Redding City Council
June 20, 2023

Agenda
Regular Meeting
Redding City Council
Council Chambers (Doors open 30 minutes prior)
777 Cypress Avenue
Redding, CA
June 20, 2023
6:00 PM

1. CALL TO ORDER - MAYOR MICHAEL DACQUISTO
A. Pledge of Allegiance
B. Invocation - Patrick A. Blewett, Ph.D., Executive Dean, Simpson University C. Roll Call

2. PRESENTATIONS
2A. Mayor’s Proclamation presented to Joanne McCarley, Founder and Executive Director of Compass ShiningCare, Inc., declaring June 3-11, 2023, as Purple City Week; and June 2023 as Elder Abuse Awareness Month in the City of Redding, to bring awareness to elders who suffer from at-risk conditions, such as dementia.
2B. Presentation of City Council Proclamation and Appreciation Clock to outgoing Planning Commissioner Leon Benner in recognition of his service on the Planning Commission from May 1, 2019, through April 30, 2023. 2C. Adopt Resolution honoring Pamela Mize for her distinguished service as the City Clerk and City of Redding’s Administrator of the Office of City Clerk. 2D. Presentation by Deputy Fire Chief Eric McMurtrey and Captain Garrett Claycamp regarding the conceptual design for the City of Redding Station 8 Firefighter Memorial.

If anyone wishes to address the City Council on any item considered at this meeting before or during Council’s consideration of that item, please fill out a blue Speaker Request Form, located in the lighted alcoves at the back of the Council Chambers, and submit it to the City Clerk. The City Council will allocate up to a maximum of three minutes per speaker for each agenda item. Staff reports are available on-line at the City’s web site at www.cityofredding.org or in the Public View binder located on the podium at the north side of the Chambers.

PLEASE SILENCE YOUR CELL PHONES. THANK YOU.

Redding City Council June 20, 2023

3. PUBLIC COMMENT - for non-agendized matters within the city’s jurisdiction.

4. CONSENT CALENDAR
The Consent Calendar contains items considered routine and/or which have been individually scrutinized by City Council Members and are anticipated to require no further deliberation. If a member of the public wishes to address an item on the Consent Calendar, please fill out a Speaker Request Form and submit it to the City Clerk before the Consent Calendar is considered. It shall be the prerogative of any Council Member, before the Consent Calendar is acted upon, to: (1) comment on an item; (2) respond to any public comment on an item; (3) request the record reflect an abstention or nay vote on an item; or (4) remove an item and place it on the Regular portion of the agenda for delivery of a staff report and/or an extended discussion or deliberation. 4(a). Approve Minutes: Regular Meeting –for the following meeting: April 4,2023. 4(b). Accept City of Redding Accounts Payable Register No. 22; and Payroll Register No. 24.
4(c). Adopt Ordinance No. 2660, an ordinance of the City Council of the City of Redding, amending Title 18 (Zoning), Chapter 18.43 (Standards for Specific Land Uses) by amending Section 18.43.180 (Short Term Rentals), thereby making changes to the Standards for Regulation of Short-Term rentals.

4.1(a). Approve and authorize the following actions regarding the potential sale of real property located at 3811 El Portal (Assessor’s Parcel Number 070-100-027) (1) Accept a Non-Binding Letter of Intent with Michael Manola regarding the potential sale of property owned by the City of Redding located at 3811 El Portal;
(2) Authorize staff to obtain a Broker’s Opinion of Value and the City Manager to negotiate and execute a purchase and sale agreement and all subsequent documentation to facilitate the disposition of the property; and (3) Find the sale of the City-owned property is categorically exempt from review under the California Environmental Quality Act Guidelines Section 15312 (Surplus Government Property Sales).

PURSUANT TO THE BROWN ACT, CITY COUNCIL CANNOT TAKE ACTION ON PUBLIC

COMMENT ITEMS
The City Council will allocate up to a maximum of three minutes per speaker for 30 minutes total, at the beginning of the meeting for Public Comment for non-agendized matters within the City’s jurisdiction.

The Mayor will determine the order of the speakers. If 30 minutes is not adequate to accommodate all of the individuals who have submitted a Speaker Request Form to the City Clerk, the Council will trail this item to the end of the open session agenda. The remaining speakers will address the City Council at that time.

Redding City Council June 20, 2023

4.1(b). Authorize and approve the following actions regarding the sale of real property located at 6550 Lockheed Drive (Assessor Parcel No. 054-280-008), to the County of Shasta;
(1) Authorize the City Manager to negotiate and execute a purchase and sale agreement in the amount of $265,000 with the County of Shasta relative to City of Redding (City)-owned property located at 6550 Lockheed Drive;
(2) Authorize the City Manager to execute all related documents needed to complete the transaction; and
(3) Find that the sale of the property by the City is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15312 of the CEQA Guidelines (Surplus Government Property Sales).

4.2(a). Authorize and approve the following relative to Whole Person Care (WPC) Program funds from the Shasta County Health and Human Services Agency:
(1) Accept WPC Program funds in the amount of $800,000 to assist with the development costs of a mixed-use building consisting of at least 12 income-eligible residential units and commercial space at 815 and 825 Parkview Avenue and 2520 Leland Avenue;
(2) Authorize the Mayor, or designee, to execute the associated WPC Program Subaward Agreement;
(3) Authorize the City Manager, or designee, to allocate funds, execute any other agreement and any other documents necessary to complete the project transaction;
(4) Find that applying for and accepting grant funding is not considered a project under the California Environmental Quality Act; and (5) Find that applying for and accepting grant funding is exempt from review under the National Environmental Policy Act under Title 24 CFR

58.34(a)(3).

4.2(b). Approve the Funding Agreement between the Superior California Economic Development District (SCEDD) and the City of Redding for Fiscal Years (FY) 2021-22, 2022-23, and 2023-24, for economic development planning and business development services; and authorize payment to SCEDD in the amount of $17,974 for FY 2021-22, $23,465 for FY 2022-23, and $26,977 for FY 2023- 24 activities.

Redding City Council June 20, 2023

4.2(c). Authorize the following regarding the Development Agreements between Resources for Rural Community Development, Inc., dba AccessHome (AccessHome) and the City of Redding (City) for the construction of incomequalifying Park Host housing units:
(1) Approve and authorize a First Amendment to Development Agreement (C-9068) thereby increasing the City’s loan by $84,717 for the development of a park host home at Enterprise Community Park (Enterprise Host Home Project);
(2) Approve and authorize a First Amendment to Development Agreement (C-9406) thereby increasing the City’s loan by $83,311 for the development of a park host home at John Reginato River Access Park (Reginato Host Home Project);
(3) Approve and authorize the City Manager, or designee, to execute each Amendment to the Development Agreements, and the associated security documents necessary to complete each transaction;
(4) Find the project is categorically exempt from the California Environmental Quality Act pursuant to Section 15332; and (5) Find that the National Environmental Policy Act (NEPA) review shows that the project is categorically excluded and not subject to part 58.5 pursuant to Title 24 CFR 58.35(b)(7).

4.2(d). Authorize the following actions regarding the sale of real property located at 2955 Leland Avenue (Property) (Assessor’s Parcel Number 108-010-043-000):
(1) Authorize the City Manager, or designee, to negotiate the terms of and execute a purchase and sale agreement at fair market value; (2) Authorize the City Manager to execute all escrow documents related to the disposition of the Property; and
(3) Find that the sale of the property by the City is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15312 of the CEQA Guidelines (Surplus Government Property Sales).

4.2(e). Approve and authorize the following actions:
(1) Adopt Resolution adopting and approving the 94th Amendment to City Budget Resolution No. 2021-078 appropriating $250,000 in Fiscal Year 2022-23 for Airport Improvement Program (AIP) eligible design and staff costs of the Runway 16/34 Lighting and Shoulder Improvements Project at the Redding Regional Airport; and
(2) Authorize the City Manager, or his designee, to negotiate and execute a professional services contract not to exceed $230,000 to conduct the AIP eligible design work for the project.

Redding City Council June 20, 2023

4.5(a). Authorize and approve the following actions:
(1) Approve the participation of Redding Electric Utility in a Multi-Task General Services Agreement between the Northern California Power Agency and Siemens Energy, Inc. for long-term maintenance and upgrades on the distributed control system at the Redding Power Plant;
(2) Authorize the City Manager, or designee, to execute the Confirmation Agreement and any associated documents and amendments necessary to administer the project and complete the work; and
(3) Find that participation in this Agreement is exempt from review under the California Environmental Quality Act pursuant to Sections 15301 (Existing Facilities).

4.6(a). Authorize the City Manager to:
(1) Approve and execute a Professional Services Agreement between the Shasta County Probation Department and the City of Redding (City) for program and services support utilizing Shasta County's Edward Byrne Justice Assistance Grant funding in the amount of $100,000 per year for a three-year term for program support at the Dr. Martin Luther King, Jr.

Center;
(2) Administratively appropriate the associated funds; and (3) Execute the necessary documents to implement the associated grant funding.

4.6(b). Authorize the following related to Landscape Maintenance Districts (LMDs):
(1) Adopt Resolution relative to LMDs A, B, and C authorizing the following:
(a) Approving the Engineer’s Report for Fiscal Year 2023-24 for the LMDs as filed with the City Clerk;
(b) Setting a Public Hearing for 6:00 p.m., on July 18, 2023, in the City Council Chambers, 777 Cypress Avenue, Redding,
California; and
(c) Declaring the City Council's intention to levy and collect assessments for Fiscal Year 2023-24 pursuant to the Landscaping and Lighting Act of 1972.
(2) Adopt Resolution relative to Landscape Maintenance Districts D, E, F, G, H, H1, J, K, L, M, N, O, P, Q, R, S, S1, T, U, V, W, 01-06, 02-06, 03- 06, 04-06, 05-06, 06-06, 07-06, 08-06, 09-06, 11-06, 01-07, 02-07, 02- 09, 03-09, 01-11, 02-11, 03-11, 01-13, 02-14, 03-14, 01-15, 02-16, 03- 16, 01-17, 01-19, 02-19, 01-20, and 01-22; authorizing the following:
(a) Approving the Engineer’s Report for Fiscal Year 2023-24 for the LMDs as listed above as filed with the City Clerk;
(b) Setting a public hearing for 6:00 p.m., on July 18, 2023, in the City Council Chambers, 777 Cypress Avenue, Redding,
California; and
(c) Declaring the City Council's intention to levy and collect assessments for Fiscal Year 2023-24 pursuant to the Landscaping and Lighting Act of 1972.

Redding City Council June 20, 2023

(3) Determine that the recommended actions do not constitute a project subject to California Environmental Quality Act Guidelines, pursuant to Section 15378(b)(5), finding that the project is an organizational or administrative activity of governments that will not result in direct or indirect physical changes in the environment.

4.6(c). Approve the following:
(1) Authorize the City Manager, or designee, to execute the Boating Access Program funding agreement in amount of $451,290 and all documents necessary to implement the program; and
(2) Adopt Resolution approving and adopting the 93rd Amendment to City Budget Resolution No. 2021-078 appropriating $451,290 for Fiscal Year 2022-23 and authorizing the addition of three new Public Works Maintenance Worker positions and one new Gardener position for the Parks Division to complete the work outlined in the grant agreement.

4.9(a). Authorize the following:
(1) Authorize staff to apply for the Organized Retail Theft Prevention Grant Program administered by the Board of State and Community Corrections for an amount up to $6,125,000; and
(2) Adopt Resolution to authorize the City Manager or his designee to execute all documents necessary to apply for the grant, appropriate funds, should the grant be awarded, and execute any agreements necessary to implement the grant if awarded.

4.9 (b). Authorize the following relative to the Redding Police Department Military Equipment:
1) Accept the Redding Police Department Military Equipment Report; and 2) Offer for renewal an Uncodified Ordinance Adopting a Policy to Provide Guidelines for the Approval, Acquisition and Reporting Requirements for Military Equipment for first reading by title only and waive the full reading; authorize the City Attorney to prepare a summary ordinance; and the City Clerk to publish the same in accordance with law.

4.11(a). Accept Bid Schedule No. 5257 (Job No. 9943), Reconstruction of Terminal Building Access Roads Project Phase 2, awarded to Tullis, Inc., as satisfactorily complete, with a final cost of $3,738,639.90.

Redding City Council June 20, 2023

4.11(b). Authorize the following actions relative to Bid Schedule No. 5368 (Job No. 2638) Foothill Water Treatment Plant Generator Project:
(1) Award to SnL Group, Inc., in the amount of $2,592,275; (2) Approve an additional $375,000 to cover the cost of administration and inspection fees; and $240,000 for project development costs; (3) Approve $280,000 to provide construction contingency funding; (4) Authorize the City Manager to approve additional increases in either the construction management or construction contingency amounts up to a total of $50,000;
(5) Accept grant funds awarded to the City of Redding for the Foothill Water Treatment Plant Generator;
(6) Adopt Resolution approving and adopting the 90th Amendment to the City Budget Resolution No. 2021-078 appropriating $1,967,840 in grant funds for the project; and
(7) Find that the Project is categorically exempt from review under the California Environmental Quality Act, pursuant to Section 15301 - Existing Facilities and 15303 - New Construction or Conversion of Small Structures.

4.11(c). Accept Bid Schedule No. 5249 (Job 2612), Shasta Street Railroad Crossing Improvements, awarded to S. T. Rhoades Construction, Inc. as satisfactorily complete with a final project cost of $516,270.80; and adopt the 95th Amendment to City Budget Resolution No. 2021-078 appropriating additional grant funds for the project.

4.11(d). Authorize staff to reduce the retention that was withheld to two and one-half percent, thereby releasing $195,903.69, to Tullis, Inc., the contractor, for Bid Schedule No. 5290 (Job No. 2606) Bechelli Lane Improvements Active Transportation Project.

4.11(e). Authorize the following actions relative to Bid Schedule No. 5366 (Job No. 2701), Cape Seal 2023 (Project):
(1) Award to VSS International, Inc. in the amount of $2,167,000; (2) Approve an additional $225,000 to cover the cost of contract administration and inspection fees;
(3) Approve $220,000 to provide construction contingency funding; (4) Approve $44,000 for project development costs;
(5) Authorize the City Manager to approve additional increases, in either the construction management or construction contingency amounts, up to a total of $15,000; and
(6) Find that the Project is categorically exempt from review under the California Environmental Quality Act, pursuant to Section 15301(c) – Existing Facilities.

Redding City Council June 20, 2023

4.11(f). Adopt Resolution relative to Sanitary Sewer Maintenance Districts (SSMD) 01- 07 Hope Lane, and 01-19 Seven Bridges, authorizing the following:
(1) Approving the Engineer’s Reports for Fiscal Year 2023-24 for SSMD 01-07 and SSMD 01-19 as filed with the City Clerk;
(2) Setting a public hearing for 6:00 p.m. on July 18, 2023, in the City Council Chambers, located at 777 Cypress Avenue, Redding, California; and
(3) Declaring the City Council’s intention to levy and collect assessments for Fiscal Year 2023–24 pursuant to the State of California Improvement Act of 1911.

4.11(g). Accept update regarding the City of Redding’s COVID-19 Economic Stimulus Package projects.

RECOMMENDATION: ACCEPT, ACKNOWLEDGE, ADOPT, APPROVE,
AND/OR AUTHORIZE ALL ITEMS ON THE CONSENT CALENDAR.

6. PUBLIC HEARINGS
A court challenge to action taken by the City Council on any project or decision may be limited to only those issues raised during the public hearing or in written correspondence delivered to the City Council during, or prior to, the public hearing.

Finance

6.1. Public Hearing to consider the adoption of a Resolution to adjust the City's Schedule of Fees and Service Charges.

Recommendation:

Conduct a Public Hearing and, upon conclusion, adopt Resolution adjusting the City of Redding’s Schedule of Fees and Service Charges.

9. REGULAR CALENDAR: REPORTS & COMMUNICATIONS OF DEPARTMENTS,

BOARDS, COMMISSIONS AND COMMITTEES
City Manager

9.1(c). Consider Resolution adopting and approving the City of Redding Biennial Budget 2023-25.

Recommendation:

Authorize the following actions:
1) Adopt Resolution approving and adopting the City of Redding Biennial Budget for Fiscal Years ending June 30, 2024 and June 30, 2025; and 2) Find that the general maintenance activities performed by various City departments on City facilities/equipment over the course of fiscal years 2023- 2024 and 2024-2025 are categorically exempt from review under the California Environmental Quality Act Guidelines, per Section 15301 - Existing Facilities.

Redding City Council June 20, 2023

9.1(d). Consider appointment of two Council Members to Ad-Hoc Steering Committee to develop a Cities and County Plan to address homelessness.

Recommendation:

Appoint two City Council Members to serve as members on an ad-hoc Steering Committee to develop a Cities and County Plan to address homelessness.

Community Services

9.6(d). Consider First Amendment to the Letter of Agreement (C-0458) with Big League Dreams USA, LLC.

Recommendation:

Authorize the following actions relative to the First Amendment to the Letter of Agreement (C-0458) between the City of Redding and Big League Dreams USA, LLC modifying the schedule of capital improvement projects:
(1) Authorize the City Manager to execute the First Amendment to the Letter of Agreement; and
(2) Find that the activity is categorically exempt from review under the California Environmental Quality Act Guidelines, pursuant to Section 15301 (a and d) – Existing Facilities.

9.6(e). Consider Professional Services Agreement with the Siskiyou Opportunity Center.

Recommendation:

Approve the following relative to the Professional Services Agreement (PSA) with the Siskiyou Opportunity Center regarding janitorial services for City of Redding (City) facilities:
(1) Authorize the City Manager to negotiate and execute a PSA with the Siskiyou Opportunity Center; and
(2) Authorize the City Manager to execute all subsequent PSA documents necessary to implement janitorial services for City facilities.

Personnel

9.15(a). Consider Resolution Amending Executive Management Pay for Performance Salary Plan
Recommendation:

Adopt Resolution approving an amendment to the Executive Management Pay-forPerformance Salary Plan Changing Titles of the Electric Manager - Compliance and Electric Manager - Engineering, creating six new Electric Program Supervisor classifications, and increasing wages for the Electric Supervisor-Power Production and Electric Manager-Power Production effective June 25, 2023.

Redding City Council June 20, 2023

11. COUNCIL TRAVEL REPORT(S)
City Council Member attendance at conference/meetings reimbursed at City expense. {Requirement of Assembly Bill 1234}
[A-050-060]
Information Only

12. SUGGESTIONS FROM COUNCIL MEMBERS RELATIVE TO POTENTIAL TOPICS

FOR FUTURE CITY COUNCIL MEETINGS

13. ADJOURNMENT
Pursuant to the Brown Act, non-confidential materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for inspection during normal business hours at the Office of the City Clerk, 3rd Floor, City Hall, 777 Cypress Avenue, Redding, California.

City Council Meetings will be televised live on Shasta Community Access Channels via Charter/Spectrum Cable channel 181, and will be rerun on Thursday at 12:30 p.m. during the week in which the meeting is held. Additionally, the meeting can be viewed online at the following: http://scac.cablecast.tv:8080/CablecastPublicSite/watch/4?channel=1. Video of the City Council meetings can also be viewed on the City’s web site at http://www.cityofredding.org/. Open the City’s meetings and agendas portal; Click on tab named "Meetings Videos" and select Redding City Council under “Available Archives 2023” select the desired date, then click on “video” to view the meeting.

In compliance with Title II of the Americans with Disabilities Act, the City of Redding will make available to persons with disabilities modifications or accommodations including auxiliary aids or services necessary to participate in public meetings. A person needing assistance should contact the Redding City Clerk by telephone at (530) 225-4447 or in person, or by mail at 777 Cypress Avenue, 3rd Floor, Redding, California 96001 at least three (3) working days in advance.

The City of Redding will ensure that no person shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination under any of its projects, activities, services, or business opportunities on the basis of race, color, national origin, age, sex, or disability, as afforded by Title VI of the Civil Rights Act of 1964 and related statutes as amended. All persons, regardless of their citizenship status, are covered under this regulation.

Questions, complaints, or requests for accommodations or additional information may be forwarded to the ADA & Title VI Coordinator at 777 Cypress Avenue, Attn: Personnel Dept., Redding, California 96001, Phone (530) 225-4065.

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Mayor’s Proclamation presented to Joanne McCarley, Founder and Executive Director of Compass ShiningCare, Inc., declaring June 3-11, 2023, as Purple City Week; and June 2023 as Elder Abuse Awareness Month in the City of Redding, to bring awareness to elders who suffer from at-risk conditions, such as dementia.

Attachments
^Proclamation
MEETING DATE: June 20, 2023
ITEM NO. 2A
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 2A--Mayor's Proclamation declaring June 3-11, 2023, as Purple City Week; and June 2023 as Elder Abuse Awareness Month in the City of Redding Barry Tippin, City Manager
Packet Pg. 11
Packet Pg. 12
Attachment: ^Proclamation (2A--Mayor's Proclamation re June 3-11 as Purple City Week & June 2022 as Elder Abuse Awareness Month)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Presentation to outgoing Planning Commissioner Leon Benner in recognition of his service on the Planning Commission from May 1, 2019, through April 30, 2023.

Attachments
^Proclamation
MEETING DATE: June 20, 2023
ITEM NO. 2B
FROM:
***APPROVED BY***
SUBJECT: 2B--Presentation to Outgoing Planning Commissioner Leon Benner City Council
Packet Pg. 13
Packet Pg. 14
Attachment: ^Proclamation (2B--Presentation to Outgoing Planning Commissioner Leon Benner)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Adopt Resolution honoring Pamela Mize for her distinguished service as the City Clerk and City of Redding’s Administrator of the Office of City Clerk.

Attachments
^Resolution
MEETING DATE: June 20, 2023
ITEM NO. 2C
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 2C--Resolution honoring Pamela Mize for distinguished service as the City of Redding's City Clerk and Administrator of the Office of City Clerk.

Barry Tippin, City Manager
Packet Pg. 15
RESOLUTION NO. 2023-

A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF REDDING COMMENDING

PAMELA MIZE FOR OUTSTANDING DEDICATED

SERVICE TO THE CITY OF REDDING
WHEREAS, Pamela Mize began her career with the City of Redding on May 18, 1998, and has served as the Business License Specialist, Assistant City Clerk, Administrator to the City Clerk’s Office and Elected City Clerk; and
WHEREAS, Ms. Mize effectively and expertly managed the direction, organization, and operation of the City Clerk’s Office, Records Management Division and the Reprographics Division; and WHEREAS, Ms. Mize provided exceptional leadership in her roles, most notably as the Administrator to the City Clerk’s Office, and is recognized in accomplishing the following:
• Successfully merged the Reprographics Division with the Clerk’s Office; • Provided leadership and guidance in the conversion to on-line staff report processing; • Provided leadership during the upgrade of the digital records management system; • Developed the Clerk-in-a-Box product for use during emergencies; • Served as a Certified Revenue Officer as a member of the California Municipal Revenue and Tax Association;
• Recipient of the Bruno Award from the California Municipal Revenue and Tax Association for service above and beyond;
• Served as President of the California Municipal Revenue and Tax Association; • Developed a Clerk’s Group for networking with other local Clerks; • Provided leadership and expertise during the Covid-19 pandemic particularly related to City Council Meetings; and
• Presented at local schools and leadership training programs during their Government curriculum module.

WHEREAS, Pamela Mize has performed her duties with pride, integrity, and accountability, always looking out for the welfare of the organization and City residents.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Redding hereby expresses its deep appreciation to Pamela Mize for her dedication and the many contributions she has made to the City of Redding and its citizens, and wishes her future success and happiness as she retires from public service.

I HEREBY CERTIFY that the foregoing resolution was introduced at a regular meeting of the City Council of the City of Redding on the 20th day of June, 2023, and was duly adopted at said meeting by the following vote:

AYES: Council Members -
NOES: Council Members - None
ABSTAIN: Council Members - None
ABSENT: Council Members - None

MICHAEL DACQUISTO, Mayor
ATTEST: APPROVED TO FORM:
______________________________________ ______________________________________ PAMELA MIZE, City Clerk BARRY E. DeWALT, City Attorney
Packet Pg. 16
Attachment: ^Resolution (2C--Resolution honoring Pamela Mize for service to the City of Redding)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Presentation by Deputy Fire Chief Eric McMurtrey and Captain Garrett Claycamp regarding the conceptual design for the City of Redding Station 8 Firefighter Memorial.

MEETING DATE: June 20, 2023
ITEM NO. 2D
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 2D--Presentation by Deputy Fire Chief McMurtrey and Captain Claycamp.

Jerrod Vanlandingham, Fire
Chief
Packet Pg. 17

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Approve Minutes: Regular Meeting –for the following meeting: April 4,2023 Attachments
Unofficial Minutes - Regular Session Meeting of April 4, 2023 MEETING DATE: June 20, 2023
ITEM NO. 4(a)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4(a)--Approve City Council Minutes.

Packet Pg. 18
171
04/04/2023
Unofficial Minutes Redding City Council, Regular Meeting Civic Center Council Chambers
777 Cypress Avenue
Redding, CA 96001
April 4, 2023 6:00 PM
The meeting was called to order at 6:00 p.m.by Mayor Michael Dacquisto with the following Council Members present: Tenessa Audette, Mark Mezzano, Jack Munns, and Julie Winter.

Also present were: City Manager Barry Tippin, Assistant City Manager Steve Bade, City Attorney Barry DeWalt, City Clerk Pamela Mize, and Executive Assistant Erin Barnhart.

The Pledge of Allegiance to the Flag was led by Mayor Dacquisto.

The Invocation was provided by Lori Moretti, Redding Police and Fire Departments’ Chaplin.

PRESENTATIONS
2A. Mayor’s Proclamation presented to Michael Burke representing Pathways to Hope for Children declaring April 2023 as Child Abuse Prevention Awareness Month in the City of Redding.

The City Council took no action on this informational item. 2B. Presentation of Mayor’s Proclamation recognizing University Preparatory Middle School Team No. 1 and University Preparatory High School Team No. 1 as the 2023 Far Northern California Regional Science Bowl winning teams; and thanking all of the local businesses, organizations, and individuals that contributed to a successful community event.

The City Council took no action on this informational item. 2C. Mayor's Proclamation presented to the Shasta County Arts Council declaring April 2023 as Arts, Culture, and Creativity Month in the City of Redding.

The City Council took no action on this informational item.

PUBLIC COMMENT
Steve Woodrum presented a donation in the amount of $6,633.00 to the Shasta Library Foundation.

As with his prior donation, this money will be used to fund an internship position and to purchase books. Ericka Jones, President of the Shasta Library Foundation, accepted the check on behalf of the Foundation. Maddison spoke regarding her internship that was funded by Mr. Woodrum’s prior donation. She expressed her appreciation for the opportunity to work at the library.

The City Council thanked Mr. Woodrum for his generous donation.

Alex Bielecki expressed concern that citizens’ rights are being taken away.

Peggy Rebol, President of the Parks and Trails Foundation, spoke regarding the purpose of the Foundation and announced that the Foundation’s fundraiser, Vine and Dine will take place on May 11, 2023 and encouraged everyone to purchase a ticket. The proceeds from this year’s event will benefit the Redding Bike Park at Caldwell Park.

Packet Pg. 19
Attachment: Unofficial Minutes - Regular Session Meeting of April 4, 2023 (4(a)--Approve City Council Minutes) 172
04/04/2023

CONSENT CALENDAR
The following matters were considered inclusively under the Consent Calendar and each Report to City Council (staff report) is incorporated herein by reference:
4(a). Approve Minutes: Special Meeting – Closed Session of March 21, 2023; Special Meeting at 5:55 p.m. of March 21, 2023; and Regular Meeting of March 21, 2023. 4(b). Accept the following City of Redding Accounts Payable and Payroll Registers:
(1)Accounts Payable Register No. 17 for the period of March 1, 2023, through March 17, 2023 for a total of $13,285,694.54 for check numbers 178241 through 178719 inclusive, ACH Transfer numbers 19461 through 19538 inclusive, Wire Transfer numbers 12093 through 12127 inclusive; (2) Payroll Register No. 19 for the period of March 5,2023 through March 18, 2023, in the amount of $4,057,753.68 for electronic deposit transaction numbers 580745 through 581712 and check numbers 609006 through 609044 inclusive; SUMMARY TOTAL: $17,343,448.22
4(c). Accept the City of Redding Treasurer’s Report for February 2023. 4(d). Accept City of Redding Proof of Cash reconciliation and ACR133 report for the month of February 2023.
4(e). Adopt Ordinance No. 2658, an ordinance of the City Council of the City of Redding, amending Title 18 (Zoning), Chapter 18.31 (Residential Districts: “RE” Residential Estate, ‘RS” residential single family, and “RM” Residential Multiple Family) by amending Section 18.31.020 (Land Use Regulations), Chapter 18.40 (Development and Site Regulations) by amending Sections 18.40.010 (Antennas and Microwave Equipment – Telecommunications and Wireless Facilities), 18.40.160 (Swimming Pools), and

18.40.180 (Walls and Fences), Chapter 18.41 (Off-street Parking and Loading) by amending Section 18.41.040 (Off-street Parking Spaces Required), and Chapter 18.42 (Signs) by amending Section 18.42.040 (Standards for Certain Types of Signs) thereby updating the Zoning Code.

4.1(a). Approve and ratify the letter signed by the Mayor in support of HR 1586, Forest Protection and Wildland Firefighter Safety Act of 2023, which provides a Clean Water Act exemption to the usage of fire retardant to fight wildfires.

4.1(b). Item moved to 9.1(b) per the request of Council Member Mezzano.

4.2(b). Authorize and approve the following actions: (1) authorize the City Manager, or designee, to sign the Fourth Amendment to the Professional Services and Consulting Agreement (C9479) with No Boundaries Transitional Housing, Inc., to increase the contract by $551,310, thereby, increasing the total amount of the contract to $933,300, and extend the term to December 31, 2023; (2) find the project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301(d) Existing Facilities; and (3) find that the National Environmental Policy Act operating costs are categorically excluded, not subject to §58.5, and require no further environmental study or approval from the United States Department of Housing and Urban Development.

4.5(b). Approve the list of qualified on-call consultants to provide professional services related to City of Redding Electric Utility, consistent with City Manager Policy 22-03, Selection of Technical Consultants.

4.5(c). Approve the Second Amendment to the Master Services Agreement (C-5860) with Orcom Solutions LLC d/b/a VertexOne Business Services, the current provider of the hosted Customer Information System billing system for all City of Redding utilities, upgrading the current VSSP (customer web portal) platform to the VertexOne Digital product in the amount of $60,614 for a one-time implementation fee and monthly subscription fee of $2,420; and authorize the City Manager, or designee, to execute any necessary documents and amendments to complete the work.

Packet Pg. 20
Attachment: Unofficial Minutes - Regular Session Meeting of April 4, 2023 (4(a)--Approve City Council Minutes) 173
04/04/2023

4.9(a). Accept a grant from the State of California Officer Wellness and Mental Health Grant Program in the amount of $72,320 to fund programs that enhance officer wellness and mental health; and adopt Resolution 2023-028, a resolution of the City Council of the City of Redding, approving and adopting the 84th Amendment to City Budget Resolution No. 2021-078.

4.11(a). Authorize the following actions relative to Bid Schedule No. 5345 (Job No. 9618-83) Shastina Ranch Park: (1) award to SNL Group, Inc. in the amount of $2,460,708.34 for the Base Bid and an additional $62,000 for Additive Alternate 3 (Landscape MaintenanceBase Bid); (2) approve an additional $365,000 to cover the cost of administration and inspection fees; (3) approve $246,000 to provide construction contingency funding; and (4) authorize the City Manager to approve additional increases in either the construction management or construction contingency amounts up to a total of $50,000.

4.11(c). Accept update regarding the award of emergency construction contract for replacement of the Storm Drain System on Eastside Road and, in accordance with Public Contract Code Section 22050(c)(1), make a determination by a four-fifths vote that there is a need to continue the emergency work.

4.11(d). Authorize and approve the following actions relative to the Summary Vacation of Chevy Court (A-2022-02128): (1) adopt Resolution 2023-029, a resolution of the City Council of the City of Redding, summarily vacating Chevy Court and a Public Service Easement within the areas shown on Parcel Map No. 15-07 Phase 3A filed in Book 38 of Parcel Maps at Page 40, Shasta County Records (A-2022-02128) described in Exhibit A and depicted in Exhibit B; (2) find the action consistent with the General Plan; and (3) find the action categorically exempt from environmental review under the California Environmental Quality Act Guidelines, pursuant to Section 15035 - Minor Alterations in Land Use Limitations.

4.11(e). Authorize the City Manager to execute a subcontract between University Enterprises, Inc. and the City of Redding for Professional Engineering Services related to the Cascade Racquet Club Mutual Water Company’s consolidation into the City of Redding’s Water Utility.

4.15(b). Adopt Resolution 2023-030, a resolution of the City Council of the City of Redding, approving the Volunteer Program Report for 2022; and acknowledging April 16 through 22, 2023, as Volunteer Appreciation Week, in the City of Redding.

The following matters were considered inclusively under the Consent Calendar and each Report to City Council (staff report) is incorporated herein by reference.

A MOTION WAS MADE by Council Member Mezzano, seconded by Council Member Munns that the foregoing items on the Consent Calendar be accepted, acknowledged, adopted, approved, and/or authorized as recommended.

The Vote:

AYES: Council Members – Audette, Mezzano, Munns, Winter, and Dacquisto NOES: Council Members – None
ABSTAIN: Council Members – None
ABSENT: Council Members – None
Resolution Nos. 2023-028 through 2023-030, are on file in the Office of the City Clerk.

Ordinance No. 2658 is on file in the Office of the City Clerk.

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Attachment: Unofficial Minutes - Regular Session Meeting of April 4, 2023 (4(a)--Approve City Council Minutes) 174
04/04/2023

APPOINTMENTS

5.1. Mayor's appointments and reappointment to the City of Redding Building Code Board of Appeals (Board).

A MOTION WAS MADE by Council Member Mezzano, seconded by Council Member Winter, to approve the Mayor’s recommendations to make the following appointments and reappointments; all to serve four-year terms effective April 5, 2023 and ending December 31, 2026: (1) reappoint Todd McEfee to the Board to serve an additional four-year term; (2) appoint Andrew McCurdy to fill a vacancy created when Ben Abrahamsen completed his second full term and therefore is not eligible for reappointment; (3) appoint Rodrigo Menezes to fill a vacancy created when Mike Dormer completed his second full term and therefore is not eligible for reappointment; (4) appoint Ryan Russell to fill a vacancy created when Bill Nagel completed his term and chose not to seek an additional term; and (5) Appoint Jim Wright to fill the vacancy created when Robert Wagner, Jr. completed his second full term and therefore is not eligible for reappointment.

The Vote: Unanimous Ayes.

PUBLIC HEARINGS

6.1 Public Hearing to consider adopting a Resolution forming Landscape Maintenance District 01-23 (Rancho Industrial Park).

The hour of 6:00 p.m. having arrived, Mayor Dacquisto opened the Public Hearing.

The Affidavit of Publication – Notice of Public Hearing is on file in the Office of the City Clerk.

Mayor Dacquisto determined that no one present wished to address this matter, closed the public hearing, and instructed the City Clerk to tabulate the ballots.

Following tabulation, City Clerk Mize announced that one ballot was mailed and one ballot was received in favor of the formation of LMD 01-23 (Rancho Industrial Park), thereby enabling the City Council to proceed.

A MOTION WAS MADE by Council Member Mezzano, seconded by Council Member Audette, to adopt Resolution No. 2023-031, a resolution of the City Council of the City of Redding, (1) confirming results of the election of the assessment district; (2) confirming the assessments contained in the Engineer’s Report for said district; (3) ordering the formation of territory into Landscape Maintenance District 01-23 (Rancho Industrial Park); and (4) approving the annual assessments for Fiscal Year 2023-24, pursuant to the Landscaping and Lighting Act of 1972, commencing with Section 22500 of the Streets and Highways Code and levying and collecting of same for Fiscal Year 2023-24.

The Vote:

AYES: Council Members – Audette, Mezzano, Munns, Winter, and Dacquisto NOES: Council Members – None
ABSTAIN: Council Members – None
ABSENT: Council Members – None
Resolution No. 2023-031 is on file in the Office of the City Clerk.

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Attachment: Unofficial Minutes - Regular Session Meeting of April 4, 2023 (4(a)--Approve City Council Minutes) 175
04/04/2023
REGULAR CALENDAR: REPORTS & COMMUNICATIONS OF DEPARTMENTS,

BOARDS, COMMISSIONS AND COMMITTEES

9.1(b) Moved Item No. 4.1(b) from Consent Calendar to Regular Calendar Item No. 9.1(b) at Council Member Mezzano’s Request.

Consider authorizing the Mayor to send a letter to legislators affirming opposition to Senate Bill (SB) 423.

City Manager Tippin summarized the Report to City Council (staff report), incorporated herein by reference.

Sean Reese, Chuck Knauer, and Chris Martinez spoke in favor of SB 423 and asked the City Council not to sending a letter in opposition to legislators.

A discussion amongst the council ensued.

A MOTION WAS MADE by Council Member Winter, seconded by Council Member Munns, to: (1) authorize the Mayor to send a letter to legislators affirming the City of Redding’s opposition to Senate Bill (SB) 423, which proposes to limit local government control by requiring overreaching ministerial approval of certain multi-family housing developments, allowing for the bypassing of the California Environmental Quality Act, and eliminating public input; and (2) authorize additional letters of opposition for future legislation that may continue to place limits on, or support of legislation that encourages, the authority of local government to maintain control of realistic zoning and permitting within the community.

The Vote: Unanimous Ayes.

9.6(a). Consider approval of the City of Redding Turtle Bay Boat Ramp Project.

Community Services Department Senior Project Coordinator Travis Menne summarized the Report to City Council (staff report), and provided a PowerPoint presentation, both incorporated herein by reference.

Andrew Harris, fly fishing guide, Kurt Mitchell, Bryan Quick, Craig Smith, Lance Law, representing North Country Raft Rentals, Terry Jepsen, representing The Fly Shop, Michael Caranci, representing Trout Unlimited, and Andrew Harris, fly fishing guide, spoke in favor of the project.

Cindy Schonholtz, General Manager of the Redding Rodeo Association, spoke in opposition to the project.

At Council Member Mezzano request, Michael Harris, Department of Fish and Wildlife, noted that protecting the salmon spawning area is vital to their survival and that the Department favors continuing with the project.

A discussion from the Council ensued.

A MOTION WAS MADE by Council Member Audette, seconded by Council Member Winter, to approve and authorize the following actions relative to the Turtle Bay Boat Ramp Project: (1) adopt the Mitigated Negative Declaration and the Mitigation Monitoring and Environmental Commitment Program (Attachment C); (2) approve the Turtle Bay Boat Ramp Project as described and find it satisfies the requirements of the California Environmental Quality Act Guidelines §15074; and (3) direct staff to return to the Council, once necessary permits are obtained, for further direction relative to proceeding with the project.

The Vote:

AYES: Council Members – Audette, Mezzano, Munns, Winter NOES: Council Members – Dacquisto
RECUSE: Council Members – None
ABSENT: Council Members – None
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Attachment: Unofficial Minutes - Regular Session Meeting of April 4, 2023 (4(a)--Approve City Council Minutes) 176
04/04/2023

9.11(g). Consider City of Redding's response to the Shasta County Grand Jury Report regarding Enterprise Park.

Chuck Aukland, Director of Public Works, summarized the Report to City Council (staff report), and incorporated herein by reference.

A MOTION WAS MADE by Council Member Mezzano, seconded by Council Member Audette, to authorize the Mayor to sign and send a response letter to the 2022-23 Shasta County Grand Jury concerning its report titled “Enterprise Park” in the City of Redding, regarding the City’s utilization of the lower level of Enterprise Park as a disposal area for assorted types of debris.

The Vote: Unanimous Ayes

9.11(h). Consider Ordinance amending Redding Municipal Code (RMC) Title 11 (Vehicles and Traffic), Chapter 11.16 (One-Way Streets and Alleys).

A MOTION WAS MADE by Council Member Winter, seconded by Council Member Munns, to authorize and approve the following: (1) offer Ordinance No. 2659, an ordinance of the City Council of the City of Redding, amending RMC Section 11.16.010 (One-Way Streets and Alleys - Designated), relating to addressing one-way traffic in the City of Redding’s downtown core, for first reading by title only, waived the full reading; and authorized the City Attorney to prepare, and the City Clerk to publish a summary of the ordinance; and (2) find that the action is exempt from review under the California Environmental Quality Act Guidelines, pursuant to Section 15061(b)(3) – Common Sense Exemption..

The Vote:

AYES: Council Members – Audette, Mezzano, Munns, Winter, and Dacquisto
NOES: Council Members – None
RECUSE: Council Members – None
ABSENT: Council Members – None
City Attorney DeWalt read Ordinance No. 2659 by title only.

Ordinance No. 2659 is on file in the Office of the City Clerk.

9.15(a). Consider Resolution approving the Memorandum of Understanding and Salary Schedules with the International Brotherhood of Electrical Workers - Power Production.

A MOTION WAS MADE by Council Member Munns, seconded by Council Member Audette, to adopt Resolution No. 2023-032, a resolution of the City Council of the City of Redding, approving the Memorandum of Understanding and Salary Schedules with the International Brotherhood of Electrical Workers - Power Production Unit (IBEW PP), for a three-year term ending April 4, 2026; and approving the IBEW PP Schedule of Wage Rates effective April 5, 2023.

The Vote:

AYES: Council Members – Audette, Mezzano, Munns, Winter, and Dacquisto
NOES: Council Members – None
RECUSE: Council Members – None
ABSENT: Council Members – None
Resolution No. 2023-032 is on file in the Office of the City Clerk.

COUNCIL TRAVEL REPORT(S)
Pursuant to Assembly Bill 1234, City Council Members attendance at conferences and/or meetings at City expense require disclosure.

Vice Mayor Mezzano attended the League of California Cities Sacramento Valley Division Membership Meeting on March 31, 2023, held in Colusa California.

ADJOURNMENT
There being no further business, at the hour of 8:30 p.m. Mayor Dacquisto declared the meeting adjourned.

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Attachment: Unofficial Minutes - Regular Session Meeting of April 4, 2023 (4(a)--Approve City Council Minutes) 177
04/04/2023
APPROVED:
_______________________________
Michael Dacquisto, Mayor
ATTEST:
_______________________________
Pamela Mize, City Clerk
Packet Pg. 25
Attachment: Unofficial Minutes - Regular Session Meeting of April 4, 2023 (4(a)--Approve City Council Minutes)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Accept City of Redding Accounts Payable Register No. 22; and Payroll Register No. 24.

Fiscal Impact
There is no fiscal impact to accepting the registers.

Alternative Action
The City Council could choose to not accept the registers and provide alternate direction to staff.

Background/Analysis
Attached are the Accounts Payable and Payroll Registers as follows:

Accounts Payable:
(1) Register Number 22 for the period May 13, 2023 – May 31, 2023, in the amount of $32,083,424.69.

Payroll:
(1) Register Number 24 for the period May 14, 2023 – May 27, 2023, in the amount of $4,161,898.99.

Environmental Review
This is not a project defined under the California Environmental Quality Act, and no further action is required.

Council Priority/City Manager Goals
MEETING DATE: June 20, 2023
ITEM NO. 4(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4(b)--City of Redding Accounts Payable and Payroll Registers.

Greg Robinett, Director of
Finance/City Treasurer
Packet Pg. 26
Report to Redding City Council June 7, 2023
Re: 4(b)--Accounts Payable and Payroll Registers Page 2 • This agenda item is a routine operational item.

Attachments
Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) Packet Pg. 27
Packet Pg. 28
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 29
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 30
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 31
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 32
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 33
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 34
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 35
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 36
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 37
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 38
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 39
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 40
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 41
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 42
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 43
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 44
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 45
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 46
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 47
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 48
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 49
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 50
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 51
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 52
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 53
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 54
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 55
Attachment: Accounts Payable Register No. 22 and Payroll Register No. 24 (available online) (4(b)--Accounts Payable and Payroll Registers)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Adopt Ordinance No. 2660, an ordinance of the City Council of the City of Redding, amending Title 18 (Zoning), Chapter 18.43 (Standards for Specific Land Uses) by amending Section

18.43.180 (Short Term Rentals), thereby making changes to the Standards for Regulation of Short-Term rentals.

Attachments
^Ord. 2260 - Title 18 Short Term Rentals
MEETING DATE: June 20, 2023
ITEM NO. 4(c)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4(c)--Adopt Ordinance No. 2660, Amending the City's Zoning Ordinance regarding the Short-Term Rental Ordinance (Redding Municipal Code (RMC) Section

18.43.180).

Jeremy Pagan, Development
Services Director/Bldg
Official
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DRAFT NEW ORDINANCE
ORDINANCE NO. 2660
AN ORDINANCE OF THE CITY OF REDDING AMENDING TITLE 18
(ZONING), CHAPTER 18.43 (STANDARDS FOR SPECIFIC LAND USES) BY AMENDING SECTION 18.43.180 (SHORT TERM RENTALS),

THEREBY MAKING CHANGES TO THE STANDARDS FOR

REGULATION OF SHORT-TERM RENTALS
THE CITY COUNCIL OF THE CITY OF REDDING DOES ORDAIN AS FOLLOWS:

Section 1. Title 18 (Zoning), Chapter 18.43 (Standards for Specific Land Uses), Section 18.43.180 is amended to read in its entirety as follows:

18.43.180 Short-Term Rentals
A. The purpose of this Section is to establish an appropriate permitting process and standards for Short-Term Rental of dwelling units throughout the City; to provide a visitor experience and accommodation as an alternative to the typical hotel, motel, and bed and breakfast accommodations customarily permitted in the City; to minimize potential negative secondary effects of Short-Term Rental use on surrounding residential neighborhoods; to retain the character of the neighborhoods in which any such use occurs; and ensure the payment of required transient occupancy taxes.

B. Types of Short-Term Rentals. For purposes of this Section, the following Short-Term Rental facilities are established:

1. Hosted Homestay. An owner-occupied “Dwelling Unit,” as defined by Section

18.61.020 under “Residential Structure Types” and excluding apartment units and duplexes, with more than one habitable room, where, for compensation, individual overnight room accommodations are provided for a period of less than thirty (30) days.

2. Vacation Rental. An entire “Dwelling Unit,” as defined by Section 18.61.020 under “Residential Structure Types” and excluding apartment units and duplexes, where, for compensation, overnight accommodations are provided for a period of less than thirty (30) days and the owner may or may not reside within the dwelling unit for the term of the rental.

C. Short-Term Rental Permit Requirements. No person shall use, advertise, or market for use, any dwelling unit on any parcel in any zoning district for Short-Term Rental purposes without first obtaining approval as required by this Section. The following approval process is established:

First Reading: 6/6/23 JP
For Adoption: 6/20/23 4-1
CC Agenda Item 4(c)
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Attachment: ^Ord. 2260 - Title 18 Short Term Rentals (4(c)--Adopt Ordinance No. 2660 Amending the City's Zoning Ordinance regarding the

1. Hosted Homestay: This use is permitted within all zoning districts subject to obtaining a Zoning Clearance from the Director and providing an affidavit certifying that the owner understands, agrees to, and is in compliance with the requirements of this Section. Applicants may be required to provide a site plan or other information determined necessary by the Director to determine compliance with this Section and shall pay an application fee as may be established by resolution of the City Council. Permits for Hosted Homestays shall expire twelve (12) months from issuance and are subject to a requirement for renewal in accordance with this Section.

2. Vacation Rental: This use is permitted within all zoning districts subject to obtaining a Site Development Permit issued by the Director in accordance with the provisions of Chapter 18.11, Common Procedures and Chapter 18.13, Site Development Permits of this Code, except that Site Development Permits for Vacation Rentals shall expire twelve (12) months from issuance and are subject to a requirement for renewal in accordance with this Section.

D. Districts in Which Permitted. The regulations of this chapter apply to Short-Term Rentals in all zoning districts.

E. General Requirements - Hosted Homestay.

1. No more than one dwelling unit on a lot may be used at any one time.

2. A maximum of two rooms may be available for rent at any time. A floor plan shall be submitted with the affidavit indicating the rooms for rent.

3. Occupancy shall be limited to a maximum of two adults per rented room. Room rental shall be limited to a maximum of 180 rental days per calendar year.

4. The owner shall be the applicant, and other than for purposes of daily routines, the applicant must occupy the residence at all times when rooms are being provided for rent.

5. At the time of permit renewal, the property owner shall attest they understand and agree to the Hosted Homestay requirements by signing the Hosted Homestay Affidavit available at the Development Services Department and any payment due must be remitted.

6. Except as set forth in Section 18.43.060 as it relates to licensed bed and breakfast inns, no owner shall cook, prepare or serve for consumption food of any kind for consumption by the Short-Term-Rental tenant.

7. The applicant shall state in the application the number of on-site parking spaces available to tenants, but in no case shall it be less than two on-site spaces. ShortTerm-Rental tenant parking spaces shall be within the primary driveway or other Packet Pg. 58
Attachment: ^Ord. 2260 - Title 18 Short Term Rentals (4(c)--Adopt Ordinance No. 2660 Amending the City's Zoning Ordinance regarding the on-site location. No tenant parking in excess of this number of on-site parking spaces is permitted. No tenant is permitted to park on the street. External changes to a property such as converting significant areas of front yard landscape for purposes of meeting parking requirements is not allowed.

8. All required on-site parking spaces (including garage parking if identified at time of approval) shall be accessible and available to Short-Term-Rental tenants at all times during the rental periods.

9. Short-Term Rentals shall meet all applicable building, health, fire and related safety codes at all times, including provision of working smoke and carbon monoxide detectors.

10. The applicant shall post emergency evacuation instructions and "house policies" within each Short-Term-Rental tenant bedroom. The house policies shall be included in the rental agreement, and shall be enforced by the applicant. At a minimum, the house policies should:
a. Reinforce the City of Redding’s Noise Standards (RMC Section 18.40.100) by establishing outdoor "quiet hours" between 10:00 p.m. and 7:00 a.m. to minimize disturbance to neighboring residences. Outdoor activities are prohibited during “quiet hours.”
b. Require that Short-Term-Rental tenant vehicles be parked on the premises, not the street in compliance with this Section.

11. The property shall not be used to host non-applicant related weddings, parties, and other similar events.

12. On-site advertising signs or other displays indicating that the residence is being utilized as a Short-Term Rental are prohibited.

13. No person shall advertise a Short-Term Rental on any media platform when such advertisement or notice contains an inaccurate or misleading statement of the requirements of, or indicate amenities not allowed by the Redding Municipal Code including the number of parking spaces.

14. All advertisements shall include the number of permissible parking spaces.

15. A City business license shall be obtained and transient occupancy taxes paid in accordance with Chapter 4.12 as required. All advertising for any Short-Term Rental shall include the City of Redding transient occupancy tax number and the City of Redding business license number assigned to the applicant. With submittal of transient occupancy taxes, the applicant shall also submit a statement indicating the number of Short-Term-Rental tenant stays, and the number of Short-TermRental tenants for the reporting period.

Packet Pg. 59
Attachment: ^Ord. 2260 - Title 18 Short Term Rentals (4(c)--Adopt Ordinance No. 2660 Amending the City's Zoning Ordinance regarding the

16. The permit is not transferrable to a subsequent property owner or to another property.

17. This ordinance shall not be construed as waiving or otherwise impacting the rights and obligations of any individual, group, or the members of any homeowner’s association, as defined, to comply with or enforce CC&R’s and no permit shall be issued when it is demonstrated by substantial evidence that issuance of a permit will be in contradiction to any recorded CC&R’s or other record providing record notice of a restriction on the use of the property.

F. General Requirements - Vacation Rentals.

1. With the exception of items 1 through 6 listed in Section 18.43.180(E) above, the General Requirements provisions for Hosted Homestays shall apply to Vacation Rentals.

2. The following additional provisions shall also be applicable to Vacation Rentals which may be supplemented by requirements established by the Director with approval of the required Site Development Permit as necessary to maintain compatibility of the use with the surrounding properties. a. A Vacation Rental shall not be permitted on properties as follows:

1. Containing an Accessory Dwelling Unit with a building permit application submitted on or after January 1, 2020 in compliance with Government Code Section 65852.2, as may be amended from time to time; or

2. Within a six hundred (600) foot radius of an existing permitted Vacation Rental except that, at the discretion of the Director or appellate body as the case may be, within a three hundred (300) foot radius of an existing Vacation Rental when there is a buffer such as a major arterial, rail right-of-way, flood control channel or stream corridor between the Vacation Rental units.
b. The total number of Vacation Rentals in the City shall not exceed four hundred (400) rentals at any one time.
c. The owner shall be the applicant and any natural person signing an application on behalf of an owner shall have legal authority to bind the owner.
d. A Vacation Rental shall not be rented to multiple separate parties concurrently.

Packet Pg. 60
Attachment: ^Ord. 2260 - Title 18 Short Term Rentals (4(c)--Adopt Ordinance No. 2660 Amending the City's Zoning Ordinance regarding the e. The applicant shall keep on file with the City the name, telephone number, and email address of a local contact person who shall be responsible for responding to questions or concerns regarding the operation of the Vacation Rental. This information shall be posted in a conspicuous location within the Vacation Rental dwelling. The local contact person shall be available twenty-four hours a day to accept telephone calls and respond physically to the Vacation Rental within forty-five (45) minutes, if necessary. The name and contact information of the local contact person will be made available to the public. The contact information shall be kept current at all times. f. Occupancy shall be limited to a maximum of two (2) adults per rented room. g. The maximum number of persons on the property at any time shall be limited to sixteen (16) persons.
h. Prior to issuance of a permit, a physical inspection of the dwelling unit and property shall be conducted by City staff.
i. Each operator shall maintain a record of each Short-Term-Rental tenant’s vehicle(s). The record shall minimally consist of the rental period, the license plate, make, model, and color for each vehicle. The record shall be made available at any time upon request by the City.
j. The requirements listed in Subdivisions E(7), E(8), E(14), and F(2)(a)(2) shall not apply to a Vacation Rental located within Downtown Redding Specific Plan Core District. Notwithstanding Subdivision B(2), an apartment unit located in the Downtown Redding Specific Plan Core District may be permitted as a Short-Term Rental.

G. Application Required.

1. Where a Site Development Permit is required by this Section, applicants for a Short-Term Rental use shall pay the application fee established by resolution of the City Council and apply for a permit in accordance with the provisions of Chapter

18.11 (Common Procedures), except that notices of the Vacation Rental application shall be sent to all owners of real property within six hundred (600) feet of the applicant’s property for a ten (10) business day notification period.

2. In making a determination to approve, conditionally approve, or deny any application, including an application for renewal, for a Hosted Homestay or Vacation Rental, the Director, or appellate body as the case may be, may also consider any factor pertinent to the health, safety and welfare of the immediate neighborhood or public generally including, but not limited to, ability to comply with the provisions set forth in this Section, evidence of operation in violation with this Section, complaints of neighbors, code enforcement activity, timeliness of business permit renewal, timeliness or non-payment of transient occupancy tax, Packet Pg. 61
Attachment: ^Ord. 2260 - Title 18 Short Term Rentals (4(c)--Adopt Ordinance No. 2660 Amending the City's Zoning Ordinance regarding the proximity of the property to group homes, residential care facilities, and other neighborhood and site characteristics.

3. Appeal of any determination to approve or deny any application, including an application for renewal, shall be in accordance with Section 18.11.090, except for the appeal period shall be ten (10) business days.

H. Suspension and Termination.

1. The Director, or appellate body, shall apply the criteria set forth in Section

18.43.180(G)(2) in determining whether any permit issued pursuant to this Section shall be suspended or terminated. Notice shall be provided to the applicant pursuant to the procedure set forth in Section 18.11.060.

2. Appeal of the suspension or termination by the Director of a Vacation Rental Permit shall be in accordance with the requirements of Section 18.11.090.

3. Appeal of the suspension or termination by the Director of a Hosted Homestay Permit must be made to the Planning Commission within ten (10) calendar days of service of the Director’s decision, and appeal of the Planning Commission decision to the City Council must be made within ten (10) calendar days of service of the Planning Commission’s determination. Decisions of the City Council are final, and all challenging a decision of the Director must exhaust all remedies set forth in this Section 18.43.180(H)(3) prior to bringing a challenge pursuant to Code of Civil Procedure section 1094.5.

4. Service shall be deemed effective upon the earliest of: 1) announcement by the approving or appellate body of the decision in the presence of the appellant; 2) personal service on the appellant of a written notice of decision; or 3) deposit of a written notice of decision in the United States Mail.

I. Legal Non-Conforming Uses

1. Continuation and abandonment of short-term rentals which are legal nonconforming uses shall not be governed by Section 18.46.020. The sole allowances for continuation of a legal non-conforming use as a short-term rental are by timely renewal of a valid and current short-term rental permit or as follows:
a. A temporary hardship allowance of not more than six (6) months may be granted by the Director of Development services, or designee, if: 1) a medical condition of the permittee, spouse, domestic partner, or immediate family member jeopardizes the ability of the owner to operate the ShortTerm Rental; or 2) the death of a spouse, domestic partner, or immediate family member of the permittee jeopardizes the ability of the permittee to operate the Short-Term Rental.

Packet Pg. 62
Attachment: ^Ord. 2260 - Title 18 Short Term Rentals (4(c)--Adopt Ordinance No. 2660 Amending the City's Zoning Ordinance regarding the b. A long-term rental allowance may be granted by the Director of Development Services, or designee, if the permittee provides proof of a long-term lease of twelve (12) months or longer prior to the expiration of the Short-Term Rental permit. This exemption may be repeated if the conditions set forth in this subsection are met. The length of an exemption shall not exceed the term of the lease or twenty-four (24) months, whichever is shorter. If an allowance is granted pursuant to this subdivision, the existing permit shall terminate per its term. However, the Director of Development Services shall consider said permit to be “active” solely for the purpose of allowing the permittee to reapply for a permit after the allowance granted pursuant to this subdivision has lapsed.

J. Enforcement and Remedies. Enforcement of the provisions of this Section include the civil and equitable remedies as permitted by state law, the issuance of a citation and fine, or other legal remedy as provided by Chapter 1.12 through 1.15, inclusive, of the Redding Municipal Code. Upon notification by the City, any Short-Term Rental operating in violation of the requirements of this Section must terminate operations immediately.

Further, a Site Development Permit issued under the authority of this Section may be revoked in accordance with the procedures established in Chapter 18.11 (Common Procedures).

Section 2. The Council hereby finds and determines that the enactment of this Ordinance is exempt from review pursuant to the California Environmental Quality Act (Public Resources Code section 21000 et seq.) (“CEQA”) because it has no potential to result in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. This Ordinance is exempt from CEQA pursuant to the “common sense” exemption (14 CCR 15061(b)(3)), as it can be seen with certainty that there is no possibility that the adoption of the Ordinance will have a significant effect on the environment.

Section 3. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance and the application of such provision will remain in effect to the extent permitted by law.

Section 4. This Ordinance shall take effect thirty (30) calendar days after the date of its adoption, and the City Clerk shall certify to the adoption thereof and cause publication according to law.

Packet Pg. 63
Attachment: ^Ord. 2260 - Title 18 Short Term Rentals (4(c)--Adopt Ordinance No. 2660 Amending the City's Zoning Ordinance regarding the I HEREBY CERTIFY that the foregoing ordinance was introduced and read by the City Council of the City of Redding at a regular meeting on the 6th day of June, 2023, and was duly read and adopted at a regular meeting on the ____ day of _______, 2023, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:
___________________________________
MICHAEL DACQUISTO, Mayor
ATTEST: FORM APPROVED:
_______________________________ ____________________________________ PAMELA MIZE, City Clerk BARRY E. DeWALT, City Attorney
DATE ATTESTED: June ____, 2023
Packet Pg. 64
Attachment: ^Ord. 2260 - Title 18 Short Term Rentals (4(c)--Adopt Ordinance No. 2660 Amending the City's Zoning Ordinance regarding the

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Approve and authorize the following actions regarding the potential sale of real property located at 3811 El Portal (Assessor’s Parcel Number 070-100-027) (1) Accept a Non-Binding Letter of Intent with Michael Manola regarding the potential sale of property owned by the City of Redding located at 3811 El Portal; (2) Authorize staff to obtain a Broker’s Opinion of Value and the City Manager to negotiate and execute a purchase and sale agreement and all subsequent documentation to facilitate the disposition of the property; and
(3) Find the sale of the City-owned property is categorically exempt from review under the California Environmental Quality Act Guidelines Section 15312 (Surplus Government Property Sales).

Fiscal Impact
Upon sale of the property, the proceeds would go to the General Fund. The potential buyer has offered $500; however, the sales price must be supported by a Broker’s Opinion of Value.

Alternative Action
The City Council could choose to not sell the property and the City of Redding (City) would continue to hold full responsibility for the property and its upkeep.

Background/Analysis
Michael Manola submitted a Letter of Intent to purchase a small remnant parcel owned by the City and located at 3811 El Portal, which is adjacent to his property. The parcel is a remnant remaining from the acquisitions that allowed for the expansion of Interstate 5 within the Loma Vista Subdivision. The parcel is approximately 2900 square feet and triangular in dimension.

The City would retain any easements necessary to maintain access to public works infrastructure with the sale of the property.

MEETING DATE: June 20, 2023
ITEM NO. 4.1(a)
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 4.1(a)--Consider Non-Binding Letter of Intent to Purchase 3811 El Portal Barry Tippin, City Manager
Packet Pg. 65
Report to Redding City Council June 20, 2023
Re: 4.1(a)--Consider Non-Binding Letter of Intent to Purchase 3811 El Portal Page 2 While there is no known value for the property, it is currently vacant and in need of consistent clearing for debris and encampments to prevent blight. An updated appraisal is a required condition of the sale of any City-owned property, and the ultimate sales price will be set by the value presented within it. Since this parcel is only 2900 square feet and its corresponding fair market value is negligible, it qualifies for a Broker’s Opinion of Value to set the sales price.

Pursuant to State of California legislation, parcels must be designated surplus by adhering to specific surplus property procedures. The City has complied with Government Code Section 54220 and has fulfilled the requirements set by the California Department of Housing and Community Development to ensure the law is adhered to with regard to the sale of surplus properties, including the property located at 3811 El Portal. No further actions are needed to proceed with the disposition of the property.

Environmental Review
The sale of this City-owned property presents no significant impact on the environment and is therefore categorically exempt from review under the California Environmental Quality Act Guidelines Section 15312 (Surplus Government Property Sales). No further action is required Council Priority/City Manager Goals
• Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”
Attachments
^Letter of Intent
^3811 El Portal
Packet Pg. 66

LETTER OF INTEREST
May 5, 2023
City of Redding
777 Cypress Avenue
Redding CA 96001
Attn: Janelle Galbraith
RE: 3811 El Portal lot; surplus lot
Dear City of Redding,
I recently bought the lot at 3899 El Portal to build a home there. I realized the city owned the lot to the north of me (adjacent) at 3811 El Portal, APN: 070-100-027. Then during a visit to Public Works and Permit counter regarding my lot, I learned the small parcel at 3811 El Portal was a surplus lot.

There are several issues with the lot that the city may or may not be aware of. This is a remanent lot from the Loma Vista Subdivision in 1953 from when I-5 came through.

1. The lot is only 2900sf; the lot’s triangular dimensions render it unbuildable with the zoning/setbacks and additionally the CC&Rs.

2. Sewer and water lines are not readily available curbside and will require line extension to acquire connections. Additionally, the sewer line on El Portal will require a drop manhole to be installed to avoid the storm drain line that cuts across El Portal.

The city has a mandatory hookup ordinance for water and sewer when the lot boundary is within 200ft of existing.

3. There have been homeless campers on the city’s lot on 3811 El Portal. Myself and other residents in the neighborhood have had to call RPD, and trash accumulates along the streets sometimes.

4. There is an 18-inch storm drainpipe that cuts across the north corner of the lot. If I can acquire the lot, I would offer a 10-foot-wide easement, center line of the storm drainpipe, exclusively for the storm drainpipe.

I would like to offer $500 for the lot.

Sincerely,
Michael Manola
623-299-6637
655 Hilltop Drive
Redding CA 96003
Packet Pg. 67
Attachment: ^Letter of Intent (4.1(a)--Consider Non-Binding Letter of Intent to Purchase 3811 El Portal)

SUBJECT PROPERTY
3811 EL PORTAL
Packet Pg. 68
Attachment: ^3811 El Portal (4.1(a)--Consider Non-Binding Letter of Intent to Purchase 3811 El Portal)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions regarding the sale of real property located at 6550 Lockheed Drive, (Assessor Parcel No. 054-280-008) to the County of Shasta:
(1) Authorize the City Manager to negotiate and execute a purchase and sale agreement in the amount of $265,000 with the County of Shasta relative to City of Redding (City)-owned property located at 6550 Lockheed Drive;
(2) Authorize the City Manager to execute all related documents needed to complete the transaction; and
(3) Find that the sale of the property by the City is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15312 of the CEQA Guidelines (Surplus Government Property Sales).

Fiscal Impact
Staff received an appraisal report for 6550 Lockheed Drive (APN 054-280-008) with a valuation of $265,000. The City is obligated to expend the amount realized from the sale of the property for specific items or improvements at Redding Regional Airport within 5 years of the close of escrow.

Alternative Action
The City Council (Council) could choose not to authorize the City Manager to negotiate and execute the sale and provide staff with an alternate direction.

Background/Analysis
On April 18, 2023, Council authorized the sale of the City-owned property to the County of Shasta subject to an appraisal - the associated staff report is attached. The County of Shasta owns MEETING DATE: June 20, 2023
ITEM NO. 4.1(b)
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 4.1(b)--Authorize the City Manager to negotiate terms of sale and execute all documents necessary to complete the sale transaction of property located at 6550 Lockheed Drive (APN 054-280-008) to the County of Shasta
Barry Tippin, City Manager
Packet Pg. 69
Report to Redding City Council June 15, 2023
Re: 4.1(b)--Authorize the City Manager to negotiate and execute the sale of 6550 LockheedPage 2 the adjacent parcel located at 6590 Lockheed Drive and intends to utilize the subject property to expand its emergency operations center and co-locate South County Patrol services.

The County of Shasta has requested that the City expediate the approval of the sale of the property since the following Council meeting is canceled due to the July 4th, holiday.

Environmental Review
This is not a project defined under the California Environmental Quality Act and no further action is required.

Council Priority/City Manager Goals
• Communication and Transparency – “Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”
Attachments
^Previous Staff Report - April 18, 2023 - Item No. 9.1(c) Packet Pg. 70

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Approve the sale of City-owned property located at 6550 Lockheed Drive (APN 054-280-008) to the County of Shasta; and provide direction relative to determination of terms and conditions of the sale.

Fiscal Impact
There is no fiscal impact associated with this action. If a sale of property occurs, there will be a positive fiscal impact to the Airports Division.

Alternative Action
The City Council (Council) could choose not to sell the property.

Background/Analysis
The County of Shasta presented a letter to the City of Redding regarding the potential purchase of property located at 6550 Lockheed Drive, (APN 054-280-008). The subject property is included in the Redding Municipal Airport portfolio (see map attached). As such, it has already been declared by resolution and approved by the California Department of Housing and Community Development as Exempt Surplus per the Surplus Land Act, Government Code section 54221 (f) and (g). At this time, there is no pre-determined use for the property, and it has been released from federal obligations via the Federal Aviation Administration.

As stated in its letter of interest, the County of Shasta owns the adjacent parcel located at 6590 Lockheed Drive and intends to expand its Emergency Operations Center and co-locate South County Patrol services.

MEETING DATE: April 18, 2023
ITEM NO. 9.1(c)
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 9.1(c)--Consider the sale of City-owned property located at 6550 Lockheed Drive (APN 054-280-008) to the County of Shasta.

Barry Tippin, City Manager
Packet Pg. 71
Attachment: ^Previous Staff Report - April 18, 2023 - Item No. 9.1(c) (4.1(b)--Authorize the City Manager to negotiate and execute the sale of Report to Redding City Council April 11, 2023
Re: 9.1(c)--Consider the Sale of City Owned Property located at 6550 Lockheed Drive (APN 054-280-008) Page 2
Should the Council approve action to authorize staff to proceed with the sale of the property, terms and conditions negotiations will commence. Any sale of the property is subject to a current valid appraisal per local and federal guidelines that include: the City is obligated to expend the amount realized from the sale of the property for specific items or improvements at Redding Regional Airport (RDD) within 5 years of the close of escrow; the City shall not permit access to RDD from the subject property; City will file an FAA Form 7460-1, Notice of Proposed Construction or Alteration which requires the new owner to coordinate any improvements with RDD; and covenants, conditions, restriction and reservations further described in the Instrument of Release (C-3722).

Environmental Review
This is not a project defined under the California Environmental Quality Act (CEQA), and no further action is required.

Council Priority/City Manager Goals
• Communication and Transparency – “Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”
Attachments
^County of Shasta Notice of Interest in Purchasing Property ^Subject Property 6550 Lockheed
RDD-LandRelease-2000 C-3722
Packet Pg. 72
Attachment: ^Previous Staff Report - April 18, 2023 - Item No. 9.1(c) (4.1(b)--Authorize the City Manager to negotiate and execute the sale of

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following relative to Whole Person Care (WPC) Program funds from the Shasta County Health and Human Services Agency:
(1) Accept WPC Program funds in the amount of $800,000 to assist with the development costs of a mixed-use building consisting of at least 12 income-eligible residential units and commercial space at 815 and 825 Parkview Avenue and 2520 Leland Avenue; (2) Authorize the Mayor, or designee, to execute the associated WPC Program Subaward Agreement;
(3) Authorize the City Manager, or designee, to allocate funds, execute any other agreement and any other documents necessary to complete the project transaction; (4) Find that applying for and accepting grant funding is not considered a project under the California Environmental Quality Act; and
(5) Find that applying for and accepting grant funding is exempt from review under the National Environmental Policy Act under Title 24 CFR 58.34(a)(3).

Fiscal Impact
WPC Program funds are grant funds with no match obligation. However, the grant funds require a 20-year commitment to two units specifically for Medi-Cal beneficiaries who are mentally ill and experiencing homelessness or at-risk of homelessness. The City’s cost of monitoring and reporting for these households, will be funded by a monitoring fee of at least $20,000 that will be passed on to the developer of the project.

In addition to these funds, the project may be awarded Regional Early Action Plan (REAP 2.0) funds in the amount of $750,000. These funds are in the process of being approved by the California Department of Housing and Community Development. This Project has no impact to the General Fund.

MEETING DATE: June 20, 2023
ITEM NO. 4.2(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.2(a)--Authorization to accept Whole Person Care Program Funds from Shasta County Health and Human Services Agency.

Steve Bade, Assistant City
Manager
Packet Pg. 73
Report to Redding City Council June 13, 2023
Re: 4.2(a)--Accept Subaward of Whole Person Care funds from Shasta County HHSA Page 2 Alternative Action
The City Council (Council) could choose not to accept the WPC funds, and replacement funds would need to be identified to complete the proposed development.

Background/Analysis
On February 1, 2012, the Redding Redevelopment Agency (RRA) was dissolved pursuant to Health and Safety Code Sections 34161-34166 and the Council elected for the City to serve as the Successor Housing Agency to the former RRA pursuant to Resolution 2012-0007. All former RRA housing property assets were transferred to the City. On June 1, 2021, the Council through Resolution 2021-061 declared the parcels located at 815 and 825 Parkview Avenue, and 2520 Leland Avenue (collectively, the Property) were surplus and pursuant to the Surplus Land Act, they have been cleared for disposition by the California Department of Housing and Community Development.

Although there has been past interest in the property including one offer to purchase, the sale did not materialize and to date, the property has not been transferred. Recently, staff applied for and was awarded REAP 2.0 funds in the amount of $750,000 for the development of a mixed-use development that will consist of at least 12 units of income-eligible housing and retail/commercial space at the subject property (Project).

In a quest to secure more funding for the project, staff reached out to Shasta County to inquire if there were any grant funds that may assist with the financing of the project. Shasta County at its meeting of May 16, 2023, approved a contribution of $800,000 of WPC funds towards the project. WPC funds stem from the 2019-20 California State Governor’s Budget that included $100 million for WPC programs that provide housing services for individuals who are experiencing homelessness, or are at risk of homelessness, and are suffering from mental health issues. Shasta County was allocated $1,198,355. Acceptance of the WPC funding will allow the project to assist the most vulnerable of the City’s homeless population.

To facilitate the potential project, staff will publish a request for proposals to select a qualified developer. The successful developer and/or eventual project operator will be required to provide supportive services to the project tenants.

Environmental Review
Applying for and accepting funding is not considered a project under the California Environmental Quality Act (CEQA). Any project that is developed will be reviewed for CEQA compliance once the details are known. No further action is required at this time.

Under the National Environmental Policy Act (NEPA), administrative and management activities such as applying for and accepting funding are considered exempt activities and no further action is required. The construction project will be reviewed for NEPA requirements when a proposal and scope of work is known.

Council Priority/City Manager Goals
Packet Pg. 74
Report to Redding City Council June 13, 2023
Re: 4.2(a)--Accept Subaward of Whole Person Care funds from Shasta County HHSA Page 3 • Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
• Economic Development- “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community”
Attachments
Signed-on-Paper_WPC_PassThrough
Packet Pg. 75
DocuSign Envelope ID: 1D26161C-7AC9-49A6-B127-C921877D850F Packet Pg. 76
Attachment: Signed-on-Paper_WPC_PassThrough (4.2(a)--Accept Subaward of Whole Person Care funds from Shasta County HHSA) DocuSign Envelope ID: 1D26161C-7AC9-49A6-B127-C921877D850F Packet Pg. 77
Attachment: Signed-on-Paper_WPC_PassThrough (4.2(a)--Accept Subaward of Whole Person Care funds from Shasta County HHSA) DocuSign Envelope ID: 1D26161C-7AC9-49A6-B127-C921877D850F Packet Pg. 78
Attachment: Signed-on-Paper_WPC_PassThrough (4.2(a)--Accept Subaward of Whole Person Care funds from Shasta County HHSA) DocuSign Envelope ID: 1D26161C-7AC9-49A6-B127-C921877D850F Packet Pg. 79
Attachment: Signed-on-Paper_WPC_PassThrough (4.2(a)--Accept Subaward of Whole Person Care funds from Shasta County HHSA) DocuSign Envelope ID: 1D26161C-7AC9-49A6-B127-C921877D850F Packet Pg. 80
Attachment: Signed-on-Paper_WPC_PassThrough (4.2(a)--Accept Subaward of Whole Person Care funds from Shasta County HHSA) DocuSign Envelope ID: 1D26161C-7AC9-49A6-B127-C921877D850F Packet Pg. 81
Attachment: Signed-on-Paper_WPC_PassThrough (4.2(a)--Accept Subaward of Whole Person Care funds from Shasta County HHSA) DocuSign Envelope ID: 1D26161C-7AC9-49A6-B127-C921877D850F Packet Pg. 82
Attachment: Signed-on-Paper_WPC_PassThrough (4.2(a)--Accept Subaward of Whole Person Care funds from Shasta County HHSA) DocuSign Envelope ID: 1D26161C-7AC9-49A6-B127-C921877D850F Packet Pg. 83
Attachment: Signed-on-Paper_WPC_PassThrough (4.2(a)--Accept Subaward of Whole Person Care funds from Shasta County HHSA) DocuSign Envelope ID: 1D26161C-7AC9-49A6-B127-C921877D850F Packet Pg. 84
Attachment: Signed-on-Paper_WPC_PassThrough (4.2(a)--Accept Subaward of Whole Person Care funds from Shasta County HHSA) DocuSign Envelope ID: 1D26161C-7AC9-49A6-B127-C921877D850F Packet Pg. 85
Attachment: Signed-on-Paper_WPC_PassThrough (4.2(a)--Accept Subaward of Whole Person Care funds from Shasta County HHSA) DocuSign Envelope ID: 1D26161C-7AC9-49A6-B127-C921877D850F Packet Pg. 86
Attachment: Signed-on-Paper_WPC_PassThrough (4.2(a)--Accept Subaward of Whole Person Care funds from Shasta County HHSA) DocuSign Envelope ID: 1D26161C-7AC9-49A6-B127-C921877D850F Packet Pg. 87
Attachment: Signed-on-Paper_WPC_PassThrough (4.2(a)--Accept Subaward of Whole Person Care funds from Shasta County HHSA) DocuSign Envelope ID: 1D26161C-7AC9-49A6-B127-C921877D850F Packet Pg. 88
Attachment: Signed-on-Paper_WPC_PassThrough (4.2(a)--Accept Subaward of Whole Person Care funds from Shasta County HHSA)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Approve the Funding Agreement between the Superior California Economic Development District (SCEDD) and the City of Redding for Fiscal Years (FY) 2021-22, 2022-23, and 2023- 24, for economic development planning and business development services; and authorize payment to SCEDD in the amount of $17,974 for FY 2021-22, $23,465 for FY 2022-23, and $26,977 for FY 2023-24 activities.

Fiscal Impact
Typically, the SCEDD assessments are paid annually – with Economic Development transitioning from Development Services to the City Manager’s Office, the invoices did not follow, with the approval of these funding requests, the City will be current.

Sufficient funds have been included in the City of Redding’s (City) 2021-23 Biennial Budget General Fund, to pay the cost of the FY 2021-22 and FY 2022-23 Funding Agreements (FY ($17,974 and $23,465, respectively, for a total amount of $41,439). FY 2023-24 Funding Agreement ($26,977) will be subject to the City Council’s (Council) adoption of the City’s 2023- 2025 Biennial Budget.

Alternative Action
The Council could decline to participate in SCEDD, or direct staff to renegotiate the FY 2023- 2024 Funding Agreement to provide for some other funding mix and/or work program associated with the Funding Agreement.

MEETING DATE: June 20, 2023
ITEM NO. 4.2(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.2(b)--Funding Agreement with the Superior California Economic Development District for Fiscal Years 2021-22, 2022-23 and 2023-24.

Steve Bade, Assistant City
Manager
Packet Pg. 89
Report to Redding City Council June 14, 2023
Re: 4.2(b)--Funding Agreement-Superior California Economic Development District Page 2 Background/Analysis
On March 12, 1979, the City entered into a Joint Powers Agreement (JPA) establishing SCEDD.

SCEDD acts as a liaison to the U.S. Economic Development Administration (EDA) for a fourcounty district that includes Shasta, Siskiyou, Trinity, and Modoc Counties. In this role, SCEDD is a facilitator for EDA grant programs and other economic development assistance.

SCEDD is primarily supported by an annual investment from the EDA with a required matching investment from SCEDD based on the region’s level of economic distress as periodically determined by the EDA. Each member county and incorporated city (Member) assessments are determined and invoiced annually using a formula derived through averaging the most current population and assessed valuation figures for each respective member. Assessment funds provide the cash match for the EDA Annual Planning Grant.

SCEDD mission is to create jobs through local and regional economic planning and direct business financing through the following activities:
▪ Comprehensive Economic Development Strategy (CEDS) - SCEDD is responsible for the CEDS, a locally-based, regionally-driven economic development planning process and document. It identifies locally-based strategies that guide regional economic development, encourages partnerships and collaboration, and improves economic outcomes and overall quality of life. An effective CEDS enables the region to engage with the EDA and other federal partners to receive grants. ▪ Business Development Loan Program - Since 1980, SCEDD has been building up a portfolio of revolving business development loan funds for businesses within the district.

Currently, our portfolio holds nearly $8 million in available funds for lending purposes. ▪ Certified Development Company - SCEDD is certified by the U.S. Small Business Administration to market, package, fund, and service SBA 504 loans statewide. While this activity does contribute to the SCEDD mission within the District, the program services are offered state-wide and generate unrestricted retained earnings for SCEDD, which are then dedicated to the SCEDD mission within the district.

SCEDD provides valuable economic assistance to the City, leveraging its contribution for federal grant money.

Environmental Review
This is not a project defined under the California Environmental Quality Act and no further action is required.

Council Priority/City Manager Goals
• Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”
Attachments
Funding Agreement with Attachment A and B
Packet Pg. 90

FUNDING AGREEMENT
THIS AGREEMENT is made and entered into by and between the CITY OF REDDING, a municipal corporation and general law city (“City”), and the SUPERIOR CALIFORNIA ECONOMIC DEVELOPMENT DISTRICT, a joint powers agency created under California law by that Joint Exercise of Powers Agreement between Modoc, Shasta, Siskiyou, and Trinity Counties and Participating Cities for the Purpose of Forming anEconomic Development District dated March 12, 1979, as amended (“SCEDD”):

R E C I T A L S
A. The City Council of the City of Redding (City) is empowered by the State of California to appropriate and expend money from City funds for the regional planning for economic and public works project development within the City.

B. The City has no organized means of its own for conducting the systematic expenditure of funds for regional planning for economic and public works project development within the City.

C. SCEDD provides regional economic-development planning and businessdevelopment services, and acts as the Economic Development Administration’s liaison to both the public and private sectors. SCEDD’s primary mission is facilitating business and job creation in Shasta, Trinity, Modoc, and Siskiyou counties. Shasta County’s share of SCEDD’s operating budget and its matching grant requirement is shared between Shasta County and the cities of Redding, Anderson and Shasta Lake in accordance with a specified formula.

D. SCEDD, with its organizational and administrative structure is well able to provide regional planning for economic and public works project development within the City, through which the City and its citizens benefit. The City and its citizens will derive a public benefit from the services to be provided by SCEDD.

A G R E E M E N T

1. TERM. The term of this agreement shall be for a period of three-years commencing on July 1, 2021, and terminating on June 30, 2024.

2. SERVICES TO BE PROVIDED BY SCEDD. SCEDD shall provide the services outlined in Attachment A - Scope of Work attached hereto and incorporated by reference herein and generally described as the district economic planning program.

3. FUNDING BY THE CITY. During the term hereof, to partially offset SCEDD’s costs in providing the services set forth in Attachment A, the City shall pay SCEDD the sum of Seventeen Thousand Nine Hundred and Seventy-Four Dollars ($17,974) for Fiscal Year (FY) 2021-22, Twenty-Three Thousand Four Hundred and Sixty-Five Dollars ($23,465) for FY 2022-23, and Twenty-Six Thousand Nine Hundred and Seventy-Seven Dollars ($26,977) for FY 2023-24. These assessment values are determined annually using a formula derived through averaging the most current population and assessed valuation figures for each respective Packet Pg. 91
Attachment: Funding Agreement with Attachment A and B (4.2(b)--Funding Agreement-Superior California Economic Development District) Funding Agreement
Superior California Economic Development District Page 2 member. These specific values represent the City’s portion of Shasta County’s share of SCEDD’s operating budget, as shown in Attachment B, attached and incorporated herein.

4. REPORTS AND RECORDS.

A. SCEDD shall keep a full and complete account of funds received from all sources, and make this available to the City at any and all times upon request.

5. INDEMNIFICATION. SCEDD shall indemnify and defend the City and its elected officials, officers, employees, agents and volunteers against and hold them harmless from any and all claims, losses, damages, and liability for damages, including attorney’s fees and other costs of defense incurred by the City, whether for damage to or loss of property or injury to or death of persons or loss of services, expenses or compensation, including properties of the City and injury to or death of the City’s elected officials, officers, employees, agents and volunteers arising out of, or resulting from, the City’s expenditure of funds to SCEDD hereunder, the services to be performed hereunder by SCEDD or from the actions of SCEDD’s officials, officers, employees, agents, volunteers and invitees, unless such damage, loss, injury or death is caused by the sole or active negligence of the City.

6. INSURANCE REQUIREMENTS. SCEDD shall procure and maintain, for the term of this Agreement, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the services to be provided hereunder by SCEDD and its officials, officers, employees, agents, members or volunteers. The cost of such insurance shall be borne by SCEDD.

A. Coverage shall be at least as broad as, with limits no less than:
(1) Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001), at $1,000,000 per occurrence/$2,000,000 general aggregate for bodily injury, personal injury and property damage. The City reserves the right to increase the limits at a later date.
(2) Workers’ Compensation insurance as required by the State of California; and Employer’s Liability insurance (for SCEDD’s employees), at $1,000,000 per accident for bodily injury or disease.

B. The general liability policy is to be endorsed to contain the following provisions:
(1) The City, its elected officials, officers, employees, agents and volunteers are to be covered as additional insureds as respects liability arising out of activities performed by or on behalf of SCEDD; products and completed operations of SCEDD; premises owned, occupied or used by SCEDD; or automobiles non-owned, leased, hired or borrowed by SCEDD.

The coverage shall contain no special limitations of the scope of protection afforded to the City, its elected officials, officers, employees, agents and volunteers. (2) SCEDD’s insurance coverage shall be primary insurance as respects the City, its elected officials, officers, employees, agents and volunteers. Any insurance or selfinsurance maintained by the City, its elected officials, officers, employees, agents and volunteers, shall be excess of SCEDD’s insurance and shall not contribute with it.

Packet Pg. 92
Attachment: Funding Agreement with Attachment A and B (4.2(b)--Funding Agreement-Superior California Economic Development District) (3) SCEDD’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. (4) Each insurance policy covered by this Agreement shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, or reduced in coverage or in limits except after thirty (30) days’ prior written notice has been given to the City.

C. Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A-: VII and licensed to do business in the State of California. SCEDD shall furnish the City with original endorsements affecting the coverages required by this Agreement. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City’s Risk Manager prior to the date the term commences.

7. COMPLIANCE WITH LAW. SCEDD covenants and agrees to comply with all statutes, laws, ordinances, regulations, orders, judgments, decrees, directions, and requirements of the City, and of all federal, state, county and city authorities now or hereafter in force, applicable to the services to be provided hereunder or pertaining to a joint powers agency created under the laws of the State of California, and shall secure at its full cost and expense any and all permits, applications or other requirements in connection therewith. The judgment of any court of competent jurisdiction or the admission of SCEDD in any action or proceeding against SCEDD, whether the City be a party thereto or not, that SCEDD has violated any such ordinance or statute shall be conclusive of the fact as between the City and SCEDD and shall subject this Agreement to immediate termination at the option of the City.

8. ASSIGNMENT OR SUBCONTRACTING. SCEDD shall not assign, subcontract or otherwise transfer this Agreement or any interest therein without first securing the written approval of the City.

9. FINANCIAL INTEREST. No member of the City Council or of any City board or commission, and no officer or employee of the City, shall be or become, directly or indirectly, financially interested in this Agreement or the services to be performed by SCEDD.

10. STATUS. In carrying out the terms of this Agreement, SCEDD is an independent contractor, and nothing in this Agreement is intended nor shall be construed to create an employeremployee relationship or a joint venture relationship between the City and SCEDD or any officer of employee of SCEDD.

11. WAIVER. A waiver of any party of any provision or a breach of this Agreement must be provided in writing and shall not be construed as a waiver of any other provision or any succeeding breach of the same or any other provision herein.

12. DEFAULT.

A. SCEDD’s failure to perform any provision of this Agreement, if the failure to perform is not cured within thirty (30) calendar days after notice has been given to SCEDD, shall constitute a default of this Agreement. If the default cannot be reasonably cured within thirty (30) Packet Pg. 93
Attachment: Funding Agreement with Attachment A and B (4.2(b)--Funding Agreement-Superior California Economic Development District) Funding Agreement
Superior California Economic Development District Page 4 calendar days, SCEDD shall not be in default of this Agreement if SCEDD commences to cure the default within the thirty (30) calendar day period and diligently and in good faith continues to cure the default.

B. Notices given under this paragraph shall specify the alleged default and the applicable provisions of this Agreement, and shall demand that SCEDD perform the provisions of this Agreement within the thirty (30) day period.

C. Upon any default of this Agreement, the City, at the City’s sole discretion, may terminate this Agreement. Any funds provided to SCEDD by the City pursuant to paragraph 3 of this Agreement which are not expended at the time of the default shall be immediately returned to the City. In such event, SCEDD shall also immediately provide to the City the records required by paragraph 4 of this Agreement.

13. NOTICE. All notices and other communications authorized or required under this Agreement shall be in writing and shall be given by (a) personal delivery, (b) mailing by first class mail, postage prepaid, or (c) delivery by commercially recognized courier service. Any such notice or other communication shall be deemed to have been given on the date of delivery or refusal to accept delivery if addressed as follows:

City of Redding Superior California Economic Att.:

Assistant City Manager Development District
777 Cypress Avenue Att.: Executive Officer
P.O. Box 496071 350 Hartnell Avenue
Redding, CA 96049-6071 Redding, CA 96002.

Either party may change its address for the purposes of this paragraph by giving written notice of such change to the other party in the manner provided in this paragraph.

14. ENTIRE AGREEMENT AND MODIFICATION OR AMENDMENT. This Agreement, including all attachments incorporated by reference herein, contains all the representations and the entire understanding and agreement between the parties pertaining to the City’s provision of funds to SCEDD. All correspondence, memoranda, or oral or written agreements pertaining to the City’s provision of funds to SCEDD, or any of the parties hereto, which originated before the date of this Agreement are null, void and no longer in force and with no effect, and are replaced in total with this Agreement unless otherwise expressly stated in this Agreement. This Agreement shall not be altered, amended or modified except by a writing signed by the City and SCEDD.

15. BINDING ON SUCCESSORS. Subject to the provisions in this Agreement respecting assignment or subcontracting, all covenants, terms and conditions in this Agreement shall extend to and bind the successors and assigns of the respective parties to this Agreement.

16. HEADINGS, REFERENCE, AND JOINT AND SEVERAL LIABILITY. The titles and headings of the various paragraphs of this Agreement are intended solely for convenience of reference and are not intended to explain, modify or place any construction on any of the provisions of this Agreement. Masculine, feminine and the neutral gender and the singular and the plural number shall each be considered to include the other whenever the context so requires. If either party consists of more than one person or entity, each such person or entity shall be jointly and severally liable.

Packet Pg. 94
Attachment: Funding Agreement with Attachment A and B (4.2(b)--Funding Agreement-Superior California Economic Development District) Funding Agreement
Superior California Economic Development District Page 5

17. NO PARTY DEEMED DRAFTER. In the event of a dispute between any of the parties to this Agreement over the meaning of this Agreement, no party shall be deemed to have been the drafter hereof, and the principle of law that contracts are to be construed against the drafter shall not apply.

18. CALIFORNIA LAW. This Agreement shall be construed and interpreted in accordance with the laws of the State of California.

19. SEVERABILITY. The unenforceability, invalidity or illegality of any provision shall not render the other provisions unenforceable, invalid or illegal.

20. ATTORNEYS’ FEES. In any dispute between the City and SCEDD, whether or not resulting in litigation, the prevailing party shall be entitled to recover from the other party all reasonable costs, including, without limitation, reasonable attorney’s fees. “Prevailing party” shall include, without limitation, a party who dismisses an action for specific performance or for damages in exchange for sums allegedly due, performance for covenants allegedly breached or consideration substantially equal to the relief sought in the action, or which receives from the other party, in connection with any dispute, performance substantially equivalent to any of these.

No sum for attorney fees shall be included in calculating the amount of a judgment for purposes of deciding whether a party is entitled to its costs or attorney fees.

21. TIME OF ESSENCE. Time is of the essence of this Agreement and of each and every provision in this Agreement.

22. DATE OF AGREEMENT. The date of this Agreement shall be that date that it shall have been signed by the City.

Packet Pg. 95
Attachment: Funding Agreement with Attachment A and B (4.2(b)--Funding Agreement-Superior California Economic Development District) Funding Agreement
Superior California Economic Development District Page 6 IN WITNESS WHEREOF, the parties hereto have executed this Funding Agreement in the presence of their respective officers duly authorized in that behalf on the days and year set forth below.

CITY OF REDDING
Dated: , 2023
By:

Michael Dacquisto, Mayor
Attest: APPROVED AS TO FORM:

Pamela Mize, City Clerk Barry E. DeWalt, City Attorney

SUPERIOR CALIFORNIA ECONOMIC

DEVELOPMENT DISTRICT
Dated: , 2023 By:

Brandon Criss, President
Packet Pg. 96
Attachment: Funding Agreement with Attachment A and B (4.2(b)--Funding Agreement-Superior California Economic Development District)

ATTACHMENT A
Superior California Economic Development District
Proposed Scope of Work 2021-2024
Comprehensive Economic Development Strategy
• Ongoing monitoring and annual review, update/revision of the CEDS. • Maintain a CEDS Committee of SCEDD board members AND other elected officials, appointed government officials, and private businesses. • Maintain a CEDS stakeholder workgroup(s) including SCED staff and board, elected and appointed officials, workforce development, other economic development organizations, education, and representatives of primary industry clusters. • Finalize CEDS review and document changes, updates, and additions in a document published for public access.

Economic Development Planning and Coordination
• The district’s economic development planning activity will continue to address common issues on a regional basis and identify and support local economic development problems, initiatives, and specific projects relevant to the CEDS. The continuing transition from a resource-based economy to expanded retail and services requires ongoing monitoring and adaptation to and development of new economic base opportunities as they arise.

Economic Planning Activities willinclude:
o Continuation of ongoing district-wide and local economic assessment, planning, and coordination assistance, particularly with Shasta EDC, Siskiyou EDC, Trinity stakeholders, and Modoc stakeholders.
o Continue to assist eligible jurisdictions and entities with EDA planning, adjustment, and public works grant opportunities as they arise, particularly previously identified EDA Public Works opportunities in Yreka, Mount Shasta, and Anderson. o Plan and coordinate other District economic development projects/programs, including Microenterprise Development, SCED business development financing, and ongoing activities with the additional special projects listed. o Continue collaborative relationships with the (northern) California Finance Consortium.

Staff Capacity
• Staff support, education, and professional development aimed toward building on skills that will expand the entity’s ability to engage and successfully implement economic opportunities throughout the district.

Technical Assistance
• Provide TA to member agencies regarding topics such as industrial parks, land use regulations, grant training workshops, district committees, economic development programs, business development, and the tribal entity or local government.

Industrial Development
• The district works cooperatively with local jurisdictions and local economic development agencies in their efforts to expand industrial businesses in the district and to assist existing local industrial businesses with growth/expansion. The district will assist local jurisdictions with long-range planning and direct assistance in funding for industrial site development.

However, the District never has and will not conduct any business recruitment marketing or placement negotiation.
• Collaborate and cooperate with local agencies conducting industrial recruitment.

Packet Pg. 97
Attachment: Funding Agreement with Attachment A and B (4.2(b)--Funding Agreement-Superior California Economic Development District) Percent Assessed Percent
County Population* Population Valuation** Valuation
Modoc 9,491 3.87% $1,210,464 4.18%
Shasta 177,797 72.49% $20,558,676 71.01%
Siskiyou 44,461 18.13% $5,346,676 18.47%
Trinity 13,535 5.52% $1,835,839 6.34%
Total 245,284 100.00% $28,951,655 100.00%
Blended Percent Total
Population/ Request
County Valuation FY 2021/22
Modoc 4.03% $ 2,013
Shasta 71.75% $ 35,874
Siskiyou 18.30% $ 9,148
Trinity 5.93% $ 2,965
Total 100.00% $ 50,000
EDA DISTRICT ECONOMIC PLANNING GRANT $ 75,000
REQUIRED Cash MATCH SCEDD JPA 40% $50,000*** $ 50,000
Additional Match Commitment by SCED $ 10,000
TOTAL $ 135,000
**Assessed Valuation figures from State of California, Board of Equalization Annual Report 2020-21 (Table 5). Add 000 to numeric figures ***Match required by U.S. Department of Commerce - EDA

SUPERIOR CALIFORNIA ECONOMIC DEVELOPMENT DISTRICT

DISTRICT ECONOMIC PLANNING GRANT PROGRAM
Joint Powers Agreement for Fiscal Year End 2022

JOINT POWERS AGREEMENT ASSESSMENT
*State of California, Department of Finance, E-1 Population Estimates for Cities, Counties and the State with Annual Percent Change — January 1, 2020 and 2021. Sacramento, California, May 2021.

EXHIBIT B
Packet Pg. 98
Attachment: Funding Agreement with Attachment A and B (4.2(b)--Funding Agreement-Superior California Economic Development District) Percent Assesed Percent
City/County Population* Population Valuation** Valuation Anderson 10,702 6.02% $837,041 4.07%
Redding 91,715 51.58% $9,995,860 48.62%
Shasta Lake 10,657 5.99% $822,604 4.00%
Balance of County 64,723 36.40% $8,903,171 43.31%
Total 177,797 100.00% $20,558,676 100.00%
Blended Percent Total
Population/ Request
City/County Valuation FY 2021/22
Anderson 5.05% $ 1,810
Redding 50.10% $ 17,974
Shasta Lake 5.00% $ 1,793
Shasta County 39.85% $ 14,297
Total Shasta County 100.00% $ 35,874
**Assessed Valuation figures from State of California, Board of Equalization Annual Report 2020-21 (Table 11) *State of California, Department of Finance, E-1 Population Estimates for Cities, Counties and the State with Annual Percent Change — January 1, 2020 and 2021. Sacramento, California, May 2021.

SUPERIOR CALIFORNIA ECONOMIC DEVELOPMENT DISTRICT

DISTRICT ECONOMIC PLANNING GRANT PROGRAM
Joint Powers Agreement for FY 2021/2022

SHASTA COUNTY

JOINT POWERS AGREEMENT ASSESSMENT
Packet Pg. 99
Attachment: Funding Agreement with Attachment A and B (4.2(b)--Funding Agreement-Superior California Economic Development District) Percent Assessed Percent
County Population* Population Valuation** Valuation
Modoc 8,690 3.49% $1,279,796 4.20%
Shasta 180,531 72.48% $21,679,543 71.16%
Siskiyou 43,830 17.60% $5,560,180 18.25%
Trinity 16,023 6.43% $1,947,692 6.39%
Total 249,074 100.00% $30,467,211 100.00%
Total
Blended Percent Request
County Population / Valuation FY 2021/22
Modoc 3.84% $ 2,499
Shasta 71.82% $ 46,682
Siskiyou 17.92% $ 11,650
Trinity 6.41% $ 4,168
Total Cities/Counties Contribution 100.00% $ 65,000
EDA DISTRICT ECONOMIC PLANNING GRANT 2023 $ 75,000
EDA REQUIRED Cash MATCH SCEDD JPA 50% *** $ 75,000
Cash Match Commitment by SCED $ 10,000
Cash Match Request JPA Member Cities and Counties $ 65,000 TOTAL Program $ 150,000
**Assessed Valuation figures from State of California, Board of Equalization Annual Report 2020-21 (Table 5). Add 000 to numeric figures ***Match required by U.S. Department of Commerce - EDA

SUPERIOR CALIFORNIA ECONOMIC DEVELOPMENT DISTRICT

DISTRICT ECONOMIC PLANNING GRANT PROGRAM
Joint Powers Agreement for Fiscal Year End 2023

JOINT POWERS AGREEMENT ASSESSMENT
*State of California, Department of Finance, E-1 Population Estimates for Cities, Counties and the State with Annual Percent Change — January 1, 2020 and 2021. Sacramento, California, May 2021.

Packet Pg. 100 Attachment: Funding Agreement with Attachment A and B (4.2(b)--Funding Agreement-Superior California Economic Development District) Percent Assesed Percent
City/County Population* Population Valuation** Valuation Anderson 11,181 6.19% $909,217 4.19%
Redding 93,879 52.00% $10,520,616 48.53%
Shasta Lake 10,318 5.72% $862,884 3.98%
Balance of County 65,153 36.09% $9,386,826 43.30%
Total 180,531 100.00% $21,679,543 100.00%
Blended Percent Total
Population/ Request
City/County Valuation FY 2021/22
Anderson 5.19% $ 2,425
Redding 50.26% $ 23,465
Shasta Lake 4.85% $ 2,263
Shasta County 39.69% $ 18,530
Total Shasta County 100.00% $ 46,682
**Assessed Valuation figures from State of California, Board of Equalization Annual Report 2020-21 (Table 11) *State of California, Department of Finance, E-1 Population Estimates for Cities, Counties and the State with Annual Percent Change — January 1, 2020 and 2021. Sacramento, California, May 2021.

SUPERIOR CALIFORNIA ECONOMIC DEVELOPMENT DISTRICT

DISTRICT ECONOMIC PLANNING GRANT PROGRAM
Joint Powers Agreement for FY 2022/2023

SHASTA COUNTY

JOINT POWERS AGREEMENT ASSESSMENT
Packet Pg. 101 Attachment: Funding Agreement with Attachment A and B (4.2(b)--Funding Agreement-Superior California Economic Development District) Packet Pg. 102
Attachment: Funding Agreement with Attachment A and B (4.2(b)--Funding Agreement-Superior California Economic Development District)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following regarding the Development Agreements between Resources for Rural Community Development, Inc., dba AccessHome (AccessHome) and the City of Redding (City) for the construction of income-qualifying Park Host housing units:
(1) Approve and authorize a First Amendment to Development Agreement (C-9068) thereby increasing the City’s loan by $84,717 for the development of a park host home at Enterprise Community Park (Enterprise Host Home Project); (2) Approve and authorize a First Amendment to Development Agreement (C-9406) thereby increasing the City’s loan by $83,311 for the development of a park host home at John Reginato River Access Park (Reginato Host Home Project); (3) Approve and authorize the City Manager, or designee, to execute each Amendment to the Development Agreements, and the associated security documents necessary to complete each transaction;
(4) Find the project is categorically exempt from the California Environmental Quality Act pursuant to Section 15332; and
(5) Find that the National Environmental Policy Act (NEPA) review shows that the project is categorically excluded and not subject to part 58.5 pursuant to Title 24 CFR 58.35(b)(7).

Fiscal Impact
The Enterprise and Reginato Host Home Projects (Projects) were funded with loans from Housing Division’s grant resources that include: HOME Investment Partnership Funds (HOME) and Affordable Housing Loan Funds (AHLF) and Park in-lieu funds. The requested loan increases will be secured by corresponding deeds of trust and promissory notes with the City as beneficiary. The increased loan amounts will not affect the General Fund.

MEETING DATE: June 20, 2023
ITEM NO. 4.2(c)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.2(c)--Amend Development Agreements (C-9068 and C-9406) between Resources for Rural Community Development, Inc. and the City of Redding.

Steve Bade, Assistant City
Manager
Packet Pg. 103
Report to Redding City Council June 14, 2023
Re: 4.2(c)--Amend Development Agreements (C-9068 and C-9406) Page 2 Alternative Action
The City Council (Council) could choose to decline the Amendments and the subsequent loan increases and provide alternative direction to staff. Without additional Housing Division grant funds, the Park Host Homes will have a gap in financing and the homes may not be completed.

Background
In September 2021, Council approved the Development Agreements (DAs) for each project that includes the construction of a 3-D printed, single-family home to serve as a park-host home.

AccessHome, as the City’s current Community Housing Development Organization (CHDO), is facilitating the construction of the Projects. Construction of the projects commenced in mid-May 2022. To date, the projects are approximately 80 percent complete. Staff anticipates that the projects will be completed and leased by August 2023.

Between the time the projects were approved for funding and the time construction commenced, final budget figures increased due to higher construction costs. Due to the volatility of construction costs and new methods of construction, staff anticipated that costs may increase.

Pursuant to each DA, a cost escalation provision provides that if an increase in cost is realized, equating to 30 percent or less of the originally approved loan amount, the loan would be increased accordingly. As such, the Enterprise Park project needs its loan increased by $84,717 for a new loan amount of $421,913 and the Reginato Project needs its loan increased by $83,311 for a new loan amount of $420,507. Each projects’ corresponding loan security documents will be revised accordingly.

Upon completion, AccessHome will make the units available to income-qualifying households for 20-years. During the lease term, AccessHome will manage the units, including tenant selection and management and maintain the property. At the end of the lease period, the projects will revert to the City and the remaining balance of the loans will be forgiven. During each loan period, based on the residual receipts of each project, annual loan payments may be received.

Environmental Review
Staff has completed the California Environmental Quality Act (CEQA) environmental analysis.

The project has been determined to be categorically exempt pursuant to Section 15332 (infill development).

Staff has also completed the National Environmental Protection Act (NEPA) environmental analysis. The project has been determined to be categorically excluded not subject to 58.5 statutes under Title 24 CFR 58.35(b)(7) as the City is providing supplemental assistance to a project approved under a previous environmental review.

Council Priority/City Manager Goals
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
• Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”
Packet Pg. 104
Report to Redding City Council June 14, 2023
Re: 4.2(c)--Amend Development Agreements (C-9068 and C-9406) Page 3 Attachments
3D Printer Homes Staff Report
^Amendments to the DA DOT HOME and NOTE - EP
^Amendments to the DA DOT and NOTE - RBR
C-9406 - Development Agreement - 2022 - Rescources for Rural Community Development, Inc. dba AccessHome
C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome
Packet Pg. 105

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following actions regarding the development of 3D Printed Construction of income-qualifying housing units at Enterprise Community Park, the John Reginato River Access Park, and 745 and 785 St. Marks Street:
(1) Approve and authorize the execution of a Development Agreement between the City of Redding and Resources for Rural Community Development, Inc., dba AccessHome (AccessHome) providing a City Loan in an amount not-to-exceed $337,196 for the development of a park host home at Enterprise Community Park; (2) Approve and authorize the execution of a Development Agreement between the City and AccessHome providing a City Loan in an amount not-to-exceed $337,196 for the development of a park host home at John Reginato River Access Park; (3) Approve and authorize the execution of a Development Agreement between the City and AccessHome providing a City Loan in an amount not-to-exceed $1,800,000 for the development of up to six housing units at 745 and 785 St. Marks Street; and (4) Approve and authorize the City Manager, or designee, to execute all necessary documents as detailed within each Development Agreement, including the associated Ground Leases, Park Host Agreements, and any other related documents necessary to complete each transaction.

Fiscal Impact
The combined development loans for the projects total $2,474,392 which will be comprised of funding from the Home Investment Partnerships (HOME) Program, HOME American Rescue Plan (HOME-ARP) funding, Affordable Housing Loan Fund (AHLF), Community Development Block Grant (CDBG) Program, Permanent Local Housing Allocation (PLHA), and $200,000 of Park In-Lieu proceeds.
 In April 2021 the City of Redding (City) was awarded HOME-ARP funding in the amount of $1,597,470. Utilizing a portion of these funds for the St. Marks MEETING DATE: September 7, 2021
ITEM NO. 9.2(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.2(b)--Consider Development Agreements for 3D Printer Construction of income-qualifying housing units in the City of Redding.

Steve Bade, Deputy City
Manager
Packet Pg. 106 Attachment: 3D Printer Homes Staff Report (4.2(c)--Amend Development Agreements (C-9068 and C-9406)) Report to Redding City Council August 30, 2021
Re: 9.2(b)--Development Agreements 3D Printer Construction Page 2 Project that will not negatively impact other projects.  The City currently has approximately $300,000 in its HOME Program Community Housing Development Organization (CHDO) budget from a combination of multi-year annual entitlement contract allocations.  The AHLF currently has $200,000 available to fund a portion of the John Reginato River Access Park unit.
 The CDBG Program has $300,000 available of Revolving Loan Funds for the St.

Marks Project that will not negatively impact other projects.  The PLHA Program has $300,000 available for rental housing development that is affordable to income eligible participants.
 On March 3, 2020, the City Council approved Resolution 2020-024 to provide $200,000 of Park In-Lieu funds for the completion of the Enterprise Community Park and John Reginato River Access Park host units.

Alternative Action
The City Council (Council) could modify the Development Agreements, provide alternative direction to staff, or approve the above with modifications. Modifications may require additional negotiations with AccessHome and the development team which may cause delays in the projects moving forward.

The Council could also choose to decline to approve the Development Agreements. Without local funding commitments from the City, the Park Host Homes or the St. Marks Project would not be constructed.

Background
In March 2021, the City was contacted by Don Ajamian Construction and Emergent 3D, LLC, to introduce a partnership (DAC and Emergent 3D) and an innovative proposal utilizing 3D printer technology to build income-qualifying housing units. DAC has been a general contractor in the Redding area for more than 17 years. Emergent 3D is a partnership that includes Mathew Giles as the owner/CEO, who is an architect and structural engineer. Over the last four months, they have been working with the Building, Planning, and Housing Divisions as well as the Community Services Department (Community Services) to complete the housing unit design, financing, and feasibility for the development of residential units.

Construction costs have risen and are still on the rise – there is also a skilled-labor shortage and materials such as lumber, steel, insulation, windows, appliances, and finish products are limited, expensive, and hard to acquire. 3D printed concrete residential units are a sustainable, innovative option that uses less labor and construction waste during the construction process. DAC and Emergent 3D have spent time and resources researching and traveling both internationally and nationally to fully understand the 3D printer technology industry. They selected Construction Of Buildings On Demand (COBOD), an industry leader for its 3D printer equipment. 3D printed construction is a new technology to the United States with implementation in Texas, Florida, Arizona, and California. The 3D printer builds the walls of a residential unit layer-bylayer, using continuous ribbons of fresh concrete made from commercially available, standard industry materials. The 3D printer incorporates two trowels to shape and form the top and side of the layers as they are extruded by a nozzle to form the wall structure without the use of formwork. Approximately 70 percent of the unit will be 3D printed and the remaining 30 percent will be traditional construction methods – such as the foundation, trusses, roofing, electrical, Packet Pg. 107 Attachment: 3D Printer Homes Staff Report (4.2(c)--Amend Development Agreements (C-9068 and C-9406)) Report to Redding City Council August 30, 2021
Re: 9.2(b)--Development Agreements 3D Printer Construction Page 3 mechanical and plumbing. DAC and Emergent 3D have created a master plan design set for a 1200 square-foot, three-bedroom, two-bath, single family unit. The plans have been approved by the Building Division and are more than likely one of the first on-site, single-family, 3D printed plans approved in California.

AccessHome, is the City’s HOME designated CHDO. Since 2003, AccessHome has partnered with the City to acquire, rehabilitate or construct income-qualifying housing units. AccessHome has performed well managing its assets, debt servicing its loans, and providing decent and safe housing units to special needs clients.

AccessHome, DAC, and Emergent 3D have been collaborating with City staff to partner and develop income-qualifying housing units in this competitive housing market. The resulting collaboration is provided in three separate Development Agreements that include: two City park hosts units and up to six units that will be available to someone who is homeless, at-risk of homelessness, or individuals fleeing domestic violence.

The specific 3D printed units’ location, financial commitment, terms and conditions of each project are as follows:

ENTERPRISE COMMUNITY PARK
Historically, due to misuse and vandalism within the park, the Community Services has used a park host to perform tasks such as routine patrols, opening and closing park gates, observing and reporting unusual activities, and posting park reservations. To provide a permanent park host residential unit, a 5,000 square-feet portion of the 94-acre Enterprise Community Park will be placed under a leasehold to serve as the project site that will include one, 1,200 square-feet, three-bedroom, two-bath, single family unit complete with landscape and walkways that blend into the park area.

The total cost of construction is $337,196 which will be secured by a ground lease for a 20-year period of time. The City financing will be in the form of a residual receipts loan in an amount not-to-exceed $337,196 at zero percent interest for a 20-year term. Repayment of the loan is contingent upon the ability of the unit to generate residual receipts; that is, revenue in excess of approved operating expenses. As part of the agreement, AccessHome will be required to setaside funds each month as replacement and maintenance reserves to ensure the unit is wellmaintained. At the end of the 20-year term, any principal and interest balance will be forgiven.

The City’s loan will include an affordability covenant that will restrict the rent to incomequalifying tenants at less than 80 percent of area median income (AMI).

JOHN REGINATO RIVER ACCESS PARK
Similar to the Enterprise Community Park, Community Services has partnered with a park host to provide routine patrols, opening and closing park gates, and observing and reporting unusual activities at the John Reginato River Access Park, a 6.1-acre area along the Sacramento River on South Bonnyview Road. Community Services leases the site from the State of California and it anticipates negotiating an amendment to its lease to secure the park host unit through a ground lease. If an amendment is not attainable, then the financing and covenant restrictions would be unsecured and documented through the Park Host Service Agreement.

Packet Pg. 108 Attachment: 3D Printer Homes Staff Report (4.2(c)--Amend Development Agreements (C-9068 and C-9406)) Report to Redding City Council August 30, 2021
Re: 9.2(b)--Development Agreements 3D Printer Construction Page 4 To provide a permanent park host residential unit, approximately 5,000 square-feet, a portion of the 6.1-acre park, will be placed under a leasehold to serve as the project site that will include one, 1,200 square-feet, three-bedroom, two-bath, single family unit complete with landscape and walkways that blend into the park area. The total cost of construction is $337,196 which will be secured by a ground lease for a 20-year period of time. The City financing will be in the form of a residual receipts loan in an amount not-to-exceed $337,196 at zero percent interest for a 20- year term. At the end of the 20-year term, any principal and interest balance will be forgiven.

The City’s loan will include an affordability covenant that will restrict the rent to incomequalifying tenants at less than 80 percent of AMI. 745 and 785 ST. MARKS STREET
During the Park Host Homes discussion, staff negotiated up to six additional affordable housing units to be constructed at 745 and 785 St. Marks Street in Redding. The total cost of the development is $1.8 million and includes: the refinancing of AccessHome’s acquisition cost of the parcels, predevelopment costs, needed infrastructure, and construction of the income-eligible units. The City financing will be secured by a deed of trust and the loan will be in the form of a residual receipts loan in an amount not-to-exceed $1.3 million at zero percent interest for a 20- year term. At the end of the 20-year term, any principal and interest balance will be due and payable to the City. The City’s loan will include an affordability covenant that will restrict the rent to income-qualifying tenants at less than 80 percent of AMI.

If approved by the Council, DAC and Emergent 3D plan to order the COBOD 3D printer equipment and anticipate the printer will arrive within the next five to six months. Once the printer is received, the Enterprise Park host unit will be the first constructed with the Reginato River Access Park unit following. The St. Marks Street project will be designed over the next few months with construction following the park host units. Overall, DAC and Emergent 3D plan to partner with the City and develop 24 income-qualifying, 3D printed housing units.

Following construction of each unit, AccessHome will manage each park host unit and own/operate the St. Mark’s units to ensure that each unit is available to and occupied by incomequalifying tenants for the affordability period.

Staff believes funding the projects will increase the overall public benefit by providing additional income-qualifying housing choices within the community, improving the safety and accessibility of parklands, and introducing an innovative new method of construction technology. Should the projects be built according to the anticipated timeline, the City of Redding will have built the first on-site constructed, 3D printed home in California.

Council Priority/City Manager Goals
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
• Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”
Packet Pg. 109 Attachment: 3D Printer Homes Staff Report (4.2(c)--Amend Development Agreements (C-9068 and C-9406)) Report to Redding City Council August 30, 2021
Re: 9.2(b)--Development Agreements 3D Printer Construction Page 5 Attachments
Enterprise Park Host DA (available online)
John Reginato Access Park Host DA (available online)
St. Marks Project DA (available online)
3D Printing Techology (available online)
Packet Pg. 110 Attachment: 3D Printer Homes Staff Report (4.2(c)--Amend Development Agreements (C-9068 and C-9406)) Packet Pg. 111
Attachment: ^Amendments to the DA DOT HOME and NOTE - EP (4.2(c)--Amend Development Agreements (C-9068 and C-9406)) Packet Pg. 112
Attachment: ^Amendments to the DA DOT HOME and NOTE - EP (4.2(c)--Amend Development Agreements (C-9068 and C-9406)) Packet Pg. 113
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Attachment: ^Amendments to the DA DOT HOME and NOTE - EP (4.2(c)--Amend Development Agreements (C-9068 and C-9406)) Packet Pg. 117
Attachment: ^Amendments to the DA DOT and NOTE - RBR (4.2(c)--Amend Development Agreements (C-9068 and C-9406)) Packet Pg. 118
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Attachment: C-9406 - Development Agreement - 2022 - Rescources for Rural Community Development, Inc. dba AccessHome (4.2(c)--Amend The specific scope of work to be carried out by the Operator under this Agreement is more particularly described in this Agreement, the Scope of Development and the Preliminary Project Design Package (Exhibit 8.5).

2.3 Term. This Agreement shall commence as of the Effective Date and proceed as required by the Agreement and the Schedule of Performance, and shall terminate upon the occurrence of all of the following ( except for any deed restrictions, covenants running with the land, or other agreements or provisions which by their terms survive the term of the Agreement):
a) Completion of the construction of the Project in accordance with this Agreement; and b) Fulfillment by the parties of their obligations under this Agreement including but not limited to, all affordability requirements set forth herein

3. Project Financing.
3 .1 City Assistance; City Loan. In order to effectuate the completion of the Project on the Property, the City shall provide project financing to the Operator for the sole purpose of assisting with construction costs of the Affordable Unit within the Project (City Loan). The City Loan shall be in a total amount that shall not exceed Three Hundred Thirty-Seven Thousand One Hundred Ninety-six No/100 Dollars ($337,196). The City Loan includes Park In-Lieu fees of $100,000 from the Community Services Department.

3.1.1 City Loan Terms and Conditions. The City Loan shall be evidenced by a promissory note ( City Promissory Note) in favor of City for the full amount of the City Loan. The City Promissory Note shall bear zero interest. Required payments will be based on residual receipts as defined in 1.44 and 1.45 of this Agreement and the Promissory Note. Twenty-years (20) from the date set forth in the City Promissory Note, the term of the loan expires, any remaining balance of principal and interest is due.

This City Promissory Note shall not be assumable by the successors and assigns of Operator without the prior written consent of the City, whereby such consent shall not reasonably be withheld.

3.2 Repayment of City Loan. One hundred twenty (120) Days from completion of the Certificate of Completion, monthly installments, as identified within the City Promissory Note, will begin and continue for a period of twenty (20) years. Payments received by the City or its loan servicing agent shall be applied first to the interest and subsequently to reducing the principal as identified in the City Promissory Note.

Operator, or other party authorized by this Agreement, including any successors and assigns, may pay in full, or any part of, the City Loan prior to the due date without penalty.

Subject to the notice and cure rights set forth in Section IO.I, the full amount of the City Loan, including principal and all accrued interest, shall become immediately due and payable upon the occurrence of any of the following:
a) Operator's failure to proceed with and complete the Project in accordance with the Schedule of Performance;
b) Operator abandons or substantially suspends construction of the Project for a pa g c 8 I 27
Development Agreement between City and AccessHome
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TRANSMITTAL FORM
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TO CITY ATTORNEY (225-4050) & CITY CLERK (225-4439)
Agreements ◊ Bonds ◊ Contracts ◊ Leases ◊ Escrow Instructions ◊ Deeds◊ Securities ◊ Resolutions ◊ Ordinances◊ 0 inions Date: 10/05/2021 From: Nicole Smith ---------------------------- Dept. Name: _H_o_u_s_in_g ________ Dept. # _9_9_6 __ Phone: 225-4336 Person most knowledgeable: _s_a_m_e __________ _
INSURANCE REQUIREMENTS MET? When submitting contract for review, you must also submit an Insurance· Transmittal Form to Risk so insurance can be requested and approved in PINS. If not, your contract will be held in the Clerk's Office. For help contact Risk Liability at [email protected] or (530) 225-4385.

DESCRIBE ATTACHED DOCUMENT(S)
Document Title: Enterprise Park Development Aoreement
OutsideParty(ies):_A_c_c_e_s_s_H_o_m_e __________________________ _ Project/Purpose: Development Aqreement for Enterprise Park Host Home COUNCIL APPROVAL REQUIRED? No C[1es 9ZJ IF YES, DATE OF MEETING: Q/7/21 Agenda Item#: 9.2b Was contract/agreement the result of an RFP or Bid? No 0Y' es □ Bid Schedule # or RFP #:

REQUEST FOR ATTORNEY SERVICES
D Attorney Reviews Draft - All documents must be reviewed & approved before ob~~-...:!!!:
□
When amending contracts, attach a copy of original contract and all prior amendments. Do not e-mail documents without prior approval.

Return drafts to: _____________________ (to finalize & obtain outside signatures) ✓ I Attorney Signs Originals. Approving As To Form After: (1) draft has been previously reviewed & approved by Attorney; (2) Dept. has obtained outside signatures. Please submit 2 originals. Use paperclips □
- no staples - and affix "Sign Here" tabs on all signature pages. (Attorney approval mandatory - RMC §4.20.120.A)
*Nate: Signed originals will be forwarded to City Clerk for necessary City signatures, insurance ti_:,i other requirement verification, and processing.

Mailing/ distribution Instructions: ~(~)~. '-i ~(i=Q,~':l=;,~t~h:~)f~r, 'I .... V~' __ -·-~; ~r-:::;_· _:_..r~){=) ..... r~·~~:·i~>i~l=;<l=i'~l ..,,,,(..,.,.]-i~-; (~1 _,~_-_:.l_~ __ :_,;~_,;J~_i,.,_''t_'; j2_ t-,c:!rt _1• .vl) , r··,rl c) / ,:1(J' v \I
Prepare Certificate of Acceptance ( easement & grant deeds) Memo or additional info is attached.

Please note the exhibits to be signed will follow under separate cover.

City Attorney Log# _______ _
Logged Out By: ___ ..,,../_/\Ji_\_c<-'ls_,,,--__ _
Packet Pg. 228 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend ,: ,,,
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CITY OF REDDING

REPORT TO THE CITY COUNCIL
MEETING DATE:

ITEM NO.

September 7, 2021

9.2(b)
FROM:
*** APPROVED BY***
8/27/2021
Steve Bade, Deputy City
Manager
8/30/2021
SUBJECT: 9 .2(b )--Consider Development Agreements for 3D Printer Construction of · units in the Cit · .

Recommendation
Authorize the following actions regarding the development of 3D Printed Construction of income-qualifying housing units at Enterprise Community Park, the John Reginato River Access Park, and 745 and 785 St. Marks Street:
(1) Approve and authorize the execution of a Development Agreement between the City of Redding and Resources for Rural Community Development, Inc., dba AccessHome (AccessHome) providing a City Loan in an amount not-to-exceed $337,196 for the development of a park host home at Enterprise Community Park; (2) Approve and authorize the execution of a Development Agreement between the City and AccessHome providing a City Loan in an amount not-to-exceed $337,196 for the development of a park host home at John Reginato River Access Park; (3) Approve and authorize the execution of a Development Agreement between the City and AccessHome providing a City Loan in an amount not-to-exceed $1,800,000 for the development ofup to six housing units at 745 and 785 St. Marks Street; and (4) Approve and authorize the City Manager, or designee, to execute all necessary documents as detailed within each Development Agreement, including the associated Ground Leases, Park Host Agreements, and any other related documents necessary to complete each transaction.

Fiscal Impact
The combined development loans for the projects total $2,474,392 which will be comprised of funding from the Home Investment Partnerships (HOME) Program, HOME American Rescue Plan (HOME-ARP) funding, Affordable Housing Loan Fund (AHLF), Community Development Block Grant (CDBG) Program, Permanent Local Housing Allocation (PLHA), and $200,000 of Park In-Lieu proceeds.

Packet Pg. 229 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend ClTY OF REDDING
and
RESOURCES FOR RURAL COMMUNITY DEVELOPMENT, INC.

Enterprise Park Host Project
CITY MANAGER OFFICE.! !OUSING DIVISION
Development Agreement Between the City and AccessHome Page 1 of28 Packet Pg. 230 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend

DEVELOPMENT AGREEMENT
This DEVELOPMENT AGREEMENT ("Agreement") is made and entered into by and between the CITY OF REDDING, a municipal corporation and general law city ("City"), and RESOURCES FOR RURAL COMMUNITY DEVELOPMENT, INC. dba AccessHome, a California non-profit corporation ("Owner/Operator" or "AccessHome").

RECITALS
A. The City owns property located at 4000 Victor A venue, Redding, Shasta County, California, Assessor's Parcel Number 068-290-004-000 (the "Enterprise Park Property") Redding, Shasta County, California, as further described in Exhibit 1 "Legal Description" respectively; and depicted in Exhibit 2, "Location Map," attached hereto and incorporated by reference herein.

B. On March 3, 2020, City Council approved $100,000 of Park In-Lieu funds for the development of Park Host Housing at the Enterprise Park Property to provide consistent onsite coordination that dissuades vandalism and improves park safety.

C. City is a HOME Participating Jurisdiction that distributes HOME Investment Partnerships Program ("HOME") funds geographically within its boundaries.

D. The United States Department of Housing and Urban Development ("HUD") allocates funds to the HOME Investment Partnerships Program ("HOME"), authorized by Title II of the Cranston-Gonzalez National Affordable Housing Act of 1990. The objectives and intent of the HOME Program are to provide decent affordable housing to lower-income households; to strengthen the ability of state and local governments to provide housing; to expand the capacity of non-profit housing providers; and to leverage private sector participation.

E. The Project is a qualifying Community Housing Development Organization (CHDO) activity pursuant to HOME Final Rule 24 Code of Federal Regulations Part 92. Each year, the City must set aside 15 percent of its annual allocation to be used in CHDO activities.

F. Owner/Operator is a qualified CHDO under the HOME Program and will oversee all aspects of the development and will act as the Owner/Operator subsequent to Project completion G. The City desires to provide HOME funds as a loan to Owner/Operator for the development and construction of the Project. The City reserves the right, in its sole discretion, to utilize any other affordable housing funding sources available to it with allocated Park-In Lieu funds, to fulfill the obligations set forth in this Agreement.

H. The City and Owner/Operator agree that the shortage of construction workers has reached critical levels thereby driving construction costs beyond acceptable levels and extending the production time of income-qualified housing.

I. Don Ajamian Construction, a California corporation and general contractor and Development Agreement Between the City and AccessHome Page 2 of28 Packet Pg. 231 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend Emergent 3D, a California limited liability corporation (collectively "Contractor") provides 3D Printed Building Construction services to the Redding area. 3D Printed Building Construction, when combined with conventional construction methods, provides home construction that innovates the local construction industry and solves housing cost and production delays.

J. The City and Owner/Operator desire to enter into this Agreement to set forth the mutual obligations of the City and Owner/Operator in connection with the design, financing and construction of the Project.

K. The City anticipates partnering with the Contractor to develop a total of twenty-four 3D Printed Building Construction projects over the next four years to increase rental and homebuyer opportunities in the community.

AGREEMENT

1. Definitions. The following definitions shall apply for the purposes of this Agreement:

1.1 "Affordable Rent" shall have the meaning set forth in the City's Declaration of Affordability Restrictions.

1.2 "Affordable Unit" shall mean the single-family rental unit developed on the Property which is restricted by the City's Declaration of Rent Restrictions as further defined in Exhibit 4.

1.3 "Affordability Period" . shall mean a period commencing upon the date of the Certificate of Occupancy issued by the City's Building Division for the Project and continuing for twenty (20) years, the period of affordability.

1.4 "Area Median Income or AMI" shall mean the current area median income adjusted for family size appropriate to the size of the rental unit applicable to Shasta County, as determined by the United States Department of Housing and Urban Development (HUD).

1.5 "Certificate of Completion" shall mean the document attached as Exhibit 11.

1.6 "Certificate of Occupancy" shall mean the document issued by the City's Building Division certifying that the project has been completed according to the approved plans and applicable building codes.

1. 7 "City" shall mean the City of Redding. The City is a municipal corporation and general law city. City as it is used in this Agreement includes the City Council of the City and any assignees of or successors to its right, powers, and responsibilities. The principal office of the City is located at 777 Cypress A venue, Redding, California 96001. The phone number for voice communication with the City (Mark Christ, Associate Project Coordinator) is 530.245.7136 and for email transmittal to the City is [email protected].

1.8 "City Assistance or City Loan" shall mean the financial assistance provided by the City to Owner/Operator pursuant to Sections 3 .1 and 3 .2.

Development Agreement Between the City and AccessHome Page 3 of28 Packet Pg. 232 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend

1.9 "City Manager" shall mean the City Manager of the City of Redding.

1.10 "Code of Federal Regulations" or "CFR" is the codification of the general and permanent rules published in the Federal Register by the executive departments and agencies of the Federal Government.

1.11 "Combined Loan-To-Value" shall mean the ratio of Other Financing, as described in Section 3.3, plus the City Loan divided by the Market Value of the completed Project.

1.12 "Completion Date" shall mean the date stated in the Schedule of Performance for the completion of construction of the Project.

1.13 "Consulting and Professional Services Agreement or Park Host Agreement" shall mean that certain contract entered into and between the City of Redding Community and AccessHome for Park Host services. Should this agreement terminate, the long-term lease automatically terminates as well.

1.14 "Construction" shall mean (whether or not capitalized) unless the context clearly indicates otherwise, the construction of the Project on the Property and all required public improvements in accordance with the final Project Specifications and this Agreement.

1.15 "Contractor" shall mean the contractor or contractors with whom the Owner/Operator _contracts for the construction. Contractor must have a current and valid contractor's license issued by the California Contractors' State License Board for the construction. Don Ajamian Construction and Emergent 3D LLC are collectively considered the contractor for this Project.

1.16 "Days" shall mean calendar days unless expressly stated otherwise. If the date or time period for any action under this Agreement falls or ends on a Saturday, Sunday or federal, state or legal holiday, then such date or time period shall automatically be extended until 5 p.m. Pacific Time of the next day which is not a Saturday, Sunday or federal, state or legal holiday.

1.17 "Declaration of Rent Restrictions" shall mean the document recorded against the Property to enforce the Affordability Period and Affordable Rent for the Affordable Unit, a representative copy of which is attached hereto as Exhibit 4.

1.18 "Deed of Trust" or "City Deed" shall mean the deed of trust recorded against the Property to secure the City Loan, a copy of which is attached as Exhibit 5.

1.19 "Development Agreement" or "Agreement" is this agreement which includes this document and the referenced exhibits and attachments to this Agreement, which are all incorporated in this Agreement as if set forth in full in the body of the Agreement.

1.20 "Owner/Operator" shall mean AccessHome Inc., a California Nonprofit Benefit Corporation. The principal office and mailing address of the Owner/Operator is 715 Parkview A venue # 1, Redding, CA 96001. The phone number for voice communication with the Owner/Operator is 530.224.2800 and for email transmittal to the Owner/Operator is [email protected]. Owner/Operator as it is used in this Agreement, shall include any permitted nominee, assignee, or successor in interest as herein provided.

1.21 "Development Team" shall mean designated representatives from the City and Development Agreement Between the City and AccessHome Page 4 of28 Packet Pg. 233 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend Owner/Operator to function as a team to ensure the Project is developed in accordance with this Agreement.

1.22 "Effective Date" shall mean the date this Agreement is signed by the City or its designee authorized to sign on behalf of the City.

1.23 "Escrow Closing Costs" shall mean the fees, charges and costs identified in Section

3.8 applicable to the City Loan Documents.

1.24 "Extremely-Low Income Household shall mean a household whose income does not exceed 30 percent (30%) of the Area Median Income adjusted for family size appropriate to the size of the rental unit applicable to Shasta County, as established and amended from time to time by HUD and as set forth in in HSC Division 31, Section 50106.

1.25 "Final Plans" or "Final Project Plans" are the complete set of architectural and civil engineering plans and specifications for the Project which include the City's Development Services and Land Development Divisions' conditions of approval and have been approved by the City's Building Division and Engineering Division.

1.26 "Health and Safety Code (HSC)" shall mean the California Health and Safety Code.

1.27 "HOME" shall mean the HOME Investment Partnerships Program as authorized by Title II of the Cranston-Gonzalez National Affordable Housing Act as amended. The implementing regulations are found at 24 CFR Part 92.

1.28 "HOME Affordability Period" shall mean the period commencing upon the date of recordation of a Notice of Completion by the Owner/Operator for the Project and continuing for twenty (20) years as further defined in the HOME Agreement attached as Exhibit 3.

1.29 "Lease Agreement" shall mean the written agreement negotiated between the City and Owner/Operator for the lease of the Property.

1.30 "Lender" shall mean all holders, including the holder of any construction or any permanent loan with a lien in first position or encumbrance as security for financing on all or any part of the Property and references to the Property shall mean that portion of the Property so encumbered.

1.31 "Long-term lease" or "Ground Lease" shall mean the lease agreement equal to the period of affordability or 20-years for the Property attached as Exhibit 7. The single-family home will be made available to, restricted occupancy to and rented at an affordable rent to income qualifying households as defined within this agreement.

1.32 "Low-Income" or "Lower-Income Household" shall mean a household earning no greater than eighty percent (80%) of Shasta County median income adjusted for household size as established and amended from time to time by HUD and as set forth in Health and Safety Code Section 50079.5, as it exists as of the date of this Agreement.

1.33 "Notice of Completion" is the document attached as Exhibit 12.

1.34 "Other Financing" shall mean all non-City financing sufficient to complete the Development Agreement Between the City and AccessHome Page 5 of28 Packet Pg. 234 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend Project pursuant to Section 3.3.

1.35 "Plans" are the Preliminary Plans and/or the Final Plans, or both, as the context requires.

1.36 "Preliminary Plans" are all the necessary plans, documents, and supplemental information to comprise a complete application for the entitlements necessary to develop the Project, as required by the City's Development Services Department.

1.37 "Preliminary Project Budget" shall mean the document attached as Exhibit 9.

1.38 "Project" shall mean improvements to be constructed on the Property in accordance with the approved architectural plans and this Agreement. The improvements include, but are not limited to, the construction of one single-family home that includes the common areas and the associated infrastructure to complete the Project. The maintenance of each single-family unit will be pursuant to lease negotiations between the City and the Owner/Operator for each Property prior to occupancy. Additional Project detail is further described and provided in this Agreement, the Scope of Development and the Project Final Plans.

1.39 "Project Budget" shall mean the identification of costs for development and construction as required in Section 5.1 of thi~ Agreement. A Project Budget is attached to this Agreement as Exhibit 9.

1.40 "Project Manager" shall mean the City's designee of a City staff person to verify development and construction compliance with this Agreement and to distribute construction draw requests.

1.41 "Promissory Note" or "City Promissory Note" shall mean the promissory note to be executed by Owner/Operator which evidences the City Loan, a copy of which is attached as Exhibit

6. 1.42 "Property" or "Project Site" shall mean the City's real property located at 4000 Victor Avenue, Redding, Shasta County, California, Assessor's Parcel Number 068-290-004-000 (the "Enterprise Park Property"). The Enterprise Park Property as described in Exhibit 1 "Legal Description" respectively; and depicted in Exhibit 2, "Location Map," respectively.

1.43 "Redevelopment Law" shall mean California Community Redevelopment Law as contained in California Health and Safety Code Section 33000 et seq and statutes referenced therein.

1.44 "Residual Receipts" shall mean any Project net income remaining after:
a) Payment of allowable distributions to the Owner/Operator that include any withdrawal, taking or payment of any assets, subsidies, earnings or income of the Project excluding payments for current and budgeted Operating Expenses of the Project. Distributions shall be payable only after payment of Operating Expenses and Non-Standard Operating Expenses and shall be limited to 50% of the net income remaining after payment of Operation Expenses and Non-Standard Operating Expenses, as defined below:
i) Operating Expenses means all reasonable and proper expenses, as approved by the City, of the operation of the Project including, but not limited to, loan payments Development Agreement Between the City and AccessHome Page 6 of28 Packet Pg. 235 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend payable before the calculation of allowable Distributions as approved by the City, the annual servicing fee, if applicable, insurance, real estate taxes, ordinary maintenance and repair, costs of marketing, project management, supportive services, fuel, utilities, garbage disposal, sewer charges, audit expenses, the required impounds, reserve and escrow deposits, reasonable attorney fees incurred in operating the Project, and such other payments as the City may require or specifically approve in writing as Operating Expenses. In no event shall attorney fees or litigation costs other than as stated, or expenditures normally required to be paid out of the replacement reserve, be treated as Operating Expenses unless specifically approved in writing by the City. ii) Non-Standard Operating Expenses means expenses as approved in writing by the City payable after all Operating Expenses and before Distributions. Non-Standard Operating Expenses shall be paid in the following priority and may include (if applicable) the following: (i) cash flow operating reserves; (ii) non-City required operating reserves funded from Project cash flow; (iii) deferred Owner/Operator fee ( only if the Project was funded with the proceeds from the sale of tax credits and the Project has a limited partner investor) payable as determined by Owner/Operator, not to exceed the total approved deferred Owner/Operator fee; and (iv) partnership asset management fees.

1.45 "Residual Receipts Loan" shall mean a loan, the repayment of which is dependent upon the availability of net income remaining after deducting the amount necessary to satisfy City approved Operating Expenses, Non-Standard Operating Expenses and distributions to the Owner/Operator associated with the operation and maintenance of the Project.

1.46 "Schedule of Performance" is attached as Exhibit 10.

1.4 7 "Scope of Development" is attached as Exhibit 8.

1.48 "Section 3 Clause" is attached as Exhibit 13.

1.49 "Security Documents" shall mean the following documents related to the Project:
the Deed of Trust; Promissory Note; the Declaration of Rent Restrictions; and the HOME Agreement.

1.50 "Subcontractor" shall mean those contractors or material suppliers with whom the Contractor contracts or with whom another subcontractor contracts for a portion of the construction.

Subcontractor must have a current and valid contractor's license, issued by the California Contractors' State License Board, for the work they are performing.

1.51 "Substantial Change" shall have the meaning described in Subsection 4.2.3.

1.52 "Units" shall mean the residential dwelling units constructed on the Site pursuant to this Agreement.

1.53 "Very-Low Income Household" shall mean a household earning no more than fifty percent (50%) of Shasta County median income adjusted for household size as determined by the United States Department of Housing and Urban Development (HUD) from time to time, for the HOME Program and as set forth in 24 CFR Part 92.2 as it exists as of the date of this Agreement.

2. The Agreement.

2.1 Purpose of the Agreement. The purpose of this Agreement is to further the goals Development Agreement Between the City and AccessHome Page 7 of28 Packet Pg. 236 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend of the City to increase, improve, and preserve affordable housing by assisting the Owner/Operator with the development of the Property and the completion of the Project in accordance with the Final Plans and this Agreement.

The City represents that the development of the Property and completion of the Project, under this Agreement, and the fulfillment generally of this Agreement, are in the vital and best interests of the City of Redding and the health, safety, morals and welfare of its residents; for the purpose of community improvement and welfare; and to improve, preserve, and increase the supply of affordable housing. Except for the risks and speculation inherent with respect to real estate development projects, Owner/Operator represents and agrees that its development of the Project under the Agreement is not intended for speculation in land holding.

It is contemplated by the parties that all activities undertaken by Owner/Operator will be in accordance with this Agreement. All attachments and exhibits are hereby incorporated into this Agreement by reference.

2.2 Scope of Work. It is contemplated by the parties that the Owner/Operator will develop the Project on the Property. AccessHome, in its capacity as a CHDO, will execute a longterm lease for the Enterprise Property with the City of Redding for the extent of the 20-year period of affordability. The Project will consist of one 3D Printed Construction Technology unit, consisting of three bedrooms and two bathrooms as portrayed in Exhibit 8.5. In general, the Scope of Work will include architectural drawings, building permits, lot preparation and clearing, foundation excavation, footings poured and set, foundation poured, driveway constructed, all infrastructure and site development necessary for Project completion. AccessHome will then sublease the unit to an income eligible occupant as more completely described in the HOME Agreement and the Park Host Agreement executed with the City of Redding' s Community Services Department. The specific scope of work to be carried out by the Owner/Operator under this Agreement is more particularly described in this Agreement, the Scope of Development and the Preliminary Project Design Package (Exhibit 8.5).

2.3 Term. This Agreement shall commence as of the Effective Date and proceed as required by the Agreement and the Schedule of Performance, and shall terminate upon the occurrence of all of the following ( except for any deed restrictions, covenants running with the land, or other agreements or provisions which by their terms survive the term of the Agreement):
a) Completion of the construction of the Project in accordance with this Agreement; and b) Fulfillment by the parties of their obligations under this Agreement.

3. Project Financing.

3.1 City Assistance; City Loan. In order to effectuate the completion of the Project on the Property, the City shall provide project financing to the Owner/Operator for the sole purpose of assisting with construction costs of the Affordable Units within the Project (City Loan). The City Loan shall be in a total amount that shall not exceed Three Hundred Thirty-Seven Thousand One Hundred Ninety-six No/100 Dollars ($337,196). The City Loan includes Park In-Lieu fees of $100,000 from the Community Services Department.

3.1.1 City Loan Terms and Conditions. The City Loan shall be evidenced by a promissory note (City Promissory Note) in favor of City for the full amount of the City Loan. The Development Agreement Between the City and AccessHome Page 8 of28 Packet Pg. 237 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend City Promissory Note shall bear zero interest. Required payments will be based on residual receipts as defined in 1.44 and 1.45 of this Agreement and the Promissory Note. Twenty-years (20) from the date set forth in the City Promissory Note, term of the loan expires, any remaining balance of principal and interest is due. The City Promissory Note shall be secured by a Deed of Trust (City Deed) executed by Owner/Operator and recorded on the Property.

The City Deed shall be a lien on the Property which shall be junior only to the deeds of trust securing Other Financing described in Section 3 .3 of this Agreement and the Declaration of Affordability Restrictions.

This City Promissory Note shall not be assumable by the successors and assigns of Owner/Operator without the prior written consent of the City, whereby such consent shall not reasonably be withheld.
3 .2 Repayment of City Loan. One hundred twenty ( 120) Days from recordation of the Certificate of Completion, monthly installments, as identified within the City Promissory Note, will begin and continue for a period of twenty (20) years. Payments received by the City or its loan servicing agent shall be applied first to the interest and subsequently to reducing the principal as identified in the City Promissory Note.

Owner/Operator, or other party authorized by this Agreement, including any successors and assigns, may pay in full, or any part of, the City Loan prior to the due date without penalty.

Subject to the notice and cure rights set forth in Section 10.1, the full amount of the City Loan, including principal and all accrued interest, shall become immediately due and payable upon the occurrence of any of the following:
a) Owner/Operator's failure to proceed with and complete the Project in accordance with the Schedule of Performance;
b) Owner/Operator abandons or substantially suspends construction of the Project for a period of three (3) months after written notice of such abandonment or suspension from the City;
c) Owner/Operator fails to utilize the Property for the Project within the timeframe set forth in the Schedule of Performance or as or as authorized in writing; d) Owner/Operator fails to comply with the affordability covenants set forth in this Agreement and the exhibits to the Agreement; or
e) Other material breach of this Agreement following expiration of applicable notice and cure periods.

The City's overall intention is to forgive the City Loan over time. After the Owner/Operator fulfills its twenty (20) year obligation under this Agreement, the City Loan shall be forgiven in its entirety and the asset reverted to the City's Community Services Department.

3.3 Other Financing. Owner/Operator shall obtain other financing that shall be sufficient for the completion of the Project and its operation in conformity with this Agreement when combined with City financing. The City of Redding Community Services Department will provide $100,000 toward the construction costs of the Project.

If necessary, the Owner/Operator shall contribute additional funds, i.e., personal resources, Redding Electric Utility Rebates or any other funds that when combined with the City Loan and any other Development Agreement Between the City and AccessHome Page 9 of28 Packet Pg. 238 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend financing, will complete the Project in conformity with this Agreement.

3.3.1 Approval of Other Financing Commitments. Owner/Operator shall provide to City for review and approval evidence of a firm and binding commitment for the private loan amount as well as any other private financing necessary for the Project. Such commitments shall be subject only to reasonable conditions of the Lender necessary to assure the value and security of its loan. Such commitments shall not be subject to conditions which require amendment of this Agreement or other agreements between Owner/Operator and City without City approval.

Said commitments shall be, in the aggregate, in a total amount sufficient to complete development of the Project as provided in the Project Budget and to fulfill all other obligations of this Agreement.

3.4 Limitation on Encumbrances; Subordination to Other Financing. Prior to the completion of the Project, Owner/Operator shall not engage in any financing or any other transaction creating any encumbrance or lien on the Property, whether by express agreement or operation of law, except to obtain funds to be used only for actual costs of the Project and other expenditures necessary and appropriate to develop the Property in accordance with this Agreement. Owner/Operator shall notify the City in advance of any proposed financing to be secured by the Property. In any event, Owner/Operator shall promptly notify the City of any encumbrance or lien that has been created on or attached to the Property. If Owner/Operator is not in default of this Agreement, and if City approves all of the private financing documents, including the terms of any subordination agreement, which approval shall not be unreasonably withheld, City will subordinate its Deed of Trust to the lien of a construction deed of trust and permanent deed of trust, for such financing.

3.5 Provisional Refinancing. The Owner/Operator may, without City consent, refinance any indebtedness secured by an encumbrance which is superior to the City Deed, provided that the refinanced encumbrance shall have the following characteristics:
a) Amount. The refinanced encumbrance shall not secure indebtedness in a dollar amount greater than the balance owed on the indebtedness plus reasonable costs related to the refinancing to which the City's interest was originally subordinated, unless otherwise approved by the City Manager.
b) Debt Service. The debt service of the refinanced indebtedness shall be an amount which does not exceed the amount of the debt service of the indebtedness to which the City's interest was originally subordinated.
c) No Monies to Owner/Operator. Owner/Operator shall receive no fees or monies as a result of the refinancing of the indebtedness of the Project unless otherwise approved by the City Manager.
d) Subordination Agreement. Subject to City approval, which approval shall not be unreasonably withheld, upon request, City shall execute any document reasonably required to evidence the subordination of the City's Deed of Trust to a permitted indebtedness or refinancing.

City shall allow the Declaration of Affordability Restrictions to be recorded on the Property junior only to 1) the lien of the construction lender securing funds for construction of the Project; and 2) the lien of a permanent loan so long as the permanent loan is for an amount not greater than the amount due and owing by the Owner/Operator pursuant to the construction loan plus customary fees and costs payable for the benefit of the permanent lender in connection with the permanent loan and upon satisfaction and release and reconveyance of the deed of trust securing repayment of the construction loan. In the event a subordination agreement meets these requirements, the City Manager shall be authorized to execute the subordination agreement on behalf of the City without additional Development Agreement Between the City and AccessHome Page 10 of28 Packet Pg. 239 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend authorization by the City Council.

3.6 Assurances to Lenders. The City and the Owner/Operator shall, in good faith, consider making such reasonable modifications to this Agreement and executing such further instruments and agreements as a Lender, secured by an interest in the Property, may reasonably request to acknowledge and protect such Lender's rights, provided such modifications, instruments, and agreements do not materially adversely affect any party's rights or obligations under this Agreement and provided such modifications, instruments, and agreements serve a material economic purpose.

3.7 No Reimbursement. Except as expressly provided in this Agreement, no person shall have the right of reimbursement from the City for any funds expended by them for the Project prior to execution of this Agreement. This provision does not preclude any person from receiving reimbursement from persons other than the City.

3.8 Escrow. If requested by City, within ten (10) Days of the Effective Date of this Agreement, Owner/Operator agrees to establish an escrow account with a title and escrow company mutually agreeable to both parties ("Escrow Agent"). This Agreement constitutes the joint escrow instruction of the City and the Owner/Operator with respect to the recording of the City security documents and a duplicate original of this Agreement shall be delivered to the Escrow Agent. The City and Owner/Operator shall provide the Escrow Agent with such additional escrow instructions as shall be necessary and consistent with this Agreement. The Escrow Agent is hereby empowered to act under this Agreement, and upon indicating its acceptance of the provisions of this Section 3 .8 in writing, delivered to the City and to the Owner/Operator within five (5) Days after receipt of this Agreement, shall carry out its duties as Escrow Agent hereunder. Close of escrow shall occur within thirty (30) Days from the opening of escrow.

The Escrow Agent is authorized to pay and charge the Escrow Account for the following fees, charges and costs (Escrow Closing Costs):
a) the escrow fee;
b) recording fees, if any; and
c) premiums for standard ALTA title insurance policies for the City Loan, if any.

Before such payments are made, the Escrow Agent shall notify the City and the Owner/Operator of the amount of the Escrow Closing Costs. The City will pay in escrow to the Escrow Agent the agreed upon Escrow Closing Costs. Payment shall be made promptly after the Escrow Agent has notified the City and Owner/Operator of the amount of Escrow Closing Costs but no earlier than ten (10) Days prior to the scheduled date for close of escrow. The amount disbursed for the Escrow Closing Costs shall be deducted from the proceeds of the City Loan described in Section 3.1 of this Agreement. In addition, the Escrow Agent is authorized to:
a) Deliver any documents to the parties entitled thereto when the conditions of the escrow have been fulfilled by the City and the Owner/Operator. b) Record any instruments delivered through the escrow, if necessary or proper, in accordance with the terms and provisions of this Agreement.

If the escrow is not in condition to close within the timeframe stated above, either party who then shall have fully performed the acts to be performed may, in writing, terminate this Agreement in Development Agreement Between the City and AccessHome Page 11 of28 Packet Pg. 240 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend the manner set forth in Section 10 hereof, and demand return of its money, papers, or documents.

Thereupon, all obligations and liabilities of the parties under this Agreement shall cease and terminate in the manner set forth in Section 10 hereof. If neither the City nor the Owner/Operator have fully performed the acts to be performed before the scheduled closing date, no termination or demand for return shall be recognized until ten (10) Days after the Escrow Agent shall have mailed copies of such demand to the other party or parties at the address of its or their principal place of business. If any objections are raised within the ten (10) Day period, the Escrow Agent is authorized to hold all money, papers and documents until instructed in writing by all parties to this Agreement or, upon failure thereof, by a court of competent jurisdiction. If no such demands are made, the escrow shall be closed as soon as possible. Nothing in this Section 3.8 shall be construed to impair or affect the rights or obligations of the City or the Owner/Operator to specific performance.

Any amendment of these escrow instructions shall be in writing and signed by the City Manager and the Owner/Operator. At the time of any amendment, the Escrow Agent shall agree to carry out its duties as Escrow Agent under such amendment.

All communications from the Escrow Agent to the City or the Owner/Operator shall be directed to the addresses and in the manner established in Section 11.9 of this Agreement.

The liability of the Escrow Agent under this Agreement is limited to performance of the obligations imposed upon it under Section 3.8 of this Agreement.

3.8.1 Execution and Deposit of Declaration of Rent Restrictions and Notice of Affordability Restrictions on Transfer of Property; Recordation of Declaration and Notice. Prior to the close of escrow, the Owner/Operator shall deposit the executed Declaration of Rent Restrictions, and concurrently with close of escrow, Escrow Agent shall file the Declaration and Notice for recordation on the Property with the Office of the Recorder of the County of Shasta. Said Declaration shall be recorded on the Property junior only to 1) the lien of the construction lender securing funds for the construction of the Project; and 2) the lien of a permanent loan so long as the permanent loan is for an amount not greater than the amount due and owing by the Owner/Operator pursuant to the construction loan plus customary fees and costs payable for the benefit of the permanent lender in connection with the permanent loan and upon satisfaction and release and reconveyance of the deed of trust securing repayment of the construction loan.

3.8.2 Execution and Deposit of City Promissory Note and Deed; Recordation of Deed of Trust. Prior to the close of escrow, the Owner/Operator shall deposit the executed City Promissory Note and the executed City Deed of Trust with the Escrow Agent. With close of escrow, the Escrow Agent shall file the City Deed of Trust for recordation on the Property with the Office of the Recorder of the County of Shasta. The City Deed shall be a lien against the Property which shall be junior to a deed of trust securing the Other Financing as described in Section 3.3 of this Agreement.

3.8.3 Title Insurance. Concurrently with the recordation of the City Deed of Trust on the Property, Escrow Agent shall issue and deliver to the City an AL TA Lender's Policy of Title Insurance for the full amount of the City Loan, showing that title to the Property is vested in the Owner/Operator and insuring City as beneficiary if requested by City.

4. Preparation of Plans and Related Documents.

4.1 Project Manager. Subject to the terms of this Agreement, City shall designate .a Project Manager who shall, in addition to other responsibilities under this Agreement, have the right Development Agreement Between the City and AccessHome Page 12 of28 Packet Pg. 241 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend of architectural and site planning review of all plans and drawings, including but not limited to complete structural and engineering plans, landscape plans, and grading plans associated with the Project as well as any changes therein.

4.2 City Review of Substantial Changes to Final Plans.

4.2.1 City Project Manager Approval. Notwithstanding the foregoing, any Substantial Change in the Final Plans is subject to City approval. If the Owner/Operator desires to make a Substantial Change in the Final Plans, the Owner/Operator shall submit such proposed change, in writing, to the City for the Project Manager's approval, which approval shall not be unreasonably withheld. Substantial Changes to the Final Plans shall be deemed approved unless disapproved within fifteen (15) Days after their delivery to the City.

Nothing in this Section shall be construed to relieve Owner/Operator of its obligations under all applicable laws regarding such changes.

4.2.2 City Disapproval. If the Project Manager disapproves, in whole or in part, any Substantial Change in the Final Plans, the Project Manager shall state, specifically and in writing, at the time of disapproval, the reasons for disapproval and the changes which the City requests to be made for its approval. The reasons for disapproval and such City-requested changes shall be consistent with the approved Final Plans and Scope of Development. In no event may the City impose a Substantial Change upon the Project or change or modify any aspect of the Project approved by the City. Revised and resubmitted plans in response to a City disapproval shall be deemed approved unless the Project Manager, within fifteen (15) Days after proper delivery to City, disapproves the resubmitted plans in whole or in part, in writing.

4.2.3 Substantial Change. A Substantial Change in the Plans shall mean any of the following changes, with respect to the Project:
a) Changes in size or design resulting in an increase or decrease of greater than ten percent ( 10%) of square footage or density of Units. b) Changes in the mix of Units.
c) Changes in the total number of Units.
d) Changes in use of exterior finishing materials substantially affecting architectural appearance or functional use and operation of the Project. e) Material changes in size or placement of public service or handicapped facilities; or material changes in general pedestrian or vehicular circulation in, around or through the public areas of the Project.
f) Material changes in landscaping or in size or quality of exterior pavement, pedestrian walkways, parkways, or any public areas shown and specified in the Final Plans.
g) Any change which would preclude or materially reduce the ability to use the Project as set forth in the Plans.
h) Changes in the Final Project Budget or subsequent change orders that exceed an amount greater than thirty (30%) above the previously approved Preliminary Project Budget.

4.3 Purpose of Review and Approval. The City's Project Manager's review of the Final Plans and approval of the Final Plans and any Substantial Changes is not an assurance of the adequacy or correctness of the Final Plans. City has reserved its rights pursuant to Sections 4.3 solely to assure that the Firtal Plans conform to the Site Development Permit, the Scope of Development Development Agreement Between the City and AccessHome Page 13 of28 Packet Pg. 242 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend and the requirements of this Agreement.

4.4 Substantial Change to Project Cost. Should a substantial change in project cost occur between the Preliminary Project Budget and the Final Project Budget, the Owner/Operator is bound to abide by the renegotiated Final Project Budget cost figures and may need to obtain additional private or other types of financing to cover the Project cost.

5. Development of the Site.

5.1 Project Budget. At the times called for in the Schedule of Performance, the Owner/Operator shall provide to the City a complete final Project Budget for the construction of the Project in a form and with specificity reasonably satisfactory to the City, including all "hard" and "soft" costs for the Project and reflecting, as possible, executed contracts. Such final Project Budget shall be substantially in conformance with the terms of this Agreement and the Project Budget attached hereto as Exhibit 9.
5 .2 Disbursement of City Loan. The parties agree that upon close of escrow described in Section 3.8, the remaining proceeds of the City Loan not expended during escrow, will be placed into a non-interest-bearing account controlled by the City's Finance Department. Each and any disbursement of funds from this account shall require a written authorization signed by the City's Project Manager authorizing the release of the requested disbursement. The City's Project Manager shall provide such written approval, which shall not be unreasonably withheld, within ten ( 10) business days of receipt of the request from Owner/Operator.

5.2.1 Disbursement during Construction. Prior to any disbursement of City Loan proceeds for construction, Owner/Operator and City's Project Manager shall develop a mutually agreeable disbursement format. City may provide an advancement of funds at the request of the Owner/Operator to secure construction equipment or needed construction materials necessary to start construction. In part, this format shall include certifications from the Project's architect, engineer and/or general contractor that all materials and construction included in the request for disbursement are consistent with approved plans and specifications and that all materials have been delivered to the Site or installed and inspected as required. After any advancement, all disbursements shall be based on a percentage of completion and all disbursements shall reflect ten percent (10%) retention not including the costs of stored materials. (Retention shall be released upon the issuance of a Certificate of Completion for the Project.)
The City Loan shall be disbursed in accordance with the mutually agreed upon draw schedule described above. Disbursement shall be based upon satisfaction of the construction component upon which the draw request is based as determined in good faith by the City's Project Manager.

Disbursements shall not exceed aggregate amounts set forth in the accepted and approved construction contracts for the Project. Owner/Operator and City acknowledge that it shall be the sole responsibility of the Owner/Operator to obtain the required written authorization for any request for disbursement. 5 .3 Construction. The Owner/Operator shall construct the Project according to the requirements established in this Agreement, including, but not limited to, the Final Plans, the Scope of Development and the Schedule of Performance. In the event that the cost of construction of the Project, or any part of the Project exceeds the costs projected by Owner/Operator, the Owner/Operator shall, nevertheless, bear the responsibility to complete, at Owner/Operator's cost, the construction of the Project in accordance with this Agreement. The City and the Owner/Operator agree that such obligations of the Owner/Operator shall be covenants running with the land and that they shall, in any event, and without regard to technical classification or designation, be to the fullest Development Agreement Between the City and AccessHome Page 14 of28 Packet Pg. 243 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend extent permitted by law and equity, binding for the benefit of the City and enforceable by the City against the Owner/Operator, its successors and assigns. These covenants shall terminate upon the City issuing a Certificate of Completion for the Project.

5.4 Changes During Construction. The Owner/Operator covenants and agrees that the Owner/Operator shall not make or permit to be made any construction of the Project which incorporates a Substantial Change in the Final Plans without City approval of such changes. The Owner/Operator shall, prior to their occurrence, notify the City of all Substantial Changes in the construction as well as all changes which result in a material net increase in cost or extend the period for construction beyond the Completion Date. The City shall, in its sole discretion, approve or reject such changes in writing within 15 (fifteen) days after proper delivery to City.

5.5 No Construction Over Utility Easements. The Owner/Operator shall not construct any of the Project on, over, or within the boundary lines of any easement for public utilities on the Site, unless such construction is provided for in such easement or has been approved by the beneficiary of the easement.
5 .6 Commencement and Completion of Construction. The Owner/Operator shall promptly begin and thereafter make reasonable efforts to diligently pursue to complete the construction of the Project and the development of the Property in accordance with the provisions of this Agreement and at the times specified in the Schedule of Performance. The Owner/Operator shall complete construction no later than the timeframe set forth in the Schedule of Performance. Time is of the essence.

5.7 Reports. During the period of construction, the Owner/Operator shall once every 90 Days, or more often if requested by the City Project Manager, submit to the Project Manager a written report of the progress of the work. The report shall be in such form and detail as may reasonably be required by the Project Manager and shall include a reasonable number of construction photographs taken since the last report if previously requested by the City.

5.8 Local, State and Federal Laws. The Owner/Operator shall carry out the construction of the Project in conformity with all applicable laws, including all applicable federal and state labor standards.

5.9 Anti-Discrimination During Construction. The Owner/Operator, for itself, and its successors and assigns, agrees that the following provisions shall apply to, and be contained in all contracts and sub-contracts for the construction of the Project. (For purposes of this Section, Owner/Operator shall also mean Contractor or Sub-contractor.) 5 .9 .1 Employment. The Owner/Operator shall not discriminate against any employee or applicant for employment because of race, color, religion, age, disability, sex, sexual orientation, marital status, creed, ancestry, or national origin. The Owner/Operator shall ensure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, age, disability, sex, sexual orientation, marital status, ancestry, or national origin. Such action shall include, but not limited to, employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layout or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Owner/Operator agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause.

5.9.2 Advertising. The Owner/Operator shall, in all solicitations or advertisements for employees placed by or on behalf of the Owner/Operator, state that all qualified applicants will Development Agreement Between the City and AccessHome Page 15 of28 Packet Pg. 244 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend receive consideration for employment without regard to race, color, creed, religion, age, disability, sex, sexual orientation, marital status, ancestry, or national origin.

5.10 Public Improvements. The Owner/Operator shall, at Owner/Operator's expense, undertake and complete any modification, construction, relocation or improvement of public facilities, improvements and utilities on or for the development of the Site.

5.11 City Access to the Site. The Owner/Operator shall permit the City's representatives access, without charge, to the entire Site at any time and for any purpose which the City reasonably considers necessary to carry out its obligations and protect its interests under the Agreement.

Purposes for City entry may include, without limitation, inspection of all work being performed in connection with the construction of the Project. Any City personnel entering on the Site shall register immediately at Owner/Operator's construction office, shall be escorted by the Owner/Operator's designee, and shall wear proper clothing and safety equipment, and shall comply with all job site safety rules. The City assumes all liability and responsibility for failure of its representatives to comply with such requirements and for their negligent acts and/or willful misconduct.

5.12 Certificate of Completion. After the City has determined that the Owner/Operator has completed the Project in accordance with the Owner/Operator's obligations under this Agreement and a Notice of Completion has been recorded and the subsequent 30-day mechanic's lien period has expired, the City will record, and will furnish the Owner/Operator with, a "Certificate of Completion" certifying such completion. Such certification shall be a conclusive determination of satisfaction and termination of the agreements and covenants in the Agreement with respect to the obligations of the Owner/Operator to construct the Project and of the dates for the commencement and completion of construction, subject to any qualifications or limitations stated in such certification. Such certification and such determination shall not constitute evidence of compliance with or satisfaction of any governmental requirements other than the obligation to construct the Project or any obligation of the Owner/Operator to any holder of a mortgage, or any insurer of a mortgage, securing money loaned to finance all or any part of the Project.

The City Manager or designee shall prepare and execute the Certificate of Completion in a form suitable for recording in the Official Records of Shasta County pursuant to Exhibit 11. 5 .12.1 Refusal to Issue. If the City refuses or fails to provide a Certificate of Completion, the City shall, within ten (10) business days after written request by the Owner/Operator, provide the Owner/Operator with a written statement, indicating in adequate detail in what respects the Owner/Operator has failed to complete the Project in accordance with the provisions of the Agreement, or is otherwise in default, and what measure or acts will be necessary, in the opinion of the City, for the Owner/Operator to take or perform in order to obtain such certification. If the City wrongfully refuses to issue a Certificate of Completion, or upon passage of the ten ( 10) business day period, the Owner/Operator may seek a writ or order compelling the City to issue the Certificate.

5.13 Notification of Contractors, Architects, and Engineers. The Owner/Operator shall notify its Project Contractors, architects and engineers in writing of the requirements of this Agreement. Owner/Operator shall include, where applicable, the provisions of this Agreement in contracts and subcontracts for the Project, and the Owner/Operator shall enforce such provisions.

5.14 City Inspection. The City shall have the right to inspect all books and records of the Owner/Operator related to the Project and the construction and changes in construction to assure Owner/Operator's compliance with the provisions of this Agreement and Final Plans.

Development Agreement Between the City and AccessHome Page 16 of28 Packet Pg. 245 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend

5.15 Supervision of the Work. The Owner/Operator shall be solely responsible for monitoring all construction, ensuring that the construction is performed in a workmanlike manner, and enforcing the terms of this Agreement and the construction contracts. City's Project Manager's inspections of construction are made solely for the monitoring of City Loan disbursements, assuring Owner/Operator's performance under this Agreement and protecting the City's security interest in the Property.

6. Use of Property.

6.1 Uses. The Owner/Operator covenants and agrees for itself, its successors, its assigns and every successor in interest to the Property, that during construction and through the Affordability Period (as herein described) the Owner/Operator, its successors and assigns, shall devote, use, operate, and maintain the Property in accordance with the Declaration of Rent Restrictions and this Agreement. All uses conducted on the Property, including, without limitation, all activities undertaken by the Owner/Operator pursuant to this Agreement, shall conform to the applicable provisions of the City of Redding Municipal Code, and any restrictions of record or any of the recorded documents against the Property.

6.2 HOME Agreement. The Owner/Operator will enter a HOME Agreement that further details AccessHome's responsibilities as a CHDO and their responsibilities under the HOME program (Exhibit 3).

6.3 Affordable Housing.

6.3.1 Number and Type of Units; Income Eligibility. The Project includes one, single-family unit, of approximately 1,200 square feet, of which will be located at the Enterprise Park Property. The Owner/Operator agrees to make the Affordable Unit available to, restrict occupancy to, and rent at an Affordable Rent to Low-Income households throughout the Affordability Period.

This Low-Income unit is referred to herein as the Affordable Unit.

6.3.2 Affordability Restrictions. The City and the Owner/Operator agree to enter into a separate and binding Declaration of Rent Restrictions in the form set forth as Exhibit 4 to this Agreement. The City and the Owner/Operator shall each execute such document and submit it to the Escrow Agent for recording against the property prior to or simultaneously with the close of escrow as described in Section 3.8.

The covenants contained in the Declaration of Rent Restrictions shall remain in full force and effect for the entire Affordability Period. The issuance of a Notice of Completion by the City shall not affect the Owner/Operator's obligations under the Declaration of Rent Restrictions.

6.3.3 Determination of Affordable Rent for the Affordable Units. Each Affordable Unit shall be rented at a monthly rental amount ("Affordable Rent") not to exceed the monthly rental amount in accordance with Section 50053 of the California Health and Safety Code. As of the approval of this Agreement, the following formulas represent maximum Affordable Rents:
(i) for the Very Low Income Units: One-twelfth (1/12) of thirty percent (30%) of fifty percent (50%) of the area median income adjusted for family size appropriate to the unit applicable to the City of Redding, as determined by the United States Department of Housing and Urban Development (the "Applicable Median Income"); and (ii) for the Lower-Income Units: One-twelfth (1/12) of thirty percent (30%) of sixty percent (60%) of the Applicable Median Income adjusted for family size appropriate to the unit.

Development Agreement Between the City and AccessHome Page 17 of28 Packet Pg. 246 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend

6.3.4 Monitoring/Annual Report. Owner/Operator shall prepare and submit annually the certification reports, as requested by the City, during the Affordability Period. The report shall identify each Affordable Unit, the rental rate, and the income and family size of the occupants, as well as any other project information that is required by State redevelopment law and requested by City. The required income information shall be supplied by the tenant in the form of source documentation kept at the Property and shall be available for City review at the City's request.

Annually, during the Affordability Period, the Owner/Operator, its designee, or successor shall cooperate fully with the City to schedule at a mutually convenient time, an annual onsite inspection by the City of the Affordable Units and file record review of the tenant source documentation referenced above.

6.4 Management and Maintenance. The Owner/Operator shall manage and maintain, or cause to be managed and maintained, the Project. The Owner/Operator shall maintain the Project in good condition throughout the Affordability Period. The City of Redding Community Services Department shall keep parking areas, lighting fixtures, trash enclosures, common areas and all areas which can be seen from adjacent streets, free from any accumulation of debris or waste materials by regularly scheduled maintenance. Should there be a conflict between this DA and any Exhibit pertaining to the management and maintenance of the Property, the Exhibit prevails.

If, at any time, the Owner/Operator fails to maintain such areas in the manner required pursuant to this Agreement and any pertinent Exhibit to the Agreement, and said condition is not corrected within the time set forth in Section 10.1 upon written notice by the City pursuant to Section

11.9 of this Agreement, the City may, but shall not be obligated to, perform the necessary maintenance and the Owner/Operator shall pay such costs as are reasonably incurred for such maintenance, together with interest at the maximum lawful rate until full payment is made to the City. The monies expended by the City shall become a lien against the Property and the Owner/Operator hereby consents to the recordation of such lien without prior notice by City to Owner/Operator. Said lien shall be junior and subordinate to deeds of trust for financing or refinancing of the Project as allowed pursuant to this Agreement.

Notwithstanding the above, the City reserves for itself the right to exercise any and all remedies available to it under this Agreement and the Deed of Trust securing the City's rights under this Agreement.

7. Owner/Operator's General Obligations.

7.1 Obligation to Refrain From Discrimination. The Owner/Operator covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, marital status, national origin, ancestry, familial status, or disability as defined in California Government Code Section 12955, et seq., in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall the Owner/Operator itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the Property. The foregoing covenants shall run with the land.

7.2 Non-Discrimination Covenants in Deeds, Leases and Contracts. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses as are contained in Sections 33435 and 33436 of the California Health and Safety Code:

Development Agreement Between the City and AccessHome Page 18 of28 Packet Pg. 247 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend 7 .2.1 In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the land herein conveyed. The foregoing covenants shall run with the land."

7.2.2 In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions:

There shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, ancestry, or national origin in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased."

7.2.3 In contracts: "There shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, ancestry or national origin, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises, nor shall the transferee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the premises."
The covenants contained in this Section 7.2 shall remain in effect in perpetuity, and issuance of a Certificate of Completion by the City shall not affect the Owner/Operator's obligations under this Section.

7.3 Payment of Taxes, Assessments, Encumbrances and Liens. The Owner/Operator shall pay prior to delinquency all real estate taxes and assessments assessed and levied on the Property, at all times prior to the release of the lien of the City's Deed of Trust. Prior to issuance of a Certificate of Completion, the Owner/Operator shall not allow to be placed on the Property any mortgage, trust deed, encumbrance or lien unless expressly authorized by this Agreement or the City.

The Owner/Operator shall promptly remove or satisfy any levy or attachment made on all or any part of the Property. Nothing contained in this Agreement shall prohibit the Owner/Operator from reasonably contesting the validity or amounts of any tax assessment, encumbrance or lien, nor to limit the remedies available to the Owner/Operator in respect to such contest.

7.4 Effect and Duration of Covenants. The covenants contained in the Agreement and Declaration of Rent Restrictions which subject and burden the Property with covenants regarding use of the Property and regarding nondiscrimination, are covenants running with the land. It is intended and agreed that the agreements and covenants provided in this Agreement and the Declaration of Rent Restrictions shall be covenants running with the land and equitable servitudes thereon and that they shall, in any event, and without regard to technical classifications or designation, be binding, to the fullest extent permitted by law and equity, for the benefit and in favor of, and enforceable by, the Development Agreement Between the City and AccessHome Page 19 of28 Packet Pg. 248 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend City, the City's successors and assigns, any other governmental entity acting within its authority and any successor in interest to all or any part of the Property against the Owner/Operator, its successors and assigns and every successor in interest to all or any part of the Property, and any party in possession or occupancy of the Property and any subcontracting party or parties or other transferees under this Agreement.
7 .5 Effect of Violation. The City is deemed the beneficiary of the terms and provisions of this Agreement, the Declaration of Rent Restrictions and the covenants running with the land, both for its own right and for the purposes of protecting the interests of the community and other parties, public or private, in whose benefit this Agreement and the covenants running with the land have been provided. The Agreement and the Declaration of Rent Restrictions shall run in favor of the City without regard to whether the City has had or does have any interest in the Property. 7 .6 Indemnification. Owner/Operator hereby agrees to protect, defend, indemnify and hold harmless, City, its officers, elected or appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses, judgments, demands, penalties, fines, defense costs, and consequential damage or liability of any kind or nature, however caused, arising directly or indirectly out of the obligations or operations herein undertaken by Owner/Operator, but only to the extent such damage or liability is caused in whole or in part by any act or omission of the Owner/Operator, any contractors or subcontractors of Owner/Operator or anyone for whose acts Owner/Operator may be liable, including, but not limited to, concurrent active or passive negligence, except where caused by the active negligence, sole negligence or willful misconduct of the City or resulting or arising from allegations that the City failed to administer this Agreement in accordance with applicable law. Owner/Operator will conduct all defense at its sole cost and expense and City shall have right to approve or disapprove legal counsel defending the City. City shall be reimbursed for all costs and attorney's fees incurred in enforcing this obligation. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable, but it is the intent of the parties that nothing in this provision is intended to otherwise reduce any insurance coverage on any policy of insurance held by the Owner/Operator or its subcontractors to which the City would otherwise be entitled to in the absence of this provision; accordingly the indemnity obligations hereunder shall not apply to the extent this indemnity would reduce or eliminate existing insurance coverage that would inure directly or indirectly to the benefit of the City. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Owner/Operator. This Section 7 shall survive the termination of this Agreement, irrespective of the reason for its termination, until a date that is ten (10) years following the date the City furnishes the Owner/Operator a Certificate of Completion; provided however that nothing in this provision is intended to extend the statute of limitations by which any party other than the City can bring their claim.

7. 7 In addition to the indemnity provided in Section 7 .6, Owner/Operator hereby agrees to indemnify, defend, protect and hold the City harmless from and against any and all liability, damages, penalties, claims, suits, actions, proceedings, loss, cost or expense (including, but not limited to, attorney's fees and court costs) arising out of the failure of Owner/Operator to comply with the Prevailing Wage Law (Labor Code section 1720 et seq.) including, but not limited to, the payment of prevailing wages, if required by law in connection with the activities authorized by this Agreement. Owner/Operator further agrees to waive all claims and causes of action it may have against City pursuant to Labor Code section 1781.
7 .8 Insurance Requirements and Public Safety Protections. Owner/Operator shall promptly take step_s to protect the public from the risk of injury whether from the condition of the Property or Owner/Operator's activities in connection with the Property. The Owner/Operator shall obtain and maintain, or require the contractor and subcontractors for the Project to purchase and maintain the following insurance for claims which may result from the operations under the Development Agreement Between the City and AccessHome Page 20 of28 Packet Pg. 249 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend Agreement of the Owner/Operator, any contractor, subcontractor or anyone directly or indirectly employed by any of them, or by anyone for whose acts any of them may be liable:

7.8.1 Owner/Operator Insurance Requirements. Owner/Operator shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with Owner/Operator's activities hereunder. The cost of such insurance shall be borne by Owner/Operator. Owner/Operator shall maintain the following noted insurance:

Coverage
Commercial General Liability
Comprehensive Vehicle Liability
Workers Compensation and Employee Liability
Builder's Risk/Course of Construction
Hazard/ All Risks
Required Not Required
X (if General Contractor does not carry)
X
X
X (During Construction)
X (Following Construction)

7.8.1.1 Course of Construction/Builder's Risk Insurance. Owner/Operator shall provide proof of Course of Construction/Builder's Risk Insurance providing coverage for "all risks" of loss during the construction phase of the Project in the amount of the combined total of the City and Other Financing as stated in Section 3.1 and 3.3 of this Agreement.

7.8.1.2 Hazard Insurance. Following completion of construction, Owner/Operator shall keep the improvements now existing or hereafter erected on the Project Site insured for full replacement value against loss by fire, hazards included within the term "extended coverage," and such other hazards as the City may require and in such amounts for the full remaining term of the Agreement.

7.8.2 General Contractor Insurance Requirements. During the course of construction, the General Contractor shall maintain the following noted insurance:

Coverage
Commercial General Liability
Comprehensive Vehicle Liability
Workers Compensation and Employee Liability
Builder's Risk/Course of Construction
Hazard/ All Risks
Required
X
X
X
Not Required
X
X
7 .8.2.1 Minimum Scope and Limits of Insurance. Coverage shall be at least as broad as:
(a) Insurance Services Office form number CG-0001, Commercial General Liability Insurance, in an amount not less than $1,000,000 per occurrence $2,000,000 general aggregate for bodily injury, personal injury and property damage; (b) Insurance Services Office form number CA-0001, Comprehensive Automobile Liability Insurance, which provides for total limits of not less than $1,000,000 combined single limits per accident applicable to all owned/non-owned and hired vehicles; ( c) Statutory Workers Compensation required by the Labor Code of the State Development Agreement Between the City and AccessHome Page 21 of28 Packet Pg. 250 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend of California and Employers' Liability Insurance in an amount not less than $1,000,000 per occurrence. Both the Workers Compensation and Employers' Liability policy shall contain the insurer's waiver of subrogation in favor of the City, their respective elected officials, officers, agents, employees and volunteers;
(d) Deductibles and Self-Insured Retentions: Any deductibles or self-insured retentions, and any modifications thereof, must be declared to and approved by the Risk Manager of the City of Redding.

7.8.3 Other Insurance Provisions. All policies required by this Agreement are to contain or be endorsed to contain the following provisions:

For General Liability and Automobile Liability coverages:
a) The City, its elected officials, officers, employees, agents, and volunteers are to be covered as additional insureds as respects: liability arising out of work or operations performed by or on behalf of Owner/Operator and/or Contractor; premises owned, leased, or used by Owner/Operator and/or Contractor; or automobiles owned, leased, hired, or borrowed by Owner/Operator and/or Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its elected officials, officers, employees, agents, or volunteers. b) The insurance coverage of Owner/Operator and/or Contractor shall be primary insurance as respects the City, its elected officials, officers, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its elected officials, officers, employees, agents, or volunteers shall be in excess of Owner/Operator's and/or Contractor's insurance and shall not contribute with it.

Each insurance policy required by this Agreement shall be endorsed to state that coverage shall not be cancelled except after thirty (30) Days prior written notice has been given to the City Risk Manager.

7.8.4 Acceptability of Insurers. Insurance is to be placed with insurers with a Bests' rating of no less than A-VII. This requirement may, however, be waived in individual cases provided, however, in no event will a carrier with a rating below B: IX be acceptable. 7;8.5 Verification of Coverage. Owner/Operator shall be responsible for furnishing the City's Risk Manager with all certificates of insurance and original endorsements affecting specific coverage required by this Agreement. The certificates and endorsements for each insurance policy are to be signed by a person authorized by the insurer to bind coverage on its behalf. The City may withhold Project payments if required certificates of insurance and endorsements have not been provided. The City's Risk Manager reserves the right to require complete certified copies of all required insurance policies.
7 .8.6 Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City's Risk Manager.

Development Agreement Between the City and AccessHome Page 22 of28 Packet Pg. 251 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend

7.9 Failure to Maintain. If the Owner/Operator fails to obtain or maintain, or cause to be obtained and maintained, any insurance required by this Agreement, the City shall have the right to purchase the insurance and add to the principal amount of the City Loan the full costs to City of obtaining such insurance.

8. Prohibitions Against Assignment and Transfer.

8.1 Prohibition Against Transfer of Rights or Obligations. The City has entered into this Agreement in reliance upon the identities and qualifications of the Owner/Operator. The Owner/Operator may not assign or otherwise transfer Owner/Operator's rights or obligations under this Agreement without the prior written consent of the City.

8.2 Transfer of Interest. The Owner/Operator represents that it has infonned its members, and the Owner/Operator shall inform any successors in interest of the provisions of this Section 8. Subject to restriction of federal and State securities regulation and prior to issuance of a Certificate of Completion, the Owner/Operator shall not permit transfers of ownership which would result in a change in management authority or decrease in fiscal ability with respect to Owner/Operator or, with respect to the parties in control of the Owner/Operator or the degree of such control, by any method or means, including, but not limited to, sale, transfer, increased capitalization, merger with another corporation, corporate or other amendments, issuance of additional members or new membership interests or classification of such interests, or otherwise. With respect to this provision, the Owner/Operator the Owner/Operator represents that it has the authority to agree to and bind Owner/Operator to this provision.

8.3 Transfer or Assignment.

8.3.1 Transfer or Assignment oflnterests, Rights, or Obligations in the Agreement.

Except as required to obtain the financing approved by the City, the Owner/Operator shall not, prior to issuance of the Certificate of Completion, make any total or partial sale, assignment or transfer of any interest, right or obligation under this Agreement without the prior written approval of the City.

8.3.2 Transfer or Assignment of Interests in the Property. Except as required to obtain the financing approved by the City, the Owner/Operator shall not, prior to issuance of the Certificate of Completion, make any total or partial sale, assignment or transfer of any interest in the Property without the prior written approval of the City.

8.3.3 One-Time Transfer to Controlled Entity. Notwithstanding the foregoing, the City Manager is hereby authorized to approve, in writing, a one-time assignment by Owner/Operator of all of its rights and obligations under the Agreement, and all of its interest in the Property, to a single-asset corporation, partnership, or limited liability company wholly owned or controlled by Owner/Operator, subject to Owner/Operator's compliance with the requirements of this Agreement.

8.3.4 Conditions of Approval. The City shall be entitled to require the following as conditions to any approval of any assignment or transfer of any interest in the Property, the Agreement, or the Owner/Operator:
a) Qualifications and Financial Responsibility. Any proposed transferee shall have the qualifications and financial responsibility, as determined by the City, necessary and adequate to fulfill Owner/Operator's obligations under the Agreement. b) Assumption of Obligations. Any proposed transferee shall, for itself and its successors and assigns, expressly assume all of Owner/Operator's obligations under the Agreement Development Agreement Between the City and AccessHome Page 23 of28 Packet Pg. 252 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend and shall agree to be subject to all the conditions and restrictions to which the Owner/Operator is subject. Said assumption of obligations shall be in writing in recordable form approved by the City and shall expressly be for the benefit of the City. The fact that any such transferee shall not have assumed such obligations or so agreed, shall not relieve such transferee from such obligations, conditions, or restrictions, or deprive the City of any rights or remedies or controls with respect to all or any part of the Property or this Agreement that the City would have had, had there been no such transfer or change.
c) Review of Documents. The Owner/Operator shall submit to the City for review and approval all legal documents involved in effecting such transfer. Such documents shall be subject to the City's prior written approval.
d) Limits on Consideration. Prior to issuance of the Certificate of Completion, the consideration payable for the transfer by such transferee of any interest in the Agreement shall not exceed the actual costs incurred for the Project, if any, actually made. It is the intent of this provision to preclude assignment of the Agreement or transfer of the Property for profit prior to the completion of the Project. The transferee's obligation to pay any excess to the City may be satisfied by the transferee's assumption of the City Promissory Note. e) Other Conditions. The Owner/Operator and such transferee shall comply with such other conditions as the City may find necessary and reasonable in order to achieve and safeguard the purposes of the Agreement.

8.3.5 Owner/Operator Obligations Not Relieved. In the absence of specific written agreement by City to the contrary, no such transfer or approval of transfer by City shall relieve the Owner/Operator, or any other party bound in any way by the Agreement, from any of its obligations under the Agreement.

9. Financing Defaults.
9 .1 Lender's Option to Cure Defaults. After any default of Owner/Operator's obligations under the Agreement, each Lender ( or successor to Lender) shall have the right, at its option, to cure or remedy such default ( or to the extent that it relates to the part of the Property covered by its lien), within the time for cure allowed to Owner/Operator as stated in Section 10.1, and to add the cost of such cure to the debt and the lien secured by the Property. If the breach or default relates to construction of the Project, however, Lender shall not undertake or continue the construction of the Project (beyond the extent necessary to conserve or protect Project or construction already made) unless Lender assumes in writing Owner/Operator's obligations to complete the Project on the Property in the manner provided in the Agreement. Any Lender (or successor to Lender) who properly completes the Project as provided in the Agreement shall be entitled, upon written request made to the City, to receive a Certificate of Completion from the City in a manner provided in the Agreement.

9.2 City's Option to Pay Debt. If, after Owner/Operator's default under the Agreement and after sixty (60) Days prior written notice from the City, the Lender fails to exercise its option to construct the Project or undertakes, but does not make reasonable efforts to diligently pursue to completion, construction of the Project in accordance with the Schedule of Performance set forth in Exhibit 10 to this Agreement, the City shall have the option, exercisable only by written notice to the Lender within ten (10) Days after expiration of the sixty ( 60) Day period, to do one of the following:

9.2.1 Pay Debt. The City shall be entitled, at its option, to pay to the Development Agreement Between the City and AccessHome Page 24 of28 Packet Pg. 253 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend Lender the amount of the secured debt and acquire or terminate Lender's secured position. 9 .2.2 Deed in Lieu. If title to the Property has vested in Lender by way of a deed in lieu of foreclosure, the City shall be entitled, at its option, within sixty (60) Days from notice to the City of Lender's acceptance of such a deed, to a conveyance to it of the Property upon payment to Lender of an amount equal to the sum of the following:
a) The secured debt at the time of deed in lieu of foreclosure (less application of rentals and other income received during foreclosure proceedings). b) All expenses with respect to the deed in lieu of foreclosure. c) The costs of Project improvements made by Lender.

9.2.3 Foreclosure. The City shall have the right to bid at any foreclosure sale held by or for any Lender on the Property.
9 .3 City's Option to Cure Loan Default. In the event of a default prior to the completion of the Project by the Owner/Operator, or any successor in interest to the Owner/Operator by reason of any of its obligations under any mortgage or other instrument creating an encumbrance or lien upon the Property, the City may at its option cure such default or breach following the expiration of any applicable cure period (or sooner upon notice to the Owner/Operator), in which case the City shall be entitled, in addition to any of its other rights or remedies, to reimbursement from the Owner/Operator of all costs and expenses incurred by the City in curing such default and to a lien upon the Property for such reimbursement, provided that any such lien shall be subject always to the lien of any then existing liens on the Property authorized by this Agreement (including any lien contemplated, because of advances yet to be made).
9 .4 Inclusion in Loan and Security Instruments. Either City's rights or remedies under this Section shall be included in all loan and security instruments of Lender related to the Property; or City and such Lender shall enter into an intercreditor agreement in a form and substance acceptable to the City and its counsel, incorporating such rights and remedies.

10. Defaults and Remedies. The provisions of this Section are in addition to any provisions in the City Deed regarding default and remedies. Subject to any extension of time permitted by this Agreement, a failure or delay by the City or the Owner/Operator to perform any term or provision of this Agreement constitutes a material default of this Agreement.

10.1 Cure. Except as otherwise provided in the Agreement, if either party defaults in, or breaches, the Agreement, such party shall cure such default or breach within thirty (30) Days after receipt of written notice from the other party of such default or breach. If the defaulting party does not cure or demonstrate to the reasonable satisfaction of the other party that it has acted and continues to act promptly and diligently to cure the default within such time, the aggrieved party may declare an "Event of Default" and institute proceedings to cure and remedy such default or breach, including, but not limited to, proceedings to compel specific performance by the party in default.

While neither the City nor Owner/Operator is relieved of any obligation under this Agreement to give notice, mere failure to notify the other party shall not be deemed a waiver of the defaulting party's default.

10.2 Termination by City Prior to Completion of Construction. If, prior to issuance of Certificate of Completion and without City approval, the Owner/Operator assigns any interest in the Agreement or the Property, or permits a change in ownership or control in the Owner/Operator in violation of this Agreement, defaults in its obligations related to the development of the Project as set forth in the Agreement, abandons or unreasonably suspends construction work on the Project, or Development Agreement Between the City and AccessHorne Page 25 of28 Packet Pg. 254 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend permits any unauthorized encumbrance or lien (including tax liens) and fails to discharge any such unauthorized lien or encumbrance then the City may elect to terminate the Agreement at its option or invoke any other remedy provided in this Agreement, subject to the cure period provided for in Section 10 .1. In such event, the City shall be entitled to damages, without any deduction, offset, or recoupment whatsoever.

10.3 City Right to Property. In addition to any other rights of the City, in the event of termination of the Agreement, the City shall void the Lease with AccessHome and retain full ownership of the Property.

10.4 Other Rights and Remedies of City. The City shall have the right to institute such actions or proceedings as it may deem desirable to carry out the purposes of this Section.

10.5 No Waiving by Delay. Any delay by the City or Owner/Operator in asserting any rights under this Section 10 shall not operate as a waiver of such rights or to deprive such party of, or limit, such rights in any way. Any waiver in fact made by the City or Owner/Operator with respect to any specific default shall not be considered as a waiver of the rights of such party with respect to any other defaults or with respect to the particular default except to the extent specifically waived in writing.

10.6 Assignment of Contracts; Power of Attorney. Subject to the rights of the Construction Lender, if any, and upon execution by the City of appropriate assignment and assumption documents, all contracts with Contractors, subcontractors, suppliers and other entities related to the construction of the Project and all sources of funds for construction of the Project are irrevocably assigned by the Owner/Operator to the City upon City demand after default by the Owner/Operator.

10. 7 Delay for Causes Beyond Control of Party. For the purposes of any of the provisions of the Agreement, neither the City nor the Owner/Operator shall be considered in breach of, or default in, its obligations with respect to the preparation of the Property for development, or the beginning, prosecution, and completion of construction of the Project, if delay in the performance of such obligations is due to unforeseeable causes beyond the delayed party's control and without its fault or negligence. Unforeseeable causes shall include acts of God, acts of a public enemy, acts of the State or Federal Government, acts of the other party, fires, floods, epidemics, discovery of protected species or historical artifacts upon the Property, quarantine restrictions, strikes, freight embargoes, a general moratorium on financing for projects of the same type, and unusually severe weather (as for example, floods, tornadoes, or hurricanes) or delays of subcontractors due to such causes. In the event of the occurrence of any such enforced delay, the time or times for performance of such obligations of the City and Owner/Operator shall be extended for the period of the enforced delay, as determined by the City, provided that the party seeking the benefit of the provisions of this Section shall, within thirty (30) Days after the party has or should have knowledge of any such enforced delay, have first notified the other party, in writing, of the delay and its cause, and requested an extension for the period of the enforced delay. In no event, however, shall any period of enforced delay exceed ninety (90) Days if the party claiming enforced delay has not demonstrated, to the reasonable satisfaction of the other party, that it has acted and continues to act promptly and diligently to terminate such enforced delay.

10.8 Rights and Remedies Cumulative. The rights and remedies of the parties to the Agreement shall be cumulative, and the exercise by either party of any one or more of such remedies shall not preclude the exercise by it, at the same or different times, of any other such remedies for the same default or breach or of any of its remedies for any other default or breach by the other party.

The remedies set forth in this Agreement shall not be construed to deny either party of any other Development Agreement Between the City and AccessHome Page 26 of28 Packet Pg. 255 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend rights in law or equity which may be available to it in the event of a breach of this Agreement. No waiver made by either such party with respect to the performance of any obligation of the other party or any condition to its own obligation under the Agreement shall be considered a waiver of any rights beyond those expressly waived in writing.

11. General Provisions.

11.1 Time for Actions. The City and the Owner/Operator shall each do the actions required of them, on or before the times specified in this Agreement. Unless otherwise provided, the City shall give required approvals or disapprovals within fourteen (14) Days after submission, except matters which must be decided by the City Board of Directors or the City Council of the City, which shall be decided within forty-five ( 45) Days.

11.2 Counterparts. This Agreement may be signed in counterparts, and is executed in two (2) duplicate originals, each of which is deemed to be an original and one and the same instrument. This Agreement includes Pages 1 through 27 and Exhibits 1 through 13, which constitute the entire understanding and agreement of the parties.

11.3 Priority of Contents of Agreement. In the event of a conflict between the terms of this Agreement and the Exhibits, this Agreement shall be given precedence.

11.4 Inspection of Books and Records. The City has the right, at all reasonable times and upon reasonable notice, to inspect the books and records of the Owner/Operator pertaining to the Property as necessary to assure compliance with the provisions of this Agreement. The Owner/Operator shall keep such books and records as the City may reasonably require to assure Owner/Operator's performance of its obligations under this Agreement.

11.5 Fees, Commissions, Gifts or Interests. The City shall not be liable for any real estate commissions, brokerage fees or finder's fees which may arise from this Agreement. The City and the Owner/Operator each represent that neither has engaged any broker, agent or finder, and that neither claims such a commission or fee, in connection with this Agreement. The Owner/Operator shall pay no fee or commission, make no gifts and provide no interest in the Loan to any employee or official of the City or the City of Redding.

11.6 Entire Agreement. This Agreement and all of the attached Exhibits integrate all of the terms and conditions related or incidental to its subject matter, and supersede all negotiations or previous agreements between the parties with respect to its subject matter.

11.7 Waivers and Amendments. No waivers, changes, amendments or alterations shall be effective unless in writing and signed by all parties. However, minor amendments which do not result in a substantial or functional change to the original intent of the Agreement and do not cause an increase to the maximum amount payable beyond what is considered substantial under Section 4.2.3, may be agreed to in writing between Owner/Operator and the City Manager or designee.

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

11.9 Notices and Demands. Any notice, demand or other communication under the Agreement by either party to the other shall be deemed to have been full and properly given when made in writing, enclosed in a sealed envelope, and deposited in the United States Post Office, Development Agreement Between the City and AccessHome Page 27 of28 Packet Pg. 256 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend certified mail, postage prepaid, to the addresses for Owner/Operator and City stated in Sections 1.19 and 1.8, respectively, or delivered by email to the email address listed for the Owner/Operator and City in Sections 1.19 and 1.8, respectively, and evidenced by a fax receipt.

11. l O Jurisdiction, Venue and Attorneys' Fees.

11.10.1 Jurisdiction and Venue. Any legal action(s) concerning the Agreement or the performance of any party there under shall be brought only in the court of appropriate jurisdiction in the County of Shasta. Both the Owner/Operator and the City agree that jurisdiction and venue shall only be in said courts.

11.10.2 Attorneys' Fees. In the event any legal action, including arbitration, is brought by either party to this Agreement to enforce this Agreement or for breach of this Agreement or for a declaration of the rights and duties under this Agreement, the prevailing party shall recover costs and reasonable attorney's fees in addition to any other relief to which that party may be entitled.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.

City o Redding, a municipal corporation
Rural Resources Community Development, Inc. dba
AccessHome
By:Cw:wt', Af!Uo tl
Dawn Smith, Executive Director
Development Agreement Between the City and AccessHome Page 28 of28 Packet Pg. 257 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend

LIST OF EXHIBITS
EXHIBIT 1: Legal Description - Enterprise Park
EXHIBIT 2: Location Map-Enterprise Park
EXHIBIT 3: HOME Agreement
EXHIBIT 4: Declaration of Rent Restrictions
EXHIBIT 5: City Deed of Trust
EXHIBIT 6: City Promissory Note
EXHIBIT 7: Ground Lease
EXHIBIT 8 Scope of Development
EXHIBIT 8.5: Preliminary Project Plans (Concept Design Package-Enterprise Park) EXHIBIT 9: Project Budget
EXHIBIT 10 Schedule of Performance
EXHIBIT 11: Certificate of Completion
EXHIBIT 12: Notice of Completion
EXHIBIT 13: Section 3 Clause
EXHIBIT 14: Fair Housing Poster
Development Agreement Between the City and AccessHome Packet Pg. 258 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend EXHIBIT 1

LEGAL DESCRIPTION
Enterprise Park
FOR APN/P ARCEL ID: 068-290-004-000

LEGAL DESCRIPTION PENDING
Packet Pg. 259 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend May 16, 2021
□ Parcel
Exhibit 2
Enterprise Park
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0 I I

0.075
I I I

0.1 1:9,028

0.15 0.3 mi
I 1 I I I I I

0.2 0.4 km
National Geographic, Esri, Garmn, HERE, UNEP-WCMC, USGS, NASA, ESA, METI, NRCAN, GEBCO, ~AA, increment P Ccrp
Internal Map Viewer
OtyofReddngGIS Packet Pg. 260 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend RECORDING REQUESTED BY:

City of Redding

CITY BUSINESS - NO FEE
Section 6103 of the Government Code
ofthe State of California
AND WHEN RECORDED MAIL TO:

City of Redding - Housing Division
P.O. Box 496071
777 Cypress A venue
Redding, CA 96049-6071
Exhibit 3
HOME Program Funded Rental Project Agreement
This Agreement is entered into this __ day of August 2021, by and between RESOURCES FOR RURAL COMMUNITY DEVELOPMENT, INC. dba ACCESSHOME, a California nonprofit public benefit corporation ("Owner") and the City of Redding, a municipal corporation ("City").

WHEREAS, Owner has a long-term lease equal to the length of affordability (twenty (20) years) in that certain real property (Property) located at 4000 Victor Avenue in the City of Redding, County of Shasta, State of California, legally described in Exhibit A attached hereto. The real property is the subject of a Development Funding Agreement (Agreement) dated ___ , 2021 for the development, operation, management, and maintenance of a single-family housing project consisting of one (1) three-bedroom unit (the "Project"). The City has provided financing from the HOME Investment Partnerships Program (HOME) in accordance with the Agreement.

The single-family unit, shall be deemed, the "HOME-Assisted Unit." The Owner agrees to make available, restrict occupancy to, and rent at an "Affordable Rent" for the full "Affordability Period" to Lower-Income Households (as those terms are hereinafter defined).

Lower-Income households shall mean a household earning no more than thirty percent (60%) of Shasta County median income adjusted for household size as determined by HUD from time to time, for the HOME Program and as set forth in 24 CFR Part 92.2 as it exists as of the date of this Agreement.

NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, THE PARTIES AGREE TO THE HOME REQUIREMENTS AS DEFINED HEREIN:

1. Use of HOME Funds. The Owner shall receive a City HOME loan (City Loan) in the amount of Three Hundred Thirty-Seven Thousand One Hundred Ninety-six No/100 Dollars ($337,196) in HOME funds to support the development costs associated with the HOMEAssisted Unit as part of the Project. The HOME funds will be used toward eligible Project costs in accordance with 24 CFR 92.206 as supported by the pro-forma and development budget documents submitted, analyzed, and approved by the City.

Packet Pg. 261 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend 2 2. Project-specific Requirements. The HOME-Assisted rental Project and unit will comply with the provisions contained under 24 CFR Part 92, Subpart F, Project Requirements, including 24 CFR 92.250-253, maximum per-unit subsidy amount; subsidy layering requirements as determined by the City; applicable property standards; affordability requirements, tenant income eligibility, occupancy requirements, HUD issued annual rent thresholds, period of affordability and tenant and participant protections.

For projects that contain HOME-Assisted and non-HOME assisted units: These provisions apply to HOME-Assisted units which are designated as "Floating Units" and which may be substituted with non-HOME-Assisted units within the Project that are comparable in terms of size, features, number of bedrooms and amenities, to the originally designated HOME-Assisted units.

3. Tenant Income Targeting and Occupancy Requirements.
a. The Project's HOME-Assisted units must be occupied by households that meet the specified income eligibility, based on current annual income guidelines issued by HUD and whose income is determined at initial occupancy by the City and thereafter, annually by the Owner in accordance with 24 CFR 92.203(a)(l).
b. The Owner of a HOME-Assisted Project with an affordability period of 10 years or more who re-examines tenant's annual income through a statement and certification in accordance with 24 CFR 92.203(a)(l)(ii), must examine the income of each tenant, in accordance with 24 CFR 92.203(a)(l)(i), every sixth year of the affordability period. Otherwise, an owner who accepts the tenant's annual income in accordance with 24 CFR 92.203(a)(l)(ii) is not required to examine the income of tenants in multifamily projects unless there is evidence that the tenant's written statement failed to completely and accurately state information about the family's size or mcome.

4. Period of Affordability and Requirements. Pursuant to 24 CFR 92.252, the HOMEAssisted units must meet the affordability requirements for not less than the term specified in the regulations, or a longer period stipulated by the City in the Agreement. The HOME period of affordability applicable to the Project shall be twenty (20) years and commence at the time that all of the following actions have been completed:
a. All necessary title transfer requirements and rehabilitation work have been performed; b. This HOME Agreement has been executed by the Owner and recorded; c. The project complies with the requirements of 24 CFR Part 92 (including property standards under 24 CFR 92.251;
d. The final drawdown has been disbursed for the project; and e. The project completion information has been entered in HUD's Integrated Disbursement and Information System (IDIS).

The affordability requirements shall apply without regard to the term or repayment of the loan or the transfer of ownership and shall be imposed by deed restrictions or covenants running with the land, except that the affordability requirements may terminate upon foreclosure or transfer in lieu of foreclosure. The affordability restrictions shall be revived according to the original terms if, during the original affordability period, the Owner of record before the foreclosure, or deed in Packet Pg. 262 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend 3 lieu of foreclosure, or any entity that includes the former Owner or those with whom the former Owner has or had family or business ties, obtains an ownership interest in the Project or property.

5. Property Standards. The Project must be maintained in compliance with applicable State and local housing code requirements and HUD Housing Choice Voucher Housing Quality Standards for the duration of the Loan as well as any Development Agreement. a. The exterior areas around the Property shall be kept free of rubbish, debris, trash, garbage and other unsightly or unsanitary materials. Trash or refuse cans, bins, boxes or other such containers must be stored out of the public right of way. b. There shall be no parking, storing or keeping of any large commercial type vehicle ( dump truck, cement mixer truck, oil or gas truck, etc.), or any recreational vehicle (camper unit, camper shell detached from a private passenger vehicle, motor home, trailer, boat trailer, mobile home or other similar vehicle), boats or any vehicle other than a private passenger vehicle. c. Property or material such as lumber, salvage materials, broken or neglected equipment or wrecked, dismantled or inoperable vehicles may not be stored at the Property. d. Foundations, driveways and walkways are to be maintained in good condition and have no significant cracks that could jeopardize structural integrity or become unsightly. e. No buildings abandoned, boarded up, partially destroyed or left in an unmaintained condition so that any of the following exists:
(i) Building abandoned, boarded up, partially destroyed or left unreasonably in a state of partial construction.
(ii) Paint in such a condition as to: cause dry rot, warping and termite infestation; or constitute an unsightly appearance that detracts from the aesthetic value of the Property or surrounding properties.
(iii) Broken windows or m1ssmg glass constituting hazardous conditions and/or inviting trespassers and malicious mischief.
(iv) Graffiti remaining on any portion of the Property for a period exceeding five (5) Days.
f. Landscaping shall be absent of the following:
(i) Grass in excess of six ( 6) inches in height.
(ii) Untrimmed hedges.
(iii) Dying trees, shrubbery, lawns and other plant life from lack of water or other necessary maintenance.
(iv) Trees and shrubbery grown uncontrolled without proper pruning. (vi) Vegetation so overgrown as to be likely to harbor rats or vermin.

Packet Pg. 263 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend (vii) Dead, decayed or diseased trees, weeds and other vegetation. (viii) Inoperative irrigation system(s).
4 6. Repayment of HOME Funds. All interest and other return on the investment of HOME funds in the form of the Loan are to be remitted to City as set forth in the Agreement and the City Loan Documents. In order for the City to comply with the HOME regulations described under 24 CPR 92.503, Owner shall repay to the City the remaining principal balance of the loan if after Project completion the HOME-Assisted Project fails to comply with the affordability requirements described under Subpart F, 24 CPR 92.252 of the HOME regulations. In the event that the Project is terminated before completion, either voluntarily or otherwise, any HOME funds invested in the Project must be repaid by the Owner to the City.

7. Other Federal Requirements. Owner shall operate the Project in compliance with all Federal laws and regulations described in 24 CPR 92.350-356, including specifically, nondiscrimination and equal opportunity; affirmative marketing procedures and requirements adopted by the City pursuant to 24 CPR 92.351; displacement, relocation and acquisition; labor; lead-based paint; and conflict of interest. Owner shall not assume City's responsibilities for environmental review contained in 24 CPR 92.352 or the intergovernmental review process contained in 24 CPR 92.359. The requirements set forth below apply:
a. Nondiscrimination and equal opportunity.
(i) The Fair Housing Act (42 U.S.C. 3601-19) and implementing regulations at 24 CPR part 100 et seq.; Executive Order 11063, as amended by Executive Order 12259 (3 CPR, 1959-1963 Comp., p. 652 and 3 CPR, 1980 Comp., p. 307) (Equal Opportunity in Housing Programs) and implementing regulations at 24 CPR part 107; title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d-2000d-4) (Nondiscrimination in Federally Assisted Programs) and implementing regulations at 24 CPR part 1; the Age Discrimination Act of 1975 (42 U.S.C. 6101-6107) and implementing regulations at 24 CPR part 146; section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at part 8 of this title; title II of the Americans with Disabilities Act, 42 U.S.C. 12101 et seq.; 24 CPR part 8; section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) and implementing regulations at 24 CPR part 135; Executive Order 11246, as amended by Executive Orders 11375, 11478, 12086, and 12107 (3 CPR, 1964-1965 Comp., p. 339; 3 CPR, 1966-1970 Comp., p. 684; 3 CPR, 1966-1970 Comp., p. 803; 3 CPR, 1978 Comp., p. 230; and 3 CPR, 1978 Comp., p. 264, respectively) (Equal Employment Opportunity Programs) and implementing regulations at 41 CPR chapter 60; Executive Order 11625, as amended by Executive Order 12007 (3 CPR, 1971- 1975 Comp., p. 616 and 3 CPR, 1977 Comp., p. 139) (Minority Business Enterprises); Executive Order 12432 (3 CPR, 1983 Comp., p. 198) (Minority Business Enterprise Development); and Executive Order 12138, as amended by Executive Order 12608 (3 CPR, 1977 Comp., p. 393 and 3 CPR, 1987 Comp., p. 245) (Women's Business Enterprise). (ii) Equal access to HUD-assisted or insured housing. (1) Eligibility for HUD-assisted or insured housing. A determination of eligibility for housing that is assisted by HUD or subject to a mortgage insured by the Federal Housing Administration shall be made in accordance with the eligibility requirements provided for such program by HUD, and such housing shall be made available without regard to actual or perceived sexual orientation, gender identity, or marital status. (2) Prohibition of inquiries on sexual orientation or gender identity. No owner or administrator of HUD-assisted or HUD-insured housing, approved lender in an FHA mortgage Packet Pg. 264 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend 5 insurance program, nor any (or any other) recipient or subrecipient of HUD funds may inquire about the sexual orientation or gender identity of an applicant for, or occupant of, HUD-assisted housing or housing whose financing is insured by HUD, whether renter- or owner-occupied, for the purpose of determining eligibility for the housing or otherwise making such housing available. This prohibition on inquiries regarding sexual orientation or gender identity does not prohibit any individual from voluntarily self-identifying sexual orientation or gender identity.

This prohibition on inquiries does not prohibit lawful inquiries of an applicant or occupant's sex where the housing provided or to be provided to the individual is temporary, emergency shelter that involves the sharing of sleeping areas or bathrooms, or inquiries made for the purpose of determining the number of bedrooms to which a household may be entitled. b. Disclosure requirements. The disclosure requirements and prohibitions of 31 U.S.C. 1352 and implementing regulations at 24 CFR part 87; and the requirements for funding competitions established by the Department of Housing and Urban Development Reform Act of 1989 (42 U.S.C. 3531 et seq.).
c. Debarred, suspended, or ineligible contractors and participants. The prohibitions at 2 CFR part 2424 on the use of debarred, suspended, or ineligible contractors and participants. d. Drug-free workplace. The Drug-Free Workplace Act of 1988 (41 U.S.C. 701, et seq.) and HUD's implementing regulations at 2 CFR part 2429.
e. Each Owner must adopt affirmative marketing procedures and requirements for rental and projects containing 5 or more HOME-Assisted housing units (24 CFR 92.351). Affirmative Marketing steps consist of actions to provide information and otherwise attract eligible persons in the housing market area to the available housing without regard to race, color, national origin, sex, religion, familial status or disability. The written affirmative marketing requirements and procedures must include the following:
(i) Methods for informing the public, property owners and potential tenants about federal fair housing laws and affirmative marketing policy (i.e., through the use of the fair housing logo or equal opportunity language in marketing materials, posters on office walls, and referrals to fair housing agencies).
(ii) Requirements and practices each property owner must adhere to in order to carry out the affirmative marketing procedures and requirements (i.e., advertising requirements, outreach to community groups, EO logo, fair housing poster). (iii) Procedures to be used to inform and solicit applications from persons in the housing market area that are not likely to apply for the housing without special outreach. These efforts might include advertising in non-English language newspapers, targeted outreach through direct mail, informing service agencies about the project, community organizations, places of worship, and translators at public meetings.
(iv) Records that will be kept describing actions taken to affirmatively market HOMEAssisted units and records to assess the results of these actions.

Packet Pg. 265 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend 6 (v) A description of how you will annually assess the success of your affirmative marketing actions and what corrective actions will be taken when affirmative marketing requirements are not met (i.e., making an annual review of who the program or project is serving to determine whether they are reaching members of protected classes and to determine which marketing vehicle works best to reach persons who might not be likely to apply). f. Affirmative Fair Housing Marketing Plan. Every HOME-Assisted project must develop and carry out an Affirmative Fair Housing Marketing Plan (AFHMP) (see attached Appendix I).

Owners must comply with the requirements of their AFHMP, which is designed to promote equal housing access for all prospective tenants regardless of race, color, religion, sex, disability, familial status, or national origin. The AFHMP is the owner's blueprint for marketing activity.

Owners must review their AFHMP at least every five years and update it as needed to ensure compliance. A review may indicate that revisions to the AFHMP are necessary if the population of the property area has changed over time, and thus targeted marketing efforts should change.

The AFHMP helps owners to effectively market the availability of housing opportunities to individuals of both minority and non-minority groups that are least likely to apply for occupancy. g. Displacement, Relocation and Acquisition. In accordance with 24 CFR 92.353 the Owner must ensure that they have taken all reasonable steps to minimize the displacement of persons (families, individuals, businesses, nonprofit organizations, and farms) as a result of the Project.
h. Labor.
(i) In accordance with 24 CFR 92.354 every contract for the construction (rehabilitation or new construction) of housing that includes 12 or more units assisted with HOME funds must contain a provision requiring the payment of not less than the wages prevailing in the locality, as predetermined by the Secretary of Labor pursuant to the DavisBacon Act (40 U.S.C. 276a-276a-5), to all laborers and mechanics employed in the development of any part of the housing. Such contracts must also be subject to the overtime provisions, as applicable, of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-332). (ii) The contract for construction must contain these wage provisions if HOME funds are used for any project costs in § 92.206, including construction or non-construction costs, of housing with 12 or more HOME-Assisted units. When HOME funds are only used to assist homebuyers to acquire single-family housing, and not for any other project costs, the wage provisions apply to the construction of the housing if there is a written agreement with the owner or developer of the housing that HOME funds will be used to assist homebuyers to buy the housing and the construction contract covers 12 or more housing units to be purchased with HOME assistance. The wage provisions apply to any construction contract that includes a total of 12 or more HOME-Assisted units, whether one or more than one project is covered by the construction contract. Once they are determined to be applicable, the wage provisions must be contained in the construction contract so as to cover all laborers and mechanics employed in the development of the entire project, including portions other than the assisted units. Arranging multiple construction contracts within a single project for the purpose of avoiding the wage provisions is not permitted.

Packet Pg. 266 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend 7 (iii) Contractors, subcontractors, and other participants must comply with regulations issued under the above-noted acts and with other Federal laws and regulations pertaining to labor standards and HUD Handbook 1344.1 (Federal Labor Standards Compliance in Housing and Community Development Programs), as applicable. The City requires certification as to compliance with the provisions of this section before making any payment under such contract. . (iv) Volunteers. The prevailing wage provisions of paragraph (i) and (ii) of this section do not apply to an individual who receives no compensation or is paid expenses, reasonable benefits, or a nominal fee to perform the services for which the individual volunteered and who is not otherwise employed at any time in the construction work. See 24 CFR part 70. (v) Sweat equity. The prevailing wage provisions of paragraph (a) of this section do not apply to members of an eligible family who provide labor in exchange for acquisition of a property for homeownership or provide labor in lieu of, or as a supplement to, rent payments. i. Lead-Based Paint. Housing assisted with HOME funds is subject to the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846), the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851-4856), and implementing regulations at part 35, subparts A, B, J, K, Mand R of this title.

J. Conflict of Interest.
(i) Conflicts prohibited No persons described in paragraph (ii) of this section who exercise or have exercised any functions or responsibilities with respect to activities assisted with HOME funds or who are in a position to participate in a decision making process or gain inside information with regard to these activities, may obtain a financial interest or benefit from a HOME-Assisted activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. (ii) Persons covered. The conflict of interest provisions of paragraph (i) of this section apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the City or Owner which are receiving HOME funds. No owner, developer or sponsor of a project assisted with HOME funds (or officer, employee, agent or consultant of the owner, developer or sponsor) whether private, for profit or non-profit (including a community housing development organization (CHDO) when acting as an owner, developer or sponsor) may occupy a HOME-Assisted affordable housing unit in a project. This provision does not apply to an individual who receives HOME funds to acquire or rehabilitate his or her principal residence or to an employee or agent of the owner or developer of a rental housing project who occupies a housing unit as the project manager or maintenance worker.

8. Monitoring. City shall be responsible for managing the day-to-day operations of its HOME Program, for monitoring the performance of the Owner as a recipient of HOME funds from the City to assure compliance with the requirements of Federal regulations, as they relate to HOME funds, and for taking appropriate action whenever performance problems arise. To that end:
a. Owner must annually provide the City with information on tenant income, rents and occupancy of the Project's HOME-Assisted units to demonstrate compliance with the Packet Pg. 267 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend 8 affordability requirements contained in 24 CFR 92.252, and information regarding the Owner's progress in implementing the affirmative marketing requirements and procedures agreed upon between the City and Owner.
b. For Projects containing 26 or more units (i.e., including HOME and non-HOME assisted), not less than annually, the City shall review the activities of the Owner as a recipient of HOME funds to assess compliance with the requirements of 24 CFR Part 92, the Agreement and the City's Loan Documents. The City's review shall include:
(i) an on-site inspection of a sufficient sample of HOME-Assisted units to determine compliance with applicable "Property Standards" required under 24 CFR 92.251, and adopted by the City, and to verify information regarding tenant income, rent and occupancy pertaining to same units, and affirmative marketing progress, previously submitted by the Owner. The results of each review must be included in the City's annual performance required by 24 CFR Part 91, and shall be made available to the public.

9. Records and Reports. Owner must maintain all records pertaining to the Project and participation in the HOME Program and submit any required information or reports to the City, in order to assist the City in meeting its monitoring, recordkeeping and reporting requirements. a. Records must be retained for five years after the Project completion date, except that records of individual tenant income verifications, rents, occupancy and unit inspections must be retained for the most recent five-year period, until five years after the HOME period of affordability terminates. Other record keeping and reporting requirements as described in the Loan Documents shall apply.
b. City must provide citizens, public agencies, and other interested parties with reasonable access to records, consistent with applicable State and local laws regarding privacy and obligations of confidentiality.

10. Displacement/Relocation. Records covering displacements and acquisition must be retained for five years after the date by which all persons displaced from the property and all persons whose property is acquired for the project, have received the final payment to which they are entitled in accordance with 24 CFR 92.353.

11. Requests for Disbursement of Funds. Owner may not request disbursement of HOME funds under the Loan Documents until the funds are needed for payment of eligible costs. The amount of each request must be limited to the amount actually needed.

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
Packet Pg. 268 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend 9 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first hereinabove set forth.

CITY OF REDDING, a municipal corporation
By: Barry Tippin, City Manager
APPROVED AS TO FORM:

BARRY E. DEWALT, CITY ATTORNEY
By:

RESOURCES FOR RURAL COMMUNITY
DEVELOPMENT, INC. dba ACCESSHOME, a California
nonprofit public benefit corporation
By:

DAWN SMITH, Executive Director
Packet Pg. 269 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend FOR APNIP ARCEL ID:

LEGAL DESCRIPTION PENDING

EXHIBIT A

LEGAL DESCRIPTION
Packet Pg. 270 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend RECORDING REQUESTED BY:

City of Redding

CITY BUSINESS - NO FEE
Section 6103 of the Government Code
of the State of California
AND WHEN RECORDED MAIL TO:

City of Redding - Housing Division
777 Cypress A venue
P.O. Box 496071
Redding, CA 96049-6071
Exhibit 4

CITY OF REDDING

DECLARATION OF RENT RESTRICTIONS
THIS DECLARATION OF RENT RESTRICTIONS (the "Declaration") is entered into the _ th of July 2021, by and between the CITY OF REDDING, a Municipal Corporation ("CITY") and RESOURCES FOR RURAL COMMUNITY DEVELOPMENT, INC. dba AccessHome, a California Nonprofit Public Benefit Corporation,
A. ACCESSHOME is having a Ground Lease of that certain real property ("Real Property" or "Site") located at 4000 Victor Avenue in the City of Redding, County of Shasta, State of California, legally described in the attached Exhibit "A." The Real Property is the subject of a Development Funding Agreement dated __ 2021, for the acquisition, operation, and maintenance of a single-family rental housing project consisting of one (1) unit. The unit will be affordable to Very Low-Income households to be located on the Real Property as herein defined.

B. The Real Property is located in the City of Redding and the financing of the Site for affordable housing is in the best interest of ACCESSHOME and the CITY, and the health, safety, and welfare of the residents of the City of Redding.

C. To facilitate affordable low-income rental housing the CITY wishes to place affordable rent restrictions on one ( 1) unit.

NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, THE PARTIES AGREE AS FOLLOWS:

1. Number of Units; Income Eligibility. The completed Project consists of one (1) threebedroom housing unit. ACCESSHOME agrees to make available, restrict occupancy to, and rent at an "Affordable Rent" the unit to a "Lower-Income Household" as those terms are hereinafter defined for the period of time described in Paragraph 2. The Lower-Income unit is referred to herein as the "Affordable Unit." ACCESSHOME must maintain the HOME unit (High HOME Unit) throughout the affordability period.

Packet Pg. 271 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend

2. Definitions.
"Lower-Income Household" shall mean a household earning no greater than sixty percent (60%) of the Shasta County median income, as determined by the United States Department of Housing and Urban Development from time to time, as set forth in the HOME Program Final Rule at 24 CFR Part 92.216(a)(l), as it exists as of the date of this Declaration. "Affordable Rent" shall have the meaning set forth in 24 CFR Part 92.252 (HOME rents) as it exists as of the date of this Declaration, as further defined in Paragraph 3 of this Declaration. "Affordability Period" shall mean a period commencing upon the date of recordation of the HOME Agreement and continuing for twenty (20) years.

3. Duration of Affordability of Affordable Units. The Affordable Unit shall remain available for rent to and occupancy by Low-Income Households at an Affordable Rent throughout the Affordability Period.

Not withstanding any other provision of law, the covenants and restrictions contained herein shall run with the land for the duration of the Affordability Period and shall be enforceable, against ACCESSHOME and/or its successors in interest, by the City, the community and/or others as allowed by law.

This Declaration of Rent Restrictions shall survive termination of the Development Funding Agreement and reconveyance of the City Deed of Trust and shall not be subject to subordination.

4. Determination of Affordable Rent for the Affordable Units. Each Affordable Unit shall be rented at a monthly rental amount ("Affordable Rent") in accordance with Section 50053(b )(2) of the California Health and Safety Code as to the Very Low-Income Units and Section 50053(b)(3) of the California Health and Safety Code as to the Lower-Income Units. As of the date of this Declaration, the following formulas represent maximum Affordable Rents:
(i) for the Very Low Income Units: One-twelfth (1/12) of thirty percent (30%) of fifty percent (50%) of the area median income adjusted for family size appropriate to the unit applicable to the City of Redding, as determined by the United States Department of Housing and Urban Development (the "Applicable Median Income"); and (ii) for the Lower-Income Units: One-twelfth (1/12) of thirty percent (30%) of sixty percent (60%) of the Applicable Median Income adjusted for family size appropriate to the unit.

5. Monitoring of the Affordable Units. ACCESSHOME, its designee or successor shall prepare and submit a certification report annually to the CITY during the Affordability Period. The report shall identify each Affordable Unit, the rental rate, and the income and family size of the occupants, as well as any other project information that is required by the HOME regulations (92.252 and

92.253) and requested by the City. The required income information shall be supplied by the tenant in the form of source documentation kept at ACCESSHOME's office and shall be available for CITY review at the CITY' s request.

Packet Pg. 272 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend IN WITNESS WHEREOF, the CITY and ACCESSHOME have signed this Declaration on the respective dates set forth below.

CITY OF REDDING, a Municipal Corporation
By: ____________ _
Barry Tippin, City Manager
APPROVED AS TO FORM:

BARRY E. DEWALT, City Attorney
By:-------------

RESOURCES FOR RURAL COMMUNITY
DEVELOPMENT, INC. dba ACCESSHOME
A California Nonprofit Public Benefit Corporation
By:-------------
Dawn Smith, Executive Director
Packet Pg. 273 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend EXHIBIT "A" to CITY DECLARATION OF RENT RESTRICTIONS

LEGAL DESCRIPTION
FOR APN/PARCEL ID:

LEGAL DESCRJPTION PENDING
Packet Pg. 274 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend RECORDING REQUESTED BY:

City of Redding

CITY BUSINESS - NO FEE
Section 6103 of the Government Code
of the State of California
AND WHEN RECORDED MAIL TO:

City of Redding - Housing Division
P.O. Box 496071
777 Cypress A venue
Redding, CA 96049-6071
Exhibit 5

CITY OF REDDING LEASEHOLD DEED OF TRUST WITH ASSIGNMENTS OF RENTS THIS DEED OF TRUST is made this __ h day of July 2021, by RESOURCES FOR RURAL COMMUNITY DEVELOPMENT, INC. dba ACCESSHOME, a California nonprofit benefit corporation, as to equitable title, herein called "Trustor," and/or "Borrower" whose address is 715 Parkview Avenue #1, Redding, CA 96001; PLACER TITLE COMPANY herein called "Trustee," whose address is 2145 Larkspur Lane, Suite A, Redding, CA 96002; and the CITY OF REDDING, a municipal corporation and general law city, whose address is P.O. Box 496071, 777 Cypress Avenue, Redding, California 96049-6071, herein called "Beneficiary" and/or the "Lender".

WITNESSETH: That Trustor Irrevocably, Grants, Transfers and Assigns, to Trustee, in Trust, with Power of Sale, that leasehold interest established by the Ground Lease dated July __ , 2021 for property in the City of Redding ("City"), County of Shasta, State of California, described as:

EXHIBIT A - Legal Description
ASSESSOR'S PARCEL NUMBER: 048-400-003-000
TOGETHER WITH: (a) all buildings, improvements and fixtures, now or in the future thereon, it being understood and agreed that all classes of property attached or unattached used in connection herewith shall be deemed fixtures, (b) rents, issues and profits thereof, and ( c) all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement for the sale thereof, SUBJECT, HOWEVER, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues, and profits, and all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement.

BORROWER HEREBY expressly acknowledges and agrees that the subject loan, this Deed of Trust, and the property which serves as security for the Note and Deed of Trust, involves a single-family residential transaction, one that the Borrower is expressly entering into for the provision of affordable housing and not for profit, and not in any way related to Borrower's home or residence. As such, Borrower further acknowledges and agrees that Lender likewise is making this loan on the aforesaid basis, and thus intends to enforce any and all of its rights accordingly.

Packet Pg. 275 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend FOR THE PURPOSE OF SECURING:

1. Payment of the sum of Three Hundred Thirty-Seven Thousand One Hundred Ninety-six No/100 Dollars ($337,196) with interest thereon according to the terms of a certain Promissory Note of even date herewith, designated as the "Residual Receipts Promissory Note" made by Trustor, payable to the order of the Beneficiary and extensions or renewals thereof.

2. Payment of such additional sums with interest thereon as: (a) may be hereafter borrowed from the Beneficiary by the then record owner or owners of said property when evidenced by another Promissory Note or Notes reciting that they are secured hereby, or (b) as may be added to the indebtedness secured hereby in accordance with the provisions of this Deed of Trust.

3. Performance of each and every obligation, covenant, promise, or agreement of Trustor contained herein.

4. Payment, with interest thereon, of any other present or future indebtedness or obligation of the Trustor ( or of any successor in interest of the Trustor to said property) to the Beneficiary reciting that they are secured hereby, whether created directly or acquired by assignment, whether absolute or contingent, whether due or not, whether otherwise secured or not, or whether existing at the time of the execution of the Deed of Trust, or arising thereafter.

5. Performance of each agreement of Trustor contained in any Development Funding Agreement (including without limitation the Exhibits thereto) entered into between Trustor and Beneficiary for the development, construction of improvements, adoption of rent restrictions or other affordability covenants, or operation of certain activities on the above-described property.

6. The whole of the Promissory Note shall be nonrecourse to Borrower.

TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES:

1. To keep said property in good condition and repair; to allow Beneficiary or its representatives to enter and inspect the premises at all reasonable times and access thereto shall be permitted for that purpose; not to remove or demolish any building thereon; not to make alterations thereto without the consent of the Beneficiary; to suffer or permit no change in the general nature of the occupancy of the premises without Beneficiary's written consent; to complete or restore promptly and in good and workmanlike manner any building which may be constructed, damaged, or destroyed thereon, including, without restricting the generality of the foregoing, damage from termites and dry-rot; to pay when due all claims for labor performed and materials furnished in connection with such property and not to permit any mechanic's lien against such property; to comply with all laws affecting such property or requiring any alterations or improvements to be made thereon; not to initiate or acquiesce in any zoning reclassification without Beneficiary's written consent; not to commit or permit waste thereon; not to commit, suffer, or permit any act upon such property in violation of the law; and to paint, cultivate, irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use of said property may be reasonably necessary; to promptly pay all amounts due others upon agreements of lease or conditional sale of all fixtures, furnishings, and equipment located thereon.

If the loan secured hereby or any part thereof is being obtained or should any additional loan be made hereafter for the purpose of financing rehabilitation improvements or construction of affordable housing on said property, Trustor further agrees, anything in this Deed of Trust to the contrary notwithstanding: (a) to complete the same in accordance with City approved plans and specifications satisfactory to Beneficiary; (b) to allow Beneficiary to inspect such property at all times during City of Redding Deed of Trust Page 2 of9
Packet Pg. 276 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend rehabilitation; ( c) to replace any work or materials unsatisfactory to Beneficiary within fifteen (15) calendar days after written notice from Beneficiary of such fact, which notice may be given to Trustor by registered or certified mail, sent to its last known address, or by personal service of the same; ( d) that work shall not cease on the construction of such improvements for any reason whatsoever for a period of fifteen (15) calendar days, whether consecutive or not, without the written permission of the Beneficiary; ( e) to pay when due all claims for labor and materials furnished in connection with the said construction and/or rehabilitation and not to permit any claims of lien for said work or material to be filed of record against the said property; and (f) not to permit any stop notice claims to be presented to Beneficiary. If the said property is part of a larger tract upon which improvements will be constructed, Trustor shall make separate contracts and subcontracts for said construction which shall pertain to the said property only and shall keep separate, full, and complete records of all work and materials furnished to the said property. Trustee, upon presentation to it of an affidavit signed by the Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein and to act thereon hereunder.

2. To provide and maintain in force at all times with respect to said property, fire and other types of insurance as may be required by Beneficiary. All of such insurance shall have a loss payable endorsement in favor of Beneficiary, shall contain an endorsement that such insurance shall not be canceled or modified without thirty (30) days advance written notice to Beneficiary, shall be for a term and in form, content, amount, and with such companies as may be satisfactory to Beneficiary, and the policies therefor shall be delivered to and remain in possession of Beneficiary as further security for the faithful performance of Trustor hereunder.

At least thirty (30) days prior to the expiration of any insurance policy, a policy or policies renewing or extending such expiring insurance shall be delivered to Beneficiary together with written evidence showing payment of the premium therefor and, in the event any such insurance policy and evidence of the payment of the premium therefor are not so delivered by Trustor to Beneficiary, Trustor, by executing this Deed of Trust, specifically requests Beneficiary to obtain such insurance and Beneficiary, without obligation to do so, without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may obtain such insurance through or from any insurance agency or company acceptable to it, pay the premium thereof, and may add the amount thereof to the indebtedness secured hereby, which amount shall bear a like rate of interest. Beneficiary may furnish to any insurance agency or company, or any other person, any information contained in or extracted from any insurance policy theretofore delivered to Beneficiary pursuant hereto and any information concerning the loan secured hereby. Neither Trustee nor Beneficiary shall be responsible for such insurance or for the collection of any insurance monies, or for any insolvency of any insurer or insurance underwriter. In case of insurance loss, Beneficiary is hereby authorized either (a) upon prior notice to Trustor, to settle and adjust any claim under the insurance policies provided for in this document without the consent of the Trustor, or (b) to allow Trustor to agree with the insurance company or companies on the amount to be paid upon the loss. In either case, the Beneficiary is authorized to collect and make receipt of any such insurance money. If Trustor is obligated to restore or replace the damaged or destroyed buildings or improvements under the terms of any lease or leases which are or may be prior to the lien of this Deed of Trust and such damage or destruction does not result in cancellation or termination of such lease, such proceeds, after deducting therefrom any expenses incurred in the collection thereof, shall be used to reimburse the Trustor for the cost of rebuilding or restoring the buildings or improvements on said premises. In all other cases, such insurance proceeds, at the option of the Beneficiary, shall either be applied in reduction of the indebtedness secured hereby whether due or not, or in such order as Beneficiary may determine, or be held by the Beneficiary and used to reimburse the Trustor for the cost of rebuilding or restoring the building or improvements on said premises. Such buildings and improvements shall be so restored or rebuilt as to be of at least equal value and substantially the same character as prior to the damage or destruction, and shall be in a condition satisfactory to Beneficiary.

City of Redding Deed of Trust Page 3 of9
Packet Pg. 277 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. Any and all unexpired insurance shall inure to the benefit of, and pass to the purchaser of, the property conveyed at any Trustee sale held hereunder.

3. To pay: (a) all general and special City and County taxes affecting such property; (b) when due, all special assessments for public improvements, without permitting any improvement bond to issue for any special assessment; ( c) when due, all encumbrances, charges and liens, with interest, on said property, or any part thereof, which are or appears to be prior or superior hereto; ( d) if the security of this Deed of Trust is a leasehold estate, to make any payment or do any act required of the Lessee or its successor in interest under the terms of the instrument or instruments creating said leasehold; ( e) all costs, fees and expenses of this trust; (f) for any statement regarding the obligation secured hereby any amount demanded by Beneficiary not to exceed the maximum allowed by law thereof at the time when such request is made; (g) such other charges for services rendered by Beneficiary and furnished at Trustor's request or that of any successor in interest to Trustor as the Beneficiary may deem reasonable.

If, by the laws of the United States of America, or of any state having jurisdiction over the Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby secured, the Trustor covenants and agrees to pay such tax in the manner required by such law. Should Trustor fail to make any such payment, Beneficiary may elect to make such payment and any amount so paid may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest.

4. That, should Trustor fail to make any payment or do any act as provided in this Deed of Trust, then Beneficiary or Trustee, but without obligation to do so and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may (a) make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes; (b) commence, appear in, or defend any action or proceeding purporting to affect the security hereof or the property covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee; ( c) pay, purchase, contest, or compromise any encumbrance, charge or lien, which in the judgment of either is or appears to be prior or superior hereto; and ( d) in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. Trustor agrees to repay any amount so expended on demand of Beneficiary, and any amount so, expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest.

5. To perform each agreement of Trustor contained in any Development Funding Agreement (including without limitation the Exhibits thereto) entered into between Trustor and Beneficiary for the development, construction of improvements, adoption of rent restrictions or other affordability covenants, or operation of certain activities on the above-described property.

6. To appear in and defend any action or proceeding purporting to affect the security hereof or the property which is covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, and whether or not Trustor so appears or defends, to pay all costs and expenses, including cost of evidence of title and attorneys' fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear by virtue of being made a party defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in such property is directly questioned by such action, including any action for the condemnation or partition of said premises, and in any suit brought by Beneficiary to foreclose this Deed of Trust.

7. To pay immediately and without demand, all sums expended under the terms of this Deed of Trust by Beneficiary or Trustee, with interest from the date of expenditure at the rate which the principal obligation secured hereby bears at the time such payment is made, and the repayment of such City of Redding Deed of Trust Page 4 of9
Packet Pg. 278 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend sums shall be secured hereby.

8. That, should the Trustor or any successor in interest to Trustor in such property drill or extract, or enter into a lease for drilling or extraction of oil, gas, or other hydrocarbon substances or any mineral of any kind or character, or sell, convey, further encumber, or alienate said property, or any part thereof, or any interest therein, or be divested of his title or any interest therein in any manner or way, whether voluntarily or involuntarily, Beneficiary shall have the right, at its option, to declare any indebtedness or obligations secured hereby irrespective of the maturity date specified in any Note evidencing the same, immediately due and payable, and no waiver of this right shall be effective unless in writing.

9. That any award, settlement, or damages for injury or damages to such property, or in connection with the transaction financed by such loan, and any award of damages in connection with any condemnation for public use of or injury to said property, or any part thereof, is hereby assigned and shall be paid to Beneficiary, who may apply or release such monies received by it in such manner and with the same effect as above provided for the disposition of proceeds of fire or other insurance.

10. That, by accepting payment of any sum secured hereby after its due date, or by making any payment, or performing any act on behalf of Trustor, that Trustor was obligated hereunder, but failed, to make, or perform, or by adding any payment so made by Beneficiary to the indebtedness secured hereby, Beneficiary does not waive its right either to require prompt payment when due of all sums so secured or to declare a default for failure so to pay.

11. That at any time, or from time to time, without liability of the Beneficiary or Trustee thereof, and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and any Note secured hereby for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, or the lien of the Deed of Trust upon the remainder of said property for the full amount of the indebtedness then or thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee with respect to the remainder of said property, Trustee may: (a) reconvey any part of said property; (b) consent to the making of any map or plat thereof; ( c) join in granting any easement thereon; ( d) join in any agreement subordinating the lien or charge hereof.

12. That the lien hereof shall remain in full force and effect during any postponement or extension of time of payment of the indebtedness secured hereby, or any part thereof.

13. That upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and said Note or Notes to Trustee for cancellation and retention, and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters of fact shall be conclusive evidence of the truthfulness thereof. The grantee in such reconveyance may be described as "the person or persons legally entitled thereto." Such request and reconveyance shall operate as a re-assignment of the rents, issues, royalties and profits hereinafter assigned to Beneficiary. Five (5) years after issuance of such full reconveyance, Trustee may destroy said Note and this Deed of Trust (unless directed in such request to retain them).

14. That as additional security, Trustor irrevocably assigns to Beneficiary the rents, issues, and profits of the property affected by this Deed of Trust for the purposes and upon the terms and conditions set forth below. This assignment shall not impose upon Beneficiary any duty to produce rents from the property affected by this Deed of Trust, or cause Beneficiary to be (a) "mortgagee in possession" for any purpose; (b) responsible for performing any of the obligations of the lessor under any lease; or ( c) responsible for any waste committed by lessees or any other parties, for any dangerous or City of Redding Deed of Trust Page 5 of9
Packet Pg. 279 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend defective condition of the property affected by this Deed of Trust, or for any negligence in the management, upkeep, repair, or control of such property. This is an absolute assignment, not an assignment for security only, and Beneficiary's right to rents, issues, and profits is not contingent upon, and may be exercised without possession of, the property affected by this Deed of Trust.

Beneficiary confers upon Trustor a license ("License") to collect and retain the rents, issues, and profits of the property affected by this Deed of Trust as they become due and payable, until the occurrence of a default hereunder. Upon such default, the License shall be automatically revoked and Beneficiary may collect and retain the rents, issues, and profits without notice and without taking possession of the property affected by this Deed of Trust. This right to collect rents, issues and profits shall not grant to Beneficiary or Trustee the right to possession, except as otherwise provided herein; and neither said right, nor termination of the License, shall impose upon City or Trustee the duty to produce rents, issues, or profits or maintain all or any part of the property affected by this Deed of Trust. If Trustor shall default as aforesaid, Trustor's right to collect any such money shall cease and Beneficiary shall have the right, with or without taking possession of the property affected hereby, to collect all rents, issues, royalties, and profits and shall be authorized, and may, without notice and irrespective of whether declaration of default has been delivered to Trustee and without regard to the adequacy of the security for the indebtedness secured hereby, either personally or by attorney or agent without bringing any action or proceeding, or by receiver to be appointed by the Court, enter into possession and hold, occupy, possess and enjoy the said property, make, cancel, enforce, and modify leases, obtain and eject tenants, and set and modify rents and terms of rents, and to sue, and to take, receive and collect all or any part of the said rents, issues, and profits of the property affected hereby, and after paying such costs of maintenance, operation of said property, and of collection including reasonable attorneys' fees, as in its judgment it may deem proper, to apply the balance upon any indebtedness then secured hereby, the rents, issues, royalties, and profits of said property being hereby assigned to Beneficiary for said purposes. The acceptance of such rents, issues, royalties, and profits shall not constitute a waiver of any other right which Trustee or Beneficiary may enjoy under this Deed of Trust or under the laws of California. Failure of or discontinuance by Beneficiary at any time, or from time to time, to collect any such rents, issues, royalties, or profits shall not in any manner affect the subsequent enforcement by Beneficiary of the right, power and authority to collect the same. The receipt and application by said Beneficiary of all such rents, issues, royalties, and profits pursuant hereto, after execution and delivery of declaration of default and demand for sale as hereinafter provided, or during the pendency of Trustee's sale proceedings hereunder, shall not cure such breach or default nor affect said sale proceedings, or any sale made pursuant thereto, but such rents, issues, royalties, and profits, less all costs of operation, maintenance, collection, and reasonable attorneys' fees, when received by Beneficiary, shall be applied in reduction of the indebtedness secured hereby, from time to time, in such order as Beneficiary may determine. Nothing contained herein, nor the exercise of the right by Beneficiary to collect, shall be, or be construed to be, an affirmation by Beneficiary of any tenancy, lease or option, nor an assumption of liability under, nor a subordination of the lien or charge of this Deed of Trust to, any such tenancy, lease or option.

15. That if the security of this Deed of Trust is a leasehold estate, the Trustor agrees that: (a) the term "Lease" as used herein shall mean the lease creating the "leasehold estate"; (b) Trustor shall not amend, change, or modify his leasehold interest, or the Lease, or agree to do so, without the written consent of the Beneficiary; ( c) Trustor will promptly advise Beneficiary regarding any notice, request, or demand received by him from the lessor under the Lease and promptly furnish Beneficiary with a copy of any such notice, request or demand; ( d) as long as any of the indebtedness secured hereby shall remain unpaid, unless the Beneficiary shall otherwise consent thereto in writing, the leasehold estate shall not merge with the fee title but shall always be kept separate and distinct, notwithstanding the union of said estates in any party; (e) Trustor agrees that it will promptly, strictly, and faithfully perform, fulfill, and comply with all covenants, agreements, terms, conditions, and provisions under any lease affecting the premises and to neither do anything, nor to permit anything to be done which may cause modification or termination of any such lease or of the obligations of any lessee or person claiming through such lease or the rents provided for therein or the interest of the lessor or the Beneficiary therein or thereunder. Trustor City of Redding Deed of Trust Page 6 of9
Packet Pg. 280 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend further agrees he will not execute a Deed of Trust or mortgage which may be or become superior to any leasehold estate that is security for this Deed of Trust. In the event of a violation of any of the covenants set forth in this paragraph, Beneficiary shall have the right, at its option, to declare all sums secured hereby immediately due and payable. Consent to or waiver of one of said violations shall not be deemed to be a consent to or waiver of any other violation. If the security for this Deed of Trust is a leasehold estate, the term "said property" as used in this Deed of Trust shall be deemed to mean the leasehold estate whenever the context so requires for the protection of the Beneficiary.

16. That any default by Trustor in payment of any indebtedness secured hereby or performance of any covenant or condition set forth in a Development Funding Agreement between Trustor and Beneficiary shall constitute a default under this Deed of Trust, and upon default by Trustor under the terms of any encumbrance, charge, or lien which is or appears to be prior or superior hereto, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary shall also deposit with Trustee this Deed of Trust and any Notes and all documents evidencing expenditures secured hereby. After the lapse of such time as then may be required by law following recordation of such notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in such notice of sale, whether as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its Deed conveying the property so sold, but without any covenant or warranty, express or implied. The recital in such Deed of any matters of fact shall be conclusive evidence of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. Trustee may also sell at any such sale and as part thereof any shares of corporate stock securing the obligations secured hereby, and Trustor waives demand and notice of such sale. (Beneficiary at its option may also foreclose on such shares by independent pledge sale, and Trustor waives demand and notice of such sale.) After deducting all costs, fees and expenses of Trustee, and of this Trust, including cost of evidence of title in connection with this sale, Trustee shall apply the proceeds of sale to payment, first, of all sums expended under the terms hereof, not then repaid, with accrued interest at the rate then payable under the Note or Notes secured hereby, and then of all other sums secured hereby, and, if there are any proceeds remaining, shall distribute them to the person or persons legally entitled thereto.

17. To waive, to the fullest extent permissible by law, the right to plead any statute of limitations as a defense to any demand secured hereby.

18. That Beneficiary may, from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed and acknowledged by Beneficiary and recorded in the office of the recorder of the county or counties where such property is situated, shall be conclusive proof of property substitution of such successor Trustee or Trustees, who shall, without conveyances from the Trustee predecessor, succeed to all its title, estate, rights, powers, and duties, including but not limited to the power to reconvey the whole or any part of the property covered by this Deed of Trust. Such instrument must contain the name of the original Trustor, Trustee, and Beneficiary hereunder, and the book and page where this Deed of Trust is recorded. If notice of default shall have been recorded, this power of substitution cannot be exercised until after the costs, fees, and expenses of the then acting Trustee shall have been paid to such Trustee, who shall endorse receipt thereof upon such instrument. The procedures herein provided for substitution of Trustee shall not be exclusive of other provisions for substitution provided by law.

19. That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, City of Redding Deed of Trust Page 7 of9
Packet Pg. 281 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend their heirs, legatees, devisees, administrators, executors, transferees, successors, and assigns. The term Beneficiary" shall mean the owner and holder, including pledgee, of the Note secured hereby, whether or not named as Beneficiary herein. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural.

20. Trustor agrees to file with Beneficiary annually during October of each calendar year a written operational report which concerns the fiscal year ending on the immediately preceding June 30th and conforms to the standards set forth by the Participating Jurisdiction and 24 CFR Part 92 (with respect to the real property first described in this Deed of Trust) necessary or convenient for Beneficiary to make the annual reports.

21. That in the event of a demand for, and the preparation and delivery of a written statement regarding the obligations secured by this Deed of Trust pursuant to Sections 2943 and 2954 of the Civil Code of California ( or successor statutes), Beneficiary shall be entitled to make a reasonable charge, not exceeding the maximum amount which is permitted by law at the time the statement is furnished.

Beneficiary may also charge Trustor a reasonable fee for any other services rendered to Trustor or rendered in Trustor's behalf in connection with said property of this Deed of Trust, including changing Beneficiary's records pertaining to this Deed of Trust and the loan secured hereby in connection with the transfer of said property, or releasing an existing policy of fire insurance or other casualty insurance held by Beneficiary and replacing the same with another such policy.

22. That Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee.

23. That should this Deed of Trust or any Note secured hereby provide any fee for prepayment of any indebtedness secured hereby, Trustor agrees to pay said fee, if any, if said indebtedness shall be paid prior to the due date thereof stated in said Note or this Deed of Trust even if and notwithstanding that Trustor shall have defaulted in payment thereof, or in performance of any agreement hereunder, and Beneficiary, by reason thereof, shall have declared all sums secured hereby immediately due and payable.

24. That Trustor has made certain representations and disclosures in order to induce Beneficiary to make the loan evidenced by the Promissory Note or Notes which this Deed of Trust secures, and in the event that Trustor has made any material misrepresentation or failed to disclose any material fact, Beneficiary at its option and without notice, shall have the right to declare the indebtedness secured hereby, irrespective of the maturity date specified in such Note or Notes, immediately due and payable, and on failure to so pay Beneficiary may make a written declaration of default and demand for sale as in paragraph No. 15 herein set forth. Trustee, upon presentation to it of an affidavit signed by Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder.

Any notice which any party hereto may desire or be required to give to the other party shall be in writing. The mailing thereof must be certified mail addressed to the Trustor at his address herein above set forth or to the Beneficiary at his office or at such other place as such parties hereto may designate in writing.

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
City of Redding Deed of Trust Page 8 of9
Packet Pg. 282 Attachment: C-9068 - Development Agreement - 2022 - Resources for Rural Community Development Inc. dba AccessHome (4.2(c)--Amend THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of default and of any notice of sale hereunder be mailed to him at his address hereinbefore set forth.

Dated: July_, 2021
City of Redding Deed of Trust
Signature of Trustor(s):

RESOURCES FOR RURAL COMMUNITY DEVELOPMENT,
INC. dba ACCESSHOME, a California nonprofit
public benefit corporation
By:

Dawn Smith, Executive Director
This document must be notarized.