Santa Ana City Council
April 19, 2022

EXHIBIT(S)

1. Resolution
Submitted By: Lisa Rudloff, Executive Dir. of Parks, Recreation and Community Services
Approved By: Kristine Ridge, City Manager
City Council 24 – 2 4/19/2022
Resolution No. 2022-XXX

RESOLUTION NO. 2022-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SANTA ANA ESTABLISHING THE JOINT SCHOOL

COLLABORATION CITY COUNCIL STANDING

SUBCOMMITTEE BETWEEN THE CITY OF SANTA ANA

AND THE SANTA ANA UNIFIED SCHOOL DISTRICT

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS:

Section 1. The City Council hereby finds, determines and declares as follows:

A. By resolutions approved in the past, the City Council had created City Council standing subcommittees for the purpose of focusing greater City Council attention on key priorities coming before the City Council in the future; B. In January 2013, the City Council established a joint Santa Ana Unified School District (“SAUSD”) and City Council Committee. The Committee was disbanded in February 2020, along with all other subcommittees in effect at the time;
C. On September 7, 2021, the City Council adopted Resolution No. 2021-051 to establish the School Collaboration City Council Standing Subcommittee.

Currently, the School Collaboration City Council Standing Subcommittee is the only established standing subcommittee of the City Council and it includes collaboration between all schools and school districts and the City; D. On March 1, 2022, a majority of the City Council discussed support for an additional School Collaboration City Council Standing Subcommittee between the City and the SAUSD; and
E. The City Council seeks to establish an additional School Collaboration City Council Standing Subcommittee between the City and the SAUSD entitled the Joint School Collaboration City Council Standing Subcommittee.

Section 2. From and after the date hereof, there shall be a Joint School Collaboration City Council Standing Subcommittee. The purpose of the Joint School Collaboration City Council Standing Subcommittee would be to discuss issues of mutual interest between the City and SAUSD focusing on youth services and including but not limited to, joint use of SAUSD and City facilities; library facilities; educational programs; and other topics related thereto.

Exhibit 1
City Council 24 – 3 4/19/2022
Resolution No. 2022-XXX

Section 3. The Joint School Collaboration City Council Standing Subcommittee shall consist of two (2) or three (3) councilmembers and two (2) SAUSD board members.

The City Councilmembers on the standing subcommittee shall be appointed by a majority of the entire City Council at a public meeting. SAUSD board members on the standing subcommittee shall be appointed by a majority of the entire SAUSD Board at a public meeting.

Section 4. Standing subcommittee members do not receive additional stipends or compensation for serving on a standing subcommittee. Each standing subcommittee member shall serve on the standing subcommittee for a two-year term commencing with the first meeting of each newly installed City Council following a general election, but each Councilmember shall continue to serve on his or her standing subcommittee until replaced.

Section 5. The standing subcommittee shall meet monthly, if there are items to discuss, or less often if dictated by their bylaws, and are encouraged to alternate meeting locations between City facilities and SAUSD facilities.

Section 6. This resolution shall take effect immediately upon its adoption by City Council and the Clerk of Council shall attest to and certify the vote adopting this resolution.

ADOPTED this _____ day of April, 2022.

Vicente Sarmiento
Mayor
APPROVED AS TO FORM:

Sonia R. Carvalho
City Attorney
By:

Laura A. Rossini
Chief Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers _
Exhibit 1
City Council 24 – 4 4/19/2022
Resolution No. 2022-XXX

CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2022- to be the original resolution adopted by the City Council of the City of Santa Ana on April ____, 2022.

Date:

Clerk of the Council
City of Santa Ana
Exhibit 1
City Council 24 – 5 4/19/2022
Community Development Agency
santa-ana.org/cd
Item # 25
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
April 19, 2022
TOPIC: Appropriation Adjustment to Recognize Homeless Housing, Assistance and Prevention Program Funds
AGENDA TITLE:

Approve Appropriation Adjustment to Recognize Initial Disbursement of Homeless Housing, Assistance and Prevention Program Funds (Non-General Fund)

RECOMMENDED ACTION
Approve appropriation adjustment recognizing $2,058,070.34 in funds from the State of California, Business, Consumer Services and Housing Agency revenue account and appropriate the same amount to expenditure account to address homelessness in Santa Ana. (Requires five affirmative votes)

DISCUSSION
The Homeless Housing, Assistance and Prevention Program (HHAP) was signed into law on July 31, 2019 by Governor Newsom. HHAP Round 1 was a $650 million grant that provided local jurisdictions with funds to support regional coordination and expand or develop local capacity to address their immediate homelessness challenges. The City of Santa Ana was awarded $8,422,162.84. The lion share of these funds were used for the tenant improvements at the Homeless Navigation Center.

HHAP Round 2 was a $300 million grant that supported previous funding to respond to homelessness. The City of Santa Ana was awarded $3,981,386. Similar to Round 1 funds, the lion share of funds were used for tenant improvements at the Homeless Navigation Center.

HHAP Round 3 is a $1 billion block grant that supports both HHAP Round 1 and Round 2 funding. The City of Santa Ana has received an initial disbursement of $2,058,070.34 from this grant award. To receive the remaining portion of the grant award, totaling $8,232,281, the State of California requires that an application be submitted by June 30, 2022. This application will be placed on the June 7, 2022 City Council meeting agenda.

The initial disbursement of the HHAP Round 3 grant award is anticipated to be needed for the tenant improvements at the Homeless Navigation Center.

City Council 25 – 1 4/19/2022
Appropriation Adjustment to Recognize Homeless Housing, Assistance and Prevention Program Funds
April 19, 2022

FISCAL IMPACT
Approval of the appropriation adjustment will recognize $2,058,070.34 in funds from the State of California, Business, Consumer Services and Housing Agency in revenue account (no. 12218002-52025) and appropriate the same amount to expenditure account (nos.12218717-various) for projected expenditures as follows:

Fiscal
Year
Accounting
Unit-Account
Fund Description Accounting Unit,
Account Description
Amount
FY 21-22 12218717-
various
Homeless Housing
Assistance and
Prevention 3
HHAP3, Various $2,058,070.34
Total $2,058,070.34
Any funds not used in fiscal year 2021-2022 will be carried over to the next fiscal year. All funds are to be used by June 30, 2026.

EXHIBIT(S)

1. HHAP Initial Disbursement Award Letter
Submitted By: Steven Mendoza, Assistant City Manager
Approved By: Kristine Ridge, City Manager
City Council 25 – 2 4/19/2022
Business, Consumer Services and Housing Agency
Gavin Newsom, Governor | Lourdes M. Castro Ramírez, Secretary 915 Capitol Mall, Suite 350-A | Sacramento, CA 95814 | (916) 653-4090 www.bcsh.ca.gov/hcfc
December 10, 2021
City of Santa Ana
Attn: Terri Eggers
20 Civic Center Plaza, M-25,
Santa Ana, CA 92701
RE: HHAP-3 Initial Disbursement Announcement – City of Santa Ana Agreement # 22-HHAP-10004
Initial Disbursement: $2,058,070.34
Dear Terri Eggers:

The Business, Consumer Services and Housing Agency’s (BCSH) Homeless Coordinating and Financing Council (HCFC) is pleased to announce that the City of Santa Ana has been awarded a Homeless Housing, Assistance and Prevention Round 3 (HHAP-3) Initial Disbursement in the amount of $2,058,070.34. This letter constitutes notice of the initial award of HHAP-3 funds.

The City of Santa Ana will receive its initial disbursement of funds after the Initial Disbursement Contract for Funds is fully executed. Please be advised that this award is subject to the terms and conditions of the Initial Disbursement Contract for Funds enclosed with this award packet.

Failure to sign and return the Initial Disbursement Contract for Funds within 30 days of receipt from BCSH may result in a delay of disbursement of funds.

The City of Santa Ana will receive its remainder disbursement in the amount of $8,232,281.35 after approval of the HHAP-3 application and full execution of the Remainder Disbursement Contract for Funds.

Congratulations on receiving your initial HHAP-3 award. For further information or if you have any questions, please contact the HCFC grants team at [email protected].

Sincerely,
Victor Duron
Victor Duron,
Grants Director
EXHIBIT 1
City Council 25 – 3 4/19/2022
Community Development Agency
santa-ana.org/cd
Item # 26
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
April 19, 2022
TOPIC: Increase Spending Capacity for the Homeless Navigation Center Construction AGENDA TITLE:

Approve Increase in Spending Capacity with Dyer 18 LLC for Unforeseen Tenant Improvement Costs Relating to the Homeless Navigation Center (Non-General Fund)

RECOMMENDED ACTION
Authorize the City Manager to increase spending capacity with Dyer 18, LLC for tenant improvements at the Homeless Navigation Center, in the amount of $1,200,000.

DISCUSSION
On March 2, 2021, the City Council approved a lease agreement with Dyer 18 LLC for an industrial building located at 1815 Carnegie Avenue to be used as a homeless navigation center. This lease agreement included tenant improvements (construction), as well as a purchase option. The original tenant improvement costs were estimated as $8,500,000 with an additional contingency of $850,000.

On February 15, 2022, the City Council approved an additional $2,000,000 to complete the project when it became apparent that the original tenant improvement estimate would be insufficient to complete the work on this site. Since this time, unforeseen conditions have continued and have impacted costs. Pandemic-related supply chain costs and changes to scope have had the greatest impact to the increased costs. Not only was there a disruption in service when goods were unavailable, but there was also an increase in costs of materials.

The totality of issues at the site have created these unforeseen financial impacts and necessitate increased expenditures. The contractor reports remaining tenant improvement costs to be $2,017,391. At the onset of the agreement with the contractor the City payed a retainer of $850,000, which was to be used at the conclusion of construction. The total additional spending authority needed will be the anticipated costs, minus the retainer requiring an increase in spending authority in the amount of $1,200,000, for a total construction of $12,550,000 to complete tenant Improvements and allow occupancy.

City Council 26 – 1 4/19/2022
Increase Spending Capacity for the Homeless Navigation Center Construction April 19, 2022

At this project’s onset, the general contractor made assumptions that certain portions of work had been completed by the prior contractor when estimating tenant improvement costs. As the construction progressed, it was determined that many of the items believed to have been addressed by the prior contractor had not been completed and needed to be added to the scope of work for current tenant improvements. Those costs, coupled with both increased labor and materials costs, have escalated total costs.

FISCAL IMPACT
Funds in the amount of $1,200,000 will be available, pending City Council approval for appropriation adjustment, in the Homeless Housing, Assistance and Prevention Program (HHAP) 3 grant, Payment to Subagent account (no. 12218717-66200) for expenditure in the current fiscal year.

EXHIBIT(S)

1. Lease including Addendum

2. Schedule of Values Matrix
Submitted By: Steven Mendoza, Assistant City Manager
Approved By: Kristine Ridge, City Manager
City Council 26 – 2 4/19/2022
MAR O 9 2021
Q: C,DP\ l•') (1-{vv'I -�q,,t,,,-_�)ft'\"
-QUIRED
ii� OGE•:)
AIRCRS

STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE - NET (DO NOT USE THIS FORM FOR MULTI-TENANT BUILDINGS)
I. 8'ulc Pr011lllons f'B11lc Provision,•).

A-2021-028

1.1 Put1ei. This Lease ("lease"), dated for reference purpom only March 1. 2021 . ls made by and between DYER 18. LLC ("l.auor") and -1!:if...

CITY OF SANTA ANA ("Lusae"l, (collectlvoly tho "Putiu," or lndtvldually a •Party"),

1.2 Preml1es: That cenaln real property, Including all lmprowm<,nls therein or lo be provlded by Lessor under the lorms of this tease, commonly known as (street address, city, state, zip): 1815 EAST CARNEGIE AVENUE. SANTA ANA. CA 92705 ("Premises"). The Premlm are located In the County of ORANGE , and an? generallydescrl>ed as (dewlbe briefly the nature or thepro�rty and, If applicable, the "Pro)Kt," If the property Is located within a Project):

AN APPROXIMATE 29,503 SQUARE FOOT FREESTANDING INDUSTRIAL BUILDING • (See also Paragraph 2) 1Q12._

1.3 Term: .li._ years and .Q__ months ("Orlalnal Term") commencing March , 2021 ("Commenc.emem Date") and ending January 31. ('bpi ration Da�•,. (Ste also Paragraph 3)

1.4 Early PM!e'5lon: If the Premises il/e available Lessee mav have non-exclusive possession of the Premises commencing .!:lf.L ("Ear1y Pouaulon Data'). (See also Paragraphs 3.2 and 3.3)

1.5 Bue Rant: $61,666.00 �r month ("Bese Rent"), payable on the � dav of each month commencing SEE ADDENDUM , (See also Pora graph 4)
D If this bo,<ls checkod, tha111 are provtslons In this Lease for the Base Rent to be adjusted. s.., Pua graph SEE ADDENDUM

1.6 B•Je Rent and Oth■r Monios Paid Upon fxecut1on,
(•I Bo<• Ront: $61,666.00 for the period 1ST MONTH RENT . (bl Security Ooposlt: $200.000.00 ("Security Deposit'). (See also Paragraph 5) (c) Assoclat1on Feu: __ for the pertod __ .
(d) Other: for
(el Total Due Upon Executlon olthls LUSI!! $261,666
1 .7 Ag�ed Use: EMERGENCY HOMELESS SHELTER AND ANCILLARY USES . (See •lso Paragraph 61

1.8 lnsurlna Party. Lessor Is the "Insuring Partv" unless otherv.!se nate<I herein. (� al10 Par•sr1ph 8)

1.9. Real Estate Brohn. (See also Paragraph 15 and 25)
(a) Representation: £.!ch Party acknowledges receiving a Dis.closure Regarding fteal Estate Agency Relattonshlp, conftrms and consents to the following agency n?lat1onshlps In 1h15 Lease with the foll owing real estate brokers ('Brokar(s)") and/or their agents ('�nt(s)"):

Lessor's Brokerage Firm J:Y.A_ Ucense No. __ Is the bro�, of (check o�): D the Lessor; or LJ both the Lessee and Lessor {dual agent).

Lessor's Aaent Jjj.A_ tleense No. __ ls (check onel: D the lessor's �nt (salesperson or broker associate); or D both the Lessee's Agent and the Lessor's Aaent (dual agent).

Lessee's Brok<irage Firm J:Y.A_ LICEnse No. __ Is the broker of (cileck one): D the Lessee; or D both the Lesseo and Lessor (dual agent). t.tssee'sAgent .1:Y.A_ UcenseNo. __ ls (check one): D theles.ee's Agent(salesperson orbrokerauoclate); or D both the Lessee's Agent and the lessor's Agent (dual agent).
(bl Paymentto Brokers. Upon execution and delivery of this Lease by both Partlei, Lessor shall pay to the Brokers the brokerase fee agreed to In a separate written •ereement (or If then? Is no such agreement, the sum of __ or __ l$ of the tocal Base Rent) for the brokerage services rendered by the Brokers.

1.10 Guarantor. The 9bllg;i�eA, 9f lhe Lu,oe u�der 1h11 bea,e a,e lo be gya�•leed lly l'i&__ ("Gua�ntor"). (� also Paragraph 37)

1.11 Attachments. Attiehed he<eto are the fonowtng, au of which cons11tute a part of this Lea�:
� an Addendum consistlng of Paragraphs S 1 through 70 ; D a plot plan depicting Iha Premlso,;
-- --
0 a current set of the Rules and Rtgulatlons;
D a Work Letti,r;
D other (specify): _ .

2. Premises.

2.1 lett1n1. Lessor hereby leases to Lessee, and Lossee herebv leases from Lessor, the Premises, for the tenm, at the rental, and upon all of the terms, covenants and conditions set fonh In this Lease. While the 1pproxlma� square footage of th• Premises may have been used In the marketing of the Pn?mlses for purposes of comparison, the Base Rent stated herein Is NOT tled to square footage and Is not subject to adjustment should the acl\lal site be detenmlned to be different. NOTE: lessee lsad...tsed to ""'"ly the actual Jilt prior to uecut1ng thls Luse.

2.2 C0<1dltlon I u,o, ,�all dal�·•r U,11 P,oml••• lo LIHIIG Ii••-claao aAd lru or d1b1lc on lho C::gmA1oncemen• Olla or \ho ,a•!\< RomK£1oo Dato, •uhich, .. o, ""I°''�" ("Stul Date"), and. iO lgne Ji lbt �qllltod (tP•lca cgntn.u do,e<lbod In Racasc:apb l J(bl below a•o obt:llnad by I OIIH ••d I• •ti••' wlU>ln thiny d11•• fQllowlAS lh• Stut 01t11, IN�FUAt, thal th:a ex!,dne electrkal pl11mblne, ffce ,pdnklac, UshdPS, hazdAfl, uonOl?ctne and ]It rcodldoPIP8 P;IIQMf , ... HW:C .. ), toadlne door,, wmp pump,, If JQt,: and 1H other wch al&t=PGAU In tha Premlcos, other 1h10 tbctt con11cuc&ud by I eu,a, 1h1U be lo send opent1oe condition on nid date,

INITIALS
© 2019 AIR CRE. All Rights Reserved.

STN-27.30, Revised 11-25-2019

INITIALS
Last Edited: 2/25/2021 9:53 AM
Paee 1 of 16
EXHIBIT 1
City Council 26 – 3 4/19/2022
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s tatOlh:iatloo ootlte tbat I es sot bas reled:ed ta pay: tba dlffmooca beblll8RQ tba act11al out 1b1ar1:.af ood 01:1 aD.'li:1111111 eq11al to 6 mQAlhl' Uuo Roni ltl """° ole�• IIIJ:IR!Aal!OA1 I"""" 1ball lMM8dl1ttlt1 ,oa11 the u;o el the A,1 l'Rl[II iuhl,ll IQq1�m 111�1:1 (;a pH al iMpQ11dlh.!!8 a.Ad d11Ui1111 IQ' IIU QI O<fittQA AQtt,o CjUl�ilyi119 a teFAW\ltlQA d1�1 U Ira a" gQ 0�1 tho�•·'"� ii ,R &11,mi111lfllA ilat'I Sl:illll1 l:l(WIIP<lr, Ip M 9'Nolf4 b■ e.irUarOnA \hQ Im d)l.' lhat l.lilUll6- w.uld lo5al!>f I 1dlhe lhe ll:�lm u,,jUu;11,t 1:lilPlMIIAdAQ ""'b '"Pihl £�p■Adltu�llo !bl 11,,"h C.apllal iilpeAdlt111111 IS AO& till �111111 gf 1Rlil 1pe,iMG aAd flAlqwo OIQ � tho P�tlilllHIII by I ti UH j111d1a1, 6Qrllllo�IIRHlPlalb; maAdat11d llilhmlc modlh,)dORII, tb11a IQ""' ,b;II p)ytot 111,R Ca�llal hpuAdil,1111 ilAd I lllllllil �ball •A� bl lillilllgalad W pa.111 aa,h AIOAIII dl1FIA&th11 JlrRillAd■,of Iba Ill� ol lbil lo, liH IA'JI flltlAllllilA lbtffUI� QR Iha dale 11:!at QA,, �1,R ,1:io aa,11 P:IAt 1, di.Iii an if¥lO,ijA, 1q1nl11;1 S,li44tb ol lbll Pll�QA of Uld1 ,one tOUQAabl�t alblb111ablg Ill IRfl Pn11:i:1l1H tec1ee ,�1U p,1\1 l11h1HI oA I.lie balaci,11 but "'il't pi•pillfil, c;ibUe;tioR at a11,, dmra Hi hou,euar, 111d, l;apllal li11p1Ri;ll111,1 l1 Flq •l,ai;I duriPB ,1:i11 la1I i �•11;11 o,I It.ii, L11a[Q Ill II L11uo,�11uo1111blr, d11t111mlRIII ihal 111, Ai:lt l(QJlQml,all\t h1aclbl1 11:1 p;,,y 111 sRa-e th111i;,f, I 1uo,,hall l:lau11bi1 op"'filll IQ llmllAall lhl& IIUfl 1po gl)d)'f$ p,lotuii:ittQll i:iotica to I QUH l!RIQH IIIHH ROl:ifl11 I HUii, ln11�ll:iA81'' lllllll IOda>ff il�ar ,11;1lpt.ot tes�o,',tHIIIIAll�OQ AQUCfl Illa, I IIUU rnU!pa11 fo�,u� C;ipltal hpendlhu11 If LilUOS (lgu AO� 1l1'll0 ,umlAa,11 ii Ad ia·11; lo, l•RdU IU dmu ol:aR',' ,mh Cilphal E11p11AlilllllFi, 1,n11111 mil\tadU)ACII ,11,h fl.i11d1 a11dd•d11c, iilmi1 I �,11 ,�tu111, hQ� Mor.RI ui:iijll e,,Q�'li llllUI lilt 111,h ,11111 ti:,. boHA ti1u,, paid Ill 111189 h l1Aabla '" ilnlA,. I IUOl'I 1b&'-1 0�1, IRlil balaR'9 1,1flbC1 i;liaRI di,11 ud payilWt '4r lht remahcnlliltoftllll L•:u1 le not "•ffi:'tAt lo lullv etlmb, qo I au1111 n ar eU,et b;ul,, ltnH 1halt hw1 Iha riel:11 lo t.rmlnte lh!t I au■ upon �O day, uitllhA ROtiC411 Ir:. I 11"0!
1,1 �let>11l1b,u11dlRR1ha iilttOHt.11 the plll)1 '1IMt cones nine C)phal iixp111dit• r11, ar11 lAttAd11d to appl•tOAif\,O IIIIA ;h 11!1Pu 1111111pe�hd1 and 11,e" to.ppll�able Aeqi,lr4m1111111 If Ibo Capl1,1,I liaipe�dltoiH ai:t iQllll)d hi� LQCCQll al a ,11,wl* of on a,111:I ., pFCpgui;tchane11 IA •11w. �IRftlil IAIIIIIAlll•1 oima, •
h
Ill
J:QQdillc1"QQ IQ lht Pe11m1,11� -t�ll\..tlt�,, L•1••· cb;II 1flh11r· {ll immQdlaUly uau,,u,ll ,hiiApd 1111 11, IAllilAll�to& use i1Rdflo�lak4, •• ,w QU1ei ,t',lp, a, m:i�"ICHllP,• Ill ol'#ln:wth F1q1111'41Mlttl for t11&b C)pllal hl)Qlldl,11111, or 111tcomplu11 ,ucb Capll?t lillpeAdllOIQ atlll O"!ft o�pecisa l:>a••e 11-11/ tl91:lltl) \trMiAalt lblr l11NII
1 ""H d1all Aol, 11'1"'•' Ir,
2A Acknowleda11:menu. lessee acknowledges that: (a)lt has been given an opportunity to Inspect and measure the Premises, (bl It has been advlS-l!d by u,ssor and/or erokers to :.alhfy Itself wlth respect to the size and condition of lhe Premises llncludlng but not limited to the electrleal, HVAC and fire sprlnkler sy1tems, security, environmental aspects, and compllance with Applleable RequlremenU and the Americans with Dlnb-llltlos A.ct), at\d their sultabllltv for �s,ee'5 Intended use, (c) Lessee has made such 1rwes«gat1on as It deems necessaryw!th reference to tuc:h matters and aU,um�s 1\1 r1!$ponslbUlty thereto, as Uie same relate tolls occupancy ol the Premises, (di It Is not relying on any repre�nt,11tion as to the slle ol the Ptemlies made by BN>ke11 or Li!S$Of, (el th!) square f-ootlge of lhe Pramlses wa$ not material to Lessee's decision to lease the Prem1Se5 and pay tht Rl!flt stated herein, and (ft neither lessor; uu.sor's agents, nor Brokers ha,.,e made any oral or wrltten ropresentaUons otwam,nttes with resp eel to $aid matters other than as $el forth In this t.tase. In addition, Leuor acknowledges that: (i) Brokeu have mode no reprMentatlons, prQmlsesorwarr-antli!s concerning Les:seu:1 s abllltv to honot the laase or su!tabll11y to OCOJPV the Premises, and (11) It 1, Lessor's sole responsibility to ln"estl.8;ate the financial �pablllty and/or rultablUty of all proPQsed tenants.

2.S lessett at Prior Owner/Occupant. TIie warranties made by Lessor In Parasraph 2 shall be ol no forco ot effect If Immediately prloi to the Start Oete Lessee wu the owner or occ.upant of tM Ptem\ses. In suth eve:nt, Limee !hall bt ,osponslblr. for any nocuuary i;orroctlve WOl'k.

3. Term.

3.1 Term, The Commencement Date, Expiration Date and Orlglnal Term ol this Leas.e are u specified In Paragraph 1.3,

3.2 £1rly Po1s11nslon. AnV provision hefeln granting less� Early Pommlon ofth0: Premises Is subje(t to and c:ondltloned upon the Preml$Ci being avaUable for such posse"lon prior to the Comtrtencement Date, Any erant of Early Poss�!lon only conveys a non-ei,:_duslYe rll}ht to oc:(upy the Premises. tf lessee totally or par1fallyoc:euplM 1ho PNlm!ses prior to the Commenc�m,e;nt Date, the obllgation to� Dase Rent shall be abated fur the period of such Eart-, Possession, All other terms of thls 1..use (lndudlng but not llmlted to the obllgarton� to Pi'/ Real Propertyla:ites and Insurance premiums and to maintain the Premises) shall � In effect during such period. Any such Early Posumlon shall not affect the Expiration Date, 3,3 Dol•V In Posseuion. lessor agrees lo use Its best commercially reasonable efforts to deliver possession of the Premises to lessee by the Commencement D.lte. If, desp\le said efforts, Lessor Is unable to deliver po$ie55lon by such date, Lestor sti;dl not be JubJttt to anyllablllty therefor, nor shah wch fullurt effect the vaHdltyof this Lease or ,hange the Dlplrat1on Date, Les� iMII I\Ot1 howt11er, be obllsated to pay Rent or perform Its other qbllgatlons untll l.e�or delivers posseuion of the Preml$11S and any period of rant abat�meftt that Lessee would oth1nwtse have en.loved shall run from the date of delivery of posseulon and conti
ilJ
nue for a period equal to what le�e would oU,erwl$e haw! enjoyed under the term, hereof, but mlnus any days of delay caused by the ac.ts or om\$.slons ol If P•"•,sloo ll not dellmed within 60 d,y,.fter tho Commencem<nt Dot•c:::,�• e,tendod under the terms of any Work Letter e,.cuted by INITIALS �
tCl 2019 AIR CRE. All Rights Reserved. Lm Edited: 2/25/2021 9:53 AM STN-27.30, Revhed 11-25-2019 P.age 2 of 16
EXHIBIT 1
City Council 26 – 4 4/19/2022
Parties, lessee ma',', at Its option, by noticn In wrlthlg within 10 days afta the end of such 60 day period, cancel this lta,e, In whkh event lhe Parties Jhall be d!sc.harsed from all obllgatlons hereunder, If such written notice Is not received by lessor within "'Id 10 day pe,lod, Le�,ee's right to cancel shi111 t1Hmlna1e. If potse�lon of t� Premlsu Is not dellvered Within 120 days afler the Commencement Date, this Lea� shall terminate unless other agreemeilU are reach.ed between leuor and Le��ee, In writing.

3.4 l.t!s$ee COmpllanc,. Let.sot shall not bit required to tender poneulon of the Premises to Le$$ee untll Lessee. complles with IU obllgatlon to provide evldene11: ol Insurance (Paragraph 8.5), Pending del\very of such evklente, Lessee $1\ilt bt required to perform all of Its obtlv,tloru 1.1nder this lern1 from and afto,rthe Start Date, Including the payment of Rent, notwithstanding Lessor's election to wllhhold p1meulon �ndlng r11:celpt of such evidence of huurance, Further, If Lene* 15 Tt!qulred to perform anv other conditions prior to or conturrent with the Start Oite, the Start Date shall OC'Cur bul les5or miy elett to wlthha!d possession until such (Onditlonsare satbfled.
4, Rent.

4.1 R.en1 Defined. All monetary obllgotfoos of Lessee to Leuor under the terms of this Lea$e (exc,ept for the See:url�y Deposit) ue deemed to be rent ("Rent"), 4,2 P1ymant, Les.see shall cause payment of Rent to be rl!�lved by Lessor ln l&wlul money of the United States, without offset or deduction (except as spe"cllkallv permitted In thls lease), on or before the day on which It b due. All monetary amounts shall be roundl!d to the nearen whole dollar. 1� the event lhat any Invoice prepared by Leu or 1$.!nauume such !nao:uracy shall not constitute a w;ilver and l.Q$sw shah be obllgated to pay the amount set forth in th!s Lease, Rent for anv per!Od during the term hereof whleh Is for hm than one full calendar month shal\ be prorated based upon the aclual number of days of said month, Payment of Rents hall be made to tenor at Its address stated herein or to such other persons or place as Lessor may from time to time deslgnale In writing. Acceptal'l(:a of a payment which It less than the amount then due shall not be a waiver of Lessor's rlshu to the balan«t of $uch Rent. rep rd less of Lessor's endotsement of any check 10 statlns, In the el/eol that any chet:k, dnift. or other Instrument of payment gtven by l.ts$ee to lessor Is dlshonortd fo1 any rearon; leuu agrees to pay to Lesser the sum of $25 In addition to any Late Chargt'l: and l1mor, at Its option, may requlre all Mure Rent be paid by cashier's check, paymenuwlll be applied lirst to accrued late charges and attorney's fees, second to accrued Interest, the11 to B;ase Rent, lnsurancl! and Real Property Taxes, and any remaining amount to any other outstand!ns charges orcos1s.

I 4.3 Auoc!atlon Fte5. Intentionally Omitted. In addition lo the euo Qont IEJftOQ sb:iill pvr fQ lesrot e:cb cnonlh ilP amount equal to iP'/ owner'5 100,;l;ill?P or c,;rndoMIPlum Sau le led or aueuod 1t1air1t Ure Arumlur hlC monies skaH be paid at tbe Ulflu time JRd IR•�• nmo maPAar,, 11:ln UM& Rani s. Sllcurlty Dtpotlt. Leuee $1\all depc»lt with �sor upon ei<ec:utlon hereof the Seturlty Oeposltas se:eurlty for leS1ee's felthful performance of Its obllgat1011s under thl1 Lease. If Lttiuee falls to pay l\tnt, or otherwise Def au tu under this laase, Lessor may use, apply or retain all or any portion of Hid 5ecurltv Deposit tof the payment of any amount already due Lessor, tor Rents whlch wlll be due In the future, and/ or to relmbune or contpens;ate LeuorfCH' any llablHty, e1Cpenst, lo» or dam3ge which Lessor m;iy suffer orlncut by roason thereof. If lessor uses or appllu all or anv portion of theSecurlt, Deposit, Lessee shall within 10 davs after written request theref-or deposit monies with Le�sor sufficient to restore said SecutltyOeposlt 10 the full amount required by this Lease. H the Base Rent lncroates during Ule term of thb Let le, l�see shall, upon written reqll1!st from lusor, dep0$.lt additional montes with Lessor $0 that ttu, total amount of the Securlly Deposit shall at ell times bear the same proport1on to the lncrea� ease Rent as tht Initial Security Ooposttbore to tM lnltlol Base Rent, Should tht Agreed U$-t be amended 10 actommodate a material change In the business of Lessee or to ;iceommodate a subleuee or eSJignee, tenor shall have the right to lncr�;ase the Security Deposit to the extent necenary, In Len or's reasonable }udgment, to account for anyln"eased wear and tear that the PremlSH mav suffer as a mult thereof, If a change in control of Lesseeotturs durlngthls I.ease andfollowlng !uch change the ftnanclal (ondltion otles!l!:e b, In lessor's reasonable Judgment,, slgnlflcanlty reduced, Lenee shall depoSll such additional monies with lessor as shall be sufficient to cause the $1!(:urlty Otposit to be at a oomme,cla\ly ,easonabht l&vel based on such chango In Hnanciat condition. Lessor shan not be required to keep the Security Depo!Jt sepa,ate from hs general actounts. Within go davs, after the expiration or termination of this lease, lessor Wall ,eturn that portion of the Seturltv Oi!pos!t not used or appk:d by Lessor. Lessor shill upon wtlttan request provide leu�e with an acwunUng showing how that porrion of thP. Security Deposit that wu not returned wasapplled, No part of the Securityl>eposlt shall be comldered to be held In trust, to bear lnlorest or to be prepayment for any monlQS to b\1 pild by lessee under thblose, THE SECURl1V D£POSIT$1-'1ALL NOT Bl USED BY LES5Et IN L1Ell OF PAYMENT OF 'THE lAST MONTH'S RENT.
�- us •.

6.1 Use. lessee shall use and occupy the Pttmlses only for the A&re.e:d Use, or Ill'{ other legal use whleh Is reasonably comp.arable thereto, and for no oth1ir purl)Ose, Lessee shill not use or permit the u.se of the Premises In a manner that ls unlawful, creates damage, wute or a nulsan�, ot that disturbs octupants of or I causesdamoae to neighboring premises or propcrtfu, Other &Rar �Jlde, 1l9Aal 1rd SfflRB ..,,.,,0911 I UHi shall Aol bep or 1Jtg1ulA \h11�mt11u 1n,., peu, aiilR1al,, bl�,. Qch, or �aptllar Ll!ssor shall not unreasonably wlthht>Td or delay ltsconsent to any written request foramadlftcat1on of the Agreed Use, so long as lhe s1ml! will not ltnpalr the structural lntegrltv aflhe Improvements on the premises or the rnechanlc:al ot electrleal systems therein, 1nd/or ls not slgnlfltllntly more burdensome to the Premises. lfltuor elects. to withhold cons.ent, Limor shall within 7 dav1, after such request give written notification of ,ame, which notice shall Include a:n �planatton of ltlsso,'sobjecttons to the change In tht Aeteed u,e,

6.2 H1.1ardous Sub5tlntes,
(a) Reportable Uses Require Con,�nt. The term "H11ardous Sulntanc•" as used In this lease shalt mean anyprodud, substance, or waste whose presence, use, manufa(ture1 dlsJ)Osal, transport.all on, or release, etther by Itself or In combination with othermate1lals eltpected to be on the PremlS@s, ls either: (I) potentially injurious to the pubUthealth, �fetv or welfare, ttu, environment or the PremlsM, llll regulated or monitored by anyaovernmontal authority, or (m) a b..ils. lor potential llabllltv of lessor to any governmental aa,ency or third party under any appl!c.able ,mute or common law theory, Ha1ardo1,1s Subst.ances shall Include, but not be limited to, hydrocatbo,u, petroleum, snollne, ;nd/or crudn ollor any products, bv•produch or frt1ctio1u thereof. ws� .$hall not ens,ae lri afl'f 11ctMty In or ol\ the PremlseJ. whlth constitutes a Reportable Use of Hazardous Sub11ances without the express ptlor written consent of Lesso, and timely compliance tat leuee's txpense) wlth allApplltabll! Requirements. "Rlltflort.lbl• Usa" stiall mean II) the lnstJllatlon or use of any above or belowgmund storaee tank, �I) the generation, pones.slon, storage, us�, transpor1atlon, ordlsposalof a Haurdow. Subs lance that requtre.s a permit from, 01 wllh respect to which a report, notice, reglslratlon or ht1$lnenplan Is required to be ttled with, any governmental authority, and/or 1111) the presence at the Preml!H of a Hazardous SubstaMe with respect to which anv Applicable Requlremerits rtqu!rei that a notice be given to persons entering or occupylnB 1he Pr1imbes or nelghbOflne properttes. Notw\thstandlna the foregoing, lessee may use any ordlmuy and customary materials reasonably required ta be uwd In tho norm�I course oft he AQfi11ad Use, <1rdlnory off11;e su-,plles {copier tonu, liquid pa,�r. slue, 11:tt,} and common hou,ehold eleanlng materlalt, so long as such ust lsln compliance with all Appllcable f\equlrements1 Is nol a Reportable Use, and does not expo�e-the Premltr:sor nelghbor!ng property to anv mearitngrul rl5k of conblmlnatton or damase or expose lessor to any llablnty therefor. In addition, te�sor may t0ndlt1on Its con�nt to any Report;ible Use upon receMne suct\addltlonal auurances as lessor reasonably deems necrn;iry to protect luelr, the public. the Premlm and/or the envttonment ag.alMt damae,e, contamination, Injury and/or UabHlly, lndudlne., but not limlted lO, the Installation (and removal on or belote Lease el(fllratlon or termination) of protectille modlfitt.tlons (such a$. concrete encasements) and/or Increasing the Seturltv Deposit. w (b) Duty to lolo1m .,.,or. If (es,ee knows, or has IOO!0nabtecaa,. �,aa!omSubst,ncehas comoio be loo11ed tn, o,, ""d" or INITIALS Ill
<O 2019AIR CRE. All Rights Reserved. U,st Edited: 2/25/20219:53 AM ITN-27.30, Revised 11·25·2019 Page 3 of 16
EXHIBIT 1
City Council 26 – 5 4/19/2022
ab01.1t the Premlres, other than a5 previous iv consented to by L&s.u;ir, Lassoe shall lmmed!ately glw written notice of ,ueh f1et to Lessor, .!Od ptovldt! Les.,.orwlth a c.opy of any report, notice, clalmor other documentation whh:h lt has concerning the presence of such Hillartlous Sub5lilnce. {e) l.4Uea Rtmedl1tion, Lessee shall not ceuse or pennlt any Haurdous Substance to be �PUied or released In, on, under, or about the Premises (inc!ud!ng through the plumb\ng or sanitary sewet svstem} and sh;il\ promptl'y, at Lessee's eiipense, comply with all Applicable Requlremtnts il\dbke all lnmtigatory and/or 1emedlal action re-ason1bly rte.om mended, whether or not formally ordered or required, for the cleanup of any contam!nat1on of, and for themaint.:inance, securltY and/or mi>nltorlng of the Premls.es or ne!ghboting properties, that wu caused or malerlal1y contributed to by Le5See, or pertaining to or Involving any Har11rdou1Suhtanc� !)(Ought onto the Premises during the term of this LeHe, byor lor Le.uee, or any third p�rty. (d) 1.aue.1 lndetMlfkatton. Len� shall 1n00mnlfy, defend and hold Le,sor, Its agents, employees, lenders and ground lessor, ii any, harmless from and against any and all loss of renu and/or damages, 1!1blllt1e,, ludgments, d1lms, &:llpenses, penatl1es, and anorneys' and tonsultants' fees .arls!ngout of or ln'iOlvlng anv Huanfous Substance. brought onto the Premlws by or for Lenee, or any third party (provided, howevlilr, that lessee shaH have no llabdltyunder this lease with respect to underground mlgradon of 1ny Hali!lrdous Sub.stance undtr the Premises hom 1dJacent properties not caused or contributed to byU!s�el. lessee1 s
obllpt1oru. ihall lnc!ude, but not b� Rmlll!:d to, the effects of any cootamlnatlon or k\jury to person, property or the env!ranmenl created or $Uffered by IJ!�, and the cost of ll\\lt11i1atton, r&moval, remediation, rutorat1on and/or abatement, ind shall survive the expiration or termination of this Lease. No ttnnlrutlon, cancellntlon or release a1niement entered Into by Ltuor ind le"e• ch all ttilease l.tssee from Its obll11tfons under this lease with rc13pe<t to H1ratdous Subt.taneu., unh1u Jp&dfleally.o aar••d by louor In writing at the- time of such airtement, (e) leuor tndemnlflc.tlon. Except uotherwlse provided In parasraph S,7, leuor and Its suee�ssorsand assle;ns shall Indemnify, defend,relmburse and hold t.ess4!e, lt.s empl01tes and lenders, harmless lrom and aaalnst anv and all env!ronmen�I damages, lntludlng the cost of remediation, whlth result from Hal.ilrdous Sub!tances wMch exht<:d on !he Premises prior to Leuee's occupancy or which are caused by the eros1 ne8l1sence orwlllful mlm,nduct of Less.or, Its agents or employee,. le$:!Or's obllgations, as and when required by theAppHcabla Requirements, shall Include, but not be llmltedto, th@ cost of lnvestie:atlon, removal, remediation, restoratjon and/or abate mint, and shall sur\'tve the e�plradon or termination of th I$ toase. (fl lnvttttiatl.on, and Rtm-edl1t1on1. Leuo, shall retain the responslblllly and pay for any lnvest<sations or remedletlon mea,sures required by governmental entitles Mvlna Jurlsdict.1on with respect to tho tl(!Stence of HaurdOlls Substances on the Prem1$Cl1 prior to Leuee's occupancy, unless suth remediation measure Is r1qulred as a result of Lenee's use (lncludlna �Alterations.", as deHned In paragraph 7.a{a) below) of the PrtMlse5, 11'1 which ev<mt Lenee shill be responstble ror ,u(h payment. Les.see shall cooperatl! fully In anv such actrvttfesat the request of Lessor, lncludtng •1�ng Lessor and Le"or's agenu to have rt!il!IQnable iKCeH to the PremlsUatreawnable times In otderto ca.rryoutleswls lnvestieatfveand remedial respom\bllit1es. (g) lessor Termlllltkm Option. If a Hamdous Sub�•nce Colldltion tsee Paniiraph 9.l(e)) occt1rs dutll'IQ th0; ttrm of thl$ lease, unless le»ee ls le sally respon.slble therefor (In Mitch ease l� shall make the lnve5tiptlon a rut remediation thereof required by the AppUtable Rl!qulreme:nts and this Lease shall continue In full fo,.ce and effect, but subject to Lessar's right$ under Paragnipfl 6.2(d) and Paragraph 13), lessor may, at Le-t!.Of'sopUon, nllher (ll lnvl!stlgate and nimedlate such HaurdouiSubslance Condition, If required, a:. soon as reuonably possible at Leuor'$ e,ipense, In which event this lease shall conttnue In full force and effect, or (ti) If tho estimated <:ost lo remtdl1te such condition acCl!eds 12 times the then mom My Bue Rent or $100,000, whichever ls greate,, give written notice to Le$$l!e, within 30 days after receipt by Leuorof lmowledge of the O(t:Urrence otsueh Haiardous Substance Condition, of Les.sor'sdeslre to terminate this Lease as of the date 60 dil-;$ followlng the date of such l'IOtlCe. In the event Lessor elettsto give a termination notice, Limee may, wltflln lOdays thereafter, give written notlte to Lti-.or ol leuee'scommltment to pay the amauntby wtilththe rost of the remediation of such Hazardous Substance Condition ocaeds an amount equal to 12 times the then monthly Base Rent or $100,000, whichever Is greatnr, Le-sseo shall provide llmor with iald funds ot gal;ltfactof'/ auur<mce thereofwtthln lO dsys following such cornmllment. ln such event, thls lease shall continue In full fu,C(Jo�nd e:lfetl, and L�sor shall proceed to make such remediation a3 soon as reasonably possible aft.er the required fund$ are available. If lenff does not give such notice and provide the required fund so, assurance thereof within the Hme l)(ovlded, this Laase .shall t'1rmlnole as of1he date sl)tclfled In lessor'$ nollte of termination.

I 6.3 L"see', comp\lanct with Applle.able Requltem�nts-, i'<Cl!Pt ac c\horulso p�o•ilch1d lrt We I tau, Les$ee shall, •tLessee's sale expense, ful!y,dlllgenlly and ln a tlmety manner, m&terlalty eomply wllh •IIApptltabla Requ1mments1 the requirements of anv 1ppllcable ftre lnsurancq underwrlter or rattns buroau, and the rl!f:ommendal1om,Qt ll!uor'$englneers and/or consultantswhkh relate In any manner 10 the Premise 1, wltllou\ rGeattl to whother uld Appll(:able Requirements are now In effeet or become effective after the Start Data Le�e shall, Within 10 days after nm1lpt of �sor's written requeit, provkle tesK1r with to pies of all permits and other d0<:uments, and otherlnformatfon evldenclng tusae'scompllance wlth any Applkabte Requirements spedHed bylesr,or, and shall Immediately upon 1ecelpl, notify Leuor In writing (withcop!e& of any documents Involved) of any lhre11tened or actual clalm, no�c-e, citation, warning, complaint or report pertaining to or lnvoMns 1ho falluro of Le�ee or the Premises lo comply wllh any Appl!cable flequl!ements. Ukewlse, Leuee shall lmmedlately give wtltten notlce to t•mor of: (I) any water damage to• the Premlses and any suspectad !llepage, pooling, ttampneu or other condition condue\ve to thi!!! production of moldi or (II) any mustlneH or other odors that might Indicate the presence of mold In the Premises. In addition, Lessee shall prQVlde copies of all refo:vant material safety data sheets (MSDSI to Lessor W\thln todays of the rncelpt of a written tequest thenifor, In addition, Lessee shall p1ovlde Lessor wllh ei;ple� of ltt.buslneu lice nut, cettlflcate of om,pancy and Jar any slMllar document within lOdays. of the receipt of a written requts.t therefor. 6,4 lnspett:km; Compile.nee, Lessor and le$$(11''.S �lender• (as deHntd In Parasraph 30) and consultantt. authorlted by Lessor shall h1we the right to enter Into Premise$ at any tfme, In the case of an emergency, and otherwlwal reasonable timuafter reuoMble notfce, for the purpo� of lnspett1n1 and/or testina the condition of !he Premises and/or for verifying compllanoo by Lessee with lhb Leat.e, lhe cost of artv such lnspeclions shall be paid by Lessor1 t1n�$s 1vlolation of Af'Jpl\cable Requirements, or a Hmrdoussub!.UOQ! Condition (see paragraph !U) IS found to exist or be- Imminent. or the: Inspection Is re<1uested or ordered by a grn,ernmental authollty. In such,case,. umee shall upon request relmbl.ll"Se le.ssor for the con of siith Inspection, so lone as suth lnspectton It. teas.onablyre:1ated to the V1olattoo or cantarnln•tlon. In. addition, l.e-sste shall provide copies ot 111 relevant materl81safetv data she.ets (MSOS) ta Lnnl)t within 10 dlV� of tht nx�lpt of a written ,equest the�for. Les.see acknowledges that any failure on lts part to allow such Inspections or letting wlll e11posa lf,ssor to risks and poter1t11\ly taute Lessor to Incur co$ts not contemplated by this Lu5tt, the t:xtent of which will be extremely difficult to a.«:erttiln. Aceordlngly, should the Lessee improperly or unreasonably !all ,. allow,uch !nspocdonsand/or les""• '"' dme� lashlon Lessee shall pay to Lessor a fee in the amount of $500,Re 9m!�eritstiall llaa11iamad"'lly ln£FUSlild,•t:wiU10.itar:i•, re�wlremar:it Nilr natlee 1a lenee1 b11 an ;tRUIURt e11wal to lO" 1f the lh&A @Hletlr:iellate R8Rt er $JOO, .... �lclltY8r Is gra;1ar fo,1ho ,�,ulr:idQr ,o l�a �u,e. The Parties asree that such fee111�fea,e IA BM11 �efll represents fair an« reasontible compensation for 1he addltlonal rlsk/t(l$1;$ tha.t Les,orwlll lncut by reaS-On of Less.ee's f11iluteto allow such Inspection and/or testfna. Such fee1R,J:4'JCO lR Q;i,e A11nt 1haU In no eveflt tonstHule a waiver of teuee"s Default or Breach with respect to such faKure nor pre-v('Ot the exerc.iie of any of the other rlghtt,and remedlu granted hei'tooder.

7. Maintenance; Repalr&i Utillty lnsta�atlons; Trade fhtturM ind Atteratlons.

7.1 Ulssee's Obllgatfo,u.

I ·
- A _ n::
(al In General. .,,�1b*J11�•�•�10µ1Wh�•�fl«row11Uh�lom,�, 0�•u•�•�n�e�r��,�•�l�l�l�C�o"Aci�•�t10f'.100jb�l�l�IC�-..,,�li�'Jn�•�•)� ... •�a4(i.lltN1�••N•�•,µc�o�m�p�U�,,.n,�•�"�'i"U1"'Ap�p�ll�caotb,t,11:�•�"l..,.u41r�9m.,..an�1�1),-, 1:U.l bllea�oncL P (Dama9Q 01 O!iltlnt'-"or:il, and .1.4 iC11n1.fam1-1atlr.>Rj1 Les.see�hall, atle ' o\e expense, keep the Premises, Utility lnstallaltons (Intended fo 0 r
_· t_

INITIALS
() 2019 AIR CRE, All Rights Reserved. Last Edited: 2/25/2021 9:53 AM PaQ:I:! 4of 16
EXHIBIT 1
City Council 26 – 6 4/19/2022
Lenee's excluslve use, no matter where locate di, and Alteratlons In good ordar, eondltton 11nd repair (whether or not the portion of the Pfef'\"\bes requlrln11 repairs, or the means of repairing the �ame, arc rcasonablv or readlty acceuible to Limee, ,nd whether or not tht need lvrsu� repairs occur� as a reu1.ll of Le�ee's use, any prior use, tht elemenu or tho:age of such portion or the Preml£esl, Including. but not limited to,all equipment or fa.c11lt1e!,Sl1Ch as pfumbln8, HVAC equipment, e!actrlcal, Ughtlng fac!litles, ballets, pressura ve��e�, fir@ prot@clton syst@m, tlMtu�, �II� (lntulorand extttior), fountbtlons, celllnss, roof,, roof d1a!nagt �vst,ms, 11oors, windows, doors, plate glau, skyllghts, land$Caplng. driveways, parking lots, fe11ce,, re1alnl11g walls, slens, sidewalks a11d parkways located In, on, or adJottnt to the Premises. Lenee, In ketplng the Premises In good order, condllton and repair, shall �erci.se and p13rfurm good mal11tem1Rce pr.actloot, �dffr..allvlncludlng the procureml!nt and malnten,mce of thl3 .serv\ce cootraeu reciulred by Parag�ph 7,l(b) below, les!e0's obllgations shall Include reslorattons, replactmenU ot rnn11wal5 when net:eSs;'ll"f' to keep lht! Premises and all lmprovemerlls the-re:on or ■ part thtreof In e.ood order, condition and $tale of r1ipalr, Lessee $hall, durlne the term ol th!� Lu."', koi,p the (l)(te,lor apptaranco of the Bulldlna In a fin I-class condition {Including, e,(I, graffiti removal! conslntot with the e).terlor appearance of other similar facllltlo-sof comparable ese and site ln thft 11ldnltv, lnclud!Rg. when net1»sary, the e11:wlor r1!palnttns or the Bulldlng, (bl Service l:ontm:tt. Lus� shalt, at lllueii's sole expense, procure and maintain contracts,Wlth copies to Lessor, ln customary rormand substance for, and with contractOrs speclallllng and experienced 111 the malnten.ince of the following equipment and Improvements, tf ariy, If and when hmalled on the·Preml1es: (ll HVACequlpment, {n)boller, end pressure vessels, (Ht) fire l!.lltlngulshh1S svstems, Including nre alarm and/or smoke detectl011, (ht) landm1plng and Irrigation .syslems, M roof coverlni:tand drains, and Ml tfarltteu. Ho�r, Umor reseNQs the right, upon notice 10 L�uee, to procure and mal11taln any or all of such iet11lca contuctt, and Les�e shall relmbursi! Lessor, upon demand, for the cost thtreof. le) Fallure lO Perform. If Le$«ie fall$ to perform Lcss.ee1 s obllaatlons under this Paragraph 7.1, leuor mav enter upon the Premhts after 10days' prior wrltltn not!oo to Ltuee {except In the me of an emers�mcy, In whkhcas.e- no notice .shall be requlredt, perform such obligations on Leisee's behalf, and put the Premises In aood order, condldon and repair, and leSl� Shill promptlV pay to LeSs.or a sum equal to 115" of the co" thetl!of, Id) Replacem�nt, Subject to les.see'sl11dem11ttlcat1on of Le nor a.s �et forth In Paragraph 8.7 below, a11d without reUevJ11g Lessee of llablUty molting from Ltssee's failure to exercise and perform good mal11tenanc.e pr1ctlce:1, If an Item described ln Parigraph 7 ,1(b) can11ot � repaired other thin at a cost which Is In 1?KC2S1 of 50% of the cost of rep\aclng such Item, then such Item shall be replaced by Le:.ssor, and the cost thereof shall be prorated betwe«!i'I the Parties ind Lessee $hall 11n\v be obligated to p.ay, each month during the remainder of the te-rm of this U!!.ise or anvv.tanslon thertof, on the dilte on which Que Rent 1$ due, ;l1'I amount equ!'I to !he product ofmull1plylna, the cost of suth roplacemen1 bya fraction, the nume,a10, ofwhlch ls one, and the denominator of which ls 144 (I.e. 1/144thof the cost per month). Lessee shall pav Interest on the u11amorl1ted balance but may prep&v IU oblleatlon at aov time.

I 7.2 l1mor's Obllg■tlons. Sublett to the proultlonsof emcraphs 2 2 (Cnndltkln), 2 3 (ComplfanM), 9(Damage crOedmctton) and 14(Condemnation), !tis lntended bV the Parties hereto that Ulssor have no obligation, In any mannGr whaUOever, to repair and maintain the Prembes, or theequlpmet1l theroln, all of whlth obllgatlons are Lntend�d to be that of the ltsu;!e. It Is the Intention of the Parties that the terms of this lei1$t-sovern the respective obllptions of the Partle.$ es to malRtenc1nce and repair of tM Praml1es.

7.3 Utinty lnttall■tlona; Tr;id• Fixture,; Altet'lt1ons, (al Oifflnldons, The term "UHllty ll'lst1Httlon1• rofeu to all floor and window toverlna;s, air and/or vacuum lines, power panels, electrkal dlttrlbudon, security and lire protection sy,tems, communication cabllng, !lghtlng fl11tures, HVAC equipment, ptumbhlfl, and fencing In or on the Pre111lses, The term ''Trade Fl�ture.s• .\hall mean umee.'s machinery and equipment th.al can be removed w�hout dolng materlal damage to tho Premises. The term "Altimitlons� shall mean any modlf!catlon of the lmprovemenu, other than Utility lnsta\latlons or Tr.ide Fixtures, whether by addition Of deletion. �Leisee OWned Alterat\on1and/or Utility lnm\latlqns• are defined as. Alterat1011sand/orUttllty lnstaUatlon.s made by Lessee that are not vet owned br Lessorputsuant 10 Paraa,niph 7,<ll(lil), {b) Consent.. lessee shall not make any Alterattons or UtHily lnstallattonsto the Premises without llmo,'s prior written con$tnt. Les� may, however, make non.strutturat Alterattons or Utlllty lnstallatlons to lhe Interior of the Premlsel (e11:tludlng the roof) wi.Mut such conse:nt but upon notice to Letsor, as long as thi!y are not visible from the outside, do not lnvolvt puncturing, reilrx:atlng or removing lhe toot or any e,chtlng walls, wlU oot affect the e\ettr!c;il, plumb Int, HVAC, and/or Of@ safety system,, do not tr188e, the requirement for addltlonal mot1\flcat1ons1nd/or Improvements to the Preml"s resulttng fromsAppllcable Requlrements, st.1th as compliance With Title 24, Jnd tile cumulative cost thereof during lhU lease ase11terided does not exceed a sum equal to·3·monlh's a.i,e Rent In the BSBte.Bilte or a svm equal to one monlh's ease Rent ln any one year. Notwlthstandlf\8 the foregoing. Lem�� Shall not tni1tll or permit any roof penetrsttons and/or Inn.a.II anything on the roof without the-prior written approval of lessor, u=nor may, iU a precondition to granting such approval, require Lu�q to Utlllte a tontr.ictor cho.wn and/or approved by lessor. Anv Alterations or Utility Installations that Lu see shall desire to make- and whlth requlff! the eomentol the Lessor shall be pnuented to Leuor In wrltton formw:lth detalled plans. Co111ant shall ba dMmed condlttoni!d upon Lessee's: (0 acqui"lng i111 applicable governme11tal permits, (11) furnishing Lessor with copies of both the permits and the plans .inds�dfluttuns prior to tommenci,ment ol the work, and (Ill) compliance with all oondlttons ol ultl per ml ts and other Applt�ble AeqUlrtments ln a prompt and expeditious manner, AnyA11efit1ons or Uttllty lnstallat1oru..shall be p«fotmed In a worltma111\ke manner with gaod and sufftc.lent materials. Us see shall promptly upon completion furnish lessor with as-bullt plans and speclllcatloR1. For work which co,ts an amount In e11Cus of one month's Base Rent, Lessor mavcondltlon IU,consent upon lessee providing a Hen and completton bood In an amount equal to 1S°" of the estimated cost of suth Alteratfon or Ut11ltv fnstallatlon a11d/or upon lessee's posting an addlU011al Security oepo$.lt with Lessor. lcl Liens: Bonds. !Assee shall pay, whe11 due, all claims for labor or materials furnished 01 alleged to have blien furnished to or ror Lrnee al or for uH on the Premises, which claims are or mav be secured by any mechanic', or materlalmen's lien agalnst the P,emlse1 or any Interest th'1reln, te�e shall give les,or not len than 10 days no lice prior to the commencement of any work In, on or a boot the Premises, a11d Lessor shaU hava the rlaht to post notices of oon•responslblllty, If Lessee lhall contest the valld!tyofany such Uen, dalm or dem.ind, then Lessei shall, at Its sole eitp(!nse defend and protect llself, lessor and the Prem1$es agalns.t the same and shall pay and satisfy any such atlvertt Judgment that may be rendered thereon before the enfortement thereof, If lessor shall require, lessee shall furnish a ,urew bond ln an amount equal to 150"- of the amount of such contested llen, dalmordemand, Indemnifying leuor ag.i\.nst liabllltyfo, the1ame, If lessor eled!i. to parttcip.ate In any such action, Lessee shall pay Les.\or's attorn�s• fees. and cost,.

7.41 OwnerthlPl R1;1mcva11 sumnd�r; and Rt1tor1t\on.
{a) owneNhlp, Subject to Lessor's fight to r11qvlrt fl?:mov•I or olec, ownership as hereinafter provided, .il\Alteratfonsand Ul1lltyl11stall;atlons made by tmee shall be the property of Le·nea, but com.lde,ed a part of the Promises. Lesior mav, at any time, elect lnwrltlng to be 1he owner of iill or any specified part ol the Lessee Owned A\tefQtlons a11d Ut1llty ln�taHatlons., Unless otherwise Instructed �r p.itag<aph 7.4lbl hereof,all lesseeOwned Alle1a.tloM and Utt11tv Installations shall, at the elCJ)lratto11 or termination of this Lea«!, become the prOJ'ertv ofLeuor and be surrendered by Lessee with the Premises, (b) Removn1. 0y delivery to Lessee of "Mitten notice from Lessor Mt earlier than 90 a11d not later than 30 days prior to the end of the term of this lease, Lessor mav requirl!-that ilny or al1 leS$e,e Owned AlteraNoni or Utrlltyh'lstallation5 be remo\11:'!d hy the e11p!ratlon or t@tmlnation of thls least, lessor May requ]rQ the removal at any time of all or any part of any Leuee OwMd A.Iterations or Ut1.l1ty Installation! made without the re:qulted c.on:1ent. (cl Su,rtnd•tJ R.slorttfon. Le-nee shall surrtnder the Premises by the E11pkalton Oate or anv earlier termination date, with all of the lmprovemenu, parts and surfaces thereof broom clean and free of debris, :ir.cl In good operating order, condition and state of nip.air, ordlniuy wear and tear exc<1pted. "Ordinary wear and tear" shall not \nclucle arr{ damage 01 deterlol.ltlan that would have been preverited bv good malntenanee practice. Notwithstanding the foregoing and the provisions of Paragraph 7,l(a), If the Leuee occupies the Preml.se.s. for 12 months or !e:i.,, then �essee shall surrender the PremlSEs ln the same cond!tlon u delivered

INITIALS
© 2019 AIR CRE, All Rights Reserved,
STN•27,30, Rovlsed 11·25•2019
Last Edited: 2/2S/2021 9:Sa AM
Page Sof 16
EXHIBIT 1
City Council 26 – 7 4/19/2022
to Lessee on the Start Date wnh NO allowance for ordinary wear and tear. Les.see shall repair any d,rm,ga a,eas1onod by the lnnallatlon, maintenance or remove! of Trade Fixtures, Lessee owned Alterations and/or Utility lnstallatioos, h.unlshlnes, ,1nd e:qulpmont DS well u the removal of a11Y storage tank lnstwlled byor fo1 Lessee, lessee shall alio remove from the Premtuu any and all Hazardous Substances brought onto the Premlsl!! byor for Lessee, or anylhlrd party (eKeept Haiardous Sulxtaru:es which were deposhed vla unde11round migration fiom ma, out51d eof the Premises) to tho level $peclfled In Applicable Aequlremontt Trade F1Ktures shall remain the propertv ofLesJee and Jhatl b-e removed b't' Le$Se4, Any personal property of le$$ee n.,t removed on or before lhe Expiration Datet or any earlier 1ermlnat1on date shall be dterned to have been abandoned by Leme and rnav be disposed of or retained by lessor as l.ts$or may desire. The failure b'{ Lessee to llmelyvaute lhe Prnmlses pum1ant to this Paragraph 7,4(c) wllhout the l!Kprrm wtlt1en consent oflessor sh11lcorutttute a holdavet under the prO\l\slons.of Paragraph 26 below,
8, lnturonci: lndtmnlty,

8.1 P11ym9nt For Insurance. Lemm shall pay for all Insurance r�ulred under Paragraph 8 el';cept to the el(tent oftM cos.I attrlbulable to llablllty lnsutante cattled by Lesw undet Pan graph B.l{b) In 8!(('(!$sof $2,000,000 per occurrence-, Premiums for policy periods commencing prior to or elltendin& beyond the lease t11rm sh.ill b& p,or.ilod to ccnespond 10. lhe Lease term. Payment 1hall be made by Lessee to tes_sor within 10 dlys following receipt ol an invoice, 8,2 UobHlty lnsur•n1;e,
(a) Carried by teuto, Lessee shall obtain and keep In forco a Comrru:r<:lal General llabtllty pollcyof Insurance protectfng Lessee and Lessor as an additional Insured aaalnstdalms for bod Uy Injury, personal Injury and pro�ert.y damage based upoo or art�ns out of the ownershlJ!, use, O(cupanty or maintenance of the Prtmhes and all areas app11rter1ant then)to. Such ln�r.ince shall be on an occurrente basis providing single flmlt coverese In an amount not leu than $1,000,000 per occurrence with an annual aggregate of not h1u than $2,000,000. husee shaU add le.ssor u an addltlonal Insured by means of an endor1ement ai least n broad as the lm,urence Service Organlut1on's 11Addttlonal lnsured-Managm or tenors of Pfflmlses" £ndonement. TIH! pollcy shall not contain any lntra•tnsu!'ed l!ll(l\lslons ai hl:!tweon Insured persons or organltatkms, but �ha!l lodude coverage for llablllty au urned under lhls tease as an "Insured eontm:t" for the perfOfmance of �ssee's Indemnity obligations under this Lease, The llmlts of said h1surance shall not, how.wet, llmlt the llablllty of Lessee nor relieve Leuee of any obllgalion hereunder.

Lessee shall provide an endorsement on Its ll1bllltypo1ley{tes) which prov kl es thot \ts Insurance shall 00 primary to and not conlr\butol)l wllh any slrnllillt ln1umnu carried by Lessor, whose lnsursn.::e shall bo coosldered ellcess Insurance ootv. (b) Carried by Leuor. Lessor shall maintain llabllltylnsurance asducrlbed ln Paraaraph 8.l(al, lnaddltfon to, and not in lleQ of, the fn$urance reqQlred to be maintained by lessee. Le,see shall, to the extent available, -lltl.t be named as an addlt!ona! Insured !herein, The City of Santa Ana, and its officers, employees, agent and representatives, shall to the extent no cost is incurred with respect thereto and to the extent reasonably available to Lessor shall be additional insureds with respect to any general llabiHty or auto liability policy obtained by Lessor, by endorsement, and all such insurance policies shall be primary and non-contributory. Lessor shall send certificates of such insurance to Lessee to its Risk Management Division, 4th Floor, 20 Civic Center Plaza, Santa Ana 92701.

8.3 Property ln,uranca - Bulldlnc, lmprow,menh •nd Renttil Value. (1) Bull dins and lmprowment.s, The Insuring P4rtY shall obtain and keep In force a polley or po11das ln the name of Lessor, with km payable to Lessor, ;inv ground,leuor, and to any Lender Insuring loss ot damage to thil! Premlses. The amount of such Insurance shall be equal to the full lnsurahhi replacement cost ol 1he Preml�s. ,1s the same shall exlsl from t1me to lime, or the amounl reqolntd by any lender, but ln no event more than tk0: comm@rctallv raa\onable and a\lall&ble lnrnrablt value lhl!reof. LeueeOwned Alteratlon5 and Utility Installations, Trade FIKlums,and Leue11'1 pa,sonal property shall be IMtued by Les,e:e not by Le$Sot, If lhe coverage ls av'illable and commerdally appropriate, such polity or polklas shall Insure against all risks of directphyslul loss or damage \eK(ept the perils of flood and/or earthquake unless requlred by a L11ndetL Including cove-rage for debris rtmoval and the enforcement of any Appllcable Requirements requiring the upgrading, demolll1on, ,econstruttlon ot replacement ol any portion ol the Ptemlses as the result of a covered toss, Said policy or pollclas shall also conta,h, an agreed va1Ui1Uon provision In Heu of anycolnsur&nce cl1use, waiver of subrogation, and 1nf11t1on euatd protection causing an lncrea� In the annual property 1nsu111nce coverage amount bv a facto, of not less than the ad}usted U.S. Department of labot Consumer Price lndeK for All Urban Consumers for the city nearft$t to where thl? Prem)sti,s are loi;ated, IF such Insurance cove1age has a deductfble clause, the deductible amount shall not exceed $5,000 per owmence, and teuea 1haU be II able far such dedutlihle amount In the event 0f an Insured lo».
lb) Rent41 Valut. TIie insuring Party $hall ob lain and keep In force a policy or pallcltlS In the name of tenor w!th loss payable to Lesor and any Lender, Insuring the loss of the full Rent for one year with �n extoridod porlod of Indemnity for en addltlon1\ U!Odays ("Rent;il Value ln!urance�). Said Insurance shall contain c1n agreed valuat1onprov\5Jon In neuof anycolniurance clilluse, and 1he amountof (WetiQe shall be adJuJ!ed annualJy to:rnfl!Ct tht projected Rent otherwli-e paya ble by Lessee, for the next 12 month period. les,ee !.hall be liable. for a!\ydeduct1ble amount 1n the evMtof such lo!S, (c) Ad}ln::ant Premise,, If the PrnmlseJ are part of a larger bul!dlng, orof a group of buildings owned by le1SOr which are ad/ic@nt to the Premises, the lessee shall p,11 lor any lnuease In the premiums for the property ln�uranc:e of such building ot bulldlng5 Jf said Increase Is ea used by Ulssea's acts, omlss\ont, u� or occupancy of the Premises,
a4 tes,ee's Propertvi autlneu Interruption lnsurance: Worke,•• Compensation lnsuranc.., (a) Property Damage, leS!:ee shall obtain and maintain lnsur-.nc! (overage on aUof Limte's personal property, Tr.Ide Fhtture$, and Lessee owned Alterations and Utility Installations, Su.::h lnsu1an� ,hall be foll repl,1cement cost c.ove�gewlth .i d�ductlble of not to el!ceed $1,000 per ottur�ncl!, The proceeds from any such lt1Suranei ,h.ill be used bv lessee for the replacement of persoMI proptrty, Trade FIKtum and L-essee Owned Alterations and Utilttv Installations, {b) Business Interruption, Lessee Jhallobtatn and malnuln loss of Income and e:>!lra el!pense lnsutenceln amounts as wlll reimburse Lessee for direct or Indirect loss cf earnings attributable lo all perlls eommonty Insured ag�lnst by prudent lauees ln the business of lessee or attrlbutable to pre\lentlon of access to the Ptemlsesas a result ot suchperlls,
(c} Work91''$ Compenmlon IMuninct. lessee shall obtain and maintain Work-et's Compens.atlon ln,oran(e In such amount u may be rttqulred by l\pplkeble Requirements.. Such policy shill Include a 'Walv<:!t of Subrog11tl.on' e11dors11ment. Lessee shall pro-.,lde Lessor with a copy of such endorsement ilong wlth the certificate of Insurance or copy of lhe policy 11qulr11d by paragraph 8.5. (d) No fl:eprenntatlon of Adequate: Coverage. Leuor makes no represenlatlon that the llmltsor fornu of covtrage of Insurance SPi!clfled herein are adequat<! to cover Lessee's propertv, bullnen operatloni or obllgalions under lhls Leas.e.

8.5 !morante Pollcics, lnsurani:e required herein Shall be by companies maintaining dUl'ln& the pollcyterm a "General Pollcyholders Ratlng" of at least fl., VII, as $el
�h
forth In the mc»t cl!Nent l$Su@ -0l "8e1t's lnwran<:e Gulde", or such other rattng Hmaybe required by a t..endet. lesseashr.in not do or p�rrnlt to be done l<h l""'lldate!!he requiN>d ln,uranc• poliolu, L.,se• shall, prior Jo lh• Start Date, dellver to '-"""' <erUfled <•�•• of pollcles Of 1uoh lnour,nce or INITIALS �
© 2019 AIR C11£, All R;ght, Res,rved, Last Edited: 2/25/2021 9:53AM STN-21.30, Revised 11•25-2019 Pa8e 6 l;)f 16
EXHIBIT 1
City Council 26 – 8 4/19/2022
eertiHc:ateswlth copies of the required endors-em,nts e,;\dendng the eklslence and amounts of the 1equlred Insurance, Nosuth policy shall be cance1able or .cubJec:t 10 modtflc:a!1on except after 30davs prior written notice to Lessor. Lessee shall, at least lOdavs pr lat to thl! explratlon of sueh poltcles, furnish LQuor with Q11Jdenc:e of renewals or �insurance binders" evld�r(-lng renewal thereof, or Le,s:or may lnc,east his llablllty ln,urani;e cover.ige and charge the cost thereof to Ussce, which �mount shaH bo payabl0: by Lessee to Lessor upon demand. Sud! polleles 1haU be for a wmof at least one vtar, or the h!nsth of lhe remalnlng term of thl.s Lease, whichever ls less. 11 either Party Jhall fall to procure and maintain the Insurance retiulred to be c.irrted by It, the other Partv may, but shall not be requlre-d to, procure and maintain tru! same.
8,6 Waiver ofSubro11tion. Wtthout affecting any other rlghUor remedlel, Leme and LessOf'each hereby relene and rene11e the other, and waive thclrentlrE rlghl to re,ovtH damaMS .igalnst tM other, for loss of or damage to IB property arising out ofor hKldentto tha perlb req_ulred to be Insured aplnst: he�ln. The effect of such releases and waivers ls not llmtled by the amount of lnwrance wried or required, or by any deductibles app1kable hemo. Thi Pirt1e.s agrte to have th air respectll/i! propenvdamage tosut.1nte carriers waive any right tQ !1.lbrog..itlcn that such tompanle.s may have against Lessor or 1.essae1 u the c;is(! may be, so long as the Insurance ls not llt'lalldated thQreby. , .. 8,7 Indemnity, EKeept forle.uor's gro:1,snegllg_enc.e or w!llful mlso:induct. le"ee shii11l lndem111ry, protect, defend and hold harmless the Premls�, Lessor and Its agents, Leuor's ma,ter or ground lessori partnen and lenders, from and against any and all dalms, rossor rents and/or damages, Hens, ludgmems, penaltles, attorneys.' and coltiultants' fees, expenses and/or llabl!lttes arl$lng out of, lm,olvh'IBi or In connectfon with, a areaeh of the Lease by LesM!e and/or the use and/or OtXupancy of the Premises and/or Pto/ect by Lessee and/or by Lessee's employees, contractors or !nvttees, If aBy action or proceeding Is brought against Leisor by reason of any or lhe forego/n11 matters, Lessee shill ul)On notice de lend the same at Lessee's ei(pense by counsel reasonably $8t1sfartory to Lessor and Lessor shall cooperate with Lessee ln such defense, Lessor need nol have ftrst paid any such c:l1lm ln order to be defended Of lndemnlfttd. 9,8 bempdon ot tenor and IU AgQntJ ll"om Uabl!lty, Notwlthstandln8 the negllgence or breach of thl:. t.eas.e by l.e.uor or hugena. neither Leuor nor Its agents shill II be Uabl'I under any drcumstances for. (I) In Jury or damage to the person Of gor>ds, wares, mm:hilndlse or other propeny of le.nee, LM\ee's empl(Jyees, contract\1rs, !nvltees, customers, or any olher person In or about lhe Premises, whether such damage or \nju,y ls e;iused byor ro.sult$ from fire, s\eam, electtlcity, gas, water or rain, lntloot air quality, the presence ol maltl or from the bnukage, leakage, obstruction or other deh!cts of pipes, flre sprinklers, wltes, appliances, plumblng, !WAC or Oght1ng fh1tures, or from any otlw.r cause, whether the said lnJury or damage te�ult, from tondltlons arising upon the Premises or upon other Portions of the bulldlng of whlth th.a Premlm are a part, or from other sources or places, Ill) any damagesarblng from anv ad or neglect of any other tenant of Leuor or from th fallureof lessor or IU agents to enforce the pt!l"1\slOn$ of any other lease In tha Pro)eci:, or 1111) Injury to t.es.�1 s buSlnes.s or for artt loss.of Income or profit thett1ftom. instead, II ls intend ad that t.es�•s sole re,our:i.e ln the e'llt.nt of -,;uth damages or ln)urv be to l'llt a tlelm on the lruurantl!l pallcy(les) that Umee Is re:qul�d to m111lntaln pursu.int to the provlllons of pa,a,sraph 8, 8,9 hllure to Provide lnsurantt. lei see acknowledges that any failure on Its pan to obUln or maintain the Insurance required herein will expo� Leu or to risk$ and potentla11v cause leuor to Incur cosu not contemplated by this Lease, the extent of whl,h wlll be extremely dlfftcutt to mertaln. Aetordlngly, for any month or portion thereof that Lessee doe5 not malntalo the required Insurance and/or doe.s not provide �or with the rt'qulred blndors or certificates evidencing tha "''""''" ,1 '"• 1eqw,ed '"'"""' after notice and resaonable opportunity to cure, Lessee shall pay to Lessor a fee of $500, U1e litue Renl sRallbe 1ul11malciull•1 IAcioa,ed, wlthQut;nv,aq1.1h�omai'I, for n11t1,o t9 l.om1e> by an umn1nl 11q11al w UJN. ,of"'o U:itn QHIUi11e litu,e Rent o,�.1.001 •AhlGl:1e •er Is BFGillllr, Tilepntlesagree th;1tsuch fee lnc11me In llmi �eM represents fa:lrand teasonable compensotlon for the additional rlsk/coJt.s that Lessor will Incur by reason of Lessee's tallure to maintain the required lnsurante, Sueh Increase In Base Rent shall In no went constitute a w�Ner otleuee':s Default or 8reach with respect to the hllure 10 rNlnt.aln such lnsuranc.e, prevent the exerciu• of any of theolher rights and remedies sr.intfld hatt1unde,; nor r411law Lossee of its obl\g;ltion to maintain the Insurance speciRed in this Lease. 9, Damage or Oestructton,
9,1 Deflnllions.
!aJ �PtemiMs Partial Oam•1•� .shall me-an damage or destruction to the lmf)fovtmerruo-n the Premlset, othtr than Lessee Owntd Alterations and Vtlllty lnstalhntons, wt,lth can reasonably be re�lred ln G months or len from the dolte of the damage or destruction. Lessor .shall nottfy lessee In writing within 30 days from the date of the damage or deuructlon as to whether or not the damage ls Partial or Tolal. {bl "PrarnlsesTot1t Destruetlon" Shall mean damage or destruction to the Premlses1 other than lessee Owned Alteratlons and Ut1Uty Installations and Trade FiJttures, whlch cannot reasonably be repaired lo 6 months-or IQ$:s rrom the date of the damage or des\rU(tlon. Lessor shall notify lessee In writing within 30 dav, from the date of the damage ordestructloti as lO whether or not the damage b Partlil c,r Toh I.

It) "Insured Loss� shall mean demago or destruction to lmprovement1i on tht Pr1im1.S.es, othiltr than le:ssee Owned Alterations and Utility Installations and Trade flmlm, which wa, c:aused byan event required tobe co!fflred by the lnsuranui duulbed In hnigraph 8.3(a), lrre,pettivtol anydedui:ttble amounts ot w.eragc llmlts Involved,
td) "llepl•cement Costw shall mean the cost to repair or rebulld the Improvements owned by lessor at the time of the occurrence to their condition G)llstlng lmmedfately prior thereto, Jnctudlng demolition, debris removal Md upgrading required by tM o,,eratfon of AppUable Requlremenu, and without deductf(ln klrdepr�l�tlon,
(E!) 11
Hamdous Sub5tance Condltlon"shaH mean the occurrence or dlscovety ofiil tondltlon lnvoMng thQ p"uenco of, ora oonlamlnation by, a HaiudoosSubslance, In, on, or under the Premise$ which requires restorntfon. 9,2 P•rtlal Otmage: � ln1uted LOU, If a Preml�$ Partlal Oamage thatls an tn1ured Lossoccun, then U!:ssot shall at lessor's expense, repalrsuch damage (but no1 Unee's Tn1de Fixtures or t.eueeOwned Alterations and Utlllty lmtalla"ons) as soon ;u reasonablv posslblt' and this Lease shall c;ontlnue In full rorce and effect; provided, however, that lessee shall, at Lessor's e1e,t1on1 make the repalf of any damage ot destluctlon the total cost to repair of w.tlkh Is $10,000or leis, and, In such even11 U!ssor $hall make any appUcable insuranee proceeds av11Dab!e to les$@e on a reasonable basli for that purpose, NolW!thstandlng the foregoing, If the requtred 1ns1.1rante was not In forte or the Insurance proceeds are not sufficient to effect such rep111lr, the Insuring Party shall promptly contribute the shortage In proceeds (em�pt as to lhe deduttihl@ whlchls leisee'sruponslb!llty) as �nd when requlrod to compl1t11 uld repairs. 1n the e,,enl, howove,, su.th shortage111t1S due lo the fact that. by reason of the unique mtum of the Improvements, full repl;icemenl cost l11sunnce cover1ge wu not tommercla\ly rHson,ble and ava1lable, Leuor shall have no obllgatlon to p;ry fOf the shortage In Insurance proceeds or to fully restore the unique aspects of the Premises unlt$S Lessee provides Less.or with the funds to cover same, or adequate assurance thereof, within to days rol!owlng receipt of written not1ce of wch shortage and requett therefor. tf Leuor receive� said funds or adequale mu ranee thereof within said 10 da'i' period, the (!arty respo,nlble for making the repairs ihall complet�t.Mm as soon as reasonablv pos$1ble and this Lease shaU remain In full force and effect, If such funds or assuran,e are not retell/Cd, lessor may M\Jertheless elect by written notice to le Hee wllhln lOdays the�after to: (II make such re:rtonrtlon and repair H ls cornmerclallv reasonable with lessor p.iyln11 any shortasa ln p,ocq,eds._ In whlth ate this leaSG 1h;1,II roimln In full forco and effect, "r {II} have this Li:iate termln.ite 30 days thereafter, Lessee shall not be entttled to relmbursemt'nt of any fund!, contributed by lessee to rep&lr any such damage or destruction, Preml56 Partial Damage due to fiood or Hrthquake ;hall be subJec:t t.Q Paragraph 9.3, notwlthstandln8 that there mEry be some Insurance �ut lhe net proceedsol ,ny such Insurance shall be made a,•Jab� for Jh& rep.,, If made by either Party.

INITIALS �
<0 2019 AIR CitE. All Rights Reserved, last Edited: 2/25/2021 9:53 AM STN-27.30, Revised 11-25-2019 Page 7 of 16
EXHIBIT 1
City Council 26 – 9 4/19/2022

9.3 Pal'li1I 011mari• · Unln,1.1red Lou, !fa Premises Part1al Dam1Re lhat ls Mt 1n lnswed Lou occurs, un1e.ss caused by a nes11s,ntorwlllful aet of Leuet Jin which a'll!lnt Leu� ,hall make the repe1n et Lenee's expense), L,mor may eltheri (I) repair .such damage n soon as reasonably posslb\e at Lessor's b.pense, In which event this Lease shall coot1nue In full force 11nd effect, or Ill) terminate 1h\s Lea� by gl...tngwr\lten notice to Les$<!e within 30 days after receipt by li!!ss.or of knowledge or the 0<:currence of .sueh damage, Such termltiatfon $hall be effective 60 days fo!lowlng the date of such notice. In the event Lessor 1:1tecu to t�mlnate thl5 lease, Les$ee man have the right within 10 d� after tect!lpt of the termlnatton nottce to glvec written nottce to lessor of Les£11e's commitment to pay for the repair of such damage without �lmbursement from Lessor. Le!�e shalt provide le�sor with said ful\dS or satlsbctory a»urince thereof within 30 days afte, mak!rtB such commitment. In suth event this U!ase shaU continue fn full force and effffl, and LeS$Or shall proceed to make such repairs as soon as reasonably posstb!e atter the required fund$ are a�ilabJQ. IF �ssee does not make tho required tommltment, this lease shall terminate as of the date specU1ed In the termination notice. 9,4 Total Oe,tructlon, Notwlthst11:ndlng1nv other provision hereof, If a ?remlsas tout Destruction occuu, this Leue $hall terminate 60days followll'IB 1uch Destrucllon. 1rthe damage <1rdestrucllon was caused by the gross negUgenc1:1 or willful misconduct of Lessee, Lessor !ihaU have the right to re-co111r Ulnor1 s dam�ges
from Lessee, except as provided in Pafllgraph 8.6.

9.S Dam•1e Near End of Term. If at any time during the last 6.months of thlJ leue there � damage for whlch the cost to repair exceeds one month's Base Aent, whether or not an Insured Lou, U!ssor may terminate this leue effective 60 days foll owing the date of occurrence of such damage by giving a written termination notice to luue within 30 days after the date ,of occurrence of such d11mage, Notwithstanding the lortgolne:, Ir Lenee at that time hn an eMerc\sable option lo e)(lend thls lcil$e or lo purchase the Premise$, lheo le!.See may plt!Sorve this. Lease bv, (a) e,iercls!ng such option and (bl pro11ldlng le.ssorwlth any short.tse In Insurance proceed$ (or adequate .euurance thereof) needed to make u,e repairs on or before the earlier of {I) the date which Is 10 d1y.s aftet Lessee:'s receipt of Lessor's written notice purporting to terminate: this Lease, or Ill) the day prior to the date upon which such option e)(p\m.s. If Lessoa dul'f QQrcim. tuch Optton during such period and provides �uorwlth hmds (or adequate auurantethereof} to oovor any $hortage1n Insurance proceeds, t.euor sh.Ill, at Lesror'scommettlally reasonable eicpense, repair such damage as soon as reasonably polilble and thls Lease !han conlfnua In fuB force and effect, lfles,ee falls toeicercbe ,uch option and pro'tllde such funds or assurance durlna such �od, thtn this lAa� shall \ermlnate on the date J�clfled In the terml11at1on notice and U!ssee's option shall be elrtlngulshed.
9,6 Abatement of 11.ent; l.euu't fttmedle1,
(a) Abatement. In !he Mnt of Preml5-es Partial Damage or Premises Total Destruction or a Hazartlous Substtinte Co.ndlUon for which U!ssee I! not responsible under this. Lea$e1 the Rent payable by lauee for the period required for the repair, remediation or r�torat1on of weh damagt dull be al»tGd ln proportion to the degree \0 which Lessee's use of the Premises l.s Impaired, bu1 not 10 e�cel!d the procead.s recalved froll'I the P.ental value lm.urance. All other obllgatlons of Lessee hereunder thall be performed by lem!a, and Le$tor shan have no bblrityfor 1ny tueh damaee, destruction, ,emedlat1on, rtpalr or re11orat1on el!'t:ept as provided her11ln.
lb) Remedlu. If Lessor lsobUgnted to re pal, or mtore the Premises and does not tommente, In a n1bstan"al and meanlngful way, such repair o, reitoratton within 90 days efter such obllptlo.n shan eccru-e, Le.ssee mav, at anyttme prlorto the commencement of such repair or te1tor."on, 11Jve written notice to Lessor and to any lende:rs. of which U!ssee hn actual notice, oflesse-e'selectton lo terminate this Lene on a date not hm than tiOday,s followlng the giving of such not!te, If lessee glvessuch nolice and such re�lror tla't.torat!on ls not commwed within 30dav$thereaftar, thlsleuo shallt11rmlnn11 as ofth11 date specified lnsa!d notice. If the repair or rutoratlon bcommenced within such 30 days, thb Laase shall continue In full foltt and Gffett, �commenee• shill mt:an either the unconditional authorh:at1on ofthe preparation of the- requlmd plans,. or the b11glnnlng of tho actual work on the Ptemlsas, whichever first occurs.

9.7 Termination; Advance Payments. Upon term1nat1onof this Lease pursuatlt to P�111grijph G.2(&) or Paragraph 9, an equitable ,i:djustment ,hall be made concerning advance a�e Rent and anv other advance payments made; by Lessee to Leuor. leS5or shall, ln addition, re tum to lessee sc much of lessee1 s Security
Oepo$lt es hes not been, or Is nr,\ then n:qulred tt> be, used by teuor. lO, Fl:eal Prop•rty tuu.

10.1 Deflnltton, A5 U5ed herein, the term "Re.ii Property Ta)(e.5" shall Include any lorm of u.seument; real erute1 general, special, ordln.uv or exttaortllnary, 01 renlal le.,,.,. or tall (ot.herthan Inheritance, pel10nal lncome ore!.late ta)(esJ; Improvement bond; and/orltcensa fff lmposed upon or lll'olled as11lnst any le�I or ettul!able lnten!st of Lessor In th& Premises or the Project, len.or'.s right to other Income therefrom, and/or lusor's buslMU of \&aslns, by.iny au1horily having the direct or lt'rdlted PQwer to tax at'ld where the funds are generated with reference to the Building addn:us. RHI Property Takes shall also Include any tax, fee, levy, usessm�nt or charge, or any increase therein: (I) Imposed by reason of e11entsoccurrlft8 during the term of thb lease, Including but not llmlted to,• change In the ownership of the Pretnlies, and (II) levied or assautd on machinery or equipment provided by le,ssor to lene11 pu1suant to this t.easn.

10.2 Payment of tlx.s. In addition to Base Rerllt Le"8e shall pay to lusor an amount equal to the Real Propertv Tax Installment due at lea$t 20 days prior to 1he appUabla delinquency date. If anv such Installment shall caver any period of time prior to or after the e11plratfon or termination of this ti.lase, lm'!e's share of ,uch lnslallment shall be prorated. In theevenl lessee Incurs. a latetha111e on any Rent payment, lessor may estimate thecurrent ll.eal PropenyTu,es, 1nd require that such \a)OC!S be paid In advance to leuor by Lessee mot1thlv In adYan.te with the payment of the Dase Rent. Such monthly payM�tsshall be an amount equal lo the amount of the estimated lnsbillment of taxes dllllded by the numb" of month$ remaining before the month In whll:h said lnitallment becomu dellnquent. When the acMI amount of the applh:abte tax bUI Is knowl'I, the amount of such equal monthly .idvinco pavm0:nts shall be adJusll)d u required to provide ttie funds needed to pay the aJlpllcable ta1<es. It the amounl colletted by tossorls lnsufflelent to pav such Real Propertv 1&){8-S when due, t.esS\le shall pay Ul!ssor, upon demand, such addltlontl mm as Is necessary. Adll)nce payments m11Y,be-lntermlngled with Other moneys of Leu or ;;1nd shall not bear Interest. In the ewnt of aareach by lessee In the performance of lts obllgattoM under this lease, then anv wch adv;ince payments mev be treated bv Lenor as an addlttom1I Seculitv Deposit.

10.3 Joint Aueumant. tf the Premises are not sepatately assessed, leuee's llablllty shall be a11 equitable proportion of the Reill Property Tuite$ for all of the land �nd lmpr011en1en1s l11cludi!d Within the tax parcel assessed, such proportton to be conclusively da:terrnlned bv lenor from the- re.spec.tive vih.tiltlons assigned In the asses$or'f worli sheets or such other f11formatlon as may be reasonably aval11ble,

10.4 Parsonal Property Taxes, less.ee.shall pay, prior to deUnquency, all taxes auesle-d a113ln:lt and le11led upon Lusee Owned Alterations., utility lnstaltatlons, Trade Fixture�, furnhh!ng.s, equipment and all personal property ot L.ess.ce. Whon posslble, Lem!e shall cause Its Lessee Own� Alteratlonsand Utility Installations, Trade Fbi:tures, furnlshings, equipment and allolhe, personal property to be assessed and bl\led separately ftom the real property of lessor, If any or umee's said property shall be amssed with Lessor's rtal property, Lessee 1hal\p1y les.sorthe tax&s attrlbotible to lessee's property within 10 da.ys after ceceipt of a written ttatement setting forth the U1xes 1P9Htoble lo Le1�e1
s property.
11, UtUltta5 nnd �Nlces. WU ea shall pay for all water, g.a, heat, llght, power, telephone, tmh dlsposal and oUler utllil1� and servlcessupplled to the Premises, togtthuwlth arw taxes thereon, If any such S4!1'\/lces ;ire not separately metered or bllted to Lessee, U!-me shall pav a reason1bte pr�ortlon, to be determined by Leuor, of all chs111es Jolntlym�tered or b!Ued. The1e shall be no abatement ofrenl and Ll!s$or shall not be llable lnanv nHpect whatso(!",ler for the lnadequacy, �oppage, lnttmuptlon or cns'°nttnuance of any uUlltv or service due to riot, itrlke, labor dispute,, breakdown, accident, repair or other cause bli!vond Lauor', reasonable control or In cooperation with &0V('rnmental request o, dlrecttom, �en d,vs of Lessoern,1n,n ,equen, lesseeagrees to de�., to lessorsuch Information, documenu and/oraulhorlzatton" "'"" needs In ortle, !or INITIA� . �
t!l 2019AIR CRE. All Right< Reserved. 1.!11 Edited: 2/25/2021 9:53 AM STN-27.30, Re.vised 11-25-2019 Page 8of 16
EXHIBIT 1
City Council 26 – 10 4/19/2022
Le.s.sor to tomply with new or existing Applicable Requirements rellltlng to commercli\l bulldlng energy USBge1 ratings, and/or the reporting thereof. :, 1 ,t, Ul81Hfl•rt and S�1bletuR9
14 1 tu,or1
t Coe:iuRt l\tqwlrad
la) L11Ulllll ,RaU111>t t'IIIURID•ll'I orb'/ QillJl�Oll ol lair: ?StlQR tr1ivle; Mof1!U8t or tncu�(,oll11ctt'llli;1 •11111•., •-lt•mr ,•1 1 Qr51.1bla1 ill�
PQR of LIIUH'r l;:at11Nu, 'n lhlt I Ult ?F ln'l iPe 0�11 lthout I tcrnr'r pRo� �'It
!O}-.U(lleu 14ltlll 1,) �o•p0"1�1l-A IPd IU "o,k ,. p11blld'{ hldtd 8111 I 11auo1111 1hl(k t11cP&Aflllt I d1iJR91 h1 ,1:1, '.(IAIIOI oFIQIHQ 1ball (Ql1Uil11t11 an ieq,1itln,9 tOPftN tl:i1 tCIAIMII; OP I f'IMtlblhe bad,, 11f Uk or mnn of tho lll,'ltlllfl CORl�OI of I ttl88 lhlll (ORCtl!utt 1 chaneo iR COA\l'Ol lor\Ris puipou, M The h1•u�I• ,11flt1nt of• e1 r111 or 11, au.1, IA JR¥ tr:;inuctlGn, or reilu of ,ra111awon, \bit,,,,�, l)f:mQ,Slt, 1ale, 11wq1�clttal\ flnanclng. tr.anlfar, la •atefJ'l'd b••t o I 01 aU,ar,,1,1), ,.,boehor or Aol a IC1tmol 2c,l9nmert Qr 11,'f0'11eutlon of lhls ba11• or \eu,,'1 "'"'' ort11'11 'rMCh re51:lt1 er wiH w::!t In a Po1duc'1n ct tl>o biOI i.llQ�l:1 of leGCQQ bi,• an a"'ouM 9r90tor\h11A a,K of ,u,11 Met \UgqR 11 It !IOI NPNHnt,d tl thetlq,e o,f\�Q IIOIIQlttlon Qllhlr tem1 or JI tho limo of tho MOIi '
.eGCIO� asclgqi:.11M to11,h!ch l1uorb1t cow.intad, or a, II 011lctt lmm1dla10__, prJneto t;tld(t2nractloA orlnnue�or, «instltut,ns ,,,ch reduction, u•hlcho1•1r1i1•a• 0� gr&Wo!r, chJll�dlt.id an ;iutencu,u ol w, I l)(MQ to r.ublch LoeeorMa',' udU,hold 11, ,anun, •NnH/Q,tti gf , .. , .... lhtU "11011 lhl 1111 1 Gll'th of l HIQI) 1(e11cludin9'.lny 0•1m1rto,rl en1bll1hod undw sonenl¾•accoptod accc 1Al!na prln,lplu Id) A.n 1ui9nJ1:11nt Pr, htattlne o ltho 11 coqctnl ,hitll, 11 I ,uor'c option, be> Oe�u11,ut.1blo afttr noti"8 par P<IA9nph 1� Jld� or a none11nbla aru� urilh\'J• t Ille n.-.•nlt1
• of 1n•,1Mtko ltld onu period If leitof ale ctr to troat 111Cll unapproved aulanmanl or ,.,bltWne II a l'IOAC.•J�able i111ac:.", lHtor fPI',' ,olthtr· (tt1"m1,a1, '"' LnlO, o, 1111 "P" 10 d,,,, ""'"" "�"• I,".," IP, m,nt.i, 0>11 •on1 lG UOM ofth OilO R'°l lRoo lo oflo� '"''"°' IA lh• $'"' oll'"h B,oa<h ar:id rental idJuum,nt, II) lho p,,ec:h;u,o prlc,o of >rw QPtloR to pu�cAa,o Iha ?:ra<rl,01 ti old hv I enae,hall be wb}tct to tlP'llar adj,,etment to 130% of the prJ(;a p111• 10,11lyin tfftGt, and {Ill allffxed a11d non �"'" ronlal adj111,"1IRU ,chcidt!lcidd1,dn9 ,ho co n:nhdarof \he 1?2'0 ltrm ,�an be J11m1sedto t 10M al tho sched,,lad Jcljmtod f!ll11t
,10»)-llAo�u�•••'�•�u�•�•"'d�.t»�u�eraph ll 1 b1 L(l,1er 1h:tlt b• tii:.-tittd ta ca�p•nA,QPI' da�aee1 and/Grh1jt,1n,Uuu 11.U11f !LI J qc,gr n:iay •i11�1onabl.1 u�ll�hold CORl(IAI 10 ) pniporod lCIIQAIJIClnl or lttblet\lns If Lo\lUM le IP °'ll;iult >t lht limo tOf'UiR\I[ req11Q(t11d Is) hlol¥ilU,rt;1ndln9 tho fi.m1eolre, allcwrlna a tit ml�h>'llt pol'Uon ofthG li!t01J1he1, lo 10 1q UNO for,t orlO!t1 lo bC111ted b11;1 lhlrd par\y•"ilndgr In connoc�h)A lttl 1.1:iCI lnlf)llil.h>ll or l 1<tndlne, fXllChlRG 0, paiypR0M chall 110\ con,1hu1e l "'blqttlns 1::1.l f.lMII lrld ,ondll.to11,,'lppll11lal1 U Aul,nMIAI tRdS11b1 ... ,,. (a) Rtt&llcdltf' nlles10□ wnsent no asslanmoot oc subletttae sbaH · (II be effectht& udlbout the ewpcttu written PFWmptton ""curb assignee or "bleueeor tht 0bi1tPdo11, ofl met nrldor this le1,e, (Ill ralea1• leuu of any obllaa"ont h1r.at ,ndtt, orUMI 1he, lilt pi:IMaPa• ll>blli�•eflu1eoo kir lhe p11irman1of II.OM.or !or !he pal:fotifr<IRGO afan'I o,her obl'&H,0111 to In pafforM1d by leun lllil l•nor m)•i IC'11pl Jltnt or p1A01mar:ic• of I woe·, abll9a\io11f team a,w poq;on othuthan l<tM'81 pat1dl119 ,ppw:alordtupprorl sf ,n :UilORf!AOM �lalth,ara dala1,11n tho appio,.,, or Glnppioval of 11ach udsnm.iint Rortho accoptanCQ of Ptnl o, pa:c!o,Ma11ea 111111 «rnun,uo, ,.,al'o,grorectoppol ot, auo,•1 �la.M IQ �C!fQ IU mmedla, for t UF'l01
1 0&1iult g( lhaadl.
le) I auor', conu1AI W 'lfl\' ;mi9nm1nl a, ,,,bletiln& ,tia.ll nee ,;gr1tlMt 1 conr♦Pt 10 a1:,,; wb1nquvnt aul9n'-l'4nt Qr111t118WAQ, ldl In \j;,11 Qlrenl of anyOelaull or 8re>c;h t-,, 111ur,e, I ass or ow; proceod dltoctbf ;,9;,f nit I au PG, 1n•i1G11J,an,o" or an•rro•l111 ro1pon1lbl■ fQrtt:1 PPtlow11nce of let'8e'r nbll!lttlont 11nderthlc L-83'0, lncludln9�.len110 At n1bl1ne1, 111IU1nul Ur1t 114l:,a111�n9 l 1uor1 o.ntw,.,�lble 1 POmedl•I ?ftlin(t ?N,t oth11r perso11 or
\h111ok-r 10 tuur, oe a,w ,er.ml\¥ held b\' I uuo,;
1,1 �a&fl 1oq1191t tor &OPIQAI '" 1n anlenmenr 01 11 bl11t:UnQ d�illba In ... ,1t1n9, ,ccompanled b\• lnh:mnal1oA relouJnt 10 Leu Hf"• dolerm'na\'lon H tg tha fin}nthl ilAd op11nt1oral r,"ponllbJU� and 3PPt<IPFl3\eA8'( of lho prqpo1ed >tt\9ne1 o, r11ble1,,ag, ioth:dlngbul not 'lmittd lo tho ln'°l\dUd 'om• )Rdi4)r fQll;t:l�od mo4lflntlon of 01e Pee111!re11 lta111,,, \OffCllhM udtb a fee of $50Q ;rt (on�ldont1on for I 01ror'r cQPt'darl11e and procaulne 11ld w,\nett 10"00 agrou to pro,Me I or roe udtb ,11,h olboc or nddhional 1Pf4rrp1tlcu1 aR#Qr doct1mon1at1on 1c m3',• be ttaronablV ,,quoited ($oo ,rco Oanar:,,ph 36) lfl AA'f anlQRH ct Of hlblHHQ URdll', this' saso shaU, bi.• roacon olatceptin9,,1ch 1UiQPMOQ�, anhulne IPlP met-u,b1Hst1 eren,ulne lnln l)QUIIISleA olthe Oremltes or an•,1 poAion tlHueof, bo doetTied t<> h,::,,,o auu«iod :and o1er<1ed ,A confotQ'.1 and eoin,Wt••�lq el�h nod Cl' fll\ tum, C')lranant (;OPdltlon and obReallor R1141h te bo ob111P all o, flarferq,ied by L11&•t d"Clne 1/.\,ttrP' ofcald ai;11en<r11n, or 1,:b1ea1fl otller,tian cuch obU91tlont ;u 3Nl contruvt.o 'olrlncon,lltent "Ith prcui&lon, of '" auianmeol 01 toble11e 10 which I mar bu tpeclf:lcalltl tot:tunted to In mrlUAQ te}--1.ouor't ,;or.cent to ln'/ 1csi9111n•flt or ,ubleWne cllad �ol band1u to the attlsnw Qt o,blocraQ >f:'l,P 0pNoneranWd 111 Iha a,ieinal Lenoo 1;i, �
1 Hilt, ,,,o
tnnrftirlt ,poc/kcalb; co11,entid10 byteuer lnl'1rt1be {S110P:m9tlph �O 2) 12 i Addldonal 'RltA-11 and CondltloH J\ppllc,bl•to lit bltn:IAI tt,o foU011dPQ tfllmr >nd eondrdonc rh?U 1ppy10 an•,• fll�lt(pg b\• laic,aoof alt or any pl� of tha ll:temi1a1 and th all be d&emod \,:,duded 111 atl soble1Se1 undQt 1h11 • •�•e •¥Aelb•r or not o•p,-ecely /ncorpo,11ed th11rolr· 1,1 'gs fol horgby nsl9nt andHandets IQ I OUQT 21! off HIGO'• IAlUHl In 111 •u•t pa•,'lblo on aA1/IUblone, 1nd I 11mu PH'/ coll"• fllth Roni and 1pp1'/ W'1Wl \OWlld L4uoa.'t obll&1UoA1 ondtr \Ille I aatllj pro: ld11d, l�OI' Ot11"', thll unt11 a l�eath 1h1H 11Wlf In tba po@rR131\CO af I 11strt11'1 obll9;illttAI, Jteuie maycollet;I IJid �IIFtl In 1b, lt1'41AI lhat ,ne ?MC'IRI collected h¥ I 0110( 8KCNdG L01£oClt'I then OU--URdlne ohll9at1ons 111�•,vell ,x�••t Ehli bew!stndrd to Ltssee L,uor ,hall POI, bl/ IOUOR Dftl:lt lor•aolneor 1A'f ac1l91Mtnt ol 1111,:II cublea,e1 norbr,1 (IIHQn of th• eo11,�'i19A el R\lnl, bt da\lmd 1',bl■ 10 �e toWtclto I-Oran•• hlhlft oflQltH to 11odoiM ll'ld �omp!y ml,IIJn•tof L(mH't o�llaattcAG to cuctl Ct,1blo110t l'liisteo llenbylrrtno;abk a,,1hodu1 a�d,rreclt u,,w+ rt;,/c11«1t, 1,>on rrllGQip\ of., w,iu.tA noU'8 fR>A'I l•11or Oad119 that a Ptnch orlU1 In lhe p11P:ortn1nc1 Qf I 11ueo't obU9Won1 under thit I one, to pay 10 Leu gr )I! Roni d111 1.md to bo;omt dne uodQt tho r11bl?)!O $nbh1Ut111 cb:all '?'l�OA-iA¥�or and thiU p�• all PIPfltl lo lo1,otwlth111.11 tRlf obll&1do11o or rlftb:t to l�qvlrt u tc •rhalh$. u ch Qrnach nxilt1 Mtu�lh,hedlne >"',• clAlql ffiom I 1011P In the ,;qnlraio,, lb• IA \ho u •eAtof a lho;1chb'f 'Ainu, tenur n,a,. 111 lu opi:lon, roq•�r• ,11blotcl'u1 to attom to I euor, lnwhlGh w,tnt eeuorthPU 1111dei:t.Jh lho obll&1tl0Rt of tho t11bl11,uw 11Adu nd, 111bloace lrorn tho tJm11of the 1111e<cl,e of cnldcptlon &o IRo axplrntic:m of cue� tubluu1 ptotcld1d, l1owe11tt, liner thiill ,o, � .. llablO lor lA\IPUPlld ronh or mrrlW dopo,itp1tld b1• ,,1et:'t ,11b1H1oe \o ,.,.,b S11blt15«i'r pr f.oraJ1yp1lor Qefa-.il-u �, areaa.het gf u1Gti. ,11Cil11t.ior 1,1 l'tr'J rta"ar 1eq11ltin&\he 'OctA1e11t Ill ttia cvblet"'' l.l!Ulor , wblu11 1hall alto requl�o tbec:onr11nt of foes�• ldl filCI roblauot 1hallfoAhor aulen o,r 111blel all or Jfll, pJf!t of the Pramfsllf uilthnutl tttcr't prl11rt •r� �o) I ottor 1h�ll de!J.1or > copyol nm;notlca of Peh1dt or a reach b•/ Ltnoa 101h "1blo11u, ,vho shall hm11 the rlet-• le cma\11■ o,hull "' it OH 1uilhm. the QPOI padod, if an'i', 1petiliod lA tuch notka Tbo h blet*Oe 1haU haue l J;15bl or r1l1RbUrttmeRt11nd ofhat ffO� tod 19zirU LlilUta ku ll'lf 51,ch Oefa11ltr cuied �¥ 1hl wbttllM
U, Dot.Jlt} Breuh� Remedies,
13,1 Dof•ult; Btt:ech. A "D11Jault"ls defined asa faUure by the Lessee to comply with or perform any of t� terms, covenants, conditions or Rules and Regul.lt1.ons under thls Lease, A •ereaffl" Is dcH!led M the occurrence of one or more of the followlng Defaults, and the failure of Lencre to cure such Default within a applicable: grace perlodi
(0 2019 All\ CRE. AU Rights Reserved,
STN-27,30, Revised 11·21 ·2019
latt Edited: 2/25/20219:53 AM

EXHIBIT 1
City Council 26 – 11 4/19/2022
la) The abandonment of tht Premlies; or thevacat111s of the Premises without providing a c.omml)rctally re1:uonable level of murlty, or where the c:overage of the property Insurance desctlbed In ParagraphB,3 rs Jeopardized asamuJt ther<!of,or without pro11ldlng ren$onable usu ranees lo mlnlmlie potenttal vandallsm.
(b) lhe f.illura of L11s'8e to make art( payment of Rent or any Sec�rlty Deposit re�Ulred to be made by Leuaehereunde.r, whether to Lessor orto a third party, when due, to pro-.itk! rf'.Uonable ltVldence of Insurance or surety bond, or to fulml any obllgatlon u11der this Lfase wh\c:h t!Odanaeu or threatens life or propl!rty, where .such (allure contfnues for a period of 3 bUslness days followlng written notice to Lessee. THE. ACCEPTANCE ev LESSOR OF A PAl\llAL PAYMENT OF RENT OR SECURITY DEPOSIT SHAU NOT CONSTITUTE A WAIVER OF ANY OF t.tSSOR'S RIGHTS, INCWOlNG lr5SOR'S RIGHT TO RECOvtfl POSSESSION OF THE

PREMISES,
(cl The failure of leS$Qe lo allow Lessor and/or lt.$ aaents acco� to the Prt:mlses or the commission of w,sle, act or acu eonstttutlng pub lie or private nuisance, and/or an lllea•1 actwltyon thG Pre.mises by Les.s-ee,where sueh actionsc.onUnue lor a period of 3 business days following written notice to lessee, In the event that Lessee commits waste, e nuisance or an Illegal ittllvlly a second �me then, the Lesso, may elect to treat such conduct as a no,n.curable Breach rather lhan a Defaull.
ldl The failure by tu�e to provide [11 reasonable written evidence of compliance wlth Applltable Require menu, (111 tnlil Hirvlce contracu, (lll)thc �clsslon of an unauthorized uslanment or subletting, (Iv) an Estoppel Certlfk:ate or Hnancial statements, M, reque�ed subordlm1lfon1 (vi) evidence concerning any guaral'lty and/or Guarantor, {v!l) any document requested under Paragraph 42, (viii) materlat sarety datiill sheets {MSOS), or (Ix) any other documentation or Information which LesKJr may rea1on0bl'!' req1.1lr1 of leuoe under the terms cf this le:11se, where att)I such fcJllure continues for a period of 10 days followlng written notice to U!Htf!.
(e) A Oefalllt by Les� as w the term$, CMnanU, conditions or provisions of lhl$ Lease, or of the rules adopted under P-ar;graph 40 hereof, other than I hose described In $Ubpar.igr-aphs 13,l(al, (b), (c) Qf (ti}, above, when1 suth Default conttnues for" perlod of ao daYtafter w1\tten notice; pro'Jlded, ho�vor, that If 1he nature of Lessee's �fault Is such that more than 30 day, are reasonably required for ltscwe, then II shall not be d�med to � a Breath If Les.see commences such cure within said 30 day per kid and thereafter dlTigently prosecutes such core to completion. (fl The oecurret'ICe of any of the followlngevents: II) the making or any general arrangement ot as�lgnment fotthe benefit of credltofl; (II) bacomlng a �debt(lr• es defined In 11 U,S,C § 101 or anysuaes.sor statute thereto (unless, kl the ease of a petition filed agalfdt lessee, the same Is ditmlssed wltMn 60days)i (nl) the appointment (If• trustaa or re«1Net to tab pomnlon of subsl,ntially all of l.es$et's ,s� located al the Pri!mlses or of Lenee's Jnterest In this Lta.s:e. where pocmslon Is not restored to Uuee wllhlo 30 days; or (Iv) the att,chment1 exetutlon 0crother Judicial selture of ,ubstantlalty all of lessee's as.set! located at the Premhm or of Les.sea's lntere$t lit thl� Uu1se, where such 9eJzure ls not discharged within 30 days; provided, however, In 1he event that any provision ot this subparaaraph Is eontraiy to any appllcabla In� suth provision shall be of no force or effect, and not afw:t the valldlty of the tomainlna pl'O'lislons. (B) The d't$co1,•fHY llut any Rnanclal statement of Lessee or of any Guar.11nto, &t\llln to Leuor was matetl1llv false. (hi If the performance of L1m1ae's obllg;il1ons u"der thls leasa ls guaranteed: {IJ the death of a Guarantor, (II) the 1ermlnat1on of a Guaran1or's liability with tespect to this t.ea1e other than In accord ante with the terms of such gu;ranty1 (nil a Guarantor's becoming tnsol\lt'nt or th& subJ1ict of a bankruptcy flUng, (lvl a Guarantor's r1iusal to honor tlia guaranty, or Ma Guarantor's breach of 11.5 guaranty obligation on an anticipatory basls1 and Louee's failure, within 60 days follow Ins written notitt of any suell event, to proYlde written alternative assurance or security, wh\th, whe.n coupled with tho then exbling resources of tesste, equals or exceeds the combined flnandat cesour(es of Lu see and the Guuantors that existed at the ttme of e�ecutfon of this lease, 13,2 Rem!dlr.'ls. If te:wie fa.I� to perform any of Us affirmative duties o, obllgations, within 10 days after written nottc• tor In case of anemersency, without n-otite), Lessor may, at IU opUon,perk>rm such duty or obligation on Lenee's behalf, Including but not limited to the obtaining of rf)a1onab?y required bondi, Insurance pollcias, or governmental llcellses, permlt1O, approv.,ls. U:lssee 1hall pay to Lusor an amount equal to l1S% of the com and ekpensei Incurred by Lessor In such performaote upon rec el pl of an lnvolc'1 therefor. In the event of a Breach, Lestor may, wllh or without furtMr notfceor demand, and without Umlttna Lessor In the eXi?rthe of any rleht or remedy which Leuor may have byrea5on of such Breach:
(a) Terminate lessee') right to possession of the Prem I Jes by any lawful means, In which taJe this L.ea,eshall t�rmlnate and Leuee shall lmmedlatll:ly JUrrender pos�sslon to leuot, In such event Lessor $hall be entitled to recOYer ftom LC me: (I) the unpaid Rent which had been eame-d al the time of termination; {II) the worth at IMtlmeof award of the amount by which the unpald rent which would have been earned after termination until the time ofaW\lrd eitteeds lhe amount of such rental loss that the lessee proves couldhwe been reasona�'t' avoided; (HI) thQ worth at lhQ tfme of award oftJle amount by which the unptld rent fur the balance of the term a rte, the time of award exceeds thl! amount of such rental loss that the Lenee proves could be reasonably avoldedi and IN) any other amount necessary to comp1msate lesw tor' all the detrtment proxlmately mistd by the t..essee'l failure 10 p!rform Its ob!lgat101u under thl5 lease or which In the ordinary course of thlng5 would be llkelyto re,.ult therefrom, lntludlna but not limited to 1he con of rtt:overlng pcnesslon of the Premises, t11penm of re1ettlne:, indudlng n&eessary renovation and 11ltertt-!on of the Prtmlses, reasonable attorneys' k:U, and that portion of any leaslng oomml,slOn paid by Lessor h't tonnectlon with this teue 1pplkable to the unexpired term of this Lease. Tho worth at the time of award of the amount referred to In provision (UI) of the lmMedlately p,ecedlna 1tmt�ce lhill1 be computed bydls«iuntlrig such amount at the discount rate of the Federal Reserve Bank cf the Dbttlt1 within whlth tho Pntml�s are lotatod at the time of �rd plu, ol\e percent. Effort, by Leu or to mitigate damages caused by Unsee's Breach of this Lease shall not waive lessor's right to ceoove, 11ny damages. to which lessor Is otherw� en ti tied. If termination of t11ls Lease ls obtained tlirough thfl provhlon11I remedy of unlawful detainer, Lessor shall have the right to recover In such proceeding anv unpaid Rent and damages al are r9coverable therefn, or lessor may reserve the r'8ht to r�cover all or any patt thereof In a separate 1,ult. If a notice and grace period required under Ptlr;graph 13.1 was not prevlouslv given, a f\otlce to PBY rent or qult, or to perform or quit given to Lessee under the unlawful detaff'\tr statute shall also trJns"tute the notice- requited by Paragraph 13,1, Jn such ease, ti� applicable grace period require-ti by Paragraph 13,1 and the unlawful detainer statute ih•II run concunently, and the fadure of less� to cute the Oetault wtlhln tha grnter of 1he two such grac:e pettods shall constitute both an unlawful detainer and a Breach of this Leaw entitling lesror to the rt1.medies prc;.,.lded for In tlils Lease and/(lt by said statut@. lbl Continue the Lease and Lessee's right to possession and recover the Aent as It becomes due-, In which ev,ant Leueemay sublet or aulgn, subject only to reasonable llmltattons. Aru of maintenance, efforts to relet, iillnd/or the appointment of a receiver to protect the Lesso,1 s Interests, shall not constnute a
tetmlnatJ.on of lhe Leuee's right to possession,
(cl Pullueany other remedy MW or hereafter available under the laws or Jvdlcl.il deClslons of the state whflreln the Premlsil are !ocat�. 'fhe explratto11 or termination of this ume and/or tho termlnatlon of Les�e•srlght to po-™lsslon ih;lll not relll!v<t Lessee from llablUty under any Indemnity provisions of th I$ lease a.. to mJ.tlf!l'S oQ:urrlns or accrlllngdurlng the term hi:reof or by re.ison of Les�e•s occupancy of the Premises.

13.3 Inducement Recepture, Any agreement for free nr abated rent or othtr charges, lhe cost of tenant improvements for ltruee paid for (If performtd by lessor, or for the giving or paying by lessor to Cir forleuea of any ca1h Mother bonus, Inducement or consideration for l@SSl28'1 entering Into this le Me, all of which concessions •re hereinafter referred to u "lndutflment Pro'llslons," shall be: deemed eondttlo11ed upon Le:!>$ee't full and hilthful perf(lrm1mttt of all of the term$, ccwonanu and condltlol'IS of this Loase. Upon Breach of this lease bV Lenee, any such lnduetrnent Provblo11 shall autom•tlcallv be deemed deleted ftom thl$lea�e and of no further force oreffett. and anv rent, other tharee, bonus, li\docement or COl'IS!di!!r11tion theretofore abated, g\Ven or paid by Leuor under ,uch an �• Provision ,h,11 ,. lmmodlal•� duo ,nd payable by ,,,.,. to '"'"'• � ng any sub$eqUefll cure ofnld Breach by u,s,ee. The ae<epta�,� .
by
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INITIALS >
© 2019 AIR CRE. All Rish� Reserved. Last Edited: 2/25/2021 9:53 AM STN-27.30, Revised 11·25·2019 Page 10 of 16
EXHIBIT 1
City Council 26 – 12 4/19/2022
Lessor of rel\tor theturt of the Breach which 1rima1ed the operatfon al thls parasraph shall not bt deemed a waiver by leuor ol the prcwlslons of thls paraaraph unless s!)(:ldheally so stated In writing by Lessor at the t1me of suth acceptanc.e.

U.4 late Charges, le,See herebyatknowledgcs that late payment by Lessee of Ren\ wlll "'use Lesso, to lntur cosl.S not �ntemplated bythls Lease, the exact amount of which win be e11tremely difficult to asantaln. Such ooru Include, but are not llmlted to, proceuln& and auountlna eha,get, and late charees which mwbe lmpcsed upon Lessor by any Lender, Ac:cordlngly, II any Aent shall not be rece\vtd b, U!norwl\hln 5 days after wch amountshaP be-due, thtn, without anv requirement for notice to Lessee, LesseeshaU lmmedlatety pay to U!ssor a one-ttmelate charge equal to 10" of each such OY!rdue amount or $100, whichever b greater. 1he Panias hereby agree that such late ch use represer'lts a fair and NIBSonable estimate oft he costs Leuorwlll Incur by rea$0tl l)fsuch late payment.

Acceptance of such !ate charge by Lessor shall In no event constitute a walwt of leuee's Oefautt or Brtadi wtth mpect to such overdue: amoul\t, nor prevent the I exercise of any of th& other rlahts and ,emedles aranled heruunder. In Iha 1111.W \hit a la,, cllaFf!,a 11 pay�blt lltN••Rdtt, tt+Mh,r or AOt c�last.t, fQr a Q&!An;wlilw 1Amllmaf1
........
,c of llan Ran-, tlmi 11olo◄-h11udlP9 JP'f ppgorl1kln gf 1�1, 1•111 lo\ha cerurafV, tu, Rini ihal� a�11uor'1 op�on, b1wm1 duaand pai1tblt qwaRoslr: IA 13,S lnterttt. My monetary payment due Lessor hereunder, other than late chtrges, not ,ecelved by Lffl.or, when due shall bear Interest from the llSt day after It was due, The Interest rrnterast�l charged !hall be computed at the ratt of 1oKper annum but shall noteKCeed the maximum rate ahowe.dby law. Interest Is payable In addition ro the potential la\t dmgeprovlded for In PJraaraph 13,4, 13,6 Brt1ch b, lessor.
(a) Notkt ofBretch, IAHor shall not bl deemed ln breach ofthls Le11eunleu Lessor Falls with.In • reasonable t1me lo parform an obllaatlon ,equlred to be performed byle5$0t. For purposes of this Paraa,aph, a rea,onable time shall In no event be lds than 30 days after tecetpt by Lem,. and any Lender whose name and address shall have been furnlthtd to Lente In writing for such purpose, af wtltten notice spec:1,Vlng whtl'eln sudl obllaatlonof Lessor has not been performed; provided, however1 that If the-nature of Lessor's obllptlon Is such um mare than 30days are reasoitably required for Its performanceA than Lessor sh11II not be In breach If performance Is commente� within such 30 day tMrlod arHI thert1fter dlllgenttvpu.rsued tocomplttlon. (b) Perlormance by Let.see on Behalf of l.essor. In the event that neither Lessar not Lender cures said broth within 30 days afterreailpt of said noltte, orll MVlnt commented said cum thev do not dlllaentlv f'Qrsue lttocomplatton, then 1Asw11 mayelectto eura sald b,each at lessea1s expense and offset from Rent tile actual and reasonabl4 �" to perform sudleure, provided, however, th•tsuch offset shall not exceed an amount equal to the greater of one month's ease Rent ot the Security Deposit, re-setv1n1 le$St1e', rlaht to seek reimbursement from Lessor for anvsuch expense In eKat$$OI such offset. 1.esseeshad document the cost of said cure and supply Hid documentatton to Lessor.
14, Condemnetton, If the Premises o, any portion there.of are taken uRdet the power of eminent domain or sold under the threat of the exettllt of said powtr (oolleatvely"Condemnat1on"l, this Lease sballtermlnate as to the part taken as af the date the C1Jndemnlngauthorltytakes Htleor poS$t.SSlott, whichever first occurs.

If more than 101' of the Bulldln& or more than 25% of that portion of the Premises not occupied by any bulldln& ls taken byCondemna.tton, Ulssee may, at Lessee's. option, to btwirclsed In writfna wtthln todays after Lessor shall have given Lessee written notice of such taklna (ar In the abM?nce ofsueh ootft&, within 10 days after the condemnlngauthorlt.v shall have lakeo posseulon) termlnatti lhl$ Lease as.of the date the condamn!ns authoritytakH SU<:h possession. If le�see doet not terminate this Le:asetn aa:ordance with the foreaolne, this Lease shah «1maln In full fottaand effect as to the portion of the Prorl\lses remalnlr,e.etcept that the btse RentshaU be reduced In proportion to the rtductfon In udllty of the Premlses ceused by such Condemnation. Condemnation awards and/or p-ments shall be the property of lessor. whethe, such award shill be made as compensation for diminution In ¥alue of the leasehold, the value or the part raken, or for smrance damages; provided, however, that Ltssee shall be entitled to any compensatfon paid by the condemnor for Lessee's rtloc:at1on expenses, Ian af business goodwill and/or Trade flKtures, Without resard towhelher or not this Lt:ist Is terminated pursuant to the provisions of this Parigtaph, AUAltetattonsand Utility Installations. madato the Premlsts by lessee, far put90ses of Condemnatton onlv, shall be considered the property of the Lessee and Lessee shall be tt1tltled to any and all compensadtm which ls payable ther1(1ir. fn the Mnt that this Lease Is not tarmlnatad by reason of the Condemnatfon, lessor shall tepalr "IIY damage to the Premlses caused by such Condemnation.
1$ IIJGl111ra11 .... II
S5 J Acldl"'•II Cono-11slOA IP addldon In 1�1pa•i'�DRH o,�1ad puu1aaiUt.11 Pa,aa,aph � Oaiaouo1 IHUF •&�HI U11t1 I•� 1,LeH .. 111.-�HIIRY Op&l�R, Ud II 1111"011 o, :liAtfORQ afflUalod u�h I HUii a;qulJ:GI IA\lliehH IOI�• 51:flMiltll 11,1111b,, pflmlHI QjlFRld b; lt1Hi:and IOHltd ttilllllA d�• lillH ll1oj11;&, IIIA\'1 ll�UIIR 111Qlchc11t ll:r•MIHl 11 lo mad. 1,11& lfilHH feAlllAI IA p,HHUIOR oi1t:ae llF1mlu11, 11,lllllh• CGAIIAlt111i1 flUOfi aRe,u,a eicplRl�IHI oUlll5 I IHI, D�4dl It lac. Aea&ls IAGflH·� oi11,111u bt1 IBIOIMIIU OF opo.aChilA ul IA 11e;alalh1A Gl:;11111 IIHIIA, ,11,11, LHtl' 111111 pa1,1UA11k11R1 a fa, IA acco�lACII ulidl Cha 1111 lid\a .. ,, otlhl lhukar, IA llll8'1111111 lllnlll lllfl 141i11111i'al tNICUlld :n.1 pcO'll5IOIU ot&hl1 pa�ae1apl\ alt IM1nd11d IO IIIPlr:fitdl the ,-:oi1l1loA1 OI IA'i1 n,IIH/il&,HIIAIIA' te lh GIIAIA1¥ n ;a 110111151:dH ot06lll1•iwn• IAY .*'1111; IUIFIRd1Ue11 al I 11mo11 1 ilUtMUI Ill lhl1 I 111a, 1hall ll1 dHAlld IO lla-• HIUMlld I llilDF'I Dlll)&a'41UI �8'1l1Adl� lliokau 1hall Mi 11\IRS·p;iiR�• b1n1PclaslHat t.111 puiulcllnu at Pia11gcapll1 I Q. lS, :22 a11d U Ill HCOI tallc 10 pay to IIMJhn a� '"'0111111 do, 11 IA. roe: llrolcaca .. ''" p1r1afniAa 10 thit I ea.,. 11sh1n d1,19w 01111. such amo'*"'' 1hall xau11 1iu110&1 In iddldoit, If L1c11rfa"''' fl:a\•IIW)• IMII.IM.1111 ....... IF1hlr11lh1A ...... 1,, ..... au1kiN AU� HAd m�ililH AOIIHIOI IUIH and� .. ". ol111ch fall lr4 ancl le I u1oslall1 lopay1111;k IRIIIMIAUmlUdA I.O d111t allaJ 11ld RQlt'11 I.IIHH 11:!all pay Hid Al011U lQ u, a,e�,r and raffu1t ,wdi amllllRI, G(pkllt RI Pt Ill )ddllhm, t ,,ma'r •�ok11=11:1,N he 110'1':ld lo bt a lhlfll �•"'1• bt•aflclapt cf ti AW con11qlnl11A l8f18Al1AI 8Atlrtd lqW b\l ud/4J btUIIUltA IHH� IRd L1110,!r a,c.A, foFthCI Qmlltd p1npetsa g( cell1r.\lA9 ac,,,, bR!lr.tRfl(I fta lliUlltd lli i a1pt01tAla"lnt 111dlRdJ1Mnl·• ,, lrok1rRllnio111hlp1 IHIU Dl'ld Lino, tact. ftt1FlltAt aAII l'�Ff•n, \11th ulll.trUuult 11.athali ROdHIIRp mllh IA'.' pUIOA1 ti FM, luokar. a841AI OS flAdH lgUl1i lhaa lho l,gkcu, I Ad llgtAtl, 11 aA\11 IA l:IIAAtCliOR -�,ltb lbl!F I eac,, and tbat "Q 01111 GUIii: U1111 Hid caamad u,ok,u and A&IIAll It IIAdllad tD .... COIQAIIHIOA or 1Ad11r'l 111 IP roeAOd#CA lttrou41l1 I,, ... and I IUOF do 1a,;b ktMlli•.• aer11 \o IRdaMAI&;, pro'lec.t, ... nd ,nd hid d1• ;,thia, ha,ml111 irom and ap"'"-!labllllr,iro, tOAlPlilAllijQQ oc ,hai:&111 •'lhlcb •ay bo clalMlld b\l .. ,,. ,11ch 1111in111A1d bUlkltti R,utu U 01h,, IIMIIIJ Plft.ltl;,� 1111011 ne •iw dHIIAftl or '"'Q"& 11f 1h11t1d1111Rlf\•ln1 PIM!.1: IAsl11dlAae11,, cu,,, .. p1nu1, ,uvm•' IIH rn,eAaO�, jq;11m1• 1'ln rtrp11tUh111\u I t&. Estoppet CertUkaW:s,
ta, Each Party (as 11
Rupondln1 P1rty"J shill w\thln 10 days after written notice hom the olher flirty (the "fllequ,ntins Purty•)eKeeute, acknowledge and dellver to the Ri,questene Party a statement N1 wrltCng In form sfmlla, to the then mo.st cur,ent "b10ppe1 (ertiftcate" form pubilshed er AIR CRE, plus such addltfanal lnfoonatton, c.onflrmatton and/or stat,ments as may be reasonabty requested by the Requestfna Party. (bl If the Responding Party ,hall !all to execute or deliver the Estoppel Certificate within sudl 10 day period, the Requ<sUns Party mav execute an fstoppel Certtftc.ate stating that: Ill the Lease Is In full torce and effect without modlflcatton tKC:ept as may be represented by the Raquattlna Party, (IQ there are no um;ured defaults In the Requmtlne Party'sperformanct, and (111) 1rLessot ls the ReQuestfna Party, not more thlln one month's tent has been paid In ad\lance.

Prospective pun:hasers and encumbrancers may rely upon theRequestins .,,rty1 s Estopp1d Certificate, and the Respandlns Party shall be estopped from denying the J:[J::_
truth of the facts contained In said Outffltatt, In addition, Lessee 1cknowledaff that any ta.Jiu re 011 Its part to provide such an £stoppet Certlflcatewlll e.Jpoae Le:mr "°""""IV cau1e Lessor to lnmcosu nottonlampl,ted by th� Lease, tho extent of which will beenremely dlffi'11hto asa11tal� Aca,rdlng�. should the � INITIAlS
© 2019AIR CRE. All Rights Re,erved,
STN-27,30, Revised 11•2S·2019
Last Edited: 2/25/2021 9:53 AM
Page ll of 16
EXHIBIT 1
City Council 26 – 13 4/19/2022
��d,-wl!h(l'lt
Lessee fall to e:xecute and/or deliver a requested E$tOppel Certitlcale In a Umelyfashlon. Lessee shall pay to Lessor a fee of $500 lhA mor>thht lAV n11qultOMont (Qr nNiCt to I OSSH1 by )A a<flOllnt •ct ,al ,o JO>'. oflAt l�tA •Hlit!Ae Ba 1, '"Int tr$ lOOi whlcR1••111r 1£ euatur far �111malndll1 of the I euo 'rhe Parde$ agree that such lncre.aseln Bue twnl rtpnt�nts fair and teasonable compen�tton for the addltlonal risk/cons that LeB.or WIii incur by rea$o·n of Lem e's failure to provide !he E1toppe\ Certificate, Such lntfea59 In Bast Rent.shall In no event constitute a w;lver ol lessee's Oeltn1lt or l:lteach wllh res peel to the lallure to provide the E�toppal Cet'llfltale nor prevent the exercise of any of the other rlRhts and remedies granted hereunder,
(cl If lessor desires to Hnimce, re�oonce,.or sell the PremOOS, or allj' p.a1t thereof, lesse(t and all Guar.intors shall within 10 days after written notice from Lessor deliver to any potentlel lender or purchale!r designated by temr such flnanclal statemenb u may be reuon11bly required by su,h lender or purchaser, locludlng btJt not llmlted to Loute's flnaRelal statement$ for 1he pa.it 3 ��. All such flnanclal statemer1ti shall be received by lessor and such leOOer or purchaMtr In eonfldence anti thall be U$ed only felt the purposes herein set forth, 17, D-eflnltlon of Ler.sor. The term "&Auor" a, used hmln ih1ll mean the owner or owntuat the tlrne In question of the !0Qt1tle to the PremlS<H, or, If this 1, a sublease, of lhe lesue1
s lnlerut In the prior lea$e. In the !!vent of ■ transfer of LailOr's 11th1 or Interest In the Premises or th1s Lease, Lessor shall deliver to 1he transferee or aulgnee {In ca$h or by credit) any \JllUStd Security Deposit held by Lessar. Upon such transfer or a!slgnment and delivery of the Securlty Deposit. as afore�ald, the prior Le�,or $h�II be relleve.d of all l�blllty with respect to the oblleatlons. and/or (ovenants under this lease thereafter to be performed by the Lesior, Subject 10 the foregoing, the obllgatton:s. arld/ot covenanU lfl this Leue to be pMormed by the l,.euor shall be blndlns onty upon the l.eS1or u herolnabove dehned.

18., S•11et1blllty. The lnwlldltyof any provblonof this tease, as dewrn!ned by a court of competent Jurtsdlctlon1 shall ln no w;ry affect the valldltv of any other p,ovlslon hereof.

19. Days. Unless otherwise !peclflea11y Indicated to the contrary, the word "days" as used In this lea-ie shall mean and refer to calendar daY$, 20, Llmlt.o\fon on Uabtnty, The obllgadons of Lessor under th1S l.i2:ue shah not oonstttute personal ohlleations of Lessor, orlU partner$, members, directors, offleers 01 shareholders, and Lenee shall look to the Pn!mlses, and to no other as�ts ol l<mor, fOf the satisfaction of any llabllltY of Leuor with ro�eet to this lease, and shall nnt seek recourse as;ilnstlusor's panners, member,s, di rec tots, officers or shareholders, or any at their personal auetstor such utiriactton. 21, TI me of tuence, Tlme Is ot the essence with respect to the performance of all obllgatlons to be perl'ormed or observed by the Patties under this Leaw-. 22, No Prior or Othf!f Agreements;. Broker Dltd,lmer. This lease contalni allagr�ment$ between lhe Parties with respect to anv matter mentioned herein, and no 01her prior or contemporaneous agreement or und1mtandlna �hall be effecl1w. Lts:sor and Lessee each represents and wa,mnts to the Srekers that lt has made, and Is relying solet�upon, its own Investigation as to the nature, quallty, character and ftnantlal responslbltlw of the ather Party to this lease and u to the use, nature, qualit� and charactet of the Prem bes.. Brokers h�ve no responslblllty with respect thereto or w!lte respect to any default or breach hernof by ell her Par,y. 2i NotlCH
J� 1 �Cid" At�••lrtmt:r,h ♦U nralil-;;tr raq,:l�d or por-ml�od b•; thll LeaH o; appUc,btp la1,, 1l>1Q b■ ln•oi!ldno and mai,•bo doll• oml In p■Flaq (brtiand orb\• GOIIFiOF� Qr A'llyba HIU °''"OtrlJr, cert1ft1d Ct ••aMarcd e,;)I or II $ Postal hti�Clli hpmt t4al� dthpm,■61 pt:tp■lct, Qt byhc,lr11ll•\R1PIMIUIOP, otb'!' om:au. lRd 1hail ho dumadsufficlen&tv o�•on lfSCll'lr'ld-iA-a-mlllPOf IP9'iHCJd 'p 1h11 Pm9t1plrl! li lAI i1ddmt11[ notad JdjaoanltO a P.ll1\l'U181ilt1Ntt on Ulit L•<W) ahalj b111 ,i,,., P1r1/1 zddrocc ford■H ,er; or m,Wne W Pe41ct1 Utll.trR1Rv neiiytJv ,or,Uten no\iceto ,hoo�hor spe,1ty 1 dll'amnt addttss hltnodc:a, e11npl 1hat \ipon teuee'1 ""1RB pore1c!on ofU11 Pt:1P'tl111, \he Pw»lres 1b■ltGon1ttluto I tUQe't Jd#oa1 for"odre II cop•, 9f1hRolltH to 1♦1,or 1PaH 1.:4 emuorsen0')' tnnrmlattd to rucb ?Ui',t9r pull,u >t ,�h 1ddrancu u I atfcrt1a1; from Mme to time hlllnftor � U 1 DI._. of �IQ&IU l,f'i\l ROUct cent b�1,:091itued er$Or1lf1111d 1111111, ,-tun rHCJlpt �eq11eel111d, 1h11t be dHP'ted l}l••on On ltle date of deU,1111111 thomA: ;n \�e �t c�id orlf no dolh•eA·da1, 11 ch own \he pcsts:nark t�e�eon If centlw 10e1dae mall tba notlca 1hall b•do11rned fllven ll �9••� af\uth1 11me h er;ldPIUed 11 '4qUl�tin ,rd m,11od � .. Ith pouaee �p>ld titoti,a, doiirorod bi• llntt�d S1atQt S>epn11 Mall or •"lliAJehl -;;01irLtrtha1 ei11:ar1n11wu JM!'it da•;dalluel')•llnU IHI deemvr;I sb1en 14 hO'l't i?httdt'hitni• of the nme to the PflrlalS'lPtlco or Go1ol1r �hallut dtl�•1tt11db,,, lnnd, or tummlltllldb•J li?Cslmlll) ltan1rqlu!on Gr bytmall ,hall bo dOlltM9ddall-"'�iild 11pun ulual re,olpt 1f I\OoliH le reselt •rf PR t tat rFdJr,1 Sunday gr legrl lwUd1t;. n 1RaU !;111 dUModr&$1ith�d &nlhe �<Utt bu,lrHl day la a Opt10P1 bllitl"lltP4hnr;IIA6 tht fcmeol�g, In order 10 a�,01,:;iio, aAt;Opttons lcae pa�aar1ph Jg� tllt �IQl#:Cti m•1•tbo 1011\ l;iyC:iilr:tlftsdMail {#IU:tn roc,!pt IOQ!lqU11Q),
�-·
E>stprou Mall 1,Jenah1r1 requlrodl, "'"c)" (IIOP)\IUQ rA1ftlH1d) cir IClltll 0U1ut' meU,odoloe•tlllal pro<tlde1 a NIUlpt est;;tbll1hln0,U:1, date U11Pel;lcn 'IIH

14. WilllOrs,
(a) No waiver by Lessor of the Oeh1ullor Dteach ot anyterm,covenant oreondlt!on hereof by lessee, shall be deemed a waiver of any other term, covtmant or condition he:reof, or of any $\lbs�q\lent Dtf11ult ar Bte11ch by Lenee ol the same or of any other term, covenant or condition hereof, LesS<>r's. consl!nt to, or approval of, ;11ny att shall not be deemed to teMder unnecessary lhe obtaining of Lessor's con Jent lo, or approval of, any sul>sequrmt or s.lmllar act by leueo, o, be constroed as the bas.I$ of an w,oppel to enforte the provision orprOYUlons of th� Lease requiring tuch conwnl. (b) The acceptance- of Rent by LeS$OI' shall not bo awat>.�r o, anvoeJault or Breach by lmea, Any paymant by teuee may ba accepted i,-, le nor on actount of monle.s or damages due LeHOf, nolwlthstandlng any qUll!ifying itatemenh or condltlam made by lessee In connection I herewith, which such smtements and/or conditioni 5hall be of no force or effect whatuieve:r unless spotlfteally agreed to ln wtltlng by Lessor al or before 1he time of deposit of such payment. {C) THE PARTIES AGREE'THAT THE T'ERMS-OF THIS LEASE SHALL GOVERN WITH REGARD t'O All MATTERS RElATEDTH.ERETOANO HEREtlYWAI\IE THE PROVISIONS OF ANV PRESENT OR FUTURE STAT UT£ TO THE EXTENT THAT SUCH STATUTE IS INCONSISTENT WITH THI$ LEASE. �Grine 11110 , ttiawulon 1111th a real ••�ate aoenl ree�rdlne 2 Mal am\1 UiilP$i'QIGJI\ 1 l1uccr or I &Ute rhot:ld �f:QM lht 011t1et uod&Uli'nd whottypa 111f a9u;,,1 Fela\l,11\rld9 ar sep�11H1ntallon It h:u o�u, tlH1 aean\orae:ant, In the lnPt)litiOn ltuor and LtHHr 1c;kpowlad1obtl119ad �ced bi,, \ho filsoh�, IA th!( tnnlia�tloA, acfollQ,
�ior't.t9,qt
ut•
A ltuor1
1 lftlllPt 'JAd■r a llttlRQ 'SJOIMOllt'l�th \l:le letroract, ,. the aeeqitferthe l.tmH onh• /l l.a110,1 r 3f18Pf or ,,,baftl'Pl
bl! u,e lol1011tlAQ Jffifi:Aaitl, .. Obll9�Uo,w. T? thf ldff2? r't flduclarvduti,iof ,ttrnoncue, hlle9,1ty,-hc.Mt,,,,,.,nd 104i,a,lt'} IA dt1U1111111o1llh lhe Lauer To eb■ I fJIUIORlt Ult ltcrci'1 (l) Dl!leon, a1141f.G11n of r'13S<lAahlo ,&\llr ?Ad caro In po!Wm.i;11l3Q.�90,ii1'1 du1t111 lbl A d•1W eft,onqst anlit laltdnllrg 3� 900d bli1:l ltl A du�• IQ dl,clo1e ;II htlt known to tbe aeonl m;it11Wlalb1nUecdne U!OU?htCJ ordncii:ablll�of t�I plOpaFt';' tt,,t ifll rot •RQ111n to, on•�lhtq tbCJ dilll!,llnl atteAtlon � ubl91")\>QA
�1
0� th3Pattla( All aee,,, 1, not 91i:llea\41d\o ttllll•ul to either hrt'{ any c;onlcldan;IJI 1,,tOfAliUon ?bl:lqed hGM 1h11 other P:n\f/ urhlch doec PQ\ lnl,ol\,o,\l;ie e dtttl•r ntf11r01 •bOl•O
}()

INITIALS
0 2019AIR C!IE. All Rlshtl Reserved.

StN•27.30, Revised 11·25�2019
la,t Edited: 2/2S/2021 9:53AM

EXHIBIT 1
City Council 26 – 14 4/19/2022
(Ill [ertt7'r A9rnt An ?8MI ClA a1we to 1tt u 3QIIA\ for 11',e I HUG on�· In Oum� ,11,:athlAI ti'M�R<lltll• LtHer'• aa,nt e11tn lf.b•· a13re,emen11be ao•nt "'"'' reea!,,e �,;,m·pe111adon IQ, cerrl;• 11ndnred, tllhtrln tut! er In p;,, f"11m lbe � aatql acllno onlr for 1 LaHee ha; the fQUa,:,1na alti�ati •a ;bl'�,!OA, Al lb, t,, •• ,. A tld11$IIPr" d•rtv'Olf ,,tme,t•me, lnte&III)'. lwnHt>f, l'ld l,;,y;i!tyln doallnl}( utl\h the Lucn lo th, 1,uu o�dth• ,mac: lal Qilieent ol!Ql(IUl 9f ,uEenablq ,wn, 1n� cut In poftolmaAu.1 of tho aaont't d"tlac lbl A Guw Qf boAaU and fair do:iUnB and aood faith (cl A du\¥ to diccto-111 :ill la,:tc kAO .,,. lo tile lQtAI lllUtdally a�ctltiaU•• 1qlueor doclnhlllt, of th• prop1W, l�a, ·�· P(II ho> <A tg, gr l 'lllln Iba dllleu1t 1'4iAl:loR and obtCJM+JOn (If, tho PilFtie, �
......
a9111, II 1101 obnsa;tec:I 10 ,., .. ,1 101W,111 f!a"V�R!/ COAftdeoHl?I lnlo�<na�OA Mtalned bom lht oti,Dr Paitv•••Alcb doatrol lruoh'O tile 1tflrA1a",14 dlltl,Qf 1111 f4'nh. ��lt-U11
(IQ) 4grrt 8rorere1cfoi[ P?'tr ! fffw ond f 1uui, "1 rnal 11&1111 as�Wo, 1ctfae dlre,U,· 1irlhfOMt1ll ;,11• er r,qg�• 111e;l111 llun1•1 nn � �RI
leuor and lhD LtCIH h� 1 litaRU�o11, b I\ QAly: �,t. \ht kn;,wlNe, IAd GTJP&fnt of b�1h 0111 ••nor and the I .,,e. IP l d"':,I l8�1ACV ,1t11a�_on, b�E tl:>t killoo,,tna affir11-1aii ,, o�Ue1ti9nt to both th, LIIUQr JR51 Iha I ';lf.t"' 111" tlQ'felas,,d:111'/ of u1moe1 rn•, IRt19rll¥, l:>Ol1rU"1/ ]p(j IQl/111•/lfl 1h, dt:ilne, witl:i thh'Jr la,sor or tho I ou1111 lblOl!:lor d11tier to the le::or nnd !ht/ ouu at 'lated >bg,'(I In 1ubp1oot.Jph1 0) or(II} ln 19prH11PtlR8 botl:a I tSlnt and leuH, the .i9a111 f'.113\I 1101, 111!1ho1,c lho IPlpren pen11lnlen of 11:aQ rttpG;;liuo A;ir:tv, dlcckiso to 1h11 Olhar Par\',• COAhde11tl•lll'llctm11lo!!1, lnclwdll-1&, bul AOI llrAltedtg, bGIC ,elaliine 10 eh her le5GH't or Ltuor't h11ani.1,1 pc1t1loA, molti?tlon11 bar&3IRIQfl pc,sldo111 or ot1u1r per1onat1nfomlatfon that may lmP�.cl iant,IRcludlRQ I or car's ,,1111--� acupt J �011tt1u thaR t�• lltl.illfl 11rl '" t11see',u1lltlneno,1 topa•1•en1 9RJ11tartban the rent offefJlld Thi abo••• duties of the Jfl'OIRt 1111 r.al ect31Q tnn1actign do ROI roli11tte l ltuor oc Loua� lrnA'l t!>atHPDntib!llh,r topmtoct tholr owcib11warts !ester a11d I a,11e 1hculd nrof::l�/Pllld 11! 11sruo>entt10 amm, thtt U:,et �doq,11tel•1o�p,:a,, lhol, u�dal6'41'ld'nf1 of lhiiJ IF3Rl;IGdOR 6 real e11a1a 011:1...W. I PQHUA q11111Hed \o altt IH abo11t r11al e,11ti1e II lofjll QI li>IC ad•l'co h dOl!rod, CQPSIIII a compahrit proterclonal llo� I 1110, aAd leuoe 1h1:wld 1lrior9� tor1lder oblal•dllg lu ar.Jdcc ft.OP> a cOMpO\Ort pr�I i111c;111te tho lodoial and nato 1a.x Clil111eq11e11,t1 ol a tor1Jt1;ioi\ can bt: wmpl• ar:f uibfect to chan941 lbl Bmkert h3UQ RO FHPCIA,lbUII\' Wllh •iUpQCt '9 lA/ dDhvtt Qf breact> horeat 1>,ia!Uier Par.w lha P'.lrUet 16101 that RO lau15ult CH 01hr lee;il p10Cei!dln9 1r1'10�•ln9 an,; breach g,f dllt>/, 8H9r o, OMlt[IQA ttilaliRQ 10 thll I 831'0! P'J',' Ile bm11u�t l153ln1t a,oker more Ulo!A ona \'Hf aher U"I') "·� Data and thal u�4- liablllty(ineh1dl11g ro,,A c2,1t ;and auurn�(' fau), of .iry ProkQrml!b racpoct to ary l'lth latW'llt and,{o, lesa! procHd109 tb>H 11ot i,wc;aed4htt f111 receP'Cld b';' rud, 'Jroker �1,1m,;an1101b11 loa11· prodded, bou1QU11r, that 1h1 kir111ybg tlrnhaUo'I on e.ich ero�ur'1 llablll\\'4h;t!I no\ be appll'fbkl ,o •A>1 e•o11 n•ene•nn or, riUfol mlt(onduc1 of ,uc:h Broker
jc) Lriuor and U11•11er1a to idertjfv lo llroke11 u •confidrarUat• 3R'f ,omn:unkai.ion GrlrtkltwmtoR 9l•'Or VFokon thal It scn5hta� beronfldenU?I
I 26, No Right To- Holdow,r. L�see has no rl&ht to retain pos�s.s!on of the Pre.mises or any part thereof beyo11d the uplrationor termination of this Lease, tn the event that lessee. holds over, th!H\ the Base Rent shall b<I lnc�ased to 150% of the Bue Rent applltable lmmedlatelypreeedlng the e1r:plratlon or termination.

Holdover Base Rent shall be calculated on monthlybaslt, Nothing (Ontalned hereln shall becoMtrued as con$ent by �sw to any holdlng over by Lessee.

2.7, Cumulative ftem&dles. No-remedy or el�on hereunder .shilU be dee Med (!'(tluslve but shill!, wherevef' posslble, bewmtllallve with all other remedies at lsw or ln equity.
28, Co11enants and Conditions; Ct:anstruettan of Ae;n!l!ment. All pl'O\llslons of this !Aase to be obsetved ot performed by leuee are both covenants. ind conditions.

In tonslfulng this �ase, al! headings and ti ties are for the arn111mlem:e of lhe Parties only and shall not tie ton�dered a part of this Least. Whenever mqulred byth� context, lhe �lngularshcll Include the plural and vice versa, lhls lease shall not be. construed as If prepared by one of lhe Partiet, but rather acwntlng to Its fair meaning as a whole, as If both Parties had prepared It.

29. Binding Eftect.j Choice of ltw, fhltltase ihall be blndlns upon the Parties, their personal representatt�s, $UCcesrors and anl/jl)s and be 8011trniad by the l.iw, of the Staie In which the Premises are located. Any litigation between the �ttie.s hereto conc9mlng this Lem sh-all � lnltlatod In the tOu-ntyll'I which the Premise, are localed. Signatures 10,hts lease aceompllshetf by means of electronic slgnature ar slmllartcthnology i;ha.11 be ltpl and binding,

10. Subordination; Attomment: fton-Ohturb,r1ce,

30.1 SUbordlnatton. Thu leiae and any Option sranted hernby shall be subjeet and subordinate to any ground lease, mortpae, deed ol trus1, or other hypotheCitton or security device (coll�tt.-elv, "Stcur!ty Dtvlre"), now or hereafter placed upon the Ptemhes, to any ind all advances made on the s11curltythereof, and to all ren1:wals, mcdlflcations, and e�tensions there-01. Lessee agrees thill the holders of any such securh.V Devices (I'\ this lease together tefe.rred to as "Lander") 5haH ha\/1! no llablUty or obltgatton to perro,m any of the obllgattons ol Less.or under this Lease. Any Lender may elect to have this tease and/or any Optton sranled hereby superior to the lltn of lts Security Ocvke by giving wrllt@n natl« thereof to tessae, whereupon this Lease and such Options shall be 00:emed prior 10 such Security Device, notwithstanding the relatlve dates of the documentation or rec-ordatlon thernol

30.2 Attamruent. ln the went that teuor Iran.den thli:! to the Prernhes, or the Premlsu ue acquired by another upon the foreclosure or termination of a s«:urfty Device to which this lease 11 subordinated ll) Les�e shall, subject to the non-disturbance provisions of Parag,�pt, 30.3, attom to such new owner, and upon request ent� Into a new lease, containing all of the terms. and provls!ons of lhb lease, with s.uch new owner for lhl:! remainder of thetefffl he,eof, or, at the election of the new owner, this lea�wrn automatl(;)Uy bti:ome a new lease between Lessee and such newCl'Wner, and (II) Lestor shall thereafter be relleved of any further obllgadon$ hereunder and 5uch new9wner $halt assume all of lNsor's obllgatlon$, txceptthat such ntw owner sh.ill not:. (a} be tli:•ble foranv art or omlulon of anl/ prior lessor arwlth re5peet to events occurrlns prior to acquhlt.ion of ownership; ('ol be subJeet to any offsets or defenses wh!c-h lesseemlsht h;wl:!ap!nst any prior lessor1 (c) be bound by prepavmeot of mote: tha» one month's rent, or (d) ht Habk!- for the return of anysec:ur1tydeposlt paid to any prlor l1mor which wu not paid or credited to such MW owner.

30.3 Non-Dl1turbanc•. With re:i.pec.t to Security Crevk:es entl!� Into by leuor 11fter the eii:ecutlon of this Lease, lessee•, subordln1tlon af lh\S, teaie shall be sub tact to receMne II commerdally reasonable non•dlsturba11.e:e ilgreement (a "Non•Dbh1rb1nc1 A,:reement"J from the tender wl\lth Non-Olsbnbance Agreement provides that lessee's po»esslon of the: Preml!lls, and this Lta5e, Including any opttons to eKtend the term Mreof, wlll not be dlnurted so long as lessee ls not In Breach hereof and attQfllS to the record ownerot the Premises, Further, within 50 days after the execution oJthls tease, Ltuor shall, If r@querted by Lessee, use Its oommerclalt,,, reasonable etfurtsto obtoln n Non-Olsturbance Agreement from the holder of anv pre•axl$tlna Security Oelllce whkh ls secured by the Premises, In the event thlt Lessor Is unable to provide the Non•Dlsturbance A11re.ementwlthln S1ild 60d�. then leuee may, at lessee's optfon, directly conuct Lendu and altempt to neeotiale for the eimculfon 1nd delivery of a Non-Disturbance A11reemen1.

30.4 Self•E1ttcuttna, The agreements c:onlillned In thls Paragraph 30 shill be ef/«tive without the e1r:etulion of anv (urther documenu; pro11lded, htlwe...er, that, upon written request from li,ssoror a Lontler ln tonnect:lon with a sale, flnanclna or retlnancins of the Prembes, �iee and Lessor shall execute suth further writings as may be teasonabl� required to �parately document any subordination. attomment and/or Non•Dlsturba-nee Aer-eement provided for herein. 31, Attomoys1 fHS, If aov Partv or Broker brlng$an :ectlon or proceeding lnvolv!ng th<! Premises whether founded In tl)rt, contrac.t l)f equity, 0:r to declilre rlshu 1'a"• the Previllln& Party las hereafter deHned) In any wch pr<>teedln& actlon, or appeal ther,on, 1hall be entltled to roaionobk! attorney,' fe,c Such foe, may INIT!ALS �
© 2019 AIR CRE. Alf Rights Reserved. ' � La,\ Edited: 2/lS/2021 9,53 AM 5TN·27,30, Re,bed 11·25·2019 Page 13 of 16
EXHIBIT 1
City Council 26 – 15 4/19/2022
be awarded In the same suit or recoveted In a sep11rate sun, whelher or not such action or proceedlne Is punued to decision or Judgment. lhe- term, �Pravalllng Perty" ,hall lnciude,wlthoot llmltatfon, a P.lrty or Broker wh:osubstant1ally obtalnsorddtau the rcllel sousht, as t� ca.s.emay M, whether by oomproml$e, settlement, judgment, or the abandonment by the other Party or 01oker of IU claim or defen$e, The atlorneys1 fee� awafd ,hall not be computed In accordance with any court fee sehedute, but shall be suehn to fulty reimburse an attorneys' fee.l reasonably ln,urrod, In addition, Le�or JhaU be entitled to ilttomeys' fee!, co�s and expense, lneurted In the preparation al'ld service of notices of Default and eonsultatton, In connection therewith, whtther or not a tegal aetion Is subsequently commenced In connactlon with ,uch Debult o1 result1ns Breach ($200 Is a reasonable minimum per oci:urrence forsueh serviees and c:onsultatlon), 32, Leu or's Ace an: Showlng Prcimtsmi Repair,. Leuor and Lem r's agents shall havt 1he right to enter the PremliM at any t1mt, IA the caS(I of an emergency, and otherwlse at reasimable times after reasonable prior notice for the purpose of showing the same to prospec\ive purthaMlts, lenders, or tenants, and making such alleratioru, repair!, lmprovement5 or 1ddlt100$ l0 the Premlse5 as Lessor may deem nac.esnry or deslr.ible and the el'.Qc:ting,uslng and mallltaln\na of utlllt1es, Jervlces, pipes and conduits through the Premises and/or other premises as long bS there !!no material adv1me effect on Lessee's u,e of the Premises, All such activltle:1 shall be without abatement of re11t or llablUty to lessee, ll, Aucttons, le Hee shall not conduct, nor permit to be conducttd, any auctwn upon the Preml�s without Lcmor's pr\orwrltten consent. Lessor shall not b<l obligated to ekerclse any standard of reasonableness In determining whether to permit an auction . .)4, Signs. lessor may place on the Premises ordinary "For Sale rt signs al any time and ordinary "For Lea sit signs during the last 6 months of the term hereof. f:xcQpt for ordinary 1
'for sublease" $l8flS, Les.see sh;ill not place any sign upon the P,eml$es without Lessor's prior wrltten consent. All slgni mun comply wlth all Appllt11ble Rec:iu1re01ents,
35-, Termination/ Mergf!r, Unhm spl!ciflC1111V stated 01herwlse In wrltlne by lessor, the voluntary or other surrender of this-Lea so Uy Lessee, the mutual termination or cancellation hereof, or e termlnadon hereof by Lessor for Breath by Lenee, shall 1utomatfcallytermlnate any subkt15e or leaser estate In the Premises; provkfed, however, that Lessor may eleci to continue any one or all existing subtli!nanclQS, Leuor's failure within 10 days fo\lowtns•nY such event to elect to the contrary by w1ltten notice to the holder of any such lesser Interest, shall constitute l.euor's oleetfon to have rnch event tonstitute the termination of such Int era.st.

36. Con.,enu, All requests for consent shall be In wrlttn11. E11cept u olllt;!twlso provldC!d hettin, wherever h-1 this least the comellt or a Party b required to an act by or for the other Party,such consent Sh;II not be unreasonably wllhhtld or delayed. Lessor', actual reasonablec.os\5 and l!llpenses (lncludlna but not limited to arehltecu', attorneys', ens!newt' and other consultants' fees) incutred In the consld!!ratlon of, or response to1 a request by Lenee fot any Lessor con�nt, lncludlng but not Umlted to ton!ents to 1n asslsnment, a �ubtetUng or lhe. presence or use of a Haiardou,Subs11nce, shall be paid by Lessee upon receipt of an lnwlce and supportlng documentation therefor, \.Amor"scoment to anv act, assignme nt or subletttne shal not constitute an acknowledgment that no Default or Breach by leuee of this lease e-15\$, nor shill! such consent be deemed a waiver of any then existing Dtfauit or Breach, �ept as m�y be otherwise spedfltalty stated In writing by lesw at the time of such consent, The fallurt to spe.tlfy herll:ln any partkular condition to leuor's cOl'lsenl shall not preclude the !mposltfon br Lessor at the time of con�nt of such further or other conditions aure then re.uonable wHh n1ferenee to the parttcul11r matter for which consent 1$ belngslven. In tht event that either Party disagrees with any d�termlnation Made by the-other hc«lunder and reasonably requests. th, reasons for such determination, the determining pairty shall furnish lts rul-Gfls In writtng and In reasonabte detallwlthln lO buslness day, followlng $UCh request,

37. Guarantor.
l7.1 E11ecutlon. The Guarantou, lfany, lhall each eK«ote a guaranty In the form most recently published BV AIR CllE, and och such Guarantor shall have the same obUgatlons as L,uee undl!r this lease.
a1,2 Oetautt lt $hall constltutt a Oef.1ultof the Lessee If any Guarantor falls or refuses, upon 1equest to provide: (&)evidence of the CtXP.CUtlon of the suaranty, lncludlnt the authority of tht p;uw signing on Guarantor's behalf to obllgatt Guarantor, and In the ta Si! of a corporate Guarantor, a CQrtUled (Opy of a resolution of Its board of directors authorizing the making of 1uth guiu.inty, (bl turrent ftnanclal statements, (c) an Estoppal Cert\fl�te, or {d) written cont1,m,t1on that the guaranty Is stlll ln effect.
38, Quiet Possession. Subject to payment by Lrnee of the. Rent and p1J:tformance of il!I of the coven\1nts, conditions and provision� on Lem·e's part to be observed and performed under this Lease, Lessee shall h1vaqute1 posseuron and qulet enJoyment of the Preml!et durlna lhe term hereof.

39. Optiom, If Lessee Is granted' any Option, as defined below, then the fallowlno pro\ilslons shall apply. 39,1 Oeflnltlon, "Option" 5hall mean: (al the rlli:hl to extend or reduce the term of or renew this !Rase or to e11.tend or reduce lhe lermof or renew any k>ase that lessee hi', on other property cf Lessor; (bl the right of flrst refuul otflr$t offer toleate elther the Premises-or other property of lessor; (cl the right to purchase, the rlght of Rrsl: offer to purcha$e or thll rlshtof fir� N!'fvsal to purch11se th!! Prnrnlses or other property of Les�r, '39.2 Options Pet!onal To OrlJlnal Len�. AnV Option granted to lessee ll'l um Lease Is peNional to the original Lessee, and can Mt bft asslgn&d or wirclsed bv anyon, other than uild orlglnal Lessee ind onlywhlfe th-e orlglm:il Lessee Is Ill full pouesslon of the Premises end, If raques1ed by Lessor, Wllh Less ea certifying I hat Lessee ha, no Intention of thereaftef assigning or subletting,

39.3 Multiple Options. In the event that Leuet has any multiple Options to en end or renew thlt lea�, a bt\erOptlon cannot be e-iierclsed unle» the prior Options. heve beenvalldly e,mclsed,
39,4 Effect of Default on Options,
(a) t.euoe shall have no right to 11-nrcise an Option, ll)durins the perlod commenclng with the giving of any notice of Default and COl'ltlnutng untllsa!d Oefault Is curtd, (111 during the period of time any Rent Is. unpaid (without regard to whether notltethereof Is gtven Luste}, (nil during the time Lenee Is In Breach of this lease, or (II,) In the event that �me has been given l or more notltes of st!pnato Default, wheth11ror no1 the Oefaulti are cured, during the 11 month period Immediately preceding the &erclre of the Option.
(bl The period of time within whieh an Option may be eicercl:sed shall not be extended or enlarged by tea son of Lessee's lnabillty to �rdse anOptloll betauu� of the provisions of Para mph 3�.4(a),
(c) An Option shaM termln1te and beof no further force or effoc-1, notwithstanding Le1see's du�and timely tMUcl$e of the Option, If, after lUch eltlrclSe and prlOr to the commenceme.nt ofthe ax1ended tertn orcompletfon of the purchase, (I} L,mee falls ta pay Rent for a petlod of 30days after such Rent becomes due (wtthout anv necesslly of Ltssor to £Ne notke thereof), or (U) if le·U!!tl commits a Bniach of thl,s. leue,

40. Mlitfj)ht 9ulldln8$, Jfthe Preml$es ar11 a part of a group of hl.llld!ngs.controlled by Lessor, Lessee agrees that ltwlllablde by and conform to all reasonable rules and te11ulatfons which Leuor maymak'lfrom ttme to time for tho managtment, safely, and care ofsald proJ)ertles, includ!ng the c1rc and cleanllnen of the Qrounds and
W:.
rncluttlns the parking, k>adtne t1t1d unloading of vehltles, and to tiU!G Its employee�, supp Hers, shippers, c-ustomeu, contractors and lnvltus to so abide and ""' ,1,0 •sr•es to p,v IU fair ,ha,e of common expenses lncu,red In <onoect1on w;(h such rules and resulatlon• INITIALS � © 20l9AIR CRE, All Rights Reserved, lnst Edited: 2/25/2021 9:53 AM STN-21.301 Revised 11-25-2.019 PSie 14 of 16
EXHIBIT 1
City Council 26 – 16 4/19/2022
41, Security M1Huru. lessee hereby acknowledges that thC! Rent p.y;ible to tes.sor hereunder does not Include the cort orsuard service or other security meuures, and that Less.or shall have no obl igation whaUoever to provide same, lessee auumes all responslbllltv for lhf protl!ctton of the Premises, lusee, Its agents and Invitees ind thalr properw from the 11cb of thlfd partle$, 41, AaserutlonJ, lessor reserves 10 Itself the right, from time to time, to gra nt. without the consent or Jolnder of Leuee. such easements, rights and dedlcitlons that Lessor deems necessary, and tocau$e the recordatton of parcel riups and restrictions, �o loos as such e-a$9ments, rlghu, dedication,, map$ and restrictions do not uMeuonably ln1e-rlere with thl!use of tl1t>Premhes by Leuee. Les.ee asrees to sign any documents reuonably requuted b� Lusor to elf11.ctuate any wch usem&nt rlghu, dedkatlon, map orra,trlulons,
43, Performnnce Under Pr0tmt, If at any tfme ti dl$pute Jhall arise as to anv amount or ,um of money to be paid by one Party 10 the olher under the provblons hereof, the Party against whom the obUgalfon to pay the money Is as�erted $hall have the right lo make payment Hund er protest" and suth payment �hall not be:
raaarded u a voluntary l)!olyment ·and thtre shall survive the right 011 the pat\ ol s,1ld hrty to lllltltute suit ror ree0¥'f!ry of such sum. If It shillt � ad)ude,ed that there was no legtl obli9atlo11 on the part of said Party lo pay such sum or My part thereof, S-ald Party shalt be entitled to reeover 1uch SUM or so much thereof aJ It was not legally required to pay, A Party who doe5 not lnlttate suit for the recoverv of s:ums paid "under protest• within 6 months shall be deemed to ha\lf! we!ved Its right to protest suth payment,
44, Authority; Muttlple Parties; Eocutlon,
(a) If either Party hereto Is a corporatton, trust, llmlted llablllty eomp&ny, partnenhlp, or similar entity, each lndlvldUill fllCf!tUtins this Lea� on behalf of such entity 1epruents and wart.ants that he or she lsdulv authorlJ:ed to execute and denver this Laase on Its behalf. Each Party th all, within 30 days after rtquest, dellffl to the other Party satbfat1o,v evidence ofsueh authority, (b) If this Lease Is executed by more than one Pfrson or entll'( as •tesiee", each sueh f)tl11on or erufty shall be jointly and severalty Habit: hereunder, n ls agreed that anyone oftM named lessees shalt betmpowered to @Kl!.CUte anv 1mendment to this Lease.or other document andllary thereto and bind all of the named Leuett, and Le:uor rnay Nllyon the same as If all of the namei:I Lessoos had executed such document. (c) This L£!ase may be executed by the Parties In counterparts, each of which shall be deemed an orlglnal and aU of whlth tot1,ether shall connnute one and the same Instrument.
4S. Confll<:t, My connlct betw«!n the pr!nted pro'llsl0n$ ofthli LetJse and the typewritten or handwrltten provhkms shall be controlled by the typewritten or handwritten prOYlslons, I

46. Offer, Preparation of thll Lent by e1the1 Party or their a sen, and submlst.Jon of nme to the other Party shall not be deemed.an offer to lease to the other Party, This lease Is not Intended to be binding until executei1 and dellvere.d by all Parties hereto. 47, Amendments, This lease may bl:! modified only In Wl'ltlns, signed by the Partfes.ln Interest at the time ol the modlftcatlon, ,u long u they do not materlally cllange Lessee's obllgations heieunder, Lessee agtees to makt such rea$onablt non•mo11elary modUlcatioM to this Lease as may be reawno1bly requlred by a Lender In connection wltl\ the obtaining of normal flnanclns or reflnanclna of the Premises.. 48, Wal�r of JuryTrlal, TffE PARTIES H£R£BV WA'Ne THEIR RESPECTIVE RIGHTS TO TRIAL BY JUftV IN ANY ACTION OR PROCEEDING tNVOLVING THE PROPER TV OR ARISING our OF THIS AilREEMENT.
�9. Arbitration of Disputes, An Addendum requiring the Arbltra1lon of alt disputes between the Parties and/or srokeN arising out of this ltilSe D I� !;21 Is. not attached to this Lease.

SO. Ac:cenlbU\ty; Amittlcans with tJlsablUtto!Att,
(al The Premises/
� ha11e not underaooe an intpectlon by I CQrttfled Aeceu Spedallst jCMp), Note: A O!rtlfttdAcuss Spt<ialist (CA.Sp} can Inspect the subject prf!mlws and tl@lerrnltu? whether I.he subject premls.11l C(ll'rtply with all of the appllcuble conJtruetiOl\•tthned ac<esslbillfy slandards under state: law. Although state law does not require a CASp lns.pe<tlon of the subject premises, the i:omme1clal property 0\111\er or lessor may not prohibit the leu� or ttnant from obtalnlne a C/\Sp ll'lspectlon of the �ubject premises for thfl occupancy or poUndal oo:upanc:y of the lessee or uinant, If 1eq1mted by the les�e Cf tenant. The partros fflall mutually aaree on the ;mansements fM the time and manner of the CASp Inspection, the payment ol the fee for the CASplnspection. and the tost ot ma kins any rep;ilr, nece:smv to correct 11lolatlons of construction-related actesslblllty standardi within the premises.

D have-unde.rgone an Inspection by a Certthed Accessspec\allst !CASPI lnd It was determined that the Premkes met all applk:able construr.tton-related atte.sslblllty standards pursuant to Calllomla Olll Code §S5,51 et seq, leute acknowledges that II rec.eive.d a copy of the rupactlon report at 1-ean 48 hours pr lot to exetutlne this Lease and asrees to keep such rt port conlldenl1al, D kGW? undergone en 11'\SJ":Ctlon by a Certlft� Accen SpedaHU (CASp) and It was determined ttrrt the Premises did not meet all appllcablo constructfan•related acce.sslbHl\y standards pun;uant to Ca!lfomla CIVIi Code §55.Sl et seq, less2e admowledees that It received a copy \'If the ln$pectlon report at least48 hours prlor lo exetuune, this lease and agrees to keep su(h report conftdenttal eic«ipt a, necesury to <::Olllplete Jepatrs and correcttoos. of violation$ of construction related accu1ibillty standards.

In the event that the Prelliises have been Issued an lnspettfon report by a CASpthe Lessor shall provide a, copy of the d\$llbilltV acc�SJ. irispec.tlon certiflc-te to lessee within 7 days of I he execution of t.hlSLose.
lb) Since complfa/'IC� with the Americans wllh DlSilblllties Aet (ADA) illnd other state ancl local aeces1lbllltv statute1 arede:pendent ur;cn Lessee'sspetlhc us.e of the P�mlses, Leuor maku rio warranty or tl!presentatlon as to whether or not the Premises comply with AOA or any slmUar legls,Gtlon, In the Qvent thal Lessee's use or the Premlses requr1es modlrii:auons or addlttons to the P1eml$es ln order to be In compl11nce with ADA or other acte.ssibU\ty statutes, Lessee agrees to make arr•/ sud\ nete!.sary modificatiMt and/or additions at lessee's eicpe1ue, LESSOR ANO LESSUHAV£ CAREFULLY READ ANO REVlfWEOTHlS LE ME.AND EACH TERM ANO PROVISION CONtAINED liEREIN, AND BY TttE EXetu'TION OF THlS LEASE SHOW lllEI� INFORMED AND VOLUNTARYCON$ENT THERETO, TI-IE PARTIES Ht RE BY AGRl!E tttAT, AT THE TIME ntl:S LWE IS EXECUTED, THE TERMS OF THIS LEASE AR£COMMtRCIA.llV l\fASONABLEANOEFffCTUATE THE tNlENT ANO PURPOSE Of WSDR AND I.E$SEEWITH ltESPECflOTHE PIIEMISES, rotmON: NO R£PREUNTATION OR RECOMMENDATION 15 MADE BV AIR Cfl.E OR B � ANY BROKER AS 10 THE LEG.Al SUFF!CIENCY, LEGAL EFFl!:O, OR TAX INITIALS �
© 2019 AIR CRE, All RIBht, Re,erved. Last Edlted: 2/25/2021 9:SlAM STN•21.30, Revi,ed 11-25·2019 Pase 15 of 16
EXHIBIT 1
City Council 26 – 17 4/19/2022
CONSIQUINCliSOF 'n415 LlA$f: Ofl 'ml TAANSACTl()N mwmat rt'Rlll\i'h, nt£ MRTIU A Re URGEO TOI 1, SUK ADVICI OICOUN$fl!IS TO WI lf<IAlANOTAK CONSEO,IJINCU DP THIIU/1$� 2, REIAIN APPROPRIAT£ CONIUlTANl!T<>RIVII.W AND«'IVIMIGAll! IHOCONDITIONOI THI Pa!MIIH, IAIQ INVl!STIGATIOIUHOUUIINCWDI OUT NOT e, llMIUbTQ: THI POHIB!.t PRel!NtlOPlti\lARbOUI SIJPSTANCI!, THI ZONING OF THI PREMISE$, THI ITIIUctURAllNTIGRITV, THI CONDrtlON Of THI ROOf AND OPlMTINI/ $\'STIW, AND THI Suttll.ill!V OP TIii PRIM�IS IOR lUSfl'! ltlltNDID use.

WAl<IIINOt IITHI Pll!M1$ESARIIOCAT£D INA IW'!OTHIR THANCAUFORNIA,CIJ\TAIN PROVIIIONSO>THE (WBMAV NUDTO DIR!V�IOTO tQMPLVWITH THIIJ\WI Of THE STATI IN WHICH THIPRIMlll'S ARUIOCAno.
lhe,artlH hereto have el(tt:11\e� this wase H the plaet �ftd ontha date& weclAad abt:WG tMlr rasptctlvo1lgn1t1.1r&1.

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© 1019 Am CRE, All Alghts Re,er,ed,
STN-27,ao, Rovl!ed lHS-20\9
!.>st Edited: 2/2$/2021 9:53 AM
Page�6 of16
EXHIBIT 1
City Council 26 – 18 4/19/2022
Lessee City of Santa Ana Signature Page to:

Addendum to
Standard Industrial/Commercial Single-Tenant Lease - Net For Certain Premises Commonly Known as
1815 East Carnegie, Santa Ana, California 92705
March 1, 2021
�
CITY OF SANT A ANA:

City Manager
APPROVED AS TO FOR.lVI:

Sonia R. Carvalho
Ci tY,._4'tto111ey
I 'I I\ ., ./l
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vi'\ r y,,
Ryan1 0)-l.odge
Assistant City Attorney
ATTEST:

A <!
Daisy Gomez
I erk of the Council
RECOMMENDED FOR APPROVAL:

Steven Mendoza
Executive Director
Community Development Agency
EXHIBIT 1
City Council 26 – 19 4/19/2022

ADDENDUM TO

STANDARD INDUSTRIAUCOMMERCIAL SINGLE-TENANT LEASE-NET

FOR CERTAIN PREMISES COMMONLY KNOWN AS
1815 EAST CARNEGIE, SANTA ANA, CALIFORNIA 92705
MARCH I, 2021
This Addendum (this "Addendum") is being executed concurrently with and Is made a part of that certain lease titled ''Standard Industrial/Commercial Single-Tenant-Net" dated March I, 2021 (the "Form Lease") by and between Dyer 18, LLC ("Lessor") and The City of Santa Ana ("Lessee" and sometimes hen,in the "City") and this Addendum shall control in the event of any inconsistency with the provisions of such Fonn Lease, The Section and Paragraph Numbers of this Addendum are new added Sections and Paragraphs to the Form Lease. As used herein, the "Lease" shall mean the Form Lease as supplemented and amended by this Addendum. Unless otherwise defined in this Addendum, any defined word contained in this Addendum has the same meaning as it is defined in the Fonn Lease.

51. Intentionally Omitted.

52. Rent Commencement. Notwithstanding anything to the contrary set forth in this Lease, Base Rent shall commence, and the first monthly payment of Base Rent shall be paid, 011 the Commencement Date. If the Commencement Date is not the first day of a calendar month, then such first monthly payment of Base Rent shall be in an amount equal to the aggregate of a prorated Base Rent payment (based on a 30 day month) from such day to the end of that calendar month plus the amount of the full Base Rent payment for the next consecutive calendar month.

53. Rent Adjustments. On July I, 2021 ("First Rent Adjustment Date''), the monthly Base Rent payable under this Lease shall automatically incn:ase by 3.0% from the monthly Base Rent amount due and payable during the Immediately preceding year. Thereafter, on each anniversary of the Firnt Rent Adjustment Date (each being a "Subsequent Rent Adjustment Date") during the Term hereof, the monthly Base Rent payable under this Lease shall further automatically increase by 3.0% from the monthly Base Rent amount due and payable during the immediately preceding year from the then last immediately preceding Subsequent Rent Adjustment Date.

54. Lessee's Improvements. Notwithstanding anything to the contrary set forth in this Lease, all Utility Installations, Trade Fixtures and Alterations, including Lessee Owned Alterations and/or Utility Installations, shall be free and clear of any and all liens and/or encumbrances in favor of any third-party and shall be available, without limitation, to secure Lessee's faithful performance of its obligations as set forth in this Lease. Upon any default or breach of this Lease by Lessee when:by Lessor elects to terminate the wse, such Utility Installations, Trade Fixtures and Alterations, including Lessee Owned Alterations and/or Utility Installations, shall remain upon and be surrendered by Lessee to Lessor with the Premises, subject to Lessee's right to remove the same, at Lessee's sole cost and expense, as set forth below. The Premises shall otherwise be returned to Lessor in the same condition as of the date of this Lease, reasonable wear and tear excepted. After the Commencement Date, and thereafter from time to time at the reasonable request of Lessor, Lessee hereby agrees to execute certain security instruments, including, but not limited to, a UCC Form-I or other tiling, in order to create and/or perfect Lessor's security interest in such Utility Installations, Trade Fixtures and Alterations, as set forth herein, which security instruments will be prepared by Lessor and submitted to Lessee, and recorded by Lessor, at Lessor's sole cost and expense. Upon any termination or earlier expiration of this Lease not resulting from the default or breach of this Lease by Lessee, all Utility Installations, Trade Fixtures and Alterations, including Lessee Owned Alterations and/or Utility Installations, located in the Premises shall remain upon and be surrendered by Lessee with the Premises, subject to 11926441.1
EXHIBIT 1
City Council 26 – 20 4/19/2022

55. Lessee's right to remove the same, at Lessee's sole cost and expenses, as set forth below. The Premises shall otherwise bo returned to Lessor in the same condition as of the date of this Lease, reasonable wear and tear excepted, Notwithstanding the foregoing, upon any termination or expiration of this Lease not resulting from the default or breach of this Lease by Lessee, Lessee, at Lessee's option, shall have the right to remove any such Utility Installations, Trade Fixtures and Alterations, including Lessee Owned Alterations and/or Utility Installations, at Lessee's sole cost and expense, provided that (a) all such Utility Installations, Trade Fixtures and Alterations, including Lessee Owned Alterations and/or Utility Installations shall be removed by Lessee within IS days after such termination or expiration of this Lease and (b) Lessee shall, at its sole cost and expense, repair any damage to the Premises caused by such removal.

Lessor's Obligations. Notwithstand ing anything to the contrary set forth in the Lease, Lessor shall not be required to (a) remediate or rectify any future non-compliance with governmental regulations or (b) provide ADA upgrades to the Premises or the Project resulting from the specific and unique use of the Premises (including without limitation, the Shelter) by Lessee or resulting from any Utility lnstallations, Trade Fixtures and Alterations, including Lessee Owned Alterations and/or Utility Instal lations, or other alternations or improvements to the Premises, made by Lessee or Lessor, unless such remediation or upgrades are required as part of the "Work" ,w set forth in. Section 62 herein below prior to occupancy of the Premises and to the extent required to permit Lessee's occupation and use of the Premises and then, such costs shall be included as part of the "Cost of the Work" as set forth in said Section 62 below. Except as otherwise specifically set forth in this Section 5 5 below, Lessor shall not be required to make or incur any capitnl expenditures or commence or complete any remediation of Hazardous Subslllnces or any non-compliance with governmental regulations now In effect; provided, however, the foregoin-g is not intended to and shall not impose upon Lessee or Lessor any obligation to remediate any Hazardous Subsmnces located on the Premises as of the date hereof unless such remediation is required with any work, improvements or Alterations made or being made by or on behalf of Lessee or Lessor to the Premises prior to occupancy of the Promises to the extent required to permit Lessee's occupation and use of the Premises and then, such costs shall be included as part of the "Cost of the Work" as set forth in said Section 62 below, Furthermore, notwithstanding anything to the contrary set forth in the Leose, it is the inlent of Lessor and Lessee that Lessor shall have no responsibility or obligation whatsoever, for the maintenance, repair or replacement of all or any portion of the Premises, Building, or Project, including, without limitation, the roof and the HV AC system, such responsibility and obligations being that of Lessee. Lessee shall properly use, operate and safeguard tho Premises, including, if applicable, any landscaping, furniture, furnishing and appliances, and all mechanical, electrical, boi lers, refrigeration equipment, gas and plumbing fixtures, HY AC and other building systems, and smoke detectors and fire alarms, and keep them ard the Premises clean, sanitary and well venti lated and all drains free from blockages or stoppages. Lessee shall be responsible to pay for all utilities, sewer charges and any roof repairs caused by Lessee's use or misuse of the roof or otherwise. Lessee shall properly insure all of the Premises and all of Lessee's and its guests', patients' and invitees' personal property. Notwilhstanding anything to the contrary set forth in this Lease, Lessee is solely responsible for any and all upgrades to the existing HVAC system (including, without limitation repair, replacement or additions) and any current repairs or replacements of the roof to accommodate and permit Lessee's use of the Premises as a Shelter and its required occupancy and usage of the Premises, all of which shall be completed prior to Lessee's opening of the Shelter at the Premises, at Lessee's sole cost and expense and then, such costs shall be included as part ofthe "Cost of the Work" as set forth in said Section 62 below; provided, further, Lessee hereby affirms and agrees that (a) the current HV AC system in the Premises is acceptable to Lessee in its current condition, (b) the roof is acceptable to Lessee in its current condition, and (c) the current structural portions of the Premises are acceptable to Lessee 2 12926447,I
EXHIBIT 1
City Council 26 – 21 4/19/2022
in their current condition Nothing in this Section SS shall be deemed or construed as modilying or amending Lessee's obligations for the regular and timely maintenance and repair of the Premises, roof and HV AC system,

56. Neighborhood Conditions. Lessee represents and warrants to Lessor that it is aware of neighborhood or area conditions, including schools, proximity and adequacy of law enforcement, crime statistics, proximity of registered felons or offenders, fire protection, other governmental services, availability adequacy and cost of an speed-wired, wireless Internet connections or other telecommunications or other technology services and installations, proximity to commercial, industrial or agricultural activities, existing and proposed transportation, construction and development that may affect noise, view, or traffic, airport noise, noise or odor from any source, wild and domestic animals, other nuisances, hazard or circumstance, cemeteries, facilities and condition of common areas, conditions and influences of significance to certain cultures and/or religions, and personal needs, requirements and preferences of Lessee, 57, Condition of Premises. Notwithstanding anything to the contrary in the Lease, Lessor shall deliver the Premises in its current "as is" condition as of the date hereof, and Lessee shall, and does hereby, accept delivery of the Premises as of the date hereof ("Delivery Date", "Effective Date" or "Commencement Date"), Lessee shall provide Lessor a copy of Lessee's certificate(s) of liability insurance concurrently with the execution hereof; provided, however, the failure to do so shall not extend the Delivery Date. The Premises are hereby leased to Lessee "as is", without representation or warranty by the Lessor (except as otherwise expressly provided in this Lease), and Lessee hereby accepts the Premises in the condition thereof existing as of the date hereof subject to all applicable zoning, municipal, county, state and federal laws, ordinances, rules, regulations, orders, restrictions of record and requirements now or hereafter in effect during the Tenn (collectively, "Applicable Requirements", "Applicable Laws" or just"Laws''). Therefore, notwithstanding anything to the contrary set forth in this Lease, Lessee represents and warrants that Lessee has inspected the Premises, and that Lessee is familiar with tho general and specific condition(s) of the Premises and that Lessor shall have no responsibility or liability (except as otherwise expressly provided in this Lease) with respect to the general or any specific condition of the Premises or any system (Including, without limitation, HY AC, electrical, plumbing, refrigeration and fire sprinkler) and that Lessee represents and warrants that, except as expressly set forth heroin, Lessee is acting, and will act only, upon lnfonnation known to, or obtained by, Lessee directly from Lessee's own knowledge and inspection of the Premises (except as otherwise expressly provided In this Lease). Except as otherwise expressly provided in this Lease, Lessor hereby makes no claims, representations or warranties as 10 the suitability or lack of suitability of the Premises for any proposed or intended use, or availability or lack of availability of (a) permits or approvals of governmental or regulatory authorities, or (b) easements, licenses or other rights with respect to any such proposed or intended use of the Premises or (c) any condition of the Premises, and the availability or lack of availability shall not affect the rights or obligations of the Lessee hereunder. Therefore: AS A MATERIAL PART

OF THE CONS ID ERA TJON FOR THIS LEASE AND THE AMOUNT OF RENT TO BE

PAY ABLE HEREUNDER, LESSEE AGREES TIIA T, EXCEPT AS OTHERWISE

EXPRESSLY SET FORTH HEREIN, LESSEE LEASES AND ACCEPTS THE PREMISES ON AN "AS IS" AND"WHERE IS" BASIS, WITH ALL FAULTS. EXCEPT AS OTHERWISE

EXPRESSLY SET FORTH HEREIN, NO WARRANTY, REPRESENTATION OR GUARANTEE OF ANY TYPE (EXPRESSED, IMPLIED OR STATUTORY, WRITt'EN OR

ORAL) HAS OR IS MADE BY LESSOR WITH RESPECT TO THE PREMISES, INCLUDING, WITHOUT LIMITATION, AS TO ANY OF THE FOLLOWING: (I) FITNESS FOR ANY PARTICULAR PURPOSE, (II) MERCHANT ABILITY, (Ill) CONDITION OR

WORKMANSMIP, (IV) ABSENCE OF DEFECTS OR FAULTS, (V) PRESENCE OR 3 l29l6'147.l
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ABSENCE OF HAZARDOUS OR TOXIC SUBSTANCBS, (VI) OPERATION OR

PERFORMANCE OF THE PREMISES OR SYSTEMS THEREIN OR THE HABITABILITY

OF THE PREMISES, (VII) COMPLIANCE WITH LAWS, ORDINANCES, RULES OR REGULATIONS (FBDERAL, SATE OR LOCAL) and, fNCLUDING, WITHOUT LIMITATION, THOSE RELATING TO HEALTH, SAFETY, AND THE.ENVIRONMENT, AS

THEY MAY APPLY TO THE CURRENT CONDITION OF THE PREMISES OR LESSEE'S

INTENDED USE OR (VIII) ANY GOVERNMENT LIMITATION OR RESTRICTION, OR ABSENCE THEREOF, PERTAINING TO THE PREMISES. LESSEE ACKNOWLEDGES

THAT LESSEE HAS ENTERED INTO THIS LEASE REL YING UPON ITS OWN

INVESTIGATION OF THE PHYSICAL, ENVIRONMENTAL AND COMPLIANCE

CONDITION OF THE PREMISES AND THAT LESSEE IS NOT NOW RELYING, AND

WILL NOT LATER RELY, UPON ANY REPRESENTATIONS AND WARRANTIES MADE

BY LESSOR OR ANYONE ACTING OR CLAIMING TO ACT, BY, THROUGH OR UNDER OR ON LESSOR'S BEHALF CONCERNING THE PREMISES. Lessee is familiar with the Premises and their suitability for Lessee's Intended use, All documents which have been given to Lessee by Leasor have been delivered as nn accommodation to Lessee and without any representation or warranty as to the sufficiency, accuracy, completeness, validity, truthfulness, enforceability, or assign ability of any of tlte documents, all of which Lessee relies on at its own risk.

58. Release. Lessee shall rely solely upon Lessee's own knowledge of the Premises based on its investigation of the Premises and its own inspection of the Premises in determining the Premises' physical condition. Lessee and anyone claiming by, through or under Lessee hereby waives its right to recover from and fully and irrevocably releases Lessor and its respective members, employees, officers, directors, partners, shareholders, beneficiaries, trustees, liduciories, representatives, agents, servants, ettomeys, affiliates. parent, subsldiaries1 successors and assigns, and all persons, fim1s, corporntions and organizations acting in their behalf ("Released Parties") from any and nil claims that it may now have or hereafter acquire against any of the Released Parties for any costs, loss, liability, damage, eKpenses, demand, action or cause of action arising frorn or related to any construction defects1 errors, omissions or other conditions, Jatent or otheiwise, including environmental matters, affecting the Premises or any portion thereof. This release includes claims of which Lessee is presently unaware or which Lessee does not presently suspect to exist which, if known by Lessee, would materially affect Lessee's release to Lessor. in this connection and to the fullest extent pennltted by law, Lessee hereby agrees, represents and warrants that Lessee reolizes and acknowledges that factual matters now unknown to it may have given or may hereafter give rise to causes of action, claim&, demands, debts, controversies, damages, costs, losses and expenses which ere presently unknown, unanticipated and unsuspected, and Lessee further agrees, represents and warrants that the waivers and releases herein have been negotiated and agreed upon in light of that realization and that, as a material portion of the consideration given to Lessor by Lessee in exchange for Lessor's performance hereunder, Lessee nevertheless hereby intends to release, discharge and acquit Lessor from any such unknown causes of action, claims, demands, debts. controversies, damages, costs, losses and expenses which might in any way be included. Lessor has given Lessee material concessions regarding this transaction in eKchange for Lessee agreeing to the provisions of this Paragraph, The releases set forth above are full and complete releases of all the persons and entities described above of and from any and all liability of any nature whatsoever for all damage, h\iury, loss, expense, Including any consequential expense, loss or damage, whether the same are now known or unknown to tile parties, expected or unexpected by said parties, and all rights under Section 1542 of the California Civil Code are hereby waived and relinquished. Section 1542 of the CM/ Code provides as follows:
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"A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS

THAT THE CREDITOR OR RELEASING PARTY DOES NOT

KNOW OR SUSPECT TO EXIST IN HIS OR HER FA YOR AT

THE TIME OF EXECUTING THE RELEASE, WHICH IF

KNOWN BY HIM OR HER WOULD HA VE MATERIALLY

AFFECTED HIS OR HER SE'ITLEMENT WITH THE DEBTOR
OR RELEASED PARTY,"
Notwithstanding anything to the contrary herein, the foregoing release in this Section 58 is not intended to and does not cover (i) any claims arising from a breach by Lessor of any Lessor's obligations under this Lease, or (Ui) any gross negligence, willful misconduct or fraud committed by Lessor.

59. Reservations. Lessee agrees to consent to Lessor's (i) grant of such easements, rights and dedications that Lessor deems necessary, (ii) recordation of paroel maps and restrictions, and (iii) creation and/or installation of new utility raceways, only if such easements, rights, dedications, maps, restrictions, and utility raceways shall not, in Lessee's reasonable discretion, unreasonably interfere with the use of the Premises by Lessee or otherwise materially negatively impact Lessee's use or oooupntion of the Premises; and in such event, Lessee agrees to sign any documents reasonably requested by Lessor to effectuate such rights so long as such documents do not impose any cost or liability on Lessee which is non-de-Minimis. Lessor further reserves the right to change the name by which the Building or the Project (if any) is called with Lessee's prior written consent which shall not be unreasonably withheld.

60. t.\ssignment and Subletting. Lessee shall have no right to, and shall not, assign, sublet or otherwise transfer all or any portion of the Premises or its rights under and to this Lease without the prior written consent of Lessor, which such consent may be given or denied in Lessor's sole and absolute discretion (and which such consent may be conditioned upon Lessee entering Into a lease guaranty ("Lease Guaranty") in favorofl.essor(upon terms and·conditions reasonably acceptable to Lessor), whereby Lessee guaranties the performance by such assignee. Any assignment, subletting or transfer without such consent shall be a non-curable Default and Breach hereunder, without any prior notice need being given. Notwithstanding the foregoing, Lessee shall have the right to enter into one or more agreements (collectively, with any extension, renewal, amendment or replacement thereof, the "City Agreements") with an established third party operator of similar situated homeless navigation centers as the Shelter ("Third Party Operator), provided, however, that Lessee shall have first provided the name of such proposed Third Party Operator, and the tem1s of the City Agreements and provided further, that no such City Agreement shall modify or amend Lessee's obligations under this Lease. 6 l. Insurance. Notwithstanding anything to the contrary set forth in the Form Lea,e, Le,see shall carry and maintain, at its sole cost and expense, the following insurance: (i) Commercial General Liability Insurance (occurrence form) including coverage for death, bodily injury, with coverage for vandalism and malicious mischief, broad fonn property damage, contractual liability, owner's proteetive, host liGuor liability ond products/completed operations with coverage litnits as reasonably required by Lessor from time to time, but in no event less than Five Million Dollars ($5,000,000.00), combined each occurrence and in the aggregate insuring against any and all liability of the Lessee with respect to the Premises and all areas appurtenant thereto or arising out 5 12926447.l
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of the maintenance, use or occupancy thereof (Lessee may satisfy any portion of this requirement with umbrella liability coverage); (ii) Insurance covering any and all improvements, including Lesseo's furniture, fixtures and equipment and any Alterations permitted hereunder, and all personal property, In an amount not less than their full replacement cost providing protection against any peri l included within the classification "Special Form" including fire, vandalism and malicious mischief; (iii) Automobile lisbility insurance for all motor vehicles operated by or for Lessee, including owned, hired and non-owned vehicles, with minimum combined single limit coverage for bodily injury and property damage as reasonably required by Lessor from time to time, but in no event less than One Million Dollars ($1,000,000.00) for each occurrence, (iv) ful l replacement cost plate glass insurance and business interruption insurance in such amount as will reimburse Lessee for direct or indirect loss of earnings for up to 12 months attributable to all such perils insured against herein or any other cause, (v) Workers' Compensation, including employer's liability insurance, in compliance with all laws governing worker's compensation. If Lessee falls to maintain such insuranr.e, Lessee shall be deemed to have assumed the risk of all losses which would have been covered by such insurance and Lessor shall have no liability for any such losses. All of Lessee's policies of Insurance shall be Issued by insurance companies with general policyholder's rating of not less than A and a financial rating of not less than Class A VI as rated in the most current available "Best's" Insurance Reports and qualified to do business In the State of California. All policies shall name Lessor, its related or affiliated entities, parents, subsidiaries, partnerships,joint ventures, limited liability companies, members, trusts and assigns of every tier (as identified by Lessor), and each of their respective directors, officers, partners, agents, employees, volunteers, members, managers, trustees, shareholders and any successors or assigns of the foregoing. as well as Lessor's management company and ifrequested by Lessor, Lessor's first mortgagee or beneficiary as additional insureds (to the extent Lessor gives written notice to Lessee of the names and addresses of such parties), Certificates for all policies shall be delivered to Lessor prior to delivery of possession of the Premises to Lessee, and thereafter within thirty (30) days prior to the expiration of the term of each such policy, Until Lessee has delivered to Lessor such certificates of insurance, Lessor sltall not be obligated to deliver keys to the Premises to Lessee, and Lessee shall not be entitled to take occupancy of the Premises notwithstanding the fact the Torm ofthe Lease and Lessee's obligation to pay rent hereunder may have already commenced. All policies of insurance must contain a provision that Lessor will receive thirty (30) days• advanced written notice of any cancellation, lapse or reduction in the amounts ofinsurance. All public liability, property damage and other casualty policies shall be written as primary policies, not contributing with or in excess of coverage which Lessor may carry. All of lessee's insurance policies shall contain the following provisions:
severability of interest, cross liability, and contingent liability and builder's risk, with respect to improvements and alterations required or permitted to be made by Lessee under this Lease. The limits of said Insurance shall not, however, limit the liability of Lessee hereunder. If Lessee fails to maintain or procure such Insurance, Lessor shall have the right, but not the obligation, to procure and maintain the same, at Lessee's sole cost and expense. Lessee and Lessor each hereby waive any and all rights of recovery against the other, or against the officers, employees, agents and representatives of the other, for loss ofor damage to such waiving party or its property or the property of others under its control to the e><tent that such loss or damage is Insured against under any insurance policy required to be carried under this Lease, Each party shall, upon obtaining the policies of insurance required hereunder, give notice to the insurance carrier or carriers that the foregoing mutual waiver of subrogation is contained in this Lease, and shal l obtain any special endorsements required at the insuring party's cost, if any. The parties agree in the event ofany damage to Lessee, the Premises, Lessee's property, ancVor any loss to Lessee's employees or invitees each shall resort to insurance coverage prior to asserting any claim or demand against the other or its assets. Nothing in this Section shall be deemed to constitute a waiver by the 6 12926441. I
EXHIBIT 1
City Council 26 – 25 4/19/2022
respective insurance carriers of either Lessee or Lessor of any other remedies available to said carriers

62. Initial Improvements and Work, Lessor, through the "General Contractor" (as defined below), shall construct, furnish and install within the Promises, including outside yard area, those items of construction (the "Work") shown on the "Plans" (as defined helow), It is the intent and agreement of the parties that the Work is comprised of all work (including all hard and soft costs associated with the design and construction of improvements for the Premises, but excluding any costs for furniture, fixtures, Trade Fixtures and other such similar personal property used in connection with the operation of the Shelter) to enable Lessee to furnish and install the Shelter ond comprehensive supportive services, which such facility shall contain sleeping areas, restrooms, showers, laundry rooms, kitchen and storage areas, common areas, and offices, and all other ancillary improvements in connection therewith to enable Lessee to operate the Shelter.

The architectural, structural, grading, mechanlcol, electrical, plumbing, sewer and fire/life safety standards that shall be applicable to the construction required to complete the Work, shall he subject to Lessor's rules and regulations applicable to the performance of the Work (collectively, the "Work Standarda'1, Lessor hereby appoints Jeremy Ogulnick as Lessor's representative ("Leoaor's Representative") to act for Lessor in all matters in connection with the Work. Lessee hereby appoints ____ as Lessee's representative(s) ("Lessee's Representative(•)") to act for Lessee in all matters in connection with the Work and Lessee shall be responsible for all costs authorized by Lessee's Representative(s). All inquiries, requests, lnstn1ctions, authorizations and other communications with respect to the Work shall be made to Lessor's Representative or Lessee's Representative(s), as the case may be, Authorizations made by Lessee's Reprosentative(s) shall be binding on Lessee, Authorizations made by Lessor's Representative shall be binding on Lessor, Either party may change its representatives under this Section 62 at any time by written notice to the other party, but any such change shall be effective only upon receipt by the other party. Notwithstanding the foregoing, in no event shall any direction by Lessor's Representative or Lessee's Representative(s) constitute a change in the terms or conditions of the Lease, unless the Lease is expressly modified in a writing executed by both Lessor and Lessee, All work shall he done pursuant to those architectural, electrical, mechanical, plumbing, life safety and structural drawings and specifications (including all flnishes) for the Work, which shall be approved by Lessor and Lessee (collectively, the "Plans"), Lessee may not make any material changes, modiflcations or alterations in the Plans (collectively, "Lessee Chang .. ') at any time without Lessor's prior written approval thereof which shall not be unreasonably withheld, conditioned or delayed and the cost of any such Lessee Changes shall be added to the Cost of the Work and shall not he included in the "Contingency Amount" (as defined below) and in the event of any such approved Lessee Changes, the Cost Estimate shall he incre&sed by the amount of such Lessee Changes. Lessor may from time to time during the prosecution of the Work require reasonable modifications or amendments to the Plans due to unforeseeable conditions or to the extent changes are required to comply with applicable Laws ("Lessor Changes") and the cost of any such Lessor Changes shall be Included In the "Contingency Amount'' (as defined below), unless It is considered a "Change Order" (as defined below) approved by Lessee, Lessor acknowledges and agrees that Lessor shall be solely responsible for causing the Work to be constructed and maintained, in accordance with all applicable Laws, including, without limitation, the provisions of the American with Disabilities Act, 42 U.S,C. Section 12101 et seq. and any governmental regulations with respect thereto (the "ADA") and other similar Laws. Additionally, to the e,tent applicable to the Work, Lessor shall he responsible for complying with all pertinent prevailing wage laws pursuant to California Labor Code sections 1720, et seq, Lessee shall pay the entire "Cost of the Work", As used herein, the term "Cost of the Work" means all costs and expenses in connection with the design, furnishing, construction and installation of the Work, including without limitation: (a) all architectural, 7 12926441.1
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engineering and consultant fees associated with the preparation of the Plans; (b) governmental agency plan review, permit, license and other fees (including, without limitation, any charges required by any governmental entity or authority having jurisdiction over the Premises); (c) sales and use taxes; (d) insurance costs and expenses; (e) testing and inspecting costs; (t) costs and expenses of material and labor, including without limitation, General Contractor's profit and general overhead; (g) costs and expenses associated with the compliance with applicable Laws; (h) ccsts and expenses of alterations of the Premises and all life safety systems necessitated by any applicable Law; (i) costs and expenses associated with any modification or addition to the Premises or any street or public right of way; (j) all costs and expenses of construction work required to complete the Work; (k) costs and expenses of Lessee signage, if any; (I) costs and expenses associated with the placement of any new, additional or supplemental mechanical, electrical, plumbing or life safety systems on the Premises, including, without l!milation, costs associated with any repair or replacement of any HVAC units or systems, and running piping and conduit to such systems (the location for such piping and conduit shall be selected by Lessor); (m) costs and expenses associated with any Lessee Changes or Lessor Changes; and (n) any outof-pocket costs and expenses incurred by Lessor or Lessor's consultants associated with the review of the Plans, Lessor proposed that the entire Cost of Work would be $8, 500,000 for the completion of the Work ("Cost Estimate"). Any changes to the scope of Work that would increase the "Cost Estimate" must be approved In writing by Lessee prior to commencement of such extra Work ("Change Order") provided, however, that Lessor and Lessee also agree to a I 0% contingency amount equal to $850,000 ("Contingency Amount"), which such Contingency Amount may be incurred in connection with any Lessor Change, and is to be paid and reimbursed to Lessor by Lessee, without such prior written approval of Lessee. Concurrently upon the execution oftl1is Lease, Lessee shall deposit with Lessor, the sum of $850,000, which such amount shall be a "retainer" against fees and costs incurred by Lesoor in connection with Lessor's completion of the Work. All Work shall be completed by a general contractor chosen by Lessor but approved by Lessee, which approval shall not be unreasonably withheld, conditioned or delayed (the "General Contractor"). Lessor shall be required to obtain the required permits for the Work, with any costs end expenses included within the Cost Estimate. Lessee hereby approves Bentley Construction as the General Contractor, Lessee must arrange with an insurance company to provide the coverage required under the Lease, the cost of which is not included in the Cost Estimate. Prior to the start of Work, Lessor must receive the certificates of insurance required under the Lease, Such certificate of insurance shall name Lessor as additional insurnd, Lessor shall cause the General Contractor to perform all Work in a good and workmanlike manner and in accordance with good industry practice, applicable Laws and the Lessor's Work Standards, and in material compliance with the Plans. Lessor shall deliver to Lessee a request for payment from the General Contractor, approved by Lessor, showing the schedule, by trade, of percentage of completion of the Work and the cost of labor rendered and materials delivered to the Premises for which such payment is being requested, which such request for payment may be submitted weekly and on or before the seventh (7th) Business Day after receipt of such request for payment, Lessee shall deliver a check to Lessor made payable to either Lessor or General Contractor, the amounts so requested by Lessor. During the construction of the Work, Lessor's Representative and Lessee's Representative shall meet as often es deemed reasonably necessary by Lessor and/or Lessee lo discuss construction progress. For purposes hereof, "Substantial Completion• (and any correlative variations thereot) of the Work shall mean completion of construction of the Work in material compliance with the Plans, with the exception of any Punch List Items. For the purposes hereof, the term "Punch List Items" shall mean minor details of construction or decoration or mechanical adjustments that can reasonably be completed after the date Lessee commences its operations within the Premises without causing substantial interference with Lessee's operations at the Premises. Lessor shall use its good faith efforts to 8 12926-147, 1
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correct (or cause General Contractor to correct) all Punch List Items within thirty (30) days after Substantial Completion of the Lessee Work.

63. Operatjons/Use. Notwithstanding anything to tne contrary set forth in the Fonn Lease, Lessee agrees that at all times, the Premises (nnd the navigation center ("Shelter")) shall� operated (a) In complete compliance with the attached Exhibit B, (b) In a first class manner, consistent with the highest quality standards of care, cleanliness and safety for employees, guests, patients, Invitees and neighbors, and with proper levels of experienced management and staffing, to enable the provisi.on of appropriate programs and assistance for homeless individuals in the City, and (c) In full compliance with all applicable loca� state and federal laws, rules and regulations.

Furthermore, Lessee covenants and agrees that It (and any Third Party Operator) shall not discriminate against any person or group of persons on account of race, disability, color, creed, religion, seK., marital status, sexual orientation, national origin, or ancestry, in the use, occupancyt tenure, or enjoyment of the Shelter. Lessee (and any Third Party Operator) shall refrain from restricting the use of the Shelter on the basis of the race, age, disability, color, religion, creed, gender, sex, marital status, sexual orientation, ancestry, or national origin of any person, nor shall Lessee, any Third Party Operator or any person claiming under or through Lessee or any Third Party Operator, establish or permit any such practice or practices of discrimination with reference to the selection, location, number, use, or occupancy of the Shelter. Lessee and any Third Party Operator shall comply wiU, the Occupational Safety and Health Act of 1970, 29 U,S.C. section 65 I et seq., and the Americans with Disabilities Act of 1990, 42 U.S.C, section 12101 et seq,, and any analogous legislation in California (collectively, "the Acts"), to the extent that the Acts apply to the Shelter and any activities thereon. Without limiting the generality of the foregoing, Lessee covenants to maintain all non-structural portions of the Shelter including working areas, all machinery, electrical facilities and the like upon the site in a condition that fully compiles with the requirements of the Acts.

64. Indemnity. Lessee shall indemnify, protect, defend (with counsel satisfactory to Lessor) and hold hannless LeS!,or and the Released Parties, from and against any and all claims arising out of, involving, or in connection with, the use and/or occupancy of the Premises by Lessee, any Third Party Operator or any Lessee's or any Third Party Operator's employees, customers, patients, guests, invitees, directors, trustees, fiduciaries, representatives, agents, servants, subsidiaries, successors and assigns, and all persons, firms, corporations and organizations acting in their behalf of the Lessee and any Third Party Operator (collectively, "Lessee Parties") or any act, omission or negligence of any Lessee and/or any of the Lessee Parties or any Default and/or Breach by Lessee of any covenants, tenns and/or conditions set forth in this Lease, either prior Lo, during, or after the expiration of the Term and including any claims brought or arising out of any civil tort or criminal activity; provided however, that the foregoing indemnification shall not apply to the extent arising out of the gross negligence or willful misconduct of Lessor or the Released Parties. If any action or proceeding is brought against Lessor by reason of any of the foregoing matters, Lessee shall upon notice defend the same at Lessee's sole cost and expense by counsel reasonably satisfactory to Lessor and Lessor shall reasonably cooperate wlth Lessee in such defense. If Lessor In its sole discretion shall determine that it is in Lessor's interest to have separate legal counsel, Lessee shall indemnify Lessor for any legal fees and costs incurred by Lessor for the defense of any such claims. Lessor need not have first paid any such claims in order to be defended or indemnified hereunder,
Lessor shall indemnify, protect, defend (with counsel satisfactory to Lessee) and hold harmless Lessee and the Lessee Parties, from and against any and all claims arising out of, involving, or in connection with, the gross negligence or willful misconduct of Lessor relating to tho Premises either prior to, during, or after the expiration of the Tenn and Including any claims brought or 9 12926447.1
EXHIBIT 1
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arising out of any civil tort or criminal activity; provided however, that the foregoing indemnificotion sholl not opply to the extent arising out of the gross negligence or willful misconduct of Lessee or the Lessee Parties. lf any action or proceeding is brought against Lessee by reason of ony of the foregoing matters, Lessor shall upon notice defend the same at Lessor's sole cost and expense by counsel reasonably satisfactory to Lessee and Lessee shall reasonably cooperate with Lessor in such defense. If Lessee in its sole discretion shall determine that it is in Lessee's interest to have separate legal counsel, Lessor shall indemnify Lessee for any legal fees and costs incurred by Lessee for the defense of any such claims. Lessee need not have first paid any such claims in order to be defended or indemnified hereunder.

65. Notices. Notwithstanding anything to the contrary in the Form Lease, all notices, requests, or demands herein provided to be given or made, or which may be given or made by either party to the other, shell be given or made only in writing and shall be deemed to have been duly given: (i) upon delivery, or if delivery is rejected when delivery was attempted, of U.S. Certified Mail, properly addressed, postage prepaid with return receipt requested; or (ii) upon delivery, or if delivery is rejected when delivery was attempted, when sent via overnight or express mail courier, properly addressed and postage prepaid; (iii) when delivered personally al the address listed below their respective signatures (signature required), or (iv) by e-mail, and if so sen� (a) the subject line of the e•mail shall state "URGENT: NOTICE TO [LESSEE] (LESSOR]" (or substantially similar thereto) and (b) followed within one ( I) business day by a copy sent by a method prescribed in (i), (ii) or (iv) above; provided however, that nll deliveries or attempted deliveries shall only be made or attempted to be made on a Business Day. Notwithstanding the prescribed methods of delivery set forth above, actual receipt of written notice by o party designated below shall constitute notice given in accordance with the Agreement on the dote received, unless deemed earlier given pursuant to the foregoing methods of delivery. The proper address to which notices, requests or demands may be given or made by either party shall be the address set forth for such party as set forth in the Form Lease, or to such other address or to such other person as any party shall designate in writing, such address may be changed by written notice given to the other party In accordance with this Paragraph. 66, ADA Upgrades. Except with respect to the Work as set forth in Section 62 above, Lessor shall not be required to provide ADA upgrades to the Premises.

67. lntentionolly Omitted.

68. Inspections. Notwithstanding anything to the contrary set forth In the Fonn Lease, upon reasonable notice to Lessee, Lessor shall have the right to inspect the Premises, or cause the Premises to be inspooted by a third party chosen by Lessor, to verify that Premises are at all times being operated in full compliance with the terms of Paragraph 6 l of this Addendum and as otherwise required by this Lease. In the event that any such inspection reveals any such non• complionce, the some shall be, at the option of Lessor, a Default and or Breach by Lessee under the Lease. As additional consideration for Lessor's entering into this Lease, Lessee shall reimburse and pay to Lessor, in addition to Base Rent and other Rent due hereunder, the cost of any such inspection, up to $500 per inspection but no more than once each calendar month, to help offset the cost of such inspections, such amounts to be paid by Lessee to Lessor within 5 days ofter Lessee's receipt from Lessor ofa copy of the applicable inspection report and invoice therefor, and all such amounts being deemed Rent under this Lease.

69. Option to Purchase. Lessor hereby grants to Lessee an option (the "Purchase Option�) during the Purchase Option Period (as defined herein below) to purchase the Premises upon the following terms:
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EXHIBIT 1
City Council 26 – 29 4/19/2022

69.1, Purchase Price. The Purchase Price for the Premises shall be equal to the sum of $9,200,000 (the "Initial Price") plus the Increase Amount (as defined below) (said Initial Price plus the Increase Amount, if any, being the "Purchase Price"), payable in cash at Closing (as defined below): provided, however, that the Initial Price is based in part upon Lessor's original purchase price of the Premises and in the event that Lessor receives any monies back in respect thereof from its seller as set forth in its original purchase agreement, the Initial Price shall be reduced by said amount so rooeived. The "Increase Amount" shall be the amount equal to SO¾ of the increase in the Consumer Price Index for all Urban Consumers for the Los Angeles-Anaheim-Riverside area, all items published by the United States Department of Labor, Bureau of Labor Statistics ( 1982- 84=100) ("lndeK") from May 2020 ("Base Index.") to the date of the Notice ofEKercise (as defined below); such increase to be calculated by taking the Initial Price and multiplying it by a fraction, the numerator being the Base Index, and the denominator being the Index published for the month in which the Notice ofExercise is delivered. lf the Index is changed so the Index differs from that used as of the date hereof, the Index shall be converted under the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. If the Index Is discontinued or revised during the Lease Term, such other governmental Index or computation with which it is replaced shall be used to obtain substantially the same results as would be obtained if the Index had not been discontinued or revised. Notwithstanding the foregoing, the Increase Amount shnll not increase the Initial Price by an amount equal to more than 1.5% per year (non-compounding), Additionally, in the event Lessor receives funds for the Regulatory Safety Penni!, the Purchase Price shall be reduced by $1,000,000 or the amount of such funds that are received by Lessor, provided, however, that any interest collected by Lessor in connection with such Regulatory Safety Permit amount shall not be included in the reduction of such Purchase Price.

69.2, Term of Purchase Option. The term of the Purchase Option shall commence upon the 1 • day of the J3ili month of the Term of tho Lease (the "Purchase Option Commencement Date") and shall expire on the earlier of (a) the five (5) year anniversary of the Commencement Date and (b) tho expiration or termination of this Lease for any reason whatsoever (the "Purchase Option Termination Date"), The period between the Purchase Option Commencement Date and the Purchase Option Termination Date shall be referred to herein as the "Purchase Option Period.'' In the event Lessee fails to timely exercise the Purchase Option within the Purchase Option Period, the Purchase Option, and all rights of Lessee, shall immediately and automatically cease and terminate, and tho Purchase Option shall in that event be null and void and be ofno further force or effect whatsoever.

Lessee may exercise the Purchase Option only in the manner provided In Section 69.4 below.

69.3. lnyestjgatjons. During the Purchase Option Period, Lessee shall be permitted to investigate the Premises and undertake all actions that it deems necessary or desirable to ascertain the condition of the Premises which includes, but is not limited to, the environmental condition of the Premises, status of title to the Premises, and the condition of the improvements on the Premises. Accordingly, during the Purchase Option Period, Lessee shall have, in addition to its rights as the tenant of the Premises hereunder, and Is hereby granted, the right to make and conduct such non-invasive surveys, studies, tests, investigations, and inspections (environmental and otherwise) as Lessee deems reasonably necessary or convenient: provided that Lessee may make such invasive surveys, studies, tests, investigations or Inspections as it deems reasonably necessary or convenient only upon the prior written consent of Lessor which shall not be unreasonably l I
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EXHIBIT 1
City Council 26 – 30 4/19/2022
withheld, All such surveys, studies, tests, investigations and inspections shall be porfonned at tho sole east and expeose of Lessee and Lessee shall Indemnify, defend and hold Lessor hannless from end egainst any and all cos� expense, liability arising from or in connection with any such surveys, studies, tests, investigation and inspections.

69.4. Exercise of Purchase Option. To exercise the Purchase Option, Lessee shall serve written notice of exercise upon Lessor or Lessor's legal representatives at any time after the Purchase Option Commencement Date but prior to the Purchase Option Termination Date ("Notice of Exercise"), which such Notice of Exercise shall be accompanied by a cash or cash equivalent in the amount of One Hundred Thousand Dollars($ I 00,000,00) ("Deposit"). The Deposit shall be invested by Escrow Holder (as defined below) in a federally Insured interest-bearing account with any interest accruing thereon to be paid or credited to Lessee. At the Close of Purchase Option Escrow, the Deposit and any accrued interest thereon shall be applied and credited toward payment of the Purchase Price. The Notice of Exercise shall provide at least 90-120 days for Lessor to locate an exchange property prior to the Closing of the Purchase Option Escrow.

69.5. Escrow. If Lessee timely exercises the Purchase Option by the timely delivery of the Notice of Exercise and the Deposit, Lessor and Lessee shall immediately open an escrow ("Option Escrow") with Chicago Title Company ("Escrow Holder", the specitic escrow officer being chosen by Lessor, or Lessor may choose such other escrow or title company in its reasonable discretion upon written notice to Lessee, which such escrow or title company shall be subject to Lessee's approval, which will not be unreasonably withheld, conditioned or delayed), whereupon the Deposit shall be delivered to Escrow Holder, This Agreement shall constitute joint escrow Instructions to Escrow Holder with respect to the purchase and sale of the Premises. The parties shall exeoute such additional escrow instructions which arc not inconsistent with the provisions of this Agreement and which may be required by Escrow Holder in order to close such escrow,

69.6. Payment, The Purchase Price shall be paid in cash upon the Close of Purchase Option Escrow ( as defined below),

69.7. Q.Qmng. The close of the Purchase Option Escrow for the purchase and sale of tho Premises shall occur on or before the date which is thirty (30) days ("Scheduled Closing Date") after the dale of delivery of the Notice of Exercise by Lessee to Lessor (the "Close of Purchase Option Escrow" or "Closing"), For purposes hereof, the Close of Purchase Option Escrow (and Closing) shall be the date on which the Grant Deed conveying the Premises to Lessee is recorded.
12926447.1
a) If, following Lessee's timely and proper exercise of the Purchase Option, the Closing fails to occur as a result of Lessor's breach or default and if Lessor should remain in default in any material respect in the perfonnance of any of Lessor's obligations under the Lease with respect to the sale of the Premises after the fifth (5th) Business Day following the delivery by Lessee to Lessor of written notice of such default, Lessee shall be entitled, as its sole and exclusive remedy for any such defaul� to elect any one of the following remedies (so long as title to the Premises has not been further encumbered involuntarily or by or with the consent of Lessor, and Lessor elects not to remove such encumbrance on or prior to Closing): (i) tenninate its Purchase Option and receive the retunl of the Deposit, and, thereafter, the parties shall have no further rights or obligations hereunder except that if applicable, the Lease shall continue thereafter in full 12 EXHIBIT 1
City Council 26 – 31 4/19/2022
12926447.1
force and effect, or for obligations which expressly survive the termination of the Purchase Option; or (ii) bring and pursue an action for specific performnnce of the Purchase Option; or (iii) waive the default and proceed to close the transaction contemplated herein. As a condition precedent to Lessee exercising any right it may have to bring an action for specific performance hereunder, Lessee must commence such an action within thirty (30) days after the occurrence of Lessor's default. Lessee agrees that its failure to timely commence such an action for specific performance within such thirty (30) day period shall be deemed a wa.iver by it of its right to commence an action for speeitic performance as well as a waiver by it of any right it may have to file or record a notice oflis pendens or notice ofpendency of action or similar notice against the· Premises.
b) If, following Lessee's timely ond proper exercise of the Purchase Option, the Closing fails to occur as a result of Lessee's breach or default, and if Lessee should remain in default in any material respect in the performance of any of Lessee's obligations with respect to the purchase of die Premises after tho fifth (5th) Business Day following the deliveiy by Lessor to Lessee of written notice of such default, THEN AND IN SUCH EVENT, NOTWITHSTANDING ANYTHING HEREIN TO nm CONTRARY, LESSEE AND LESSOR

AGREE THAT LESSOR WILL INCUR DAMAGES BY REASON OF SUCH

DEFAULT BY LESSEE, WHICH DAMAGES SHALL BE IMPRACTICAL
AND EXTREMELY DIFFICULT, IF NOT IMPOSSIBLE, TO ASCERTAIN.

LESSEE AND LESSOR, IN A REASONABLE EFFORT TO ASCERTAIN

WHAT LESSOR'S DAMAGES WOULD BE IN THE EVENT OF SUCH

DEFAULT BY LESSEE HAVE AGREED BY PLACING THEIR INITIALS

BELOW THAT THE AMOUNT OF THE DEPOSIT SHALL BE DEEMED TO

CONSTITUTE A REASONABLE ESTIMATE OF LESSOR'S DAMAGES
UNDER THE PROVISIONS OF SECTION 1671 OF THE CALIFORNIA

CIVIL CODE AND THE PAYMENT AND RETENTION OF SUCH AMOUNT

AS LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE OR

PENAL TY WITHIN THE MEANING OF CALIFORNIA CIVIL CODE
SECTIONS 3275 OR 3369. IN THE EVENT OF AND FOR SUCH DEFAULT BY LESSEE; LESSOR SHALL RETAIN THE DEPOSIT AS LIQUIDATED

DAMAGES AS LESSOR'S SOLE REMEDY THEREFOR, UNLESS LESSEE

WRONGFULLY REFUSES TO CAUSE ESCROW HOLDER TO CANCEL

THE ESCROW OR TO RELEASE THE DEPOSIT TO LESSOR, IN WHICH

INSTANCE LESSOR SHALL ALSO BE ENTITLED TO ALL COSTS AND

EXPENSES, INCLUDING ACTUAL ATTORNEYS' FEES INCURRED BY

LESSOR WITH RESPECT TO THOSE CONSEQUENTIAL DAMAGES, IF

ANY, WHICH MAY BE INCURRED BY LBSSOR,AFTBR THE CLOSING

DATE OR OTHER TERMINATION OF THIS AGREEMENT OR

CANCELATION OF THE TRANSACTIONS HEREIN CONTEMPLATED BY

REASON OF THE CLOUD ON TITLE TO THE PROPERTY WHICH MAY

RESULT FROM LESSBE'S WRONGFUL FAILURE TO CANCEL THE
ESCROW AND THIS AGREEMENT. ESCROW HOLDER IS HEREBY

INSTRUCTED TO IMMEDIATELY RELEASE THE DEPOSIT TO LESSOR IN THE EVENT OF A BREACH BY LESSEE HEREUNDER. IN ADDITION,

IF LESSEB WRONGFULLY FAILS TO CAUSE SUCH SUM TO BE

DELIVERED TO LBSSOR AS HERETOFORE PROVIDED, INTEREST

SHALL ACCRUE THEREON AT THE MAXIMUM RATE ALLOWED BY
l3
EXHIBIT 1
City Council 26 – 32 4/19/2022

LAW FROM THE DATE OF LESSOR'S WRITTEN NOTICE OF DEFAULT AND TERMlNATION UNTIL PAYMENT THEREOF. IN ADDlTION,

LESSEE SHALL PAY ALL TITLE AND ESCROW CANCELLATION
CHARGES. FURTHBRMORE AND NOT WITHSTANDING THE

FOREGOING, THIS PARAGRAPH PERTAINS ONLY TO A DEFAULT BY

LESSEE WITH RESPECT TO THE PURCHASE OPTION AND SHALL NOT

RESTRICT, LIMIT, MODIFY, ALTER OR AMEND, IN ANY MANNER

WHATSOEVER, ANY RIGHT OR REMEDY OF LESSOR IN THE EVENT
OF A D T BY LESSEE UNDE T · E LEASE,
(c) Except as otherwise set forth herein, either party shall not be liable for consequential or speculative damages in connection with such party's breach or default hereunder.
(d) Additionally, and notwithstanding the foregoing, if following Lessee's timely and proper exercise of its Purchase Option, the Premises suffer a material casualty (which, for purposes hereof shall mean damage with a cost to repair in excess of$ I 00,000 not caused by Lessee orany employee, resident, guest or invitee of Lessee), then Lessee shall have the right to either(i) proceed wtth the Close of Escrow (In which case, ifthere were such a material casualty Lessee shall be entitled to receive all available insurance proceeds and receive a reduction of the Purchase Price in an amount equal to the deductible amount and any required co-Insurance payment with respect to the insurance, and there shall be no other reduction in the Purchase Price), or(ii) rescind the Notice of Exercise, in which case the Deposit shall be returned to Lessee, the Lease shall continue in full force and effect (Including Lessee's right to later re-exercise the Purchase Option), and Lessee shall not be liable for any costs incurred by Lessor with respect to the failed Closing; provided, however that each of Lessee and Lessor shall pay one-half of the Escrow Holder's costs and fees in connection with the Option Escrow and its cancellation.
(e) Additionally, and notwithstanding the foregoing, if the Closing Is unable to occur for a reason other than a breach or default by Lessee or Lessor, then Lessee shall have the right to rescind the Notice of Exeroise, in which case the Deposit shall be returned to Lessee, the Lease shall continue in full force and effect (including Lessee's right to later re•exercise the Purchase Option), and Lessee shall not be llable for any costs Incurred by Lessor with respect to the failed Closing; provided, however that each of Lessee and Lessor shall pay onehalfof the Escrow Holder's costs and fees in connection with the Option Escrow and its cancellation.

69.8. Condition of Property. Lessee represents and warrants that Lessee has, or shall have inspected and conducted tests and studies of the Premises, and that Lessee is familiar with the genetal condition of the Premises, Lessee understands and acknowledges that the Premises may be subject to earthquake, fire, Ooods, erosion, high water table, dangerous underground soil conditions, hazardous materials and similar occurrences that may alter its condition or affect its suitability for any proposed use. EKcept as otherwise 14 12926447.1
EXHIBIT 1
City Council 26 – 33 4/19/2022
expressly provided in the Lease, Lessor shall have no responsibility or liability with respect to any such occurrence. Lessee represents and warrants that, except for Lessor1 s
express representations and warranties herein, Lessee is acting, and will act only, upon information obtained-by Lessee directly from Losse<>'s own inspection of the Premises, Lessor hereby makes no claims, representations or warranties as to the suitability or lack of suitability of the Premises for any proposed or intended use, or availability or lack of availability of (a) permits or approvals of governmental or regulatory authorities, or (b) easements, licenses or other rights with respect to any such proposed or intended use of the Premises shall not affect the rights or obligations of the Lessee hereunder. 69,9. "As Is". Lessee expressly agrees that If it completes the purchase of the Premises (i) that it is purchasing the Premises on an "As is" basis and based on its own investigation of the Premises, (ii) that, except as expressly set forth herein, neither Lessor nor Lessor's employeesJ agents, brokers, representatives, managers, property managers, asset managerst officers. principals, bencficiaries1 trustees, attorneys or contractors (collectively, "Lessor's Representatives") have made any warranty, representation or guarantee, expressed, implied or statutory, written or oral, including, withoot limitation, any implied warranty of merchantability or fitness for any use or purpose or of reasonably workmanship, concerning the Premises or any of the products or improvements located thereon or therein: (Iii) that, except as otherwise expressly set forth herein. neither Lessor nor Lessor's Representatives have made any warranty. representation, or guarantee, expressed, implied or statutory, written or oral, pertaining to the Premises' compliance with any laws, ordinances, rules or regulations, federal, state or local and (Iv) except as otherwise expressly set forth herein, that neither Lessor nor Lessor's Representatives have made any warranty, representation or guarantee, expressed, Implied or statutory, written or oral, as to any government limitation or restriction, or absence thereof, pertaining to the Premises, or as to the presence or absence of any latent defect, subsurface soil condition, environmental condition, hazardous substance, toxic waste or any other matter pertaining to the physical condition (title, mapping, grading, construction, or otherwise) of the Premises. Lessee is or as of the Close of Purchase Option Escrow will be familiar with the Premises and their suitability for Lessee's Intended use. All documents which have been given to Lessee by Lessor, or Lessor's Representatives, have been delivered as an accommodation to Lessee and without any representation or warranty as to the sufficiency, accuracy, completeness, validity, truthfulness, enforceability, or assignability of any of the documents, all of which Lessee relies on at its own risk. Lessee acknowledges and agrees that, except as otherwise expressly set forth herein, Lessee's only recourse for any defect in title shall be against the title company and not Lessor.
69, I 0, Release, Lessee shall rely solely upon Lessee's own knowledge of the Premises based on its investigation of the Premises and its own inspection of the Premises In determining the Premises' physical condition. Effective upon the Close of Escrow, Lessee and anyone claiming by, through or under Lessee hereby waives its right to recover from and fully and irrevocably releases Lessor and Its respective members, employees, officer,, directors, partners, shareholders, beneficiaries, trustees, fiduciaries, representatives, agents, servants, attorneys, affiliates, parent, subsidiaries, successors and assigns, and all persons, firms, corporations and organizations acting in their behalf ("Released Parties") from any and all claims that it may now have or hereafter acquire against any of the Released Parties for any costs, loss, liability, damage, expenses, demand, action or cause of action arising from or related to any construction defects, errors, omissions or otlter conditions, latent or otherwise, including environmental matters, affecting the Premises l5
12926441-1
EXHIBIT 1
City Council 26 – 34 4/19/2022
or any portion thereof. This release includes claims of which Lessee is presently unaware or which Lessee does not presently suspect to exist which, if known by Lessee, would materially affect Lessee's release to Lessor. In this connection and to the fullest extent permitted by law, Lessee hereby agrees, represents and warrants that Lessee realizes and acknowledges that factual matters now unknown to it may have given or may hereafter give rise to causes of action, claims, demands, debts, controversies, damages, costs, losses and expenses which are presently unknown, unanticipated and unsuspected, and Lessee further agrees, represents and warrants that the waivers and releases herein have been negotiated and agreed upon in light of that realization and tha� as a material portion of the consideration given to Leasor by Lessee in exchange for Lessor's performance hereunder, Lessee nevertheless hereby intends to release, discharge and acquit Lessor from any such unknown ceuses of action, claims, demands, debts. controversies, damages, costs, losses and expenses which might in any way be included, Lessor has given Lessee material concessions regarding this transaction in exchange for Lessee agreeing to the provisions of this Section.

69.11. Additional Release. The releases set forth in Section 69.10 above und this Section 69.11 are full and complete releases of all the persons and entities described above of and ftom any and all liability ofuny noture whatsoever for all damage, injury, loss, expense, including any consequentlul expense, loss or damage, whether the same are now known or unknown to the parties, expected or unexpected by said parties, and all rights under Section 1542 of the California Civil Code are hereby waived and relinquished. Section 1542 of the Civil Code provides as follows:
"A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS

THAT THE CREDITOR OR RELEASING PARTY DOES

NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER

FAVOR AT THE TIME OF EXECUTING THE RELEASE

AND THAT, IF KNOWN BY HIM OR HER WOULD HAVE
MATERIALLY AFFECTED HIS OR HER SETTLEMllNT
WITH THE DEBTmj
ED PARTY."
sse 1t1als
Notwithstanding anything to the contrary herein, the foregoing releases in Section

69.10 and this Section 69.Jl are not intended to and do not cover (i) any claims arising from a breach by Lessor of any Lessor's obligations under this Lease, or (iii) any gross negligence, willful misconduct or fraud committed by Lessor.

69.12. permissible Title Exceptjons. Upon the Close of Purchase Option Escrow, Lessor shall convey the Premises to Lessee by a grant deed (the "Grant Deed"), The Grant Deed shall be subject only to the following (collectively, the "Permitted Exceptions"):
1192644?,I
a) Current Matters of Record. Those matters of record identified on the attached Exhibit A.
b) Lease. This Lease.
c) Future Non-Monetary Exceptions. All monetary and non-monetary encumbrances placed against the Premises or which may appear of record nfier the date hereof as the result of any action or inaction of Lessee (including any 16 EXHIBIT 1
City Council 26 – 35 4/19/2022
monetary encumbrances appearing of reeord ss a result of any action or inaction ,, by Lessee during the Purchase Option Term),
d) Iru!tl, Non-delinquent general, special and supplemental real property taxes and assessments; provided however, all delinquent taxes and assessments relating to the perio<i following the Commencement Date of tho Lease are tho responsibility of Lessee pursuant to this Leese and shall be paid by Lessee at Closing. c) Printed EKceptlons. Matters shown as printed exceptions in the standard form of Owner's Policy of Title Insurance.

Title Insurance, Lessor shall cause to be delivered to Lessee upon the Close of Purchase Option Escrow, an ALTA standard coverage owner's policy of title insurance on the Premises issued by Escrow Holder with policy limits equal to the Purchase Price and insuring title to the Premises in the condition set forth above and otherwise vested in Lessee. Lessee shall have the right to request issuance ofan ALTA extended eoverage owner's policy of title insurance and any endorsements it may require, but the Closing shall not be delayed or conditioned on the issuance of same. Lessee shall obtain, at its sole cost and expense, any survey required to obtain any such extended coverage Title insurance, and the obtaining or failure to obtain any such survey shall not delay the Closing.

69.13. Additional Closing Documents. As part of the Closing, the parties shall execute and deliver the following additional documents to the Escrow Holder:
a) Lessor and Lessee shall execute and deliver an Assignment and Assumption of Lease;
b) Lessor shall execute and deliver a Bill of Sale and General Assignment; c) Lessor shall execute and deliver a Transferor's Certification of Non-Foreign Status, together with a California Form 593-C, reflecting that no tax withholding is required; and
d) Lessor and Lessee shall deliver such additional, customary escrow closing documents and instruments ss Escrow Holder shall reasonably require, including appropriate evidence of authority and a customary owner's affidavit.

The Grant Deed and those documents specified in Paragraphs 69.9 (a), (b) and (c) shall be prepared by Lessor and delivered to Lessee for review and approval not later than ten ( I 0) days prior to the Scheduled Closing Date. The exact form and content of such documents shall be subject to good faith negotiation by Lessor and Lessee and the failure of Lessor and Lessee to agree upon the form of such documents not later than 2 Business Days prior lo the Scheduled Closing Date shall constitute the failure of a.condition of closing, and either party shall then have the right to terminate the Purchase Option and the sale of the Premises.

69.14. Prorations and Credits. Pursuant to the terms of the Lease, all real property taxes and assessments and utilities are to be paid by Lessee and as such no prorations for the same are to be made,
l7
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EXHIBIT 1
City Council 26 – 36 4/19/2022

69.15. Closing Costs. Lessor shall pay for (a) all premiums for the AL TA standard coverage portion of the Title Policy, (b) one-half(½) of all Escrow fees and costs, (c) all sales and gross receipts taxes, (d) all documentary transfer and/or stamp taxes, if any, and (e) Lessor's share of prorations, if any. Lessee shall pay for (i) all premiums for the AL TA extended coverage portion of the Title Policy and any endorsements requested by Lessee, (ii) all costs relating to the survey and all reports, studies, inspections, investigations and all other costs and expenses incurred by Lessee in connection with its review of any materials, documents, materials, the Premises and other such due diligence conducted by Lessee, (iii) any document recording fees and charges, (iv) one-half(½) of all Escrow fees and costs, and (v) Lessee's share of prorations, if any. Lessor and Lessee shall each pay for all of its respective legal and professional fees and fees of other consultants incurred by such respective party, and if Lessee shall finance any of the Purchase Price, Lessee shall pay all costs and expenses incurred or arising in connection with such financing. All other normal and customary closing costs and expenses shall, except as otherwise herein set forth, be allocated between Lessor and Lessee in accordance with the customary practice in the County in which the Project is situated.

69.16. Purchase Option Assignment. The Purchase Option is personal to Lessee and may not be assigned in whole or in part at any time. Notwithstanding the foregoing, Lessee may assign the Purchase Option to any other governmental entity approved by the City to whom this Lease is assigned as set forth in Section 60 herein above. (remainder of page left intentionally blank)
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EXHIBIT 1
City Council 26 – 37 4/19/2022

70. fJl!wllm:m, Tho Form Lea•• and Addendum may oaoh be exeouted In multiple ®untorparts and by separate parlles on separate counterparts and delivered vta fuoalmlle or other moans of electronic imagt tNlllsmls1ion, eaoh of which shall bo deemed an original for all purposes, but all of which, together, shall constitute one and the snme instrument.

LESSOR:

DYBll 18, LLC
12?26447,1
L!lSSijE:

See attached City of Santa Ana
signature page
19 EXHIBIT 1
City Council 26 – 38 4/19/2022
Lessee City of Santa Ana Signature Page to:

Addendum to
Standard Industrial/Commercial Single-Tenant Lease - Net For Certain Premises Commonly Known as
1815 East Carnegie, Santa Ana, California 92705
March 1, 2021
CITY OF SANTA ANA:

City Manager
APPROVED AS TO FORM:

Sonia R. Carvalho
C�ttomey
. >ir � '\;,:.«tr Ry,fo1 O.(;Hodge
Assi{tant City Attorney
ATTEST:
rk of the Council
RECOMMENDED FOR APPROVAL:

Steven Mendoza
Executive Director
Community Development Agency
EXHIBIT 1
City Council 26 – 39 4/19/2022
EXHIBIT "A" - LIST OF PERMITTED EXCEPTIONS
See attached
20 12926441.1
EXHIBIT 1
City Council 26 – 40 4/19/2022
EXHIBIT "B" - DESCRIPTION OF LESSEE USES
The property will be used as an emergency homeless shelter and ancilla1y uses thereto are center, health clinic, and anclllory office space, Services to be provided include case management, housing navigation, behaviornl health and substance use counseling, healthcare coordination, and job development. Outdoor property perimeter will be covered with screened fences to limit visibility into the area, Outdoor facilities will include client storage area, pet accommodations, smoking area, outdoor common area, recreational area, and temporary modular housing. There will be 24/7 security guard presence at the property to promptly resolve any security issues that may arise. In addition, this property is not a walk-in facility. All client transportation to and from the facilities will be provided. In addition, there is a Good Neighbor Policy which will be implemented by Lessee (and its Third Party Operator) to promote positive communication and relationship with neighbors on an ongoing basis. 2l
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Reason for Change Comments
*At time conceptual bid was provided, the budget
was an educated guess as plans were not yet
generated.
$ 792,240 $ 773,386 $ - $ 843,386 $ 70,000 Unforeseen Circumstance and Change of Scope - Increase in sewer line size from 4 inches to 6. The original "as-built" plans from Gensler showed the existing condition as 6 inches. - Additional plumbing for the pump in the back yard.
- Public Works required replacement of Fire and Domestic water in the street. - Increase in material cost
- Overtime
$ 1,089,046 $ 1,032,170 $ - $ 1,074,170 $ 42,000 Unforeseen Circumstance and Change of Scope - Emergency lighting changes
- Additional bug-eye
- Redo lounge room 105 electrical per City's request
- Additional underground conduits that were not expected - Rework dorm lighting
- Overtime
$ - $ 34,665 $ - $ 34,665 $ - Unforeseen Circumstance and Change of Scope - Switchgear needed to be expedited per the City's request $ 880,000 $ 946,191 $ 18,589.79 $ 974,469 $ 9,688 Change of Scope and increase in material cost - Framed upstairs which was not part of the original scope-Framing Square footage increased substantially due to framing of the mezzanine.
- Original assumptions had us using ICF, however we needed to use wood framing which increased material cost by 25% - Lumber prices have greatly increased in the past year - Fire treated wood had to be used at the front that we were not anticipating to have to use. Never had to use on any other project. - Overtime
$ 110,948 $ 89,629 $ 1,730.80 $ 112,860 $ 21,500 Change of Scope - Increase in cabinetry scope (after 1st round of plans were produced) - Front entrance area reception doors needed to be changed from original plan $ 785,000 $ 607,590 $ 89,019.00 $ 785,000 $ 88,391 Change of Scope and increase in material cost - Increase in material cost and change in scope (after 1st set of plans were produced) $ - $ - $ - $ 8,682 $ 8,682 Change of Scope - Needed to re-engineer the ducting runs $ - $ - $ - $ 5,000 $ 5,000 Change of Scope - Needed to expedite per the City's request $ - $ - $ - $ 23,500 $ 23,500 Change of Scope - Not part of original scope $ 204,000 $ 4,967 $ 183,874.45 $ 208,968 $ 20,126 Change of Scope - Required to protect the unused upstairs area, which was not part of 1st set of plans - Upgraded to a voice activated system
$ 245,700 $ 151,070 $ - $ 259,070 $ 108,000 Unforeseen Circumstance and Change of Scope - Increase in sprinkler heads because of conflict with lighting system and bathroom plumbing-Fire safety requirement $ 225,000 $ 213,574 $ 25,564.50 $ 264,138 $ 25,000 Unforeseen Circumstance and Change of Scope - Upsizing of fire water line
- Public works required replacement of Fire and Domestic Water main in the street. $ 181,967 $ 200,677 $ - $ 200,677 $ -
$ 475,000 $ 600,905 $ 60,651.79 $ 783,435 $ 121,878 Change of Scope and increase in material cost - Underestimated overall cost of work needed to be done - Rains caused sub to need to recondition the soil
- Rebar cost significantly increased
$ - $ 6,000 $ - $ 6,000 $ -
$ - $ 18,000 $ - $ 18,000 $ -
$ 125,000 $ - $ - $ 140,000 $ 140,000 Change of Scope and increase in material cost - Patch work requested by Public Works $ 139,500 $ 48,825 $ - $ 143,825 $ 95,000
$ 206,700 $ 206,700 $ - $ 218,700 $ 12,000 Increase in Labor Cost - Potential change order for prevailing wage $ 432,275 $ 429,212 $ - $ 429,212 $ -
$ 22,000 $ 23,987 $ - $ 23,987 $ -
$ 36,000 $ 46,448 $ 1,923.75 $ 57,371 $ 9,000 Change of Scope - Engineering needed for roof work
- Cut in for rear exit door
- Roof screening engineering
$ 325,000 $ 337,267 $ 13,663.77 $ 375,931 $ 25,000 Change of Scope - Excavation for additional concrete work $ 37,723 $ 29,017.80 $ 2,901.78 $ 37,723 $ 5,804 Extended Timeline - Timeline for project extended $ 12,000 $ 15,506.70 $ - $ 27,905 $ 12,398 Unforeseen Circumstance - Assumed Turelk's original contract after taking over which included an unknown dismantle charge of $12,398 $ 17,843 $ 16,745.92 $ 1,547.18 $ 21,387 $ 3,094 Extended Timeline - Timeline for project extended $ 439,391 $ 439,391.40 $ - $ 439,891 $ 500 Change of Scope - Permit fee for shade structure $ 38,660 $ 39,546.00 $ - $ 39,546 $ -
$ 900,000 $ 1,143,308.63 $ 191,414.59 $ 1,528,104 $ 193,381 Change of Scope and increase in material cost - Because we were not allowed to use ICF construction method, scope of the drywall/insulation project was increased by 25%. - Framed upstairs which was an increase in scope-Framing Square footage increased substantially due to framing of the mezzanine. - Third layer of drywall was required by building and safety in all of the corridors causing a large increase in material and labor $ - $ 10,000.00 $ - $ 40,451 $ 30,451 Change of Scope - Changed from melamine to FRP $ - $ 13,356.45 $ - $ 13,356 $ - Change of Scope - Changed from melamine to FRP $ - $ 9,962.12 $ 8,967.26 $ 33,636 $ 14,707 Change of Scope $ - $ - $ 92,316 $ 92,316 Change of Scope
$ 150,000 $ 154,603 $ 1,573.79 $ 156,177 $ -
$ - $ - $ - $ 20,000 $ 20,000 Change of Scope
Switchgear
Fireproofing
Shaft Wall Framing/Drywall/Wallboard
Second Floor Tile
Captiveaire Equipment
Light Post
Shade Sales - Concrete
Sleeping Cubbies/FRP
Bathroom/FRP
Current
Outstanding
Invoices (not
drawn on)
Remaining Funds
Needed
HVAC Engineering
HVAC Freight for RUUD Equipment
Revised Budget as
of 3/22/22
Civil Engineer
Structural Engineer
Demo/Excavation/Shoring
Consulting
Shoring Tower Rentals
Equipment Rental
Permit/Fees
Security Services (up to June 15th)
Tile
Rough Plumbing
Electrical
Rough Framing
Finished Carpentry
Project Number: CAR-1
Dyer 18, LLC - 1815 Carnegie
Schedule of Values*
January 2022
Budget
Drawn as of
3/22/22
Paving
HVAC
Fire Alarm System
Underground Utilities
Fire Sprinklers
Edison
Concrete Work (Interior & Exterior)
Drywall/Insulation
Roofing
Elevator
Architect
EXHIBIT 2
City Council 26 – 42 4/19/2022
$ 297,000 $ 280,579 $ 41,341.91 $ 390,121 $ 68,200 Change of Scope The following doors were added to the scope:
- Wood doors (City decision to upgrade material)
- 2 hour glass door
- Dining room accordion door
- Rollout door
- Glass bifold door
- City requested to order more doors due to previous order being late $ 49,000 $ - $ 6,960.53 $ 6,961 $ - Change of Scope
$ 160,000 $ 199,202 $ - $ 199,202 $ - Change of Scope and increase in material cost - Significant increase in material cost $ - $ 20,000 $ 15,021.24 $ 65,021 $ 30,000 Change of Scope - Preferred method of ICF was rejected by building and safety $ 100,000 $ 40,333 $ 10,618.81 $ 120,952 $ 70,000 Increase in material cost - Steel prices have increased dramatically over the life of the project $ - $ 10,000 $ - $ 10,000 $ -
$ 300,000 $ 65,467 $ 126,191.09 $ 215,258 $ 23,600 Change of Scope $ - $ 60,004 $ 45,710.48 $ 105,714 $ -
$ - $ - $ - $ 24,230 $ 24,230 Change of Scope - Looking for less expensive substitutes $ - $ - $ - $ 77,389 $ 77,389 Change of Scope - Looking for less expensive substitutes $ - $ - $ 73,074 $ 73,074 $ - Change of Scope
$ - $ - $ 21,555 $ 21,555 $ - Change of Scope
$ 25,000 $ 27,031 $ - $ 27,031 $ -
$ - $ - $ 11,470 $ 13,470 $ 2,000 Change of Scope
Exterior Fencing $ - $ - $ - $ 4,000 $ 4,000 Change of Scope $ - $ - $ - $ 13,000 $ 13,000 Change of Scope
$ - $ - $ - $ 4,000 $ 4,000 Change of Scope
$ - $ - $ - $ 600 $ 600 Change of Scope
$ - $ - $ - $ 4,500 $ 4,500 Change of Scope
$ - $ - $ - $ 5,000 $ 5,000 Change of Scope
$ - $ - $ - $ 5,000 $ 5,000 Change of Scope
$ 75,000 $ - $ - $ 64,286 $ 64,286 Change of Scope - Recently added to the scope as there was additional work to repair and complete work not completed by the former contractor $ 140,000 $ 72,436.85 $ 12,752.73 $ 152,440 $ 67,250 Change of Scope - Not part of original scope (part of FF&E) $ 200,520 $ 221,335.09 $ - $ 228,335 $ 7,000 - Needed to substitute lights because of back order and new lights were more expensive $ 76,146 $ - $ - $ 76,146 $ 76,146 Change of Scope - City permitting process required roof screening $ 100,000 $ - $ 21,225.70 $ 100,000 $ 78,774 Change of Scope $ 25,000 $ - $ - $ - $ - Unforeseen Circumstance and Change of Scope $ 100,000 $ - $ - $ 100,000 $ 100,000 - Per City, amount determined per discussions with City Staff.

COVID Testing $ - $ - $ 3,380.00 $ 3,380 $ -
Site Cleanup $ - $ - $ 8,000.00 $ 28,000 $ 20,000 Unforeseen Circumstance - PWA mandating cleanup at the site Rolling Gates and operators $ - $ - $ - $ 50,000 $ 50,000 Change of Scope - Planned to use existing gates, but deemed unusable Rec Area Gates and Hardware $ - $ - $ - $ 25,000 $ 25,000 Change of Scope and increase in material cost $ 9,643,660 $ 8,639,089 $ 998,724 $ 11,655,203 $ 2,017,391 $ 1,055,923 $ 1,066,077 $ - $ 1,055,923 $ - Extended Timeline - Timeline for project finish date extended due to design and permitting delays; scope of work increased $ 269,077 $ 258,923 $ - $ 269,077 $ - Extended Timeline - Timeline for project finish date extended due to design and permitting delays; scope of work increased $ 10,968,660 $ 9,964,089 $ 998,724 $ 12,980,203 $ 2,017,391 Backyard Turf
Irrigation
Sod Grass
Grind and Seal
Stucco for CMU Block Wall
Shade Sales
Interior Paint
Roof Framing Allowance
Column Replacement
Fold-Up Door
Lighting Package
Roof Screening
Exterior Painting
Miscellaneous
Doors/Windows
CMU Block Wall
Shade Structures
Interior Finishes (Floor/Wall)
Upstairs Carpeting
Upstairs Vinyl
Playground/Fencing
Epoxy Kitchen
Plant/Tree Allowance
Pea Gravel
Fiber Glass Bender Board
Subtotal
General Conditions
Overhead/Main Office
Total
Camera/Security System
Exterior Finishes/Landscaping
EXHIBIT 2
City Council 26 – 43 4/19/2022
Public Works Agency
www.santa-ana.org/pw
Item # 27
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
April 19, 2022
TOPIC: Ceremonial Street Naming Policy

AGENDA TITLE
Ordinance Amending Chapter 33 of the Santa Ana Municipal Code Related to the Ceremonial Naming of Streets

RECOMMENDED ACTION
Approve first reading of an ordinance amending Chapter 33 of the Municipal Code by adding Article XI relating to the ceremonial naming of streets.

DISCUSSION
On January 18, 2022, the City Council expressed an interest in recognizing outstanding individuals who have made a significant impact on their community through the commemorative or honorary naming of streets.

To allow for the recognition of individuals and philanthropic organizations that are of particular importance to the City of Santa Ana or have made significant contributions to improving the quality of life in the city, the proposed ordinance (Exhibit 1) amends Section 33 of the Santa Ana Municipal Code by adding Article XI to create regulations allowing the ceremonial naming of streets. In conjunction with the municipal code amendment, a ceremonial street naming application (Exhibit 2) has been developed, which will be submitted to the Public Works Agency by the applicant, along with the corresponding processing, fabrication, and installation fees.

The proposed Santa Ana Municipal Code amendments were developed by an Ad Hoc Committee of the Environmental Transportation Advisory Commission (ETAC) composed of the ETAC Chair, Brain Germain, and Commissioners Nathanial Greensides and Dorian Romero. On March 8, 2022, ETAC voted to approve the proposed amendments and to present them to the City Council for consideration.

ENVIRONMENTAL IMPACT
There is no environmental impact is associated with the action.

FISCAL IMPACT
There is no fiscal impact associated with this action.

City Council 27 – 1 4/19/2022
Ceremonial Street Naming Policy
April 19, 2022

EXHIBIT(S)

1. Ordinance

2. Ceremonial Street Naming Permit Application
Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Kristine Ridge, City Manager
City Council 27 – 2 4/19/2022
brs
Ordinance No. NS-XXX

ORDINANCE NO. NS-XXX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA AMENDING CHAPTER 33 OF THE SANTA

ANA MUNICIPAL CODE (STREETS, SIDEWALKS AND

PUBLIC WORKS) BY ADDING ARTICLE XI RELATING TO

CEREMONIAL STREET NAMING
WHEREAS, the Santa Ana City Council desires to recognize individuals and philanthropic organizations that are of particular importance to the City of Santa Ana or have made significant contributions to improving the quality of life in the City by ceremonially naming sections of public streets in their honor; and WHEREAS, currently, there is no formal policy addressing guidelines for the content or placement of ceremonial street signs; and
WHEREAS, a policy is needed to ensure consistency, proper neighborhood outreach, traffic safety, and appropriate sign content; and WHEREAS, this ordinance will amend the Santa Ana Municipal Code to authorize the City Council to confer ceremonial names on public streets and allow for the installation of appropriate signage, which shall be distinct from, and not change or replace, existing legal street names and signs, and recognized neighborhood association neighborhood street designations; and
WHEREAS, for ease of administration, these regulations will comprise new Article XI of Chapter 33 of the Santa Ana Municipal Code (Streets, Sidewalks and Public Works); and
WHEREAS, this ordinance is not intended to apply to the method by which the recognized neighborhood associations of the City currently place their neighborhood street designations.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. The recitals above are each incorporated by reference and adopted as findings by the City Council.

Section 2. Article XI (Ceremonial Street Naming) is hereby added to Chapter 33 of the Santa Ana Municipal Code (Streets, Sidewalks and Public Works) to read in its entirety as follows.

ARTICLE XI. - CEREMONIAL STREET NAMING
Sec. 33-259. - Purpose.

EXHIBIT 1
City Council 27 – 3 4/19/2022
brs
Ordinance No. NS-XXX

The purpose of this article is to commemorate the service, lives, and achievements of individuals, philanthropic groups of individuals, or a landmark event, affiliated with the City of Santa Ana where the individual(s) or event has had significant and clearly defined cultural, humanitarian or historic impact on the City by recognizing them with a ceremonial street name that does not cause any disruption of the existing legal street names and abutting uses. Nothing in this article shall pertain to the method by which recognized neighborhood associations place their neighborhood street designations.

Sec. 33-260. - General provisions.
(a) Only entire blocks of public streets or intersections may be granted ceremonial street names.
(b) A ceremonial street naming application may only be initiated by:
(1) A resident or owner of a property abutting the street; or (2) Neighborhood or community groups.
(c) Candidates for ceremonial street names shall be limited to the name of an individual, philanthropic organization, significant event or landmark. (d) Ceremonial street names shall be in the form of a “Sign Topper,” which is a sheet metal sign that is placed on top of the standard City street sign identification and shall adhere to the following specifications:
(1) Ceremonial street naming cannot contain a product name or be used for a commercial purpose.
(2) Ceremonial street naming must be a name of an individual, philanthropic organization, landmarks or an event.
(3) A ceremonial street Sign Topper must include the word “Honorary.” (4) No more than one ceremonial Sign Topper per street block. (5) Only one Sign Topper may be placed on any pole.
(6) Sign Toppers shall not be attached to traffic signal mast arms. (7) Ceremonial names shall not duplicate any currently existing official street names.
(8) Up to five (5) Sign Toppers may be located at any one intersection, coincident with existing street name signs.

City Council 27 – 4 4/19/2022
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Ordinance No. NS-XXX

(9) Sign Toppers may not be attached to traffic signal poles. (10) No one candidate may receive City Council approval for a Sign Topper recognition on more than one street or intersection.

Sec. 33-261. - Criteria for Ceremonial Street Naming.
(a) Candidates for ceremonial street names must exhibit a minimum of 10 years of community involvement or demonstrated an extraordinary, consistent and voluntary commitment to the community, or have had contributed significantly to the City of Santa Ana. Significant historic events or City of Santa Ana landmarks may also be considered if supported by significant and clearly defined cultural, humanitarian, or historical impact to the City.
(b) An Individual to be honored must have been dead for at least two years prior to the date of application.
(c) Candidates, who have already been honored on one street, whether ceremonial or official, may not be honored on another street.
(d) Ceremonial street names cannot be an ideology or a commercial interest.

Sec. 33-262. - Application Process.
(a) Application. An application for a ceremonial street naming must be filed with the Public Works Agency on an application form furnished by the Agency. The application must include all of the following:
(1) A statement addressing the criteria for ceremonial street naming set forth in this article.
(2) A map showing the proposed location of the entire street block(s) receiving the ceremonial street name. No fractions of a street block may receive the ceremonial street name.
(3) If a ceremonial name is proposed for an intersection, a map showing the proposed intersection. No more than five (5) locations at an intersection may receive the ceremonial name.
(4) Documentation indicating that two-thirds of the residents or owners of the lots abutting the street or intersection are in support of the ceremonial street name.

A. For the purposes of this section, only one (1) adult signature per address, either owner or renter, will be counted.

City Council 27 – 5 4/19/2022
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Ordinance No. NS-XXX

B. Documentation shall be within 60 days from the date of the application.

C. Documentation shall be submitted on a form provided by the Director of Public Works.
(b) Fees. The following fees are required for a ceremonial street naming. (1) An application fee, as established by resolution of the City Council, must be paid at the time the application is submitted.
(2) If approved by the City Council, fees for sign production, hardware costs and installation fees, as established by resolution of the City Council, must be paid prior to sign installation.
(c) Notice of Application. Within ten (10) calendar days of acceptance by the City of the ceremonial street application, the applicant must provide written notice to the legal owners of the property abutting the proposed ceremonial street or intersection by depositing the notice, properly addressed and postage paid in the United States mail to such owners.
(1) The written notice shall include the following:

A. The proposed name of the street or intersection; and B. The location of the proposed street or intersection. (2) The City shall provide the addresses of the owners of record of the properties abutting the proposed ceremonial street block(s) or intersection. (3) Applicant will be responsible for paying postage and mailing such notices using the United States mail system.
(d) Public Hearing. The City Council shall consider the application based on the testimony presented at a public hearing and a determination that the application meets the ceremonial street naming criteria standards.
(1) If a written protest against the ceremonial street naming has been signed by the residents or owners of twenty percent (20%) of all lots abutting the street, then a favorable vote of three-fourths of all City Council members is required.
(2) Otherwise, a ceremonial street application may be approved by a majority vote of City Council members.
(e) Resolution. Approval of the ceremonial street naming shall be made by City Council resolution.

City Council 27 – 6 4/19/2022
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Ordinance No. NS-XXX

Sec. 33-263. - Effective date of ceremonial street name and end date. (a) The ceremonial street name shall end ten (10) years after the date of the resolution approving the ceremonial street name.
(b) An applicant may re-apply for the ceremonial street name by the same process detailed in this article.

Sec. 33-264. - Installation and replacement.
(a) Installation. The Director of the Public Works Agency, or his or her designee, is responsible for the fabrication and installation of the ceremonial Sign Toppers. (b) Replacement and Removal. Any ceremonial Sign Topper that has become torn, damaged, defaced, or destroyed shall be repaired, replaced, or removed by the City at the sole cost of applicant following written notice to applicant.

Sec. 33-265. - Authority of the Director.

The Director of Public Works is authorized to establish rules and procedures and to produce signs, forms and other materials necessary or appropriate to implement the provisions of this article.

Section 4. The City Council finds and determines that this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, as there is no possibility it will have a significant effect on the environment and it is not a "project", as defined in Section 15378 of the CEQA Guidelines.

Section 5. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional.

Section 6. This Ordinance shall become effective thirty (30) days after its adoption.

Section 7. The Clerk of the Council shall certify the adoption of this ordinance and shall cause the same to be published as required by law.

City Council 27 – 7 4/19/2022
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Ordinance No. NS-XXX

ADOPTED this _______ day of ___________, 2022.
_________________________
Vicente Sarmiento
Mayor
APPROVED AS TO FORM:

Sonia R. Carvalho, City Attorney
By:_________________________
Brandon Salvatierra
Deputy City Attorney
AYES: Councilmembers ______________________________________ NOES: Councilmembers _______________________________________ ABSTAIN: Councilmembers _______________________________________ NOT PRESENT: Councilmembers _______________________________________ City Council 27 – 8 4/19/2022
brs
Ordinance No. NS-XXX

CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Daisy Gomez, Clerk of the Council, do hereby attest to and certify the attached Ordinance No. NS-____________ to be the original ordinance adopted by the City Council of the City of Santa Ana on _______________, and that said ordinance was published in accordance with the Charter of the City of Santa Ana.

Date: ________________ ____________________________________ Clerk of the Council
City of Santa Ana
City Council 27 – 9 4/19/2022

PUBLIC WORKS AGENCY
For more information please contact Azadeh Azad at (714) 647-5667 or email [email protected].

CEREMONIAL STREET SIGN TOPPER
Application
Applicant’s Name: _______________________________________________________________ Applicant Contact Person: _______________________________________________________________ Applicant Street Address: _____________________________________________________________________________ Office Phone: ________________________________ Mobile Phone: ____________________________ Contact Email Address: _____________________________________________________________________________ Full Name of Honoree: _____________________________________________________________________________ (as it would appear on street sign)
Full Name of Street: _____________________________________________________________________________ (to be designated)
Full name of each intersecting street within the boundary where the designation begins and ends:
___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ EXHIBIT 2

APPLICATION

FOR CEREMONIAL STREET SIGN TOPPERS
City Council 27 – 10 4/19/2022

CEREMONIAL STREET SIGN TOPPER
Application
Please check all below. Include a brief explanation of each applicable criteria (if you require more space, please provide information as an attachment):
o Cultural Impact on the City: ________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ o Historical Impact on the City: ______________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ o Humanitarian Impact on the City: _________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ o Connection to/Association with the City: __________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________

PUBLIC WORKS AGENCY
For more information please contact Azadeh Azad at (714) 647-5667 or email [email protected].

City Council 27 – 11 4/19/2022

CEREMONIAL STREET SIGN TOPPER
Application
o Connection to Geographical Area of Designated Street:
___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ o Additional Supporting Documents & Attachments
Application Check List
Complete the application, together with the required items indicated below:
o Completed Application
o Application Fee
o Design of Sign Topper per City standards
o Petition and supporting documents
o Map showing boundary & portion
of street proposed for ceremonial
street naming
You will be contacted by phone or email when application has been forwarded to and assigned to a Public Works Agency staff member.
____________________________
Date:
__________________________________________________________________ Signature of Applicant:

RECEIVED BY: ___________________________________________________ DATE: _____________________ ---IMPORTANT---
INCOMPLETE APPLICATIONS WILL NOT BE ACCEPTED AND WILL BE RETURNED TO THE APPLICANT.

Work may begin only AFTER the City has issued the Permit and appropriate fees are paid.

PUBLIC WORKS AGENCY
For more information please contact Azadeh Azad at (714) 647-5667 or email [email protected].

City Council 27 – 12 4/19/2022
City Manager Office
www.santa-ana.org/cm
Item # 28
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
April 19, 2022
TOPIC: Fireworks
AGENDA TITLE:

Charter Review Ad Hoc Committee's Recommendation on Fireworks

RECOMMENDED ACTION
Accept informational report and provide direction to staff.

DISCUSSION
Background
At the December 21, 2021 City Council meeting, Mayor Pro Tem Bacerra, Councilmember Mendoza, and Councilmember Phan added the following councilmember requested item: Discuss and Consider Directing City Manager to Direct Staff to Introduce an Ordinance for a Ban on the Use, Possession and Sale of All Fireworks. There was consensus among the City Council to have the Charter Review Ad Hoc Committee consider a Charter amendment prohibiting all fireworks in Santa Ana.

Legislative History
The term “fireworks” has appeared in the Santa Ana Municipal Code since as early as 1984. Specifically, on April 16, 1984, the City Council adopted Ordinance No. NS-1727, adopting the 1982 Edition of the Uniform Fire Code as amended. Of significance, the ordinance defines and prohibits “dangerous fireworks,” defines “safe and sane fireworks,” and expressly allows discharging of safe and sane fireworks as specified. These regulations are found in Chapter 14, Article II of the Santa Ana Municipal Code.

Definition of Dangerous Fireworks
(1) "Dangerous fireworks" includes all of the following:
(a) Any fireworks which contain any of the following:
(1) Arsenic sulfide, arsenates, or arsenites.
(2) Boron
(3) Chlorates, except:
(A) In colored smoke mixture in which an equal or greater amount of sodium bicarbonate is included.

City Council 28 – 1 4/19/2022
Fireworks
April 19, 2022

(B) In caps and party poppers.
(C) In those small items (such as ground spinners) wherein the total powder content does not exceed 4 grams of which not greater than 15 percent (or 600 milligrams) is potassium, sodium, or barium chlorate.
(4) Gallates or Gallic acid.
(5) Magnesium (magnesium-aluminum alloys, called magnalium, are permitted). (6) Mercury salts.
(7) Phosphorus (red or white except that red phosphorus is permissible in caps and party poppers).
(8) Picrates or picric acid.
(9) Thiocyanates.
(10) Titanium, except in particle size greater than 100-mesh. (11) Zirconium.
(b) Firecrackers.
(c) Skyrockets and rockets, including all devices which employ any combustible or explosive material and which rise in the air during discharge. (d) Roman candles, including all devices which discharge balls of fire into the air. (e) Chasers, including all devices which dart or travel about the surface of the ground during discharge.
(f) Sparklers more than 10 inches in length or one-fourth of one inch in diameter. (g) All fireworks designed and intended by the manufacturer to create the element of surprise upon the user. These items include, but are not limited to, autofoolers, cigarette loads, exploding golf balls, and trick matches.
(h) Fireworks known as devil-on-the-walk, or any other fireworks which explodes through means of friction, unless otherwise classified by the State Fire Marshal pursuant to this part.
(i) Torpedoes of all kinds which explode on impact.
(j) Fireworks kits.
(k) Such other fireworks examined and tested by the State Fire Marshal and determined by him, with the advice of the State Board of Fire Services to possess characteristics of design or construction which make such fireworks unsafe for use by any person not specially qualified or trained in the use of fireworks.

Definition of Safe and Sane Fireworks
"Safe and sane fireworks" means any fireworks which do not come within the definition of "dangerous fireworks" or "exempt fireworks".

When Safe and Sane Fireworks May Be Discharged
Sales and discharging are allowed during the following times:
• July 1st: 12 p.m. to 10 p.m.
• July 2nd: 10 a.m. to 10 p.m.
• July 3rd: 10 a.m. to 10 p.m.
• July Fourth: 10 a.m. to 9 p.m.

City Council 28 – 2 4/19/2022
Fireworks
April 19, 2022

Additional elements of the City’s fireworks regulations includes the following:
• Establishes a permitting process for fireworks booths • Capped at 85
• Permits issued using a lottery
• Establishes a fee
• Prescribes regulations for temporary stands
• Establishes public display permits
• Outlines storage and disposal requirements
• Declares that an individual cannot discharge fireworks toward any other person or in any other manner which threatens the safety of persons or property The City’s fireworks regulations have been amended four times, each time as part of the City Council adopting by reference updates to the State’s Uniform Fire Code. Below is an overview of changes to the City’s fireworks regulations as part of this process:

Date Changes
May 7, 1990 Discharge of fireworks
February 3, 2003 Application for permit; Stand location on premises November 15, 2010 Sale of safe and sane fireworks; hours of sale; Permits, issuance; Application for permit; Fee; Clean premises deposit; Electric circuits; Trash removal; Fireworks; public display; Exceptions; Prohibited areas
November 18, 2013 Application for permit; Regulations for temporary stands; Clean premises deposit; Stand location on premises; No smoking on premises; Electric circuits; Fireworks; public display; Seizure of fireworks
Implementation and Enforcement
Fireworks is a cross-departmental effort that encompasses several City departments. The Santa Ana Police Department enforces fireworks regulations, the Orange County Fire Authority responds to fires and injuries, and the Planning and Building Agency implements the permitting process for fireworks booths.

City Council 28 – 3 4/19/2022
Fireworks
April 19, 2022

Police Department
Regarding fireworks, the Fourth of July Program includes education/outreach and enforcement/confiscation efforts. Field enforcement activity consists of undercover activity and uniformed enforcement. Prior to dedicated/assigned uniformed enforcement, Directed Patrol and regular patrol officers conduct a variety of sting operations and field fireworks-related calls for service. The majority of fireworks seizures occur prior to the Fourth of July holiday weekend.

Throughout the listed operations periods below, dedicated/assigned officers worked in both marked and unmarked police vehicles to respond to fireworks-related calls for service and enforce observed fireworks violations via confiscation and the issuance of administrative citations. These officers also handled a variety of music and party calls related to the Fourth of July holiday period.

The list below includes the respective year, operational period, total overtime hours, and total overtime cost for the Fourth of July operational period from 2017-2021.

Year Operational
Period
Total
Overtime
Hours
Total
Overtime
Costs
2017 313 $22,536
2018 6/30 – 7/4 152 $10,944
2019 6/29 – 7/5 45 $3,975
2020 6/29 – 7/5 1,234.5 $113,574
2021 6/28 – 7/5 616 $59,203
Below is a by-year breakdown of the calls for service for the entire calendar year (note that the reporting period below differs from the table above):

Year Calls for
Service
2017 1,156
2018 1,128
2019 1,165
2020 2,673
2021 1,777
Fire Department: Orange County Fire Authority (OCFA)
OCFA is unable to sort fireworks-related expenditure data into specific itemized unit costing of fireworks-related calls for service, including investigations and fire prevention services. This is because OCFA provides a base annual contract price to the City that includes all necessary services such as emergency response, fire investigations, and fire prevention services that is inclusive of all call types. In short, OCFA’s regional delivery system is one price that covers all services. However, OCFA prepares annual After Action City Council 28 – 4 4/19/2022
Fireworks
April 19, 2022

Reports that depict fireworks-related activity for each year. The After Action Reports for calendar years 2017 through 2021 are attached to this staff report (Exhibit 1). In summary, from 2017 to 2021, OCFA responded to 335 fireworks-related calls for service:

Year Calls for Service
2017 74
2018 75
2019 69
2020 62
2021 55
Planning and Building Agency
The Planning and Building Agency’s Building Division administers the lottery and issues permits relating to fireworks stands. The cost to administer this program is approximately $7,000 to $8,500 per year. This cost includes staff time to issue permits, schedule and perform inspections, review fireworks applications, update the City website, handout materials, hold safety meetings, and correspond with vendors. To illustrate their activity, below is a table with a by-year breakdown of electrical permits issued associated with fireworks stands under this program, along with revenue generated for that year:

Year Electrical
Permits Issued
Electrical Permit
Fees Received
2017 70 $ 6,643.70
2018 49 $ 4,806.90
2019 67 $ 6,827.97
2020 58 $ 6,142.78
2021 53 $ 5,819.40
Fireworks Stands
It is important to note that the City does not collect information relating to revenues received by organizations that operate fireworks stands.

Environmental Impacts
Fireworks are classified as hazardous by the Federal Hazardous Substances Act because they can have dangerous adverse effects, including fires, injury, and death.

Further, fireworks explosions emit gaseous sulfur dioxide, carbon dioxide and carbon monoxide, hazardous trace elements (such as aluminum, manganese, and cadmium), and particulate matter (PM). Exposure to PM is associated with adverse health effects, most of which affect the respiratory and cardiovascular systems. For example, breathing fine particulate matter can lead to a wide variety of cardiovascular and respiratory health effects, such as heart attacks, asthma aggravation, decreased lung function, coughing, or difficulty breathing, and may lead to premature death in people with heart or lung disease.

City Council 28 – 5 4/19/2022
Fireworks
April 19, 2022

At the national level, the U.S. Environmental Protection Agency (EPA) sets national ambient air quality standards for PM. In a 2015 study, Dian Seidel and Abigail Birnbaum (2015) found that hourly PM2.5 (fine particulate matter with diameters that are generally

2.5 micrometers and smaller) concentrations during the evening of July 4 and morning of July 5 are higher than on the two preceding and following days in July. The national average increase is largest (21 mg/m3) at 9-10 p.m. on July 4 and drops to zero by noon on July 5 (p. 197). This same study cites that PM levels in the South Coast Air Basin (which comprises all of Orange County and the urban portions of Los Angeles, Riverside, and San Bernardino Counties) are higher during this same period when compared to other sites that were included in their study.

At the local level, the South Coast Air Quality Management District (South Coast AQMD) monitors local air quality and regulates stationary sources of air pollution in the South Coast Air Basin. Data from South Coast AQMD’s monitors have found that air quality in the South Coast Air Basin was substantially worse during the 2020 Fourth of July weekend than any year in the last decade. Based on video footage and the cancellation of most large public events, South Coast AQMD staff suspects that it is likely that a combination of increased use of safe and sane fireworks and stagnant air led to trapped air pollution that lingered for longer than usual.

Overall average concentrations of fine particulate matter (PM2.5) in the South Coast Air Basin were 70 percent higher than in previous years between 7 p.m. on July 4 to 7 a.m. on July 5. Monitors picked up an even greater increase in the maximum hourly measurements of PM2.5, with the highest concentrations detected at the Central Los Angeles, North Hollywood and Anaheim stations. Some instruments were found to have so much particulate matter residue on them that it resulted in readings so high the data could not be properly validated.

Fireworks Used for Religious Celebrations
While fireworks are commonly used to commemorate cultural celebrations, such as the Fourth of July in the United States, Fiestas Patrias in Hispanic America, Lunar New Year in East and Southeast Asian countries, the Lantern Festival and Spring Festival in China, and New Year’s celebrations worldwide, they are sometimes used for religious celebrations. Examples of religious celebrations that typically are accompanied by the use of fireworks include Diwali in India and Taoism in China. Although the Santa Ana Municipal Code does not define “Exempt Fireworks,” it is important to note that the California Health and Safety Code Section 12508 provides the following definition:
"Exempt fireworks" means any special item containing pyrotechnic compositions which the State Fire Marshal, with the advice of the State Fire Advisory Board, has investigated and determined to be limited to industrial, commercial, agricultural use, or religious ceremonies when authorized by a permit granted by the authority having jurisdiction.

City Council 28 – 6 4/19/2022
Fireworks
April 19, 2022

Recommendation from the Ad Hoc Committee: Consider an Ordinance Prohibiting the Sale, Use, Storage, or Possession of All Fireworks for Either City Council Consideration or to be Presented to the Voters
Attached for discussion only is a draft ordinance (Exhibit 2) prohibiting the sale, use, storage, or possession of all fireworks. The Ad Hoc Committee recommends that the City Council either consider an ordinance for City Council consideration or an ordinance to be submitted to the voters as a ballot measure for the November 8, 2022 general municipal election. An ordinance for City Council consideration means that the ordinance can be approved, amended, and repealed by a majority vote of the City Council, whereas an ordinance presented to and approved by a majority of voters can only be amended or repealed by the voters.

Below is a summary of the provisions of the draft ordinance:
 Declares that it shall be unlawful for any person to possess, store, offer for sale, expose for sale, sell at retail, or use or explode any fireworks.  Maintains the definition of fireworks (the same as defined California Health and Safety Code section 12511).
 Defines “Host” and declares that no host shall allow any person to violate a provision of the Fireworks Regulations on the host's private property.  Declares that the Police Chief, Fire Chief, or their designee may seize fireworks at the fireworks owner’s expense.
 Declares that violation of the Fireworks Regulations shall constitute grounds for issuance of an administrative citation, designated as an infraction, and assessment of a fine.
 References the existing fine amount of $1,000.
 References a fireworks disposal fee of $250.
 Declares that any person who violates the Fireworks Regulations shall be liable for the response costs (costs associated with law enforcement, fire, medical, or other emergency personnel responding to, remaining at, and leaving the scene of a gathering).
o Response costs include, but are not limited to, the following: salaries and benefits of law enforcement, fire, medical, or other emergency personnel, administrative costs, medical treatment costs, costs of using City equipment, cost of repairing damaged City equipment or property, and other costs associated with enforcing the Fireworks Regulations.

The draft ordinance text may be used in either format (an ordinance for City Council consideration and an ordinance to be presented to the voters).

City Council 28 – 7 4/19/2022
Fireworks
April 19, 2022

Draft Resolution with Ballot Question Language
For discussion, and should the City Council desire to direct staff to prepare an ordinance to be presented to the voters, attached is a draft resolution (Exhibit 3) giving notice of a general municipal election with the following ballot question:

Shall Chapter 14 of the Santa Ana Municipal Code be amended to ban the sale and use of fireworks within the City of Santa Ana? The draft ordinance to be presented to the voters, in its final form, would accompany the ballot measure.

Options
The City Council has the following options relating to this matter:

1. Concur with the Ad Hoc Committee and direct staff to return to the City Council with an ordinance prohibiting the sale, use, storage, or possession of all fireworks for City Council consideration.

2. Concur with the Ad Hoc Committee and direct the City Attorney and Clerk of the Council to prepare necessary documents to place an ordinance prohibiting the sale, use, storage, or possession of all fireworks on the ballot for November 8, 2022 general municipal election.

3. Take no action.

ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.

FISCAL IMPACT
There is no fiscal impact associated with this action.

EXHIBIT(S)

1. OCFA After-Action Reports for 2017 through 2021

2. Draft Ordinance (for discussion only)

3. Draft Resolution with ballot language (for discussion only) Submitted By: Kristine Ridge, City Manager
Approved By: Kristine Ridge, City Manager
City Council 28 – 8 4/19/2022

ORANGE COUNTY
2017 Independence Day
After Action Report
Prepared by the Orange County Fire Authority
Irvine, CA
City Council 28 – 9 4/19/2022
2 Table of Contents
Executive Summary 3
Background and Methodology 4
Fireworks Policy in Orange County 5
Historical Fireworks Injury Trends 6
Types of Fireworks Involved in Injuries 7
Spatial Analysis 8
Fireworks-Related Fire Incidents and
Property Loss
9, 10
Public Display Incidents 11
Confiscated Fireworks 12
National Statistics Comparison 13-15
Appendix A: Injuries by Emergency Care
Facility
16 City Council 28 – 10 4/19/2022
3 Executive Summary
Ten Orange County cities permitted the sale of safe and sane fireworks in 2017, for a total of 254 stands throughout the County. A total of 33 public fireworks displays provided safe celebration options for the communities within Orange County. This year, there were no reported injuries as a result of a public display firework show. A few safety concerns were raised by some displays within OCFA (Orange County Fire Authority) jurisdiction that will be addressed for the upcoming 2018 Independence Day festivities.

In 2017, the injuries associated with fireworks decreased to 29 total injuries. Last year, Orange County reported 39 injuries that were related to fireworks. In comparison to the Consumer Product Safety Commission’s (CPSC) 2016 fireworks injury statistics, Orange County’s total fireworks injuries are less than expected for our population. Safe and sane fireworks did not contribute to any injuries that were reported this year. Illegal fireworks contributed to 45% of Orange County’s reported injuries while 55% of reported injuries were caused by an unknown type of firework.

Mortars were the firework type that caused the most injuries in 2017. As in previous years, a majority of the reported injuries within Orange County were burns on the hands and fingers.

Firework injuries reported by hospital emergency rooms and urgent care facilities were mapped and compared to areas where the sale of safe and sane fireworks has been permitted. Results are a clear indication that hospitals near the cities where safe and sane firework sales are permitted, reported more fireworks-related injuries.

This year, California experienced very heavy rainfall during the winter months. The rainfall elevated wildfire danger as it contributed to the substantial growth of vegetation that eventually dried out and became foliage that can catch fire and spread quickly. Fireworks safety is more critical than ever to prevent dangerous fires and injuries. While Orange County’s reported injuries decreased this year, there was a considerable uptick in several other areas. Orange County experienced a significant increase in estimated property loss; almost tripling from last year’s $53,600 to $147,121 this year. The acreage lost due to fireworks-related fires was higher than it has been in the past 4 years. Additionally, the amount of both consumer and illegal fireworks that were confiscated this year far surpasses the confiscation numbers of the last 4 years.

We would like to take this opportunity to thank all of the fire departments and medical providers in Orange County who contributed data to the analysis in this report.

City Council 28 – 11 4/19/2022
4 Background and Methodology
Each year following the Independence Day holiday, the Orange County Fire Authority gathers data in order to analyze the overall impact of fireworks throughout Orange County. The information included in this report was contributed by hospital emergency rooms, urgent care facilities and Orange County Fire Departments to supplement OCFA’s own fireworks data.

Injury data was solicited from a total of 24 hospital emergency rooms and 31 urgent care facilities throughout Orange County for the study period of June 28-July 5, 2017. This year, we received responses from 0 urgent care facilities and 18 hospital emergency rooms, for an overall response rate of 32%. OCFA’s own Emergency Medical Services data was also analyzed for injuries related to fireworks. The fireworks injuries contained in this report are only those that were reported to us; it is likely many more injuries occurred that were either not treated or not reported. National statistics extracted from the most recent 2016 CPSC Fireworks Report were also used for a comparison study.

Fireworks-related fire incident and property loss information was gathered from all 11 Orange County municipal fire departments, for a response rate of 100%. Narratives from the 57 fireworksrelated fire incidents that OCFA responded to were analyzed for qualitative information regarding the impact of these incidents within Orange County communities. Local newspaper and social media sources were also utilized for information regarding fireworks-related injuries and various fire-related incidents that were caused by fireworks.

City Council 28 – 12 4/19/2022
5 Fireworks Policy in Orange County
In 2017, ten Orange County cities permitted the sale of safe and sane fireworks for a total of 254 retail consumer fireworks stands throughout the County.

City Quantity
Anaheim 16
Buena Park 30
Costa Mesa 35
Fullerton 15
Garden Grove 45
Huntington Beach 15
Santa Ana 74
Stanton 6
Villa Park 3
Westminster 15
Total 254
This year, the City of Anaheim revamped their fireworks program by allowing only 16 stands to operate booths in the City. For the past 2 years, Anaheim allowed every nonprofit to participate, but for 2017, applications were accepted into a lottery for 8 slots. Another 8 slots were reserved for Anaheim high schools. Although this limited the number of nonprofits allowed to participate, it meant that those nonprofits that were selected would stand to make much more in profits this year as opposed to previous years.

In Santa Ana, illegal mortars and rockets were fired all night across streets and were being aimed at people and cars. More than 5,700 illegal fireworks were seized between the hours of 8pm and 2am. There were close to 400 calls that came in to police and the holiday resulted in 16 arrests, each with a $1,000 fine. Santa Ana experienced close to $40,000 in property/content losses due to several building and vehicle fires that took place as a result of firework activity within the city.

City Council 28 – 13 4/19/2022
6 Historical Fireworks Injury Trends
In 2017, Orange County hospital emergency rooms reported 29 injuries that were directly caused by fireworks. This is a decrease in comparison to 2016, when 39 injuries were reported and also a decrease from 2015 when 35 injuries were reported. Over the past 5 years, Orange County averaged close to 34 fireworks-related injuries around the Independence Day holiday (June 28th- July 5th).
2013 2014 2015 2016 2017
0-7 14 4 9 3 2
8-16 9 4 13 10 5
17-21 5 3 3 8 5
Adult 11 16 10 18 15
Unknown 0 0 0 0 2
TOTAL 39 27 35 39 29
The number of fireworks-related injuries for adult patients was the highest this year; although it was a slight decrease from 2016 when 18 adult patients were reported. Reported injuries for patients under the age of 21 (age brackets 0-7, 8-16 and 17-21) decreased this year by almost half.

See Appendix A for detailed information about injuries reported by emergency rooms and urgent care facilities.
0 5
10 15
20 25
30 35
40 45
2013 2014 2015 2016 2017
Orange County Fireworks Injuries by Age:

Historical 5 Year Trends
Age 0-7
Age 8-16
Age 17-21
Adult
Total
City Council 28 – 14 4/19/2022
7 Types of Fireworks Involved in Injuries

This year in Orange County, illegal fireworks accounted for 45% of all fireworks-related injuries while the remaining 55% of injuries were caused by an unknown type. While there were a significant number of “unknown” type of fireworks, Mortars were the type of illegal fireworks that caused the most reported injuries in 2017. Interestingly, Safe and Sane fireworks did not cause any reported injuries in 2017.
0 3 3
1 1
5 16
OC 2017 Fireworks Injuries by Type
Safe and Sane
Illegal
Unknown
0%
45%
55%
Legal Status of Injury Causing
Fireworks for 2017
Safe and Sane
Illegal
Unknown
City Council 28 – 15 4/19/2022
8 Spatial Analysis of Fireworks Injuries
This map displays the locations of the Orange County hospitals that have reported fireworksrelated injuries in 2017. The red stars indicate the cities that allowed the sale of safe and sane fireworks. The mustard hospital bag marker indicates hospitals that reported between 1-4 injuries and the purple ambulance marker indicates hospitals that reported 5 or more injuries during the study period of June 28, 2017 through July 5, 2017. St. Joseph’s Hospital was the only hospital to report 5 fireworks-related injuries this year. This information does not conclude that the sale of fireworks caused more injuries, but the spatial relationship of fireworks-related injuries that were treated in and around the safe and sane cities is indicative of an on-going trend that injuries are still happening very near to the safe and sane cities.

City Council 28 – 16 4/19/2022
9 Fireworks-Related Fire Incidents and
Property Loss
Historical Property Loss
2013 2014 2015 2016 2017
Property Loss $220,050 $9,580 $300,540 $53,600 $147,121 Acreage Lost .40 acres .02 acres .025 acres 1.21 acres 4.38 acres In comparison to 2016, reported fireworks-related property loss increased considerably in Orange County for 2017. Additionally, reported acreage that was lost due to fireworks-related fires, was significantly much higher than in the past 4 years. Illegal fireworks ignited a building fire in Placentia which resulted in an estimated $27,000 in damages. Fireworks caused a vehicle fire in Santa Ana which caused $20,000 in property loss. Newport Beach reported a $10,000 loss due to a structure fire. This year, Santa Ana had an incident count of 30 while in 2016, the incident count was only 6. There were 72 incident counts reported for Anaheim alone this year.

In Orange County Fire Authority’s jurisdiction, 57 fireworks-related incidents were reported this year.

Incident Calls/Type of Fire
Roof/Structure Fire 8
Lawn Fire 0
Trash Fire 15
Tree Fire 8
Brush/Acre Fire 14
Vehicle Fire 1
Other 11
California experienced heavy rainfall during the past year which resulted in thick vegetation that has dried in the summer months. This dry brush combined with the continued use of illegal fireworks has elevated wildfire and fire danger within Orange County, which was evident in the 164 incident counts that were reported by Orange County fire departments.

City Council 28 – 17 4/19/2022
10 2017 FIREWORKS-RELATED PROPERTY LOSS
Note: Red denotes cities that permit the sale of safe and sane fireworks CITY COUNT $ LOSS ACREAGE COMMENTS
Aliso Viejo 2 1.00 0 1 trash, 1 other
Anaheim 72 0 3.0 N/A
Brea 7 0 0 N/A
Buena Park 9 1,120 0.2 2 brush, 2 trash, 1 other, 4 tree Costa Mesa 2 0 0 N/A
Cypress 0 0 0 N/A
Dana Point 0 0 0 N/A
Fountain Valley 0 0 0 N/A
Fullerton 7 0 0 N/A
Garden Grove 10 0 0 4 tree, 6 trash
Huntington Beach 4 500 0 1 vehicle
Irvine 2 0 0 2 other
Ladera Ranch 0 0 0 N/A
La Palma 0 0 0 N/A
Laguna Beach 1 0 0 N/A
Laguna Hills 1 0 0.1 1 brush
Laguna Niguel 0 0 0 N/A
Laguna Woods 0 0 0 N/A
Lake Forest 0 0 0 N/A
Los Alamitos 0 0 0 N/A
Mission Viejo 0 0 0 N/A
Orange 3 55,000 0 N/A
Newport Beach 1 10,000 0 1 structure
Placentia 3 29,000 0.1 1 structure, 1 brush, 1 other
Rancho Santa
Margarita
0 0 0 N/A
San Clemente 0 0 0 N/A
San Juan
Capistrano
0 0 0 N/A
Santa Ana 30 39,000 0.19 5 building, 8 trash, 4 tree, 7 brush, 1 vehicle, 5 other
Seal Beach 0 0 0 N/A
Stanton 2 0 0 2 other
Tustin 1 800 0 1 trash
Unincorporated OC 7 11,700 0.78 1 building, 3 trash, 3 brush Villa Park 0 0 0 N/A
Westminster 0 0 0 N/A
Yorba Linda 0 0 0 N/A
COUNTY TOTAL 164 $147,121 4.38
Note that incidents reported on this list are only the incidents that were reported with a potential property or acreage loss.

City Council 28 – 18 4/19/2022
11 Public Display Incidents
There were 33 public displays in Orange County this year. OCFA took part in 22 of those public displays. Of the 22 public displays, there were no injuries and no fires reported as a result of the public displays. There was 1 violation reported for a carnival in San Juan Capistrano where the pyrotechnics technician allowed family members within the established fallout zone. OCFA is working with the city to eliminate this issue for next year’s public display.

Orange County shows outside of OCFA areas included: 1 in Anaheim, 2 in Costa Mesa, 1 in Fullerton, 1 in Huntington Beach, 3 in Laguna Beach, and 3 in Newport Beach.

The following table details the malfunctions/injuries/fires that occurred at 5 Orange County Independence Day firework display shows:

City Injuries Health &
Safety
Violations
Fires Malfunctions/Comments
San Juan Capistrano 0 1 0 15 shells misfired
Mission Viejo 0 0 0 (3) 3” shells misfired
Rancho Santa Margarita 0 0 0 2/3 of the show did not fire – fire board shorted
Laguna Niguel 0 0 0 (15) 4” shells, (5) 6” shells, (12) 3” shells misfired
Santa Ana 0 0 0 60 shells misfired
City Council 28 – 19 4/19/2022
12 Confiscated Fireworks
Each year, Orange County Fire Authority measures the amount of fireworks confiscated over the Independence Day holiday. In 2017, the amount of confiscated fireworks was significantly higher than the past 4 years. Brea and Fullerton confiscated more fireworks this year than ever before.

Costa Mesa confiscated well over 2,500 pounds of fireworks while Huntington Beach confiscated a little over 1,700 pounds of fireworks. The following tables represents this information, along with data provided by Orange County fire departments.

FIRE DEPARTMENT NAME ILLEGAL CONSUMER TOTAL
Anaheim Fire & Rescue 50 lbs 0 50 lbs
Brea Fire Department 75 lbs 0 75 lbs
Costa Mesa Fire Department 2000 lbs 587 lbs 2587 lbs
Fountain Valley Fire Department 0 0 0
Fullerton Fire Department 100 lbs 0 100 lbs
Garden Grove Fire Department 300 lbs 0 300 lbs
Huntington Beach Fire Department 1715 lbs 3 lbs 1718 lbs Laguna Beach Fire Department 0 0 0
Newport Beach Fire Department 26.6 lbs 23.2 lbs 49.8 lbs Orange City Fire Department 100 lbs 0 100 lbs
Orange County Fire Authority 274.5 lbs 13.5 lbs 288 lbs ORANGE COUNTY TOTAL 4641.1 lbs 626.7 lbs 5267.8 lbs
Confiscated Illegal Fireworks
2013 2014 2015 2016 2017
Consumer 35 lbs* None 52.4 lbs** 30 lbs*** 626.7 lbs
Dangerous/Illegal 209 lbs* 824.5 lbs 877 lbs** 3104 lbs*** 4641.1 lbs *Huntington Beach statistics included
**Newport Beach, Huntington Beach and Fountain Valley statistics included ***Anaheim and Laguna Beach statistics NOT included
City Council 28 – 20 4/19/2022
13 National Statistics Comparison
According to the 2016 CPSC Annual Fireworks Report, fireworks were involved in an estimated 11,100 injuries treated in US hospital emergency departments during calendar year 2016. Orange County’s average number of fireworks injuries was 29 in 2017 which was a decrease from the 39 injuries reported in 2016. The same ten cities allowed for the sale of safe and sane fireworks in 2017 as they did in 2016. In comparison to the national average of injuries reported, Orange County seems to be significantly lower in average injuries. This difference could be attributed to the fact that the sale of safe and sane fireworks is limited to 10 Orange County cities, while 47 US states allow the sale of consumer and/or safe and sane fireworks (with various local restrictions).

Nationally, 61% of fireworks injuries were experienced by males and 39% of fireworks injuries were experienced by females. This year in Orange County, the gender breakdown was very closely aligned with the national average, with 55% of fireworks injuries experienced by males, 38% of fireworks injuries experienced by females while 7% of the gender of firework injuries remains unknown.
61%
39%
2016 CPSC Gender
Breakdown
Male Female
55% 38%
7%
OC 2017 Gender
Breakdown
Male Female Unknown
City Council 28 – 21 4/19/2022
14 The type of injuries reported within Orange County this year very closely aligns with the national average. As with previous years, burns make up the majority of fireworks-related injuries in Orange County, at 62% this year. This year, the percentage is lower than the national rate of 69% for burns. Orange County experienced very few fractures and sprains this year, which aligns with the national average of 2%.

Burns 69%
Fractures/Sprains 2%
Contusion/Laceration 11%
Other
18%
CPSC 2016 TYPE OF INJURIES
Burns Fractures/Sprains Contusion/Laceration Other
Burns
62%
Fractures/Sprains
3%
Contusion/Laceration
21%
Other
14%
OC 2017 TYPE OF INJURIES
Burns Fractures/Sprains Contusion/Laceration Other
City Council 28 – 22 4/19/2022
15 In Orange County, most injuries were to the hands or fingers. While eye, hand/finger and leg percentages for Orange County were slightly higher than the national averages, the arm, trunk/other and head/face/ear categories came in lower than the national percentages reported by CPSC for 2016.

Arm
8%
Eye
9%
Head/Face/Ear
20%
Hand/Finger
33%
Leg
18%
Trunk/Other
12%
CPSC 2016 BODY REGIONS INJURED
Arm Eye Head/Face/Ear Hand/Finger Leg Trunk/Other
Arm
3%
Eye
14%
Head/Face/Ear
10%
Hand/Finger
45%
Leg
28%
OCFA 2017 BODY REGIONS INJURED
Arm Eye Head/Face/Ear Hand/Finger Leg
City Council 28 – 23 4/19/2022
16 Appendix A
2017 INJURIES BY EMERGENCY CARE FACILITY

AGE GENDER DESCRIPTION OF INJURY CARE FACILITY
44 M Watching neighbor’s fireworks from 8-10 feet away Orange Coast Memorial 18 M Tried to light fuse and firework exploded Orange Coast Memorial 49 F Burned by neighbor’s fireworks St. Joseph Hospital 24 M Holding roman candle in hand St. Joseph Hospital
27 M Mortar fell over and exploded St. Joseph Hospital
17 M Mortar went off and hit left leg St. Joseph Hospital 55 F Struck by firework from neighbor’s house St. Joseph Hospital 42 M Sparkler backfired to left hand Placentia Linda Hospital 5 F Unknown firework caused burns Fountain Valley Regional 20 F Unknown firework caused burns to foot Fountain Valley Regional 10 F Bottle rocket caused burn to leg Fountain Valley Regional 27 M Unknown firework exploded Fountain Valley Regional 51 F Sparkler caused burns Kaiser-Anaheim
10 M Firecracker caused burns to thumb OC Global Medical Center 30 M Firework exploded in hand OC Global Medical Center 19 M Mortar blew up in hand OC Global Medical Center
53 F Unknown firework caused burn to foot OC Global Medical Center 18 M Mortar went off in backpack HOAG Memorial
12 M Unknown firework hit eye while on ladder HOAG Memorial 13 M Unknown firework caused burn to leg HOAG Memorial
29 F Unknown firework exploded in hand UCI
39 F Unknown firework caused laceration to eye Los Alamitos Medical Center 48 M Fell off roof while watching firework public display Chapman Global 38 F Firecracker that was thrown caused burn to leg South Coast Global Medical 14 M Mortar exploded in hand La Palma Intercommunity
N/A F Unknown firework caused burn to hand St. Jude Medical Center N/A M Unknown firework caused burn to hand St. Jude Medical Center 29 F Unknown firework exploded in hand West Anaheim Medical 6 M Sparkler went into eye West Anaheim Medical
City Council 28 – 24 4/19/2022

ORANGE COUNTY
2018 Independence Day
After Action Report
Prepared by the Orange County Fire Authority
Irvine, CA
City Council 28 – 25 4/19/2022
2 Table of Contents
Executive Summary 3
Background and Methodology 4
Fireworks Policy in Orange County 5
Historical Fireworks Injury Trends 6
Types of Fireworks Involved in Injuries 7
Spatial Analysis 8
Fireworks-Related Fire Incidents and
Property Loss
9, 10
Public Display Incidents 11
Confiscated Fireworks and Citations 12
National Statistics Comparison 13-15
Appendix A: Injuries by Emergency Care
Facility
16 City Council 28 – 26 4/19/2022
3 Executive Summary
Ten Orange County cities permitted the sale of safe and sane fireworks in 2018, for a total of 229 stands throughout the County. A total of 25 public fireworks displays provided safe celebration options for the communities within Orange County.

In 2018, the injuries associated with fireworks increased to 38 total reported injuries. Last year, Orange County reported 29 injuries that were related to fireworks. In comparison to the Consumer Product Safety Commission’s (CPSC) 2017 fireworks injury statistics, Orange County’s total fireworks injuries are less than expected for our population. While last year, there were no reported Safe and Sane fireworks-related injuries, this year, Safe and Sane injuries accounted for 13% of reported county-wide injuries. 19% of fireworks-related injuries were due to illegal fireworks while the outstanding 68% of injuries remain unknown. As in previous years, a majority of the reported injuries within Orange County were burns to the eyes, hands and fingers.

Firework injuries reported by hospital emergency rooms and urgent care facilities were mapped and compared to areas where the sale of Safe and Sane fireworks has been permitted. Results are a clear indication that hospitals near the cities where Safe and Sane firework sales are permitted, did not necessarily report more injuries than those hospitals that are not near those same cities.

Orange County experienced a slight decrease in estimated property loss this year. The acreage lost due to fireworks-related fires was also lower than it was last year. Additionally, the amount of both consumer and illegal fireworks that were confiscated (by local fire departments) this year has gone down over 2,300 pounds compared to 2017.

With devastating wildfires forcing evacuations and destroying thousands of homes, wildfires have become a major concern for many Southern California citizens. Fireworks have become a wildfire liability and there is deliberation about the possibility of an outright ban on fireworks in fire-prone California. There have been more than 2,350 wildfires in California within the first half of 2018.

This year, many wildfire-plagued cities across America have turned to drones as an alternative to fireworks. While this has not yet become the norm for California, it could very well be on the horizon as the future for holiday festivities. Orange County has yet to see a drone show, but it would be no surprise if one were to take place in the near future.

We would like to take this opportunity to thank all of the fire departments and medical providers in Orange County who contributed data to the analysis in this report.

City Council 28 – 27 4/19/2022
4 Background and Methodology
Each year following the Independence Day holiday, the Orange County Fire Authority gathers data in order to analyze the overall impact of fireworks throughout Orange County. The information included in this report was contributed by hospital emergency rooms, urgent care facilities and Orange County Fire Departments to supplement OCFA’s own fireworks data.

Injury data was solicited from a total of 25 hospital emergency rooms and 103 urgent care facilities throughout Orange County for the study period of June 30th-July 5, 2018. This year, we received responses from 3 urgent care facilities and 11 hospital emergency rooms, for an overall response rate of 9%. OCFA’s own Emergency Medical Services data was also analyzed for injuries related to fireworks. The fireworks injuries contained in this report are only those that were reported to us; it is likely many more injuries occurred that were either not treated or not reported. National statistics extracted from the most recent 2017 CPSC Fireworks Report were also used for a comparison study.

Fireworks-related fire incident and property loss information was gathered from 10 out of 11 Orange County municipal fire departments, for a response rate of 90%. Narratives from the 69 fireworks-related fire incidents that OCFA responded to were analyzed for qualitative information regarding the impact of these incidents within Orange County communities. Local newspaper and social media sources were also utilized for information regarding fireworks-related injuries and various fire-related incidents that were caused by fireworks.

City Council 28 – 28 4/19/2022
5 Fireworks Policy in Orange County
In 2018, 10 Orange County cities permitted the sale of safe and sane fireworks for a total of 229 retail consumer fireworks stands throughout the County.

City Quantity
Anaheim 16
Buena Park 28
Costa Mesa 33
Garden Grove 39
Huntington Beach 15
Santa Ana 75
Stanton 5
Villa Park 3
Westminster 15
Total 229
Anaheim Fire and Rescue experienced a 16% increase in firework related calls this year. Also, citations increased from 2 in 2017 to 17 in 2018. There was a garage fire in Anaheim that is still under investigation but most likely caused by illegal fireworks. Although no injuries were reported, the fire did displace a family.

Garden Grove had an OCSD Bomb Squad response call involving a man on a mini-bike pulling a trailer that was assembled to set off illegal fireworks as he rode up the street. There were over 200 calls received regarding illegal fireworks. Garden Grove had 37 officers deployed on fireworks watch this year. Additionally, there were a total of 71 citations (each for $1000) issued for illegal fireworks.

Stanton’s Police Department received 34 calls for services for fireworks this year, which is a 28% decrease in calls from 2017. Overall, the City of Stanton found that there was less firework debris on the streets this year. For 2019, the City of Stanton is considering options to decrease response times, alter deployment models and utilize undercover enforcement to assist with future firework enforcement efforts.

City Council 28 – 29 4/19/2022
6 Historical Fireworks Injury Trends
In 2018, Orange County hospital emergency and urgent care rooms reported 38 injuries that were directly caused by fireworks. This is an increase in comparison to 2017, when 29 injuries were reported. Over the past 5 years, Orange County averaged close to 34 fireworks-related injuries around the Independence Day holiday (June 30th-July 5th). 2014 2015 2016 2017 2018
0-7 4 9 3 2 9
8-16 4 13 10 5 4
17-21 3 3 8 5 7
Adult 16 10 18 15 18
Unknown 0 0 0 2 0
TOTAL 27 35 39 29 38
The number of fireworks-related injuries for adult patients was the highest this year. Most years, the adult category seems to yield the highest number of injuries. Reported injuries for patients under the age of 21 (age brackets 0-7, 8-16 and 17-21) increased from 12 to 20 this year.

See Appendix A for detailed information about injuries reported by emergency rooms and urgent care facilities.
0 5
10 15
20 25
30 35
40 45
2014 2015 2016 2017 2018
Orange County Fireworks Injuries by Age:

Historical 5 Year Trends
Age 0-7 Age 8-16 Age 17-21 Adult Unknown Total
City Council 28 – 30 4/19/2022
7 Types of Fireworks Involved in Injuries

This year in Orange County, fireworks-related injuries were caused by both illegal and Safe and Sane fireworks. Illegal fireworks accounted for 19% of all fireworks-related injuries while Safe and Sane fireworks accounted for 13% of fireworks-related injuries. The remaining 68% of injuries were caused by an unknown type. While there were a significant number of “unknown” type of fireworks, Firecrackers were identified as the type of illegal firework that caused the most reported injuries this year and Sparklers were the type of Safe and Sane firework that caused the most reported injuries this year.

Unknown Sparkler Firecracker
28 4
6 OC 2018 Fireworks Injuries by Type
Unknown
Illegal
Safe and Sane
13%
19%
68%
Legal Status of Injury Causing
Fireworks for 2018
Safe and Sane
Illegal
Unknown
City Council 28 – 31 4/19/2022
8 Spatial Analysis of Fireworks Injuries
This map displays the locations of the Orange County hospitals that have reported fireworksrelated injuries in 2018. The red stars indicate the cities that allowed the sale of Safe and Sane fireworks. The mustard hospital bag marker indicates hospitals that reported between 1-4 injuries and the purple ambulance marker indicates hospitals that reported 5 or more injuries during the study period of June 30, 2018 through July 5, 2018. There were 4 hospitals that reported 5 or more injuries this year (compared to 1 hospital with 5 injuries last year). This information does not conclude that the sale of fireworks caused more injuries. The spatial relationship of fireworksrelated injuries that were treated in and around the Safe and Sane cities is not necessarily indicative of an on-going trend that injuries are happening near to the Safe and Sane cities. Reported injuries seem to be spread out throughout the county, regardless of firework sales.

City Council 28 – 32 4/19/2022
9 Fireworks-Related Fire Incidents and
Property Loss
Historical Property Loss
2014 2015 2016 2017 2018
Property Loss $9,580 $300,540 $53,600 $147,121 $115,975 Acreage Lost .02 acres .025 acres 1.21 acres 4.38 acres 1.19 acres In comparison to 2017, reported fireworks-related property loss decreased slightly in Orange County for 2018. Additionally, reported acreage that was lost due to fireworks-related fires, was significantly lower than in 2017. Illegal fireworks ignited a building fire in Aliso Viejo which resulted in an estimated $10,000 in damages. Fireworks caused a vehicle fire in Santa Ana which caused $21,500 in property loss. There was a $37,000 loss in Tustin for 4 vehicles (in a single incident) that burned due to illegal fireworks. One building and one vehicle sustained minor damage due to rubbish fires that caused an estimated $4,000 worth of damage in Huntington Beach. This year, Laguna Beach had an incident count of 17 while in 2017, the incident count was only 1. There were 757 incident counts reported for Anaheim alone this year (includes police department calls).

In Orange County Fire Authority’s jurisdiction, 69 fireworks-related incidents were reported this year.

Incident Calls/Type of Fire
Roof/Structure Fire 4
Lawn Fire 2
Dumpster (or Trash) Fire 28
Tree Fire 6
Brush/Acre Fire 5
Vehicle Fire 3
Other 21
As California continues to face another season of drought and wildfires, fireworks safety is critical to prevent dangerous fires and injuries. Dry brush combined with the continued use of illegal fireworks has elevated wildfire and fire danger within Orange County, which was evident in the 878 incident counts that were reported by Orange County fire departments.

City Council 28 – 33 4/19/2022
10 2018 FIREWORKS-RELATED PROPERTY LOSS
Note: Red denotes cities that permit the sale of safe and sane fireworks CITY COUNT $ LOSS ACREAGE COMMENTS
Aliso Viejo 2 10,100 0 1 building, 1 dumpster
Anaheim 757* 0 0 5 tree, 6 dumpster, 746 other
Brea 1 0 0 1 unknown
Buena Park 2 0 0.010 1 tree, 1 dumpster
Costa Mesa 16 5,000 0 N/A
Cypress 0 0 0 N/A
Dana Point 2 100 0.010 1 tree, 1 other
Fountain Valley 0 0 0 N/A
Fullerton 8 0 0 2 tree, 5 dumpster 1 other
Garden Grove 4 0 0 2 dumpster, 1 tree, 1 other
Huntington Beach 5 4,000 0.1 1 vehicle, 1 structure, 3 other Irvine 2 0 0.010 1 brush, 1 other
Ladera Ranch 0 0 0 N/A
La Palma 0 0 0 N/A
Laguna Beach 17 0 0 17 other
Laguna Hills 0 0 0 N/A
Laguna Niguel 0 0 0 N/A
Laguna Woods 0 0 0 N/A
Lake Forest 2 50 0 1 dumpster, 1 other
Los Alamitos 0 0 0 N/A
Mission Viejo 2 200 0 1 dumpster, 1 other
Orange 4 200 0 2 dumpster, 2 other
Placentia 2 0 0.010 1 brush, 1 other
Rancho Santa
Margarita
0 0 0 N/A
San Clemente 0 0 0 N/A
San Juan Capistrano 0 0 0 N/A
Santa Ana 32 32,200 1.13 1 building, 2 tree, 2 vehicle, 19 dumpster, 1 brush, 2 grass, 2
other, 3 unknown
Seal Beach 0 0 0 N/A
Stanton 4 0 0 1 other, 3 unknown
Tustin 6 37,000 0.010 1 vehicle, 1 dumpster, 4 other
Unincorporated OC 2 25 0 1 tree, 1 brush
Villa Park 1 0 0 1 other
Westminster 5 100 0 1 dumpster, 3 other, 1
unknown
Yorba Linda 2 40,000 0.010 1 building, 1 tree
COUNTY TOTAL 878 $128,975 1.29
Note that incidents reported on this list are only the incidents that were reported with a potential property or acreage loss. (*Police Department statistics included)
City Council 28 – 34 4/19/2022
11 Public Display Incidents
There were 25 public displays in Orange County this year. OCFA took part in 22 of those public displays. Of the 22 public displays, there were no injuries reported. At the Monarch Beach Resort in Dana Point, there was 1 ornamental vegetation fire that was extinguished by the pyro crew.

There was 1 violation issued for the Dana Point Barge where the mortars were not buried correctly.

Orange County shows outside of OCFA areas included: 1 in Orange, 1 in Costa Mesa and 1 in Huntington Beach.

The following table details the malfunctions/injuries/fires that occurred at various Orange County Independence Day firework display shows:

City Injuries Health &
Safety
Violations
Fires Malfunctions/Comments
Irvine 0 0 0 1 shell misfired
San Juan Capistrano 0 0 0 15 shells misfired
Dana Point 0 0 1 Minor fire in ornamental vegetation.

Dana Point Harbor 0 1 0 Mortars not buried correctly and unstable. Violation notice issued.

Ladera Ranch 0 0 0 Significant amount of misfires-total of 85 shells, 136 displays, 5 cakes.

Altercation between pyro crew
members resulted in poor show.

Mission Viejo 0 0 0 4 shells misfired, recommend closing trails for site security.

Rancho Santa Margarita 0 0 0 2 cakes misfired
Tustin 0 0 0 6 shells, 2 cakes misfired,
recommend portable fencing for site
security.

Laguna Hills 0 0 0 12 shells misfired
Laguna Niguel 0 0 0 29 shells misfired
Aliso Viejo 0 0 0 1 shell, 1 cake misfired
Laguna Woods 0 0 0 5 shells misfired
Lake Forest 0 0 0 1 shell misfired
Santa Ana 0 0 0 60 shells misfired
Orange 0 0 2 2 cakes caught fire after firing.

Technicians extinguished the fire. 1
shell misfired when fired after the
show.

City Council 28 – 35 4/19/2022
12 Confiscated Fireworks and Citations
Each year, Orange County Fire Authority measures the amount of fireworks confiscated over the Independence Day holiday. In 2018, the amount of reported confiscated fireworks (to local fire departments) was significantly lower than the past couple of years, however, there was no shortage of confiscation activity for local law enforcement. In Stanton, deputies confiscated over 30 pounds of illegal fireworks which resulted in an arrest and several citations. Westminster Police reported several arrests and the confiscation of hundreds of pounds of illegal fireworks. Costa Mesa Police Department seized 1,300 pounds of illegal fireworks in the two weeks leading up to the Independence Day holiday. Newport Beach Police Department confiscated more than 631 pounds of illegal fireworks. The following tables represents the information provided by Orange County fire departments.

FIRE DEPARTMENT NAME ILLEGAL CONSUMER TOTAL CITATIONS
Anaheim Fire & Rescue 200 lbs 0 200 lbs 18
Brea Fire Department 0 0 0 0
Costa Mesa Fire Department 1300 lbs 0 1300 lbs 0
Fountain Valley Fire Department 0 0 0 0
Fullerton Fire Department 300 lbs 0 300 lbs 1
Garden Grove Fire Department 60 lbs 0 60 lbs 71
Huntington Beach Fire Department 198 lbs 0 198 lbs 16
Laguna Beach Fire Department 5 lbs 0 5 lbs 0
Orange City Fire Department 120 lbs 25 lbs 145 lbs 0
Orange County Fire Authority 146 lbs 2 lbs 148 lbs 0
ORANGE COUNTY TOTAL 2329 lbs 27 lbs 2356 lbs 106
Confiscated Illegal Fireworks
2014 2015 2016 2017 2018
Consumer None 52.4 lbs* 30 lbs** 626.7 lbs 27 lbs***
Dangerous/Illegal 824.5 lbs 877 lbs* 3104 lbs** 4641.1 lbs 2329 lbs*** *Newport Beach, Huntington Beach and Fountain Valley statistics included **Anaheim and Laguna Beach statistics NOT included
***Newport Beach statistics NOT included
City Council 28 – 36 4/19/2022
13 National Statistics Comparison
According to the 2017 CPSC Annual Fireworks Report, fireworks were involved in an estimated 12,900 injuries treated in US hospital emergency departments during calendar year 2017.

Compared to the 11,100 injuries treated during calendar year 2016, there were 1800 more injuries treated in calendar year 2017. Orange County’s average number of reported fireworks injuries was 38 in 2018 which is an increase from the 29 injuries reported in 2017. The same 10 cities allowed for the sale of Safe and Sane fireworks in 2018 as they did in 2017. In comparison to the national average of injuries reported, Orange County seems to be significantly lower in average injuries.

This difference could be attributed to the fact that the sale of Safe and Sane fireworks is limited to 10 Orange County cities, while 47 US states allow the sale of consumer and/or Safe and Sane fireworks (with various local restrictions). Another contributing factor is that not all injuries may have been reported to hospitals and not all hospitals may have provided us with their reported injuries.

Nationally, 70% of fireworks injuries were experienced by males and 30% of fireworks injuries were experienced by females. This year in Orange County, the gender breakdown was very closely aligned with the national average, with 61% of fireworks injuries experienced by males and 39% of fireworks injuries experienced by females.
70%
30%
2017 CPSC Gender
Breakdown
Male Female
61%
39%
OC 2018 Gender
Breakdown
Male Female
City Council 28 – 37 4/19/2022
14 The type of injuries reported within Orange County this year very closely aligns with the national average. As with previous years, burns make up the majority of fireworks-related injuries in Orange County, at 58% this year. This year, the percentage is slightly higher than the national rate of 53% for burns. Orange County experienced no reported fractures and sprains this year, which aligns with the national average of 3%.

Burns, 53%
Contusions/Lacerations,
26%
Other, 19%
Fractures/Sprains, 3%
CPSC 2017 TYPE OF INJURIES
Burns Contusions/Lacerations Other Fractures/Sprains
Burns
58%
Contusions/Lacerations
10%
Other
32%
Fractures/Sprains
0%
OC 2018 Type of Injuries
Burns Contusions/Lacerations Other Fractures/Sprains
City Council 28 – 38 4/19/2022
15 In Orange County this year, eye injuries were quite high. At 32%, this is more than double the national average of 14%. While hand/finger, head/face/ear and arm percentages for Orange County were on par with the national averages, the trunk/other and leg categories came in lower than the national percentages reported by CPSC for 2017.

Hand/Finger, 31%
Head/Face/Ear, 22%
Leg, 17%
Eye, 14%
Trunk/Other, 10%
Arm, 6%
CPSC 2017 BODY REGIONS INJURED
Hand/Finger Head/Face/Ear Leg Eye Trunk/Other Arm
Hand/Finger
29%
Head/Face/Ear
24%
Leg
5%
Eye
32%
Trunk/Other
5%
Arm
5%
OC 2018 Body Regions Injured
Hand/Finger Head/Face/Ear Leg Eye Trunk/Other Arm
City Council 28 – 39 4/19/2022
16 Appendix A
2018 INJURIES BY EMERGENCY CARE FACILITY

AGE GENDER DESCRIPTION OF INJURY CARE FACILITY
48 M Digit amputation with chest and abdominal burns HOAG Memorial 23 M Second degree burns HOAG Memorial
42 F Fireworks shot in her direction HOAG Memorial
7 F Firework spark hit eye St. Jude Medical Center
9 F Sparkler burned down to hand/fingers St. Jude Medical Center 15 M Placed firecracker by way of buttocks, fell and landed on firecracker Kaiser Permanente Irvine 5 F Foreign body sensation and burning to eyes Kaiser Permanente Irvine 25 M Firework blew up in hand while lighting St. Joseph Hospital 19 M Debris got in eye while watching fireworks St. Joseph Hospital 55 F Ashes got in eye from fireworks St. Joseph Hospital 20 M Firework launched into head St. Joseph Hospital
38 M Firework that was lit struck left eye St. Joseph Hospital 63 M Struck in eye by falling firework St. Joseph Hospital 39 M Tried to stop lit container of fireworks from falling St. Joseph Hospital 14 M Firecracker exploded in hand St. Joseph Hospital
6 F Burn occurred at neighbor’s house OC Global Medical Center 48 F Firework flew up from ground OC Global Medical Center 5 F Eye became irritated while watching fireworks OC Global Medical Center 17 M Firework blew up in hand OC Global Medical Center
18 M Burned while lighting a firework OC Global Medical Center 32 M Burned while lighting a firework OC Global Medical Center 25 F Firework flew in Fountain Valley Hospital
5 M Foreign body in eye Fountain Valley Hospital
5 M Debris fell into eye Fountain Valley Hospital
20 F Firecracker exploded on shoulder Fountain Valley Hospital 32 F Firecracker exploded on ear Fountain Valley Hospital 4 M Held towards eye accidentally Kaiser Permanente Anaheim 19 M Firecracker exploded in hand Kaiser Permanente Anaheim 23 M Hit by firework while watching fireworks Kaiser Permanente Anaheim 29 M Picked up firework Kaiser Permanente Anaheim
18 F Firework went off in hand while lighting Kaiser Permanente Anaheim 23 M Pain and redness after watching fireworks Kaiser Permanente Anaheim 3 M Firework exploded while lighting Placentia Linda Hospital 23 F Firework exploded while lighting Placentia Linda Hospital 5 M Burn to foot Memorial Care HB
10 F Watching fireworks when something hit eyelid South Coast Global 29 M Checked on firework he thought did not light and burned palm South Coast Global 44 M Firework exploded in hand OCFA transfer to UCI
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ORANGE COUNTY
2020 Independence Day
After Action Report
Prepared by the Orange County Fire Authority
Irvine, CA
City Council 28 – 57 4/19/2022
2 Table of Contents
Executive Summary 3
Background and Methodology 4
Fireworks Policy in Orange County 5
Historical Fireworks Injury Trends 6
Types of Fireworks Involved in Injuries 7
Spatial Analysis 8
Fireworks-Related Fire Incidents and
Property Loss
9, 10
Public Display Incidents 11
Confiscated Fireworks and Citations 12
National Statistics Comparison 13-15
Appendix A: Injuries by Emergency Care
Facility
16 City Council 28 – 58 4/19/2022
3 Executive Summary
All across the country, the COVID-19 pandemic affected the Independence Day celebrations in 2020. Social distancing, facial masks, sanitizing, working from home, and various levels of quarantines have become the new societal norm for most residents in Orange County. 10 Orange County cities permitted the sale of safe and sane fireworks in 2020, for a total of 208 stands throughout the County. A total of 4 public fireworks displays provided safe celebration options for the communities within Orange County.

In 2020, the injuries associated with fireworks increased to 32 total reported injuries. Last year, Orange County reported 24 injuries that were related to fireworks. In comparison to the Consumer Product Safety Commission’s (CPSC) 2019 fireworks injury statistics, Orange County’s total fireworks injuries are less than expected for our population. While in 2019, reported Safe and Sane fireworks-related injuries accounted for 12% of total injuries, this year, Safe and Sane injuries accounted for only 6% of reported county-wide injuries. 25% of fireworks-related injuries were due to illegal fireworks while the outstanding 69% of injuries remain unknown. As in previous years, a majority of the reported injuries within Orange County were burns to the hands and fingers.

Firework injuries reported by hospital emergency rooms and urgent care facilities were mapped and compared to areas where the sale of Safe and Sane fireworks has been permitted. Results are a clear indication that hospitals near the cities where Safe and Sane firework sales are permitted, did not necessarily report more injuries than those hospitals that are not near those same cities.

Orange County experienced a decrease in estimated property loss this year. However, the acreage loss due to fireworks-related fires was significantly higher than it was in previous years.

Additionally, the reported amount of both consumer and illegal fireworks that were confiscated (by local fire departments) this year has gone down over 1,700 pounds compared to 2019.

We would like to take this opportunity to thank all of the fire departments and medical providers in Orange County who contributed data to the analysis in this report.

City Council 28 – 59 4/19/2022
4 Background and Methodology
Each year following the Independence Day holiday, the Orange County Fire Authority gathers data in order to analyze the overall impact of fireworks throughout Orange County. The information included in this report was contributed by hospital emergency rooms, urgent care facilities and Orange County Fire Departments to supplement OCFA’s own fireworks data.

Injury data was solicited from a total of 26 hospital emergency rooms and 126 urgent care facilities throughout Orange County for the study period of June 30th-July 5, 2020. This year, we received responses from 13 hospital emergency rooms and 4 urgent care facilities, for an overall response rate of 11%. OCFA’s own Emergency Medical Services data was also analyzed for injuries related to fireworks. The fireworks injuries contained in this report are only those that were reported to us; it is likely many more injuries occurred that were either not treated or not reported. National statistics extracted from the most recent 2019 CPSC Fireworks Report were also used for a comparison study.

Fireworks-related fire incident and property loss information was gathered from 10 out of 11 Orange County municipal fire departments, for a response rate of 90%. Narratives from the 76 fireworks-related fire incidents that OCFA responded to were analyzed for qualitative information regarding the impact of these incidents within Orange County communities. Local newspaper and social media sources were also utilized for information regarding fireworks-related injuries and various fire-related incidents that were caused by fireworks.

City Council 28 – 60 4/19/2022
5 Fireworks Policy in Orange County
In 2020, 10 Orange County cities permitted the sale of safe and sane fireworks for a total of 208 retail consumer fireworks stands throughout the County.

City Quantity
Anaheim 16
Buena Park 21
Costa Mesa 30
Fullerton 15
Garden Grove 29
Huntington Beach 15
Santa Ana 62
Stanton 2
Villa Park 3
Westminster 15
Total 208
Pandemic lockdowns and social distancing put a damper on many public celebratory traditions this year. With various new safety measures in place, sales of “Safe and Sane” fireworks skyrocketed as most Orange County professional displays went dark. With most local businesses, restaurants, attractions, and public beaches closed this year, the pandemic did help Orange County residents to become more creative in finding new ways to celebrate with drive-through and virtual gatherings.

While most professional displays were cancelled due to COVID-19, Orange County had no shortage of bootleg firework shows. The large number of unsanctioned fireworks combined with unfavorable weather conditions resulted in the worst air quality that Southern California has seen for the Independence Day holiday in over a decade.

Orange County Sheriff’s Department reported that illegal fireworks calls were up nearly 300% across Orange County compared to the holiday statistics from last year. With the pandemic restrictions in place, many residents may have tried to recreate their own fireworks celebrations at home, which led to the influx of fireworks-related emergency calls. Newport Beach reported over 330 fireworks-related complaints registered to code enforcement and police this year. Orange City reported 353 fireworks-related calls this year.

The city of Fullerton had a surge in the use of illegal fireworks for 2 months leading up to the Independence Day holiday. As of July 3, 2020, the Fullerton Police Department issued at least 17 citations for the use of illegal fireworks.

City Council 28 – 61 4/19/2022
6 Historical Fireworks Injury Trends
In 2020, Orange County hospital emergency and urgent care rooms reported 32 injuries that were directly caused by fireworks. This is an increase in comparison to 2019, when 24 injuries were reported. Over the past 5 years, Orange County averaged close to 32 fireworks-related injuries around the Independence Day holiday (June 30th-July 5th). 2016 2017 2018 2019 2020
0-7 3 2 9 2 8
8-16 10 5 4 4 4
17-21 8 5 7 2 8
Adult 18 15 18 16 12
Unknown 0 2 0 0 0
TOTAL 39 29 38 24 32
Similar to previous years, the number of fireworks-related injuries for adult patients was the highest again this year. Most years, the adult category seems to yield the highest number of fireworks-related injuries. Reported injuries for patients under the age of 21 (age brackets 0-7, 8- 16 and 17-21) increased from 10 injuries in 2019 to 20 injuries this year.

See Appendix A for detailed information about injuries reported by emergency rooms and urgent care facilities.
0 5
10 15
20 25
30 35
40 45
2016 2017 2018 2019 2020
Orange County Fireworks Injuries by Age:

Historical 5 Year Trends
Age 0-7 Age 8-16 Age 17-21 Adult Unknown Total
City Council 28 – 62 4/19/2022
7 Types of Fireworks Involved in Injuries

This year in Orange County, fireworks-related injuries were caused by both illegal and Safe and Sane fireworks. Illegal fireworks accounted for 25% of all fireworks-related injuries while Safe and Sane fireworks accounted for 6% of fireworks-related injuries. The remaining 69% of injuries were caused by an unknown type. While there were a significant number of “unknown” type of fireworks, Firecrackers were identified as the type of illegal firework that caused the most reported injuries this year and Fountains were the type of Safe and Sane firework that caused the most reported injuries this year.
18 4 4
2 2 2
OC 2020 Fireworks Injuries by Type
Unknown
Illegal
Safe and Sane
6%
25%
69%
Legal Status of Injury Causing
Fireworks for 2020
Safe and Sane
Illegal
Unknown
City Council 28 – 63 4/19/2022
8 Spatial Analysis of Fireworks Injuries
This map displays the locations of the Orange County hospitals that provided data regarding reported fireworks-related injuries in 2020. The red stars indicate the cities that allowed the sale of Safe and Sane fireworks. The mustard hospital bag marker indicates hospitals that reported between 1-4 injuries and the purple ambulance marker indicates hospitals that reported 5 or more injuries during the study period of June 30, 2020 through July 5, 2020. There were 2 hospitals that reported 5 or more injuries this year (compared to 1 hospital with 11 injuries in 2019). This information does not conclude that the sale of fireworks caused more injuries. The spatial relationship of fireworks-related injuries that were treated in and around the Safe and Sane cities is not necessarily indicative of an on-going trend that injuries are happening near to the Safe and Sane cities. Reported injuries seem to be spread out throughout the county, regardless of firework sales.

City Council 28 – 64 4/19/2022
9 Fireworks-Related Fire Incidents and
Property Loss
Historical Property Loss
2016 2017 2018 2019 2020
Property Loss $53,600 $147,121 $115,975 $913,705 $42,100 Acreage Lost 1.21 acres 4.38 acres 1.19 acres 0.14 acres 26.1 acres In comparison to 2019, reported fireworks-related property loss decreased significantly in Orange County for 2020. However, reported acreage that was lost due to fireworks-related fires, was considerably higher than in previous years. Fireworks were the suspected cause of a 21 acre vegetation fire that prompted the temporary closure of Irvine Regional Park. Although there were no injuries, more than 100 firefighters helped to contain that fire. Fireworks also ignited a brush fire near a condominium complex in Mission Viejo that resulted in an estimated property loss of $4,000. In Lake Forest, an arrest was made when illegal fireworks were discharged that ignited an ornamental vegetation fire. An area of Unincorporated Tustin suffered about $200 of property damage when fireworks caused an ornamental vegetation fire on a hillside. A residential area in Los Alamitos had a trash fire that cause about $15,500 worth of damage to a home, a gas meter, electric meter and an electrical panel. Fullerton had a 5 acre vegetation fire that caused over $10,000 in property losses and law enforcement took 4 suspects into custody for arson related to that vegetation fire. Huntington Beach reported one injury to a police officer who was burned by embers from a box of fireworks that exploded as he approached. There was also a fire in Newport Beach that caused $10,000 worth of damage to surrounding vegetation and fences.

In Orange County Fire Authority’s jurisdiction, 76 fireworks-related incidents were reported this year.

Incident Calls/Type of Fire
Roof/Structure Fire 3
Lawn Fire 3
Dumpster (or Trash) Fire 28
Tree Fire 0
Brush/Acre Fire 24
Vehicle Fire 3
Other 15
City Council 28 – 65 4/19/2022
10 2020 FIREWORKS-RELATED PROPERTY LOSS
Note: Red denotes cities that permit the sale of safe and sane fireworks CITY COUNT $ LOSS ACREAGE COMMENTS
Aliso Viejo 0 0 0 None
Anaheim 60 0 0 Trees/dumpster/trash fires – no
significant loss identified
Brea 1 $600 0 1 injury, 1 trash
Buena Park 11 0 0 1 injury, 6 trash/dumpster,
4 vegetation
Costa Mesa 12 0 0 12 brush/trash/other fires – no
significant loss identified
Cypress 1 0 0 1 brush
Dana Point 1 0 0 1 dumpster
Fountain Valley 0 0 0 None
Fullerton 8 $10,100 5 1 trash, 5 tree
Garden Grove 16 0 0 8 dumpster, 5 brush, 1 building,
2 other
Huntington Beach 4 $1,000 0 1 dumpster
Irvine 0 0 0 None
Ladera Ranch 0 0 0 None
La Palma 0 0 0 None
Laguna Beach 29 0 0 No significant loss identified
Laguna Hills 2 0 0 2 other
Laguna Niguel 1 $500 0.02 1 vegetation
Laguna Woods 0 0 0 None
Lake Forest 2 $200 0 1 vegetation, 1 other
Los Alamitos 1 $15,500 0 1 building
Mission Viejo 1 $4,000 0.08 1 brush
Newport Beach 1 $10,000 0 1 brush
Orange 3 0 0 1 trash, 2 brush
Placentia N/A N/A N/A N/A
Rancho Santa Margarita 1 0 0 1 trash
San Clemente 1 0 0 1 other
San Juan Capistrano 1 0 0 1 brush
Santa Ana 27 0 0 9 brush, 1 building, 8 dumpster,
3 car, 6 other
Seal Beach 0 0 0 None
Stanton 4 0 0 2 dumpster, 1 brush, 1 other
Tustin 0 0 0 None
Unincorporated OC 6 $200 21 4 brush, 1 building, 1 trash Villa Park 0 0 0 None
Westminster 0 0 0 None
Yorba Linda 1 0 0 1 building
COUNTY TOTAL 192 $42,100 26.1
Note that incidents reported on this list are only the incidents that were reported with a potential property or acreage loss.

City Council 28 – 66 4/19/2022
11 Public Display Incidents
Due to COVID-19 safety precautions, there were only 4 public displays in Orange County this year. OCFA took part in 3 of those public displays. There were no injuries, fires or violations reported.

There were no other Orange County shows outside of OCFA’s jurisdiction.

The following table details the malfunctions/injuries/fires that occurred at various Orange County Independence Day firework display shows:

City Injuries Health &
Safety
Violations
Fires Malfunctions/Comments
Dana Point (Monarch Beach) 0 0 0 10 shells/1 cake rewired, 100% of product discharged.

Los Alamitos N/A N/A N/A No OCFA Inspector
assigned as shoot takes
place on Joint Forces Base.

San Clemente 0 0 0 4 shells rewired, 100% of
product discharged.

San Juan Capistrano 0 0 0 2 shells rewired, 100% of
product discharged.

City Council 28 – 67 4/19/2022
12 Confiscated Fireworks and Citations
Each year, Orange County Fire Authority measures the amount of fireworks confiscated over the Independence Day holiday. In 2020, the amount of reported confiscated fireworks (to local fire departments) was lower than last year, however, there was no shortage of confiscation activity for local authorities. The following tables represents the information provided by Orange County fire departments.

FIRE DEPARTMENT NAME ILLEGAL CONSUMER TOTAL CITATIONS
Anaheim Fire & Rescue 100 lbs 0 100 lbs 0
Brea Fire Department 54 lbs 0 54 lbs 0
Costa Mesa Fire Department 1082 lbs 0 1082 lbs 0
Fountain Valley Fire Department 0 0 0 0
Fullerton Fire Department 1400 lbs 0 1400 lbs 17*
Huntington Beach Fire Department 1196 lbs 0 1196 lbs 0
Laguna Beach Fire Department 4 lbs 12 lbs 16 lbs 0
Newport Beach Fire Department 30 lbs 15 lbs 45 lbs 0
Orange City Fire Department 0 0 0 0
Orange County Fire Authority 200 lbs 150 lbs 350 lbs 0
Placentia Fire Department N/A N/A N/A N/A
ORANGE COUNTY TOTAL 4066 lbs 177 lbs 4243 lbs 17
*Law enforcement statistics included
Confiscated Illegal Fireworks
2016 2017 2018 2019 2020
Consumer 30 lbs* 626.7 lbs 27 lbs** 64 lbs *** 177 lbs **** Dangerous/Illegal 3104 lbs* 4641.1 lbs 2329 lbs** 5965 lbs *** 4066 lbs **** *Anaheim and Laguna Beach statistics NOT included
**Newport Beach statistics NOT included
***Fountain Valley statistics NOT included
****Placentia statistics NOT included
City Council 28 – 68 4/19/2022
13 National Statistics Comparison
According to the 2019 CPSC Annual Fireworks Report, fireworks were involved in an estimated 10,000 injuries treated in US hospital emergency departments during calendar year 2019.

Compared to the 9,100 injuries treated during calendar year 2018, there were 900 more injuries treated in calendar year 2019. Orange County’s number of reported firework-related injuries was 32 in 2020 which is an increase from the 24 injuries reported in 2019. The same 10 cities allowed for the sale of Safe and Sane fireworks in 2020 as they did in 2019. In comparison to the national average of injuries reported, Orange County seems to be significantly lower in average injuries.

This difference could be attributed to the fact that the sale of Safe and Sane fireworks is limited to only 10 Orange County cities. Another contributing factor is that not all injuries may have been reported to hospitals and not all hospitals may have provided us with their reported injuries. A special consideration for 2020 is that with the COVID-19 pandemic, many people may have intentionally avoided going to hospitals and/or urgent cares for fear that they may risk exposure to the virus.

Nationally, 66% of fireworks injuries were experienced by males and 34% of fireworks injuries were experienced by females. This year in Orange County, the gender breakdown was very closely aligned with the national average, with 62% of fireworks injuries experienced by males and 38% of fireworks injuries experienced by females.
66%
34%
2019 CPSC Gender
Breakdown
Male Female
62%
38%
OC 2020 Gender
Breakdown
Male Female
City Council 28 – 69 4/19/2022
14 The type of injuries reported within Orange County this year very closely aligns with the national average. As with previous years, burns make up the majority of fireworks-related injuries in Orange County, at 56% this year. This percentage is right on par with the national rate of 57% for burns. Orange County’s reported contusions/lacerations in 2020 are slightly higher than the national average; sitting at 22% versus the national average of 18%. Orange County experienced no reported fractures and sprains this year.

Burns, 57%
Contusions/Lacerations,
18%
Other, 19%
Fractures/Sprains, 6%
CPSC 2019 TYPE OF INJURIES
Burns Contusions/Lacerations Other Fractures/Sprains
Burns
56%
Contusions/Lacerations
22%
Other
22%
OC 2020 Type of Injuries
Burns Contusions/Lacerations Other
City Council 28 – 70 4/19/2022
15 In Orange County this year, hand/finger injuries were quite high. At 41%, this is higher than the national average of 30%. While eye and arm percentages for Orange County were on par with the national averages, the head/face/ear, trunk/other and leg categories came in lower than the national averages.

Hand/Finger, 30%
Head/Face/Ear, 16%
Leg, 23%
Eye, 15%
Trunk/Other, 6%
Arm, 10%
CPSC 2019 BODY REGIONS INJURED
Hand/Finger Head/Face/Ear Leg Eye Trunk/Other Arm
Hand/Finger
41%
Head/Face/Ear
12%
Leg
19%
Eye
16%
Trunk/Other
3%
Arm
9%
OC 2020 Body Regions Injured
Hand/Finger Head/Face/Ear Leg Eye Trunk/Other Arm
City Council 28 – 71 4/19/2022
16 Appendix A
2020 INJURIES BY EMERGENCY CARE FACILITY

AGE GENDER DESCRIPTION OF INJURY CARE FACILITY
1 F Touched end of sparkler CHOC
11 M Lit firework was unintentionally aimed toward patient by relative CHOC 12 F Firework hit patient in the eye CHOC
4 M Relative holding firework turned around and hit patient’s eye CHOC 4 M Patient playing too close to fireworks CHOC
3 M Relative threw firework and accidentally hit patient Kaiser UC – Santa Ana 27 M Got hit from across the street while watching fireworks Kaiser Permanente - Anaheim 9 M Spark from a sparkler flew into eye Kaiser Permanente – Anaheim 18 F Firework thrown and got caught in clothing OCGMC
18 M Exploded in hand OCGMC
10 M Firework hit cheek while flying through the air OCGMC 19 M Left hand severely mangled from firecracker OCGMC
47 F Injury from sparkler OCGMC
30 F Injury from fountain OCGMC
6 F Box of fireworks caught fire by thrown sparkler OCGMC 33 F Injured while lighting fireworks Memorial Care Medical Group 2 M Patient grabbed sparkler with hand Placentia-Linda Hospital 1 M Firework exploded on left arm Anaheim Regional
17 M Injury from M80 Mission Hospital
5 F Firework fell over and hit patient in eye Mission Hospital 47 M Fireworks in a box ignited and hit patient’s thigh Hoag Newport 27 F Firework tipped over and hit foot Fountain Valley Hospital 28 F Firework fell from sky Fountain Valley Hospital
58 M Firework exploded UCI
37 M Firework exploded St. Jude Medical Center
38 F Patient hit on top of head while watching fireworks Kaiser Permanente - Irvine 17 M M80 exploded in hand OCFA
17 M Patient holding mortar over head when it exploded OCFA 19 F Firework exploded in hand OCFA
48 M Firework injury to eye OCFA
33 M Struck in leg by firework OCFA
58 M Roman candle backfired in hand OCFA
City Council 28 – 72 4/19/2022

ORANGE COUNTY
2021 Independence Day
After Action Report
Prepared by the Orange County Fire Authority
Irvine, CA
City Council 28 – 73 4/19/2022
2 Table of Contents
Executive Summary 3
Background and Methodology 4
Fireworks Policy in Orange County 5
Historical Fireworks Injury Trends 6
Types of Fireworks Involved in Injuries 7
Spatial Analysis 8
Fireworks-Related Fire Incidents and
Property Loss
9, 10
Public Display Incidents 11
Confiscated Fireworks 12
National Statistics Comparison 13-15
Appendix A: Injuries by Emergency Care
Facility
16, 17
City Council 28 – 74 4/19/2022
3 Executive Summary
As coronavirus cases continue to drop across California, Independence Day celebrations began to transition back to normal in 2021. With Orange County starting to open back up along with the rest of the state, many venues returned and hosted celebration events this year. 10 Orange County cities permitted the sale of safe and sane fireworks in 2021, for a total of 201 stands throughout the County. A total of 28 public fireworks displays provided safe celebration options for the communities within Orange County.

In 2021, the injuries associated with fireworks increased to 46 total reported injuries. Last year, Orange County reported 32 injuries that were related to fireworks. In comparison to the Consumer Product Safety Commission’s (CPSC) 2020 fireworks injury statistics, Orange County’s total fireworks injuries are less than expected for our population. While in 2020, reported Safe and Sane fireworks-related injuries accounted for 6% of total injuries, this year, Safe and Sane injuries accounted for only 4% of reported county-wide injuries. 50% of fireworks-related injuries were due to illegal fireworks while the outstanding 46% of injury origins remain unknown. The majority of reported injuries within Orange County were contusions/lacerations and burns to the head, face, ears, hands and fingers.

Firework injuries reported by hospital emergency rooms and urgent care facilities were mapped and compared to areas where the sale of Safe and Sane fireworks has been permitted. Results are a clear indication that hospitals near the cities where Safe and Sane firework sales are permitted, did not necessarily report more injuries than those hospitals that are not near those same cities.

Orange County experienced an increase in estimated property loss this year. However, the acreage loss due to fireworks-related fires was significantly lower than it was in previous years.

Additionally, the reported amount of both consumer and illegal fireworks that were confiscated by local fire departments during the Independence Day holiday remained very consistent with the numbers from 2020.

We would like to take this opportunity to thank all the fire departments and medical providers in Orange County who contributed data to the analysis in this report.

City Council 28 – 75 4/19/2022
4 Background and Methodology
Each year following the Independence Day holiday, the Orange County Fire Authority gathers data in order to analyze the overall impact of fireworks throughout Orange County. The information included in this report was contributed by hospital emergency rooms and Orange County fire departments to supplement OCFA’s own fireworks data.

Injury data was solicited from a total of 25 hospital emergency rooms and 118 urgent care facilities throughout Orange County for the study period of June 30th-July 5, 2021. This year, we received responses from 15 hospital emergency rooms and 2 urgent care facilities, for an overall response rate of 11%. OCFA’s own Emergency Medical Services data was also analyzed for injuries related to fireworks. The fireworks injuries contained in this report are only those that were reported to us; it is very likely that many more injuries occurred that were either not treated or not reported.

National statistics extracted from the most recent 2020 CPSC Fireworks Report were also used for a comparison study.

Fireworks-related fire incident and property loss information was gathered from 11 out of 11 Orange County municipal fire departments, for a response rate of 100%. Narratives from the 51 fireworks-related incidents that OCFA responded to were analyzed for qualitative information regarding the impact of these incidents within Orange County communities. Local online and social media sources were also utilized for information regarding fireworks-related injuries and incidents in 2021.

City Council 28 – 76 4/19/2022
5 Fireworks Policy in Orange County
In 2021, 10 Orange County cities permitted the sale of safe and sane fireworks for a total of 201 retail consumer fireworks stands throughout the County.

City Quantity
Anaheim 16
Buena Park 21
Costa Mesa 31
Fullerton 15
Garden Grove 29
Huntington Beach 15
Santa Ana 55
Stanton 2
Villa Park 3
Westminster 14
Total 201
With COVID-19 restrictions slowly easing for the Independence Day holiday, most public display shows returned in full force. The number of reported noise and illegal fireworks complaints handled by law enforcement across Orange County decreased in 2021 as spectators flocked to professional pyrotechnic events. Orange County Sheriff’s Deputies responded to 299 fireworksrelated calls this year. In comparison to the 558 fireworks-related calls responded to in 2020, this was a drastic decrease in reported fireworks-related calls. In Anaheim, police responded to 331 calls involving reports of illegal fireworks, which was a significant drop from the 549 reports officers handled in 2020.

While the return of sanctioned events may have encouraged more people to ditch the DIY firework shows, there were still some neighborhoods that reported serious incidents this year. Fountain Valley Regional Hospital reported a man who had fingers amputated as a result of a firework exploding in his hand. In Garden Grove, an adult male was charged with several felonies related to the detonation of illegal fireworks that resulted in the injuries of 9 people; several of the injured were children. In Anaheim, 2 women were critically injured while watching fireworks from a sidewalk, when a man driving a truck lost control and drove into them.

Laguna Beach Fire Department reported 2 arrests, 1 arson fire investigated, and 1 explosive device confiscated this year. Huntington Beach Fire Department had 2 significant civilian injuries that resulted in major hand trauma and critical eye injuries. Orange City Police Department had 375 service calls (down 44% from last year) related to fireworks with the holiday resulting in 5 arrests.

City Council 28 – 77 4/19/2022
6 Historical Fireworks Injury Trends
In 2021, Orange County hospital emergency rooms and urgent care facilities reported 46 injuries that were directly caused by fireworks. This is an increase in comparison to 2020, when 32 injuries were reported. Over the past 5 years, Orange County averaged close to 34 fireworks-related injuries around the Independence Day holiday (June 30th-July 5th).

Age Range 2017 2018 2019 2020 2021
0-7 2 9 2 8 8
8-16 5 4 4 4 6
17-21 5 7 2 8 3
Adult 15 18 16 12 29
Unknown 2 0 0 0 0
TOTAL 29 38 24 32 46
As in previous years, the number of reported fireworks-related injuries for adult patients was the highest for 2021. Most years, the adult category seems to yield the highest number of fireworksrelated injuries. Reported injuries for patients under the age of 21 (age brackets 0-7, 8-16 and 17- 21) decreased from 20 injuries in 2020 to 17 injuries this year.

See Appendix A for detailed information about injuries reported by emergency rooms and urgent care facilities.
0 5
10 15
20 25
30 35
40 45
50 2017 2018 2019 2020 2021
Orange County Fireworks Injuries by Age:

Historical 5 Year Trends
Age 0-7 Age 8-16 Age 17-21 Adult Unknown Total
City Council 28 – 78 4/19/2022
7 Types of Fireworks Involved in Injuries

This year in Orange County, most of the fireworks-related injuries were caused by illegal or an unknown type of firework. Safe and Sane fireworks accounted for a very small percentage of reported injuries. Reported illegal fireworks accounted for 50% of all fireworks-related injuries while reported Safe and Sane fireworks accounted for a mere 4% of fireworks-related injuries. The remaining 46% of injuries were caused by an unknown type. While there were a significant number of “unknown” type of fireworks, Firecrackers were identified as the type of illegal firework that caused the most reported injuries this year.
22 9
7 4
2 1 1
OC 2021 Fireworks Injuries by Type
Unknown
Illegal
Safe and Sane
4%
50%
46%
Legal Status of Injury Causing
Fireworks for 2021
Safe and Sane
Illegal
Unknown
City Council 28 – 79 4/19/2022
8 Spatial Analysis of Fireworks Injuries
This map displays the locations of the Orange County hospitals that provided data regarding reported fireworks-related injuries in 2021. The red stars indicate the cities that allowed the sale of Safe and Sane fireworks. The mustard hospital bag marker indicates hospitals that reported between 1-4 injuries and the purple ambulance marker indicates hospitals that reported 5 or more injuries during the study period of June 30, 2021 through July 5, 2021. There were 4 hospitals that reported 5 or more injuries this year (compared to 2 hospitals in 2020). This information does not conclude that the sale of fireworks caused more fireworks-related injuries. The spatial relationship of fireworks-related injuries that were treated in and around Safe and Sane cities is not necessarily indicative of an on-going trend that injuries are happening near to the Safe and Sane cities.

Reported injuries seem to be spread out throughout the county, regardless of firework sales.

City Council 28 – 80 4/19/2022
9 Fireworks-Related Fire Incidents and
Property Loss
Historical Property Loss
2017 2018 2019 2020 2021
Property Loss $147,121 $115,975 $913,705 $42,100 $114,032 Acreage Lost 4.38 acres 1.19 acres 0.14 acres 26.1 acres 0.27 acres In comparison to 2020, reported fireworks-related property loss increased in Orange County for 2021. However, reported acreage that was lost due to fireworks-related fires, was considerably lower this year. Fireworks were the cause of a dumpster fire in Buena Park that resulted in over $8,000 worth of damages. In Cypress, 2 homes incurred $15,250 worth of damage due to a fire where a trash can was utilized to dispose of recently ignited fireworks. Discarded fireworks in a residential trash can also ignited a home fire in Garden Grove, resulting in over $25,000 worth of damages. Another Garden Grove fire caused about $15,000 in firework-related damages to cypress trees and a parked vehicle. In Stanton, security cameras showed a firework landing and igniting material that was stored in the bed of a truck. This fire resulted in the loss of that truck and damage to a nearby vehicle with an estimated loss around $33,000. About $500 worth of damages were reported in Mission Viejo when a home’s solar panel roof caught fire due to suspected fireworks being set off in the nearby area. Costa Mesa had $500 in damages to a clothing recycling bin caused by fireworks. Anaheim reported an estimated $8,300 loss due to miscellaneous dumpster and tree fires. With California’s intensely dry conditions, Orange County was very fortunate to avoid having significant vegetation fires this year. There were 4 small vegetation fires in Santa Ana that, combined, resulted in less than an acre lost.

In Orange County Fire Authority’s jurisdiction, 51 fireworks-related incidents were reported this year.

Incident Calls/Type of Fire
Roof/Structure Fire 4
Lawn Fire 0
Dumpster (or Trash) Fire 24
Tree Fire 3
Brush/Acre Fire 7
Vehicle Fire 1
Other 12
City Council 28 – 81 4/19/2022
10 2021 FIREWORKS-RELATED PROPERTY LOSS
Note: Red denotes cities that permit the sale of safe and sane fireworks CITY COUNT $ LOSS ACREAGE COMMENTS
Aliso Viejo 0 0 0 None
Anaheim 7 $8,300 0 6 dumpster/trash, 1 tree
Brea 0 0 0 None
Buena Park 11 $8032 0 7 dumpster/trash, 3 tree, 1 other Costa Mesa 2 $500 0 Damage to clothing recycling bin
Cypress 2 $15,250 0 1 structure, 1 trash
Dana Point 1 0 0 1 other
Fountain Valley 0 0 0 No incidents in Fountain Valley
Fullerton 7 $6,000 0 Various dumpster/trash, brush, other Garden Grove 12 $40,750 0 1 structure, 3 dumpster/trash, 3 brush, 5 other
Huntington Beach 6 0 0 No significant loss identified
Irvine 2 0 0 1 dumpster/trash, 1 other
Ladera Ranch 0 0 0 None
La Palma 0 0 0 None
Laguna Beach 21 0 0 No significant loss identified
Laguna Hills 0 0 0 None
Laguna Niguel 0 0 0 None
Laguna Woods 0 0 0 None
Lake Forest 0 0 0 None
Los Alamitos 0 0 0 None
Mission Viejo 2 $500 0 2 other
Newport Beach 0 0 0 None
Orange 0 0 0 No significant loss identified
Placentia 0 0 0 None
Rancho Santa Margarita 0 0 0 None
San Clemente 0 0 0 None
San Juan Capistrano 0 0 0 None
Santa Ana 14 $1,600 0.27 1 structure, 8 dumpster/trash, 4 brush, 1 other
Seal Beach 0 0 0 None
Stanton 2 $33,000 0 1 vehicle, 1 dumpster/trash
Tustin 0 0 0 None
Unincorporated OC 1 0 0 1 other
Villa Park 0 0 0 None
Westminster 4 $100 0 1 structure, 3 dumpster/trash
Yorba Linda 0 0 0 None
COUNTY TOTAL 94 $114,032 0.27
Note that incidents reported on this list are only the incidents that were reported with a potential property or acreage loss City Council 28 – 82 4/19/2022
11 Public Display Incidents
There were 28 public displays in Orange County this year. OCFA took part in 18 of those public displays. There were no injuries, fires or violations reported. Orange County shows outside of OCFA areas included: 3 in Laguna Beach, 1 in Costa Mesa, 1 in Huntington Beach, 3 in Newport Beach, 1 in Orange and 1 in Anaheim.

The following table details the malfunctions and recommendations that occurred at nine Orange County Independence Day firework display shows:

City Injuries Health &
Safety
Violations
Fires Malfunctions/Comments
Buena Park (Knotts Berry Farm) 7/3 0 0 0 Significant fallout on OCFA Station 61
Buena Park (Knotts Berry Farm) 7/4 0 0 0 Traffic stopping to watch fireworks affected
apparatus departing from
Station 61
Cypress (Cypress College) 0 0 0 Recommendation to
relocate firing area to 25’
south of the fallout
Irvine (Woodbridge Village) 0 0 0 47 shells returned
Laguna Hills (High School) 0 0 0 5 shells misfired,
recommendations: (1)
larger security presence to
deter trespassers into
fallout area (2)
downsizing or relocating
due to fallout adjacent to
homes
Mission Viejo (Lake MVO) 0 0 0 3 shells unused, 62 shells returned
San Clemente (Pier) 0 0 0 4” shell detonated in rack,
14 shells misfired
San Juan Capistrano
(San Juan Sports Park)
0 0 0 Burning cake fired out at
operator standing 6-8 ft
away
Tustin (High School) 0 0 0 5 shells misfired, 1 dud,
and a 3” 25 shot multi
device returned
City Council 28 – 83 4/19/2022
12 Confiscated Fireworks
Each year, Orange County Fire Authority measures the amount of fireworks confiscated over the Independence Day holiday. In 2021, the amount of reported confiscated fireworks to local fire departments and law enforcement agencies was very similar to confiscation numbers in 2020 (4247.8 lbs this year versus 4243 lbs in 2020). There was no shortage of confiscation activity for local authorities. The following tables represents the information provided by various Orange County fire departments.

FIRE DEPARTMENT NAME ILLEGAL CONSUMER TOTAL
Anaheim Fire & Rescue 72 lbs 1.5 lbs 73.5 lbs
Brea Fire Department 50 lbs 0 50 lbs
Costa Mesa Fire Department 1706 lbs 0 1706 lbs
Fountain Valley Fire Department 0 15 lbs 15 lbs
Fullerton Fire Department 500 lbs 100 lbs 600 lbs
Huntington Beach Fire Department 901 lbs 0 901 lbs
Laguna Beach Fire Department 17.4 lbs 37.4 lbs 54.8 lbs Newport Beach Fire Department 8.5 lbs 4 lbs 12.5 lbs
Orange City Fire Department unknown unknown unknown
Orange County Fire Authority 200 lbs 600 lbs 800 lbs
Placentia Fire Department 35 lbs 0 35 lbs
ORANGE COUNTY TOTAL 3489.9 lbs 757.9 lbs 4247.8 lbs
*Law enforcement statistics included when provided
Confiscated Illegal Fireworks
2017 2018 2019 2020 2021
Consumer 626.7 lbs 27 lbs* 64 lbs** 177 lbs *** 3489.9 lbs Dangerous/Illegal 4641.1 lbs 2329 lbs* 5965 lbs ** 4066 lbs *** 757.9 lbs *Newport Beach statistics NOT included
**Fountain Valley statistics NOT included
***Placentia statistics NOT included
City Council 28 – 84 4/19/2022
13 National Statistics Comparison
According to the 2020 CPSC Annual Fireworks Report, 66% of fireworks-related injuries occurred in the month around the Independence Day holiday. While there was a total of 15,600 fireworksrelated injuries during the entire 2020 calendar year, fireworks were involved in an estimated 10,300 injuries treated in US hospital emergency departments during the single month special study period between June 21, 2020 and July 21, 2020. Compared to the 7,300 injuries treated during the special study period in 2019, there were 3,000 more injuries treated during the same period in 2020. Orange County’s number of reported firework-related injuries was 46 in 2021 which is an increase from the 32 injuries reported in 2020. The same 10 cities allowed for the sale of Safe and Sane fireworks in 2021 as they did in 2020. In comparison to the national average of injuries reported, Orange County seems to be significantly lower in average injuries. This difference could be attributed to the fact that the sale of Safe and Sane fireworks is limited to only 10 Orange County cities. Another contributing factor is that not all injuries may have been reported to hospitals and not all hospitals may have provided us with their reported injuries. A special consideration for 2021 is that with the continuation of the COVID-19 pandemic, many people may have intentionally avoided going to hospitals and/or urgent cares for fear that they may risk exposure to the virus.

Nationally, 71% of fireworks injuries were experienced by males and 29% of fireworks injuries were experienced by females. This year in Orange County, the gender breakdown was very closely aligned with the national average, with 67% of fireworks injuries experienced by males and 33% of fireworks injuries experienced by females.
71%
29%
2020 CPSC Gender
Breakdown
Male Female
67%
33%
OC 2021 Gender
Breakdown
Male Female
City Council 28 – 85 4/19/2022
14 The percentages for the type of injuries reported within Orange County this year deviates slightly from the national averages. This year, contusions/lacerations made up the majority of fireworksrelated injuries in Orange County, at 48% this year. This percentage is significantly higher than the national rate of 20% for contusions/lacerations. Orange County’s reported burns in 2021 are on par with the national average, sitting at 41% versus the national average of 44%. Orange County experienced no reported fractures and sprains this year.

Burns, 44%
Contusions/Lacerations, 20%
Other, 28%
Fractures/Sprains, 8%
CPSC 2020 TYPE OF INJURIES
Burns Contusions/Lacerations Other Fractures/Sprains
Burns
41%
Contusions/Lacerations
48%
Other
11%
OC 2021 Type of Injuries
Burns Contusions/Lacerations Other
City Council 28 – 86 4/19/2022
15 In Orange County this year, head/face/ear injuries and hand/finger injuries were the highest. Both injury percentages came in at 30%. This percentage aligns with the national hand/finger injury average of 30% but deviates slightly from the 22% head/face/ear injury percentage. Eye injuries in Orange County also came in a tad higher than the national injury percentages. Leg, trunk/other and arm categories came in at lower percentages this year.

Hand/Finger
30%
Head/Face/Ear
30%
Leg
9%
Eye
20%
Trunk/Other
4%
Arm
7%
OC 2021 Body Regions Injured
Hand/Finger Head/Face/Ear Leg Eye Trunk/Other Arm
Hand/Finger, 30%
Leg, 13% Head/Face/Ear, 22%
Eye, 15%
Trunk/Other, 7%
Arm, 12%
CPSC 2020 BODY REGIONS INJURED
Hand/Finger Head/Face/Ear Leg Eye Trunk/Other Arm
City Council 28 – 87 4/19/2022
16 Appendix A
2021 INJURIES BY EMERGENCY CARE FACILITY

AGE GENDER DESCRIPTION OF INJURY CARE FACILITY
6 M Base of firework hit head CHOC
8 F Unspecified firework injury CHOC
6 M Firework backfired to face CHOC
3 F Firework backfired and hit face CHOC
47 F Sparks flew across and hit face Mission Hospital
5 F Sparkler flash got into eye Kaiser Anaheim ED
10 M Firework hit face Kaiser Anaheim ED
48 F Firework was thrown on patient Kaiser Anaheim ED
67 F Patient lit firework in hand OC Global Medical Center 37 M Patient lit multiple at once and one exploded OC Global Medical Center 8 M Hit in the face with projectile firework OC Global Medical Center 35 M Box of fireworks thrown in the street OC Global Medical Center 7 F Box of fireworks thrown in the street OC Global Medical Center 2 M Box of fireworks thrown in the street OC Global Medical Center 20 M Firecracker exploded next to face OC Global Medical Center 23 M Firecracker fuse went off in hand OC Global Medical Center 30 M Firework landed in yard and exploded Kaiser Irvine ED 11 F Singed hair while pulling back firework to throw Kaiser Irvine ED 23 M Firework exploded in face Kaiser Irvine ED
28 M Sparklers burned too quickly in hand Kaiser Irvine ED 25 F Lit firework exploded Kaiser Irvine ED
14 M Held firework with no fuse HOAG Newport Beach
11 F Sparkler in hand HOAG Newport Beach
26 F Firework flew from across the street HOAG Newport Beach 24 F Firework flew from across the street HOAG Newport Beach 29 M Firework blew up in hand Fountain Valley Hospital
4 M Firework blasted onto face while watching fireworks Fountain Valley Hospital 41 M Firecracker exploded while lighting it Fountain Valley Hospital 29 M Firework exploded while lighting it resulting in amputation of fingers Fountain Valley Hospital 36 M Unspecified firework injury Fountain Valley Hospital 29 M Burn to the hand by touching “firework dust” UCI
27 M Picked up mortar and it exploded UCI
19 F Firework to eye as fireworks were being set up in the street UCI 22 M Firework exploded in hand UCI
40 M Hit by fireworks that went off 6 feet away UCI
30 M Firework exploded in face UCI
31 M Firework exploded in face UCI
6 M Struck by firework while walking through the neighborhood UCI City Council 28 – 88 4/19/2022
17 40 M Unspecified firework injury UCI
20 F Firework sparks flew into eye St. Joseph Hospital
49 M Explosive fireworks from neighbor St. Joseph Hospital 51 M Firework got into shoe Memorial Care FV Urgent Care 35 F Projectile launch of firework hit patient Memorial Care FV Urgent Care 49 M Firework sparks flew into eye Memorial Care FV Urgent Care 54 M Unspecified firework injury Hospital name not disclosed 41 M Firework that was ignited on both ends exploded in hand Hospital name not disclosed City Council 28 – 89 4/19/2022
Ordinance No. NS-XXX