Cities Index.
Agenda

Norco City Council
January 17, 2024

Document
Agenda
Meeting
January 17, 2024
Body
Norco City Council
Pages
523
Original file
30.6 MB
Text extracted from the city's file for reading and search. Open the original on norco.civicweb.net. That file is the official record.

Honorable Mayor and
Members of the City Council
of the City of Norco
Norco, California
5 Report on Internal Control Over Compliance
Our consideration of internal control over compliance was for the limited purpose described in the Auditors’ Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, as discussed below, we did identify a deficiency in internal control over compliance that we consider to be a significant deficiency.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiency in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2023- 001, to be a significant deficiency.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the internal control over compliance findings identified in our audit described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We have issued our report thereon, dated November 30, 2023 which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements.

The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

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Honorable Mayor and
Members of the City Council
of the City of Norco
Norco, California
6 The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

CliftonLarsonAllen LLP
Irvine, California
November 30, 2023

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SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

AND SCHEDULE OF FINDINGS AND QUESTIONED COSTS

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CITY OF NORCO

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2023
7 Federal
Assistance Pass-Through PassedListing Entity Identifying Federal Through to Federal Grantor / Pass - Through Grantor / Program / Cluster Title / Project Number Number Expenditures Subrecipients U.S. Department of Housing and Urban Development
Passed-through the County of Riverside:

Community Development Block Grant - Entitlement Grants Cluster:

Community Development Block Grant 14.218 2.NR.60-22 934 $ - $ Community Development Block Grant 14.218 2.NR.59-22 12,000 - Total U.S. Department of Housing and
Urban Development - 12,934
U.S. Department of Treasury
Direct Assistance:

COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A 3,380,221 - Passed-through the State Water Resource Control Board:

COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 CA3310025 10,264 - Total U.S. Department of Treasury - 3,390,485
TOTAL EXPENDITURES OF FEDERAL AWARDS 3, $ - 403,419 $

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CITY OF NORCO

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2023
8 1. BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) include the federal award activities of the City of Norco, California (the City), under programs of the federal government, as well as federal financial assistance passed through other government agencies for the year ended June 30, 2023. The information in the Schedule of Expenditures of Federal Awards (SEFA) is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule present only a selected portion of the operations of the City, they are not intended to, and do not, present the financial statements of the City. The City’s reporting entity is defined in Note 1 of the notes to the City’s financial statements.

2. BASIS OF ACCOUNTING
The accompanying Schedule is presented using the modified accrual basis of accounting for governmental funds and the accrual basis for proprietary funds, which is described in the Note 1 of the notes to the City’s financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. The information in the SEFA is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the basic financial statements. Pass-through entity identifying numbers are identified where available.

3. INDIRECT COST RATE
The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

4. CONTINGENCIES
Under the terms of federal grants, additional audits may be requested by the grantor agencies and certain costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to a request for reimbursement to the grantor agencies.

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CITY OF NORCO

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2023
9 Section I – Summary of Auditors’ Results
Financial Statements

1. Type of auditors’ report issued: Unmodified

2. Internal control over financial reporting:
 Material weakness(es) identified? yes x no
 Significant deficiency(ies) identified? yes x none reported

3. Noncompliance material to financial
statements noted? yes x no
Federal Awards

1. Internal control over major federal programs:
 Material weakness(es) identified? yes x no
 Significant deficiency(ies) identified? x yes none reported

2. Type of auditors’ report issued on
compliance for major federal programs: Unmodified

3. Any audit findings disclosed that are
required to be reported in accordance
with 2 CFR 200.516(a)? x yes no
Identification of Major Federal Programs
Assistance Listing Number(s) Name of Federal Program or Cluster

21.027 COVID-19 Coronavirus State and Local Recovery
Funds
Dollar threshold used to distinguish between
Type A and Type B programs: $ 750,000
Auditee qualified as low risk auditee? yes x no

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CITY OF NORCO

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2023
10 Section II – Financial Statement Findings
Our audit did not disclose any matters required to be reported in accordance with Government Auditing Standards.

Section III – Findings and Questioned Costs – Major Federal Programs 2023 – 001
Federal agency: U.S. Department of Treasury
Federal program title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listings Number: 21.027
Award Period: March 3, 2021 through December 31, 2024
Compliance Requirement Affected: Reporting
Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or specific requirement: In accordance with the Compliance and Reporting Guidance - State and Local Fiscal Recover Funds, current period amounts included on the annual reporting as of March 31, 2023 should cover the period from April 1, 2022 through March 31, 2023.

Condition: Current period obligations and current period expenditures on the March 31, 2023, reporting covered the period from July 1, 2022, through June 30, 2023.

Questioned costs: None.

Context: Error was noted on 1 of 1 annual reports.

Cause: Reporting period parameters between the City's fiscal year and the time period required under the grant award were confused.

Effect: Incorrect current period obligations and current period expenditures were included on the March 31, 2023, annual reporting.

Repeat Finding: No.

Recommendation: We recommend that the City's review of the annual reporting include a rollforward check to determine that the prior period's cumulative obligation and expenditure totals, plus the current period obligations and current period expenditures agree to cumulative totals.

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CITY OF NORCO

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2023
11 Section III – Findings and Questioned Costs – Major Federal Programs (Continued) Views of responsible officials and planned corrective actions:

There is no disagreement with the audit finding. The City will make corrections on the next annual report as of March 31,2024 which should cover the period April 1 2023 through March 31, 2024. As of June 30, 2023, the City had fully expended the American Resue Plan Act (ARPA) funding. It is important to note that because the City's allocation of ARPA funds is less than $10 million, the Department of Treasury Regulations allows the City to use all its allocation as lost revenue replacement. This allows the City Council to appropriate ARPA funds for any legal government purpose except those that are prohibited. The City treated all its allocation as lost revenue replacement.

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CITY OF NORCO

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED JUNE 30, 2023
12 Section I – Financial Statement Findings
2022 – 001
Condition: The City recorded inspection fees for sewer connections in the sewer enterprise fund rather than the general fund. Additionally, revenue collected was improperly recorded as deposits payable in the general fund. Under generally accepted accounting principles, revenue collected should be reported in the correct fund and liabilities should not be recorded for revenues.

Status: Corrective action was taken.

Section II – Federal Program Award Findings
There were no federal program award findings in the prior year.

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CITY OF NORCO, CALIFORNIA

MEASURE R TRANSACTION AND USE TAX FUND

FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023

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CITY OF NORCO, CALIFORNIA

MEASURE R TRANSACTION AND USE TAX FUND
YEAR ENDED JUNE 30, 2023
INDEPENDENT AUDITORS’ REPORT 1

FUND FINANCIAL STATEMENTS
BALANCE SHEET 4

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE 5
NOTES TO FINANCIAL STATEMENTS 6

REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE 9
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION 10

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS 11

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CliftonLarsonAllen LLP
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(1)
INDEPENDENT AUDITORS’ REPORT
City Council Members
City of Norco
Norco, California
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of the Measure R Transaction and Use Tax Fund of the City of Norco, California (the City), as of and for the year ended June 30, 2023, and the related notes to the financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Measure R Transaction and Use Tax Fund of the City of Norco, California, as of June 30, 2023, and the changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Norco and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Emphasis of Matter
As discussed in Note 1, the financial statements present only the Measure R Transaction and Use Tax Fund and do not purport to and do not present fairly the financial position of the City of Norco as of June 30, 2023, or the changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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City Council Members
City of Norco
(2)
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of City of Norco’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

Required Supplementary Information
Management has omitted the management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the financial statements. Such missing information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. Our opinion on the financial statements is not affected by this missing information.

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City Council Members
City of Norco
(3)
Accounting principles generally accepted in the United States of America require that the budgetary comparison schedule be presented to supplement the financial statements. Such information is the responsibility of management and, although not a part of the financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the financial statements and other knowledge we obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on the required supplementary information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated REPORT DATE on our consideration of the City of Norco’s internal control over the Measure R Transaction and Use Tax Fund’s financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Norco’s internal control over the Measure R Transaction and Use Tax Fund’s financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Norco’s internal control over the Measure R Transaction and Use Tax Fund’s financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine, California
November 30, 2023

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CITY OF NORCO

MEASURE R TRANSACTION AND USE TAX FUND

BALANCE SHEET
JUNE 30, 2023
See accompanying Notes to Financial Statements.
(4)
ASSETS
Cash and Investments $ 15,050,819
Accounts Receivable -
Accrued Interest Receivable 85,420
Due from Other Governments 1,371,597
Total Assets $ 16,507,836

LIABILITIES
Accounts Payable $ 2,222,605
Retention Payable 259,679
Total Liabilities 2,482,284

FUND BALANCE
Unrestricted:

Committed 14,025,552
Total Fund Balances 14,025,552
Total Liabilities and Fund Balance 16,507,836 $

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CITY OF NORCO

MEASURE R TRANSACTION AND USE TAX FUND

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 2023
See accompanying Notes to Financial Statements.
(5)

REVENUES
Taxes $ 8,129,335
Investment Earnings 229,888
Total Revenues 8,359,223

EXPENDITURES
Current:

General Government 6,150
Public Works 517,285
Capital Outlay 6,417,810
Total Expenditures 6,941,245
NET CHANGE IN FUND BALANCE 1,417,978
Fund Balance - Beginning of Year 12,607,574
FUND BALANCE - END OF YEAR $ 14,025,552

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CITY OF NORCO

MEASURE R TRANSACTION AND USE TAX FUND

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(6)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements are intended to reflect the fund balance and net change in fund balance attributable to the Measure R Transaction and Use Tax Fund of the City of Norco, California (the City). These financial statements are exclusively for Measure R Transaction and Use Tax Fund and do not purport to, and do not, present fairly the financial position and changes in the financial position of the City.

The Measure R Transaction and Use Tax Fund is a component of the City’s General Fund and is used to account for the collection and use of Measure R transaction and use tax revenue. Measure R is the City of Norco’s one-cent transaction and use tax that was approved by voters on the November 6, 2018 ballot. Measure R funds are to be used for investment in infrastructure. Measure R allows the City of Norco to preserve its quality of life, and restore deteriorating streets, trails, parks, facilities, and equestrian amenities.

Measure R will also prevent additional cuts to the City of Norco’s public safety services in order to maintain safe levels of sheriff and fire protection without risking emergency response times. With the approval of Measure R, the sales tax rate in the City of Norco increased by 1%, from 7.75% to 8.75% effective April 1, 2019.

Basis of Presentation
The Measure R Transaction and Use Tax Fund financial statements are prepared in accordance with accounting principles generally accepted in the United States of America.

The Governmental Accounting Standards Board (GASB) is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.

Measurement Focus, Basis of Accounting, and Financial Statement Presentation Governmental fund financial statements are presented using the current financial resources measurement focus and the modified accrual basis of accounting. Accordingly, only current assets, deferred outflows of resources, current liabilities and deferred inflows of resources are included on the balance sheet. The statement of revenues, expenditures and changes in fund balance presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.

Revenues are recorded when received in cash, except that revenues subject to accrual (generally these received within 60 days after year-end) are recognized when due.

Expenditures are recorded in the accounting period in which the related fund liability is incurred.

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CITY OF NORCO

MEASURE R TRANSACTION AND USE TAX FUND

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(7)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Fund Balance and Flow Assumptions
The Measure R Transaction and Use Tax Fund financial statements report the following unrestricted fund balance classifications:
 Committed – Includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest authority, City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is through resolution.

When the components of unrestricted fund balance can be used for the same purpose, it is the City’s policy to consider all committed, assigned, and unassigned amounts when determining which classification to apply to an expenditure.

Cash and Investments
Investments are reported in the accompanying financial statements at fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Changes in fair value that occur during a fiscal year are recognized in investment earnings for that fiscal year.

Investment earnings include interest earnings, changes in fair value (realized/unrealized), gains or losses realized upon the liquidation, and maturity or sale of investments.

Cash and investments are pooled with other City funds for investment purposes, with interest being allocated quarterly to various funds based on each fund’s prior month-end cash and investment balance.

Estimates
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

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CITY OF NORCO

MEASURE R TRANSACTION AND USE TAX FUND

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(8)
NOTE 2 CASH AND INVESTMENTS
Equity in the Cash and Investment Pool of the City of Norco The Measure R Transaction and Use Tax Fund has no separate bank accounts or investments other than its equity in the cash and investment pool managed by the City. The Measure R Transaction and Use Tax Fund is a voluntary participant in that pool. This pool is governed by and under the regulatory oversight of the Investment Policy adopted by the City Council of the City. The Measure R Transaction and Use Tax Fund has not adopted an investment policy separate from that of the City. The fair value of the Measure R Transaction and Use Tax Fund’s investment in this pool is reported in the accompanying financial statements at amounts based upon the Measure R Transaction and Use Tax Fund’s pro rata share of the fair value calculated by the City for the entire City portfolio. The balance available for withdrawal is based on the accounting records maintained by the City, which are recorded at the estimated fair value.

Disclosures Relating to the Investment Policy, Interest Rate Risk, Credit Risk and Custodial Credit Risk
Additional disclosures related to the investment policy, interest rate risk, credit risk and custodial credit risk are available in the City of Norco’s Annual Comprehensive Financial Report.

Fair Value Measurements
The Measure R Transaction and Use Tax Fund categorizes its fair value measurements within the fair value hierarchy established by accounting principles generally accepted in the United States of America. The hierarchy is based on the valuation inputs used to measure the fair value of the investments. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are quoted prices for similar assets in active markets; and Level 3 inputs are significant unobservable inputs.

The Measure R Transaction and Use Tax Fund’s investment in the City investment pool is not subject to the fair value hierarchy.

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CITY OF NORCO

MEASURE R TRANSACTION AND USE TAX FUND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2023
See accompanying Note to Required Supplementary Information. (9)
Variance
with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
FUND BALANCE - BEGINNING OF YEAR $ 12,607,574 12,607,574 $ 12,607,574 $ - $

RESOURCES (INFLOWS)
Taxes 7,802,548 8,210,548 8,129,335 (81,213)
Investment Earnings 64,914 64,914 229,888 164,974
Amount Available for Appropriations 7,867,462 8,275,462 8,359,223 83,761

CHARGES TO APPROPRIATIONS (OUTFLOWS)
General Government 11,400 11,400 6,150 5,250
Public Works 567,000 567,000 517,285 49,715
Capital Outlay 17,309,736 16,083,304 6,417,810 10,891,926 Total Charges to Appropriations 16,661,704 17,888,136 6,941,245 10,946,891 Excess of Resources Over (Under)
Charges for Appropriations (8,794,242) 1,417,978 (9,612,674) 11,030,652 FUND BALANCE - END OF YEAR $ 2,994,900 3,813,332 $ 14,025,552 $ 11,030,652 $

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CITY OF NORCO

MEASURE R TRANSACTION AND USE TAX FUND

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2023
(10)
NOTE 1 BUDGETARY ACCOUNTING
The budget for the Measure R Transaction and Use Tax Fund is formally adopted annually and is prepared in accordance with accounting principles generally accepted in the United States of America. The budget is monitored to ensure compliance with legal provisions embodied in the appropriated budget as approved or amended by the City Council throughout the year. Department heads are responsible for monitoring their department’s appropriated budget. The legal level of budgetary control is at the fund level. The City’s management may transfer resources between operating line items within a department in the same fund as they see appropriate. Encumbrances (e.g., purchase orders, contracts) outstanding at year-end are included in the restricted fund balance since they do not constitute expenditures or liabilities.

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(11)

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT

OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE

WITH GOVERNMENT AUDITING STANDARDS
City Council Members
City of Norco
Norco, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the City of Norco, California (the City) including the Measure R Transaction and Use Tax Fund of the City of Norco, as of and for the year ended June 30, 2023 and the related notes to the financial statements, which collectively comprise the Measure R Transaction and Use Tax fund’s financial statements, and have issued our report thereon dated November 30, 2023.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the Measure R Transaction and Use Fund’s financial statements, we considered the City’s internal control as it relates to the Measure R Transaction and Use Tax Fund’s financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the Measure R Transaction and Use Tax Fund’s financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control related to the Measure R Transaction and Use Tax Fund. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control related to the Measure R Transaction and Use Fund.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Measure R Transaction and Use Tax Fund’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses, or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that have not been identified.

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City Council Members
City of Norco
(12)
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Measure R Transaction and Use Tax Fund’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or compliance related to the Measure R Transactions and Use Tax Fund. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control related to the Measure R Transactions and Use Tax Fund.

Accordingly, this communication is not suitable for any other purpose.

CliftonLarsonAllen LLP
Irvine, California
November 30, 2023

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City Council

STAFF REPORT
Date: January 17, 2024 Agenda Item:

3.P.

To: Honorable Mayor and City Council Members
From: Lori Sassoon, City Manager
Prepared By: Kelli Newton, Communications Manager
Department: Communications
SUBJECT:

New Observance Request: National Ag Day
RECOMMENDATION:

Approve the subcommittee's recommendation to recognize National Ag Day.

SUMMARY:

To further promote the City of Norco's agricultural heritage, Communications staff has requested that the City of Norco recognize March 19 as National Ag Day. This observance is not on the approved list of observances, therefore it requires subcommittee review and City Council consideration.

BACKGROUND:

In January 2022, the Norco City Council took action to formally recognize various national holidays, observances and commemorative days (Exhibits A and B). As part of the action, the City Council adopted the following process for new observance requests:
 Step 1: Subcommittee reviews request and makes recommendation to staff  Step 2: City Council determines if the request and recommendation should be approved, denied or amended
New Observance Request
Communications staff has requested that the City of Norco recognize March 19 as National Ag Day. This observance is not on the approved lists of observances, therefore it requires subcommittee review and City Council consideration.

Subcommittee Recommendation

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The City Council Subcommittee, consisting of Council Member Robin Grundmeyer and Council Member Katherine Aleman, recommends that National Ag Day be added to the Pre-Approved Observance List (Exhibit B) and be recognized by newsletter, social media and/or event/program. All observance options, including category and manner of recognition, are noted in the chart below. The subcommittee's recommendations are indicated by the "X".

Observance Options
Annual Observance (Exhibit A)
Observances that are automatically recognized in
the approved manner(s) on the appropriate date(s)
or date ranges.

Category
X
Pre-Approved Observance (Exhibit B)
Observances that are pre-approved for recognition
and will be recognized at staff's discretion (i.e., by
request, in conjunction with current events, etc.)
Closure
X Event/Program
Gateway Sign
X Newsletter
Parade
Proclamation
Manner of
Recognition
X Social Media
City Council Consideration
The City Council may approve, deny or amend the recommendation. If approved, Exhibit A or B will be updated to include the new observance and appropriate action will be taken to recognize the observance in the selected manner(s).

FISCAL IMPACT:

There is no fiscal impact.

RELATIONSHIP TO STRATEGIC PLAN:

This agenda item is consistent with Strategic Direction #4 Communication and Stakeholder Experience: Enhance the stakeholder experience, engage the community, and build brand awareness through proactive, effective and consistent communication.

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

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ATTACHMENT(S):

Exhibit A
Exhibit B

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Month Observance Date Closure Event Gateway Sign Newsletter Parade Proclamation Social Media New Years Day 1-Jan X X X
Martin Luther King Jr. Day Third Monday X X X
Lunar New Year 1-Feb X
National Random Acts of Kindness Day 17-Feb X
Presidents Day Third Monday X X X
National California Day 22-Feb X
Black History Month Month X X X
Daylight Saving Time Second Sunday X
National Vietnam War Veterans Day 29-Mar X
Cesar Chavez Day 31-Mar X
National Women’s History Month Month X X
Ramadan Begins Changes X X
George Alan Ingalls Day 16-Apr X X X X
Rose M. Eldridge Day 16-Apr X X X X
Passover Begins Changes X X
Easter Changes X X X X
National Volunteer Month Month X X
Creation of the Norco Township 13-May
Mother’s Day Second Sunday in May X
Memorial Day Last Monday in May X X X X X
Asian American and Pacific Islander Heritage Month Month X X X National Preservation Month Month X X
National Trails Day First Saturday in June X
National Flag Day 14-Jun X
Juneteenth 19-Jun X
Father’s Day Third Sunday in June X
LGBTQIA Pride Month Month X X X
Independence Day 4-Jul X X X X X
National Day of the Cowboy Fourth Saturday in July X X X X Parks Make Life Better Month Month X X X X X
National Night Out Day First Tuesday in August X X X X X National Nonprofit Day 17-Aug X
Labor Day First Monday in September X X X
Patriot Day 11-Sep X X X X
National POW/MIA Recognition Day Third Friday in September X X X X National CleanUp Day Third Saturday In September X X X X National Gold Star Mother’s & Families Day Last Sunday in September X EXHIBIT A: ANNUAL OBSERVANCES
January
February
March
April
June
July
August
September
May

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Month Observance Date Closure Event Gateway Sign Newsletter Parade Proclamation Social Media EXHIBIT A: ANNUAL OBSERVANCES
National Voter Registration Day Fourth Tuesday in September X Hispanic Heritage Month September 15 to October 15 X X X National Preparedness Month Month X X X
National First Responders Day 28-Oct X
Halloween 31-Oct X X X X
National Fire Prevention Month Month X X X
Day of the Dead 2-Nov X X X X
Daylight Saving Time Ends First Sunday in November X
Election Day Tuesday after first Monday X X X
Diwali Changes X X
Veterans Day 11-Nov X X X X X
Thanksgiving Day Fourth Thursday in November X X X
Small Business Saturday Saturday After Thanksgiving X
Veterans and Military Families Month Month X X X
National Native American Heritage Month Month X X X
Anniversary of the San Bernardino Terrorist Attack 2-Dec X X Christmas Eve 24-Dec X
Christmas 25-Dec X X X X X X
Norco's "Birthday" 28-Dec X
Kwanzaa December 26 – January 1 X X
Hanukkah Changes X X
December
September
October
November

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Month Observance Date Closure Event Gateway Sign Newsletter Parade Proclamation Social Media National Trivia Day 4-Jan X
Korean American Day 13-Jan X
National Dress Up Your Pet Day 14-Jan X
National Hat Day 15-Jan X
Holocaust Remembrance Day 27-Jan X
School Choice Week Changes X
Human Trafficking Awareness Month Month X X
National Freedom Day 1-Feb X
Korean New Year 1-Feb X
National Girls and Women in Sports Day 2-Feb X
National Boy Scouts Day 8-Feb X
Valentines Day 14-Feb X
National Love Your Pet Day 20-Feb X
Super Bowl Sunday First Sunday X
Spay/Neuter Awareness Month Month X X
National Horse Protection Day 1-Mar X
National Read Across America Day 2-Mar X
National Girl Scout Day 12-Mar X
St. Patrick’s Day 17-Mar X
Anniversary of the First Organized Wheelchair Basketball Game 18-Mar X National Medal of Honor Day 25-Mar X
National Take a Walk in the Park Day 30-Mar X
Red Cross Month Month X
National Earth Day 22-Apr X
National Picnic Day 23-Apr X
World Wish Day 29-Apr X
National Arbor Day Last Friday in April X
National Adopt a Shelter Pet Day 30-Apr X
National Therapy Animal Day 30-Apr X
Day of the Child Varies X
Donate Life Month Month X X
National Star Wars Day 4-May X
Cinco de Mayo 5-May X
National Day of Prayer First Thursday in May X
National Military Spouse Appreciation Day Friday Before Mother’s Day X Kentucky Derby Day First Saturday in May X
National Fitness Day First Saturday in May X
Peace Officers Memorial Day 15-May X
National Senior Health and Fitness Day 25-May X
National Armed Forces Day Third Saturday in May X
Small Business Week First Week in May X
EXHIBIT B: PRE-APPROVED OBSERVANCES
February
May
January
April
March

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Month Observance Date Closure Event Gateway Sign Newsletter Parade Proclamation Social Media EXHIBIT B: PRE-APPROVED OBSERVANCES
National Police Week Week of May 15th X
National Military Appreciation Month Month X X X
National Wild Fire Awareness Month Month X X X
National Pet Month Month X X
National Drive-In Movie Day 6-Jun X X X X
D-Day 6-Jun X
Social Media Day 30-Jun X
National Safety Month Month X X X
National Post-Traumatic Stress Disorder Awareness Month Month X Hop-a-Park Day First Saturday in July X
National I Love Horses Day 15-Jul X
August National Senior Citizens Day 21-Aug X
September N/A
National Coffee with a Cop Day 6-Oct X X X X
Columbus Day Second Monday in October X
Native American Day/Indigenous Peoples’ Day Second Monday in October X Great ShakeOut Third Thursday in October X
National Make A Difference Day Fourth Saturday in October X National Civics Day 27-Oct X X
National Fire Prevention Week Week of October 9 X X
Childhood Cancer Awareness Week Week of October 9-15
Red Ribbon Week Week of October 23-31 X
National Take A Hike Day 17-Nov X
National Day of Giving Tuesday after Thanksgiving X
National Pearl Harbor Remembrance Day 7-Dec X
National App Day 11-Dec X
July
November
December
May
June
October

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City Council

STAFF REPORT
Date: January 17, 2024 Agenda Item:

5.A.

To: Honorable Mayor and City Council Members
From: Lori Sassoon, City Manager
Prepared By: Connor Pemberton, Admin Intern
Department: Administration
SUBJECT:

Grading Policy and Expanding the Definition of an Approved Development Plan RECOMMENDATION:

Discuss the matter and direct any follow-up actions as may be appropriate.

SUMMARY:

Chapter 6.32 of the Norco Municipal Code states the current policy regarding excavation within the City of Norco. During City Council on November 8, 2023, there was a brief discussion regarding this policy and the use of grading permits when developing a property. This matter is being brought back for City Council discussion and direction.

BACKGROUND:

Chapter 6.32 of the Norco Municipal Code states the current policy regarding excavation within the City of Norco. This section of the code was last updated in 2015 to clarify some of the City's requirements.

Mayor Pro Tem Newton had asked that this ordinance be agendized for further discussion regarding how it may be updated to ensure that grading permit issuance is limited to those situations where property development has been approved. The City has previously encountered situations where property owners have commenced what appeared to be grading, but was in actuality mining materials from one site for use at another site, or simply removing materials so they may be sold.

The City's practice is that grading permits are not issued unless there is an improvement entitlement for larger projects. For smaller projects like a single-family home, there needs to be a building permit pending for a grading permit to be issued.

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One option for the Council's consideration would be to codify these practices in the existing ordinance. That would provide clarity for property owners and future administrators of the City's code.

It is recommended that the City Council discuss the matter and direct any further actions as may be appropriate.

FISCAL IMPACT:

Not applicable for this item.

RELATIONSHIP TO STRATEGIC PLAN:

Consistent with Strategic Direction #1, 1. Public Health, Safety and Wellness: Enhance quality of life by promoting public health, safety and wellness initiatives 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):

Chapter 6.32 Excavations

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6.32.010

6.32.020

6.32.030

6.32.040

6.32.050

6.32.060

6.32.070

6.32.080

6.32.090

6.32.100

6.32.110

6.32.120

6.32.130

6.32.140

6.32.150

6.32.160

6.32.170

6.32.180

6.32.190

6.32.200

6.32.210

6.32.220

6.32.230
Chapter 6.32

EXCAVATIONS
Intent—Purpose.

Scope.

De?nitions.

Procedures Responsibility.

Permit required.

Exceptions.

Filing of map of proposed
earth movement.

Standards for excavations
and ?lls. . Compaction of ?lls.

Construction of controlled
?lls.

Relationship of buildings to
cut and ?ll slopes.

Responsibility of permittee.

Condition.

Filing—-Renewal fees.

Posting.

Inspections on excavations
and ?lls.

Existing excavations and
?lls.

Dust.

Approval of work by city.

Installation—Maintenance
of protective devices.

Owner not relieved of
responsibility.

Cash deposit—Surety
bond.

Covering cesspool required
when excavation
unattended.
173

6.32.010

6.32.010 Intent—Purpose.

The purpose of this chapter is to establish
minimum requirementsfor excavating, grading
and ?lling on all private property within the
City, in order that such property and all property adjacent thereto may be afforded reasonable protection against the danger to life, limb andproperty, andto establishthe procedures by
which these requirements are to be enforced.In‘
adopting this chapter the City Council declares
the regulationsand standardsestablishedin this
chapter to be reasonableregulations necessary
for the protection of health, safety and general
welfare. (0rd. 38 Sec. 1, 1965)

6.32.020 Scope.

No person shall do any grading not in compliance with this chapter. If two or more provisions of this chapter, and any other applicable law, are in con?ict, that which provides the
greater safety shall prevail. (0rd. 38 Sec. 2,
1965)

6.32.030 De?nitions.

For the purposes of this chapter, the following terms are de?ned as follows:
(1) “Building pad” means a relatively ?at
site which is designed to be occupied by buildings and isprepared by arti?cial means, including grading, excavating, ?lling, or any combinationthereof;
'
(2) “Contractor” means any person properly licensed by the State of California to perform work as describedin this section; (3) “Developer” means any person, ?nn or
corporation developing or contemplating the
development of landwithin the City for any use
whatsoever;
.(4) “Engineer” means a civil engineer, registeredin the State of California, experienced in the ?eld of land development, grading and
drainage;
(5) “Excavation” means any act by which
dirt, earth,sand, gravel, rock, or any other sim-
(Sep-15)

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6.32.040
ilar material is cut into, dug, quarried, uncovered,removed, displaced or relocated, and shall include the conditions resulting therefrom;
(6) “Fill” means any act by which dirt,
earth, sand, gravel, rock or any other similar
material is deposited, placed, pushed, pulled or
transportedto a place other than the place from
which is was excavated, or any material that
has been loosened or disturbed from its natural
state where it was deposited by evolution of
geologicalprocesses;
(7) “Grading” means excavation or ?ll or
any combination thereof and shall include the
conditions resulting from any excavation or ?ll;
(8) “Grading plan” means a plan or map
showing the property boundaries, existing contours and proposed ?nal grades resulting from grading operations;
(9) “Mining operation” means any grading
operationthat exceeds the maximum amount of
grading allowed without a grading permit and
is done without an approved building development plan. A mining operation as a land use is subject to all zoning prohibitions, restrictions,
and regulations of the applicable zone.
(l0)“Owner” means the owner of the land
affected.
(11)“Soil engineer” means a civil engineer,
registeredin the State of California, with a specialty and experience in the analysis of soils. (0rd. 985 Sec. 1, 2015; 0rd. 38 Sec. 3, 1965)

6.32.040 Procedures Responsibility.
(a) It shallbe the responsibility of the developer, engineer, contractor or owner to obtain the services of a soils engineer.
(b) Whenever the terms “written certi?cation,” “approvedin writing,” “speci?ed in writing,” “con?nn in writing,” or similar terms are used in this chapter, it shall be required that the
soils engineer prepare such written documentation and that a copy of said documentation, signed by the soils engineer, be forwarded
immediately upon completion to:
(Sep-l5) 174
(1) The developer;
(2) The engineer;
(3) The City Engineer, to be a matter of permanent record on ?le with the Public Works Department of the City;
(4) Any other agencies as might be required
by City, County, State, or federal law. (0rd. 38
Sec. 4, 1965)

6.32.050 Permit required.

A permit from the PublicWorks Department
is required, except as set forth in Section

6.32.060, before the commencement of any
physical work to raise or lower the existing
grade of any lot, parcel or portionthereof, or for
any excavation or ?lling which changes the
grade of the natural slope of the surface of any
lot, parcel or portion thereof so that it will not
take natural runoff of water from adjacent lots
or parcels as before the excavation or fill, or so
that the surface drainage of the lot, parcel or
portion thereof is concentratedor collectedand
discharges unto another lot or parcelin a different location or in greater quantity, or at an accelerated rate, or in such a way that it will probably result in damage, or in a way that creates a hazard to the public health, safety, or public property. Any permit issued hereunder
shall be valid for the period speci?ed, but shall
not exceed one year. Unless the earth movement is commenced within the time speci?ed in the permit, the permit shall expire; and if
work upon such earth movement, after being
started, ceases for a period of 90 days, the permit shall expire. Permits may be renewed by the Public Works Department upon payment of
the renewal fee provided for in Section

6.32. 140; however, any gradingproject that has
exceeded the original termination date on the
originally issued grading permit, regardless of
any approved renewals, is deemed a nuisance
and a negative impact to the community. An
impact mitigation ?ne schedule to be determined by the City Council shall be due and payable by the owner. Failure to pay any

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impactmitigation ?nes will result in the levy of
the ?nes against the property as a lien. (0rd.
985 Sec. 1, 2015; 0rd. 38 Sec. 5, 1965)

6.32.060 Exceptions.

The following are speci?cally excepted
from the provisions of this chapter:
(1) An excavation below ?nished grade for
a basement or footings for a building, or swimming pool, or other structures authorized by a valid building pennit which has been issued by the City, but this exception shall not affect the
applicability of any provisions of this chapter
to any ?ll made with the material of such excavation;
(2) Notwithstanding anything to the contrary stated in this code, including Chapter

15.04, grading by excavation to a depth two
feet or less; grading by ?ll to a height not
exceeding one foot; grading by excavation or ?ll involving material which does not exceed a volume of 60 cubic yards, which grading is conducted on a lot or parcel established by a
recorded deed or a recorded ?nal subdivision
or parcel map;
(3) Any reclamationor rubbish disposal site
operated by a government agency;
(4) Any work done in City streets where a permit therefor has been granted under any City law, ordinance or regulation;
(5) Any work done in order to protect the
public health, safety andwelfare in the event of
emergency or disaster. (0rd. 985 Sec. 1, 2015;
0rd. 339 Sec. 1, 1975; 0rd. 38 Sec. 6, 1965)

6.32.070 Filing of map of proposed
earth movement.

With the application for a permit and prior to
commencement of work, there shall be submitted:
(1) A ?nished grading plan prepared by the
engineer showing the present contours
extended a reasonable distance beyond the
perimeter of the land, existing structures and
175

6.32.060
facilities, and the proposed ?nal grades. The
proposed ?nal grades shall clearly indicate
cuts, ?lls and slopes. The estimatedvolumesof
cut and/or ?ll and estimated dates for starting
and completing the work shall be stated;
(2) A written report shall be submitted by
the soils engineer. The report shall indicate the
type of soil, the unit foundation bearing values
for the proposed construction at ?nal grade,
and include any pertinent data or opinionas to
slopes which may be safely constructed;
(3) Details of drainage structures, walls,
cribbings, surface protection and landscaping
that will be constructed or installed on the site.
(0rd. 38 Sec. 7, 1965)
Standards for excavations and
fills.
(a) Steepness of slopes.
(1) No excavation shall be made with a cut
face steeper than one and one-half horizontal
to one vertical, nor shall ?lls be made with
slopes steeper than two horizontal to one vertical;
(2) Steeper slopes than those required in
subsection (1) above shall be permitted by the

6.32.080
.;CityEngineer, subject to the following conditions: A written report by a soilsengineer, stating that he has investigated the site, made adequate tests and calculations, together with
his opinion as to the degree of cut and/or ?ll
slopes which may be constructed without
endangeringhealth, safety, or property.
(b) Maximum height of slopes. No cut or ?ll
slopes shall be constructed over 30 feet in
height, unless the City Engineer is ?nnished
evidence by a written report of a soils engineer
that such slopes will be stable with a factor of
safety at least one and ?ve-tenths.
(c) Drainage, general. All drainage provisions shallbe of such design as to carry surface waters along a course approved by the City
Engineer to the nearest practical street, stonn
drain, or natural watercourse, or a safe place to
($61345)

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6.32.090
deposit and receive such waters. Said drainage
provisions shall be of such design so as not to
endanger the health and safety of any property,
either private or public.No natural watercourse
shall be ?lled or restricted until provisions for
adequate drainage, designed by the engineer
and approved by the City have been installed.
(d) Building pad grading. The Building
Of?cial shall approve the building pad grading
at the time of ?nal inspection for drainage of
lots as shown on the approved grading plan.

The approvedgrading plan shall bemade available to the Building Of?cial at this time. (e) Cross drainage requirements.
(1) There shall be at least one terrace not
less than ?ve feet in width constructedin every
?ll slope greater than thirty feet in height or in
‘cut slopes where the soil structure so requires
by report of a soils engineer. The terrace shall
be constructed so that surface drainage will be
collected in a lined gutter or similar device
located at the toe of the slope which terminates
in the terrace. Water shall be carried laterally
in said terrace to a catch basin or similar structure designed to collect surface drainage, the water to then be carried in a culvert or similar
structure designed to take such water to the
nearest practical street, storm drain, or natural
Watercourse;
(2) Other types of surface protection will be
permitted in lieu of terraces when plans and
speci?cations are submitted by the tract engineer or soils engineer, and said protection is approved by the City Engineer. (0rd. 38 Sec.
8, 1965)

6.32.090 Compaction of fills.

The soils engineer shall control the compaction of all ?lls and shall certify that the complete ?ll meets the compaction requirements of this chapter. (0rd. 38 Sec. 9, 1965)
(Sep-15)
Construction of controlled
?lls.

As supervised by the soils engineer, the following shall be used as a guide for ?lled areas.

For speci?c projects it may be necessary to
make adjustment predicated upon the analysis
of the material proposed to be used for the ?ll
and other conditions pertaining to the project,
and such adjustments may be made upon written recommendationof the soils engineer:
(1) General description. The work shall
consist of clearing and grubbing, removal of
existing structures, preparation of land to be
?lled, ?lling of the land, spreading, compaction and control of the ?ll, structures and all subsidiary work necessary to complete the
grading of all ?lled areas to conform with the
lines, grades and slopes as shown on the
accepted plans;
(2) Clearing, grubbing and preparing areas
to be ?lled.
(A) Alltimber, logs, trees, brush, objectionable amounts of vegetable matter, and other rubbish shall be removed from the site so as to
leave the areas free from all debris,
(B) The surface shall then be plowed or
scari?ed to a depth of at least six inches, and
until the surface is free from ruts, hummocks or other uneven features which would tend to prevent uniform compaction by the equipment
to be used,
(C) Where ?lls are made on hillsides or adjacent to slopes greater than one vertical to four horizontal, continuous steps or benches
shall be cut into ?rm and fully compacted
material before ?lling is begun,
(D) After the foundation for the ?ll has been
cleared, plowed or scari?ed, it shall be disced
or bladed until it is uniform and free from large
clods; brought to the soil the proper moisture
content; and compacted in the same manner
and to the same degree as required for the ?ll
material. Said foundation shall be compacted
to the full depth of disturbance, and in no case
shall the depth be less than six inches;

6.32.100

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(3) Materials. Materials for the ?ll shall
consist of material approved by the soils engi- neer and may be obtained from the excavation of lands, borrow pits, or any other approved
sources. The material used shall be soil free of
rocks or lumps of greater dimension than six
inchesin the top 18 inches and shallnot contain
paper, wood, glass, tin, metal, cardboard, or
any other deleterious substance;
(4) Placing, spreading and compacting ?ll
material.
(A) All ?lls more than one foot in depth
shall be compacted to not less than ninety percent of the maximum density as determinedby the test method ASTM DIS 57 and ASTM D1556 and latest revisions, after ?rst clearing, grubbing and preparing the natural ground surface as described above in (2), (B) Field density tests shallbe made at a ?equency detennined by the soils engineer, but in no case shall tests be made at a greater interval
than two feet of vertical ?ll. Except for ?nished grades, which shall be tested to the surface, the test may be taken in the compacted material several inches below the disturbed
surface. No additional layers of ?ll shall be
spreaduntil the ?eld density tests indicate that
the speci?ed density has been obtained,
(C) Where loose materials remain on the
slope after the ?nal elevation of the slope has
been attained,these loose materialsshall either
be removed or be compacted to 83 percent, as
determinedby the test method listed in (4) (A),
to a depth nine inches below the surface of the
slope;
(5) Supervision. Suf?cient time shall be
spent by the soils engineer on the site each day
that ?lls are placed or other pertinent work is
accomplished to permit the soils engineer to
certify to the proper compaction of all ?lls and
to the adherence with all other requirements of
the ordinance for which he certi?ed;
176-1

6.32.100
(6) Seasonallimits.No ?ll materialshall be
placed, spread or rolled during unfavorabl
weather e
(Sep-15)

Page 422 of 523 ends

conditions.When work isinterruptedbyheavyrain,
?ll operationsshall not be resumeduntil ?eld tests
by the soil engineer indicate that the moisture
content and density of the ?ll are satisfactory for
resumption of the ?lling operation. (0rd. 38 Sec.
10, 1965)
Relationship of buildings to cut
and ?ll slopes.
(a) Buildings or structures shall be located
clear ofthe toe or top of cut or ?ll slopesaccording
to the following:
(1) A minimum of ?ve feet providedthe slope
does not exceed ten feet in height;
(2) One-half the vertical height of slope for
slopes between ten feet and twenty feet in height
with a maximum of ten feet.
(b) Conforming slopes twenty feet or more in
vertical height shall be providedwith a designed
retaining wall four feet in heightabovetheir toe for
that portion of the slope parallelingany buildings
with a distance of less than thirty feet between the
building and toe of slope.
(c) The provisions of paragraphs (a) and (b)
may be waived upon acceptance by the city
engineer of a report by the soils engineer stating
that the distance speci?ed can be safely reduced
without endangering health, safety or property.
(0rd. 38 Sec. 11, 1965)

6.32.110

6.32.120 Responsibility of permittee.

Buildings and grading permits shallbe presumed
to incorporate the proviso that the applicant, his
agent, employees, or contractors shall carry out the
proposedwork in accordance with the approved
plans and with all requirements ofthis chapter and
any other laws or regulations applicable thereto,
whether speci?ed or not. No approvalshallrelieve
or exonerate any person from the responsibility of
complying with the provisions and intent of this
chapter. (0rd. 38 Sec. 12, 1965)

6.32.130 Condition.

In granting a grading permit, the city engineer
shall impose such conditions thereon as are

6.32.110
reasonably necessary to prevent the propose
d operations from being conducted in such a manner
as to constitute or create a nuisance or hazard to life or property. Such conditions shallinclude:
(1) Designation of a reasonabletime limit for
the commencement and completion of grading
work;
(2) Limitationsupon the hours of the day, days
of the week and seasons of the year for conducting
grading operations;
(3) The designation of routes on city streets
along which dirt, earth, sand, gravel or similar
materials shall be transported when the permit isfor
more than ?ve hundred cubic yards;
(4) Restrictions as to size and type of
equipment to be used for hauling material on an
improved city street for permits of more than ?ve
hundred cubic yards;
(5) Provision for controlling dust and ?ying
dirt by use of water and other means. (0rd. 38 Sec.
13, 1965)

6.32.140 Filing—Renewal fees.

Every applicationfor a permit for an excavation
or ?ll shall be accompanied by a ?ling fee
determined as follows:

Filing fee
1,000 cubic yards or less $15.00
1,001 cubic yards or more $15.00 plus $1.00
for each additional
1,000 cubic yards or
fraction thereof.

Renewal fee
1,000 cubic yards or less $7.50
1,001 cubic yards or more $7.50 plus $.50 for
each additional
1,000 cubic yards or
fraction thereof.
(0rd. 38 Sec. 14, 1965)

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6.32.150

6.32.150 Posting.

Every permitissuedpursuant to this chapter shall
be kept in a conspicuous place on the property for
which issued during the entire period that the work
ofgrading,excavating of ?lling is being done. (0rd.
38 Sec. 1, 1965)
Inspections on excavations and
fills.

Inspections on excavations and ?lls will be
performedby the soils engineer. (0rd. 38 Sec. 16,
1965)

6.32.160

6.32.170 Existing excavations and fills.

Whenever the city engineer determines by
inspectionthat any existing excavationor fill from
any cause has become a menace to life or limb, or
endangers property, blocks or restricts a natural
watercourse or affects the safety, usability or
stabilityof a publicway, the owner of the property
upon which such excavationor fill is located, or
other person or agent in control of the property,
upon receipt of notice in writing from the city
engineer so to do,shall withinninety days from the
date of such written notice, repair or reconstruct
suchexcavationor ?ll so that it will conform to the
requirements set forth in Sections 6.32.080 and

6.32.090, or otherwise repair, reconstruct,
strengthenor eliminate such excavation or ?ll in a
mannersatisfactory to the city engineer, so that it
will nolonger constitute a menace or danger as
aforesaid.A shorterperiodoftime may be speci?ed
if an imminent land immediate hazard is found to
exist. Service of notice shall be by personal service
upon the owner, as shown by the last equalized
assessment roll, it’he is found within the territorial
limits ofthe city. If he is not so found, service may
be madeupon the ownerby registeredmail, postage
prepaid, at his address as shown in the last
equalizedassessment roll, or by personalservice on
the personoccupyingor controlling the structure, if
any. The owner personin control of the structure
may, within ?fteen days from service of such
notice, appeal to the city council.
178
If the owner or person in charge or controlfails,
neglects or refuses to comply with the notice to
repair or reconstruct, the city engineermay cause
the unsafe ?ll or excavation to be repaired,
reconstructed or ?lled to eliminate any unsafe
conditions either by the use ofthecityemployeesor
by contract with third persons. Costs incurred by
the city as a result of the use of city employees and
equipment or by contract with third persons shall
constitute a specialassessment on the realproperty
on which the unsafe condition existed.The city
engineer shallsubmit an itemized report of costs to
the city council. The city council shall cause a copy
of the report, together with notice of the date and
time of hearing protests to be servedon the property
owner or person in charge and control of the
property in the same manner as provided in the
original notice to correct. The city council shall
either approve, disapprove or modify the report of
costs. The amount ?nally approvedshall be a lien
upon the real property and the city council shall
adopt a resolution assessing the amount as a lien
upon the respective parcels as shown on the last
equalized assessment roll. Assessments shall be
collectable in the same manner as generaltaxes and
subject to the same penaltiesand forfeitures, or may
be enforcedby a separate actionat law. (0rd. 38 17,
1965)

6.32.180 Dust.

The permittee shall provide such dust laying
equipment and methods as may be required to
protect adjacent property from annoyance or
damage from dust caused by his operations. (0rd.
38 18, 1965)

6.32.190 Approval of work by city.
(a) The city engineer will review the soils
engineer's ?nal report, and upon evidence that all
requirements of this chapter have been satisfactorily
complied with, shall so notify the building division
and issue a letter to the permittee.
(b) The engineer shall certify to the city that
the grading has been accomplished in accordance

Page 424 of 523 ends

h
u
with the ?nished gradingplan or any deviations
therefrom.
(c) The engineer shall submit a ?nal grading map showing thereon location or controlled compacted ?lled ground, original and ?nal
contour lines or ?nished grade elevations and
location of all drainage structures. (0rd. 38 19,
1965)
Installation—Maintenance of
protective devices.

All graded and compacted slopes over four
feet in height with slopes between one and onehalf horizontalto one verticalto four horizontal to one vertical shall be planted prior to ?nal
inspection with plants and methods of planting
approved by theBuilding Of?cial. These plants
must be maintainedandwatered in such a man- ner as to show de?nite signs of growth at the time of ?nal inspection.

The owner of any property on which an excavation or ?ll has been made pursuant to the provisions of this chapter, or any other person
or agent in possession or control of such property, shall maintain all slopes, retaining walls, cribbing, drainage structures and other necessary protective devices. (Ord. 38 20, 1965)

6.32.200
Owner not relieved of
responsibility.

Compliance with the requirements and con- ditions of this chapter shall not be construed to relieve the owner of real property of any legal
duties, obligations or liabilities incident to the
ownership of the property while the work of
grading, excavating, or ?lling is in progress, or
a?er the completionthereof. (0rd. 38 21, 1965)

6.32.210

6.32.220 Cash deposit—Surety bond.

The applicant for a permit pursuant to Section 6.32.050 shall deposit with his application a cash deposit or surety bond in a form satisfactory to the City and suf?cient to cover the cost 179

6.32.200
of all matters involving expense to the City
arising out of the permit application andits use,
such as inspection and the services of the City
Engineer, and the amount needed to adequately
revegetate a graded site that has been abandoned before revegetation is completed. The amount of such deposit or bond shall be determined by the City Engineer. All costs incurred by the City in connection with the permit and
the work covered by such permit shall be
charged to and paid by the moving permit
grantee. (0rd. 985 Sec. 1, 2015; 0rd. 38 22,
1965)

6.32.230 Covering cesspool required
when excavation unattended.

Every person who digs or excavates any
cesspool, seepage pit, well or similar type of
shaft, having a diameter in excess of eight
inches and intended upon completion to be
covered or otherwise protected in such a man- ner as will prevent persons from falling into the same, shall, during the digging or excavation
thereof anduntil the same shall have been completely and permanently covered or otherwise protected, keep the excavation securely cov- ered, at all times when the same is unattended, with a cover consisting of at least two thick
nesses of three-fourths inch exterior plyboard, - or its equivalent in strength, with at least one foot of earth completely covering the same.
(0rd. 8 Sec. 2 (County 0rd. 421 1), 1964)
(Sep-15)

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City Council

STAFF REPORT
Date: January 17, 2024 Agenda Item:

5.B.

To: Honorable Mayor and City Council Members
From: Lori Sassoon, City Manager
Prepared By: Kelli Newton, Communications Manager
Department: Communications
SUBJECT:

Recognizing 2024 City of Norco Anniversaries
RECOMMENDATION:

Provide feedback on recommended opportunities to recognize the 60th Anniversary of the City of Norco's Incorporation and the 10th Anniversary of the George A. Ingalls Veterans Memorial Plaza.

SUMMARY:

At the City Council Regular Meeting of Wednesday, December 6, 2023, Mayor Kevin Bash made a motion to agendize an item to discuss the recognition of the 60th Anniversary of the City of Norco's incorporation and the 10th Anniversary of the George A. Ingalls Veterans Memorial Plaza. The motion was approved 5-0. Staff has recommended opportunities to recognize these significant anniversaries.

BACKGROUND:

In January 2022, the Norco City Council took action to formally recognize various national holidays, observances and commemorative days, including the City of Norco's 'birthday.'
Observance Background:

On May 13, 1923, Rex B. Clark officially unveiled his new community called “Norco” and put the first properties up for sale, marking last year (2023) as the 100th Anniversary of the creation of the Norco Township. However, on December 28, 1964, Norco was officially designated as a city with the motto “City Living in a Rural Atmosphere," marking this year (2024) as the 60th Anniversary of Norco's incorporation, or the City's 'birthday.' In November 2014, as part of the City's 50th 'birthday' celebration, with the support of generous donors and volunteers, the City of Norco gifted the community the

Page 426 of 523 ends

George A. Ingalls Veterans Memorial Plaza at the Ingalls Event Center, marking this year (2024) as the 10th Anniversary of the dedication of the Veterans Memorial Plaza.

Recognition Opportunities:

From May to December 2023, City staff heavily promoted the 100th Anniversary of the creation of the Norco township, including a custom logo, tagline, merchandise and a one-time event. While it is customary for city's to recognize significant anniversaries, staff recommends focusing this year's efforts on recognizing the 10th Anniversary of the Veterans Memorial Plaza.

Logo: Staff recommends using the established Veterans Memorial Plaza logo (silhouette saluting in front of American Flag background) with the addition of text (e.g., '10th Anniversary,' '2014-2024,' etc.) above/beneath the logo.

Merchandise: Staff recommends selling a limited edition t-shirt, hat and challenge coin that features the anniversary artwork. Due to the surplus supply from the 100th Anniversary, staff recommends selecting one (1) color/style t-shirt and one (1) color/style hat.

Event: Staff recommends recognizing both anniversaries in conjunction with the annual Veterans Day event on Monday, November 11, at the Veterans Memorial Plaza.

Banners: Staff recommends recognizing the 10th Anniversary of the Veterans Memorial Plaza via the banner poles on Sixth Street. Typically, 42 military banners are displayed on Sixth Street from May (prior to Memorial Day) to November (following Veterans Day).

Funding ($4,200) was allocated in the Fiscal Year 2023-24 budget to honor the individuals recognized on the Lest We Forget Wall at the Veterans Memorial Plaza (currently 39 individuals) with personalized banners on Sixth Street. Banners would be designed in-house, featuring the anniversary artwork, and photos of each honoree would be supplied by the Veterans Commission. With this action for the anniversary, the Military Banner Program is on hold until 2025, and banners would not be sold to community this calendar year but would resume for 2025.

Promotion: Staff will create multimedia content to promote both anniversaries via its official communication platforms.

Time Period
Staff recommends recognizing both anniversaries from November-December 2024. The limited edition merchandise can be sold at the Veterans Day event, as well as following events while supplies last.

FISCAL IMPACT:

Funds for the banner program were already included in the FY 2023-24 budget.

Depending upon the Council's decisions, a budget for the challenge coin and merchandise will be developed and presented for Council approval in the future.

RELATIONSHIP TO STRATEGIC PLAN:

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This agenda item is consistent with Strategic Direction #4 - Communication and Stakeholder Experience: Enhance the stakeholder experience, engage the community, and build brand awareness through proactive, effective and consistent communication.

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

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City Council

STAFF REPORT
Date: January 17, 2024 Agenda Item:

6.A.

To: Honorable Mayor and City Council Members
From: Alma Robles, Community Development Director
Prepared By: Vince Acuna, Senior Planner
Department: Planning
SUBJECT:

Zone Code Amendment 2023-06 (City of Norco): A City initiated amendment to Title 18, Chapter 18.02 - "Definitions", to clarify the definitions of Hotels and Motels to include the maximum stay of 30 consecutive days.

RECOMMENDATION:

Adopt Ordinance No. 1108, approving Zone Code Amendment 2023-06.

SUMMARY:

The purpose of this Zone Code Amendment is to clarify the provisions on the length of stay for hotels and motels in the City of Norco.

BACKGROUND:

PROJECT DESCRIPTION: Chapter 18.02 - "Definitions", Section 18.02.08 - "Specific Definitions" of the Norco Municipal Code includes definitions for hotels and motels, but does not include an indication on the length of stay. Hotels (definition No. 35) and motels (definition No. 53) are currently defined as follows:
(35) Hotel. A building containing six (6) or more guest rooms intended to be occupied by six (6) or more guests for compensation and in which no more than 10 percent of the guest units contain kitchens. Jails, hospitals, asylums, sanitariums, orphanages, prisons, detention homes, and similar facilities where persons are housed and detained under legal restraint are not included. (53) Motel. A group of attached or detached buildings containing individual sleeping or living units of which a maximum of 10 percent may have kitchens, with garage attached or parking space conveniently located to each unit, all for the temporary use by automobile tourists or transients; includes tourist courts, motor lodges, auto courts.

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The purpose of this amendment is to clarify the intent behind allowing hotels and motels along the City's major commercial thoroughfares (Hamner Avenue and Sixth Street), which is to expand the economic base of the City through the growth of Transient Occupancy Tax (TOT) revenues, and to avoid misuse of hotels and motels for other purposes. Pursuant to state law and the City's TOT ordinance, TOT can only be applied for hotel and motel stays of 30 days or fewer.

Staff is recommending the following amendments (proposed changes are in red):
(35) Hotel. A building containing six (6) or more guest rooms intended to be occupied by six (6) or more guests for compensation and in which no more than 10 percent of the guest units contain kitchens. No hotel guestroom shall be rented to the same individual or group for a period exceeding 30 consecutive calendar days, counting portions of calendar days as full days. Jails, hospitals, asylums, sanitariums, orphanages, prisons, detention homes, and similar facilities where persons are housed and detained under legal restraint are not included. (53) Motel. A group of attached or detached building containing individual sleeping or living units of which a maximum of 10 percent may have kitchens, with garage attached or parking space conveniently located to each unit, all for the temporary use by automobile tourists or transients; includes tourist courts, motor lodges, auto courts. No motel guestroom shall be rented to the same individual or group for a period exceeding 30 consecutive calendar days, counting portions of calendar days as full days.

PLANNING COMMISSION INPUT: On December 13, 2023, the subject Zone Code Amendment was brought forward to the Planning Commission. During deliberation, the Planning Commission considered a timeframe between the proposed 30-day stays, in order to discourage hotel guests from checking out at the end of the 30 days and checking in again on the same day. The Planning Commission ultimately decided to recommend the subject Zone Code Amendment for City Council approval without imposing a timeframe between 30-day stays, in order to allow for flexibility for hotel operators.

CONCLUSION: Staff is recommending that the City Council approve the proposed amendments noted above as part Zone Code Amendment 2023-06.

FISCAL IMPACT:

It is anticipated that this action will provide for some amount of additional TOT revenue, although that benefit cannot be estimated. TOT will be applicable for all hotel stays (unless exempted), which will be will be collected as revenue to the General Fund.

RELATIONSHIP TO STRATEGIC PLAN:

This item is consistent with Strategic Plan Direction No. 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:

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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):

CC Ordinance No 1108 for Zone Code Amendment 2023-06

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ORDINANCE NO. 1108

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NORCO,
CALIFORNIA, APPROVING ZONE CODE AMENDMENT 2023-06: A CITY INITIATED AMENDMENT TO TITLE 18, CHAPTER 18.02 - "DEFINITIONS",

TO CLARIFY THE DEFINITIONS OF HOTELS AND MOTELS TO INCLUDE THE MAXIMUM STAY OF 30 CONSECUTIVE DAYS.

WHEREAS, the CITY OF NORCO initiated Zone Code Amendment 2023-06, a proposal to amend Norco Municipal Code Title 18 (Zoning Code), Chapter 18.02 - "Definitions", to clarify the definitions of Hotels and Motels; and WHEREAS, the Zone Code Amendment was duly submitted to said City’s Planning Commission for decision at a public hearing for which proper notice was given; and WHEREAS, the Zone Code Amendment was scheduled for public hearing on December 13, 2023 on or about 7 p.m. in the Council Chambers at 2820 Clark Avenue, Norco, California 92860; and
WHEREAS, at the time set, the Planning Commission held a public hearing and received both oral and written testimony pertaining to the Zone Code Amendment; and WHEREAS, the Planning Commission adopted Resolution 2023-34, recommending approval of Zone Code Amendment 2023-06 to the City Council; and WHEREAS, the Zone 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 Zone Code Amendment was scheduled for public hearing on January 17, 2024 on or about 7 p.m. in the Council Chambers at 2820 Clark Avenue, Norco, California 92860; and
WHEREAS, at the time set, the City Council held a public hearing and received both oral and written testimony pertaining to the Zone Code Amendment; and WHEREAS, the City of Norco acting as the Lead Agency has determined that this Zone Code Amendment is exempt from review under the California Environmental Quality Act (CEQA).

NOW, THEREFORE, the City Council of the City of Norco does hereby make the following FINDINGS AND DETERMINATIONS:

I. FINDINGS.

A. The proposed Zone Code Amendment is necessary to clarify the intent behind allowing hotels and motels along the City's major commercial thoroughfares, which is to expand the economic base of the City and to avoid misuse (i.e. rental apartments) of hotels and motels.

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Ordinance No. 1108 for Zone Code Amendment 2023-06
February 7, 2024

Page 2 ends

B. The proposed Zone Code Amendment addresses uses that are consistent with the land use designation of the General Plan and will therefore not conflict with City of Norco General Plan.

C. The proposed Zone Code Amendment will not be detrimental to the public convenience, health, safety, or general welfare of the City because the amendment will minimize the potential misuse of hotels and motels.

D. The proposed Zone Code Amendment 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 it will not result in a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.

II. DETERMINATION:

NOW THEREFORE, the City Council for the City of Norco, California, does hereby approve as follows:

SECTION 1:

Title 18 (Zoning) of the Norco Municipal Code, Chapter 18.02 - "Definitions", Section

18.02.04 - "Specific Definitions", Subsections 35 and 53, is hereby amended to read as follows:
(35) Hotel. A building containing six (6) or more guest rooms intended to be occupied by six (6) or more guests for compensation and in which no more than 10 percent of the guest units contain kitchens. No hotel guestroom shall be rented to the same individual or group for a period exceeding 30 consecutive calendar days, counting portions of calendar days as full days. Jails, hospitals, asylums, sanitariums, orphanages, prisons, detention homes, and similar facilities where persons are housed and detained under legal restraint are not included.
(53) Motel. A group of attached or detached building containing individual sleeping or living units of which a maximum of 10 percent may have kitchens, with garage attached or parking space conveniently located to each unit, all for the temporary use by automobile tourists or transients; includes tourist courts, motor lodges, auto courts. No motel guestroom shall be rented to the same individual or group for a period exceeding 30 consecutive calendar days, counting portions of calendar days as full days.

SECTION 2. EFFECTIVE DATE: This Ordinance shall become effective 30 days after final passage thereof.

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Ordinance No. 1108 for Zone Code Amendment 2023-06
February 7, 2024

Page 3 ends

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 the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Ordinance, and each section, subsection, sentence, clause, sentences, clauses, or phrases here of 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 hereto and shall cause the same within 15 days of its passage to be posted at no less than five 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 February 7, 2024.
__________________________
Kevin Bash, Mayor
City of Norco, California
ATTEST:
________________________
Dana Roa, CMC, City Clerk
City of Norco, California

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Ordinance No. 1108 for Zone Code Amendment 2023-06
February 7, 2024

Page 4 ends

I, DANA ROA, CMC, City Clerk of the City of Norco, California, do hereby certify that the foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Norco, California, duly held on January 17, 2024 and thereafter at a regular meeting of said City Council duly held February 7, 2024, it was duly passed and adopted by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS THEREOF, I have hereunto set my hand and affixed the official seal of the City of Norco, California, on February 7, 2024.
________________________
Dana Roa, CMC, City Clerk
City of Norco, California

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City Council

STAFF REPORT
Date: January 17, 2024 Agenda Item:

6.B.

To: Honorable Mayor and City Council Members
From: Alma Robles, Community Development Director
Prepared By: Vince Acuna, Senior Planner
Department: Planning
SUBJECT:

Zone Code Amendment 2023-07 (City of Norco): A City initiated amendment to Title 18, Chapter 18.13 – Agricultural Low Density (A-1 Zone) to update to the provisions for large animal-keeping and roosters, clarify the public nuisance and violations for excessive roosters and excessive animal units, and clarify general provisions/development standards.

RECOMMENDATION:

Adopt Ordinance No. 1109, approving Zone Code Amendment 2023-07.

SUMMARY:

The purpose of this Zone Code Amendment (ZCA) is to update the provisions for large animal-keeping and roosters, and clarify violations for excessive roosters and large animals in the A-1 Zone. With this ZCA, the building height development standard is also clarified for the A-1 Zone.

BACKGROUND:

PROJECT DESCRIPTION: The proposed zone code amendment is comprised of the following changes to Title 18 (Zoning) of the Norco Municipal Code (NMC), which are described in detail below.

Updated Large Animal-Keeping in the A-1 Zone: The Animal Services Division is proposing to update animal keeping provisions in order to allow for exotic animals such as camels, llamas, alpacas, and emus that are not native to the state, but that are commonly-kept in the City. Listing these animals as permitted animal units will not only make provision for these animals, but will provide Animal Services a mechanism of control to protect the health and welfare of the community.

NMC Chapter 18.13, Section 18.13.06 (D)(4) is proposed to be amended as follows (change/additions is red):

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4. Adult animal units shall be determined as follows:

Animal Shall Equal
One Equine One Animal Unit
One Bovine One Animal Unit
One Swine One Animal Unit
Two Sheep One Animal Unit
Two Goats One Animal Unit
Two Miniature Horses
Equines One Animal Unit
Two Miniature Bovines One Animal Unit
One Camel One Animal Unit
One Llama One Animal Unit
Two Alpacas One Animal Unit
Two Emus One Animal Unit
One Ostrich One Animal Unit
i. Offspring of permitted adult animal units shall not be counted in determining the permitted number of adult animal units on a given lot, if such offspring do not exceed the following age limitations:

Equine, six months
Bovine, six months
Swine, 60 days
Sheep, 90 days
Goats, 90 days
Camel, eight months
Llama, six months
Alpaca, six months
Emu, six months
ii. To facilitate enforcement of Section 18.13.06 (D)(4), offspring of nonpermitted adult animal units shall be counted as adult animal units, notwithstanding their age at any particular time.

Updated Provisions for Rooster in the A-1 Zone: In order to increase the compatibility of roosters in the A-1 zone, and to help curtail non-permitted activity that often comes with roosters, staff is recommending the proposed ZCA include reducing the number of roosters permitted that would require a Conditional Use Permit (CUP) from 25 to 17, and clarification indicating that keeping/maintained roosters above 17 without the required CUP is a public nuisance.

It would also establish that each rooster above the required limit without a CUP is a separate and independent violation. This separate violation provision would apply to excessive large animal units as well.

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NMC Chapter 18.13, Section 18.13.06 (D)(1), is proposed to be amended as follows (change/additions is red):

D. Agricultural Uses:

Farms devoted to the hatching, raising, butchering, or marketing on a commercial scale of chickens, turkeys, or other fowl or poultry and rabbits, fish, frogs, mink, chinchilla, or other small animal farms of a similar nature; provided, however, that not more than 500 turkeys per acre, in addition to brooding stock, shall be kept, fed, or maintained on a parcel of less than five acres. No commercial poultry operation shall be established on a parcel containing less than nine acres or with a width of less than 300 feet, and all poultry buildings and structures shall be set back a minimum of 25 feet from the rear and side lines of the parcel and 50 feet from any public road or highway. Unless otherwise noted below, the provision for fowl or poultry shall not include roosters.

Roosters shall be regulated as noted below:
a. The maximum number of roosters permitted, for noncommercial animal-keeping, in relation to lot size shall be determined as follows:

Lot Size Maximum Roosters
10,000 but less than 19,999 sq. ft. 4
20,000 but less than 24,999 sq. ft. 16
25,000 but less than 29,999 sq. ft. 25 17*
30,000 but less than 34,999 sq. ft. 34*
35,000 but less than 39,999 sq. ft. 43*
40,000 or more 55*
*Conditional use permit required for keeping more than 16 roosters regardless of lot size.
b. When it can be determined by appearance or crowing that a bird is a stag, it shall be included in the count regardless of the age of the stag. c. All properties with more than 16 roosters shall be required to obtain a conditional use permit and shall be required to have roosters contained on the property at all times, with said roosters maintained a minimum of 50 feet from the nearest adjacent residence.

Any operation consisting of 55 or more roosters shall be considered a commercial operation and in addition to requiring approval of a conditional use permit, it shall have the same restrictions pertaining to a commercial poultry business noted in Section D.1 of this section.
d. It is unlawful and a public nuisance to keep or maintain more than 16 roosters on any property in the A-1 zone without the approval of a conditional use permit.

NMC Chapter 18.13, Section 18.13.06 (D)(10), is proposed to be amended as follows (change/additions is red):

10. Deleted by Ordinance 812, 2003. No person, firm, corporation, or other entity shall maintain more than the maximum number of roosters and/or animal units permitted, or conditionally permitted, by this Chapter. Each and every rooster and/or animal unit on a

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property that exceeds the maximum number of roosters and/or animal units permitted by this Chapter shall constitute a separate and independent violation of this Chapter.

Height Limit in the A-1 Zone: The provision that limits the height of main structures (such as a primary home) to 35 feet within the A-1 zone was accidentally deleted during a code amendment years ago. Although staff has consistently applied a 35-foot height limit for main structures per the intent of the original height provision, the A-1 zone has lacked the explicit text that sets a height limit for a main structure. This amendment restores the original text on NMC Chapter 18.13.18, which sets the height limit for main structures to a maximum 35 feet or two and a half stories (whichever is less) in the A-1 zone.

NMC Chapter 18.13, Section 18.13.18 - Permitted Heights, is proposed to be amended as follows (changes/additions in red):

18.13.18 Permitted Heights.

The maximum height of any building shall be two and one-half stories or 35 feet, whichever is less. The maximum height of an accessory building shall be per the regulations of Chapter 18.68 (Ord. 1019 Sec. 1, 2017; Ord. 924 Sec. 1, 2010).

PLANNNING COMMISSION INPUT: On December 13, 2023, the subject Zone Code Amendment was brought forward to the Planning Commission. The Planning Commission recommended changing one alpaca/emu to count as one animal unit to two alpacas/emus counting as one animal unit, citing their relatively small size.

CONCLUSION: Staff is recommending that the City Council approve the proposed amendments noted above as part Zone Code Amendment 2023-07.

FISCAL IMPACT:

Not applicable for this item.

RELATIONSHIP TO STRATEGIC PLAN:

This item is consistent with Strategic Plan Direction No. 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):

CC Ordinance No 1109 for Zone Code Amendment 2023-07

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ORDINANCE NO. 1109

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NORCO,
CALIFORNIA, APPROVING ZONE CODE AMENDMENT 2023-07: A CITY INITIATED AMENDMENT TO TITLE 18, CHAPTER 18.13 – AGRICULTURAL LOW DENSITY (A-1 ZONE) TO UPDATE THE PROVISIONS FOR LARGE

ANIMAL-KEEPING AND ROOSTERS, TO CLARIFY THE PUBLIC

NUISANCE AND VIOLATIONS FOR EXCESSIVE ROOSTERS AND ANIMAL

UNITS, AND TO CLARIFY GENERAL PROVISIONS/DEVELOPMENT
STANDARDS IN CHAPTER 18.13 (A-1 ZONE).

WHEREAS, the CITY OF NORCO initiated Zone Code Amendment 2023-07, a proposal to amend Chapter 18.13 of the Norco Municipal Code Title 18 (Zoning Code); and WHEREAS, the Zone Code Amendment was duly submitted to said City’s Planning Commission for decision at a public hearing for which proper notice was given; and WHEREAS, the Zone Code Amendment was scheduled for public hearing on December 13, 2023 on or about 7 p.m. in the Council Chambers at 2820 Clark Avenue, Norco, California 92860; and
WHEREAS, at the time set, the Planning Commission held a public hearing and received both oral and written testimony pertaining to the Zone Code Amendment; and WHEREAS, the Planning Commission adopted Resolution 2023-35, recommending approval of Zone Code Amendment 2023-07 to the City Council; and WHEREAS, the Zone 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 Zone Code Amendment was scheduled for public hearing on January 17, 2024 on or about 7 p.m. in the Council Chambers at 2820 Clark Avenue, Norco, California 92860; and
WHEREAS, at the time set, the City Council held a public hearing and received both oral and written testimony pertaining to the Zone Code Amendment; and WHEREAS, the City of Norco acting as the Lead Agency has determined that this Zone Code Amendment is exempt from review under the California Environmental Quality Act (CEQA).

NOW, THEREFORE, the City Council of the City of Norco does hereby make the following FINDINGS AND DETERMINATIONS:

I. FINDINGS.

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Ordinance No. 1109 for Zone Code Amendment 2023-07
February 7, 2024

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A. The proposed Zone Code Amendment is necessary as it updates animal-keeping provisions to protect and maintain property values, and provides clarification to the City’s development code for enhanced usability and precision.

B. The proposed Zone Code Amendment is necessary to ensure and maintain orderly development of land uses consistent with the objectives, policies, general land uses, programs, and actions of the City of Norco General Plan. None of the amendments conflict with current General Plan policies, objectives or programs of the General Plan.

C. The proposed Zone Code Amendment will not be detrimental to the public convenience, health, safety, or general welfare of the City, as it will contribute to increased general welfare by providing clear regulations pertaining to animalkeeping and development standards.

D. The proposed Zone Code Amendment is exempt from review under the California Environmental Quality Act (CEQA). Pursuant to CEQA Guidelines (California Code of Regulations, §§ 15000 et seq.) Section 15061(b)(3), as it can be seen with certainty that there is no possibility that the adoption and implementation of the subject amendments will have a significant effect on the environment.

II. DETERMINATION:

NOW THEREFORE, the City Council for the City of Norco, California, does hereby approve as follows:

SECTION 1:

Title 18 (Zoning) of the Norco Municipal Code, Chapter 18.13 (A-1 Agricultural Low Density), Sections 18.13.06 (D) (1), (4) and (10) and Section 18.13.18 is hereby amended to read as follows:

Section 18.13.06 (D)(1):

D. Agricultural Uses:

1. Farms devoted to the hatching, raising, butchering, or marketing on a commercial scale of chickens, turkeys, or other fowl or poultry and rabbits, fish, frogs, or other small animal farms of a similar nature; provided, however, that not more than 500 turkeys per acre, in addition to brooding stock, shall be kept, fed, or maintained on a parcel of less than five acres. No commercial poultry operation shall be established on a parcel containing less than nine acres or with a width of less than

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Ordinance No. 1109 for Zone Code Amendment 2023-07
February 7, 2024

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300 feet, and all poultry buildings and structures shall be set back a minimum of 25 feet from the rear and side lines of the parcel and 50 feet from any public road or highway. Unless otherwise noted below, the provision for fowl or poultry shall not include roosters. Roosters shall be regulated as noted below:
a. The maximum number of roosters permitted, for noncommercial animalkeeping, in relation to lot size shall be determined as follows:

Lot Size Maximum Roosters
10,000 but less than 19,999 sq. ft. 4
20,000 but less than 24,999 sq. ft. 16
25,000 but less than 29,999 sq. ft. 17*
30,000 but less than 34,999 sq. ft. 34*
35,000 but less than 39,999 sq. ft. 43*
40,000 or more 55*
*Conditional use permit required for keeping more than 16 roosters regardless of lot size.
b. When it can be determined by appearance or crowing that a bird is a stag, it shall be included in the count regardless of the age of the stag. c. All properties with more than 16 roosters shall be required to obtain a conditional use permit and shall be required to have roosters contained on the property at all times, with said roosters maintained a minimum of 50 feet from the nearest adjacent residence. Any operation consisting of 55 or more roosters shall be considered a commercial operation and in addition to requiring approval of a conditional use permit, shall have the same restrictions pertaining to a commercial poultry business noted in Section D.1 of this section.
d. It is unlawful and a public nuisance to keep or maintain more than 16 roosters on any property in the A-1 zone without the approval of a conditional use permit.

Section 18.13.06 (D)(4):

4. Adult animal units shall be determined as follows:

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February 7, 2024

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Animal Shall Equal
One Equine One Animal Unit
One Bovine One Animal Unit
One Swine One Animal Unit
Two Sheep One Animal Unit
Two Goats One Animal Unit
Two Miniature Horses One Animal Unit
Two Miniature Bovine One Animal Unit
One Camel One Animal Unit
One Llama One Animal Unit
Two Alpacas One Animal Unit
Two Emus One Animal Unit
One Ostrich One Animal Unit
i. Offspring of permitted adult animal units shall not be counted in determining the permitted number of adult animal units on a given lot, if such offspring do not exceed the following age limitation:

Equine, six months
Bovine, six months
Swine, 60 days
Sheep, 90 days
Goats, 90 days
Camel, eight months
Llama, six months
Alpaca, six months
Emu, Six months
ii. To facilitate enforcement of Section 18.13.06 (D)(4), offspring of nonpermitted adult animal units shall be counted as adult animal units, notwithstanding their age at any particular time.

Section 18.13.06 (D)(10):

10. No person, firm, corporation, or other entity shall maintain more than the maximum number of roosters and/or animal units permitted, or conditionally

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February 7, 2024

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permitted, by this Chapter. Each and every rooster and/or animal unit on a property that exceeds the maximum number of roosters and/or animal units permitted by this Chapter shall constitute a separate and independent violation of this Chapter.

Section 18.13.18:

18.13.18 Permitted Heights.

The maximum height of any building shall be two and one-half stories or 35 feet, whichever is less. The maximum height of an accessory building shall be per the regulations of Chapter 18.68 (Ord. 1019 Sec. 1, 2017; Ord. 924 Sec. 1, 2010).

SECTION 2. EFFECTIVE DATE: This Ordinance shall become effective 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 the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Ordinance, and each section, subsection, sentence, clause, sentences, clauses, or phrases here of 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 hereto and shall cause the same within 15 days of its passage to be posted at no less than five public places within the City of Norco.

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Ordinance No. 1109 for Zone Code Amendment 2023-07
February 7, 2024

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PASSED AND ADOPTED by the City Council of the City of Norco, California at a regular meeting held February 7, 2024.
__________________________
Kevin Bash, Mayor
City of Norco, California
ATTEST:
________________________
Dana Roa, CMC, City Clerk
City of Norco, California

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Ordinance No. 1109 for Zone Code Amendment 2023-07
February 7, 2024

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I, DANA ROA, CMC, City Clerk of the City of Norco, California, do hereby certify that the foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Norco, California, duly held on January 17, 2024 and thereafter at a regular meeting of said City Council duly held February 7, 2024, it was duly passed and adopted by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS THEREOF, I have hereunto set my hand and affixed the official seal of the City of Norco, California, on February 7, 2024.
________________________
Dana Roa, CMC, City Clerk
City of Norco, California

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City Council

STAFF REPORT
Date: January 17, 2024 Agenda Item:

6.C.

To: Honorable Mayor and City Council Members
From: Alma Robles, Community Development Director
Prepared By: Vince Acuna, Senior Planner
Department: Planning
SUBJECT:

Newcastle Skye Parkridge, LLC Industrial Project Development Agreement/Site Plan 2020-11, Modification No.1 (Newcastle Skye Parkridge, LLC): A request for approval of a development agreement for the industrial project approved under Site Plan 2020-11, consisting of six buildings that total 80,066 square feet at 1004 Parkridge Ave located within the Industrial District of the Gateway Specific Plan.

RECOMMENDATION:

Approve the Newcastle Skye Parkridge, LLC Industrial Project Development Agreement.

SUMMARY:

Site Plan 2020-11 was approved in 2021 for the development of a small warehouse/industrial complex consisting of six buildings at 1004 Parkridge Avenue. The approval was for the duration of two years, but the applicant is requesting approval of a Development Agreement (DA) with the City to extend the approval for an additional five years.

BACKGROUND:

PROJECT HISTORY: On April 14, 2021, the Planning Commission approved Site Plan 2020-11 to allow the development of an industrial project consisting of six buildings that total 80,066 square feet at 1004 Parkridge Avenue. This action also included a recommendation for approval to the City Council of a related parcel map. The parcel map has since been approved by the City Council and has been recorded, however building permits for construction of the buildings/site improvements (under Site Plan 2020-11) have not been issued (ref. Exhibit "A" - Location Map, Exhibit "B" - Approved Entitlement Plans and Exhibit "C" - Approved Resolution 2021-12).

The project was approved with the condition that the approval would become null and void unless building permits for all construction authorized by the approval have been

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issued within two years (expiration date being April 14, 2023 - two years from the approval date of April 14, 2021) and pursued diligently to completion. The condition also stated that Community Development/Planning Director may extend approvals for up to six months and therefore was extended to October 14, 2023. The applicant has been working diligently with staff (well before the expiration date) on the process and terms of a DA with the City up to the point of this subject meeting date.

The site plan approval was granted before the development standards for the Industrial District of the Gateway Specific Plan were updated in 2023. The applicant is requesting approval of a DA that will extend the existing approval/entitlement five years, and that will allow the development per the approved site plan.

DEVELOPMENT AGREEMENT SUMMARY: State law authorizes the City to enter into a DA with any person having a legal or equitable interest in real property for the development of the property. Development agreements are typically done concurrently with project entitlements, but nothing limits the ability of a city to enter into a DA after entitlements are approved. State law specifies the following topics that must or may be addressed in a development agreement:
“A development agreement shall specify the duration of the agreement, the permitted uses of the property, the density or intensity of use, the maximum height and size of proposed buildings, and provisions for reservation or dedication of land for public purposes. The development agreement may include conditions, terms, restrictions, and requirements for subsequent discretionary actions, provided that such conditions, terms, restrictions, and requirements for subsequent discretionary actions shall not prevent development of the land for the uses and to the density or intensity of development set forth in the agreement. The agreement may provide that construction shall be commenced within a specified time and that the project or any phase thereof be completed within a specified time. The agreement may also include terms and conditions relating to applicant financing of necessary public facilities and subsequent reimbursement over time (Government Code Section 65865.2)".

Unless a development agreement states otherwise, per Government Code Section 65866, the “rules, regulations, and official policies governing permitted uses of the land, governing density, and governing design, improvement, and construction standards and specifications” applicable to the project are those in effect at the time the development agreement is approved.

SUMMARY OF MAJOR ITEMS RECOMMENDED IN THE DEVELOPMENT
AGREEMENT (ref. the attached Draft Development Agreement):

Duration of the DA: The duration of the DA is proposed for five (5) years. Within these five years, a building permit must be issued for the project. If a building permit is not secured, the entitlement and DA expires, with no terms for an extension.

Permitted Uses: Permitted uses would be pursuant to the development plan approvals and (per Exhibit B), and per the existing regulations (as updated in 2023) if there are changes.

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Density/Intensity of Use, the Maximum Height and Size of Proposed Buildings: The permitted maximum, density, building height and size of the buildings shall be per the approved entitlement plans noted in Exhibit B, and per the existing regulations (as updated in 2023) if there are changes.

Provisions for Reservation or Dedication of Land for Public Purposes. This is limited to any required street and public improvements as required in approved Resolution 2021-

12. Conditions, Terms, Restrictions, and Requirements for Subsequent Discretionary Actions: Building permits will need to be issued within the duration of the DA which is five years, but can be completed after the five years. The developer is responsible for the payment of impact fees which are in effect at the time building permits are issued.

There is nothing in this DA that prohibits the City from increasing its impact fees during the term of the agreement.

Lastly, in consideration for extending the life of the entitlements that benefit the developer and to defray potential impacts from the development, the developer is proposing to make a public benefit contribution in the amount of $250,000 to the City to be used by the City for any legal public purpose. This amount will be made in yearly payments within five years, regardless of whether or not the project is built.

PLANNNING COMMISSION INPUT: The Development Agreement was reviewed by the Planning Commission on December 13, 2023. Chair Shyu proposed the idea of shortening the initial term of the Development Agreement to three years, with an option to extend for two years. However, citing concerns regarding the unpredictability of construction costs and interest rates in the foreseeable future, the Planning Commission voted 4-1 (Shyu) to recommend that the City Council approve a Development Agreement with a five-year duration, which is what is currently presented.

Subsequent to the Planning Commission meeting, the applicant requested that the five year extension start from October 14, 2023 (the six month extension dated noted above) and not April 14, 2023 (the original entitlement approval date noted on the original Draft DA before the Planning Commission). Approval of the start date is within the purview of the City Council and staff is recommending approval of the request. The attached draft DA reflects the October 14, 2023 extension starting date.

CONCLUSION: Staff is recommending that the City Council approve the proposed Development Agreement.

FISCAL IMPACT:
$250,000 will go to the General Fund within the term of five years to be used by the City for any legal public purpose.

RELATIONSHIP TO STRATEGIC PLAN:

This item is consistent with Strategic Plan Direction No. 3 - Economic Development and Financial Stability: Assure financial stability by expanding development efforts, diversifying revenue sources and continuing prudent financial management.

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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):

DA Ordinance No 1110 Development Agreement Site Plan 2020-11, Modification No.1 (1)
DRAFT Development Agreement, Newcastle, CC 1-17-24
Exhibit A, Location Map, Site Plan 2020-11
Exhibit B, for Site Plan 2020-11 (Newcastle)
Exhibit C, Resolution 2021-12

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ORDINANCE NO. 1110

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NORCO,

CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT

BETWEEN THE CITY OF NORCO AND NEWCASTLE SKYE

PARKRIDGE, LLC, FOR THE INDUSTRIAL PROJECT APPROVED
UNDER SITE PLAN 2020-11, CONSISTING OF SIX BUILDINGS THAT TOTAL 80,066 SQUARE FEET AT 1004 PARKRIDGE AVE LOCATED

WITHIN THE INDUSTRIAL DISTRICT OF THE GATEWAY SPECIFIC
PLAN (SITE PLAN 2020-11, MODIFICATION NO.1).

WHEREAS, the City of Norco and Newcastle Skye Parkridge, LLC are proposing to enter into a Development Agreement under the provisions of Chapter 4.02 of the Norco Municipal Code; and
WHEREAS, the Development Agreement was duly submitted to the City of Norco Planning Commission for review at a public hearing for which proper notice was given; and
WHEREAS, the Development Agreement was scheduled for public hearing on December 13, 2023 on or about 7 p.m. in the Council Chambers at 2820 Clark Avenue, Norco, California 92860; and
WHEREAS, at the time set, the Planning Commission held a public hearing and received both oral and written testimony pertaining to the Development Amendment; and
WHEREAS, the City of Norco Planning Commission adopted Resolution 2023- 36, recommending approval of the Development Agreement to the City Council; and WHEREAS, the Development Agreement was duly submitted to the City of Norco City Council for review and approval at a public hearing for which proper notice was given; and
WHEREAS, the Development Agreement was scheduled for public hearing on January 17, 2024 on or about 7 p.m. in the Council Chambers at 2820 Clark Avenue, Norco, California, 92860; and
WHEREAS, at the time set, the City Council held a public hearing and received both oral and written testimony pertaining to the Development Agreement; and WHEREAS, the City of Norco, acting as the Lead Agency, has determined that this Development Agreement is exempt from environmental review under the California Environmental Quality Act (CEQA).

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January 17, 2024
NOW, THEREFORE, the City Council of the City of Norco does hereby make the following FINDINGS and DETERMINATION:

I. FINDINGS:

A. The proposed Development Agreement is consistent with the objectives, policies, general land use and programs specified in the General Plan; the Zoning Code, and the Gateway Specific Plan.

B. The proposed Development Agreement is compatible with the uses that are authorized by the approved entitlements and the Gateway Specific Plan.

C. The proposed Development Agreement is in conformity with the public necessity, public convenience, general welfare, and good land use practices for the City.

D. The implementation of the proposed Development Agreement will be beneficial to the health, safety, and general welfare consistent with the policy of the City in respect to development agreements as provided in the Norco Municipal Code.

E. The proposed Development Agreement will not adversely affect orderly development of the property in the City.

F. The proposed Development Agreement will have a positive fiscal impact on the City.

G. The proposed Development Agreement 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 it will not result in a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.

II. DETERMINATION:

NOW, THEREFORE, in light of the evidence and testimony presented at the hearing on this application, and in conformity with the findings set forth herein before and with the requirements necessary for the approval of the Development Agreement, the City Council for the City of Norco does hereby approve the Newcastle Skye Parkridge, LLC Development Agreement (Site Plan 2020-11, Modification No. 1). #

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Ordinance No. 1110 - Newcastle Skye Parkridge, LLC Development Agreement

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January 17, 2024
PASSED AND ADOPTED by the City Council of the City of Norco, California, at a regular meeting held on February 7, 2024.
________________________
Kevin Bash, Mayor
City of Norco, California
ATTEST:
_________________________
Dana Roa, CMC, City Clerk
City of Norco, California

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Ordinance No. 1110 - Newcastle Skye Parkridge, LLC Development Agreement

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January 17, 2024
I, DANA ROA, CMC, City Clerk of the City of Norco, California, do hereby certify that the foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Norco, California, duly held on January 17, 2024 and thereafter at a regular meeting of said City Council duly held February 7, 2024, it was duly passed and adopted 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, on February 7, 2024. __________________________
Dana Roa, CMC, City Clerk
City of Norco, California

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684385.1 1

DEVELOPMENT AGREEMENT
THIS DEVELOPMENT AGREEMENT (the “Agreement”) is
entered into as of the day of , 2023 (“Agreement
Date”), by and between NEWCASTLE SKY PARKRIDGE, LLC,
(“OWNER”) and the CITY OF NORCO, a California Charter City (hereinafter “CITY”), (collectively “Parties”).

INTENT OF THE PARTIES
I. This Agreement is predicated upon the following facts:

A. This “Intent of the Parties” section refers to and utilizes certain capitalized terms which are defined in this Agreement. The Parties intend to refer to those definitions in conjunction with the use thereof in these Recitals.

B. The Development Agreement Legislation authorizes the CITY to enter into binding development agreements with persons having legal or equitable interests in real property for the development of such property in order to, among other matters: ensure high quality development in accordance with comprehensive plans; provide certainty in the approval of development projects so as to avoid the waste of resources and the escalation in the cost of housing and other development to the consumer; provide assurance to the applicants for development projects that they may proceed with their projects in accordance with existing policies, rules and regulations and subject to conditions of approval, in order to strengthen the public planning process and encourage private participation in comprehensive planning and reduce the private and public economic costs of development; and protect against initiatives, moratorium (processing or development) and other actions inconsistent with the Project anticipated by this Agreement.

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684385.1 2
C. OWNER is the owner of certain real property within the City of Norco, the County of Riverside, State of California (“Property”), as more particularly described in Attachment A. OWNER desires to develop the Property in accordance with the provisions of this Agreement, the Existing Regulations and those regulations of other agencies exercising jurisdiction upon the project. The Scope of Development of the Property as contemplated by this Agreement is described in Attachment B – Approved Entitlement Plans and Exhibit C -Approved Resolution 2021-21 .

D. OWNER has sought, negotiated, and received consideration for, and the CITY has agreed to, this Agreement in order to create a beneficial project and a physical environment that will conform to and complement the goals of the CITY, create a development project sensitive to human needs and values, facilitate efficient traffic circulation, and develop the Property consistent with City and State policy. The project was determined to be Exempt from CEQA, per Section 15332, Class 32 - In-fill Development
.

E. The following actions were taken with respect to this Agreement and the Project:

1. On , following a duly noticed and
conducted public hearing, the City Planning Commission recommended that the City Council approve this Agreement, by adoption of its Resolution No. and making the findings of fact thereto;

2. On , after a duly noticed public hearing,
the City Council introduced Ordinance No. approving and authorizing the execution of this Agreement and on

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684385.1 3
, the City Council adopted the Ordinance, a copy of which is on file with the City Clerk of the CITY, and the findings and conditions pertaining thereto.

F. DELETED.

G. In consideration of the benefits that will inure to the CITY in conjunction with the implementation of the Project and in order to strengthen the public financing and planning process and reduce the economic costs of development, by this Agreement, the CITY intends to give and by this Agreement gives, OWNER assurance that OWNER can proceed with the Development of the Project for the Term of this Agreement pursuant to the terms and conditions of this Agreement and in accordance with the Development Plan Approval(s) and the Existing Regulations. In reliance on the CITY’s covenants in this Agreement concerning the Development of the Property, and the rights afforded OWNER hereunder, OWNER has agreed to provide those benefits described in Section 4.1.2 Project Benefits.

H. Pursuant to Section 65867.5 of the Development Agreement Legislation, the City Council has found and determined that: (i) this Agreement and the Development Plan Approval(s) implement the goals and policies of the CITY’s General Plan and the Specific Plan, provide balanced and diversified land uses and impose appropriate standards and requirements with respect to land development and usage in order to maintain the overall quality of life and the environment within the CITY, (ii) this Agreement and the Project are in the best interests of and not detrimental to the public health, safety and general welfare of the CITY and its residents; (iii) adopting this Agreement is consistent with the CITY’s General Plan and constitutes a present exercise of the CITY’s police power; and (iv) this Agreement is being entered into

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684385.1 4
pursuant to and in compliance with the requirements of Section 65867 of the Development Agreement Legislation.

I. The CITY and OWNER agree that it may be beneficial to enter into operating memoranda, additional agreements or to modify this Agreement with respect to the implementation of the separate components of the Project when more information concerning the details of each component is available, and that this Agreement should expressly allow for such contemplated operating memoranda, additional agreements or modifications to this Agreement, including transfers to third parties, whether by assignment or delegation.

AGREEMENT
NOW, THEREFORE, pursuant to the authority contained in the Development Agreement Legislation, pursuant to Article Xl, Section 2 of the California Constitution, and in consideration of the foregoing facts which define the intent of the Parties, all of which are expressly incorporated into this Agreement, and the mutual covenants set forth in this Agreement, the Parties agree as follows:

1. Definitions.

Unless the context otherwise requires, the terms defined in this Section 1 shall, for a I purposes of this Agreement, or any supplemental agreement, and any certificate, opinion or other document herein mentioned, have the meanings herein specified. All references herein to “Articles,” “Sections” and other subdivisions are to the corresponding Articles, Sections or subdivisions of this Agreement, and the word “herein,” “hereof,” “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or subdivision hereof.

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684385.1 5
“Agreement Date” means , 20__, the date of the
second introduction and reading of the Authorizing Ordinance by the City Council.
“Authorizing Ordinance” means Ordinance No. ________ of the CITY approving this Agreement.
“City Council” means the duly elected and constituted city council of the CITY.
“Develop” or “Development” or “Developing” means the
improvement of the Property for purposes consistent with the Development Plan, including, without limitation: subdividing, grading, the construction of infrastructure and public facilities related to the OffSite Improvements, the construction of structures and buildings and the installation of landscaping.
“Development Agreement Legislation” means Sections 65864 through 65869.5 01 the California Government Code as it exists on the Agreement Date.
“Development Plan” means the plan for Developing the Property contained in this Agreement, the City of Norco General Plan, Site Plan 2020-11 approval via Resolution 2021-12, and those Future Development Approvals, approved in conformance with this Agreement.

Each of the documents enumerated in the foregoing, except for the Future Development Approvals, is expressly incorporated by reference as if fully set forth herein and are necessary to interpret and apply this Agreement. Each of the documents are maintained in the official records of the City and shall be utilized whenever required to interpret or apply this Agreement.

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684385.1 6
“Development Plan Approval(s)” means the approvals of the City Council and other governmental agencies.
“Development Transferee” means a person or entity that
expressly assumes obligations under this Agreement pursuant to Section hereof.
“Effective Date” means the date the Authorizing Ordinance becomes effective.
“End User” means a buyer, assignee, or transferee of one or more individual subdivided unit(s)/lot(s) of the Project obtaining such unit(s) or lot(s) for the purpose of occupying or using such lots or units for its own purposes and not for use in the trade or business of further development or further subdivision. The term “End User” includes, but is not limited to, any homeowners’ association, merchants’ association, or like entity formed with respect to the Property which owns some interest in the Property, homeowners, tenants, commercial building owners, and owners of multi-family units.
“Existing Regulations” means, except as otherwise provided herein, those ordinances, rules, regulations and official policies of the CITY other than the Development Plan Approval(s) in effect on the Agreement Date, which (i) are not inconsistent with the Development Plan Approval(s) and this Agreement; and (ii) govern the permitted uses of the Property, building heights, the size of structures, the density and intensity of use of the Property, the timing and conditions to Development, the procedures for, and types of, permits required for the Development, the provisions for reservation or dedication of land for public purposes and the design, improvement and construction standards and specifications applicable to the Property and the infrastructure required for the Development. “Existing Regulations” does not include

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fees, exactions, and assessments, which may be imposed at later existing rates.
“Future Development Approvals” means those entitlements and approvals that are requested by the CITY or OWNER in order to authorize the Development to occur upon the Property in a manner consistent with the Development Plan Approval(s).
“Merchant Builder” means a buyer, assignee, or transferee (other than the OWNER or any End User) of one or more individual lots or tracts of the Project, acquiring such lots or tracts for the purpose of engaging in the business of developing, improving, or using such lots or tracts for development.
“Planning Commission” means the duly appointed and
constituted planning commission of the CITY.
“Public Financing” means the issuance of bonds and related provision of funds for acquisition of public facilities in accordance with the terms and conditions of the Public Facilities Finance Plan. “Project” means the development of the Property as set forth in the Development Plan Approval(s).
“Term” means the time frames set forth in Section 2.3.

2. General Provisions.

2.1 Binding Covenants. Except as otherwise provided for in this Agreement, the provisions of this Agreement to the extent permitted by law, constitute covenants which shall run with the Property for the benefit thereof, and the benefits and burdens of this Agreement shall

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bind and inure to the benefit of the Parties, all successors in interest to the Parties hereto to the extent provided for in this Agreement.

2.2 Interest of OWNER. OWNER represents that OWNER
owns fee simple interest in the Property.

2.3 Term. This Agreement shall become effective on the
Effective Date. Unless terminated pursuant to Section 2.4 this Agreement shall terminate at 11:59 p.m. on the 5th anniversary from the entitlement Expiration date of October 14, 2023.

The termination shall occur subject to specific extensions, force majeure, revisions, and termination provisions of this Agreement.

2.4 Termination. This Agreement shall be deemed terminated and of no further Effect, except for those covenants and agreements that expressly survive termination, upon the occurrence of any of the following events without further action by the CITY, Planning Commission, or City Council:

2.4.1 If termination occurs pursuant to any specific provision of this Agreement, including, without limitation, a termination in the event of default;

2.4.2 Completion of the total build-out of the Development pursuant to the terms of this Agreement and the CITY’s issuance of all required occupancy permits and acceptance of all dedications and improvements required to complete Development; or

2.4.3 Entry after all appeals have been exhausted of a final judgment or issuance of a final order directed to the CITY as a result of any lawsuit filed against the CITY to set aside, withdraw, or abrogate the approval of the City Council of this Agreement.

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2.4.4 The expiration of the Term as set forth in Section 2.3.

To provide notice to all, and not as a condition of the effectiveness of a termination of this Agreement, the Parties agree to execute and record terminations of or releases of this Agreement.

2.5Transfers and Assignments. Any assignment or transfer of the Property together with the rights and obligations under this Agreement requires the prior written consent of the CITY, which consent shall not be unreasonably withheld or delayed.

2.5.1 Right to Assign. Subject to the City's written
consent, which shall not be unreasonable withheld, delayed or conditioned, Owner shall have the right to sell, transfer, or assign the Property in whole or in part (provided that no such partial transfer shall violate the Subdivision Map Act) to any person, partnership, joint venture, affiliate, firm, or corporation at any time; provided, however, that any such sale, transfer or assignment shall include the assignment and assumption of the rights, duties and obligations arising under or from this Agreement and be made in strict compliance with the following conditions precedent:
(a) No sale, transfer or assignment of any right or
interest under this Agreement shall be made unless made together with the sale, transfer or assignment of all or a part of the Property. (b) Concurrent with any such sale, transfer, or
assignment, or within fifteen (15) business days thereafter, Owner shall notify City, in writing, of such sale, transfer, or assignment and shall provide City with an executed agreement, in a form reasonably acceptable to City, executed by the purchaser, transferee, or assignee and providing therein that the purchaser, transferee, or assignee expressly and unconditionally assumes all the duties and obligations of Owner under this Agreement.

Any sale, transfer or assignment not made in compliance with the foregoing conditions shall constitute a default by Owner under this Agreement. Notwithstanding the failure of any purchaser, transferee or

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assignee to execute this agreement required by Paragraph (b) of this Subsection 2.5.1, the burdens of this Agreement shall be binding upon such purchaser, transferee or assignee, but the benefits of this Agreement shall not inure to such purchaser, transferee or assignee until and unless such agreement is executed. Notwithstanding the foregoing, Owner shall have the right to transfer its interest in this Agreement to an “Owner Affiliate”. Notwithstanding the foregoing, Owner shall have the right to transfer its interest in this Agreement to an “Owner Affiliate.” An “Owner Affiliate” is an entity in which the original owner owns a majority financial or voting interest. Owner shall provide written notification to City concurrently with the completion of such a transfer.

2.5.2 Release of Transferring Owner. Notwithstanding
any sale, transfer or assignment, Owner shall continue to be obligated under this Agreement as to that portion of the Property sold, transferred or assigned, unless Owner is given a release in writing by City, which release shall be provided by City upon the full satisfaction by Owner of all of the following conditions:
(a) Owner no longer has a legal or equitable interest
in all or any part of the Property sold.
(b) Owner is not then in default under this
Agreement.
(c) Owner has provided City with the notice and
executed agreement required under this Section 2.5. above. (d) The purchaser, transferee or assignee provides
City with security equivalent to any security previously provided by Owner to secure performance of its obligations hereunder.

2.5.3 Subsequent Assignment. Any subsequent sale,
transfer or assignment after an initial sale, transfer or assignment shall be made only in accordance with and subject to the terms and conditions of this Section.

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3. Development Provisions.

3.1 Vesting.

3.1.1 Project. CITY covenants that OWNER has, and
OWNER shall have, the right to implement the Development pursuant to the Development Plan Approvals and the Existing Regulations, including, without limitation, specific uses, intensities, building heights, building sizes, lot sizes, infrastructure standards and specifications, densities and types of development provided for in the Site Plan, and the CITY shall have the right to control the Development in accordance with the Existing Regulations and the Development Plan Approval(s) (“vested right”). Except as otherwise expressly specified in this Agreement, the Development Plan Approval(s) shall control the design and development, and review and approval of all Future Development Approvals and all Off-Site Improvements and appurtenances in connection therewith. Except to the extent it has been amended, canceled, modified or suspended in accordance with the terms of this Agreement, this Agreement shall be enforceable by OWNER or its assignees notwithstanding any change in any Existing Regulation.

3.1.2 Limits on Development. The California Supreme
Court held in Pardee Construction Company v. City of Camarillo, 37 Cal.3d 465 (1984), that the failure of the Parties to address certain limits on a CITY’s ability to condition, restrict or regulate a development allowed a later adopted initiative to restrict the development. This Agreement cures that deficiency by expressly addressing the timing for the Development, the vested rights afforded by this Agreement and the scope of the CITY’s Reserved Authority. Except as expressly set forth in the Development Plan Approval(s), regardless of any future enactment, by initiative, or otherwise, OWNER shall have the discretion to develop the Development as provided for in this Agreement. No future amendment of any CITY law, or future adoption of any CITY law or

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other action, that purports to limit the scope, rate or timing of Development on the Property in a manner inconsistent with the Development Plan Approval(s), whether adopted or imposed by the City Council or through the initiative or referendum process, shall apply to the Property.

3.1.3 Litigation. The CITY agrees to reasonably cooperate with OWNER in all reasonable manners in order to keep this Agreement in full force and effect. If any legal action is instituted by a third party or other governmental entity or official challenging the Development Plan Approval(s) or Future Development Approvals, the Parties hereby agree to cooperate in jointly defending such action. Notwithstanding the foregoing OWNER shall be responsible for all of CITY’s costs, direct or indirect, in nature, including, but not limited to, attorneys’ fees, costs, expert witnesses document production, staff time, and the like. OWNER shall reimburse CITY its costs within thirty (30) calendar days of receipt of any invoice by OWNER.

3.2 Reserved Authority.

3.2.1 Uniform Codes. This Agreement and especially
section 3.1.2, shall not prevent the CITY from applying new uniform construction standards adopted by the State of California as State Codes, such as the Uniform Building Code, National Electrical Code, Uniform Mechanical Code or Uniform Fire Code, as modified by CITY, to the Development, provided those same standards are applied to all other development within the CITY.

3.2.2 State and Federal Laws and Regulations. Subject to compliance with the requirements of this Section 3.2.2, the Property may be subject to subsequently enacted state or federal laws or regulations which preempt local regulations, or mandate the adoption of local regulations, and are in conflict with the Development Plan Approval(s).

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Upon discovery of a subsequently enacted federal or state law meeting the requirements of this Section, CITY or OWNER shall provide the other Parties with written notice of the state or federal law or regulation, provide a copy of the law or regulation, and a written statement of conflicts with the provisions of this Agreement. Promptly thereafter CITY and OWNER shall meet and confer in good faith in a reasonable attempt to determine whether a modification or suspension of this Agreement, in whole or in part, is necessary to comply with such federal or state law or regulation. In such negotiations, CITY and OWNER agree to preserve the terms of this Agreement and the rights of OWNER as derived from this Agreement to the maximum feasible extent while resolving the conflict. CITY agrees to cooperate with OWNER in resolving the conflict in a manner which minimizes any financial impact of the conflict upon OWNER without materially increasing the financial obligations of CITY (from staff, consultants, or any reason) under this Agreement. CITY also agrees to process in a prompt manner OWNER’s proposed changes to the Project as may be necessary to comply with such Federal or State law; provided, however, that the approval of such changes by CITY shall be subject to the discretion of CITY, consistent with this Agreement.

3.2.3 Regulation for Health and Safety. Nothing in this Agreement shall be construed to be in derogation of CITY’s police power to protect the public health and safety from a sudden, unexpected occurrence, involving a clear and imminent danger, demanding immediate and interim action to prevent or mitigate loss of, or damage to, life, health, property, or essential public services involving the Property or the immediate community (“Exigent Event”). Upon discovery of an Exigent Event, CITY may suspend this Agreement for a period reasonably necessary to analyze, evaluate and develop a response to the Exigent Event. Immediately thereafter, the suspension shall end and CITY shall provide the OWNER with written notice of the existence of the Exigent Event, a detailed explanation of the CITY’s proposed

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action, and a written statement of conflicts with the provisions of this Agreement. Promptly thereafter CITY and OWNER shall meet and confer in good faith in a reasonable attempt to determine whether a modification or suspension of this Agreement, in whole or in part, is necessary to comply with the Exigent Event. In such negotiations, CITY and OWNER agree to attempt to reasonably preserve the terms of this Agreement and the rights of OWNER as derived from this Agreement to the maximum feasible extent while resolving the conflict. CITY agrees to cooperate with OWNER in resolving the conflict in a manner which minimizes any financial impact of the conflict upon OWNER without materially increasing the financial obligations of CITY under this Agreement. CITY also agrees to process in an expedited manner OWNER’s proposed changes to the Project as may be necessary to comply with the Exigent Event; provided, however, that the approval of such changes by CITY shall be subject to the discretion of CITY, consistent with this Agreement.

3.2.4 Fees, exactions, and assessments shall be calculated at the current rate existing at the time the fees, exactions, and assessments are imposed.

3.3 Further Assurances to OWNER Regarding Exercise of
Reserved Authority.

3.3.1 Assurances to OWNER. The Parties further
acknowledge that the public benefits to be provided by OWNER to the CITY pursuant to this Agreement are in consideration for and reliance upon assurances that the Property can be developed in accordance with the Development Plan Approval(s) and the Existing Regulations.

Accordingly, while recognizing that the Development of the Property may be affected by the exercise of the authority and rights reserved and excepted as provided in Sections 3.1.2 (‘Vesting”) and 3.2 (“Reserved Authority”), OWNER is concerned that normally the judiciary extends

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to local agencies significant deference in the adoption of rules, regulations and policies which might otherwise permit the CITY, in violation of the Reserved Authority, to attempt to apply rules, regulations and policies that are inconsistent with the Development Plan Approval(s). Accordingly, OWNER desires assurances that the CITY shall not, and the CITY agrees that it shall not, further restrict or limit the development of the Property in violation of this Agreement except in strict accordance with the Reserved Authority, which exercising of the Reserved Authority as defined herein shall not be considered to be a violation of this Agreement. CITY agrees that CITY will issue grading, building and occupancy permits if the Development contemplated in the requested permit substantially conforms to the Development Plan Approval(s), including all relevant conditions of approval, and the Existing Regulations.

3.3.2 Judicial Review. Based on the foregoing, if OWNER judicially (including by way of a reference proceeding) challenges the application of a future rule, regulation or policy as being in violation of this Agreement and as not being applied in accordance with the Reserved Authority, OWNER shall bear the burden of alleging that such rule, regulation or policy is inconsistent with the Existing Regulations and the Development Plan Approval(s) and the CITY shall thereafter bear the burden of proof in establishing by a preponderance of the evidence that such regulation was adopted pursuant to and in accordance with the Reserved Authority and was not applied by the CITY in violation of this Agreement.

3.4 Consistent and Inconsistent Enactments.

3.4.1 Assurances to OWNER. The Parties further
acknowledge that the public benefits to be provided by OWNER to the CITY pursuant to this Agreement are in consideration for and reliance upon assurances that the Property can be developed in accordance with

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the Development Plan Approval(s) and the Existing Regulations. CITY agrees that CITY will issue grading, building and occupancy permits if the Development contemplated in the requested permit substantially conforms to the Developing Plan Approval(s), including all relevant conditions of approval, and the Existing Regulations.

3.4.2 Consistency Between This Agreement, the
Development Plan Approval(s) and Existing Regulations. To the extent a conflict exists or develops between the Existing Regulations and the Development Plan Approval(s), the Development Plan Approval(s) shall be controlling. To the extent a conflict exists or develops between the combination of this Agreement and the Existing Regulations and any other Development Plan Approval(s), this Agreement shall be controlling.

3.5 Amendment of Development Agreement.

3.5.1 Initiation of Amendment. Either CITY or OWNER
may propose an amendment to this Agreement.

3.5.2 Changes Requiring an Amendment. Unless otherwise
required by law, an amendment to the Development Plan Approval(s) shall not require an amendment of this Agreement unless the amendment:

3.5.2.1 Materially alters the permitted uses of the
Property as a whole in a manner inconsistent with the procedures established in the Specific Plan;

3.5.2.2 Increases the density or intensity of use of
the Property as a whole in a manner inconsistent with the procedures established in the Specific Plan; or

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3.5.2.3 Increases the maximum height and size of
permitted buildings.

3.5.3 Consent. Any amendment to this Agreement shall
require the written consent of both the CITY and the OWNER. No amendment to all or any provision of this Agreement shall be effective unless set forth in writing, signed by duly authorized representatives of the CITY and OWNER. An amendment of this Agreement does not require the consent of an End User, Merchant Builder or Development Transferee.

3.5.1 Operating Memoranda. The Parties acknowledge that practical and technical refinements and further development of the Project may demonstrate that changes are appropriate with respect to the details and performance of the Parties under this Agreement. The Parties desire to retain a certain degree of flexibility with respect to the details of the Development Plan and with respect to those items covered in general terms under this Agreement. If and when the City and an Owner or Owners mutually find that changes, adjustments, or clarifications are appropriate to further the intended purposes of this Agreement, and such are not materially inconsistent with the Development Plan Approval(s), they may, unless otherwise required by law, effectuate such changes, adjustments, or clarifications without amendment to this Agreement through one or more operating memoranda mutually approved by the City Manager, or designee, on behalf of the CITY and by any corporate officer or other person designated for such purpose in a writing signed by a corporate officer on behalf of that respective OWNER, which, after execution, shall be attached hereto as addenda and become a part hereof.

Unless otherwise required by law or by the Development Plan Approval(s), no such changes, adjustments, or clarifications shall require prior notice or hearing, public or otherwise. Nothing herein shall authorize the delegation of authority to the City Manager, or designee, contrary to California or Federal Law.

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4. Obligations of the Parties.

4.1 Benefits to CITY. The direct and indirect benefits the CITY (including, without limitation the existing and future residents of the CITY who are not deemed third party beneficiaries to this Agreement) will receive from the approval of the Development Plan Approval(s) generally include, but are not limited to, the items identified below.

Nothing in the Development Plan Approval(s) or otherwise obligate OWNERS to construct the Development or any part thereof. OWNER further reserves the right to waive, in whole or in part, the vested rights afforded by the Development Plan Approval(s), and pursue entitlements, permits or approvals other than those provided for in the Development Plan Approval(s).

4.1.1 Growth Management. The City agrees that the Project conforms to the CITY’s policy to require development provide beneficial and managed growth through the use of, among other things, comprehensive planning and design, project-wide continuity of landscaping and architectural design, design standards and layout concepts and amenities.

4.1.2 Project Benefits. In addition to the above benefits, the OWNER will pay CITY a community benefit fee of $250,000.00. The community benefit fee shall be paid by OWNER to CITY in installments of the following amounts on or before the following dates:

January 1, 2024, or 10 days following the approval of this agreement by the City Council (whichever is first),
payment of $35,000;
January 1, 2025 payment of $40,000;
January 1, 2026 payment of $45,000;
January 1, 2027 payment of $50,000;
January 1, 2028 payment of $55,000.

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4.2 Development Fees. OWNER shall pay all Development Fees for the Project.

5. Indemnification. Except to the extent of the active negligence or willful misconduct of the Indemnified Parties (as defined below), OWNER agrees to defend, indemnify, and hold harmless the CITY and its agents, officers, contractors, attorney, and employees (the “Indemnified Parties”) from and against any claims or proceedings against the Indemnified Parties concerning this Agreement, including, but not limited to, claims or proceedings to set aside, void or annul the approval of this Agreement.

6. Relationship of Parties. OWNER is not the agent or employee of the CITY. The CITY and OWNER hereby renounce the existence of any form of joint venture or partnership between them, and agree that nothing contained in this Agreement or in any document executed in connection with the Project shall be construed as making the CITY arid OWNER joint ventures or partners.

7. Periodic Review of Compliance with Agreement.

7.1 Periodic Review. The CITY and OWNER shall review this Agreement once every 12-month period from the Effective Date until the Agreement terminates. The CITY shall notify OWNER in writing of the date for review at least thirty (30) days prior thereto.

7.2 Good Faith Compliance. During each periodic review, OWNER shall be required to demonstrate good faith compliance with all material terms of this Agreement. Generalized evidence or statements of compliance shall be accepted in the absence of any evidence that such evidence is untrue.

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7.3 Failure to Conduct Annual Review. The failure of the CITY to conduct the annual review shall not constitute, or be asserted by OWNER or CITY as a breach of this Agreement.

7.4 Initiation of Review by City Council. In addition to the annual review, the City Council may at any time initiate a review of this Agreement by giving written notice to OWNER. The Notice must describe in detail the specific issues which caused the CITY to question OWNER’S good faith compliance and the evidence the CITY believes is necessary for the review. Within thirty (30) days following receipt of such notice, OWNER shall submit evidence to the CITY Council of OWNER’s good faith compliance with this Agreement and such review and determination shall proceed in the same manner as provided for the annual review.

7.5 Administration of Agreement. Any final decision by the CITY staff concerning the interpretation and administration of this Agreement and Development of the Property in accordance herewith may be appealed by OWNER first to the Planning Commission and thereafter to the City Council, provided that any such appeal shall be filed with the City Clerk within thirty (30) days after OWNER receives written notice that the staff decision is final all as pursuant to routine planning appeal procedures. The City Council shall render, at a noticed public hearing, its decision to affirm, reverse or modify the staff decision within thirty (30) days after the appeal was filed.

8. Events of Default: Remedies and Termination.

8.1 Defaults by OWNER. If, after following the procedures established in Section ____ hereof, the CITY determines on the basis of a preponderance of the evidence that OWNER or a Development Transferee has not complied in good faith with the material terms and conditions of this Agreement, the CITY shall, by written notice to

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OWNER, and the applicable Development Transferee, specify the manner in which the allegedly defaulting party has failed to so comply and state the steps the allegedly defaulting party must take to bring itself into compliance. If, within thirty (30) days after the effective date of notice from the CITY specifying the manner in which the allegedly defaulting party has failed to so comply, the allegedly defaulting party does not commence all steps reasonably necessary to bring itself into compliance and thereafter diligently pursue such steps to completion, then the allegedly defaulting party shall be deemed to be in default under the terms of this Agreement and the CITY may terminate this Agreement with respect solely to the allegedly defaulting party’s property pursuant to Government Code Section 65865.1 or may seek specific performance.

8.2 Defaults by CITY. If OWNER determines on the basis of a preponderance of the evidence that the CITY has not complied in good faith with the terms and conditions of this Agreement, OWNER shall, by written notice to the CITY, specify the manner in which the CITY has failed to so comply and state the steps the CITY must take to bring itself into compliance. If, within sixty (60) days after the effective date of notice from OWNER specifying the manner in which the CITY has failed to so comply, the CITY does not commence all steps reasonably necessary to bring itself into compliance as required and thereafter diligently pursue such steps to completion, then the CITY shall be deemed to be in default under the terms of this Agreement and OWNER may terminate this Agreement and, in addition, may pursue any other remedy available at law or equity, including specific performance.

9. Waivers and Delays.

9.1 No Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other

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party, and failure by a party to exercise its rights upon a default by the other party hereto, shall not constitute a waiver of such party’s right to demand strict compliance by such other party in the future.

9.2 Third Parties. Non-performance shall not be excused because of a failure of a third person.

9.3 Force Majeure. A party shall not be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by floods, earthquakes, other Acts of God, fires, wars, riots or similar hostilities, strikes and other labor difficulties beyond that party’s control, action or inaction by the CITY, other governmental bodies or public utilities other than those related to the normal and customary processing of modifications to the Development Plan Approval(s), judicial decisions, litigation regarding the Development Plan Approval(s) or Future Development Approvals or other similar events. To the extent applicable to the Project and Property, government regulations (including, without limitation, local, state and federal environmental and natural resource regulations), voter initiative or referenda or moratoria (including, without limitation, any “development moratorium” as that term is applied in Government Code Section 66452.6) constitute force majeure events.

9.4 Extensions. The Term of this Agreement and the time for performance by a party of any of its obligations hereunder or pursuant to the other Development Plan Approval(s) shall be extended by the actual period of time that any of the events described in Section 9.3 exist and/or prevent performance of such obligations.

9.5 Notice of Delay. OWNER or CITY shall give notice to the other party of any delay which OWNER or CITY anticipates or believes is caused by a Force Majure event. In no event, however, shall notice of a delay of any length be given later than thirty days after the end of the

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delay or ten (10) days before the end of the Term (unless the cause of the delay arises during if at time), whichever comes first.

10. Notices. All notices required or provided for under this Agreement shall be in writing and delivered in person, sent by certified mail, postage prepaid, return receipt requested or by Federal Express or other similar nationwide overnight delivery service. Notices required to be given to the CITY shall be addressed as follows:

City of Norco
2870 Clark Avenue
Norco, CA 92860
Attention: City Clerk
Notices required to be given to OWNER shall be addressed as follows:
___Newcastle Partners_____________________
__4740 Greeen River Road, Suite 110______________________ __Corona CA 92878______________________
Attention: Courtney Wing_______________
Any notice shall be deemed given only if in writing and upon delivery as provided for in this Section. A party may change its address for notices by giving notice in writing to the other party and thereafter notices shall be addressed and transmitted to the new address.

11. Attorneys’ Fees. If legal action is brought by any party against another for breach of this Agreement, including actions derivative from the performance of this Agreement, or to compel performance under this Agreement, the parties shall bear their own attorneys’ fees.

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12. Recording. This Agreement and any amendment or cancellation hereto shall be recorded, at no cost to the CITY, in the Official Records of Riverside County by the City Clerk within the period required by Section 65868.5 of the Government Code.

13. Effect of Agreement on Title.

13.1 Effect on Title. OWNER and the CITY agree that this Agreement shall not continue as an encumbrance against any portion of the Property as to which this Agreement has terminated or released.

13.2 Encumbrances and Lenders’ Rights.

13.2.1 Notwithstanding OWNER’s default, this
Agreement shall not be terminated by CITY as to any mortgagee or beneficiary to whom notice is to be given and to which either or the following is true:
(i) the mortgagee or beneficiary cures any default by
OWNER involving the payment of money within ninety (90) days after receipt from CITY of the written notice of default;
(ii) as to defaults requiring title or possession of the Property or any portion thereof to effectuate a cure: (a) the mortgagee/beneficiary agrees iii writing, within ninety (90) days after receipt from CITY of the written notice of default, to perform the proportionate share of OWNER’s obligations under this Agreement allocable to that part of the Property in which the mortgagee/beneficiary has an interest conditioned upon such mortgagee’s/ beneficiary’s acquisition of the Property or portion thereof by foreclosure (including a trustee sale) or by a deed in lieu of foreclosure; (b) the mortgagee/beneficiary commences foreclosure proceedings to reacquire title to the Property or applicable portion thereof within said ninety (90)

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days and thereafter diligently pursues such foreclosure to completion, and (c) the mortgagee/ beneficiary promptly and diligently commences to cure such Default after obtaining title or possession.

13.2.2 The lien of any existing or future deeds of trust recorded against all or any part of the Property shall be superior and senior to any lien created by this Agreement or the recordation thereof.

At the request of any lender whose loan will be secured by a deed of trust on all or any part of the Property, CITY shall execute a subordination agreement subordinating their interest hereunder to the lien of such deed of trust, which subordination agreement shall be subject to the reasonable approval of CITY. Nothing in this Agreement shall be deemed to construe, permit, or authorize any such mortgagee to devote the Property, or any part thereof, for any uses, or to construct any improvements thereon, other than those uses or improvements provided for or authorized by this Agreement.

13.2.3 Neither entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, diminish or impair the lien of any existing or future mortgage or deed of trust on the Property made in good faith and for value.

13.2.4 Except as provided to the contrary in this
Agreement, no mortgagee or beneficiary shall have an obligation or duty under this Agreement to perform the obligations of OWNER or other affirmative covenants of OWNER hereunder, or to guarantee such performance, and no mortgagee or beneficiary shall be liable for any defaults or monetary obligations of OWNER arising prior to acquisition of title to the Property by such mortgagee or beneficiary or their respective successors or assigns; except that to the extent any covenant to be performed by OWNER is expressly identified in the Development Plan Approval(s) as a condition to the performance of a covenant by CITY, the performance thereof shall continue to be a condition

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precedent to CITY’s performance hereunder. If a mortgagee or beneficiary elects to develop the Property in accordance with the Development Plan Approval(s), the mortgagee or beneficiary shall be required to assume and perform the obligations or other affirmative covenants of OWNER tinder this Agreement.

14. Severability of Terms. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, the remainder of this Agreement shall not be affected thereby if the invalidity was not a material part of consideration for the OWNER or the CITY. If the invalidity was a material part of the consideration, this Agreement will terminate unless CITY and OWNER agree to amend this Agreement as provided for herein.

15. Subsequent Amendment to Authorizing Statute. This
Agreement has been entered into in reliance upon the provisions of the Development Agreement Legislation in effect as of the Agreement Date.

The extent that subsequent amendments to the Government Code would affect the provisions of this Agreement, such amendments shall not be applicable to this Agreement unless necessary for this Agreement to be enforceable or required by law or unless this Agreement is modified pursuant to the provisions set forth in this Agreement.

16. Rules of Construction and Miscellaneous Terms.

16.1 Interpretation and Governing Law. The language in all parts of this Agreement shall, in all cases, be construed as a whole and in accordance with its fair meaning. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California. The Parties understand and agree that this Agreement is not intended to constitute, nor shall be construed to constitute, an impermissible attempt to contract away the legislative and governmental functions of the CITY, and in particular, the CITY’s

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police powers. In this regard, the Parties understand and agree that this Agreement shall not be deemed to constitute the impermissible surrender or abnegation of the CITY’s governmental powers over the Property or any decision arising from the Agreement, directly or indirectly. This Agreement shall be interpreted as though drafted by both Parties equally.

16.2 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement.

16.3 Gender. The singular includes the plural; the masculine gender includes the feminine; “shall” is mandatory, “may” is permissive.

16.5 Covenant of Good Faith and Fair Dealing. No party shall do anything which shall have the effect of materially harming or injuring the right of the other Parties to receive the benefits provided for in this Agreement; each party shall refrain from doing anything which would render its performance under this Agreement impossible; and each party shall do everything which this Agreement contemplates that such party shall do in order to accomplish the objectives and purposes of this Agreement.

16.6 No Waiver of Vesting. Nothing in this Agreement shall be construed as limiting or impairing any vested rights to proceed with the Development or use of the Property arising independently from entitlements, including those approved for the Project, issued by the CITY or others prior to, concurrently with, or subsequent to the approval of this Agreement, Federal and State Constitutions, statutes, or decisional law.

16.7 Time of Essence. Time is of the essence regarding each provision of this Agreement of which time is an element.

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684385.1 28

16.8 Recitals. All Recitals set forth herein are incorporated in this Agreement as though fully set forth herein.

16.9 Entire Agreement. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof, and the Agreement supersedes all previous negotiations, discussion and agreements between the Parties, and no parol evidence of any prior or other agreement shall be permitted to contradict or vary the terms hereof.

17. Deleted.

18. Not for Benefit of Third Parties. This Agreement and all provisions hereof are for the exclusive benefit of the CITY and OWNER and its assignees and shall not be construed to benefit or be enforceable by any third party.

19. Attachments. The following attachments are hereby incorporated by reference as if fully set out in the body of this Agreement.

Attachments Description
Exhibit A Legal Description
Exhibit B Approved Entitlement Plans
Exhibit C Approved Resolution 2021-21

20. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original.

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684385.1 29
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the day and year dated below.

Dated: _______________, 2023
“CITY”
CITY OF NORCO, a California
Charter City
By: ________________________________
Name: ______________________________
Title: Mayor
Date: _______________________________
ATTEST:
_________________________________________________________ City Clerk, Norco
APPROVED AS TO FORM:
_____________________________-
________________________________
City Attorney
Date:______________

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684385.1 30
COMPANY:

NEWCASTLE SKYE PARKRIDGE, LLC,
a California limited liability company,
By: Newcastle Partners, Inc.,
a California corporation
Its: Manager
By: _______________________________________
Name: Dennis D. Higgs
Title:President

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684385.1 31
State of California )
) ss
County of __________ )
On __________________ before me, _________________ personally appeared ________________________________ personally known to me or proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), arid that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

Witness my hand and official seal.

Signature of Notary
State of California )
) ss
County of ___________ )
On __________________ before me, _________________ personally appeared ________________________________ personally known to me or proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), arid that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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Witness my hand and official seal.

Signature of Notary

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Exhibit "A"
Site Plan 2020-11
Newcastle LLC
1004 Parkridge Avenue
PROJECT:

APPLICANT:

LOCATION:

E Not to Scale
Location Map
0 0
0 0
0 0
0 740
0 731
0 0
620
0 1290
1044
0 517
741
996
0 0
0 2200
0 0
896
2655
0 2675
1063
2270
0 2625
2695
2670
1050
2555
2344
2366
2384
2398
2430
2328
2575
2399
1004
1280
1116
1176
1146
2439
1260
2385
2369
2320
1320
1030
938
942
978
13 2349
99 982 1120
0 994
1180
1140
0 2339

PARKRIDGE AV

MOUNTAIN AV

THREE BAR LN
TH

REE BAR LN

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EASEMENT EMPLOYEE BREAK AREA SEE ENLARGEMENT Brisbane Box Tristania conferta TREES SYMBOL BOTANICAL/COMMON NAME PLANTING LEGEND SIZE QTY WUCOLS REMARKS 15 Gal 33 M Chitalpa tashkentensis Chitalpa 24" Box 29 L Standard Standard Chilean Mesquite Prosopis chilensis 24" Box 2 M Multi Pistacia chinensis Chinese Pistache 24" Box 7 L Standard Acacia redolens 'Low Boy' 1 Gal 8' O.C. Low Boy Trailing Acacia ACCENTS GROUNDCOVER Rosmarinus o. 'Huntington Carpet' 1 Gal 48" O.C. LL SYMBOL BOTANICAL/COMMON NAME SIZE QTY WUCOLS REMARKS SYMBOL BOTANICAL/COMMON NAME SIZE SPACING WUCOLS REMARKS M Huntington Carpet Rosemary 1 Gal 30" O.C. Dasylerion wheeleri Desert SpoonHesperaloe parviflora Red Yucca Lonicera j. 'Halliana' Hall's Honeysuckle Rosa 'Flower Carpet' Red Red Flower Carpet Rose 1 Gal 48" O.C. L Altas Fescue Festuca mairei 1 Gal 24" O.C. M Senecio mandraliscae 4" Pots 12" O.C. M Blue Chalksticks Grass Coral Aloe Aloe striata Lantana 'New Gold' Compact Gold Lantana Agave villmoriniana 5 Gal L Octopus Agave 1 Gal L 5 Gal L 5 Gal L 1 Gal L Agave 'Blue Glow 5 Gal L Blue Glow Agave Abg Abg Abg Abg AbgAbgAbg Abg Abg Abg Eg Eg EgEg Eg Eg Eg SG wgb wgbwgb wgbwgbwgbwgb wgbwgb wgb wgb wgb wgb wgbwgbwgbwgb wgb wgb wgb wgb wgb wgb wgb wgbwgb wgb wgbwgb wgb wgb wgb wgb wgb wgb wgb wgbwgb wgb wgb wgb wgb SGSGSGSGSGSGSG SG SG SGSGSGSG SG SG SG SG SG SGSG SG SG SGSG SG SG SG SGSGSGSGSG SG SG SG SGSGSGSGSGSGSG SG SG LLLLLLL L L L L L L L L L L L L L L L L L L L L L LLLLLLLLLLL L L L L L L L L L L L L L L L L SAC SAC SAC SAC SGSG SG wgbwgb wgbwgb wgb wgb wgbwgbwgbwgb wgb wgbwgb wgb wgbwgb wgb wgb wgb wgb wgb wgb wgb wgb wgb wgb wgb wgbwgbwgbwgb wgbwgbwgb SGSG SG SG SG SG SG SG Westingia Grey Box Dwarf Coast Rosemary Ligustrum japonicum Texas Private Salvia greggii Autumn Sage Salvia Allen Chickering Allen Chickering Sage Aloe stricta Coral Aloe Enchinocactus grusonii Golden Barrell Cactus Agave Blue Glow Blue Glow Agave Baccharis pilularis Prostrate Coyote Bush Rosmarinus prostratus Prostrate Rosemary Feathery Cassia Senna artemisioides Rhamnus californica Coffeeberry Autumn Sage Salvia greggii Texas Ranger Leucophyllum f. 'Green Cloud' SYMBOL SIZE SPACING REMARKS SHRUBS BOTANICAL/COMMON NAME WUCOLS Texas Privet Ligustrum j. Texanum Hopseed Bush Dodonaea viscosa 'Purpurea' Pink Muhly Muhlenbergia capillaris 1 Gal 3' L 5 Gal 4' M 5 Gal 4' L 5 Gal 3' M 5 Gal 4' L Sanat Barbara Sage Salvia l. 'Santa Barbara' 5 Gal 3' L 5 Gal 4' L 5 Gal 4' L Pineapple Gauva Acca sellowiana 5 Gal 3' M City of Norco 20-100 12.22.20 1004 PARKRIDGE AVENUE BUSINESS PARK 711 FEE ANA STREET 714.986.2400 FAX 714.986.2408 PLACENTIA, CA 92870 0 10' 20' 40' N SCALE: 1" = 20'-0" N Employee Break Area

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·
·······················

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PL

CENTERLINE OF

PARKRIDGE AVENUE

CENTERLINE OF

PARKRIDGE AVENUE
PL

CENTERLINE OF

PARKRIDGE AVENUE
PLPL

CENTERLINE OF

PARKRIDGE AVENUE

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EXHIBIT A

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