Agenda packet — Santa Clarita City Council, May 24, 2022 (part 1 of 2)

CITY OF SANTA CLARITA

CITY COUNCIL

REGULAR MEETING

Tuesday, May 24, 2022
6:00 PM
City Council Chambers
23920 Valencia Blvd.

Santa Clarita, CA 91355

AGENDA

Joint Meeting with
Board of Library Trustees

How to Address the City Council
Pursuant to Government Code section 54954.3 members of the public are afforded the opportunities to address the City Council. You may address the Council once per meeting during Public Participation on any matter within the Council's jurisdiction that is not listed on the agenda. Public Participation speaker's cards must be submitted to the City Clerk BEFORE this portion of the meeting begins. To address the Council regarding an item on the agenda, please fill out a speaker's card and submit it to the City Clerk BEFORE the Mayor announces the item.

Each person addressing the Council is given three minutes to speak (with double the time allotted to non-English speakers using a translator) indicated by a colored light system on the Council dais. If you wish to provide information to the Council, please present the City Clerk with 10 copies. Otherwise, your materials will simply be added to the official record. Please note use of City Council Chamber technology equipment to present electronic material during meetings is not allowed.
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In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk's Office, (661) 255-4391. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (28CFR 35.102-35.104 ADA Title II)

Pursuant to Government Code 54957.5 any writings or documents distributed to a majority of the members of the City Council regarding any open session item on this agenda will be made available for public inspection in the City Clerk’s Office located at 23920 Valencia Boulevard, Suite 120, during normal business hours.
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INVOCATION
Miranda

CALL TO ORDER

ROLL CALL

FLAG SALUTE

EXECUTIVE MEETING
This time has been set aside for Councilmembers to review the agenda and obtain any further information that may be needed. Council will also discuss each individual item during the course of the meeting with the exception of the Consent Calendar, which may be approved in its entirety by one motion, unless there is a request to pull an item for discussion. No action will be taken on public agenda items during the Executive Meeting.

APPROVAL OF AGENDA

AWARDS AND RECOGNITIONS
Prader Willi Syndrome Month Proclamation
Hart District Suicide Awareness and Prevention Video Contest Winners Asian American and Pacific Islander Heritage Month
Graffiti Removal Day Proclamation

PUBLIC PARTICIPATION
This time has been set aside for the public to address the City Council on items NOT listed on the agenda. The City Council will not act upon these items at this meeting other than to review and/or provide direction to staff. All speakers must submit a speaker’s card to the City Clerk PRIOR to the beginning of this portion of the meeting. Thirty minutes are allotted for public input at this time. The FIRST TEN people to submit a speaker card prior to the beginning of Public Participation will be heard.

STAFF COMMENTS

COMMITTEE REPORTS/COUNCILMEMBER COMMENTS

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PUBLIC HEARINGS

1. CONSIDERATION OF A PRE-ANNEXATION AGREEMENT BETWEEN THE

CITY OF SANTA CLARITA AND BLC TESORO, LLC, INCLUDING

CONSIDERATION OF THE PARTICIPATION IN THE STATE OF

CALIFORNIA BOLD PROGRAM AND DEDICATION OF OPEN SPACE TO THE CITY OF SANTA CLARITA - This is a request to consider the approval of a Pre- Annexation Agreement and Open Space Management and Maintenance Agreement between the City of Santa Clarita and BLC Tesoro, LLC, regarding the Tesoro Highlands project, as well as to consider the participation of BLC Tesoro, LLC, in the State of California BOLD Program to fund certain improvements, development impact fees, and open space management funding.

RECOMMENDED ACTION:

City Council:

1. Receive the staff report, presentation, and conduct the public hearing;

2. Authorize the City Manager or designee to enter into a Pre-Annexation Agreement between the City of Santa Clarita and BLC Tesoro, LLC;

3. Authorize the City Manager or designee to enter into an Open Space Maintenance and Management Agreement with BLC Tesoro, LLC, for the dedication of approximately 770 acres of land to the City, including executing all documents associated with the on-going maintenance of the property; and

4. Adopt a resolution authorizing BLC Tesoro, LLC, to pursue the use of the Bond Opportunities for Land Development program through the California Municipal Finance Authority to levy special taxes for the Tesoro Highlands development, and authorize the City Manager or designee to execute the associated documents.

NEW BUSINESS

2. 2022 COMMUNITY ACTION PLAN TO ADDRESS HOMELESSNESS - The Community Task Force on Homelessness has developed a new Community Action Plan to Address Homelessness, which aims to meet the current needs of the community, while building on the successes of the 2018 Community Action Plan.

RECOMMENDED ACTION:

City Council receive a presentation on the 2022 Community Plan to Address Homelessness.

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CONSENT CALENDAR
All matters listed under the Consent Calendar are considered routine and will be enacted by one motion by the City Council. The items are not individually discussed by the City Council unless a request is made by a member of the public or the Council, in which case, the item(s) will be removed from the Consent Calendar and will be considered separately.

3. APPROVAL OF SPECIAL MEETING MINUTES – The minutes of the City Council are submitted for approval.

RECOMMENDED ACTION:

City Council approve the minutes of the May 10, 2022 Special Meeting.

4. APPROVAL OF REGULAR MEETING MINUTES – The minutes of the City Council are submitted for approval.

RECOMMENDED ACTION:

City Council approve the minutes of the May 10, 2022 Regular Meeting.

5. CHECK REGISTER NO. 10 - Check Register No. 10 for the Period 04/08/22 through 04/21/22 and 04/28/22. Electronic Funds Transfers for the Period 04/11/22 through 04/22/22.

RECOMMENDED ACTION:

City Council approve and ratify for payment the demands presented in Check Register No. 10.

6. FRANCHISED WASTE HAULERS ANNUAL RATE ADJUSTMENT - The City of Santa Clarita's residential and commercial solid waste services are provided by Waste Management and Burrtec Waste Industries, Inc. Per the approved Franchise Agreements, franchised solid waste haulers may submit a request for a rate adjustment consideration on an annual basis.

RECOMMENDED ACTION:

City Council:

1. Adopt a resolution approving the Eleventh Amendment to the Amended and Restated Agreement between the City of Santa Clarita and USA Waste of California, Inc., for residential solid waste management services, allowing the following adjustments: A) single-family residential standard service rates by 5.00 percent based on Section 6.5.1 Annual Rate Cap, as outlined in the Residential Franchise Agreement, and B) multi- family residential rates and special services by 3.18 percent, based on both the formula outlined in the Residential Franchise Agreement, subject to City Attorney approval.

2. Adopt a resolution approving the Tenth Amendment to the Amended and Restated Agreement between the City of Santa Clarita and Burrtec Waste Industries, Inc., for

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commercial solid waste management services, allowing the following adjustments: A) solid waste and organic rates by 3.38 percent, based on the formula outlined in the Commercial Franchise Agreement, subject to City Attorney approval.

7. APPROVAL OF FINAL TRACT MAP, ACCEPTANCE OF OFFERS OF

DEDICATION, REJECTION OF IRREVOCABLE OFFER OF DEDICATION FOR TRACT NO. 60922-06 (SKYLINE RANCH), AND APPROVAL OF LOT LINE ADJUSTMENT FOR SKYLINE RANCH PARK - Pursuant to Section 66474.1 of the Subdivision Map Act, approve final tract map, accept and reject offers of dedication for Tract No. 60922-06 and approve lot line adjustment for Skyline Ranch Park. This map is for subdivision purposes and is located in Skyline Ranch east of the intersection of Stratus Street and Skyline Ranch Road.

RECOMMENDED ACTION:

City Council:

1. Approve the Final Tract Map for Tract No. 60922-06.

2. Accept the following on behalf of the public: (1) the offer of dedication and grant of easements for public use and road purposes; (2) the right to restrict or prohibit direct vehicular ingress and egress to Stratus Street and Skyline Ranch Road; (3) the right to restrict or prohibit any and all allowable uses within areas designated as open space; (4) the easements for covered storm drain appurtenant structures and ingress and egress purposes; (5) the easements for sanitary sewer and sanitary sewer ingress and egress purposes; (6) all sanitary sewers and appurtenant structures; and (7) the easement for sight distance purposes.

3. Reject the irrevocable offer of dedication and grant in fee simple all of Lot 150 for flood control purposes.

4. Authorize the City Manager or designee to rescind the rejection and accept the offer of dedication and grant in fee simple all of Lot 150 when construction improvements are completed to the satisfaction of the Director of Public Works.

5. Make findings as follows: this project is consistent with the provisions of Sections 66474 and 66474.1 of the Subdivision Map Act and should be approved.

6. Instruct the Director of Administrative Services to endorse the Special Assessment Statement on the face of the Final Tract Map for Tract No. 60922-06, which indicates all special assessments levied by the City of Santa Clarita are paid.

7. Instruct the City Clerk to endorse the City Clerk’s Statement on the face of the Final Tract Map for Tract No. 60922-06, which embodies the approval of said map, the acceptance of the dedications shown thereon, the rejection of the irrevocable offer of dedication shown thereon, and the abandonment of the easements described thereon.

8. Instruct the City Surveyor to endorse the City Surveyor’s Statement on the face of the

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Final Tract Map for Tract No. 60922-06, which provides for verification that the map is technically correct.

9. Instruct the City Engineer to endorse the City Engineer’s Statement on the face of the Final Tract Map for Tract No. 60922-06, which provides for verification of substantial conformance with the Tentative Tract Map and all provisions of local ordinances and state laws applicable at the time of approval.

10. Approve the lot line adjustment and associated deed for Skyline Ranch Park and authorize the City Manager or designee to execute all necessary documents subject to the City Attorney’s approval.

8. 2021-22 PASEO BRIDGE MAINTENANCE AND PAINTING PROGRAM, PROJECT M0146 - APPROVE PLANS AND SPECIFICATIONS AND AWARD CONSTRUCTION CONTRACT - This project will address necessary repairs to three paseo bridges to maintain them in good serviceable condition. The work entails installing new joint seals, repair of cracks in the bridge deck, application of methacrylate coating, repair of a crack in the bridge walls, repair of bearing assemblies, painting, and other minor work.

RECOMMENDED ACTION:

City Council:

1. Approve the plans and specifications for the 2021-22 Paseo Bridge Maintenance and Painting Program, Project M0146.

2. Award the construction contract to Slater Waterproofing, Inc., in the amount of $374,895 and authorize a contingency in the amount of $37,489, for a total contract amount not to exceed $412,384.

3. Appropriate one-time funds in the amount of $136,000 from the Landscape Maintenance District Fund (Fund 357) to expenditure account M0146357-516101.

4. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney approval.

9. PROFESSIONAL SERVICES CONTRACT FOR CREATING THE TOWN

CENTER SPECIFIC PLAN AND ASSOCIATED ENVIRONMENTAL
DOCUMENT - City Council award a contract in the amount of $499,998 for professional services and environmental review for creating the Town Center Specific Plan.

RECOMMENDED ACTION:

City Council:

1. Award a contract to Michael Baker International for the Town Center Specific Plan in an amount not to exceed $499,998; and

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2. Authorize the City Manager or designee to execute all documents, subject to City Attorney approval.

10. AQUATIC CENTER POOL DECK CONCRETE REPAIRS AND REPLASTER - PHASES II AND III, PROJECT M3035 - APPROVE PLANS AND
SPECIFICATIONS AND AWARD CONSTRUCTION CONTRACT - This project will remove and replace damaged pool deck concrete surrounding the 25-meter pool and 50-meter pool, and will replace the plaster in both pools at the Santa Clarita Aquatic Center.

RECOMMENDED ACTION:

City Council:

1. Approve the plans and specifications for Aquatic Center Pool Deck Concrete Repairs and Replaster - Phases II and III, Project M3035.

2. Award a construction contract for repair services to California Commercial Pools, Inc. in the amount of $2,468,400 and authorize a contingency in the amount of $493,680, for a total contract amount not to exceed $2,962,080.

3. Appropriate one-time funds in the amount of $3,072,514 from the Measure A Safe Parks - Capital Fund (Fund 269) to expenditure account M3035269-516101 and increase Measure A Safe Parks Annual Allocation revenue account 269-443105 by $3,072,514.

4. Authorize the City Manager or designee to execute all documents, subject to City Attorney approval.

PUBLIC PARTICIPATION
This time has been set aside for any speakers that have turned in speaker cards and were not heard in the first thirty minutes allotted to address the City Council on items that are NOT on the agenda. Speaker cards may not be submitted relating to any items listed on the agenda.

STAFF COMMENTS

ADJOURNMENT
In memory of Judge Alan S. Rosenfield

FUTURE MEETINGS
The next regular meeting of the City Council will be held June 14, 2022, at 6:00 PM in the Council Chambers, 1st floor of City Hall, 23920 Valencia Blvd., Santa Clarita, CA.

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CERTIFICATION
On May 19, 2022, I, Mary Cusick, do hereby certify that I am the duly appointed and qualified City Clerk for the City of Santa Clarita and that the foregoing agenda was posted at City Hall.

_____________________________
Mary Cusick
City Clerk
Santa Clarita, California

PROCLAMATION

Prader-Willi Syndrome Month
May 2022

WHEREAS, Prader-Willi Syndrome (PWS) is a genetic disorder that occurs in approximately one out of every 15,000 births; and

WHEREAS, PWS affects males and females with equal frequency and affects all races and ethnicities. PWS is recognized as the most common genetic cause of life-threatening childhood obesity; and

WHEREAS, symptoms of PWS are mainly caused by a dysfunction in the region of the brain called the hypothalamus. The hypothalamus plays a crucial role in many bodily functions, including regulating hunger and satiety, regulating body temperature, pain perception, metabolism, sleep ‐wake balance, fluid balance, emotions and behavior; and

WHEREAS, The Foundation for Prader-Willi Research was founded in California and aims to develop new therapies that will improve the health and wellbeing of those with PWS; and

WHEREAS, PWS Awareness Month is an opportunity for us to come together as a community, show our unity and strength, and help educate the world on PWS and the need for continued research.

NOW, THEREFORE, the City of Santa Clarita does herby proclaim May 2022, as Prader-Willi Syndrome Month.

Signed this 24th day of May, 2022.

Laurene Weste, Mayor
Santa Clarita, California
a
Packet Pg. 9
Attachment: Prader Willi Syndrome Month - May 2022 (Proclamation Prader Willi Syndrome Month)

PROCLAMATION

Asian American and Pacific Islander Heritage Month
May 2022

WHEREAS, Asian American and Pacific Islander Heritage Month is observed during the month of May to celebrate and acknowledge Asian American and Pacific Islander history, culture, and achievements; and

WHEREAS, the month of May was chosen for Asian American and Pacific Islander Heritage Month to commemorate the immigration of the first Japanese people to the United States on May 7, 1843; and

WHEREAS, May also marks the completion of the Transcontinental Railroad in 1869, constructed by the labor of mostly Chinese immigrants; and

WHEREAS, today more than 20 million Asian American Pacific Islanders live in the United States and through their actions, make America a more vibrant, prosperous, and secure nation; and

WHEREAS, generations of AAPIs of all backgrounds have been inspirational examples of leaders and trailblazers and have a longstanding history of making esteemed, significant, cultural, economic and community contributions across the United States; and

NOW, THEREFORE, the City of Santa Clarita does hereby proclaim May 2022, as Asian American and Pacific Islander Heritage Month.

Signed this 24th day of May, 2022

Laurene Weste, Mayor
Santa Clarita, California
a
Packet Pg. 10
Attachment: Asian American and Pacific Islander Heritage Month May 2022 (Asian American and Pacific Islander Heritage Month)

PROCLAMATION

Graffiti Removal Day
June 4, 2022

WHEREAS, The City of Santa Clarita Graffiti Removal Team plays a vital role in preserving the high quality of life for our residents; and

WHEREAS, since 2015, the Graffiti Removal Team has maintained a 24-hour response rate 99% of the time; and

WHEREAS, over the last three calendar years the Graffiti Removal Team has removed over 40,000 tags and completed over 1,000 beautification projects; and

WHEREAS, residents can report graffiti to (661) 25-CLEAN (252-5326) or online through the Resident Service Center.

WHEREAS, The City of Santa Clarita invites residents to participate in Graffiti Removal Day. Staff will educate volunteers on graffiti vandalism, types of removals and provide the unique opportunity to help complete a large-scale beautification project.

NOW, THEREFORE, the City of Santa Clarita does herby proclaim June 4, 2022, as Graffiti Removal Day and further extends appreciation to our Graffiti Removal Team for the vital services they perform.

Signed this 24th day of May, 2022.

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Laurene Weste, Mayor
Santa Clarita, California
b
Packet Pg. 11
Attachment: Final - Graffiti Removal Day Proclamation (Graffiti Removal Day Proclamation)

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Agenda Item: 1

CITY OF SANTA CLARITA

AGENDA REPORT

PUBLIC HEARINGS
CITY MANAGER APPROVAL:

DATE: May 24, 2022
SUBJECT: CONSIDERATION OF A PRE-ANNEXATION AGREEMENT

BETWEEN THE CITY OF SANTA CLARITA AND BLC TESORO,

LLC, INCLUDING CONSIDERATION OF THE PARTICIPATION IN

THE STATE OF CALIFORNIA BOLD PROGRAM AND

DEDICATION OF OPEN SPACE TO THE CITY OF SANTA

CLARITA
DEPARTMENT: Community Development
PRESENTER: Patrick Leclair

RECOMMENDED ACTION

City Council:

1. Receive the staff report, presentation, and conduct the public hearing;

2. Authorize the City Manager or designee to enter into a Pre-Annexation Agreement between the City of Santa Clarita and BLC Tesoro, LLC;

BACKGROUND

In 2010, the City initiated annexation proceedings for the communities of Copperstone, West Creek, and Tesoro del Valle. At that time, the communities of West Creek and Tesoro del Valle indicated they needed additional time to work with Los Angeles County (County) to perfect their 1 Packet Pg. 12

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entitlements. The City Council voted to proceed with the annexation of the Copperstone community, and reevaluate the annexation of West Creek and Tesoro del Valle at a later date.

The Copperstone Annexation was completed in June 2012.

In 2016, the developer of the West Creek community informed the City they were interested in proceeding with annexation to the City. In April 2016, the City Council authorized the annexation application to be filed with Local Agency Formation Commission (LAFCO) for the annexation of the West Creek community. The West Creek Annexation was completed in October 2016.

On November 7, 2018, the County approved Vesting Tentative Tract Map (VTTM) 51644-1 (Tesoro Highlands) to allow the subdivision of 1,274.6 acres of land into 811 lots, including 696 single-family residence lots, 9 multi-family residence lots developed with 124 detached condominium units, 15 debris basin lots, 12 water quality basin lots, 3 water tank lots, 1 helipad lot, 5 senior recreation area lots, 1 senior recreation center lot, 6 linear park lots, 9 private park lots, 1 private recreation center lot, 29 open space lots, and 24 private driveway/private and future street lots, for a total of 820 residential dwelling units. The entirety of the Tesoro Highlands project is located within the Tesoro del Valle Annexation area.

Following County approval in 2018, the developer of the Tesoro Highlands project informed the City they were interested in proceeding with the annexation. On November 12, 2019, the City Council approved the Tesoro del Valle Annexation (Master Case 19-115) and directed staff to submit an annexation application to LAFCO. The Tesoro del Valle Annexation consists of approximately 1,786 acres of land, generally located along the City’s northern boundary north of Copper Hill Drive, west of San Francisquito Canyon Road, south of the Angeles National Forest, and east of the community of West Hills, in unincorporated Los Angeles County. The annexation includes the existing developed portions of the Tesoro del Valle community, along with the entitled Tesoro Highlands project. A map of the annexation area is attached.

On January 28, 2020, the City submitted an annexation application to LAFCO. The application is currently being reviewed by LAFCO, and the City anticipates the annexation to be complete by November 30, 2022.

PROPOSED PROJECT

The project proposed for the City Council’s consideration at this time includes the following:

1. Pre-Annexation Agreement - an agreement to clarify how annexation affects the entitled Tesoro Highlands project upon annexation.

2. Open Space Management and Maintenance Agreement - an agreement to transfer approximately 770 acres of open space to the City.

3. Participation in the State of California Bond Opportunities for Land Development (BOLD) Program - acknowledgment of the Tesoro Highlands intention to finance portions of their infrastrucutre and development impact fees through the BOLD Program 1 Packet Pg. 13

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administered by the State of California through the formation of a Community Facilities District (CFD).

PRE-ANNEXATION AGREEMENT

In accordance with Section 17.27.100 of the Unified Development Code (UDC), the City Council may, at its sole discretion, enter into a Pre-Annexation Agreement (Agreement) and agree to specific terms and conditions prior to annexation to the City, accepting the development standards associated with an entitlement issued by the County for a development project, including permitted uses, parking, setbacks, floor area ratio, signage, architectural design elements, right-of-way improvements, landscaping, hillside development, and/or other standards determined by the City Council. BLC Tesoro, LLC (Owner), has agreed to the terms of the Agreement. The following is a summary of the major points in the Agreement:

1. The Owner agrees to support the annexation;

2. The City agrees to recognize and continue to treat County approvals, which are part of VTTM 51644-1 and its associated entitlements, as a vested right, provided the project is not substantially modified consistent with UDC Section 17.09-Minor Permit Modifications;

3. The City accepts permitted uses, parking, setbacks, right-of-way improvements, landscaping, hillside development, and other elements approved by the County as part of VTTM 51644-1;

4. The Owner is responsible for the construction and widening of Copper Hill Drive and the Bridge over San Francisquito Creek. The Owner will make a payment to the City to fund the design/permitting review and construction management of this improvement. This payment will be applied against the Bridge & Thoroughfare fee for the project. The timeline is expected to be nine months to complete the construction, and must be complete prior to the first Certificate of Occupancy in the Tesoro Highlands;

5. The Owner agrees to offer approximately 770 acres of open space for dedication to the City, with 712 acres initially and 58 acres in a future dedication. The City understands a portion of the open space being dedicated to the City is required habitat mitigation as part of the County approvals and will have restricted use, and the City shall determine, at its sole discretion, if it will accept the open space offered for dedication by the applicant;

6. The Owner will construct multi-use trail connections from their existing terminus at the Copper Hill Bridge on the east and west end of the bridge. The connections will extend the trails to Copper Hill Drive. If the Owner is unable to acquire the necessary property to construct the extensions, the City will commence proceedings to acquire the property at the Owner’s expense;

7. The City agrees to accept all public trails within VTTM 51644-1 and maintain said trails to City standards, including trails required by County approvals, and including the Cliffie 1 Packet Pg. 14

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Stone Trail and the Outpost East Trailhead that will be transferred to the City upon annexation;

8. The City understands the Owner intends to form a Mello-Roos CFD through the BOLD Program to finance up to $38 million in public improvements and development impact fees. In addition, the CFD will fund an initial stewardship cost of $59,000 to the City, with an ongoing annual assessment to provide a $50,000 per year (with annual Consumer Price Index (CPI) increases) to the City for management and maintenance of the open space that is being dedicated to the City in the Tesoro Highlands; and

9. The Owner agrees to form a Drainage Benefit Assessment Area to maintain water quality devices within the existing development that will not be transferred to the Los Angeles County Flood Control District.

OPEN SPACE DEDICATION

As a part of the approval of the Tesoro Highlands project, the Los Angeles County Board of Supervisors required that the Owner find an entity to take ownership of, and provide permanent maintenance of, the open space within the development. The Owner has offered to dedicate the property to the City and has been working with City staff to craft the necessary agreements to transfer ownership to the City. The total open space to be dedicated to the City is approximately 770 acres and will be dedicated to the City in two phases.

An approximate 712-acre portion of the open space will be donated to the City initially. Portions of this property will have some environmental mitigation areas the Owner will be required to complete in coordination with other agencies. The City will inherit ongoing responsibilities for these mitigation areas after the initial five-year establishment periods have been completed.

An approximate 58-acre portion of the open space will be dedicated to the City once grading and development activities have been completed. This area has been reserved for future dedication to ensure that the total development and grading work can be completed, and the final dedication will include only the balance of open space without any manufactured slopes.

To fund the ongoing maintenance of the 770 acres of open space, the Owner was conditioned by the County to provide an on-going funding source. The initial year funding includes $59,000, with ongoing annual funding equal to a minimum of $50,000, plus an annual CPI escalator. The Owner will coordinate the annual funding as a special assessment through the CFD established through the BOLD Program administered by the state.

CFD/BOLD PROGRAM

Introduction

At the request of the Owner, staff has been provided information regarding the BOLD Program offered by the California Municipal Finance Authority (CMFA). Specifically, the Owner is proposing to leverage the BOLD Program to finance $38 million of governmental obligations. A breakdown is provided below:
1 Packet Pg. 15

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• $19.7 million to fund storm drain improvements for County Flood Control District • $11.2 million to fund Bridge & Thoroughfare fees
• $4.5 million to fund certain street improvements
• $2.5 million to fund sewer fees for County Sanitation District

California Municipal Finance Authority

The City is a member of California Municipal Finance Authority (CMFA), a state-wide Joint Powers Authority (JPA) whose members are numerous public entities throughout California.

CMFA has the authority to issue bonds to meet its mission of supporting economic development, job creation, and social programs throughout the state, while giving back to California communities. By supporting member communities and their local charities with a portion of the revenue generated through the issuance of tax-exempt bonds for public, private, and non-profit entities, CMFA is able to directly contribute to building strong communities to support the health and welfare of the residents of California.

BOLD Program

The CMFA recognizes that new residential development often challenges the mission of municipalities to provide infrastructure and schools, since new development triggers the need to construct, acquire, or otherwise provide additional public facilities to accommodate that growth.

The BOLD Program offers a means to finance new or continuing construction of infrastructure and public facilities through bonds CMFA issues as an alternative to issuance of land-secured bonds directly by a public entity. The BOLD Program is designed to help local government municipalities, schools, and land developers throughout the state work together to cost- effectively finance public infrastructure projects and development fees.

Under the BOLD Program, bonds are issued by a CFD formed by CMFA under the Mello-Roos Community Facilities Act (the Act) of 1982 (California Government Code Section 53311 et seq.). The Act offers great financing flexibility and is commonly used by cities, schools, and other local agencies throughout the state to generate funds for the payment of public facilities, including development fees for facilities.

The BOLD Program is handled by a team of bond industry professionals with significant experience in CFDs in the state. All have highly specialized expertise in CFD bond issuance and sales, and are consistently ranked among the top firms in the field. In addition, if the City desires to use a municipal advisor of its own choosing to review the BOLD Program application and/or other BOLD Program documents, it may do so, with all related costs payable from bond proceeds. Specifically, the BOLD Program uses Jones Hall for bond counsel, Koppel & Gruber for special tax consulting services, and Piper Sandler & Co. for underwriting services.

Although the CFD would be formed within the City’s jurisdiction, little involvement is required.

The City Council is only required to take a single action to approve participation in the BOLD Program; thereafter, CMFA will work with staff to ensure the BOLD Program is meeting any goals the City sets. CMFA and its consultant team will form and approve the CFD. The CMFA will issue bonds on behalf of the CFD and will use the services of a special tax consultant and administrator to create the special tax formula and administer, levy, and collect the special taxes. 1 Packet Pg. 16

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By working directly with developers, the BOLD Program facilitates financing for infrastructure and fee obligations of developers, covering a broad range of development cost obligations necessary for new development imposed by municipalities, including both facilities and/or impact fees. Using the BOLD Program alleviates staff time constraints and allows staff to focus on other aspects of processing land development projects.

The Owner and CMFA have agreed to include within the formation of the CFD a separate service special tax over the project to be levied in perpetuity to fund the management and maintenance of the open space described in the Pre-Annexation Agreement. This will generate a minimum of $50,000 per year in revenue, as described in an Open Space Management and Maintenance Agreement to be entered into by the City and the developer. This will be evaluated each year and may increase, based on the CPI.

Formation of the CFD requires the establishment of the annual special tax rates. The formula for computing special tax rates will be included in the resolutions to be adopted as part of the CFD formation proceedings. Typically, the formula will include a basic, undeveloped land tax with an increase in rate and shifting of the tax to developed lands at building permit stage. The total amount of taxes on developed land generally will not exceed 2 percent of its market value in its completed state, per industry standards.

Bonds are issued through CMFA, with little involvement from local agencies needed for the issuance process. The City will need to approve the use of a CFD to acquire public facilities and the financing thereof and enter into an acquisition or similar agreement to receive the bond proceeds and meet the general requirements to maintain the tax exemption of interest on the bonds. The CMFA adopts the resolutions needed to authorize and issue the special tax bonds and awards the sale to the bond underwriter.

Once the bond issuance occurs, bond proceeds are available for disbursement. The proceeds are held by a bond trustee and are not directly paid to the developer, but are available as directed by the developer and approved by the local agency to be used to meet obligations to the City, according to the structure and timing required for development approvals. Pursuant to an acquisition agreement or similar document, the City will determine and agree to its role in inspecting and accepting infrastructure and/or payment of financed impact fees.

The CFD may be formed early in the development process, with issuance of bonds at a later time or in multiple series. The following are the typical criteria for bond issuance.

• Minimum 4:1 value-to-debt ratio overlapping (assessed or appraised) • No discretionary approvals required for build-out of the portion of the CFD directly relating to the bond security
• Entitlements received that are necessary for phase to be bonded • Financing plan for backbone infrastructure complete or imminent and/or a performance bond is in place

Credit criteria will be reviewed by the underwriting team on a case-by-case basis to assure reasonable interest rates at the time of issuance. Additionally, similar credits can be pooled 1 Packet Pg. 17

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together into a single bond issue, with pooling flexibility assuring the most cost-effective bond issuance for each project.

Administration of all aspects of the BOLD Program is handled by CMFA, without cost to or burden on the City. Federal regulations require annual disclosures to bond investors of information related to the bonds and the development project. The BOLD Program administrators will handle this continuing disclosure reporting in consultation with developers.

The CMFA shares a portion of its issuance fees directly with its member communities. In addition, a grant from a portion of the issuance fee is made to the California Foundation for Stronger Communities to fund charities designated by the member communities. A portion of the annual fees received by CMFA are in turn directed to charitable activities within California communities, particularly those of members and participating local government agencies. This unique commitment to give back directly to the communities in which they operate sets CMFA apart from other JPA conduit issuers.

Tax-exempt municipal bonds are sold through an offering document known as an Official Statement, which describes to potential purchasers of the bonds the terms, security, and repayment of the bonds, as well as details about the property securing the bonds. Since prior to home sales, the land is owned by the developer entity(ies), relevant information for the Official Statement needs to describe the developer and the development plan. The financing team will work with the developer to provide the required information and approve the final language to be provided to prospective bond buyers.

California law requires developers to disclose to home buyers the lien of any CFD special tax which will be present on the purchased property. The form of disclosure is simple and becomes part of the various sale documents presented to buyers for signature prior to a home sale.

ANNEXATION NEXT STEPS

Staff is coordinating with Los Angeles County and LAFCO to have the annexation of the Tesoro del Valle community to the City completed in November 2022. Additional public hearings before the LAFCO board are required in the fall to ensure this is completed in November.

ALTERNATIVE ACTION

Other action as directed by the City Council.

FISCAL IMPACT

Annexation of the Tesoro del Valle area would generate a neutral/no-net fiscal impact to the City of Santa Clarita. Execution of the Open Space Maintenance and Management Agreement would result in a minimum of $50,000 annually to the City in order fund maintenance costs associated with the dedicated open space.

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ATTACHMENTS
Public Hearing Notice
Resolution - Authorizing Participation in the BOLD Program Annexation Boundary Map
Pre-Annexation Agreement
Open Space Management and Mainenance Agreement
Pre-Annexation Agreement Exhibits (available in the City Clerk's Reading File) OSMMA Exhibits (available in the City Clerk's Reading File) 1 Packet Pg. 19

CITY OF SANTA CLARITA

COMMUNITY DEVELOPMENT DEPARTMENT
23920 Valencia Boulevard, Suite 302
Santa Clarita, CA 91355

NOTICE OF PUBLIC HEARING

PROJECT: Master Case 19-115: Consideration of a Pre-Annexation Agreement and City participation in the BOLD program for the Tesoro Highlands development

PROJECT LOCATION: 1,274.6 acres located north of Copper Hill Drive and west of San Francisquito Canyon Road, within the Tesoro del Valle Annexation area.

PROJECT APPLICANT: BLC Tesoro LLC.

PROJECT DESCRIPTION: On November 7, 2018, Los Angeles County (County) approved VTTM 51644-1 (Tesoro Highlands), to allow for the subdivision of 1,274.6 acres of land into 811 lots, including 696 single-family residence lots, nine multi-family residence lots developed with 124 detached- condominium units, 15 debris basin lots, 12 water quality basin lots, three water tank lots, one helipad lot, five senior recreation area lots, one senior recreation center lot, six linear park lots, nine private park lots, one private recreation center lot, 29 open space lots, and 24 private driveway/private and future street lots, for a total of 820 residential dwelling units. The entirety of VTTM 51644-1 is located within the Tesoro del Valle Annexation area, approved by the City Council on November 12, 2019. In order to better understand how annexation will affect the approved project, BLC Tesoro LLC, has requested a Pre- Annexation Agreement with the City of Santa Clarita. In accordance with Section 17.27.100 of the City’s Unified Development Code, a public hearing is required.

In addition, the applicant is requesting the City of Santa Clarita conduct a public hearing with respect to the proposed participation by the City of Santa Clarita (the “Local Agency”) in the Bond Opportunities for Land Development (“BOLD”) program of the California Municipal Finance Authority (“CMFA”).

Participation in said program will enable the property owner of the Tesoro Highlands development to finance public capital improvements and/or development impact fees for public capital improvements imposed on new development within the boundaries of the Local Agency. Said public capital improvements, if financed, will be among the public capital improvements required in connection with the Tesoro Highlands development. The public capital improvements include the extension of Avenida Rancho Tesoro and the payment of Bridge and Thoroughfare development impact fees and will be of a type and nature authorized under the Mello-Roos Community Facilities Act of 1982 (California Government Code section 53311 et seq.). Participation is said program does not itself authorize the Local Agency to impose additional public capital improvements or new or additional development impact fees on any property owner.

The City of Santa Clarita City Council will conduct a public hearing on this matter on the following date:

DATE: May 24, 2022
TIME: At or after 6:00 p.m.

LOCATION: City of Santa Clarita, Council Chambers
23920 Valencia Boulevard, First Floor
Santa Clarita, CA 91355

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Attachment: Public Hearing Notice (Tesoro del Valle Pre-Annexation Agreement)

If you wish to challenge the action taken on this matter in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or written correspondence delivered to the City of Santa Clarita, at or prior to, the public hearing.

For further information regarding this proposal, please contact the case planner at the City of Santa Clarita Clerk’s Office by appointment, 23920 Valencia Boulevard, Suite 120, Santa Clarita, CA 91355.

Telephone: (661) 255-4330. E-mail: [email protected].

Mary Cusick, MMC
City Clerk

Published: The Signal, May 3, 2021

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RESOLUTION NO. 22-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY COUNCIL OF THE

CITY OF SANTA CLARITA, CALIFORNIA, AUTHORIZING USE OF THE

BOND OPPORTUNITIES FOR LAND DEVELOPMENT PROGRAM, AND

AUTHORIZING THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY

TO ACCEPT APPLICATION FROM BLC TESORO, LLC, CONDUCT

PROCEEDINGS AND LEVY SPECIAL TAXES FOR TESORO HIGHLANDS,

WHICH IS SUBJECT TO A PRE-ANNEXATION AGREEMENT WITH THE

CITY OF SANTA CLARITA PURSUANT TO THE MELLO-ROOS
COMMUNITY FACILITIES ACT OF 1982 AS AMENDED, AND

AUTHORIZING RELATED ACTIONS

WHEREAS, the California Municipal Finance Authority (CMFA) is a joint exercise of powers authority, the members of which include numerous cities, counties, and other local agencies in the State of California (State); and

WHEREAS, City of Santa Clarita (City) is currently a member of CMFA in good standing; and

WHEREAS, the CMFA has established the Bond Opportunities for Land Development Program (BOLD Program) to allow the financing of certain public facilities and/or certain development impact fees that finance public facilities, as specified in a Pre-Annexation Agreement or Acquisition Funding Agreement (Improvements), owned, operated, or maintained by local agencies in the State through the levy of special taxes under the Mello-Roos Community Facilities Act of 1982, as amended (Act); and

WHEREAS, the CMFA from time to time may be requested by owners of land within the City, or to be annexed to the City, to use the BOLD Program for the financing of Improvements related to new development within the City or that is subject to a Pre-Annexation Agreement, which Improvements will be financed through the BOLD Program in connection with such new development; and

WHEREAS, the City desires to allow BLC Tesoro, LLC, the owner of property that is currently within a non-incorporated portion of the City but which is subject to a pre-annexation agreement (Participating Developer), to participate in the BOLD Program and to allow the CMFA to conduct proceedings under the Act to form a Community Facilities District (CFD) under the Act, to levy special taxes within such CFD, and to issue bonds secured by such special taxes under the Act to finance the Improvements, provided that such Participating Developer voluntarily agrees to participate and consents to the levy of such special taxes and the issuance of such bonds; and

WHEREAS, the City will not be responsible for the conduct of any proceedings under the Act for the formation of any CFD, the levy or collection of special taxes for any CFD, or any required remedial action in the case of delinquencies in any special tax payments, or the issuance, sale, or administration of any bonds issued in connection with the BOLD Program; and

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WHEREAS, the City finds that the BOLD Program offered by the CMFA can provide significant public benefits, and in conformance with Government Code Section 6586.5 relating to the issuance of bonds by a Joint Powers Authority of which the City is a member, notice was published at least five days prior to the adoption of this resolution at a public hearing, which was duly conducted by this City Council concerning the significant public benefits of the BOLD Program and the bond financing of the Improvements from time to time.

NOW THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as follows:

SECTION 1. The use of the BOLD Program, in connection with the financing of Improvements for the Participating Developer and its Tesoro Highlands project, is hereby authorized and approved.

SECTION 2. The City hereby finds and declares that the issuance of bonds by the CMFA, in connection with the BOLD Program, will provide significant public benefits, including without limitation, savings in effective interest rate, bond preparation, bond underwriting, and bond issuance costs, and the more efficient delivery of local agency services to residential and commercial development within the City.

SECTION 3. The City Council hereby approves the Joint Community Facilities Agreement (JCFA) between the City and CMFA, attached hereto as Exhibit A, and the Acquisition Funding Agreement among the City, CMFA, and BLC Tesoro, LLC, attached hereto as Exhibit B. and authorizes the City Manager to execute each on behalf of the City with such changes, additions, or deletions as may be approved by the City Manager and City Attorney. The City hereby finds that the JCFA and Acquisition Funding Agreement will be beneficial to the residents of the City.

SECTION 4. The appropriate officials and staff are hereby authorized and directed to allow and approve BOLD Program participation available to the Participating Developer who is required to install public improvements and/or the payment of fees in connection with the development of Tesoro Highlands in the City, and to advise the Participating Developer requesting participation in the BOLD Program that the City has approved the BOLD Program, provided the CMFA shall be responsible for providing applications and processing of documentation and related materials at its own expense. This resolution shall evidence the official intent of the City to reimburse itself for its incurred costs of Improvements from the proceeds of tax-exempt obligations issued by CMFA as part of the BOLD Program for the Tesoro Highlands project.

SECTION 5. This resolution shall take effect immediately upon its adoption. The Clerk of the City Council is hereby authorized and directed to transmit a certified copy of this resolution to the Secretary of the CMFA.

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PASSED, APPROVED, AND ADOPTED this 24th day of May, 2022.

__________________________________________
MAYOR

ATTEST:

CITY CLERK

DATE:________________________

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss

CITY OF SANTA CLARITA )

I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution No. 22-____ was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 24th day of May, 2022, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

CITY CLERK

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Attachment: Resolution - Authorizing Participation in the BOLD Program (Tesoro del Valle Pre-Annexation Agreement) 1 EXHIBIT A

FORM OF JOINT COMMUNITY FACILITIES AGREEMENT

CMFA BOLD PROGRAM

Joint Community Facilities Agreement
by and between
CMFA and City of Santa Clarita

Relating to the Tesoro Highlands project in the City

This Joint Community Facilities Agreement (this “Agreement”) , dated as of ________, 2022, by and between the California Municipal Finance Authority, a joint exercise of powers authority duly organized and existing under the Constitution and laws of the state of California (the “CMFA”), and the City of Santa Clarita, a municipal corporation and general law city, duly organized and existing under the Constitution and laws of the state of California (the “ City,” and together with CMFA, the “Parties”).

WITNESSETH:

WHEREAS, CMFA intends to conduct proceedings under the Mello -Roos Community Facilities Act of 1982 (California Government Code section 53311 et seq.) (the “Act”) to form a community facilities district (the “CFD”) for the Tesoro Highlands project (“Tesoro Highlands”) to finance certain public facilities, Bridge and Thoroughfare development impact fees used for capital improvements, net of applicable credits (the “B&T Fees”), and certain services authorized to be financed under the Act (the “CFD Improvemen ts,” the “ B&T Fees,” and the “CFD Services,” respectively) as part of its Bond Opportunities for Land Development (“BOLD”) program;

WHEREAS, the CFD Improvements, B&T Fees and CFD Services will be described in the resolution of formation for the CFD but shall include CFD Improvements to be acquired by the City, B&T Fees and CFD Services for the City as set forth on Exhibit A hereto (the “ City Improvements,” the “B&T Fees” and the “City Services,” respectively);

WHEREAS, CMFA intends to utilize the proceeds of sale of special tax bonds of the CFDs (the “Bonds”) to finance some or all of the City Improvements and B&T Fees;

WHEREAS, under Section 53316.2 of the Act, CMFA may form a CFD to, among other things, finance the City Services, City Improvements and B&T Fees, provided that CMFA and the City enter into a joint community facilities agreement such as this Agreement; and

WHEREAS, City is willing to cooperate with CMFA in accomplishing the financing of the City Services, City Improvements and B&T F ees pursuant to the Act , and to confer upon the CMFA full power to provide financing (i) for the City Services with the proceeds of a special tax of the CFD levied for such purpose (the “Services Special Tax”) and (ii) for the City Improvements and B&T Fees with the proceeds of special taxes levied for such purpose (the “Facilities Special Tax”) and the proceeds of Bonds;

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Attachment: Resolution - Authorizing Participation in the BOLD Program (Tesoro del Valle Pre-Annexation Agreement) 2 WHEREAS, this Agreement is made under the authority of Section 53316.2 of the Act; and

WHEREAS, in consideration for the mutual undertakings of the Parties stated herein, the Parties agree as follows:

AGREEMENT:

1. Administration of CFD and Issuance of Bonds by CMFA . CMFA shall administer the CFD, including employing and paying all consultants, annually levying the Services Special Tax and Facilities Special Tax and paying and administering the Bonds, and complying with all state and federal requirements appertaining to the proceedings establishing the CFD and issuing and using the proceeds of the Bonds, including the requirements of the United States Internal Revenue Code of 1986, as amended (the “Code”). In addition, the rate and method of apportionment of special tax for the CFD shall take into account the City’s policies, if any, regarding overall projected tax rates on properties in the City and account for any special taxes and/or assessments anticipated to be levied by the City on properties within the CFD.

2. Agreement to Hold Special Taxes and Bond Proceeds. CMFA shall establish two separate funds, accounts or subaccounts designated the “City Services Project Fund” and the “Acquisition and Project Fund.” The Services Special Taxes shall be deposited in the City Services Project Fund and the Facilities Special Taxes and proceeds of Bonds available to fund the City Improveme nts and B&T Fees shall be deposited in the Acquisition and Project Fund.

CMFA shall disburse, or cause to be disbursed, moneys on deposit in the City Services Project Fund only as provided herein. CMFA shall disburse, or cause to be disbursed, moneys on deposit in the Acquisition and Project Fund as provided in the Acquisition Funding Agreement to be entered into by and among CMFA, the City and BLC Tesoro LLC (the “Acquisition Agreement”).

3. Use of Services Special Tax for City Services. The City acknowledges that the City Services may be financed through the levy of the Services Special Taxes of the CFD formed by CMFA as part of the BOLD program. CMFA shall transfer the Services Special Taxes to the City within 10 (ten) business days of receipt for use b y the City as Stewardship Funds pursuant to the Open Space Agreement dated as of _________ by and between the City and ________ (as such term is defined in the Open Space Agreement).

4. Disbursements from City Services Project Fund. Moneys on deposit in th e City Services Project Fund shall be disbursed to the City by wire transfer of immediately available funds or by check payable to the City’s bank account number at a bank located within the United States on file with CMFA as part of the BOLD program, unle ss another method of payment is requested in writing by the City.

5. Purchase of City Improvements and Payment of B&T Fees . The City Improvements shall be acquired by the City and the B&T Fees paid or reimbursed in accordance with the Acquisition Agreement. Neither CMFA nor any of its agents shall be responsible for inspection or review of any such documents relating to financed City Improvements or improvements funded with the B&T Fees (collectively, the “Improvements”), unless set forth in the Acquisition Agreement.

6. Covenants. The City covenants to own, and for the entire useful life of the Improvements, reasonably expects to own, all of the Improvements financed by the CFD.

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Attachment: Resolution - Authorizing Participation in the BOLD Program (Tesoro del Valle Pre-Annexation Agreement) 3 To the extent any of the Improvements are sold to an entity that is not a stat e or local government, the City will seek the advice and approval of bond counsel to CMFA for the BOLD program prior to any such sale. The City will not allow any of the Improvements to be used (for example, by lease or other contract) in the trade or bus iness of any nongovernmental persons (other than in their roles as members of the general public). All of such Improvements will be used in the performance of essential governmental functions of the City or another state or local government agency. The average expected useful life of such Improvements is at least five years.

The representations and covenants contained in this paragraph are intended to support the conclusion that the interest paid on the bonds issued to finance the Improvements is exclude d from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986 (the “Code”).

7. Amendments. This Agreement may be amended by a writing signed by the Parties, including to update Attachment #1 to this Exhibit , to reflect additional or different City Services and/or City Improvements and/or B&T Fees to be financed through the BOLD program from time-to-time.

8. Term of this Agreement. This Agreement shall be in full force and effect from this date to and including its termination by mutual written agreement of the parties hereto. CMFA agrees to terminate this agreement upon request of the City upon delivery to CMFA of an opinion Bond Counsel to the effect that the termination of this Agreement will not adversely affect the exclusion from gross income of interest on the Bonds for federal income tax purposes.

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

[Signatures on Following Page]

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Attachment: Resolution - Authorizing Participation in the BOLD Program (Tesoro del Valle Pre-Annexation Agreement) 4 IN WITNESS WHEREOF the Parties have caused this Agreement to be executed by their authorized representatives as of the effective date stated above.

CMFA:

CALIFORNIA MUNICIPAL

FINANCE AUTHORITY

By:__________________________
Authorized Signatory

CITY:

CITY OF SANTA CLARITA

By: ___________________________
Name:

Title:

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#201798 v6 9202.2

ATTACHMENT #1

DESCRIPTION OF CITY SERVICES, CITY IMPROVEMENTS, and B&T FEES

1. The City Services to be funded with the proceeds of the Services Special Taxes shall include the operation and maintenance of open space.

2. The City Improvements shall include: the extension of Avenido Ranch Tesoro (“A” Street”) improvements as further described in the Acquisition Funding Agreement.

3. The B&T Fees shall include the Bridge and Thoroughfare development impact fees imposed and collected by the City pursuant to City Ordinance No. _____, as it may be amended or superseded, net of applicable credits.

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EXHIBIT B

ACQUISITION FUNDING AGREEMENT

California Municipal Finance Authority
Special Tax Revenue Bonds
BOLD Program Community Facilities District No. _______
(______________)

THIS ACQUISITION AGREEMENT (“Agreement”) is made and entered into on this _____ day of ______, 2022 (“ Effective Date”) among BLC Tesoro LLC, a Delaware limited liability company (the “Developer”), the California Municipal Finance Authority (“Authority”), and the City of Santa Clarita, California (“City”).

RECITALS

A. On _______________, 2022, the governing board of the Authority adopted Resolution No. _________ (the “Resolution”) forming Community Facilities District No. _______ (___________) (the “CFD”) and designating Improvement Area No. 1 and Improvement Area No. 2 therein (each, an “Improvement Area”), under the provisions of the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5, of the Government Code of the State of California (the “Act”). The Authority is authorized to levy special taxes upon land within each Improvement Area (the “Facilities Special Taxes”) and issue bonds secured by the Facilities Special Taxes (the “Bonds”) in one or more series for each Improvement Area to provide financing for infrastructure and other public capital improvements to be owned, operated or maintained by the City and other public agencies, including the County of Los Angeles (“County”) and the Santa Clarita Valley Sanitation District of Los Angeles County (the “Sanitation District”). The boundaries of the CFD and each Improvement Area are illustrated on Exhibit A hereto; and

B. In connection with the CFD, the Developer applied to the Authority and the City for the financing of (i) certain public capital improvements as further described in Exhibit B hereto to be constructed by, or on behalf of, the Developer and owned, operated or maintained by the City (the “Acquisition Improvements”) and (ii) Bridge and Thoroughfare fees payable in conjunction with development within the CFD, net of applicable credits (the “ Financed Fees” and, with the Acquisition Improvements, the “Improvements”).

C. The City has conducted proceedings to annex all of the property in the CFD into the City. Such annexation will become effective _______________ (the “ Annexation Effective Date”). Upon the Annexation Effective Date, certain public capital improvements of the County identified in Exhibit B will also be deemed Acquisition Improvements of the City and shall be eligible for financing pursuant to this Agreement.

D. The CFD is authorized to levy Facilities Special Taxes and issue Bonds, in one or more series, within each Improvement Area to fund, among other things, all or a portion of the costs of the Improvements. Collectively, for all Improvement Areas, the portion of the proceeds of the Facilities Special Taxes (including prepayments) and Bonds allocable to the cost of the

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Improvements, together with interest earned thereon, is referred to herein as th e “ Available Amount.”

E. From the Available Amount, the CFD will provide financing for (i) the payment of the Acquisition Price (as defined herein) of the Acquisition Improvements and (ii) the advance payment or reimbursement of the Financed Fees. Attached hereto as Exhibit B is a description of the Acquisition Improvements that are eligible to be acquired from the Developer.

F. The parties anticipate that pursuant to this Agreement the Developer may be reimbursed for costs of the Acquisition Improvements and, subject to the terms and conditions of this Agreement, the City will acquire the completed Acquisition Improvements.

G. Any and all monetary obligations of the Authority arising out of this Agreement are the special and limited obligations of the A uthority payable only from the Available Amount, and no other funds whatsoever of the Authority or the City shall be obligated therefor under any circumstances.

H. In consideration of the formation of the CFD and the issuance of the Bonds, and the mutual covenants, undertakings and obligations set forth below, the City, the Authority and the Developer agree as stated below.

I. Attached to this Agreement are Exhibit A (Map of CFD Boundary), Exhibit B (Description of Acquisition Improvements), Exhibit C (Actual Cost Certificate), Exhibit D (Disbursement Request Form), and Exhibit E (Bidding, Contracting and Construction Requirements for Acquisition Improvements), all of which are incorporated into this Agreement for all purposes.

AGREEMENT

NOW, THEREFORE, in consideration of the faithful performance of the terms and conditions set forth in this Agreement, the parties hereto agree as follows:

1. Incorporation of Recitals . The foregoing Recitals are true and correct and are hereby incorporated into and form a material part of this Agreement.

2. Effect on Other Agreements . Nothing in this Agreement shall be construed as affecting the Developer’s or the City’s duty to perform their respective obligations under any other agreements (including the Development Documents defined below), land use regulations or subdivision requirements related to the Project, which obligations are and shall remain independent of the Developer’s and the City’s rights and obligations under this Agreement.

3. Definitions. As used herein, including the Recitals and all Exhibits, the following capitalized terms shall have the meanings ascribed to them below:

“Acceptable Title ” means free and clear of all monetary liens, encumb rances, assessments, whether any such item is recorded or unrecorded, and taxes, except (i) those items which are reasonably determined by the Director not to interfere with the intended use and therefore are not required to be cleared from the title and ( ii) the lien of the CFD or any other community facilities district or assessment district provided that the property owned by the City is exempt from such taxation or assessment.

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“Acquisition and Project Fund” means the “CMFA CFD _____ (_________) Acquisition and Project Fund” established and held by the Authority pursuant to the Resolution and Section

5.2 hereof for the purpose of paying the Acquisition Price of the Acquisition Improvements and the Financed Fees.

“Acquisition Improvement” means a public capital improvement, including an Eligible Portion thereof as described in Section 5.6 hereof, described in Exhibit B, as may be amended from time to time.

“Acquisition Price” means the total amount eligible to be paid to the Developer from the Available Amount upon acquisition of an Acquisition Improvement or Eligible Portion thereof, as provided in Sections 5.6 and 5.7, not to exceed the Actual Cost of the Acquisition Improvement.

“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5, of the Government Code of the State of California.

“Actual Cost” means the total paid cost of an Acquisition Improvement or Eligible Portion thereof, as documented by the Developer to the satisfaction of the Administrator in an Actual Cost Certificate including, without limitation, (a) the Developer’s cost of constructing such Acquisition Improvement or Eligible Portion thereof, including a portion of the grading costs in the amount attributable to Acquisition Improvements, as determined by the Administrator, labor, material and equipment costs, (b) the Developer’s cost of designing and engineering the Acquisition Improvement, preparing the plans and specifications and bid documents for such Acquisition Improvement, and the costs of inspection, materials testing and construction staking for such Acquisition Improvement, (c) the Developer’s cost of any performance, payment and maintenance bonds and insurance, including title insurance, required hereby for such Acquisition Improvement, (d) the Developer’s cost of environmental evaluation or mitigation required for such Acquisition Improvement to the extent approved by the City, (e) the amount of any fees, such as permit and plan processing fees relating directly to the Acquisition Improvement, and (f) the Developer’s construction management costs in an amount equal to 5% of the eligible hard construction cost, as determined by the Administrator.

“Actual Cost Certificate” means a certificate prepared by the Developer in substantially the form shown in Exhibit C detailing the Actual Cost of an Acquisition Improvement or Eligible Portion thereof, to be acquired hereunder, as may be revised by the Director pursuant to Section

5.6. “Administrator” means Francisco & Associates, Inc., as the acquisition consultant and auditor for the Authority.

“Agreement” means this Acquisition Agreement, dated as of ___________, 2022, by and among the City, the Authority, and the Developer.

“Authority” means the California Municipal Finance Authority.

“Authority Trust Agreement ” means a trust agreement, indenture or fiscal agent agreement entered into by the Authority and an Authority Trustee or Fiscal Agent in connection with the issuance of a series of Bonds on behalf of the CFD for an Improvement Area.

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“Authority Trustee” means the financial institution identified as trustee or fiscal agent in an Authority Trust Agreement.

“Available Amount” shall have the meaning assigned to the term in Recital D.

“Board of the Auth ority” means the Board of Directors of the California Municipal Finance Authority.

“Bonds” means bonds or other indebtedness issued in one or more series by the Authority that are to be repaid with Facilities Special Taxes levied in an Improvement Area.

“City” means the City of Santa Clarita, California.

“Code” means the Government Code of the State of California.

“City Resolution” means City Resolution No. ______, adopted _____, 20 22 titled “________________________”

“CFD” shall have the meaning assigned to the term in Recital A.

“Developer” means BLC Tesoro LLC, a Delaware limited liability company, and its successors and assigns.

“Development Documents” means, as applicable, one or more of the following: (i) an improvement agre ement between the Developer and the City concerning an Acquisition Improvement; (ii) improvement plans submitted by the Developer to the City concerning an Acquisition Improvement; (iii) a pre-annexation agreement between the City and Developer; or (iv) any other agreement with the County or City or condition of development concerning an Acquisition Improvement or Financed Fee.

“Director” means the Director of Public Works of the City or his/her designee or representative (which may include a third party person or entity providing services on behalf of the Director) who will be responsible for administering the acquisition of the Acquisiti on Improvements hereunder.

“Disbursement Request Form ” means a requisition for payment of funds from an Acquisition and Project Fund for an Acquisition Improvement or an Eligible Portion thereof or with respect to Financed Fees in substantially the form contained in Exhibit D.

“Eligible Portion” shall have the meaning ascribed to it in Section 5.6 below.

“Facilities Special Taxes ” means annual special taxes, and prepayments thereof, authorized by the CFD to be levied by the Board of the Authority within any Improvement Area to pay for the Improvements.

“Financed Fees ” means Bridge and Thoroughfare development impact fees imposed pursuant to City Ordinance No. ____, as it may be amended or superseded, net of applicable credits.

“Improvement Area ” means, as the context requires, Improvement Area No. 1 or Improvement Area No. 2.

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“Improvement Area No. 1” means Improvement Area No. 1 of the CFD.

“Improvement Area No. 2” means Improvement Area No. 2 of the CFD.

“Improvements” means the Acquisition Improvements and Financed Fees.

“Installment Payment” means an amount equal to ninety percent (90%) of the Acquisition Price of an Eligible Portion.

“Project” means the development of the property in the CFD or offsite improvements serving property in the CFD, including the design and construction of the Acquisition Improvements.

“Title Documents” means, for each Acquisition Improvement acquired hereunder, a grant deed or similar instrument necessary to transfer title to any real property or interests th erein (including easements), or an irrevocable offer of dedication of such real property with interests therein necessary to the operation, maintenance, rehabilitation and improvement by the City of the Acquisition Improvement (including, if necessary, easements for ingress and egress) and a bill of sale or similar instrument evidencing transfer of title to the Acquisition Improvement (other than said real property interests) to the City, where applicable.

4. Purpose; Effective Date.

4.1. Purpose. The purpose of this Agreement is to provide financing for the Acquisition Improvements and Financed Fees from the Available Amount for all Improvement Areas in the CFD.

4.2. Effective Date. The Effective Date of this Agreement shall be as set forth in the preamble above.

4.3. Acquisition Improvements. Notwithstanding anything to the contrary, the Acquisition Improvements and Financed Fees are authorized to be financed by Bonds and Facilities Special Taxes from each and every Improvement Area, and the Acqu isition Improvements may be located anywhere, regardless of the Improvement Area from which such Bonds and Facilities Special Taxes are derived.

5. CFD.

5.1. Establishment of CFD. Pursuant to the City Resolution, the City authorized the Authority to fo rm the CFD to finance the Improvements, subject to certain conditions being met. The CFD has been established by the Authority, and through the successful landowner election held in conformance with the Act, the Board of the Authority is authorized to levy the Facilities Special Taxes and to issue the Bonds to finance the Improvements. Developer, the City and the Authority agree to reasonably cooperate with one another in the completion of the financing through the issuance of the Bonds in one or more series for any Improvement Area.

5.2. Deposit and Use of Available Amount.

5.2.1. Acquisition and Project Fund Held by Authority

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CMFA shall establish two separate funds, accounts or subaccounts designated the City Services Project Fund and the Acquisition and Project Fund. Prior to the issuance of the first series of Bonds for an Improvement Area , Facilities Special Taxes collected by the Authority (including from prepayments of Facilities Special Taxes) shall be deposited in the Acquisition and Project Fund established by the Authority for that Improvement Area and may be disbursed to pay the Acquisition Price of Acquisition Improvemen ts or Eligible Portions thereof and to pay or reimburse Financed Fees in accordance with this Agreement. All funds in the Acquisition and Project Fund shall be considered a portion of the Available Amount, and upon the issuance of the first series of Bonds for such Improvement Area , the Acquisition and Project Fund shall be transferred to the Authority Trustee to be held in accordance with the Authority Trust Agreement.

5.2.2. Acquisition and Project Fund Held by Trustee
Upon the issuance of the first series of Bonds for an Improvement Area, the Authority will cause the Authority Trustee to establish and maintain a separate Acquisition and Project Fund for the purpose of holding all funds derived from that Improvement Area for the financing of Improvements. Separate subaccounts may be established for each issue of Bonds. All earnings on amounts in an Acquisition and Project Fund shall remain in such Acquisition and Project Fund for use as provided herein and pursuant to the applicable Authority Trust Agree ment. Money in each and every Acquisition and Project Fund shall be available to respond to delivery of a Disbursement Request Form and to be paid to the City or its designee or the Developer or its designee to pay the Acquisition Price of the Acquisition Improvements or Eligible Portion thereof to the extent the Acquisition Price has not previously been paid from Available Amount and to pay or reimburse Financed Fees. Upon completion of all of the Acquisition Improvements and the payment of all costs ther eof and the payment or reimbursement of all Financed Fees, any remaining funds in each Acquisition and Project Fund (less any amount determined by the City as necessary to reserve for claims against the account) that are not required to fund other CFD eligible items of the County or Sanitation District (i) shall be applied to pay the costs of any additional Acquisition Improvements eligible for acquisition and, to the extent not so used, (ii) shall be applied by the Authority to call Bonds or to reduce Faci lities Special Taxes as the Authority shall determine.

5.3. Letting and Administering Design Contracts. The Developer has awarded and administered, or will award and administer, engineering design contracts for the Acquisition Improvements. All eligible expenditures for design engineering and related costs in connection with the Acquisition Improvements shall be reimbursed upon a request for payment made pursuant to Section 5.6 hereof, as reviewed and approved by the Director. Requests for reimbursement f or solely design engineering and related costs prior to construction of an Acquisition Improvement shall not exceed 10% of the estimated construction costs of said Acquisition Improvement, as reviewed and approved by the Director. Requests received in excess of 10% of the estimated construction costs of said Acquisition Improvement shall include justification and related documentation for review, with determination of costs in excess of 10% to be made by the Director based on the extent to which hard improvements have been completed or are reasonably expected to be completed. Such r eimbursement may also include certain indirect costs of the Developer related to establishment of the CFD and the design and construction of the Acquisition Improvements; provided that the Administrator shall determine the amount to be so reimbursed on the basis of detailed itemizations of costs provided by Developer and the decision of the Administrator shall be final.

Where a specific contract has been awarded for design or engineering work relating solely to an Acquisition Improvement or Acquisition Improvements, one hundred percent (100%) of the costs under the contract will be allocated to that Acquisition Improvement.

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Where a specific contract has been awarded for design or engineering work relating to an Acquisition Improvement and private improvements, the eligible percentage allocated to the Acquisition Improvement shall be determined by the Administrator, for review and approval by the Director in his/her sole discretion.

5.4. Letting and Administering Construction Contracts: Prevailing Wages. State law requires that all Acquisition Improvements for which an Actual Cost Certificate is submitted pursuant to this Agreement that were not completed prior to the formation of the CFD shall be constructed as if they were constructed under the direction and supervision, or under the authority, of the City. In order to assure compliance with those provisions, except for any contracts entered into prior to the date hereof, Developer agrees to comply with the requirements set forth in Exhibit E, with respect to the bidding and contracting for the construction of the Acquisition Improvements being constructed by the Developer for which a Request for Payment is submitted pursuant to this Agreement, included, but not limited to, California Labor Code Section 1771, et seq. (“Labor Code Regulations”). Developer agrees and acknowledges that the construction of such Acquisition Improvements is subject to the payment of prevailing wages and agrees to comply with the requirements of the Labor Code. Further, Developer agrees to defend, indemnify and hold the Authority and the City, its elected officials, officers, employees, and agents free and harmless from any and all claims, damages, suits o r actions arising out of or incident to Developer’s obligations under this section. Developer agrees to satisfy, to the extent applicable, its obligation of registering with the Department of Industrial Relations and furnishing electronic certified payroll records to the Labor Commissioner pursuant to Senate Bill 854 (2014). The Developer’s indemnification obligation set forth in Section 6.1 of this Agreement shall also apply to any alleged failure to comply with the requirements of this Section, and/or applicable State laws regarding public contracting and prevailing wages.

5.5. Estimated Cost of Acquisition Improvements and Financed Fees . The estimated cost of the Acquisition Improvements are shown in Exhibit B attached hereto.

Notwithstanding this estimate, Developer and the City hereby acknowledge and agree that (a) the actual costs to complete the Acquisition Improvements may vary from this estimate, and (b) the Acquisition Price shall never exceed the Actual Cost of any Acquisition Improvement.

The estimated cost of the Finance Fees are shown in Exhibit B attached hereto. The amount of Financed Fees that may be paid from the Available Amount shall be the cumulative total of the Financed Fees obligation for the Project less the amount of credits gra nted for the Copper Hill Bridge Widening. Notwithstanding this estimate, Developer and the City hereby acknowledge and agree that (a) the actual B&T Fee obligation or the amount of the credit for the Cooper Hill Bridge Widening may vary from this estimate, and (b) any amount of the B&T Fee obligation not financed as part of the Financed Fees or the B&T credit, shall be the responsibility of the Developer.

5.6. Sale of Acquisition Improvements. The Developer agrees to convey to the City each Acquisition Improvement to be constructed by Developer (including any rights -of-way or other easements necessary for the Acquisition Improvements, to the extent not already publicly owned), when the Acquisition Improvement is completed to the satisfaction of the City. Exhibit B, attached hereto and incorporated herein, contains a list of the Acquisition Improvements. Under no circumstances shall the City have the obligation to accept a completed Acquisition Improvement consisting of a street until the underlying or rel ated sewer and storm drainage improvements have been completed and approved for maintenance by the Los Angeles County Sewer Maintenance District or Los Angeles County Flood Control District, as applicable.

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At the time of full completion of each Acquisition Improvement, the Developer shall deliver to the Director Title Documents required by the City for the transfer of the Acquisition Improvement where necessary, and record plans (if record plans are not available the Developer shall submit constructed quantities that are verified and stamped by a civil engineer licensed in the State of California).

Request for Payment . F ollowing commencement of construction of any Acquisition Improvement, and each 30 days thereafter, or such other dates as are mutually agreeable to the City, the Administrator and Developer, Developer will submit to the Administrator and the City an Actual Cost Certificate in the form attached hereto as Exhibit C for the portion or phase of Acquisition Improvements previously constructed (the “Eligible Portion”), which shall constitute a written request for payment (the “Request for Payment”) of the Acquisition Price (as determined below) for the Eligible Portion, except that for any Acquisition Improve ment having a total estimated finished cost of less than $1,000,000, no portion of the cost thereof shall be an Eligible Portion (i.e., no periodic progress payments shall be made and acquisition shall only occur upon completion). The Actual Cost Certifica te shall include such necessary information (including invoices, receipts, worksheets and other evidence of cost as required by the Administrator ) in sufficient detail to allow the Administrator to verify the Acquisition Price of such Eligible Portion.

Determination of Acquisition Price/ City Inspection. Upon submittal of a complete (as reasonably determined by Administrator) Actual Cost Certificate , the Administrator shall determine the Acquisition Price (or in the case of a reimbursement, the reimburseme nt amount, which hereinafter is included in the term “Acquisition Price”) to be paid for the acquisition from Developer of the Eligible P ortion constructed by Developer during said prior period. The Acquisition Price for the Eligible Portion shall include the actual cost of construction (or payment) thereof as determined by the contract prices as set forth in contracts and purchase orders entered into by Developer with its contractors, and suppliers, in accordance with standards and procedures therefore as prescribed by the Administrator. At the time of submittal of each Actual Cost Certificate, the Developer shall pay to the City $3,500 as a processing fee, which fee may be included as an Actual Cost.

The Administrator shall have thirty (30) days from receipt of an Actual Cost Certificate to review and determine the Acquisition Price.

Further, Developer may submit an Actual Cost Certificate in advance of issuance of the Bonds; however, no payment of the Acquisition Price shall be made prior to issuance of the Bonds unless funds are available in the Acquisition and Project Fund from the collection of Facilities Special Taxes.

The Developer shall not submit more than one (1) Actual Cost Certificate every 30 days.

Upon determination of the Acquisition Price, the Administrator shall promptly notify Developer in writing of such Acquisition Price. In the event that the Administrator, during such time period, finds that the supporting paperwork submitted by the Developer fails to demonstrate the required relationship between the subject Actual Cost and eligible work, the Administrator shall advise the Developer that the determination of the Actual Cost (or the ineligible portion thereof) has been disallowed and shall request further documentation from the Deve loper. Once the Developer delivers the further documentation, the Administrator shall have twenty (20) days to review the additional documentation. If the further documentation is still not adequate, the Administrator shall notify the Developer in writing within such twenty -day period and may revise the Actual Cost Certificate to delete any disallowed items and the determination shall be final and conclusive. If

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only a portion of the Actual Cost requires further documentation, the Administrator shall includ e the Actual Costs that do not require further documentation in the determination of the Acquisition Price.

Upon determination of the Acquisition Price, the Administrator shall prepare a Disbursement Request Form as shown in Exhibit D for review and approval by the Director. The Director shall finalize and approve the Disbursement Request Form within thirty (30) days after determination of the Acquisition Price.

Conditions Precedent to Payment of Acquisition Price/ City Inspection. Payment to the Developer or its designee of the Acquisition Price for an Acquisition Improvement or Eligible Portion from an Acquisition and Project Fund shall in every case be conditioned first upon the determination of the Administrator that the Acquisition Improvement, or Eligible Portion to be paid for, satisfies all City regulations and ordinances and is otherwise constructed in accordance with Section 5.4 above and, if payments include a final amount of the Acquisition Price of a particular Acquisition Improvement, and if the Acquisition Improvement is completed (i.e., not just an Eligible Portion) such improvement is ready for acceptance by the City, and shall be further conditioned upon satisfaction of the following additional conditions precedent if requested by the Administrator or the City:

(a) The Developer shall have provided the City with the lien releases or other similar documentation satisfactory to the Director as evidence that none of the property (including any rights-of-way or other easements necessary for the operation and maintenance of the Acquisition Improvement, to the extent not already publicly owned) comprising the Acquisition Improvement, and the property which is subject to the Facilities Special Taxes of the CFD, is subject to any prospective mechanics lien claim respecting the Acquisition Improvements.

(b) The Developer shall be current in the payment of all due and payable general property taxes, and all Facilities Special Taxes of the CFD, on property owned by the Developer or under option to the Developer within the CFD.

(c) The Developer shall have provided the City with Title Documents needed to provide the City with title to the site, right-of-way, or easement upon which the subject Acquisition Improvement is situated. All such Title Documen ts shall be in a form acceptable to the City and shall convey Acceptable Title. The Developer shall provide a policy of title insurance as of the date of transfer in a form acceptable to the Director and the City Counsel insuring the City as to the interests acquired in connection with the acquisition of any interest for which such a policy of title insurance is not required by another agreement between the City and the Developer. Each title insurance policy required hereunder shall be in the amount equal t o the Acquisition Price.

The amount paid to the Developer or its designee upon satisfaction of the foregoing conditions precedent shall be the Acquisition Price less all Installment Payments paid previously with respect to the Acquisition Improvement.

5.7. Payment of Acquisition Price . Within thirty (30) days after receipt of a complete Disbursement Request Form , the Authority, through the Trustee , shall authorize payment for the Eligible Portion from the Available Amount the Acquisition Price then due to Developer. If the Payment Request indicates that Developer is withholding from its contractor a retention of a least ten percent (10%) of the contract price for the portion of the constructed Acquisition Improvement , then the full amount of the approved A cquisition Price shall be authorized for payment to Developer; if the Payment Request does not indicate the withholding by Developer of such ten percent (10%) retention, then the amount to be paid to Developer shall

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be equal to the Acquisition Price, less a retention of ten percent (10%) of the contract price for the Eligible Portion. Upon completion of such Acquisition Improvement in its entirety, including all “Punch List” work, and acceptance of the Acquisition Improvement by the City, the Authority, through the Trustee, shall authorize and shall pay from the Available Amount the balance of the Acquisition Price then due Developer for such Acquisition Improvement , including any 10% progress retention then paid by Developer or any 10% retentions previously retained by Authority with respect thereto.

Payments to Developer shall be payable solely from the Available Amount. The amount to be paid to Developer shall be a reimbursement for actual costs incurred as determined by the Administrator in accordance wi th this Agreement and shall not exceed the Developer ’s cost thereof as reasonably determined by the Administrator in consultation with the City to be eligible under the Act to be part of the Acquisition Price of Acquisition Improvement. All portions of the Acquisition Improvement not acquired with the Available Amount shall nonetheless be constructed by the Developer, to the extent required by the project approvals. In the event the Available Amount is insufficient to pay the eligible Acq uisition Price, any shortfall shall be the responsibility of the Developer, however Developer may request that all or any portion of such shortfall be reimbursed from additional series of Bonds for the CFD if and when such additional Bonds are issued or additional Facilities Special Tax proceeds are available , and in such event the deferred amount will be eligible for reimbursemen t from proceeds of such future B onds or Facilities Special Tax proceeds, to the extent funds are available.

5.8. Disbursement Request Form. Upon a determination by the Administrator to pay the Acquisition Price of an Acquisition Improvement or to pay an Installment Payment for an Eligible Portion as provided in Sections 5.6 – 5.7 hereof, the Director shall, within thirty (30) days after such determination, cause a Disbursement Request Form substantially in the form attached hereto as Exhibit D to be submitted to the Authority Trustee, and the Authority Trustee shall make payment directly to the City or its designee or the Develope r or its designee, as appropriate, of the amount pursuant to the applicable Authority Trust Agreement. The Authority, the City and the Developer acknowledge and agree that the Authority Trustee shall make payment strictly in accordance with the Disbursement Request Form and shall not be required to determine whether or not the Acquisition Improvement or Eligible Portion has been completed or what the Acquisition Price may be with respect to the Acquisition Improvement or Eligible Portion. The Authority Trustee shall be entitled to rely on the executed Disbursement Request Form on its face without any further duty of investigation. In the event that the Acquisition Price of an Acquisition Improvement or the Installment Payment for an Eligible Portion is in ex cess of the Available Amount, the Authority Trustee shall withdraw all funds remaining in the applicable Acquisition and Project Fund and shall transfer those amounts to the Developer or the City, as applicable, or its designee. The unpaid portion of the A cquisition Price shall be paid from funds that may subsequently be deposited in the same or another Acquisition and Project Fund from a subsequent issuance of Bonds, from prepayments of Facilities Special Taxes to be used for construction or acquisition of Acquisition Improvements, or from Facilities Special Tax revenues, if any of those occurs. The Acquisition Price of an Acquisition Improvement may be paid from the Acquisition and Project Fund for each or both Improvement Areas, provided that the total payment for an Acquisition Improvement shall not exceed its Acquisition Price.

5.9. Limitation on Obligations. In no event shall the Authority be required to pay the Developer or its designee more than the Available Amount (available from time to time).

5.10. Audit. The City and the Authority shall have the right, during normal business hours and upon the giving of ten days’ written notice to the Developer, to review all

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books and records of the Developer pertaining to costs and expenses incurred by the Developer (for which the Developer seeks reimbursement pursuant to this Agreement) in constructing the Acquisition Improvements.

5.11 Financed Fees . Financed Fees may be financed from the Available Amount. For Financed Fees that have not already been paid for any portion of the Project, Financed Fees may be prepaid from the Available Amount and the Developer shall be considered to have paid such Financed Fees on the date of such prepayment. Financed Fees paid by the Developer or a merchant builder to the C ity or County prior to the availability of the Available Amount shall be reimbursed to the Developer from the Available Amount (as and when available), subject to any applicable provisions of the Internal Revenue Code required to maintain the tax - exempt status of any Bonds. Notwithstanding, to the extent the City or County, at the time of issuance of the Bonds, is unable to provide the certifications or information required by bond counsel to the Authority in order for the Financed Fees to be financed with the proceeds of tax-exempt Bonds, the Authority agrees to issue a series of taxable Bonds to finance such Financed Fees upon the request of the Developer. The City may request disbursement of any Financed Fees funded with the Available Amount in accordance with the provisions of an Authority Indenture by submitting a Disbursement Request to the Authority Trustee in substantially the form attached hereto as Exhibit D pertaining to a Financed Fees disbursement and the Authority Trustee shall make payment directly to the City Treasurer or the City’s designee.

6. Indemnity and Insurance.

6.1. Indemnification. Developer agrees to indemnify, defend and hold the City and Authority, including elective and appointed boards, commissions, officers, agents, employees and consultants (each an “ Indemnified Party ” and collectively the “ Indemnified Parties”), harmless from and against any and all claims, liabilities, losses, damages or injuries of any kind (collectively, “ Claims”) arising out of Developer’s, or Deve loper’s contractors’, subcontractors’, agents’ or employees’, acts, omissions, or operations under this Agreement, including, but not limited to, the construction by the Developer of any Acquisition Improvement, whether such acts, omissions, or operations are by Developer or any of Developer’s contractors, subcontractors, agents or employees, except to the extent such Claims are caused by the sole negligence or willful misconduct of an Indemnified Party. This indemnification includes, without limitation, the payment of all penalties, fines, judgments, awards, decrees, attorneys’ fees, and related costs or expenses, and the reimbursement of City and Authority, its elected officials, officers, employees, and/or agents for all legal expenses and costs incurred by each of them.

Developer shall defend the City as required by California Civil Code Section 2778, and with counsel reasonably acceptable to the City and Authority. Developer shall have no right to seek reimbursement from City or Authority for the costs of defense.

The aforementioned indemnity shall apply regardless of whether or not City has approved plans and/or specifications for the Acquisition Improvements and regardless of whether any insurance, workers compensation, disability or other employee ben efit acts or terms required under this Agreement are applicable to any Claims. The City does not and shall not waive any of its rights under this indemnity provision because of its acceptance of the bonds or insurance required under the provisions of this Agreement. Developer’s obligations to indemnify the City and Authority shall survive the expiration or termination of this Agreement. Developer agrees to obtain executed indemnity agreements in favor of the City with provisions identical to those set forth here in this section from each and every construction contractor involved by, for, with or on behalf of Developer in the performance of this Agreement. In the event Developer fails to obtain such indemnity obligations from others as required here, Developer agrees to be fully responsible

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according to the terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder.

6.2. Insurance. For an Acquisition Improvement, Developer shall maintain insurance in amount and substance as required by the City under any Development Documents applicable to such Acquisition Improvement.

7. Breach of Agreement; Opportunity to Cure; Remedies.

7.1. Notice of Breach and Default . The occurrence of any of the following constitutes a breach and default of this Agreement:

(1) Developer refuses or fails to complete any Acquisition Improvement within the time set forth in the applicable Development Documents or abandons the construction of an Acquisition Improvement.

(2) Developer assigns the Agreement to an unaffiliated entity without the prior written consent of City.

(3) Developer is adjudged bankrupt or makes a general assignment for the benefit of creditors, or a receiver is appointed in the event of Developer’s insolvency.

(4) Developer or Developer’s contractors, subcontractors, agents or employees, fail to comply with any terms or conditions of this Agreement to which the Developer or Developer’s contractors, subcontractors, agents, or employees are subject.

(5) Developer fails to perform any obligation under this Agreement. The City must serve written notice of breach and default upon Developer (and any surety that has provided bonds with respect to an Acquisition Improvement). Developer shall have 30 days to cure the breach and default described in the written notice of breach and default.

(6) City fails to perform any obligation under this Agreement. Developer must serve written notice of breach and default upon the City. The City shall have 30 days to cure the breach and default described in the written notice of breach and default.

7.2. Breach of Agreement; Performance by City. If the City gives Developer notice under Section 7.1 and De veloper fails to cure the breach and default described in the written notice prior to the expiration of the applicable cure period, a “Developer Event of Default” shall be deemed to have occurred. In the event of the occurrence and continuation of a Developer Event of Default, the City may exercise the remedies described in Section 7.1 and in Section 7.3 below, including the right of the City to proceed to complete the Acquisition Improvement by contract or other method the City considers advisable, at the sole expense of Developer, however City is under no financial or performance obligation to complete the Acquisition Improvement.

Where funds are currently available from the collection of Facilities Special Taxes said funds shall be used first for completi on of the Acquisition Improvements in the event that the City elects to complete the Acquisition Improvement. In the event of the occurrence and continuance of a Developer Event of Default, (i) Developer, immediately upon demand, shall pay the costs and charges related to the Acquisition Improvement and any subsequent repairs, provided, upon such payment, Developer shall be entitled to payment for the Acquisition Improvement from the Available Amount, (ii) City, without liability for doing so, may take poss ession of and utilize in

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completing the Acquisition Improvement and repairs, if any, such materials and other property belonging to Developer as may be on or about the Property and necessary for completion of the Acquisition Improvement, and (iii) the City may draw upon any surety bonds required by the applicable Development Documents.

If the Developer gives the City notice under Section 7.1(6) and City fails to cure the breach and default described in the written notice prior to the expiration of the app licable cure period, a “City Event of Default” shall be deemed to have occurred.

7.3. Remedies. It is acknowledged by the parties that the City would not have entered into this Agreement if it were to be liable in damages under or with respect to this Agreement or the application thereof, other than for the payment to the Developer of any (i) moneys owing to the Developer hereunder, or (ii) moneys paid by the Developer pursuant to the provisions hereof which are misappropriated or improperly obtained, wit hheld or applied by the City.

In general, upon the occurrence and continuation of a Developer Event of Default or a City Event of Default, the applicable party may pursue any remedy at law or equity available for the breach of any provision of this Agreement, except that the City shall not be liable in damages to the Developer or to any assignee or transferee of the Developer other than for the payments to the Developer specified in the preceding paragraph. Subject to the foregoing, the Developer covenants not to sue for or claim any damages for any alleged breach of, or dispute which arises out of, this Agreement.

8. Miscellaneous.

8.1. Compliance with Laws. Developer shall fully comply with all federal, state, and local laws, ordinances, and regulation s in the performance of this Agreement. Developer shall, at its own cost and expense, obtain all necessary permits and licenses for each Acquisition Improvement, give all necessary notices, pay all fees and taxes required by law and make any and all deposits legally required by those public utilities that will serve the development on the Project. Copies and/or proof of payment of said permits, licenses, notices, fee and tax payments and deposits shall be furnished to the Director upon request.

8.2. Cooperation. The City, the Authority and the Developer agree to cooperate with respect to the completion of the financing of the Improvements by the Authority through the levy of the Facilities Special Taxes and issuance of Bonds. The City, the Authority, and t he Developer agree to meet in good faith to resolve any differences on future matters which are not specifically covered by this Agreement.

8.3. General Standard of Reasonableness . Any provision of this Agreement which requires the consent, approval or acceptance of either party hereto or any of their respective employees, officers or agents shall be deemed to require that the consent, approval or acceptance not be unreasonably withheld or delayed, unless the provision expressly incorporates a different standard. The foregoing provision shall not apply to provisions in the Agreement which provide for decisions to be in the sole discretion of the party making the decision.

8.4. Notices. Formal written notices, demands, correspondence and communications be tween City and Developer shall be sufficiently given if: (a) personally delivered; or (b) dispatched by next day delivery by a reputable carrier such as Federal Express to the offices of City and Developer indicated below, provided that a receipt for deliv ery is

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provided; or (c) if dispatched by first class mail, postage prepaid, to the offices of City and Developer indicated below. Such written notices, demands, correspondence and communications may be sent in the same manner to such persons and addresses as either party may from time- to-time designate by next day delivery or by mail as provided in this section.

City: City of Santa Clarita
Attn: Director of Administrative Services
23920 Valencia Boulevard
Santa Clarita, CA 91355
Email: [email protected]

Authority: California Municipal Finance Authority
2111 Palomar Airport Road, Suite 320
Carlsbad, CA 92011
Attn: Edward J. Becker

Administrator: Francisco & Associates, Inc.

Attn: Ed Espinoza
5927 Balfour Court, Suite 109
Carlsbad, CA 92008

Developer: BLC Tesoro LLC
100 Bayview Circle, Suite 240
Newport Beach, CA 92660
Attn: John Patterson

With a copy to: O’Neil LLP
Attn: John P. Yeager
19900 MacArthur Blvd., Suite 1050
Irvine, CA 92612

Norton Rose Fulbright LLP
Attn: Maryann Goodkind
555 South Flower Street, 41st Floor
Los Angeles, CA 90071
Facsimile No. (213) 892-9328

Notices delivered by deposit in the United States mail as provided above shall be deemed to have been served two (2) business days after the date of deposit if addressed to an address within the State of California, and three (3) business days if addressed to an address within the United States but outside the State of California.

8.5. Attorney Fees. Should any legal action or arbitration be brought by either party because of breach of this Agreement or to enforce any provision of this Agreement, the prevailing party shall be entitled to all costs of suit; reasonable attorney fees, arbitration costs and such other costs as may be determined by the court or arbitrator.

8.6. Entire Agreement. The terms and conditions of this Agreement constitute the entire agreement among Authority, City, and Developer with respect to the matters addressed in this Agreement. This Agreement may not be altered, amended or modified without the written consent of all parties hereto.

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8.7. Conflict with Other Agreements . Nothing contained herein shall be construed as releasing the Developer from any condition of development or requirement imposed by any other agreement between the City and the Developer or any Member of Developer.

8.8. Several Obligations. The Developer, by executing this Agreement in the space provided below, agrees that it shall be severally responsible for all obligations of the Developer under Sections 5.4 and 6.1 hereof to the extent of the percentages set forth adjacent to their respective signatures.

8.9. Assignment. The obligations and rights of the parties to this Agreement shall be binding upo n and inure to the benefit of the parties hereto and their respective successors, but, those rights and obligations shall not be assignable, transferable or delegable, without the written consent of the other parties hereto, such consent to not be unreason ably withheld, and any attempted assignment, transfer or delegation thereof which is not made pursuant to the terms hereof shall be void. Any assignment shall be contingent on Developer providing a written assignment and assumption agreement to City and Authority immediately upon such assignment.

8.10. Time is of the Essence . Time is of the essence of this Agreement and of each and every term and condition hereof.

8.11. Severability. If any provision of this Agreement is held, to any extent, invalid, the remainder of this Agreement shall not be affected, except as necessarily required by the invalid provision, and shall remain in full force and effect.

8.12. Waiver or Modification. Any waiver or modification of the provisions of this Agreement must be in writing and signed by the authorized representative(s) of each party.

Failure by a parity to insist upon the strict performance of any of the provisions of this Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of the party’s right to insist upon and demand strict compliance by the other party with the terms of this Agreement.

8.13. Relationship of the Parties. Neither Developer nor the Authority nor either’s contractors, subcontractors, agents, officers, or employees are agents, partners, joint ventures or employees of City and the Developer’s relationship to the City, if any, arising h erefrom is strictly that of an independent contractor. Developer’s contractors and subcontractors are exclusively and solely under the control and dominion of Developer. Further, there are no intended third-party beneficiaries of any right or obligation assumed by the parties.

8.14. Binding upon Heirs, Successors and Assigns . The terms, covenants and conditions of this Agreement shall be binding upon all heirs, successors and permitted assigns of the parties hereto; provided, however, that this Agreement shall not be binding upon a purchaser or transferee of any portion of the Property unless this Agreement has been assigned and assumed pursuant to Section 8.9, in which event this Agreement shall remain binding upon purchaser or transferee.

8.15. Governing Law; Venue. This Agreement shall be construed and enforced in accordance with the laws of the State of California, without reference to choice of law provisions. Any legal actions under this Agreement shall be brought only in the Superior Court of the County of Los Angeles, State of California.

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

8.17. Interpretation. This Agreement shall be construed according to its fair meaning, and not strictly for or against any party. No presumptions or rules of interpretation based upon the identity of the party preparing or drafting the Agreement, or any part thereof, shall apply to the interpretation of this Agreement.

8.18. Headings. Section headings in this Agreement are for convenience only and are not intended to be used in interpreting or construing the terms, covenants or conditions contained in this Agreement.

8.19. Authority. Each party executing this Agreement on behalf of a party represents and warrants that such person is duly and validly authorized to do so on behalf of the entity it purports to bind and if such party is a partnership, corporation or trustee, that such partnership, corporation or trustee has full right and authority to enter into this Agreement and perform all of its obligations hereunder.

8.20. Singular and Plural; Gender . As used herein, the singular of any word includes the plural, and terms in the masculine gender shall include the feminine

8.21. Sole Agreement. This Agreement, including all exhibits hereto, constitutes the sole agreement of the parties and supersedes all oral negotiations and prior writings with respect to the subject matter hereof.

[Signature Page Follows]

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IN WITNESS WHEREOF, City, Authority, and Developer have executed this Agreement as of the Effective Date.

“CITY”

CITY OF SANTA CLARITA, a political
subdivision of the State of California

By:

City Manager

ATTEST:

City Clerk

“DEVELOPER”

BLC TESORO LLC, a Delaware limited
liability company

By:

Its:

By:

Its:

“AUTHORITY”

CALIFORNIA MUNICIPAL FINANCE
AUTHORITY, a joint powers authority

By:

Name:

Title: Authorized Signatory

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EXHIBIT A TO ACQUISITION FUNDING AGREEMENT

MAP OF THE CFD BOUNDARY

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EXHIBIT B ACQUISITION FUNDING AGREEMENT

DESCRIPTION OF ACQUISITION IMPROVEMENTS AND FINANCED FEES

Unless specifically excluded in the Agreement, the list of eligible facilities and estimated costs consist of the following and are depicted in the maps attached hereto:

I. Acquisition Improvements1

Extension of Avenida Rancho Tesoro (“A” Street) (subject to annexation) (est. cost $4,500,000)

II. Financed Fees

The B&T Fees shall include the Bridge and Thoroughfare development impact fees imposed and collected through the Bridge and Major Thoroughfare Fee District, as it may be amended or superseded, net of applicable credits.

Estimated B&T Fees-455 SFD Units x $26,800 = $12,194,000 365 Senior Units x $10,720 = $3,912,800
Total Estimated B&T Fees= $16 ,106,800
less the credit for the Copper Hill Bridge ($4,884,500) estimated net reimbursement of B&T Fees = $11,222,300

III. Administrative and Incidental Expenses
In addition to the above facilities, other incidental expenses that may be financed by the CFD include but are not limited to the following: the cost of pla nning, permitting, approving and designing the authorized facilities (including the cost of environmental evaluation, orthophotography, environmental remediation/mitigation); land acquisition and easement payments for authorized facilities; project management, construction staking; engineering studies and preparation engineer's reports (if required); utility relocation and demolition costs incidental to the construction of the public facilities; and any other expenses incidental to the construction, completion, and inspection of the facilities and related expenses associated with any of the foregoing.

In addition, the CFD shall fund the direct and indirect expenses incurred by the City in carrying out its duties with respect to the CFD including reimbursement of costs related to the formation of the CFD as well as reimbursement of any costs advanced by the City.

1 The description of each Acquisition Improvement is general in nature. The scope and final description of each Acquisition Improvement shall be based upon the plans for it approved by the City or County, as necessary to serve the development within the CFD.

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EXHIBIT C ACQUISITION FUNDING AGREEMENT

ACTUAL COST CERTIFICATE

Pursuant to the Funding Acquisition Agreement, dated as of __________, 2 022 (the “Acquisition Agreement”), by and between BLC Tesoro LLC, a Delaware limited liability company (the “Developer”), the California Municipal Finance Authority (“Authority”), and the City of Santa Clarita, California (“City”), the Developer hereby requests (a) payment of the Acquisition Price of the Acquisition Improvements or Eligible Portion thereof, described in Attachment 1 hereto .

Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Acquisition Agreement.

In connection with this Actual Cost Certificate the undersigned hereby represents and warrants to the City as follows:

1. The undersigned is an authorized representative of the Developer, qualified to execute this certificate on behalf of the Developer and knowledgeable as to the matters set forth herein.

2. The Developer has submitted or submits herewith to the Director and the Administrator Record Drawings or in the case of an Eligible Portion, commits to submit Record Drawings at the completion of construction and acceptance by the City of the Acquisition Improvements, for each of the Acquisition Improvements described in Attachment 1, and such drawings, as applicable, are true, correct and complete representations of the Acquisition Improvements listed in Attachment 1.

3. Each of the Acquisition Improvements or Eligible Portion thereof described in Attachment 1 has been constructed in accordance with the approved improvement plans (the “Plans”), and in accordance with all applicable City standards and the requirements of the Acquisition Agreement, and the Plans, and none of the Acquisition Improvements described in Attachment 1 or Eligible Portion thereof has been the subject of any prior Payment Request.

4. The true and correct Actual Cost of each of the Acquisition Improvements and/or Eligible Portion is set forth in Attachment 1 hereto.

5. The Developer has submitted or submits herewith to the Director and the Administrator a copy of each construction contract for each of the Acquisition Improvements described in Attachment 1, a copy of the bid notice for each such contract, a copy of each change order applicable to each such contract, all change orders having been approved by the Director, or his designee, and construction quantities certified by the engineer of record.

6. The Developer has submitted or submits herewith to the Director and the Administrator invoices, receipts, worksheets and other evidence of costs for each of the Acquisition Improvements described in Attachment 1 or Eligible Portion thereof , which are in sufficient detail to allow the Director and Administrator to verify the A ctual Cost of such Acquisition Improvements or Eligible Portion thereof.

7. The Developer has submitted or submits herewith to the Director and the Administrator evidence that each of the invoices, receipts, worksheets and other evidence of

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costs referred to in the preceding paragraph, has been paid in full, which evidence is in the form of copies of cancelled checks or such other form as the Administrator has approved in writing.

8. There has not been filed with or served upon the Developer notice of any lien, right to lien or attachment upon, or claim affecting the right to receive, the payment of the Acquisition Price for each of the Acquisition Improvement described in Attachment 1 or Eligible Portion thereof which has not been released or will not be released simultaneously with the payment of such obligation, other than materialmen’s or mechanics’ liens accruing by operation of law.

9. The Developer has submitted or submits herewith to the Director and the Administrator copies of unconditional or conditional (providing for release upon payment) lien releases from the General Contractor for all work with respect to each Eligible Portion of the Acquisition Improvements described in Attachment 1. In the case of a Payment Request for a completed Acquisition Improvement including the release of prior held retention for Eligible Portions thereof, the Developer submits herewith to the Director and the Administrator copies of unconditional or conditional (providing for release upon payment) lien releases from all contractors, subcontractors and materialmen in addition to a recorded Notice of Completion for said Acquisition Improvement,

10. The representations and warranties of the Developer set forth in the Acquisition Agreement are true and correct on and as of the date hereof with the same force and effect as if made on and as of the date hereof.

11. The Developer represents that it has satisfied the conditions specified in the Acquisition Agreement for the payment of the Acquisition Price.

I hereby declare under penalty of perjury that the above representations and warranties are true and correct.

________________
a ________________________

By:________________________________

Name: _____________________________

Title:_______________________________

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ATTACHMENT 1

Acquisition Improvement (or
Eligible Portion thereof)

Actual
Cost
[Insert detailed description of
Acquisition Improvement to be
acquired]

Total

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EXHIBIT D ACQUISITION FUNDING AGREEMENT

DISBURSEMENT REQUEST FORM

To: _______________
Attention: _____________
Fax: _____________
Phone: _____________
E-mail: _____________

Re: CMFA CFD No. ________ (________)

The undersigned, a duly authorized officer of the CITY OF SANTA CLARIT A (the “City”) hereby requests a withdrawal from the CFD Acquisition and Project Fund for Improvement Area No. _, as follows:

Request Date: [Insert Date of Request]

Name of Developer:

Withdrawal Amount: [Insert Acquisition Price/Installment Payment/Amount for Financed Fees]

Acquisition Improvements and/or Financed Fees
: [Insert Description of Acquisition
Improvement(s)/Eligible Portion(s)/Financed Fees]

Payment Instructions: [Insert Wire Instructions or Payment Address for Developer or Developer’s designee as
provided by the Developer] [In the event of a direct payment of Financed Fees to the City, insert City Wire Instructions]

The undersigned hereby certifies as follows:

The Withdrawal is being made in accordance with a permitted use of the monies pursuant to the Acquisition Agreement and the Withdrawal is not being made for the purpose of reinvestment.

None of the items for which payment is requested have been reimbursed previously from this or any other Acquisition and Project Fund.

If the Withdrawal Amount is greater than the funds held in the Acquisition and Project Fund, the Authority Trustee is authorized to pay the amount of such funds and to pay remaining amount(s) as funds are subsequently deposited in the Acquisition and Project Fund, should that occur.

[For Financed Fees to be reimbursed to the Developer that are financed with tax-exempt Bonds: The Financed Fees referenced above have been spent by the City or will be spent within

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three years of the issuance of the Bonds fo r a permitted use of the listed fees for public capital improvements as of the date hereof.]

[For Financed Fees funded by tax-exempt Bonds: The amounts to be disbursed hereunder have been or will be spent by the City for public capital improvements as o f the date hereof or within three years hereafter.]

[For Acquisition Improvements: The amounts being disbursed pursuant to this request are being used to finance or refin ance certain public infrastructure and facilities (the “Acquisition Improvements”). The City will own, and for the entire useful life of such Acquisition Improvements reasonably expects to own, all such Acquisition Improvements, except those facilities identified in Government Code Section 53313.5(e). To the extent any of such Acquisition Improvements are sold to an entity that is not a state or local government agency, the City will seek the advice and approval of bond counsel to the Authority prior to any such sale. The City will not allow any of such Acquisition Improvements to be used (for example, by lease or other contract) in the trade or business of any nongovernmental persons (other than in their roles as members of the general public) except as permitted pursuant to Government Code Section 53313.5(e). All such Acquisition Improvements will be used in the performance of essential governmental functions of the City or another state or local government agency. The average expected useful life of such Acquisition Improvements is at least 20 years. The representations and covenants conta ined in this paragraph are intended to support the conclusion that the interest paid on the Bonds issued to finance the Acquisition Improvements is excluded from gross income for federal income tax purpose under Section 1.03 of the Internal Revenue Code of 1986 (the “Code”).]

CITY OF SANTA CLARITA

By:

Title:

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EXHIBIT E ACQUISITION FUNDING AGREEMENT

BIDDING, CONTRACTING AND CONSTRUCTION REQUIREMENTS FOR

ACQUISITION IMPROVEMENTS

With respect to construction contracts awarded after approval of the Agreement, the Developer shall solicit three (3) bids for each contract for Acquisition Improvements for which an Actual Cost Certificate is submitted.

No contractor or subcontractor may be listed on a bid proposal for the public Acquisition Improvements unless registered with the Department of Industrial Relations pursuant to Labor Code Section 1725.5. No contractor or subcontractor may work on the public Acquisition Improvements unless registered with the Department of Indus trial Relations pursuant to Labor Code Section 1725.5. Owner shall be responsible for ensuring that these contractor registration requirements are adhered to since construction of the public Acquisition Improvements is subject to compliance monitoring and enforcement by the Department of Industrial Relations.

An authorized representative of the City and the Administrator shall be provided a copy of the tabulation of bid results upon request.

Contract(s) for the construction of the public Acquisition Impro vements shall be awarded to the qualified contractor(s) submitting the lowest responsible bid(s), as determined by the Developer. Developer shall not award a contract to a contractor that is in conflict of interest with the Developer or the City pursuant to Government Code Section 1090.

The contractor to whom a contract is awarded shall be required to pay not less than the prevailing rates of wages pursuant to Labor Code Sections 1770, 1773 and 1773.1. A current copy of applicable wage rates shall be on file in the Office of the Clerk of the City, as required by Labor Code Section 1773.2.

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Tesoro del Valle
Annexation
Boundary
City-owned
Property
Parcel Outlines
City of Santa
Clarita Boundary
City of Santa
Clarita Sphere of
Influence
Tesoro del Valle
Annexation Boundary
1,000 0 1,000500 Feet
¯
Parcel data: Copyright August 2019,
ParcelQuest & County of Los Angeles.

The City of Santa Clarita does not warrant
the accuracy of the data and assumes no
liability for any errors or omissions.

Q:\PROJECTS\CD\190903f1\mxd\tesoro_annex_vicinity.mxd
Vicinity Map

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Attachment: Annexation Boundary Map (Tesoro del Valle Pre-Annexation Agreement)

1 PRE-ANNEXATION AGREEMENT BETWEEN THE CITY OF SANTA CLARITA,

CALIFORNIA, AND BLC TESORO, LLC, REGARDING

ANNEXATION TO THE CITY OF SANTA CLARITA

Pursuant to Section 17.27.100(B) of the City’s Municipal Code and except as otherwise stated in this Pre-Annexation Agreement, the City of Santa Clarita (City) and BLC Tesoro, LLC (Owner), hereby agree to the following terms, covenants, and conditions:

A. On November 12, 2019, the City Council adopted a Resolution of Application, Resolution No. 19-57, pursuant to Government Code Section 56700, to initiate annexation proceedings affecting the Tesoro del Valle Annexation area, including Revised Vesting Tentative Tract Map (VTTM) 51644-1 (Project).

B. The Owner agrees to support the City’s annexation of the Project and any associated properties, and to work with and support City planning efforts where such efforts promote and advance the objectives set forth in this Pre-Annexation Agreement.

C. The City agrees to recognize and continue to treat the Los Angeles County (County) approvals, which are part of Revised VTTM 51644-1, its amendments, and its associated entitlements which have been approved by the County prior to the effective date of the annexation, as a vested right to proceed in accordance with applicable County ordinances in effect on the date the application for the County approvals was deemed complete for the term of such map, including permitted uses, parking, setbacks, right of way improvements, landscaping, and hillside development. County approvals can be found in Exhibit A to this Pre-Annexation Agreement. Revised VTTM 51644-1 is attached as Exhibit B to this Pre-Annexation Agreement. The City will not impose any other or additional requirements on the Owner or the property in connection with the subdivision of the property, pursuant to the County approvals, provided the approved Project is not substantially modified. Any modifications beyond those permitted by Chapter 17.09 of the Unified Development Code (UDC) shall comply with City requirements and ordinances. If the Owner seeks to modify a specific item or condition approved by the County, the City will not review or seek to modify any unrelated approval or condition previously approved by the County. The Owner agrees to pay any fees, costs, or impact fees generated by substantial modifications to the Project.

D. The City agrees to provide the Owner with a Planning Division liaison to assist in expediting the Project through all City departments in connection with future submittals, and to make reasonable efforts to minimize delays associated with any City policies or standards that may differ from those of the County.

E. The City will accept dedication of the public streets as each street is completed, with completion being determined by the City’s Public Works Director. The acceptance of dedication by the City will include the assumption of the maintenance and liability responsibility of these public roads. Roads will be constructed in accordance with the County approvals, to County standards.

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2 F. The County approvals may be extended by the Owner, pursuant to Section 66452.6 of the Subdivision Map Act, including one administrative extension, as well as up to six years through action of the Planning Commission, as provided for in Section 17.06.230 of the City’s Municipal Code and the Subdivision Map Act. The City shall not impose any new requirements in connection therewith, other than payment of the City’s then-standard extension fees; however, the City may deny any requested extension on the grounds set forth in Government Code Section 66498.1(c). Any future minor modifications to the approved Project, as determined under UDC Section 17.09, would be subject to the City’s UDC as applicable.

G. The Project is in the Valencia Bridge and Thoroughfare (B&T) District and the City acknowledges the applicant will be constructing the widening of Copper Hill Drive and the bridge over the San Francisquito Creek, which will be eligible for B&T fee credits that shall be applied against the B&T obligation at Building Permit issuance. If B&T credit for bridge construction is not issued prior to Building Permits, then a Letter of Credit or Bond may be posted to temporarily satisfy B&T fees up to the amount of the estimated credit as determined by the City.

H. Copper Hill Bridge Widening

1. Upon first submittal of the construction plans and related documents for the Copper Hill Drive and bridge over the San Francisquito Creek, the Owner agrees to provide the City payment for design/permitting review and construction management in an amount established and approved by the Director of Public Works. Upon receipt of payment by the City, the Owner will receive an equal amount in B&T fee credits which shall be applied against the B&T obligation at Building Permit issuance. The City agrees that the amount established by the Director of Public Works will be a “not to exceed” payment, and the Owner will not be responsible for additional costs associated with design review and construction management unless there are substantial changes made to the scope or schedule of the bridge widening over San Francisquito Creek. The Owner represents that the construction schedule will be nine months.

2. Applicant agrees to commence the Copper Hill Bridge construction prior to the City’s issuing the first building Certificate of Occupancy and shall complete the bridge construction nine months after construction commencement.

3. Applicant agrees to obtain all applicable jurisdictional approvals, comply with all applicable federal, state, and local laws, rules, codes and regulations, and obtain, coordinate and pay for all studies, permits, fees and agency inspections required to build the Copper Hill Bridge.

I. The Owner agrees to offer in dedication land for the purpose of open space to the City per Exhibit C to this Pre-Annexation Agreement. All open space dedications shall be recorded with each applicable final map phase, or by separate instrument at the recording of the applicable final map phase. The City understands that a portion of the open space

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3 being dedicated to the City is required habitat mitigation as part of the approval and will have restricted use. The City shall accept the open space offered for dedication by the applicant, subject to the terms and conditions of the Open Space Management and Maintenance Agreement (Open Space Agreement), attached as Exhibit D to this Agreement.

J. The Owner shall construct a Class 1 trail connection from the sidewalk on the north side of Copper Hill Drive west of the Copper Hill Drive Bridge to the northerly terminus of the westerly San Francisquito Creek Trail on the southside of the Copper Hill Drive Bridge. In addition, the Owner shall construct a Class I trail connection from the northerly terminus of the easterly San Francisquito Creek Trail on the southside of the Copper Hill Drive Bridge. The trail connection shall pass under the Copper Hill Drive Bridge and loop around to the northside of Copper Hill Drive at the intersection with McBean Parkway. All new or modified trail striping and markings shall be the responsibility of the owner. All new and existing inaccessible trail facilities shall be designed and constructed to the satisfaction of the City Engineer. The City represents that the City already has easement rights for the existing Class 1 trails and that the Owner is not being required to obtain any additional ownership or easement rights for the existing Class 1 trails. The existing Class 1 trails refers to the sections on easterly and westerly San Francisquito Creek Trail that extend under the Copper Hill Bridge from the north side of the bridge to the trails on the south side of the bridge. Finally, the Owner agrees to pay for the cost of posting signage on the existing Cliffie Stone Trail south of the Copper Hill Bridge and north of the Copper Hill Bridge on the existing trail alignment set by the City and the County of Los Angeles, along with contribution to the City upon the annexation to the City for any necessary brush clearance on this portion of the Cliffie Stone Trail in the amount of $500.

1. The applicant shall secure, at the applicant's expense, sufficient title or interest in land to permit construction of any required off-site improvements.

2. If the applicant is unable to acquire sufficient title or interest to permit construction of the required off-site improvements, the applicant shall notify the City of this inability not more than six months after the annexation is complete. In such case, the City may thereafter acquire sufficient interest in the land, which will permit construction of the off-site improvements by the applicant.

3. The applicant shall pay all of the City's costs of acquiring said off-site property interests. The cost of acquisition may include, but is not limited to, acquisition prices, damages, engineering services, expert fees, title examination, appraisal costs, acquisition services, relocation assistance services and payments, legal services and fees, mapping services, document preparation, expenses and/or damages (as provided under Code of Civil Procedures Sections 1268.510-.620), and overhead.

4. If required, the City shall commence an eminent domain action to acquire the property to be improved within 120 days of the notification set forth in Section J.2. (J.2.) above. The applicant shall have no further obligations to pay for the

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4 acquisition of the property nor to install or pay for the improvements on the property if the City has not commenced an eminent domain action to obtain the necessary property within 120 days of the notification set forth in J.2.

5. At the time the applicant notifies the City, as provided in J.2., the applicant shall simultaneously submit to the City, in a form acceptable to the City, all appropriate appraisals, engineering specifications, legal land descriptions, plans, and other documents deemed necessary by the City to commence its acquisition proceedings.

6. The applicant agrees to deposit with the City, within five days of request by the City, such sums of money as the City estimates to be required for the costs of acquisition. The City may require additional deposits from time-to-time.

7. If the City dismisses the eminent domain action referred to in J.4. above, or if the Superior Court rules in a final judgment that the City may not acquire the necessary property, the applicant shall have no further obligations to pay for the acquisition of the property, nor to install or pay for the improvements on the property. Notwithstanding the foregoing, the applicant shall reimburse the City for all costs incurred to the point of dismissal or to obtain the final judgement, including any court ordered payment amounts included in or resulting from such dismissal or judgement.

8. The applicant shall execute any agreements mutually agreeable prior to providing the notice described in J.2. as may be necessary to assure compliance with the foregoing conditions, including, but not limited to, a property acquisition and reimbursement agreement.

9. Failure by the applicant to notify the City, as required by J.2., or simultaneously submit the required and approved documents specified in J.5. above, or make the deposits specified in J.6. above, shall, with the exception of J.7. above, constitute applicant's waiver of the requirements otherwise imposed upon the City to acquire necessary interests in the property referred to hereinabove.

K The City agrees to accept all public trails within any City-owned open space and the additional City trails required by the County approvals and constructed to County standards, and maintain said trails to City standards, including the Cliffie Stone Trail and Outpost East Trail Rest Area which will be transferred to City ownership as part of the annexation.

L. The City agrees that the parks developed as part of the County approvals will be constructed to County standards and dedicated to and maintained by the HOA, except the Outpost East Trail Rest Area, which will be a City facility.

M. The City understands the Owner intends to form a Mello-Roos Community Facilities District (CFD) with the California Municipal Finance Authority (CMFA) that will be

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5 authorized to levy annual special taxes and issue bonds to finance approximately $38,000,000 in public improvements and impact fees associated with the Project. Owner agrees to include within the formation of such CFD a separate service special tax over the Project to be levied in perpetuity to fund the management and maintenance of the open space described in Section I of this Agreement. This will generate a minimum of $50,000 per year in revenue, which amount shall be adjusted annually for inflation as described in the County approvals and the Open Space Agreement to be entered into by the City and the Owner. The City shall agree to present to the City Council, for its consideration, a resolution to (a) allow the CFD to be established by CMFA, pursuant to CMFA’s Bond Opportunities for Land Development (BOLD) Program, and to be authorized to levy the services special tax described above and a special tax to finance certain improvements that will be City improvements before the annexation, and certain ones that will be City improvements following the annexation, including those improvements listed in Exhibit E (City Improvements), and a portion of the Project’s B&T Fees listed in Exhibit E (Financed Fees); (b) authorize the CFD to finance the Stewardship Costs in the amount of $59,000 and remit to the City the CFD services special tax for use by the City as Stewardship Funds, pursuant to the Open Space Agreement (as such terms are defined in the Open Space Agreement); and (c) approve the form and authorize the execution of a joint community facilities agreement with CMFA and the Owner relating to the CFD and an Acquisition Funding Agreement with CMFA and the Owner relating to the City Improvements and the Financed Fees. Should the CFD not be formed, the HOA shall be responsible to cover the applicable costs of maintenance of the open space described in Section I of this Agreement.

N. The Developer shall be required to form a Drainage Benefit Assessment Area to fund maintenance of any water quality devices within the Project that the Los Angeles County Flood Control District will not maintain as part of the Storm Drain transfer process.

O. The Developer may opt to form a Benefit Assessment District over the Project, such as a Lighting and Landscape Maintenance District (LLMD), to fund the services conditioned by and described in the County approvals where a HOA or County-formed Benefit Assessment District has not been formed over the Project or the Project not been annexed into an existing County-formed Benefit Assessment District. The City agrees to conduct such assessment district proceedings. Such services include, but are not limited to, streetlighting and landscape maintenance.

P. Miscellaneous.

1. Severability. If any provision of this Agreement is held, to any extent, invalid, the remainder of this Agreement shall not be affected, except as necessarily required by the invalid provision, and shall remain in full force and effect.

2. Waiver or Modification. Any waiver or modification of the provisions of this Agreement must be in writing and signed by the authorized representative(s) of each party. Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver

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6 of the party’s right to insist upon and demand strict compliance by the other party with the terms of this Agreement.

3. Binding upon Heirs, Successors and Assigns. The terms, covenants, and conditions of this Agreement shall be binding upon all heirs, successors, and assigns of the parties hereto.

4. Governing Law; Venue. This Agreement shall be construed and enforced in accordance with the laws of the State of California, without reference to choice of law provisions. Any legal actions under this Agreement shall be brought only in the Superior Court of the County of Los Angeles, State of California.

5. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original. The parties agree that this Agreement may be transmitted and signed by facsimile or electronic mail by either/any or both/all parties, and that such signatures shall have the same force and effect as original signatures in accordance with California Government Code Section 16.5 and Civil Code section 1633.7.

6. Interpretation. This Agreement shall be construed according to its fair meaning, and not strictly for or against any party. No presumptions or rules of interpretation based upon the identity of the party preparing or drafting the Agreement, or any part thereof, shall apply to the interpretation of this Agreement.

7. Effective Date, Termination, and Enforcement. This Agreement shall become effective following approval by the City Council and upon signature by all parties, and shall continue in full force and effect for the duration of the entitlements described in Paragraph C herein, unless terminated by mutual agreement of the parties in writing. An individual party may terminate this Agreement for default, but only after written notice of default and a failure by the defaulting party to cure the default within 30 days, or if not possible within 30 days, within a reasonable time thereafter, so long as a cure is commenced within 30 days and thereafter diligently pursued until completion. In addition to the right to terminate, as well as any other remedy provided at law, a non- defaulting party may also pursue specific performance as a remedy.

SIGNATURES ON THE NEXT PAGE

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NOW THEREFORE, the parties hereby execute this Pre-Annexation Agreement as authorized by the City Council of the City of Santa Clarita and BLC Tesoro, LLC.

Dated: ____________ , CITY OF SANTA CLARITA

By:_________________________________________
Laurene Weste, Mayor
ATTEST:

Mary Cusick, City Clerk

APPROVED AS TO FORM:

City Attorney

BLC TESORO LLC,
a Delaware limited liability company

By:

Name:

Title:

By:

Name:

Title:

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EXHIBIT A

LOS ANGELES COUNTY APPROVALS FOR VTTM 51644-01
APPROVED NOVEMBER 7, 2018,
and AMENDED JUNE 23, 2020, and JUNE 15, 2021,

INCORPORATED BY REFERENCE

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EXHIBIT B

REVISED VTTM 51644-01

INCORPORATED BY REFERENCE

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EXHIBIT C

VTTM 51644-01 OPEN SPACE EXHIBIT

INCORPORATED BY REFERENCE

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EXHIBIT D

OPEN SPACE AGREEMENT

INCORPORATED BY REFERENCE

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EXHIBIT E

VTTM 51644-01 COMMUNITY FACILITIES DISTRICT EXHIBIT

I. Acquisition Improvements1

Extension of Avenida Rancho Tesoro (“A” Street) (subject to annexation) (est. cost $4,500,000)

II. Financed Fees

The B&T Fees shall include the Bridge and Thoroughfare development impact fees imposed and collected by the City pursuant to City Ordinance No. _____, as it may be amended or superseded, net of applicable credits.

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1 RECORDING REQUESTED BY: )
AND WHEN RECORDED MAIL TO: )
)

CITY OF SANTA CLARITA )
23920 Valencia Boulevard, Ste. 300 )
Valencia, CA 91355 )
)
Exempt from Recording Fee (Gov. Code, § 27383) )

Space Above Line for Recorder’s Use Only

OPEN SPACE MANAGEMENT AND MAINTENANCE AGREEMENT
This OPEN SPACE MANAGEMENT AND MAINTENANCE AGREEMENT
(“Agreement”) is made this ______ day of ________, 2022, by and between BLC TESORO LLC, a Delaware limited liability company (“BLC Tesoro”) and the CITY OF SANTA CLARITA, a political subdivision of the State of California (“City”), with reference to the following facts:

R E C I T A L S
A. BLC Tesoro is the owner and developer of that certain residential development project located in unincorporated Los Angeles County (the “County”) and known as “Tesoro Highlands” (the “Project”), which Project is the final phase of development of the Tesoro del Valle master planned community and includes the construction of 820 residential units and certain other uses within a total project area of approximately 1,275 acres (the “Project Site”).

B. The Project was approved by the County on November 7, 2018 by action of the County’s Regional Planning Commission as more fully described in Revised Vesting Tentative Tract Map TR51644 -1 (as amended on June 23, 2020 and June 15, 2021 ) and certain related approvals, including Conditional Use Permit No. 200600210, Discretionary Housing Perm it No. 2016001958 and Oak Tree Permit No. 201000 029 (the “Project Approvals” ), which Project Approvals were issued subject to certain conditions of approval (the “Conditions of Approval”).

C. In furtherance of the Condition of Approval No. 35, and as set forth in that certain Dedication Agreement by and between the City and BLC Tesoro dated as of __________, 202 2, the City and BLC Tesoro are entering into this Agreement to provide for the management and maintenance as open space, of certain real property consisting of approximately 770 acres of land currently located in the unincorporated County and depicted visually on Exhibit A -1 attached hereto (collectively, the “City Open Space Areas”). The City Open Space Areas include those areas visually depicted on Exhibit A-1 and legally described on Exhibit A-2 attached hereto as “Parcel 1 and Parcel 2” (712 acres).

D. As required by the Conditions of Approval and as set forth in the Dedication Agreement, additional lands around the perimeter of the development area on the Project Site will be identified and conveyed to the City following the completion of initial grading and the

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2 landscaping of perimeter slopes. These lands, which are visually depicted on Exhibit A-1 as “Open Space for Future Transfer to the City” (58 acres) are not currently a part of the City Open Space Areas and are not affected by this Agreement but, upon their conveyance to the City they will be added to this Agreement (and included within the City Open Space Areas) through an amendment hereto. A legal description of the “Open Space for Future Transfer to the City” will be created at such time.

E. In addition to requiring dedication of the City Open Space Areas, Condition of Approval No. 35 requires that a minimum of Fifty Thousand Dollars ($50,000) annually , subject to CPI increases, be permanently provided for the management and maintenance of the City Open Space Areas. These funds, which are described in the Conditions of Approval as the “Stewardship Funds,” will be provided through the “Stewardship Funding Mechanism” described more fully in Section 8(c) below.

F. Condition of Approval No. 11 requires BLC Tesoro to comply with certain mitigation measures set forth in that certain Mitigation Monitoring and Re porting Program adopted in accordance with the California Environmental Quality Act and incorporated by reference into the Conditions of Approval (“MMRP”).

G. The MMRP includes requirements (the “BLC Tesoro Mitigation Requirements”) for BLC Tesoro to undertake certain habitat-related improvements within the City Open Space Areas (the “Habitat Improvements”) and, following completion of the Habitat Improvements, to monitor and maintain such Habitat I mprovements for a five -year period , whi ch BLC Tesoro Mitigation Requirements are more fully described in the following habitat mitigation and monitoring plans and programs prepared by the Psomas and approved by the County (collectively, the “HMMPs”), including : (i) “Special Status Vegetation T ypes, Habitat Mitigation and Monitoring Program, Tesoro del Valle Phases B and C, Revised VTTM 51644 -1, Los Angeles County, California, EIR Mitigation Measure Bio-1”, dated January 25, 2021, (ii) Oak Tree Habitat Mitigation and Monitoring Plan, Tesoro del Valle Phases B and C, Revised VTTM 51644-1, Los Angeles County, California, EIR Mitigation Measure Bio -2” dated November 9, 2020 , (iii) Mariposa Lily Habitat Mitigation and Monitoring Plan, Tesoro del Valle Phases B and C, Revised VTTM 51644 -1, Los Angeles County, California, EIR Mitigation Measure Bio -3” dated November 9, 2020, and (iv) Western Spadefoot Translocation Program, Tesoro del Valle Phases B and C, Revised VTTM 51644-1, Los Angeles County, California, EIR Mitigation Measure Bio- 4” dated November 2020. Copies of each of the HMMPs are attached hereto and incorporated herein as Exhibit B.

H. As more fully set forth below, upon satisfaction of the BLC Tesoro Mitigation Requirements, including completion of the five-year monitoring period established for the Habitat Improvements, City will undertake the long -term maintenance and management of the Habitat Improvements as required by the HMMPs and more fully set forth in each of the HMMPs , and will provide certain reports to the California De partment of Fish and Wildlife (“CDFW”) as described more fully in the “LTMP” (defined below).

I. In addition to addressing the requirements of Conditions of Approval 35 and 11 , and as partly set forth in Mitigation Measure Bio -7, this Agreement is intended to satisfy certain requirements contained in that certain Lake or Streambed Alteration Agreement 1600 -2020-01-

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3 R5, Revision 3 dated January 28, 2021 (the “LSAA”), between BLC Tesoro and CDFW. the LSAA is attached hereto and incorporated herein as Exhibit C.

J. [Intentionally Left Blank]
K. [Intentionally Left Blank]
L. BLC Tesoro has by separate instruments recorded concurrently herewith conveyed to the City fee title to the City Open Space Areas subject to (i) an easement in favor of BLC Tesoro to conduct the BLC Tesoro Mitigation Requirements, a copy of which is attached hereto as Exhibit D (the “Mitigation Access Easement”); (ii) that certain Multi-Use Trail Easement granted by BLC Tesoro in favor of the County of Los Angeles, dated __________ and recorded in the Official Records of Los Angeles County as Instrument No. _______________ (the “Public Trail Easement”) affecting those portions of the City Open Space Areas described on attached Exhibit E and (iii) certain easements granted or to be granted by BLC Tesoro to DACA-CASTAIC LLC as required by that certain Joint Cooperation Agreement , dated as of August 10, 2017 , a memorandum of which was recorded in the Official Records of Los Angeles County on December 1, 2017, as Instrument No. 20171388438 (the “Tapia Easement”), a copy of which is attached hereto as Exhibit F The Mitigation Access Easement, the Public Trail Easement and the Tapia Easement are sometimes collectively referred to herein as the “Easements.” M. The City Open Space Areas are in a predominantly unimproved natural condition and possesses wildlife and habitat values of great importance to the City and the State of California.

The City Open Space Areas provide high quality habitat for numerous plant and wildlife specie s including the following special status species: slender mariposa lily ( Calochortus clavatus var. gracilis), club-haired mariposa lily, (Calochortus clavatus var. clavatus), Peirson’s morning-glory (Calystegia peirsonii ), Palmer’s grapplinghook ( Harpagonella palmeri ), Southern California legless lizard ( Anniella stebbinsi ), Santa Ana sucker (Catostomus santaanae), northern harrier (Circus cyaneus ), white -tailed kite ( Elanus leucurus ), unarmored threespine stickleback (Gasterosteus aculeatus willia msonii), arroyo chub ( Gila orcutti ), loggerhead shrike ( Lanius ludovicianus), coast horned lizard ( Phrynosoma blainvillii ), and western spadefoot ( Spea hammondii). Further, the City Open Space Areas contain the following vegetation types: alluvial scrub, elderberry scrub, chamise chaparral, chamise chaparral–annual grassland, sage scrub, sage scrub–annual grassland, chamise chaparral –sage scrub, coast live oak woodland, coast live oak – blue elderberry scrub, holly-leaf cherry woodland, coast live oak–holly-leaf cherry woodland, and mixed chaparral–alluvial scrub–annual grassland. Individually and collectively, these wildlife and habitat values comprise the “Conservation Values” of the Property.

N. As more fully set forth below, City agrees to accept title to the City Open Space Areas and, subject to the “Easements” (as defined above and all three of which instruments shall be deemed to be superior at all times to the provisions of this Agreement), to maintain and manage the City Open Space Areas predominantly in their natural, scenic, and open space condition (“Natural Condition”) as envisioned by California Civil Code section 815.

O. City’s maintenance and management of the City Open Space Areas in their Natural Condition shall be in accordance with that certain Long-Term Management Plan –

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4 Tesoro del Valle Residential Development – City Open Space Areas, Psomas dated August 19, 2021, a copy of which is attached hereto as Exhibit G (the “LTMP”).

P. BLC Tesoro and the City have entered into a pre-annexation agreement, dated ___________, 2022, pursuant to which the Project and the City Open Space Areas may be annexed to the City. Until such annexation has been completed, the County will continue to have regulatory authority over the Project in accordance with the Project Approvals and the Conditions of Approval. Accordingly, given that this Agreement is being entered into in accordance with Condition 35 of the Conditions of Approval, among other Conditions of Approval, the County shall be deemed to be an intended third-party beneficiary of the rights of BLC Tesoro under this Agreement. County’s third-party beneficiary status under this Agreement shall terminate upon completion of annexation of the Project, and the City Open Space Areas, to the City.

Q. This Agreement shall constitute a mitigation agreement within the meaning of California Government Code section 65965(f).

AGREEMENT
In consideration of the above recitals and the mutual covenants, terms, conditions, and restrictions contained herein, BLC Tesoro and the City hereby agree as follows:

1. Purposes.
(a) The purposes of this Agreement are to ensure the City Open Space Areas will be retained forever in their “Natural Condition” (as defined in Recital N above) and to prevent any use of the City Open Space Areas that will impair or interfere with the Conservation Values of the City Open Space Areas. BLC Tesoro and the City intend that this Agreement will confine the use of the City Open Space Areas to activities that are consistent with such purposes, including, without limitation, those involving the preservation, restoration, and enhancement of nati ve species and their habitats.
(b) Notwithstanding anything to the contrary contained herein, any use or activity that is consistent with the LTMP or the Easements shall be deemed to be consistent with the purposes of this Agreement and shall be deemed not t o impair or interfere with the Conservation Values of the City Open Space Areas.

2. Rights and Obligations of City In General. To accomplish the purposes of this Agreement, City shall have the following rights and obligations:
(a) To preserve and protect the Conservation Values of the City Open Space Areas, including the Habitat Improvements, in perpetuity; (b) To prevent any activity on or use of the City Open Space Areas that is inconsistent with the purposes of this Agreement and to require the restoration of su ch areas or features of the property that may be damaged by any act, failure to act, or any use or activity that is inconsistent with the purposes of this Agreement; and

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5 (c) To require that all mineral, air and water rights as City deems necessary to preserve, protect, and sustain the biological resources and Conservation Values of the City Open Space Areas shall remain a part of and be put to beneficial use upon the City Open Space Areas, consistent with the purposes of this Agreement.

3. Development Rights. Except as otherwise set forth in the LTMP or the Easements, all present and future development rights appurtenant to, allocated, implied, reserved or inherent in the City Open Space Areas are hereby terminated and extinguished, and may not be used on or transferred to any portion of the City Open Space areas , nor any other property adjacent or otherwise.

4. Prohibited Uses. Except as otherwise set forth herein, any activity on or use of the City Open Space Areas that is inconsistent with the purposes of this Agreement is prohibited.

Without limiting the generality of the foregoing, and subject to the terms of or except as otherwise set forth in the LTMP or the Easements, the following uses and activities are expressly prohibited:
(a) Unseasonable watering; use of chemical fertilizers, pesticides, biocides, herbicides, rodenticides, fungicides or other agents; incompatible fire protection activities; and any and all other activities and uses which may adversely affect the Conservation Values of the City Open Space Areas or otherwise interfere with the purposes of this Agreement; (b) Use of off-road vehicles and use of any other motorized vehicles except on existing roadways and except in emergencies;
(c) Agricultural activity of any kind, except grazing for vegetation management; (d) Recreational activities including, but not limited to, horseback riding, biking, hunting or fishing, except to the extent they are allowed under the Public Trail Easement; (e) Commercial, industrial, institutional, or residential structures or uses; (f) Any legal or de facto division, subdivision or partitioning of the City Open Space Areas, including a request for a certificate of compliance pursuant to the Subdivision Map Act (Gov. Code section 66499.35);
(g) Construction, reconstruction, expansion, location, relocation, installation, or placement of any building, billboard or sign (other than trail signage, emergency locator system signage or other public benefit communications) , or any other structure or improvement of any kind;
(h) Deposit or accumulation of soil, trash, ashes, refuse, waste, bio-solids or any other materials;
(i) Planting, introduction, or dispersion of non -native or exotic plant or animal species;

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6 (j) Filling, dumping, excavating, draining, dredging, mining, drilling, removing or exploring for or extracting minerals, loam, soil, sands, gravel, rocks or other material on or below the surface of the City Open Space Areas, or granting or authorizing surface entry for any such purpose;
(k) Altering the surface or general topography of the City Open Space Areas , including building new roads or trails, or paving or otherwise covering any portion of the City Open Space Areas except as permitted under the Public Trail Easement or as specified under subsection 4(l) below;
(l) Removing, disturbing, altering, destroying, o r cutting of trees, shrubs or other vegetation, except as required by law , and except as necessary for ( i) fire breaks, ( ii) maintenance of existing trails or roads, or (iii) prevention or treatment of disease; (m) Manipulating, impounding or altering any natural water course, body of water or water circulation on the City Open Space Areas, and activities or uses detrimental to water quality, including but not limited to degradation or pollution of any surface or sub-surface waters; (n) Transferring, encumbering, selling, leasing, or otherwise separating the mineral, air, or water rights for the City Open Space Areas; changing the place or purpose of use of the water rights; abandoning or allowing the abandonment of, by action or inaction, any water or water rights, ditch or ditch rights, spring rights, reservoir or storage rights, wells, ground water rights, or other rights in and to the use of water historically used on or otherwise appurtenant to the City Open Space Areas, including but not limited to: (1) riparian water rights; (2) appropriative water rights; (3) rights to waters which are secured under contract with any irrigation or water district, to the extent such waters are customarily applied to the City Open Space Areas; and (4) any water from wells that are in existence or may be constructed in the future on the Property; and (o) Any activity or use that may violate or fail to comply with relevant federal, state, or local laws, regulations, or policies applicable to the City Open Space Areas or the activity or use in question.

5. City’s Reserved Rights. City reserves to itself, and to its personal representatives, heirs, successors, and assigns, all rights accruing from its ownership of the City Open Space Areas, including the right to engage in or to permit or invite others to engage in all uses of the City Open Space Areas, that are not expressly prohibited or limited by, and are consistent with the purposes of, this Agreement.

6. BLC Tesoro’s Reserved Rights. As more fully set forth in the Mitigation Access Easement, BLC Tesoro have the right to enter onto the City Open Space Areas to perform the BLC Tesoro Mitigation Requirements as set forth in the HMMPs as they may be amended from time to time. Nothing in this Agreement shall be deemed to prevent or impair BLC Tesoro ’s ability develop and operate any or all portions of the Project outside of the City Open Space Areas as set forth in the Project Approvals and the Conditions of Approval, as they may be amended from time to time, even if such development or operation results in direct or indirect impacts to the City Open Space Areas.

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7 7. City’s Duties. To accomplish the purposes of this Agreement, and not in limitation of any other obligation of City hereunder or under applicable law, City shall:
(a) Maintain and manage the City Open Space Areas, inc luding the Habitat Improvements, in their Natural Condition and in accordance with any applicable requirements of the MMRP, the LSAA, the HMMPs or the LTMP.
(b) Repair and restore , or pay for the repair and restoration of, any and all damage to the City Open Space Areas, including the Habitat Improvements, that may be caused directly or indirectly by the City [or any third party other than BLC Tesoro or its agents, employees or contractors] prior to BLC Tesoro’s completion of the BLC Tesoro Mitigation Requireme nts, including expiration of the monitoring period established for the Habitat Improvements as confirmed by CDFW (i.e., five years or until such time as performance standards have been met) (the “Monitoring Periods” ); provided, however, that City shall not engage in any repair or restoration work with respect to the Habitat Improvements without first securing the consent of BLC Tesoro to City’s plan for repair or restoration;
(c) Upon completion by BLC Tesoro of the BLC Tesoro Mitigation Requirements, including expiration of the Monitoring Periods, perform all long-term management, maintenance, monitoring and reporting obligations set forth in each HMMP with respect to the Habitat Improvements described in such HMMP and in accordance with the LTMP; and (d) Allow access to the City Open Space Areas by CDFW or (until such time as the Project has been annexed to the City) the County (collectively, the “Regulatory Agencies”) as requested by either such Regulatory Agency to inspect the City Open Space Areas to en sure compliance with the permits or approvals issued by such Regulatory Agency; and (e) Secure any and all applicable governmental permits and approvals required for any activity or use undertaken or allowed by City within the City Open Space Areas as required by applicable federal, state, local and administrative agency statutes, ordinances, rules, regulations, orders or requirements.

8. BLC Tesoro Financial Obligations.
(a) BLC shall have sole financial responsibility for implementation of the BLC Tesoro Mitigation Requirements in accordance with the HMMPs and the Regulatory Permits (the “Mitigation Costs”) until such time as the Monitoring Periods have concluded, at which time City shall assume responsibility, including financial responsibility, for the long-term management and maintenance of the Habitat Improvements.
(b) Except as set forth in subsection (a) abov e, City shall at all times have sole responsibility, including financial responsibility, for the ownership, operation, maintenance, repair and stewardship of the City Open Space Areas as set forth in the HMMPs and the LTMP (collectively, the “Open Space Stewardship”); provided, however, that the funding of the Public

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8 Trail System shall be as set forth in that certain p re-annexation agreement between the City and BLC Tesoro, dated _____________, 2020 (the “Pre-Annexation Agreement”). (c) City acknowledges and agrees that the costs of the City’s Open Space Stewardship under subsection (b) above (the “Stewardship Costs”) will adequately be covered through the establishment by BLC Tesoro, as required under the Project Approvals , of a “CFD” (defined below) to provide funding in the amounts of $59,000 in initial stewardship costs that have been or will be paid by BLC Tesoro to City upon conveyance to the City of the City Open Space Areas and $50,000/year thereafter (subject to an annual CPI increase) commencing upon the first anniversary of conveyance to the City of the City Open Space Area (collectively, the “Stewardship Funds”). With respect to the annual payments described in the foregoing sentence, and as more fully set forth in the Pre -Annexation Agreement, (i) BLC intends to form a Mello -Roos Community Facilities District (“CFD”) with the California Municipal Finance Authority (CMFA) that will include a separate service special tax over the Project to be levied in perpetuity to fund the management and maintenance of the open space as described above and (ii) City has agreed to consider approval of a resolution to allow the CFD to be established as described above. The funds so generated will be provided to the City to cover anticipated annual Stewardship Costs after the first year of ownership by the City.
(d) In no event shall BLC Tesoro have any financial responsibility for the Open Space Stewardship, or any other costs associated with the City Open Space Areas, other than (i) the Mitigation Costs; (ii) initial establishment of the CFD as described above ; or (iii) costs associated with any “Claim” for which BLC Tesoro is responsible under Section 9 or 10 below.

9. Hold Harmless.
(a) BLC Tesoro and its successors and assigns shall hold harmless, indemnify, and defend the City and its officials, officers, employees, agents, contractors, and representatives (collectively “City Indemnified Parties”) from and against any and all liabilities, penalties, costs, losses, damages, expenses (including without limitation, reasonable attorneys’ and experts’ fees), causes of acti on, claims, demands, orders, liens or judgments , including, without limitation, liability arising in connection with personal injury, wrongful death or property damage (each a “Claim” and, collectively, “Claims”), arising from or in any way connected with any act, omission, condition, or other matter related to or occurring on or about the City Open Space Areas, caused by BLC Tesoro or its successors or assigns or its or their agents, contractors or employees.

If any action or proceeding is brought against any of the City Indemnified Parties by reason of any Claim to which the indemnification in this Subsection 9(a) applies, then at the election of and upon written notice from such City Indemnified Party, BLC Tesoro and its successors and assigns shall defend such action or proceeding by counsel reasonably acceptable to the applicable City Indemnified Party or reimburse the City Indemnified Party for all expenses (including, without limitation, reasonable attorneys’ and experts’ fees) incurred in defending the action or proceeding. (b) City and its successors and assigns shall hold harmless, indemnify, and defend BLC Tesoro and its directors, officers, employees, agents, contractors, and representatives (collectively “BLC Tesoro Indemnified Parties” ) from and against any and all liabilities, penalties, costs, losses, damages, expenses (including without limitation, reasonable attorneys’ and experts’ fees), causes of action, claims, demands, orders, liens or judgments, including, without

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9 limitation, liability arising in connection with personal injury, wrongful death or property damage (each a “Claim” and, collectively, “Claims”), arising from or in any way connected with any act, omission, condition, or other matter related to or occurring on or about the City Open Space Areas, caused by City or any other person other than BLC Tesoro or its successors or assigns or its or their agents, contractors or employees. If any action or proceeding is brought against any of the BLC Tesoro Indemnified Parties by reason of any Claim to which the indemnification in this Subsection 9(b) applies, then at the election of and upon written notice from such BLC Tesoro Indemnified Party, City and its successors and assigns shall defend such action or proceeding by counsel reasonably acceptable to the applicable BLC Tesoro Indemnified Party or reimburse the BLC Tesoro Indemnified Party for all expenses (including, without limitation, reasonable attorneys’ and experts’ fees) incurred in defending the action or proceeding.

10. Hazardous Materials.
(a) BLC Tesoro represents and warrants that, to BLC Tesoro’s knowledge, there has been no release or threatened release of “Hazardous Materials ” (defined below) or underground storage tanks existing, generated, treated, stored, used, releas ed, disposed of, deposited or abandoned in, on, under, or from the City Open Space Areas , or transported to or from or affecting the City Open Space Areas.
(b) Without limiting the obligations of BLC Tesoro under Section 9(a) above, BLC Tesoro hereby releases and agrees to indemnify, protect and hold harmless the City Indemnified Parties against any and all Claims arising from or connected with any Hazardous Materials or underground storage tanks present, alleged to be present, releas ed in, from or about, or otherwise associated with the City Open Space Areas at any time after it acquired ownership of the City Open Space Areas , provided, however , that this release and indemnification shall be inapplicable to the City Indemnified Partie s with respect to any Hazardous Materials placed, disposed or released by any of the City Indemnified Parties. This release and indemnification includes, without limitation, Claims for (i) injury to or death of any person or physical damage to any property; and (ii) the violation or alleged violation of, or other failure to comply with, any “Environmental Laws” (defined below). If any action or proceeding is brought against any of the City Indemnified Parties by reason of any Claim to which the indemnification in this Section 10(b) applies then, at the election of and upon written notice from such City Indemnified Party, BLC Tesoro and its successors and assigns shall defend such action or proceeding by counsel reasonably acceptable to the applicable City Indemnified Party or reimburse the City Indemnified Party for all expenses (including, without limitation, reasonable attorneys’ and experts’ fees) incurred in defending the action or proceeding.
(c) The term “Hazardous Materials” includes, without limitation, ( i) material that is flammable, explosive or radioactive; ( ii) petroleum products, including by -products and fractions thereof; and (iii) hazardous materials, hazardous wastes, hazardous or toxic substances, or related materi als defined in CERCLA; Resource Conservation and Recovery Act (42 U.S.C. 6901 et seq.); the Hazardous Materials Transportation Act (49 U.S.C. Section 5101 et seq.); the Hazardous Waste Control Law (California Health & Safety Code section 25100 et seq .); th e Hazardous Substance Account Act (California Health & Safety Code section 25300 et seq.), and

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10 in the regulations adopted and publications promulgated pursuant to them, or any other applicable Environmental Laws now in effect or enacted after the date of this Agreement. (d) The term “Environmental Laws” includes, without limitation, any federal, state, local or administrative agency statute, ordinance, rule, regulation, order or requirement relating to pollution, protection of human health or safety, the enviro nment or Hazardous Materials. BLC Tesoro’s activities upon and use of the City Open Space Areas by BLC Tesoro, its agents, employees, invitees and contractors will comply with all Environmental Laws.

11. Transfers. City may assign its rights and delegate its obligations under this Agreement only to a party authorized to enter into mitigation agreements under Government Code section 65965, and only with the prior written approval of BLC Tesoro. In the event of any such assignment, which shall be recorded in the official records of the County of Los Angeles, the City shall concurrently transfer to such assignee any and all funds representing any or all of the Minimum Annual Commitment provided by BLC Tesoro Notices. All notices or other communications required or permitted under this Agreement shall be given in writing and shall be personally delivered (including by means of professional messenger service), sent by overnight courier, or sent by registered or certified U.S. mail, postage prepaid return receipt requested to the addresses set forth below. All notices sent by U.S. mail shall be deemed received five (5) days after the date of deposit with the United States Postal Service, and all notices sent by other means permitted herein shall be deemed receiv ed on the date delivered. Notice may also be given by electronic mail transmission (“ E-Mail”) to any party at the respective E -Mail addresses listed below, provided that notice is also concurrently given by one of the other methods authorized above. An E-Mail delivered after 5:00 P.M. Pacific Time on any business day or anytime on the weekend or a legal holiday shall be deemed delivered on the next business day. Either of the parties may change their addresses by providing written notice thereof to the o ther parties in the manner set forth above without the need to amend this Agreement.

To BLC Tesoro: Newport Pacific Land
100 Bayview Circle, Ste. 240
Newport Beach, CA 92660
Attn: John Patterson
Telephone: (949) 945-2290
Email: [email protected]
With a copy to: Cox, Castle & Nicholson
50 California Street, 32d Floor
San Francisco, California 92614
Attn: Clark Morrison
Telephone: (415) 262-5113
Email: [email protected]

To City: City of Santa Clarita
23920 Valencia Boulevard, Ste. 300
Santa Clarita, California 91355
Atten: Kenneth W. Striplin
Tel: 661-255-4905

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11 Email: [email protected]

12. Amendment. BLC Tesoro and the City may amend this Agreement only by mutual written agreement . Any such amendment shall be consistent with the stated p urposes of this Agreement, shall not affect its perpetual duration, and shall be recorded in the Official Records of Los Angeles County, California.

13. General Provisions.
(a) Controlling Law. The laws the State of California, disregarding the conflict of laws principles of such state, shall govern the interpretation and performance of this Agreement. (b) Liberal Construction. Any general rule of construction to the contrary notwithstanding, this Agreement shall be liberally construed in favor of and to effect the purposes of this Agreement set forth in Section 1 and the policy and purpose set forth in California Civil Code Section 815 et seq . If any provision in this instrument is found to be am biguous, an interpretation consistent with the purposes of this Agreement that would render the provision valid shall be favored over any interpretation that would render it invalid. (c) Change of Conditions . If one or more of the purposes of this Agreement may no longer be accomplished, such failure of purpose shall not be deemed sufficient cause to terminate the entire Agreement as long as any other purpose of the Agreement may be accomplished. In addition, the inability to carry on any or all of the permit ted uses, or the unprofitability of doing so, shall not impair the validity of this Agreement or be considered grounds for its termination or extinguishment.
(d) Severability. If a court of competent jurisdiction voids or invalidates on its face any provision of this Agreement, such action shall not affect the remainder of this Agreement.

If a court of competent jurisdiction voids or invalidates the application of any provision of this Agreement to a person or circumstance, such action shall not affect the application of the provision to other persons or circumstances.
(e) Entire Agreement. This instrument together with the attached exhibits and any documents referred to herein sets forth the entire agreement of the parties with respect to the Agreement and sup ersedes all prior discussions, negotiations, understandings, or agreements relating to the Agreement. No alteration or variation of this instrument shall be valid or binding unless contained in an amendment signed by both parties. (f) Successors and Assigns. The covenants, terms, conditions, and restrictions of this Agreement shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns and shall constitute a servitude running in perpetuity with the City Open Space Areas.
(g) Captions. The captions in this instrument have been inserted solely for convenience of reference and are not a part of this instrument and shall have no effect upon its construction or interpretation.

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12 (h) Counterparts. The parties may execute this instrument in two or more counterparts, which shall, in the aggregate, be signed by all parties; each counterpart shall be deemed an original instrument as against any party who has signed it. In the event of any disparity between the counterparts produced, the recorded counterpart shall be controlling. (i) Exhibits. All Exhibits referred to in this Agreement are attached and incorporated herein by reference.
(j) Warranty. BLC Tesoro represents and warrants that, to BLC Tesoro ’s knowledge, and except for the Mitigation Access Easement, the Public Trail Easement and the Conservation Easement, or as otherwise disclosed to the City in a title report delivered before the execution of this Agreement, there are no outstanding mortgages, liens, encumbrances or other interests in the City Open Space Areas (including, without limitation, mineral interests) which have not been expressly subordinated to this Agreement, and that the City Open Space Areas are not subject to any other Agreement. BLC Tesoro makes n o representations or warranties concerning the existence, character or nature of any water or water rights that may be appurtenant to the City Open Space Areas.
(k) Effective Date. This Agreement shall become effective upon its recordation in the Official Records of Los Angeles County, California. (signatures on following pages)

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13 Signature page to

OPEN SPACE MANAGEMENT AND MAINTENANCE AGREEMENT
IN WITNESS WHEREOF BLC Tesoro and the City have executed this Agreement as of the day and year first above written and have agreed to be bound by the terms and provisions hereof.

BLC TESORO LLC,
a Delaware limited liability company

By:

Name:

Title:

By:

Name:

Title:

CITY OF SANTA CLARITA,
a California municipal corporation

By:

Name:

Title:

APPROVED AS TO FORM:

By:

Name:

Title: City Attorney

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14 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA

COUNTY OF
On , , before me,
(here insert name and title of the officer)
personally appeared

,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature

(Seal)

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A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA

COUNTY OF
On , , before me,
(here insert name and title of the officer)
personally appeared

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

WITNESS my hand and official seal.

Signature

(Seal)

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Exhibit s A-1 and A -2
City Open Space Areas

[See Attached]

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Exhibit B
HMMPs
[See Attached]

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Exhibit C
LSAA
[See Attached]

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Exhibit D
Mitigation Access Easement

[See Attached]

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Exhibit E
Public Trail Easement

[See Attached]

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Exhibit F

Tapia Easement

[See Attached]

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Exhibit G

LTMP

[See Attached]

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Agenda Item: 2

CITY OF SANTA CLARITA

AGENDA REPORT

NEW BUSINESS
CITY MANAGER APPROVAL:

DATE: May 24, 2022
SUBJECT: 2022 COMMUNITY ACTION PLAN TO ADDRESS

HOMELESSNESS
DEPARTMENT: Community Development
PRESENTER: Michael Villegas

RECOMMENDED ACTION

City Council receive a presentation on the 2022 Community Plan to Address Homelessness.

BACKGROUND

The City of Santa Clarita (City) has provided support for local nonprofit homeless service providers, such as Bridge to Home and Family Promise, since Santa Clarita’s first emergency shelter was opened in 1997. This support includes annual City grant funding, annual Community Development Block Grant (CDBG) funding, and the Los Angeles County (County) Homeless Initiative Plan to Prevent and Combat Homelessness. In addition, the City has donated land worth approximately $3 million to Bridge to Home and Family Promise for the development and construction of a permanent, year-round homeless shelter and transitional-housing facility, respectively.

With the passage of Measure H in 2017, a quarter-cent sales tax to help fund resources for homeless services for 10 years, the Santa Clarita City Council created the Ad Hoc Committee on Homeless Issues, led by Councilmembers Smyth and McLean. Under the guidance of both Councilmembers, the City led the development of the Community Plan to Address Homelessness (Community Plan), a comprehensive research plan created with the help of a $50,000 grant from the County in order to identify priorities in Santa Clarita, which was officially adopted in 2018.

With the adoption of the Community Plan, the City, in partnership with the Community Task Force on Homelessness (Task Force), has sought to develop solutions to address the steadily increasing issues associated with homelessness that face our communities. Over 35 stakeholders from across the Santa Clarita Valley (SCV) have contributed to the implementation and completion of the Community Plan through consistent collaborative efforts designed to build ownership of the plan and its priorities, align local resources, and ensure that goals are met. 2 Packet Pg. 90

Page 2 ends

To accomplish the action items identified in the Community Plan, the Task Force has met monthly since adoption and established four subcommittees: 1) Prevention/Coordination of Resources, 2) Increasing Income, 3) Direct Services, and 4) Affordable Housing. Through these subcommittees, the Task Force was able to accomplish 27 action items identified in the Community Plan, with some major accomplishments including:

• Creation of safe drug disposal and sharps drop-off locations at the Santa Clarita Valley Sheriff’s Station and Henry Mayo Newhall Hospital

• Increased mental health service capacity offered through new on-site wellness centers at various school sites across multiple school districts in Santa Clarita

• Execution of six innovation grants, which provided funding for a student affordable housing feasibility study and shared housing pilot program, led by College of the Canyons and Bridge to Home, respectively

• Development and deployment of santaclaritahomelessaction.org, a website dedicated to the efforts of the Task Force, including extensive information on service providers in SCV

• Completion of two comprehensive resource guides for all organizations serving the homeless and at-risk of homelessness populations, which are available on the Task Force’s website

With the completion of the majority of action items listed in the Community Plan, over the last six months, the Task Force has completed a thorough three-year review and held two brainstorming sessions for the development of a new Community Plan based on the current needs of Santa Clarita communities. The new two-year Community Plan builds on the existing efforts to prevent and combat homelessness, and serves as the next phase in the Task Force’s attempt to mitigate the occurrence of homelessness. Like the 2018 plan, the new Community Plan identifies key actions items that will be facilitated by four subcommittees: 1) Advocacy and Coordination of Resources, 2) Direct Services, 3) Housing, and 4) Prevention.

The proposed new Community Plan is attached for reference. The action items within it are substantially complete. Upon approval of the City Council, staff will meet with the Task Force to finalize the new Community Plan and move forward with implementation.

ALTERNATIVE ACTION

Other action as determined by the City Council.

FISCAL IMPACT

There is no fiscal impact associated with this item.

ATTACHMENTS
Draft 2022 Community Action Plan
2 Packet Pg. 91

Community Task Force on Homelessness | santaclaritahomelessaction.org 1

COMMUNITY

PLAN TO

ADDRESS

HOMELESSNESS
June 2022

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Introduction

With the adoption of the first Community Plan to Address Homelessness (Plan) in 2018, the City of Santa Clarita (City), in partnership with the Community Task Force on Homelessness (Task Force), has sought to develop solutions to address the steadily increasing issues regarding homelessness facing our communities. Over 35 stakeholders from across the Santa Clarita Valley (SCV) have contributed to the development of the past and current Plan through consistent collaborative efforts designed to build ownership of the Plan and its priorities, align local resources, and ensure that goals are met.

The Task Force has established the following four subcommittees to fulfill the goals of the new Plan:

Advocacy and Coordination of Resources; Direct Services; Housing; and Prevention. Each subcommittee is tasked with specific duties and responsibilities to ensure the Plan’s actionable items are met in an efficient and timely manner. Major action items the subcommittees previously accomplished include:

➢ Measure H funding was provided to the City of Santa Clarita, Bridge to Home, and Family Promise for homeless coordination services, a new homeless shelter, and a transitional housing complex;

➢ Six grants were provided to six different organizations to identify or improve services for homelessness in the SCV;

➢ Individuals experiencing homelessness, or are at-risk, were linked to various benefits through Samuel Dixon Family Health Center, North Valley Health Corporation, the Department of Social Services, and Henry Mayo Newhall Hospital;

➢ Safe drug disposal and sharps drop-off locations were made available at the Santa Clarita Valley Sheriff’s Station and Henry Mayo Newhall Hospital;

➢ Members of the Coordination and Prevention of Resources Committee worked collaboratively to create two resource guides, which are available on the Task Force’s website.

The new two-year Plan is built on the Task Force’s existing efforts to prevent and combat homelessness, and serves as the next phase in the Task Force’s attempts to mitigate the occurrence of homelessness.

The framework for the goals of this Plan are structured in a SMART format which stands for Specific, Measurable, Achievable, Relevant, and Time-Bound. SMART is an effective tool that provides both direction and clarity, and serves as a successful metric to assist organizations in achieving their goals.

City and Plan Information
Name of City: Santa Clarita
Period of Time Covered by Plan: July 2022 – July 2024
Date of Plan Adoption: June 2022

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Challenges

Housing Cost Burden

Per data collected in the City’s Consolidated Plan for Fiscal Years 2019-2023, approximately 44 percent of Santa Clarita households had a housing cost burden – those that spent more than 30 percent of their gross household income on housing. Citywide, severe cost burden impacted 20 percent of the households – those that spent more than 50 percent of gross household income on housing. As the housing affordability crisis hits those households on the lower end of the income spectrum the hardest, unaffordable housing options can potentially push households into homelessness.

The lack of low-income and Permanent Supportive Housing services create high barriers for those individuals attempting to move into permanent housing solutions. The Regional Housing Needs Allocation (RHNA), which is approved by the California Department of Housing and Community Development (HCD), establishes zoning requirements for cities to accommodate zoning where housing units can be built. The City’s total Regional Housing Needs Allocation (RHNA) share for the 2013-2021 cycle is as follows:
 10,981 units
➢ 2,645 units for extremely low-income housing (0-30 percent of Area Median Income (AMI))
➢ 1,678 units for low-income housing (31-50 percent AMI) ➢ 1,532 units for moderate income housing (51 – 80 percent AMI) ➢ 5,126 units for above-moderate income housing (81 percent – 120 percent AMI)

Year to date, the following
permitted units have been issued
by affordability:
 4,265 units
➢ 13 units for extremely
low-income housing
➢ 141 units for low-
income housing
➢ 172 units for
moderate-income
housing
➢ 3,939 units for above-
moderate income
housing

As the responsibility lies with private developers and institutions for building housing units, and not cities, it has been difficult for cities to comply with their RHNA obligations.

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Funding Streams

Many key stakeholders acknowledge the limited resources cities receive to address the needs of those experiencing homelessness. From the adoption of Measure H in 2017 to support the County’s Homeless Initiative (HI) strategies to prevent and combat homelessness, many cities have not received a substantial return back into their communities. The funding gap that exists causes cities, including the SCV, to compete for additional Measure H dollars to realize many homeless-related goals.

Apart from Measure H, many stakeholders have also inquired as to the challenge that relates to applying for the right forms of funding. As multiple funding streams prevail through an intricate network of federal, state, county, and city funds, the trouble lies with awareness and availability of those funds as well as with which funds stakeholders should apply for.

TABLE 1: FUNDS SPENT ON HOMELESS-RELATED SERVICES (SCV) *Since 2017, the City has contributed approximately $26,500,000 in Measure H dollars.

Source

Program

Recipient(s)
Administering
Agency
Total
Amount

City of
Santa
Clarita

• Family Promise (land donated)
• Bridge to Home (land donated)

City of Santa
Clarita

$3,400,000

HUD

CDBG

• Family Promise
(Homeless/COVID Households
Support Program)
• Bridge to Home (Intake
Specialist/Homeless Outreach)

City of Santa
Clarita

$155,108

LA County

Innovation
Fund
Grants

• College of the Canyons
Foundation
• Single Mother’s Outreach
• Bridge to Home
• Santa Clarita Grocery
• William S. Hart Education
Foundation
• Salvation Army

City of Santa
Clarita

$126,493

Measure H

• City of Santa Clarita

LAHSA

*$674,986
Total $4,356,587

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Homeless Count Data

In January 2020, 168 persons were identified as
homeless in the SCV at the annual Point-In-Time
(PIT) Count conducted by The Los Angeles
Homeless Services Authority (LAHSA). Of the
168 persons identified, 61 percent were
accounted for as unsheltered and the remaining
39 percent as sheltered.

FIGURE 1: SCV PIT COUNTS 2016-2020 (SOURCE: LAHSA)

Although the SCV has experienced modest overall progress of a 35 percent drop in homelessness from 2019, the results discount the SCV’s efforts in establishing a more accurate count that addresses our “hidden” homeless populations.

For example, in 2019, the Newhall School District, alone, recorded 148 students experiencing homelessness, with
an increase in those seeking resources. These individuals typically locate temporary solutions by staying with family members or friends, living in insecure accommodation,
and/or sleeping in their cars.

For the 2020 PIT Count, the SCV saw a staggering
number, in particular, for those individuals who were
found to be living in their vehicles. Of the 61 percent identified as unsheltered, approximately 74 percent, or 78 persons, were reported living in RV’s/campers, vans, and cars.

61%
Unsheltered
39%
Sheltered

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SUBCOMMITTEES AND

THEIR GOALS

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1. Advocacy and Coordination of Resources

Purpose: The goal of the Advocacy and Coordination of Resources subcommittee is to establish joint efforts in the areas of legislative advocacy and resource coordination. Goals include understanding local, county, state, and federal legislation regarding homelessness; establishing partnership opportunities to support funding and grant efforts for homeless-related services; conducting outreach efforts; continuing the management of the Task Force website; and educating the Task Force on relevant metrics (e.g. PIT Homeless Count data) to raise awareness on the plight of homelessness.

Goals include:
➢ Provide legislative and funding updates;
➢ Increase cross-organizational collaboration;
➢ Promote outreach and publishing media to raise awareness on homelessness; ➢ Instill continued communication through the management of the Task Force website.

Stakeholders:

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Goals

• Provide legislative and funding updates. The creation of an Advocacy and Coordination of Resources subcommittee would help raise awareness on pertinent information regarding legislation and funding/grant opportunities related to homelessness that exist at the city, county, state, and federal levels. Through effective litigation, research and analysis, and coordination, organizations would receive adequate information regarding resources available for homeless- related services, thereby reducing information asymmetry among stakeholders.

SMART GOAL 1 Accomplished By:

Provide updates on legislation,
policies, and grant funding regarding
homeless-related issues.

1. Have subcommittee meet on a monthly
basis to discuss new and pending local,
county, state, and federal legislation and
potential grant funding sources related to
homelessness.

2. Develop a master grant/funding source
list that includes NOFA’s for organizations
to apply to.

3. Complete letters of support/opposition to
constituents on policies related to
homelessness, as needed.

4. Attend candidate forums or town hall
meetings held by legislators to raise
awareness on homelessness.

5. Take proactive steps to develop effective
relationships with legislators who would
potentially support funding efforts for
homeless-related services.

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• Increase cross-organizational collaboration. Many key stakeholders identified cross- collaboration as an important means of understanding each member’s role within the Task Force. As multiple stakeholders provide similar services, it remains unclear as to which organization is in charge of what part of the system. The absence of a cross-agency process results in fragmented decision making, a misalignment of goals, and competition among stakeholders for similar resources and funding streams.

SMART GOAL 2 Accomplished By:

Increase the rate at which more than
75% of the Task Force remains active
and communicates directly with each
other.

1. Conduct inter-agency visits on a
bimonthly basis.

2. Create and manage an ongoing
spreadsheet to update on a quarterly
basis for tasks and assignments; meeting
deadlines; setting timelines for events;
etc., to keep each subcommittee
accountable.

• Promote outreach efforts & production of media. The Task Force should develop community education, engagement, and resources around homelessness to members of the public including, but not limited to, property owners, tenants, business owners, and individuals experiencing homelessness. The creation of educational materials would enhance the visibility of homelessness by which community members may put forth ideas on how to address the issue. In order to humanize the occurrence of homelessness facing our communities, materials should be drafted to inform the public on first-hand experiences homeless individuals face.

SMART GOAL 3 Accomplished By:

Establish a community outreach team
to produce digital and physical
resources of support to educate
community members.

1. Create social media campaigns to raise
awareness on the issue (English/Spanish
translations).

2. Draft a ‘State of the Homeless Report’ on a
yearly basis which includes pertinent data
regarding our sheltered vs. unsheltered
populations (e.g. allocation of veterans,
youth, families, etc.)

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3. Create social media account(s) (e.g.

Instagram, Facebook) for the Task Force
to increase the committee’s visibility and
promote homeless-related services.

4. Coordinate with homeless individuals by
conducting outreach via in-person
contact (e.g. stepping out with City Code
Enforcement or LA Sheriff’s Department
to homeless encampment sites).

• Instill communication through management of website. Many of the developments in homeless-related services are communicated through the Task Force website. Steps should be taken to ensure that all information provided is accurate and updated to assist our homeless population in locating adequate resources for their needs.

SMART GOAL 4 Accomplished By:

Assist in the management of the Task
Force website.

1. Update the Task Force website with a
current list of organizations that provide
homeless-related services.

2. Complete monthly updates/review the
Task Force website and Resource
Guides to ensure accuracy of
information.

3. Create separate subcommittee
content/webpages through the main
Task Force website.

4. Incorporate a dedicated testimonials
page to demonstrate first-hand
homeless experiences and stories;
showcase homeless-related news; etc.

5. Develop a QR Code that lists all
resources available for the homeless
community and place them in strategic
locations such as bus stops, parks,
schools, and libraries throughout the
SCV.

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2. Direct Services

Purpose: The Direct Services Subcommittee is designed to support community members who are at- risk or are experiencing homelessness through the coordination and partnership with direct service providers. Members of the subcommittee assist with the identification of resources such as mental health and substance use disorder services to streamline service delivery for at-risk or homeless individuals, and divert them to service providers who can more appropriately address their needs.

Goals include:
➢ Increase the capacity for mental health services;
➢ Increase the capacity for substance use disorder services.

Stakeholders:

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Goals
• Increase capacity for mental health services. The SCV is in dire need of mental health resources along with other serious medical health services to address the needs of individuals who are at-risk or are experiencing homelessness. As the Los Angeles Department of Mental Health (DMH) controls services such as Severe Mental Illness and/or persons with Substance Use Disorder, stakeholders have a difficult time coordinating resources for individuals in need of those services in the SCV.

SMART GOAL 1 Accomplished By:

Identify resources of support for those
individuals who are at-risk or
experiencing homelessness and need
mental health services.

1. Partner with DMH to provide mental
health training to Task Force
stakeholders.

2. Conduct a Citywide bi-monthly or
quarterly survey on our at-
risk/homeless population to
determine who needs access to
mental health services, permanent
housing, job skills, etc.

3. Identify additional in-patient beds
dedicated to Santa Clarita residents.

4. Conduct community info session(s)
that educate individuals on how to
safely address and approach at-
risk/homeless individuals
experiencing mental health issues.

5. Determine whether there are specific
programs that address the mental
health needs of Transitional Age
Youth (TAY), and partner with
organizations that offer such services
(schools, clinics, etc.)

6. Determine if any funding sources exist
to assist at-risk/homeless, low-income
and/or uninsured individuals in
obtaining complimentary or
affordable mental health services.

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• Increase capacity for substance use disorder services. According to data provided by the Los Angeles Department of Public Health (DPH), per 100,000 individuals, 7.5 persons in the SCV died from unintentional drug overdose for the years 2012-2016. That number has steadily increased to 29 drug-related deaths reported in 2021. The increase is a cause for concern among our at-risk/homeless population who may not have the adequate resources of support to abstain from substance abuse.

SMART GOAL 2 Accomplished By:

Identify homeless resources of support
for those individuals who are at-risk or
experiencing homelessness and need
substance use disorder services.

1. Partner with DPH to provide substance
use disorder training to Task Force
stakeholders.

2. Establish a partnership with counseling
organizations located in the SCV that
provide local residential treatment
centers made available to our at-
risk/homeless population.

3. Establish relationships with wellness
centers in the SCV to offer free
workshops on substance use/prevention
classes and mental health support
groups for at-risk/homeless groups.

4. Determine if any funding sources exist to
assist at-risk/homeless, low-income,
and/or uninsured individuals in
obtaining complimentary or affordable
substance use disorder services.

5. Examine the feasibility of establishing an
inpatient treatment program and
determining what organization would
co-sponsor the program.

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3. Housing

Purpose: The Housing subcommittee is comprised of members with experience in, and knowledge about, developing and financing affordable housing; the housing market in the SCV; and economic development. The purpose of this subcommittee is to identify relevant solutions relating to affordable housing for the SCV’s at-risk/homeless population, and provide recommendations to the Task Force on whether to increase the supply of affordable housing; on strategies to support rental, supportive, and transitional housing; and on funding initiatives to support housing-related services.

Goals include:
➢ Evaluate opportunities for a centralized services location; ➢ Increase access to permanent supportive housing (PSH) options; ➢ Establish the Shared Housing Program.

Stakeholders:

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Goals
• Evaluate opportunities for a centralized services location. A single supportive living environment may be key to having our unhoused population move off the streets. Incorporating a wraparound service model by providing services such as housing, mental health services, workforce training, and case management, all under one roof, would ensure an efficient and structured system responsible for improving the lives of our at-risk/homeless communities.

SMART GOAL 1 Accomplished By:

Identify a centralized location to house all
homeless-related services.

1. Conduct an inventory of vacant
sites to repurpose as the central
homeless services location.

2. Foster relationships with
developers or private equity firms
that may be interested in financing
the repurpose of a building.

3. Coordinate with developers and
the County/State to determine any
financial incentives for developer to
partake in funding the building.

4. Hire a consultant and/or identify a
legal firm that could provide
services in-kind to execute legal
contracts/agreements.

5. Identify organizations that would be
selected and housed in the
centralized location to provide
services.

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• Increase access to permanent supportive housing (PSH) options. As discussed in a previous section of the Plan, the issues associated with steep housing prices within the SCV could cause individuals and families on the lower-income scale to fall into homelessness. If given access to PSH options, the rate at which individuals become unhoused could drop to a subsistent level.

Chronically homeless persons, in particular, who have experienced homelessness for at least a year while struggling with a disabling condition are most in need of PSH. Although the SCV does not have any permanent supportive housing options, several studies find that PSH is effective for those highest risk chronically homeless persons.

SMART GOAL 2 Accomplished By:

Identify permanent supportive housing
solutions to mitigate the effects of our
visibly homeless population.

1. Identify public or private funding
sources for permanent housing creation.

2. Determine whether there are
incentives/programs through the County
(e.g. People Assisting the Homeless
(PATH) and Homeless Incentive Program
(HIP)) available for SCV
landlords/residents.

3. Identify partnerships with housing
providers to review federal, state, and
county policies and provide aid with
supportive housing.

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• Establish the Shared Housing Program. According to the Department of Housing and Urban Development (HUD), home sharing programs provide services that help match an individual who has an extra room or separate unit available with a seeker who is looking for a place to live.

Since 2018, the Task Force has been concerned with creating a shared housing model to add to the stock of attainable, sustainable housing.

SMART GOAL 3 Accomplished By:

Implement the Shared Housing
Program to increase sustainable
housing stock in the SCV.

1. Finalize an online database and website
for the Shared Housing project.

2. Establish one administrator at each
partnering agency to assist home
seekers in submitting their program
application.

3. Implement a marketing program
through social media campaigns, press
releases, local news articles, etc. to raise
awareness on shared housing in the
SCV.

4. Create a Steering Committee
responsible for overseeing the program.

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4. Prevention

Purpose: The Prevention of Resources subcommittee was designed to connect at-risk of homelessness individuals and families with the appropriate community-based resources to assist them with receiving basic needs such as food, clothing, and housing; mental health services; substance use disorder services; domestic violence services; and youth and family services.

Goals include:
➢ Establish the framework for a By Name Registry;
➢ Promote local programs that provide workforce and life skills training; ➢ Increase food security and sustainability.

Stakeholders:

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Goals

• Establish the framework for a By Name Registry. To align with the Plan’s goals, the Task Force should take steps to develop a centralized information tracking system that documents the number of unhoused persons, the specific needs of those persons, and records the local efforts made to match the homeless or at-risk of homelessness individual/family to services needed. If access were to be obtained at the local level, through the Homeless Management Information System (HMIS) platform, the Task Force would be able to streamline and consolidate many of the services that certain stakeholders provide, thereby eliminating duplication of efforts.

SMART GOAL 1 Accomplished By:

Establish the framework for a By Name
Registry to track and verify homeless
data.

1. Identify a lead organization that is
eligible for HMIS access.

2. Identify organizations that should be
involved in the By Name Registry.

3. Have the lead organization apply for
HMIS access to be the point of contact
for referrals to other organizations.

4. Have the organization take LAHSA-
sponsored HMIS training.

5. Once approved, the Task Force should
assist in identifying the source of
funding for the program, whether
through a grant, loan, or other form of
sponsorship.

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• Promote local programs that provide life skills and workforce training. The SCV economy is expected to generate approximately 4,300 jobs in 2022, with full recovery expected to be reached by 2023. Steps should be taken to determine how individuals within our at- risk/homeless communities can reenter the workforce and apply for positions that are suitable for their needs. A variety of evidence-based and promising approaches have emerged to assist transitions into employment for different homeless subpopulations, including Transitional Jobs (TJ), Individualized Placement Support (IPS), Alternative Staffing (AS), and Customized Employment (CE).

SMART GOAL 2 Accomplished By:

Facilitate the hiring of homeless individuals
through workforce and life skills training.

1. Identify partnerships with American
Job Centers of California (AJCC)
representatives to offer life skills
and workforce trainings, and
implementing a training schedule.

2. Coordinate with the City’s
Economic Development
Department, SCVEDC, and local
businesses to conduct job-market
analyses and identify areas where
at-risk/homeless individuals could
potentially find work.

3. Coordinate with LA County’s
WDACS workforce/employment
programs through which at-
risk/homeless individuals within the
SCV can apply for.

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• Increase food security and sustainability. The USDA defines food insecurity as a lack of consistent access to enough food for an active and healthy lifestyle. Per data collected from the Los Angeles Department of Public Health, approximately 18 percent of households in the SCV face food insecurity due to incomes falling below 300 percent of the federal poverty level.

Availability to programs such as CalFresh to low-income residents, of which 51 percent of SCV residents have participated in, provides financial assistance for low-income SCV residents to purchase basic necessities such as food.

SMART GOAL 3 Accomplished By:

Establish local programs to assist in
maintaining food security options in the SCV.

1. Coordinate with the City’s public
libraries to connect at-
risk/homeless individuals with food
assistance programs.

2. Coordinate with the Community
Gardens of Santa Clarita to pursue
a partnership program to ensure
food availability for our at-
risk/homeless communities.

3. Determine whether any grants or
additional nutrition programs exist
to support our vulnerable at-
risk/homeless population.

4. Partner with farmers and/or
vendors at any of the three SCV
farmer’s markets to allocate or
donate a portion of goods to our at-
risk/homeless population.

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Community Task Force on Homelessness Stakeholders

1. Action Family Counseling
Website: actiondrugrehab.com

2. America’s Job Center of California
(AJCC)
Website: ajcc.lacounty.gov

3. Assemblywoman Suzette Valladares
Website: suzettevalladares.com

4. Assistance League
Website: assistanceleaguesantaclarita.org

5. Bethlehem SCV
Website: bethlehemscv.com

6. Bridge to Home
Website: btohome.org

7. California Institute of the Arts
Website: calarts.edu

8. Child & Family Center
Website: childfamilycenter.org

9. Children’s Bureau
Website: all4kids.org

10. Church of Jesus Christ of Latter-Day
Saints
Website: local.churchofjesuschrist.org

14. Family Promise
Website: familypromisescv.org

15. Goodwill
Website: goodwillsocal.org

16. Henry Mayo Newhall Hospital
Website: henrymayo.com

17. LAHSA
Website: lahsa.org

18. Lighthouse Church

19. Los Angeles County
Website: lacounty.gov

20. Newhall School District
Website: newhallschooldistrict.com

21. Northeast Valley Health Corp
Website: nevhc.org

22. Real Life Church
Website: reallifechurch.org

23. Rotary Club
Website: scvrotary.com

24. Saint Kateri Parish
Website: saintkateriparish.org

11. City of Santa Clarita 25. Salvation Army Website: santa-clarita.com Website: santaclarita.salvationarmy.org

12. College of the Canyons 26. Samuel Dixon Family Health Center Website: canyons.edu Website: sdfhc.org

13. Congressman Mike Garcia’s Office 27. Santa Clarita Food Pantry Website: mikegarcia.house.edu Website: scvfoodpantry.org

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28. Santa Clarita Grocery
Website: santaclaritagrocery.org

29. Santa Clarita Valley Chamber of
Commerce
Website: scvchamber.com

30. Santa Clarita Valley Economic
Development Corporation
Website: scvedc.org

31. Santa Clarita Valley Mental Health
Center

32. Santa Clarita Valley Senior Center
Website: myscvcoa.org

33. Santa Clarita Valley Sheriff’s Station
Website: lasd.org

34. Saugus Union School District
Website: saugusud.org

35. Senator Scott Wilk, 21st District
Website: wilk.cssrc.us

36. Single Mother’s Outreach
Website: singlemothersoutreach.org

37. Sulphur Springs Union School District
Website: sssd.k12.ca.us

38. Valencia United Methodist Church
Website: Umcv.org

39. William S. Hart School District
Website: hartdistrict.org

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Appendix A

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CITY OF SANTA CLARITA
City Council
Special Meeting
~Minutes~
Tuesday, May 10, 2022 5:00 PM City Council Chambers

CALL TO ORDER
Mayor Weste called to order the Special Meeting at 5:03 p.m.

ROLL CALL
All Councilmembers were present.

PUBLIC PARTICIPATION FOR AGENDIZED ITEMS
No requests to speak were received.

CLOSED SESSION
Joseph Montes, City Attorney, advised of the need to conduct a Closed Session for the purpose of holding a:

CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Government Code Section 54956.9(d)(1)
Name of case: The City of Santa Clarita v. Canyon View Limited, LP et al.

LASC Case No. PC 058773

CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Potential initiation of litigation pursuant to Government Code Section 54956.9(d)(4) - two matters

RECESS TO CLOSED SESSION - TO BE HELD IN THE CARL BOYER ROOM Mayor Weste recessed the meeting to Closed Session at 5:03 p.m.

RECONVENE TO OPEN SESSION
Mayor Weste reconvened the meeting to Open Session at 6:03 p.m.

CITY ATTORNEY ANNOUNCEMENT
City Attorney Joseph Montes announced that no action was taken in Closed Session that was required to be reported.
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ADJOURN
Mayor Weste adjourned the Special Meeting at 6:03 p.m.
______________________________________
MAYOR
ATTEST:
______________________________________

CITY CLERK
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CITY OF SANTA CLARITA
City Council
Regular Meeting
Joint Meeting with
Board of Library Trustees
Hereinafter the titles Mayor, Mayor Pro Tem, Councilmember, City Manager, City Attorney, and City Clerk may be used also to indicate Mayor/Chair/President, Mayor Pro Tem/Vice-Chair/Vice President, City Manager/Executive Director, City Attorney/Counsel, and City Clerk/Secretary ~Minutes~
Tuesday, May 10, 2022 6:00 PM City Council Chambers

INVOCATION
Mayor Weste delivered the invocation.

CALL TO ORDER
Mayor Weste called to order the Joint Regular meeting of the City Council and Board of Library Trustees at 6:06 p.m.

ROLL CALL
All Councilmembers were present.

FLAG SALUTE
Councilmember Miranda led the flag salute.

APPROVAL OF AGENDA
Motion by Smyth, second by Miranda, to approve the agenda, pulling item 14 for a separate vote, pulling Committee Reports/Councilmember Comments for public comment, and pulling items 1, 3 5, 6, 8, 9, 10, 12, 13, and 14 for public comments.

Hearing no objections, it was so ordered.

RESULT: APPROVED AGENDA
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AWARDS AND RECOGNITIONS
Councilmember Smyth congratulated the SC Flyers 16-years-old and 14-years-old club hockey teams for their championship wins this year and invited the teams to the dais to receive their recognitions and take a photo.

PUBLIC PARTICIPATION
Addressing the Council were Diane Zimmerman regarding the Human Relations Roundtable and water shortage; Glenda Yakal regarding construction by northbound 14 freeway; Elaine Ballace regarding District Attorney George Gascon recall, trash and recycling, districting, and Human Relations Roundtable; Marc Winger, representing the Human Relations Roundtable, regarding the Human Relations Roundtable; Cassidy Butow regarding the Human Relations Roundtable; Gloria Locke regarding the Human Relations Roundtable; Reham Kassem regarding the Human Relations Roundtable; Cindy (no last name provide) regarding the Human Relations Roundtable; and Nancy (no last name provided) regarding Asian American and Pacific Islander Heritage Month and Japanese internment.

COMMITTEE REPORTS/COUNCILMEMBER COMMENTS
Addressing the Council was Nancy (no last name provided).

Mayor Pro Tem Gibbs spoke of attending several events, including Taste of the Town, a tour of the Cemex property, the State of the County, the Latino Business Alliance Cinco de Mayo event, the Man and Woman of the Year, Project Sebastian, and the National Day of Prayer.

Councilmember McLean commented on attending many of the events mentioned by Mayor Pro Tem Gibbs and remarked that May is Mental Health Awareness Month, focusing on raising awareness about the importance of mental health.

Councilmember Smyth made no comments.

Mayor Weste commented on the new Wednesday Farmers Market at the Canyon Country Community Center; spoke of the Triumph Foundation event at the Sport Complex; mentioned attending the Child & Family Center's Taste of the Town fundraiser at Blomgren Ranch; spoke of dedicating the Carl Boyer conference room; mentioned the budget study session with a presentation of a balanced and on-time budget; commented on the State of the County meeting with Supervisor Barger, who supports several issues important to Santa Clarita, including the Juvenile detention location and the inequity of Measure H funds for homeless issues; mentioned that there is a new Man and Woman of the Year; spoke of the planned 4th of July Parade; remarked that Macy's had a Backstage store grand opening; attended the Human Ummah Foundation First Responders Award at the Canyon Country Community Center to support law enforcement and fire fighters; mentioned upcoming events, including the Silver Spurs event that will acknowledge Bruce Fortine, and Santa Clarita Dodger night where Mayor Pro Tem Gibbs will throw out the first pitch; thanked Councilmember McLean for mentioning Mental Health Awareness Month and that Henry Mayo Newhall Hospital is collaborating with Keck for advanced oncology cancer treatment; spoke of the policies of District Attorney George Gascon, including the impacts of the Youth Justice Policy, and encouraged residents to learn more about the recall effort; and requested adjournment in memory of Judy Belue. 4 Packet Pg. 120
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CONSENT CALENDAR
Mayor Weste recused herself from voting on item 14 due to the proximity of her property to the subject matter.

Councilmember Smyth made a motion to approve Consent Calendar Items 1 through 13.

RESULT: APPROVED [UNANIMOUS]
MOVER: Cameron Smyth, Councilmember
SECONDER: Marsha McLean, Councilmember
AYES: Weste, Gibbs, McLean, Miranda, Smyth
ITEM 1
APPROVAL OF REGULAR MEETING MINUTES – The minutes are submitted for approval.

RECOMMENDED ACTION: City Council approve the minutes of the April 26, 2022, Regular Meeting.

Addressing the Council was Missy (no last name provided).

ITEM 2
CHECK REGISTER NO. 09
Check Register No. 09 for the Period 03/25/22 through 04/07/22 and 04/14/22. Electronic Funds Transfers for the Period 03/28/22 through 04/08/22.

RECOMMENDED ACTION:

City Council approve and ratify for payment the demands presented in Check Register No. 09.

Addressing the Council was Santa Rivera.

ITEM 3

READING OF ORDINANCE TITLES
Government Code Section 36934 requires that all ordinances be read in full prior to Council taking action on the ordinance. By listing the ordinance title on the Council agenda, Council may determine that the title has been read.

RECOMMENDED ACTION:

City Council determine that the titles to all ordinances which appear on this public agenda have been read and waive further reading.

Addressing the Council was Santa Rivera.
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ITEM 4

AUTHORIZATION OF THE DESIGN-BUILD PRODUCT DELIVERY METHOD FOR THE

TRANSIT MAINTENANCE FACILITY HYDROGEN FUELING STATION
Authorize the Design-Build product delivery method for design and construction of the Transit Maintenance Facility Hydrogen Bus Refueling Station.

RECOMMENDED ACTION:

City Council authorize the design-build product delivery method for the Transit Maintenance Facility Hydrogen Bus Refueling Station.

ITEM 5

AWARD CONTRACT FOR THE REPLACEMENT OF REAL-TIME BUS INFORMATION UNITS
Award contract to Way Sine for the replacement of real-time bus information units at 57 bus stop locations within the City.

RECOMMENDED ACTION:

City Council:

1. Award contract to Way Sine for the replacement and installation of real-time bus information units in an amount not to exceed $423,108, and authorize a 10 percent project contingency of $42,311, for a total contract amount not to exceed $465,419.

2. Increase Miscellaneous Federal Grants revenue account 700.442409 by $372,335; increase Municipal Operator Service Improvement Program revenue account 700-442207 by $93,084; and appropriate funds in the amount of $465,419 to expenditure account 7007402-516101.

3. Authorize the City Manager or designee to execute all documents or modify the award in the event that issues of impossibility of performance arise, subject to City Attorney approval.

Addressing the Council was Corey Downs.

ITEM 6

ADOPTION OF RESOLUTIONS INITIATING THE ANNUAL LEVY OF SPECIAL DISTRICTS FOR FISCAL YEAR 2022-23
This required procedural matter provides for the adoption of resolutions initiating proceedings for the Annual Levy of Special Districts for Fiscal Year 2022-23.

RECOMMENDED ACTION:

City Council adopt resolutions initiating proceedings for the levy and collection of assessments for Fiscal Year 2022-23 for the Landscape and Lighting District, Drainage Benefit Assessment Areas, the Golden Valley Ranch Open Space Maintenance District, and the Open Space Preservation District.

Addressing the Council was Elaine Ballace.
4 Packet Pg. 122
Minutes Acceptance: Minutes of May 10, 2022 6:00 PM (Consent Calendar)

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Adopted Resolution Nos. 22-15, 22-16, 22-17, and 22-18
ITEM 7

AWARD OF STREETLIGHT MAINTENANCE SERVICE CONTRACT
Award a three-year contract to Taft Electric Company to provide recurring streetlight maintenance services and as-needed services arising from emergencies and/or streetlight knockdown replacements, for a total contract amount not to exceed $1,800,000.

RECOMMENDED ACTION:

City Council:

1. Award a three-year contract to Taft Electric Company to provide recurring streetlight maintenance services for an annual amount of $120,000 plus an additional $480,000 in contract expenditure authority for as-needed services arising from emergencies and streetlight knockdown replacements, for a total contract amount not to exceed $1,800,000.

2. Authorize the City Manager or designee to execute up to two additional one-year renewal options beginning in year four, for an annual amount not to exceed $600,000, plus an appropriate Consumer Price Index, upon request of the contractor.

3. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney approval, and contingent upon the appropriation of funds by the City Council during the annual budget for each fiscal year.

ITEM 8

BACKFLOW INSPECTION AND REPAIR CONTRACT EXPENDITURE AUTHORITY

INCREASE
Staff recommends an increase in expenditure authority to the existing contract with Backflow Prevention Device Testing for as-needed testing and repairs services.

RECOMMENDED ACTION:

City Council:

1. Authorize an ongoing expenditure authority increase to the City’s existing contract with Backflow Prevention Device Testing in the amount of $65,000, for a total annual contract amount not to exceed $237,000.

2. Authorize the City Manager or designee to execute all contracts and associated documents subject to City Attorney approval.

Addressing the Council were Diane Zimmerman and Nancy (no last name provided). 4 Packet Pg. 123
Minutes Acceptance: Minutes of May 10, 2022 6:00 PM (Consent Calendar)

Page 6 ends

ITEM 9

AWARD OF LANDSCAPE DESIGN CONTRACT
Staff recommends award of contract to Pacific Coast Landscape Design to prepare updated Landscape Maintenance District design guidelines and standards.

RECOMMENDED ACTION:

City Council:

1. Award contract to Pacific Coast Landscape Design to prepare updated landscape design guidelines and standards for an amount not to exceed $63,440.

2. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney approval.

Addressing the Council were Diane Zimmerman, Missy, Cindy, and Nancy (no last names provided).

ITEM 10
SAUGUS PHASE 1 - BOUQUET CANYON TRAIL TO CENTRAL PARK, PROJECT C0066 - AWARD DESIGN CONTRACT
This project will provide a Class I off-street bike path beginning 400 feet east of Espuella Drive along the south side of the existing access road of the Bouquet Creek Channel and connecting to Central Park, continuing along the park, and ending at the traffic signal located at the main entrance to the park.

RECOMMENDED ACTION:

City Council:

1. Award the design contract for Saugus Phase I – Bouquet Canyon Trail to Central Park, Project C0066 to Dokken Engineering, in the amount of $146,064 and authorize a contingency in the amount of $14,607 for a total contract amount not to exceed $160,671.

2. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney approval.

Addressing the Council was Nancy (no last name provided).

ITEM 11

RESOLUTION APPROVING THE SHARING OF MEASURE A ANNUAL ALLOCATION

GRANT FUNDS FROM THE LOS ANGELES COUNTY REGIONAL PARK AND OPEN

SPACE DISTRICT FOR THE SANTA CLARITA AQUATIC CENTER POOL DECK

CONCRETE REPAIRS PROJECT
The Los Angeles County Regional Park and Open Space District for Measure A Funded Projects and Programs requires the City Council to authorize and approve the sharing of annual allocation funds by two study areas.

RECOMMENDED ACTION:
4 Packet Pg. 124
Minutes Acceptance: Minutes of May 10, 2022 6:00 PM (Consent Calendar)

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City Council:

1. Adopt a resolution approving the sharing of Measure A annual allocation grant funds from the Los Angeles County Regional Park and Open Space District for the Santa Clarita Aquatic Center Pool Deck Concrete Repairs project.

2. Authorize the City Manager or designee to execute all documents, subject to City Attorney approval.

Adopted Resolution No. 22-19
ITEM 12

THE CUBE - ICE AND ENTERTAINMENT CENTER UPGRADES (THE GRILLE EXPANSION), PROJECT F1025 - APPROVE PLANS AND SPECIFICATIONS AND

AWARD CONSTRUCTION CONTRACT
This item will award a construction contract for the expansion of The Grille at The Cube - Ice and Entertainment Center.

RECOMMENDED ACTION:

City Council:

1. Approve plans and specifications for The Cube – Ice and Entertainment Center Upgrades (The Grille Expansion), Project F1025.

2. Award construction contract to E.L. Engineering Corporation for the Grille expansion at The Cube – Ice and Entertainment Center in the amount of $352,543 and authorize a contingency in the amount of $22,591 for a total contract amount not to exceed $375,134.

3. Appropriate one-time funds in the amount of $150,000 from the American Rescue Plan Act Fund (Fund 228) to expenditure account F1025228-516101.

4. Authorize the City Manager or designee to execute all documents, subject to City Attorney approval.

Addressing Council were Diane Zimmerman, Missy (no last name provided), and Elaine Ballace. 4 Packet Pg. 125
Minutes Acceptance: Minutes of May 10, 2022 6:00 PM (Consent Calendar)

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ITEM 13

SECOND READING OF AMENDMENTS TO THE CITY'S MUNICIPAL CODE TO INCLUDE: AMENDING CHAPTER 11.37 (PEDDLERS, SIDEWALK VENDORS, AND SOLICITORS), AMENDING CHAPTER 14.02 (DEFINITIONS), AND CHAPTER 14.06 (PARKS AND PUBLIC PLACES RULES AND REGULATIONS)
This item will update sections Chapter 11.37 (Peddlers, Sidewalk Vendors, and Solicitors), Chapter 14.02 (Definitions), and Chapter 14.06 (Parks and Public Places Rules and Regulations) of the Santa Clarita Municipal Code, which are consistent with state law and deemed necessary for the preservation of Santa Clarita communities.

RECOMMENDED ACTION:

City Council:

1. Adopt an ordinance entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, AMENDING CHAPTER 11.37 (PEDDLERS,

SIDEWALK VENDORS, AND SOLICITORS) OF THE SANTA CLARITA MUNICIPAL CODE.”

2. Adopt an ordinance entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, AMENDING CHAPTER 14.02 (DEFINITIONS) AND CHAPTER 14.06 (PARKS AND PUBLIC PLACE RULES AND REGULATIONS) OF THE SANTA CLARITA MUNICIPAL CODE.”
Addressing the Council were Elaine Ballace and Missy (no last name provided).

Adopted Ordinance No. 22-5 and 22-6

ITEM PULLED FOR A SEPARATE VOTE
ITEM 14

SECOND READING OF OLD TOWN NEWHALL SPECIFIC PLAN UPDATE Second reading of an ordinance to approve a Specific Plan Amendment for the 2022 Old Town Newhall Specific Plan Update.

RECOMMENDED ACTION:

City Council conduct a second reading and adopt an ordinance entitled: “AN ORDINANCE OF THE CITY OF SANTA CLARITA, CALIFORNIA, APPROVING MASTER CASE 21-089, CONSISTING OF SPECIFIC PLAN AMENDMENT 21-001, AMENDING THE OLD TOWN NEWHALL SPECIFIC PLAN, AS SHOWN IN EXHIBIT A.”
Addressing the Council were Diane Zimmerman, Elaine Ballace, and Corey Downs.

Mayor Weste recused herself from voting on this item due to the proximity of her property to the subject matter.

Adopted Ordinance No. 22-7
4 Packet Pg. 126
Minutes Acceptance: Minutes of May 10, 2022 6:00 PM (Consent Calendar)

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RESULT: APPROVED [4 TO 0]
MOVER: Cameron Smyth, Councilmember
SECONDER: Marsha McLean, Councilmember
AYES: Jason Gibbs, Marsha McLean, Bill Miranda, Cameron Smyth RECUSED: Laurene Weste

PUBLIC HEARINGS
ITEM 15
2022-23 ANNUAL ACTION PLAN AND FOURTH SUBSTANTIAL AMENDMENT TO THE 2020-21 ANNUAL ACTION PLAN
Approval of the 2022-23 Annual Action Plan and fourth Substantial Amendment to the 2020-21 Annual Action Plan for the Community Development Block Grant and Home Investment Partnerships Act Program.

RECOMMENDED ACTION:

City Council approve the 2022-23 Annual Action Plan and fourth Substantial Amendment to the 2020-21 Annual Action Plan for the Community Development Block Grant and Home Investment Partnerships Act Programs.

Mayor Weste opened the Public Hearing.

City Clerk Mary Cusick stated that all notices required by law have been provided.

Community Preservation Manager Michael Villegas provided the staff presentation.

Addressing the Council was Missy (no last name provided) in a neutral position.

Mayor Weste closed the public comments.

Mayor Weste requested that Public Hearings be heard prior to Consent items at the next Council meeting.

RESULT: APPROVED [UNANIMOUS]
MOVER: Jason Gibbs, Mayor Pro Tem
SECONDER: Bill Miranda, Councilmember
AYES: Weste, Gibbs, McLean, Miranda, Smyth
ITEM 16
REVISION TO THE SAND CANYON PLAZA MIXED USE PROJECT (MASTER CASE 14- 077) REGARDING TIMING FOR THE COMMERCIAL COMPONENT CONSTRUCTION This is a request to amend condition PL4 regarding the timing for the completion of the commercial component of the Sand Canyon Plaza Mixed Use Project (Master Case 14-077).

RECOMMENDED ACTION:

City Council:
4 Packet Pg. 127
Minutes Acceptance: Minutes of May 10, 2022 6:00 PM (Consent Calendar)

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1. Receive the staff report, presentation, and conduct the public hearing; and

2. Adopt a resolution approving Master Case 22-055, consisting of Minor Use Permit 22-008 and Development Review 22-014, to modify Condition of Approval PL4 for the Sand Canyon Plaza Mixed Use Project.

Mayor Weste opened the Public Hearing.

City Clerk Mary Cusick stated that all notices required by law have been provided.

Senior Planner Patrick Leclair provided the staff presentation.

Councilmember Smyth commented on the project's long-standing support of the community, appreciates the challenges, but would like to see the project move forward; and Mr. Leclair responded that this is the applicant's last step to finalize before moving forward with building.

Councilmember Miranda concurred with Councilmember Smyth's comments.

No requests to speak were received.

Mayor Weste closed the public comments.

Adopted Resolution No. 22-20
RESULT: APPROVED [UNANIMOUS]
MOVER: Marsha McLean, Councilmember
SECONDER: Bill Miranda, Councilmember
AYES: Weste, Gibbs, McLean, Miranda, Smyth
ITEM 17
HOUSING ELEMENT AND SAFETY ELEMENT UPDATE (MASTER CASE 21-088) As mandated by state law, amendments to the Housing Element and the Safety Element of the General Plan are proposed to ensure compliance with the California Government Code.

RECOMMENDED ACTION:

City Council:

1. Conduct the public hearing and receive testimony from the public; and

2. Adopt a resolution adopting the Negative Declaration prepared for the project and approve Master Case 21-088 (General Plan Amendment 21-001) and adopt the Housing Element and Safety Element Updates.

Mayor Weste opened the Public Hearing.

City Clerk Mary Cusick stated that all notices required by law have been provided. 4 Packet Pg. 128
Minutes Acceptance: Minutes of May 10, 2022 6:00 PM (Consent Calendar)

Page 11 ends

Senior Planner James Chow provided the staff presentation.

Addressing the Council in a neutral position were Joshua Christensen; Chuck Powell, representing Carpenters; Missy (no last name provided); Corey Downs; Crispin Carnasco; Jason Green, representing Southwest Carpenters Local 661; and Santa Rivera.

Addressing the Council in opposition was Diane Zimmerman.

Mayor Weste closed the public comments.

Councilmember Smyth commented on the nuance of the subject matter with many opportunities for public comments in the future and requested that the City Manager clarify the purpose of the updates. Mr. Ken Striplin commented that the Council is identifying areas of zoning to enable housing to be built in certain areas of the City, and the City does not build houses; relating to specific housing projects, the public has an opportunity to engage in the process as housing development occurs. Councilmember Smyth clarified that if a developer proposes an affordable housing project, they would meet with Planning where zones would be identified to be in compliance with Regional Housing Needs Allocation (RHNA) obligations, and the zones do not address workforce or contracts.

Councilmember Miranda commented that RHNA was created by the state due to the current housing shortage and that the state initially determined a much higher allocation number, which Southern California Association of Governments was able to convince the state to reduce 10,000.

Councilmember McLean spoke of other cities that do not want any new building, so Sacramento decided to force new housing; however, Santa Clarita welcomes new, good development to create affordable housing; commented that Sacramento is doing a one-size fits all and taking away local control, which does not work, and allowing single-family lots to create duplexes without the proper infrastructure; and reiterated that the update creates zoning for new development within the City, but does not build houses.

Mayor Weste commented that the last RHNA numbers were increased from 8,322 units to 10,981 units and will continue to increase while developers currently ask to build fewer units and stated there is a need to get good projects on parcels before the state becomes more intrusive.

Mayor Weste commented that state-approved accessory dwelling units (ADUs) are being created by developers who are creating apartment complexes in single-family units and not actually creating affordable housing; and stated that Council needs to give staff flexibility to work with property owners for a project that reflects the character of the community, but may not be inclusive of all amenities the City generally seeks.

Mayor Pro Tem Gibbs commented that the Mayor's points are well taken and inquired if staff is asking or is state mandating the number of units. City Attorney Joseph Montes responded that the state is requiring that a housing inventory is created site by site, and, for planning purposes, every city creates a site inventory that is greater than the RNHA inventory number to create a buffer so that staff and developers have some flexibility. Mayor Pro Tem Gibbs, Councilmember McLean, and staff discussed ADU credit for affordable housing, and Mr. 4 Packet Pg. 129
Minutes Acceptance: Minutes of May 10, 2022 6:00 PM (Consent Calendar)

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Montes commented, regarding SB9 and SB10, that RHNA is not giving the City credit for anticipated development of SB9 and SB10 units because there is not a sufficient track record yet of how those units will perform. The discussion led to further inquiry about the affordable housing density bonus, and Mr. Chow clarified that the affordable housing density bonus is a program that could allow for additional density and help offset potential burdens from an inclusionary housing requirement. Mayor Pro Tem Gibbs commented on the legislators' willingness to penalize cities that do not comply with RHNA.

Mayor Weste commented that the City is not a builder; when the City reviews a project, the City should look at what is the best that can be managed; and the need to change the paradigm before the state forces regulations. Mayor Weste also commented that the state population is decreasing and schools are planning for a dwindling and aging population.

Adopted Resolution No. 22-21
RESULT: APPROVED [UNANIMOUS]
MOVER: Cameron Smyth, Councilmember
SECONDER: Marsha McLean, Councilmember
AYES: Weste, Gibbs, McLean, Miranda, Smyth

PUBLIC PARTICIPATION II
Addressing the Council was Santa Rivera regarding SB 866, clarification of past statements, and the Human Relations Roundtable.

ADJOURNMENT
Mayor Weste adjourned the Regular Meeting in memory of Judy Belue at 9:00 p.m. ______________________________________
MAYOR
ATTEST:
______________________________________

CITY CLERK
4 Packet Pg. 130
Minutes Acceptance: Minutes of May 10, 2022 6:00 PM (Consent Calendar)

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Agenda Item: 5

CITY OF SANTA CLARITA

AGENDA REPORT

CONSENT CALENDAR
CITY MANAGER APPROVAL:

DATE: May 24, 2022
SUBJECT: CHECK REGISTER NO. 10
DEPARTMENT: Administrative Services
PRESENTER: Brittany Houston

RECOMMENDED ACTION

City Council approve and ratify for payment the demands presented in Check Register No. 10.

BACKGROUND

Check Register No. 10 for the Period 04/08/22 through 04/21/22 and 04/28/22 in the aggregate amount of $5,499,715.42 inclusive of Electronic Funds Transfers for the Period 04/11/22 through 04/22/22 in the aggregate amount of $667,824.32.

FISCAL IMPACT

No Fiscal Impact.

ATTACHMENTS
Check Register No. 10 Memo
Check Register No. 10 (available in the City Clerk's Reading File) 5 Packet Pg. 131

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Packet Pg. 132
Attachment: Check Register No. 10 Memo (Check Register No. 10)

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Attachment: Check Register No. 10 Memo (Check Register No. 10)

5.a
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Attachment: Check Register No. 10 Memo (Check Register No. 10)

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Agenda Item: 6

CITY OF SANTA CLARITA

AGENDA REPORT

CONSENT CALENDAR
CITY MANAGER APPROVAL:

DATE: May 24, 2022
SUBJECT: FRANCHISED WASTE HAULERS ANNUAL RATE ADJUSTMENT DEPARTMENT: Neighborhood Services
PRESENTER: Darin Seegmiller

RECOMMENDED ACTION

City Council:

1. Adopt a resolution approving the Eleventh Amendment to the Amended and Restated Agreement between the City of Santa Clarita and USA Waste of California, Inc., for residential solid waste management services, allowing the following adjustments: A) single- family residential standard service rates by 5.00 percent based on Section 6.5.1 Annual Rate Cap, as outlined in the Residential Franchise Agreement, and B) multi-family residential rates and special services by 3.18 percent, based on both the formula outlined in the Residential Franchise Agreement, subject to City Attorney approval.

2. Adopt a resolution approving the Tenth Amendment to the Amended and Restated Agreement between the City of Santa Clarita and Burrtec Waste Industries, Inc., for commercial solid waste management services, allowing the following adjustments: A) solid waste and organic rates by 3.38 percent, based on the formula outlined in the Commercial Franchise Agreement, subject to City Attorney approval.

BACKGROUND
In November 2003, the City Council selected USA Waste of California, Inc. (Waste Management), as the exclusive hauler for residential solid waste management services and Burrtec Waste Industries, Inc. (Burrtec), as the exclusive hauler for commercial solid waste management services.

Pursuant to their respective franchise agreements, the haulers may request rate adjustments each year. The Annual Rate Adjustment is calculated by using a formula that is based on price indices, including labor, fuel, equipment, and disposal.

6 Packet Pg. 135

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Both of the agreements include an Annual Rate Cap that limits the total adjustment to 5.00 percent per year. Furthermore, the agreements contain a Santa Clarita Valley Rate Cap, which states that the City of Santa Clarita (City) single-family residential rates shall remain below the rates of franchised collection services provided by the County of Los Angeles (County) in unincorporated Santa Clarita Valley. Any unrealized increases as a result of these caps may be carried forward until they are fully applied.

Burrtec and Waste Management have submitted requests for annual rate adjustments in rate year 2022-23.

Waste Management Single-Family Residential Rates 2022-23

In past years, increases to the single-family rates have been restricted by the Santa Clarita Valley Rate Cap and the Annual Rate Cap. These rate caps have resulted in an unrealized rate deficit of

14.47 percent. Calculation of the 2022-23 Annual Rate using the methodology in the Franchise Agreement would increase the rate by 3.18 percent.

On March 24, 2022, Waste Management requested a rate increase of 3.19 percent plus 1.81 percent of the unrealized carryover deficit, to equal the 5.00 percent maximum rate adjustment.

The .01 percent difference between the recommended rate adjustment and Waste Management's request is due to a rounding difference, which has since been agreed upon by both City and Waste Management staff. Staff recommends the City Council approve a 5.00 percent increase to the City’s single-family residential rate for the 2022-23 rate year, consistent with the Annual Rate Cap, Section 6.5.1 of the Agreement. This increase would include a 1.82 percent adjustment from the cumulative carryover adjustment for residential services that have not been realized since 2015. If approved, the monthly single-family service rate would increase from $25.06 per month to $26.31 per month, which is still below the Los Angeles County unincorporated single- family rate of $28.20 per month.

Waste Management - Single-Family Residence Waste Services

Standard Rate Methodology 2022-23 3.18%
Cumulative Carryover Adjustment for Residential Cart Service from 2015-21 1.82% Total Proposed Adjustment for Residential Cart Service: 5.00%

Waste Management Multi-Family Residential Rates 2022-23

Waste Management also requested an annual rate adjustment for multi-family and special services. Using the prescribed methodology, the rate adjustment has been calculated to be 3.18 percent. Staff recommends the City Council approve a 3.18 percent adjustment to the multi- family residential rates and special services.

Burrtec Commercial Rates 2022-23

On March 31, 2022, Burrtec requested a 3.38 percent rate increase for commercial services, which is consistent with the annual rate adjustment methodology identified in the Franchise 6 Packet Pg. 136

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Agreement. The methodology is based on national price indices such as labor, fuel, equipment, and disposal. Staff recommends the City Council approve a 3.38 percent rate increase for commercial services, which would bring the cost of servicing a three-yard bin, one time per week, from $131.41 to $135.85 per month.

Burrtec Residential Rates 2022-23

The California Public Resources Code governs the continuation of solid waste services after an annexation and grants the preexisting service provider with the option to continue servicing the given area. On December 10, 2019, the City Council approved and entered into a Continuation Rights Agreement with Burrtec to provide waste services to three newly annexed areas: Plum Canyon, Skyline Ranch, and North Sand Canyon.

The terms of this agreement authorize the administrative approval of rate adjustments on an annual basis, as prescribed by the County’s methodology, based on national price indices such as labor, fuel, and disposal. Per the agreement, Burrtec must provide all customers a minimum of 30-days' written notice of the implementation of changes in any service fees.

At this time, City staff does not have the rate adjustment data from the County to determine the rate for year 2022-23.

The final adjusted rates will not be implemented until the new County rates take effect. Once the rate adjustment for the County has been finalized, a memo will be provided to the City Council, detailing the single-family standard service rates for the annexed areas.

ALTERNATIVE ACTION
Other action as determined by the City Council.

FISCAL IMPACT

None by this action

ATTACHMENTS
Waste Management Resolution - Eleventh Amendment
Burrtec Resolution - Tenth Amendment
Waste Management Methodology (available in the City Clerk's Reading File) Waste Management Request (available in the City Clerk's Reading File) Burrtec Methodology (available in the City Clerk's Reading File) Burrtec Request (available in the City Clerk's Reading File) 6 Packet Pg. 137
1 RESOLUTION 22 - _______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA,

CALIFORNIA, APPROVING THE ELEVENTH AMENDMENT OF THE AMENDED

AND RESTATED AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND USA WASTE OF CALIFORNIA, INC., FOR RESIDENTIAL SOLID WASTE

MANAGEMENT SERVICES

WHEREAS, the City of Santa Clarita (City) is empowered under Section 7 of Article 11 of the California Constitution to make and enforce, within its limits, all police and sanitary ordinances and regulations not in conflict with general laws; and

WHEREAS, in partial implementation of Section 7 of Article 11 of the California Constitution, California Public Resources Code Section 40059 authorizes the City to determine all aspects of handling of solid waste that are of local concern, including the frequency of collection, means of collection and transportation, level of services and nature, location, and extent of waste handling services; and

WHEREAS, on November 20, 2003, the City and USA Waste of California Inc., (Waste Management), entered into that certain Agreement Between the City of Santa Clarita and USA Waste of California, Inc., for Residential Solid Waste Management Services (Agreement); and

WHEREAS, on May 24, 2011, the City Council directed staff to execute an Amended and Restated Agreement Between the City of Santa Clarita and USA Waste of California, Inc.; and

WHEREAS, pursuant to Section 6.3 of the Amended and Restated Agreement Between the City of Santa Clarita and USA Waste of California, Inc., Waste Management is entitled to pursue an annual adjustment to its maximum rates for the rate year commencing on July 1, 2022 to June 30, 2023; and

WHEREAS, the City and Waste Management desire to amend the Amended and Restated Agreement Between the City of Santa Clarita and USA Waste of California, Inc., by increasing the maximum rates as outlined in Sections 6.3 and 6.4 of the Amended and Restated Agreement Between the City of Santa Clarita and USA Waste of California, Inc.

NOW, THEREFORE, the City Council of the City of Santa Clarita, California, does hereby resolve as follows:

SECTION 1. The Eleventh Amendment of the Amended and Restated Agreement Between the City of Santa Clarita and USA Waste of California, Inc., for Residential Solid Waste Management Services (Eleventh Amendment), a copy of which is attached hereto, is hereby approved. The City Manager is authorized to execute the Eleventh Amendment on behalf of the City.

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Attachment: Waste Management Resolution - Eleventh Amendment (FRANCHISED WASTE HAULERS ANNUAL RATE ADJUSTMENT) 2 SECTION 2. The City Clerk shall certify to the adoption of this resolution.

PASSED, APPROVED, AND ADOPTED this 24th day of May 2022

______________________________
MAYOR

ATTEST:

_______________________________

CITY CLERK

DATE:__________________________

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.

CITY OF SANTA CLARITA )

I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution 22- was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 24th day of May 2022, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

______________________________

CITY CLERK

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Attachment: Waste Management Resolution - Eleventh Amendment (FRANCHISED WASTE HAULERS ANNUAL RATE ADJUSTMENT) 3 ELEVENTH AMENDMENT OF THE AMENDED AND RESTATED

AGREEMENT BETWEEN THE CITY OF SANTA CLARITA, CALIFORNIA, AND USA WASTE OF CALIFORNIA, INC., FOR RESIDENTIAL

SOLID WASTE MANAGEMENT SERVICES

This ELEVENTH AMENDMENT OF THE AMENDED AND RESTATED

AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND USA WASTE OF CALIFORNIA, INC., (WASTE MANAGEMENT ) FOR RESIDENTIAL SOLID WASTE MANAGEMENT SERVICES, (Eleventh Amendment) is entered into this day of 2022, between the City of Santa Clarita, California, a California municipal corporation (City) and USA Waste of California, Inc., a California corporation to amend that certain Amended and Restated Agreement Between the City of Santa Clarita and USA Waste of California, Inc., for Residential Solid Waste Management Services.

RECITALS

WHEREAS, the City is empowered under Section 7 of Article 11 of the California Constitution to make and enforce, within its limits, all police and sanitary ordinances and regulations not in conflict with general laws; and

WHEREAS, on November 20, 2003, the City and USA Waste of California, Inc., (Waste Management) entered into that certain Agreement Between the City of Santa Clarita and USA Waste of California, Inc., (Waste Management) for Residential Solid Waste Management Services; and

WHEREAS, on May 24, 2011, the City Council directed staff to execute an Amended and Restated Agreement Between the City of Santa Clarita and USA Waste of California, Inc.; and

WHEREAS, pursuant to Section 6.3 of the Amended and Restated Agreement, Waste Management is entitled to pursue an annual adjustment to its maximum rates for the rate year commencing on July 1, 2022; and

WHEREAS, the City and Waste Management desire to amend the Amended and Restated Agreement by adjusting the maximum rates as outlined in Section 6.3 and 6.4 of the Amended and Restated Agreement.

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Attachment: Waste Management Resolution - Eleventh Amendment (FRANCHISED WASTE HAULERS ANNUAL RATE ADJUSTMENT) 4 NOW, THEREFORE, the City and Waste Management in consideration of their mutual promises, amend the Amended and Restated Agreement as follows:

SECTION 1. Exhibit 2 of the Amended and Restated Agreement shall be amended to contain the following maximum rates commencing July 1, 2022:
• Standard Service Rate
• Reduced Rate for no Green waste services
• Reduced Rate for Super Saver/Senior/Lifeline Customers • Mobile Home Service Rate
$26.31 per month
$24.31 per month
$21.06 per month
$19.74 per month

The multi-family rates will be as follows:

Container
Size
Number of Weekly Pickups
1 2 3 4 5 6 7

1.5 yd³ $85.07 $170.13 $255.23 $340.25 $425.33 $510.39 $595.47 2 yd³ $90.68 $181.34 $272.00 $362.72 $453.34 $544.02 $634.70 3 yd³ $101.88 $203.71 $305.62 $407.49 $509.34 $611.25 $713.10 4 yd³ $113.04 $226.17 $339.19 $452.26

$565.32 $678.44 $791.49

Special Services Costs
Street Litter Carts $25.01 per set per month
Restart Charge $25.45
Refuse Overage Extra Pickup $8.50 per pickup
Extra Trash Cart $16.96 month
Locking Bin $16.97 per bin per month
Bulk Billing Discount 8%
Extra Bulky Item Pickup $33.95 per pickup
Additional Bin Cleanings $59.38 per cleaning
Extra Bin Empties $59.38 per empty
Compactor Rates 2x comparable bin rate
Late Fees 1.5% per month
Emergency Services $118.82 per hour
Manure Collection 100% of comparable
multifamily bin refuse rate Prepayment Discount One month free with 11 months prepaid

SECTION 2. Except as expressly amended herein, all provisions of the Amended and Restated Agreement are and remain in full force and effect.

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Attachment: Waste Management Resolution - Eleventh Amendment (FRANCHISED WASTE HAULERS ANNUAL RATE ADJUSTMENT) 5 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

CITY OF SANTA CLARITA
A California Municipal Corporation

Kenneth W. Striplin
City Manager

ATTEST:

Mary Cusick
City Clerk
APPROVED AS TO FORM:

Joseph Montes
City Attorney

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Attachment: Waste Management Resolution - Eleventh Amendment (FRANCHISED WASTE HAULERS ANNUAL RATE ADJUSTMENT)

WASTE MANAGEMENT

By: _
[CEO, President, Chairman of the Board or any
Vice President]

And By:
[The Secretary, any assistant secretary, CFO
or any assistant treasurer]

State of California )
)
County of )

On before me, ,
Date Here Insert Name and Title of the Officer

Name(s) of Signer(s)
,

who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Place Notary Seal Above

Signature
Signature of Notary Public

6.a
Packet Pg. 143
Attachment: Waste Management Resolution - Eleventh Amendment (FRANCHISED WASTE HAULERS ANNUAL RATE ADJUSTMENT) 1 RESOLUTION 22- _______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA,

CALIFORNIA, ADOPTING THE TENTH AMENDMENT OF THE AMENDED

AND RESTATED AGREEMENT BETWEEN THE CITY OF SANTA
CLARITA AND BURRTEC WASTE INDUSTRIES, INC., FOR

COMMERCIAL SOLID WASTE MANAGEMENT SERVICES

WHEREAS, on November 20, 2003, the City and Burrtec Waste Industries, Inc. (Burrtec) entered into that certain Agreement Between the City of Santa Clarita and Burrtec Waste Industries, Inc., for Commercial Solid Waste Management Services; and

WHEREAS, on May 24, 2011, the City Council directed staff to execute an Amended and Restated Agreement with Burrtec; and

WHEREAS, pursuant to Section 6.3 of the Amended and Restated Agreement, Burrtec is entitled to pursue an annual adjustment to its maximum rates for the rate year commencing on July 1, 2022, to June 30, 2023; and

WHEREAS, AB1826 requires that jurisdictions implement an organics recycling program for businesses, that includes education, outreach, monitoring activities and reporting annually to CalRecycle; and

WHEREAS, the City and Burrtec desire to amend the Amended and Restated Agreement by increasing the maximum rates as outlined in Sections 6.3 and 6.4 of the Agreement Between the City of Santa Clarita and Burrtec Waste Industries, Inc., for Commercial Solid Waste Management Services.

NOW, THEREFORE, the City Council of the City of Santa Clarita, California, does hereby resolve as follows:

SECTION 1. The Tenth Amendment of the Amended and Restated Agreement Between the City of Santa Clarita and Burrtec Waste Industries, Inc., for Commercial Solid Waste Management Services (Tenth Amendment), a copy of which is attached hereto is hereby approved. The City Manager is authorized to execute the Tenth Amendment on behalf of the City.

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Packet Pg. 144
Attachment: Burrtec Resolution - Tenth Amendment (FRANCHISED WASTE HAULERS ANNUAL RATE ADJUSTMENT) 2 SECTION 2. The City Clerk shall certify to the adoption of this resolution.

PASSED, APPROVED, AND ADOPTED this 24th day of May 2022.

______________________________
MAYOR
ATTEST:
_______________________________

CITY CLERK

DATE:__________________________

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.

CITY OF SANTA CLARITA )

I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution 22-_____ was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 24th day of May 2022, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

______________________________

CITY CLERK

6.b
Packet Pg. 145
Attachment: Burrtec Resolution - Tenth Amendment (FRANCHISED WASTE HAULERS ANNUAL RATE ADJUSTMENT) 3 TENTH AMENDMENT OF THE AMENDED AND RESTATED AGREEMENT

BETWEEN THE CITY OF SANTA CLARITA, CALIFORNIA, AND
BURRTEC WASTE INDUSTRIES, INC., FOR COMMERCIAL SOLID

WASTE MANAGEMENT SERVICES

This TENTH AMENDMENT OF THE AMENDED AND RESTATED

AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND BURRTEC WASTE INDUSTRIES, INC., FOR COMMERCIAL SOLID WASTE MANAGEMENT SERVICES, (Tenth Amendment) is entered into this day of 2022, between the City of Santa Clarita, California, a California municipal corporation (City) and Burrtec Waste Industries Inc., a California corporation (Burrtec) to amend that certain Amended and Restated Agreement Between the City of Santa Clarita and Burrtec Waste Industries, Inc., for Commercial Solid Waste Management Services.

RECITALS

WHEREAS, on November 20, 2003, the City and Burrtec Waste Industries, Inc. , entered into that certain Agreement Between the City of Santa Clarita and Burrtec Waste Industries, Inc. , for Commercial Solid Waste Management Services; and

WHEREAS, on May 24, 2011, the City Council directed staff to execute an Amended and Restated Agreement with Burrtec; and

WHEREAS, pursuant to Section 6.3 of the Amended and Restated Agreement, Burrtec is entitled to pursue an annual adjustment to its maximum rates for the rate year commencing on July 1, 2022; and

WHEREAS, AB 1826 requires that jurisdictions implement an organics recycling program for businesses, that includes education, outreach, monitoring activities and reporting annually to CalRecycle; and

WHEREAS, the City and Burrtec desire to amend the Amended and Restated Agreement by adjusting the maximum rates as outlined in Section 6.3 and 6.6 of the Amended and Restated Agreement.

6.b
Packet Pg. 146
Attachment: Burrtec Resolution - Tenth Amendment (FRANCHISED WASTE HAULERS ANNUAL RATE ADJUSTMENT) 4 NOW, THEREFORE, the City and Burrtec in consideration of their mutual promises, amend the Amended and Restated Agreement as follows:

SECTION 1. Amend Section 6.2 to read as follows.

6.2 Maximum Rates
The rates Company bills to customers shall not exceed the Maximum Rates set forth in Exhibit 2.

Maximum Rates shall be retitled as “Maximum Rates” and shall be amended to contain The following maximum rates commencing July 1, 2022:

Container Size
Number of Weekly Trash Pickups
1 2 3 4 5 6
32-gal $57.88 $104.62 $173.71 $231.60 $289.53 $347.44
90-gal $68.06 $123.56 $204.10 $272.17 $340.21 $408.27

1.5 yd $105.66 $206.95 $308.23 $408.62 $508.99 $609.44 2 yd $115.25 $225.92 $336.61 $446.43 $556.16 $665.96 3 yd $135.85 $266.70 $397.57 $527.50 $657.33 $787.24 4 yd $173.47 $340.74 $507.95 $673.92 $839.90 $1,005.87 6 yd $232.56 $457.08 $681.67 $904.58 $1,127.51 $1,350.48

Container Size
Number of Weekly Green Waste Pickups
1 2 3 4 5 6
3 yd $101.89 $200.02 $298.17 $395.61 $492.99 $590.43

Container Size
Number of Weekly Organic Pickups
1 2 3 4 5 6
65-gal $127.28 $236.72 $381.94 $509.23 $636.56 $763.91 2 yd $244.86 $482.62 $720.46 $956.92 $1,193.25 $1,429.67

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Packet Pg. 147
Attachment: Burrtec Resolution - Tenth Amendment (FRANCHISED WASTE HAULERS ANNUAL RATE ADJUSTMENT) 5 Special Services Costs
Locking Bin $15.43 per bin per month
Commercial Bulky Item Pick-Up $30.89 per item
Additional Bin Cleaning $54.07 per cleaning
Extra Bin Pick-Up $54.07 per bin
Extra Trash Cart Pick-Up $38.26 per barrel
Compactor Rates 2x comparable rate
Late Fee 1.5% per month
Emergency Services $106.95 per hour

SECTION 2. Except as expressly modified in this Tenth Amendment, all other provisions of the Agreement are and remain in effect

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

CITY OF SANTA CLARITA
A California Municipal Corporation

Kenneth W. Striplin
City Manager

ATTEST:

Mary Cusick
City Clerk
APPROVED AS TO FORM:

Joseph Montes
City Attorney

6.b
Packet Pg. 148
Attachment: Burrtec Resolution - Tenth Amendment (FRANCHISED WASTE HAULERS ANNUAL RATE ADJUSTMENT) 6 BURRTEC WASTE INDUSTRIES, INC.

By:
[CEO, President, Chairman of the Board
or any Vice President]

And By:
[The Secretary, any assistant secretary, CFO
or any assistant treasurer]

State of California )
)
County of )

On before me, ,
Date Here Insert Name and Title of the Officer

Name(s) of Signer(s)
,

who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Place Notary Seal Above

Signature
Signature of Notary Public

6.b
Packet Pg. 149
Attachment: Burrtec Resolution - Tenth Amendment (FRANCHISED WASTE HAULERS ANNUAL RATE ADJUSTMENT)

Page 1 ends

Agenda Item: 7

CITY OF SANTA CLARITA

AGENDA REPORT

CONSENT CALENDAR
CITY MANAGER APPROVAL:

DATE: May 24, 2022
SUBJECT: APPROVAL OF FINAL TRACT MAP, ACCEPTANCE OF OFFERS

OF DEDICATION, REJECTION OF IRREVOCABLE OFFER OF
DEDICATION FOR TRACT NO. 60922-06 (SKYLINE RANCH), AND

APPROVAL OF LOT LINE ADJUSTMENT FOR SKYLINE RANCH
PARK
DEPARTMENT: Public Works
PRESENTER: Amalia Marreh

RECOMMENDED ACTION

City Council:

1. Approve the Final Tract Map for Tract No. 60922-06.

3. Reject the irrevocable offer of dedication and grant in fee simple all of Lot 150 for flood control purposes.

5. Make findings as follows: this project is consistent with the provisions of Sections 66474 and 66474.1 of the Subdivision Map Act and should be approved.

6. Instruct the Director of Administrative Services to endorse the Special Assessment Statement 7 Packet Pg. 150

Page 2 ends

Santa Clarita City CouncilMay 24, 2022

Santa Clarita City Council
May 24, 2022