Suites R 4/4/2024
1 Newark SB1205 FY23-24
39270 Cedar Boulevard Homewood Suites R 4/4/2024
39375 Cedar Boulevard Newark Memorial High School E 5/6/2024 39766 Cedar Boulevard Young Champions (A &B) E 4/18/2024 8200 Gateway Boulevard Aloft Silicon Valley R 3/27/2024 35457 Newark Boulevard Apt 10 Units R 2/3/2024
35481 Newark Boulevard 4-Plex R 7/22/2023
35493 Newark Boulevard 4-Plex R 8/8/2023
35511 Newark Boulevard 4-Plex R 11/1/2023
35533 Newark Boulevard 4-Plex R 11/18/2023
35559 Newark Boulevard 4-Plex R 8/30/2023
35571 Newark Boulevard 35571 Newark Blvd Newark R 3/15/2024 35607 Newark Boulevard Apt 14 Units R 2/29/2024
35635 Newark Boulevard Apt 7 Units R 4/22/2024
35657 Newark Boulevard 4-Plex R 11/9/2023
35679 Newark Boulevard 4-Plex R 2/3/2024
36880 Newark Boulevard Apt 6 Units R 5/16/2024
34905 Newark Boulevard Courtyard Newark Silicon Valley R 3/27/2024 5555 Cedar Court E-Z 8 in Newark R 5/2/2024
35466 Dumbarton Court Newark Residence Inn R 4/1/2024
39900 Balentine Drive Doubletree by Hilton (Newark/Fremont) R 3/27/2024 35430 Blackburn Drive Kennedy E 1/8/2024
35430 Blackburn Drive Kennedy Childcare E 1/8/2024
6200 Buena Vista Drive Waterford Condos R 8/18/2023
5307-5317 Port Sailwood Drive Cedar Glen Condos R 6/5/2024 5700 Newpark Mall Road Safari Kids E 3/25/2024
6000 Newpark Mall Road Staybridge Suites R 4/4/2024
6098 Newpark Mall Road Springhill Suites R 3/27/2024
36845 Ash Street Apt 4 Units R 8/18/2023
36863 Ash Street Apt 3 Units R 7/29/2023
36883 Ash Street Apt 3 Units R 8/18/2023
37186 Ash Street Apt 4 Units R 8/18/2023
37212 Ash Street Apt 4 Units R 8/18/2023
37230 Ash Street Apt 3 Units R 8/18/2023
37240 Ash Street Apt 3 Units R 8/18/2023
37257 Ash Street Apt 5 Units R 8/7/2023
37278 Ash Street Apt 3 Units R 8/18/2023
37279-83 Ash Street Apt 4 Units R 8/18/2023
35731 Bettencourt Street Apt 12 Units R 5/19/2024
35750 Bettencourt Street The Meadows- 85 Units R 5/28/2024 36111 Bettencourt Street Lincoln E 1/25/2024
36111 Bettencourt Street Lincoln Childcare E 1/25/2024
37490 Birch Street Birch Grove Intermediate (3rd-5th) E 2/14/2024 37490 Birch Street Birch Grove Childcare E 2/14/2024
37490 Birch Street Birch Grove EBAC E 2/14/2024
37815 Birch Street Little Flowers Montessorri E 4/1/2024 36270 Cherry Street Coyote Hills Elementary E 1/8/2024
36270 Cherry Street Coyote Hills Kidango E 1/8/2024
36270 Cherry Street Coyote Hills EBAC E 1/8/2024
36705 Cherry Street Apt 3 Units R 11/2/2023
36873 Cherry Street 3-Plex & 4-Plex R 11/22/2023
37075 Cherry Street Apt 6 Units R 10/13/2023
37248 Cherry Street 4-Plex R 11/22/2023
2 Newark SB1205 FY23-24
37266 Cherry Street 4-Plex
R 11/22/2023
37288 Cherry Street ApartmentR 8/18/2023
37387 Cherry Street Apt 11 Units
R 9/28/2023
37393 Cherry Street Apt 8 Units
R 11/9/2023
37401 Cherry Street Apt 8 Units
R 3/19/2024
37409 Cherry Street Apt 8 Units
R 11/17/2023
37451 Cherry Street 4-Plex
R 3/8/2024
37453 Cherry Street Apt 10 Units
R 2/10/2024
37461 Cherry Street Apt 8 Units
R 6/5/2024
37475 Cherry Street Apt 5 UnitsR 1/29/2024
39399 Cherry Street Stellar Academy For Dyslexics
E 3/4/2024
36802-36976 Cherry Street Bridgeport Homes 188
R 10/13/2023
36864 Elm Street Apt 5 UnitsR 5/16/2024
36871 Elm Street 3-Plex
R 3/6/2024
36967 Elm Street Apt 6 Units
R 1/29/2024
37024 Elm Street 3-Plex
R 3/6/2024
37087 Elm Street 4-Plex
R 3/8/2024
37093 Elm Street 4-Plex
R 3/6/2024
37122 Elm Street Apt 10 Units
R 3/8/2024
37127 Elm Street Apt 10 UnitsR 3/8/2024
37144 Elm Street 3-PlexR 3/6/2024
37149 Elm Street 3-Plex
R 5/30/2024
37166 Elm Street 3-PlexR 5/19/2024
37183 Elm Street 3-PlexR 5/30/2024
37188 Elm Street 3-PlexR 5/30/2024
37202 Elm Street 3-Plex
R 5/30/2024
37217 Elm Street 3-PlexR 5/30/2024
37331 Elm Street 3-PlexR 5/19/2024
37332 Elm Street 3-PlexR 5/30/2024
37344 Elm Street 3-PlexR 5/30/2024
37362 Elm Street 3-PlexR 5/30/2024
37367 Elm Street 3-PlexR 5/30/2024
37371 Filbert Street Diversity Childrens Center
E 3/26/2024
35621 Haley Street Bridgebay AptsR 8/19/2023
36959 Locust Street 3-PlexR 7/29/2023
37022 Locust Street 3-PlexR 7/29/2023
37029 Locust Street 3-PlexR 7/29/2023
37030 Locust Street 3-PlexR 7/29/2023
37038 Locust Street 3-PlexR 7/29/2023
37054 Locust Street 3-PlexR 7/29/2023
37073 Locust Street 3-PlexR 7/29/2023
37111 Locust Street 4-PlexR 7/29/2023
37125 Locust Street 3-PlexR 7/29/2023
37157 Locust Street 3-PlexR 11/19/2023
37245 Locust Street Apt 5 UnitsR 11/22/2023
37339 Locust Street 37339 Locust StR 11/19/2023
37352 Locust Street 4-PlexR 11/22/2023
37376 Locust Street 3-PlexR 11/19/2023
37007 Magnolia Street Apt 12 UnitsR 11/22/2023
37054 Magnolia Street 3-PlexR 11/19/2023
37088 Magnolia Street Apt 5 UnitsR 11/22/2023
37220 Magnolia Street Apt 5 UnitsR 10/13/2023
3 Newark SB1205 FY23-24
37232 Magnolia Street 4-Plex
R 11/22/2023
37015-91 Magnolia Street Alderwood Park Apts 96 UnitsR 7/29/2023 36834 Mulberry Street Apt 6 Units
R 1/29/2024
36920 Mulberry Street 4-Plex
R 3/6/2024
36976 Mulberry Street Apt 10 Units
R 3/8/2024
37039 Mulberry Street 3-Plex
R 3/6/2024
37040 Mulberry Street 4-Plex
R 3/6/2024
37055 Mulberry Street 3-Plex
R 7/29/2023
37086 Mulberry Street 4-Plex
R 5/19/2024
36874-78 Mulberry Street Apt 5 UnitsR 1/29/2024
37124 Oak Street Triplex
R 8/7/2023
37150 Oak Street Triplex
R 8/7/2023
37168 Oak Street TriplexR 8/7/2023
37184 Oak Street Triplex
R 8/7/2023
37208 Oak Street Triplex
R 8/7/2023
37236 Oak Street Triplex
R 8/7/2023
37242 Oak Street Triplez
R 8/7/2023
37250 Oak Street 3-Plex
R 11/19/2023
37273 Oak Street 3-Plex
R 11/19/2023
37342 Oak Street 3-PlexR 11/19/2023
37359 Oak Street 37359 Oak Stapt 8 UnitsR 11/19/2023
37366 Oak Street 3-Plex
R 11/19/2023
36839 Olive Street 3-PlexR 3/6/2024
36927 Olive Street 3-PlexR 3/6/2024
36954 Olive Street 3-PlexR 3/6/2024
37173 Olive Street 3-Plex
R 11/19/2023
37191 Olive Street 3-PlexR 5/30/2024
37221 Olive Street 3-PlexR 3/6/2024
37069-73 Olive Street 3-PlexR 3/6/2024
36901 Spruce Street Schilling Elementary
E 2/14/2014
36901 Spruce Street Schilling Kidango
E 2/14/2024
37034 Spruce Street 3-PlexR 11/19/2023
37082 Spruce Street 3-Plex
R 11/19/2023
37088 Spruce Street 4-PlexR 5/19/2024
37120 Spruce Street Apt 12 UnitsR 5/19/2024
37148 Spruce Street 3-PlexR 5/30/2024
37188 Spruce Street 3-PlexR 5/19/2024
36777 Sycamore Street Sycamore Square Apts 27 UnitsR 10/13/2023 36835 Sycamore Street Apt 3 UnitsR 3/8/2024
36843 Sycamore Street Apt 7 UnitsR 1/29/2024
36851 Sycamore Street Apt 8 UnitsR 1/29/2024
36857 Sycamore Street Apt8 UnitsR 1/29/2024
36867 Sycamore Street Apt 8 UnitsR 1/29/2024
36875 Sycamore Street Apt 12 UnitsR 3/8/2024
37171 Sycamore Street Sycamore Bay ApartmentsR 3/27/2024 36968 Walnut Street Apt 4 UnitsR 1/29/2024
37012 Walnut Street Apt 3 UnitsR 3/8/2024
37024 Walnut Street Apt 3 UnitsR 3/8/2024
37027 Walnut Street Apt 4 UnitsR 1/29/2024
37036 Walnut Street Apt 3 UnitsR 3/8/2024
37043 Walnut Street Apt 3 UnitsR 3/8/2024
37046 Walnut Street Apt 3 UnitsR 3/8/2024
4 Newark SB1205 FY23-24
37051 Walnut Street Apt 3 Units R 5/16/2024
37054 Walnut Street Apt 3 Units R 1/29/2024
37059 Walnut Street Apt 3 Units R 5/16/2024
37080 Walnut Street Apt 3 Units R 5/16/2024
37085 Walnut Street Apt 5 Units R 5/16/2024
37151 Walnut Street Apt 3 Units R 5/16/2024
37152 Walnut Street Apt 8 Units R 1/29/2024
37157 Walnut Street Apt 3 Units R 5/16/2024
37160 Walnut Street Apt 3 Units R 5/19/2024
37187 Walnut Street Apt 6 Units R 8/7/2023
37196 Walnut Street Apt 3 Units R 5/19/2024
37228 Walnut Street Apt 6 Units R 5/2/2024
37243 Walnut Street Apt 3 Units R 5/19/2024
37244 Walnut Street Apt 3 Units R 5/16/2024
37355 Walnut Street Apt 3 Units R 5/19/2024
5 RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK, CALIFORNIA ACKNOWLEDGING RECEIPT OF A

REPORT MADE BY THE FIRE CHIEF OF THE ALAMEDA

COUNTY FIRE DEPARTMENT REGARDING THE

INSPECTION OF CERTAIN OCCUPANCIES REQUIRED TO

PERFORM ANNUAL INSPECTIONS IN SUCH OCCUPANIES
PURSUANT TO SECTIONS 13146.2 AND 13146.3 OF THE
CALIFORNIA HEALTH AND SAFETY CODE.

WHEREAS, California Health & Safety Code Section 13146.4 was added in 2018 and became effective on September 27, 2018; and
WHEREAS, California Health & Safety Code Section 13146.2 and 13146.3 requires all fire departments, including the Alameda County Fire Department, that provide fire protection services to perform annual inspections in every building used as a public or private school, hotel, motel, lodging house, apartment house, and certain residential care facilities for compliance with building standards, as provided; and
WHEREAS, California Health & Safety Code Section 13146.2 requires all fire departments, including the Alameda County Fire Department, that provide fire protection services to report annually to its administering authority on its compliance with Sections 13146.2 and 13146.3; and
WHEREAS, the City Council Council of the City of Newark intends this Resolution to fulfill the requirements of the California Health & Safety Code Regarding acknowledgement of the Alameda County Fire Department’s compliance with California Health and Safety Code Sections 13146.2 and 13146.3.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Newark hereby expressly acknowledges the measure of compliance of the Alameda County Fire Department with California Health and Safety Code Sections 13146.2 and 13146.3 in the area encompassed by the City of Newark, as follows:

A. EDUCATIONAL GROUP E OCCUPANCIES
Educational Groupe E occupancies are generally those public and private schools used by more than six persons at any one time for education purposes through the 12th grade. Within the City of Newark, at the time the inspections were assigned there lied 34 known E occupancies, buildings structures, and/or facilities.

During fiscal year 2023/2024, the Alameda County Fire Department completed the annual inspections of 31 Group E occupancies, buildings, structures and/or facilities. This is a compliance rate of 100% for this reporting period.

B. RESIDENTIAL GROUP R OCCUPANCIES:

Residential Group R occupancies, for the purposes of this resolution, are generally those occupancies containing sleeping units, and include hotels, motels, and apartments (three units or more). Within the City of Newark, at the time the inspections were assigned there lied 191 known R-1 and R-2 (and their sub-categories) occupancies of this nature.

During fiscal year 2023/2024, the Alameda County Fire Department completed the annual inspection of 191 Group R occupancies, buildings, structures and/or facilities. This is a compliance rate of 100% for this reporting period.

Item  E. 1.

DATE 02/27/2025
TO Honorable Mayor and City Council Members
FROM Howard Young, Public Works Director
SUBJECT    Consideration of an Appeal from the decision of the Public Works Director to issue a tree removal permit to the Waterford Association authorizing removal of a Eucalyptus Tree on private property located at 6200 Buena Vista Drive
SUMMARY AND RECOMMENDATION
City staff issued a permit to the Waterford Homeowners Association (the "Association") on January 15, 2025, to remove a tree on private property owned by the Association (hereinafter referred to as "Tree #199") in accordance with the Newark Municipal Code Chapter 8.16, the City's Preservation of Trees on Private Property Ordinance (the "Ordinance"), which is attached for ease of referance (Attachment #1). As further explained below, a member of the public is appealing the Public Works Director's decision to grant the tree removal permit to the City Council. Staff recommends that the City Council receive a report from the Public Works Director at the City Council meeting, consider the appeal from the member of the public, and then either affirm, modify, or reverse the decision of the Public Works Director.

BACKGROUND
Background Information Relating to Tree #199 – Eucalyptus Tree on private property (owned by Waterford Association) located at 6200 Buena Vista Drive:

The Waterford Homeowners Association, consisting of approximately 214 condominium units on five acres, submitted an application for a tree removal permit for six (6) trees on their property in November 2024. The trees were posted with tree removal notices, providing notice to the public that any objections to tree removal must be submitted in writing within ten (10) days of posting. City staff received an objection from Waterford resident, Ms. Molly Connolly, regarding Tree #199. That objection primarily consists of suggestions for the Association Board of Directors to communicate with residents related to the tree removals and does not relate to the Ordinance. It is attached to this staff report for reference (Attachment #2). As noted above, Ms. Connolly subsequently submitted an appeal to the issuance of the tree removal permit.

Tree #199 is located on land that is approximately one hundred and thirty feet (130') from the sidewalk on Parada Street. The land is private property owned by the Association near 39933 A/B Parada Street. Tree #199 is a eucalyptus tree, approximately seventy-five to eighty feet (75' - 80') tall with a trunk diameter of thirty-six inches (36"). The base of the trunk is twenty-five inches (25") away from a residential structure, and approximately eighteen inches (18") away from the roof soffit. A photograph showing the proximity to the home is attached (Attachment #3). The remaining five trees, of which two were dead, have been removed by the Waterford Association in December 2024 as no protests were received for them at the time.

Ms. Connolly submitted a formal appeal to the issuance of the tree removal permit on January 22, 2025 (Attachment #4) within the timeframe required for appeals. Ms.

Connolly provides no basis for her appeal.

Overview of Chapter 8.16 of the Newark Municipal Code – Newark’s Tree Preservation on Private Property Ordinance:

Newark Municipal Code 8.16.040 provides  that upon receiving an application for a tree removal permit, the Public Works Director must investigate whether the permit should be issued.  Following that investigation, the permit must be issued, unless the Public Works Director finds either:

1. Any such tree is in a reasonably healthy condition and is necessary in order to preserve the health, safety and welfare of a substantial number of persons in the community by serving a windbreak function; or

2. That the public interest will be otherwise unduly prejudiced by the destruction or removal of any such tree.

To deny a tree removal permit request, the Public Works Director must also find that:

The public interest in preservation of any such tree is not outweighed by the individual hardship on the applicant in the event the application is denied.

As explained in the Discussion/Analysis section below, the Public Works Director and the City Arborist, determined that these criteria are not met and therefore staff issued a permit to the property owner to remove Tree #199.

Appeals Process Under the Tree Preservation on Private Property Ordinance:

Newark Municipal Code Section 8.16.060 provides that any person "aggrieved by any action of the Public Works Director in denying or issuing such permit", may within ten (10) days of the determination, appeal in writing to the City Council. The City received an appeal from Ms. Connolly, related to the removal of Tree #199, and staff subsequently scheduled this appeal before the City Council.

DISCUSSION/ANALYSIS
The City’s Public Works Director and City Arborist met with the Association President, Mr. Ryan Serene, and inspected Tree #199.  The Association President provided staff with a copy of the Arborist report prepared by Arboreal Company dated October 23, 2024, and revised December 6, 2024.  The Arborist report, attached to this staff report (Attachment #5), recommends “immediate” removal of the tree for risk associated with targets and proximity to structures (Pages 11 and 12 of Attachment #5). Additionally, staff notes that Tree #199 appears to be growing under the foundation of a home within the community, see pictures in Attachment #3.

Based on this information and the standards established by Newark Municipal Code

8.16.040 for denying a permit, the Public Works Director and the City Arborist did not find that the tree is in a reasonably healthy condition, is not necessary in order to preserve the health, safety and welfare of a substantial number of persons in the community by serving a windbreak function; or that the public interest will be otherwise unduly prejudiced by the destruction or removal of any such tree; and that the public interest in preservation of any such tree is not outweighed by the individual hardship on the applicant in the event the application is denied.

Staff’s decision is based on the following factors:

The arborist report (page 11) indicated that Tree #199 has a decay pocket at the tree base, over-extended limbs, and large roots growing into a structure. Staff also performed a site visit. As a result, staff cannot state that the tree is in a reasonably healthy condition.

The arborist report (page 2) indicates that Tree #199 does not provide significant wind screening.  Staff also notes that the canopy is above the roof; therefore staff does not find it necessary in order to preserve the health, safety and welfare of a substantial number of persons in the community by serving a windbreak function.

Tree #199 is located on private property, approximately one hundred and thirty feet (130’) from a public sidewalk and street; therefore the public interest will not be otherwise unduly prejudiced by the destruction or removal of any such tree.

The arborist report indicated that Tree #199 has high root risk to the structure, decay pocket, and over-extended limbs; therefore, the public interest in preservation of the tree is not outweighed by the individual hardship on the applicant in the event the application is denied.

The City Arborist has reviewed the arborist report submitted by the Association and in his independent judgment concurs with the recommendation to remove the tree.

Therefore, staff issued a tree removal permit for Tree #199.

Staff recommends that the City Council review materials submitted from the appellant as well as comments made from the public at the hearing.  Attached to the staff report are documents submitted by Ms. Connolly related to the removal.  If further materials are submitted, then staff will provide that information to the City Council and on the City’s website prior to the City Council meeting.

Following the appeal and pursuant to the Newark Municipal Code, the Council should either affirm, reverse, or modify the Public Works Directors decision.

FISCAL IMPACT
There is no direct fiscal impact to the City as a result of considering this appeal.

REVIEW AND APPROVAL
Prepared by -  Howard Young, Public Works Director
Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - David J. Benoun, City Manager
Attachments
Attachment 1- Municipal Code 8.16
Attachment 2- Molly Connolly letter November 27, 20024
Attachment 3 - Pictures of tree 199
Attachment 4-Appeal from Molly Connolly dated January 22, 2025 Attachment 5 - Arborist Report by Arboreal Company for Waterford Association Chapter 8.16 PRESERVATION OF TREES ON PRIVATE PROPERTY
Newark, California, Code of Ordinances Created: 2025-02-11 08:08:02 [EST] (Supp. No. 23, Update 2)

Chapter 8.16 PRESERVATION OF TREES ON PRIVATE PROPERTY

8.16.010 Purpose.

In enacting the ordinance codified in this chapter, the city council finds that throughout the history of the development for human habitation of the area now comprising the city there has existed, and still exists, a serious problem of high winds of such magnitude that the public health, safety and general welfare have required the taking of steps to combat the injurious effects of such winds. Among such steps has been the establishment and growth of stands of trees and of individual trees by private individuals resident in the area. However, since the incorporation of the city and the accompanying rapid rate of conversion of agricultural lands to urban development, certain property owners have cut down great numbers of trees within the city limits, and such extensive cutting of trees has reached a point where further wanton destruction of trees would, because of the wind problem as aforesaid, give rise to substantial danger to the public health, safety and welfare from dust, erosion, and other hazardous elements attendant to unrestricted high winds. Therefore, the provisions of this chapter are intended to limit the unnecessary destruction of existing trees on private property so as to preserve existing windbreaks, and for conservation purposes, as well as to preserve the natural beauty which said trees lend to the city, all for the protection of the public health, safety, prosperity and general welfare, while at the same time recognizing individual rights to develop private property in a manner which will not be prejudicial to the public interest.
(Ord. 163 § 1, 1979)

8.16.020 Permit—Required.

No person shall cut down, destroy, remove or move any tree which shall include any live woody plant having one or more well defined perennial stems with a trunk diameter of six inches or greater, measured at four feet above ground level growing within the city limits on any parcels of land except developed residential parcels of land ten thousand square feet or less in area, unless a permit to do so has been obtained from the public works director.
(Ord. 63 § 2 (part), 1979)

8.16.030 Permit—Inspection of premises upon application.

Upon receiving any such application for permit, the public works director shall inspect the premises involved and the surrounding area, and shall ascertain whether or not the tree or trees serve a windbreak function upon which a substantial number of persons depend.
(Ord. 163 § 2 (part), 1979)

8.16.040 Permit—Issuance.

Following investigation, the permit shall be issued unless the public works director finds that any such tree is in a reasonably healthy condition and is necessary in order to preserve the health, safety and welfare of a substantial number of persons in the community by serving a windbreak function; or that the public interest will be otherwise unduly prejudiced by the destruction or removal of any such tree; and that the public interest in preservation of any such tree is not outweighed by the individual hardship on the applicant in the event the application is denied. In applying the standards set forth in this chapter, nothing shall be deemed to prevent the Created: 2025-02-11 08:08:02 [EST]
(Supp. No. 23, Update 2)

public works director from issuing a permit to destroy or remove part of the trees involved in an application, while denying a permit as to the remainder.
(Ord. 163 § 2 (part), 1979)

8.16.050 Permit—Fees.

Permit fees shall be established by city council resolution. (Ord. 163 § 2 (part), 1979)

8.16.060 Permit—Appeals—Withholding of action on application.

A. Any person aggrieved by any action of the public works director in denying or issuing any such permit, as prescribed in Section 8.16.040, may, within ten days of the action taken, appeal in writing to the city council, in which case such matter shall be scheduled for hearing by the council within twenty days after the filing thereof. Action under any permit, the issuance of which has been appealed, shall be suspended pending final decision of the city council on the appeal. The city council may set any such appeal for public hearing, giving such notice to the public or to the persons concerned as the council deems advisable. Following the hearing of any such appeal, the city council may affirm, reverse, or modify the action of the public works director and may take any action thereon which would have been authorized in the first instance. The action of the city council on any such appeal shall be final and conclusive.

B. In any case where the public works director is unable to make the necessary findings but does find that it would be otherwise desirable in the public interest that any tree or trees involved in an application be preserved, then in such event action on the permit application may be withheld for a period not to exceed thirty days, during which time the matter may be referred to the city council for action. (Ord. 163 § 3, 1979)

21063 Cabot Boulevard Suite 1
Hayward, CA 94566
855-272-6732
www.arborealcompany.com
2 The purpose of this report is to provide data and risk information in preparation for the decision to retain or remove the trees. The Homeowner’s Association has deferred maintenance on the trees and is developing a plan for maintaining all trees on the site regularly. It was reported that approximately 24 Peppermint trees were originally planted, and many were removed for various reasons. Currently, only four remain on site.

The subject trees are commonly referred to as Nichol’s Willowleafed Peppermint, Narrow-leafed Peppermint, and Peppermint Eucalyptus. Native to Eastern Australia, the species of eucalyptus are known for rapid growth, and cream-colored flowers, providing ample shade and visual interest. The mature trees are located throughout a multifamily condominium association in Newark, CA that was developed in 1985. The trees are likely plantings of that time frame, approximately 40 years or more. The trees are situated within the interior landscapes along walkways leading to the residences. The trees do not provide significant wind screening. As storm surges increase, these trees will experience increased wind loads and forces sontributing to risk factors. See the Map below for reference.

Photo 1 Eucalyptus Tree Locations
21063 Cabot Boulevard Suite 1
Hayward, CA 94566
855-272-6732
www.arborealcompany.com
3 Photo 2Tree #197 Diameter 44.5” Height 75’-85’

21063 Cabot Boulevard Suite 1
Hayward, CA 94566
855-272-6732
www.arborealcompany.com
5 Photo 3 Tree #197 Large extending branches and codominant leaders 21063 Cabot Boulevard Suite 1
Hayward, CA 94566
855-272-6732
www.arborealcompany.com
6 Photo 4 Tree #197 adjacent to the stairwell
Photo 5 Tree #197 limited root space due to the walkway 21063 Cabot Boulevard Suite 1
Hayward, CA 94566
855-272-6732
www.arborealcompany.com
7 In any situation where a tree poses a risk to potential targets, there are six options for further action.
• Monitor the condition of the tree over time
• Perform an Advanced (Level 3) tree risk assessment to obtain additional information • Mitigate risk by treating the targets
• Remove risk by removing the targets
• Mitigate risk by treating the tree
• Remove risk by removing the tree
Tree #197 is recommended as a future removal candidate due to its proximity to structures and Moderate risk rating. The tree has outgrown the limited soil volume it was provided, and roots will continue to adversely impact the walkways and structural integrity of the building. The tree is not at risk of imminent failure; however, no mitigation methods can reduce the risk rating below moderate. The Americans with Disabilities Act of 1990 was updated in 2010 to include a sidewalk width of no less than 36 inches. A sidewalk is considered an accessible path of travel and must have at least one accessible route from a passenger loading zone, public street, or accessible parking area. Walking surfaces should have a clear width of at least 36 inches. This tree will continue to violate this requirement. Target Removal year is 2025-2026 Tree #200 is located in front of a patio area and along a walkway. Areas of concern include overextended limbs, weakly attached limbs, and roots. The root collar was partially covered by a sidewalk and surrounded by landscape material. Heavy limbs were found hanging over the structure and walkways. The adjacent pond was drained and potentially a feeding source for the tree.
21063 Cabot Boulevard Suite 1
Hayward, CA 94566
855-272-6732
www.arborealcompany.com
8 Photo 6 Tree #200 Diameter 37” Height 65’-70’

21063 Cabot Boulevard Suite 1
Hayward, CA 94566
855-272-6732
www.arborealcompany.com
10 Photo 7 Tree #199 Diameter 36" Height 75'-80'
21063 Cabot Boulevard Suite 1
Hayward, CA 94566
855-272-6732
www.arborealcompany.com
11 Tree #199 is located between two structures and a walkway. Areas of concern include over-extended limbs and large roots growing into structures. A decay pocket was noted at the tree's base near the sidewalk. The tree has outgrown its given planter area.

Photo 8 Tree #199 Large root growing under the structure. Photo 9 Tree #199 Root decay evidence Tree #199 Risk Profile
Targets include Sidewalks and Structures with no offered protection When using the risk Categorization matrix Limbs overextending and impacting structures yielded a moderate rating while the same limb's likelihood of impacting the walkway is low.

The root risk rating when impacting the structures is high.

The decay causes elevated risk ratings.

21063 Cabot Boulevard Suite 1
Hayward, CA 94566
855-272-6732
www.arborealcompany.com
13 Photo 10 Tree #198 Diameter 42” Height 60’-65’
21063 Cabot Boulevard Suite 1
Hayward, CA 94566
855-272-6732
www.arborealcompany.com
14 Tree #198 is located in between two structures along a walkway. It is the only species that had evidence of pruning wounds to raise the canopy and reduce end weight. The tree has lifted the sidewalk and evidence of sidewalk repair was noted. No target protection is available to the walkway nor structure.

Photo 11 Tree #198 root collar lifting sidewalk
Tree 198 Risk Profile
Targets include walkways and structures with no protection available.

When using the risk categorization matrix and conducting risk assessment the relative risk

21063 Cabot Boulevard Suite 1
Hayward, CA 94566
855-272-6732
www.arborealcompany.com
16 Please feel free to contact me directly with any questions regarding the contents of this report.

Thank you,
Jonathan Maystrik
CEO & Founder
ISA Certified Arborist WE-7363A
Tree Risk Assessor Qualified
ASCA Member

Item  F. 1.

DATE 02/27/2025
TO Honorable Mayor and City Council Members
FROM Steven Turner, Community Development Director
SUBJECT    Adopt a resolution authorizing the City Manager to execute the amendment to the Affordable Housing Loan Agreement for the Thornton Avenue Apartments project, including the Purchase and Sale Agreement, deed of trust and all related documents necessary to complete the purchase and conveyance of property located at 6347-6375 Thornton Avenue, a Short-Term Lease Agreement with Thornton, L.P. and a Lease Option Agreement with Thornton, L.P. for said property, and adopt a resolution to declare the property exempt surplus land. Exempt from the CEQA per CEQA Guidelines Sections 15061(b)(3) and 15312.

SUMMARY AND RECOMMENDATION
In March 2023, the City Council authorized a $12 million loan from the Affordable Housing Impact Fee Fund to Satellite Affordable Housing Associates (SAHA) for an affordable multifamily rental housing project (Project) at 6347-6375 Thornton Avenue (Project Site). The City and Thornton L.P., a subsidiary of SAHA, entered into an Affordable Housing Loan Agreement (Agreement) for the loan to acquire the Project Site and develop the Project in April 2023. Pursuant to the Agreement, SAHA is to commence construction by 2026 and complete the project by 2028.

Since entering into the Agreement, Thornton L.P. has completed predevelopment activities including preparing architectural plans and submitting a formal application for entitlements, which is expected to be presented to the Planning Commission in Spring 2025. Once planning entitlements are approved, the Project will be positioned to apply for additional funding sources, including the State of California Department of Housing and Community Development’s (HCD) Multifamily Housing Program (MHP). Thornton, L.P. has also acquired title to the Project Site with funds provided by the City pursuant to the Agreement.

The financial environment for developing new affordable housing has grown increasingly challenging since the Agreement was executed. At the same time, state and federal subsidy programs have been further constrained and continuously oversubscribed, construction costs continue to rise, and interest rates remain high.

Additionally, the Project Site will lose its Difficult to Develop Area (DDA) status, which is further explained in this report, in December 2026, after which point financing the Project will be even more difficult.

To support the Project’s competitiveness for MHP and other state funding programs, staff recommends that the City acquire the Project Site and enter into a Lease Option Agreement (LOA) with SAHA before the MHP application deadline in April 2025. These actions align with City and State policies and will increase the Project’s likelihood of success in obtaining financing and beginning construction by the end of 2026.

The chief consequence of not acquiring the Project Site is that the Project will not be competitive with other projects statewide that are competing for the available MHP funding. This will result in a minimum one-year delay to construction commencement, assuming alternative funds are available, and Thornton L.P. would miss key performance milestones required by the Agreement.

Staff recommends that the City Council approve an amendment to the Agreement to authorize the City Manager to acquire the Project Site and lease it back to Thornton L.P. to improve the Project’s likelihood of securing financing and staying on schedule.

As part of this recommendation, staff requests that the City Council:

Adopt a Resolution (Attachment A) to Amend the Affordable Housing Loan Agreement, inclusive of:

Authorizing the City Manager to enter into a Purchase and Sale Agreement with Thornton L.P. for the Project Site
Authorizing the City Manager to enter into a Lease Option Agreement with Thornton L.P. for the Project Site
Authorizing the City Manager to execute an Amended and Restated Promissory Note for the City Loan
Authorizing the City Manager to enter into a Short-Term Lease Agreement with Thornton L.P. for the Project Site for the period between the City’s acquisition of the Site and the construction loan closing Authorizing the City Manager to execute a Reconveyance of Deed of Trust for the City Loan, with the City Loan Deed of Trust to be recorded again at the construction loan closing
Authorizing the City Manager to terminate the Regulatory Agreement for the Project Site, with the Regulatory Agreement to be recorded again at the construction loan closing

1. Adopt a Resolution (Attachment B) Declaring the Project Site Exempt Surplus Land and declaring the City’s intention to lease the Project Site to Thornton L.P. in compliance with the California Surplus Land Act

2. BACKGROUND
Newark’s Sixth-Cycle Housing Element
Newark’s Sixth-Cycle Housing Element
Since 1969, California law requires all cities and counties to plan to meet the housing needs of community members of all income levels. These plans, also known as housing elements, are updated and incorporated into local governments’ general plans on eight-year cycles.

The City Council adopted the City’s sixth cycle Housing Element on October 26, 2023 for the 2023-2031 planning period. The California Department of Housing and Community Development (HCD) found the adopted Housing Element in compliance with state law on December 21, 2023.

Newark’s Housing Element commits to continuing and implementing 32 policies and 45 programs, among them:

Program H2.7: Providing financing for the development of 343 new homes for low-income households,
Program H4.1: Developing anti-displacement and local preference policies for individuals who live or work in Newark, and
Program H5.3: Utilizing public land for the development of affordable housing.

Affordable Housing Workplan
The City Council adopted Resolution No. 11,201 in May 2021, adopting the City’s Affordable Housing Workplan (Workplan) and establishing parameters for the use of the City’s Affordable Housing Impact Fee Fund (Fund). Among other uses, the Workplan estimated providing up to 40 percent of funds for the development of new affordable housing through a competitive Notice of Funding Availability (NOFA) and 40 percent of funds to acquisition of land for affordable housing.

Since 2022, the City has committed over $19 million in NOFA funding to assist in the development of 263 low- and very-low income housing units, including the Project. The City has not yet allocated funds for acquisition or other uses. The Fund has approximately $27 million in funds remaining.

Project Site and Proposed Project
The Project is located on three (3) existing parcels located at 6347, 6361, and 6375 Thornton Avenue, totaling 23,650 square feet in area. The parcels currently consist of single-family homes built in 1951 and 1952. The individual properties have been vacant since 2023, before which time they were occupied by commercial uses.

The three (3) parcels are zoned for Residential High Density (RH) and have a General Plan land use designation of High-Density Residential. The RH zoning district is intended for residential densities from 25 to 60 units per net acre and provides for apartment and condominium complexes that are generally three stories or more. This RH zoning district implements the high density residential general plan land use designation.

The Project will include 59 affordable units (including one manager’s unit) within a five-story apartment building. The unit mix will include 28 one-bedroom, 15 two-bedroom, and 16 three-bedroom units (see Attachment C). Thornton L.P. will be the developer and owner of the Project and will also provide property management and resident services coordination.

The Project requires the following entitlements: Design Review, Tentative Parcel Map Review, and a Minor Use Permit to allow a building height over 35 feet. SAHA also requested a density bonus (consistent with state law) to allow the proposed density as well as various concessions and waivers to certain zoning requirements.  Additionally, because Thornton L.P. is proposing affordable units instead of paying the Housing Impact Fee, an Alternative Means of Compliance approval is required. Chapter 17.18 of the Newark Municipal Code (NMC) requires developers to pay a housing impact fee for development projects. However, if a developer requests to provide on-site affordable housing units instead, the alternative means of compliance requires review and a recommendation to the City Council by the Planning Commission and a decision by the City Council.

Thornton L.P. has been responsive to input from City staff and the community, and City staff anticipates presenting the Project to the Planning Commission in Spring 2025 for consideration of final entitlement approval, and subsequently to the City Council for the alternative means of compliance approval.

Project Financing
Thornton L.P. intends to finance the Project with multiple competitive public funding programs, including the City’s loan. Thornton L.P. has successfully secured additional financial commitments since entering the Agreement, but the largest sources from the Project’s Preliminary Financing Plan remain outstanding (see Attachment D).

The financial environment for developing new affordable housing has grown increasingly challenging since the Agreement was executed. At the same time, state and federal subsidy programs have been further constrained and continuously oversubscribed.

Additionally, the Project Site will lose its Difficult to Develop Area (DDA) status in December 2026. DDA is a federal designation that entitles projects to additional tax credit equity to account for high construction, land, and utility costs relative to area median gross income. If the Project does not obtain financing before losing its DDA status, it will have a significantly larger funding gap. If the Project does not receive an MHP award in 2025, there is no identified path to obtaining financing before the DDA expiration deadline.

These challenging financial conditions may result in delays to construction commencement and completion.  The Agreement requires Thornton L.P. to commence construction no later than March 31, 2026 and complete construction no later than May 31, 2028.

The City can support the Project and improve its competitiveness for MHP by acquiring the Project Site and leasing it back to Thornton L.P. for a long term and nominal cost in compliance with the Surplus Land Act (see Attachment E, Exhibit A). Attachment E includes a table containing the scoring criteria which reveal the point factors that make a project competitive for funding. Under Governor Newsom, state funding programs have prioritized affordable housing projects on public land in order to preserve public land for public benefit with longer periods of affordability than required of private property owners, and to encourage local agencies to think creatively about contributing to development costs.

Acquiring and leasing the Project Site back to Thornton L.P. will not guarantee the Project’s success in obtaining MHP and subsequent funding. It would, however, make the project more competitive for MHP and other programs than it is currently, and secure the investment the City has already made in the Project Site.

The Project is also seeking seven project-based vouchers (PBV) from the Housing Authority of the County of Alameda, which has paused PBV applications. Uncertainty regarding PBV availability could threaten the Project schedule.

DISCUSSION/ANALYSIS
Affordable Housing Loan Agreement
The City and SAHA entered into the Agreement on April 3, 2023 with the following terms:

Fundamental Terms
$12,000,000 loan for predevelopment and construction costs, including site acquisition
3% interest rate
57-year term
Repayment on a prorated share of residual receipts
100% of the 57 units (excluding one (1) manager’s unit) to be affordable to lowand very low-income households for the duration of the loan term A leasing preference to individuals currently living or working in Newark, to the extent permitted by law and funding regulations
Supplemental Terms
Regulatory Agreement and Restrictive Covenants: Recorded against the property to document the owner’s affordability covenants and other commitments. This agreement governs affordability restrictions, how rent is calculated, rent increases, over-income tenants, income certification and the operation and management of the project.

Deed of Trust with Assignment of Rents, Security Agreement, and Fixture Filing:

The Deed of Trust protects the City’s loan. It is recorded against the property and memorializes the borrower’s pledge of property as security for the loan.

Promissory Note: The Promissory Note documents the borrower’s promise to repay the loan from the net income or “residual receipts” generated by the Project Proposed Amendment to Affordable Housing Loan Agreement The proposed resolution (see Attachment A) amends the Agreement (Amendment) and authorizes the City Manager to acquire the Project Site and lease it back to Thornton L.P. for development and operation of the Project.

The Amendment (see Attachment G) revises the following terms of the Agreement:

Unit Count: During the entitlement process, Thornton L.P. has been able to incorporate an additional two (2) low-income housing units into the Project. This change to the Project aligns with the second goal of the City’s Housing Element to Facilitate the Development of More Homes for More People and further contributes to satisfying the City’s Regional Housing Needs Allocation for low- and very low-income housing units. The unit count would change from 57 to 59 total units.

Loan Value: Should City Council authorize the City Manager to enter into a Purchase and Sale Agreement for the Project Site, the principal balance of the loan will be reduced by the price that Thornton L.P. originally paid to acquire the properties. This would change the principal balance from $12 million to $8,523,743.16.

Revised Financing Plan: This exhibit to the Amendment will reflect the revised loan value and an updated plan and schedule for Thornton L.P. to secure outstanding financing for the Project.

The Amendment also includes the following supplemental agreements to implement the revised loan terms, acquisition, and lease of the Project Site.

Form of Purchase and Sale Agreement: Appended to the Amendment, a substantially similar version of which will be executed by the City and Thornton L.P. The PSA identifies the terms and conditions under which Thornton L.P. will sell and City will purchase the Project Site. A diligence period will occur after signing the PSA. Thornton L.P. has already provided City with environmental assessments and preliminary title reports relevant to the property acquisition. The City has completed its own Phase 1 environmental site assessment for the Project Site which did not identify any recognized environmental conditions, hazards, or impediments to safe development and occupancy of the site. In addition, the Purchase and Sale Agreement will include a due diligence period providing sufficient time to complete its own due diligence and allow the City to obtain a new title report and title insurance as well as complete a final walkthrough prior to closing on the purchase.

Fundamental Terms and Conditions:

Purchase price: $3,431,170.41
All closing costs associated with the purchase will be paid out of the City’s loan
City and Thornton L.P. will enter into a Lease Option Agreement for the development and a long-term Ground Lease for the Property Form of Lease Option Agreement: Appended to the Amendment, a substantially similar version of which will be executed and deposited into escrow by both parties following execution of the PSA. Through the Lease Option Agreement, the City provides Thornton L.P. with the right to lease the Project Site once all Project financing and environmental approvals are obtained, and subject to other terms and conditions.

Fundamental Terms and Conditions:

Lease Option Agreement to end June 30, 2027, with two one- (1) year extensions at City's discretion
Ground Lease rent of one (1) dollar per year
Ground Lease term of 99 years
Form of Memorandum of Option Agreement: Appended to the Amendment, a substantially similar version of which will be executed and deposited into escrow by both parties following execution of the Lease Option Agreement. Once executed, the Memorandum will be recorded in the Official Records of the County of Alameda to memorialize the terms of the Lease Option Agreement.

Form of Amended and Restated Promissory Note: Appended to the Amendment, a substantially similar version of which will be executed and deposited into escrow by both parties following execution of the PSA. The Amended and Restated Promissory Note reduces the principal balance of the Predevelopment Loan Component of the City's loan to account for the City's acquisition of the Project Site, and secures the City's loan against an assignment of architect and engineering agreements for the Project.

Form of Short-Term Lease Agreement: Appended to the Amendment, a substantially similar version of which will be executed by the City and Thornton L.P. following execution of the PSA. The Short-Term Lease Agreement shall have a term for the time between the acquisition of the Site and the commencement of the long-term Ground Lease. Because the term of this lease is less than 15 years, it is not subject to the Surplus Land Act. The Short-Term Lease Agreement protects the City from responsibility for operating, maintaining, and securing the Project Site until such time as a long-term Ground Lease is executed with Thornton L.P. for development and operation of the Project. See Attachment H.

Reconveyance of Deed of Trust: Appended to the Amendment, a substantially similar version of which will be executed by the City and SAHA following execution of the PSA. This Reconveyance of Deed of Trust removes the City’s Deed of Trust from title once the City acquires the Project Site. A new Deed of Trust securing the City’s loan against Thornton L.P. leasehold interest in the Project Site will be recorded when the long-term ground lease is executed.

Termination of Regulatory Agreement: Appended to the Amendment, a substantially similar version of which will be executed by the City and Thornton L.P. following execution of the PSA. The City will release the Regulatory Agreement recorded against the Project Site once the City acquires the Project Site now that it is coming under City ownership. A new regulatory agreement will be recorded against the Project Site once the long-term Ground Lease is executed and will serve to ensure the property is operated in accordance with the Agreement.

Surplus Land Act
A second resolution has been drafted (see Attachment B) declaring the City’s intention to lease the Project Site to Thornton L.P. as exempt from the California Surplus Land Act (SLA, Government Code Section 54220 et seq.). The draft resolution has been reviewed by HCD and found compliant with the Surplus Land Act.

A ground lease longer than 15 years is considered a “disposition” of property under the SLA. The SLA requires local agencies to prioritize the use of surplus land for affordable housing. Because Thornton L.P. is leasing the land for the purpose of an affordable housing development, the transaction is exempt from most requirements of the SLA.

As such, the Council must make a determination that its surplus lands are exempt from the SLA and the determination must be supported by written findings. The written findings, which are ordinarily done by adopting a resolution, must be provided to the California Department of Housing and Community Development (HCD).

HCD offers a free service to review draft SLA resolutions prior to being presented to local governing bodies. City staff sent the draft resolution to HCD on February 4, 2025.

On February 7, 2025, HCD provided minor amendments to the draft resolution which have been accepted by the City and incorporated herein.

Next Steps
The City Council is now reviewing the proposed Amendment and SLA declaration. If approved by the City Council, the two adopted resolutions would authorize the City Manager to execute the Amendment, including entering into a Purchase and Sale Agreement, Lease Option Agreement, Short-Term Lease Agreement and related documents to complete the purchase and conveyance of the Project Site, and declare the Project Site exempt surplus land in accordance with the SLA. City staff would then coordinate with Thornton L.P. to complete the acquisition, enter into the Lease Option Agreement, and submit the approved SLA resolution to HCD.

After the Project Site is acquired and the Lease Option Agreement is executed, Thornton L.P. will apply for HCD’s MHP in April. Program awards are expected to be announced in August 2025.

The Project is expected to appear before Planning Commission in Spring 2025 for entitlement approval and subsequently before the City Council for the alternative means of compliance approval.

FISCAL IMPACT
The Amendment and acquisition of the Project Site would not result in additional expenses to the Affordable Housing Fee Fund (623). All recommended actions are proposed to be funded by the City’s existing loan to Thornton L.P. for the Project.

There is no impact on the City’s General Fund or other program funds.

Through the Amendment and authorization for the City Manager to negotiate and enter into a Purchase and Sale Agreement, the City would acquire the Project Site for $3,431,170.41. This is the same price that SAHA paid to acquire the Project Site in 2023 using funds from the City’s loan, less $1,793.43 in property tax payments. City staff has reviewed appraisals for each property constituting the Project Site and has determined that the acquisition price to be fair and reasonable.

The amended principal balance of the loan will be $8,568,829 after the City’s acquisition of the Project Site.

In acquiring the Project Site, the recommended action reduces the City’s earlier risk of lending funds to Thornton, L.P. for Project Site acquisition and other predevelopment costs prior to the approval of project entitlements. The City’s investment will be secured by the value of the land. Remaining risk to City funds will be mitigated by restricting disbursement of the majority of the remaining loan value to construction costs after the long-term Ground Lease is executed. At that point, a new deed of trust will be recorded against Thornton, L.P. leasehold interest in the Project Site.

While the recommended actions do not guarantee the Project’s success in all forthcoming funding applications, not implementing this recommendation would almost certainly result in significant Project delay.

Risks to accepting the recommended action include:

Accepting legal and financial liability for the Project Site. Staff have partially addressed this risk by performing due diligence on the site including, but not limited to, contracting with ACC Environmental Consultants, Inc. to procure a Phase 1 Environmental Site Assessment for the Project Site, reviewing preliminary title reports for the Project Site, and transferring responsibility for managing the Project Site to Thornton L.P. through the Short-Term Lease Agreement, and
Continued financial competitiveness for affordable housing funds. There is a chance that the City's acquisition of the Project Site will not result in an MHP award this funding round due to the extremely high demand for these funds.

Additionally, certain factors remain outside of the City's control, including state and federal administration of affordable housing finance programs and the overall demand for these programs. This risk is not uncommon to affordable housing development.

The City will be able to mitigate risks by leasing the Project Site back to Thornton, L.P. with lease terms requiring a contractual obligation to defend and indemnify the City and also name City as an additional insured.

See Attachment I for an expanded summary of risks.

ENVIRONMENTAL/PLANNING COMMISSION REVIEW
The actions being considered are exempt from environmental review under CEQA pursuant to CEQA Guidelines 15061(b)(3), as it can be seen with certainty that the approval of financial assistance will have no significant effect on the environment, and Section 15312, which applies to sale of surplus government property (a long-term ground lease is equivalent to a sale for purposes of the exemption). The City will complete appropriate environmental review prior to approval of the Project, which was submitted in December 2023 and is currently being processed. It is anticipated that the project will be eligible for a Class 32 Infill Housing exemption, but that determination cannot be made until an environmental checklist is completed.

REVIEW AND APPROVAL
Prepared by - Michael Coulom, Housing Policy and Programs Manager Prepared by - Carmelisa Lopez, Senior Planner
Reviewed by - Steven Turner, Community Development Director Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - David J. Benoun, City Manager
Attachments
Attachment A - Draft Loan Amendment Resolution
Attachment B - Draft Surplus Land Resolution
Attachment C - Project Plans
Attachment D - Preliminary Financing Plan
Attachment E - Multifamily Housing Program Detail
Attachment F - Loan Agreement
Attachment G - First Amendment to Loan Agreement
Attachment H - Short Term Lease Agreement
Attachment I - Summary of Risks and Mitigations
Presentation
RESOLUTION NO. ____

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK APPROVING A FIRST AMENDMENT TO

AFFORABLE HOUSING LOAN AGREEMENT AND

RELATED AGREEMENTS
WHEREAS, the City of Newark (“City”) and Thornton, L.P. (“Developer”) have entered into an Affordable Housing Loan Agreement with respect to certain property acquired and owned by Developer located at 6347, 6361 and 6375 Thornton Avenue, Newark, California (the “Property”), dated as of April 1, 2023 (the “AHLA”); and WHEREAS, pursuant to the AHLA, City has made a loan to Developer in the amount of Twelve Million Dollars (the “City Loan”) to be used for expenses related to the acquisition of the Property and the construction of an affordable rental housing development thereon (the “Development”); and
WHEREAS, the Developer has acquired fee title to the Property with proceeds of the City Loan; and
WHEREAS, in order to assist the Developer in securing the funds needed for the construction and operation of the Development, the City now desires to acquire the Property from the Developer and to enter into a long-term ground lease of the Property to the Developer (the “Ground Lease”) for the construction and operation of the Development thereon; and WHEREAS, the City Council now desires for the City and Developer to enter into a First Amendment to Affordable Housing Loan Agreement (the “AHLA Amendment “) in order to make certain revisions to the AHLA and other associated documents that have been or will be entered in connection therewith; and
WHEREAS, pursuant to the AHLA Amendment the City will enter into additional agreements including a Purchase and Sale Agreement, Lease Option Agreement, Ground Lease, Amended and Restated Promissory Note, Termination of Regulatory Agreement, Short Term Lease Agreement, and Reconveyance of Deed of Trust; and WHEREAS, the approval of the AHLA Amendment will not result in any significant changes to the Development to be constructed pursuant to the AHLA, and is exempt from the California Environmental Quality Act (“CEQA”) because it consists of the purchase and lease of real property determined by the City to be exempt surplus property.

NOW THEREFORE the City Council of the City of Newark HEREBY RESOLVES as follows:

1. The City Council finds that the foregoing Recitals are true and correct and are incorporated into this Resolution.

2. The  City  Council  hereby  approves  the  AHLA  Amendment,  Purchase  and  Sale Agreement, Lease Option Agreement, Amended and Restated Promissory Note, Termination of Regulatory  Agreement,  Short  Term  Lease  Agreement,  and  Reconveyance  of  Deed  of  Trust, substantially in the form presented to the City Council, with such changes as may be approved by the City Manager and the City Attorney.

3. The City Council authorizes the City Manager (or his designee), on behalf of the City, to execute the AHLA Amendment, Purchase and Sale Agreement, Lease Option Agreement, Amended and Restated Promissory Note, Termination of Regulatory Agreement, Ground Lease, Short Term Lease Agreement, and Reconveyance of Deed of Trust, and to take such other actions as  are  necessary  to  carry  out  the  City’s  obligations  thereunder,  including  the  preparation  and execution of the Ground Lease, escrow instructions and closing documents.

4. Whenever  any  approval,  notice,  direction,  finding,  consent,  request,  waiver,  or other action  by the City is  required  or  permitted  under any  of the  documents approved  by this Resolution, such action may be given, made, or taken by the City Manager, or by any person who shall have been designated in writing by the City Manager, without further approval by the City Council.  Any such action shall be in writing.

5. The City Council finds that the actions approved hereunder are exempt from CEQA pursuant to Sections 15312 and 15061(b)(3) of the CEQA Guidelines, provided that the City will complete appropriate environmental review of the Development prior to approval of land use entitlements for the Development.  City staff is authorized and directed to file a Notice of Exemption from CEQA with the California Office of Planning and Research and the County Clerk of the County of Alameda in the manner specified in Subdivisions (b) and (c) of Section 21152 of the Public Resources Code.

Introduced by Councilmember ______________ and passed and adopted this __ day of February, 2025, by the following vote:

Members of the Council:

AYES:

NOES:

ABSENT:

ATTEST:
______________________________________
Sheila Harrington, City Clerk

ATTACHMENT H
DRAFT
RESOLUTION NO. ____

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWARK DECLARING PROPERTY LOCATED AT 6347,
6361 AND 6375 THORNTON AVENUE TO BE EXEMPT

SURPLUS PROPERTY FOR AFFORDABLE HOUSING

DEVELOPMENT PURSUANT TO THE SURPLUS LAND
ACT
WHEREAS, the City of Newark (“City”) and Thornton, L.P. (“Developer”) have entered into an Affordable Housing Loan Agreement with respect to certain property acquired and owned by Developer located at 6347, 6361 and 6375 Thornton Avenue, Newark, California (the “Property”), dated as of April 1, 2023, as amended by the First Amendment to Affordable Housing Loan Agreement dated February __, 2025 (as amended, the “AHLA”); and WHEREAS, the AHLA provides for the Developer’s sale of the Property to the City, and City’s long-term ground lease of the Property to the Developer for the development and operation of an affordable rental housing development thereon pursuant to a “Ground Lease” between the City and the Developer, which Ground Lease will be executed and take effect when the construction of the affordable rental housing project is ready to commence; and WHEREAS, the Surplus Land Act, Government Code Section 54220, et seq., provides that local public agencies must determine whether land owned by the public agency is “surplus land” or “exempt surplus land” prior to the sale or lease of such land; and WHEREAS, Section 54221(f)(1)(A) of the Surplus Land Act provides that surplus land that is transferred by a city pursuant to Government Code Section 37364 is “exempt surplus land”; and
WHEREAS, Government Code Section 37364 authorizes cities to convey real property when not less than 80% of the property will be developed for housing, and not less than 40% of the housing units will be developed for low and very low income tenants at an affordable rent, and restricted for a period of at least 30 years; and
WHEREAS, the AHLA requires that pursuant to the Ground Lease of the Property to the Developer, all of the Property will be developed for housing, and all of the housing units thereon (except for one manager’s unit) will be developed for low and very low income tenants at an affordable rent, and restricted for a period of more than 30 years, pursuant to a Regulatory Agreement to be recorded in the official records of Alameda County; and WHEREAS, Section 54221(f)(1)(F) of the Surplus Land Act provides that “exempt surplus land” includes surplus land that is to be developed for a housing development that restricts 100 percent of the residential units to persons and families of low or moderate income, with at least 75 percent of the residential units restricted to lower income households, with an

ATTACHMENT H
affordable rent for 55 years for rental housing, and the maximum affordable rent level is at least 20 percent below the median market rents for the neighborhood in which the site is located, with such requirements contained in a covenant or restriction recorded against the surplus land that runs with the land; and
WHEREAS, the AHLA requires that upon the Ground Lease of the Property to the Developer, a Regulatory Agreement will be recorded against the Property which requires that for a period of more than 55 years the rental of 100 percent of the residential units (except for one manager’s unit) will be restricted to persons and families of low or moderate income, with at least 75 percent of the residential units restricted to lower income households, with an affordable rent, and the maximum affordable rent level will be at least 20 percent below the median market rents for the neighborhood in which the Property is located; and WHEREAS, Section 54221(f)(2) of the Surplus Land Act provides that notwithstanding the foregoing exemptions, a written notice of the availability of surplus land for open-space purposes shall be sent to specified entities if the land is within a coastal zone, adjacent to a historical unit of the State Parks System, listed on or determined by the State Office of Historic Preservation to be eligible for the National Register of Historic Places, or within the Lake Tahoe region; and
WHEREAS, the Property does not meet any of the criteria of Section 54221(f)(2) of the Surplus Land Act, and therefore no written notice of the availability of surplus land for openspace purposes is required to be sent with respect to the Property; and WHEREAS, the Surplus Land Act Guidelines provide that a local agency that determines that property is exempt from the Surplus Land Act shall support such a determination with written findings and shall provide a copy of the written determination to the California Department of Housing and Community Development at least 30 days prior to disposition; and WHEREAS, the City Council desires to declare the Property to be exempt surplus land and to make certain findings with respect to the City’s Ground Lease of the Property to the Developer pursuant to the AHLA;
NOW THEREFORE the City Council of the City of Newark HEREBY RESOLVES as follows:

1. The Property is designated as exempt surplus land on the basis that the City intends to ground lease the Property in accordance with Government Code Sections 54221(f)(1)(A) and 54221(f)(1)(F).

2. The City Council hereby directs the City Manager or his designee to transmit a copy of this resolution to the California Department of Housing and Community Development, and to transmit such further documents as are necessary for the Department’s review of the compliance of this transaction with the requirements of the Surplus Land Act.

3. The commencement of the Ground Lease of the Property to the Developer pursuant to the AHLA shall occur no earlier than the first to occur of (a) the approval of the

ATTACHMENT H
findings hereof by the California Department of Housing and Community Development, or (b) thirty days after the submission of this resolution and all accompanying documents to the California Department of Housing and Community Development.

Introduced by Councilmember ______________ and passed and adopted this __ day of February, 2025, by the following vote:

Members of the Council:

AYES:

NOES:

ABSENT:

ATTEST:
______________________________________
Sheila Harrington, City Clerk
Project:

Client:

JOB #:

SCALE:

DATE:

THORNTON AVE
6375 THORNTON AVE
.
1835 ALCATRAZ AVE.

BERKELEY, CA 94703
3D VIEWS

SANDIS ENGINEER
636 9th St., Oakland, CA 94607 | SURVEY | PLAN

JETT LANDSCAPE
ARCHITECTURE + DESIGN 2 Theatre Square Suite 218,
Orinda, CA 94563
CONSULTANT NAME 3
CONSULTANT 3 FULL ADDRESS
CONSULTANT NAME 4
CONSULTANT 4 FULL ADDRESS
CONSULTANT NAME 5
CONSULTANT 5 FULL ADDRESS
CONSULTANT NAME 6
CONSULTANT 6 FULL ADDRESS
2314
A0.1
07/15/24

CIVIL ENGINEER

LANDSCAPE ARCHITECT
CONSULTANT DISCIPLINE 3
CONSULTANT DISCIPLINE 4
CONSULTANT DISCIPLINE 5
CONSULTANT DISCIPLINE 6

STREET VIEW LOOKING FROM SOUTH SIDE

STREET VIEW LOOKING FROM NORTH SIDE
2ND FLOOR COURTYARD

COURTYARD AERIAL VIEW

ID DATE NAME
12/31/24
H

SIDEWALK
THORNTON AVE.

PL
40'-0"
MEDIAN
STRIP
17 2
3 5
6 7
9 6
11 11
11 12
12 12
10 4
5 PARKING LANE
2'-0"
9'-6" 8'-0"
5'-0"
6'-2 3/8"
10'-0"
10'-0"
MIN. REAR

SETBACK
5'-0"
MIN. SIDE

SETBACK
2ND FLOOR PROJECTION
& PROVIDED SETBACK

SIDEWALK

DEDICATION

PARKING
3'-0" 13
14 15
20'-0"
15 20'-0"
16 2'-3"
4'-6"
4'-6"
10'-0"
MIN. SIDE SETBACK
2ND FLOOR
17 17
1 17
5'-0"

REQUIRED SETBACK
18 SITE PLAN SHEET NOTES
1 RESIDENTIAL BUILDING MAIN ENTRY
3 EXISTING STREET TREES
4 EXTERIOR SWITCHGEARS AND ELEC, PANELS
5 BACKFLOW PREVENTER PER ACWD & NEWARK FIRE DEPARTMENT REQUIREMENTS 6 PROPERTY LINE FENCE, SEE 4/A4.4
7 EXISTING FIRE HYDRANT, SCD
8 NEW FIRE STANDPIPE
9 FIRE DEPARTMENT CONNECTION
10 BIKE RACKS, SLD
2 GARAGE VEHICULAR ENTRY & GATE. AUDIBLE & VISUAL LED STROBE WARNING SIGNAL LED

MOOUNTED OVER GATE
11 LANDSCAPE AREA, SLD
12 STORMWATER PLANTERS, SCD
13 NEW PROPERTY LINE, SCD
14 EXISTING PROPERTY LINE, SCD
15 FIRE DEPARTMENT ROADWAY CAPABLE OF SUPPORTING 75,000 LBS, SEE SHEET A0.9 16 ENTRY CANOPY PROJECTION & DIMENSION INTO FRONT SETBACK, SEE PLANS AND

ELEVATIONS
17 KNOX BOX FOR POLICE/FIRE DEPT ACCESS
18 VISIBILITY TRIANGLE CONTROLLED AREA
Project:

Client:

JOB #:

SCALE:

DATE:

As indicated

THORNTON AVE
6375 THORNTON AVE
1835 ALCATRAZ AVE.

BERKELEY, CA 94703

SITE PLAN

SANDIS ENGINEER
| SURVEY | PLAN
636 9th St., Oakland, CA 94607

JETT LANDSCAPE
ARCHITECTURE + DESIGN
2 Theatre Square Suite 218,
Orinda, CA 94563
CONSULTANT NAME 3
CONSULTANT 3 FULL ADDRESS
CONSULTANT NAME 4
CONSULTANT 4 FULL ADDRESS
CONSULTANT NAME 5
CONSULTANT 5 FULL ADDRESS
CONSULTANT NAME 6
CONSULTANT 6 FULL ADDRESS
2314
A1.0
12/20/24

CIVIL ENGINEER

LANDSCAPE ARCHITECT
CONSULTANT DISCIPLINE 3
CONSULTANT DISCIPLINE 4
CONSULTANT DISCIPLINE 5
CONSULTANT DISCIPLINE 6
A1.0 SCALE: 3/32" = 1'-0"
1 SITE PLAN

ID DATE NAME
12/31/24
1ST FLOOR
0"
2ND FLOOR
16' - 0"
3RD FLOOR
25' - 6"
4TH FLOOR
35' - 0"
5TH FLOOR
44' - 6"
ROOF
54' - 0"

TALLEST PARAPET
60' - 0"
PL PL
2 A3.5
4 1A 3C 8.2 2B 12B 6D 5C 1A 7B 4 12D
10D 1A 10D 9D 1A
6'-0"9'-6"9'-6"9'-6"9'-6"16'-0"
5C 11C 16
STAIR 2 ROOF
62' - 0"
6'-0"6'-0"
17 18
7'-2"
9D 9D
12D 6D 12D
14 3'-6"
19 19 19 19 7'-2"21 20
1ST FLOOR
0"
2ND FLOOR
16' - 0"
3RD FLOOR
25' - 6"
4TH FLOOR
35' - 0"
5TH FLOOR
44' - 6"
ROOF
54' - 0"

TALLEST PARAPET
60' - 0"
FENCE
BEHIND
PL PL
1 A3.5
12D 4 2B 8.1 3C 1A
14 4 15 14 5C 4
6'-0"9'-6"9'-6"9'-6"9'-6"16'-0"
STAIR 2 ROOF
62' - 0"
6'-0"
17 6'-0"
12B 3C
13 1A
1A
CEMENT PLASTER1
FIBER CEMENT BOARD AND BATTEN2
FIBER CEMENT ACCENT PANEL3
WOOD-LIKE PANEL4
STANDING SEAM METAL5

REFER TO IMAGES & NUMBERS ON MATERIAL BOARD
SHEET A3.4 FOR PRODUCT INFO & ADDITIONAL

IMAGES COLORS

A CREAM WHITE

B LIGHT GRAY
C GRAY

D DARK GRAY
JULIETTE BALCONY, SEE 2/A4.46
METAL RAILING7

FLUSH VINYL WINDOW, TYPICAL AT SIDE AND REAR
ELEVATIONS, DARK GRAY 8.1
ALUMINUM STOREFRONT SYSTEM, ANODIZED9
METAL AWNING10
OVERHEAD GARAGE DOOR11
PAINTED PARAPET CAP12
CONCRETE PLANTER13
6' TALL WOOD CEDAR FENCE, SEE 4/A4.414
GARAGE VENTING LOUVER15
EXPOSED CONCRETE, SMOOTH16
WALL SCONCES17

RECESSED VINYL WINDOW, TYPICAL AT STREET
ELEVATION, DARK GRAY. PER DETAILS BELOW 8.2

ELEVATION SHEET NOTES
BOARD FORMED CONCRETE18

BACK FLOW PREVENTER PAINTED TO MATCH ADJACENT
BUILDING FINISH COLOR 20
AUDIBLE VISUAL STROBE WARNING SIGNAL. ADJUSTIBLE
SOUND LEVELS BETWEEN 69 AND 100DBA OR CAN BE
SILENCED. SEE PRODUCT INFORMATION ON SHEET 3/A3.2
21 POLICE/FIRE DEPT KNOX BOX19
Project:

Client:

JOB #:

SCALE:

DATE:
1/8" = 1'-0"

THORNTON AVE
6375 THORNTON AVE
1835 ALCATRAZ AVE.

BERKELEY, CA 94703

BUILDING

ELEVATIONS

SANDIS ENGINEER
| SURVEY | PLAN
636 9th St., Oakland, CA 94607

JETT LANDSCAPE
ARCHITECTURE + DESIGN
2 Theatre Square Suite 218,
Orinda, CA 94563
CONSULTANT NAME 3
CONSULTANT 3 FULL ADDRESS
CONSULTANT NAME 4
CONSULTANT 4 FULL ADDRESS
CONSULTANT NAME 5
CONSULTANT 5 FULL ADDRESS
CONSULTANT NAME 6
CONSULTANT 6 FULL ADDRESS
2314
A3.1
12/20/24

CIVIL ENGINEER

LANDSCAPE ARCHITECT
CONSULTANT DISCIPLINE 3
CONSULTANT DISCIPLINE 4
CONSULTANT DISCIPLINE 5
CONSULTANT DISCIPLINE 6
A3.1 SCALE: 1/8" = 1'-0"
1 EAST ELEVATION
A3.1 SCALE: 1/8" = 1'-0"
2 SOUTH ELEVATION
+/-2-1/2"

TYPICAL VINYL

RECESSED WINDOW

ID DATE NAME
12/31/24
1ST FLOOR
0"
2ND FLOOR
16' - 0"
3RD FLOOR
25' - 6"
4TH FLOOR
35' - 0"
5TH FLOOR
44' - 6"
ROOF
54' - 0"
PL PL
FENCE
BEHIND
1 A3.5
14 14
1A 12D 8.1 2B
1A
4 15
16'-0" 9'-6" 9'-6" 9'-6" 9'-6"
17 7B 12B 3C

EXTERIOR SWITCHGEAR
AND ELEC. METER
13 6'-0"
16 18
1ST FLOOR
0"
2ND FLOOR
16' - 0"
3RD FLOOR
25' - 6"
4TH FLOOR
35' - 0"
5TH FLOOR
44' - 6"
ROOF
54' - 0"

TALLEST PARAPET
60' - 0"
PL PL
FENCE
BEHIND
2 A3.5
1A 8.1 2B 8.1 3C
14 1A 14

8.1 2B 8.1 1A
15 2'-0"6'-0"9'-6"9'-6"9'-6"9'-6"16'-0"
1A
STAIR 2 ROOF
62' - 0"
6'-0"
17 17 6'-0"
12B 4 12B
13 1A
CEMENT PLASTER1 2B 6D
FIBER CEMENT BOARD AND BATTEN2
FIBER CEMENT ACCENT PANEL3
WOOD-LIKE PANEL4
STANDING SEAM METAL5

REFER TO IMAGES & NUMBERS ON MATERIAL BOARD
SHEET A3.4 FOR PRODUCT INFO & ADDITIONAL

IMAGES COLORS

A CREAM WHITE

B LIGHT GRAY
C GRAY

D DARK GRAY
JULIETTE BALCONY, SEE 2/A4.46
METAL RAILING7

FLUSH VINYL WINDOW, TYPICAL AT SIDE AND REAR
ELEVATIONS, DARK GRAY 8.1
ALUMINUM STOREFRONT SYSTEM, ANODIZED9
METAL AWNING10
OVERHEAD GARAGE DOOR11
PAINTED PARAPET CAP12
CONCRETE PLANTER13
6' TALL WOOD CEDAR FENCE, SEE 4/A4.414
GARAGE VENTING LOUVER15
EXPOSED CONCRETE, SMOOTH16
WALL SCONCES17

RECESSED VINYL WINDOW, TYPICAL AT STREET
ELEVATION, DARK GRAY. PER DETAILS BELOW 8.2

ELEVATION SHEET NOTES
BOARD FORMED CONCRETE18

BACK FLOW PREVENTER PAINTED TO MATCH ADJACENT
BUILDING FINISH COLOR 20
AUDIBLE VISUAL STROBE WARNING SIGNAL. ADJUSTIBLE
SOUND LEVELS BETWEEN 69 AND 100DBA OR CAN BE
SILENCED. SEE PRODUCT INFORMATION ON SHEET 3/A3.2
21 POLICE/FIRE DEPT KNOX BOX19
Project:

Client:

JOB #:

SCALE:

DATE:
1/8" = 1'-0"

THORNTON AVE
6375 THORNTON AVE
1835 ALCATRAZ AVE.

BERKELEY, CA 94703

BUILDING

ELEVATIONS

SANDIS ENGINEER
| SURVEY | PLAN
636 9th St., Oakland, CA 94607

JETT LANDSCAPE
ARCHITECTURE + DESIGN
2 Theatre Square Suite 218,
Orinda, CA 94563
CONSULTANT NAME 3
CONSULTANT 3 FULL ADDRESS
CONSULTANT NAME 4
CONSULTANT 4 FULL ADDRESS
CONSULTANT NAME 5
CONSULTANT 5 FULL ADDRESS
CONSULTANT NAME 6
CONSULTANT 6 FULL ADDRESS
2314
A3.2
12/20/24

CIVIL ENGINEER

LANDSCAPE ARCHITECT
CONSULTANT DISCIPLINE 3
CONSULTANT DISCIPLINE 4
CONSULTANT DISCIPLINE 5
CONSULTANT DISCIPLINE 6
A3.2 SCALE: 1/8" = 1'-0"
2 NORTH ELEVATION
A3.2 SCALE: 1/8" = 1'-0"
1 WEST ELEVATION
3 VISUAL AUDIBLE WARNING SIGNAL
A3.2

ID DATE NAME
12/31/24
1ST FLOOR
0"
2ND FLOOR
16' - 0"
3RD FLOOR
25' - 6"
4TH FLOOR
35' - 0"
5TH FLOOR
44' - 6"
ROOF
54' - 0"
STAIR 2 ROOF
62' - 0"
16'-0" 9'-6" 9'-6" 9'-6" 9'-6" 8'-0"

8.1 2B 12B 1A
GARAGE
UNIT
1ST FLOOR
0"
2ND FLOOR
16' - 0"
3RD FLOOR
25' - 6"
4TH FLOOR
35' - 0"
5TH FLOOR
44' - 6"
ROOF
54' - 0"
9'-6"9'-6"9'-6"9'-6"16'-0"
1A 8.1 2B 12B 1A
GARAGE
COMM.

ROOM
6D
CEMENT PLASTER1
FIBER CEMENT BOARD AND BATTEN2
FIBER CEMENT ACCENT PANEL3
WOOD-LIKE PANEL4
STANDING SEAM METAL5

REFER TO IMAGES & NUMBERS ON MATERIAL BOARD
SHEET A3.4 FOR PRODUCT INFO & ADDITIONAL

IMAGES COLORS

A CREAM WHITE

B LIGHT GRAY
C GRAY

D DARK GRAY
JULIETTE BALCONY, SEE 2/A4.46
METAL RAILING7

FLUSH VINYL WINDOW, TYPICAL AT SIDE AND REAR
ELEVATIONS, DARK GRAY 8.1
ALUMINUM STOREFRONT SYSTEM, ANODIZED9
METAL AWNING10
OVERHEAD GARAGE DOOR11
PAINTED PARAPET CAP12
CONCRETE PLANTER13
6' TALL WOOD CEDAR FENCE, SEE 4/A4.414
GARAGE VENTING LOUVER15
EXPOSED CONCRETE, SMOOTH16
WALL SCONCES17

RECESSED VINYL WINDOW, TYPICAL AT STREET
ELEVATION, DARK GRAY. PER DETAILS BELOW 8.2

ELEVATION SHEET NOTES
BOARD FORMED CONCRETE18

BACK FLOW PREVENTER PAINTED TO MATCH ADJACENT
BUILDING FINISH COLOR 20
AUDIBLE VISUAL STROBE WARNING SIGNAL. ADJUSTIBLE
SOUND LEVELS BETWEEN 69 AND 100DBA OR CAN BE
SILENCED. SEE PRODUCT INFORMATION ON SHEET 3/A3.2
21 POLICE/FIRE DEPT KNOX BOX19
1ST FLOOR
0"
2ND FLOOR
16' - 0"
3RD FLOOR
25' - 6"
4TH FLOOR
35' - 0"
5TH FLOOR
44' - 6"
ROOF
54' - 0"

TALLEST PARAPET
60' - 0"
6'-0"9'-6"9'-6"9'-6"9'-6"16'-0"

8.1 12B 2B 1A
4 GARAGE

UNIT CORRIDOR
6D
Project:

Client:

JOB #:

SCALE:

DATE:
1/8" = 1'-0"

THORNTON AVE
6375 THORNTON AVE
1835 ALCATRAZ AVE.

BERKELEY, CA 94703

BUILDING

ELEVATIONS

SANDIS ENGINEER
| SURVEY | PLAN
636 9th St., Oakland, CA 94607

JETT LANDSCAPE
ARCHITECTURE + DESIGN
2 Theatre Square Suite 218,
Orinda, CA 94563
CONSULTANT NAME 3
CONSULTANT 3 FULL ADDRESS
CONSULTANT NAME 4
CONSULTANT 4 FULL ADDRESS
CONSULTANT NAME 5
CONSULTANT 5 FULL ADDRESS
CONSULTANT NAME 6
CONSULTANT 6 FULL ADDRESS
2314
A3.3
12/20/24

CIVIL ENGINEER

LANDSCAPE ARCHITECT
CONSULTANT DISCIPLINE 3
CONSULTANT DISCIPLINE 4
CONSULTANT DISCIPLINE 5
CONSULTANT DISCIPLINE 6
A3.3 SCALE: 1/8" = 1'-0"
1 COURTYARD NORTH ELEVATION
A3.3 SCALE: 1/8" = 1'-0"
2 COURTYARD SOUTH ELEVATION
A3.3 SCALE: 1/8" = 1'-0"
3 COURTYARD WEST ELEVATION

ID DATE NAME
12/31/24
1ST FLOOR
0"
2ND FLOOR
16' - 0"
3RD FLOOR
25' - 6"
4TH FLOOR
35' - 0"
5TH FLOOR
44' - 6"
ROOF
54' - 0"

TALLEST PARAPET
60' - 0"
PL PL 6'-0"9'-6"9'-6"9'-6"9'-6"16'-0"
STAIR 2 ROOF
62' - 0"
4 1A 3C 8.1 2B 6D 5C 1A 7B 12B 4 12D
5C 9D 10D 9D 1A 10D 9D 17 1A 11C 16 17
12D 6D 12D 12D
18 11'-0"
CEMENT PLASTER1
FIBER CEMENT BOARD AND BATTEN2
FIBER CEMENT ACCENT PANEL3
WOOD-LIKE PANEL4
STANDING SEAM METAL5

REFER TO IMAGES & NUMBERS ON MATERIAL BOARD
SHEET A3.4 FOR PRODUCT INFO & ADDITIONAL

IMAGES COLORS

A CREAM WHITE

B LIGHT GRAY
C GRAY

D DARK GRAY
JULIETTE BALCONY, SEE 2/A4.46
METAL RAILING7

FLUSH VINYL WINDOW, TYPICAL AT SIDE AND REAR
ELEVATIONS, DARK GRAY 8.1
ALUMINUM STOREFRONT SYSTEM, ANODIZED9
METAL AWNING10
OVERHEAD GARAGE DOOR11
PAINTED PARAPET CAP12
CONCRETE PLANTER13
6' TALL WOOD CEDAR FENCE, SEE 4/A4.414
GARAGE VENTING LOUVER15
EXPOSED CONCRETE, SMOOTH16
WALL SCONCES17

RECESSED VINYL WINDOW, TYPICAL AT STREET
ELEVATION, DARK GRAY. PER DETAILS BELOW 8.2

ELEVATION SHEET NOTES
BOARD FORMED CONCRETE18

BACK FLOW PREVENTER PAINTED TO MATCH ADJACENT
BUILDING FINISH COLOR 20
AUDIBLE VISUAL STROBE WARNING SIGNAL. ADJUSTIBLE
SOUND LEVELS BETWEEN 69 AND 100DBA OR CAN BE
SILENCED. SEE PRODUCT INFORMATION ON SHEET 3/A3.2
21 POLICE/FIRE DEPT KNOX BOX19
Project:

Client:

JOB #:

SCALE:

DATE:
1/8" = 1'-0"

THORNTON AVE
6375 THORNTON AVE
.
1835 ALCATRAZ AVE.

BERKELEY, CA 94703

ELEVATION MATERIAL
BOARD

SANDIS ENGINEER
636 9th St., Oakland, CA 94607 | SURVEY | PLAN

JETT LANDSCAPE
ARCHITECTURE + DESIGN 2 Theatre Square Suite 218,
Orinda, CA 94563
CONSULTANT NAME 3
CONSULTANT 3 FULL ADDRESS
CONSULTANT NAME 4
CONSULTANT 4 FULL ADDRESS
CONSULTANT NAME 5
CONSULTANT 5 FULL ADDRESS
CONSULTANT NAME 6
CONSULTANT 6 FULL ADDRESS
2314
A3.4
07/15/24

CIVIL ENGINEER

LANDSCAPE ARCHITECT
CONSULTANT DISCIPLINE 3
CONSULTANT DISCIPLINE 4
CONSULTANT DISCIPLINE 5
CONSULTANT DISCIPLINE 6
1A PAINTED CEMENT PLASTER WITH VERTICAL AND HORIZONTAL JOINTS 2B FIBER CEMENT BOARD AND BATTEN SIDING 3C FIBER CEMENT ACCENT PANEL 5D STANDING SEAM METAL WALL PANELS
4 WOOD LIKE PANEL
9 ALUMINUM STOREFRONT SYSTEM,

ANODIZED, DARK BRONZE
7 METAL RAILING 10 METAL AWNING 14 WOOD FENCE 17 WALL SCONCES

DARK-SKY COMPLIANT
KMW49 GREAT WHITE
KM5826 VOLCANIC ROCK
KM5826 VOLCANIC ROCKKM4948 BABY BARN OWL
MANUFACTURER: OMEGA OR EQUAL, SMOOTH TEXTURE
3 COAT APPLICATION 7/8" THICK W/ACRYLIC FINISH COAT

OVER DRAIN MAT RAINSCREEN
WEBSITE:https://omega-products.com/commercial-2/
MANUFACTURER: JAMES HARDIE, OR EQUAL
BOARDS: 5/16" THICK SMOOTH, BATTENS 2.5"X2.5"X2.5" SMOOTH

RAINSCREEN INSTALLATION
WEBSITE:https://www.jameshardie.com/product-catalog/
MANUFACTURER: JAMES HARDIE, OR EQUAL
BOARDS: 5/16" THICK SMOOTH
WEBSITE:https://www.jameshardie.com/product-catalog/
MANUFACTURER: NICHIHA, VINTAGE WOOD, POPLAR, OR

EQUAL, RAINSCREEN INSTALLATION
WEBSITE:https://www.nichiha.com/ OR

ACCOYA WOOD SIDING, RAINSCREEN INSTALLATION
MANUFACTURER: MORIN, AEP SPAN OR WESTERN STATES
STANDING SEAM 12"o.c.

RAINSCREEN INSTALLATION
WEBSITE:https://www.westernstatesmetalroofing.com/standing-seam-roofing PROVIDED BY STEEL FABRICATOR.

GALVANIZED AND PAINTED
PICKETS SPACING 2"-4" o.c.

PROVIDED BY STOREFRONT

SUBCONTRACTOR AGA OR EQUAL
WEBSITE: https://www.aga-ca.com/
MANUFACTURER: MORIN, AEP SPAN

OR WESTERN STATES

FLUSH PANELS

RAINSCREEN INSTALLATION
WEBSITE:
https://www.morincorp.com/us/en/produ
cts/roof-systems/
1x6 CEDAR BOARDS MOUNTED TO LINE
16GA GALVANIZED STEEL POSTS.

STEEL GATE FRAME WITH LOCKABLE

HARDWARE
MODERN FORMS WSW14220 DUSK 20" SCONCE
18 BOARD FORMED

CONCRETE WALL

VERTICAL OVERPOURED
OR WITH 4" REVEALS

ID DATE NAME
12/31/24
Attachment D
1 Project Preliminary Financing Plan and Schedule
Application
Deadline
Program Source $ Requested Notes
COMPLETE Newark NOFA City $12 million Committed
COMPLETE DDS/RCEB Loan DDS $1.5 million Committed
April 2025 MHP (MFSN) HCD $10.2 million
September 9, 2025 Federal LIHTCs/Bonds TCAC/CDLAC $20.9 million Contingent on MHP September 9, 2025 State LIHTCS TCAC $3.5 million Same app as federal Mid-2025 Affordable Housing Program FHLB $1.8 million
Undetermined Project-Based Voucher (PBV) HACA 7 PBVs
Since receiving the City’s $12 million loan commitment, Satellite Affordable Housing Associates (SAHA) has secured an additional commitment of $1.5 million from the California Department of Developmental Services (DDS) and the Regional Center for the East Bay (RCEB). Through these funds, the Project will provide ten homes for households with a member who is intellectually or developmentally disabled (I/DD) and receiving services from RCEB. This advances progress towards implementing the City’s Housing Element, which commits to addressing the need for additional I/DD housing in Newark.

In addition to the California Department of Housing and Community Development’s (HCD) Multifamily Housing Program (MHP), and Low-Income Housing Tax Credits (LIHTCs) and bonds, the Project anticipates applying to the Federal Home Loan Bank of San Francisco’s (FHLB) Affordable Housing Program (AHP). The Project will be more competitive for this program after securing a building permit. For this reason, the Project is waiting to apply for AHP until all entitlements and permits are approved.

The Project anticipates applying to the Housing Authority of Alameda County (HACA) for seven project-based vouchers (PBVs). HACA administers the PBV program on behalf of the US Department of Housing and Urban Development. PBVs are a valuable resource to affordable housing projects because they pay the difference between what an extremely low-income household can afford and what the actual fair market value rent would be. This means that a housing unit with a PBV can serve those most in need while obtaining full subsidy from the federal government. Unfortunately, because rents in Alameda County are so high, HACA has more PBVs available than they do funds to subsidize the associated rents. HACA anticipates falling into “shortfall” for the next one or two years, during which time they have paused awarding additional Attachment D
2 PBVs. Staff is engaging with HACA to understand the extent of this delay and alternatives to avoid disrupting the affordable housing pipeline.

Attachment E
1 Multifamily Housing Program (MHP) Detail
The California Department of Housing and Community Development’s  (HCD) Multifamily Housing  Program  (MHP)  accepts  applications  annually  through  its  Multifamily  Finance Super  Notice  of  Funding  Availability  (MFSN  or  “SuperNOFA”).  The MFSN  has  a  universal scoring system for ranking applications for MHP and other funding programs. The 2025 MFSN is expected  to be  released in February 2025, with minor changes  to  the universal scoring system. Applications would be due in April with awards in August.

Recent past MFSN funding rounds have been significantly oversubscribed; in 2024, HCD had sufficient funds to award only 10 percent of program applicants (15 out of 152 applicants).

The 2025 MFSN is expected to offer $273 million in MHP funds, which is $37 million more than in 2024 and would fund two to four more awards than in 2024. The demand for public subsidy remains extremely high, however. In May 2024, Enterprise Community Partners and the Bay Area Housing Finance Authority identified 433 affordable housing communities in predevelopment across the nine-county Bay Area, seeking a collective $9.7 billion in public subsidy.  Alameda  County  has  the  highest  number  of  affordable  housing  communities  in predevelopment at 115 projects consisting of 10,086 homes, or 27 percent of the County’s Regional Housing Needs Allocation (RHNA) for new low- and very-low-income homes.1 Under current conditions and compared against the 2025 MFSN universal scoring rubric, the Project has a self-score of 91 out of 100 points.2 While this score is good, it is unlikely to be competitive. The Project loses five (5) points for not being located in a high or highest resource area, one (1) point for not restricting a higher percentage of units to Special Needs populations, and three (3) points for not being located on public land.3 1 Atanacio, Amiel Leaño, and Shania Santana. Enterprise Community Partners and Bay Area Housing Finance Authority,  2024,  Ready to Build an Affordable Future: The 2024 Bay Area Pipeline Report, https://www.enterprisecommunity.org/learning-center/resources/ready-build-affordable-future-2024-bayarea-pipeline-report. Accessed 21 May 2025. 2 The MFSN Universal Scoring favors projects serving the lowest-income households, projects most “ready” to break  ground  (have  obtained  all  financial  commitments,  environmental  approvals  and  entitlements),  and projects addressing  statewide  policy  priorities  of  serving  Special Needs  populations,  being  located  in  high resource areas, or being located on public land.
3 Resource area is determined by HCD and the California Tax Credit Allocation Committee (TCAC), a division of the State Treasurer’s Office, which update and publish Opportunity Maps annually. HCD and TCAC report that Opportunity maps “are intended to advance the state’s affirmatively furthering fair housing (AFFH) objectives.

AFFH means combating discrimination and taking meaningful actions that overcome patterns of segregation and  foster inclusive  communities  free  from  barriers  that  restrict access  to  opportunity  based  on  protected characteristics. The Opportunity Map identifies areas in every region of the state whose characteristics have been shown by research to be associated with positive economic, educational, and health outcomes for lowincome families—particularly long-term outcomes for children.” Attachment E
2 Thornton  Avenue  Apartments,  were  it  to  apply  for  MHP  on  City-owned  land,  would distinguish itself from much of this competition. The City’s ownership of the site and longterm, low-cost lease to SAHA would raise the Project’s self-score from 91 to 94 points.

Importantly, after  the  first half of MFSN  funds are awarded,  remaining  funds are awarded irrespective  of  high  or  highest  resource  area  status,  meaning the Project’s final score would be 94 out of 95 points. This would be a competitive score because the universe of projects eligible for this score is small and limited to Special Needs projects on public land.

See Exhibit A for further information.

Attachment E
3 Exhibit A: MFSN/MHP Self-Scoring
Thornton Ave Family Super NOFA Self Score   Universal Scoring Criteria Scoring Categories
Maximum MFSN Score Thorton Avenue Apartments
First
50% of funds
Second
50% of
funds
City-Owned
Land
SAHA-Owned
Land
Serving Households at Lowest Income Levels 30 30 30 30
State Policy Priorities 18 13 12 9
Projects in “High/Highest Resource” areas 5 NA 0 0
% of Units Serving Special Needs 10 10 9 9
Projects on Public Land 3 3 3 0
Sponsor and Prop. Mgmt. Experience 20 20 20 20
Project Readiness 17 17 17 17
Adaptive Reuse / Infill / Proximity to Amenities
/ Sustainable Building Methods 10 10 10 10
Cost Containment 5 5 5 5
Total Possible Universal Points 100 95 94 91
*Highlighted cells indicate scoring categories that change depending on the recommended action to acquire the Project Site and lease it to SAHA. Were the Project to apply for MHP on City-owned land, it would come within one or two points of the maximum number of points once fifty percent of MFSN funds remain.

1 FIRST AMENDMENT TO AFFORDABLE HOUSING LOAN AGREEMENT
THIS FIRST AMENDMENT TO AFFORDABLE HOUSING LOAN
AGREEMENT (the “First Amendment”) is made and entered into as of February __, 2025, by and between the CITY OF NEWARK, a California municipal corporation (the “City”), and THORNTON, L.P., a California limited partnership (the “Developer”).

RECITALS
A. City and Developer have entered into an Affordable Housing Loan Agreement with respect to certain property located at 6347, 6361 and 6375 Thornton Avenue, Newark, California (the “Property”), dated as of April 1, 2023.  Developer intends to construct, operate and maintain a 59-unit multifamily affordable housing development for lower income and very low income households on the Property (the “Development”).

B. Pursuant to the AHLA, City has made a loan to Developer in the amount of Twelve Million Dollars ($12,000,000) to be used for the expenses related to the acquisition of the Property and the construction of the Development (the “City Loan”).  City has disbursed to Seller a portion of the City Loan funds as needed to acquire the Property, and Developer has purchased the Property with such funds.  Seller has executed and delivered to Purchaser a “Promissory Note” in the original principal amount of the City Loan, dated April 1, 2023, and has recorded a Deed of Trust with Assignment of Rents, Security Agreement and Fixture Filing, dated April 1, 2023 (“Deed of Trust”).  The Parties have also executed a Regulatory Agreement and Declaration of Restrictive Covenants (“Regulatory Agreement”), dated April 1, 2023, as an encumbrance to the Property.

C. In order to assist the Developer in securing the funds needed for the construction and operation of the Development, Developer now desires to sell the Property to the City, and City desires to purchase the Property from the Developer.  The Parties intend that after acquiring the Property the City would subsequently ground lease the Property back to the Developer for the construction and operation of the Development thereon.

D. City and Developer now desire to make certain revisions to the AHLA and other associated documents that have been or will be entered in connection therewith.  All capitalized terms used herein that are not otherwise defined herein shall have the same meaning as set forth for such terms in the AHLA.

NOW, THEREFORE, City and Developer hereby agree as follows:

1. Conveyance of the Property.  Section 3.1 of the AHLA is hereby amended to read as follows:
“3.1 The Property.
a. Sale of Property to City.  Concurrently with the execution of the First Amendment, City and Borrower shall enter into a Purchase and Sale Agreement and Joint 2 Escrow Instructions (“Purchase and Sale Agreement”), substantially in the form attached to the First Amendment as Exhibit “A”,  which provides for Borrower’s sale of the Property to City.  Upon the close of escrow for the City’s acquisition of the Property, the Parties shall enter into an Amended and Restated Promissory Note substantially in the form attached to the First Amendment as Exhibit “B”, the City shall execute and record in the Official Records a Reconveyance of the City Deed of Trust, substantially in the form attached to the First Amendment as Exhibit “C”, and a Termination of Regulatory Agreement, substantially in the form attached to the First Amendment as Exhibit “D”. b. Ground Lease of Property to Borrower.  Concurrently with the close of escrow for the City’s acquisition of the Property, City and Borrower shall enter into a Ground Lease Option Agreement, substantially in the form attached hereto as Exhibit “E”,  which provides to Borrower a binding option to ground lease the Property from the City, for a term of not less than 99 years from the date of the City’s Certificate of Occupancy for the Development, for the construction and operation of the Development thereon.  Concurrently with the parties’ execution of the Ground Lease, the Borrower shall execute and record in the Official Records a new City Deed of Trust which encumbers the Borrower’s leasehold interest in the Property, and the parties shall execute and record in the Official Records a new Regulatory Agreement substantially in the form attached to the AHLA as Exhibit G, with such additions as are mutually acceptable to the parties, including an increase of total unit count from 57 to 59 units, which encumbers the Borrower’s leasehold interest in the Property.”

2. City Loan.  Sections 4.1 and 4.2 of the AHLA shall be revised as follows:

4.1 City Loan.  The City shall provide a loan in the amount of Eight Million Five Hundred Twenty-Three Thousand Seven Hundred Forty-Three Dollars and Sixteen Cents ($8,523,743.16) (the “City Loan”) to Borrower upon the terms and conditions and for the purposes set forth in this Agreement.   The City Loan shall be evidenced by an Amended and Restated Promissory Note (the “City Promissory Note”) substantially in the form attached to the First Amendment as Exhibit B, and shall be secured by a deed of trust (the  “City Deed of Trust”) executed by Borrower as Trustor, substantially in the form attached to the AHLA as Exhibit D, with the modification of the City Loan amount and other mutually acceptable modifications, and recorded against the Property and subordinate only to such liens as City shall approve in writing.

The outstanding principal balance of the Note will accrue simple interest at the rate of three percent (3%) per annum.

Provided that Borrower has complied with all conditions precedent to disbursement of the City Loan set forth in Section 4.6, the proceeds of the City Loan (“City Loan Proceeds”) shall be disbursed in accordance with Section 4.2 hereof.  The Parties agree that City shall disburse City Loan Proceeds only for the purposes set forth in Section 4.2. “4.2. Use and Disbursement of Proceeds. The City Loan Proceeds shall be used as follows:
3 a. A portion of the City Loan Proceeds shall be used to fund a portion of Borrower’s predevelopment costs for the Development, which shall be funded prior to the commencement of the Ground Lease, and in accordance with the Predevelopment Loan Component Budget included in the Preliminary Financing Plan (the “Predevelopment Loan Component”).  The Predevelopment Loan Component shall not exceed Eight Hundred Seventy Thousand Six Hundred Twenty-Three Dollars ($870,623). b. The remaining undisbursed portion of the City Loan Proceeds (i.e., $8,523,743.16 less the total amount of the Predevelopment Loan Component that has actually been disbursed) shall be used to pay for the cost of construction of the Development, and development fees and other costs related to the construction of the Development, in accordance with the Construction Loan Component Budget included in the Revised Financing Plan, to be funded through monthly City Loan draws after the Construction Loan Closing (the “Construction Loan Component”).  City Loan Proceeds shall not be used or disbursed for Borrower fee, overhead or profit.”

3. Security for City Loan.  The following shall replace the last sentence of Section

4.3 of the AHLA:
“The City Deed of Trust dated ___________________, that was executed and recorded in the official records of Alameda County on ________________, as Document No. _________________, shall be released and reconveyed concurrently with the City’s acquisition of the Property from the Borrower pursuant to the Purchase and Sale Agreement.  The City Deed of Trust, with appropriate modifications to reflect its change to a leasehold deed of trust and the change in the City Loan amount, shall be re-signed and recorded in the Official Records as an encumbrance to the Borrower’s ground leasehold interest in the Property concurrently with the Construction Loan Closing.

Upon the Construction Loan Closing, the City Deed of Trust may be subordinated to such construction and permanent financing which are designated as senior loans in the Revised Financing Plan approved by the City, pursuant to any subordination agreements agreed upon by the City and senior lenders, as applicable.  Such senior loans shall not encumber the City’s fee title to the Property.”

4. Title Policy.  The following shall be added to the end of Section 4.4 of the AHLA:
“A new lender’s policy of title insurance, and/or endorsements reasonably acceptable to the City, shall be provided to the City upon the construction loan closing.”

5. Revised Financing Plan.  The Revised Financing Plan attached hereto as Exhibit F is hereby approved by the City in accordance with Section 4.5 of the AHLA.

6. Conditions to Disbursement of Construction Loan Component.  The following replaces subparagraph (d) of Section 4.7 of the AHLA:
4 “(d) The Title Company’s issuance of a new lender’s policy of title insurance, and/or such endorsements to the City Title Policy as are required by the City. (e) The Ground Lease has been duly executed, and the new City Deed of Trust, Regulatory Agreement and Memorandum of Ground Lease have been duly executed and recorded in the Official Records as encumbrances to Borrower’s leasehold interest in the Property.”

7. Mortgages. The following shall be added to the end of Section 8.1 of the AHLA:
“All mortgages and deeds of trust shall encumber only Borrower’s leasehold interest in the Property, and shall not encumber the City’s fee interest in the Property.”

8. Defaults.  The following shall be added to the end of Section 10.1 of the AHLA:
“(n) Any default of the Purchase and Sale Agreement or Ground Lease which has not been cured within the time set forth in the applicable document.”

9. No Other Amendments.  Except as amended by this First Amendment, the AHLA shall continue unmodified and in full force and effect.  All terms not separately defined herein shall have the meanings as defined in the AHLA.

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly executed as of the date set forth above.

CITY:

CITY OF NEWARK, a municipal corporation
By: _______________________
David Benoun, City Manager
Attest:
__________________________
Sheila Harrington, City Clerk
Approved as to Form:
-__________________________
Kristopher Kokotaylo, City Attorney
5 DEVELOPER:

THORNTON, L.P.,
a California limited partnership
By:    SAHA Thornton LLC,
a California limited liability company,
its general partner
By: Satellite Affordable Housing Associates,
a California nonprofit public benefit corporation,
its sole member/manager
By:____________________________
Susan Friedland,
Chief Executive Officer

6 EXHIBIT “A”
FORM OF PURCHASE AND SALE AGREEMENT
[To Be Attached]
7 PURCHASE AND SALE AGREEMENT
AND JOINT ESCROW INSTRUCTIONS
THIS  PURCHASE  AND  SALE  AGREEMENT  AND  JOINT  ESCROW INSTRUCTIONS (the “Agreement”) is entered into as of ____________, 2025 (the “Effective Date”), by and between Thornton, L.P., a California limited partnership (“Seller”), and the City of Newark, a California municipal corporation (“Purchaser”).  Seller and Purchaser are collectively referred to herein as the “Parties.”

RECITALS
A. Seller  and  Purchaser  have  entered into  an Affordable Housing Loan Agreement with  respect  to  certain  property  located  at  6347,  6361  and  6375  Thornton  Avenue,  Newark, California  (the “Property”),  dated as  of April  1,  2023, as amended  by the First Amendment to Affordable Housing Loan Agreement dated February __, 2025 (as amended, the “AHLA”).  The Property is more particularly described in Exhibit A attached hereto and incorporated herein.

B. Pursuant to the AHLA, Purchaser has made a loan to Seller in the amount of Twelve Million  Dollars  ($12,000,000)  to  be  used  for  the  expenses  related  to  the  development  of  an affordable  housing  project  on the  Property  (the  “City Loan”).   Purchaser  disbursed to  Seller  a portion of the City Loan funds as needed to acquire the Property, and Seller purchased the Property with such funds.  Seller executed and delivered to Purchaser a “Promissory Note” in the original principal amount of the City Loan.

C. The First Amendment to the AHLA provides for Seller to enter into an agreement to  sell  the  Property  to  Purchaser  for  the  same  price  that  Seller  paid  for  the  acquisition  of  the Property.

D. By this  Agreement,  Purchaser  agrees to  purchase the  Property  from  Seller,  and Seller  agrees  to  sell  the  Property  to  Purchaser,  subject  to  the  terms  and  conditions  of  this Agreement.

NOW, THEREFORE, for and in consideration of the mutual covenants and agreements contained in this Agreement, and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged by the parties, Seller and Purchaser hereby agree as follows:

Incorporation of Recitals and Exhibits.  The Recitals set forth above and the Exhibits attached to this Agreement are each incorporated into the body of this Agreement as if set forth in full.

Purchase and Sale.

2.1 Agreement to Buy and Sell Property.  Subject to the terms and conditions set  forth herein, Seller agrees to sell the Property to Purchaser, and Purchaser hereby agrees to acquire the Property from Seller.
8 2.2 Purchase Price.  The purchase price for the Property to be paid by Purchaser to Seller (the “Purchase Price”) is Three Million Four Hundred Twenty-Nine Thousand Three Hundred Seventy-Seven Dollars ($3,429,377). The Purchase Price shall be paid through a reduction of the balance of the Promissory Note in the amount of the Purchase Price.

The Parties shall execute and deliver into Escrow an “Amended and Restated Promissory Note,” substantially in the form attached hereto as Exhibit “E”, which memorializes such reduction of the balance of the Promissory Note.

Escrow.

3.1 Escrow  Account.  Purchaser  has  opened  an  escrow  account  (the “Escrow”) with Old Republic Title Company, Title  Officer Julie Massey (the “Escrow Holder”).

Escrow Holder shall perform all escrow and title services in connection with this Agreement.

3.2 Opening  of  Escrow. Within  five  (5)  business  days  after  the  Effective Date, the Parties will deposit into Escrow the fully executed Agreement, or executed counterparts thereto. The date such fully executed Agreement is received by Escrow Holder will be deemed the “Opening  of  Escrow,”  and  Escrow  Holder  will  give  written  notice  to  the  Parties  of  such occurrence.

3.3 Satisfaction  of  Due  Diligence  Contingency.  Purchaser  will  have ________  (__)  days  from  Opening  of  Escrow  (the  “Due  Diligence  Contingency  Period”)  to complete  physical inspections  of the  Property  and  due  diligence  related to the  purchase  of the Property.    Seller  shall  provide  to  Purchaser  copies  of  all  reasonably  available  and  known documents relating to the ownership and use of the Property, including but not limited to plans, permits and reports (such as environmental, engineering and land surveys) that Seller has in its possession not later than five (5) days following the execution and delivery of this Agreement.

3.4 Due  Diligence  Inspections.    During  the  Due  Diligence  Contingency Period, Purchaser and its agents, contractors and employees shall have the right to enter upon the Property for the purpose of making inspections or to perform environmental testing, at Purchaser’s sole risk, cost and expense.  All of such entries upon the Property shall be within fifteen days after the Effective Date of this Agreement, during normal business hours and after at least twenty-four (24) hours prior notice to Seller, and Seller or Seller’s agent shall have the  right to accompany Purchaser  during  any  activities  performed  by  Purchaser  on  the  Property.    At  Seller’s  request, Purchaser shall provide Seller with a copy of the results of any environmental tests and inspections made by Purchaser, at no cost to Seller.  If any inspection or test disturbs the Property, Purchaser will restore the Property to the substantially the same condition as existed before the inspection or test.  Purchaser shall defend, indemnify and hold Seller and the Property harmless from and against any and all losses, costs, damages, claims or liabilities, including but not limited to, mechanic’s and  materialmen’s’  liens,  arising  out  of  or  in  connection  with  Purchaser’s  inspection  of  the Property as allowed pursuant to this Section 3.4.

3.5 Termination Upon Due Diligence Disapproval.  Purchaser shall have the right, in its sole discretion, to terminate this Agreement for any reason (or no reason) by written notice to Seller  prior to the expiration  of the Due Diligence Contingency Period  (as it may  be extended).  If Purchaser timely sends such a termination notice, this Agreement shall terminate, 9 and  neither  party  shall  have  any  further  rights  or  obligations  hereunder  except  those  which expressly  survive  the  termination  hereof.    In  the  event  of  Purchaser’s  termination  of  this Agreement pursuant to this Section 3.5, Purchaser shall be responsible for the costs of Escrow and any cancellation fees.

Property Disclosure Requirements.

4.1 Condition  of  Title/Preliminary  Title  Report.    Escrow  Holder  shall deliver a Preliminary Title Report for the Property (the “Preliminary Report”) to Purchaser within three (3) days after the Opening of Escrow.  Purchaser shall have until the end of the Due Diligence Contingency Period to approve or disapprove the condition of title to the Property; provided that all existing deeds of trust, mechanic’s liens and other financial liens and encumbrances, if any, shall be  paid  off and  removed  from title concurrently with  or  prior to the Closing.   If there are any changes to the Preliminary Report prior to Closing, Purchaser shall have five (5) days after receipt of the revised Preliminary Report to approve or disapprove such changes.

4.2 Environmental  and  Natural Hazards  Disclosure.  California  Health & Safety Code section 25359.7 requires owners of non-residential real property who know, or have reasonable cause to believe, that any release of hazardous substances are located on or beneath the real property to provide written notice of same to the buyer of real property.  Other applicable laws require Seller to provide certain disclosures regarding natural hazards affecting the Property.  Seller agrees to make any necessary disclosures required by law.  Seller shall provide Purchaser with all documents reasonably known to Seller pertaining to the environmental condition of the Property.

5. Closing and Payment of Purchase Price.

5.1 Closing.  The closing (the “Closing” or “Close of Escrow”) will occur no later than _____ (__) days after the expiration of the Due Diligence Contingency Period, as it may be extended (“Closing Date”), or such other date that the Parties agree in writing.  In the event that Closing has not occurred on or prior to the Closing Date, either Party not then in default may, upon five (5) days advance written notice to the other Party, terminate this Agreement and the Escrow.

As long as neither Party so elects to terminate this Agreement and the Escrow, Escrow Holder shall close the Escrow as soon as possible.  Upon any such termination of this Agreement, neither Party shall  have  any  further  rights  or  obligations  hereunder,  except  for  the  rights  and  obligations expressly provided to survive termination of this Agreement.

5.2 Purchaser’s Conditions to Closing.  Purchaser's obligation to purchase the Property is  subject to the  satisfaction  of  all  of the  following  conditions  or  Purchaser's  written waiver thereof (in Purchaser’s sole discretion) on or before the Closing Date:
(a) Purchaser has not sent a notice of termination to Seller prior to the end of the Due Diligence Contingency Period.
(b) Seller has deposited into the Escrow a fully executed “Grant Deed” substantially in the form attached hereto as Exhibit “B” and incorporated herein. 10 (c) Seller has deposited into the Escrow a fully executed “Lease Option Agreement”  and  “Memorandum  of  Lease  Option”  substantially in the  form  attached  hereto  as Exhibit “C” and incorporated herein.
(d) Seller  and  Purchaser  have  executed  and  deposited  into  Escrow  a Lease of City Real Property (“Short-Term Property Lease Agreement”) substantially in the form attached hereto as Exhibit “D” and incorporated herein. (e) Seller and Purchaser have executed and deposited into Escrow an Amended and Restated Promissory Note substantially in the form attached hereto as Exhibit “E” and incorporated herein.
(f) Purchaser has executed and deposited into Escrow a Reconveyance of Deed of Trust substantially in the form attached hereto as Exhibit “F” and incorporated herein. (g) Seller  and  Purchaser  have  executed  and  deposited  into  Escrow  a Termination of Regulatory Agreement substantially in the form attached hereto as Exhibit “G” and incorporated herein.
(h)   Seller  has  performed  all  obligations  to  be  performed  by  Seller pursuant to this Agreement.
(i) Seller’s representations and warranties herein are true and correct in all material respects as of the Closing Date.
(j) The Title Company is irrevocably  committed to issue  a CLTA  or ALTA standard coverage title insurance policy to Purchaser, together with such endorsements as are requested by Purchaser, effective as of the Closing Date, insuring title to Purchaser in the full amount of the Purchase Price, subject only to those exceptions to title which have been approved by Purchaser.
(k) There  shall  be  no litigation  or  administrative  proceeding  pending with respect to the Property as of the Closing, nor any moratoria which would adversely impact the development of the Property.

5.3 Seller’s  Conditions  to  Closing.  The  Close  of  Escrow  and  Seller’s obligation  to  sell  and  convey  the  Property  to  Purchaser  are  subject  to  the  satisfaction  of  the following conditions or Seller’s written waiver (in Seller’s sole discretion) of such conditions on or before the Closing Date:
(a) Purchaser has deposited into the Escrow all costs  required by this Agreement to be paid by Purchaser.
(b) Purchaser  has  deposited  into  the  Escrow  the  Grant  Deed Acceptance,  Lease  Option  Agreement,  Memorandum  of  Option,  Short-Term  Property  Lease Agreement,  Amended  and  Restated  Promissory  Note,  Reconveyance  of  Deed  of  Trust, 11 Termination of Regulatory Agreement, and all documents to be submitted by Purchaser pursuant to this Agreement, all duly executed by Purchaser and notarized where applicable. (c) Purchaser  has  performed  all  obligations  to  be  performed  by Purchaser pursuant to this Agreement before the Closing Date. (d) Purchaser's representations and warranties set forth herein are true and correct in all material respects as of the Closing Date.

5.4  Conveyance of Title.  Seller will deliver fee simple title to Purchaser at the Closing, subject only to the exceptions to title which have been approved by Purchaser.

5.5 Deliveries at Closing.

Deliveries by Seller.  Seller shall deposit into the Escrow  for delivery to Purchaser at Closing duly executed original copies of the Grant Deed, Lease Option Agreement, Memorandum  of  Option,    Termination  of  Regulatory  Agreement,  Amended  and  Restated Promissory Note and Short-Term Property Lease Agreement.

Deliveries by Purchaser.  No less than one  (1) business day prior to the close of escrow, Purchaser shall deposit into Escrow duly executed original copies of the Grant Deed Acceptance, Lease Option Agreement, Memorandum of Option, , Reconveyance of Deed of Trust,  Termination  of Regulatory  Agreement,  Amended  and Restated  Promissory  Note,  ShortTerm  Property  Lease  Agreement,  and  immediately  available  funds  in  the  amount  equal  to the Escrow fees and recording fees, and the cost of the Title Policy.

Closing.  Upon Closing, Escrow Holder shall:  (i) record the Grant Deed and the Grant Deed Acceptance, Memorandum of Option, Reconveyance of Deed of Trust, and Termination of Regulatory Agreement; (ii) charge the Purchaser for documentary transfer taxes and governmental conveyance fees, if any; (iii) deliver to Seller and Purchaser a certified copy of the executed Grant Deed; (iv) pay any expenses payable through Escrow; and (v) distribute to itself the payment of Escrow fees and expenses required hereunder.

Closing  Costs.    Purchaser  will  pay  all  Escrow  fees,  recording  fees, title insurance and title report costs, documentary transfer taxes and governmental conveyance fees, if applicable.  All costs payable by Purchaser hereunder shall be deemed disbursements of the City Loan and shall be added to the balance of the Amended and Restated Promissory Note.

Proration of Taxes.  At the Close of Escrow, Seller shall be responsible for a prorated share of property taxes and assessments due through the Close of Escrow.  In the event that, prior to the Close of Escrow, Seller has paid the installment of property taxes and assessments applicable to the current period,  there shall be no proration of  property taxes and assessments, and Seller shall be responsible for applying for a refund of any overpayment of property taxes and assessments as a result of the acquisition of the Property by a public agency.  In the event any real property taxes are due and unpaid at the Close of Escrow  for any periods prior to the Close of Escrow, Escrow Holder is hereby authorized and instructed to pay such taxes from proceeds due the Seller at the Close of Escrow.  At the Close of Escrow, the Purchaser will file a Preliminary 12 Change of Ownership Report and any necessary documentation with the County Assessor-County Clerk-Recorder  for the  property tax  exemption,  and  shall  be  responsible  for  coordinating  with Escrow Holder for the payment of any periods occurring from and after the Close of Escrow (if any are due or payable). Seller shall have the right, after Close of Escrow, to apply for a refund to the County Tax Collector/Assessor outside of Escrow  for any overpayments, and if eligible, to receive such refund.

Rent Proration and Security Deposits.  Rents paid by any existing tenants shall be prorated through the Close of Escrow, and Seller  shall transfer all  security deposits of existing tenants to Purchaser through the Escrow.

6. As Is Conveyance.  Notwithstanding anything to the contrary in this Agreement, this sale is made and will be made without representation, covenant, or warranty of any kind by Seller.  As a material part of the consideration for this Agreement, Purchaser agrees to accept the Property  on  an  “as is”  and  “where is”  basis, with  all  faults,  and without  any  representation  or warranty, all of which Seller hereby disclaims.  No warranty or representation is made by Seller as to  fitness  for  any  particular  purpose,  merchantability,  design,  quality,  condition,  operation  or income, compliance with drawings or specifications, absence of defects, absence of hazardous or toxic  substances,  hazardous  materials,  hazardous  wastes,  absence  of  faults,  flooding,  or compliance with laws and regulations including, without limitation, those relating to health, safety, and the environment.  Purchaser acknowledges that it has entered into this Agreement with the intention  of  making  and  relying  upon  its  own  investigation  of  the  physical,  environmental, economic  use,  compliance,  and  legal  condition  of  the  Property  and  that  Purchaser  is  not  now relying, and will not later rely, upon any representations and warranties made by Seller or anyone acting or claiming to act, by, through or under or on Seller’s behalf concerning the Property.  The provisions of this Section 6 shall survive indefinitely any closing or termination of this Agreement. .

7. Remedies.  In the event of a breach or default under this Agreement by Seller prior to Close of Escrow, Purchaser reserves the right to either (a) seek specific performance from Seller or (b) to do any of the following: (i) to waive in writing the breach or default and proceed to close as provided herein; (ii) to extend the time for performance and the Closing Date until Seller is able to perform; or (iii) to terminate this Agreement upon written notice to Seller, whereupon Seller shall  cause Escrow Holder to  return to  Purchaser  any  and  all  sums  placed into the Escrow  by Purchaser, and except for the rights and obligations expressly provided to survive termination of this Agreement, neither party shall have any  further obligations or liabilities hereunder.   In the event of a breach or default under this Agreement by Purchaser prior to Close of Escrow,  Seller shall have all remedies available at law or equity.

8. Brokers.  Each Party represents that no real estate broker has been retained by it in the procurement of the Property or negotiation of this Agreement.  Each Party shall indemnify, hold harmless and defend the other Party from any and all claims, actions and liability and any commission,  finder’s  fee,  or  similar  charges  from  such  Party’s  broker,  and  its  respective employees, agents, consultants and contractors.

9. Assignment.  Absent an express signed written agreement between the Parties to the contrary, neither Seller nor Purchaser may assign its  rights or delegate its duties under this Agreement without the express written consent of the other.  No permitted assignment of any of 13 the rights or obligations under this Agreement shall result in a novation or in any other way release the assignor from its obligations under this Agreement.

10. Miscellaneous.

10.1 Attorneys’ Fees.  If any party employs counsel to enforce or interpret this Agreement,  including  the  commencement  of  any  legal  proceeding  whatsoever  (including insolvency, bankruptcy, arbitration, mediation, declaratory relief or other litigation), the prevailing party shall be entitled to recover its reasonable attorneys’ fees and court costs (including the service of process, filing fees, court and court reporter costs, investigative fees, expert witness fees, and the costs of any bonds, whether taxable or not) and shall include the right to recover such fees and costs incurred in any appeal or efforts to collect or otherwise enforce any  judgment in its favor in addition to any other remedy it may obtain or be awarded.  Any judgment or final order issued in any legal proceeding shall include reimbursement for all such attorneys’ fees and costs.  In any legal proceeding, the “prevailing party” shall mean the party determined by the court to most nearly prevail and not necessarily the party in whose favor a judgment is rendered.

10.2 Interpretation.  This Agreement has been negotiated at arm’s length and each party has been represented by independent legal counsel in this transaction and this Agreement has been reviewed and revised by counsel to each of the Parties.  Accordingly, each party hereby waives any benefit under any rule of law (including Section 1654 of the California Civil Code) or legal decision that would require interpretation of any ambiguities in this Agreement against the drafting party.

10.3 Survival.    All  indemnities,  covenants,  representations  and  warranties contained in this Agreement shall survive Close of Escrow.

10.4 Successors.  Except as provided to the contrary in this Agreement, this Agreement shall be binding on and inure to the benefit of the Parties and their successors and assigns.

10.5 Governing Law.  This Agreement shall be construed and interpreted in accordance with the laws of the State of California.

10.6 Integrated Agreement; Modifications.  This Agreement, together with the AHLA, contains all the agreements of the Parties concerning the subject hereof, and cannot be amended or modified except by a written instrument executed and delivered by the parties.  There are no representations, agreements, arrangements or understandings, either oral or written, between or  among the  parties  hereto  relating to the  subject matter  of this  Agreement that  are  not  fully expressed  herein.    In  addition,  there  are  no  representations,  agreements,  arrangements  or understandings,  either  oral  or  written,  between  or  among  the  Parties  upon  which  any  party  is relying upon in entering this Agreement that are not fully expressed herein.

10.7 Severability.  If any term or provision of this Agreement is determined to be illegal, unenforceable, or invalid in whole or in part for any reason, such illegal, unenforceable, or invalid provisions or part thereof shall be stricken from this Agreement, any such provision shall not be affected by the legality, enforceability, or validity of the remainder of this Agreement.  If 14 any provision or part thereof of this Agreement is stricken in accordance with the provisions of this Section,  then  the  stricken  provision  shall  be  replaced,  to  the  extent  possible,  with  a  legal, enforceable and valid provision this is in keeping with the intent of the Parties as expressed herein.

10.8 Notices.    Any  delivery  of  this  Agreement,  notice,  modification  of  this Agreement,  collateral  or  additional  agreement,  demand,  disclosure,  request,  consent,  approval, waiver, declaration or other communication that either party desires or is required to give to the other  party  or  any  other  person  shall  be in  writing.    Any  such  communication  may  be  served personally, or by nationally  recognized overnight delivery service  (i.e., Federal Express) which provides a receipt of delivery, or sent by prepaid, first class mail, return receipt requested to the party’s address as set forth below:

To Purchaser: City of Newark
37101 Newark Blvd
Newark, California  94560
Attention: ______________________
To Seller: Thornton, L.P.
c/o Satellite Affordable Housing Associates
1835 Alcatraz Avenue
Berkeley, California  94703
Attention: Chief Executive Officer
If to Escrow Holder: Old Republic Title Company
555 12th Street, Suite 2000
Oakland, California 94607
Attention: Julie Massey, Title Officer
Email: [email protected]
Any such communication shall be deemed effective upon personal delivery or on the date of first refusal to accept delivery as reflected on the receipt of delivery or return receipt, as applicable. Any party may change its address by notice to the other party.  Each party shall make an  ordinary,  good  faith  effort  to  ensure  that  it  will  accept  or  receive  notices  that  are  given  in accordance with this section and that any person to be given notice actually receives such notice.

10.9 Time.    Time  is  of  the  essence  to  the  performance  of  each  and  every obligation under this Agreement.

10.10 Days of Week.  If any date for exercise of any right, giving of any notice, or performance of any provision of this Agreement falls on a Saturday, Sunday or holiday, the time for performance will be extended to 5:00 p.m. on the next business day.

10.11 Reasonable Consent and Approval.  Except as otherwise provided in this Agreement, whenever a party is required or permitted to give its consent or approval under this Agreement, such consent or approval shall not be unreasonably withheld or delayed.  If a party is 15 required or permitted to give its consent or approval in its sole and absolute discretion or if such consent or approval may be unreasonably withheld, such consent or approval may be unreasonably withheld but shall not be unreasonably delayed.

10.12 Further  Assurances.    The  Parties  shall  at  their  own  cost  and  expense execute and deliver such further documents and instruments and shall take such other actions as may be reasonably required or appropriate to carry out the intent and purposes of this Agreement.

10.13 Waivers.    Any  waiver  by  any  party  shall  be in  writing  and  shall  not  be construed as a continuing waiver.  No waiver will be implied  from any delay or  failure to take action on account of any default by any party.  Consent by any party to any act or omission by another party shall not be construed to be consent to any other subsequent act or omission or to waive the requirement for consent to be obtained in any future or other instance.

10.14 Signatures/Counterparts.    This  Agreement  may  be  executed  in  two  or more  counterparts,  each  of  which  shall  be  deemed  an  original,  but  all  of  which together  shall constitute one and the same instrument.  Any one of such completely executed counterparts shall be sufficient proof of this Agreement.

10.15 Date  and  Delivery  of  Agreement.    Notwithstanding  anything  to  the contrary  contained  in  this  Agreement,  the  Parties  intend  that  this  Agreement  shall  be  deemed effective,  and  delivered  for  all  purposes  under  this  Agreement,  and  for  the  calculation  of  any statutory time periods based on the date an agreement between the Parties is effective, executed, or delivered, as of the Effective Date.

10.16 Representation  on  Authority  of  Parties.    Each  person  signing  this Agreement  represents  and warrants that  he  or  she is  duly  authorized  and  has legal  capacity to execute  and  deliver this  Agreement.    Each  party  represents  and  warrants to the  other that the execution  and  delivery  of  the  Agreement  and  the  performance  of  such  Party’s  obligations hereunder have been duly authorized and that the Agreement is a valid and legal agreement binding on such party and enforceable in accordance with its terms.

10.18 Approvals.    Whenever  this  Agreement  calls  for  Purchaser  approval, consent, extension or waiver,  the written approval, consent, or waiver of the Purchaser, the City Manager of Purchaser or his or her designee(s) shall constitute the approval, consent, extension or waiver of the Purchaser, without further authorization required from the City Council. Purchaser hereby  authorizes the  City Manager  and  his  or  her  designee(s) to  deliver  any  such  approvals, consents,  or extensions  or waivers as are  required  by this Agreement,  or that  do  not  otherwise reduce Purchaser’s rights under this Agreement, and to waive requirements under this Agreement, on behalf of the Purchaser.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

PURCHASER:

CITY OF NEWARK
16 By: _______________________________
David Benoun, City Manager
ATTEST:

By:  _______________________________
Sheila Harrington, City Clerk
APPROVED AS TO FORM:

By:  _______________________________
Kristopher Kokotaylo
City Attorney
SELLER:

THORNTON, L.P., a California limited partnership
By:    SAHA Thornton LLC,
a California limited liability company,
its general partner
By: Satellite Affordable Housing Associates,
a California nonprofit public benefit corporation,
its sole member/manager
By:____________________________
Susan Friedland,
Chief Executive Officer
17 Exhibit A
LEGAL DESCRIPTION
That real property in the City of Newark, County of Alameda, State of California, described as follows:
6361 Thornton Avenue:

Portion of Lot 23, Block "J", Map of Newark Acres, filed December 8, 1916, Map Book 16,

Beginning at a point on the N/W line of Thornton Avenue distance thereon North 33° 00' East 440 feet from the point of intersection thereof with the N/W line of Cherry Road, as said avenue and road are shown on said map; running thence along the said line of Thornton Avenue, North 33° 00' East 55 feet; thence North 56° 86' West 150.00 feet; thence South 33° 00' West 55.00 feet; thence South 56° 66' East 150.00 feet to the point of beginning.

EXCEPTING THEREFROM that portion conveyed to the City of Newark:

The Southeasterly 10 feet of that certain parcel of land described in the Deed from Clyde W.

Lindsay and Marie T. Lindsay, his wife, to Edward C. Jackson and. Eunice M. Jackson, his wife, recorded October 2, 1952 in the Office of the County Recorder of Alameda County in Book 6839, Page 514, Official Records of Alameda County.

APN: 092A-0919-017-02
6347 Thornton Avenue:

Portion of Lot 23, Block "J", Map of Newark Acres, filed December 8, 1916, Map Book 16, Page
11, Alameda County Records, described as follows:

Beginning at a point on the Northwestern line of Thornton Avenue distance thereon North 33° 00' East 495.00 feet from the Northeastern line of Cherry Road, as said avenue and road are shown on said map; running thence along the said line of Thornton Avenue, North 33° 00' East

55.00 feet; thence North 56° 86' West 150.00 feet; thence South 33° 00' West 55.00 feet; thence South 56° 66' East 150.00 feet to the point of beginning.

EXCEPTING THEREFROM the Southeastern 10 feet, as granted to the City of Newark recorded
September 10, 1969, Series No. 101382 in Book 2474, Page 50 of Official Records. 6375 Thornton Avenue
APN: 092A-0919-016-02
18 6375 Thornton Avenue:

A portion of Lots 22 and 23 in Block J, map of Newark Acres, filed December 8, 1916, in Book 16 of Maps, Page 11, Alameda County Records, described as follows:

Beginning at a point on the Northwestern line of Thornton Avenue, distant thereon North 33° 00’ East 385 feet from the point of intersection thereof with the Northeastern line of Cherry road, as said Avenue and Road are shown on said map; running thence along said line of Thornton Avenue North 33° 00’ East 55.00 feet; thence North 56° 58’ West 150.00 feet; thence South 33° 00’ West 55.00 feet; thence South 56° 58’ East 150.00 feet to the point of beginning.

APN: 092A-0919-018
19 EXHIBIT B
Recording Requested by
and When Recorded, Return to:

EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§6103, 27383
Exempt from Documentary Transfer Tax
Per Rev. & Tax. Code § 11922
Governmental Agency acquiring title
GRANT DEED
For valuable consideration, receipt of which is hereby acknowledged, as of _________________, 2025, Thornton, L.P., a California limited partnership, hereby grants to the City of Newark, a California municipal corporation and charter city, all that real property located in the City of Newark, County of Alameda, State of California and more particularly described in Attachment No. 1 hereto and incorporated in this Grant Deed by this reference.

By: _______________________________
20 Attachment No. 1 to Grant Deed
LEGAL DESCRIPTION
6361 Thornton Avenue:

Portion of Lot 23, Block "J", Map of Newark Acres, filed December 8, 1916, Map Book 16,

Beginning at a point on the N/W line of Thornton Avenue distance thereon North 33° 00' East 440 feet from the point of intersection thereof with the N/W line of Cherry Road, as said avenue and road are shown on said map; running thence along the said line of Thornton Avenue, North 33° 00' East 55 feet; thence North 56° 86' West 150.00 feet; thence South 33° 00' West 55.00 feet; thence South 56° 66' East 150.00 feet to the point of beginning.

EXCEPTING THEREFROM that portion conveyed to the City of Newark:

The Southeasterly 10 feet of that certain parcel of land described in the Deed from Clyde W.

Lindsay and Marie T. Lindsay, his wife, to Edward C. Jackson and. Eunice M. Jackson, his wife, recorded October 2, 1952 in the Office of the County Recorder of Alameda County in Book 6839, Page 514, Official Records of Alameda County.

APN: 092A-0919-017-02
6347 Thornton Avenue:

Portion of Lot 23, Block "J", Map of Newark Acres, flied December 8, 1916, Map Book 16, Page
11, Alameda County Records, described as follows:

Beginning at a point on the Northwestern line of Thornton Avenue distance thereon North 33° 00' East 495.00 feet from the Northeastern line of Cherry Road, as said avenue and road are shown on said map; running thence along the said line of Thornton Avenue, North 33° 00' East

55.00 feet; thence North 56° 86' West 150.00 feet; thence South 33° 00' West 55.00 feet; thence South 56° 66' East 150.00 feet to the point of beginning.

EXCEPTING THEREFROM the Southeastern 10 feet, as granted to the City of Newark recorded
September 10, 1969, Series No. 101382 in Book 2474, Page 50 of Official Records. 6375 Thornton Avenue
APN: 092A-0919-016-02
21 6375 Thornton Avenue:

A portion of Lots 22 and 23 in Block J, map of Newark Acres, filed December 8, 1916, in Book 16 of Maps, Page 11, Alameda County Records, described as follows:

Beginning at a point on the Northwestern line of Thornton Avenue, distant thereon North 33° 00’ East 385 feet from the point of intersection thereof with the Northeastern line of Cherry road, as said Avenue and Road are shown on said map; running thence along said line of Thornton Avenue North 33° 00’ East 55.00 feet; thence North 56° 58’ West 150.00 feet; thence South 33° 00’ West 55.00 feet; thence South 56° 58’ East 150.00 feet to the point of beginning.

APN: 092A-0919-018
APN:
22 CERTIFICATE OF ACCEPTANCE
This is to certify that the interest in real property conveyed by the Grant Deed dated _________________, 2025 from Thornton, L.P. (“Grantor”) to the City of Newark (“City”), is hereby accepted on behalf of the City by the undersigned officer or agent pursuant to authority conferred by resolution of the City Council of the City of Newark adopted on __________________________, and that the City consents to recordation of the Grant Deed in the official records of Alameda County by its duly authorized officer.

Dated: _________________, 2025
CITY OF NEWARK
By: ________________________________
23 A  notary  public  or  other  officer completing
this certificate verifies only the identity of the
individual who signed the document to which
this  certificate  is  attached,  and  not  the
truthfulness,  accuracy,  or  validity  of  that
document.

State of California )
) ss.

County of _____________ )
On_____________________, 20____ before me, _____________________, a Notary Public,  in and for said State and County, personally appeared _______________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument  and  acknowledged to me that  he/she/they  executed the  same in  his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.
_______________________________
NOTARY PUBLIC
24 Exhibit C
LEASE OPTION AGREEMENT
[To Be Inserted]
25 Exhibit D
SHORT-TERM PROPERTY LEASE AGREEMENT
[To Be Inserted]
26 Exhibit E
AMENDED AND RESTATED PROMISSORY NOTE
[To Be Inserted]
27 Exhibit F
RECONVEYANCE OF DEED OF TRUST
[To Be Inserted]
28 Exhibit G
TERMINATION OF REGULATORY AGREEMENT
[To Be Inserted]
29 EXHIBIT “B”
AMENDED AND RESTATED PROMISSORY NOTE
[To Be Attached]
30 AMENDED AND RESTATED PROMISSORY NOTE
(Thornton Avenue)
$8,523,743.16 Newark, California
February __, 2025
FOR VALUE RECEIVED, the undersigned Thornton, L.P., a California limited partnership ("Borrower"), hereby promises to pay to the order of the City of Newark, a California municipal corporation ("Holder"), 37101 Newark Blvd., Newark, California, 94560, Attn:  Community Development Director, the principal amount of Eight Million Five Hundred Twenty-Three Thousand Seven Hundred Forty-Three Dollars and Sixteen Cents ($8,523,743.16), plus interest thereon pursuant to Section 2 below (the “City Loan”).   This Amended and Restated Promissory Note amends and restates in full that certain Promissory Note dated April 1, 2023 in the amount of $12,000,000 executed by Borrower for the benefit of Holder.

1. Borrower's Obligation.  This promissory note (the "Note") evidences Borrower's obligation to pay Holder the principal amount of up to Eight Million Five Hundred Twenty-Three Thousand Seven Hundred Forty-Three Dollars and Sixteen Cents ($8,523,743.16) with interest for the funds loaned to Borrower by Holder pursuant to the Affordable Housing Loan Agreement between Borrower and Holder dated April 1, 2023, as amended by the certain First Amendment to Affordable Housing Loan Agreement dated February ____, 2025  (the "AHLA").  The source of funds for the City Loan is the City of Newark Affordable Housing Fund, from affordable housing impact fees received by the City pursuant to the City’s inclusionary housing ordinance.  All capitalized terms not otherwise defined in this Note shall have the meanings set forth in the AHLA.

2. Interest.  The City Loan bears interest from the date of this Note at three percent (3%) interest, until full repayment of the outstanding balance of the City Loan.

3. Term and Repayment Requirements.  Principal and interest under this Note in the amount of the City Prorata Percentage of Fifty Percent (50%) of the Residual Receipts is due and payable as set forth in Section 4.9 of the AHLA.  The unpaid principal balance hereunder, together with accrued interest thereon, is due and payable no later than the date that is the fifty-seventh (57th) anniversary of the date that a final certificate of occupancy is issued by the City of Newark to certify that the construction of the Development is complete and the Development may be legally occupied (the "Completion Date"), provided, however, if a record of the Completion Date cannot be located or established, the City Loan is due and payable on the fifty-seventh (57th) anniversary of the date of the Ground Lease of the Property between Borrower and Holder.

4. Disbursements.  No more than Eight Hundred Seventy Thousand Six Hundred Twenty-Three Dollars ($870,623) of the City Loan shall be disbursed to the Borrower prior to the Construction Loan Closing as defined in the AHLA.  All disbursements shall be in accordance with the terms of the AHLA.
31 5.  Prepayment.  Borrower may prepay the City Loan at any time without penalty or fee.

6. Assumption.  This Note shall not be assumable by the successors and assigns of Borrower without the prior written consent of Holder unless the assignment complies with Section 7.3 of the AHLA.  Holder may assign its interest in the Note to any person or entity in Holder's sole discretion.

7. Security.  Prior to the closing of the construction financing for the Project and entering into the Ground Lease, this Note shall be secured by an assignment of architect and engineering agreements.  After the Ground Lease is executed and a Memorandum of Ground Lease is recorded in the Official Records, the Loan will be secured by a Deed of Trust on the Property, wherein Borrower is the trustor and Holder is the beneficiary.  After the Deed of Trust is recorded, its terms will hereby be incorporated into this Note and made a part hereof.  This Note is nonrecourse to Borrower and the general and limited partners of the Borrower, and the sole recourse of Holder with respect to the payment of the principal of, and interest on this Note shall be    to the Property and the Improvements and any other collateral held by Holder as security for this Note; provided however, nothing contained herein is intended to relieve the Borrower of liability to the extent of any loss for fraud or intentional misrepresentation, or bad faith, waste, willful misrepresentation by the Borrower; or the failure to pay taxes, assessments or other charges which may create liens on the Property that are payable or applicable prior to any foreclosure under the Deed of Trust (to the full extent of such taxes, assessments or other charges); or be deemed in any way to limit the rights of the Holder to obtain specific performance by the Borrower of its covenants under the City Documents, other than the covenants to pay the Holder  principal and interest due under this Note.

8. Terms of Payment.
(a) All payments due under this Note shall be paid in currency of the United States of America, which at the time of payment is lawful for the payment of public and private debts.
(b) All payments on this Note shall be paid to Holder at the address set forth in the first paragraph of this Note, or to such other place as Holder of this Note may from time to time designate.
(c) All payments on this Note shall be without expense to Holder, and Borrower agrees to pay all costs and expenses, including reconveyance fees and reasonable attorney's fees of Holder, incurred in connection with the payment of this Note and the release of any security hereof.
(d) Notwithstanding any other provision of this Note, or any instrument securing the obligations of Borrower under this Note, if, for any reason whatsoever, the payment of any sums by Borrower pursuant to the terms of this Note would result in the payment of interest which would exceed the amount that Holder may legally charge under the 32 laws of the State of California, then the amount by which payments exceed the lawful interest rate shall automatically be deducted from the principal balance owing on this Note, so that in no event shall Borrower be obligated under the terms of this Note to pay any interest which would exceed the lawful rate.

9. Default.
(a) Any of the following shall constitute an event of default under this Note:
(i) Any failure to pay, in full, any payment required under this Note when due following written notice by the Holder of such failure and ten (10) days opportunity to cure;
(ii) Any failure in the performance by Borrower of any term, condition, provision or covenant set forth in this Note subject to the notice and cure period set forth in Section 10.1 of the AHLA; and
(iii) The occurrence of any Borrower event of default under the AHLA, the Deed of Trust, the Regulatory Agreement, or other instrument securing the obligations of Borrower under this Note or under any other promissory notes hereafter issued by Borrower to Holder pursuant to the AHLA or the Deed of Trust (the "City Loan Documents"), subject to notice and cure periods, if any, set forth therein. (b) Upon the occurrence of one or more of the foregoing events of default, the entire unpaid principal balance, together with all interest thereon, and together with all other sums then payable under this Note and the Deed of Trust shall at the option of Holder become immediately due and payable upon written notice by Holder to Borrower without further demand.
(c) Holder's failure to exercise the remedy set forth in Subsection 9(b) above or any other remedy provided by law upon the occurrence of one or more of the foregoing events of default shall not constitute a waiver of the right to exercise any remedy at any subsequent time in respect to the same or any other default.  The acceptance by Holder hereof of any payment which is less than the total of all amounts due and payable at the time of such payment shall not constitute a waiver of the right to exercise any of the foregoing remedies or options at that time or at any subsequent time, or nullify any prior exercise of any such remedy or option, without the express consent of Holder, except as and to the extent otherwise provided by law.
(d)  Notwithstanding anything herein to the contrary, Holder hereby agrees that any cure of any default made or tendered by one or more of Borrower's limited partners shall be deemed a cure by Borrower and shall be accepted or rejected on the same basis as if made or tendered by Borrower.  Copies of all notices which are sent hereunder to Borrower shall be sent to Borrower's limited partners at the address provided pursuant to Section 12.3 of the AHLA.
33 10. Waivers.
(a) Borrower hereby waives diligence, presentment, protest and demand, and notice of protest, notice of demand, notice of dishonor and notice of non-payment of this Note.  Borrower expressly agrees that this Note or any payment hereunder may be extended from time to time, and that Holder may accept further security or release any security for this Note, all without in any way affecting the liability of Borrower. (b) Any extension of time for payment of this Note or any installment hereof made by agreement of Holder with any person now or hereafter liable for payment of this Note shall not operate to release, discharge, modify, change or affect the original liability of Borrower under this Note, either in whole or in part.
(c) The obligations of Borrower under this Note shall be absolute and Borrower waives any and all rights to offset, deduct or withhold any payments or charges due under this Note for any reason whatsoever.

11. Miscellaneous Provisions.
(a) All notices to Holder or Borrower shall be given in the manner and at the addresses set forth in the AHLA, or to such addresses as Holder and Borrower may therein designate.
(b) Borrower promises to pay all costs and expenses, including reasonable attorney's fees, incurred by Holder in the enforcement of the provisions of this Note, regardless of whether suit is filed to seek enforcement. (c) This Note may not be changed orally, but only by an agreement in writing signed by the party against whom enforcement of any waiver, change, modification or discharge is sought.
(d) This Note shall be governed by and construed in accordance with the laws of the State of California.
(e) The times for the performance of any obligations hereunder shall be strictly construed, time being of the essence.
(f) This document, together with the City Loan Documents, contains the entire agreement between the parties as to the City Loan.  It may not be modified except upon written consent of the parties. Any terms used herein but not separately defined herein shall have the definitions set forth in the City Loan Documents.

IN WITNESS WHEREOF, Borrower is executing this Amended and Restated Promissory Note as of the date first above written.
34 THORNTON, L.P.,
a California limited partnership
By:   Satellite AHA Development, Inc.,
a California nonprofit public benefit corporation,
its general partner
By:      _______________________________
Name: Susan Friedland
Its: Chief Executive Officer
Approved by Holder:

CITY OF NEWARK
By: _______________________________
David Benoun, City Manager
ATTEST:

By:  _______________________________
Sheila Harrington, City Clerk
APPROVED AS TO FORM:

By:  _______________________________
Kristopher Kokotaylo
City Attorney
35 EXHIBIT “C”
RECONVEYANCE OF CITY DEED OF TRUST
[To Be Attached]
36 ,Recording requested by and when
recorded mail to:

City of Newark
37101 Newark Blvd.

Newark, CA 94560
Attn: City Clerk
EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§6103, 27383
Space above this line for Recorder’s use.

A.P.N.: _________________
SUBSTITUTION OF TRUSTEE AND FULL RECONVEYANCE
WHEREAS, the City of Newark, a municipal corporation (the “Beneficiary”), is the Beneficiary under that certain Deed of Trust With Assignment of Rents, Security Agreement and Fixture Filing (the “Deed of Trust”) dated as of ______________, executed by Thornton, L.P. as trustor (the “Trustor”), to Old Republic Title Company, as trustee (the “Trustee”), and recorded on April 28, 2023  as Instrument No. 2023048228 in the Official Records of the County of Alameda, State of California and affecting the real property described therein (the “Property”); WHEREAS, the Deed of Trust secures repayment of a loan payable to Beneficiary in the original principal amount of Twelve Million Dollars ($12,000,000); WHEREAS, concurrently with the recordation of this Substitution of Trustee and Full Reconveyance Trustor has conveyed the Property to Beneficiary; WHEREAS, the Beneficiary wishes to release and reconvey to the person or persons legally entitled thereto all rights and interests of the Beneficiary in the Property pursuant to the Deed of Trust; and
WHEREAS, the Beneficiary desires to substitute a new Trustee under the Deed of Trust in place and stead of Old Republic Title Company.

NOW THEREFORE, the Beneficiary hereby substitutes itself as Trustee under the Deed of Trust and hereby:  (i) reconveys to the person or persons legally entitled thereto, without warranty, all the estate, title and interest acquired by Trustee and by Beneficiary under the Deed of Trust in the Property; and (ii) authorizes the recordation of this instrument in the Official Records of Alameda County.
37 Dated:   ____________, 2025
City of Newark, a municipal corporation
By: ____________________________
David Benoun, City Manager
ATTEST:
________________________
Sheila Harrington, City Clerk
APPROVED AS TO FORM:
_________________________________
Kristopher Kokotaylo, City Attorney
SIGNATURES MUST BE NOTARIZED.
38 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California )
) ss.

County of _____________ )
On_____________________, 20____ before me, _____________________, a Notary Public,  in and for said State and County, personally appeared _______________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.
_______________________________
NOTARY PUBLIC
39 EXHIBIT “D”
TERMINATION OF REGULATORY AGREEMENT
[To Be Attached]
40 RECORDED AT THE REQUEST OF
AND WHEN RECORDED RETURN TO:

City of Newark
3101 Newark Boulevard
Newark, CA 94560
Attn: City Clerk
No fee for recording pursuant to
Government code Section 27383
TERMINATION OF REGULATORY AGREEMENT
This TERMINATION OF REGULATORY AGREEMENT (“Termination”) is entered into as of ______________, 2025, by and between the CITY OF NEWARK, a California municipal corporation (the “City”), and THORNTON, L.P., a California limited partnership (the “Owner”) (City and Owner are hereinafter referred to collectively as the “Parties”).

RECITALS
City and Owner have entered into a Regulatory Agreement and Declaration of Restrictive Covenants dated April 1, 2023 _________________ (the “Regulatory Agreement”) with respect to certain real property located at 6347 – 6375 Thornton Avenue, Newark, California (the “Property”).  The Regulatory Agreement was recorded in the official records of Alameda County on April 28, 2023, as Document No. 2023048277.

Owner is now granting the Property to City, and the Parties desire to terminate the Regulatory Agreement as of the date of City’s acquisition of the Property.

NOW, THEREFORE, in consideration of the above recitals, which are incorporated herein by this reference, and of the mutual covenants hereinafter contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

1. Termination.   From and after the date that this Termination is recorded against the Property, the Regulatory Agreement is hereby terminated, and the Property shall not be bound or burdened by any of the Regulatory Agreement.
41 IN WITNESS WHEREOF, City and Owner have executed this Termination as of the day and year set forth above.

CITY:

CITY OF NEWARK
By: ___________________________
David Benoun, City Manager
ATTEST:

By: _____________________________
Sheila Harrington, City Clerk
APPROVED AS TO FORM:

By: _____________________________
Kristopher Kokotaylo
City Attorney
OWNER:

THORNTON, L.P., a California limited partnership
By:  SAHA Thornton LLC,
a California limited liability company,
its general partner
By: Satellite Affordable Housing Associates,
a California nonprofit public benefit
corporation,
its sole member/manager
By: ______________________
Susan Friedland,
Chief Executive Officer
42 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California )
) ss.

County of ____________ )
On_____________________, 20____ before me, _____________________, a Notary Public,  in and for said State and County, personally appeared _______________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument  and  acknowledged to me that  he/she/they  executed the  same in  his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.
_______________________________
NOTARY PUBLIC
43 EXHIBIT “E”
FORM OF LEASE OPTION AGREEMENT
[To Be Attached]
44 OPTION AGREEMENT
This Option  Agreement  (this  “Agreement”)  is  made  and  entered  into  effective  as  of _______________,  2025  (the  “Effective  Date”),  between  the  City  of  Newark,  a  California municipal  corporation  (“Optionor”),  and  Thornton,  L.P.,  a  California  limited  partnership (“Optionee”).  Optionor and Optionee are sometimes individually referred to as a “Party” and collectively as the “Parties” in this Agreement.

RECITALS
A.  Optionor and Optionee have entered into an Affordable Housing Loan Agreement with  respect  to  certain  property  located  at  6347,  6361  and  6375  Thornton  Avenue,  Newark, California (the “Property”), dated as of April 1, 2023, as amended by the First Amendment to Affordable Housing Loan Agreement dated February __, 2025 (as amended, the “AHLA”).  The Property is more particularly described in Exhibit A attached hereto and incorporated herein.

B. In order to provide for the development of an affordable housing project on the Property (the “Development”), by this Agreement, Optionor is granting to Optionee the option and right to enter into a long-term lease of the Property for a nominal One Dollar ($1.00) per year rent, conditioned upon and subject to Optionee’s performance of certain criteria relating to the implementation of the development plan for the affordable housing project.

NOW, THEREFORE, the Parties agree as follows:

1. Grant of Option.  Optionor hereby grants to Optionee the right and option to lease from Optionor that certain real property described in Exhibit “A”, conditioned upon and subject to Optionee’s satisfaction of the conditions and performance of its obligations as set forth in Section 4 below, as reasonably determined by Optionor (the “Option”).

2. Option  Term;  Exercise  of  Option.    Optionee  may  exercise  the  Option  by providing Optionor with written  notice  of  exercise  (“Exercise Notice”)  at  any time  during the Option  Term  (as  defined  below),  provided,  however, that  as  a  condition to the  exercise  of the Option,  Optionee  shall  have  satisfied the  conditions  and  performed its  obligations  set  forth in Sections 4.1 through 4.10 below in all material respects, as reasonably determined by Optionor.

The  date that the Exercise Notice is  given  by Optionee to Optionor  during the Option Term is referred to  herein as the “Exercise Date.”  For  purposes  of this Agreement, the term “Option Term”  shall  mean  the  period  commencing  on  the  Effective  Date  and  ending  June  30,  2027.

Optionee shall have the right to exercise two one year extensions of the Option Term, which may be exercised upon written notice to Optionor, the effectiveness of which shall be conditioned upon Optionee being in compliance with this Agreement and the AHLA as of the date of the notice and the date that the extension would take effect.  Within thirty (30) days after Optionee’s delivery of an Exercise Notice, Optionor shall determine whether Optionee has satisfied all of the conditions and performed its obligations set forth in Sections 4.1 through 4.10 below, and shall deliver written notice thereof to Optionee (which determination shall not be unreasonably withheld, conditioned or delayed).  Within thirty (30) days after Optionor’s written notice that all such conditions and obligations have been satisfied, Optionor shall deliver to Optionee a form of ground lease of the Property  which  contains  all  of the terms  and  conditions  required  pursuant to  Section  3  of this 45 Agreement  (the  “Ground  Lease”).    The  Parties  shall  use  good  faith  efforts  to  negotiate  and mutually agree upon the final form of the Ground Lease, and shall thereupon execute the mutually agreed upon Ground Lease.  The executed Ground Lease shall supersede the Temporary Lease in its entirety as of the Commencement Date of the Ground Lease; provided that the Parties shall remain responsible for performance of any obligations which arose under the Temporary Lease at any time prior to the Commencement Date of the Ground Lease.

3. Preparation of Ground Lease.  The Ground Lease shall include the following terms and conditions:
a.  The Ground Lease shall have a term of not less than 99 years from the effective date of Ground Lease.
b.  Annual rent will be One Dollar ($1.00).  Lessee agrees to pay Lessor a onetime rent payment in advance, on the Effective Date of Ground Lease in the amount of the full amount of rent due for the term.
c.  The Ground Lease will require that construction of the Development will be in accordance with all of the requirements of Article III of the AHLA. d.  The Ground Lease will require compliance with the schedule of performance attached to the AHLA, as such schedule of performance may be amended. e.  Lessor shall have authority to consent to all liens, encumbrances, and clouds on title of the Property and Development in accordance with Article IV of the AHLA and the Revised Financing Plan.
f.  The Ground Lease shall require that during the term of the Ground Lease the Optionee shall own fee title to all of  the improvements constructed on the Property, and that fee title to such improvements shall revert to Optionor at the expiration or termination of the term of the Ground Lease.
g. The Ground Lease will permit the Optionee to encumber its leasehold interest in the Property to secure any loans deemed necessary by the Optionee, as approved by Optionor.  Any funds from a loan secured by the leasehold interest must be used in or on the Property. The Ground Lease will not permit such loans to encumber the Optionor’s fee interest in the Property.
h.  The Ground Lease shall include standard mortgagee protection provisions.

4. Conditions Precedent to Exercise of Option.  Optionee’s right to exercise the Option is conditioned upon Optionee’s satisfaction of the conditions and performance of its obligations set forth below in this Section 4 in all material respects. 46 4.1 Construction Plans.  Optionor has approved the Construction Plans for the construction of the Development and development of the Property pursuant to Section 3.9 of the AHLA.

4.2 Close of Construction Financing.  Optionee shall have provided to Optionor evidence reasonably satisfactory to Optionor that adequate financing (including equity funding, construction financing, and governmental loans and grants) is available to ensure the construction of the Development at the time and in the manner set forth in the Revised Financing Plan.

4.3 Construction Contract.  Optionee shall have entered into, or shall provide satisfactory evidence that it is prepared to enter into, general construction contract(s) for the Development in accordance with the requirements of the Ground Lease.

4.4 Insurance.  Optionee shall have submitted to Optionor evidence of the insurance policies required pursuant to the Ground Lease.

4.5 Bonds and Security.  Optionee shall have submitted to Optionor its proposed form of payment and performance bonds or alternate security in the form required by the Ground Lease.

4.6 Construction to Commence.  Optionor shall be reasonably satisfied that construction of the Development is ready to commence in the time and manner referred to in the construction schedule referred to in Section 4.1 above and thereafter shall be pursued to completion in a diligent and continuous manner.

4.7 Surplus Land Act Requirements.  Optionor shall have timely made all submissions to HCD and shall have resolved to the satisfaction of Optionor any objection or challenge by HCD regarding compliance with the Surplus Land Act, and there shall be no outstanding notice of violation of the Surplus Land Act from HCD.

4.8 No Default.  No Event of Default of this Agreement, the AHLA or the Temporary Lease by Optionee shall then exist, and no event shall then exist which, with the giving of notice or the passage of time or both, would constitute an Event of Default by Optionee.

4.9 No Litigation.  No litigation or other administrative or judicial proceeding that would materially affect Optionee’s ability to carry out its obligations with respect to the Development or the Property shall have been filed or be pending.

4.10 Representations and Warranties.  The representations of Optionee contained in this Agreement, the AHLA and the Ground Lease shall be correct in all material respects as of the Ground Lease Commencement Date as though made on and as of that date and, if requested by Optionor, the Optionor shall have received a certificate to that effect signed by Optionee.

47 5. Notices.   Any  notice  required  or  authorized to  be  given  hereunder  or  any  other communications between the Parties provided for under the terms of this Agreement shall be in writing and shall be served personally or by reputable express overnight courier service or by U.S. certified mail, return receipt requested, in each case addressed to the relevant parties at the address stated below or at any other address notified by that Party to the other as its address for service.

Notice given in accordance herewith shall be effective upon receipt at the address of the addressee, as  evidenced  by the  executed  postal  receipt  or  other  receipt  for  delivery.  Notice  of  change  of address shall be given by written notice in the manner detailed in this Section.  Any notice shall be addressed as follows:

If to Optionor:

City of Newark
37101 Newark Blvd
Newark, California  94560
Attention: ____________________
with a copy to City Attorney
If to Optionee:

Thornton, L.P.
c/o Satellite Affordable Housing Associates
1835 Alcatraz Avenue
Berkeley, California  94703
Attention: Chief Executive Officer
with a copy to:

Gubb & Barshay LLP
235 Montgomery Street, Suite 1110
San Francisco, CA 94104
Attn: Erica Williams Orcharton

6. Assignment.  Optionee shall have the right to assign its rights and obligations under this Agreement to any entity that is permitted or approved by Optionor pursuant to Article 7 of the AHLA.

7. Entire  Agreement.    This  Agreement  together  with  the  Exhibits  attached  hereto supersedes  any  prior  agreement  or  understanding  between  the  Parties  and  contains  the  entire agreement  of  the  Parties  concerning  the  subject  of  this  Agreement  together  with  the  Exhibits attached hereto; provided that this Agreement does not modify or supersede the Temporary Lease, which shall remain in effect in accordance with its terms.

8. Optionee  Default.    Optionee’s  failure  to  perform  any  material  obligation  of Optionee set forth in this Agreement shall constitute an “Optionee Default” under this Agreement unless Optionee cures such failure within thirty (30) days after delivery of written notice of such 48 failure given by Optionor to Optionee; provided, however, if such failure by its very nature is not reasonably capable of being cured within said thirty  (30) day period, then no Optionee Default shall exist so long as Optionee commences to cure such failure within thirty (30) days after delivery of  written  notice  of  such  failure  to  Optionor  and  thereafter  diligently  prosecutes  such  cure  to completion within ninety (90) days of delivery of such written notice.  In the event of an Optionee Default that  remains uncured as provided above, Optionor shall have the  right to terminate the Option and this Agreement effective upon written notice from Optionor to Optionee.

9. Attorney’s Fees.  In the event of any dispute or litigation arising in relation to this Agreement, the prevailing party shall be entitled to its reasonable attorney’s fees and expenses.

10. Governing Law.  This Agreement and any lease of the Property by Optionee shall be governed by the law of the state in which the Property is located, notwithstanding any conflict of law provisions to the contrary.

11. No Third Parties Benefitted.  The terms and provisions of this Agreement are for the sole benefit of Optionor and Optionee, and no third party is intended to benefit herefrom.

12. Memorandum of Option.  This Agreement will not be recorded.  Concurrently with the execution of this Agreement, Optionor and Optionee shall execute a Memorandum of Option Agreement (the “Memorandum”) in the form attached hereto as Exhibit “B”, which Optionee shall have the right to record in the Official Records of Alameda County.  Upon the termination  of  this  Agreement,  Optionee  shall  promptly  (and  no  later  than  ten  (10)  days following Optionor’s written request) execute and record a Memorandum of Termination of Option  Agreement  or  other  instrument  of  termination  reasonably  satisfactory  to  Optionor removing the Memorandum of record.

13. Counterpart Originals.  This Agreement may be executed, and any memorandum thereof recorded, in two or more counterparts, each of which shall be deemed an original and all of  which,  when  taken  together,  shall  constitute  one  and  the  same  instrument.    Facsimile  of signatures and copies of signatures sent by electronic pdf shall have the same force and effect as original signatures and each Party shall be entitled to rely upon executed copies of this Agreement transmitted by facsimile and/or electronic pdf to the same and full extent as the originals.

14. Brokers.  Optionor and Optionee each represent and warrant to the other that it has had no dealings with any person, firm, broker or finder in connection with the negotiation of this Agreement and/or the consummation of the transaction contemplated hereby, and that no broker or other person, firm or entity is entitled to any commission or finder’s fee in connection with said transaction.  Optionor and Optionee do each hereby agree to indemnify, protect, defend and hold the other harmless from and against liability for compensation or charges which may be claimed by any broker, finder or other similar party by reason of any dealings or actions of the indemnifying party, including any costs, expenses, attorneys’ fees reasonably incurred with respect thereto.

15. Authority.  Optionor and Optionee hereby represent to the other that:  (i) such party validly exists and is in good standing and qualified to do business in the State of California, (ii) such party has full right and authority to enter into this Agreement, (iii) each person signing 49 on behalf of such party is authorized to do so, and (iv) the execution and delivery of this Agreement by such party will not result in any breach of, or constitute a default under any mortgage, deed of trust, lease, loan, credit agreement, partnership agreement or other contract or instrument to which such party is a party or by which such party may be bound.

16. No Waiver.  No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver.  No waiver shall be binding unless executed in writing by the party making the waiver.

17. Action or Approval.  Except as may be otherwise specifically provided in this Agreement, whenever any approval, notice, direction, finding, consent, request, waiver, or other action by the Optionor is required or permitted under this Agreement, such action may be given, made, or taken by the City Manager, or by any person who shall have been designated in writing by the City Manager, without further approval by the City Council.  Any such action shall be in writing.

IN WITNESS WHEREOF, the  Parties  hereto  have  caused this Agreement to  be  duly executed by their respective authorized representatives as of the Effective Date.

OPTIONOR:

City of Newark,
a California municipal corporation
By___________________________________
David Benoun, City Manager
ATTEST:
__________________________
Sheila Harrington, City Clerk
APPROVED AS TO FORM:
__________________________
Kristopher Kokotaylo, City Attorney
OPTIONEE:

Thornton, L.P.,
a California limited partnership
50 By:    SAHA Thornton LLC,
a California limited liability company,
its general partner
By: Satellite Affordable Housing
Associates, a California nonprofit
public benefit corporation, its sole
member/manager
By:____________________________
Susan Friedland,
Chief Executive Officer

Exhibit A
Exhibit A
Legal Description
ATTACHMENT G
52 Exhibit B
Form of Memorandum of Option Agreement
WHEN RECORDED, MAIL TO:

APN:  __________________
MEMORANDUM OF OPTION AGREEMENT
This Memorandum of Option Agreement (this “Memorandum”) is made effective as of ___________, 2025 (the “Effective Date”), between the City of Newark, a California municipal corporation (“Optionor”), and Thornton, L.P., a California limited partnership (“Optionee”).

RECITALS
A. Optionor  is  the  owner  of  certain  premises  located  within  the  City  of  Newark, California (the “Property”), more particularly described on Attachment No. 1 hereto.

B. Optionor and Optionee have entered into that certain unrecorded Option Agreement dated __________, 2025 (the “Option Agreement”), pursuant to which Optionor has granted to Optionee an exclusive option to lease the Property on the terms and conditions set  forth in the Option Agreement (the “Option”).

C. Optionor and Optionee desire to execute this Memorandum and cause the same to be  recorded  in  the  Official  Records  of  the  County  of  Alameda,  California  for  the  purpose  of providing constructive notice of the Option and the Option Agreement.

NOW THEREFORE, Optionor and Optionee agree as follows:

1. Pursuant to the Option Agreement, Optionor has granted to Optionee an exclusive option to lease the Property on the terms and conditions set forth in the Option Agreement.

2. The  Option  granted  by  the  Option  Agreement  is  exercisable  for  a  period commencing  on  ___________,  2025  and  ending  June  30,  2027,  with  two  one  year  extension options (the “Option Term”), unless sooner expired or terminated in accordance with the terms of the Option Agreement.

3. This  Memorandum  is  for  the  purpose  of  providing  record  notice  of  the  Option Agreement only.  Nothing herein shall be deemed to modify, amend or otherwise affect the terms ATTACHMENT G
53 and  conditions  of  the  Option  Agreement,  and  in  the  event  of  any  inconsistency  between  the provisions  of  this  Memorandum  and  the  Option  Agreement,  the  provisions  of  the  Option Agreement shall prevail.

IN WITNESS WHEREOF, Optionor and Optionee have executed this Memorandum as of the date referred to above.

OPTIONOR:

City of Newark
By___________________________________
David Benoun, City Manager
ATTEST:
__________________________
Sheila Harrington, City Clerk
APPROVED AS TO FORM:
__________________________
Kristopher Kokotaylo, City Attorney
OPTIONEE:

Thornton, L.P.,
a California limited partnership
By:    SAHA Thornton LLC,
a California limited liability company,
its general partner
By: Satellite Affordable Housing
Associates, a California nonprofit
public benefit corporation, its sole
member/manager
By:___________________________
Susan Friedland,
Chief Executive Officer
ATTACHMENT G
54 ATTACHMENT NO. 1
Legal Description of the Property
That real property in the City of Newark, County of Alameda, State of California, described as follows:
6361 Thornton Avenue:

Portion of Lot 23, Block "J", Map of Newark Acres, flied December 8, 1916, Map Book 16,