A-49
The Uptown Newport project introduced a high-density residential, mixed use project—up to 1,244 residential units, 11,500 square feet of neighborhood-serving retail space, and two acres of park space—in the Airport Business Area of the city and consistent with the City of Newport Beach’s 2006 adopted General Plan. The project will be developed in two phases—Phase 1 broke ground in 2017 and Phase 2 was expected to begin around 2022.
The plan presented unique land use compatibility issues, both internal and external to the project boundaries. Although surrounded by office uses, the project site accommodates a semiconductor manufacturing facility (TowerJazz). Phase 1 residences will be within 50 feet of the semiconductor facility for up to nine years if the TowerJazz lease option is extended to 2027. City regulations prohibit residential adjacency to extremely hazardous chemicals and residential compatibility with 24-hour/7-day industrial noise levels of up to 74 dBA CNEL. Projectrelated construction vibration impacts could significantly impact sensitive manufacturing equipment in the industrial use, and complete site remediation of groundwater and soil hazards cannot be completed until demolition of the manufacturing facility in Phase 2.
UPTOWN NEWPORT EIR
Residential Mixed Use on an Industrial Site
Project Type
Environmental Impact Report
Location
Newport Beach, California
Size
25.05 acres
Client
City of Newport Beach
Date Completed
February 2013 [constructed 2019]
Services Provided
EIR Preparation, Technical Studies,
Noticing, Public Hearing Presentation
A-50
PlaceWorks
Figure 3-3 - Aerial Photograph
Source: Nearmap, 2019
3. Project Description
0 Scale (Feet)
Project Boundary 350
Pacific Island Dr
Crown Valley Pkwy
Alicia Pkwy
Highlands Ave
Paseo Del Valle
Via Venida
Via Corona
Via Reata
Via Valle
Via Estori
Niguel Rd
Running Deer Ln
Town Center Dr
Mirador Ct
OC Library
City
Hall
South County
Justice Center
(Closed)
Residential
Commercial
Laguna Niguel
Presbyterian Church
Niguel Summit
Condominiums
Residential
Orange County Fire Authority
Fire Station #5
County
Maintenance
Yard
Pacific Island
(Commercial)
Town Center
(Commercial)
Town Center
(Commercial)
Crown Valley Mall
El Niguel
(Residential)
Charter Terrace
(Residential)
LAGUNA NIGUEL NEW TOWN CENTER MIXED USE PROJECT DRAFT EIR
CITY OF LAGUNA NIGUEL
The vision of the Laguna Niguel City Center Mixed Use Project is to create a “downtown” environment that features specialty retail, restaurants, and office; a “town green” / event space; a new community library; integrated apartment homes; and extensive walkable open spaces, paseos, and plazas. The larger, relocated library will be the “central jewel” of the project. The applicant worked for over a year with the Friends of the Library, who vehemently opposed the project at first, to resolve their concerns. At the public hearings, the Friends of the Library director and county librarian testified their strong support and excitement for the project.
The project came to a halt with the onset of COVID-19, and when it restarted, numerous changes, including the site plan and regulations, required major revisions to the EIR. The city received multiple lengthy and technically complex comment letters from a few project opponents that required substantial, reiterative responses from the project team (a coordinated effort by PlaceWorks, the City, and the applicant’s legal, design and technical teams). At the final public hearing a strong majority of residents voiced enthusiastic approval of the project, and the city council voted unanimously to adopt the project and certify the EIR.
LAGUNA NIGUEL NEW TOWN CENTER EIR
A Long-Awaited City Center
Project Type
Environmental Impact Report
Location
Laguna Niguel, California
Size
25 acres; 175,000 square feet
commercial and civic uses; 275
multifamily units
Client
City of Laguna Niguel
Date Completed
June 2022
Services Provided
Draft and Final EIR; Public Hearings;
Air Quality, GHG, and Noise Technical
Studies
A-51
The River Street Marketplace will develop 61,000 square feet of commercial and office space in five buildings designed with “agrarian” themed architecture. The buildings will surround a common area with community amenities such as grassy play areas, outdoor dining, seating areas, bocce ball and horseshoe courts, and a vegetable garden. The project faces intense public scrutiny—many residents have lived in the area for decades. Potential areas of environmental concern are:
• The aesthetics and visual character of the project and its compatibility with its specific plan, a historic district, and surrounding low-key residential and commercial.
• The number and types of trips created in a low density, historic area with low-speed, narrow streets.
• Construction and operational noise impacts on adjacent residents and businesses.
• Construction-related vibration impacts to adjacent older buildings.
PlaceWorks proposed a full-scope EIR and detailed technical studies, including a special analysis of the project’s potential impacts to the Los Rios National Historic District and nearby historical resources.
RIVER STREET MARKETPLACE EIR
Compatibility with Historic Resources
Project Type
Environmental Impact Report
Location
San Juan Capistrano, California
Size
5.6 acres
Client
City of San Juan Capistrano
Date Completed
2019
Services Provided
Environmental Impact Report, Air
Quality and Greenhouse Gas Emissions
Analysis, Visual-Aesthetic Simulation
Analysis, Noise and Vibration Analysis
A-52
Proposed View 2 (5-year landscaping)
Proposed View 2 (landscaping at installation)
Existing View 2
Hyatt Regency Newport Beach Expansion Final EIR
Source: Fuscoe Engineering
Proposed View 2 (5-year landscaping)
Proposed View 2 (landscaping at installation)
Existing View 2
PlaceWorks prepared a project-level environmental impact report and supporting air quality, climate change, noise, and hazards assessments for the Hyatt Regency Newport Beach Hotel expansion. The project added 88 timeshare units, a new 800-seat ballroom, and a two-level parking garage. Implementation required demolition of the existing ballroom and 12 rooms and removal of the 9-hole golf course.
The project was subject to additional regulations for the Coastal Zone and a Coastal Commission interpretation of whether timeshares were allowed. It is also adjacent to the Newport Back Bay Preserve area and could potentially impact sensitive resources—including occupied California gnatcatcher habitat—and Newport Bay water quality. Another issue was nearby residences, including a senior housing project.
Construction-related air quality, noise and traffic, and parking impacts were analyzed in great detail. Newport Beach residents were very vocal about aesthetic impacts, so we created numerous visual simulations.
The EIR also incorporated the findings and mitigation of the fire protection plan and fire behavior modeling. The project team responded to lengthy, last-minute comment letters at the public hearing to address controversial issues and achieve certification of the EIR.
HYATT REGENCY NEWPORT BEACH
Analyzing the Impacts of Expansion
Project Type
Environmental Impact Report
Location
Newport Beach, California
Size
25.7 acres
Client
City of Newport Beach
Date Completed
February 2010
Services Provided
EIR preparation, noise, air quality,
climate change, hazards assessment
“Very nice job of
responses to the
[opposing city’s]
last minute, 41-page
comment letter last
night.... You guys must
have really had to
scramble! Your Air and
Noise gal did a very good
job, too. And I hope your
clients are as happy as
you must be that you did
such a thorough job with
the EIR in the first place.”
Barry Eaton
Planning Commissioner
City of Newport Beach
A-53
The Newport Crossings Mixed Use Residential project is proposed in the designated Airport Area of the City’s General Plan and the Newport Place Planned Community (PC-11). The applicant proposes development of 350 residential units, 2,000 square feet of “casual dining” restaurant space, 5,500 square feet of commercial space, and a one-half acre public neighborhood park on a 5.69-acre project site.
At first glance, the project may appear straight-forward because the proposed uses do not require a general plan amendment or zoning code amendment. Therefore, it does not require review by the Airport Land Use Commission. However, the fact that the proposed project does not need a General Plan Amendment does not mean it is consistent with the overall goals, policies, and intent of the General Plan.
PlaceWorks approach was to coordinate CEQA requirements of technical studies prepared by others at the outset. This required parallel analyses.
Early coordination assured that no time was lost. PlaceWorks coordinated with the City and subconsultants to ensure that the scope meets CEQA requirements for existing conditions; related projects (vs. committed projects); and phasing, demolition, and construction impact analysis.
NEWPORT CROSSINGS EIR
CEQA Analysis for a Mixed Use Residential Project
Project Type
Environmental Impact Report
Location
Newport Beach, California
Size
5.69-acre
Client
City of Newport Beach
Date Completed
February 2019
Services Provided
Initial Study, Notice of Preparation,
and Scoping Meeting, EIR,
Response to Comments, Mitigation
Monitoring and Reporting Program,
Findings of Fact and Statement of
Overriding Considerations, Notice of
Determination, Meetings and Public
Hearings, Air Quality and Greenhouse
Gas Emissions Analyses, Noise and
Vibration Analysis, Peer Review of
Applicant-Provided Technical Studies
A-54
Merlone Geier Partners proposed a mixed-use development for the nearly shuttered, 68-acre Laguna Hills Mall. The project’s 1,500 residential units, 465,000 square feet of office, 250,000 square feet of new retail, and 150-room hotel surround a Main Street component, with a walkable pattern of new blocks connecting to surrounding arterial roadways. This is the largest infill opportunity in this built-out community, and the mall was a popular community gathering place. It is absolutely imperative that this project “get it right.” So the city asked PlaceWorks to lead reviews of the site plan, architectural design, and landscape design according to our professional design expertise, and for a consistency analysis with the city’s general plan and specific plan.
We were also asked to conduct a peer review of the applicant team’s addendum to the 2009 General Plan EIR. The project’s history included four previous addenda and its location in a 20-year-old specific plan area. Our review resulted in better documentation and bettersubstantiated impact significance conclusions. We ensured that baseline conditions were properly defined and construction and demolition impacts adequately assessed as well as ensuring compliance with new CEQA guidelines.
THE VILLAGE AT LAGUNA HILLS PEER REVIEW
Full Service Environmental and Design Review
Project Type
Peer Review for Site Design,
Architecture, Landscape Design, and
Environmental
Location
Laguna Hills, California
Size
68 acres
Client
City of Laguna Hills
Date Completed
March 2022
Services Provided
Peer Review of CEQA Documents and
Technical Studies for Air Quality/GHG,
Noise/Vibration, Water Quality and
Hydrology Plan, Cultural Resources,
and Biological Resources; General Plan
and Specific Plan Consistency Analysis;
and Site, Architectural, and Landscape
Architectural Design Review
A-55
The Beach Boulevard Specific Plan is the result of a focused and comprehensive effort involving the City of Anaheim and the West Anaheim Community. This plan guides future development along a
1.5-mile stretch of Beach Boulevard between the cities of Buena Park and Stanton. Supported by modern development standards, economic and sustainable community development incentives, and capital improvements, the plan holistically addresses the future of Beach Boulevard—the heart of West Anaheim.
Though designated a “high quality transit corridor,” Beach Boulevard still functions primarily for motor vehicles, and nonmotorized modes such as walking and biking are not well integrated. The intent of the plan is to create a new regulatory environment, land use plan, development incentives, and streetscape enhancements to improve conditions along the boulevard and attract economic investment to the area.
The plan’s vision and guiding principles were created with the community and reflect the themes that emerged throughout the process. Public involvement included in-person and online components.
The project was approved by a unanimous city council vote in November 2018.
BEACH BOULEVARD CORRIDOR
A Specific Plan and EIR for The Heart of West Anaheim
Project Type
Specific Plan, Environmental Impact
Report
Location
Anaheim, California
Size
1.5 miles
Client
City of Anaheim
Date Completed
November 2018
Services Provided
Specific Plan, Community Outreach,
EIR
A-56
PlaceWorks prepared an environmental assessment and mitigated negative declaration for a proposed police communications tower.
The tower was 195 feet tall and supported antennas for several radio and microwave communications systems in order to enhance communications between law enforcement and fire protection agencies across much of the Los Angeles Basin and Inland Empire.
The environmental documents assessed the potential hazards of electromagnetic radiation from the antennas. These were found to be less than significant, because the nearest areas where people would have continuous long-term exposure to radiation were about 1,000 feet from the project site.
The project site was in a city corporation yard, only a quarter mile from Cable Airport in Upland, and in an area where height is regulated by the Federal Aviation Administration (FAA). Each environmental document for the project contained mitigation requiring evidence of compliance with FAA regulations before a building permit could be issued for the project.
NEW POLICE COMMUNICATIONS TOWER
Improving Public Services
Project Type
Environmental Clearance (CEQA and
NEPA)
Location
Claremont, California
Size
195 feet tall; 1,300 sq. ft.
Client
City of Claremont
Date Completed
November 2012
Services Provided
Initial Study and Mitigated Negative
Declaration (CEQA), Environmental
Assessment (NEPA)
A-57
The purpose of this specific plan was to revitalize the unincorporated West Carson community through improved access to transit, housing, and jobs and a healthier and safer environment for walking and biking.
The Carson Street corridor is a crowded hub of activity—a high traffic thoroughfare, a main rapid-transit corridor, and a busy pedestrian route. These factors, as well as vacant and underutilized land, make West Carson an ideal candidate for transit-oriented development opportunities.
The specific plan effort identified opportunity sites and tested the financial feasibility of different development scenarios. It developed strategies to attract community reinvestment, create a sense of identity, and connect uses and neighborhoods. The document has standards for zoning and land use, a mobility strategy, design guidelines, a CIP, and an implementation strategy for the TOD area. PlaceWorks also prepared the supporting EIR.
Residents and visitors will take better advantage of transportation infrastructure and mobility enhancements. Many stakeholders are working together to guide transit-oriented development and create a distinct identity for the West Carson community.
WEST CARSON TOD SPECIFIC PLAN & EIR
New Opportunities for Revitalization
Project Type
Specific Plan and EIR
Location
West Carson, California
Size
195 feet tall; 1,300 sq. ft.
Client
County of Los Angeles, Department of
Regional Planning
Date Completed
December 2018
Services Provided
Land Use Planning, TOD Station
Planning, Specific Plan, Market
Analysis, Infrastructure Analysis,
Mobility, Design Guidelines,
Implementation and Financing, EIR
[ 178 ] CHAPTER 4. MOBILITY AND PUBLIC REALM
SCALE: 1”=20’
‘MARINA’ STRAWBERRY
TREE 20’O.C.
AUSTRALIAN
WILLOW 180’O.C.
BIKE SHARROWS
4’6” DG PLANTER
TYP RECOMMENDED
SILVA CELL
SEATING AREA
COAST LIVE OAK @
100’ O.C.
WILLOW
PITTOSPORUM @
100’ O.C.
LOW SHRUB
6”-2’
6’ PLANTER TYP @45
DEGREES
LOW-MED SHRUB
1’-2’6”
MEDIUM SHRUB
2’6”-3’6”
Figure 4.20 Street Trees: 220th Street (West of Vermont Avenue)
A-58
In 2012 PlaceWorks assisted the City of Irvine with a streamlined guidance manual to ensure the quality, accuracy, and completeness of environmental documents; provide a framework for consistent review of projects; establish a uniform environmental review process.
The project team updated and consolidated the city’s CEQA procedures and technical guidelines into a single resource document. Input from developers, business owners, and representatives of almost every city department went into the creation of this one-stop shop of CEQA procedures, guidelines, thresholds, and methodology for city staff and consultants. PlaceWorks also assisted with the 2020 update to this manual.
The Irvine CEQA Manual is organized into three sections—procedures, environmental analysis guidelines, and technical information—and technical appendices. Because the majority of CEQA documents in Irvine follow a tiered style of analysis, the manual includes a unique, stepby-step flow chart, which references where to find the information to complete each step. This meticulous organization imposes clarity on a sometimes fiendishly confusing process.
IRVINE CEQA MANUAL
“One-Stop Shop” for CEQA Practitioners
Project Type
Guidance Manual
Location
Irvine, California
Size
Citywide
Client
City of Irvine
Date Completed
June 2012 | Update Adopted June 2020
Services Provided
Environmental Planning
Awards
2014 Merit Award for an Environmental
Resource Document | AEP California
CEQA Manual
City of Irvine
DRAFT VOLUME I. CEQA PROCEDURES
PREPARED BY: CITY OF IRVINE June 2020
A-59
“A Practical Guide to the California Environmental Quality Act” has gone through several versions since we introduced it in 1987, but it has always upheld its primary purpose—to elucidate the CEQA process.
The latest edition is no exception. It outlines the fundamental process and principles of CEQA in simple language, citing the various codes for further reference and providing charts to illustrate processes. A ‘’Focus On...’’ section explains in more detail such complicated issues as water supply and mitigation measures. An FAQ section, glossary, and resources section cover an array of environmental issues. We’ve revised the guide to reflect the inevitable minor changes as well as more notable changes in response to California court decisions and new global warming legislation (e.g., AB 32, SB 275).
“A Practical Guide to CEQA” has found its way to college classrooms and planning department counters, and it’s a familiar feature on many department and agency desks. The guide and its graphics are the foundation for CEQA training workshops hosted by PlaceWorks to help clients, agencies, students, and others in the industry understand basic CEQA and the environmental review process.
A PRACTICAL GUIDE TO CEQA, 6th EDITION
CEQA and NEPA Clearance for Pacific Electric Park
Project Type
CEQA / Publication
Project Director
Dwayne Mears
Date Completed
2019 (6th Edition)
Project Effort
CEQA Research and Development,
Publication Preparation, Training
Workshops
Awards
2020 Outstanding Planning Award for
Environmental Resource Document,
AEP California (6th ed.)
2010 Merit Award for Public
Involvement/Education Program, AEP
California (4th ed.)
Santa Ana Corporate Headquarters
3 MacArthur Place, Suite 1100, Santa Ana, CA 92707
714.966.9220 (reach staff in any office)
Additional Offices
Los Angeles | Inland Empire | Central Coast | Bay Area | Sacramento PLACEWORKS.COM
City Council
STAFF REPORT
Date: April 19, 2023 Agenda Item:
2.G.
To: Honorable Mayor and City Council Members
Prepared By: Chad Blais, Public Works Director
Department: Public Works
SUBJECT:
Execution of a Cooperative Agreement between the City of Norco, the Riverside County Flood Control & Water Conservation District, and CRP LDF Palomino, LLC for the South Norco Channel (Stage 2)
RECOMMENDATION:
Approve the Cooperative Agreement between the City of Norco, the Riverside County Flood Control & Water Conservation District, and CRP LDF Palomino, LLC for the South Norco Channel (Stage 2).
SUMMARY:
The Riverside County Flood Control & Water Conservation District (RCFC&WCD) is requiring the Developer and the City to enter into a Cooperative Agreement for an encroachment permit that outlines the Developer's responsibility to maintain the storm drain crossing and make any repairs as needed and outlines the City's role as the local enforcement agency to make sure the Developer maintains the storm drain crossing.
BACKGROUND:
The legal owner of the Palomino Business Park (Developer) is located within the City of Norco and approximately bounded by Second Street to the north, Mountain Avenue to the East, First Street to the south and Pacific Avenue to the west. Pursuant to the conditions of approval for the proposed development of Tract Map No. 37681, the Developer must construct certain storm water quality facilities (storm drains) to implement water quality treatment measures for flows emanating from Developer's planned development. One section of the proposed storm drain that will carry storm water from the development to the water quality basin, located south of First Street, will cross under the flood control channel (see Exhibit A). The Riverside County Flood Control & Water Conservation District has reviewed the storm drain plans for the development and has indicated the storm drain crossing under the existing channel poses a potential future risk if the storm drain piping under the flood channel is not properly maintained.
Therefore, the RCFC&WCD is requiring the Developer and the City to enter into a Cooperative Agreement for an encroachment permit (see Cooperative Agreement). This Cooperative Agreement for Encroachment Permit 3998 outlines the Developer's responsibility to maintain the storm drain crossing and make any repairs as needed to ensure the Flood Channel is not compromised. The agreement also outlines the City's role as the local enforcement agency to make sure the Developer maintains the storm drain crossing.
FISCAL IMPACT:
There is no financial impact to execute this cooperative agreement.
RELATIONSHIP TO STRATEGIC PLAN:
Design of these multiple water mainline replacement project is consistent with Strategic Direction #5 - Infrastructure & Asset Management: Ensure timely preservation, replacement, improvement and acquisition of infrastructure and capital assets.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):
Exhibit A
Cooperative Agreement
STOP STOP
STOP
PALOMINO RANCH
PHASE 2A
LOT 3
BUILDING 3
FUTURE
BUILDING A
FUTURE
BUILDING B
FUTURE
BUILDING C
FIRST STREET
PROP. 54" RCP
S=0.20%
(PRIVATE)
PROP. 42" RCP
(PUBLIC)
FUTURE 42" RCP
(PUBLIC)
FUTURE CONNECTION
42" RCP INV=582.77± @ NGVD2942" RCP INV=±585.26± @ NAVD88 CHANNEL FL=INV-1'
CHANNEL CROSSING54" RCP FL=572.9654" RCP TP=578.21 @ NGVD2954" RCP TP=580.70 @ NAVD88
CHANNEL CROSSING
8" SWR FL=577.268" SWR TP=577.93 @ NGVD298" SWR TP=580.42 @ NAVD88 PROP. 8" SWR
S=0.50%
(PRIVATE)
EX. 21" SWR
PROP. 8" SWR
S=0.33%
(PRIVATE)
PROP. RCFCD
S. NORCO CHANNEL
W=20'
50'
50'
R/W R/W
R/W R/W
PROP. ESMT.
PROP. ESMT.
MOUNTAIN AVENUE
PALOMINO RANCH
PHASE 2A
LOT 4
BUILDING 4
PALOMINO RANCH
PHASE 2A
LOT 5
BUILDING 5
PALOMINO RANCH PHASE 2A
LOT 11
BUILDING 11
LOT LINE
EX. 15'
SWR ESMT.
Phone: 714.665.4500
Tustin California 92780-1947
17782 17th Street Suite 200
®
NORCO, CA
RIVERSIDE COUNTY, CA
JANUARY 2022
EXHIBIT A
PALOMINO RANCH / S. NORCO CHANNEL CROSSING EXHIBIT
TTM 37681
VICINITY MAP
VERTICAL DATUM EQUATION:
NAVD88 = NGVD + 2.487'
242272
- 1 -
COOPERATIVE AGREEMENT
South Norco Channel, Stage 2
Project No. 2-0-00150-02
Tract Map No. 37681
Encroachment Permit No. 3998
This Cooperative Agreement ("Agreement"), dated as of
___________________, is entered into by and between the Riverside County Flood Control and Water Conservation District, a body politic ("DISTRICT"), the City of Norco, a municipal corporation ("CITY"), and CRP LDF Palomino, LLC, a Delaware limited liability company ("DEVELOPER"). DISTRICT, CITY and DEVELOPER are individually referred to herein as "Party" and collectively referred to herein as the "Parties".
The Parties hereto hereby agree as follows:
RECITALS
A. DEVELOPER is the legal owner of record and has submitted for approval Tract Map No. 37681, located within the city of Norco and approximately bounded by Second Street to the north, Mountain Avenue to the East, First Street to the south and Pacific Avenue to the west (“Property”). Pursuant to the conditions of approval for the proposed development of Tract Map No. 37681, DEVELOPER must construct certain water quality facilities to implement water quality treatment measures for flows emanating from DEVELOPER's planned development; and
B. The required water quality facilities, as shown on Palomino Ranch – Phase 1 Precise Grading Plans, and as shown in concept in red on Exhibit "A", attached hereto and made a part hereof, include the construction of a fifty-four inch (54") underground pipe, hereinafter called "DEVELOPER FACILITY"; and
242272
- 2 -
C. Pursuant to an agreement dated November 10, 2020 between CITY and DISTRICT ("Separate Agreement"), CITY shall improve an existing drainage channel through DEVELOPER property to contain and convey regional 100-year storm event flows.
The improvements are shown on DISTRICT Drawing No. 2-0490, and the proposed channel is named South Norco Channel, Stage 2, hereinafter called "DISTRICT FACILITY"; and
D. DISTRICT shall operate and maintain DISTRICT FACILITY upon acceptance from CITY pursuant to the Separate Agreement; and E. DEVELOPER FACILITY intersects with the alignment of the proposed DISTRICT FACILITY as shown on Sheet 30 of Palomino Ranch – Phase 1 Precise Grading Plans, attached hereto and made a part hereof; and F. DISTRICT and CITY want to ensure that DEVELOPER FACILITY (i) provides adequate vertical clearance from DISTRICT FACILITY as determined by DISTRICT; (ii) is appropriately encased to support structural loading from proposed DISTRICT FACILITY as it crosses under and (iii) is adequately maintained to secure DISTRICT FACILITY from any damage resulting from DEVELOPER FACILITY; and G. DISTRICT has reviewed the plans and provided conditions for the construction of DEVELOPER FACILITY under Encroachment Permit No. 3998 ("EP 3998"); and
H. The purpose of this Agreement is to memorialize the maintenance responsibility of DEVELOPER FACILTY; and
242272
- 3 -
NOW, THEREFORE, in consideration of the preceding recitals, which are true and correct and incorporated into the term of this Agreement and the mutual covenants hereinafter contained, the Parties hereto mutually agree as follows:
SECTION I
DEVELOPER shall:
1. Prepare DEVELOPER FACILITY plans and specifications, hereinafter called "IMPROVEMENT PLANS", in accordance with applicable DISTRICT and CITY standards, and submit to DISTRICT and CITY for their respective review and approval.
2. Pay DISTRICT, within thirty (30) calendar days after receipt of periodic billings from DISTRICT for EP3998, any and all such out of pocket third party amounts as are deemed reasonably necessary by DISTRICT to cover DISTRICT's costs associated with (i) the review and approval of IMPROVEMENT PLANS; (ii) the processing and administration of this Agreement and (iii) construction inspection costs.
3. Grant DISTRICT and CITY, by execution of this Agreement, the right to enter upon DEVELOPER's property with no advance notice where necessary and convenient for the purpose of gaining access to and performing inspections of DEVELOPER FACILITY as set forth herein, and for the purpose of CITY performing maintenance or repair work of DEVELOPER FACILITY as a remedy of last resort pursuant to Sections II.6 and III.4 of this Agreement.
4. Secure, at its sole cost and expense, all necessary licenses, agreements, permits, approvals, rights of way, rights of entry and temporary construction
242272
- 4 -
easements as may be needed for the construction, inspection, operation and maintenance of DEVELOPER FACILITY.
5. Notify DISTRICT (Attention: Plan Check Section) and CITY in writing after receiving DISTRICT's EP 3998 for DEVELOPER FACILITY, with twenty (20) calendar days written notice of intent to start of construction of DEVELOPER FACILITY.
6. Not permit any change to or modification of CITY approved IMPROVEMENT PLANS without the prior written permission and consent of CITY and DISTRICT.
7. Comply with all Cal/OSHA safety regulations, including, but not limited to, regulations concerning confined space and maintain a safe working environment for DEVELOPER employees on the site.
8. Construct or cause to be constructed DEVELOPER FACILITY, at DEVELOPER's sole cost and expense, in accordance with CITY approved IMPROVEMENT PLANS and DISTRICT EP3998.
9. Within two (2) weeks of completing DEVELOPER FACILITY construction, provide DISTRICT (Attention: Plan Check Section) and CITY with written notice that DEVELOPER FACILITY construction is substantially complete, and request DISTRICT conduct a final inspection of DEVELOPER FACILITY.
10. Reserve an easement in perpetuity for the DEVELOPER FACILITY and accept ownership, sole responsibility and all liability whatsoever for the operation and maintenance of DEVELOPER FACILITY.
242272
- 5 -
11. Maintain DEVELOPER FACILITY in good working condition so that DEVELOPER FACILITY adequately performs its designed function and does not interfere with, or threaten to interfere with, the condition of the DISTRICT FACILITY.
12. Repair or replace DISTRICT FACILITY in accordance with DISTRICT standards, if any damages to DISTRICT FACILITY are caused as a result of maintenance, repair or differential settlement of DEVELOPER FACILTY. Prior to making any repairs or modifications to DISTRICT FACILITY, DEVELOPER shall obtain an encroachment permit from the DISTRICT for the review and approval of the proposed repairs.
13. Any repairs or modifications to DEVELOPER FACILITY will be at the sole cost and expense of DEVELOPER.
14. Conduct an annual inspection of DEVELOPER FACILITY to examine its structural integrity, inspection for signs of any settlement at and adjacent to the DEVELOPER FACILITY.
15. If, in the opinion of CITY and DISTRICT's General Manager-Chief Engineer, DEVELOPER FACILITY (i) is not in adequately maintained condition or (ii) may cause or contribute to a safety hazard or any other matter of substantial concern to DISTRICT FACILTY, CITY or DISTRICT reserve the right to require remediation by DEVELOPER.
16. Ensure that all work performed pursuant to this Agreement by DEVELOPER, its agents or contractors is done in accordance with all applicable laws and regulations, including, but not limited to, all applicable provisions of the Labor Code,
242272
- 6 -
Business and Professions Code, and Water Code. DEVELOPER shall be solely responsible for all costs associated with compliance with applicable laws and regulations.
17. Pay, if suit is brought upon this Agreement or any bond guaranteeing the completion of DEVELOPER FACILITY or the quality of the work, all costs and reasonable expenses and fees, including reasonable attorneys' fees, and acknowledge that, upon entry of judgment, all such costs, expenses and fees shall be computed as costs and included in any judgment rendered.
18. DEVELOPER shall obtain and deliver to the CITY, at no cost to the CITY, a certificate of commercial general liability insurance which indicate that the CITY, its elective and appointive boards, commissions, officers, agents and employees are covered as additional insureds under all insurance policies maintained for performance of maintenance and repair work to DEVELOPER FACILITY and DISTRICT FACILITY by (i) DEVELOPER, or (ii) any contractor or subcontractor directly or indirectly employed by DEVELOPER to perform such work. The policy shall also provide that no cancellation, major change in coverage, or expiration may be affected by the insurance company or the insured during the time of performance of the work without first giving to the CITY thirty (30) days’ written notice prior to the effective date of such cancellation or change in coverage, as long as such is commercially obtainable. DEVELOPER shall not permit any contractor or subcontractor to commence or continue performing work until the certificate or any substitute certificate has been approved by the CITY. The minimum limits for the commercial general liability insurance required herein shall be $2,000,000
242272
- 7 -
per occurrence, $4,000,000 aggregate for bodily injury, personal injury and property damage.
SECTION II
DISTRICT shall:
1. Review IMPROVEMENT PLANS and issue EP 3998 when
DISTRICT has determined that such plans meet DISTRICT standards and are found acceptable to DISTRICT prior to the start of DEVELOPER FACILITY construction.
2. Recommend CITY approval of IMPROVEMENT PLANS when
DISTRICT has determined that such plans meet DISTRICT standards and are found acceptable to DISTRICT.
3. Inspect construction of DEVELOPER FACILITY.
4. As part of review of EP 3998, keep an accurate accounting and submit periodic invoices to DEVELOPER of all third party out of pocket DISTRICT costs associated (i) with the review and approval of IMPROVEMENT PLANS; (ii) the processing and administration of this Agreement and (iii) inspection costs.
5. If, in the opinion of DISTRICT's General Manager-Chief Engineer, DEVELOPER FACILITY (i) is not in adequately maintained condition or (ii) may cause or contribute to a safety hazard or any other matter of substantial concern to DISTRICT FACILTY, DISTRICT reserves the right to require remediation by DEVELOPER.
6. Should DEVELOPER fail to commence to perform all necessary work as directed by the DISTRICT pursuant to Section II.5 within thirty (30) days of receipt of written notice from DISTRICT, DISTRICT shall request CITY to perform the work and
242272
- 8 -
DEVELOPER shall be responsible to CITY for the reimbursement of all costs within sixty (60) days from the date of receipt of CITY's invoices for the work and reasonable supporting document confirming third party costs that were incurred.
SECTION III
CITY shall:
1. Review and approve IMPROVEMENT PLANS prior to the start of DEVELOPER FACILITY construction when CITY has determined that such plans meet CITY standards and DISTRICT has determined that such plans are found acceptable to DISTRICT.
2. Inspect DEVELOPER FACILITY construction.
3. Promptly perform all necessary work as requested by DISTRICT pursuant to Section II.6 should DEVELOPER fail to perform the work in a timely manner.
Invoice DEVELOPER for all costs of such work. In any situation requiring DEVELOPER to reimburse CITY, such reimbursement shall include City’s costs implementing and enforcing this Agreement, including outside consultants or counsel or City staff time, together with interest from the date the DISTRICT provided notice under Section II.6, at the rate of the lesser of seven percent (7%) per annum or the maximum of interest allowed by law. Any work performed by CITY shall be without warranty or representation by CITY as to safety or effectiveness, shall be deemed to be accepted by DEVELOPER “as is,” and shall be covered by DEVELOPER’s indemnity obligations below.
4. Until CITY’s invoice is paid, CITY shall have a lien on the Property for the amount of such charges or costs, which lien shall be perfected by the recordation of
242272
- 9 -
a “Notice of Claim of Lien” against the Property; provided, that such lien shall not grant the City any rights or remedies to enforce such lien and City shall have not power of sale or right of foreclosure. This lien shall affect all parcels jointly if portions of the Property have been sold. Any lien in favor of CITY created or claimed hereunder is expressly made subject and subordinate to any mortgage or deed of trust made in good faith and for value, recorded as of the date of the recordation of the Notice of Claim of Lien, and no such lien shall in any way defeat, invalidate, or impair the obligation or priority of any such mortgage or deed of trust, unless the mortgagee or beneficiary thereunder expressly subordinates its interest, of record, to such lien. No lien in favor of City created or claimed hereunder shall in any way defeat, invalidate, or impair the obligation or priority of any lease, sublease or easement unless such instrument is expressly subordinated to such lien. Upon payment in full, CITY shall promptly record a release of such lien.
SECTION IV
It is further mutually agreed:
1. All construction work involved with DEVELOPER FACILITY shall be inspected by DISTRICT and CITY but shall not be deemed complete until DISTRICT and CITY mutually agree in writing that construction is completed in accordance with DISTRICT and CITY approved IMPROVEMENT PLANS.
2. In the event of a change in the existing site conditions that materially affects DEVELOPER FACILITY, DISTRICT may require DEVELOPER to modify IMPROVEMENT PLANS as deemed necessary by DISTRICT.
242272
- 10 -
3. DEVELOPER FACILITY construction work shall be on a five (5) day, forty (40) hour work week with no work on Saturdays, Sundays or DISTRICT or CITY designated legal holidays, to allow for DISTRICT or CITY inspection of facility.
4. DEVELOPER shall indemnify and hold harmless DISTRICT, CITY and County of Riverside (including each of their Agencies, Districts, Special Districts and Departments, their respective directors, officers, Board of Supervisors, elected and appointed officials, employees, agents and representatives) (individually and collectively referred to as "Indemnitees") from any liability whatsoever, based or asserted upon any acts or omissions of DEVELOPER, its officers, employees, subcontractors, agents or representatives arising out of or in any way relating to this Agreement, including, but not limited to, property damage, bodily injury or death, or any other element of any kind or nature whatsoever arising from the acts or omissions of DEVELOPER, its officers, employees, subcontractors, agents or representatives. DEVELOPER shall defend, at its sole expense, all costs and fees, including, but not limited to, attorney fees, cost of investigation, defense, and settlements or awards, the Indemnitees in any claim or action based upon such alleged acts or omissions. CITY shall be deemed to be acting as the agent of DEVELOPER and shall be covered by DEVELOPER’s indemnity provisions herein in the performance of any work pursuant to Section III.4 of this Agreement.
5. With respect to any action or claim subject to indemnification herein by DEVELOPER, DEVELOPER shall, at its sole cost, have the right to use counsel of their own choice and may adjust, settle or compromise any such action or claim only with the prior consent of DISTRICT and CITY. Any such adjustment, settlement or compromise
242272
- 11 -
shall not in any manner whatsoever limit or circumscribe DEVELOPER's indemnification to Indemnitees as set forth herein.
6. DEVELOPER's obligations hereunder shall be satisfied when DEVELOPER has provided to DISTRICT and CITY the appropriate form of dismissal relieving DISTRICT and CITY from any liability for the action or claim involved.
7. In the event there is conflict between this clause and California Civil Code Section 2782, this clause shall be interpreted to comply with California Civil Code Section 2782. Such interpretation shall not relieve DEVELOPER from indemnifying the Indemnitees to the fullest extent allowed by law.
8. Except as expressly provided in this Agreement or DISTRICT’s or CITY’s breach of this Agreement, DEVELOPER for itself, its successors and assigns hereby releases DISTRICT and CITY (including each of their Agencies, Districts, Special Districts and Departments, their respective directors, officers, Board of Supervisors, elected and appointed officials, employees, agents and representatives) from any and all claims, demands, actions or suits of any kind arising out of any liability, known or unknown, present or future, including, but not limited to, any claim or liability, based or asserted, pursuant to Article I, Section 19 of the California Constitution, the Fifth Amendment of the United States Constitution, or any other law or ordinance which seeks to impose any other liability or damage, whatsoever, for damage caused by or from DEVELOPER FACILITY. Nothing contained herein shall constitute a release by DISTRICT, CITY or County of Riverside (including their Agencies, Districts, Special Districts and Departments, their respective directors, officers, Board of Supervisors, elected and appointed officials, employees, agents
242272
- 12 -
and representatives) of DEVELOPER from any and all claims, demands, actions or suits of any kind arising out of any liability, known or unknown, present or future, for the negligent maintenance of DEVELOPER FACILITY by DEVELOPER.
9. Any waiver by any Party hereto of any breach of any one or more of the terms of this Agreement shall not be construed to be a waiver of any subsequent or other breach of the same or of any other term hereof. Failure on the part of any Party hereto to require exact, full and complete compliance with any terms of this Agreement shall not be construed as in any manner changing the terms hereof or estopping such Party from enforcement hereof.
10. Any and all notices sent or required to be sent to the Parties of this Agreement will be mailed by first class mail, postage prepaid, to the following addresses:
To DISTRICT:
To CITY:
To DEVELOPER:
RIVERSIDE CITY FLOOD CONTROL
AND WATER CONSERVATION DISTRICT
1995 Market Street
Riverside, CA 92501
Attn: Contracts Services Section
CITY OF NORCO
2870 Clark Avenue
Norco, CA 92860
Attn: Public Works Deputy Director
CRP LDF Palomino, LLC
1300 Dove Street, Suite 200
Newport Beach, CA 92660
Attn: Development Manager
11. This Agreement is to be construed in accordance with the laws of the State of California. If any provision of this Agreement is held by a court of competent
242272
- 13 -
jurisdiction to be invalid, void or unenforceable, the remaining provisions will nevertheless continue in full force and effect without being impaired or invalidated in any way.
12. Any action at law or in equity brought by any of the Parties hereto for the purpose of enforcing a right or rights provided for by the Agreement shall be tried in a court of competent jurisdiction in the County of Riverside, State of California, and the Parties hereto waive all provisions of law providing for a change of venue in such proceedings to any other County.
13. This Agreement is the result of negotiations between the Parties hereto, and the advice and assistance of their respective counsel. The fact that this Agreement was prepared as a matter of convenience by DISTRICT shall have no importance or significance. Any uncertainty or ambiguity in this Agreement shall not be construed against DISTRICT because DISTRICT prepared this Agreement in its final form.
14. This Agreement shall be recorded among the land records of Riverside County, California, shall constitute a covenant running with the land, and shall be binding upon all administrators, heirs, successors-in-interest, and assignees. The recordation of this Agreement shall constitute notice to all persons purchasing or otherwise acquiring title to all or any portion of the Property of the obligations herein set forth, who shall be deemed to have consented to and become bound by all the provisions hereof.
15. In the event DEVELOPER sells the entire Tract Map No. 37681, DEVELOPER shall notify DISTRICT and CITY of any such transfer or assignment in writing no later seven (7) calendar days from the closing date of the sale. DEVELOPER expressly understands and agrees that it shall remain joint and severally liable with respect
242272
- 14 -
to any and all of the obligations and duties in this Agreement until the new owner(s) of Tract Map No. 37681 execute an assignment, assumption and release agreement that transfers all DEVELOPER's rights, duties or obligations hereunder to the new owner(s) of Tract Map No. 37681.
16. The individual(s) executing this Agreement on behalf of DEVELOPER certify that they have the authority within their respective company(ies) to enter into and execute this Agreement and have been authorized to do so by all boards of directors, legal counsel and/or any other board, committee or other entity within their respective company(ies) which have the authority to authorize or deny entering into this Agreement.
17. This Agreement is intended by the Parties hereto as a final expression of their understanding with respect to the subject matter hereof and as a complete and exclusive statement of the terms and conditions thereof and supersedes any and all prior and contemporaneous agreements and understandings, oral or written, in connection therewith.
This Agreement may be changed or modified only upon the written consent of the Parties hereto.
18. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.
//
242272
- 15 -
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on
.
(to be filled in by Clerk of the Board)
RECOMMENDED FOR APPROVAL:
RIVERSIDE COUNTY FLOOD CONTROL
AND WATER CONSERVATION DISTRICT
By
JASON E. UHLEY
General Manager-Chief Engineer
By
KAREN SPIEGEL, Chair
Riverside County Flood Control and Water
Conservation District Board of Supervisors
APPROVED AS TO FORM: ATTEST:
MINH C. TRAN
County Counsel
KIMBERLY RECTOR
Clerk of the Board
By
STEPHANIE K. NELSON
Deputy County Counsel
By
Deputy
(SEAL)
[Signed in Counterpart]
Cooperative Agreement:
South Norco Channel, Stage 2
Developer Facility No. 2-0-00150-02
Tract Map No. 37681
Encroachment Permit No. 3998
RSM:blm
04/06/23
242272
- 16 -
[Signed in Counterpart]
Cooperative Agreement:
South Norco Channel, Stage 2
Developer Facility No. 2-0-00150-02
Tract Map No. 37681
Encroachment Permit No. 3998
RSM:blm
04/06/23
RECOMMENDED FOR APPROVAL: CITY OF NORCO
By
ROBIN GRUNDMEYER
Mayor
APPROVED AS TO FORM: ATTEST:
By
HARPER & BURNS, LLC
City Attorney
By
DANA ROA, CMC
City Clerk
(SEAL)
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on April 19, 2023. ____________________________
___________________________________
242272
- 17 -
CRP LDF PALOMINO, LLC,
a Delaware limited liability company
By
Patrick Daniels, Chief Executive Officer
(ATTACH NOTARY WITH CAPACITY
STATEMENT)
Cooperative Agreement:
South Norco Channel, Stage 2
Developer Facility No. 2-0-00150-02
Tract Map No. 37681
Encroachment Permit No. 3998
RSM:blm
04/06/23
City Council
STAFF REPORT
Date: April 19, 2023 Agenda Item:
2.H.
To: Honorable Mayor and City Council Members
Prepared By: Lisette Free, Finance Director
Department: Finance
SUBJECT:
Suspension of Special Event Business License requirement for Citywide Sponsored/Hosted Special Events by the Community Services Department RECOMMENDATION:
Adopt Resolution 2023-14, suspending Special Event Business License Fees for Citywide Sponsored/Hosted Special Events.
SUMMARY:
In an effort to encourage vendor participation in Citywide Special Events sponsored/hosted by the Community Services Department, staff is recommending that vendors no longer be required to obtain a Special Event Business License in addition to their annual Business License. Vendors will be required to obtain an annual City Business License that is valid for a 12-month period starting July 1 and ending every year on June 30 with their annual vendor permit to participate in multiple Citywide Special Events throughout the year.
BACKGROUND:
The Community Services Department hosts multiple Citywide Special Events every year. These Citywide Special Events allow local and out-of-town vendors the opportunity to sell their goods, showcase their business and help create community in the City of Norco. Currently, per the Norco Municipal Code Section 5.04.202(5) "License taxes - Flat rates", food and beverage vendors and merchandise vendors are required to obtain a Special Event Business License for every special event they participate in.
City of Norco sponsored/hosted Special Events have developed positive relationships with the vendors who assist at these events and many of them enjoy returning to participate in multiple events throughout the years. Therefore, vendors often apply for multiple Special Event Business Licenses throughout the year and pay multiple Special Event Business License fees.
Currently, vendors pay for a Special Event Business License for each event they participate in which includes a $10 business license tax per day of the event, $16 processing fee and $4 State SB1186 tax. Vendors provide a copy of their Driver’s License, Seller’s Permit listing the Norco event address and a copy of the Health Permit for any food and beverage vendors, if required, in addition to a vendor’s annual Business License. Vendors' annual Business License fee vary depending on the type and location. For example, the most common annual business license category for vendors are home-occupancy businesses which include $45 business license tax, $62 processing fee and $4 State SB1186 tax.
For vendors to participate in Citywide Special Events sponsored/hosted by the Community Services Department, the Department will provide a list of approved event vendors to Business Licensing. Vendors will be required to obtain an annual City Business License, valid for a 12-month period (July 1 to June 30), which will allow them to participate in multiple Citywide Special Events throughout the year. Vendors will no longer be required to obtain a Special Event Business License in addition to their annual Business License. This process will still require vendors to complete a vendor application with the Community Services Department which is subject to approval for each event. If selected to participate as a vendor, their annual one-time Business License will be sufficient. This new process will require vendors to pay one Annual Special Event Business License fee, a processing fee as listed in the City’s Annual Fee Schedule and the State tax fee.
This new process would only apply to all City Sponsored/Hosted Events. All other special events will follow the special event licensing requirements at this time. Staff is in the process of evaluating other municipal code modifications that might streamline the licensing of businesses that participate in other events, while ensuring that businesses are properly licensed and remitting tax.
FISCAL IMPACT:
Estimated business license revenue suspended for Citywide sponsored/hosted Special Events may range from $90 to $1,200 per event.
RELATIONSHIP TO STRATEGIC PLAN:
This item is consistent with Strategic Direction #3 - Economic Development and Financial Stability: Assure financial stability by expanding development efforts, diversifying revenue sources and continuing prudent financial management.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):
Resolution No. 2023-14
RESOLUTION NO. 2023-14
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORCO,
CALIFORNIA, SUSPENDING SPECIAL EVENT BUSINESS LICENSE
FEES FOR CITYWIDE SPONSORED/HOSTED SPECIAL EVENTS.
WHEREAS, the Community Services Department hosts multiple Citywide Special Events every year. These Citywide Special Events allow local and out-of-town vendors the opportunity to sell their goods, showcase their business and help create community in the City of Norco; and
WHEREAS, in an effort to encourage vendor participation in Citywide Special Events sponsored/hosted by the Community Services Department; and WHEREAS, Norco Municipal Code Section 5.04.202(5) “Licenses taxes – Flat rates”, food and beverage vendors and merchandise vendors are required to obtain a Special Event Business License for every special event they participate in; and WHEREAS, vendors often apply for multiple special events throughout the year and pay multiple Special Event Business License fees in addition to their annual Business License.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Norco, California, ordains as follows:
SECTION 1: The foregoing recitals are true and incorporated hereat as if set forth in full.
SECTION 2: Special Event Business License Fees shall be temporarily suspended for Citywide Special Events sponsored/hosted by the Community Services Department and remain suspended until future action of the City Council removing the suspension.
SECTION 3: Vendors will be required to obtain an annual City Business License that is valid for a 12-month period, starting July 1 and ending June 30, with their annual vendor permit to participate in multiple Citywide Special Events throughout the fiscal year.
Resolution No. 2023-14 – Suspending Special Event Business License Fee
April 19, 2023
PASSED AND ADOPTED by the City Council of the City of Norco, California, at a regular meeting held April 19, 2023.
________________________
Robin Grundmeyer, Mayor
City of Norco, California
ATTEST:
________________________
Dana Roa, CMC, City Clerk
City of Norco, California
I, Dana Roa, CMC, City Clerk of the City of Norco, California, do hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of Norco, California, at a regular meeting thereof held on April 19, 2023 by the following vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the City of Norco, California on April 19, 2023.
_________________________
Dana Roa, CMC, City Clerk
City of Norco, California
City Council
STAFF REPORT
Date: April 19, 2023 Agenda Item:
2.I.
To: Honorable Mayor and City Council Members
Prepared By: Colin Burns, Deputy City Attorney
Department: Administration
SUBJECT:
Professional Legal Services Contract with Downey Brand, regarding Riverside Transmission Reliability Project (RTRP)
RECOMMENDATION:
Approve a Professional Legal Services Contract, as recommended by RTRP Subcommittee, with Downey Brand to advocate for undergrounding of RTRP Powerlines; and authorize the Finance Director to move $175,000 from undesignated reserves into the General Fund, and appropriate the $175,000 to the Downey Brand contract.
SUMMARY:
The City of Norco strongly opposes placement of above-ground powerlines over the Santa Ana River and strongly supports undergrounding of said powerlines. The contract with Downey Brand is for legal services to advocate for undergrounding.
BACKGROUND:
Southern California Edison obtained approval from the California Public Utilities Commission (CPUC) to install powerlines over and across the Santa Ana River.
Installation of overhead powerlines will permanently and negatively impact the scenic viewshed. The City Council has for years been opposed to the placement of overhead powerlines in this important viewshed and has advocated for undergrounding of the powerlines to protect this important view resource for the citizens of Norco and the greater community.
Attorney Mike Day of Downey Brand is an expert on legal issues relating to powerlines and the CPUC, and has already performed substantial work advocating for the undergrounding of powerlines through neighboring Eastvale. He brings a wealth of knowledge and experience to assist Norco in its effort to protect the aesthetics of the Santa Ana River viewshed.
The Riverside Transmission Reliability Project Sub-committee discussed and recommended to approve a Professional Legal Services Contract, with Downey Brand to advocate for undergrounding of RTRP Powerlines.
FISCAL IMPACT:
The cost for legal services is estimated at $175,000. There are sufficient funds in undesignated reserves in the Operating General Fund to pay for the proposed legal services.
RELATIONSHIP TO STRATEGIC PLAN:
This item is in accordance with Strategic Direction # 5 - Infrastructure and Asset Management: Ensure timely preservation, replacement, improvement and acquisition of infrastructure and capital assets.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):
Professional Legal Services Agreement
Michael Day
Direct 415-848-4808
Email: [email protected]
Downey Brand LLP
455 Market Street, Suite 1500
San Francisco, CA 94105
425-848-4800 Main
downeybrand.com
April 4, 2023
Lori Sasson
City Manager
City Hall
2870 Clark Avenue
Norco, CA 92860
Re: Engagement Letter for Legal Advice and Counsel by Downey Brand, LLP Dear Ms. Sasson:
Thank you for engaging Downey Brand LLP (“Downey Brand”) to represent the City of Norco (“You” or “Your” or “the City”) in the certificate proceeding involving the Riverside Transmission Reliability Project (“RTRP”) now pending before the Public Utilities Commission of the State of California (“CPUC”), and any related activities involving other government entities or stakeholders in support of the City’s position in that proceeding (“the Matter”).
As a partner at Downey Brand I must ask my clients to execute a separate standard Engagement Letter for each Matter. The purpose of this Engagement Letter and the attached Terms of Engagement is to confirm the terms and conditions upon which Downey Brand will provide legal services to You. A mutual understanding of the terms of our engagement from the beginning of any matter helps us to maintain a good and effective working relationship and is vital to our effective representation of You.
Downey Brand will represent and consult with You only as a municipal government entity.
Our services do not extend to the representation of any of the individual elected officials, employees or staff of the City or its component agencies absent written agreement otherwise.
Our receipt or use of confidential information from you or others during our representation of You does not mean Downey Brand will provide any advice or other legal services other than those described in this letter.
At Downey Brand, I will be primarily responsible for this Matter. We will seek to staff this Matter in an effective and efficient manner, while best serving Client’s needs. We currently anticipate that the following attorneys may perform some of the work on this Matter: Michael Day, Brian Cragg, Megan Somogyi, Jedidiah Gibson, Breanna Inoshita, and Megan Unger. In addition, other attorneys, including partners and associates, may be working with me on the Matter as the need arises. If, at any time, you have any concerns about staffing or about our billing statements, please contact me. My office telephone number and address are listed above.
Legal Services for City of Norco
April 4, 2023
Downey Brand charges fees on an hourly basis and bills in tenths of one hour (0.1 hour = 6 minutes). In accordance with our firm’s adopted hourly rates for 2023, we will use the following rate schedule to bill for the work of these attorneys:
Michael Day $680/hr.
Brian Cragg $645/hr.
Megan Somogyi $545/hr.
Jedidiah Gibson $465/hr.
Megan Unger $370/hr.
Breanna Inoshita $355/hr.
Billing rates are set based upon seniority and depth of experience, and are subject to annual firm-wide fee adjustments on January 1 of each year. Downey Brand also charges for costs and disbursements that the firm incurs in rendering its services, as described more fully in the attached Terms of Engagement Agreement.
Downey Brand customarily requests, as a condition of undertaking new representations, that the client provide us with an advance fee deposit. The requirement for an advance fee deposit is being waived in this Matter. However, we reserve the right to, and You agree we may, require a further advance fee deposit in the future. Downey Brand will provide You written notice prior to requiring such a deposit, and if You decline to provide such a deposit, we may withdraw from representing You. Should we require an advance fee deposit in the future, that deposit will be handled and applied as described more specifically in the accompanying Terms of Engagement Agreement.
This Engagement Letter and the accompanying Terms of Engagement Agreement will be effective upon execution of this letter, but their effective date will be retroactive to the date Downey Brand first performed services related to the Matter, April 4, 2023. This engagement agreement may be executed in counterparts, and an electronically transmitted signature will be deemed the legal equivalent of an original signature.
If this letter, together with our attached Terms of Engagement Agreement, accurately reflect our agreement, please confirm by signing the attached Terms of Engagement Agreement and returning it to me.
If you have any questions regarding this agreement, please contact me. I encourage you to review this agreement with separate counsel, if you wish, to answer any questions or concerns you may have before signing.
Legal Services for City of Norco
April 4, 2023
Thank you again for the opportunity to represent the City of Norco. I look forward to working with the City on this project.
Very truly yours,
DOWNEY BRAND LLP
Michael Day
MBD:wc
Legal Services for City of Norco
April 4, 2023
TERMS OF ENGAGEMENT AGREEMENT
In order to avoid any misunderstandings, it is the Firm’s policy to set out the terms of our engagement at the beginning of our relationship in our Terms of Engagement Agreement, which is incorporated into the Engagement Letter provided with this Agreement. This Agreement sets forth the terms, promises, and conditions of our provision of legal advice and consulting services to the City of Norco (the “Client”). Except as modified in writing by the accompanying Engagement Letter or in another agreement signed by the Client and Downey Brand, the following provisions apply to the relationship between Downey Brand and Client.
I. CLIENT
Our engagement is only on behalf of Client, as identified in the Engagement Letter accompanying these Terms of Engagement, and whose signature is set forth in this Agreement.
Our representation of the Client does not extend to or encompass any other person or entity affiliated with Client, other than the entities named above, including, but not limited to, any other business, corporation, subsidiary, elected official, director, manager, consultant, or employee of Client (“Client’s Affiliates”). Accordingly, Client understands and agrees that any representation by Downey Brand of another client adverse to any of Client’s Affiliates or other third parties does not constitute a conflict of interest and does not require the Client’s consent.
II. SCOPE OF LEGAL SERVICES
Downey Brand’s services shall be limited to the scope identified in the accompanying Engagement Letter and upon conclusion of those services the representation shall be concluded.
If Client desires that we provide additional services, Downey Brand’s agreement to any expansion of the scope of its representation of the Client will be subject to, among other things, Downey Brand’s approval and such additional conflict checks, consents/waivers, fee deposits, retainers, approvals, and other arrangements as Downey Brand may, in its professional judgment, deem necessary or appropriate. Unless otherwise provided in a written engagement letter between Downey Brand and Client (or written amendment of a prior engagement letter between them), the agreement reflected in these Terms of Engagement, and in the accompanying Engagement Letter, applies to Downey Brand’s current representation of the Client and to any subsequent matters that Downey Brand agrees to undertake on the Client’s behalf. Please note that unless specifically indicated otherwise, our engagement does not include representing Client in any adversarial proceeding, such as a court action.
III. FEES, COSTS AND DISBURSEMENTS
Our fees are based on the amount of time spent on the Matter, billed in 6-minute increments (tenths of one hour). Each attorney, legal assistant or other timekeeper assigned to any Matter at the firm has an hourly billable rate based on experience and seniority. Our billing rates are adjusted on January 1 of each year. The billing rates of attorneys assigned to your matter are set forth in the attached Engagement Letter.
In addition to fees, Client will also be billed for costs and expenses we incur in connection with our representation of Client. Costs and expenses include, but are not limited to, filing fees,
Legal Services for City of Norco
April 4, 2023
telephone charges, mileage at the Internal Revenue Service mileage rate, parking, document reproduction, computerized legal research, witness fees, transcript costs, consultant and expert witness fees, messenger services, out-of-town travel, and the like. Subject to our ethical obligations, certain items may be charged at more than Downey Brand’s direct cost to cover its estimated associated administrative costs, overhead and materials. More specific information regarding our cost and disbursement policies is available upon request. For larger expenses (like transcript costs or consultant or expert fees), we may request that Client directly pay the specific payee involved.
If any claim or action is brought against Downey Brand or any of its personnel, which alleges negligence or wrongdoing of the Client or a third party, or if Downey Brand or any current or former attorney or employee of Downey Brand is asked or required by a third party to testify or produce documents as a result of Downey Brand’s representation of the Client, the Client agrees to pay Downey Brand for any resulting costs or expenses, including Downey Brand’s time, even if Downey Brand’s representation of the Client has ended. This paragraph is not intended to apply to any claim brought by or on behalf of the Client alleging wrongdoing by Downey Brand.
Although Downey Brand may already have provided you, or may in the future provide you, estimates of fees or costs that the firm anticipates will be incurred, any such estimates shall not be binding. Estimates are subject to unforeseen circumstances and are, as a matter of course, inexact. Actual fees or costs may vary from any estimates provided.
IV. BILLING AND PAYMENT
A. Billing Statements
Downey Brand will bill Client on a monthly basis for services. Our billing statements are payable promptly upon receipt. Payment is required within 30 days following the invoice date.
The duty to timely pay our billing statements is solely the Client’s and is not contingent upon, nor shall the payment due date be extended or otherwise affected by, any judgment or settlement; any right the Client may have for reimbursement, indemnification or insurance; or the Client’s receipt of any other form of payment the Client may claim or expect to receive from any other party.
Each statement is fully due and payable upon receipt, but in no event later than thirty (30) days of its issuance date. Any statement not paid within thirty (30) days of its issuance date will accrue interest on the principal balance (fees, costs and disbursements) shown on the statement.
Interest will be calculated by multiplying the unpaid balance by the periodic rate of .8333% per month (ten percent (10%) annual percentage rate). The unpaid balance will bear interest until paid.
Our failure to charge Client interest on any particular statement will not constitute a waiver of our right to do so on future bills.
If the Client has any question, concern, or disagreement regarding any bill, the Client should notify us promptly, and must nevertheless promptly pay any portion of the bill that is not the subject of your question, concern or disagreement.
Our policy is to discontinue work on pending matters for a client who has not paid a statement in full (or in full having deducted for any question, concern or disagreement, as set forth
Legal Services for City of Norco
April 4, 2023
above) within 75 days of the billing statement’s issuance, to the extent consistent with our obligations under the applicable rules of professional conduct. In addition, and notwithstanding the previous sentence, we reserve the right to withdraw from Client’s representation and immediately cease performing all services if we do not receive full payment of amounts owed to us within thirty (30) days of issuance of any billing statement.
Billing statements are confidential communications to Client that, either individually or taken together, are reasonably apt to reveal the nature, strategy and status of our representation of Client, including information regarding legal opinions formed or advice given by us to Client in the course of our attorney-client relationship. We therefore consider billing statements to be confidential attorney-client communications, subject to the attorney-client privilege, that may also contain attorney work product. Client agrees that billing statements reflect attorney-client communications, subject to the attorney-client privilege, that may also contain attorney work product, and signifies that understanding and agreement by executing this Agreement.
B. Advance Deposit
As noted in the attached Engagement Letter, while we are not requiring an advance fee deposit from Client at this time, we reserve the right to do so. By signing below, Client agrees that Downey Brand may require an advance fee deposit in the future by giving Client written notice that we require such a deposit, and if Client declines to provide such a deposit, we may withdraw from representing Client. Should we require an advance fee deposit in the future, that deposit will be applied against attorney’s fees and costs incurred in connection with the services we provide under this Agreement. This deposit amount will be applied against each statement, and Client agrees to make further payments toward Client’s deposit in the amount necessary to replenish the original amount of the deposit. Such further amounts are due and payable under the same terms and conditions as Client’s required payment of periodic statements. All further amounts paid to replenish Client’s deposit shall be held and applied in the same manner as Client’s initial deposit.
Interest on Lawyers Trust Account (IOLTA) Trust Account: Client’s advance fee deposit will be placed in our client trust account in Client’s name. The interest on that trust account is paid to the California State Bar in accordance with California law. Client authorizes the firm to withdraw the principal from the trust account to pay Client’s bill for fees and costs as they are incurred. Any unused deposit remaining at the conclusion of our services will be refunded to Client.
V. WAIVER CONCERNING INTERNAL DOWNEY BRAND LLP ATTORNEY-CLIENT
PRIVILEGE
We may need to consult, at our own expense, with our own counsel (for example, our General Counsel, other firm lawyers who do not perform work for the Client on the Matter, or our own outside counsel) regarding our engagement with Client. To the extent that we are addressing our own rights and responsibilities, a conflict of interest could be considered to exist between us and Client as to any such consultation or resulting communications, particularly if a dispute were to arise between Downey Brand and the Client regarding the Matter, as described in the accompanying Engagement Letter.
Legal Services for City of Norco
April 4, 2023
By signing this Agreement, and as a condition of this engagement, Client consents to such consultation occurring and waives any claim of conflict of interest based on such consultation or resulting communications that could otherwise disqualify us from continuing to represent the Client or from acting in our own behalf, even if such consultation or communications might be deemed adverse to the interests of Client. By signing this Agreement, Client consents and waives any such claims of conflict. By signing this Agreement, Client further acknowledges and agrees that any such consulting and communications are protected from disclosure to the Client, by Downey Brand’s own attorney-client privilege.
VI. OUR RESPECTIVE RESPONSIBILITIES
A. Downey Brand
Downey Brand will represent Client as described in the scope of services set forth in the accompanying Engagement Letter and in this Agreement. Downey Brand will take reasonable steps to keep Client informed about significant developments relating to the legal services provided by Downey Brand.
By signing below, Client agrees that it understands that Client should not, and will not, look to or rely upon Downey Brand for any investment, accounting, financial or other non-legal advice, including, without limitation, any advice regarding the character or credit of any person or entity with whom the Client may be dealing.
Although Downey Brand will, at times, communicate with Client by email, letter, or written form, we may provide much of our counsel and assistance in person in meetings, or in telephone conversations with Client. If Client ever wishes for us to confirm any advice in writing, please be sure to let us know.
We also have a duty of confidentiality to Client, and to each of our other clients. We take this duty very seriously and, except to the extent permitted by the applicable rules of professional conduct, we will not disclose any confidential information of Client to any other client or person.
Likewise, we cannot and will not disclose to Client the confidences of any other client, even when such information relates to matters that might affect Client.
B. Client
Our effective representation of Client requires accurate and complete information, and the necessary help of Client. Client agrees to provide us with complete and candid information regarding the Matter, and to keep us informed of any relevant developments or changes in facts or circumstances. Client further agrees to make decisions necessary for us to fulfill our responsibilities in the Matter and otherwise provide us with Client’s reasonable assistance and cooperation during the course of this representation.
VII. INSURANCE COVERAGE
While Client has not retained Downey Brand to represent Client in connection with issues relating to insurance coverage, it is important that Client consider notifying any relevant insurance
Legal Services for City of Norco
April 4, 2023
carriers of the Matter, in order to determine whether there is insurance coverage for the Matter involved or any claim(s) asserted or anticipated in connection with the Matter.
VIII. WAIVER OF FUTURE CONFLICTS OF INTEREST
Our agreement to represent Client is conditioned upon the understanding that we are free to represent any clients (including current, former, and future clients, and including Client’s adversaries), and to take positions either adverse to Client or an affiliate of Client in any matters that do not involve the same or substantially related factual and legal issues, as matters for which Client has retained us or may hereafter retain us, and where we have not obtained confidential information of Client material to the representation of that other client. Such representations may include, for example, appearance on behalf of another client adverse to Client in litigation or arbitration, and can also, if necessary, involve examination or cross-examination of Client’s personnel on behalf of that other client in such proceedings or in other proceedings to which Client is not a party, provided the other matter is not substantially related to our representation of Client, and in the course of representing Client, we have not obtained confidential information of Client material to the representation of that other client.
We have represented another client in the RTRP proceeding at the CPUC, Sky Country Investments. At this time, we see no conflict between the interests of that client and the City of Norco and do not anticipate that one will arise in the future. However, we must advise that if a direct conflict of interest were to arise between Sky Country Investments and the City in connection with this Matter, if the respective parties could not agree to waive any such conflict, we would have to decline further representation of the Client due to our existing obligations to Sky Country Investments.
In agreeing to these conditions, Client should be aware that we provide services on a wide variety of legal subjects to a large number of clients, some of whom are or may be operating in the same area(s) of business in which Client operates or may operate. A summary of our current practices and industries in which we represent clients is available on our website at www.downeybrand.com. Client consents to these other representations, and waives any actual or potential conflict that may arise from such current or future representations, so long as those other representations do not involve the same or substantially related factual and legal issues as a current active engagement for Client.
By consenting to this arrangement, Client is waiving our obligation of loyalty to it so long as we maintain Client’s confidentiality and adhere to the foregoing limitations. We seek this consent to allow our Firm to meet the needs of existing and future clients, and to remain available to those other clients, and to render legal services with vigor and competence.
We will, of course, hold in confidence Client’s secrets and confidences. Likewise, Client understands that, while Downey Brand may obtain confidential information from other clients that may be of interest to Client, Downey Brand cannot and will not share such information with Client.
Legal Services for City of Norco
April 4, 2023
IX. TERMINATION OR END OF REPRESENTATION
A. Termination by Client
Client may terminate this representation at any time, with or without cause, but in the case of litigation, court approval may be necessary.
B. Termination by Downey Brand
Subject to the application of the applicable rules of professional conduct, Downey Brand also reserves the right to withdraw if, among other things, Client fails to timely pay our billing statements; Client fails to cooperate or follow Downey Brand’s advice on a material matter; or any fact or circumstances arise that, in Downey Brand’s view, renders our representation unlawful or unethical, or we otherwise have the right to withdraw pursuant to the applicable rules of professional responsibility. Any termination of our representation of Client would be subject to such approval as may be required from any court(s) or tribunal(s) in which we are appearing on Client’s behalf. In the event of termination by either of us, Client agrees to pay us fees and costs for work performed prior to termination, to the extent permitted by law.
C. End of Representation and Applicable Date
Unless otherwise agreed in writing, Client agrees, by signing this Agreement, that our representation will be considered to be complete, and to have ended, upon the earliest date of:
(i) Client’s termination of the representation (if applicable); (ii) Downey Brand’s withdrawal from the representation (if applicable); (iii) the substantial completion Downey Brand’s substantive work for Client; (iv) our sending you our final billing statement for services rendered in the Matter; or (v) that date upon which Downey Brand has provided no services to client for a six-month period, except where we are awaiting an action or decision by a court, tribunal or governmental agency, or specific actions are necessary to complete the representation that extend beyond the six-month period. We may send you a letter to confirm the end of representation, but our failure to send such a letter shall not change the Agreement set forth in this paragraph, and shall not be considered to be an extension of our services.
When our representation ends, all unpaid charges for fees or costs shall be due and payable immediately.
X. FILES
Unless otherwise required by outside counsel guidelines or specific client instruction, Downey Brand will retain all hardcopy and electronic records for a period consistent with its internal Record Retention policy. When that time expires, Downey Brand’s policy is to destroy all records related to the Matter in a manner that preserves confidentiality. Downey Brand will make best efforts to contact Client, using the most up to date contact information in its possession, prior to the destruction of any records so that you may provide alternate retention instructions as necessary. Client understands, and agrees, that records related to the Matter will be destroyed in the absence of such alternate instruction or if Downey Brand is unable to establish contact with
Legal Services for City of Norco
April 4, 2023
Client. If Client has a Records Retention Policy in place with which outside counsel will need to comply, please advise us so that we may so inform our Records Manager.
We reserve the right to make, at our expense, certain copies of all documents generated or received by us in the course of our representation. When you request copies of documents from us, copies that we generate will be made at Client’s expense. We will maintain the confidentiality of all documents throughout this process.
Our own files pertaining to the Matter will be retained by the firm (as opposed to being sent to Client) or destroyed. These firm files include, for example, internal communications, firm administrative records, time and expense reports, personnel and staffing materials, and credit and account records. For various reasons, including the minimization of unnecessary storage expenses, we reserve the right to destroy or otherwise dispose of any of our own files within a reasonable time after the engagement has concluded.
XI. ARBITRATION
A. Fee Disputes
Client has the right to have any fee dispute handled in accordance with the Mandatory Fee Arbitration Act set forth in Business and Professions Code §§ 6200, et. seq. Venue for any mandatory fee arbitration proceeding shall be the Sacramento County Bar Association’s Mandatory Fee Arbitration Program. Any de novo proceeding following (or in lieu of) arbitration under the Mandatory Fee Arbitration Act shall be subject to binding arbitration in Sacramento County, California, before a single retired judge or justice.
B. Other disputes
Any other dispute arising from this Agreement or services provided pursuant to this Agreement, including without limitation any claim for breach of contract, breach of fiduciary duty or of any duty to any of the parties hereto, or legal malpractice, also shall be subject to binding arbitration in Sacramento County, California, before a single retired judge or justice.
C. Discovery
Pursuant to Code of Civil Procedure § 1283.1(b), the provisions of Code of Civil Procedure §1283.05, which addresses discovery in arbitration, are incorporated into and shall be applicable to an arbitration conducted pursuant to subsection (B) of this Section of this Agreement, but not to an arbitration conducted pursuant to subsection (A) of this Section of the Agreement. Client acknowledges that, by agreeing to binding arbitration, client waives any right to (1) engage in formal discovery pursuant to the Code of Civil Procedure (except as may be permitted within the arbitration proceeding as set forth above), (2) a jury trial, (3) a court trial, or (4) an appeal.
XII. CHOICE OF LAW, JURISDICTION, AND SEVERABILITY
This Agreement shall be governed by, and construed in accordance with, the laws of the State of California. Venue of any action or proceeding arising out of this Agreement, or out of
Legal Services for City of Norco
April 4, 2023
services performed pursuant to this agreement, shall be the Superior Court of the State of California, in and for the County of Sacramento. If any provision of this Agreement is held in whole or part to be unenforceable, the remainder of that provision and of the entire Agreement will be severable and remain valid, enforceable and in effect.
XIII. BINDING AGREEMENT
The accompanying Engagement Letter and this Terms of Engagement Agreement represent the entire understanding and agreement between Client and Downey Brand with respect to the subject matter referred to herein. By signing below, Client acknowledges that Client has carefully reviewed the accompanying Engagement Letter and these Terms of Engagement Agreement, understands their content, and agrees to be bound by all of the terms and conditions set forth in such documents. Furthermore, Client acknowledges that Downey Brand has made no representations or guarantees to Client regarding the outcome of the Matter or the time necessary to complete the Matter. Downey Brand makes no such promises or guarantees. The provisions of the Engagement Letter and Terms of Engagement Agreement may only be amended in writing and signed by both parties.
DATED: April 4, 2023 BY:
Michael Day
Legal Services for City of Norco
April 4, 2023
ACCEPTANCE
The undersigned hereby accepts the terms and conditions set forth in this Agreement and the accompanying Engagement Letter pertaining to the engagement of Downey Brand LLP for the legal services described in this Agreement and the accompanying Engagement Letter. In doing so, the undersigned represents and warrants that the City of Norco has read and understood the terms disclosures and provisions of this Agreement, and further warrants and represents that Lori Sasson is authorized and competent to execute this agreement on behalf of the City of Norco.
DATED: April 19, 2023 BY:
Robin Grundmeyer
Mayor
City of Norco
ATTEST:
_____________________________
Dana Roa, CMC, City Clerk
City of Norco
Approved As To Form
_____________________________
Harper & Burns, LLC
1856132v1
City Council
STAFF REPORT
Date: April 19, 2023 Agenda Item:
5.A.
To: Honorable Mayor and City Council Members
Prepared By: Diane Germain, Deputy City Clerk
Department: City Clerk
SUBJECT:
Ordinance No. 1096, Second Reading: Amend Specific Text in Chapter 6.12 "Dogs, Licensing, Control, Rabies"
RECOMMENDATION:
Adopt Ordinance No. 1096, Second Reading, to amend specific text in Norco Municipal Code Sections 6.12.130 and 6.12.150 to make corrections and ensure consistency pertaining to Vicious Dogs. Code Amendment 2023-02.
SUMMARY:
The First Reading of Ordinance No. 1096 was held on April 5, 2023, and was adopted by City Council. Ordinance No. 1096 will amend Norco Municipal Code Chapter 6.12 "Dogs, Licensing, Control, Rabies" to modify certain language in Sections 6.12.130 "Certain Acts Made Unlawful", and 6.12.150 "Vicious Doges to be Restrained - Violation" to make corrections and ensure consistency pertaining to vicious dogs.
FISCAL IMPACT:
There is no financial impact.
RELATIONSHIP TO STRATEGIC PLAN:
This item is consistent with Strategic Plan Direction #1 - Public Health, Safety and Wellness: Enhance quality of life by promoting public health, safety and wellness initiative for all community members.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney
ATTACHMENT(S):
Ordinance 1094
ORDINANCE NO. 1094
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NORCO,
CALIFORNIA AMENDING SPECIFIC TEXT IN THE NORCO
MUNICIPAL CODE CHAPTER 6.12 “DOGS-LICENSING-CONTROLRABIES” PERTAINING TO VICIOUS DOGS, IN ORDER TO MAKE CORRECTIONS AND ENSURE CONSISTENCY. CODE AMENDMENT
2023-02
WHEREAS, the City of Norco initiated Code Amendment 2023-02 to amend specific text in Sections 6.12.130 “Certain Acts Made Unlawful” and 6.12.150 “Vicious Dogs to be Restrained – Violation”, fix conflicting direction within the Norco Municipal Code pertaining to Vicious Dogs; and
WHEREAS on November 17, 2021, the City Council approved Code Amendment 2021-07 to add Chapter 8.07 “Potentially Dangerous/Vicious Dogs” to the Norco Municipal Code (NMC); and
WHEREAS, the NMC Chapter 6.12 “Dogs-Licensing-Control-Rabies”, Sections 6.12.130 and 6.12.150 contain language pertaining to Vicious Dogs; and WHEREAS, this amendment to NMC Chapter 6.12 is necessary in order to avoid confusion or misinterpretation of the NMC regarding Vicious Dogs, and potential violations; and
WHEREAS, the Code Amendment was duly submitted to said City’s City Council for decision at a public hearing for which proper notice was given; and WHEREAS, the Code Amendment was scheduled for public hearing on March 15, 2023, on or about 7:00 p.m. in the Council Chambers at 2820 Clark Avenue, Norco, California, 92860; and
WHEREAS, the Code Amendment was continued for the public hearing to April 5, 2023, on or about 7:00 p.m. in the Council Chambers at 2820 Clark Avenue, Norco, California, 92860; and
WHEREAS, the City Council held a public hearing and received both oral and written testimony pertaining to the Code Amendment.
NOW, THEREFORE, the City Council of the City of Norco, California, does ordain as follows:
SECTION 1:
6.12.130 Certain Acts Made Unlawful.
It is unlawful:
Ordinance No. 1094 – Amend Text to NMC Chapter 6.12
April 19, 2023
(1) For the owner or person in control of any dog to permit such dog to run at large in any public park or public building or upon any public-school grounds, or near any bus stop, or to permit a female dog in heat to run at large at any time; (2) For any person to interfere with, oppose or resist any officer or person empowered to enforce the provisions of this chapter while such officer or other person is engaged in the performance of his duties as herein provided;
(3) For any person to remove any impounded animal from the city pound without the consent of the officer in charge thereof;
(4) For any person knowingly to violate any of the provisions of this chapter; (5) For any person, owning or having charge of the custody and control of a dog, whether licensed or unlicensed, to permit such dog to be at large on or in any place in the city of Norco, California, unless such dog is securely leashed and under the immediate control of the person or is confined within the property of the person by an enclosure, which prevents the dog from leaving the property, or is confined in a vehicle in such a manner that it is unable to escape therefrom; provided, however, such a person is not in violation of this section if such a dog is on the person’s property and under his immediate, continuing dominion and control, although not leashed or confined as required hereinabove. “Immediate continuing dominion and control” as used in this subsection is limited in its meaning to the exercise of discipline by the person over a dog in such a manner that the dog by training is unable to run from the person’s premises. It is the intent of the city council that the exception for dogs under the immediate continuing dominion and control of a person is a matter of defense to be alleged and proved by a person claiming to come within said exception and is not an exception which the people of the state of California have the burden of proving in a case charging a violation of this subsection;
(6) For any person to keep or harbor more than ten cats, other than kittens under the age of three months, upon any residential premises of less than one acre. (Ord. 157 Sec. 2, 1971; Ord. 8 Sec. 2 (County Ords. 455.4 1, 2; 455.2 8: 455.1 8: 455 8), 1964)
6.12.150 Vicious Dogs to be Restrained—Violation.
If it shall be determined by the city manager or his officially designated representative, after giving the order of quarantine mentioned in this chapter, that the dog is a vicious dog, as defined in Section 8.07.010 of this Code, although not afflicted with rabies, the vicious dog shall be subject to, and handled pursuant to, Chapter 8.07 (Ord. 158 Sec. 2 (part), 1971; Ord. 8 Sec. 2 (County Ord 455.2 10: 455.1 10: 455 10), 1964) SECTION 2: EFFECTIVE DATE: This Ordinance shall become effective thirty (30) days after final passage thereof.
SECTION 3: SEVERABILITY: If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by Page 213 of 275 Ordinance No. 1094 – Amend Text to NMC Chapter 6.12
April 19, 2023
the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Ordinance. The Council hereby declares that it would have passed this ordinance, and each section, subsection, sentence, clause, and phrase, hereof, irrespective of the fact that any one or more of the sections, subsections, sentences, clauses, or phrases hereof be declared invalid or unconstitutional.
SECTION 4: POSTING: The Mayor shall sign this Ordinance and the City Clerk shall attest thereto and shall cause the same within fifteen (15) days of its passage to be posted at no less than five (5) public places within the City of Norco.
PASSED AND ADOPTED by the City Council of the City of Norco, California, at a regular meeting held on April 19, 2023.
_____________________________
Robin Grundmeyer, Mayor
City of Norco, California
ATTEST:
_________________________
Dana Roa, CMC, City Clerk
City of Norco, California
I, Dana Roa, CMC, City Clerk of the City of Norco, California, do hereby certify that the foregoing Ordinance was scheduled for a regular meeting of the City Council of the City of Norco, California, duly held on March 15, 2023, continued and introduced at a regular meeting scheduled on April 5, 2023, and thereafter at a regular meeting of said City Council duly held on the April 19, 2023, it was duly passed and adopted by the following roll call vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Norco, California, this April 19, 2023. __________________________
Dana Roa, CMC, City Clerk
City of Norco, California
City Council
STAFF REPORT
Date: April 19, 2023 Agenda Item:
6.A.
To: Honorable Mayor and City Council Members
Prepared By: Alma Robles, Planning Director
Department: Planning
SUBJECT:
Public Hearing: Adopt an in-lieu fee schedule for Ownership Housing and Apartment Development Projects subject to the Norco Municipal Code Chapter 18.70 “Inclusionary Housing Program”.
RECOMMENDATION:
Adopt Resolution No. 2023-15, to establish an In-Lieu Fee Schedule related to the “Inclusionary Housing Program”.
SUMMARY:
On July 20, 2022, the City Council adopted Ordinance No. 1083, which created an Inclusionary Housing Program. Section 18.70.10 “Alternatives” allows for developers (under defined criteria) to pay a fee in-lieu of producing affordable housing units on site.
BACKGROUND:
Ordinance No. 1083 imposes the following basic requirements on residential development:
1. Applies to residential projects with five or more units.
2. Income and affordability requirements imposed are:
a. Six percent (6%) of the units must be allocated to moderate income households;
b. Nine percent (9%) of the units must be allocated to low income household.
3. Permits projects with 20 or fewer units to pay an in-lieu fee at the developer’s discretion.
The City engaged Keyser Marston Associates, Inc. (KMA) to assist in creating in-lieu fee schedules for ownership housing and apartment development projects that are subject to the adopted Zone Code Amendment (ZCA) 2022-03 requirements (Ordinance 1083). The KMA analysis is presented in Exhibit "A" - In-Lieu Fee Analysis dated February 19, 2023.
The approach, analysis and findings are summarized in the following sections.
In-Lieu Fee Survey: To provide context to the financial analysis, KMA surveyed Southern California Inclusionary Housing programs that provide an in-lieu fee payment option. The survey results demonstrate that a wide variety of methodologies are applied, but some commonly used concepts are:
1. An “Affordability Gap” methodology is used to set the in-lieu fee payment amounts.
An Affordability Gap can generally be defined as the difference between the achievable market rate sales prices or rents and the allowable sales prices or rents for the designated affordable housing units.
2. The in-lieu fee payment amounts are varied among different residential product types.
3. Sliding scales are used to mitigate the financial impact affordable housing requirements have on small projects.
4. Projects up to a defined size threshold are allowed to pay an in-lieu fee at the developer’s discretion.
Approach: The purpose of the KMA in-lieu fee analysis was to estimate the fee amounts that can be supported by ownership housing and apartment development projects. The analysis was based on the affordable housing requirements imposed by Ordinance No. 1083, and on current market and financial conditions.
Residential Development Product Types: KMA analyzed the following residential product types:
1. Ownership housing development:
a. Densities of 20 units per acre or greater are defined as condominium projects. b. Densities of five to 20 units per acre are defined as townhome projects. c. Densities of one to five units per acre are defined as single family home projects.
2. Apartment developments are defined as projects that are proposed to be rented rather than sold. Apartment developments that obtain a subdivision tract map are treated as ownership housing developments for the purposes of the Inclusionary Housing in-lieu fee requirements.
Recommendations: Approved ZCA limits the use of the in-lieu fee option to projects with 20 or fewer units. To reflect the disproportionate impact that Inclusionary Housing obligations have on small projects, KMA recommended that City impose the following in-lieu fee schedules:
Recommended In-Lieu Fee Payment Schedule
Per Square Foot of Total Saleable or Leasable Area in the Residential Project Ownership Housing Development
Units Condos Townhomes Single
Family Apartments
5 $2.16 $2.34 $2.91 $1.34
6 $4.31 $4.69 $5.81 $2.69
7 $6.47 $7.03 $8.72 $4.03
8 $8.63 $9.38 $11.63 $5.38
9 $10.78 $11.72 $14.53 $6.72
10 $12.94 $14.06 $17.44 $8.06
11 $15.09 $16.41 $20.34 $9.41
12 $17.25 $18.75 $23.25 $10.75
13 $19.41 $21.09 $26.16 $12.09
14 $21.56 $23.44 $29.06 $13.44
15 $23.72 $25.78 $31.97 $14.78
16 $25.88 $28.13 $34.88 $16.13
17 $28.03 $30.47 $37.78 $17.47
18 $30.19 $32.81 $40.69 $18.81
19 $32.34 $35.16 $43.59 $20.16
20 $34.50 $37.50 $46.50 $21.50
CEQA ANALYSIS: Adoption of the in-lieu fee schedule is exempt from review under the California Environmental Quality Act (CEQA) as it is not considered a project under Public Resources Code Section 21065 and CEQA Guidelines Section 15378 because this fee adoption will not result in a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.
This resolution will not affect the physical environment by permitting a new use or intensifying an existing use. Instead, the resolution provides the payment of an in-lieu fee as one of a range of means by which individual projects may satisfy the requirements imposed by Zone Code Amendment 2022-03 (Ordinance 1083).
FISCAL IMPACT:
It is not possible at this time to accurately predict the dollar amount of in-lieu fee revenue that will be generated by the adoption of the in-lieu fee schedule. The magnitude of the in-lieu fee revenues will be predicated on the amount of residential activity, the size of the residential development projects, and the percentage of eligible projects in which the developer chooses to pay a fee in lieu of producing affordable units on site within the residential development.
RELATIONSHIP TO STRATEGIC PLAN:
Adopting the in-lieu fee schedule is consistent with Strategic Direction #3 - Economic Development and Financial Stability: Assure financial stability by expanding development efforts, diversifying revenue sources and continuing prudent financial management.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):
Resolution No. 2023-15
Exhibit A
RESOLUTION 2023-15
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORCO,
CALIFORNIA, APPROVING AND ADOPTING THE IN-LIEU FEE SCHEDULE,
FOR OWNERSHIP HOUSING AND APARTMENT DEVELOPMENT
PROJECTS SUBJECT TO THE NORCO MUNICIPAL CODE CHAPTER 18.70 “INCLUSIONARY HOUSING PROGRAM”.
WHEREAS, on July 20, 2022, the City Council adopted Ordinance No. 1083 (Zone Code Amendment 2022-03), which created an Inclusionary Housing Program; Section
18.70.10 “Alternatives” allows for developers (under defined criteria) to pay a fee in-lieu of producing affordable housing units on site; and
WHEREAS, the in-lieu fee schedule was duly submitted to said City’s City Council for decision at a public hearing for which proper notice was given; and WHEREAS, the public hearing was scheduled on April 19, 2023, on or about 7:00 p.m. in the Council Chamber at 2820 Clark Avenue, Norco, California, 92860; and WHEREAS, the City Council held a public hearing and received both oral and written testimony pertaining to the in-lieu fee schedule; and
WHEREAS, adoption of this resolution will implement in-lieu fee payment schedules that will be offered, with defined limitations, to the developers of residential projects; and WHEREAS, adoption of the in-lieu fee schedule is exempt from review under the California Environmental Quality Act (CEQA) as it is not considered a project under Public Resources Code Section 21065 and CEQA Guidelines Section 15378 because this fee adoption will not result in a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.
NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Norco, California, does hereby approve and adopt the fee schedule as follows:
SECTION 1: Approve the In-Lieu Fee Schedule, as presented in Exhibit A.
SECTION 2: EFFECTIVE DATE: This Fee Schedule shall become effective upon adoption of the Resolution.
Resolution 2023-15 – Adopt In-Lieu Fee Schedule
April 19, 2023
PASSED AND ADOPTED by the City Council of the City of Norco, California, at a regular meeting held April 19, 2023
________________________
Robin Grundmeyer, Mayor
City of Norco, California
ATTEST:
___________________________
Dana Roa, CMC, City Clerk
City of Norco, California
I, DANA ROA, CMC, City Clerk of the City of Norco, California, do hereby certify that the foregoing Resolution was introduced and adopted by the City Council of the City of Norco, California, at a regular meeting held on April 19, 2023, by the following vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Norco, California, this April 19, 2023.
_____________________________
Dana Roa, CMC, City Clerk
City of Norco, California
In-Lieu Fee Payment Schedules
Per Square Foot of Total Saleable or Leasable Area in the Residential Project Ownership Housing Development
Units Condos Townhomes
Single
Family Apartments
5 $2.16 $2.34 $2.91 $1.34
6 $4.31 $4.69 $5.81 $2.69
7 $6.47 $7.03 $8.72 $4.03
8 $8.63 $9.38 $11.63 $5.38
9 $10.78 $11.72 $14.53 $6.72
10 $12.94 $14.06 $17.44 $8.06
11 $15.09 $16.41 $20.34 $9.41
12 $17.25 $18.75 $23.25 $10.75
13 $19.41 $21.09 $26.16 $12.09
14 $21.56 $23.44 $29.06 $13.44
15 $23.72 $25.78 $31.97 $14.78
16 $25.88 $28.13 $34.88 $16.13
17 $28.03 $30.47 $37.78 $17.47
18 $30.19 $32.81 $40.69 $18.81
19 $32.34 $35.16 $43.59 $20.16
20 $34.50 $37.50 $46.50 $21.50
EXHIBIT A
INCLUSIONARY HOUSING:
IN-LIEU FEE ANALYSIS
Prepared for:
City of Norco
Prepared by:
Keyser Marston Associates, Inc.
February 19, 2023
Inclusionary Housing: In-Lieu Fee Analysis Page i
Keyser Marston Associates, Inc, 2301003.NOR / 16102.002.001 February 19, 2023
TABLE OF CONTENTS
I. EXECUTIVE SUMMARY.................................................................................................................1 A. BACKGROUND ...................................................................................................................................1 B. FINDINGS .........................................................................................................................................2 II. APPROACH ..................................................................................................................................4 A. METHODOLOGY .................................................................................................................................4 B. DEVELOPMENT PROTOTYPES.................................................................................................................4 C. ANALYSIS ORGANIZATION ....................................................................................................................7 III. OWNERSHIP HOUSING DEVELOPMENT ANALYSIS........................................................................8 A. SALES PRICE ESTIMATES.......................................................................................................................8 B. ESTIMATED AFFORDABILITY GAPS – OWNERSHIP HOUSING DEVELOPMENT...................................................12 C. IN-LIEU FEE CALCULATIONS – OWNERSHIP HOUSING DEVELOPMENT ..........................................................14 IV. APARTMENT DEVELOPMENT ANALYSIS ..................................................................................... 16 A. APARTMENT RENT ESTIMATES ............................................................................................................16 B. ESTIMATED AFFORDABILITY GAPS – APARTMENT DEVELOPMENT................................................................18 C. IN-LIEU FEE CALCULATIONS – APARTMENT DEVELOPMENT........................................................................19 V. INCLUSIONARY HOUSING PROGRAM IN-LIEU FEE SURVEY......................................................... 20 VI. SUMMARY................................................................................................................................. 21 A. DEVELOPMENT PROTOTYPES...............................................................................................................21 B. PROJECTED MARKET RATE SALES PRICES AND RENTS ...............................................................................21 C. AFFORDABLE SALES PRICES AND RENTS .................................................................................................22 D. AFFORDABILITY GAPS ........................................................................................................................24 E. SUPPORTABLE IN-LIEU FEES................................................................................................................24
Inclusionary Housing: In-Lieu Fee Analysis Page ii
Keyser Marston Associates, Inc, 2301003.NOR / 16102.002.001 February 19, 2023
ATTACHMENTS
Attachment 1 Ownership Housing Development
Appendix A Home Sales Survey
Appendix B Affordable Sales Price Calculations
Exhibit I Condominium Prototype
Exhibit II Townhome Prototype
Exhibit III Detached Single Family Home Prototype
Appendix C In-Lieu Fee Calculations
Exhibit I Condominium Prototype
Exhibit II Townhome Prototype
Exhibit III Detached Single Family Home Prototype
Attachment 2 Apartment Development
Appendix A Rent Survey
Appendix B Affordable Rent Calculations
Appendix C In-Lieu Fee Calculations
Attachment 3 Inclusionary Housing Program: In-Lieu Fee Survey
Inclusionary Housing: In-Lieu Fee Analysis Page 1
Keyser Marston Associates, Inc, 2301003.NOR / 16102.002.001 February 19, 2023 I. EXECUTIVE SUMMARY
A. Background
On July 20, 2022, the City Council of the City of Norco (City) approved the adoption Ordinance No. 1083 (Ordinance). The Ordinance amended Norco Municipal Code Title 18 by adding Chapter 18.70 “Inclusionary Housing Program” Zone Code Amendment 2022-3 (Chapter 18.70). Under defined circumstances, the Ordinance allows developers to pay a fee in lieu of producing affordable housing units.
Keyser Marston Associates, Inc. (KMA) was engaged by the City to assist in creating in-lieu fee schedules for ownership housing and apartment development projects that are subject to the Ordinance requirements. The following report describes the methodology and assumptions that KMA used in preparing this Inclusionary Housing Program: In-lieu Fee Analysis (In-Lieu Fee Analysis).
The Ordinance imposes the following basic requirements on residential development:
1. Residential projects with five or more units are subject to the Ordinance requirements.
2. The income and affordability requirements are set as follows:
a. Six percent (6%) of the units must be allocated to moderate income households; and b. Nine percent (9%) of the units must be allocated to low income households.
3. Projects with 20 or fewer units have the right to pay an in-lieu fee at the developer’s discretion.
KMA created prototype developments to assist in determining the supportable in-lieu fees. The housing categories that were tested are:
1. The following types of ownership housing development were identified:
a. Densities of 20 units per acre or greater are defined as condominium projects. b. Densities of five to 20 units per acre are defined as townhome projects. c. Densities of one to five units per acre are defined as single family home projects.
Inclusionary Housing: In-Lieu Fee Analysis Page 2
Keyser Marston Associates, Inc, 2301003.NOR / 16102.002.001 February 19, 2023
2. Apartment developments are defined as projects that are proposed to be rented rather than sold. Apartment developments that obtain a subdivision tract map are treated as ownership housing developments for the purposes of the Inclusionary Housing in-lieu fee requirements.
B. Findings
The results of the KMA financial analysis are summarized in the following tables:
BASE IN-LIEU FEE AMOUNTS
Supportable In-Lieu Fee Payments
Base Fee Amounts
Per Square Foot of Total Saleable or Leasable Area in the Residential Project Density Ranges
(Units / Acre) In-Lieu Fee
Ownership Housing Development
Condominiums 20+ $34.50
Townhomes 5 – 20 $37.50
Single Family Homes 1 – 5 $46.50
Apartment Development All $21.50
The in-lieu fee payment amount be re-evaluated at least every five years. To allow in-lieu fees to keep pace with changes in the marketplace during the intervening periods, the in-lieu fees should continue to be adjusted each year based on the percentage change in new home prices in Riverside County as published annually by the Real Estate Research Council (RERC).
IN-LIEU FEE SCHEDULES
inclusionary housing requirements have a disproportionate impact on smaller projects, because there are fewer market rate units available to spread the impact created by the income and affordability standards. To reflect this, KMA recommends that City impose the in-lieu fee on a sliding scale basis.
The Ordinance limits the use of the in-lieu fee option to projects with 20 or fewer units. KMA recommends that the following in-lieu payment schedules be applied, in 2023 dollars:
Inclusionary Housing: In-Lieu Fee Analysis Page 3
Keyser Marston Associates, Inc, 2301003.NOR / 16102.002.001 February 19, 2023 Recommended In-Lieu Fee Payment Schedules
Per Square Foot of Total Saleable or Leasable Area in the Residential Project Ownership Housing Development
Units Condos Townhomes
Single
Family Apartments
5 $2.16 $2.34 $2.91 $1.34
6 $4.31 $4.69 $5.81 $2.69
7 $6.47 $7.03 $8.72 $4.03
8 $8.63 $9.38 $11.63 $5.38
9 $10.78 $11.72 $14.53 $6.72
10 $12.94 $14.06 $17.44 $8.06
11 $15.09 $16.41 $20.34 $9.41
12 $17.25 $18.75 $23.25 $10.75
13 $19.41 $21.09 $26.16 $12.09
14 $21.56 $23.44 $29.06 $13.44
15 $23.72 $25.78 $31.97 $14.78
16 $25.88 $28.13 $34.88 $16.13
17 $28.03 $30.47 $37.78 $17.47
18 $30.19 $32.81 $40.69 $18.81
19 $32.34 $35.16 $43.59 $20.16
20 $34.50 $37.50 $46.50 $21.50
IN-LIEU FEE SURVEY
To provide context to the financial analysis, KMA surveyed Southern California inclusionary housing programs that provide an in-lieu fee payment option. The survey results demonstrate that a wide variety of methodologies applied, but some commonly used concepts are:
1. Using an Affordability Gap methodology to set the in-lieu fee payment amounts.
2. Varying the in-lieu fee payment amount among different residential product types.
3. Using sliding scales to mitigate the financial impact the requirement has on small projects.
4. Allowing projects up to a defined size threshold to pay an in-lieu fee by right.
Inclusionary Housing: In-Lieu Fee Analysis Page 4
Keyser Marston Associates, Inc, 2301003.NOR / 16102.002.001 February 19, 2023 II. APPROACH
The purpose of this In-Lieu Fee Analysis is to estimate the in-lieu fee amounts that can be supported by ownership housing and apartment development projects. The KMA analysis is based on the affordable housing requirements that have been enacted, and on current market and financial conditions.
A. Methodology
The foundational premise of this analysis is that an in-lieu fee should correlate to the “Affordability Gap” associated with producing the affordable units required by the Inclusionary Housing Program.
The Affordability Gap can generally be defined as the difference between the achievable market rate sales prices or rents and the allowable sales prices or rents for the designated affordable housing units.
The KMA In-Lieu Fee Analysis is based on the evaluation of prototype developments that are tailored to reflect the specific characteristics of the Norco real estate market. KMA created multiple ownership housing and apartment development prototypes for use in this analysis.
B. Development Prototypes
The pro forma analyses that KMA has prepared are based on prototype residential developments. To assist in creating the development prototypes, KMA reviewed the following:
1. The Sixth Cycle Housing Element that was prepared in May 2022 (Housing Element);
2. The Housing Development Overlay documentation; and
3. The ownership housing and apartment projects identified in KMA’s market surveys.
The following criteria were included in the analysis:
1. The prototypes used in this analysis do not represent actual projects. Instead, the prototypes represent composites of projects identified as part of the analysis process.
2. For projects with 20 or fewer units, the Inclusionary Housing Program’s 6% moderate income plus 9% low income requirement results in fractional unit obligations in both income categories.
Recognizing that this overstates the obligation, KMA created prototypes that result in whole number obligations. The prototypes used in this analysis are:
a. Ownership housing development prototypes: 40 units; and
Inclusionary Housing: In-Lieu Fee Analysis Page 5
Keyser Marston Associates, Inc, 2301003.NOR / 16102.002.001 February 19, 2023 b. Apartment development prototypes: 100 units.
OWNERSHIP HOUSING DEVELOPMENT
The prototype ownership housing developments can be described as follows:
Condominium Prototype
1. The development site area is set at two acres.
2. The density is set at 20 units per acre.
3. The prototype includes the following unit mix:
a. 35% two-bedroom units;
b. 55% three-bedroom units; and
c. 10% four-bedroom units.
4. The weighted average unit size is set at 1,460 square feet of saleable area.
5. The prototype is based on the assumption that the parking is provided in covered and enclosed spaces.
Townhome Prototype
1. The development site area is set at 3.3 acres.
2. The density is set at 12 units per acre.
3. The prototype includes the following unit mix:
a. 10% two-bedroom units;
b. 55% three-bedroom units; and
c. 35% four-bedroom units.
4. The weighted average unit size is set at 1,880 square feet of saleable area.
5. The prototype is based on the assumption that the parking is provided in attached garages.
Inclusionary Housing: In-Lieu Fee Analysis Page 6
Keyser Marston Associates, Inc, 2301003.NOR / 16102.002.001 February 19, 2023 Detached Single Family Home Prototype
1. The development site area is set at 10 acres.
2. The density is set at 2.0 units per acre.
3. The prototype includes the following unit mix:
a. 10% three-bedroom units;
b. 45% four-bedroom units; and
c. 45% five-bedroom units.
4. The weighted average unit size is set at 2,680 square feet of saleable area.
5. The prototype is based on the assumption that the parking is provided in attached garages.
APARTMENT DEVELOPMENT
The apartment development prototype represents a product type being developed in communities adjacent to Norco. The prototype embodies the following characteristics:
Apartment Prototype
1. The development site area is set at 3.3 acres.
2. The density is set at 30 units per acre.
3. The prototype includes the following unit mix:
a. 45% two-bedroom units;
b. 50% three-bedroom units; and
c. 5% three-bedroom units.
4. The weighted average unit size is set at 958 square feet of leasable area.
5. The prototype is based on the assumption that the parking is provided in covered and enclosed spaces.
Inclusionary Housing: In-Lieu Fee Analysis Page 7
Keyser Marston Associates, Inc, 2301003.NOR / 16102.002.001 February 19, 2023 C. Analysis Organization
The KMA analysis is supported by the following Attachments and Appendices:
ATTACHMENT 1: OWNERSHIP HOUSING DEVELOPMENT
Appendices: Ownership Housing Development
Appendix A: Home Sales Survey
Appendix B: Affordable Sales Price Calculations
Appendix C: In-Lieu Fee Calculations
ATTACHMENT 2: APARTMENT DEVELOPMENT
Appendices: Apartment Development
Appendix A: Rent Survey 4+ Star Properties
Appendix B: Affordable Rent Calculations
Appendix C: In-Lieu Fee Calculations
ATTACHMENT 3: INCLUSIONARY HOUSING PROGRAM: IN-LIEU FEE SURVEY KMA undertook a survey of Southern California jurisdictions that have enacted inclusionary housing programs. KMA did not find any inland empire cities that are currently imposing inclusionary housing restrictions on residential development. As a result, KMA limited the survey to jurisdictions located in Orange, Los Angeles, and San Diego Counties that provide an in-lieu fee option within their inclusionary housing program.
Inclusionary Housing: In-Lieu Fee Analysis Page 8
Keyser Marston Associates, Inc, 2301003.NOR / 16102.002.001 February 19, 2023 III. OWNERSHIP HOUSING DEVELOPMENT ANALYSIS
To information KMA used in the ownership housing development analysis can be described as follows:
1. No ownership housing development projects of significant size have recently been developed in Norco. For use in devising ownership housing prototypes, KMA compiled the following information:
a. The development standards imposed on properties located within the Housing Development Overlay areas;
b. The Municipal Code standards for detached single family homes on properties subject to R-1 zoning; and
c. The potential residential development sites identified in the Housing Element.
2. KMA undertook a survey to identify the sales prices being achieved by market rate home ownership units. The survey data is comprised of the following:
a. Sales of condominiums and townhomes in the area adjacent to Norco; and b. Sales of detached single family homes in Norco.
3. KMA prepared “Affordable Sales Price” calculations for condominium, townhome and detached single family home projects.
Based on the preceding information, KMA prepared Affordability Gap analyses to estimate the in-lieu fee amounts that are equivalent to the financial impact associated with fulfilling the Inclusionary Housing Program requirements on site within a market rate ownership housing development project.
A. Sales Price Estimates
MARKET RATE SALES PRICES
KMA used the home sales survey presented in Attachment 1 – Appendix A to assist in projecting the achievable market rate sales prices for the prototype projects being analyzed. The survey includes units that were sold within the past 12 months and that were constructed after 2000. Based in part on the survey results, the KMA market rate sales price projections are presented in the following table.
Inclusionary Housing: In-Lieu Fee Analysis Page 9
Keyser Marston Associates, Inc, 2301003.NOR / 16102.002.001 February 19, 2023 Projected Market Rate Sales Prices
Ownership Housing Development
Number of Bedrooms Condominiums Townhomes
Single Family
Homes
2 $477,000 $540,000
3 $540,000 $641,000 $796,000
4 $637,000 $676,000 $913,000
5 $1,023,000
Weighted Average
Price Per Square Foot
of Saleable Area
$361 $343 $355
AFFORDABLE SALES PRICE CALCULATIONS
The “Affordable Sales Price” estimates are based on the calculation methodology defined in Ordinance.
In this analysis, the household incomes are based on 2022 information produced by the California Department of Housing and Community Development (HCD) for Riverside County as a whole. HCD publishes this information annually.
The Affordable Sales Price calculations are presented in Attachment 1 - Appendix B. The elements included in the calculations are described in the following sections of this report.
Household Size
The Ordinance applies the California Health & Safety Code (H&SC) Section 50052.5 definition of “family size appropriate for the unit” in setting the benchmark household sizes that are used in the Affordable Sales Price calculations. The H&SC Section 50052.5 benchmark is based on the number of bedrooms in the home plus one.1 This benchmark is used solely for the purposes of calculating the Affordable Sales Price. It is neither an occupancy cap nor a floor.
1 For example, the imputed household size for a three-bedroom unit is four persons.
Inclusionary Housing: In-Lieu Fee Analysis Page 10
Keyser Marston Associates, Inc, 2301003.NOR / 16102.002.001 February 19, 2023 Household Income
Moderate Income Households
For moderate income households, the Ordinance calls for the Affordable Sales Prices to be calculated based on 110% of area median income (AMI) for a household size equal to the number of bedrooms in the home plus one. This measurement is only used for setting the Affordable Sales Prices. Households with incomes of up to 120% AMI would qualify to reside in moderate income units.
Low Income Households
For low income households, the Ordinance calls for the Affordable Sales Prices to be calculated based on 80% of AMI for a household size equal to the number of bedrooms in the home plus one. This measurement is only used for setting the Affordable Sales Prices.
Income Allocated to Housing-Related Expenses
The Ordinance allocates the following percentages of the benchmark household income to the payment of housing-related expenses:
Moderate Income 40%
Low Income 30%
Housing-Related Expenses
Based on research undertaken by KMA, the variable housing related expense assumptions used in this analysis are presented in the following table.
Inclusionary Housing: In-Lieu Fee Analysis Page 11
Keyser Marston Associates, Inc, 2301003.NOR / 16102.002.001 February 19, 2023 Variable Housing Related Expenses
Ownership Housing Development
Monthly HOA, Insurance &
Maintenance
Number of
Bedrooms
Monthly Utility
Allowance 2
Condominiums /
Townhomes
Detached Single
Family Homes
Two $235 $350
Three $279 $260 $450
Four $324 $230 $500
Five $372 $550
The property tax expense estimate is based on 1.15% of the home’s estimated market value. This is based on the fact that the Ordinance allows the owner of an “Inclusionary Unit” to resell the unit at an unrestricted market rate price. Under this structure, the City would be entitled to receive a payment from the seller equal to the amount of the original Affordability Gap plus a share of the equity appreciation achieved upon the resale of the home.
Supportable Mortgage Amount
The mortgage amounts used in the Affordable Sales Price calculations are estimated using the income available after the other housing-related expenses are paid. The mortgage terms used in this analysis were based on a 30-year fully amortizing loan at a 6.14% interest rate. 3 Benchmark Down Payment
KMA set the benchmark down payment at 5% of the estimated Affordable Sales Price. A down payment of this magnitude is commonly allowed by affordable housing programs. 2 Utilities allowances are based on costs comprised of electric heating, cooking and water heating; basic electric; air conditioning; and water, sewer, and trash services. The allowances are based on the Housing Authority of the County of Riverside schedule effective July 1, 2022. 3 Based on a 100 basis points premium applied to the Freddie Mac monthly average, between January and December 2022, for a fixed interest rate loan with a 30-year amortization period.
Inclusionary Housing: In-Lieu Fee Analysis Page 12
Keyser Marston Associates, Inc, 2301003.NOR / 16102.002.001 February 19, 2023 Affordable Sales Prices
Moderate Income Units
The Affordable Sales Price estimates for moderate income households are presented in the following table.
Estimated Affordable Sales Prices
Ownership Housing Development
Number of
Bedrooms Condominiums Townhomes
Detached Single
Family Homes
Moderate Income Units
2 $318,600 $283,300
3 $371,700 $305,700 $296,400
4 $397,400 $327,400 $304,900
5 $314,200
Low Income Units
Number of
Bedrooms Condominiums Townhomes
Detached Single
Family Homes
2 $91,800 $81,500
3 $119,700 $102,900 $44,400
4 $125,200 $118,800 $32,700
5 $21,900
B. Estimated Affordability Gaps – Ownership Housing Development The Affordability Gaps that were derived from the KMA analysis of a prototype ownership housing developments are presented in the following table.
Inclusionary Housing: In-Lieu Fee Analysis Page 13
Keyser Marston Associates, Inc, 2301003.NOR / 16102.002.001 February 19, 2023 Estimated Affordability Gaps Per Inclusionary Unit
Condominium Units
Ownership Housing Development
Number of
Bedrooms
Market Rate
Price Affordable Price
Affordability
Gap
Moderate Income Units
2 $477,000 $318,600 $158,400
3 $540,000 $371,700 $168,300
4 $637,000 $397,400 $239,600
Low Income Units
2 $477,000 $91,800 $385,200
3 $540,000 $119,700 $420,300
4 $637,000 $125,200 $511,800
Estimated Affordability Gaps Per Inclusionary Unit
Townhome Units
Ownership Housing Development
Number of
Bedrooms
Market Rate
Price Affordable Price
Affordability
Gap
Moderate Income Units
2 $540,000 $283,300 $256,700
3 $641,000 $305,700 $335,300
4 $676,000 $327,400 $348,600
Low Income Units
2 $540,000 $81,500 $458,500
3 $641,000 $102,900 $538,100
4 $676,000 $118,800 $557,200
Inclusionary Housing: In-Lieu Fee Analysis Page 14
Keyser Marston Associates, Inc, 2301003.NOR / 16102.002.001 February 19, 2023 Estimated Affordability Gaps Per Inclusionary Unit
Detached Single Family Homes
Ownership Housing Development
Number of
Bedrooms
Market Rate
Price Affordable Price
Affordability
Gap
Moderate Income Units
3 $796,000 $296,400 $499,600
4 $913,000 $304,900 $608,100
5 $1,023,000 $314,200 $708,800
Low Income Units
3 $796,000 $44,400 $751,600
4 $913,000 $32,700 $880,300
5 $1,023,000 $21,900 $1,001,100
C. In-Lieu Fee Calculations – Ownership Housing Development The weighted average Affordability Gaps are translated into the in-lieu fee payment that would be required to fulfill the affordable housing requirements on site within a proposed market rate ownership housing development. These calculations are presented in Attachment 1 -Appendix C, and the results are summarized in the following tables.
Supportable In-Lieu Fee Payments
Ownership Housing Development
Prototype
Weighted Average
Affordability Gap
In-Lieu Fee Payment
Per Square Foot of
Saleable Area
Condominiums $335,500 $34.50
Townhomes $468,600 $37.50
Detached Single Family Homes $828,700 $46.50
Inclusionary Housing: In-Lieu Fee Analysis Page 15
Keyser Marston Associates, Inc, 2301003.NOR / 16102.002.001 February 19, 2023 The Ordinance limits the use of the in-lieu fee option to projects with 20 or fewer units. KMA recommends that the following in-lieu payment schedules be applied to ownership housing development, in 2023 dollars:
Recommended In-Lieu Fee Payment Schedule
Per Square Foot of Saleable Area in the
Ownership Housing Development
Number of Units Condominiums Townhomes
Detached Single
Family Homes
5 $2.16 $2.34 $2.91
6 $4.31 $4.69 $5.81
7 $6.47 $7.03 $8.72
8 $8.63 $9.38 $11.63
9 $10.78 $11.72 $14.53
10 $12.94 $14.06 $17.44
11 $15.09 $16.41 $20.34
12 $17.25 $18.75 $23.25
13 $19.41 $21.09 $26.16
14 $21.56 $23.44 $29.06
15 $23.72 $25.78 $31.97
16 $25.88 $28.13 $34.88
17 $28.03 $30.47 $37.78
18 $30.19 $32.81 $40.69
19 $32.34 $35.16 $43.59
20 $34.50 $37.50 $46.50
Inclusionary Housing: In-Lieu Fee Analysis Page 16
Keyser Marston Associates, Inc, 2301003.NOR / 16102.002.001 February 19, 2023 IV. APARTMENT DEVELOPMENT ANALYSIS
KMA surveyed the Norco market area and found that the vast majority of the apartment projects are located in Corona. The one exception is the newly constructed Vernola Marketplace project located Jurupa Valley. The survey results are presented in Attachment 2 – Appendix A.
KMA created an apartment development prototype using information from the Housing Development Overlay documentation, the Housing Element and the results of our market survey. Based on this information, KMA prepared an Affordability Gap analyses to estimate the in-lieu fee amounts that are equivalent to the financial impact associated with fulfilling the income and affordability requirements imposed by the Ordinance.
A. Apartment Rent Estimates
MARKET RATE RENTS
In the December 2022, KMA surveyed apartment projects that 4+ stars in the CoStar quality ranking system. The purpose of this survey was to assist in estimating the currently achievable market rents for the apartment prototypes being analyzed. Based in part on this survey, the projected market rate apartment rents are presented in the following table.
Projected Market Rate Rents
Apartment Development
Number of Bedrooms Monthly Rent
1 $2,290
2 $2,710
3 $3,330
Weighted Average
Rent Per Square Foot
of Leasable Area
$2.67
AFFORDABLE RENT CALCULATIONS
The “Affordable Rent” estimates are based on the calculation methodology defined in Ordinance. In this analysis, the household incomes are based on the 2022 Riverside County information that was published by HCD.
Inclusionary Housing: In-Lieu Fee Analysis Page 17
Keyser Marston Associates, Inc, 2301003.NOR / 16102.002.001 February 19, 2023 The Affordable Rent calculations are presented in Attachment 2 - Appendix B. The assumptions applied in the calculations are summarized in the following sections of this report.
Household Size
The family size appropriate for the unit is based on the H&SC Section 50052.5 standard of the number of bedrooms in the home plus one. As discussed previously, this is a benchmark for Affordable Rent calculation purposes only. It is neither an occupancy minimum nor a maximum.
Household Income
1. For moderate income households, the Ordinance calls for the Affordable Rents to be calculated based on 120% of AMI for a household size equal to the number of bedrooms in the home plus one.
2. For low income households, the Ordinance calls for the Affordable Rents to be calculated based on 80% of AMI for a household size equal to the number of bedrooms in the home plus one.
Income Allocated to Housing-Related Expenses
For both moderate and low income units the Ordinance allocates 30% of the benchmark household income to the payment of housing-related expenses.
Housing-Related Expenses
KMA’s calculations are based on the assumption that the tenants will be required to pay for electric heating, cooking and water heating; basic electric services; and air conditioning. The County of Riverside Housing Authority utilities allowances for energy efficient apartments that went into effect on July 1, 2022 were applied to this analysis.
The resulting Affordable Rents are summarized in the following table.
Inclusionary Housing: In-Lieu Fee Analysis Page 18
Keyser Marston Associates, Inc, 2301003.NOR / 16102.002.001 February 19, 2023 Estimated Affordable Rents
Apartment Development
Number of Bedrooms
One Two Three
Moderate Income Units
Maximum Monthly Housing Cost $2,097 $2,360 $2,622
(Less) Monthly Utility Allowance (65) (87) (109)
Maximum Moderate Income Rent $2,032 $2,273 $2,513
Low Income Units
Maximum Monthly Housing Cost $1,398 $1,573 $1,748
(Less) Monthly Utility Allowance (65) (87) (109)
Maximum Low Income Rent $1,333 $1,486 $1,639
B. Estimated Affordability Gaps – Apartment Development KMA estimated the Affordability Gaps associated with the prototype apartment projects using the following calculation methodology:
1. The differences between the estimated achievable market rate rents and the defined Affordable Rents were calculated for one-, two, and three-bedroom apartment units.
2. KMA assumed that the property taxes for projects that include designated affordable housing units would be based on a lower assessed value due to the reduction in net operating income that would be generated by the project. KMA deducted this lower property tax expense from the estimated rent difference.
3. The estimated “Net Annual Rent Difference Per Inclusionary Unit” represents the annual rent difference minus the estimated property tax savings.
4. The “Affordability Gap Per Inclusionary Unit” is estimated by capitalizing the Net Annual Difference Per Inclusionary Unit at the threshold return derived from a pro forma analysis of the prototype apartment development at unrestricted market rate rents.
Inclusionary Housing: In-Lieu Fee Analysis Page 19
Keyser Marston Associates, Inc, 2301003.NOR / 16102.002.001 February 19, 2023 The Affordability Gap calculations are provided in Attachment 2 – Appendix C, and the results are:
Estimated Affordability Gaps Per Inclusionary Unit
Apartment Development
Moderate Income Units $62,000
Low Income Units $187,000
C. In-Lieu Fee Calculations – Apartment Development
The Affordability Gaps Per Inclusionary Unit were converted into the in-lieu fee payment that would be required to fulfill the affordable housing requirements on site within a proposed market rate apartment development. The conversion calculations are presented in Attachment 2 – Appendix C, and the resulting supportable in-lieu fee payment amounts are summarized in the following table.
Supportable In-Lieu Fee Payment
Apartment Development
Weighted Average Affordability Gap $137,000
In-Lieu Fee Payment Per Square Foot of Leasable Area $21.50 KMA recommends that the following in-lieu payment schedules be applied to apartment projects with 20 or fewer units, in 2023 dollars:
Recommended In-Lieu Fee Payment Schedule
Per Square Foot of Leasable Area in the Apartment Development Number of Units
In-Lieu Fee Per
Square Foot Number of Units
In-Lieu Fee Per
Square Foot
5 $1.34 13 $12.09
6 $2.69 14 $13.44
7 $4.03 15 $14.78
8 $5.38 16 $16.13
9 $6.72 17 $17.47
10 $8.06 18 $18.81
11 $9.41 19 $20.16
12 $10.75 20 $21.50
Inclusionary Housing: In-Lieu Fee Analysis Page 20
Keyser Marston Associates, Inc, 2301003.NOR / 16102.002.001 February 19, 2023 V. INCLUSIONARY HOUSING PROGRAM IN-LIEU FEE SURVEY
Each jurisdiction has specific objectives for the in-lieu fee component of an inclusionary housing program. Common considerations are:
1. The jurisdiction’s overall inclusionary housing program goals;
2. The varying characteristics between ownership housing projects and apartment projects;
3. Project size thresholds;
4. The community’s view on residential density; and
5. The role the jurisdiction wishes to pay in implementing affordable housing development.
Within that context, the following in-lieu fee payment structures can be used:
1. The use of an Affordability Gap methodology ties the in-lieu fee amount to the effective cost to produce comparable affordable units in the community.
2. The use of a discounted in-lieu fee amount that encourages developers to select the fee option.
This provides a funding source for use in assisting dedicated affordable housing projects that can make use of outside leveraging sources.
3. The creation of a schedule that provides reduced in-lieu fees for small projects. This structure is provided to avoid disincentivizing the development of small residential projects.
KMA’s survey of 23 Southern California jurisdictions is presented in Attachment 3. As can be seen in the survey, a wide variety of techniques have been used in setting up in-lieu fee payment parameters.
However, the following common themes were identified:
1. The survey includes 23 jurisdictions located in Orange, Los Angeles, and San Diego Counties.
2. Sixteen (16) jurisdictions vary the in-lieu fee amount by residential project type.
3. Fourteen (14) jurisdictions use the Affordability Gaps to set the in-lieu fee payment amounts.
4. Eight jurisdictions apply a sliding scale in-lieu fee schedule.
5. Five jurisdictions cap the project size that is eligible to pay an in-lieu fee by right.
Inclusionary Housing: In-Lieu Fee Analysis Page 21
Keyser Marston Associates, Inc, 2301003.NOR / 16102.002.001 February 19, 2023 VI. SUMMARY
The following sections of this report summarize the assumptions and findings of the In-Lieu Fee Analysis.
A. Development Prototypes
The development scopes for the residential development prototypes that were analyzed in this analysis are presented in the following tables.
Ownership Housing Development Prototypes
Condominiums Townhomes
Detached Single
Family Homes
Site Area (Acres) 2.0 3.3 10
Total Number of Units 40 40 40
Density (Units Per Acre) 20 12 4
Average Unit Size (Sf) 1,460 1,875 2,675
Parking Covered &
Enclosed
Attached
Garages
Attached
Garages
Apartment Development Prototype
Site Area (Acres) 3.3
Total Number of Units 100
Density (Units Per Acre) 30
Average Unit Size 958
Parking Covered &
Enclosed
B. Projected Market Rate Sales Prices and Rents
The market rate ownership housing sales price and apartment rent estimates applied in this analysis are provided in the following tables.
Inclusionary Housing: In-Lieu Fee Analysis Page 22
Keyser Marston Associates, Inc, 2301003.NOR / 16102.002.001 February 19, 2023 Projected Market Rate Sales Prices
Ownership Housing Development
Number of Bedrooms Condominiums Townhomes
Single Family
Homes
2 $477,000 $540,000
3 $540,000 $641,000 $796,000
4 $637,000 $676,000 $913,000
5 $1,023,000
Weighted Average
Price Per Square Foot
of Saleable Area
$361 $343 $355
Projected Market Rate Rents
Apartment Development
Number of Bedrooms Monthly Rent
1 $2,290
2 $2,710
3 $3,330
Weighted Average
Rent Per Square Foot
of Leasable Area
$2.67
C. Affordable Sales Prices and Rents
The affordable sales prices and rents applied in the prototypes analyses are presented in the following tables:
Inclusionary Housing: In-Lieu Fee Analysis Page 23
Keyser Marston Associates, Inc, 2301003.NOR / 16102.002.001 February 19, 2023 Estimated Affordable Sales Prices
Ownership Housing Development
Number of
Bedrooms Condominiums Townhomes
Detached Single
Family Homes
Moderate Income Units
2 $318,600 $283,300
3 $371,700 $305,700 $296,400
4 $397,400 $327,400 $304,900
5 $314,200
Low Income Units
Number of
Bedrooms Condominiums Townhomes
Detached Single
Family Homes
2 $91,800 $81,500
3 $119,700 $102,900 $44,400
4 $125,200 $118,800 $32,700
5 $21,900
Estimated Maximum Affordable Rents
Apartment Development
Number of Bedrooms
One Two Three
Moderate Income Units $2,032 $2,273 $2,513
Low Income Units $1,333 $1,486 $1,639
Inclusionary Housing: In-Lieu Fee Analysis Page 24
Keyser Marston Associates, Inc, 2301003.NOR / 16102.002.001 February 19, 2023 D. Affordability Gaps
The affordability gaps associated with the prototype ownership housing and apartment developments can be summarized as follows:
Estimated Affordability Gaps Per Inclusionary Unit
Weighted Average
Affordability Gaps
Condominiums $335,500
Townhomes $468,600
Detached Single Family Homes $828,700
Apartments $137,000
E. Supportable In-Lieu Fees
Based on the results of the preceding analysis it is KMA’s conclusion that the following in-lieu fee amounts can be supported by ownership housing and apartment development projects.
Supportable In-Lieu Fee Payments
Base Fee Amounts
Per Square Foot of Total Saleable or Leasable Area in the Residential Project Density Ranges
(Units / Acre) In-Lieu Fee
Ownership Housing Development
Condominiums 20+ $34.50
Townhomes 5 – 20 $37.50
Single Family Homes 1 – 5 $46.50
Apartment Development All $21.50
Inclusionary Housing: In-Lieu Fee Analysis Page 25
Keyser Marston Associates, Inc, 2301003.NOR / 16102.002.001 February 19, 2023 KMA recommends that the in-lieu fee payment amount be re-evaluated at least every five years. To allow in-lieu fees to keep pace with changes in the marketplace during the intervening periods, the inlieu fees should continue to be adjusted each year based on the percentage change in new home prices in Riverside County as published annually by the RERC.
KMA recommends that the following in-lieu payment schedules be applied, in 2023 dollars:
Recommended In-Lieu Fee Payment Schedules
Per Square Foot of Total Saleable or Leasable Area in the Residential Project Ownership Housing Development
Units Condos Townhomes
Single
Family Apartments
5 $2.16 $2.34 $2.91 $1.34
6 $4.31 $4.69 $5.81 $2.69
7 $6.47 $7.03 $8.72 $4.03
8 $8.63 $9.38 $11.63 $5.38
9 $10.78 $11.72 $14.53 $6.72
10 $12.94 $14.06 $17.44 $8.06
11 $15.09 $16.41 $20.34 $9.41
12 $17.25 $18.75 $23.25 $10.75
13 $19.41 $21.09 $26.16 $12.09
14 $21.56 $23.44 $29.06 $13.44
15 $23.72 $25.78 $31.97 $14.78
16 $25.88 $28.13 $34.88 $16.13
17 $28.03 $30.47 $37.78 $17.47
18 $30.19 $32.81 $40.69 $18.81
19 $32.34 $35.16 $43.59 $20.16
20 $34.50 $37.50 $46.50 $21.50
ATTACHMENT 1
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
NORCO, CALIFORNIA
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 19 23 Norco Own; Att 1 Title Page 250 of 275 Page 1 of 14
APPENDIX A
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
NORCO, CALIFORNIA
HOME SALES SURVEY
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 19 23 Norco Own; App A HSS Page 251 of 275 Page 2 of 14
APPENDIX A
RESALE HOME SALES SURVEY 1
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
NORCO, CALIFORNIA
Unit Size (SF) Total Per SF Year Built
I. Townhomes and Condominiums
8744 Cuyamaca St Corona 92883 1,909 $450,000 $236 2006
4316 Owens St #104 Corona 92883 1,187 $490,000 $413 2011 4317 Owens St #104 Corona 92883 1,187 $510,000 $430 2010 8888 Cuyamaca St Corona 92883 1,404 $510,000 $363 2006
4432 Owens St #102 Corona 92883 1,638 $525,000 $321 2009 8963 Cuyamaca St Corona 92883 1,404 $525,000 $374 2006
4440 Owens St #105 Corona 92883 1,638 $525,000 $321 2007 4433 Owens St #102 Corona 92883 1,638 $540,000 $330 2009 14571 Sienna Pl Eastvale 92880 1,211 $545,000 $450 2020 8729 Cuyamaca St Corona 92883 2,051 $569,000 $277 2006
7142 Vernazza Pl Eastvale 92880 1,440 $575,888 $400 2020 14587 Sienna Pl Eastvale 92880 1,440 $582,000 $404 2020 14587 Sienna Pl Eastvale 92880 1,440 $582,000 $404 2020 24078 Hawkins Dr Corona 92883 1,451 $603,063 $416 2022
Minimum 1,187 $450,000 $236 2006
Maximum 2,051 $603,063 $450 2022
Average 1,503 $538,000 $358 2012
2625 Verna Dr #105 Corona 92883 1,338 $510,000 $381 2019 24164 Selwood Dr Corona 92883 1,451 $515,000 $355 2022
4301 Owens St #101 Corona 92883 1,722 $535,000 $311 2006 614 Savi Dr #102 Corona 92878 1,542 $535,000 $347 2020
957 Savi Dr #105 Corona 92878 1,613 $558,000 $346 2018
3827 Grant St #18 Corona 92879 1,354 $559,900 $414 2019 4456 Owens St #104 Corona 92883 1,775 $570,000 $321 2007 11783 Everly Dr Corona 92883 1,467 $575,000 $392 2021
4428 Owens St #103 Corona 92883 1,775 $575,000 $324 2010 4166 Horvath St #102 Corona 92883 1,623 $580,000 $357 2019 937 Savi Dr #102 Corona 92878 1,555 $590,000 $379 2020
3827 Grant St #15 Corona 92879 1,343 $595,000 $443 2021 856 Savi Dr #105 Corona 92880 1,675 $597,500 $357 2018
4468 Owens St #106 Corona 92883 1,825 $598,168 $328 2009 4424 Owens St #104 Corona 92883 1,775 $600,000 $338 2010 5938 Sendero Ave Eastvale 92880 1,549 $601,000 $388 2018 4448 Owens St #103 Corona 92883 1,775 $610,000 $344 2007 893 Tangelo Way #103 Corona 92878 1,555 $610,000 $392 2018 11795 Everly Dr Corona 92883 1,451 $629,524 $434 2021
2918 Wild Springs Ln Corona 92883 1,746 $630,000 $361 2005 4147 Cameron Way #101 Corona 92883 1,623 $630,000 $388 2020 4147 Cameron Way #91 Corona 92883 1,623 $630,000 $388 2020 6077 Rosewood Way Eastvale 92880 2,319 $630,000 $272 2016 4234 Horvath St #102 Corona 92883 1,632 $645,000 $395 2019 4464 Owens St #101 Corona 92883 1,825 $645,000 $353 2009 Sales Price
Address
Two-Bedroom Units
Three-Bedroom Units
Prepared by: Keyser Marston Associates, Inc.
File name: 2 19 23 Norco Own; Home Resales Page 252 of 275 Page 3 of 14
APPENDIX A
RESALE HOME SALES SURVEY 1
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
NORCO, CALIFORNIA
Unit Size (SF) Total Per SF Year Built
Sales Price
Address
4234 Horvath St #241 Corona 92883 1,623 $645,000 $397 2019 14557 Sienna Pl Eastvale 92880 1,844 $658,000 $357 2020 4167 Horvath St #106 Corona 92883 1,626 $660,000 $406 2019 7060 Vernazza Pl Eastvale 92880 1,844 $670,000 $363 2021 11786 Glenridge Rd Corona 92883 2,014 $670,000 $333 2022 4233 Powell Way #103 Corona 92883 1,791 $675,000 $377 2020 3415 Hawthorne Dr Corona 92881 1,340 $675,000 $504 2000 120 Buckthorn Way Corona 92881 2,121 $685,000 $323 2000 7024 Moonray Ct Eastvale 92880 1,719 $695,000 $404 2015 7024 Moonray Ct #307 Corona 92880 1,719 $695,000 $404 2015 6043 Rosewood Way Corona 92880 2,472 $695,000 $281 2016 5941 Sendero Ave Eastvale 92880 1,998 $699,000 $350 2019 4165 Powell Way #103 Corona 92883 1,791 $700,000 $391 2019 2899 Menorca Cir Corona 92881 1,825 $702,000 $385 2016
13072 IRISBEND Ave Eastvale 92880 2,661 $779,000 $293 2016 7128 Estrella Ct Eastvale 92880 2,260 $800,000 $354 2014 Minimum 1,338 $510,000 $272 2000
Maximum 2,661 $800,000 $504 2022
Average 1,746 $630,700 $361 2016
813 Savi Dr #102 Corona 92878 1,613 $575,000 $356 2019
1038 Savi Dr #103 Corona 92878 1,675 $595,000 $355 2018 731 Savi Dr #101 Corona 92878 1,675 $595,000 $355 2020
609 Savi Dr #101 Corona 92878 1,675 $605,000 $361 2020
1017 SAVI Dr #103 Corona 92878 1,613 $605,000 $375 2018 4171 Powell Way #102 Corona 92883 2,295 $640,000 $279 2019 426 Amargosa Way Corona 92878 2,258 $640,000 $283 2009
24116 Midvale Rd Corona 92883 2,014 $668,200 $332 2022
316 clavey Ct Corona 92878 2,258 $675,000 $299 2009
7055 Montecito Ln #208 Eastvale 92880 1,938 $685,000 $353 2019 13956 Blossom Way Eastvale 92880 2,142 $700,000 $327 2020 6118 Rosewood Way Dr Eastvale 92880 2,660 $705,000 $265 2015 4165 Powell Way #105 Corona 92883 2,111 $710,000 $336 2019 4343 Altivo Ln Corona 92883 2,206 $730,000 $331 2005
4233 Powell Way #101 Corona 92883 2,295 $740,000 $322 2019 4237 Adishian Way #101 Corona 92883 2,230 $746,250 $335 2021 7147 Morning Dawn Ct Eastvale 92880 2,245 $750,000 $334 2016 12846 Luna St Corona 92880 2,334 $785,000 $336 2015
Minimum 1,613 $575,000 $265 2005
Maximum 2,660 $785,000 $375 2022
Average 2,069 $675,000 $326 2017
Four-Bedroom Units
Prepared by: Keyser Marston Associates, Inc.
File name: 2 19 23 Norco Own; Home Resales Page 253 of 275 Page 4 of 14
APPENDIX A
RESALE HOME SALES SURVEY 1
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
NORCO, CALIFORNIA
Unit Size (SF) Total Per SF Year Built
Sales Price
Address
II. Single Family Homes
972 Spirit Knoll Ct Norco 92860 2,036 $850,000 $417 2000 169 Warmblood Way Norco 92860 2,878 $999,800 $347 2005
954 Thoroughbred Ln Norco 92860 2,670 $1,065,000 $399 2000 1224 Santa Fe Way Norco 92860 2,670 $1,170,000 $438 2000 Minimum 2,036 $850,000 $347 2000
Maximum 2,878 $1,170,000 $438 2005
Average 2,564 $1,021,200 $398 2001
1185 Willow Dr Norco 92860 2,520 $660,000 $262 2005
1191 El Paso Dr Norco 92860 2,670 $952,000 $357 2000
1521 El Paso Dr Norco 92860 3,065 $952,000 $311 2001
3974 Mount Shasta Pl Norco 92860 3,194 $1,012,500 $317 2004 242 Wyatt Cir Norco 92860 2,932 $1,015,000 $346 2005
3021 Curly Horse Way Norco 92860 2,748 $1,050,000 $382 2005 3300 Crestview Dr Norco 92860 3,068 $1,054,000 $344 2005 119 Breeders Cup Pl Norco 92860 2,748 $1,060,000 $386 2004 290 Wild Horse Ln Norco 92860 2,878 $1,148,000 $399 2004 1611 El Paso Dr Norco 92860 4,019 $1,300,000 $323 2001
110 Oldenburg Ln Norco 92860 3,383 $1,320,000 $390 2004 3051 Stable Way Norco 92860 3,239 $1,367,500 $422 2005
1251 Dodge City Pl Norco 92860 3,394 $1,400,000 $412 2001 1034 Thoroughbred Ln Norco 92860 3,895 $1,440,000 $370 2000 1104 Thoroughbred Ln Norco 92860 3,895 $1,665,000 $427 2000 Minimum 2,520 $660,000 $262 2000
Maximum 4,019 $1,665,000 $427 2005
Average 3,177 $1,159,700 $365 2003
Three-Bedroom Units
Four-Bedroom Units
Prepared by: Keyser Marston Associates, Inc.
File name: 2 19 23 Norco Own; Home Resales Page 254 of 275 Page 5 of 14
APPENDIX A
RESALE HOME SALES SURVEY 1
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
NORCO, CALIFORNIA
Unit Size (SF) Total Per SF Year Built
Sales Price
Address
548 Cedarbrook Ln Norco 92879 3,640 $845,000 $232 2004
460 Bareback Ct Norco 92860 4,024 $965,000 $240 2004
150 Breeders Cup Pl Norco 92860 3,803 $1,062,500 $279 2004 1138 Big Pine Ln Norco 92860 3,606 $1,125,000 $312 2000 1547 Calico Ct Norco 92860 3,756 $1,200,000 $319 2001
1457 Paso Fino Pl Norco 92860 3,598 $1,200,000 $334 2003 3140 Crestview Dr Norco 92860 3,500 $1,200,000 $343 2005 1460 Paso Fino Pl Norco 92860 3,598 $1,220,000 $339 2003 3270 Dapplegray Ln Norco 92860 4,165 $1,260,000 $303 2001 3260 Crestview Dr Norco 92860 3,343 $1,275,000 $381 2005 3082 Vandermolen Dr Norco 92860 2,748 $1,275,000 $464 2006 301 Silver Springs Pl Norco 92860 3,174 $1,285,000 $405 2001 290 Haflinger Rd Norco 92860 3,688 $1,295,000 $351 2004 903 Harness Ln Norco 92860 3,895 $1,300,000 $334 2001
2962 Vandermolen Dr Norco 92860 3,343 $1,400,000 $419 2006 3401 Crestview Dr Norco 92860 3,500 $1,418,000 $405 2005 3002 Vandermolen Dr Norco 92860 3,803 $1,530,000 $402 2006 Minimum 2,748 $845,000 $232 2000
Maximum 4,165 $1,530,000 $464 2006
Average 3,599 $1,226,800 $341 2003
1 Source: Redfin. Based on townhomes/condominiums built after 2000 and located in the areas surrounding Norco. Based on single family homes built after 2000 in Norco. The sales occurred between January and December 2022.
Five-Bedroom Units
Prepared by: Keyser Marston Associates, Inc.
File name: 2 19 23 Norco Own; Home Resales Page 255 of 275 Page 6 of 14
APPENDIX B
AFFORDABLE SALES PRICE CALCULATIONS
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
NORCO, CALIFORNIA
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 19 23 Norco Own; App B ASP Page 256 of 275 Page 7 of 14
APPENDIX B - EXHIBIT I
AFFORDABLE SALES PRICE CALCULATIONS 1
CONDOMINIUM PROTOTYPE - 2022 INCOME STANDARDS
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
NORCO, CALIFORNIA
Two-Bedroom
Units
Three-Bedroom
Units
Four-Bedroom
Units
General Assumptions
Benchmark Household Size 2 3 4 5
Area Median Income 3 $78,650 $87,400 $94,400
Annual Utilities Allowance 4 $2,820 $3,348 $3,888
HOA, Maintenance & Insurance 5 $4,200 $3,120 $2,760
Estimated Market Rate Sales Price 6 $477,000 $540,000 $637,000 I.
A. Income Allotted to Housing Based on 110% AMI
Benchmark Annual Household Income $86,515 $96,140 $103,840 Income Allotted to Housing @ 40% of Income $34,610 $38,460 $41,540 B. Property Taxes @ 1.15% of Market Rate Price $5,490 $6,210 $7,330 C. Income Available for Mortgage Debt Service 7 $22,100 $25,782 $27,562 D. Affordable Sales Price
Supportable Mtg @ 6.14% Interest 8 $302,700 $353,100 $377,500 Home Buyer Down Payment @ 5% of ASP 15,900 18,600 19,900 Affordable Sales Price $318,600 $371,700 $397,400
II.
A. Income Allotted to Housing Based on 80% AMI
Benchmark Annual Household Income $62,920 $69,920 $75,520 Income Allotted to Housing @ 30% of Income $18,880 $20,980 $22,660 B. Property Taxes @ 1.15% of Market Rate Price $5,490 $6,210 $7,330 C. Income Available for Mortgage Debt Service 7 $6,370 $8,302 $8,682 D. Affordable Sales Price
Supportable Mtg @ 6.14% Interest 8 $87,200 $113,700 $118,900 Home Buyer Down Payment @ 5% of ASP 4,600 6,000 6,300
Affordable Sales Price $91,800 $119,700 $125,200
1 The Affordable Sales Price calculations are based on the standards imposed by City Ordinance 1083 -Zone Code Amendment 2022-03. 2 3
4 5 Based in part on the HOA dues identified in the home sales survey presented in APPENDIX A. 6 Based in part on the market rate sales prices identified in the home sales survey presented in APPENDIX A. 7 8
Under the California Health & Safety Code Section 50052.5 calculation methodology, the "family size appropriate for the unit" benchmark is set at the number of bedrooms in the unit plus one. This benchmark is used solely for the purposes of calculating the Affordable Sales Price. It is neither an occupancy cap nor a floor.
Utilities allowances are based on the Housing Authority of the County of Riverside utility allowance schedule for single family homes effective as of 7/1/22. Assumes: Electric Heating, Electric Cooking, Electric Water Heater, Basic Electric, Air Conditioning, Water, Sewer, and Trash.
Based on the Income Allotted to Housing minus the following: Annual Utilities Allowance; HOA, Maintenance & Insurance; and Property Taxes @ 1.15% of Market Rate Price.
Based on a 100 basis points premium applied to the Freddie Mac monthly average, between January 2022 and December 2022, for a fixed-interest rate loan with a 30-year amortization period.
Moderate Income Units
Low Income Units
Based on 2022 Riverside County household incomes published by the California Department of Housing & Community Development (HCD).
Prepared by: Keyser Marston Associates
File name: 2 19 23 Norco Own; ASP Page 257 of 275 Page 8 of 14
APPENDIX B - EXHIBIT II
AFFORDABLE SALES PRICE CALCULATIONS 1
TOWNHOME PROTOTYPE - 2022 INCOME STANDARDS
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
NORCO, CALIFORNIA
Two-Bedroom
Units
Three-Bedroom
Units
Four-Bedroom
Units
General Assumptions
Benchmark Household Size 2 3 4 5
Area Median Income 3 $78,650 $87,400 $94,400
Annual Utilities Allowance 4 $2,820 $3,348 $3,888
Maintenance & Insurance 5 $4,200 $3,120 $2,760
Estimated Market Rate Sales Price 6 $540,000 $641,000 $676,000 I.
A. Income Allotted to Housing Based on 110% AMI
Benchmark Annual Household Income $86,515 $96,140 $103,840 Income Allotted to Housing @ 40% of Income $34,610 $38,460 $41,540 B. Property Taxes @ 1.15% of Market Rate Price $6,210 $7,370 $7,770 C. Income Available for Mortgage Debt Service 7 $19,652 $21,202 $22,706 D. Affordable Sales Price
Supportable Mtg @ 6.14% Interest 8 $269,100 $290,400 $311,000 Home Buyer Down Payment @ 5% of ASP 14,200 15,300 16,400 Affordable Sales Price $283,300 $305,700 $327,400
II.
A. Income Allotted to Housing Based on 80% AMI
Benchmark Annual Household Income $62,920 $69,920 $75,520 Income Allotted to Housing @ 30% of Income $18,880 $20,980 $22,660 B. Property Taxes @ 1.15% of Market Rate Price $6,210 $7,370 $7,770 C. Income Available for Mortgage Debt Service 7 $5,650 $7,142 $8,242 D. Affordable Sales Price
Supportable Mtg @ 6.14% Interest 8 $77,400 $97,800 $112,900 Home Buyer Down Payment @ 5% of ASP 4,100 5,100 5,900
Affordable Sales Price $81,500 $102,900 $118,800
1 The Affordable Sales Price calculations are based on the standards imposed by City Ordinance 1083 -Zone Code Amendment 2022-03. 2 3
4 5 Based in part on the HOA dues identified in the home sales survey presented in APPENDIX A. 6 Based in part on the market rate sales prices identified in the home sales survey presented in APPENDIX A. 7 8
Based on the Income Allotted to Housing minus the following: Annual Utilities Allowance; HOA, Maintenance & Insurance; and Property Taxes @ 1.15% of Market Rate Price.
Based on a 100 basis points premium applied to the Freddie Mac monthly average, between January 2022 and December 2022, for a fixed-interest rate loan with a 30-year amortization period.
Based on 2022 Riverside County household incomes published by the California Department of Housing & Community Development (HCD).
Moderate Income Units
Low Income Units
Under the California Health & Safety Code Section 50052.5 calculation methodology, the "family size appropriate for the unit" benchmark is set at the number of bedrooms in the unit plus one. This benchmark is used solely for the purposes of calculating the Affordable Sales Price. It is neither an occupancy cap nor a floor.
Utilities allowances are based on the Housing Authority of the County of Riverside utility allowance schedule for single family homes effective as of 7/1/22. Assumes: Electric Heating, Electric Cooking, Electric Water Heater, Basic Electric, Air Conditioning, Water, Sewer, and Trash.
Prepared by: Keyser Marston Associates
File name: 2 19 23 Norco Own; ASP Page 258 of 275 Page 9 of 14
APPENDIX B - EXHIBIT III
AFFORDABLE SALES PRICE CALCULATIONS 1
DETACHED SINGLE FAMILY HOME PROTOTYPE - 2022 INCOME STANDARDS
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
NORCO, CALIFORNIA
Three-Bedroom
Units
Four-Bedroom
Units
Five-Bedroom
Units
General Assumptions
Benchmark Household Size 2 4 5 6
Area Median Income 3 $87,400 $94,400 $101,400
Annual Utilities Allowance 4 $3,348 $3,888 $4,464
Maintenance & Insurance 5 $5,400 $6,000 $6,600
Estimated Market Rate Sales Price 6 $796,000 $913,000 $1,023,000 I.
A. Income Allotted to Housing Based on 110% AMI
Benchmark Annual Household Income $96,140 $103,840 $111,540 Income Allotted to Housing @ 40% of Income $38,460 $41,540 $44,620 B. Property Taxes @ 1.15% of Market Rate Price $9,150 $10,500 $11,760 C. Income Available for Mortgage Debt Service 7 $20,562 $21,152 $21,796 D. Affordable Sales Price
Supportable Mtg @ 6.14% Interest 8 $281,600 $289,700 $298,500 Home Buyer Down Payment @ 5% of ASP 14,800 15,200 15,700 Affordable Sales Price $296,400 $304,900 $314,200
II.
A. Income Allotted to Housing Based on 80% AMI
Benchmark Annual Household Income $69,920 $75,520 $81,120 Income Allotted to Housing @ 30% of Income $20,980 $22,660 $24,340 B. Property Taxes @ 1.15% of Market Rate Price $9,150 $10,500 $11,760 C. Income Available for Mortgage Debt Service 7 $3,082 $2,272 $1,516 D. Affordable Sales Price
Supportable Mtg @ 6.14% Interest 8 $42,200 $31,100 $20,800 Home Buyer Down Payment @ 5% of ASP 2,200 1,600 1,100
Affordable Sales Price $44,400 $32,700 $21,900
1 The Affordable Sales Price calculations are based on the standards imposed by City Ordinance 1083 -Zone Code Amendment 2022-03. 2 3
4 5 Based in part on the HOA dues identified in the home sales survey presented in APPENDIX A. 6 Based in part on the market rate sales prices identified in the home sales survey presented in APPENDIX A. 7 8
Moderate Income Units
Low Income Units
Under the California Health & Safety Code Section 50052.5 calculation methodology, the "family size appropriate for the unit" benchmark is set at the number of bedrooms in the unit plus one. This benchmark is used solely for the purposes of calculating the Affordable Sales Price. It is neither an occupancy cap nor a floor.
Utilities allowances are based on the Housing Authority of the County of Riverside utility allowance schedule for single family homes effective as of 7/1/22. Assumes: Electric Heating, Electric Cooking, Electric Water Heater, Basic Electric, Air Conditioning, Water, Sewer, and Trash.
Based on the Income Allotted to Housing minus the following: Annual Utilities Allowance; HOA, Maintenance & Insurance; and Property Taxes @ 1.15% of Market Rate Price.
Based on a 100 basis points premium applied to the Freddie Mac monthly average, between January 2022 and December 2022, for a fixed-interest rate loan with a 30-year amortization period.
Based on 2022 Riverside County household incomes published by the California Department of Housing & Community Development (HCD).
Prepared by: Keyser Marston Associates
File name: 2 19 23 Norco Own; ASP Page 259 of 275 Page 10 of 14
APPENDIX C
IN-LIEU FEE CALCULATIONS
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
NORCO, CALIFORNIA
Prepared by: Keyser Marston Associates, Inc.
File name: 2 19 23 Norco Own; App C ILF Page 260 of 275 Page 11 of 14
APPENDIX C - EXHIBIT I
CONDOMINIUM PROTOTYPE
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
NORCO, CALIFORNIA
Moderate Income
Units Low Income Units
I. Sales Price Difference
A. Two-Bedroom Units
Market Rate Sales Price 1 $477,000 $477,000
Affordable Sales Price 2 318,600 91,800
Difference $158,400 $385,200
B. Three-Bedroom Units
Market Rate Sales Price 1 $540,000 $540,000
Affordable Sales Price 2 371,700 119,700
Difference $168,300 $420,300
C. Four-Bedroom Units
Market Rate Sales Price 1 $637,000 $637,000
Affordable Sales Price 2 397,400 125,200
Difference $239,600 $511,800
II. Distribution of Total Units 3
Two-Bedroom Units 35% 35%
Three-Bedroom Units 55% 55%
Four-Bedroom Units 10% 10%
III. Assumptions
Total Units 40 40
Total Saleable Area 58,400 58,400
Weighted Avg Unit Size (Sf) 1,460 1,460
Inclusionary Housing Percentage 6.0% 9.0%
Inclusionary Units 2 4
Affordability Gap Per Inclusionary Unit 4 $172,000 $417,200 IV. In-Lieu Fee Totals
Total In-Lieu Fee $344,000 $1,668,800 $2,012,800
Per Total Unit in the Project $8,600 $41,720 $50,320
Per Sf of Total Saleable Area $5.90 $28.60 $34.50
1 The market rate sales prices are estimated in part based on the survey presented in APPENDIX A. 2 See APPENDIX B - EXHIBIT I.
3 The unit mix distribution is based in part on the survey presented in APPENDIX A. 4 Based on unit mix distribution and the weighted average difference between the Market Rate Sales Prices and the Affordable Sales Prices.
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 19 23 Norco Own; ILF Condo Page 261 of 275 Page 12 of 14
APPENDIX C - EXHIBIT II
TOWNHOME PROTOTYPE
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
NORCO, CALIFORNIA
Moderate Income
Units Low Income Units
I. Sales Price Difference
A. Two-Bedroom Units
Market Rate Sales Price 1 $540,000 $540,000
Affordable Sales Price 2 283,300 81,500
Difference $256,700 $458,500
B. Three-Bedroom Units
Market Rate Sales Price 1 $641,000 $641,000
Affordable Sales Price 2 305,700 102,900
Difference $335,300 $538,100
C. Four-Bedroom Units
Market Rate Sales Price 1 $676,000 $676,000
Affordable Sales Price 2 327,400 118,800
Difference $348,600 $557,200
II. Distribution of Total Units 3
Two-Bedroom Units 10% 10%
Three-Bedroom Units 55% 55%
Four-Bedroom Units 35% 35%
III. Assumptions
Total Units 40 40
Total Saleable Area 75,000 75,000
Weighted Avg Unit Size (Sf) 1,880 1,880
Inclusionary Housing Percentage 6.0% 9.0%
Inclusionary Units 2 4
Affordability Gap Per Inclusionary Unit 4 $332,100 $536,800 IV. In-Lieu Fee Totals
Total In-Lieu Fee $664,200 $2,147,200 $2,811,400
Per Total Unit in the Project $16,610 $53,680 $70,290
Per Sf of Total Saleable Area $8.90 $28.60 $37.50
1 The market rate sales prices are estimated in part based on the survey presented in APPENDIX A. 2 See APPENDIX B - EXHIBIT II.
3 The unit mix distribution is based in part on the survey presented in APPENDIX A. 4 Based on unit mix distribution and the weighted average difference between the Market Rate Sales Prices and the Affordable Sales Prices.
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 19 23 Norco Own; ILF TH Page 262 of 275 Page 13 of 14
APPENDIX C - EXHIBIT III
DETACHED SINGLE FAMILY HOME PROTOTYPE
OWNERSHIP HOUSING DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
NORCO, CALIFORNIA
Moderate Income
Units Low Income Units
I. Sales Price Difference
A. Three-Bedroom Units
Market Rate Sales Price 1 $796,000 $796,000
Affordable Sales Price 2 296,400 44,400
Difference $499,600 $751,600
B. Four-Bedroom Units
Market Rate Sales Price 1 $913,000 $913,000
Affordable Sales Price 2 304,900 32,700
Difference $608,100 $880,300
C. Five-Bedroom Units
Market Rate Sales Price 1 $1,023,000 $1,023,000
Affordable Sales Price 2 314,200 21,900
Difference $708,800 $1,001,100
II. Distribution of Total Units 3
Three-Bedroom Units 10% 10%
Four-Bedroom Units 45% 45%
Five-Bedroom Units 45% 45%
III. Assumptions
Total Units 40 40
Total Saleable Area 107,000 107,000
Weighted Avg Unit Size (Sf) 2,680 2,680
Inclusionary Housing Percentage 6.0% 9.0%
Inclusionary Units 2 4
Affordability Gap Per Inclusionary Unit 4 $642,600 $921,800 IV. In-Lieu Fee Totals
Total In-Lieu Fee $1,285,200 $3,687,200 $4,972,400
Per Total Unit in the Project $32,130 $92,180 $124,310
Per Sf of Total Saleable Area $12.00 $34.50 $46.50
1 The market rate sales prices are estimated in part based on the survey presented in APPENDIX A. 2 See APPENDIX B - EXHIBIT III.
3 The unit mix distribution is based in part on the survey presented in APPENDIX A. 4 Based on unit mix distribution and the weighted average difference between the Market Rate Sales Prices and the Affordable Sales Prices.
Prepared by: Keyser Marston Associates, Inc.
File Name: 2 19 23 Norco Own; ILF SFH Page 263 of 275 Page 14 of 14 ATTACHMENT 2
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
NORCO, CALIFORNIA
Prepared by: Keyser Marston Associates, Inc.
File name: 2 19 23 Norco Apt; Att 2 Apt Page 264 of 275 Page 1 of 8
APPENDIX A
RENT ANALYSES
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
NORCO, CALIFORNIA
Prepared by: Keyser Marston Associates, Inc.
File name: 2 19 23 Norco Apt; App A RS Page 265 of 275 Page 2 of 8
APPENDIX A
RENT SURVEY 4+ STAR PROPERTIES 1
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
NORCO, CALIFORNIA
Name # of Units
Unit Size
(SF) Total Per SF Year Built
I.
The Vintage Apartments 1349 Circle City Dr Corona 92879 18 614 $1,603 $2.61 2004 Marquessa Villas 2235 Treehouse Ln Corona 92879 168 597 $2,015 $3.38 1992 Montecito at Dos Lagos 2708 Blue Springs Dr Corona 92883 48 768 $2,074 $2.70 2014 The Hills of Corona Apartments 2365 S Promenade Ave Corona 92879 148 623 $2,089 $3.35 1991 Sierra del Oro Apartments 1456 Serfas Club Dr Corona 92882 140 704 $2,089 $2.97 1990 Brookwood Villas 1885 San Remo Dr Corona 92882 148 663 $2,105 $3.17 1991 Encanto 4593 Temescal Canyon Rd Corona 92883 164 822 $2,217 $2.70 2015 Promenade Terrace Apartments 451 Wellesley Dr Corona 92879 34 711 $2,247 $3.16 1990 Metro at Main 418 N Main St Corona 92880 174 744 $2,280 $3.06 2017 Palisades at Sierra del Oro 2300 Palisades Dr Corona 92882 135 823 $2,283 $2.77 2015 Artisan at Main Street Metro 211 Rincon St Corona 92880 214 806 $2,308 $2.86 2012 One 11 Apartments 111 W Harrison St Corona 92880 97 747 $2,364 $3.16 2016 The Monterey 2225 Collett Ave Corona 92879 244 804 $2,424 $3.01 2020 Vernola Marketplace 6770 Pats Ranch Road Jurupa Valley 91752 183 765 $2,521 $3.30 2023 Minimum 597 $1,603 $2.61 1990
Maximum 823 $2,521 $3.38 2023
Weighted Average 740 $2,246 $3.05 2008
Average Effective Rent
One-Bedroom Units
Address
Prepared by: Keyser Marston Associates, Inc.
File name: 2 19 23 Norco Apt Page 3 of 8
APPENDIX A
RENT SURVEY 4+ STAR PROPERTIES 1
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
NORCO, CALIFORNIA
Name # of Units
Unit Size
(SF) Total Per SF Year Built
Average Effective Rent
Address
II.
The Vintage Apartments 1349 Circle City Dr Corona 92879 40 869 $1,734 $2.00 Sierra del Oro Apartments 1456 Serfas Club Dr Corona 92882 160 1,047 $2,505 $2.39 Artisan at Main Street Metro 211 Rincon St Corona 92880 169 1,159 $2,520 $2.17 Marquessa Villas 2235 Treehouse Ln Corona 92879 168 1,180 $2,555 $2.17 Montecito at Dos Lagos 2708 Blue Springs Dr Corona 92883 77 1,073 $2,593 $2.42 The Hills of Corona Apartments 2365 S Promenade Ave Corona 92879 100 1,178 $2,600 $2.21 Promenade Terrace Apartments 451 Wellesley Dr Corona 92879 241 1,078 $2,643 $2.45 Encanto 4593 Temescal Canyon Rd Corona 92883 190 1,186 $2,650 $2.23 One 11 Apartments 111 W Harrison St Corona 92880 81 1,072 $2,684 $2.50 Palisades at Sierra del Oro 2300 Palisades Dr Corona 92882 141 1,164 $2,754 $2.37 Brookwood Villas 1885 San Remo Dr Corona 92882 166 892 $2,756 $3.09 The Monterey 2225 Collett Ave Corona 92879 170 1,212 $2,876 $2.37 Vernola Marketplace 6770 Pats Ranch Road Jurupa Valley 91752 181 1,085 $3,153 $2.91 Metro at Main 418 N Main St Corona 92880 115 1,122 $3,180 $2.83 Minimum 869 $1,734 $2.00
Maximum 1,212 $3,180 $3.09
Weighted Average 1,107 $2,708 $2.46
III.
The Vintage Apartments 1349 Circle City Dr Corona 92879 4 1,097 $2,010 $1.83 Artisan at Main Street Metro 211 Rincon St Corona 92880 21 1,472 $3,026 $2.06 Promenade Terrace Apartments 451 Wellesley Dr Corona 92879 55 1,365 $3,107 $2.28 The Monterey 2225 Collett Ave Corona 92879 28 1,453 $3,422 $2.36 Vernola Marketplace 6770 Pats Ranch Road Jurupa Valley 91752 33 1,365 $3,636 $2.66 Palisades at Sierra del Oro 2300 Palisades Dr Corona 92882 12 1,410 $4,048 $2.87 Minimum 1,097 $2,010 $1.83
Maximum 1,472 $4,048 $2.87
Weighted Average 1,392 $3,313 $2.38
1 Source: CoStar, December 2022.
Two-Bedroom Units
Three-Bedroom Units
Prepared by: Keyser Marston Associates, Inc.
File name: 2 19 23 Norco Apt Page 4 of 8
APPENDIX B
AFFORDABLE RENT CALCULATIONS
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
NORCO, CALIFORNIA
Prepared by: Keyser Marston Associates, Inc.
File name: 2 19 23 Norco Apt; App B Aff Rent Page 268 of 275 Page 5 of 8
APPENDIX B
AFFORDABLE RENT CALCULATIONS 1
2022 INCOME STANDARDS
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
NORCO, CALIFORNIA
One-Bedroom
Units
Two-Bedroom
Units
Three-Bedroom
Units
General Assumptions
Benchmark Household Size 2 2 3 4
Area Median Income 3 $69,900 $78,650 $87,400
Monthly Utilities Allowance 4 $65 $87 $109
I. Household Income Assumptions
% of AMI Used for Rent Setting Purposes 120% 120% 120%
Benchmark Annual Household Income $83,880 $94,380 $104,880 II. % of Income Allotted to Housing Expenses 30% 30% 30% III. Gross Affordable Rent
Annual $25,164 $28,314 $31,464
Monthly $2,097 $2,360 $2,622
(Less) Monthly Utilities Allowance ($65) ($87) ($109)
IV. Net Affordable Rent $2,032 $2,273 $2,513
I. Household Income Assumptions
% of AMI Used for Rent Setting Purposes 80% 80% 80%
Benchmark Annual Household Income $55,920 $62,920 $69,920 II. % of Income Allotted to Housing Expenses 30% 30% 30% III. Gross Affordable Rent
Annual $16,776 $18,876 $20,976
Monthly $1,398 $1,573 $1,748
(Less) Monthly Utilities Allowance ($65) ($87) ($109)
IV. Net Affordable Rent $1,333 $1,486 $1,639
1 The Affordable Rent calculations are based on the standards imposed by City Ordinance 1083 - Zone Code Amendment 2022-3. 2 3
4 Based on the median income for Riverside County published annually by the California Department of Housing & Community Development (HCD).
Utilities allowances are based on the Housing Authority of the County of Riverside utility allowance schedule for energy efficient apartment development effective as of 7/1/22. Assumes: Electric Heating, Electric Cooking, and Electric Water Heater; Basic Electric; and Air Conditioning.
Moderate Income Units
Low Income Units
Under the California Health & Safety Code Section 50052.5 calculation methodology, the "family size appropriate for the unit" benchmark is set at the number of bedrooms in the unit plus one. This benchmark is used solely for the purposes of calculating the Affordable Rent. It is neither an occupancy cap nor a floor.
Prepared by: Keyser Marston Associates
File name: 2 19 23 Norco Apt; Aff Rent Page 269 of 275 Page 6 of 8
APPENDIX C
IN-LIEU FEE CALCULATIONS
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
NORCO, CALIFORNIA
Prepared by: Keyser Marston Associates, Inc.
File name: 2 19 23 Norco Apt; App C ILF Page 270 of 275 Page 4 of 8
APPENDIX C
IN-LIEU FEE CALCULATIONS
APARTMENT DEVELOPMENT
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
NORCO, CALIFORNIA
Moderate Income
Units Low Income Units
I. Rent Difference
A. One-Bedroom Units
Market Rents 1 $2,290 $2,290
Affordable Rent 2 2,032 1,333
Difference $258 $957
B. Two-Bedroom Units
Market Rents 1 $2,710 $2,710
Affordable Rent 2 2,273 1,486
Difference $438 $1,224
C. Three-Bedroom Units
Market Rents 1 $3,330 $3,330
Affordable Rent 2 2,513 1,639
Difference $817 $1,691
II. Distribution of Total Units 3
One-Bedroom Units 45% 45%
Two-Bedroom Units 50% 50%
Three-Bedroom Units 5% 5%
III. Annual Rent Difference Per Inclusionary Unit $4,508 $13,526 Less: Property Tax Difference 4 (1,220) (3,660)
Net Annual Rent Difference Per Inclusionary Unit $3,288 $9,866 IV. Assumptions
Total Units 100 100
Total Leasable Area 95,750 95,750
Weighted Avg Unit Size (Sf) 958 958
Inclusionary Housing Percentage 6.0% 9.0%
Inclusionary Units 6 9
Affordability Gap Per Inclusionary Unit 5 $62,000 $187,000 V. In-Lieu Fee Totals
Total In-Lieu Fee $372,000 $1,683,000 $2,055,000
Per Total Unit in the Project $3,720 $16,830 $20,550
Per Square Foot of Total Leasable Area $3.90 $17.60 $21.50 1 The market rate rents are estimated in part based on the survey presented in APPENDIX A. 2 See APPENDIX B.
3 The unit mix distribution is based in part on the survey presented in APPENDIX A. 4 Based on the rent differential capitalized at a 4.3% rate to establish the value, and a 1.15% property tax rate. 5 Based on the Net Annual Rent Difference Per Inclusionary Unit capitalized at the Threshold Return on Total Investment generated by the prototype apartment development.
Prepared by: Keyser Marston Associates
File name: 2 19 23 Norco Apt; ILF Page 271 of 275 Page 5 of 8 ATTACHMENT 3
INCLUSIONARY HOUSING PROGRAM - IN-LIEU FEE SURVEY
NORCO, CALIFORNIA
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
Prepared by: Keyser Marston Associates, Inc.
File name: 2 19 23 Inclusionary Survey Page 272 of 275 Page 1 of 4 ATTACHMENT 3
INCLUSIONARY HOUSING PROGRAM - IN-LIEU FEE SURVEY
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
NORCO, CALIFORNIA
Jurisdiction Set Aside %
Threshold
Project Size % of AMI
Threshold
Project Size % of AMI In-Lieu Fee
I. Orange County Jurisdictions
Brea 10% 20 Not Defined 20 120% Calculated per project. Based on the Affordability Gap
Huntington Beach 10% 3 80% 3 120%
Sliding Scale: 3 to 30 units. In-Lieu Fee
allowed for projects up to 100 units.
Rental: $3.58 to $35.80/SF
Ownership: $2.54 to $25.36/SF.
The per SF measurement caps at 2,000
SF.
Irvine 15% 50
50%, 80% &
120% Defined
credits
50 50%, 80% & 120%
Defined credits
Calculated per project. Based on an
equivalent value calculation.
La Habra 15% 10
9% Mod + 6%
VL & Low 10 110%
Calculated per project. Based on the
estimated construction cost to produce
the unit.
San Clemente 2% 6 Very Low 6 Very Low
Based on the greater of 1% of
construction costs as determined by the
Building Division or 2% of the
affordability gap determined by the
formula in the Housing Element.
San Juan Capistrano 10% 2 2
Based on 90% of the Affordability Gap,
which is updated monthly based on
benchmark market prices.
Santa Ana
Rental: 5% -
15% & Own:
5%
5 15% @ Low
or 10% @ VL
or 5% @ ELI
or 5% Low +
3% VL +2%
ELI
5 120%
Fee charged per SF of habitable area:
Sliding scale based on the number of
units in the project:
5-9: $6.00; 10-14: $9.00; 15-19: $12; 20+:
$15.
Discounts for use of skilled and trained
labor force.
Rental Development Ownership Development
Prepared by: Keyser Marston Associates, Inc.
File name: 2 19 23 Inclusionary Survey; ILF Page 273 of 275 Page 2 of 4 ATTACHMENT 3
INCLUSIONARY HOUSING PROGRAM - IN-LIEU FEE SURVEY
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
NORCO, CALIFORNIA
Jurisdiction Set Aside %
Threshold
Project Size % of AMI
Threshold
Project Size % of AMI In-Lieu Fee
Rental Development Ownership Development
II. Los Angeles County Jurisdictions
Alhambra 15% 7
9% at 120% &
6% at 80%
7 9% at 120% + 6%
at 80%
Fee Schedule: 5 -20 units.
Rental: $0.89 - $14.30/SF.
Ownership: $1.88 - $30.00/SF.
Agoura Hills 15% 10
7% @ VL +
4% @ Low +
4% @ mod
10 7% @ VL + 4% @
Low + 4% @ mod
Set in 2018 to be consistent with the
Affordability Gaps:
$285,336 per VL apartment unit.
$262,541 per low income condo unit.
$427,002 per moderate income single
family home.
Downey 11%/10% 10 Mod 10 Mod
Rental: $23.50/SF - only allowed under
extreme hardship. Ownership: $15.90/SF
payable based on City Council criteria.
Glendale 15% 8 60%
Sliding scale:
8 Units @ $28.71/SF -
21 Units @ $55/SF.
Long Beach 11%/10% 10 50% 10 120% Rental @ $38.00/SF.
Ownership @ $29.10/SF.
Pasadena 20% 1
5% @50% +
5% @ 80% +
10% @ 120%
1 110%
Sliding scale by sub-area & project size:
Low at $34.19/SF
High at $73.52/SF.
Pomona 13% / 7%-
11% 3 120% 3 120% Rental @ $9.30/SF; SFH @ $11.40/SF. Condominiums @ $9.30/SF.
Redondo Beach 10%-15% /
9%-15%
2 Moderate 2 Mod
Sliding scale for 2 to 9 unit projects:
Rental: extrapolated from $34.20/SF of
total project area.
Ownership: extrapolated from $43.20/SF
of total project area.
Santa Monica 5% to 30% 2
50%, 80% &
120% Defined
credits
2 50%, 80% & 120%
Defined credits
Rental @ $35.70/SF.
Ownership @ $41.70/SF.
West Hollywood 20% 2 Low / Mod 2 Low / Mod
Sliding scale:
2 Units @ $13.63/SF -
10 Units @ $29.23/SF.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 19 23 Inclusionary Survey; ILF Page 274 of 275 Page 3 of 4 ATTACHMENT 3
INCLUSIONARY HOUSING PROGRAM - IN-LIEU FEE SURVEY
INCLUSIONARY HOUSING: IN-LIEU FEE ANALYSIS
NORCO, CALIFORNIA
Jurisdiction Set Aside %
Threshold
Project Size % of AMI
Threshold
Project Size % of AMI In-Lieu Fee
Rental Development Ownership Development
III. San Diego County Jurisdictions
Carlsbad 15% 1 Low 1 Low
Available up to 6 units:
$8,529 for a single family home.
$15.00/SF for 2-6 unit projects.
Chula Vista 10% 50 5% @ Low +
5% @ Mod 50 5% @ Low + 5% @ Mod
In-lieu fee is based on the median home
price minus the affordable home price.
Coronado 20% 2 Low 2 Mod In-lieu fee paid by right. $7,000 per market rate unit.
Encinitas 10%/15% 7
10% VL or
15% Low
7 10% VL or
15% Low
One to 6 unit projects pay an in-lieu fee
based on a sliding scale. 7+ unit projects
pay $20/SF in-lieu fee.
Oceanside 10% 3 Low 3 Mod
In-lieu fee paid by right. The fee was set
at $15/SF on 1/1/23 and will increase to
$20/SF on 1/1/24.
San Diego 10% to 15% 10 50% or 80% 100% or 120%
The in-lieu fee is being phased in over
time. On July 1, 2024 the in-lieu fee will
be set at $25 per SF of building area.
Prepared by: Keyser Marston Associates, Inc.
File name: 2 19 23 Inclusionary Survey; ILF Page 275 of 275 Page 4 of 4