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HomeMy WebLinkAbout1994/01/19 - Agenda Packet CITY COUNCIL AGENDA CITY OF RANCHO CUCAMONGA REGULAR MEETINGS 1st and 3rd Wednesdays - 7:00 p.m. January 19, 1994 Civic Center Council Chambers 10500 Civic Center Drive Rancho Cucamonga, California 91730 City Councilmembers Dennis L. Stout, Mayor William J. Alexander, Councilmember Charles J. Buquet, Councilmember Rex Gutierrez, Councilmember Diane Willj~ms, Councilmember Jack Lam, City Manager James L. Markman, City Attorney Debra J. A{]~ms, City Clerk City Office: 989-1851 PAGE  City Council Agenda January 19, 1994 1 All items submitted for the City Council Agenda must be in writing. The deadline for submitting these items is 6:00 p.m. on the Tuesday prior to the meeting. The City Clerk's Office receives all such items. A. CALL TO ORDER 1. Roll Call: Buquet , Alexander__,Stout Willtams , and Gutierrez B. ANNOUNCEMENTS/PRESENTATIONS C. COMMUNICATIONS FROM THE PUBLIC This is Ihe time and place for the general public to address the City Council. State law prohibils the City Council from addressing any issue not previously included on the Agenda. The City Council may receive testimony and set the mallet for a subsequent meeting. Comments are to be limited to five minutes per individual. D, (~ONSENT CALENDAR The following Consent Calendar items are expected to be routine and non-controversial. They will be acted upon by the Council at one time without discussion. Any item may be removed by a Councilmember or member of the audience for discussion. 1. Approval of Minutes: January 5, 1994 2. Approval of Warrants, Register Nos. 12/29/93 and 1/5/94; and ]- Payroll ending 12/16/93 for the total amount of $1,882,716.07. 3. Approval to receive and file current Investment Schedule as of 7 December 31, 1993. 4. Approval to authorize the advertising of the 'Notice Inviting Bids" 10 for the Hellman Avenue at Ninth Street Improvement Project, to be funded from Street Rehabilitation, Account No. 09-4637-9304. PAGE '~ City Council Agenda January 19, 1994 2 RESOLUTION NO. 94-006 11 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING PLANS AND SPECIFICATIONS FOR THE "HELLMAN AVENUE AT NINTH STREET iMPROVEMENTS' IN SAID CITY AND AUTHORIZING AND DIRECTING THE CITY CLERK TO ADVERTISE TO RECEIVE BIDS 5. Approval of the Design of the City Seal for the City of Rancho 15 Cucamonga. 6. Approval to extend Camcast Cable T.V. franchise. 17 RESOLUTION NO. 91-012-0 18 A RESOLUTION OF THE CiTY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, EXTENDING COUNTY OF SAN BERNARDINO FRANCHISE LICENSE WITH CaMCAST CABLE T.V. FOR 90 DAYS UPON EXPIRATION OF CURRENT LICENSE WITHIN THE CITY OF RANCHO CUCAMONGA 7. Approval to appropriate and expend S30,000 for the installation of 19 a Touch Pad Lighting Control System at Red Hill and Heritage Community Parks. to be funded from Account No. gO-4637-Q222. 8. Approval of a Resolution allowing the issuance by the Marks 20 Group, Incorporated, of $30 million of equity capital to Institutional Investors. RESOLUTION NO. 94-007 21 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA. APPROVING THE ISSUANCE BY THE MARKS GROUP, INCORPORATED OF $30 MILLION OF EQUITY CAPITAL TO INSTITUTIONAL INVESTORS 9. Approval to execute an agreement (CO 94-006) for payment of 23 fees for Parcel Map 13724, located on the south side of Foothill Boulevard. between Interstate 15 and Etiwanda Avenue, submitted by Foothill Marketplace Partners. 10. Approval tO award and authorization for execution of contract 25 (CO 94-007) for Vinmar Avenue from Ninth Street to Chaffee Street Alley Improvement Project to IPS Services, Incorporated. for the amount of S85.897.00 ($78,088.39 plus 10% contingency). to be funded from CDBG Account No. 28-4333-9329. City Council Agenda January 19, 1994 3 11. Approval to award and authorization for execution of contract 29 (CO 94-008) for Traffic Signals and Safety Lighting at the intersection of Haven Avenue and Banyan Street to IPS Services, Incorporated, for the amount of S202,083.00 (S183,712.20 plus 10% contingency), to be funded from TDA Article 8, Account No. 12- 4637-9204. 12. ApprovaJ to renew and execute Facility Use Agreement (CO 93- 32 023) between Chaffey Community College and the City for Recreational Uses in the amount of S25,000.00 to cover maintenance and operations expenses. 13. Approval to execute Improvement Agreement Extension for 37 Tract 13717, located on the northeast corner of Church Street and Spruce Avenue, submitted by Lewis Homes. RESOLUTION NO. 94-008 39 A RESOLUTION OF THE CITY COUNCIL QF THE CITY OF RANCHO CUCAMONGA, CAUFORNIA, APPROVING IMPROVEMENT AGREEMENT EXTENSION AND IMPROVEMENT SECURITY FOR TRACT 13717 14. Approval to execute Improvement Agreement Extension for 40 TraCt 14192-1, located on the east side of Hellman Avenue south of 19th Street. submitted by Hix Development. RESOLUTION NO. 94-[X]9 42 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING IMPROVEMENT AGREEMENT EXTENSION AND IMPROVEMENT SECURITY FOR TRACT 14192-1 15, Approval to execute Improvement Agreement Extension for 43 Tracts 14379 and 14380, located on the northwest corner of Etiwanda Avenue and 24th Street, submit'fed by Watt Homes, RESOLUTION NO. 94-010 45 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING IMPROVEMENT AGREEMENT EXTENSION AND IMPROVEMENT SECURITY FOR TRACTS 14379 AND 14380 PAGE ,~ City Council Agenda January 19, 1994 4 16. Approval to accept the Required Street Improvements for Parcel 46 Map 12959-1 which have been completed in an acceptable manner, accept the Maintenance Guarantee Bond in the amount of S134,000.00. authorize the City Engineer to file a Notice of Completion, and authorize the City Clerk to release the Faithful Performance Bond in the amount of $1,340,064.00. RESOLUTION NO. 94-011 47 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ACCEPTING THE PUBLIC IMPROVEMENTS FOR PARCEL MAP 12959- 1 AND AUTHORIZING THE FILING OF A NOTICE OF COMPLETION FOR THE WORK 17. Approval to accept the Required Improvements for the Jersey 48 Boulevard Railroad Crossing which have been Completed in an acceptable manner, authorize the City Engineer to file a Notice of Completion, and authorize the City Clerk to release the Faithful Performance Cash Security in the amount of S50,000.00. RESOLUTION NO. 94-012 49 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ACCEPTING THE PUBLIC IMPROVEMENTS FOR THE JERSEY BOULEVARD RAILROAD CROSSING AND AUTHORIZING THE FILING OF A NOTICE OF COMPLETION FOR THE WORK 18. Approval to release Maintenance Guarantee Bond for Milliken 50 Avenue-Banyan Street Landscaping and Storm Drain Improvements associated with Tracts 13748, 13857 and 13858 located at the southwest corner of Milliken Avenue and Banyan Street. 19. Approval to accept the Milliken Avenue Bike Route and Base Line 51 Road Bike Lane, Phase 1, Contract No. CO 93-029, as Complete, Retain Bond and authorize the City Engineer to file a 'Notice of Completion ' and approve the final contract amount of $1 ? ,624.36, RESOLUTION NO. 94-013 52 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ACCEPTING THE PUBLIC IMPROVEMENTS FOR MILLIKEN AVENUE BIKE ROUTE AND BASE LINE ROAD BIKE LANE, PHASE 1, AND AUTHORIZING THE FILING OF A NOTICE OF COMPLETION FOR THE WORK PAGE  City Council Agenda January 19, 1994 5 20. Approval to accept the Resurfacing of Equestrian Rinks at 53 Heritage Community Park. Contract No. CO 93-042, as Complete, Retain Bond and authorize the City Engineer to file a ~Notice of Completion' end approve the final contract <~mount of $54,543.35. RESOLUllON NO. 94-014 54 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA. ACCEPTING THE PUBLIC IMPROVEMENTS FOR RESURFACING OF EQUESTRIAN RINKS AT HERITAGE COMMUNITY PARK AND AUTHORIZING THE FILING OF A NOTICE OF COMPLETION FOR THE WORK 21. Approval to accept the contract for Asphalt Overlay on Helms 55 Avenue, Lucas Ranch Road, onci Santa Anita Avenue, Contract No. CO 93-053, as Complete, Retain Bond and authorize the City Engineer to file a 'Notice of Completion' and approve the final contract amount of S93,979.40. RESOLUTION NO. 94-015 56 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA. CALIFORNIA, ACCEPTING THE PUBLIC IMPROVEMENTS FOR CONTRACT FOR ASPHALT OVERLAY ON HELMS AVENUE, LUCAS RANCH ROAD, AND SANTA ANITA AVENUE, AND AUTHORIZING THE FILING OF A NOTICE OF COMPLETION FOR THE WORK E, CONSENT ORDINANCES The followin9 Ordinances have had public hearings at the time of first reading. Second readings are expected to be routine and non-controversial, They will be acted upon by the Council at one time without discussion, The City Clerk will read the title, Any item can be removed for discussion. No Items Su13milled. I PAGE  City Council Agenda January 19, 1994 6 F. ADVERTISED PUBLIC HEARINGS The following items have been advertised and/or posted as public hearings as required by law. The Chair will open the meeting to receive public testimony. 1. CONSIDERATION TO ESTABLISH AN UNDERGROUND UTIUTY DISTRICT 57 NO. 94-01. ALONG ROCHESTER AVENUE FROM FOOTHILL BOULEVARD TO ARROW ROUTE. USING RULE 20A FUNDS RESOLUTION NO. 94-016 59 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, FORMING UNDERGROUND UTILITY DISTRICT NO. 94-01, ALONG ROCHESTER AVENUE FROM FOOTHILL BOULEVARD TO ARROW ROUTE G. PUBLIC HEARINGS The following items have no legal publication or posting requirements. The Chair will open the meeting to receive public testimony. No Items Submitted. H. CITY MANAGER'~ STAFF REPORTS The following items do not legally require any public testimony, although the Chair may open the meeting for public input. 62 1. CONSIDERATION TO FORM YOUTH ACCOUNTABILITY BOARD 2. CONSIDERATION TO ADOPT A RESOLUTION TO REGULATE BASIC 71 TIER CABLE RATES AND RELATED EQUIPMENT COSTS AS ALLOWED BY THE CABLE TELEVISION CONSUMER PROTECTION AND COMPETR'ION ACT OF 1992 (Continued from October 20, 1993) RESOLUllON NO. 93-189 73 A RESOLUTION OF THE CITY COUNCIL OF THE CrTY OF RANCHO CUCAMONGA, CALIFORNIA. ADOPTING PROCEDURES PERMITrING THE REGULATION OF CABLE TELEVISION RATES FOR BASIC SERVICE AND RELATED EQUIPMENT PAGE  City Council Agenda January 19, 1994 7 3. CONSIDERATION TO APPROVE A JOINT EXERCISE OF POWERS 75 AGREEMENT (CO 94-009) WITH THE COUNTY OF SAN BERNARDINO. THE CITIES OF CLAREMONT. FONTANA. LA VERNE. RIALTO. SAN BERNARDINO AND UPLAND FOR THE ADMINISTRATION OF A CONSOLIDATED PROGRAM OE DESIGN AND MAINTENANCE OF THE ROUTE 30 FREEWAY CORRIDOR BETWEEN LA VERNE AND SAN BERNARDINO RESOLUTION NO. 94-017 103 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING THE JOINT EXERCISE OF POWERS AGREEMENT FOR THE ADMINISTRATION OF A CONSOLIDATED PROGRAM OF DESIGN AND MAINTENANCE OF THE ROUTE 30 FREEWAY CORRIDOR BE'iM/EEN LA VERNE AND SAN BERNARDINO I. COUNCIL BUSINESS The following items have been requested by lhe City Council for discussion. They are not public hearing items, although the Chair may open the meeting for public input. 1. REQUEST BY RANCHO CUCAMONGA QUAKES BASEBALL CLUB TO PRESENT PLANS FOR EXPANSION OF STADIUM (Continued from December 15, 1993) J. IDENTIFICATION OF ITEMS FOR NEXT MEETING This is the time for City Council to identify the items they wish to discuss at the next meeting. These items will not be discussed at this meeting, only identified for the next meeting. K. COMMUNICATIONS FROM THE PUBLIC This is the time and place for the general public to address the City Council. State law prohibits the City Council from addressing any issue not previously included on the Agenda. The City Council may receive testimony and set the matter for a subsequent meeting. Comments are to be limited to five minutes per individual. PAGE ,,~ City Council Agenda January 19, 1994 8 MEETING TO ADJOURN TO EXECUTIVE SESSION TO 'DISCUSS PERSONNEL MA'I'I'ERS. I, Debra J. Adams, City Clerk of the City of Rancho Cucamonga, hereby certify that a true, accurate copy of the foregoing agenda was posted on January 13, 1994, seventy-two (72) hours prior to the meeting per Government Code 54953 at 10500 Civic Center Drive. January 5, 1994 CITY OF RANCHO CUCAMONGA CITY COUNCIL MINUTES Re,~nlar Meetin~ A, CALL TO ORDER A regular meeting of the Rancho Cucamonga City Council was held on Wednesday, January 5, 1994, in the Council Chambers of the Civic Center, located at 10500 Civic Center Drive, Rancho Cucamonga, California. The meeting was called to order at 7:04 p.m. by Mayor Dennis L. Stout. Present were Councilmembers: William J. Alexander, Charles J. Buquet II, Rex Gutierrez, Diane Willjams, and Mayor Dennis L. Stout. Also present were: Jack Lain, City Manager; Ralph Hanson, Deputy City Attorney; Jerry B. Fulwood, Deputy City Manager; Linda D. Daniels, RDA Manager: Rick Gomez, Community Development Director; Tm'ry Smith, Park Planning/Development Superintendent; Brad Buller, City Planner; Nancy Fong, Sr. Planner; Richard Alcorn, Code Enforcement Supervisor; Joe O'Neil, City Engineer; Mike Olivier, Sr. Civil Engineer; Bill Makshanoff, Building Official; Bob Dominguez, Administrative Services Dh'ector; Duane Baker, Assistant to the City Manager; Diane O'Neal, Management Analyst II; Susan Mickey, Management Analyst I; Chief Dennis Michael, Rancho Cucamonga Fire Protection District; Lt. Mike Ingrain, Rancho Cucamonga Police Department; and Debm J. Ariains, City Clerk. B. ANNOUNCEMENTS/PRESENTATIONS B 1. Councilmember Buquet stated that at the County Transportation Commission meeting today an item before the Board was SCAG's proposal that they adopt the Regional Comprehensive Plan. He stated he had voiced concerns that Rancho Cucamonga would have to give up local control in planning and regional issues to other areas that are currently having their own problems if this was adopted. C. COMM1JNICATIONS FROM THE PIIBLIC No communication was made from the public. D. CONSENT CALENDAR Jack Lain, City Manager, asked that the Addendum Item DI0 be pulled from the agenda and come back at the January 19, 1994 meeting. City CouncilMinutes January5, 1994 Page 2 D1. Approval of Minutes: December 15, 1993 D2. Approval of Warrants, Register Nos. 12/8/93, 12/15/93, and 12/21/93; and Payroll ending 12/2/93 for the total amount of $457,931.07. D3. Approval to appropriate $5,000.00 from Fund Balance into the Vehicle Depreciation and Replacement Account 01-4647-3931 for repair of damaged City Water Truck. D4. Approval of a Resolution to enter into a Lease/Purchase Agreement (CO 94-001) with Municipal Services Group lncotpomted. RESOLUTION NO. 94-001 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, AUTHORIZING THE LEASE/PURCHASE OF EQUIPMENT THROUGH MUNICIPAL SERVICES GROUP, INCORPORATED D5. Approval of Environmental Initial Study Pan I and II for the proposed construction of the Adult Sport Park Expanded Parking Lot Project located at 8287 Rochester Avenue. RESOLUTION NO. 94-002 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING THE ENVIRONMENTAL INITIAL STUDY AND ISSUANCE OF A NEGATIVE DECLARATION FOR THE ADULT SPORTS PARK EXPANDED PARKING LOT PROJECT LOCATED AT 8287 ROCHESTER AVENUE D6. Approval to appropriate $315,673.00 from Deferred Revenue Account No. 22-236 and place it in Systems Development Fund Account Numbers 22-4637-92-06 ($104,891.00) and 22-4637-9205 ($209,782.00) for the construction of the Rochester Avenue and Banyan Street Improvement Project located north of Highland Avenue. D7. Approval to award and authorization for execution of contract (CO 94-002) for Rochester Avenue and Banyan Street Improvement Project, located north of Highland Avenue and LMD-6 Landscape Improvements to Kruze and Kruze Construction and Engineering, Incorporated, for the amount of $464,673.00 ($422,430.10 plus 10% contingency) to be funded from Systems Development Account Nos. 22-4637-9206 ($104,891.00) and 22-4637- 9205 ($209,782.00) and S.B. 140 ($150,000.00). D8. Approval to award and authorization for execution of contract (CO 94-003) for Ninth SU'eet Waterline Improvement Project located from Vinmar to Sierra Madre Avenues, to C.P. Construction Company, Incorporated, for the amount of $24,887.50 ($22,625.00 plus 10% contingency) to be funded from CDBG Funds, Account No. 28- 4333-9121. PULLED FOR DISCUSSION BY COUNCILMEMBER GUTIERREZ. D9. Approval to award and authorization for execution of a Professional Services Agreement (CO 94-004) between the City of Rancho Cucamonga and Williamson and Schmid, to prepare design plans, specifications and estimates for the Arrow Route Storm Drain Portion of the Milliken Avenue Extension from Foothill Boulevard to Arrow Route, for $49,000.00 plus 10% contingencies to be funded by Arterial Measure I, Account No. 32-4637- 9328. City Council Minutes January 5, 1994 Page 3 " .... ~'^-'-~'-^:-^' ITEM CONTINUED TO JANUARY 19, 1994. MOTION: Moved by Buquet, seconded by Alexander to approve the staff recommendations in the staff reports contained in the Consent Calendar with the exception of Items D7 and D10. Motion carded unanimously, 5-0. DISCUSSION OF ITEM D7. Approval to award and authorization for execution of contract (CO 94-002) for Rochester Avenue and Banyan Street Improvement Project, located north of Highland Avenue and LMD-6 Landscape Improvements to Kruze and Kruze Construction and Engineering, Incorporated, for the amount of $464,673.00 ($422,430.10 plus 10% contingency) to be funded from Systems Development Account Nos. 22-4637-9206 ($104,891.00) and 22-4637-9205 ($209,782.00) and S.B. 140 ($150,000.00). Councilmember Gutierrez stated that on the agenda it mentions the Landscape Maintenance District that this project on Rochester and Banyan entails, and was wondering if any of the funding at all to improve that area come out of that LMD. He asked what the Systems Development Account was. Joe O'Neil, City Engineer, stated that the Systems Development Account is the developer fees that are received by the City for transportation purposes, i.e., signals and things like thaL He staled they are development impact fees. Mayor Stout stated originally money from the developer that developed the Caryn project was put into a trust or escrow account for this purpose, but that the City wasn't ready to construct the road at that time, and is now ready to draw from those funds. Joe O'Neil, City Engineer, stated that is correct. MOTION: Moved by Gutierrez, seconded by Williams to approve Item D7. Motion carTied unanimously, 5-0. Jack Lain, City Manager, further stated that it is in the Systems Development Fee even though it is in a trust account because that is the proper account from which the street is to be funded. He stated there is no money in the Systems Account except for this trust because there has not been that much development. E. CONSENT ORDINANCEg No items were submitted. F. ADVERTISED PUBLIC HEARINGS FI. CONSIDERATION OF DEVELOPMENT REVIEW 93-13 - WESTERN PROPERTIES - Consideration of an appeal of the Planning Commission's decision to deny the design review of elevations for Building X, a 5,350 square foot retail building within the Terra Vista Town Center, located at the northeast comer of Foothill Boulevard and Haven Avenue, in the Community Commercial District - APN: 1077-421-70. (Continued from December 1, 1993) City Council Minutes January 5, 1994 Page 4 Mayor Stout stated he had requested that a Subcommittee of the Council work on this matter in order to resolve the differences of opinion. He continued by stating he and Councilmember Willjams worked as the Subcommittee and met with staff and representatives from Western Properlies and have worked out the differences of opinion. Mayor Stout opened the meeting for public heating. Addressing the City Council was: Richard Major, Westem Properties, stated he appreciated the work the Council has done in order to resolve the issues for this project. Councilmember Gutierrez asked what compromises were made. Mayor Stout explained what Western Properties has done to satisfy the Subcommittee's expectations for this project. Mr. Major concurred with Mayor Stout's comments. There being no further response, the public hearing was closed. Councilmember Alexander stated he is glad there is an agreement on this matter. Councilmember Willjams felt the changes that were made have really made the difference for the project. RESOLUTION NO. 94-003 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, UPHOLDING THE APPEAL AND APPROVING DEVELOPMENT REVIEW NO. 93-13, THE DESIGN REVIEW OF ELEVATIONS FOR BUILDING X, A 5,350 SQUARE FOOT RETAIL BUILDING WITHIN TERRA VISTA TOWN CENTER, LOCATED AT THE NORTHEAST CORNER OF FOOTHILL BOULEVARD AND HAVEN AVENUE IN THE COMMUNITY COMMERCIAL DISTRICT, AND MAKING FINDINGS IN SUPPORT THEREOF - APN: 1077-421-70 MOTION: Moved by Buquet, seconded by Alexander to grant the appeal as modified based on Western Properties' discussions with the City Council Subcommittee, and approving Resolution No. 94-003. Motion earned unanimously, 5-0. F2. CONSIDERATION TO MODIFY ENTERTAINMENT PERMIT 91-02 - SAM'S PLAC~ - Consideration of an appeal of the Planning Commission's decision to deny a modification to an entertainment permit for adding entertainment on Sunday and expanding the entertainment to allow a live band, disc jockey, and karaoke in conjunction with a restaurant and bar, located at 6620 Carnelian Street in the Neighborhood Commercial District - APN: 201-811-56 through 60. Staff report presented by Nancy Fong, St. Planner. She commenPat on three handouts distributed to the Council, and stated one of them was page 115 in the agenda packet modifying Resolution No. 93-004. Councilmember Gutierrez stated he felt he had a conflict of interest on this matter and left the room until the item concluded. City Council Minutes January 5, 1994 Page 5 Mayor Stout opened the meeting for public hearing, allowing the appellant to give their comments first: John Mannerino, 9333 Base Line #110, representing Sam Pellegrino, advised the Council he felt the problem with this establishment was the location. He continued to quote comments made by Planning Commissioner Tolstoy when this item was heard before the Planning Commission. He did not feel the Pellegrino's should be tried for their abuse of the permit at this hearing. He stated the item before the Council is the modification to the entertainment permit. He stated he did not think they should be penalized just because they did not come in for their permit prior to starting the new entertainment. He felt live bands should be considered separately from DJ's and Karaoke entertainment. Mayor Stout commented on a previous condition of approval about the landscaping and parking battiers that have been removed from this location and asked why. John Mannerino stated that it was done by the landlord, not the Pelleg~no's. He continued to state that the neighbors near the shopping center have not made complaints directly to the Pellegrino's. Mindy Kennedy Seely, 6633 Amberwood, stated she had never heard complaints about Sam's Place and felt Mr. Pellegrino had every right to have his business at the existing location. Rob Cavasas, 1251 Upland Hills Drive, stated he likes going to Sam's Place and felt it was a great place to go to. He hoped that the Council granted the permit to Sam's. Frank SIeves, 8344 Mandarin, stated he is happy that Sam's Place is there. He stated he takes part in the Karaoke and felt Sam's Place should be granted the perraiL Matthew Seely, 6633 Amberwood, did not think the noise could be bothering the residents to the west and felt the noise was traveling to the south down to 19th SireeL He felt the band noise could be controlled by amplification through the owner's monitoring of the situation. He stated he did not think the noise was a problem. Patxicia Gibson, 7040 Archibald, felt it was a safe place and that Sam did police his establishment. She felt Sam's Place was an asset to the City. John Wood, 11408 Mr. Johnson, stated he felt comfortable at Sam's Place because it was a safe establishment and did not think he had anything against the law there. Louetla G. Simms, also speaking for her husband Hugh Harrison, 6632 Topaz, stated the noise does travel west to her street. She did not think Sam's Place should be located so close to a residential neighborhood. She stated she moved to Rancho Cucamonga from Los Angeles because of the quality of life here. She stated she does not feel Sam is a good neighbor. She continued commenting that she has been awakened by noise from Sam's Place. Robert Cridland, 9280 Highland, stated he did not think Sam's Place was a detriment to the community. He did not think this establishment was offensive. Joe Fayis, 6611 Topaz, stated he agreed with the opening remarks made by Mr. Mannerino, that the problem with Sam's Place is the location. He felt there was a lot of noise that goes into the neighborhoods around there. He felt before the business is expanded, that the problems that are currently existing should be dealt with. City Council Minutes January 5, 1994 Page 6 Sam Pellegrino, owner of Sam's Place, stated Richard Alcom has never written him up to warn him of any problems. He stated John Melcher is going around telling his potential landlord that he is a bad person and should not get involved with him. He pointed out there are other violations in the City and presented pictures for the Council to look at. Randy Delaney, of Rancho Cucamonga, stated he felt Sam's Place has deviated from its o~iginal permit in order to do more business. He hoped that the Council would back the Planning Commission. Robert Cridland stated he has never seen broken bottles laying around from Sam's Place. He asked that the Council treat this issue fairly. John Mannerino stated the question is if the use that Mr. Pellegrino wants is acceptable for his location. He felt if approved, they could do it with the City's satisfaction by monitoring the situation. There being no further response, the public heating was closed. Mayor Stout stated he has been struggling with this location since 1982. He told about everything that has been tried to limit the problems at this location. He continued to give the history of the establishment. He felt this establishment would be a good business if it was located on Foothill Boulevard. Councilmember Alexander stated he voted in favor of Sam's Place at the last hearing and thought he was a good businessman. He did not feel the modification to the permit should be granted this time. Councilmember Buquet stated he did not see any comparison between Sam's Place and Backwaters. He stated he felt the City has tried to accommodate this business. He stated he feels that the sound carries from Sam's Place. He stated he is opposed to expanding the permit. He felt the City should work with Sam's Place and try to assist them in every way possible. He stated he felt the location was the problem. Councilmember Williams asked Mr. Pellegrino to continue to monitor what goes on outside because of the noise problem. She stated she is not in favor of expanding the permit. RESOLUTION NO. 94-004 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, DENYING THE APPEAL AND UPHOLDING THE PLANNING COMMISSION'S DECISION TO DENY A MODIFICATION TO ENTERTAINMENT PERMIT 91-02 FOR ADDING ENTERTAINMENT ON SUNDAY AND EXPANDING THE ENTERTAINMENT TO ALLOW A LIVE BAND, DISC JOCKEY, AND KARAOKE IN CONJUNCTION WITH A RESTAURANT AND BAR, LOCATED AT 6620 CARNELIAN STREET IN THE NEIGHBORHOOD COMMERCIAL DISTRICT, AND MAKING FINDINGS IN SUPPORT THEREOF - APN: 201-811-56THROUGH 60 MOTION: Moved by Buquet, seconded by Williams to approve Resolution No. 94-004, but striking the Kamoke prohibition. Motion carried4-0-0-1 (Gutierrez abstaining). Mr. Pellegrino asked if the Council wanted him to move from Sam's current location. Councilmember Buquet stated they are not asking him to move. City Council Minutes January 5, 1994 Page 7 Mr. Pellegrino stated he is not moving the existing Sam's Place, but wanted to open a second location at Foothill and Rochester. He added he did not think his landlord would be happy when he asked him to break his lease. Mayor Stout called a recess was taken at 8:47 p.m. The reconvened at 9:04 p.m. with all Councilmembers present, Councilmember Buquet commented that the karaoke would still need to be monitored at Sam's Place and that Pellegrino should meet all conditions as previously approved. Brad Buller, City Planner, stated that once the Resolution is signed staff will send Mr. Pellegrino a copy of it, and indicate to him where he is in violation with his current entertainment, as well as the original CUP and the security of the parking. He stated they would also tell Mr. Pellegrino if after 30 days he does not come into compliance, this would be due cause for legal action. G. PUBLIC HEARINGS No items were submitted. H. CITY MANAGER'S STAFF REPQRT.S HI. CONSIDERATION OF 1994 STATE LEAGUE DUES Staff report presented by Jack Lam, City Manager. MOTION: Moved by Alexander, seconded by Buquet to concur with the increase. Motion carried unanimously, 5-0. I. COUNCIL BUSINESS No items were submitted. .I. IDENTIFICATION OF ITEMS FOR NEXT MEETING Jl. Mayor Stout stated he would like for the adoption of the City Seal to come back for the Council to approve. K. COMMUNICATIONS FROM THE PUBLIC No communication was made from the public. City CouncilMinutes January5,1994 Page 8 MOTION: Moved by Alexander, seconded by Buquet to adjourn to Executive Session to discuss personnel matters and pending litigation, Gentry Brothers vs City of Rancho Cucamonga. Motion carried unanimously, 5-0. The meeting adjourned at 9:10 p.m. Respectfully submitted, Debra J. Adams, CMC City Clerk Approve, d: RUN O~TE: [Z/Z:~/~ PA~: ~ CITY OF RANCHO CU LIST QF MARRI FOR PERZOO: Ol (93/94) CITY OF IANCHO CUCANONGA LiST OF MARRAMTS FOR PERZQOt 01-05-96 FOR PERLOD: Ol- -94 (93194) RUN DATET 01/0519~ PIGEZ I VESOOe NiNE ZTEN DESCRiPTiON UARR NO #AeR. ANT. · $ CNECKI OVERLAP 692 SIR SPEEDY FAXES R3069 95,80 I]ZT $NART L FINAL DAY CANP SUPPLIES I 83070 19.09 319 SQ CALTF GAS CO. NONTNLT GAS DILLS 83071 13.1~ <(( D3OTZ - 8301Z >>> ORIGINAL CITY OF RANCHO CUCA1VIONGA STAFF REPORT DATE: January 19, 1994 TO: Mayor and Members of the City Council Jack Lam, AICP, City Hanager FROM: William J. O'Neil, City Engineer BY: Linda Beek, Jr. Engineer SUBJECT: AUTHORIZE THE ADVERTISING OF THE "NOTICE INVITING BIDS" FOR THE HELLMAN AVENUE AT NINTH STREET IMPROVEMENT PROJECT, TO BE FUNDED FROM STREET REHABILITATION, ACCOUNT NO. 09-4637-9304 IIECOIENDATIOM: It is recmmnended that City Council approve plans and specifications for the Hellman Avenue at Ninth Street Improvement Pro(ect and approve the attached resolution authorizing the City Clerk to advertise the "Notice Inviting Bids". BACKGROUND/ANALYSIS The subject project plans and specifications have been completed and reviewed by staff and approved by the City Engineer. The Engineer's estimate for construction is $41,71B.00. Legal advertising is scheduled for January 24, and January 31, 1994, with the bid opening at 2:00 P.M. on Tuesday, t4arch 15, 1994. Respectful 1 y submttted, / ~lll iamCa. 0'Nei~ City Engineer WJ0:LB:ly Attachment cc: Purchasin9 RESOLUTION NO. ~- ~.~L~P A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RAJ~CHO CUCA/4ONGA APPROVING PLANS AND SPECIFICATIONS FOR THE "HELLMAN AVENUE AT NINTH STREET IMPROVEMENTS" IN ~ID CITY AND AJJTHORIZING AND DIRECTING THE CITY CLERK TO ADVERTISE TO RECEIVE BIDS WHEREAS, it is the intention of the City of Rancho Cucamonga to construct certain improvements in the City of Rancho Cucamonga. WHEREAS, the City of Rancho Cucamenga has prepared plans and specifications for the construction of certain improvements. NOW, THEREFORE, BE IT RESOLVED that the plans and specifications presented by the City of Rancho Cucamonga be and are hereby approved as the plans and specifications for "Hellman Avenue at Ninth Street Improvements". BE IT FURTHER RESOLVED that the City Clerk is hereby authorized and directed to advertise as required by law for the receipt of sealed bids or proposals for doing the work specified in the aforesaid plans and specifications, which said advertisement shall be substantially in the following words and figures, to wit: "NOTICE INVITING SEALED BIDS OR PROPOSALS" Pursuant to a Resolution of the Council of the City of Rancho Cucamonga, San Bernardino County, California, directing this notice, NOTICE IS HEREBY GIVEN that the said City of Rancho Cucamenga will receive at the Office of the City Clerk in the offices of the City of Rancho Cucamenga, on or before the hour of 2:00 o'clock P.M. on the 15th day of March, 1994, sealed bids or proposals for the "Hellman Avenue at Ninth Street Improv~nts", in said City. Bids will be opened and publicly read inm~edlately in the office of the City Clerk, 10500 Civic Center Drive, Rancho Cucamenga, California 91730. Bids must be made on a form provided for the purpose, addressed to the City of Rancho Cucamonga, California, marked, "Bid for Construction of Hellman Avenue at Ninth Street Improvements". PREVAILING WAGE: Notice is hereby given that in accordance with the provisions Of California Labor Code, Division 2, Part 7, Chapter 1, Articles 1 and 2, the Contractor is required to pay not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the public work is perforn~d, and not less than the general prevailing rate of per diem wages for holiday and overtime work. In that regard, the Director of the Department of Industrial Relations of the State of California is required to and has determined such general prevailing rates of per diem wages. Copies of such prevailing rates of per diem wages are on file in the office of the City Clerk of the City of Rancho Cucamonga, 10500 Civic Center Drive, upper level, Rancho Cucamonga, California, and are available to any interested party on request. The Contracting Agency also shall cause a copy 11 of such determinations to be posted at the job site. The Contractor shall forfeit, as penalty to the City of Rancho Cucamonga, twenty-five dollars ($25.00) for each laborer, workman, or mechanic employed for each calendar day or portion thereof, if such laborer, workman, or mechanic is paid less than the general prevailing rate of wages hereinbefore stipulated for any work done under the attached contract, by him or by any subcontractor under him, in violation of the provisions of said Labor Code. In accordance with the provisions of Section 1777.5 of the Labor Code as amended by Chapter 971, Statutes of 1939, and in accordance with the regulations of the California Apprenticeship Council, properly indentured apprentices may be employed in the prosecution of the work. Attention is directed to the provisions in Sections 1777.5 and 1777.6 of the Labor Code concerning the empl o~n~ent of apprentices by the Contractor or any subcontractor under him. Section 1777.5, as amended, requires the Contractor or subcontractor employing tradesmen in any apprenticeable occupation to apply to the joint apprenticeship committee nearest the site of the public works project and which administers the apprenticeship program in that trade for a certificate of approval. The certificate will also fix the ratio of apprentices to journeymen that will be used in the performance of the contract. The ratio of apprentices to journeymen in such cases shall not be less than one to five except: A. When unemployment in the area of coverage by the joint apprenticeship con~nittee has exceeded an average of 15 percent in the 90 days prior to the request for certificate, or B. When the numper of apprentices in training in the area exceeds a ratio of one to five, or C. When the trade can show that it is replacing at least 1/30 of its membership through apprenticeship training on an annual basis statewide or locally, or D. When the Contractor provides evidence that he employs registered apprentices on all of his contracts on an annual average of not less than one apprentice to eight journeymen. The Contractor is required to make contributions to funds established for the administration of apprenticeship program i f he employs registered apprentices or Journeymen in any apprenticeable trade on such contracts and if other Contractors on the public works site are making such contributions. The Contractor and subcontractor under him shall comply with the requirements of Sections 1777.5 and 1777.6 in the employment of apprentices. Inforn~tion relative to apprenticeship standards, wage schedules, and other requirements may be obtained from the Director of Industrial Relations, ex-offtcto the Administrator of Apprenticeship, San Francisco, Call fornia, or from the Division of Apprenticeship Standards and its branch offices. Eight (8) hours of labor shall constitute a legal day's work for all workmen employed in the execution of this contract and the Contractor and any subcontractor under him shall comply with and be governed by the laws of the State of California having to do with working hours as set forth in Division 2, Part 7, Chapter 1, Article 3 of the Labor Code of the State of California as amended. The Contractor shall forfeit, as a penalty to the City of Rancho Cucamonga, twenty-five doll ars ($25.00) for each laborer, workman, or mechanic employed in the execution of the contract, by him or any subcontractor under him, upon any of the work heretnbefore mentioned, for each calendar day during which said laborer, workman, or mechanic is required or permitted to labor mere than eight (8) hours in violation of said Labor Code. Contractor agrees to pay travel and subsistence pay to each workman needed to execute the work required by this contract as such travel and subsistence payments are defined in the applicable collective bargaining agreements filed in accordance with Labor Code Section 1773.8. The bidder must submit with his proposal cash, cashier's check, certi fled check, or bidder's bond, payable to the City of Rancho Cucamenga for an amount equal to at least ten percent (10%) of the amount of said bid as a guarantee that the bidder will enter into the proposed contract if the same is awarded to him, and in event of failure to enter into such contract said cash, cashier's check, certified check, or bond shall become the property of the City of Rancho Cucamonga. If the City of Rancho Cucamonga awards the contract to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the City of Rancho Cucamonga to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. The amount of the bond to be given to secure a faithful performance of the contract for said work shall be one hundred percent (100%) of the contract price thereof, and an additional bond in an amount equal to fifty percent (100%) of the contract price for said work shall be given to secure the payment of claims for any materials or supplies furnished for the performance of the work contracted to be done by the Contractor, or any work or labor of any kind done thereon, and the Contractor will also be required to furnish a certificate that he carries compensation insurance covering his employees upon work to be done under contract which may be entered into between him and the said City of Rancho Cucamonga for the construction of saldwork. No proposal will be considered from a Contractor whom a proposal form has not been issued by the City of Rancho Cucamonga. Contractor shall possess a Class "A" License (General Engineering Contractor) in accordance with the provisions of the Contractor's License Law (Call fornia Business and Professions Code, Section 7000 et. seq.) and rules and regulations adopted pursuant thereto at the time this contract is awarded. The work is to be done in accordance with the profiles, plans, an4 specifications of the City of Rancho Cucamonga on file in the Office of the City Clerk at 10500 Civic Center Drive, Rancho Cucamonga, California. Copies of the plans and specifications, available at the office of the City Engineer, will be furnished upon application to the City of Rancho Cucamonga and payment of $35.00 said $35.00 is nonrefundable. Upon written request by the bidder, copies of the plans and specifications will be mailed when said request is accompanied by payment stipulated above, together with an additional nonreimbursable payment of $15.00 to cover the cost of mailing charges and overhead. The successful bidder will be required to enter into a contract satisfactory to the City of Rancho Cucamenga. In accordance with the requirements of Section 9-3.2 of the General Provisions, as set forth in the Plans and Specifications regarding the work contracted to be done by the Contractor, the Contractor may, upon the Contractor's request and at the Contractor's sole cost and expense, substitute authorized securities in lieu of monies withheld (performance retention). The City of Rancho Cucamonga, California, reserves the right to reject any and all bids. By order of the Council of the City of Rancho Cucamonga, California. Dated this lgth day of January, 1994. PASSED AND ADOPTED by the Council of the City of Rancho Cucamonga, California, this 19th day of January, 1994. Nayor ATTEST: City Clerk ADVERTISE ON: January 24, 1994 and January 31, 1994 14 CITY OF RANCHO CUCAMONGA STAFF REPORT DATE: January 19, 1994 TO:. Mayor and Members of the City Council FROM: Linda D. Daniels, Redevelopment Manager SUBJECt: APPROVAL FOR CITY SEAL DESIGN RECOMMENDATION: Approve the f'mal City Seal design. BACKGROUND: The City Council has directed the development of a City seal which has been coordinated through the Marketing Subcommittee. The seal will be used when developing official City documents. The seal will not replace the City's logo. ANALYSIS: The attached Exhibit is a reduction of the artwork showing the design of the City seal. The seal can be duplicated in both color and black and white. The seal will be kept in the City Clerk's office for official use only. Respectfully submitted, Linda D. Daniels Redevelopment Manager attachment: City Seal design Class 16 CITY OF RANCHO CUCAMONGA STAFF REPORT DATE: January 19, 1994 TO: Mayor and Members of the City Council FROM: Susan Mickey, Management Analyst I SUBJECT: EXTENSION OF COMCAST CABLE T.V. FRANCHISE RECOMMENDATION Adoption of Resolution 91-012-O extending Comcast's Franchise License for 90 days. BACKGROUND The City staff would appreciate the opportunity to continue the negotiations with Corncast to ensure that every opportunity has been made available to Comcast to obtain a Franchise License. Respectfully submitted, Susan Mickey Management Analyst I SM:dk Attachment A RESOLUFION OF ~ UrAY ~, OF M CA'A~ OF PAN(~K) FRAN(~{ISE LICENSE Wl'iH OZMCAST CA~.~ T.V. FC~ 90 DAYS UPC~ EXPIRA_mIC~ OF CURR/~IT T.TC2NSE WI'AMIN ~ UA'A~ OF ~R~EAS, the Franchise License grar~a to Ccecast Cable T.V. by the County of San Bernard~ and qA-andfathered into the City of Rancho n~monga will e~pire o~ January 23, 1994; and ~{EREAS, negotiations are ongoing het~--~_n the City of Ran~bo O~-~m~ ar~ Cc[~ ~hle T.V.; ar~ ~}~EAS, all terms and conditions of the current license will NOW, E, the City Oouncil of the City of Rancho n~mnnga does hereby resolve to e~ the Fr~ License for 90 days after the expiration of the current County of San Bernardino Liceme. 18 CITY OF RANCHO CUCAMONGA STAFF REPORT DATE: January 19, 1994 TO: Mayor and Members of the City Council Jack Lam, AICP, City Manager FROM: Will lam J. O'Neil, City Engineer BY Lucinda E. Hackett, Associate Engineer SUBJECT: APPROVAL TO A. DPROPRIATE AND EXPEND $30,000 FOR THE INSTALLATION OF A TOUCH PAD LIGHTING CONTROL SYSTEM AT REDHILL AND HERITAGE COt~4UNIIY PA~S, TO BE FUNDED FRObl PD-8S REDHILL AND HERITAGE REDEMPTION FUND, ACCOUNT NO. 90-4637-9222 RECOIIIEMOATIOI It is recoemnended that the City Council approve the appropriation and expenditure of $30,000 for the Installation of a Touch Pad Lighting Control System at Redhill and Heritage Community Parks. BACXGROUND/ANALYSIS The funds for the installation of the touch pad lighting control system at Redhill and Heritage Community Parks were budgeted for in the 92/93 FY. Due to the fact that estimates for this project can~ in much higher than the amount budgeted, the project could not be completed during the g2/g3 FY. The project can now go forward because additional funding was received from the bond refinancing of PD-BS that occurred May 1, 1993. The project is due to begin construction the first week of February and be completed by the beginning of March. Respectfully submitted, Will iam J. O'Nell City Engineer WJO:LEH:dlw CITY OF RANCHO CUCAMONGA -. STAFF REPORT .!., DATE: January 19, 1994 TO: Mayor and Members of the City Council FROM: Susan Mickey, Management Analyst I SUBJECT: APPROVAL OF A RESOLUTION ALLOWING THE ISSUANCE BY MARKS GROUP, INC. OF $30 MILLION OF EQUITY CAPITAL TO INSTITUTIONAL INVESTORS BACKGROUND: At its November 17, 1993 meeting, the City Council approved the purchase of the Scott Cable Franchise by DCA Cablevision and the appointment of The Marks Group, Inc. as the managing general partner of DCA Cablevision. A financing plan whereby The Marks Group would obtain approximately $28.5 million in new equity was proposed. The specific terms of that plan have now been consummated. According to Title 7, section 7.02.100 A and B, certain financial and background documentation is required to be provided to the City any time there is a change of control or ownership. ANALYS 18 / BACKGROUND: The Marks Group now expects the actual amount of equity financing to be $30 million which will be held by Providence Media Partners, L.P. These are well-known and long-standing investors who have successful track records in investing in the cable tv industry. The new investor group will own a majority of the stock in The Marks Group. However, Mr. William Marks Sr. will continue as chairman of The Marks Group and will be responsible for the day to day management of The Marks Group and DCA cable systems. The documentation has been reviewed by the City Attorney's office and found to be in compliance with the requirements of Title 7. Respectfully Submitted, Susan Mickey Management Analyst I RESOLUTION NO. 84- (~)(]D 7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING THE ISSUANCE BY THE MARKS GROUP, INC, OF $30 MILLION OF EQUITY CAPITAL TO INSTITUTIONAL INVESTORS WHEREAS, DCA Cablevision, a California general partnership ("DCA"), owns and operates a cable television system (the "DCA System") in the City of Rancho Cucamonga, California (the "City") pursuant to that certain cable television franchise agreement dated April 17, 1985 heretofore entered into by and between the City and DCA (the "DCA Franchise"); and WHEREAS, effective upon the closing date of the proposed purchase of the cable television system operated by $cotl Cable Communications, Inc. (the "Scott Cable $ysterfl") in the City, DCA will appoint The Marks Group, Inc. ("TMG") to be the managing general partner of DCA In place of West Coast Cable Partners, Ltd. ("WCCP"); and WHEREAS, the City has previously granted its consent to the appointment and substitution of TMG for and in place of WCCP as the managing partner of DCA; and WHEREAS, in order to complete the purchase of the Scott Cable System, TMG will obtain approximately $30 million of additional equity capital from certain institutional investors (the "Institutional Investors"); and WHEREAS, the Institutional Investors will collectively own a majority of the capital stock of TMG; and WHEREAS, William J. Marks will remain chairman and chief executive officer of TMG and will retain day-to-day operating control of the DCA System, the Scott CaDle System and the DCA Franchise through a management agreement with DCA; and WHEREAS, all legal preconditions to the adoption of this Resolution have been fulfilled; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rancho Cucamonga that: 1. In all respects, as set forth in the Recitals, Part A. 2. On the basis of the oral and written testimony presented to the City 21 Council by DCA and the City staff, which testimony is hereby incorporated herein by reference as if fully set forth herein, the City Council concludes that, pursuant to Section 7.01.100B of Title 7 of the Rancho Cucamonga Municipal Code, it has been demonstrated to the satisfaction of the City Council that, with respect to both the issuance of equity capital to the Institutional Investors: A. No person with a defined interest in OCA, including DCA's officers, directors, employees, prospective principals or those with either a legal or equitable interest In five (5) percent or more of DCA's voting stock: (i). Has been convicted or held liable for acts involving moral turpitude or is presently under an indictment, investigation or complaint charging such acts; (li). Has ever had a judgment or an action for fraud, deceit or misrepresentation entered against such person(s) by a court of competent jurisdiction; or (iii). Has pending any legal claim, lawsuit or administrative proceeding arising out of or involving a cable system. B. The financial statements audited, certified and qualified by an Independent certified public accountant show that DCA will, upon and Immediately after its acquisition of the Scott Cable System, be financially solvent. C. DCA will have appropriate financial and technical capabilities to enable it to maintain and operate both the DCA System end the Scott Cable System for the remainder of the term of the DCA Franchise. 3. The City, after due consideration, hereby ConSents to and approves the issuance of equity capital to the Institutional Investors, 4. In the event that DCA does not purchase and acquire the Scott Cable System on the Closing Date, as approved herein, then this Resolution shell terminate and cease to be of any further force or effect without further act of the City Councfi, and the DCA Franchise and the Scott Cable Franchise shall in that event continue in full force and effect. 5. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this '1 9th day of January, 1994. CITY OF RANCHO CUCAMONGA ~--~ STAFF REPORT I' , DATE: January 19, 1994 .. TO: Mayor and Members of the City Council Jack Lam, AICP, City Manager FROM: Rick Gomez, Community Development Director BY Will lam J. O'Neil, City Engineer SUBJECT: APPROVAL OF AGREEMENT FOR PAYMENT OF FEES FOR PARCEL MAP 13724, LOCATED ON ll4E SOUTH SIDE OF FOOTHILL BOULEVARD, BETWEEN INTERSTATE 15 AND ETIWANDA AVENUE, SUBMITTED BY FOOTHILL MA~ETPLACE PARTNERS REC(MeENDATION It is recommended that the City Council approve the subject agreement by Foothill Marketplace Partners and direct staff to continue processing the subject development. BACI(GROUND/AMALYSTS Parcel Map 13724, located on the south side of Foothill Boulevard, between Interstate 15 and Etiwanda Avenue in the Regional Related Commercial and Light Industrial Designations of the Foothill Boulevard Specific Plan (Subarea 4), was approved by the City Council on November 6, 1991. Price Club, Walmart, and other uses are open to the public. The developer is continuing with the remainder of his site. The developer has also formed an assessment district for his site to assist in the funding of the public improvements. With this assessment district there are funds available to pay the Transportation and Drainage fees required of the remaining parcels. However, since the district is not presently funded and the developer desires to obtain additional building permits, the developer is submitting an agreement from their bank w~Ich insures payment of fees. This document is from Tokai Bank of California on behalf of Foothill Marketplace Partners. Funds are set aside in an account for the Transportation and Drainage fees. These funds may only be withdrawn with permission by the City and any funds requested by the City shall not be withheld. Should the assessment district fail to fund, these funds would immediately be requested by the City. CITY COUNCIL STAFF REPORT P M 13724 - FOOTHILL NA~KETPLACE PARTNERS JANUARY 19, 1994 PAGE 2 Staff therefore recommends the City approve by minute action the agreement and direct staff to continue processing the subject devel opmen t. px~ l~ R f es t u t JO:~nG~~/~liD~ev~elopment Director CITY OF RANCHO CUCAMONGA STAFF REPORT DATE: January 19, 1994 TO: Mayor and Members of the City Council Jack Lam, AICP, City Manager FROM: Will Jam J. O'Neil, City Engineer BY: Linda R. Beek, Jr. Engineer SUBJECT: AWARD AND AUTHORIZATION FOR EXECUTION OF CONTRACT FOR VINMAR AVENUE FROM NINTH STREET TO CHAFFEE STREET ALLEY IMPROVEMENT PRO~ECT TO IPS SERVICES, INC., FOR THE AJ~OUNT OF $85,897.00 ($78,088.39 PLUS 10% CONTINGENCY), TO BE FUNDED FROM CDBG ACCOUNT NO. 28-4333-932Q. IECOI~[NOATION: It is recommended that the City Council accept all bid proposals as received, award and authorize execution of contract for Vtnmar Avenue Improvement Project to the lowest responsive bidder, IPS Services, Inc., for the amount of $78,088.39 and authorize the Administrative Services Director to expend $85,897.~ ($78,0~.39 plus 1~ contingency) to be funded from CDBG Fund kcount No. 28-4333-932g. B~G~/~YSIS Per previous Council action, bids were solicited, r~eiv~ and opened on Oeceber 22, 1993, for the subject proj~t. IPS Servlces, Inc., ts the apparent lowest responsive bidder with a bid amount of $78,0~.39 {see attached bid sMary). ~e Englneer's estimate was $89,484.00. Staff has revlew~ all bids rKe~v~ and found the to be cmplete and In accordance with the bid requireents. Staff has completed the required background investigation and finds al1 bidders to ~et the requirments of the bid documents. Respectfully submlttM, Wtll tam J. O'Neil City Engineer WJO:L~:ly Attachmen t CITY OF RANClIO CUCAMONGA SUMMARY OF PROPOSALS VINMAR AVENUE DATE: DECEMBER 22, 1993 Engineer's Estimate LP.S. Services, Inc. Sully-Miller Cent. Co. Item Item Unit of Eslimated Unit Original Unit Amount Unit Amount No. Description Measure Quantity Prices Authorized Prices Bid Prices Bid I. Clearing and Grubbing L.S I $6,500.00 $6,500.00 $4,565.00 $4,565.00 $2,200.00 $2,200.00 2. Remove A.C. Pavement SF 23,968 $0.25 $5,992.00 $0.18 $4,314.24 $0.25 $5,992.00 3. Misc. P.C.C. Removal CY 4,137 $2.50 $10,342.50 $0.55 $2,275.35 $0.30 $1,241.10 4. Unclassi~ed Excav. & Fill CY 765 $7.00 $5,355.00 $9.50 $7,267.50 $14.50 $11,092.50 5. Remove Tree EA 2 $180.00 $360.00 $500.00 $1,000.00 $250.00 $500.00 6. Relocate M.B. EA 9 $100.00 $900.00 $75.00 $675.00 $125.00 $1,125.00 New M.B. on 4"x4" Post EA 3 $125.00 $375.00 $145.~0 $435.00 7. Adj Valve Can & $0.00 $0.00 $0.00 &Cover to Grade EA I $95.00 $95.00 $25.00 $25.00 $910.00 $910.00 8. Crushed Aggregate TON 514 $15.00 $7,710.00 $16.50 $8,481.00 $10.40 $5,345.60 10. A.C. Pavement 3" TON 386 $30.00 $ l 1,580.00 $26.00 $10,036.00 $27.70 $10,692.20 11. A.C. Dike LF 25 $9.75 $243.75 $26.00 $650.00 $40.00 $1,000.00 12. Curb Side Drain Outlet EA 2 $1,000.00 $2,000.00 $1,850.00 $3,700.00 13. 8" P.C.C. Curb & $0.00 $0.00 $0.00 24" Gutter LF 851 $11.10 $9,446.10 $8.00 $6,808.00 $9.00 $7,659.00 14. 6" PCC Dr. Approach SF 2,966 $3.00 $8,898.00 $2.25 $6,673.50 $2.30 $6,821.80 15. 4" PCC S.W.. Walkway & D.A. SF 6,527 $1.60 $10,443.20 $1.60 $10,443.20 $1.60 $10,443.20 16. PC Wheelchair Ramp EA 2 $381.25 $762.50 $465.00 $930.00 $290.00 $580.00 17. Adj. WM to Grade EA 7 $50.00 $350.00 $25.00 $175.00 $45.00 $315.00 18. 8" P.C.C. Mow Slxip LF 47 $8.60 $404.20 $I8.80 $883.60 $10.25 $481.75 19. 4' Chain Link Fence LF 200 $10.00 $2,000.00 $10.50 $2,t00.00 $10.00 $2,000.00 20. Trenching & Back_f'dl LF 650 $6.00 $3,900.00 $5.90 $3,835.00 $5.50 $3,575.00 21. Insft. Sod/Soil Prep/Fine Grading SF 450 $1.60 $720.00 $2.00 $900.00 $3.00 $1,350.00 22. I Gal Shrub "Texas Privet" EA 58 $5.00 $290.00 $7.00 $406.00 $9.00 $522.00 23. 15 Gal Tree "Liquid Amber" EA 2 $100.00 $200.00 $160.00 $320.00 $250.00 $500.00 24. Mexican Fan Palm 12' Min. EA 1 $900.00 $900.00 $600.00 $600.00 $1,550.00 $ 1,550.00 25. Traffic Conlxol LS I $1,000.00 $1,000.00 $1,950.00 $1,950.00 $600.00 $600.00 26. Traf, StripingfSigning~Iydr. Mark LS I $800.00 $800.00 $400.00 $400.00 $800.00 $800.00 $89,192.25 $78,088.39 $81,431.15 Page 2 J.E.G. CONST. CO., INC. LAIRD CONST. CO. OLAll EQIPMENT CO. Item Item Unit of Estimated Unit Amount Unit Amount Unit Amount No. Desc~'iption Measure Quantity Prices Bid Prices Bid P~-ices Bid 1. Clearing and Grubbing L.S i $6,550.00 $6,550.00 $6,400.00 $6,400.00 $3,300.00 $3,300.00 2. Remove A.C. Pavement $F 23,968 $0.24 $5,752.32 $0.17 $4,074.56 $0.29 $6,950.72 3. Misc. P.C.C. Removal CY 4,137 $1.10 $4,550.70 $0.56 $2,316.72 $0.80 $3,309.60 4. 1Jnclassified Excav. & Fill CY 765 $10.00 $7,650.00 $5.35 $4,092.75 $12.00 $9,180.00 5. Remove Tree EA 2 $350.00 $700.00 $150.00 $300.00 $150.00' $300.00 6. Relocate M.B. EA 9 $100.00 $900.00 $100.00 $900.00 $120.00 $1,080.00 New M.B. on 4"x4" Post EA 3 $150.00 $450.00 $150.00 $450.00 $110.00 $330.00 7. Adj Valve Can & $0.00 $0.00 $0.00 &Cover to Grade EA I $50.00 $50.00 $75.00 $75.00 $75.00 $75.00 8. Crushed Aggregate TON 514 $17.00 $8,738.00 $20.50 $10,537.00 $11.60 $5,962.40 10. A.C. Pavement3" TON 386 $30.00 $11,580.00 $27.40 $10,576.40 $32.54 $12,560.44 11. A.C. Dike LF 25 $15.00 $375.00 $10.00 $250.00 $10.00 $250.00 12. Crab Side Drain Outlet EA 2 $280.00 $560.00 $2,300.00 $4,600.00 $1,950.00 $3,900.00 13. 8" P.C.C. Curb & $0.00 $0.00 $0.00 24" Gutter LF 851 $9.00 $7,659.00 $10.00 $8,510.00 $10.00 $8,510.00 14. 6" PCC Dr. Approach SF 2,966 $2.05 $6,080.30 $2.00 $5,932.00 $2.05 $6,080.30 15. 4" PCC S.W.. Walkway & D.A. SF 6,527 $1.55 $10,116.85 $1.43 $9,333.61 $1.60 $10,443.20 16. PC Wheelchair Ramp EA 2 $225.00 $450.00 $275.00 $550.00 $175.00 $350.00 17. Adj. WM to Grade EA 7 $50.00 $350.00 $50.00 $350.00 $45.00 $315.00 18. 8" P.C.C. Mow Strip LF 47 $9.00 $423.00 $7.70 $361.90 $7.85 $368.95 19. 4' Chain Link Fence LF 200 $14.00 $2,800.00 $32.00 $6,400.00 $11.75 $2,350.00 20. Trenching & Backfill LF 650 $6.00 $3,900.00 $6.00 $3,900.00 $9.25 $6,012.50 21. lnsd. Sod/Soil Prep/Fine Grading SF 450 $2.00 $900.00 $1.40 $630.00 $2.00 $900.00 22. 1 Gal Shrub "Texas Privet" EA 58 $10.00 $580.00 $6.50 $377.00 $8.30 $481.40 23. 15 Gal Tree "Liquid Amber" EA 2 $100.00 $200.00 $85.00 $170.00 $120.00 $240.00 24. Mexican Fan Palm 12' Min. EA I $200.00 $200.00 $500.00 $500.00 $590.00 $590.00 25. Traffic Control LS I $500.00 $500.00 $1,500.00 $1,500.00 $1,200.00 $1,200.00 26. Traf. Striping/Signing/Hydr. Mark LS I $950.00 $950.00 $770.00 $770.00 $500.00 $500.00 $82,965.17 $83,856.94 $85,539.51 Pagc 3 Eastland Const. Inc. A.L. Chaveq Enterprise Kruze & Kruze Cnnslrnction ltem Item Unit of Estimated Unit Amount Unit Amount Unit Amuunt No. Description Measure Quantity Prices Bid Prices Bid Prices Bid 1. Clearing and Grubbing L.S I $19,000.00 $19,000.00 $3.500.00 $3,500.00 $3,500.00 $3,500.00 2. Remove A.C. Pavement SF 23,968 $0.25 $5,992.00 $0.25 $5,992.00 $0.30 $7,190.40 3. Misc. P.C.C. Removal CY 4,137 $0.50 $2,068.50 $0.95 $3,930.15 $1.87 $7,736.19 4. Unclassified Excav. & Fill CY 765 $8.00 $6,120.00 $20.98 $16,049.70 $7.80 $5,967.00 5, Remove Tree EA 2 $100.00 $200.00 $450.00 $900.00 $430.00 $860.00 6. Relocate M.B. EA 9 $75.00 $675.00 $150.00 $1,350.00 $100.00 $900.00 New M.B. on 4"x4" Post EA 3 $150.00 $450.00 $160.00 $480.00 $125.00 $375.00 7. Adj Valve Can & $0.00 $0.00 $0.00 &Cover to Grade EA I $70.00 $70.00 $175.00 $175.00 $125.00 $125.00 8. Crushed Aggregate TON 514 $12.00 $6,168.00 $18.25 $9,380.50 $20.00 $10,280.00 10. A.C. Pavement 3" TON 386 $30.00 $11,580.00 $40.37 $15,582.82 $58.00 $22,388.00 11. A.C. Dike LF 25 $8.00 $200.00 $15.00 $375.00 $9.00 $225.00 12. Curb Side Drain Oufet EA 2 $800.00 $1,600.00 $250.00 $500.00 $3,500.00 $7,000.00 13. 8" P.C.C. Curb & $0.00 $0.00 $0.00 24" Gutter LF 851 $9.00 $7,659.00 $9.25 $7,871.75 $9.30 $7,9 14.30 14. 6" PCC Dr. Approach SF 2,966 $2.20 $6,525.20 $2.25 $6,673.50 $2.50 $7,415.00 15. 4" PCC S.W., Walkway & D.A. SF 6,527 $1.30 $8,485.10 $1.75 $11,422.25 $1.80 $11,748.60 16. PC Wheelchair Ramp EA 2 $350.00 $700.00 $450.00 $900.00 $250.00 $500.00 17. Adj. WM to Grade EA 7 $50.00 $350.00 $75.00 $525.00 $100.00 $700.00 18. 8" P.C.C. Mow Strip LF 47 $7.00 $329.00 $15.00 $705.00 $5.60 $263.20 19. 4' Chain Link Fence LF 200 $10.00 $2,000.00 $17.50 $3,500.00 $10.00 $2,000.00 20. Trenching & Backf'dl LF 650 $5.20 $3,380.00 $6.20 $4,030.00 $7.00 ' $4,550.00 21, Insd. Sod/Soil Prep/Fine Grading SF 450 $0.50 $225.00 $1.50 $675.00 $4.00 $1,800.00 22. 1 Gal Shrub "Texas Privet" EA 58 $24.00 $1,392.00 $25.00 $1,450.00 $30.00 $1,740.00 23. 15 Gal Tree "Liquid Amber" EA 2 $200.00 $400.00 $200.00 $400.00 $200.00 $400.00 24. Mexican Fan Palm 12' Min. EA I $600.00 $600.00 $600.00 $600.00 $1,200.00 $1,200.00 25. Traffic Conltol LS 1 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $3,500.00 $3,500.00 26. Ttaf. Striping/Signing/Elydr. Ma~k LS 1 $400.00 $400.00 $900.00 $900.00 $1,200.00 $1,200.00 $88,568.80 $99,867.67 $111,477.69 $99,867.73 CITY OF RANCHO CUCAMONGA STAFF REPORT DATE: January 19, 1994 ~ ~ ~ TO: Mayor and Members of the City Council ~. ( ,~ Jack Lam, AICP, City Manager ..- )..:. FROM: Wil' iam J. O'Neil, City Engineer BY: Ltnda R. Beek, Jr. Engineer SUBJECT: AWARD AND AUTHORIZATION FOR EXECUTION OF CONTP~ACT FOR TRAFFIC SIGNALS AND SAFEl~ LIGHTING AT THE INTERSECTION OF HAVEN AVENUE AND BANYAN STREET TO IPS SERVICES, INC., FOR THE AMOUNT OF $202,083.0(3 ($183,712.20 PLUS 10% CONTINGENCY), TO BE F1JNDED FROM TDA ARTICLE 8, ACCOUNT NO. 12-4637-9204 R[COII[IIDATION: It is reconm~ended that the City Council accept all bid proposals as received, award and authorize execution of contract for Traffic Signals and Safety Lighting at the intersection of Haven Avenue and Banyan Street to the 1 owest responsive bidder, IPS Services, Inc., for the amount of $183,712.20 and authorize the Administrative Services Director to expend $202,083.00 ($183,712.20 plus 10% contingency) to be funded from TDA Article 8, Account No. 12-4637-9204. BAC~GROUNI)/ANA~YSIS Per previous Council action, bids were solicited, received and opened on December 22, 1993, for the subject project. IPS Services, Inc., is the apparent lowest responsive bidder with a bid amount of $183,712.20 (see attached bid sunm~a~). The Engineer's estimate was $184,500.00. Staff has reviewed all bids received and found them to be complete and in accordance with the bid requirements. Staff has completed the required background investigation and finds all bidders to meet the requirements of the bid documents. Respectfully submitted, Will Jam J~ O'Neil City Engineer WJO:LRB:ly Attachmen t CITY OF RANCHO CUCAMONGA SUMMARY OF PROPOSALS STREET IMPROVEMENTS, TRAFFIC SIGNALS AND SAFETY LIGIITING IIAVEN AVENUE AND BANYAN STREET Bid Opening, December 22, 1993 Engineers Estimate $120,000.00 1PS Services, Inc. JEG Construction Co. Laird Construction item Item Unit of Estimated Unit Total Unit Total Unit Total No. Description Measure Quantity Prices Prices Prices 1. RemoveA.C. Pavement SF 1,931 $0.40 $772.40 $2.30 $4,441.30 $1.35 $2,606.85 2. Misc. P.C.C. Removal SF 4,550 $0.61 $2,775.50 $2.30 $10,465.00 $1.65 $7,507.50 3. Remove Tre~ EA I $1,150.00 $1,150.00 $350.00 $350.00 $200.00 $200.00 4. Crashed Aggregate TON 250 $31.15 $7,787.50 $33.50 $8,375.00 $38.35 $9,587.50 5. A.C. Pave. & Overlay TON 326 $38.50 $12,551.00 $34.00 $11,084.00 $32.90 $10,725.40 6. Cold Plane SF 6,914 $0.45 $3,111.30 $0.45 $3,111.30 $0.50 $3,457.00 7. Adj. MH to Grade EA $250.00 $250.00 $500.00 $500.00 $500.00 $500.00 8. Adj. WV to Grade EA $200.00 $600.00 $50.00 $150.00 $400.00 $300.00 9. Catch Basin W=4' EA $2,400.00 $2,400.00 $3,200.00 $3,200.00 $2,350.00 $2,350.00 10. Catch Basin W=8' EA $2,750.00 $2,750.00 $3,500.00 $3,500.00 $3,130.00 $3,130.00 11. Catch Basin W=I5' EA $3,570.00 $3,570.00 $4,100.00 $4,100.00 $4,700.00 $4,700.00 12. Outlet Basin W=28' EA $4,300.00 $4,300.00 $5,000.00 $5,000.00 $5,490.00 $5,490.00 13. Transition Slructure No. 3 EA $1,785.00 $1,785.00 $1.900.00 $1,900.00 $1,600.00 $1,600.00 14. PCC Collar EA $325.00 $325.00 $350.00 $350.00 $400.00 $400.00 15. OCPI Inlet &Cover EA $1,900.00 $1,900.00 $1,700.00 $1,700.00 $1,060.00 $1,060.00 16. Under Sidewalk Drain EA $1,900.00 $1,900.00 $1,700.00 $1,700.00 $2,125.00 $2,125.00 17. 8" PCC Curb LF 43 $12.00 $516.00 $12.00 $516.00 $12.15 $522.45 18. 8" PCC Curb & 2,4" Gutter LF 259 $9.00 $2,331.00 $13.50 $3,496.50 $17.40 $4,506.60 19. 4" PCC Sidewalk SF 2,437 $1.75 $4,264.75 $2.85 $6,945.45 $3.00 $7,311.00 20. PCC Wheelchair Ramp SF 592 $4.00 $2,368.00 $2.85 $1,687.20 $3.50 $2,072.{)0 21. 12" Din RCP LF 107 $47.25 $5,055.75 $32.00 $3,424.00 $31.35 . $3,354.45 22. 18" Dia. RP LF 138 $49.35 $6,810.30 $40.00 $5,520.00 $48.20 $6,651.60 23. 24" Dia RCP LF 70 $55.65 $3,895.50 $40.00 $2,800.00 $53.75 $3,762.50 24. Relocate Water Line EA I $4,000.00 $4,000.00 $3,000.00 $3,000.00 $7,150.00 $7,150.00 25. Relocate FH & WV EA I $2,940.00 $2,940.00 $1,400.00 $1,400.00 $2,600.00 $2,600.00 26. Relocate WM EA I $ 1,650.00 $1,650.00 $750.00 $750.00 $1,060.00 $1,060.00 27. Traffic Sig. and Safety Light. LS 1 $87,970.00 $87,970.00 $88,000.00 $88,000.00 $93,850.00 $93,850.00 28. Remove, Relocate & Install LS 1 $300.00 $300.00 $350.00 $350.00 $500.00 $500.00 Traffic Signing $0.00 $0.00 $0.00 29. Restore Landscape & In'. SF 350 $40.00 $3,500.00 $6.00 $2,100.00 $4.00 $1,400.00 30. Traffic Striping & Pave. Mark. LS 1 $2,683.00 $2,683.00 $4,950.00 $4,950.00 $3.000.00 $3,000.00 31. Traffic Control LS 1 $7,500.00 $7,500.00 $2,500.00 $2,500.00 $2,400.00 $2,400.00 $183,712.00 $187,365.75 $195,879.85 Paul Gardner Corporation Sully Miller Contracting Item Item Unit of Estimated Unit Total Unit Total No. Description Measure Quantity Prices Prices 1. Remove A.C. Pavement -~F 1,931 $1.35 $2,606.85 $4.00 $7,724.00 2. Misc. P.C.C. Removal SF' 4,550 $1.65 $7,507.50 $6.50 $29,575.00 3. Remove Tree EA I $200.00 $200.00 $65.00 $65.00 4. Crushed Aggregate TON 250 $38.35 $9,587.50 $24.00 $6,000.00 5. A.C. Pave. & Overlay TON 326 $32.90 $10,725.40 $41.00 $13,366.00 6. Cold Plane SF 6,914 $0.50 $3,457.00 $0.53 $3,664.42 7. Adj. MH to Grade EA 1 $500.00 $500.00 $500.00 $500.00 8. Adj. WV to Grade EA 3 $100.00 $300.00 $300.00 $900.00 9. Catch Basin W---4' EA $2,350.00 $2,350.00 $2,500.00 $2,500.00 10. Catch Basin W=8' EA $3,130.00 $3,130.00 $3,000.00 $3,000.00 11. Catch Basin W=I5' EA $4,700.00 $4,700.00 $4,100.00 $4,100.00 12. Outlet Basin W=28' EA $5,490.00 $5,490.00 $5,100.00 $5,100.00 13. Transition Structme No. 3 EA $1,600.00 $1,600.00 $2,000.00 $2,000.00 14. PCC Collar EA $400.00 $400.00 $725.00 $725.00 15. OCPI Inlet &Cover EA $1,060.00 $ 1,060.00 $2,500.00 $2,500.00 16. Under Sidewalk Drain EA $2,125.00 $2,125.00 $2,500.00 $2,500.00 17. 8" PCC Curb LF 43 $12.15 $522.45 $32.00 $1,376.00 18. 8" PCC Curb & 24" Gutter LF 259 $17.40 $4,506.60 $17.00 $4,403.00 19. 4" PCC Sidewalk SF 2,437 $3.00 $7,311.00 $2.25 $5,483.25 20. PCC Wheelchair Ramp SF 592 $3.50 $2,072.00 $2.75 $ 1.628.00 21. 12" Dia. RCP LF 107 $31.35 $3,354A5 $67.00 $7,169.00 22. 18" Dia. RP LF 138 $48.20 $6,651.60 $67.50 $9,315.00 23. 24" Din. RCP LF 70 $53.75 $3,762.50 $70.00 $4,900.00 24. Relocate Water Line EA I $7,150.00 $7,150.00 $4,850.00 $4,850.00 25. Relocate FH & WV EA I $2,600.00 $2,600.00 $5,700.00 $5,700.00 26. Relocate WM EA I $1,060.00 $1,060.00 $1,300.00 $1,300.00 27. Traffic Signal and Safety Ligh' LS I $109,260.15 $109,260.15 $83,780.00 $83,780.00 28. Remove, Relocate & Install LS I $500.00 $500.00 $450.00 $450.00 Traffic Signing $0.00 $0.00 29. Restore Landscaping & h'rigat SF 350 $4.00 $1,400.00 $1.20 $420.00 30. Traffic Striping & Pave. Mark~ LS 1 $3,000.00 $3,000.00 $2,700.00 $2,700.00 31. Traffic Control LS I $2,400.00 $2,400.00 $4,900.00 $4,900.00 $211,290.00 $222,593.67 CITY OF RANCHO CUCAMONGA STAFF REPORT DATE: January 19, 1994 - TO: Mayor and Members of the City Council Jack Lam, AICP, City Manager FROM: Suzanne Ota, Community Services Manager SUBJECT: APPROVAL OF USAGE AGREEMENT BETWEEN CHAFFEY COMMUNITY COLLEGE AND THE CITY OF RABCHO CUCAMONGA FOR USE OF RECREATIONAL FIELDS AT THE COLLEGE RECOMMENDATION Staff recommends entering into a renewal Agreement with Chaffey Community College for the use of College recreational fields and facilities for youth sport organizations. The Agreement would be renewed to June 30, 1994 at a cost of $25,000.00 to cover maintenance and operations expenses associated with the annual community usage. BACKGROUND In 1991 the City entered into an Agreement with Chaffey Community College for use of additional sports field space constructed at Chaffey College. Since that time Pop Warner Football and Legion Baseball have been the primary users with some use by soccer and little leagues. ANALYSIS This Agreement includes the use of the 90' baseball field for Legion Baseball, the recreation fields year round for community youth sport groups and limited gymnasium use. The City would pay $25,000.00 for annual operation and maintenance of these facilities. Funds are budgeted in the Park Development Fund. When the economic climate improves, it is the mutual desire of both public agencies to mitigate a joint use agreement to include capital improvements to said fields as well as other campus facilities. STAFF REPORT APPROVAL OF USAGE AGREEMENT - CHAFFEY COLLEGE January 19, 1994 Page Two SUMMAR~ The attached renewal Agreement allows youth spo~ organizations to utilize ball fields for games and practices. Staff intends to continue working with College staff to ensure a mutually beneficial Joint-use program for the co~unity. Respectfully s~mitted~'... Co~uj~ty Se~ices Manager S0:kls AGREEMENT Between the City of Rancho Cucamonga and Chaffey Community College District for the use of Chaffey College play fields. TI-US AGREEMENT entered into on the 1st day of [uly ,1993 between the City of Rancho Cucamonga, California, hereinafter referred to as "City", and the Chaffey Community College District, hereinafter referred to as "College". WITNESSETH: WHEREAS, the use of these facilities for community use would be primarily evenings and on weekends. There are no plans for lighting any of the playing fields at this time. The above playing fields would be available for College use during weekdays. WHEREAS, the City and the College deem it desirable to cooperate in the establishment of such an agreement under the conditions hereinafter set forth, now therefore, it is agreed as follows: 1. The City shall provide the architectural services and capital improvements to be negotiated at a future time as development funds become available. This agreement shall be reviewed by both parties prior to initiating any such services or improvements. 2. The College shall grant to the City, in recognition of the preceding, as well as, the fee set forth in item 6 of this agreement, use of the improved play fields located at the south east section of the College for Pop Warher football, gymnasium four times a year, and the Howard Lowder baseball field for Alta Loma American Legion, Post #835. The use of these facilities is conditional upon after school hours and for public rec2reation programs. All scheduling to be arranged through and approved by the manager of the college's fadlities scheduling office. 3. The City shall be responsible to provide necessary security during city sponsored activities for the duration of this agreement. 4. The College and the City agree to hold harmless, indemnify, and defend each other, its elected officials, officers, agents, successors and assigns, from and against all claims, liens, encumbrances, actions, loss, damages, causes of action, expense and/or liability, including court cost and attorney's fees arising from or resulting from loss or damage to property or injury to or death of person(s) resulting in any manner whatsoever directly or indirectly by reason of the City or College operation of the said portion for their sole use. Agreement (con't) Page 2 The College and the City shall provide each other with insurance coverage with respect to said indemnity amounts, form, and content mutually agreeable to the parties to the agreement. Said coverage shall be maintained by the City and College, and the City and the College shall supply to each other certificates indicating the existence of said coverage prior to each school year. 5. The College and the City shall refrain from restricting the use of the site, or any portion thereef, on the basis of sex, marital status, race, color, creed, religion, ancestry or national origin of any person. All such uses pertaining to the foregoing matters shall contain or be subject to substantially the following nondiscrimination or non-segregation clause: "There shall be no discrimination against or segregation of, any person or group of persons on account of sex, marital status, race, color, creed, religion, national origin, or ancestry in the use or enjoyment of the land, nor shall the use itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use of tenants, lessees, sublessee, subtenants, or vendees in the land." 6. This agreement shall extend through June 30, 1994. However, this agreement may be modified or revised at any time, by mutual consent, in writing, and signed by beth parties. This agreement may be terminated, with or without cause, by either party after giving the other party ninety (90) days advance written notice of it's intention to terminate. Maintenance and operation fee shall be $25,000 annually. 7. Communications and notices shall be addressed as follows: Ci_ty College City Manager Vice President, Human Resources City of Rancho Cucamonga Chaffey Community College District Rancho Cucamonga, CA 91729 5885 Haven Ave. Rancho Cucamonga, CA 91737-3002 Agreement (con't) Page 3 WITNESS THE EXECUTION HEREOF the day and year first above written. City of Rancho Cucamonga Chaffey Community College District Authorized Signature Lynda S. Flurry (/ Director of Purchasing Title Date Date ArrESTED: City Clerk Date lo/18/93 Rev. 12/13/93 CITY OF RANCHO CUCAMONGA STAFF REPORT DATE: January 19, 1994 TO: Mayor, and Members of the City Council Jack Lam, AICP, City Manager FROM: William j. O'Neil, City Engineer BY: Steve M. Gilltland, Public Works Inspector~ SUBJECT: APPROVAL OF IMPROVEMENT AGREEMENT EXTENSION FOR TRACT 13717, LOCATED ON THE NORTHEAST CORNER OF CHURCH STREET AND SPRUCE AVENUE, SUBMITTED BY LEWIS HOMES RECOI~(]~DATION It is reconmended that the City Council adopt the attached resolution, accepting the subject agreement extension and security and authorizing the Mayor and City Clerk to sign said agreement. B~CI~GROUI~/AMAI, YSIS Improvement Agreement and Improvement Security to guarantee the construction of the public improvements for Tract 13717 were approved by the City Council on NovenYaer 21, 1991, in the following amounts: TR 13717 Church St. Medians Faithful Performance Bond: $82,000 $64,000 Labor and Material Bond: $41,000 $32,000 The developer, Lewis Homes, is requesting approval of a 12-month extension on said improvement agreement due to slow economic conditions. Copies of the Improvement Agreement Extension are available in the City Clerk's Office. Respectfull~t~.~,.~ William J. ~Neil City Engineer WJO:SMG:sd Attachments LEWIS HOMES MANAGEMENT CORP. 11~ ~ &lotstain AvenuiP.~ ~x eToAJpland, Callfmmla 9178~ I%eee: ~!4]~E-(~'1 Fu: ~14)949-67~ Decend:mr 21, 1993 City of Rancho Cucamonga 10500 Civic Center Drive P, O, Box 907 Rancho Cucamonga, CA 9991730 Attn: Steve M. Cilliland Public Works Inspector Ref.: Extension of Improvement Agreements for Tract 13717 Dear Steve: Enclosed is a set of Improvement Agreement Fartension forms, executed in triplicate, as well as a check in the amount of $251.00 for the above-referenced project. Because of the abrupt slowdown in the housing market, we were forced to choose between finishing this tract or Tract 13351 and, since that map was closer to expiration and had fewer units, we decided to continue on with that tract. The only work left to do on Church Street between Elm and Elm is the median landscaping which we are permitting and will begin installing immediately. None Of the interior sidewalks, landscaping, etc. will be started on Tract 13717 until Tr. 13351 is nearly sold out or the market improves and warrants completing this project. Therefore, we are requesting a one year extension on the above- referenced work items. Thank you for your assistance and your consideration of our request. Sincerely, LEWIS HO!!~SMANAGEM~NT CORP. Don Thompson Project Manager Terra Vista DMT:ksk Enclosures RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUC/~4ONGA, CALIFORNIA, APPROVING IMPROVEMENT AGREEMENT EXTENSION AND IMPROVEMENT SECURITY FOR TRACT 13717 WHEREAS, the City Council of the City of Rancho Cucamonga, California, has for its consideration an Improvement Agreement Extension executed on January 19, 1994, by Lewis Homes as developer, for the improvement of public right-of-way adjacent to the real property specifically described therein, and generally located on the northeast corner of Church Street and Spruce Avenue; and WHERFJ~S, the installation of such improvements, described in said Improvement Agreement and subject to the terms thereof, is to be done in conjunction with the development of said Tract 13717; and WHEREAS, said Improvement Agreement Extension is secured and accompanied by good and sufficient Improvement Security, which is identified in said In~orovement Agreement Extension. NOW, THEREFORE, the City Council of the City of Rancho Cucamenga, California hereby resolves, that said I~rovement Agreement Extension and said Improvement Security be and the same are hereby approved and the Hayor is hereby authorized to sign said Improvement Agreement Extension on behalf of the City of Rancho Cucamonga, and the City Clerk to attest thereto. CITY OFRANCHOCUCAMONGA STAFF REPORT DATE: January 19, 1994 TO: Mayor, and Merabers of the City Council Jack Lam, AICP, City Manager FROM: William J. O'Neil, City Engineer BY: Steve M. Gilltland, Public Works Inspector I~ SUBJECT: APPROVAL OF IMPROVEMENT AGREEMENT EXTENSION FOR TRACT 14192-1, LOCATED ON THE EAST SIDE OF HELLMAN AVENUE SOUTH OF 19TH STREET, SUBMITTED BY HIX DEVELOPMENT RECOIIENDATION It is reconm~nded that the City Council adopt the attached resolution, accepting the subject agreement extension and security and authorizing the Mayor and City Clerk to sign said agreement. BACKGROUN~/MI/M. YSIS Improvement Agreement and Improvement Security to guarantee the construction of the public improvements for Tract 14192-1 were approved by the City Council on November 21, 1991, in the following amounts: Faithful Perfonaance Bond: $1,255,000 Labor and Material Bond: $ 627,500 The developer, Hix Development, is requesting approval of a 12-month extension on said improvement agreement in order to cap pave the streets, which will occur when all on-site construction is complete. Copies of the Improvement Agreement Extension are available in the City Clerk's Office. Respectful)~ submitted, William j~ O'Neil City Engineer WJO:S4~G:sd Attachments ]~]~ HIX DEVELOPMENT CORP. December 16, 1993 Steve M. Gilliland Engineering Division City of Rancho Cucamonga P.O. Box 807 Rancho Cucamonga, CA 91729 RE: EXPIRATION OF IMPROVEMENT AGREEMENT FOR TRACT 14192-1 Dear Steve: Enclosed please find the executed extension agreement (in triplicate) and our fee in the amount of $251. At this time the only work left to be completed is the final capping of the street. We plan to complete this work at the conclusion of our base paving for the second phase (Tract 14192) which should take place in January 1994. Please let me know if you need any additional information in order to process this extension. Bob Y~ielr~~ General Manager Enclosures 437 South Cataract Avenue, Suite 3, San Dimas, California 91773 ', (909) 599-8461 "FAX (909) :,~42. ~,, 41 RESOLUTION NO. ~/Z/~ {~)C)f A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING IMPROVEMENT AGREEMENT EXTENSION AND IMPROVEMENT SECURITY FOR TRACT 14192-1 WHEREAS, the City Council of the City of Ra'ncho Cucamonga, California, has for its consideration an Improvement Agreement Extension executed on January 19, 1994, by Hix Development as developer, for the improvement of public right-of-way adjacent to the real property specifically described therein, and generally located on the east side of Hellman Avenue south of lgth Street; and WHEREAS, the installation of such improvements, described in said Improvement Agreement and subject to the terms thereof, is to be done in conjunction with the development of said Tract 14192-1; and WHEREAS, said Improvement Agreement Extension is secured and accompanied by good and sufficient Improvement Security, which is identified in said Improvement Agreement Extension. NOW, THEREPORE, the City Council of the City of Rancho Cucamonga, California hereby resolves, that said Improvement Agreement Extension and said Improvement Security be and the same are hereby approved and the Mayor is hereby authorized to sign said Improvement Agreement Extension on behalf of the City of Rancho Cucamonga, and the City Clerk to attest thereto. CITY OF RANCHO CUCAMONGA STAFF REPORT DATE: January 19, 1994 TO: Mayor, and Members of the City Council Jack Lam, AICP, City Manager FROM: William j. O'Neil, City Engineer BY: Steve M. Gilliland, Public Works Inspector SUBJECT: APPROVAL OF IMPROVEMENT/U;REEMENT EXTENSION FOR TRACTS 14379 AND 14380, LOCATED ON THE NORTHWEST CORNER OF ETIWANDA AVENUE AND 24TH STREET, SUI)qITTED BY WATT HOMES ~.~(~OATIO~ It is recom~nded that the City Council adopt the attached resolution, accepting the subject agreement extension and security and authorizing the Mayor and City Clerk to sign said agreement. I!~C~GRIAIWD/ANALYSI$ Improvement Agree~nt and I~rove~nt Security to guarantee the construction of the public i~rove~nts for Tracts 14379 and 143~ we~ approved by the City Council on Nov~er 7, 1991, in the foll~ing I 14379 ) 14380 Faithful Perfo~nce ~nd: $829,000 $1,~1,~0 Labor and Material Bond: $414,5~ $ 545,000 The developer, Watt Ho~s, is requesting approval of a 12-~nth ex~nsion on said improv~nt agree~nt due to current ~onomtc conditions. stom drain tmprove~nts, however, have begun. Copies of the I~rove~nt Ag~e~nt Extension are available tn the City Cle~'s Office. Resp~tful ly~)t tted, William j. City Engineer WJO:SNG:sd Attachments WATT HOMES December 29, 1992 CI~ E~C~E[~:NC Mr. Steve Gilliland Engineering Department City of Rancho Cucamonga 10500 Civic Center Drive Rancho Cucamonga, CA 91729 RE: Improvement Agreement For Tract Nos. 14379 and 14380 Dear Mr. Gilliland: The Improvement Agreements for Tract Nos. 14379 and 14380 expired on November 6, 1993. Your are respectfully requeeted to extend the Agreements for one year. The improvements have not yet been completed due to the prevailing soft market demand for upscale luxury residences. It is anticipated that the subject improvements will be completed during the next twelve months. Enclosed are executed Improvement Agreement Extensions (in triplicate) and our check in the amount of $502.00 representing the processing fee. Thank you for your consideration. Sincerely, Thomas E. Heggi President Watt Inland Empire, Inc. TEH/cjm Enclosures 27720 Jefferson Ave. Slate 200. Temec~da. CA 92590 igt,"O) 694-C870 F..-LX 19Cx)) 694-1941 AA A RESOLUTION OF THE CIl"f COUNCIL OF THE CIlY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING IMPROVEMENT AGREEMENT EXTENSION AND IMPROVEMENT SECURITY FOR TRACTS 14379 AND 14380 WHEREAS, the City Council of the City of Rancho Cucamonga, California, has for its consideration an Improvement Agreement Extension executed on January 19, 1994, by Watt Homes as developer, for the improvement of public right-of-way adjacent to the real property specifically described therein, and generally located on the northwest corner of Etiwanda Avenue and 24th Street; and WHEREAS, the installation of such improvements, described in said Improvement Agreement and subject to the terms thereof, is to be done in conjunction with the development of said Tracts 14379 and 14380; and WHEREAS, said Improvement Agreement Extension is secured and acco~anied by good and sufficient Improvement Security, which is identified in said Improvement Agreement Extension. NOW, THEREFORE, the City Council of the City of Rancho Cucamonga, California hereby resolves, that said Improvement Agreement Extension and said Improvement Security be and the same are hereby approved and the Mayor is hereby authorized to sign said Improvement Agreement Extension on behalf of the City of Rancho Cucamonga, and the City Clerk to attest thereto. CITY OF RANCHO CUCAMONGA STAFF REPORT DATE: January 19, 1994 TO: Nayor and Members of the City Council Jack Lam, AICP, City Manager FROM: William J. O'Neil, City Engineer BY: Steve H. Gilliland, Public Works Inspector~ SUBJECT: THE REQUIRED STREET IMPROVEMENTS FOR PARCEL MAP 12959-1 HAVE BEEN COMPLETED IN AN ACCEPTABLE MANNER AND IT IS RECO)ENDED THAT CITY COUNCIL ACCEPT ~ID IMPROVEMENTS, ACCEPT THE MAINTENANCE GUARANTEE BOND IN THE A/4OUNT OF $134,000, AUTHORIZE THE CITY ENGINEER TO FILE A NOTICE OF COMPLETION AND AUTHORIZE THE CITY CLERK TO RELEASE THE FAITHFUL PERFOR~tANCE BOND IN THE AHOUNT OF $1,340,064 RECONENDATION: The required street improvements for Parcel Map 12959-1 have been completed in an acceptable manner, and it is recomnded that City Council accept said improvements, accept the Maintenance Guarantee Bond in the amount of $134,000 authorize the City Engineer to file a Notice of Completion and authorize the City Clerk to release the Faithful Perforn~nce Bond in the amount of $1,340,064. 8ACKGROUND/NIN. YSIS Parcel Map 12959-1 located on the southeast corner of Arrow Highway and White Oak Avenue DEVELOPER: Capellino and Associates 1815 W. 213th Street, Suite 225 Torrance, CA 90501 Accept: Maintenance Guarantee Bond (Street) $134,000 Release: Faithful Performance Bond (Street) $1,340,064 Respectful ~bm~ tted, C William J. DZNell City Engineer WJO:SMG:la Attachment A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ACCEPTING THE PUBLIC IMPROVEMENTS FOR PARCEL MAP 12959-1 AND AUTHORIZING THE FILING OF A NOTICE OF COMPLETION FOR THE WORK WHEREAS, the construction of public improvements for Parcel Hap 12959-I has been completed to the satisfaction of the City Engineer; and WHEREAS, a Notice of Completion is requi red to be filed, certifying the work complete. NOW, THEREFORE, the City Council of the City of Rancho Cucamonga hereby resolves, that the work is hereby accepted and the City Engineer is authorized to sign and file a Notice of Completion with the County Recorder of San Bernardino County. CITY OF RANCH0 CUCAMONGA STAFF REPORT DATE: January 19, 1993 TO: Mayor and blembers of the City Council ~"~ Jack Lam, AICP, City Manager FROM: William j. O'Neil, City Engineer BY: Steve M. Gilliland, Public Works InspectoB~k~~D SUBJECT: THE REQUIRED IMPROVEMENTS FOR THE JERSEY RAILROAD CROSSING HAVE BEEN COMPLETED IN AN A~CEPTABLE btANNER AND IT IS RECO)ENDED THAT CITY COUNCIL ACCEPT SAID IMPROVEMENTS, AUTHORIZE THE CITY ENGINEER TO FILE A NOTICE OF CObtPLETION AND AUTHORIZE THE CITY CLERK TO RELEASE THE FAITHFUL PERFORbIAJ4CE CASH SECURITY IN THE AJ4OUNT OF $50,000. RECOM~MDATIO~: The requi red improvements for the Jersey Boulevard Rail road Crossing have been completed in an acceptable manner, and it is recommended that City Council accept said improvements, authorize the City Engineer to file a Notice of Completion and authorize the City Clerk to release the Faithful Performance Cash Security in the amount of $50,000. B~tJ{CJ~)UMD/IYSIS The Jersey Boulevard Railroad Crossing is located on Jersey Boulevard w/o Mil liken Avenue. DEVELOPER: O'Donnel Property Services 2201 Oupont Drive, Suite 100 Irvine, CA 92715 Rel ease: Faithful Performance Cash Security $50,000 Respectfully submitted, William J~O'Neil City Engineer WJO:SMG:la Attachment RESOLUTION .0. C~(- 0/~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAIqONGA, CALIFORNIA, ACCEPTING THE PUBLIC IMPROVEMENTS FOR THE JERSEY BOULEVARD RAILROAD CROSSING AND AUTHORIZING THE FILING OF A NOTICE OF COMPLETION FOR THE WORI( WHEREAS, the construction of public improvements for the Jersey Boulevard Railroad Crossing have been completed to the satisfaction of the City Engineer; and WHEREAS, a Notice of Completion is required to be filed, certifying the work complete. NOW, THEREFORE, the City Council of the City of Rancho Cucamonga hereby resolves, that the work is hereby accepted and the City Engineer is authorized to sign and file a Notice of Completion with the County Recorder of San Bernardino County. CITY OF RANCHO CUCAMONGA "~ STAFF REPORT DATE: January 19, 1994 - TO: Mayor, and Members of the City Council Jack Lam, AICP, City Manager FROM: William J. O'Neil, City Engineer BY: Steve M. Gilliland, Public Works Inspecto~ SUBJECT: RELEASE OF MAIN~NANCE GUJ~RANTEE BOND FOR MILLIKEN AVENUE, BANYAN STREET, LANDSCAPING AND SIORM DRAIN IMPROVEMENTS ASSOCIATED WITH TRACTS 13748, 13857 AND 13858 LOCATED AT THE SOUTHWEST CORNER OF MILLIKEN AVENUE AND BANYAN STREET RECON~NDATION It is recommended that the City Council authorize the City Clerk to release the Maintenance Guarantee Bond. BACKGROUND/ANALYSIS The required one year maintenance period has ended and the improvements remain free from defects in materials and workmanship. DEVELOPER: Brock Homas 3380 Shelby Street, Suite 100 Ontario, California 917~ Release: ~4aintenance Guarantee Bond $150,240. Respectfully submitted, City Engineer W~O:S~IG:ly CITY OF RANCHO CUCAMONGA STAFF REPORT DATE: January 19, 1994 TO: Mayor and Members of the City Council Jack Lam, AICP, City Manager FROM: William J. O'Neil, City Engineer BY: Linda R. Beek, Jr. EngineergJ~ SUBJECT: ACCEPT THE MILLIKEN AVENUE BIKE ROUTE AND BASE LINE ROAD BIKE LANE, PHASE 1, CONTP~ACT NO. C.O. 93-029, AS COI4PLETE, RETAIN BOND AND AUTHORIZE THE CITY ENGINEER TO FILE A "NOTICE OF CO)4PLETION" AND APPROVE THE FINAL CONTP, ACT AMOUP/T OF $17,624.36. RECOMENDATION: It is reconm~ended that the City Council accept the Milltken Avenue Bike Route and Base Line Road Bike Lane, Phase 1, Contract No. C.O. g3-OZg, as complete, authorize the City Engineer to file a "Notice of Completion", and retain the Faithful Performance Bond in the amount of $15,637.00 to be used as the Maintenance Bond. Authorize the tel ease of the retention in the amount of $1,762.43, 35 days after approval of the final contract amount of $17,624.36. BACXGROUND/ANALYSIS The subject project has been completed in accordance with the approved plans and specifications and to the satisfaction of the City Engineer. The final contract amount is $17,624.36, which includes one minor change order for an additional $1,987.36. The original amount approved by Council was $15,637.80 and the revised amount approved by Council is $17,624.36. ResPectful~.~.t~L~ William J L~O'Neil City Engineer WJO:LRB:ly Attachment RESOLUTION NO. (~L/2, ~>/~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAHONGA, CALIFORNIA, ACCEPTING THE PUBLIC IMPROVEMENTS FOR NILLIKEN AVENUE BIKE ROUTE AND BASE LINE ROAD BIKE LANE, PHASE 1, AND AUTHORIZING THE FILING OF A NOTICE OF COMPLETION FOR THE WORK WHEREAS, the construction of public improvements for Hilltken Avenue Bike Route and Base Line Road Bike Lane, Phase 1, have been completed to the satisfaction of the City Engineer; and WHEREAS, a Notice of Completion is required to be filed, certifying the work complete. NOW, THEREFORE, the City Council of the City of Rancho Cucamonga hereby resolves, that the work is hereby accepted and the City Engineer is authorized to sign and file a Notice of Completion with the County Recorder of San Bernardino County. 52 CITY OF RANCHO CUCAMONGA STAFF REPORT DATE: January 19, 1993 ~ TO: Mayor and Hembets of the City Council "~ Jack Lam, AICP, City Hanager FROM: Wtl~ tam J. O'Neil, City Engineer BY: Ltnda R. Beek, Jr. Engineer~ SUBJECT: ACCEPT THE RESURFACING OF EQUESTRIAN RINKS AT HERITAGE COI~tUNITY PARK, CONTRACT NO. C.O. 93-042, AS COMPLETE, RETAIN BOND AND AUTHORIZE THE CITY ENGINEER TO FILE A "NOTICE OF COMPLETION" AND APPROVE THE FINAL CONTRACT AHOUNT OF $54,543.35. RECO~trNDATIOIh It is recomnended that the CIty Council accept the Resurfacing of Equestrian Rinks at Heritage Co~m~unity Park, Contract No. C.O. 93-042, as complete, authorize the City Engineer to file a "Notice of Completion", and retain the Faithful Performance Bond in the amount of $51,885.35 to be used as the Maintenance Bond. Authorize the release of the retention in the amount of $5,203.35, 35 days after approval of the final contract amount of $54,543.35. BACXGROUND/AJiN. YSIS The subject project has been c~leted in accordance with the approved plans and specifications and to the satisfaction of the City Engineer. The final contract amount is $54,543.35, which includes one minor change order for an additional $2,658.00. The original amount approved by Council was $51,885.35 and the revised amount approved by Council is $54,543.35. Respectfull_y` submitt~$, Will tam J.L~'Netl City Engineer WJO:LRB:ly Attachment RESOLUTTON NO- ,::~/"/- O/C// A RESOLUT~ON OF THE: CITY COUNCZL OF THE CZTY OF RANCHO CUC,NqONGA, CAL~F'ORNIA, ACCEPTING THE: PUBL1~C TMPROVENENTS F'OR RESIJRFACTNG OF EQUESTP,~AN R~NKS AT HERITAGE COMI,tlNZTY PARK AND AIJTHOR~ZZNG THE FZL[NG OF A NOTZCE OF COMPLETZON FOR THE WORK WHERF_AS, the construction of public improvements for Contract for Resurfacing of Equestrian Rinks at Heritage Community Park have been completed to the satisfaction of the City Engineer; and WHEREAS, a Notice of Completion is required to be filed, certifying the work complete. NOW, THEREFORE, the City Council of the City of Rancho Cucamenga hereby resolves, that the work is hereby accepted and the City Engineer is authorized to sign and file a Notice of Completion with the County Recorder of San Bernardino County. CITY OF RANCHO CUCAMONGA STAFF REPORT DATE: January 19, 1994 TO: Mayor and Members of the City Council Jack Lam, AICP, City Manager FROM: Will iam J. O'Neil, City Engineer BY: Linda R. Beek, Jr. Engineer] SUBJECT: ACCEPT THE CONTP~ACT FOR ASPHALT OVERLAY ON HELMS AVENUE, LUCAS RANCH ROAD, AND SANTA ANITA AVENUE, CONTP~ACT NO. C.O. 93-053, AS COMPLETE, RETAIN BOND AND AUTHORIZE THE CITY ENGINEER TO FILE A "NOTICE OF CO qPLETION" AND APPROVE THE FINAL CONTRACT AHOUNT OF $93,979.40. RIECOI~EIII)~TION: It is recommended that the City Council accept the Contract for Asphalt Overlay on Helms Avenue, Lucas Ranch Road, and Santa Artira Avenue, Contract No. C.O. 93-53, as complete, authorize the City Engineer to file a "Notice of Completion", and retain the Faithful Perromance Bond in the amount of $92,214.80 to be used as the Maintenance Bond. Authorize the release of the retention in the amount of $9,397.94, 35 days after approval of the final contract amount of $93,979.40. BACKGROUNO/ANN.YSIS The subject project has been completed in accordance w~th the approved plans and specifications and to the satisfaction of the City Engineer. The final contract mount is $93,979,40 which includes one minor change order for an additional $1,764.60. The original amount approved by Council was $92,214.80 and the revised amount approved by Council is $93,979.40. Respectfully submitted, Will faro O.~O'Netl City Engineer WJO:LRB:ly Attachment RESOLUTION NO. ~'~' A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAJ4ONGA, CAJ_IFORNIA, ACCEPTING THE PUBLIC IMPROVEMENTS FOR CONTRACT FOR ASPHALT OVERLAY ON HELMS AVENUE, LUCAS RANCH ROAD, AND SANTA ANITA AVENUE, AND AUTHORIZING THE FILING OF A NOTICE OF COMPLETION FOR THE WOPJ( WHEREAS, the construction of public improvements for Contract for Asphalt Overlay on Helms Avenue, Lucas Ranch road, and Santa Artira Avenue, have been completed to the satisfaction of the City Engineer; and WHEREAS, a Notice of Completion is required to be filed, certifying the work co~lete. NOW, THEREFORE, the City Council of the City of Rancho Cucamonga hereby resolves, that the work is hereby accepted and the City Engineer is authorized to sign and file a Notice of ConM~letion with the County Recorder of San Bernardino County. CITY OF RANCHO CUCAMONGA STAFF REPORT DATE: January 19, 1994 - TO: Mayor and Members of the City Council Jack Lam, AICP, City Manager FROM: WilT Jam J. O'Neil, City Engineer BY Mike O1 lvier, Senior Civil Engineer SUBJECT: ESTABLISHMENT OF AN UNDERGROUND UTILITY DISTRICT NO. 94-01, ALONG ROCHESTER AVENUE FROM FOOTHILL BOULEVARD TO ARROW ROUTE, USING RULE 20A FUNDS RECII,!!ENDATIOti Approval of a resolution establishing Underground District No. 94-01, along Rochester Avenue from Foothill Boulevard to Arrow Route, using Rule 20A funds. 8ACXGROUND/AJiALYSIS Southern California Edison allocates undergrounding funds to each City based on the number of electrical meters in the City. The use of these funds is governed by what is referred to as the Rule 20A regulations. Rule 20A covers all activities for undergrounding and are paid for by SCE except modifications or replacements of electrical service panel s for users. Rule 20A funds are reserved for heavily used streets, and or for scenic purposes. The project must also be a minimum of 600 feet in length. The City contacted Edison with a request to have Edison underground some 1 ines along a portion of Rochester Avenue near the Sports Complex. Edison called Engineering staff and indicated an interest in using the Rule 20A funds to finish the entire street between Foothill Boulevard and Arrow Route. Edison indicated there is good opportunity to complete this area since there a-e no other utilities using these poles and a large portion of the underground conduit exists. However, it should be noted that these poles also have 66 KV lines on the top of them. ?his means the 66 KV would remain overhead and the poles would not be removed. What is removed are the lower crossbars that carry the 12 KV. We would then see two of the existing four crossbars removed, along with the existing underground to overhead feeder 11nes. The Clty's current underground project is on Base Line Road and is estimated at $160,000. The Rochester project is estimated at $100,000. The City currently has over $500,000 in Rule 20A funds, so both projects can be bull t using funds currently available. CITY COUNCIL STAFF REPORT UNDERGROUND UTILITY DISTRICT January 19, 1994 Page 2 Edison staff has assured the City that there will be no conversion costs for the current users. They will continue the existing services on-site via overhead feeds. Therefore, there will be no public interference with service or any need for additional contrtbutlons to compl ere the project. Presen~y there are three structures on the west side of Rochester Avenue that maintain overhead service. One is a church/office and the other is a manufacturing business. Both of these will continue the overhead feed by Edison. The business will have an on-site pole whereas the church will need a temporary overhead feed that crosses Rochester Avenue at Foothill Boulevard. This installation is expected to be shorU ived. As soon as the southwest corner develops the temporary service will be removed. There is one residence on the east side at Foothill Boulevard that has an overhead feed that does not cross Rochester Avenue. Thls will not be changed with this project. Respectfully Submitted, / William J. O'Neil City Engineer WJO:dl w RESOLUTION NO. W' (~)/~ A RESOLUTION OF THE CIl~f COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, FORMING UNDERGROUND UTILITY DISTRICT NO. 94-01, ALONG ROCHESTER AVENUE FROM FOOTHILL BOULEVARD TO ARROW ROUTE WHEREAS, a public hearing was h~ d on December 15, 1993, at the hour of 7:00 P.M. at the City Hall Council Chambe-s, 10500 Civic Center Drive, Rancho Cucamonga, California, to determine whether the public necessity, health, safety or wel fare requires the formation of an underground utility venue fro. Foothill Bo.levard to ,rrow Route. ncho a i~n WHEREAS, a notice of such hearing has been given to all affected proper~ owners as shown on the 1 ast equal ized assessment roll and to all utilities concerned in the manner and for the time required bylaw; and WHEREAS, such hearing has been duly and regula~y held and all persons interested have been given an opportunity to be heard. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, HEREBY RESOLVES the following: Section 1: It is hereby found and determined pursuant to Rancho Cucamonga Municipal Code Section 13.04 and the definitions contained hereln that the public necessity, health, safety and welfare requires the formation of an underground utility district along Rochester Avenue from Foothill Boulevard to Arrow Route, in order to remove excessive overhead utility wires, and associated structures and to underground utilities along said portion of Rochester Avenue. Said Rochester Avenue is a public street which is extensively used by the general public and carries a heavy volume of vehicular traffic. Section 2: An underground utility district to be known as Underground Utility District No. 94-01, is hereby established in that area along Rochester Avenue from Foothill Boulevard to Arrow Route, Rancho Cucamonga, California, more particulaMy described as follows: Those portions of Map of Rochester Tract, ~p Book 9 Page 20, as recorded in the office of the San Bernardino County Recorde-, California, lying within a strip of land 240 feet wide, the centerl ine of said strip being the cente~ ine of Rochester Avenue (Orange Avenue) as shown on said Map. Section 3: All 12 KV wires and associated overhead structures shall be removed and underground installations made in said underground utility district within the following times and conditions: a. Underground install ation by util try companies and property owners and reconnections no later than August 1, Igg4. b. That the Southern California Edison Company utilizes Rule 20A funds to underground the first one-hundred twenty-five feet of service I atetel for those property owners requi red to be converted to underground. Section 4: The City ~ erk is hereby directed to mai~ a copy hereof and a copy of Municipal Code Section 13.04 to all affected property owners as shown on the last equalized assessment roll and to all affected utilities within ten (10) days after adoption of this resolution. FOOTHILL BLVQ, 'T F- n- QUAKES STADIUM c~:-c'~-¢~ro~ t i t le; __~ "';~,, CITY OF RANCHO CUC&% A '~ ,~ > VICINITY MAP N page CITY OF RANCHO CUCAMONGA STAFF REPORT DATE: January 19, 1994 TO: Mayor and Members of the City Council Jack Lain, AICP, City Manager FROM: Jerry B. Fulwood, Deputy City Manager SUBJECT: APPROVAL TO FORM YOUTH ACCOUNTABILITY BOARD RECOMMENDATION That City Council approve the formation of the Youth Accountability Board by the County of San Bernardino Probation Department to serve in the City of Rancho Cucamonga by minute action. On August 18, 1993, City Council adopted the Anti-Graffiti Task Force recommendatinas. One of those recommendations was to implement a Youth Accountability Board through the County Probation Department. This program is currently available for City Council consideration. ANALY$I$ The Youth Accountability Board is aimed at the tirst time offender. The youth most "at risk" of continual criminal behavior and the most responsive to deterring or preventative measures are those first time offenders to receive the attention necessary to "set them straight". More often than not, their cases are never adjudicated through the Probation or Court System and consequently, they are not held accountable for their actions. This, in turn, sends these youth an unequivocal message regarding our expectations of their personal responsibility. Accountability Boards are panels of dedicated, community volunteers who serve as agents of the Probation Department as they hear, and resolve cases involving first-time youthful offenders who are deemed most amenable to rehabilitative measures. These youths volunteer to appear before the Accountability Board and allow it to determine the "sentences" in the form of restitution and community service time. In exchange for successfully completing the Accountability Board process the record of his criminal offense will be eliminated. If the youth fails to complete his commitment to the Board his case is referred back to a probation officer for processing through the Juvenile Court system. CITY COUNCIL MEETING APPROVAL TO FORM YOUTH ACCOUNTABILITY BOARD January 19, 1994 Page 2 During the hearing board members will discuss the crime and its ramifications with the youth and agree on a "contract" ou~ining his obligations. The victim will also have an opportunity to address the board and present any claims for restitution. The youth and his parents must then sign a contract which will typically consist of a community service commitment, restitution if applicable, mandatory participation in a six week drug class on social responsibility and the successful completion of a drug and alcohol class if either were involved in the criminal incident. Re~y~bmi~ ~WOO~ ~ Deputy City Manager JBF:dk Attachments YOUTH A COUNTABILITY BO'ARD PROGKA.MGUIDELEN'ES INTRODUCTION The Youth Accountability Board serves both the community and the offender. First, it allows the community to share in the responsibility for resolving the problems of. juvenile crime. It joins programs like Neighborhood Watch an~ Citizens on Patrol in creating a partnership between the community and government. Second, it offers enhancement to the disposition of the numerous manor .~ases referred to t~e Juvenile Justice system. Currently, many of these cases receive only a cursory review before bein~ settled out of court. Counse!ing and education arranged by the Board provides support for parents while the community service imposed on minors raises their awareness of the impact and consequences of their behavior. Additionally, the community service aspects of the program provides the community at large with a benefit rather than a loss from juvenile crime. The First ~'outh Accountability Board in San Mernardino County was developed as a pilot project in the city of Hesperia. The seed for the concept ~a~ planted by a local resident who ha~ worked on e similar program in the state of Idaho. The San Bernardino County Sheriff's Depar--~ment and Probation Department saw the concept as a viable solution to a community need. The two departments combined their efforts to develop the concept into a functioning program. This program is' now V. he model for other communities to copy. What follows is a description cf this model program and some of the important considerations for implementation of YouthAccountability Boards in other communities. BACKGROUND Juvenile diversion is a program administered .by the Probation Department which seeks to find alternatives to the prosecution of Juveniles, especially first offenders. This is often desirable to avoid the detrimental aspects of cou=%. proceedings and dispositions, including their substantial cost to the taxpayers. When Juvenile diversion was at its peak in the late 1970s many pro~ation ~ff!cers provided effective dispositions for ~uve~les diverted from the 'court system. Adequate staffing of diversion programs allowed officers to be creative and to follow throughwith diverted youth. However, as the population grew while resources dwindled, diversion became nothing more than a flood gate, keeping volumes of minor offenders out of the courts but offer.lag no meaningful services. The problem of limited resources continues to restrict the ability of the juvenile justice system to serve the fire= time and minor offender. The concept employed by the Youth Accountability Board Brings the resources of the community to bear on the problem. The program adopts the philosophy employed by Law Enforcement programs such as Neighborhood ~qa~ch and Citizens on Patrol. That is, that the community ~t large can join with government to reduce crime and improve public safety. It merges this philosophy, with the concept of Alternative Dispute Resolution which has paralleled ~he development of community participation in law enforcement overt he past decade. Alternative Dispute Resolution offers mediation through community volunteer~ as an alternative to court resolution of miner civil actions. These two concepts are brought together as the Youth Accountability Board. The program provides for the diversion of Juvenile first offenders to a Board uf community volunteers who mediate a disposition with the minor and his or her parents. The disposition usually involves both restitution to the victim and community service. Additionally it may require the minor and parents to participate in educational prograr~s, counseling or youth organizations. PROCESS FollFwing arrest an~ investigation by law enforcement officers, cases are reviewed by the probation officer. If deemed appropriate for diversion, a letter is sent to the minor and parents advising them of the option to have their case heard by the Youth Accountability Board. If this invitation is accepted, coordinator for the Board notifies the parents of a meeting and collects some social history information. A hearing panel is composed cf five members of the Board. This panel meets with the minor and parents to review the circumstances of the offense and other pertinent information. The panel then suggests ,an appropriate disposition. If the minor and parents are in agreement, a contract is signed. The contract specifies what the minor must do to have the case resolved. Once the community service is completed and other conditions of the contract are met, the case is closed. Resolution of the case through the accountability Board affords the minor the additional benefit of having no formal record made of the referral or disposition. Community service provides a cons==u~tive punishment for the act while educational programs, counselln~ and youth group participation provide support and constructive activities. The most signi£iuant aspect of this program is the enhancement that is brought to the process by members of the Board. "Each member of the Board brings to this process · lifetime of experience. Many have contacts with service organizations or other resources that could be of benefit to minors referred to the Board. Additionally, the Board members get an opportunity to participate in the juvenile justice process, raising their awareness of Juvenile issues and improving the relationship between the community and the justice system. PROGRAM STAFFING Members of the Youth Ao=ountability Board represent all walks of li~e. Each member volunteers to attend a monthly business meeting, tO superyise community service projects and to Sit on a hearing panel. The program requires th~ coordinated effort of Law Enforcement, Probation and the community. Both Probation and the local Law Enforcement Agency designate a liaison to the Board. Initially these liaisons work together to develop the volunteer group that becomes the Youth Accountability Board. As most Law Enforcement AgenCies have well developed volunteer services, this is ~he logical place to recruit Board members. From the Board membership, a Program Social Investigator is selected. This is the individual who will coordinate the actual case hearings, prepare necessary paperwork and complete the initial family contact. The Program Social Investigator needs to have subs=antial time to donate to the program as well as the social zkil!s to interview families and work with the other members of Board. VOLUNTEER TRAINING As this is a program serving youth and due to the confidential nature of the hea=ings, all prospective Board membe:s =hcu!cl be screened through ~aw Enforcement or Probation volunteer services. Commlets backgroun~ checks should be completed including criminal record searches. Board members should be added to the volunteer forces of the participating departments. All Board members who sit on hearing panels should receive training in the areas of the history of juvenile Justice the law, Juvenile procedure and ccnfldentiality. This tra'~ing can be conducted through the training departments of the participating agencies. INSURANCE As youth will he participating An work programs, there is a possibility of injury. The key to reducing the risk of injury is controlling the -nature of the work, as=uring a safe work environment and providing close su~ervision~ This is why Board members must ~e able to volunteer time to supervise work projects. If the work is on public property, the county worker's compensation program covers the minors on the job site. Ad~iticnall~ it is advisable that the Board raise funds to purchase a medical insurance ~olicy. Local service organize=ions may be willing to provide the necessary funding. If work projects are conducted on private proper=y, the property owner must be insured to cover any potential claims. WORK SITES As the purpose of community service is to return some:binS to the community a larEe. work sites are SeneralIy in public areas. These include parks, schools and recreational &teas. Representatives of parks'and recreation. fire districts and schools should be invited to particlpate in the Board. Work on ,on-public property Should express a community service. Examples include assis:inS clean up of property belonsinS to elderly persons or disabled persons and volunteer work in medical facilities. CO~UNITY RESOURC[S As much as possible, youth orSanizations. community service Sroups, counselors and teachers should be recruited for the Board. These individuals and Sroups provide valuable resources for the youth referred to the Board. GETTING ST.~aTED If a YouthAccountability Board could meet the needs of your community and if the community is ready to support the proSram, the first step is to designate representatives for the Probation Department and La~ Enforcement. These individuals should work toEether to develop the volunteer core of the accountability Board. They may wish to contact representatives of an operational Board to observe meetinZs and henrinse and to discuss strateSies for' implementation. The attached packaSs includes by-laws and other forms of the Hesperia Youth Accountability Board. These should be helpful in developinS new proSrams, Software for =hess forms is also available. Contact: JUVENILE JUSTICE 0 VERFLO W PROBATION esoo ooo KYc 2o Jl:I 220 RYEF 40CYA 100+ PRIVATE PLACEMITNT 15, 000 ~ .DIVERSION PROGRAMS YOUTH ACCOUNTABILITy BOARD + ~~Co~tr~Ot Communlly Merebeta Community Service Restitution Education, Support 8  YOUTH ACCOUNTABILITY BOARD Diversion Process Arrest (/,J:~,'~ Probation E~ Juvenile Courl [~ FIns .,.~ .. Out-of-Home Probation Officer Placement 7 ~ COntrmci Reatltullon ~ E~> F-q [~ Community Service -_ Family Counseling Education Accountability Beard CITY OF RANCHO CUCAMONGA '~ STAFF REPORT - · DATE: January 19, 1994 TO: Mayor and Members of the City Council FROM: Susan Mickey, Management Analyst I SUBJECT: CONSIDERATION TO ADOPT A RESOLUTION TO REGULATE BASIC TIER CABLE RATES AND RELATED EOUIPMENT COSTS A8 ALLOWED BY THE CABLE TELEVISION CONSUMER PROTECTION AND COMPETITION ACT OF 1992 RECOMMENDATION: That the City Council consider the attached resolution which adopts rules consistent with those prescribed by the FCC and allows the City to regulate rates and related equipment costs of the basic service tier of Simmons Cable TV, Marks Cablevision (DCA) and Comcast Cablevision per the Cable Television Consumer Protection and Competition Act of 1992 (the 1992 Cable Act). BACKGROUND: The City Council initially considered the issue of rate regulation on October 20, 1993. At that time the Council chose to have the item tabled until after the first of the year following a request by William Marks St., managing partner of DCA Cablevision. Due to the fact that the City has already submitted the FCC Certification Form 328, and the FCC has extended the rate freeze deadline to February 15, 1994, the City has lost no ground by delaying a decision. The FCC released its Report and Order with regard to the rate regulation conditions of the 1992 Cable Act. In accordance with the provisions of the document, the attached resolution adopts the rules outlined by the FCC and allows the City to regulate the basic service tier rate and the related equipment costs as permitted under federal law. Staff submitted the required rate regulation application (Form 328) to the FCC and the three cable companies in September, 1993. The form was received by the FCC on September 24, 1993. The City can presume it was certified by the FCC to regulate on October 24, 1993. In order to be allowed to regulate, the City Council needs only to decide to regulate and approve the attached resolution which adopts the rules. The Council also needs to direct staff to notify the cable companies that the City has been certified, has adopted the rules and intends to regulate. The City has 120 days from October 24, 1993, to complete the actions. Although there is no deadline for a City to begin regulating, if the City delays longer than the 120 day time period, the certification process must be started over. If the Council opts not to regulate, then the rules are not adopted and the cable companies are not notified. The basic tier of service and related equipment charges will then go unregulated until or unless the Council chooses to regulate at a future date. ANALYSIS: The City will be allowed to regulate only the basic tier of service (over the air broadcast channels - ABC, NBC, CBS and access channels) and related equipment costs. The second tier of cable programming service (CNN, ESPN) and related equipment costs may be regulated by the FCC, but will be reviewed only upon receipt of a complaint filed by an interested party. Programming offered on a per-program or per-channel basis (HBO, Showtime is exempt from any regulation. The City will be somewhat restricted by the guidelines set by the Federal Communications Commission. The rate guidelines are derived from a formula based on the GNP fixed weight price index (GNP-PI) and, if the City chooses to regulate, are reviewed by the City. The City must provide an opportunity for "interested parties" to comment on the proposed rates. If a cable company submits a rate increase which is beyond that set by the FCC, it must justify the rate increase through a "cost of service showing." Should a rate increase be denied by the City, the cable company can appeal the decision to the FCC for a final determination. Further ruling changes by the FCC are anticipated as the full implications of the 1992 Cable Act become known. Additionally, the telephone companies are beginning to be allowed to provide cable service which will impact competition and therefore, regulation. Staff, the City's Cable TV consultant and the City Attorney's office intend to stay advised of revisions and will keep you informed. Respectfully Submitted, Susan Mickey Management Analyst I A RESOLUIIC~ OF ~ME ~l'iY CIYjNCIL OF ~l ~A'AY OF ~ OF ~mv~ ~.~I~ ~ ~ ~C S~ ~ ~.~ (i) ~ ~ of ~ a~ (~ ,,~ ~,) ~ ~ a ~ ~ ~ a ~le ~im ~ ~ ~ ~lev~im ~ S~ ~le ~; ~ ~ii) ~ ~ of ~ ~ ~ ~ ~ ~ ~,1~ ~ ~l~i~ ~ ~ ~ ~t ~ m a ~ly (iii) ~ F~i ~le ~im ~ ~o~m ~ ~titi~ ~ of 1992 (h~ ,,~ 1992 ~le ~,,) ~ ~ ~ ~ (iv) ~ 1992 ~le ~ ~ ~ F~ ~~ ~ a ~le ~l~i~ ~~ a~i~ my ~,~ ~ m~ ~ a ~le ~lev~i~ ~; ~ (vi) A ~ti~ of ~ ~ ~ ~ ~t a ~~ (vii) ~ Ci~, ~ ~ f~~ a~i~ f~ ~ ~le ~ (viii) ~ Ci~ ~ ~tL~ a F~m 328 ~~ ~ ~ rail ~ ~ ~ ~id ~ifi~ti~ f~ ~ f~ ~ ~ ~; ~ ~ve ~. ~ ~, ~e Ci~ h~ f~ ~ ~1~ ~ folly: ~. ~ all ~ ~ ~ f~ ~ ~ ~i~, ~ A, of ~ ~t it will r~a~ mhle ~l~im m~ ~~ wi~ ~ ~S ~ ~tio~ ~1~ ~ ~ ~, ~ ~ my, f~ CITY OF RANCH0 CUCAMONGA STAFF REPORT - DATE: January 19, 1994 TO: Mayor and Members of the City Council Jack Lain, AICP, City Manager FROM: Rick Gomez, Community Development Director BY: Brad Buller, City Planner SUBJECT: Consideration to approve a Joint Exercise of Powers Agreement with the County of San Bernardino, the cities of Claremont, Fontana, La Verne, Rialto, San Bernardino, and · Upland for the administration of a consolidated program of design and maintenance of the Route 30 Freeway Corridor between La Verne and San Bernardino. That the City Council review the Joint Exercise of Powers Agreement (JPA), and adopt the attached Resolution approving the agreement which the Mayor would then sign on behalf of the City Council. marv4~ROumu The cities along the Route 30 Corridor have been meeting since April of 1992 to coordinate the design and construction of the Route 30 Corridor between the cities of La Verne and San Bernardino. The City of Rancho Cucamonga's City Council Public Works Subcommittee, Mayor Pro Tem Charles J. Buquet, II, and Council Member Diane WilliaM, have hosted these meetings. The Route 30 Form, has spent the last 20 months discussing a wide range of topics related to the Route 30 Corridor and, in December, completed its review and development of this 3PA. The purpose of the JPA, as noted above, is to establish a coordinated program to design and maintain Route 30. The cities included in these discussions are Claremont, Fontann, La Verne, Rancho Cucamonga, Rialto, San Bernardino, and Upland. Caltrans Districts 7 and 8 as well as SANBAG are also participating in this process. The City Council Public Works Subcommittee supports the adoption of the J~A and, if approved by this City Council, will forward our City's support to the other six cities at its meeting on February 15, 1994. Adoption Of this JPA is only the initial step and will be followed by various Technical Committee meetings of the Forum members to address the specifics of the corridor design and ultimate maintenance. CITY COUNCIL STAFF REPORT JOINT EXERCISE OF POWERS AGRMT. January 19, ~994 Page 2 At the present time, participation in the JPA will not result in any direct costs to the City. Indirect costs will include the costs of City staff to participate in the Forum and the Technical Committee meetings and possible grant application preparation. In addition, as agreed to by all the cities, this JPA does not include any provisions for bonding assessments or similar revenue generators . Respect~ull submitted,  mmUnity Development Director :BB/jfs Attachments: Exhibit "A" - JPA Contract Resolution JOINT EXERCISE OF POWERS AGREEMENT (CORRIDOR DESIGN AUTHORITY) THIS AGREEMENT is dated ae Of , 1993, by and among the COUNTY OF SAN BERNARDINO, a political subdivision of the State of California, and the Cities of CLAREMONT, FONTANA, EA VERNE, RANCHO CUCANONGA, RIALTO, SAN BERNARDINO, and UPLAND, municipal corporations duly organized and existing under the laws of the State of California (collectively, the "Agencies"); WITNESSETH: WHEREAS, each of the Agencies is authorized to take action for the public purposes of the Agencies, and the Agencies wish to form a joint powers authority under the Joint Exercise of Powers Law of the State of California (Government Code Section 6500 et seq.) for the purpose of establishing an entity for the administration of a consolidated program of design and maintenance along the Route 30 freeway corridor within the cities of claremont, Fontana, La Verne, Rancho Cucamonga, Rialto, San Bernardino, and Upland. NOW THEREFORE, in consideration of the above premises and of the mutual promises herein contained, the Agencies do hereby agree as follows: 1 ARTICLg I DEFINITIONB Section 1.01. Definitions. Unless the context otherwise requires, the words and terms defined in this Article shall, for the purpose hereof, have the meanings herein specified. 'Agt' means Articles 1 through 4 (commencing with Section of Chapter 5, Division 7, Title I of the Government Code. "Aareement' means this Joint Exercise of Powers Agreement, as originally entered into or as amended from time to time. "Authority' means the Authority established pursuant to Section 2.02 of this Agreement. "Board" means the Board of Directors of the Authority referred to in Section 2.03, which shall be the governing body of the Authority. "Directors" means the representatives of the Agencies appointed to the Board pursuant to Section 2.03. "Fiscal Year" means the period from July 1 in any calendar year and including June 30 in the succeeding calendar year. "Public Improvements" means any land, improvements, facilities and equipment to be used for the public purposes of the Agencies. 'Secretary" means the Secretary of the Authority appointed pursuant to Section 3.01. "Treasu~q~" means the Treasurer of =he Authority appointed pursuant to Section 3.02. - 2 - 0 G~N~RAL PROVISIONS Section 2.01. Purpose. The purpose of this Agreement Is to provide for the joint exercise of powers conunon to the Agencies including, but not limited to, Uhe acquisition of funds to the Agencies through grants, ISTEA, or any other monies to enable public improvements through the acquisition, construction, and improvement thereof by the Authority. Section 2.02. Creation of Authority. Pursuant to the Act, there is hereby created a public entity to be known as the "Corridor Enhancement Authority." The Authority shall be a public entity separate and apart from the Agencies, and shall administer this Agreement. (a) Additional Member Aoencies. Additional cities may become new members of the Authority upon the majority vote of the existing Board of Directors. This Agreement shall be amended to reflect each new agency. (b) Ex-Officio Members. The following agencies shall be ex- officio members of the Authority: (1) ColTtans District 7; (2) ColTtans District 8; (3} San Bernardino Associated Goverrunents (4} East Valley Resource Conservation District; (5) Inland Empire West Resource Conservation District. (6) Metropolitan Transportation Authority Said ex-officio members shall have no voting rights. Additional ex-officio meters may be appointed by the majority vote of the Board of Directors. - 3 - 81 se~tion 2.03. B~ard of Directors. The Authority shall be governed by a Board of Directors composed of 14 members, each serving in his/her individual capacity as members of the governing board and without compensation. Two Council members shall be appointed as Directors by each of the Cities participating in this Agreement. Bach member shall be entitled to one vote. Council members appointed by uhe City Council shall serve at the pleasure of the appointing body and until their respective successors are appointed and qualified. Bach party to this Agreement shall appoint an alternate member who may be a member of the staff of the governmental entity and shall be entitled to vote at any Authority meeting in the absence of one m~mher of the legislative body. Section 2.04. Meetings of the Board. (a) Re ar Meetin s. The Board shall provide for its regular meetings; provided, however, that at least one regular meeting shall be held each year. The date, hour and place of the holding of regular meetings shall be fixed by resolution of the board and a copy of such resolution shall be filed with the Agencies. (b) S~ec~al Meetinos. Special meetings of the board shall be called in accordance with the provisions of Section 54956 of the Government Code. (c) Call. Notice and Conduct of Meetinas. All meetings of the Board, including without limitation, regular, adjourned regular and special meetings, shall be called, noticed, held and conducted ~n accordance with the provisions of the Ralph M. Brown Act of ~he Government Code. - 4 - Section 2.05, Minutes. The Secretary shall cause to be kept minutes of the meetings of the Board and shall, as soon as possible after each meeting, cause a copy of the minutes to be forwarded to each Director and to the Agencies. Section 2.06. Voting. Each Director shall have one vote. Section 2.07. Quorum; Required Votes; Approvals. Directors holding a majority of the votes shall constitute a quorum for the transaction of business, except that less than a quorum may adjourn from time to time. The affirmative votes of a majority of the Directors shall be required to take any action by the Board. If any member agency chooses not to participate, financially or otherwise, in any specific project or activity of the Authority, the voting rights of the Director from that Agency shall be suspended as to that project or activity. Section 2.08. Bylaws. The Board may adopt, from time to time, such bylaws, rule8 and regulations for the conduct of its meetings as are necessary for the purposes hereof. ARTI~.= TXI OFFXCZRB AND EMPLOYEES Section 3.01. Chaimn, Vice-Chairman, Executive Director and sacretary. The Board shall elect a Chairman and Vice-Chairman from among the Directors, and shall appoint a Secretary and may appoint an Executive Director who need not be Directors. The officers shall perform the duties normal to said officers. The Chairman shall sign all contracts on behalf of the Authority, and shall perform such other duties as may be imposed by the Board. In the absence of the Chairman, the Vice-Chairman shall sign contracts and perform all of the Chairman°s duties. In the absence of an Executive Director, the chairman shall administer the day to day affairs of the Authority and shall execute the policies and directires of the Board. The Secretary shall countersign all contracts signed by the chairman or Vice-Chairman on behalf of the Authority, perform such other duties as may be imposed by the Board and cause a copy of this Agreement to be filed with the Secretary of State pursuant to the Act. section 3.02. Treasurer. Pursuant to Section 6505.6 of the Act, the Auditor/Controller of San Bernardino county is hereby designated as the Treasurer of =he Authority. The Treasurer shall be the depository, shall have custody of all of the accounts, funds and money of the Authority from whatever source, shall have the duties and obligations set forth in Sections 6505 and 6505.5 of the Act and shall assure that there shall be strict accountability of all funds and reports of all receipts and disbursements of the Authority. As provided in Section 6506 and Section 6505.6 of the Act, the Treasurer shall make arrangements with · certified public accountant or firm of certified public accountants for the annual audit of accounts and records of the Authority. - 6 - Section 3.03. officers in Charge of Records, Funds and Accounts. Pursuant to Section 6505.5 of the Act, the Treasurer shall have charge of, handle and have access to all accounts, funds and money of the Authority and all records of the Authority relating thereto; and the Secretary shell have charge of, handle and have access to all other records of the Authority. Section 3.04. Bending Persons Having Access to Public Improvements. From time to time, the Board may designate persons, in addition to the Executive Director, the Secretary and the Treasurer, having charge of, handling or having access to any records, funds or accounts or any public improvement or project of the Authority. The Board shall designate the respective amounts of the official bonds of the Executive Director, the Secretary and the Treasurer and other persons pursuant to Section 6505.1 of the Act. Section 3.05. Legal advisor. The San Bernardino County Counsel's Office, or any other legal advisor as determined by the Board of the Authority, shall act as the legal advisor of the Authority, shall perform such duties as may be prescribed by the Board, and shall be compensated at its regular hourly rate. Section 3.06. Other bployees. The Board shall have the power by resolution to appoint and employ such other consultants and independent contractors as may be necessary for the purposes of this Agreement. All of the privileges and immunities from liability, exemption from laws, ordinances and rules, all pension, relief, disability, workers' compensation and other benefits which apply to the activities of officers, agents or employees of public agency when performing their respective functions shall apply to the officers, agents or employees of the Authority to the same degree and extent while engaged in performance of any of the functions and other duties of such officers, agents or employees under this Agreement. - 7 - None of the officers, agents or employees directly employed by the Board shall be deemed, by reason of =heir employment by the Board to be employed by the Agencies or, by reason of =heir employment by the board, to be subject to any of the requirements of the Agencies. Section 3.07. Assistant Officers. The Board may by resolution appoint such assistants to act in the place of the Secretary or other officers of the Authority (other than any Director), and may by resolution provide for the appointment of additional officers of the Authority who may or may not be Directors, as the Board shall from time to time deem appropriate. - 8 - ARTI~-m IV POWERS Section 4.01. General Powers. The Authority shall exercise in the manner heroin provided the power of each of the Agencies and necessary to the accomplishment of the purposes of this Agreement, subject to the restrictions set forth in Section 4.04. As provided in the Act, the Authority shall be a public entity separate from the Agencies. Section 4.02. Power to Issue Revenue Bonds. There may come a time when the JPA wishes to issue revenue bonds. This section is reserved for that power and any change shall be ratified by each agency belonging to the JPA. Section 4.03. Specific Powers. The Authority is hereby authorized, in its own name, to do all acts necessary for the exercise of the foregoing powers, including but not l~mited to, any or all of the following: (a) to make and enter into contracts; (b) to employ agents or employees; (c) to acquire, construct, manage, maintain or operate any public improvement; (d) to sue and be sued in its own name; (e) to apply for, accept, receive and disburse grants, loans and other aids from any agency of the United States of America, State of California or County of San Bernardins; - 9 - (f) to invest any money in the treasury pursuant to Section 6505.5 of the Act which is not required for the immediate necessities of the Authority, as the Authority determines advisable, in the same manner and upon the same conditions as local agencies, pursuant to Section 53601 of the Government Code~ (g) to carry out and enforce all the provisions of this Agreement; (h) to make and enter into agreements, assignments and other documents of any nature whatsoever as may be necessary or convenient in the exercise of its powers hereunder or under the Act; (i) to make loans to the Agencies or any of the Agencies for the purposes hereof, or to refinance indebtedness incurred by the Agencies in connection with any of the purposes hereof; (j) to exercise any and all other powers as may be provided in the Act. Section 4.04. Restrictions on Exercise of Powers. The powers of the Authority shall be exercised in the manner provided in the Act and shall be subject (in accordance with Section 6509 of the Act) to the restrictions upon the manner of exercising such powers that are imposed upon San Bernardins County and/or Los Angeles Coun=y in =he exercise of similar powers. Section 4.05. Authority/Member Projects, A Member of the Authority may propose projects within the Member's territory and the Authority itself may propose projects, subject to ~he limitations set forth herein. - 10 - With respect to Member proposed projects within the territory of such M~mher, each Member, by official action of its city council or Board of Supervisors, must approve such projects. All approved projects will be undertaken by the Authority as funds are available to the Authority for such purpose. The initial authorization to proceed with the implementation of specific projects by the letting of contracts or the appropriation of funds shall require a majority vote of the Board of Directors. A Member, by official action of its governing body, may withdraw a project located within its territorial jurisdiction from consideration at any time until such initial authorization to proceed has been granted by the Authority. A Member may carry out within its boundaries any activity which may legally be undertaken by the Member which does not involve the expenditure of Authority funds, and no approval of the Authority shall be required for such projects. section ~.06. obligations of Autherity. The debts, liabilities and obligations of the Authority shall not be the debts, liabilities and obligations of the Agencies. - 11 - ARTICLE V METHODS OF PROCgDURE; CREDIT TO MEMBERS Section 5.01. Assumption of Responsibilities by the Authority. As soon as practicable after the date Of execution of this Agreement, the Directors shall give notice (in the manner required by Section 2.04) of the organizational meeting of the Board. At said meeting, the Board shall provide for its regular meetings as required by Section 2.04 and elect a chairman and Vice-Chairman, and appoint the Secretary and, if necessary, may appoint the Executive Director. section 5.02. Delegation of Pewers. The Agencies hereby delegate to the Authority the power and duty to acquire, by lease, lease-purchase, installment sale agreements, or otherwise, such public improvements as may be necessary or convenient for the operation of the Authority or any of the Agencies. Section 5.03. credit to Mesbers. In consideration of the agreement by the Agencies to administer the Authority, all accounts or funds created and established pursuant to any instrument or agreement to which the Authority is a party, and any interest earned or accrued thereon, shall inure to the benefit of the Agencies in direct proportion to the amounts contributed. - 12 - Al~Tlf~'.m VI CONTRIBUTION: ACCOUNTS AND REPORTS; FUNDS Section 6.01. Contributions. The Agencies may, in the appropriate circumstance, when required hereunder: (a) make contributions from their treasuries for the purposes set forth herein, (b) make payments of public funds to defray the cost of such purposes, such advances to be repaid as provided herein, or (d) use its personnel, equi~nent, or property in lieu of other contributions or advances. The provisions of Section 6513 of the Government Code are hereby incorporated into this Agreement by reference. Section 6.02. Accounts and Reports. To the extent not covered by the duties assigned to a trustee chosen by the Authority, the Treasurer shall establish and maintain such funds and accounts as may be required by good accounting practice or by any provision of any trust agreement entered into with respect to the proceeds of any bonds issued by the Authority. The books and records of the Authority in the hands of a trustee or the Treasurer shall be open to inspection at all reasonable times by duly appointed representatives of the Agencies. The Treasurer, within 180 days after the close of each fiscal year, shall give a complete written report of all financial activities for such fiscal year to the Agencies to the extent that such activities are not covered by the report of such trustee. The trustee appointed under any indenture or trust agreement shall establish suitable funds, furnish financial repor~cs and provide suitable accounting procedures to carry out the provisions of said trust agreement. Said trustee may be given such duties in said indenture or trust agreement as may be desirable to carry out this Agreement. - 13 - 91 Section 6.03. Funds. Subject to the applicable provisions of any instrument or agreement which the Authority may enter into, which may provide for a trustee to receive, have cuB=ody of and disburse Authority funds, =he Treasurer of the Authority shall receive, have custody of and disburse Authority funds in accordance with laws applicable to public agencies and generally accepted accounting practices, and shall make the disbursements required by this Agreement or to carry out any of the provisions or purposes of this Agreement. - 14 - ARTICLE VII. section 7.01. Term. This Agreement shall become effective, end the Authority shall come into existence, on the date hereof, and this Agreement and the Authority shall thereafter continue in full force and effect so long as the Authority shall own any interest in any public improvements. Section 7.02. Withdrawal. A. An Agency may withdraw from the Authority and terminate its obligations under this Agreement upon the giving of 60 days written notice to the Authority. Written notice shall be accompanied by a Resolution or minute order which authorizes the withdrawal by governing body of the Agency. B. Subsequent to withdrawal, the Agency shall have a continuing responsibility to perform the duties and obligations required by this Agreement which are based on facts, events, or occurrences that predate withdrawal or termination. Section 7.03. Disposition of Assets. Upon termination of this Agreement, all proper~y of the Authority, both real and personal, shall remain under the ownership of the Authority. Parties rescinding their participating in the Authority through this Agreement shall receive the residual of their Contributions to the Authority for acquisition of public improvements, less the proportionate share of accumulated depreciation as determined by the Treasurer of the Authority in accordance with generally accepted accounting practices. Upon termination of this Agreement, all property of the Authority, both real and personal, shall be divided among the parties hereto in shares proportionate to the total contributions for the acquisition of said property made by the parties to this Agreement. ~ 15 - VIII. MISCwr.r-2tNEOUS PROVISIONS Section 8.01. Notices. Notices hereunder shall be in writing and shall be sufficient if delivered COUNTy OF SAN BER~/~DINO COUNTY OF LOS A~GELES Clerk of the Board of Supervisors Clerk of the Board of Supervisors 385 Arrowhead Avenue, Second Floor Kenneth Hahn Hall of Administration San Bernardino, CA 92415-0130 Room 383 500 W. Temple Street Los Angeles, CA 90012 CITY OF CL~a~EMONT CITY OF PJ~NCHO CUCAMONGA City Clerk City Clerk 207 Harvard Avenue P.O. Box 807 Claremont, CA 91711 Rancho Cucamonga, CA 91729 CITY OF FONTANA CITY OF RIALTO City Clerk City Clerk 8353 Sierra Avenue 150 Palm Avenue Fontana, CA 92335 Rialto, CA 92378 CITY OF LA VERNE CITY OF SAN BERN~/~DINO City Clerk city clerk 3660 "D' Street 300 North "D" Street La Verne, CA 91750 San Bernardino, CA 92401 CITY OF UPLAND SANBAG City Clerk Wee McDaniel, Executive Director P. O. Box 460 472 North Arrowhead Avenue Upland, CA 91785 San Bernardino, CA 92401 - 18 - EAST VALLEY ~SOURCE CONSERVATION DISTRICT MarJorie Dougher~y, Administrative Manager 1200 Arizona Street, #A-7 Redlands, CA 92374 INI3~ND EMPIRE WEST R~SOURCE CONSERVATION DISTRICT Jeff Wilson, District Manager 2816 Eas= 4th Street Ontario, CA 91764 METROPOLITAN TRANSPORTATION AUTHORITY San Gabriel Area D~rector 818 West 7th Street, Suite 300 Los Angeles, CA 90017 - 17 - section 8,02, Section Headings, All section headings in this Agreement are for convenience of reference only and are not to be construed as modifying or governing the language in the section referred to or to define or limit the scope of any provision of this Agreement. section 8,03. Consent. Whenever in this Agreement any consent or approval is required, the same shall not unreasonably be withheld. Section 8.04. law G~verning. This Agreement is made in the State of California under the Constitution and laws of the State of California, and is to be so construed. Section 8.05. Amendments. This Agreement may be amended at any time, or from time to time, except as limited by contract with the owners of bonds issued by the Authority or by applicable regulations or laws of any jurisdiction having authority, by one or more supplemental agreements executed by the parties to this Agreement either as required in order to carry out any of the provisions of this Agreement or for any other purpose, including without limitation addition of new parties (including any legal entities or taxing areas heretofore or hereafter created) in pursuance of the purposes of this Agreement. section 8.06. Enforcement by Authority. The Authority is hereby authorized to take any legal or equitable actions, including but not limited to injunction and specific performance, necessary or permitted by law to enforce this Agreement. section 8.07. Severability. should any par= or provision of this Agreement be decided by any court of competent jurisdiction to be illegal or i~ conflict with any law of the State of california, or otherwise be rendered unenforceable or ineffectual, the validity of the remaining portions or provisions shall not be affected thereby. - 18 - S~ction 8.08. Successors. This Agreement shall be binding upon and shall inure to the benefit of the successors of the Agencies, respectively. None of the Agencies may assign any right or obligation hereunder without written consent of the other Agencies. - 19 - IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and attested by their proper officers duly authorized and their official seals to he hereto affixed, on the day and year set opposite the name of each of the parties. COUNTY OF SAN BERN~DINO Chairman, Board of Supervisors Date: SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUMENT HAS BEEN DELIVERED TO THE CHAIP~4AB OF THE BOARD Clerk of the Board of Supervisors of the County of San Bernardino By. - lO - CITY OF CLAREMONT, CALIFORNIA By-' Ti=le-' (SEAL) ATTEST: City Clerk Approved as to Form: City Attorney CITY OF FONT/~A, CALIFORNIA By-' Title-' (SEAL) ATTEST: City Clerk Approved as to Formz C~ty Attorney - 21 - CITY OF LAVEI~NE, CALIFOP~NIA Title= (SEAL) ATTEST: City Clerk Approved as to Form: City Attorney CITY OF UPLAND, CALIFORNIA Title: (SEAL) ATTEST: City Clerk Approved el to Form: city Attorney - 22 - CITY OF RANCHO CUCAMONGA, CALIFOR/~IA By= Title= (SEAL) ATTEST= City Clerk Approved as =o Form: City Attorney CITY OF RIALTO, CALIFORNIA Title= (SEAL) ATTEST: City Attorney - 23 - 101 CITY OF SAN BERNARDINO, CALIFORNIA By: Title: (SEAL) ATTEST: City Clerk Approved as to Form: City Attorney - 24 - 102 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, C~LIFORNIA, EXECUTING A JOINT EXERCISE OF POWERS AGREEMENT TO FORM A ROUTE 30 FREEWAY CORRIDOR DESIGN AUTHORITY. WHEREAS, the City of Rancho Cucamonga is authorized under the Joint Exercise of Powers Law, Government Code Section 6500 et. seq. to join in the formation of a joint powers authority; and WHEREAS, decisions are currently being made that will affect the design, maintenance, and operation of the completed Route 30 Freeway; and WHEREAS, the City Council of the City of Rancho Cucamonga finds that a cooperative effort for a consolidated program of design and maintenance along the Route 30 freeway corridor, which runs through the cities of Claremont, Fontaria, La Verne, Rancho Cucamonga, Rialto, San Bernardino, and Upland, and Los Angeles and San Bernardino Counties, can be of benefit to the people of the City of Rancho Cucamonga. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rancho Cucamonga as follows: Section 1. That the City Council of the City of Rancho Cucamonga has reviewed the provisions of the draft agreement attached to this Resolution and agrees to become a Member Agency of the "Corridor Design Authority." Section 2. That the Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Resolution and thereupon the same shall take effect and be in force. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed and attested by their proper officers duly authorized and their official seals to be hereto affixed, on the day and year set opposite the name of each of the parties. 108 APPRAISAL REPORT LAND VALUE STUDY 8.56 ACRES SOUTH SIDE OF FERON BOULEVARD, BEGINNING 558+-- FEET WEST OF TURNER AVENUE RANCHO CUCAMONGA, CALIFORNIA Market Value Study as of July 17, 1992 Prepared for RANCHO CUCAMONGA REDEVELOPMENT AGENCY · City of Rancho Cucamonga 10500 Civic Center Drive Rancho Cucamonga, California 91729 Prepared by R. P. LAURAIN & ASSOCIATES, INC. 3353 Linden Avenue, Suite 200 Long Beach, California 90807 R. P. LAURA I & ASSOCIATES 3353 LINDEN AVENUE. SUITE 200 JUly 20, 1992 Rancho Cucamonga Redevelopment Agency City of Rancho Cucamonga 10500 Civic Center Drive Rancho Cucamonga, California 91729 Attention: Mr. Olen Jones Senior Redevelopment Analyst Subject: Land Value Study 8.56 Acres South side of Feron Boulevard, beginning 558+ feet west of Turner Avenue Rancho Cucamonga, California In accordance with your request, I have personally inspected and completed an appraisal of the above-captioned property. The subject property is zoned for low/medium density residential: development, which zone classification permits four to eight dwelling units per acre, or a total of 34 to 68 units. Per a Density Bonus Agreement between the City of Rancho Cucamonga and Jean Deukmejian, executed October 15, 1986, the subject site can be developed with 20 additional residential units "for a maximum total of eighty-eight (88) units." The subject acreage equals 372,874 square feet of land area; the development density of 88 units equals 4,237 square feet of land area per unit. After considering the various factors which influence the value of the subject land, the unencumbered fee simple market value, as of July 17, 1992, is estimated at: ONE MILLION SIX HUNDRED FIFTY THOUSAND DOLLARS $1,650,000. The foregoing value is subject to (1) the assumptions and limiting conditions set forth in the Preface Section, and (2) the valuation study set forth in the Valuation Analysis Section. No portion of this report shall be amended or deleted. APPRAISERS ANALYSTS Rancho Cucamonga Redevelopment Agency City of Rancho Cucamonga Attention: Mr. Olen Jones Senior Redevelopmerit Analyst July 20, 1992 Page 2 This appraisal report is submitted in triplicate; I have retained a file copy. If you require any additional information from my file, it would be appreciated if you would contact me at your convenience. Very truly yours, RPL:II R, P. LAURAXN TABLE OF CONTENTS Title Page Letter of Transmittal Table of Contents PREFACE Executive Summary Location Map Date of Value Purpose of the Appraisal Property Rights Appraised Appraiser's Certification Scope of the Investigation Assumptions and Limiting Conditions Terms and Definitions SUBJECT PROPERTY DESCRIPTION Vestee Property Address Legal Description Plat Drawing Site Description Building Improvements Other Improvements Assessment Data Owner Notification Ownership History Neighborhood Environment VALUATION ANALYSIS Highest and Best Use Valuation Methods Market Data Approach Final Estimate of Land Value TABLE OF CONTENTS (Continued) MARKET DATA Summary of Land Sales Land Sales Data Market Data Map ADDENDA Photographs Qualifications of Appraiser EXECUTIVE SUMMARY PURPOSE OF APPRAISAL: Market value estimate of subject land. ADDRESS: 9901+-- Feron Boulevard Rancho Cucamonga, California LOCATION: South side of Feron Boulevard, beginning 558+__ feet west of Turner Avenue. VESTEE: Jean Deukmejian, trustee for Deukmejian Family Trust. SITE: Dimensions: Various dimensions; see plat drawing. Area: 8.56 acres, or 372,874 square feet. Configuration: "L" shape. Zoning: LM (low/medium density residential); sub- ject property has density bonus which increases the maximum potential develop- ment to 88 units. IMPROVEMENTS: Comment: No building improvements on site. HIGHEST AND BEST USE: As zoned, with development density of 88 residential units. DATE OF VALUE: July 17, 1992. VALUE INDICATIONS: Market Data Approach: $1,650,000. Cost Approach: Not applicable. Income Approach: Not applicable. RECONCILIATION: The Market Data Approach is the only approach applicable as a reliable value indicator. MARKET VALUE ESTIMATE: $1,650,000. P. LAURAIN ASSOCIATES ,,., · b~:' -""'Location Map ,::::': ;:-, ,.,-,,,.-,,,:,: ......,. FOREST ', 2 ~' ~c. .... IARDINO 8LOQMINGTON DATE OF VALUE The date of value employed in this report, and all opinions and computations expressed herein, are based on July 17, 1992. Said date being generally concurrent with (1) the last review of the subject property, and (2) the valuation analysis process. PURPOSE OF THE APPRAISAL The purpose of this appraisal report is to express an estimate of the market value of the subject land, in fee simple, absent any liens, leases, or other encumbrances, as of the date of value set forth above. The definition of market value is set forth in the following portion of this section following the heading "Terms and Definitions." Further, it is the purpose of this appraisal report to describe the subject property, and to render an opinion of the highest and best use based on (1) the character of existing and potential development of the property appraised, (2) the requirements of local governmental authorities affecting the subject property, (3) the reasonable demand in the open market for properties similar to the subject property, and (4) the location of the subject property considered with respect to other existing and competitive areas in the City of Rancho Cucamonga, as well as neighboring communities. Further, it is the purpose of this appraisal report to provide an outline of certain factual and inferential information which was compiled and analyzed in the process of completing this appraisal study. PROPERTY RIGHTS APPRAISED The property rights appraised herein are those of the unencumbered fee simple interest. Fee simple is defined as, "An absolute fee; a fee without limitations to any particular class of heirs, or restrictions, but subject to the limitations of eminent domain, escheat, police power, and taxation. An inheritable estate." 1-2 CERTIFICATION The undersigned does hereby certify, except as otherwise noted in this appraisal report, that: I have personally inspected the subject property; I have no present or contemplated future interest in the real estate which is the subject of this appraisal report. Also, I have no personal interest or bias with respect to the subject matter of this appraisal report, or the parties involved. The amount of the fee is not contingent upon reporting a predetermined value or upon the amount of the value estimate. Also, to the best of my knowledge and belief the statements of fact contained in this appraisal report, upon which the analyses, opinions, and conclusions expressed herein are based, are true and correct. This appraisal report sets forth all of the special and limiting conditions (imposed by the terms of this assignment or by the undersigned), affecting the analyses, opinions, and conclusions contained herein. The analyses, opinions, and conclusions, were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. As of the date of this report, I have completed the requirements of the Continuing Education Program of the Appraisal Institute, and the American Society of Ap- praisers. That no one other than the undersigned prepared the analyses, conclusions, and opinions that are set forth in this appraisal report concerning the real estate. Further, no other person provided significant professional assist- ance. nal~d P~.Eaur~!~L.,St~PA, 'ASA Date: July 20, 1992 SCOPE OF THE INVESTIGATION The appraiser, in connection with the following appraisal study, has: 1. Been retained, and has accepted the assignment, to make an objective analysis/valuation study of the subject property and to report, without bias, his estimate of fair market value. The subject property . is particularly described in the following portion of this report in the section entitled Subject Property Description. 2. Toured the general area by automobile to acquaint himself with the extent, condition, and quality of nearby developments, sales and offerings in the area, density and type of development, topographical features, economic conditions, trends toward change, etc. 3. Walked within the subject property, and some of the nearby neighborhood, to acquaint himself with the current particular attributes, or shortcomings, of the subject property. 4. Completed an inspection of the subject property for the purpose of becoming familiar with certain physical characteristics. 5. Made a visual observation concerning public streets, access, drainage, and topography of the subject property. 6. Obtained information regarding public utilities and sanitary sewer available at the subject site. 7. Made, or obtained from other qualified sources, calculations on the area of land contained within the subject property. Has made, or caused to be made, plats and plot plan drawings of the subject property, and has checked such plats and plot plan drawings for accuracy and fair representation. 8. Taken photographs of the subject property, together with photographs of the immediate environs. SCOPE OF THE INVESTIGATION (Continued) 9. Made, or caused to be made, a search of public records for factual information regarding the recent sales of the subject property, and for recent sales of comparable properties. Has viewed, confirmed the sale price, and obtained certain other information pertaining to each sale property contained in this report. 10. Reviewed current maps, zoning ordinances, and other material for additional background information pertaining to the subject property, and sale prop- erties. 11. Attempted to visualize the subject property as it would be viewed by a willing and informed buyer, as well as a willing and informed seller. 12. Interviewed various persons, in both public and private life, for factual and inferential information helpful in this appraisal study. 13. Formed an opinion of the highest and best use applicable to the subject property appraised herein. 14. Formed an estimate of market value, as of the date of value set forth herein, for the subject property. 15. Prepared and delivered this appraisal report, in triplicate, in summation of all the activities outlined above. ASSUMPTIONS AND LIMITING CONDITIONS This appraisal is made with the following understanding as set forth in items No. I through 12, inclusive: 1. That title to the subject property is assumed to be good and merchantable. Liens and encumbrances, if any, have not been deducted from the final estimate of value. 2. That the appraiser assumes there are no hidden or unapparent conditions of. the subject property subsoil which would render them more or less valuable. Further, the appraiser assumes no responsibility for such conditions or for the engineering which might be required to discover such conditions. The property appraised is assumed to meet all governmental codes, requirements, and restrictions, unless otherwise stated. 3. That no soils report, topographical mapping, or survey of the subject property was provided to the appraiser; therefore information, if any, provided by other qualified sources pertaining to these matters is believed accurate, but no liability is assumed for such matters. Further, information, estimates and opinions furnished by others and contained in this report pertaining to the subject property and market data were obtained from sources considered reliable and are believed to be true and correct. No responsibil- ity, however, for the accuracy of such items can be assumed by the appraiser. 4. That unless otherwise stated herein, it is assumed there are no encroachments, easements, soil toxics/- contaminates, or other physical conditions adversely affecting the value of the subject property. 5. That no opinion is expressed regarding matters which are legal in nature or other matters which would require specialized investigation or knowledge ordinar- ily not employed by real estate appraisers, even though such matters may be mentioned in the report. ASSUMPTIONS AND LIMITING CONDITIONS (Continued) 6. That there are no mineral resources On the subject property having a commercial value. Market sales which were examined make no distinction as to the existence of mineral resources or recognition of value therefor. The value of all minerals of all kinds is therefore excluded from the value of the total property. 7. That the appraiser has conducted a visual inspection of the subject property and the market data properties. Should subsequent information be pro- vided relative to changes or differences in (1) the quality of title, (2) physical condition or characteris- tics of the properties, and/or (3) governmental restrictions and regulations, which would increase or decrease the value of the subject property, the appraiser reserves the right to amend the final estimate of value. 8. That the appraiser, by reason of this appraisal, is not required to give testimony in court or at any governmental or quasi-governmental hearing with reference to the property appraised, unless contrac- tual arrangements have been previously made there- for. 9. That drawings, plats, maps, and other exhibits contained in this report are for illustration purposes only and are not necessarily prepared to standard engineering or architectural scale. 10. That this report is effective only when considered in its entire form, as delivered to the client. No portion of this report will be considered binding if taken out of context. 11. That possession of this report, or a copy thereof, does not carry with it the right of publication, nor shall the contents of this report be copied or conveyed to the public through advertising, public relations, sales, news, or other media, without the written consent and approval of the appraiser, ASSUMPTIONS AND LIMITING CONDITIONS (Continued) particularly with regard to the valuation of the property appraised and the identity of the appraiser, or the firm with which he is connected, or any reference to the Appraisal Institute, or the American Society of Appraisers, or designations conferred by said organizations. 12. That this appraisal study is considered completely confidential and will not be disclosed or discussed, in whole or in part, with anyone other than the client, or persons designated by the client. TERMS AND DEFINITIONS In the following report, your appraiser has used certain technical terms which are defined, herein, for the benefit of those who may not be fully familiar with said terms. MARKET VALUE (or Fair Market Value): The highest price, estimated in terms of money, which would be paid by a willing buyer to a willing seller, allowing sufficient reasonable time to find a buyer, both buyer and seller acting without duress and both being fully advised as to the purposes to which the property can be best used. Market Value is estimated as of the date of valuation set forth in the appraisal. The California Code of Civil Procedure, S1263.320, states: "(A) The fair market value of the property taken is the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell, and a buyer, being ready, willing, and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available. (B) The fair market value of property taken for which there is no relevant market is its value on the date of valuation as determined by any method of valuation that is just and equitable." MARKET DATA APPROACH: One of the three accepted methods of estimating Market Value. This approach consists of the investigation of recent sales of similar properties to determine the price at which said properties sold. The information so gathered is judged and considered by the appraiser as to its comparability to the subject property. Recent comparable sales are the basis for the Market Data Approach. R, P, LAURAIN & ASSOCIATE~ TERMS AND DEFINITIONS (Continued) COST APPROACH: Another accepted method of estimating Market Value. This approach consists of estimating the new construction cost of the building and yard improvements and making allowances for appropriate amount of depreciation. The depreciated reconstruction value of the improvements is then added to the Land Value estimate gained from the Market Data Approach. The sum of these two figures is the value indicated by the Cost Approach. INCOME APPROACH: The Income Approach consists of capitalizing the net income of the property under study. The capitalization method studies the income stream, allows for (1) vacancy and credit loss, (2) fixed expenses, (3) operating ex- penses, and (4) reserves for replacement, and estimates the amount of money which would be paid by a prudent investor to obtain the net income. The capitalization rate is usually commensurate with the risk, and is adjusted for future depreciation or appreciation in value. DEPRECIATION: Used in this appraisal to indicate a lessening in value from any one or more of several causes. Depreciation is not based on age alone, but can result from a combination of age, condition or repair, functional utility, neighborhood influences, or any of several outside economic causes. Depreciation applies only to improvements. The amount of depreciation is a matter for the judgment of the appraiser. HIGHEST AND BEST USE: Used in this appraisal to describe that private use which will (1) Yield the greatest net return on the investment. (2) Be permitted or have the reasonable probability of being permitted under applicable laws and ordinances. (3) Be appropriate and feasible under a reasonable planning, zoning, and land use concept. 1-10 SUBJECT PROPERTY View looking southeasterly at the subject property from Feron Boulevard. See additional photographs in the Addenda Section. VESTEE: Jean Deukmejian, Trustee for Deukmejian Family Trust. PROPERTY ADDRESS: 9901+_ Feron Boulevard Rancho Cucamonga, California. LEGAL DESCRIPTION: Parcel No. 2, Parcel Map 10208, per map recorded in Book 120, Pages 59-60 of Parcel Maps, in the office of the County Recorder, County of San Bernar- dino, California. 2-1 SITE DESCRIPTION LOCATION: South side of Feron Boulevard, beginning 558+ feet west of Turner Avenue, within the corporate limits of the City of Rancho Cucamonga. LAND SHAPE: "L" shape. DIMENSIONS: Various dimensions; see highlighted por- tion of plat drawing on the opposite page. LAND AREA: 8.56 acres per San Bernardino County Assessor's mapping, or 372,874+-- square feet. TOPOGRAPHY: Effectively level to gently sloping down- ward from north to south. DRAINAGE: Appears to be adequate. No major depressions or low areas were noted within the bounds of the subject property which would cause a water ponding condition during the rainy season. SOIL STABILITY: Assumed to be adequate based upon other developments in the immediate area. It should be noted, however, that the appraiser was not provided with a soils report. SOIL CONTAMINATION: None known or observed, however, a soils study has not been provided to the appraiser. The subject property has been appraised as though free of soil contaminates and toxics. ACCESS: The subject property has 601.28 feet of frontage on Feron Boulevard, and 240.15 feet on Ramona Avenue. The A.T.&S.F. Railroad right-of-way borders the subject site along the south property line; rail spur access is not available. LAURAIN 2-2 SITE DESCRIPTION (Continued) RIGHT-OF-WAY WIDTH: Feron Boulevard: 68 feet. Ramona Avenue: 65 feet (unimproved). STREET SURFACING: Asphalt paved traffic lanes on Feron Boulevard. CURB AND GUTTER: Concrete curb and gutter on each side of Feron Boulevard. SIDEWALK: Concrete sidewalk on each side of Feron Boulevard. STREET LIGHTS: Mounted on ornamental standards. PUBLIC UTILITIES: Water, gas, electric power, and telephone are available at the site. SANITARY SEWER: Available at site. ENCROACHMENTS: None apparent. The appraiser, however, was not provided with a survey of the subject property. EASEMENTS: A title report was not provided to the appraiser. Easements, if existing, are assumed to be located along the prop- erty lines, not interfering with the highest and best use development. It is as- sumed there are no "blanket' or "cross lot" easements. EARTHQUAKE FAULT: The subject property is not located in an earthquake study zone. FLOOD HAZARD AREA: The subject property is not located within a flood zone, per data issued by the Federal Emergency Management Agency. ILLEGAL USES: None observed. PRESENT USE: Vacant land. SITE DESCRIPTION (Continued) ZONING: LM (low/medium density residential devel- opment). The development density is four to eight units per acre which, in the subject case, permits 34 to 68 residential units. The subject site, however, has a bonus density which permits a maximum of 88 residential units. Development requirements include a mini- mum land area of five acres, maximum building height of 35 feet, open space requirement of 300 square feet per ground level unit, and 150 square feet per upper story unit. Common open space shall be a minimum of 10%; usable open space (private and common) shall be 45%. Parking requirements include 1.3 spaces per studio (single) unit, 1.5 spaces per one bedroom units, 1.8 spaces per two bedroom units, and 2.0 spaces per three bedroom units. Additionally, one guest space is required per four units. Guest parking can be open; approximately one- half total tenant parking shall be in a garage or carport. BUILDING IMPROVEMENTS COMMENT: There are no building improvements located on the subject site. OTHER IMPROVEMENTS COMMENT: There are no other improvements on the subject site. ASSESSMENT DATA ASSESSOR'S PARCEL NO.: 209-085-20 ASSESSED VALUATIONS: Land: $609,372. Improvements: $ 00. TAX CODE AREA: 15031 TAX YEAR: 1991-92 REAL ESTATE TAXES: $6,494.84* SPECIAL ASSESSMENTS: None known. * Real estate taxes will be increased to 1% to 1.25% of purchase price if property is sold to a private party (per Proposition 13). OWNER NOTIFICATION COMMENT: The subject property owner's representa- tive, in the person of Ms. Pare Morales, was contacted by telephone on June 26, 1992, at (818) 335-5661. An invitation was extended to Ms. Morales to accom- pany the appraiser at the time of the formal inspection of the subject property. Ms. Morales declined the invitation. A formal inspection was conducted of the subject property on July 6, 1992. OWNERSHIP HISTORY COMMENT: Based upon San Bernardino County Assessor's records, and other documents, the subject property has been vested with the current owner more than five years. The original purchase price, therefore, is not relevant to the current market value. 2-5 NEIGHBORHOOD ENVIRONMENT LAND USES: Predominate use in the immediate neigh- borhood is single family residential use. The Rancho Cucamonga Middle School facility is located on the north side of Feron Boulevard, opposite the subject property. A public park is located im- mediately east of the subject site. Com- mercial facilities are located at major street intersections, which intersections are at approximately one mile intervals. BUILT-UP: Immediate neighborhood is effectively 60% built-up, including public facilities. OCCUPANCY: Owners: 90_+_%; tenants: 10+% LOCATION: Suburban residential location. TREND: The value trend at the present time is effectively static, after a declining trend for approximately one and one-half years. There is some new commercial and residential development in the general subject area. AGE RANGE: Residential development ranges from ap- proximately 20 years to exceeding 50 years. PRIDE OF OWNERSHIP: Pride of ownership, evidenced by an ongoing maintenance program, ranges from fair to good in the immediate subject neighborhood. OTHER: Community facilities and services are considered average. The City of Rancho Cucamonga provides police and fire protection. See Valuation Analysis beginning on the following page. VALUATION ANALYSIS The purpose of the subject valuation study is the estimation of the market value of the subject land. Prior to the application of the appraisal process, it is necessary to consider and analyze the highest and best use of the subject land. HIGHEST AND BEST USE ANALYSIS: Highest and best use is defined in The Dictionary of Real Estate Appraisal, by the American Institute of Real Estate Appraisers, 1984 Edition, Page 152, as: "1. The reasonable and probable use that supports the highest present value of vacant land or improved property, as defined, as of the date of appraisal. "2. The reasonably probable and legal use of land or sites as though vacant, found to be physically possible, appropriately supported, financially feasible, and that results in the highest present land value. "3. The most profitable use. "Implied in these definitions is that the determination of highest and best use takes into account the contribution of a specific use to the community and community development goals as well as the benefits of that use to individual property owners. Hence, in certain situations the highest and best use of land may be for parks, greenbelts, preservation, conservation, wild life habitats, and the like." Further, highest and best use is defined in the Real Estate Terminology Book, sponsored by the American Institute of Real Estate Appraisers, and the Society of Real Estate Appraisers, 1975 Edition, Page 126, as: "That reasonable and probable use that supports the highest present value, as defined, as of the effective date of the appraisal, Alternatively, that use, from among reasonably probable and legal alternative uses, found to VALUATION ANALYSIS (Continued) HIGHEST AND BEST USE ANALYSIS: (Continued) be physically possible, appropriately supported, financially feasible, and which results in the highest land value. "The definition immediately above applies specifically to the highest and best use of land. It is to be recognized that in cases where a site has existing improvements on it, the highest and best use may very well be determined to be different from the existing use. The existing use will continue, however, unless and until land value in its highest and best use exceeds the total value of the property in its existing use. "Implied within these definitions is recognition of the contribution of that specific use to community environment or to community development goals in addition to wealth maximization of individual property owners. Also implied is that the determinization of highest and best use results from the appraiser's judgment and analytical skill, i.e., that the use determined from analysis represents an opinion, not a fact to be found. In the appraisal process, the concept of highest and best use represents the premise upon which value is based. In the context of most probable selling price (market value) another appropriate term to reflect highest and best use would be most probable use. In the context of investment value an alternative term would be most probable use." The foregoing definitions apply specifically to land. In the process of forming an opinion of highest and best use, consideration must be given to various environmental and political factors such as zoning restrictions, probability of zone change, private deed restrictions, location, land size and configuration, topography, and the character and quality of land uses in the immediate and general subject neighborhood. There are four basic criteria utilized in the highest and best use analysis of a property. The four criteria are summarized as follows: 1. Physically possible. 2. Legally permissible. 3. Financially feasible. 4. Maximally productive. 3-2 VALUATION ANALYSIS (Continued) HIGHEST AND BEST USE ANALYSIS: (Continued) The foregoing are typically sequentially; for example, a specific use may prove to be maximally productive, however, if it is not legally permissible, the productivity is irrelevant. Physically Possible: The physical possibility of developing a specific property is governed, in part, by the size, shape, area, and terrain of the property in question. The availability of public utilities is also an important consideration in the analysis of a property's overall development potential. Legally Permissible: Legally permissible uses are determined, in part, by a community's general plan, zoning requirements, local building codes, and private deed restrictions. The general plan of a community is established to assure Continuity of development within the community and the surrounding area. There is usually a consistency between the general plan of a community and the various zone classifications. The zone classifica- tion sets forth the various types of development allowed within a specific zone district. Zoning requirements typically constitute the available choices of development for a property. Local building codes are generally addressed as part of the zone classification, and include items such as maximum building densities, building height restrictions, set-back and parking requirements, etc. Private deed restrictions relate to mutual agreements under which a property was acquired. Said restrictions may prohibit certain types of development. Financially Feasible: Those uses which meet the first two criteria, i.e. physically possible and legally permissible, are further analyzed in order to determine which uses produce an adequate return on the investment. The specified use is considered financially feasible if the net income capable of being generated is enough to satisfy the required rate of return and provide a return on the land. VALUATION ANALYSIS (Continued) HIGHEST AND BEST USE ANALYSIS: (Continued) Maximally Productive: Among those uses which are considered financially feasible, that use which produces the highest price, or value, consistent with the required rate of return, is considered the highest and best use of the property. Conclusion: The subject property is currently zoned LM (low/medium residential). The existing zoning has been in place more than five years. The existing zone classification permits four to eight dwelling units per 8cr6. The subject site contains a land area of 8.56 acres, or 372,874 square feet. Based on the development density permitted by the existing zoning, the subject site could accommodate 34 to 68 dwelling units. Per a Density Bonus Agreement between the City of Rancho Cucamonga and Jean Deukmejian, executed October 15, 1986, the subject site can be developed with 20 additional residential units, "for a maximum total of eighty-eight (88) units." The development density of 88 units equals 4,287 square feet of land area per unit. In view of the existing zoning, along with the existing land uses in the immediate subject neighborhood, the high density multiple family residential use is considered physically possible and legally permissi- ble. Also, it is judged financially feasible and maximally productive inasmuch as the multiple family residential development of the subject site would produce the highest land value, and thus the maximum production with respect to the greatest return on the overall investment in the land. VALUATION METHODS: There are three conventional methods or approaches employed to estimate value. They are the Market Data Approach, Cost Approach, and Income Approach. Inasmuch as the subject property is a vacant parcel of land, the Market Data Approach is the only approach considered applicable as a reliable indicator of value. VALUATION ANALYSIS (Continued) VALUATION METHODS: (Continued) The reader is referred to the last portion of the Preface Section, following the heading inTerins and Definitions," for a brief description of the Market Data Approach. MARKET DATA APPROACH: The Market Data Approach takes into account properties which have sold in the open market. This approach, whether applied to vacant or improved property, is based on the Principle of Substitution which states, "The maximum value of a property tends to be set by the cost of acquiring an equally desirable substitute property, assuming no costly delay is encountered in making the substitution.' Thus, the Market Data Approach attempts to equate the subject property with sale properties by analyzing and weighing the various elements of comparability. Land Value: The Market Data Approach was utilized to estimate the value of the subject land after an investigation and analysis was conducted of sales of vacant land, or effectively vacant land, within the City of Rancho Cucamonga, and neighboring communities. Due to the lack of land sales in the immediate subject area suitable for multiple family residential development, it was necessary to expand the geographic search area in order to locate a representative number of land value indicators. The reader is referred to the Market Data Maps, on the following pages, for an illustration of the proximity of the land value indicators to the subject property. The reader is also referred to the Market Data Section for comprehensive information pertaining to the land sales employed in this study. After viewing the various sale properties, confirming the sale price of each, and obtaining certain information pertinent to land value, the appraiser analyzed certain of the elements of comparability for each sale property which, among others, include the following: General location. Immediate environmental influences. Zoning. 3-5 VALUATION ANALYSIS (Continued) MARKET DATA APPROACH: (Continued) Land Value: (Continued) Vehicular and pedestrian access. Vehicular and pedestrian traffic. Availability of public alley, or secondary access. Land size, configuration, and plottage. Frontage/depth ratio. Corner location versus inside location. Development density. Site prominence and exposure. The date of sale was also considered in the final analysis. The sales contained in this report, and considered helpful in this study, have been adjusted beginning with the first full month following the sale date. The adjustment has been made to the nearest 0.50%, based upon the following schedule: Year 1989: · 6%, or +0.50% per month. Year 1990: · 3%, or .0.25% per month (Jan.- April). Static value trend May - August. - 3%, or -0.25% per month (Sept. - Dec.). Year 1991: -12%, or-1.00% per month. Year 1992: -12%, or -1.00% per month (Jan. - Mar.*) While sales data in this report date back to 1989, the adjustments are based upon observations of the real estate market and value appreciation cycles dating back more than ten years. Interest rates were very high in the early 1980s, ranging up to 15% to 18%. In 1985, interest rates became "tolerable;' demand, real estate activity, and real estate prices began to increase. The prime rate in July, 1985, was 9.5%, the lowest rate in the previous seven years. Interest rates began to increase in 1989; there was a concomitant decrease in demand and real estate activity later in the year. The surge of appreciation also decreased. * Level market thereafter. VALUATION ANALYSIS (Continued) MARKET DATA APPROACH: (Continued) Land Value: (Continued) Overall, the obvious decline in real estate activity, increased interest rates in the latter part of the 1980s and subsequent decrease in interest rates in 1991 and 1992, questionable confidence in the overall economy, uncertainty of the Federal Reserve Board with respect to monetary policy, income tax treatment of capital gains, and certain unstable international events, combine to cause the current real estate condition in the local Southern California area. Activity in most real estate markets, and sale prices along with absorption rates, have decreased over the past year. Many economists are of the opinion that the economy is at the low point of the current cycle. Also, the recovery term is expected to be slow and lengthy. The marketability of each sale property was also considered. Marketability is the practical aspect of selling a property in view of all the elements constituting value, and certain economic and financing conditions prevailing as of the date of sale. Allowance was made for this factor when considered applicable. The reader is referred to the summary of Residential Land Value Indicators on the opposite page. it can be noted that the prices range from $5.48 to $9.09 per square foot of land area, and $13,141 to $23,498 per (apartment or condominium) unit. The sales are set forth in chronological order and took place between September, 1989, and April, 1992. Current market research did not disclose any more recent comparable land sales in the immediate subject neighborhood. Each of the sale properties has been adjusted for market conditions existing as of the date of sale based upon the schedule indicated above, i.e. positive 6% annual rate for 1989, positive 3% annual rate for 1990, etc. The adjusted rates are as follows: Continued .... 3-7 VALUATION ANALYSIS (Continued) MARKET DATA APPROACH: (Continued) Land Value: (Continued) Data Adjustment $ Per SF $ Per Unit A -13.5% $6.13 $16 759. B -14.5% $6.14 $15 903. C -15.0% $4.98 $13 538. D -15.0% $7.73 $19 973. E -15.5% $7.50 $18 912. F -15.5% $4.63 $11 747. G no adjmt. $6.83 $13,141. Following are comments regarding the respective sale properties, and the comparability to the subject property. Data A Located on the north side of D Street, beginning 348 feet west of Corona Street, in Ontario. The site was vacant at the time of sale; it has since been developed with an apartment complex having 240 units. Purchase price was $4,650,000, with $650,000 cash down. The sale recorded September 28, 1989. The sale property is considered slightly superior to the subject property with respect to frontage/depth ratio; it is also superior regarding general location, immediate envi- ronmental influences, and development density. It is not judged inferior -in any respect. Other elements of comparability are generally similar. A negative adjustment of 20% has been applied to the market conditions adjusted unit rate for the overall inferior comparability of the subject site. The indicated unit values of the subject site are $4.90 per square foot of land area, and $13,407 per unit. Data B Located at the southeast corner of Fifth. Avenue and Washington Boulevard, in Upland. The site was vacant at 3-8 VALUATION ANALYSIS (Continued) MARKET DATA APPROACH: (Continued) Land Value: (Continued) the time of sale; it has since been developed with an apartment building complex of 20 units. Purchase price was $372,000, all cash. The sale recorded November 30, 1989. The sale property is considered superior to the subject property with respect to general location, immediate environmental influences, access, corner location, frontage/depth ratio, development density, and site prominence. It is judged inferior regarding overall land plottage. Other elements of comparability are generally similar. A negative adjustment of .30% has been applied to the market conditions adjusted unit rate for the overall inferior comparability of the subject site. The indicated unit values of the subject site are $3.68 per square foot of land area, and $9,542 per unit. Data C Located at the northwest corner of Victoria Park Lane and Atwood Street, in Rancho Cucamonga. The site was vacant at the time of sale; it has since been developed with a condominium complex of 124 units. Purchase price was $1,975,000, effectively all cash. The sale recorded December 15, 1989. The sale property is considered superior to the subject property with respect to general location, immediate environmental influences, corner location, development density, and site prominence. It is judged inferior regarding frontage/depth ratio, and topography. Other ele- ments of comparability are generally similar. A negative adjustment of 5% has been applied to the market conditions adjusted unit rate for the overall inferior comparability of the subject site. The indicated unit values of the subject site are $4.73 per square foot of land area, and $12,861 per unit. P. LAURAIN ASSOCIATES i 3-9 VALUATION ANALYSIS (Continued) MARKET DATA APPROACH: (Continued) Land Value: (Continued) Data D Located at the east side of Turner Avenue, beginning 247 feet south of Fourth Street, in Ontario. The site was vacant at the time of sale; it is currently under development with a condominium project of 297 units. Purchase price was $6,979,000, all cash. The sale recorded December 18, 1989. The sale property is considered superior to the subject property with respect to general location, immediate environmental influences, and development density. It is not judged inferior in any respect. Other elements of comparability are generally similar. A negative adjustment of 15% has been applied to the market conditions adjusted unit rate for the overall inferior comparability of the subject site. The indicated unit values of the subject site are $6.57 per square foot of land area, and $16,977 per unit. Data E Located on the south side of Sixth Street, opposite Homes Court, in Ontario. The site was vacant at the time of sale; it has since been developed with 42 townhouse units. Purchase price was $940,000, with $240,000 cash down. The sale recorded February 26, 1990. The sale property is considered superior to the subject property with respect to access and development density. It is judged inferior regarding overall land plottage and frontage/depth ratio. Other elements of comparability are generally similar. No overall adjustment has been made inasmuch as the superior and inferior elements of comparability are offsetting. The indicated unit values of the subject property are $7.50 per square foot of land area, and $18,912 per unit. 3-10 VALUATION ANALYSIS (Continued) MARKET DATA APPROACH: (Continued) Land Value: (Continued) Data F Located on the south side of San Bernardino Avenue, opposite Evergreen Lane, in the Bloomington District of San Bernardino County. The site was vacant at the time of sale; buyer is presently in site preparation phase for an apartment building complex of 41 units. Purchase price was $570,000, with $435,000 cash down. The sale recorded November 29, 1990. The sale property is considered superior to the subject property with respect to development density and site prominence. It is judged inferior regarding general location, immediate environmental influences, land plottage, and frontage/depth ratio. Other elements of comparability are generally similar. A positive adjustment of 5% has been applied to the market conditions adjusted unit rate for the overall superior comparability of the subject site. The indicated unit values of the subject site are $4.86 per square foot of land area, and $12,334 per unit. Data G Located at the southwest corner of Fourth Street and Center Avenue, in Ontario. The site was vacant at the time of sale; buyer intends to develop a condominium complex of 312 units. Purchase price was $4,100,000, all cash. The sale recorded April 21, 1992. The sale property is considered superror to the subject property with respect to general location, immediate environmental influences, access, corner location, frontage/depth ratio, and development density. It is not judged inferior in any respect. Other elements of comparability are generally similar. A negative adjustment of 30% has been applied to the market conditions adjusted unit rate for the overall inferior 3-11 VALUATION ANALYSIS (Continued) MARKET DATA APPROACH: (Continued) Land Value: (Continued) comparability of the subject site. The indicated unit values of the subject site are $4.78 per square foot of land area, and $9,199 per unit. Based on the foregoing, and after making adjustments for market conditions existing as of the date of sale, as well as comparability, the indicated adjusted unit rates indicated by the respective sale properties are summarized as follows: Data $ Per SF $ Per Unit A $4.90 $13,407. B $3.68 $ 9,542. C $4.73 $12,861. ~I · D $6.57 $16,977. E $7.50 $18,912. F $4.86 $12,334. G $4.78 $ 9,199. As can be noted, the range of indicated values is $3.68 to $7.50 per square foot of land area, and $9,199 to $18,912 per unit. The land value indicators required adjustments for market conditions (date of sale) ranging from 0% to negative 15.5%. Additionally, comparability adjustments ranged from positive 5% to negative 30%. The development density of the subject site, assuming 88 apartment units, is one unit per 4,237 square feet of land area. The development densities of the various sale properties range from one unit per 2,520 square feet to one unit per 2,733 square feet, except Data G which is one unit per 1,923 square feet. The development density of the subject site, therefore, is inferior to that of all the sale properties. It should be noted that when analyzing the density characteristic of sale properties, and given two properties similar in all respects except development density, as the development density increases (and total number of units increase), the rate per square foot of land 3-12 VALUATION ANALYSIS (Continued) MARKET DATA APPROACH: (Continued) Land Value: (Continued) will also increase, while the rate per unit will decrease. Conversely, as the density decreases (and the total number of units decrease) the rate per square foot of land will decrease, and the rate per unit will increase. Thus, while all of the sale properties employed in this study have a development density far greater than the subject property, the rate per square foot of land area applicable to the subject property will be at the lower portion of the indicated range, while the rate per unit applicable to the subject property will be at the upper portion of the range. By way of comparison, the subject land is zoned for low/medium density residential development. The site contains 8.56 acres, or 372,874 square feet of land area. A bonus density will permit a total of 88 units, or one unit per 4,237 square feet of land area. Based on an analysis of the various sale properties, and considering the financing involved in each transaction, plus considering the date of sale and land value pattern in the general area, the land value of the subject property is estimated at $4.50 per square foot of land area, and $18,500 per unit, as follows: 372,874 SF x $ 4.50 -- $1,677,933. 88 units x $18,500 = $1,628,000. FINAL ESTIMATE OF VALUE: Based on the foregoing analysis, and assigning similar weight to the value indications above, the value of the subject site, as of the date of value set forth herein, is estimated at $1,650,000. ASSOCIATES 3-13 MARKET DATA SUMMARY RESIDENTIAL LAND VALUE INDICATORS: Data Date Zoning Land Size Corner Density Sale Price $ Per SF $ Per Unit A. 9-89 R3 656,014 sf no 1/2,733 sf $4,650,000. $ 7.09 $19,375. N/S D Street, 348.15' W/O Corona Street, Ontario ~. B. 11-89 RM 51,836 sf yes 1/2,592 sf $ 372,000. $ 7.18 $18,600. 4- ~or~ SEC Fifth Avenue and Washington Boulevard, Upland '- ~.c C. 12-89 VPC 337,154 sf yes 1/2,719 sf $1,975,000. $ 5.86 $15,927. 2.4> NWC Victoria Park Lane and Atwood Street, Rancho Cucamonga ~ D. 12-89 SP 767,571 sf no 1/2,584 sf $6,979,000. $ 9.09 $23,498. E/S Turner Ave., 247.47' S/O Fourth Street, Ontario E. 2-90 R2 105,851 sf no 1/2,520 sf $ 940,000. $ 8.88 $22,381. S/S Sixth Street, opposite Holmes Court, Ontario F. 11-90 ' RC 104,108 sf no 1/2,539 sf $ 570,000. $ 5.48 $13,902. S/S San Bernardino Avenue, opposite Evergreen Lane, Bloomington G. 4-92 SP 599,952 sf yes 1/1,923 sf $4,100,000. $ 6.83 $13,141. SWC Fourth Street and Center Avenue, Ontario MARKET DATA A LOCATION: North side of D Street, beginning 348.15 feet west of Corona Street, Ontario. LEGAL DESCRIPTION: Lots 10, 11, and 12, Orange Park Tract, Book 17, Page 55. GRANTOR: Lycon Partners GRANTEE: OFA Partners, Ltd. RECORDING DATE: September 28, 1989 Doc. No. 362614 SALE PRICE: $4,650,000. TERMS: $650,000 cash down to a concurrent first trust deed note of $873,000 with the seller on Lot 10, and a concurrent first trust deed note of $1,750,000 with the seller on Lots 11 and 12. CONFIRMED BY: Perky Apperson, agent for grantee. ASSESSOR'S DATA: Parcel No.: 0110-032-03, 04, and 0110-261-02 LAND SIZE: Various dimensions; 15.06 acres per Asses- sor's mapping, or 656,014+-- square feet, or 15.06 acres. TOPOGRAPHY: Effectively level. ZONING: R2. PRESENT USE: Buyer developed apartment building complex consisting of 240 units. UTILITIES: All available. STREET IMPROVEMENTS: Fully improved street. BLDG. IMPROVEMENTS: None; vacant at time of sale. COMMENT: Development density equals one unit per 2,733 square feet of land area. Continued .... 4-2 MARKET DATA A (Continued) COMMENT: (Continued) Purchase price equals $7.09 per square foot of land area, and $19,375 per unit. 4-3 MARKET DATA A PHOTOGRAPH MARKET DATA B LOCATION: Southeast corner of Fifth Avenue and Wash- ington Boulevard, Upland. LEGAL DESCRIPTION: Portion of Lot 1, Parcel Map 145, Pages 95 and 96. GRANTOR: Michael J. Garris, trustee GRANTEE: Craco Corporation, et al RECORDING DATE: November 30, 1989 Doc. No. 452552 SALE PRICE: $372,000. TERMS: All cash. CONFIRMED BY: Market data resources. ASSESSOR'S DATA: Parcel No.: 1046-411-28 LAND SIZE: Various dimensions; 51,836 square feet, or 1.19 acres per Assessor's mapping. TOPOGRAPHY: Effectively level. ZONING: RM20. PRESENT USE: Buyer developed an apartment building com- plex consisting of 20 units. UTILITIES: All available. STREET IMPROVEMENTS: Fully improved streets. BLDG. IMPROVEMENTS: None; vacant at time of sale. COMMENT: Development density equals one unit per 2,592 square feet of land area. Purchase price equals $7.18 per square foot of land area, and $18,600 per unit. MARKET DATA B PHOTOGRAPH MARKET DATA C LOCATION: Northwest corner of Victoria Park Lane and Atwood Street, Rancho Cucamonga. LEGAL DESCRIPTION: Lot 1, Tract No. 13873, Book 227, Pages 15 through 17. GRANTOR: William Lyon Company GRANTEE: Atwood-Victoria Joint Ventures RECORDING DATE: December 15, 1989 Doc. No. 489645 SALE PRICE: $1,975,000. TERMS: Effectively all cash. CONFIRMED BY: Gary Lukay, William Lyon Company ASSESSOR'S DATA: Parcel No.: 0227-111-43 LAND SIZE: Various dimensions; 337,154 square feet, or 7.74 acres. TOPOGRAPHY: Effectively level. ZONING: VPC. PRESENT USE: Buyer developed a condominium complex consisting of 124 units. UTILITIES: All availabie. STREET IMPROVEMENTS: Fully improved streets. BLDG. IMPROVEMENTS: None; vacant at time of sale. COMMENT: Development density equals one unit per 2,719 square feet of land area. Purchase price equals $5.86 per square foot of land area, and $15,927 per unit. MARKET DATA C PHOTOGRAPH MARKET DATA D LOCATION: East side of Turner Avenue, beginning 247.47 feet south of Fourth Street, Ontario. LEGAL DESCRIPTION: Lots 2 and 3, Portion of Tract No. 13921, Book 222, Pages 9 and 10. GRANTOR: Hill Companies GRANTEE: John Laing Homes, Inc. RECORDING DATE: December 18, 1989 Doc. No. 490094 SALE PRICE: $6,979,000. TERMS: All cash. CONFIRMED BY: Terry Neal, John Laing Homes, Inc. ASSESSOR'S DATA: Parcel No.: 0210-182-4, 19, 44 LAND SIZE: Various dimensions; 767,571 square feet, or 17.62 acres. TOPOGRAPHY: Effectively level. ZONING: SP. ' PRESENT USE: Buyer is constructing a condominium devel- opment consisting of 297 units. UTILITIES: All available. STREET IMPROVEMENTS: Fully improved street. BLDG. IMPROVEMENTS: None; vacant at time of sale. COMMENT: Development density equals one unit per 2,584 square feet of land area. Purchase price equals $9.09 per square foot of land area, and $23,498 per unit. MARKET DATA D PHOTOGRAPH |I. I ' MARKET DATA E LOCATION: South side of Sixth Street, opposite Homes Court, Ontario. LEGAL DESCRIPTION: Lot 1, Tract No. 11458, Map Book 164, Pages 33 through 35. GRANTOR: Chen H. Wang, et al GRANTEE: Euclid Garden Partnership RECORDING DATE: February 28, 1990 Doc. No. 73821 SALE PRICE: $940,000. TERMS: $240,000 cash down to a concurrent first trust deed note of $700,000 with the seller. CONFIRMED BY: Michael Woo, agent representing buyer and seller. ASSESSOR'S DATA: Parcet No.: 1047-424-15, 16 LAND SIZE: Various dimensions; 105,851 square feet, or 2.43 acres. TOPOGRAPHY: Effectively level. ZONING: R2. PRESENT USE: Buyer developed a townhouse development consisting of 42 units. UTILITIES: All available. STREET IMPROVEMENTS: Fully improved street. BLDG. IMPROVEMENTS: None; vacant at time of sale. COMMENT: Development density equals one unit per 2,520 square feet of land area. Purchase price equals $8.88 per square foot of Hand area, and $22,381 per unit. MARKET DATA E PHOTOGRAPH MARKET DATA F LOCATION: South side of San Bernardino Avenue, opposite Evergreen Lane, Bloomington Dis- trict, unincorporated area of San Bernardino County. LEGAL DESCRIPTION: East 1/2 of the North 1/2 of Lot 47, Marigold Acres, Book 19, Page 15. GRANTOR: Nabil and Susan Nasre GRANTEE: Rashad and Eva Wasef RECORDING DATE: November 29, 1990 Doc. No. 471928, 29 SALE PRICE: $570,000. TERMS: $435,000 cash down to an assumed first trust deed note of $135,000. CONFIRMED BY: Nabil Nasre ASSESSOR'S DATA: Parcel No.: 0252-041-67 LAND SIZE: Rectangular shape; 2.39 acres per Assessor's mapping, or 104,108 square feet. TOPOGRAPHY: Effectively level. ZONING: RC. PRESENT USE: Property in site preparation phase; buyer intends to develop apartment building com- plex consisting of 41 units. UTILITIES: All available. STREET IMPROVEMENTS: Fully improved street. BLDG. IMPROVEMENTS: None; vacant at time of sale. COMMENT: Development density equals one unit per 2,539 square feet of land area. Purchase price equals $5.48 per square foot of land area, and $13,902 per unit. 4-8 MARKET DATA F PHOTOGRAPH MARKET DATA G LOCATION: Southwest corner of Fourth Street and Center Avenue, Ontario. LEGAL DESCRIPTION: Parcel 5, Portion of Tract No. 13921, Map Book 222, Pages 9 and 10. GRANTOR: Ontario Center GRANTEE: Center Club Ontario Corporation RECORDING DATE: April 21, 1992 Doc. No. 167790 SALE PRICE: $4,100,000. TERMS: All cash. CONFIRMED BY: Perky Apperson, agent for grantee. ASSESSOR'S DATA: Parcel No.: 0210-162-49 LAND SIZE: Various dimensions; 13.773 acres, per Asses- sor's mapping, or 599,952+-- square feet. TOPOGRAPHY: Effectively level. ZONING: SP. PRESENT USE: Vacant land; buyer intends to develop a condominium complex consisting of 312 units. UTILITIES: All available. STREET IMPROVEMENTS: Fully improved streets. BLDG. IMPROVEMENTS: None; vacant at time of sale. COMMENT: Development density equals one unit per 1,923 square feet of land area. Purchase price equals $6.83 per square foot of land area, and $13,141 per unit. MARKET DATA G PHOTOGRAPH Market Data Map . '.. ~ ~ :-~ , _, ,_ :.- -"- " :~!.". : '.~;:j.:h ': ;;!p ~: = ;.--: ;.-,;-' ! ~ : · . ~, ~; ,,,_:L2-'_~ -' :,,_,L; L RIALTO RECORDING REQUESTED BY REDEVELOPMENT AGENCY OF THE CITY OF RANCliO CUCAMONGA When Recorded Return To: Goldfarb & Lipman One Montgomery Street Twenty-Third Floor San Francisco, California 94104 Attn: M David ](root No fee for recording pursuant to Government Code Section 27383 DISPOSITION AND DEVELOPMENT AGREEMENT. BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF RANCHO CUCAMONGA NORTHTOWN HOUSING DEVELOPMENT CORPORATION 5~504P.P50 TABLE OF CONTENTS Paae ARTICLE 1: DEFINITIONS AND LIST OF EXHIBITS 2 Section 1.1 Definitions . 2 Section 1.2 Exhibits 5 ARTICLE 2: DISPOSITION OF PROPERTY 5 Section 2.1 Sale and Purchase . 5 Section 2.2 Purchase Price 6 Section 2.3 Opening Escrow 6 Section 2.4 Close of Escrow . . 6 Section 2.5 Condition of Title 6 Section 2.6 Financing Plan · · 7 Section 2.7 Lend Use Approvals ...... 7 Section 2.8 Remediation of Toxic Contamination 8 Section 2.9 Civil Engineering. 8 Section 2.10 Condition of Property · · 8 Section 2.11 Costs of Escrow and Closing 8 ARTICLE 3: CONSTRUCTION OF DEVELOPMENT 9 Section 3.1 Relocation . 9 Section 3.2 Construction Pursuant to Plans 9 Section 3.3 Change in Construction of Developm~n& i 9 Section 3.4 Construction Contract .... 9 Section 3.5 Commencement of Development . 9 Section 3.6 Completion of the Development . 9 Section 3.7 Construction Bonds 9 section 3.8 Equal Opportunity . 10 Section 3.9 Compliance with Lew . . . 10 Section 3.10 Certificat6 of Completion 10 ARTICLE 4: ONGOING DEVELOPER OBLIGATIONS 11 Section 4.1 Applicability . . 11 Section 4.2 Covenants Running ~i~'~e'~na ~ 11 Section 4.3 Use .... 11 Section 4.4 Maintenance . 11 sectio. Mandato Le. age'lA All Deeds, Leases and Contracts . 12 Section 4.6 Hazardous Materials . 13 Section 4.7 Insurance Requirements' 15 ARTICLE 5: ASSIGNMENT ANDTRANSFERS 17 SSS04F/~0 11/18/93 -i- TABLE OF CONTENTS (continued)' Paae Section 5.1 Definitions ......... 17 Section 5.2 Purpose of Restrictions on Transfer . 18 Section 5.3 Prohibited Transfers .... 18 Section 5.4 Permitted Transfers ......... ~. 18 Section 5.5 Effectuation of Certain Permitte Transfers19 d Section 5.6 Other Transfers with Xgency Consent 20 Section 5.7 Release of the!.Dev~loper Following Permitted Transfer 21 ARTICLE 6: REMEDIES ........ 21 Section 6.1 General Applicability. .~. 21 Section 6.2 No Fault of Parties ' . · .! 21 Section 6.3 Fault of the Agency .J .: 22 Section 6.4 Fault of the DevelOper 22 Section 6.5 Forced Delay .. . . 23 ARTICLE 7: SPECIAL AGENCY REMEDIES .... 24 Section 7.1 Right of Reverter. '. ... 24 Section 7.2 Final Construction, Plans .'. .~ 25 Section 7.3 Inspection of Books and Records . . 25 Section 7.4 Entr~ by the Agency i]. 25 Section 7.5 Rights of Mortgagees 25 ARTICLE 8: SECURITY FINA~CINGANDRIGHTS OF HOLDERS -a. .~ 25 Section 8.1 No Encumbrances Excep~ for Development Purposes ...... 25 Section 8.2 Holder Not Obligated to Construct . . 26 Section 8.3 Notice of Default and Right to Cure ....~ 26 Section 8.4 Failure of Holder to Complete Development 27 Section 8.5 Right of the Agency to 6are . . .~ .... ~ 27 Section 8.6 Right of Agency to Satisfy Other Lien~ 27 Section 8.7 Holder to be Notified . 28 ARTICLE 9= GENERAL PROVISIONS .. 28 Section 9.1 AgehcyApproval 28 Section 9.2 Amendments 28 28 Section 9.3 Applicable Law . .. Section 9.4 Binding Upon Successors .... 28 Section Identity and A th rity of.the s e o sr. Section 9.6 Identity and Authority of the Agehcy 29 SSSO4F.PSO ll/la/~3 .TABLE OF CONTENTS (continued) Paae Section 9.7 Legal Actions; Attorneys Fees . , . 29 Section 9.8 Notices, Demands and Communications . 30 Section 9.9 Non-Liability of Agency Officials, Employees and Agents; Non-Liability of the Agency,s Members Section 9.10 No Claim~ Ag~iAs& &h~ AgenGy'b½ ~hira ' 30 Persons . . 30 Section 9.11 Parties Not co-ven&ure;sl 31 Section 9.12 Provisions Not Merged with Deeds. 31 Section 9.13 Real Estate Commissions . 31 Section 9.14 Required Changes . Section 9.15 Rights and Remedies Cumula&i~e' 31 31 Section 9.16 Severability 31 Section 9.17 Time of the Essence .... 32 Section 9.18 Title of Parts and Sections 32 Section 9.19 Complete Understanding of the Parties . 32 DISPOSITION AND. DEVELOPMENT AGREEMENT This Agreement (the "Agreement") is made as of the __ day of , 199 , by and between th~ REDEVELOPMENT AGENCY OF THE CITY OF RANCHO CUCAMONGA, a public body, corp6rate and politic (the "Agency"), and the NORTHTOWN' HOUSING DEVELOPMENT COREORATION, a California nonprofit public benefit corporation (the "Developer"), with reference to the following facts: 1. All capitalized terms appearing in this Agreement have the meanings set forth in Article I of this Agreement. 2. Pursuant to its authority g~anted under California law, the Agency has the responsibility to carry cut the Redevelopment Plan for the Rancho Cucamonga Redevelopmerit Project Area. 3. The Developer desires to redevelop certain property owned by the Agency and more particularly. described in the attached Exhibit A (the "Property"). The Developer wishes to develop on the Property an approximately 8S-unit multifamily rental housing development. 4. The Agency has concluded that the Developer has the necessary expertise, skill, and ability tO carry out the commitments contained in this Agreement and that this Agreement is in the best interests of and will materially contribute to, the effectuation of the Redevelopment Plan. 5. A Hazardous Materials assessment of the Property will be undertaken by the Agency. 6. An Environmental Impact Report or Negative Declaration for the development contemplated by ~his Agreement shall be completed, certified and approved by the AgenCy and the City after duly-noticed public hearings. The Environment~l I~pact Report or the Negative Declaration shall be served as the environmental documentation under the California Environmental Quality Act (Public Resources Code Section 21000 et sea.), for consideration and approval of this Agreement .and other specified land use approvals for=the development of the Property. 7. The purpose of'this Agreement is to provide a mechanism for the Developer to acquire, own, and develop the Proper%y, and it is for this reason that the conditions for development of the Property have been set forth in this Agreement. 11118/93 -1- NOW, THEREFORE, IN CONSIDERATION of the mutual agreements, obligations, and representations contained in this Agreement the Agency and the Developer hereby agree as follows: ARTICLE 1: DEFINITIONS AND LIST OF EXHIBITS Section 1.1 ~a~/.~h~/l~. In addition to the term~ defined elsewhere in this Agreement, the following definitions shall apply throughout this Agreement. a. "Architect's Agreement" shall mean the Agreement between the Developer and Pyatok Associates, or any successor architect as the architect for the Development, for the provision of architect's services. b. "Agency" shall mean the Redevelopment Agency of the City of Rancho Cucamonga, a public body, corporate and politic. c. "Agreement~ shall mean this Disposition and Development Agreement between the Agency and the Developer, for the redevelopmerit of the Property. d. "Certificate of Completion~ shall mean the certificate to be issued by the Agency pursuant to Section 3.10 of this Agreement. e. "City~ shall mean the City of Ranch Cucamonga, a California municipal corporation. f- "Closing Date~ shall mean the date scheduled for the close of Escrow, as specified in Section 2.4 of this Agreement. g- "Construction Loan(s)~ shall mean the loans obtained by the Developer to finance purchase of the Property and/or construction of the Development. h. "Construction Plans~ shall mean all construction documentation upon which the Developer, end the Developer's several contractors, shall rely in building each and every part of the Development, and shall include, but not necessarily be limited to, final architectural drawings, landscaping plans and specifications, final elevations, building plans and specifications (also known as ~working drawings-), and a time schedule for construction. Sa~O4F.P50 nnw~ -2- i. "County" shall mean the County of San Bernard~no, State of California. IT ; J. "Deed of Trust" shall mean the deed!of trust placed on the Property to secure payment of the Note, a form of' which is attached to this Agreement as Exhibit 'C. k. "Developer" shall mean the Northtow~ Housing Development Corporation, a Califorhia :nonprofit public benefit corporation, and its successors and assigns as permitted by this Agreement. 1. "Development" shall mean the development of approximately SS units of multi-family: hodsin~ on the Property according to the terms of the Loan Agreement and the Regulatory Agreement, along with any and all improvements and infrastructure necessary for the development, construction and maintenan'ce of said housing. m. "Escrow" shall mean the escrow established with~the Title Company for the purpose of conveying the Property from the Agency to the Developer. : n. "Financing Plan" shall'mean the'Dev&loper~s. plan for financing the Development~ ~ o. "Financing Gap" shall mean the difference between the cost of constructing the Developmeht, !and'the amount of f~inancing obtained by the Developer from sources other than the Agency.~ p. "Fiscal Year" shall mean the Developer~s fiscal year, which ends on December 31. q. "Gap Financing" shall mean the amount of financing9 provided by the Agency, pursuant to a loa~ to'cover the Financing Gap. r. "Grant Deed" shall mean the'grant deed by whic~ the Agency shall convey the Property to the Developer. A. fo~m o~ the Grant Deed is attached to this Agreement as E~hibit F. s. mHazardous Materials" shall mean: i; "any hazardous substance" as defined in S~ction 101(14) of CERCLA (42 U.S.C. Section 960~(14)) or Section 25281(d) or 25316 of the California Health and Safety Code~ SSS04F.PSO 11/18/93 --3-- ii. any mhazardous waste", "infectious waste" or "hazardous material" as defined in Section 25117, 25117.5 or 25501(J) of the California Health and Safety Code; iii. any other waste, substance or material designated or regulated in any way as "toxic" or "hazardousm in the RC~A (42 U.S.C. Section 6901 et se~.), Federal Water Pollution Control Act (33 U.S.C. Section 1251etaeel.), Safe Drinking Water Act (42 U.S.C. Section 300(f) et se~.), Toxic Substances Control Act (15 U.S.C. Section 2601etse~.), Clean Air Act (42 U.S.C. Section 7401etsecx.), California Health and Safety Code (Section 25100 sting., Section 3900 etse~.), or California Water Code (Section 1300etsec/.)~ and iv. any additional wastes, substances or materials which at such time are classified, considered or regulated as hazardous or toxic under any other present or future environmental or other similar laws relating to the Development. t. "Hazardous Materials Report" shall mean the report prepared by the Agency or the Agency~s consultant su~marizing an assessment of the Property performed to determine the presence of Hazardous Materials on the Property, including (but not limited to) an evaluation of the historic and existing uses of the Property, soil and ground water sampling, and other methods to determine the existence and level of Hazardous Materials on the Property. u. "Hazardous Materials Laws" shall mean all federal, state, and local laws, ordinances, regulations, orders and directires pertaining to Hazardous Materials in, on or under the Development or any portion thereof. v. "Loan Agreement" shall mean the Loan Agreement executed by and between the Developer and the Agency, setting forth the terms and conditions governing the Gap Financing, a form of which is attached to this Agreement as Exhibit D. w. "Note" shall mean the promissory note evidencing the Construction Loan, a form of which is attached to this Agreement as Exhibit B. x. ~Parttes" shall mean the parties to this Agreement. Y. ~Permanent Financing" shall mean the loans and other sources of financing to be u~llized by the Developer as permanent $S$04F/~0 ll/l~'t~3 -4- financing for the Development, as approved by the Agency as part of the Financing Plan. z. aProperty" shall mean the real property owned by the Agency and to be redeveloped by the Developer pursuant to this Agreement, as more specifically described in Exhibit A to this Agreement. aa. "Redevelopmerit Plan" shall mean the'Redevelopment Plan for the City of Rancho Cucamonga Redevelopment Project Area, as hereafter amended from time to time. ab. "Regulatory Agreement" shall mean the regulatory agreement by and between the Developer and the Agency governing the use of the Development, a form of which is attached aS Exhibit E to this Agreement. ac. "Remediation PlanT shall mean that plan prepared and paid for by the Agency which identifies the scope, cost, timing and financing of the removal of Hazardous Materials from the Property, as more particularly described in Section 2.8. ad. "Security Financing Instrument" shall mean a mortgage, deed of trust, or other reasonable means of securing a Construction Loan or Permanent Financing pursuant to the Financing Plan described in Section 2.6 below~ ae. "TCAC" shall mean the California Tax Credit Allocation Committee. af. "Title Company" shall mean Title Insurance Company or another title company selected by the Developer. Section 1.2 Exhibits. The following exhibits are attached to and incorporated in the Agreement: Exhibit A: Legal Description of the Property Exhibit B= Form of Promissory Note Exhibit C: Form of Deed of Trust Exhibit D: Form of Loan Agreement Exhibit E: Form of Regulatory Agreement Exhibit F: Fox~,.of Grant Deed 11/18/93 -5- ARTICLE 2: DISPOSITION OF PROPERTY. Section 2.1 Sale and Purchase. The Agency shall sell to the Developer, and the Developer shall purchase from the Agency, the Property pursuant to the terms, covenants, end conditions of this Agreement. Section 2.2 ~. The purchase price for the Property shall be ONE DOLLAR ($1}. The purchase price shall be paid to the Agency by the Developer in a manner acceptable to the Agency at the close of Escrow at close of Escrow. Section 2.3 ~. To accomplish the purchase and transfer of the Property from the Agency to the Developer, the Parties shall, upon execution of this Agreement, establish the Escrow with the Title Company. The Parties shall execute and deliver all written instructions to the Title Company to accomplish the terms of this Agreement, which instructions shall be consistent with this Agreement. Section 2.4 ~. Escrow shall close on a date mutually agreeable to the Parties (the wClosing Date") but in no event later than thirty (30) days following the date on which the last to be satisfied of the requirements and conditions set forth in this Section has been satisfied. Upon the close of Escrow, the Agency shall convey the Property to the Developer by executing and delivering the Agency Grant Deed in substantially the form attached as Exhibit C. Section 2.5 Condition of Title. Upon the close of Escrow, the Property shall have insurehie title free and clear of all liens, encumbrances, clouds, conditions, end rights of occupancy or possession, except: a. the effect of the Redevelopmerit Plan; b. applicable building and zoning laws and regulations; c. the provisions of this Agreement; d. the provisions of the AgencyGrant Deed; SeSO4F/~0 e. any lien for current taxes a~d ~ssessments or taxes and assessments accruing subsec/~'ent to recordation ~f the Agency Grant Deed; f. conditions, covenants, restrictions'or easement~ acceptable to the Developer; and g. any other enc-mhrances approved by ~he Developer. Section 2.6 ~. To finance the development and construction of the Development, the Developer intends to obtain ~onstruction loans from various lenders, and also intends' to apply to TCAC for Federal Low Income Housing Tax CreditS. The Parties acknowledge that the funding obtained from these sources may not be sufficient to finance the complete cost of the Development or make the Development financially feasible. The Developer shall submit to the Agency a development budget which demonstrates ithe monetary difference between the actual cost of the ProjeCt and the amount offinancing obtained by the Developer frol the above- named sources (the "Financing Gap"). The Agency shall provide to the Developer, or its assignee, the Gap Financing in the form of a loan and pursuant to the terms of the Loan Agreement, Note and Deed of Trust attached as Exhibits D, ~ and C, respectively, to this Agreement. To the extent that any lender to, or equity investor in, the Development requires changes to this Agreement or any' document,. the form of which is an exhibit to this Agreelent, the Agency agrees to consent. to such changes, and the Parties shall! cooperate to effect such changes w~thin a reasonable time. To secure the Developerrs obligations to rep~y a lender of a loan described in the Financing Plan, the Developer may encumber the Property with one or more Security Financing Instruments. Section 2.7 Land Use APProVals. The Developer shall apply for, diligently seek, and obtain all government approvals, including a building permit, necessary to constru~ the Development. The Agency. shall render all reasonable assistance to the Develope~ in! obtaining any necessary City or other governmental permits, a~pro~als, and a}locations, including signing of applications, if required or necessary. The Developer acknowledges that execution=of this. Agreement or any application for a land use approval by the Agency as !owner o~ the Property does not constitute approval=bY the City or 'Agency of any required permits, applications, or a~locations, and in no way -7- limits the discretion of the City or Agency in the permit, allocation, and approval process. Section 2.8 Remediation of Toxic Contaminatio~. Should the H~zardous Materials Report disclose the presence of any Hazardous Materials on the Property, or within 2,000 feet of the Proper~cy, the Agency shall prepare and submit to the Developer and its financing ~ources a Remediation Plan for the Property. Such Remediation Plan should specifically include: a. A s-~mary of the remediation work required (as described in the Hazardous Materials Report) and a timetable for the performance of the Remediation Plan. b. All necessary approvals for the required remediation work from appropriate regulatory agencies, including but not limited to the Agency, the City, the County, the County Department of Health, the California Department of Health Services, the Regional Water Quality Control Board, and the Environmental Protection Agency. The Agency, with any necessary assistance from the Developer, shall begin implementation of the Remediation Plan, if necessary, within a reasonable time as determined by the Parties. Section 2.9 Civil Enaineering. The Agency shall retain, or cause to be retained, a civil engineer who shall provide all civil engineering services to the Development as determined by the Parties, and pursuant to the Architect*s Agreement. Section 2.10 Condition of ProDer~y. In the fulfillment of the purposes of Health and Safety Code Section 25359.7(a), the Agency hereby represents and warrants that it has no knowledge, and has no reasonable cause to believe, that any release of Hazardous Materials has come to be located on or beneath the Property, except as disclosed in the Hazardous Materials Report. Sectiol~ 2.11 Costs of Escrow and closina. The Developer shall bear the cost of title insurance and any transfer tax. The Agency shall bear the cost of title company document preparation and recordation fees. All other costs of Escrow (including the fees of the Escrow holder), if any, shall ll/lS/~ '8-- be borne by the Developer. The costs borne by the Developer !are in addition to the purchase price for .the;'Property. ARTICLE 3: CONSTRUCTION OF DEVELOPMENT ' ' Section 3.1 ~. Prior to the commencement of Cons.truction of the Development, the Agency shall relocate the occupants (if any). of the Property. In relocating such occupants the Agency shall provide any relocation assistance required pursuant tO Government Code Sections 7260, et Peg. Section 3.2 ConStruction Pursuant. to Plans. Unless modified by operation of Sect.ion 3.3, the Dev~elopment shall be constructed substantially in 'accordance with the Construction Plans and the terms and conditions of th~ C[ty~s land use permits and approvals and building permits, incIudin, g any variances granted. Section 3.3 Chanae in Construction of! DeveloDment. If the Developer desires to make any material alteration to the approved Construction Plans, then 'the! Developer shall notify the Agency of any such material alteration. No chan~e which is required for compliance with building .codes or other government health and safety requlation shall be deemed material'. Section 3.4 Cons~=uction Contract. Upon the closing of the Construction'Loan, the Developer shall submit to the Agency an executed constr~ction cbntract .for the Development. ,, Section 3.5 Commencement of Development. The Developer shall commence Construction of the Dev. elop. ment no later than sixty (60) days after the Closihg Date. Section 3.6 Completion of the Development. .' The Developer shall diligently prosecute. to completion the construction of the Development within twenty-four (24) l~onths following commencement of construction. SSS04F.P~O 11/18/93 --9-- Section 3.7 Construction Bonds. Upon the closing of the Construction Loan, the Developer shall deliver to the Agency copies of any labor and material bonds and performance bonds in an amount required by any lender to the Development. Any such bonds shall name the Agency as co- obliges, shall be provided by an entity deemed acceptable to the Developer and any lender(s), and shall be in form and substance acceptable to the Developer and any lender(s). If the lender(s) for the Development will not require such bonds or guarantees, then the Developer need not obtain them or submit them to the Agency. Section 3.8 Eaual OPPOrtunitY. During the construction of the Development, the Developer shall not discriminate on the basis of race, color, ancestry, national origin, religion, sex, sexual preference, age, marital status, family status, source of income, physical or mental disability, Acquired Immune Deficiency Syndrome (AIDS) or AIDS- related conditions (ARC), or any other arbitrary basis, in the hiring, firing, promoting or demoting of any person engaged in the construction work. Section 3.9 Compliance with LaW. The Developer will cause all work performed in connection with the Property to be performed in compliance with (a) all applicable laws, ordinances, rules and requlations of federal, state, county or municipal governments or agencies now in force or that may be enacted hereafter, including (without limitation) the prevailing wage provisions of Sections 1770et sea. of the California Labor Code to the extent applicable, and (b) all directions, rules and requlations of any fire marshal, health officer, building inspector, or other officer of every governmental agency now having or later acquiring Jurisdiction. The work shall proceed only after procuremerit of each permit, license or other authorization that may be required by any governmental agency having Jurisdiction, and the Developer shall be responsible to the Agency for the procurement and maintenance of those permits as may be required of the Developer and all entities e~gaged in work on the Property. Nothing contained in this Agreesent shell limit in any way the City~s discretion to approve or disapprove any permit or approval necessary for construction. SSS04F~0 Section 3.10 Certific~t~ Of Com..oletion. Promptly after completion of the.Development in accordance with those provisions of this A~reement relating solely to the obligations of the Developer to cOnstructsthe Development (including the dates for beginning and completion of the work), the Agency will provide a Certificate:of Completion so certifying. For the purposes of this Section, completion of the Development shall occur upon issuance'of a certificate of occupancy for the Development. The Certificate of Completion shall be conclusive determination that the covenants 'in this A~reement with respect to the obligations of the Developer, its successors and assigns, to construct the Development and the dates for the beginning and completion of the Development have been met, and shall be in such form as will enable it' to he recorded among the official records of San Bernardino County. Such certification and determination shall not constitute evidence of compliance with or satisfaction of any obligation of the Developer to any holder of a Security Financing Instrument and shall not be deemed.a notice of completion under the California Civil Code. ARTICLE 4: ONGOING DEVELOPER OBLIGATIONS Section 4.1 ~- The conditions set forth in this Article. Four sha11.'apply throughout the entire term of the Redevelopment Plan., Section 4.2 Covenants Runnino with the land. The provisions of this Article Four, as it may be further amended, shall be restrictions and covenants .that shall run with the Property and shall be enforceable against the Developer and successors and assigns to the Property, and by the Agency and its successors and assigns (including the City if the Agency ceases to exist), in perpetui~y. Section 4.3 Use. , The Property and Development will be used for multifamily rental housing with 30%of the units in the Development affordable to Level One Households and 10% affordable to Level Two Households, as defined by the Regulatory Agreement, and for such related ancillary purposes consistent with this Agreement, the Regulatory Agreement, and the Redevelopment Plan. This restriction shall remain effective until the expiration of the Redevelopment Plan and the Regulatory Agreement, and.shall be -11- evidenced by the recording of the Regulatory Agreement against the Development in substantially the form of Exhibit D to this Agreement. Section 4.4 Prior to completion of the Development, the portions of the Property undergoing construction shall be maintained in a neat and orderly condition to the extent practicable and in accordance with industry health and safety standards. Once the Development is completed, the portion of the Property that is subject to public view (including all improvements from time to time erected thereon, including paving, walkways, landscaping and ornamentation) shall be maintained in good repair and in a neat, clean and orderly condition, ordinary wear and tear excepted. In addition, the Developer shall place exterior signs on the Property only with the prior written approval of the Agency, and shall enclose or screen all materials or equipment stored outside on the Property by walls, landscaping, or other enclosure to the extent and in the manner required by the Agency in its reasonable discretion. In the event that there arises at any time a condition in contravention of the above maintenance standard, then the Agency shall notify the Developer in writing of such condition, giving the Developer thirty (30) days from receipt of such notice to cure said condition. In the event the Developer fails to cure or commence to cure the condition within the time allowed, the Agency shall have the right to perform all acts necessary to cure such condition, o~ to take other recourse at law or equity that the Agency may then have and to receive from the Developer the Agency~s cost in taking such action. The rights conferred upon the Agency expressly include the right to enforce or establish a lien or other encumbrance against the Property, hut such lien shall be subject to previously recorded liens and encumbrances. Nothing in the foregoing provisions shall preclude the Developer from making any alterations, additions, or other changes to any of the Development or landscaping, provided that such changes comply with this Agreement and the Redevelopmerit Plan, (so long as the Redevelolment Plan has not expired), and with all necessary land use approvals, building permits, and other approvals from the City. -12- Section 4.5 Mandatory Language in All Subsequent Deeds, Leases and Contracts.' ' All deeds, leases or contracts made or entered into by the Developer, its successors or assignst as to any portion of the Property shall contain therein the following language: e. I~Deeds: "Grantee herein covenants by and for itself, its successors and assigns that there shall be no discrimination against or segregation of a person or of a group of persons on account of race, color, creed, religion, age (except insofar as the. property is used for housing for the elderly), sex, sexual orientation, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use,, occupancy, tenure or enjoyment of the property herein conveyed nor shall the grantee or any person claiming under or through the grantee establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the property herein conveyed. The foregoing covenant shall run with the land". bo InLeases: "The lessee herein covenants by and for the lessee and lesseels heirs, personal representatives and assigns. and all persons claiming under the lessee or through the lessee that this lease is made subject to the condition that there shall be no discrimination against or segregation of any person or of · group of persons on account of race, color, creed, religion, age, (except insolaf as the property is used for housing for the elderly), sex, sexual orientation, marital status, national origin or ancestry in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the land herein leased nor shall the lessee or any person claiming under or through the lessee establish or permit any.such practice or practices of discrimination or segregation with reference to the selection, location, m~er, use orrOccupancy of tenants, lessees, sublessees, subtenants, or vendees in the land herein leased". SSSO4F/~O 11/18/93 -13- 'There shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, age, (except insolaf as the property is used for the elderly),sex, sexual orientation, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the property nor shall the transferee or any person claiming under or through the transferee establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the land". Section 4.6 Hazardous Materia]m. a. RePresentations and Warranties. To the best knowledge of the Agency, except as disclosed in the Hazardous Materials Report: i. The Property and each portion of the Property is not and has not been a site for the use, generation, treatment, manufacture, storage, disposal or transportation of any Hazardous Materials and there are no Hazardous Materials located in, on or under the Development. For purposes of this Section, the term "Hazardous Materials' shall not include: (a) construction materials, gardening materials, household products, office supply products, or Janitorial supply products customarily used in the construction, maintenance, rehabilitation, or management of residential housing or associated buildings and grounds, or typically used in household activities, in a manner typical of other residential housing developments which are comparable to the Development; or (b) certain substances which may contain chemicals listed by the State of California pursuant to Health and Safety Code Sections 25249.8 et se~., which substances are commonly used by a significant portion of the population living within the region of the Development, including, but not limited to, alcoholic beverages, aspirin, tobacco products, Nutrasweet and saccharine.; 11/18'93 -14- ii. The Property and each portion of the Property is at present in compli~nce with a~l Hazardous Materials Laws, including, without limitation, those relating to soil and ground water conditions; iii. no investigations, inquiries, notices, orders, hearings, actions, or other proceedings by or before any governmental agency are pending or threatened against the Agency and/or the Property pertaining in any way to (A) the use, generation, treatment, manufacture, storage, presence, disposal or transportation of Hazardous Materials from, under, into or on'the Property or any portion thereof andFor (B) the Violation or alleged violation of, or the noncompliance or alleged noncompliance with, any Hazardous Materials Law; iv. no portion of the Property is located within 2,000 feet of a significant disposal of "hazardous waste" within the meaning of Section 25221'of the California Health and Safety Code; and v. no underground storage tanks are at present located, or in the past have been located, in, on or under.the Property. b. Certain Covenants and Aareements. The Developer covenants and agrees that: i. The Developer shall not knowingly permit the Development or any portion of the Development to be a site for the use, generation, treatment, manufacture, storage, disposal Or transportation of Hazardous Materials or otherwise knowingly permit the presence of Hazardous Materials in, on or under the Development; ii. The Developer shall keep and maintain the Development and each portion of the Development in compliance with, and shall not .cause or permit the Development or any portion thereof to be in violation of, any Hazardous Materials laws; iii. Upon receiving actual knowledg~ of any of the following, the Developer shall immediately advise the Agency in writing of: (A) any and all enforcement, cleanup, removal or other 11/18/93 -15- governmental or regulatory actions instituted, completed or threatened against the Developer or ~he Development pursuant to any applicable Hazardous Materials Laws; (B) any and all claims made or ~hreatened by any third party against the Developer or the Development relating to damage, contribution, cost recovery, compensation, loss or injury resulting from any Hazardous Materials (the matters set forth in the foregoing clause (A) and this clause (B) are hereinafter referred to as "Hazardous Materials Claims"). The Agency shall have the right to Join and par~cicipate in, as a party if it so elects, any legal proceedings or actions initiated in connection with any Hazardous Materials Claims at the Agency's expense. Section 4.7 Insurance Reauiremen~. a. Reauired Coveraqe. The Developer shall maintain and keep in force, at the Developer's sole cost and expense, the following insurance applicable to the Development= i. Comprehensive General Liability insurance with limits not less ~han $1,000,000 each occurrence combined single limit for Bodily Injury and Property Damage, including coverage for Contractual Liability, Personal Injury, Broadform Property Damage, Products and Completed Operations. ii. Comprehensive Automobile Liability insurance with limits not less than $1,000,000 each occurrence combined single limit for Bodily Injury and Property Damage, including coverage for owned, non-owned and hired vehicles, as applicable; provided, however, that if the Developer does not own or lease vehicles for purposes of this Agreement, then no automobile insurance shall be required. lii. Property insurance covering the Development covering all risks of loss, excluding earthquake and flood, for 100% of appraised value of the Development, with a deductible, if any, acceptable to theAgency, naming the Agency as a loss payee, as its interest may appear. S~S04F.PSO 1~/18/93 -16- b. Contractorts Insurance. The Developer shall cause any general contractor or agent working on the Development under direct contract with the Developer to maintain insurance of the types and in at least the minimum amounts described in subsections a.i and a.ii, and shall also require the general contractor to maintain Workerrs Compensation insurance as required by California law. All such insurance shall meet all of the general requirements of subsection c. below. Liability and Comprehensive Automobile Liability insurance to be maintained by such contractors and agents pursuant to this subsection shall name as additional insureds the Agency, its board members, officers, agents, and employees. c. ~. The required insurance shall be provided under an occurrence form, and the Developer shall maintain such coverage continuously so long as the Redevelopmerit Plan is in effect. Should any of the required insurance be provided under a form of coverage that includes an annual aggregate limit or provides that claims investigation or legal defense costs be included in such annual aggregate limit, such annual aggregate limit shall be three times the occurrence limits specified above. Comprehensive General Liability, Comprehensive Automobile Liability and Property insurance policies shall be endorsed to name as additional insureds the Agency and its board members, officers, agents, and employees. : All policies and bonds shall be endorsed to provide thirty (30) days prior written notice of cancellation, reduction in coverage, or intent not to renew to the address established for notices to the Agency pursuant to Section 9.8 below. d. Certificates of Insurance. Upon the Agencyts request at any time during the term of this Agreement, the Developer shall provide certificates of insurance, in form end with insurers reasonably acceptable to the Agency, evidencing compliance with the requirements of this Section, and shall provide complete copies of such ~nsurance policies, including a separate endorsement naming the Agenc~ as additional insured. 'zb, l&'~ -17- ARTICLE 5: ASSIGNMENT AND TRANSFERS Section 5.1 As used in this Article Five, the term "Transfer- means: a. Any total or partial sale, assignment or conveyance, or any trust or power, or any transfer in any other mode or form, of or with respect to this Agreement, or of the Property or any par~ of the Property, or any interest in the Property, or of the Development constructed on the Property, or any contract or agreement to do any of the same; or b. Any total or partial sale, assignment or conveyance, or any trust or power, or any transfer in any other mode or form, of or with respect to any ownership interest in the Developer, or any contract or agreement to do any of the same; or c. Any merger, consolidation, sale or lease of all or substantially all of the assets of the Developer; or d. The leasing of part or all of the Property or the improvements on the Property, except for the leasing of individual units in the Development to residential tenants. Section 5.2 Purpose of Restrictions on TransfA~. This Agreement is entered into solely for the purpose of development and operation of the Development on the Property and its subsequent use in accordance with the terms of this Agreement. The Developer recognizes that the qualifications and identity of the Developer are of particular concern to the Agency, in view of: a. The importance of the redevelopment of the Property to the general welfare of the community; b. The fact that a Transfer as defined in Section 5.1 above is for practical purposes a transfer or disposition of the Property; The Developer further recognizes that it is because of the qualifications and identity of the Developer that the Agency is entering into this Agreement with the Developer and that Transfers are permitted only as provided in this Agreement. S~S04F~SO 11/18/93 '18-- Section 5.3 Prohibited Transfers. The limitations on Transfers set ~orth in this Section shall apply from the date Of conveyance of the Property to the Developer until the date of the Certificate of Completion. Except as expressly permitted in this Agreement, the Developer represents and agrees that the Developer has not made or created, and will not make or create, or suffer to.be made or created, any Transfer, either voluntarily Or by operation of law, Without the prior written approval of the Agency. Any..Transfer made in contravention of this Section shall be void and shall bedeemed to be a default under this Agreement whether or not the Developer knew of or participated in such Transfer. Section 5.4 Permitted Transfers. Notwithstanding the provisions of Section 5.3, the following Transfers shall be permitted and approved by the Agency: a. Any Transfer creating a Security Financing Instrument permitted pursuant to the Flnancing'Plan~ b. Any Transfer directly resulting fro~ the foreclosure of a Security Financing Instrument or the granting of a deed in lieu of foreclosure of a Security Financing Instrument, or as otherwise permitted under Article Eight. c. Any transfer to an entity controlled by the Developer or a generalor limited partnership, or other entity in which the Developer or an entity controlled by the Developer is a general partner. d. Any Transfer of a limited partnership interest in a limited partnership occurring after a Transfer permitted pursuant to subsection (c), above. e. In addition to Joint ventures and partnerships described in subsections (c) and (d), above, any Transfer to a Joint venture or partnership entered into for the purpose of financing development of the Development which is approved in writing by the Agency. The Agencyts approval of such Joint venture or partnership shall not be:unreasonably withheld. In connection with the approval pursuant to this subsection, the Developer shall submit to tneAgency, on a confidential basis, tne proposed Joint venture or 5~504F~0 -19- partnership agreement and such other information about the proposed Joint venturer or partner as is reasonably necessary for the Agency to determine approval, including, without limitation, information about the identity, business background and experience, and financial capability of the proposed Joint venturer or partner. f. Any Transfer solely and directly resulting from the death or incapacity of an individual. Section 5.5 Effectuation of Certain Permitted Transfers. NO Transfer of this Agreement permitted pursuant to Section 5.4 (other than a Transfer pursuant to a Security Financing Instrument under Section S.4 (a) or (b), or Transfers of limited partnership interests permitted pursuant to Section 5.4 (a)) shall be effective unless, at the time of the Transfer, the person or entity to which such Transfer is made, by an instrument in writing and in form recordable among the land records, shall expressly assume the obligations of the Developer under this Agreement and agree to be subject to the conditions and restrictions to which the Developer is subject arising during this Agreement to the full extent that such obligation, conditions and restrictions are applicable to the particular portion of or interest in the Property conveyed in such Transfer. Anything to the contrary notwithstanding, the holder of a Security Financing Instrument whose interest shall have been acquired by, through or under a Security Financing Instrument, or shall have been derived immediately from any holder of a Security Financing Instrument, shall not be required to give to the Agency such written assumption until such holder or other person is in possession of the Property or entitled to possession of the Property pursuant to enforcement of the Security Financing Instrument. Section 5.6 Other Transfers with Aaencv ConSent. The Agency may, in its reasonable exercise of discretion, approve in writing other Transfers as requested by the Developer. Any transferee, by instrument in writing satisfactory to the Agency and in form recordable among the land records, for itself and its successors and:assigns, and for the benefit of the Agency, shall expressly,assume all of the obligations of the Developer under this Agreement relating to the Property. There shall be submitted to the Agency for review all instruments and other legal documents proposed to effect any such transfer; and if approved by the Agency (if approval is required hereby) its approval shall be indicated to the Developer in writing. Such II/lS/9~ --20-- approval shall be granted or denied by the Agency staff within twenty (20) business days of receipt by the Agency of the Developer~s request for approval of a Transfer and shall not be unreasonably withheld or delayed. In the absence of specific written agreement by the Agency, no such transfer, assignment or approval by the Agency shall be deemed to relieve the Developer or any'other party from any obligations under this Agreement. In the event that, in violation of the provisions of this Agreement, the Developer does sell, transfer, convey, lease or assign this Agreement or all or any part of the Property or the buildings, structures or other improvements on the Property prior to the recordation of a Certificate of~Completion for ~he Property, the Agency shall be entitled to increase the purchase price paid by the Developer for the Property previously conveyed from the Agency to the Developer by the amount that the consideration payable for such assignment or transfer is in excess of the sum of (a) the purchase price paid by the Developer to the Agency for the Property and (b) the costs of subsequent improvements and development, including carrying charges, interests and fees, transfer taxes, real estate taxes, assessments and commissions, escrow fees and costs related to the assignment or transfer. The consideration payable for such assignment or transfer to the extent it ie in excess of the amount so authorized, shall belong .and be paid to the Agency and until so paid, the Agency shall have a lien on such property in question and any part involved for such amount. Section 5.7 Release of the Developer Following Permitted Transfer. Prior to the issuance of a Certificate of Completion for the Development, no Transfer, assignment or approval by the Agency shall be deemed to relieve the Developer or any other party of any obligations under this Agreement, unless the'Agency consents in writing to such a release. Following the issuance of a Certificate of Completion for the Development/for a permitted Transfer to be effective, the Transfer shall operate to release the Developer from any liability under this Agreement which arises from an event occurring after the Transfer. SaS0~F/~0 -21- ARTICLE 6: REMEDIES Section 6.1 General APPlicability. The provisions of this Article Six shall govern the Parties~ remedies for breach or failure of the Agreement. Section 6.2 No Fault. of PartieS. The following events constitute a basis for a party to terminate this Agreement without the fault of the other: a. By the time provided in this Agreement, the Parties are unable to obtain all permits or approvals necessary to construct the Development substantially in accordance with the Construction Plans; or b. The Parties are unable to obtain compliance with CEQA or other applicable enviroemental laws or statutes for the development of the Development; c. The Parties mutually determine that the Development is not financially feasible, based on the results of the. Hazardous Materials Report, the proposed cost of the Remediation Plan, or the unreasonable size of the Financing Gap. Upon the happening of any of the above-described events, and at the election of either party, this Agreement may be terminated by written notice to the other party. After termination, neither party shall have any rights against, or liability to, the other under this Agreement, except as set forth in Article Seven. Section 6.3 Fault of the Aaencv. Except as to events constituting a basis for termination Under Section 6.2, each'of the following events constitutes a basis for the Developer to take action against the Agency: a. The Agency without good cause fails to convey the Property to the Developer within the time and in the manner called for in this Agreement and the Developer is otherwise entitled by this Agreement to such conveyance~ or b. The Agency breaches any other material provisions of this Agreement. -22- ~]ponthe happening of any of the above-described events, the Developer shall first notify the Agency in writing of'its purported breach or failure, giving the Agency sixty (60) days from receipt of such notice to cure or, if cure cannot be accomplished within sixty (60) days, to commence to cure such breach, failure, or act. In the event the Agency does not then so cure within said sixty (60) days, or if the breach or failure is of such a nature that it cannot be cured within sixty (60) days, the Agency fails to commence to cure within such sixty (60) days and thereafter diligently complete such cure within a reasonable time thereafter but in no event later than one hundred and twenty (120) days, then the Developer shall be afforded all of its rights at law or in equity, by taking 811 or any of the following remedies: (i) terminating in writing this Agreement; and (ii) prosecuting an action for damages or specific performance. Section 6.4 F~Ult Of the Developer. Except as to'events constituting a basis for termination under Section 6.2, each of the following events constitutes a basis for the Agency to'take action against the Developer: a. The Developer does not.meet the conditions or requirements of this Agreement; b. The Developer refuses to accept conveyance from the Agency of the Property within the time periods, and under such terms, as herein called for; c. The Developer constructs or attempts to construct the Development in violation of Article Three; d. The Developer fails to commence construction of the Development or to complete same within the time limits set forth in this Agreement; e. The Developer abandons or suspends construction of the Development prior to completion of all construction for a period of sixty (60) days after written notice by the Agenc~ of such abandonment or suspension; f. A Transfer (as defined in Section 5.1 above) occurs either voluntarily or involuntarily, in violation of Article Five; or g. The Developer breaches any other material provision of this Agreement. 11/18/V3 Upon the happening of any of the above-described events, the Agency shall first notify the Developer in writing of its purported breach, failure or act above described, giving the Developer sixty (60) days from receipt of such notice to cure, to cure such breach, failure, or act. In the event the Developer fails to cure within said sixty (60) days, or if such breach is of a nature that it cannot be cured within sixty (60) days, the Developer fails to commence to cure within said sixty (60) days and diligently complete such cure within a reasonable time thereafter but in no event later than one hundred and twenty (120) days,.then the Agency shall be afforded all of its rights at law or in equity by taking any or all of the following remedies: (i) terminating in writing this Agreements and (ii) prosecuting an action for damages or specific performance. Section 6.5 In addition to specific provisions of this Agreement, performance by either party under this Agreement shall not be deemed to be in default where delays or defaults are due to war; insurrection; strikes~ lock-outs; riots; floods; earthquakes~ fires; casualties; acts of God~ acts of the public enemy~ epidemics~ quarantine restrictions~ freight embargoes~ governmental restrictions or priority$ litigation (including suits filed by third parties concerning or arising out of this Agreement)~ weather or soils conditions which, in the reasonable judgment of the Developer~s contractor, will necessitate delays; inability to secure necessary 1abet, materials or tools~ delays of any contractor~ sub-contractor or supplier; acts or failure to act of the other party~ acts or failure to act of any public or governmental agency or entity (other than the acts or failure to act of the Agency)~ or any other causes (other than the Developer's inability to obtain financing for the Development) beyond the control or without the fault of the party claiming an extension of time to perform. An extension of time for any cause will be deemed granted if notice by the party claiming such extension is sent to the other within ten (10) days from the date the party seeking the extension first discovered the cause and such extension of time is not rejected in writingbythe other party withim ten (10) days of receipt of the notice. Times of performance tmderthis Agreement may also be extended in writing by theAgencTandthe beveloper. -24- ARTICLE 7: SPECIAL AGENCY REMEDIES Section 7.1 Riaht of Revertev. In the event that, following close of Escrow, this Agreement is terminated pursuant to Section 6.2 or 6.4 and such termination occurs prior to issuance of a Certificate of Completion for the Development, then the Agency shall have the right to reenter and take possession of the Property and all improvements thereon and to revest in the Agency the estate of the Developer in the Property. Upon revesting in the Agency of title to the Property, the Agency shall promptly use its best efforts to resell it consistent with its obligations under state law. Upon sale the proceeds shall be applied as follows: a. First, to reimburse the Agency for any costs it incurs in managing or selling the Property (after exercising its right of reverter), including, but not limited to, amounts to discharge or prevent liens or encumbrances arising from any acts or omissions of the Developer; b. Second, to reimburse the Agency for damages to which it is entitled under this Agreement by reason of the Developer*s default~ c. Third, to the Developer up to the sum of the amount of the purchase price paid to the Agency by the Developer for the Property pursuant to Article Two and the reasonable cost of the improvements the Developer has placed on the Property and such other reasonable costs the Developer has incurred directly in connection with development of the Property$ and d. Fourth, any belance to the Agency. Section 7.2 Final Construction If the Agency obtains title to any or all portions of the Property pursuant to Section 7.1 above, the Developer shall deliver to the Agency copies of any final Construction Plans and studies in the Developer~s possession or to which the Developer is entitled related to construction of the Development on the Property. 11n8,~3 -25- Section 7.3 Insnection of Books and Records. Upon request, the Developer shall permittheAgency to inspect and copy at reasonable times and on · confidential basis those books, records and all other documents 6f the Developer necessaz7 to determine the Developer's compliance with the terms of this Agreement. The Developer also has the right at all reasonable times to inspect and copy the books, records and all other documentation of the Agency pertaining to its obligations under this Agreement. This Section shall not permit either party to inspect any document that would be subject to the attorney- client p~ivilege in a Judicial proceeding. Section 7.4 Entry by the Aaencv. The Developer shall permit the Agency, through its officers, agents, or employees, at all reasonable times, both during and after construction of the Development, to enter onto the Property and inspect the work of construction. The Agency is under no obligation to supervise, inspect, or inform the Developer of the progress of construction, and the Developer shall not rely upon the Agency for any such activity. Section 7.5 Riahts of Mortcaaees. Any rights of the Agency under this Article Seven shall not defeat, limit or render invalid any Security Financing Instrument permitted by this Agreement or any rights provided for in this Agreement for the protection of holders of Security Financing Instruments. Any conveyance or reverter of the Property to the Agency pursuant to this Article Seven shall be subject to Security Financing Instruments permitted by this Agreement. ARTICLE 8: SECURITY FINANCING AND RIGHTS OF HOLDERS Section 8.1 No Enc-mhrances Except for Development Purposes. Notwithstanding any other provision of this Agreement, mortgages and deeds of trust, or any other reasonable method of security, are not permitted to be placed upon the Property, prior to the issuance of Certificate of Completion pursuant to Article Three, above, except for the purpose of securing Construction Loans and Permanent Financing pursuant to the Financing Plan. Prior to the issuance of Certificate of Completion of the Development on the Property, the Developer shall promptly notify the Agency of any mortgage, deed of trust, sale and lease-back or other financing, conveyance, encumbrance or lien that has been or SBS04F~SO 11/18/9~ will be created or attached to the relevant Property. The words "mortgage. and "deed of trust. as used in this Agreement include all other appropriate modes of financing real estate acquisition, construction, and land development. Section 8.2 Holder Not Obliaated to'Constr~. The holder of any Security Financing Instrument authorized by this Agreement is not obligated to construct or complete any improvements or to guarantee such construction or completion; nor shall any covenant or any other provision in conveyances from the Agency to the Developer evidencing the realty comprising the Property or any part of the Property be construed so to obligate such holder. However, nothing in this Agreement shall be deemed to permit or authorize any such holder to devote the Property or any portion of the Property to any uses, or to construct any improvements thereon, other than those uses of improvements provided for or authorized by this Agreement. Section 8.3 Notice of Default and Riaht to Cur-. Whenever the Agency pursuant to its rights set forth in Article Six of this Agreement delivers any notice or demand to the Developer with respect to the commencement, completion, or cessation of the construction of the Development, the Agency shall at the same time deliver to each holder of record of any Security Financing Instrument creating a lien upon the Property or any portion of the Property a copy of such notice or demand. Each such holder shall (insofar as the rights of the Agency are. concerned) have the right, but not the obligation, at its option, within sixty (60) days after the receipt of the notice, to cure or remedy or commence to cure or remedy any such default or breach affecting the Property which is subject to the lien of the Security Financing Instrument held by such holder and to add the cost of such remedy or cure to the security interest debt and the lien on its security interest. Nothing contained in this Agreement shall be deemed to permit or authorize such holder to undertake or continue the construction or completion of the Development (beyond the extent necessary to conserve or protect such improvements or construc~cion already made) without first having expressly assumed in writing the Developer's obligations to the Agency relating to such Development under this Agreement. The holder in that event must agree to complete, in the manner provided in this Agreement, the Development to which the lien or title of such holder relates. Any such holder properly completing such Development pursuant to this paragraph shall assume all rights end obligations of the Developer under this Agreement and shall be entitled, upon written request made to the Agency, to a Certificate of Completion from the Agency. sas04P/~0 13n~ -27- Section 8.4 Failure of Holder to Complete Development. In any case where six months after default by the Developer in completion of construction of the Development under this Agreement, the holder of record of any Security Financing Instrument, having first exercised its option to construct, has not proceeded diligently with construction, the Agency shall be afforded those rights against such holder it would otherwise have against the Developer under this Agreement. Section 8.5 R~aht of the Aaencv to Cure. In the event of a default or breach by the Developer of a Security Financing Instrument prior to the completion of development, and the holder has not exercised its option to complete the development called for on the Property, the Agency may cure the default, prior to the completion of any foreclosure. In such event the Agency shall be entitled to reimbursement from the Developer of all costs and expenses incurred by the Agency in curing the default. Th~ Agency shall also be entitled to a lien upon the Property or any portion of the Property to the extent of such costs and disbursements. The Agency agrees that such lien] shall be subordinate to any Security Financing Instrument, and the Agency shall execute from time to time any and all documentation reasonably requested by the Developer to effect such subordination. Section 8.6 Rlaht of Aaencv to Satisfy Other Liens. After the conveyance of title to the Property or any portion of the Property and after the Developer has had a reasonable time to challenge, cure or satisfy any liens or encumbrances on the Property or any portion of the Property, the Agency shall have the right to satisfy any such lien or encumbrances; provided, however, that nothing in this Agreement shall require the Developer to pay or make provision for the payment of any tax, assessment, lien or charge so long as the Developer in good faith shall contest the validity or amount therein and so long as such delay in payment shall hot subject the Property or any portion of the Property to forfeiture or sale. Section 8.7 Holder to be Notified. The Developer shall insert each term contained in this Article Eight into each relevant deed of trust or mortgage, or shall obtain acknowledgment of such terms by the holder prior to its coming into any security right or interest in the Property. SLtO4p.PSO II/IS/'~ ARTICLE 9: GENERAL PROVISIONS Section 9.1 Except where approval by the Agency Board is expressly described, all references in this Agreement to Agency approval shall mean approval by the Agency Executive Director. Section 9.2. This Agreement cannot be waived, changed, discharged or terminated orally, and no alteration or variation of the terms of this Agreement shall be valid unless made in writing and signed by the Agency and the Developer. Section 9.3 This Agreement shall be interpreted under and pursuant to the laws of the State of California. Section 9.4 Bindino UPOn SuccessorR. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of each of the Parties to this Agreement except that there shall be no transfer of any interest by any of the Parties to this Agreement except pursuant to the terms of this Agreement. Any reference in this Agreement to a specifically named party shall be deemed to apply to any successor or assign of such party who has acquired an interest in compliance with the terms of this Agreement, or under law. Section 9.5 Identity and Authority of the DeVelOD~F. The person executing this Agreement on behalf of the Developer covenants and warrants that the Developer is and shall remain in good standing and qualified to do business in the State of California; that the Developer has full right, power and authority to enter into this Agreement and to carry out all actions on its part contemplated by this Agreement; that the execution and delivery of this Agreement were duly authorized by proper action of the Developer and no consent, authorization or approval of any person is necessary in connection with such execution and delivery or to carry out all actions on the DeveloPerrs pert contemplated by this Agreement, except as have been obtained and are in full force and effect; that the person executing this Agreement on behalf of the Developer has full corporate authority to do so; and that this Agreement constitutes the valid, binding and enforceable obligation of the Developer. -29- Section 9.6 ' Identity and Authority of the Aaencv. The person executing this Agreement on behalf of the Agency covenants and warrants that the Agency is and shall remain in good standing and qualified to do business in the State of California; that the Agency has full right, power and authority to enter into this Agreement and to carry out 811 actions on its part contemplated by this Agreement; that the execution and delivery of this Agreement were duly authorized by proper action of the Agent7 and no consent, authorization or approval of any person is necessary in connection with such execution and delivery or to carry out all actions on the Agency~s part contemplated by this Agreement, except as have been obtained and are in full force and effect~ that the person executing this Agreement on behalf of the Agency has full corporate authority to do so; and that this Agreement constitutes the valid, binding and enforceable obligation of the Agency. Section 9.7 Leaal Actions: Attorneys Fees. All claims, disputes or other matters in question between the Par~ies to this Agreement arising out of or relating to this Agreement, or breach of this Agreement, shall be subject to, and decided by, arbitration in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association currently in effect, unless the Parties agree otherwise. Demand for arbitration shall be filed in wTiting with the' other party to this Agreement and with the American Arbitration Association. A demand for arbitration shall be made within 15 days or shall be deemed to be waived. The award rendered by the arbitrator or arbitrators shall be final, and Judgment may be entered upon it in accordance with applicable law in any court having Jurisdiction. In any action or proceeding arising out of this Agreement, including, but not limited to, any arbitration arising out of or resulting from this Agreement, the successful party in such litigation shall be entitled to recover from the non-successful party all reasonable costs, attorneys fees, and other expenses associated with such litigation. Section 9.8 Notices. Demands and Communications. Formal notices, demands, and communications between the Developer and the Agency shall be sufficiently given if, and shall not be deemed given unless, dispatched by certified mail, -30- postage prepaid, return receipt requested, or express delivery service with a delivery receipt, or personal delivery with a delivery receipt, to the office of the Developer and the Agency as follows: Agency: City of Rancho Cucamonga Redevelopment Agency 10500 Civic Center'Drive Rancho Cucamonga, CA 91729 Attn: 01en Jones Developer: Northtown Housing Development Corporation 10500 Civic Center Drive Rancho Cucamonga, CA 91729 Attn: Nacho Garcia Such written notices, demands and communications may be sent in the same manner to such other addresses as the affected party may from time to time designate as provided in this Section. Receipt shall be deemed to have occurred on the date marked on ~ written receipt for delivery, refusal of delivery, or the date the notice was returned as undeliverable. Section 9.9 Non-Liability of Agency Officials, Employees and Agents; Non-Liability of the Agency's Members. No member, official, employee or agent of the Agency, the Agency, or the City shall be personally liable to either party to this Agreement, or any of their successors or assigns, in the event of any default or breach by either party or for any amount which may become due to:either party or their successors or assigns, or on any obligation under the terms of this Agreement. Section 9.10 No Claims Against the Agency by Third Persons. Nothing contained in this Agreement shall create or Justify any claim against the Agency by any person that the Developer may have employed or with whom the Developer may have contracted relative to the purchase of materials, supplies or equipment, or the furnishing or theperformance of any work or services with respect to the purchase or the operation of the Property, and the Developer shall include similar requirements in any contracts entered into for the operation of the Property. 11/12/93 --3 1- Section 9.11 parties Not Co-Venturers. Nothing in this A~reement is intended to or does establish the Parties as partners, co-venturers, or principal and agent with one another. Section 9.12 Provisions Not Neraed with Deeds. None of the provisions of this AgTeement are intended to or shall be merged by any ~rant deed transferring title to any real property which is the subject of this A~reement from the Agency to the Devaloper or any successor in interest, and any such ~rant deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. Section 9.13 Real Estate Commissions. Neither party shall be responsible to the other for any real estate commissions or brokerage fees which may arise from this Agreement or otherwise be incurred by the other party. Section 9.14 ~G~[~l~i2. To the extent that any lender to, or equity investor in, the Development shall require any changes to this A~reement or any of the Loan Documents, the Agency a~rees to consent to such changes, and the Parties shall cooperate to effect such changes within a reasonable time. Section 9.15 Riahts and Remedies Cumulative. Except as otherwise expressly stated in this Agreement, the rights and remedies of the Parties are cumulative, and the exercise or failure to exercise on~ or more of such rights or remedies by either party shall not preclude the exercise by it, at the same time or different times, of any right or remedy for the same default or any other default by the other party. Section 9.16 ~- If any term, provision, covenant or condition of this A~reement is held by a court of competent Jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall continue in full force and effect unless the rights and obligations of the Parties have been materially altered or abridged by such lnvalidation, voiding or unenforceability. -32- Section 9.17 Time of the Essence. In all matters under this Agreement, time is of the essence. Section 9.18 Title of Parts and Sectio~C. Any titles, captions or headings of the parts, sections or subsections of ~his Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any par~ of its provisions. Section 9.19 Commlete Understandina of the Parti~-. This Agreement and the attached Exhibits constitute the entire understanding and agreement of the Parties, and may only be amended by a written agreement signed by both the Developer and the Agency, as set out in Section 9.2. IN WITNESS THEREOF, the Parties have executed this Agreement as of the date first written above. AGENCY: REDEVELOPMENT AGENCY OF THE CITY OF RANCHO CUCAMONGA By: Its: DEVELOPER: NORTHTOWN HOUSING DEVELOPMENT CORPORATION By: Its: Signatures Must Be AcknOwledged S~SO4F/~0 -33- STATE OF CALIFORNIA ) ) ss COUNTY OF SAN BERNARDINO ) On , 199 , before me, the undersigned, a Notary Public, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), 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. WITNESS my hand and official seal. STATE OF CALIFORNIA ) )ss COUNTY OF SAN BERNA~DINO ) On , 199_, before me, the undersigned, a Notary : Public, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), 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. WITNESS my hand and official seal. .~SO4F.PSO 11/18/9~ -34- wINIBIT A PROPERTY DESCRIPTION PARCEL NO. 2, PARCEL MAP 10208, PER MAP RECORDED IN BOOK 120, PAGES 59-60 OF PARCEL MAPS IN THE OFFICE OF THE COUNTY RECORDER, COUNTY OF SAN BERNARDINO. EXHIBIT B: FORM OF PROMISSORY NOTE Note $ Rancho Cucamonga, California , 1993 FOR VALUE RECEIVED, the Northtown Housing Development Corporation, a California nonprofit public benefit corporation ("Borrower-), promises to pay, or cause to be paid, to ~he Redevelopmerit Agency of the City of Rancho Cucamonga, a public body, corporate and politic, (the *'Agency"), the principal sum of ($ )', pursuant to that certain loan agreement by and between Borrower and the Agency (the "Loan Agreement**). The outstanding portion of the principal shall bear simple interest at the rate of three percent (3%) annually. 1. Loan Aareement: Deed of TrUst. This Note is made pursuant to the Loan Agreement. This Note and the Loan Agreement are secured by a Deed of Trust of even date with this Note (the "Deed of Trust"). 2. Term. The term of this Note (the "Term") shall begin on the date of execution of this Note and shall terminate upon the earlier of (a) repayment in full of the debt evidenced by this Note, or (b) forgiveness of the debt evidenced by this Note pursuant to the Loan .Agreement. 3. Payment. Principal and interest shall be payable in the manner set forth in the Loan Agreement. 4. PreDavment. Borrower shall have the right to prepay all or a portion of the principal and interest due under this Note without any resulting charge or penalty. 5. ~. Upon the occurrence of a Default (as defined in the Loan Agreement), the Agency shall have the right to accelerate the debt evidenced by this Note and declare all of the unpaid principal and interest, if any, immediately due and payable. Upon the occurrence of a Default, the outstanding portion of the principal shall bear interest at the rate of ten percent (10%) per annum, compounded annually. Any failure by the Agency to pursue its legal and equitable remedies upon default sss~z~s0 1on9/93 -1- shall not constitute a waiver of the Agency's right to declare a default and exercise all of its rights under this Note, the Deed of Trust, the Loan Agreement or the Regulatory Agreement. Nor shall acceptance by the Agency of any payment provided for in this Note constitute a waiver of the Agency's right to require prompt payment of any remaining payment owed. 6. Nonrecourse. The Loan and obligation evidenced by this Note and secured by the Deed of Trust shall be nonrecourse. 7. Manner and Place of Payment. All payments of principal and interest and any late charge due under this Note, as well as any additional payments set forth in the Deed of Trust, shall be payable in lawful money of the United States of America at the office of the Agency, 10500 Civic Center Drive, Rancho Cucamonga, CA 91729, or such other address as the Agency may designate in writing. NORTHTOWN HOUSING DEVELOPMENT CORPORATION, a California nonprofit public benefit corporation By: Its: 10/19/')3 --2-- EXHIBIT C: FORM OF DEED OF TRUST RECORDING REQUESTED BY: THE REDEVELOPMENT AGENCY OF THE CITY OF RANCHO CUCAMONGA WHEN RECORDED MAIL TO: Goldfarb & Lipman One Montgomery Street Telesis Tower, 23rd Floor San Francisco, CA 94104 Attn: M David Kroot No fee for recording pursuant to Government Code Section 27383 DEED OF TRUST AND SECURITY AGREEMENT THIS DEED OF TRUST.AND SECURITY AGREEMENT ("Deed Of Trust") is made as of the __ day of , 1993, by and among Northtown Housing Development Corporation, a California nonprofit public benefit corporation ("Trustor"), Title Company, a California corporation, ("Trustee"), and the Redevelopment Agency of the City of Rancho Cucamonga, a public body, corporate and politic ("Beneficiary"). FOR GOOD AND VALUABLE CONSIDERATION, including the indebtedness recited, and the trust created in this Deed of Trust, the receipt of which is acknowledged by the parties to = this Deed of Trust, Trustor irrevocably grants, transfers, conveys and assigns to Trustee, IN TRUST, WITH POWER OF SALE, for the benefit and security of Beneficiary, under and subject to the terms and conditions set forth in this Deed of Trust, Trustor's fee interest in the property located in the City of Rancho Cucamonga, County of San Bernardino, State of California, that is described in the attached Exhibit A, incorporated in this Deed of Trust by this reference (the "Property"). For the consideration acknowledged above, the Trustor also irrevocably grants, transfers, conveys and assigns to Trustee, IN TRUST, WITH POW=M OF SALE, for the benefit and security of Beneficiary, under and subject to the terms and conditions set forth in this Deed of Trust, the following: 1. All interest, estates or other claims, both in law and in equity which Trustor now has or may later acquire in the Property and the rents; .~ISO4CP~O 11/18/93 --1-- 2. All easements, rights-of-way and rights used in connection therewith or as a means of access thereto, including (without limiting the generality of the foregoing) all tenements, hereditaments and appurtenances related to the Property; 3. Any and all buildings and improvements of every kind and description now or later erected on the Property, and all property of the Trustor now or later affixed to or placed upon the Property; 4. All building materials and equipment now or later delivered to said property and intended to be installed in said property; 5. All right, title and interest of Trustor, now owned or later acquired, in and to any land lying within the right-of-way of any street, open or proposed, adjoining the Property, and any and all sidewalks, alleys and strips and areas of land adjacent to or used in connection with the Property; 6. All estate, interest, right, title, other claim or demand, of every nature, in and to such property, including the Property, both in law and in equity, including, but not limited to, all deposits made with or other security given by Trustor to utility companies; the proceeds from any or all of such property, including the Property; claims or demands with respect to the proceeds of insurance in effect with respect to the Property, which Trustor now has or may later acquire; any and all awards made for the taking by eminent domain, or purchase in lieu of : eminent domain of the whole or any part of such property or the Property, including without limitation, any awards resulting from a change of grade of streets, and awards for severance damages to the extent Beneficiary has an interest in such awards as provided in Paragraph 4.1 of this Deed of Trust; and 7. All of Trustor's interest in all articles of personal property or fixtures now or later attached to or used in and about the building or buildings now erected or later to be erected on the Property which are necessary to the complete and comfortable use and occupancy of such building or buildings for the purposes for which they were or are to be erected, including all other goods and chattels and personal property as are ever used or furnished in operating a building, or the activities conducted in such building or buildings, and all renewals or replacements of said items, or articles in substitution of said items, whether or not the same are, or shall be attached to said building or buildings in any manner. 11/18/93 --2-- All of the foregoing, together with ~he Property, is referred to in this Deed of Trust as the "Security." FORT HE PURPOSE OF SECURING: (a) Payment of Just indebtednesses of Trustor to Beneficiary as set forth in that certain promissory note executed by the Trustor in favor of the Beneficiary (the "Promissory Note") until paid or cancelled. Said principal and other payments shall be due and payable as provided in the Note. Said Note and all its terms are incorporated in this Deed of Trust by reference, and this conveyance shall secure any and all extensions to the Note, however evidenced; and (b) Payment of any sums advanced by Beneficiary to protect the Security pursuant to the terms and provisions of this Deed of Trust following a breach of Trustorts obligation to advance said sums and the expiration of any applicable cure period, with interest on said sums as provided in this Deed of Trust; and (c) Performance of every obligation, covenant or agreement of Trustor contained in this Deed of Trust, the Note, that certain loan agreement by and between the Beneficiary and the Trustor (the "Loan Agreement"), that certain regulatory agreement by and between the Beneficiary and the Trustor (the "Regulatory Agreement"), and any other debt, loan or security instruments between Trustor and the Beneficiary relating to the Property (collectively, the "Loan Documents"). AND TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR COVENANTS AND AGREES: ARTICLE 1 MAINTENANCE AND MODIFICATION OF THE PROPERTY AND SECURITY Section 1.1 Maintenance and Modification of the Property bv Trustor. The Trustor agrees that at all times prior to full payment of the sum Owed under the Note, the Trustor will, at the Trustor's ow~ expense, maintain, preserve and keep the Security or cause the Security to be maintained and preserved in good condition. The Trustor'will from time-to-time make or cause to be made all repairs, replacements and renewals deemed proper and necessary by it. SaS04C.PSO II/lS/9~ --3-- Section 1.2 Granting of Easement.~. Trustor may not grant easements, licenses, rights-of-way or other rights or privileges in the nature of easements with respect to any property or rights included in the Security except those required or desirable for installation and maintenance of public utilities including, without limitation, water, gas, electricity, sewer, telephone and telegraph, or those required by law. ' ARTICLE 2 INSURANCE; ADVANCES Section 2.1 Provisions Reaardina Insurance. Trustor agrees to provide insurance conforming in all respects to that required under the Loan Documents during the course of construction and following completion, and at all times until all amounts secured by this Deed of Trust have been paid and all other obligations secured by this Deed of Trust fulfilled, and this Deed of Trust reconveyed. All such insurance policies and coverages shall be maintained at Trustorts sole cost and expense. Certificates of insurance for all of the above insurance policies, showing the same to be in full force and effect, shall be delivered to the Beneficiary upon demand therefor at any time prior to the Beneficiaryts receipt of the entire Principal and all amounts secured by this Deed of Trust. Section 2.2 Advances. In the event the Trustor shall fail to maintain the full insurance coverage required by this Deed of Trust or shall fail to keep the Security in accordance with the Loan Documents, the Beneficiary, after at least seven (7) days prior notice to Beneficiary, may take out the required policies of insurance and pay the premiums on the same or may make such repairs or replacements as are necessary and provide for payment for such repairs or replacements; and all amounts so advanced by the Beneficiary shall become an additional obligation of the Trustor to the Beneficiary (together with interest as set forth below) and shall be secured by this Deed of Trust, which amounts the Trustor agrees to pay on the demand of the Beneficiary, and if not so paid, shall bear interest from the date of the advance at the lesser of twelve percent (12%) per annum or the maximum rate permitted by law. 11/18/9~ '4-- ARTICLE 3 DAMAGE, DESTRUCTION OR CONDEMNATION Section 3.1 Awards and Damaaes. All Judgments, awards of damages, settlements and compensation made in connection with or in lieu of (1) taking of all or any part of or any interest in the Property by or under assertion of the power of eminent domain, (2) any damage to or destruction of the Property or any part of the Property by insured casualty, and (3) any other injury or damage to all or any part of the Property are assigned to and shall be paid to the Beneficiary by a check made payable to the Beneficiary. The Beneficiary is authorized and empowered (but not required) to collect and receive any funds and is authorized to apply them in whole or in part upon any indebtedness or obligation secured by this Deed of Trust, in such order and manner as the parties shall determine. The Beneficiary shall be entitled to settle and adjust all claims under insurance policies provided under this Deed of Trust and may deduct and retain from the proceeds of such insurance the. amount of all expenses incurred by it in connection with any such settlement or adjustment. All or any part of the amounts so collected and recovered by the Beneficiary may be released to Trustor upon such conditions as the Beneficiary may impose for its disposition. Application of all or any part of the funds collected and received by the Beneficiary or the release of such funds shall not cure or waive any default under this Deed of Trust. The rights of the Beneficiary under this Section are subject to the rights of any senior mortgage lender. ARTICLE 4 AGREEMENTS AFFECTING THE PROPERTY~ FURTHER ASSURANCES~ PAYMENT OF pRINCIPALAND INTEREST Section 4.1 Q~ber Aareements Affectina Property. The Trustor shall duly and punctually perform all terms, covenants, conditions and agreements binding upon it under the Loan Documents and any other agreement of any nature whatsoever now or later involving or affecting the Security or any part of the Security. Section 4.2 Payment of the Principal. The Trustor shall pay to the Beneficiary the Principal and any other payments as set forth in the Note, in the amounts and by the times set out in the Note. SSSO4C.~O 11/18/93 -5- Section 4.3 Financing Statement. The Trustor shall execute and deliver to the Beneficiary such financing statements pursuant to the appropriate statutes, and any other documents or instruments as are required to convey to the Beneficiary a valid perfected security interest in the Security. The Trustor agrees to perform all acts which the Beneficiary may reasonably request so as to enable the Beneficiary to maintain such valid perfected security interest in the Security in order to secure the payment of the Note in accordance with its terms. The Beneficiary is authorized to file a copy of any such financing statement in any Jurisdiction(s) as it shall deem appropriate from time-to-time in order to protect the security interest established pursuant to this instrument. Section 4.4 Operation of the Security. The Trustor shall operate the Security (and, in case of a transfer of a portion of the Security subject to this Deed of Trust, the transferee shall operate such portion of the Security) in full compliance with the Loan Documents. Section 4.5 Nondiscriminati~D. The Trustor covenants by and for itself, its heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Security, nor shall the Trustor itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the Security. The foregoing covenants shall run with the land. ARTICLE 5 HAZARDOUS MATERIALS Trustor shall keep and maintain the Property in compliance with, and shall not cause or permit the Property to be in violation of any federal, state or local laws, ordinances or regulations relating to industrial hygiene or to the environmental conditions on, under or about the Property ll/!S/~ -6- including, but not limited to, soil and ground water conditions. Trustor shall not use, generate, manufacture, store or dispose of on, under, or about ~he Property or transport to or from the Property any Hazardous Materials, except such as may be customarily kept and used in and about multifamily residential property. Trustor shall immediately advise Beneficiaz7 in wTiting if at any time it receives Written notice of (i) any and all enforcement, cleanup, removal or o~her governmental or regulatory actions instituted, completed or threatened against Trustor or the Property pursuant to any applicable federal, state or local laws, ordinances, or regulations relating to any Hazardous Materials~ (ii) all claims made or threatened by any third party against Trustor or the Property relating to damage, contribution, cost recovery compensation, loss or injury resulting from any Hazardous Materials~ and (iii) Trustor*s discovery of any occurrence or condition on any real property adjoining or An the vicinity of the Property that could cause the Property or any part of the Property to be classified as "border-zone property" under the provision of California Health and Safety Code, Sections 25220 e~ sea. or any regulation adopted in accordance therewith, or to be otherwise subject to any restrictions on the ownership, occupancy, transferability or use of the Property under any Hazardous Materials Law. ARTICLE 6 EVENTS OF DEFAULT AND REMEDIES Section 6.1 ~vents of Default. The following shall constitute Events of Default: (1) failure to make any payment to be paid by Trustor under the Loan Documents; and (2) failure to observe or perform any of Trustor*s other covenants, agreements or obligations under the Loan Documents, including, without limitation, the provisions concerning discrimination. Section 6.2 Acceleration of MaturitY. If an Event of Default shall have occurred and be continuing, then at the option of the Beneficiary, the amount of any payment related to the Event of Default and the unpaid Principal of the Note shall immediately become due and payable, upon written notice by. the Beneficiary to the Trustor (or automatically where so specified in the Loan Documents), and no omission on the part of the Beneficiary to exercise such option when entitled to do so shall be construed as a waiver of such right. Section 6.3 The Beneficiary,s Right to Enter and Take Possession, If an Event of Default shall have occurred end be continuing, the Beneficiary may: (a) Either in person or by agent, with or without bringing any action or proceeding, or by a receiver appointed by a court, and without regard to the adequacy of its security, enter upon the Security and take possession thereof (or any part thereof) and of any of the Security, in its own name or in the name of Trustee, and do any acts which it deems necessary or desirable to preserve the value or marketability of the Property, or part thereof or interest therein, increase the income therefrom or protect the security thereof. The entering upon and taking possession of the Security shall not cure or waive any Event of Default Or Notice of Default (as defined below) hereunder or invalidate any act done in response to such Default or pursuant to such Notice of Default and, notwithstanding the continuance in possession of the Security, Beneficiary shall be entitled to exercise every right provided for in this Deed of Trust, or by law upon occurrence of any Event of Default, including the right to exercise the power of sale; (b) Commence an action to appoint a receiver, or specifically enforce any of the covenants hereof; (c) Deliver to Trustee a written declaration of default and demand for sale, end a written notice of default and election to cause Trustor*s interest in the Security to be sold ("Notice of Default and Election to Sell"), which notice Trustee or Beneficiary shall cause to be duly filed for record in the Official Records of San Bernardino County; or (d) Exercise allother rights and remedies provided in the Loan Agreement, the instruments by which the Trustor acquires title to any Security, or in any other document or agreement now or later evidencing, creating, or securing all or any portion of the obligations securediby this Deed of Trust. Section 6.4 Foreclosure By Power of Sal~. Should the Beneficiary elect to foreclose under this Deed of Trust, the Beneficiary shall give written Notice of Sale to the -8- Trustee and shall deposit with Trustee the Note which is secured by this Deed of Trust (the deposit of which shall be deemed to constitute evidence that the unpaid principal amount of the Note is immediately due and payable), and such receipts and evidence of any expenditures made that are additionally secured by this Deed of Trust as Trustee may require. (a) Upon receipt of such notice from the Beneficiary, Trustee shall cause to be recorded, published and delivered to Trustor such Notice of Default and Election to Sell as then required by law and by this Deed of Trust. Trustee shall, without demand on Trustor, after lapse of such time as may then be required by law and after recordation of such Notice of Default and Election to Sell and after Notice of Sale having been given as required by law, sell the Security, at the time and place of sale fixed by it in said Notice of Sale, whether as a whole or in separate lots or parcels or items as Trustee shall deem expedient and in such order as it may determine unless specified otherwise by the Trustor according to California Civil Code Section 2924g(h), at public auction to the highest bidder, for cash in lawful money of the United States payable at the time of sale. Trustee shall deliver to such purchaser or purchasers its good and sufficient deed or deeds conveying the property so sold, hut without any covenant or warranty, express or implied. The recitals in such deed or any matters of facts shall be conclusive proof of the truthfulness of said covenants or warranties. Any person, including, without limitation, Trustor, Trustee or Beneficiary, may purchase at such sale, and Trustor covenants to warrant and defend the title of such purchaser or purchasers. (b) After deducting all reasonable costs, fees and expenses of Trustee, including costs of evidence of title in connection with such sale, Trusteeshall apply the proceeds of sale to payment of: (i) the unpaid Principal amount of the Note; (ii) all other amounts owed to Beneficiary under the Loan Documents; (iii) all other sums then secured by this Deed of Trustl and (iv) the remainder, if any, to Trustor. (c) Trustee may postpone sale of all or any portion of the Property by public announcement at such time and place of sale, and from time-to-time thereafter, and without further notice make such sale at the time fixed by the last postponement, or may, in its discretion, give a new Notice of Sale. Section 6.5 ~. If an Event of Default shall have occurred and be continuing, Beneficiar~, as a matter of right and without further notice to Trustor or anyone claiming under the Security, and without regard to the then value o£ the Security or the interest of Trustor therein, shall have the right to apply to any court having Jurisdiction to appoint a receiver or receivers oZ the Security (or a part thereof), and Trustor hereby irrevocably consents to such appointment and waives further notice oZ any application therefor. Any such receiver or receivers shall have all the usual powers and duties of receivers in like or similar cases, and all the powers and duties of Beneficiary in case oZ entry as provided herein, and shall continue as such and exercise all such powers until the date oZ confirmation of sale of the Security, unless such receivership is sooner terminated. Section 6.6 Remedies Cumulative. No right, power or remedy conferred upon or reserved to the Beneficiary by this Deed of Trust is intended to be exclusive of any other right, power or remedy, but each and every such right, power and remedy shall be cumulative and concurrent and shall be in addition to any other right, power and remedy given under this Deed of Trust or now or'later existing at law or in equity. Section 6.7 NoWaiver. (a) If the Beneficiary (i) grants forbearance or an exwcension of time for the payment of any sums secured by this Deed of Trust, (ii) takes other or additional security or the payment of any sums secured by this Deed of Trust, (ili) waives or does not exercise any right granted in the Loan Documents, (iv) releases any part of the Security from the lien of this Deed of Trust, or otherwise changes any of the terms, covenants, conditions or agreements in the Loan Documents, (v) consents to the granting of any easement or other right affecting the Security, or (iv) makes or consents to any agreement subordinating the lien hereof, any such act or omission shall not release, discharge, modify, change or effect the original liability under this Deed of Trust, or any other obligation of the Trustcr or any subsequent purchaser of the Security or any part of the Security, or any maker, co-signer, endorser, surety or quarantor (unless expressly released)$ nor shall any such act or omission preclude the Beneficiary from exercising any right, power or privilege granted or intended to be granted by this Deed of Trust in any Event of Default then made or of any subsequent -10- Event of Default, nor, except as otherwise expressly provided in an instrument or instruments executed by the Beneficiary shall the lien of this Deed of Trust be altered. Section 6.8 Trustee May File Proofs'of Claim. In the case of any receivership, insolvency, bankruptcy, reorganization, arrangement, adjustment, composition or other proceedings affecting the Trustor, its creditors or its property, the Beneficiary, to the extent permitted by law, shall be entitled to file such proofs of claim and other documents as may be necessary or advisable in order to have the claims of the Beneficiary allowed in such proceedings and for any additional amount which may become due and payable by the Trustor under this Deed of Trust after such date. Section 6.9 Nonrecourse. The Loan and obligation evidenced by the Note and secured by this Deed of Trust shall be nonrecourse. ARTICLE 7 MISCELLANEOUS Section 7.1 AmendmentS. This instrument cannot be waived, changed, discharged or = terminated orally, but only by an instrument in writing signed by Beneficiary and Trustor. Section 7.2 · Reconvevance bv Trustee. Upon written request of Beneficiary stating that all sums secured by this Deed of Trust have been paid or forgiven, and upon surrender of this Deed of Trust to Trustee for cancellation and'retention, and upon payment by Trustor of Trustsets reasonable fees, Trustee shall reconvey the Security to Trustor, or to the person or persons legally entitled thereto. Section 7.3 ~. If at any time after the execution of this Deed of Trust it shall become necessary or convenient for one of the parties hereto to serve any notice, demand or communication upon the SBS04CPSO 11/18/93 -11- other party, such notice, demand or communication shall be in w~iting and shall be served personally or by depositing the same in the registered United States mail, return receipt requested, postage prepaid and (1) if intended for Beneficiary shall be addressed Redevelopment Agency of the City of Rancho Cucamonga 10500 Civic Center Drive Rancho Cucamonga, CA 91729 and (2) if intended for Trustor shall be addressed to: Northtown Housing Development Corporation 10500 Civic Center Drive Rancho Cucamonga, CA 91729 Attn: Executive Director Any notice, demand or communication shall be deemed given, received, made or communicated on the date personal delivery is effected or, if mailed in the manner specified in this Section, on the delivery date or.date delivery is refused by the addresses, as shown on the return receipt. Either party may change its address at any time by giving written notice of such change to Beneficiary or Trustor as the case may be, in the manner provided in this Section, at least ten (10) days prior to the date such change is desired to be effective. Section 7.4 ~. The captions or headings at the beginning of each Section of this Deed of Trust are for the convenience of the parties and are not a part of this Deed'of Trust. Section 7.5 lnvallditv of Ce=tain ProvlSiOnS. Every provision of this Deed of Trust is intended to be severable. In the event any term or provision hereof is declared to be illegal or invalid for any reason whatsoever by a court or other body of competent Jurisdiction, such i11egality or invalidity shall'not affect the balance of the terms and provisions hereof, which terms and provisions shall remain binding and enforceable. If the lien of this Deed of Trust is invalid or unenforceable as to any part of the debt, or if the lien is invalid or unenforceable as to any part of the Security, the unsecured or partially secured portion of the debt, and all payments made on the debt, whether voluntary or under foreclosure -12- or other enforcement action or procedure, shall be considered to have been first paid or applied to the full payment of that portion of the debt which is not secured or partially secured by the lien of this Deed of Trust. Section 7.6 This Deed of Trust shall be governed by and construed in accordance with the laws of the State of California. Section 7.7 Substitution of Trustee. Beneficiary may from time-to-time substitute a successor or successors to any Trustee named in, or acting under, this Deed of Trust to execute this Trust. Upon such appointment, and without conveyance to the successor trustee, the latter shall be vested with all title, powers, and duties conferred upon any Trustee named in, or acting under this Deed of Trust. Each such appointment and substitution shall be made by written instrument executed by Beneficiary, containing reference to this Deed of Trust and its place of record, which, when duly recorded in the proper office of the county or counties in which the Property is situated, shall be conclusive proof of proper appointment of the successor trustee. Section 7.8 Acceptance bvTrustee. Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made public record as provided by law. Except as otherwise provided by law the Trustee is not obligated to notify any party hereto of pending sale under this Deed of Trust or of any action of proceeding in which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee. 11/1S/93 -13- IN WITNESS WHEREOF, Trustor has executed this Deed of Trust as of the day and year first above written. TRUSTOR: NORTHTOWNHOUSING DEVELOPMENT CORPORATION, a California nonprofit public benefit corporation By: Its: -14- STATE OF CALIPORNIA ) COUNTY OF ) On , 199_, before me, the undersigned, a Notary Public, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), 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. WITNESS my hand and official seal. -15- EXHIBIT A (Legal Description) -16- EXHIBIT D: FORM OF LOAN AGREEMENT This Loan Agreement (the "Agreement-) is entered into as of the day of , 1993, by and between the Redeve'~ent Agency of the City of Rancho Cucamonga, a public body corporate and politic (the "Agency.) and · a California nonprofit public benefit corporation (the "Borrower.); with reference to the following facts: A. The Borrower desires to redevelop certain property owned by the Agency and more particularly described in the Exhibit A to the Disposition and Development Agreement by and between the Parties (the "DDA") (the "Property"). The Borrower wishes to develop on the Property an approximately 88-unit multifamily rental housing development affordable to low and moderate income households. B. The Agency has agreed to provide a loan to the Borrower to assist in the finance of the acquisition and redevelopment of the Property. C. Pursuant to this Agreement, the Agency will loan to the Borrower ($ ) to be used to finance the acquisition and redevelopment of the Property. NOW, THEREFORE, the Parties agree as follows: · ARTICLE i DEFINITIONS AND EXHIBITS Section 1.1. ~itions a. "Agency";sha11 mean the Redevelopment Agency of the City of Rancho Cuca~onga, a public body, corporate and politic. b. "Agency Board" shall mean the governing board of the Redevelopmerit Agency of the City of Rancho Cucamonga, a public body, corporate and politic. c. "Agency Executive Directors shall mean the executive director of the Redevelopment Agency of the City of Rancho Cucemonga, a public body, corporate and politic. d. "Agreement" shall mean this Loan Agreement entered into by and between the Agency and the Borrower. 1:n8/93 -1- e. "Borrower" shall mean , a California nonprofit public benefit corporation. f. "Deed of Trust" shall mean that certain deed of trust executed by the Borrower in favor of the Agency as security for the Loan. g. "Default" shall mean any occurrence, act or omission described in Section 3.1 of this Agreement. h. "Development" means the development of approximately 88 units of multi-family housing on the Property according to the terms of the Loan Agreement and the Regulatory Agreement. i. "Loan" shall mean the loan made by the Agency to the Borrower pursuant to this Agreement. j. "Loan Documents" are collectively this Loan Agreement, the Note, the Deed of Trust, and the Regulatory Agreement as they may be amended, modified, or restated from time to time, along with all exhibits and attachments to these documents. k. "Note" shall mean that certain promissory note executed by the Borrower in favor of the Agency, the payment of which is secured by the Deed of Trust. 1. "Parties" shall mean the parties to this Agreement. m. "Prohibited Transfer" shall mean any transfer prohibited by Section 6.3 of the Disposition and Development Agreement by and between the Agency and the Borrower with regard to the Property. n. "Property" shall mean the property more specifically described in Exhibit A to the DDA. o. "Reguletory Agreement" shall mean that certain regulatory agreement entered into by and between the Agency and the Borrower. p. "Term" shall mean the term of the Loan described in Section 2.6(a) of this Agreement. SSSO4B/~O 11118/93 ARTICLE 2 LOAN PROVISIONS Section 2.1. Loan. The Agency shall loan to the Borrower the principal amount of Dollars ($ ) (the "Loan") for the purposes set forth in Section 2.3 of this Agreement. The obligation to repay the Loan shall be evidenced by the Note in substantially the form attached to the DDA as Exhibit B. Section 2.2 Interest. The outstanding principal balance of the Loan shall accrue simple interest at the rate of three percent (3%) per annum on the outstanding balance of the Loan, commencing on the date of disbursement and, subject to the provisions of Section 2.6(c) below, ending on the date of repayment or forgiveness of the Loan; provided, however, that in the event of a Default (as defined in Section 3.1(a) below), interest shall begin to accrue following the Default at the default rate of ten percent (10%), compounded annually. Section 2.3. Use of Loan Funds. The Borrower shall use the Loan funds to pay for the following costs directly associated with acquisition and redevelopment of the Property: (a) payment of the purchase price of the Property, (b) payment of closing costs, (c) construction of the Development on the Property, and (d) any other costs reasonably associated with the redevelopmerit of the Property. In the event that the Agency converts a predevelopment grant to the Borrower to a loan, the amount of that loan shall be added to the principal amount of the Loan governed by this Agreement, and shall be subject to all of the provisions of this Agreement and the Loan Documents. Section 2.4. Security. The Borrower shall secure its obligation to repay the Loan as evidenced by ~he Note by signing and delivering to ~he Agency the Deed of Trust encumbering the Property in substantially the form attached to the DDA as Exhibit C. The Agency shall execute such documents as may be necessary to subordinate the priority of the lien of the Deed of Trust and the lien of this Agreement to the lien of any deed of trust securing a loan for the Property by SSSO4B~50 il/18/93 --3-- any other lender providing financing to the Borrower for the redevelopment of ~he Property. Section 2.5. Disbursement of Loan Proceeds. After (a) the Borrower has signed and delivered to the Agency the Note in substantially the form attached as Exhibit B to the DDA, (b) the Borrower has signed and delivered to the Agency the Deed of Trust in substantially the form attached as Exhibit C, and (c) the Borrower has signed the Regulatory Agreement, and (d) the Deed of Trust and the Regulatory Agreement have been recorded against the Property in the Office of the Recorder of the County of San Bernardino, the Agency shall from time to time disburse such amounts of the Loan proceeds as are requested by the Borrower, until the full amount of the Loan is disbursed. Section 2.6. Term and Repayment Schedule. (a) Subject to the provisions of subsection (c) below, the Loan and the Regulatory Agreement shall have a term of ( ) years, commencing on , 1993 and terminating on , (the "Term"). (b) All principal and accrued interest on the Loan shall be due in full on the earlier to occur of: (i) the date of any Prohibited Transfer; (ii) the date of any Default as defined in Section 3.1 below; or (iii) the expiration of the Term (as defined above). (c) The Borrower shall have right to prepay the Loan at any time; provided, however, that the Regulatory Agreement and the Deed of Trust shall remain in effect for the terms set forth in those respective documents, as applicable, regardless of any prepayment. Section 2.7 Compliance wi~h Loan Documents. The Borrowerrs actions with respect to the Property and the use of the Loan funds shall at all times be in full conformity with all of the requirements of the Loan Documents, including, but not limited to, the Requlatory Agreement, which governs the use and occupancy of the Development. Psilure to comply with the terms of the Loan Documents will constitute a Default, as defined in Section 3.1 of this Agreement. 11/18/93 --4-- Section 2.8 The Agency hereby agrees that the liens and encumbrances created under this Loan Agreement and the Loan Documents shall be subordinate to any liens and encumbrances created under any loan documents of any lenders providing financing to the Development. ARTICLE 3 DEFAULT Section 3.1. (a) A "Default" shall consist of any breach by the Borrower of any covenant, agreement, provision or warranty contained in the Loan Documents, which breach is not cured within the applicable cure period. In the event of a breach, the Agency shall provide to the Borrower written notice of the breach and the Borrower shall have thirty (30) days to cure the breach or, if such breach cannot reasonably be cured within thirty (30) days, the Borrower shall commence to cure within thirty (30) days and thereafter shall diligently complete such cure. (b) If, after the time provided in Section 3.1(a), the Borrower has not cured the breach and the Agency has not expressly waived its rights under any of the Loan Documents, then the breach shall constitute a Default and the Agency may do any one or more of the following: (i) accelerate the obligation to repay the Loan; (ii) charge the default rate of interest as set forth in Section 3.2 above; or (iii) apply to a court for specific performance of this Agreement or an injunction against any violation of this Agreement, or any other remedies at law or in equity or any such other actions as shall be necessary or desirable so as to correct non-compliance with this Agreement. ARTICLE 4 MISCELLANEOUS PROVISIONS Section 4.1. ~. The Borrower shall maintain and keep in force, at the Borroweres sole cost and expense, the following insurance applicable to the Development: i. Comprehensive'General Liability insurance with limits not less than $1,000,000 each occurrence combined single limit for Bodily Injury and Property Damage, including coverage for Contractual Liability, Personal Injury, Broadform Property Damage, Products and Completed Operations. 58S04B.PSO 11/18/93 -5- ii. Comprehensive Automobile Liability insurance with limits not less than $1,000,000 each occurrence combined single limit for Bodily Injury and Property Damage, including coverage for o~ned, non-owned and hired vehicles, as applicable; provided, however, that if the Developer does not own or lease vehicles for purposes of this Agreement, then no automobile insurance shall be required. iii. Property insurance covering the Development covering all risks of loss, excluding earthquake and flood, for '100% of appraised value of the Development, with a deductible, if any, acceptable to the Agency, naming the Agency as a loss payee, as its interest may appear. At any time during the term of this Agreement, the Borrower shall provide certificates of insurance, in form and with insurers reasonably acceptable to the Agency, evidencing compliance with the requirements of this Section, and shall provide complete copies of such insurance policies, including a separate endorsement naming the Agency as additional insured. ARTICLE 5 GENERAL PROVISIONS Section 5.1 Aaencv APProval. Except where approval by the Agency Board is expressly described, all references in this Agreement to Agency approval shall mean approval by the Agency Executive Director. Section 5.2. Amendments. This Agreement cannot be waived, changed, discharged or terminated orally, and no alteration or variation of the terms of this Agreement shall be valid unless made in writing and signed by the Agency and the Borrower. Section 5.3 This Agreement shall be governed by the laws of the State of California. -6- Section 5.4 Bindinu UDOn SuccessorS. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of each of the parties to this Agreement except that there shall be no transfer of any interest by any of the parties to this Agreement except pursuant to the terms of this Agreement. Any reference in this Agreement to a specifically named party shall be deemed to apply to any successor or assign of such party who has acquired an interest in compliance with the terms of this Agreement, or under law. Section 5.5 Identity and Authority of the Borrower. The person executing this Agreement on behalf of the Borrower covenants and warrants that the Borrower is and shall remain in good standing and qualified to do business in the State of California~ that the Borrower has full right, power and authority to enter into this Agreement and to carry out all actions on its part contemplated by this Agreement; that the execution and delivery of this Agreement were duly authorized by proper action of the Borrower and no consent, authorization or approval of any person is necessary in connection with such execution and delivery or to carry out all actions on the Borrower~s part contemplated by this Agreement, except as have been obtained and are in full force and effect; that the person executing this Agreement on behalf of the Borrower has full corporate authority to do so; and that this Agreement constitutes the valid, binding and enforceable obligation of the Borrower. Section 5.6 Identity and Authority of the Aaencv. The person executing this Agreement on behalf of the Agency covenants and warrants that the Agency is and shall remain in good standing and qualified to do business in the State of California; that the Agency has full right, power and authority to enter into this Agreement and to carry out all actions on its part contemplated by this Agreement; that the execution and delivery of this Agreement were duly authorized by proper action of the Agency and no consent, authorization or approval of any person is necessary in connection with such execution and delivery or to carry out all actions on the Agency~s part contemplated by this Agreement, except as have been obtained and are in full force and effect~ that the person executing this Agreement on behalf of the Agency has full corporate authority to do so; and that this Agreement constitutes the valid, binding and enforceable obligation of the Agency. --7-- Section 5.7 Leaal Actions: Attorneys Fees. All claims, disputes or other matters in question between the parties to this Agreement arising out of or relating to this Agreement, or breach of this Agreement, shall be subject to, and decided by, arbitration in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association currently in effect, unless the parties agree otherwise. Demand for arbitration shall be filed in writing with the other party to this Agreement and with the American Arbitration Association. A demand for arbitration shall be made within 15 days or shall be deemed to be waived. The award rendered by the arbitrator or arbitrators shall be final, and judgment may be entered upon it in accordance with applicable law in any court having Jurisdiction. In any action or proceeding arising out of this Agreement, including, but not limited to, any arbitration arising out of or resulting from this Agreement, the successful party in such litigation shall be entitled to recover from the non-successful party all reasonable costs, attorneys fees, and other expenses associated with such litigation. Section 5.8 No Claims Auainst Auencv by Third Parties. Nothing contained in this Agreement shall create or Justify any claim against the Agency by any person that the Borrower may have employed or with whom the Borrower may have contracted relative to the purchase of materials, supplies or equipment, or the furnishing or the performance of any work or services with respect to the purchase or the operation of the Property, and the Borrower shall include similar requirements in any contracts entered into for the operation of the Property. Section 5.9 No Third Party Beneficiaries. There shall be no third party beneficiaries to this Agreement. Section 5.10 Non-Liability of Official$. No member, official, employee or agent of the Borrower, the Agency, or the City of Rancho Cucamonga shall be personally liable to either party to this Agreement, or any of their SSSO4B.P~O 11/38/93 -8- successors or assigns, in the event of any default or breach by either party or for any amount which may become due to either party or their successors or assigns, or on any obligation under the terms of this Agreement. Section 5,11 Notices. Demands and CommuntcattO~l. Formal notices, demands, and communications between the Parties shall be sufficiently 9tven if, and shall not be deemed given unless, dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered by express delivery service, return receipt requested, or personal delivery with a delivery receipt, to the principal office of the Parties as follows: Agency: City of Rancho Cucamonga Redevelopmerit Agency 10500 Civic Center Drive Rancho Cucamonga, CA 91729 Attn: Olen Jones Borrower: Northtown Housing Development Corporation 10500 Civic Center Drive Rancho Cucamonga, CA 91729 Attn: Nacho Gracia Such written notices, demands and communications may be sent in the same manner to such other addresses as the affected Party may from time to time designate as provided in this Section. Receipt shall be deemed to have occurred on the date shown on a written receipt as the date of delivery, refusal of delivery, or the date the notice was returned as undeliverable. Section 5.12 Parties Not Co-Venturers. Nothing in this Agreement is intended to or does establish the parties as partners, co-venturers, or principal and agent with one another. Section 5.13 ~GLL~- To the extent that any lender to, or equity investor in, the Development shall require any changes to this Agreement or any of the Loan Documents, the ~SO4B~50 !l/lS/9~ -9- Agency agrees to consent to such changes, and the parties shall cooperate to effect such changes within a reasonable time. Section 5.14 Riahts and Remedies Cumulative. Except as otherwise expressly stated in this Agreement, the rights and remedies of the parties are cumulative, and the exercise or failure to exercise one or more of such rights or remedies by either party shall not preclude the exercise by it, at the same time or different times, of any right or remedy for the same default or any other default by the other party. Section 5.15 ~. If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall continue in full force and effect to the fullest extent possible unless the rights and obligations of the parties have been materially altered or abridged by such invalidation, voiding or unenforceability. Section 5.16 Title of Parts and SectlODs. Any titles, captions or headings of the par~s, sections or subsections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any part of its provisions. Section 5.17 Time of the Essence. In all matters under this Agreement, time is of the essence. Section 5.18 Complete Understandina of the Fart~es. This Agreement constitutes the entire understanding and agreement of the parties, and may only be amended by a written agreement signed by both the Agency and the Borrower, as set out in Section 5.2. This Agreement is executed in three (3) triplicate originals, each of which is deemed to be an original, and may be executed simultaneouslyor in counterparts, each of which shall also be deemed to be an original, but all of which together shall constitute one and the same Agreement. -10- WHEREFORe-, the Parties have executed this Agreement in triplicate on or as of the date first written above. AGENCY: REDEVELOPMENT AGENCY OF THE CITY OF RANCHO CUCAMONGA · Its: BORROWER: By: Its: 11/18/~93 --11-- EXHIBIT E: FORM OF REGULATORY AGREEMENT Recording Requested By: REDEVELOPMENTAGENCy OF THE CITY OF RANCHO CUCAMONGA When Recorded Return To= Goldfarb & Lipman One Montgomery Street Twenty-Third Floor San Francisco, California 94104 Attn: M David Kroot No fee for recording pursuant to Government Code Section 27383 REGULATORY AGREEMENT This Regulatory Agreement (the "Regulatory Agreement") is entered into as of the__day of , 1993, by and between the Redevelopment Agency of the City of Rancho Cucamonga, a public body, corporate and politic (the "Agency"), and , a California nonprofit public benefit corporation (the "Owner"), with reference to the following facts: A. The Owner desires to redevelop certain property owned by the Agency and more particularly described in the Exhibit A to the Disposition and Development Agreement (the "DDA") between the Parties (the "Property"). The Owner wishes to develop on the Property an approximately 88-unit multifamily rental housing development affordable to low and moderate income households (the "Development"). B. The Agency has agreed to provide financial assistance to the Owner for the acquisition and redevelopment of the Property. The parties have entered into a Loan Agreement, pursuant to which the Agency will loan the Owner Dollars ($ ) (the "Loan"), to be used to finance the acquisitio~devel0pment of the Property (the "Loan Agreement"}. C. As further consideration for the Loan and to further the interests of the Agency, the Owner has agreed to enter into and record this Requlatory Agreement. The purpose of this Regulatory Agreement is!to regulate and restrict the occupancy, rents, operation, ownership, and management of the Development. The covenants in this Requlatory Agreement are intended to run SSSO4D.PSO 11/18/93 --1- with the land and be binding on the Owner and its successors and assigns in the Property- NOW THEREFORE, IN CONSIDERATION of the mutual agreements, obligations, and representations, and in further consideration for the financing, the Owner and the Agency hereby agree as follows: ARTICLE I DEFINITIONS Section 1.1 The following terms have the meanings and content set forth in this section wherever used in this Regulatory Agreement. a. "Area Median Income" means the median income for the San Bernardino Agency Primary Statistical Area ("PSA"), with adjustments for household size, as determined from time to time by the United States Department of Housing and Urban Development ("HTJD") pursuant to the United States Housing Act of 1937 as amended, or such other method of median income calculation applicable to the Agency that HUDmay hereafter adopt in connection with said Act. Should HUD no longer publish a method of median income calculation as described above, then the median income calculation method for purposes of this Regulatory Agreement shall be that published by the State of California Department of Housing and Community Development ("HCD"). Should HCD no longer publish a method of median income calculation as described above, then the median income calculation method for purposes of this Regularcry Agreement shall be one devised by the Agency using the same or similar methodology as the HUD and HOD methods. b. "DDA" shall mean the Disposition and Development Agreement by and between the Parties with regard to the Development of the Property. c. "Deed of Trust" means the deed of trust, placed on the Property as security for the Loan with the Owner as trustor and the. Agency as beneficiary, as well as any amendments to, modifications of, and restatements of said deed of trust. d. "Development" means the development of approximately 88 units of multi-family housing on the Property according to the terms of the Loan Agreement and the Regularcry Agreement, along with any and all improvements and infrastructure necessary for the development, construction and maintenance of said housing. M..tO4D.PSO e. "Loan" is the loan of funds provided by the Agency to the Owner for the Development. f. "Loan Agreement" is the Loan Agreement executed by and between the Owner and the Agency, setting forth the terms and conditions governing the Loan. g. "Loan Documents" are collectively the Loan Agreement, the Note, the Deed of Trust, and this RegulatoryAgreement as they may be amended, modified, or restated from time to time, along with all exhibits attachments to these documents. h. "Low Income Household" means a household whose annual income does not exceed sixty percent (60%) of the median income for the San Bernardino Agency PeA as determined by HUD with adjustments for smaller and larger households. i. "Median Income Household" means a household whose annual income does not exceed ninety percent (90%) of the median income for the San Bernardino Agency PSA as determined by HUD with adjustments for smaller and larger households. j. "Note" means the promissory note executed by the Owner in favor of the Agency evidencing the Loan, which is secured by the Deed of Trust, as well as any amendments to, modifications of, or restatements of, said Note. k. "Owner" means , a California no.profit public benefit corporation. 1. "Parties" shall mean the parties to this Regulatory Agreement. m. "Property" means the realProperty described in Exhibit A to the DDA. n. "TCAC" shall mean the California Tax Credit Allocation Committee. o. "Unit" means a housing unit in the Development. ARTICLE 2 USE ANDOCCUPANCYRESTRICTIONS Section 2.1 Term of A~reement. This Regulatory Agreement shall commence upon execution and shall remain in full force and effect for fifty-five (55) years. SSS04D.PSO 11/18/93 '3-- Section 2.2 Use of Development. The Property shall be utilized to develop and operate an approximately SS-unit multifamily rental housing development affordable to low and moderate income households, along with any and all improvements and infrastructure necessary for the development, construction and maintenance of said housing. Section 2.3 Occupancy of Development. The Owner shall limit for the full term of this Regulatory Agreement the rental of forty percent (40%) of the Units to Low Income Households and sixty percent (60%) of the Units to Median Income Households at the maximum rental charges for each as set forth in this Regulatory Agreement. Units restricted by this Regulatory Agreement shall be of comparable quality with comparable amenities as unrestricted Units. The income levels and other qualifications of Low Income Household and Median Income Households applicants for Units shall be certified prior to initial occupancy and recertified yearly by the Owner. In the event that recertification of a Low Income Householdfs or Median Income Household*s income indicates that the income exceeds the maximum income designated for a Low Income Household, or a Median Income Household, as applicable, the Owner shall adjust rents as permitted by TCAC requirements. Section 2.4 Maximum Rental Charaes. The total charges for rent, utilities, and related services to a Low Income Household shall not exceed one-twelfth of thirty percent (30%) of fifty percent (50%) of Area Median Income, adjusted for household size. The total charqes for rent, utilities, and related services to a Median ~ncome Household shall not exceed one-twelfth of thirty percent (30%) of ninety percent (90%) of the Area Median Income, adjusted for household size. Initial rents for each Unit shall be set by the Owner at the time of initial occupancy of the Development. The occupancy of the Development shall be as follows= one (1) person for efficiency units, and two (2) persons per bedroom for each larger unit. The Owner shall annually make any rent adjustaent pursuant to the terms of this RequlatoryAgreement. At least sixty (60) calendar days prior to increasing rents on any Unit restricted by this Requlatory Agreement, the Owner shall submit to the Agency for its calculation of such increase. Households occupying Units restricted by this Requlatory Agreement shall be given at least thirty (30) days written notice prior to any rent increase. 11/1S/9~ '4-- Section 2.5 Leasina the Development. Before leasing any Unit, the Owner shall submit a form of its proposed lease to the Agency for review. The Owner shall include in leases for all Units provisions which provide that the household is subject to annual certification of income and that the tenancy of the household shall be terminated should one or more of the household~s members misrepresent any material fact regarding the household~s qualification as a Low Income Household or Median Income Household, as applicable. Section 2.6 Before leasing the Development, the Owner shall provide the Agency for its review the Owner~s written tenant selection plan. Section 2.7 Condominium Conversion. The Owner shall not convert Development Units to condominium or cooperative ownership or sell condominium or cooperative conversion rights to the Property during the term of this Regulator~ Agreement. ~ Section 2.8 Nondiscrimination. The Owner shall not discriminate or segregate in the use, enjoyment, occupancy, conveyance, lease, sublease, or rental of Development Units on the basis of race, color, ancestry, national origin, religion, sex, sexual preference, age, marital status, family status, source of income, physical or mental disability, Acquired Immune Deficiency Syndrome (AIDS) or AIDS-related conditions (ARC), or any other arbitrary basis. The Owner shall include a statement in all advertisements, notices and signs for the availability of Development Units for rent to the effect that the Owner is an Equal Housing Opportunity Provider. ARTICLE 3 PROPERTY MANAGEMENT Section 3.1 Xanaqe~ent Resnonsibilities. The Owner is responsible for all management functions with respect to the Development, including without limitation the selection of tenants, certification and recertification of household size and income, evictions, collection of rents and deposits, maintenance, landscaping, routine and extraordinary --5- repairs, replacement of capital items, and security. The Agency shall have no responsibility over management of the Development. Section 3.2 APProval Of Management Policies. The Owner' shall submit its written management policies with respect to the Development to the Agency, and shall amend such policies in any way necessar~ to insure that such policies comply with the provisions of this Regulatory Agreement and the requirements of all lenders providing financing for the Development. Section 3.3 Inspection and Records. The Owner shall maintain records which clearly document the Owner's performance of its obligations to operate the Property under the terms of this Requlatory Agreement. The Owner shall submit any records to the Agency within ten (10) business days of the Agency~s request. The Owner shall permit the Agency to enter and inspect the Development for compliance with obligations under this Regulatory Agreement upon twenty-four (24) hours advance notice of such visit by the Agency to the Owner or the Owner~s management agent and to tenants of any Development Units. Section 3.4 Annual Report. The Owner shall submit to the Agency (i) not later than the thirtieth (30th) day after the close of each calendar year, a report showing the necessary information to allow the Agency to determine the Ownerrs compliance with this Requlatory Agreement, and (ii) within fifteen (15) days after receipt of a written request, any other information or completed forms requested by the Agency in order to comply with repor~cing requirements of the United States Department of Housing and Urban Development, or the S~ate of California, or the Agency. Section 3.5 Fees. Taxes. and Other Levies. The Owner shall be responsible for payment of all fees, assessments, taxes, charges and levies imposed by any public authority or utility company with respect to the Property, and shall pay such charges prior to delinquency. -6- Section 3.6 Notice of ExPiration of Term. At least six months prior to the expiration of the Term the Owner shall provide by first-class mail, postage prepaid, a notice to all households in Units restricted' by this Regulatory Agreement containing (1) the anticipated date of the expiration of the Term, (2) any anticipated rent increase upon the expiration of the Term, (3) a statement that · copy of such notice will be sent to the Agency, end (4) a statement that a public hearing may beheld by the Agency on the issue and that households in Units restricted by this Regulatory Agreement will receive notice of the hearing at least fifteen (15) days in advance of any such hearing. The Owner shall also file a copy of the above-described notice with the Deputy Director - Redevelopment for the Agency. ARTICLE 4 MISCELLANEOUS PROVISIONS Section 4.1 Compliance with Loan Documents. The Ownerrs actions with respect to the Property shall at all times be in full conformity with all of the requirements of the Loan Documents. Failure to comply with the terms of the Loan Documents will constitute a Default, as defined in Section 4.2 of this Regulatory Agreement. Section 4.2 Default and Remedies. In the event of any breach of any agreement or obligation under this Requlatory Agreement, including, but limited to, any breach of any provision of the Loan Documents, by the Owner, the Agency shall provide written notice to the Owner of such breach. The Owner shall have an opportunity to cure such breach within thirty (30) days from the Ownerrs receipt of such written notice or such longer perto~ of time as the Agency determines is necessary to cure the breach if the Owner diligently undertakes to cure such breach. If the Owner fails to perform a timely cure of the specified breach, the Agency may proceed with any or all of the following remedies upon the Owner~s failure to cure: (1) Bring an action in equitable relief seeking the specific performance by the Owner of the terms and conditions of this Requlatory Agreement, and/or enJoining, abering, or preventing any violation of said terms and conditions, and/or seeking declaratory reliefs SSS04D.PS0 I 1/18/93 ' 7 -- (2) Enter upon, take possession of, and manage =he Property and the Development, either in person, by agent, or by a receiver appointed by a court, and collect any rents, income, deposits, or reserves end.apply them to operate the Property; (3) After notice provided for herein, make such repairs or replacements to the Property and Development as are necessary and provide for payment thereof; or (4)-. Pursue any other remedy provided under the Loan Agreement or allowed at law or in equity. ARTICLE 5 GENERAL PROVISIONS Section 5.1 · ~. Except where approval by the Agency Board is expressly described, all references in this Regulatory Agreement to Agency approval shall mean approval by the Agency Executive Director. Section 5.2 ~. This Requlatox7 Agreement cannot be waived, changed, discharged or terminated orally, and no alteration or variation of the terms of this Regulator~ Agreement shall be valid unless made in writing and signed by the Agency and the Owner. Section 5.3 ARR3~~- This Requlatory Agreement shall be governed by the laws of the State of California. Section 5.4 Bindina UPOn SuccessorS. This RequlatoryAgreement shall be binding upon and inure to the benefit of the heirs, administrators, executors, successors and assigns of each of the parties to this Requlatory Agreement except that there shall be no transfer of any interest by any of the parties to this Requlatory Agreement except pursuant to the terms of this Requlatory Agreement. Any reference in this Requlatory Agreement to a specifically named party shall be deemed to apply to any successor, heir, administrator, executor or assign of such party who has acquired an interest in SB$04D,PS0 11/18/93 '8-- compliance with the terms of this Regulatory Agreement, or under law. Section 5.5 Identity and Authority of Ow~r. The person executing this RegulatoryAgreement on behalf of the Owner covenants and warrants that the Owner is and shall remain in good standing and qualified to do business in the State of California; that the Owner has full right, power and authority to enter into this Regulatory Agreement and to carry out all actions on its part contemplated by this Regulatory Agreement; that the execution and delivery of this Regulatory Agreement were duly authorized by proper action of the Owner and no consent, authorization or approval of any person is necessary in connection with such execution and delivery or to carry out all actions on the Owneras part contemplated by this Regulatory Agreement, except as have been obtained and are in full force and effect; that the person executing this Regulatory Agreement on behalf of the Owner has full corporate authority to do so; and that this Regulatory Agreement constitutes the valid, binding and enforceable obligation of the Owner. Section 5.6 Identity and Authority of the Aaencv. The person executing this Agreement on behalf of the Agency covenants and warrants that the Agency is and shall remain in good standing and qualified to do business in the State of California; that the Agency has full right, power and authority to enter into this Agreement and to carry out all actions on its part contemplated by this Agreements that the execution and delivery of this Agreement were duly authorized by proper action of the Agency and no consent, authorization or approval of any person is necessary in connection with such execution and delivery or to carry out all actions on the Agencyes part contemplated by this Agreement, except as have been obtained and are in full force and effect; that the person executing this Agreement on behalf of the Agency has full corporate authority to do so; and that this Agreement constitutes the valid, binding and enforceable obligation of the Agency. Section 5.7 Leaal Actions: Attorneys Fees. All claims, disputes or other matters in question between the parties to this Agreement arising out of or relating to this Agreement, or breach of this Agreement, shall be subject to, and decided by, arbitration=in accordance with the Construction 58504D.PSO 11/18,~'g3 '9-- Industry Arbitration Rules of the American Arbitration Association currently in effect, unless the parties agree otherwise. Demand for arbitration shall be filed in writing with the other party to this Agreement and with the American Arbitration Association. A demand for arbitration shall be made within 15 days or shall be deemed to be waived. The award rendered by the arbitrator or arbitrators shall be final, and Judgment may be entered upon it in accordance with applicable law in any court having Jurisdiction. In any action or proceeding arising out of this Agreement, including, but not limited to, any arbitration arising out of or resulting from this Agreement, the successful party in such litigation shall be entitled to recover from the non-successful party all reasonable costs, attorneys fees, and other expenses associated with such litigation. Section 5.8 NO~Ges. Demands and Communications Formal notices, demands, and communications between the Agency and the Owner shall be sufficiently given if, and shall not be deemed given unless, dispatched by certified mail, postage prepaid, return receipt requested, or express delivery service with a delivery receipt, or personal delivery with a delivery receipt, to the office of the Agency and the Owner as follows= Agency: City of Rancho Cucamonga Redevelopment Agency 10500 Civic Center Drive Rancho Cucamonga, CA 91729 Owner: 10500 Civic Center Drive Rancho Cucamonga, CA 91729 Such written notices, demands and communications may be sent in the same-manner to such other addresses as the affected party may from time to time designate as provided in this Section. Receipt shall be deemed to have occurred on the date marked on a written receipt for delivery, refusal of delivery, or the date the notice was returned as undeliverable. SSS04DJwa0 11/*1~,"9'3 --10-- Section 5.9 No Claims Against the Agency by Third Parties. Nothing contained in this Regularcry Agreement shall create or Justify any claim against the Agency by any person that the Owner may have employed or with whom the Owner may have contracted relative to the purchase of materials, supplies or equipment, or the furnishing ~r the performance of any work or services with respect to the purchase or the operation of the Property, and the Owner shall include similar requirements in any contracts entered into for the operation of the Property. Section 5.10 NonlLiabilitv of Offici~. No member, official, employee or agent of the Owner, the Agency, or the City of Rancho Cucamonga shall be personally liable to either party to this Requlatory Agreement, or any of their successors or assigns, in the event of any default or breach by either party or for any amount which may become due to either party or their successors or assigns, or on any obligation under the terms of this Regularcry Agreement. Section 5.11 No Third Party Beneficiari~S. There shall be no third party beneficiaries to this RegulatoryAgreement. Section 5.12 Parties Not Co-Venturers. Nothing in this Requlatory Agreement is intended to or does establish the parties as partners, co-venturers, or principal and agent of one another. Section 5.13 Provisions Not Meraed with DeedS. None of the provisions of this Requlatory Agreement are intended to Or shall be merged by any grant deed transferring title to any real property which is the subject of this RequlatoryAgreament from theAgencytotheOwner or any successor in interest, and any such grant deed shall not be deemed to affect or impair the provisions and covenants of this Requlatory Agreement. SOS04D~S0 !1/la/93 -11- Section 5.14 Reaulatorv A~reement Controls. In the event that any provisions of this Regulatory Agreement and any Loan Document conflict, the terms of this Regulatory Agreement shall control. Section 5.15 Ke~Lt~_~h~. To the extent that any lender to, or equity investor in, the Development shall require any changes to this Requlatory Agreement or any of the Loan Documents, the Agency agrees to consent to such changes, and the parties shall cooperate to effect such changes within a reasonable time. Section 5.16 Riahts and Remedies Cumulative. Except as otherwise expressly stated in this Requlatory Agreement, the rights and remedies of the parties are cumulative, and the exercise or failure to exercise one or more of such rights or remedies by either party shall not preclude the exercise by it, at the same time or different times, of any right or remedy for the same default or any other default by the other party. Section 5.17 ~. If any term, provision, covenant or condition of this Requlator~ Agreement is held by a court of competent Jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall continue in full force and effect to the fullest extent possible unless the rights and obligations of the parties have been materially altered or abridged by such invalidation, voiding or unenforceability. Section 5.18 Title of Parts and Sections. Any titles of the parts, sections or subsections of this RegulatoryAgreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any part of its provision. ~D~0 11/18/93 -12- Section 5.19 Complete Understandina of the Part~e~. This Regulatory Agreement and constitutes the entire understanding and agreement of the parties, and may only be amended by a written agreement signed by both the Agency and the Owner, as set forth in Section 5.2 This Regulatory Agreement is executed in three (3) triplicate originals, each of which Is deemed to be an original, and may be executed simultaneously or in counterparts, each of which shall also be deemed to bean original, but all of which together shall constitute one and the same Regulatory Agreement. WHEREFORE, the Parties have executed this Regulatory Agreement in triplicate on or as of the date first written above. AGENCY: REDEVELOPMENT AGENCY OF THE CITY OF RANCHO CUCAMONGA By: Its: OWN ER: By: Its: c SSSO4D,PSO 11/IS/9'~ -13- EXHIBIT F= FORUM OF GRANT DE~.D RECORDING REQUESTED BY: THE REDEVELOPMENT AGENCY OF THE CITY OF RANCHO CUCAMONGA WHEN RECORDED MAIL TO: Goldfarb & Lipman One Montgomery Street Talesis Tower, 23rd Floor San Francisco, CA 94104 Attn: M David Kroot No fee for recording pursuant to Government Code Section 27383 For valuable consideration, the receipt of which is hereby acknowledged, THE REDEVELOPMENTAGENCY OFT HE CITY OF RANCHO CUCAMONGA, public body, corporate and politic, of ~he State of California (the "Grantor"), acting to carry out redevelopment purposes pursuant to the Community Redevelopment Law of the State of California, hereby grants to NORTHTOWN HOUSING DEVELOPMENT CORPOI~ATION (the "Grantee") the real property (the "Property") described in Exhibit A attached hereto and incorporated in this. Grant Deed by this reference. 1. The Property is conveyed subject to the Disposition and Development Agreement (the "DDA") entered into by and between the Grantor and the Grantee and dated , 199 . The Grantor and the Grantee have also executed a Loan Agreement, Note, Deed of Trust and Regularcry Agreement (collectively, with the DDA, the "Loan Documents"), all of which govern the ownership and use of the Property and the Development. 2. The Grantee hereby covenants and agrees, for itself and its successors and assigns, that the Grantee and such successors and assigns shall promptly begin and diligently prosecute to completion the redevelopment of the Property through the construction of the Development required to be constructed pursuant to the DDA (the "Development"), and that such construction shall be commenced and completed within the times provided in the DDA. 3. Fromptly after completion of the Developsent (as defined in the DDA) in accordance with the provisions of the DDA, the Grantor will furnish the Grantee with an appropriate instrument so certifying (a Certificate of Completion"). Such certificate of Completion shall be a conclusive determination that the covenants in the DDA with respect to the obligations of the Developer, its successors and assigns, to construct the Development and the dates for the beginning and completion of the Development have been met, and shall be in such form as will enable it to be recorded among the official records of San Bernardino County. 4. The Grantee hereby covenants and agrees, for itself and its successors and assigns, that during construction and thereafter, the Grantee shall devote the Property only to the uses specified in the Loan Documents. 5. The Grantee hereby covenants and agrees, for itself and its successors and assigns, that during construction and thereafter, the Grantee shall operate and maintain the Property and the Development in compliance with all requirements for operation and maintenance set forth in the Loan Documents. 6. TheGrantee covenants and agrees, for itself and its successors and assigns, that it shall not discriminate on the basis of race, color, ancestry, national origin, religion, sex, sexual preference, age, marital status, family status, source of income, physical or mental disability, Acquired Immune Deficiency Syndrome (AIDS) or AIDS-related conditions (ARC), or any other arbitrary basis, in the hiring, firing, promoting or demoting of any person engaged in the construction work and that there shall be no discrimination against, or segregation of, any person or group of persons on account of any of the above-listed factors in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall the Grantee itself permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the Property and the Development. All deeds, leases or contracts made relative to the Property or the Development shall contain or be subject to substantially the following non-discrimination clauses= ~Grantee herein covenants by and for itself, its successors and assigns that there shall be no discrimination against or segregation of a person or of a group of persons on account of race, color, creed, religion, age (except insofar as the property is used for housing for the elderly), sex, sexual orientation, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the property herein conveyed nor shall the grantee or any person claiming under or through the grantee establish or permit any such.practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the property herein conveyed. The foregoing covenant shall run with the land". b. IrELeases: 'The lessee herein covenantSby and for the lessee and lessee's heirs, personal representatives and assigns and all persons claiming under the lessee or through the lessee that this lease is made subject to the condition that there shall be no discrimination against or segregation of any person or of a group of persons on account of race, color, creed, religion, age, (except insolaf as the property is used for housing for the elderly), sex, sexual orientation, marital status, national origin or ancestry in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the land herein leased nor shall the lessee or any person claiming under or through the lessee establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants, or vendees in the land herein leased". 'There shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, age, (except insolaf as the property is used for the elderly),sex, sexual orientation, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the property nor shall the transferee or any person claiming under or through the transferee establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the land'. 7. The Grantee represents and agrees thattheProperty will be used for the purposes of timely redevelopment as set forth in the DDA and not for speculation in landholding. The Grantee further recognizes that in view of the following factors, the qualifications of the Grantee are of particular concern to the community and the Grantor: a. The importance of the redevelopment of the Property to the general welfare of the community~ and b. The land acquisition assistance and other public aids that have been made available by law and by the government for the purpose of making such redevelopment possible; and c. The reliance by the Grantor upon the unique qualifications and ability of the Grantee to serve as the catalyst for development of the Property and upon the continuing interest which the Grantee will have in the Property to assure the quality of the use, operation and maintenance deemed critical by the Grantor in the development of the Property; and d. The fact that a change in ownership or control of the owner of the Property, or of a substantial part thereof, or any other act.or transaction involving or resulting in a significant change in ownership or with respect to the identity] of the parties in control of the Grantee or the degree thereof is for practical purposes a transfer or disposition of the Property; and e. The fact that the Property is not to be acquired or used for speculation, but only for development and operation by the Grantee An accordance with the Loan Documents$ and f. The importance to the Grantor and the community of the standards of use, operation and maintenance of the Property. The Grantee further recognizes that it Is because of such qualifications and identity that the Grantor has entered into the DDA and has conveyed theProperty to the Grantee. For the reasons stated above, the Grantee covenants, for itself and its successors and assigns, that there shall be no sale, transfer, assignment, conveyance, lease, pledge or encumbrance cf the DDA, the Property, the Development or cf any other ownership interest in the Grantee, in violation of the Loan Documents. No voluntax7 or involuntaz7 successor in interest of the' Grantee shall acquire any rights or powers under this Grant Deed or the Loan Documents except as expressly set forth in this Grant Deed or the Loan Documents. 8. The covenants contained in Sections 2, 3, 4, and 5 regarding construction, use, operation and maintenance, and non- discrimination shall remain in effect in perpetuity, or for so long as maybe enforceable. The covenants against prohibited sales, transfers, assignments, conveyances, leases, pledges and encumbrances contained in Section 7 shall remain in effect for the period set forth in the DDA. 9. No violation or br~ach of the covenants, conditions, restrictions, provisions or limitations contained in this Grant Deed shall defeat or render invalid or in any way impair the lien or charge of any mortgage, deed of trust or other financing or security instrument permitted by the DDA~ provided, however, that any successor of Grantee to the Property shall be bound by such remaining covenants, conditions, restrictions, limitations and provisions, whether such successor's title was acquired by foreclosure, deed in lieu of foreclosure, trustee's sale or otherwise. 10. The covenants contained in Sections 2, 3, 4, 5 and 6 of this Grant Deed shall, without regard to technical classification or desi~nation, legal or otherwise specifically provided in this Grant Deed, be, to the fullest extent permitted by law and equity, binding for the benefit and in favor of and enforceable by the Grantor and its successors and assigns, the City of Rancho Cucamonga, and any successor in interest to the Property or any part thereof, and such covenants shall run in favor of the Grantor and such aforementioned parties for the entire period during which such covenants shall be in force and effect, without regard to whether the Grantor is or remains an owner of any land or interest therein to which such covenants relate. In the event of any breach of any of such covenants, the Grantor and such aforementioned parties shall have the right to exercise all of the rights and remedies, and to maintain any actions at law or suits in equity or other property proceedings to enforce the curing of such breach. The covenants contained in this Grant Deed shall be for the benefit of and shall be enforceable only by the Grantor, its successors and such aforementioned parties. ll. Subject to and in accordance with the procedures and provisions of Section 7.1 of the DDA, if the DDA is terminated pursuant tothe terms of the DDA prior to recordation of a certificate of Completion, the Grantor shall have the right, at its option, to reenter and take possession of the Property or the Development or such portion thereof, and revest in the Grantor the estate conveyed to the Grantee. Such right to reenter, repossess and revest shall be subordinate and subject to and be limited by and shall not defeat, render invalid or limit: a. Any mortgage, deed of trust or other security instrument permitted by the DDA~ and b. Any rights or interest provided in the DDA for the protection of the holder of such mortgages, deeds of trust or other security instruments. The Grantor shall have the right to institute such actions or proceedings as it may deem desirable for effectuating the purposes of this Section, including also the right to execute and record or file with the Recorder of the County of San Bernardino a written declaration of the termination of all rights and title of the Grantee, and its successors in interest and assigns, in the Property, and the revesting of title thereto in the Grantor. Any delay by the Grantor in instituting or prosecuting any such actions or proceedings or otherwise asserting its rights under this Section shall not operate as a waiver of such rights or to deprive it of or limit such rights in any way (it being the intent of this provision that Grantor should not be constrained so as to avoid the risk of being deprived of or limited to the exercise of the remedy provided in this Section because of concepts of waiver, laches, or others), nor shall any waiver in. fact made by the Grantor with respect to any specific default by the Grantee, its successors and assigns, be considered or treated as a waiver of the rights of the Grantor with respect to any other defaults by the Grantee, its successors and assigns, or with respect to the particular default except to the extent specifically waived. 12. Only the Grantor, its successors and assigns, and the Grantee and its successors and assigns in and to all cr any part of the fee title to the Property shall have the rights to consent and agree to changes or to eliminate in whole or in part any of the covenants contained in this Grant Deed or to subject the Property or the Development to additional covenants, easements, or other restrictions. For purposes of this Section, successors and assigns of the Grantee shall be defined to include only those parties who hold all or any part of the Property in fee title, and not to include a tenant, lessee, easement holder, licensee, mortgagee, trustee, beneficiary under deed of trust, or any other person or entity having an interest less than a fee in the Property° In the event there is a conflict between the provisions of this Grant Deed and the Loan Documents, it is the intent of the parties hereto and their successors in interest that the Loan Documents shall control. MARKET DATA SUMMARY RESIDENTIAL LAND VALUE INDICATORS: Data Date Zoning Land Size Corner Density Sale Price $ Per SF $ Per Unit A. 9-89 R3 656,014 sf no 1/2,733 sf $4,650,000. $ 7.09 $19,375. N/S D Street, 348.15' W/O Corona Street, Ontario B. 11-89 RM 51,836 sf yes 1/2,592 sf $ 372,000. $ 7.18 $18,600. SEC Fifth Avenue and Washington Boulevard, Upland C. 12-89 VPC 337,154 sf yes 1/2,719 sf $1,975,000. $ 5.86 $15,927. NWC Victoria Park Lane and Atwood Street, Rancho Cucamonga D. 12-89 SP 767,571 sf no 1/2,584 sf $6,979,000. $ 9.09 $23,498. E/S Turner Ave., 247.47' S/O Fourth Street, Ontario E. 2-90 R2 105,851 sf no 1/2,520 sf $ 940,000. $ 8.88 $22,381. S/S Sixth Street, opposite Holmes Court, Ontario F. 11-90 RC 104,108 sf no 1/2,539 sf $ 570,000. $ 5.48 $13,902. S/S San Bernardino Avenue, opposite Evergreen Lane, Bloomington G. 4-92 SP 599,952 sf yes 1/1,923 sf $4,100,000. $ 6.83 $13,141. SWC Fourth Street and Center Avenue, Ontario VALUATION ANALYSIS (Continued) MARKET DATA APPROACH: (Continued) Land Value: (Continued) will also increase, while the rate per unit will decrease. Conversely, as the density decreases (and the total number of units decrease) the rate per square foot of land will decrease, and the rate per unit will increase. Thus, while all of the sale properties employed in this study have a development density far greater than the subject property, the rate per square foot of land area applicable to the subject property will be at the lower portion of the indicated range, while the rate per unit applicable to the subject property will be at the upper portion of the range. By way of comparison, the subject land is zoned for low/medium density residential development. The site contains 8.56 acres, or 372,874 square feet of land area. A bonus density will permit a total of 88 units, or one unit per 4,237 square feet of land area. Based on an analysis of the various sale properties, and considering the financing involved in each transaction, plus considering the date of sale and land value pattern in the general area, the land value of the subject property is estimated at $4.50 per square foot of land area, and $18,500 per unit, as follows: 372,874 SF x $ 4.50 = $1,677,933. 88 units x $18,500 = $1,628,000. FINAL ESTIMATE OF VALUE: Based on the foregoing analysis, and assigning similar weight to the value indications above, the value of the subject site, as of the date of value set forth herein, is estimated at $1,650,000. 3-13 13. This Grant Deed may be executed and recorded in two or more counterparts, each of which shall be considered for all purposes a fully binding agreement between the parties. IN WITNESS THEREOF, the Parties have executed this Grant Deed as GNs, I4TEE: GRAR'OR: Northtown Housing Development Redevelopmerit Agency of the Corporation, a California City of Rancho Cucamonga, nonprofit public benefit a public body, corporate and corporation politic By: By: Its: Its: Signatures Must Be Acknowledged STATE OF CALIFORNIA ) ) SS COUNTY OF SAN BERNARDINO ) On' , 199_, before me, the undersigned, a Notary Public, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(lee), 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. WITNESS my hand and official seal. STATE OF CALIFORNIA ) )ss COUNTY OF SAN BEI~NARDINO ) On , 199_, before me, the undersigned, a Notary Public, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(lee), 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. WITNESS m~hand and official seal. MICHAEL J. FRIEDMAN VICE pRESIDENT Telecommun cations Management Corp. 5757 WILSHIRE BLVD. pHONE (213)931-2600 SUITE 635 LOS ANGELES, CA 90036 FAX (213)931~7355 CITY OF RANCHO CUCAMONGA MEMORANDUM DATE: danuary 19, 1994 T0: dack Lam, AICP, City ~anaOer r~ BY: SUBdECT: ~PPROVAL TO EXECUTE A~ AGREEME CO 94-006) FOR PAYMENT OF FEES FOR PARCEL ~AP 13724, LOCATED ON THE SOUTH SIDE OF FOOTHILl_ BOULEVARD, BE~EE~ I~TERST~TE 15 A~D ETI~ND~ AVENUE, SUBMITTED BY ~OOTMILL ~A~ETPLACE PARTMERS (ITEM D=9) Please remove subject item from the City Council Agenda of January 19, 1994. The required documentation has not been submitted at this time. RG:WJO:dl w Tkis Route 66 photo exhibitis brought to you by the Rancho Cucamonga Visitors Bureau:'s corps of Greeters. Greeters are united in their resolve that the growing number of visitors seeking a Route 66 holiday deserve a friendly welcome in Rancho Cucamonga, the gateway where California s most famous roads and trails converge. Additional ~tolnnto. ers are needed to give a bigger welcome tothe expanding Route 66 visitor -market. In serving as the rallying point for Route 66 tourism Greeters help Route 66 travelers fulfill their expectations in~Rancho Cucamonga, the Heart of Route 66 Territory: CENTRAL CALIFORNIA SANTA MONICA LONG BEACH ~reeters make-.Ranclao-~-ueamong~morelivableby. stafrmgthi~ interesting Route 66 Territory" Museum: Visitor Center & Gift Shop. As the indispensable welcoming team for Route 66 travelers Greeters ate assuring a growing Route 66 tourist trade, economic development and tourism jobs. Not a bad achievement for volunteers... We hope that you, or someone you know, will consider joining us as a Greeter, to increase our economic prosperity and quality of life. SOLU ION C2C/' C7/ F A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA ADOPTING AN OFFICIAL CITY SEAL AND CITY MOTYO WHEREAS, the City of Rancho Cucamonga was incorporated in 1977 and has since grown and developed into a community of residents, merchants and business people dedicated to creating the highest quality of life possible; and WHER'EAS, since its incorporation, the City has not had an official seal or motto to communicate to others the quality, the pride. the heritage and the bright future of our community; and WHEREAS, this City seal and motto have been created to represent the past, present and future of the community and to proclaim to everyone that Rancho Cucamonga is "A World Class Community"; and WHEREAS, it has been the people of Rancho Cucamonga, those that live here and those that work here, who have made Rancho Cucamonga the quality place that it is and therefore it is appropriate that the City motto reflect the importance of the community of people who have worked so hard to make the Rancho Cucamonga of today. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Rancho Cucamonga does hereby adopt an official City Seal as depicted in Exhibit A and also does hereby adopt the phrase "A World Class Community" as the official City Motto.