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Home My Public Portal AboutSept 21, 2021 CC Agenda Packet CITY COUNCIL CLOSED & REGULAR SESSION 550 E. 6th Street, Beaumont, CA Tuesday, September 21, 2021 Closed Session: 5:00 PM | Regular Meeting: 6:00 PM Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packets are available for public inspection in the City Clerk’s office at 550 E. 6th Street during normal business hours. AGENDA MEETING PARTICIPATION NOTICE This meeting will be conducted utilizing teleconference communications and will be recorded for live streaming as well as open to public attendance subject to social distancing and applicable health orders. All City of Beaumont public meetings will be available via live streaming and made available on the City's official YouTube webpage. Please use the following link during the meeting for live stream access. beaumontca.gov/livestream Public comments will be accepted using the following options. 1. Written comments will be accepted via email and will be read aloud during the corresponding item of the meeting. Public comments shall not exceed three (3) minutes unless otherwise authorized by City Council. Comments can be submitted anytime prior to the meeting as well as during the meeting up until the end of the corresponding item. Please submit your comments to: nicolew@beaumontca.gov 2. Phone-in comments will be accepted by joining a conference line prior to the corresponding item of the meeting. Public comments shall not exceed three (3) minutes unless otherwise authorized by City Council. Please use the following phone number to join the call (951) 922 - 4845. 3. In person comments subject to the adherence of the applicable health orders and social distancing requirements. In compliance with the American Disabilities Act, if you require special assistance to participate in this meeting, please contact the City Clerk's office using the above email or call (951) 572 - 3196. Notification 48 hours prior to a meeting will ensure the best reasonable accommodation arrangements. 1 CLOSED SESSION - 5:00 PM A Closed Session of the City Council / Beaumont Financing Authority / Beaumont Utility Authority / Beaumont Successor Agency (formerly RDA)/Beaumont Parking Authority / Beaumont Public Improvement Authority may be held in accordance with state law which may include, but is not limited to, the following types of items: personnel matters, labor negotiations, security matters, providing instructions to real property negotiators and conference with legal counsel regarding pending litigation. Any public comment on Closed Session items will be taken prior to the Closed Session. Any required announcements or discussion of Closed Session items or actions following the Closed Session with be made in the City Council Chambers. CALL TO ORDER Mayor Lara, Mayor Pro Tem White, Council Member Martinez, Council Member Fenn, Council Member Santos Public Comments Regarding Closed Session 1. Conference with Legal Counsel Regarding Potential Initiation of Litigation Pursuant to Government Code Section 54956.9(d)(4) (One potential case) 2. Conference with Labor Negotiators - Pursuant to Government Code Section 54957.6 City Designated Representatives City Manager Todd Parton and Administrative Services Director Kari Mendoza. Employee Organizations: Beaumont Police Officers Association and SEIU Adjourn to Regular Session REGULAR SESSION - 6:00 PM CALL TO ORDER Mayor Lara, Mayor Pro Tem White, Council Member Martinez, Council Member Fenn, Council Member Santos Report out from Closed Session Action on any Closed Session Items Action of any Requests for Excused Absence Pledge of Allegiance Invocation Adjustments to the Agenda Conflict of Interest Disclosure ANNOUNCEMENTS/ RECOGNITION / PROCLAMATIONS / CORRESPONDENCE 1. Recognition of Gilbert Krieter - 36 Years of Service with the City of Beaumont 2. Proclamation - Knights of Columbus, Pledge of Allegiance PUBLIC COMMENT PERIOD (ITEMS NOT ON THE AGENDA) Any one person may address the City Council on any matter not on this agenda. If you wish to speak, please fill out a “Public Comment Form” provided at the back table and give it to the City Clerk. There is a three (3) minute time limit on 2 public comments. There will be no sharing or passing of time to another person. State Law prohibits the City Council from discussing or taking actions brought up by your comments. CONSENT CALENDAR Items on the consent calendar are taken as one action item unless an item i s pulled for further discussion here or at the end of action items. Approval of all Ordinances and Resolutions to be read by title only. 3. Ratification of Warrants Recommended Action: Ratify Warrants dated: September 2, 2021 September 9, 2021 4. Second Reading of Ordinance Rescinding All Prior Approvals for the Legacy Highlands Specific Plan Project Recommended Action: Waive the full second reading and adopt by title only, “An Ordinance of the City Council of the City of Beaumont, California, Decertifying the Final Environmental Impact Report; Rescinding Adoption of Findings Statement of Overriding Considerations, Mitigation Monitoring and Reporting Program, Specific Plan No. 07-02, Pre-Zoning Ordinance No. 924, Development Agreement Ordinance No. 925, and Request for the Local Agency Formation Commission to Initiate Annexation Proceedings as to the Legacy Highlands Specific Plan, Site Plan, Land Division, Annexation, Pre-Zoning and Zoning.” 5. Third Amendment to the Contract with Lisa Wise Consulting for a One-Year Contract Extension for Continued Work on the Sixth Cycle Housing Element Update Recommended Action: Approve a one-year contract extension with Lisa Wise Consulting for ongoing work on the City’s Sixth Cycle Housing Element Update. 6. Notice of Termination to T-Mobile Regarding a Communication Site Lease Agreement dated May 13, 1996 Recommended Action: City staff recommends that the City Council direct the City Manager to provide written notice to T-Mobile of the City of Beaumont’s intention to terminate the Communication Site Lease Agreement dated May 13, 1996. 7. Density Bonus Agreement Between the City of Beaumont and LINC-Beaumont 2 LP Related to Plot Plan PP2019-0223 Recommended Action: Approve the Density Bonus Agreement between the City of Beaumont and LINC- Beaumont 2 Apts LP. 8. Ratification of Emergency Repair Costs to Four Seasons Lift Station Pump Recommended Action: 3 Ratify the cost of emergency repairs completed and paid to Evans Hydro in an amount not to exceed $36,820.89. 9. FY2022 General Fund and Wastewater Fund Budget to Actual through August 2021 Recommended Action: Receive and file the attached reports. PUBLIC HEARINGS Approval of all Ordinances and Resolutions to be read by title only. 10. Public Hearing and Consideration of Resolution Denying Certification of Final Partially Recirculated EIR for the Legacy Highlands Specific Plan Project Recommended Action: Open the public hearing, take public comment and continue the public hearing to the regular City Council meeting of November 2, 2021. 11. Public Hearing and Consideration of an Ordinance of the City Council of the City of Beaumont Amending Table 17.03-3 “Permitted Uses in Base Zone Districts”; Amending Table 17.19-1 “Permitted Uses for Downtown Base Zone Districts”; Amending Chapter 17.14.030 “Definitions” of The Beaumont Municipal Code and Adding Chapter 17.04.41 Performance Standards for Tire Stores and Tire Repair Facilities Recommended Action: Conduct a Public Hearing; and Waive the First Full Reading and Adopt by Title Only and Ordinance of the City Council of the City of Beaumont Amending Table 17.03 -3 “Permitted Uses in Base Zone Districts”; Amending Table 17.19-1 “Permitted Uses for Downtown Base Zone Districts”; Amending Chapter 17.14.030 “Definitions” of The Beaumont Municipal Code and Adding Chapter 17.04.41 Tires to the Beaumont Municipal Code. 12. Public Hearing and Consideration of (PLAN2021-0625) Partial Assignment and Assumption of a Development Agreement Related to the Development of a Portion of the Fairway Canyon Development (Assessor Parcel Numbers: 413-790-010 and a Portion of 413-790-042) Located in the Oak Valley and SCPGA Golf Course Specific Plan, North of San Timoteo Canyon Road, West of Tukwet Canyon Parkway Recommended Action: Conduct a public hearing, and Waive the first full reading and adopt by title only “An Ordinance of the City Council of the City of Beaumont adopting the Partial Assign ment and Assumption of Development Agreement between the City of Beaumont and Meritage Homes, LLC.” 13. Public Hearing and Consideration of a Resolution for the First Amendment to the Five- Year FY 22-26 Capital Improvement Plan Recommended Action: 4 Conduct a Public Hearing, and Waive the full reading and adopt by title only, “A Resolution of the City Council of the City of Beaumont Amending the Five-Year Capital Improvement Plan for Fiscal Years 2021/2022-2024-2026.” ACTION ITEMS Approval of all Ordinances and Resolutions to be read by title only. 14. FY2022 Mid-Year Budget Amendment No. 2 to the Capital Improvement Program, Wastewater and General Fund Recommended Action: Approve two new positions within the Wastewater Fund, Approve one new position split between the Wastewater Fund and General Fund, Approve the Capital Improvement Plan budget adjustments as outlined in Attachment A, and Approve Wastewater Operating and Capital budget adjustments as outlined in Attachment B. 15. CalPERS Pension Update Recommended Action: Discuss the pension liability and its impacts on the budget in future years, Discuss options to address the liability and projected escalation in pension costs, and If there is interest to further consider options to address pension costs, provide guidance to staff. 16. Approval of Invoice from Riverside County Fire Department for Fourth Quarter Fire Services Fiscal Year 2021 Recommended Action: Approve payment of the FY 2021 Fourth Quarter Fire Services invoice from Riverside County Fire Department in the amount of $838,766.59. 17. Review of Local Emergency Declaration Established via the Adoption of City of Beaumont Resolution No. 2020-07 Adopted on March 17, 2020 Recommended Action: City staff recommends waiting for the Governor Newsom’s official announcement on the status of the State’s emergency declaration before making any change regarding the local emergency declaration. This is to ensure that Beaumont remains eligible for federal and state emergency aid. 18. Approval of City Attorney Invoices for the Month of August 2021 Recommended Action: Approve invoices in the amount of $95,418.60. 5 LEGISLATIVE UPDATES AND DISCUSSION ECONOMIC DEVELOPMENT UPDATE Economic Development Committee Report Out and City Council Direction CITY TREASURER REPORT Finance and Audit Committee Report Out and City Council Direction CITY CLERK REPORT CITY ATTORNEY REPORT CITY MANAGER REPORT 19. Department Project Schedule Updates - August 2021 FUTURE AGENDA ITEMS COUNCIL REPORTS - Santos - Fenn - Martinez - White - Lara ADJOURNMENT The next regular meeting of the Beaumont City Council, Beaumont Financing Authority, the Beaumont Successor Agency (formerly RDA), the Beaumont Utility Authority, the Beaumont Parking Authority and the Beaumont Public Improvement Agency is scheduled for Tu esday, October 5 2021, at 5:00 p.m., unless otherwise posted. Beaumont City Hall – Online www.BeaumontCa.gov 6 Gilbert Krieter is retiring from the City of Beaumont after 36 years of public service. Hired on September 20, 1985, Gilbert was hired on as a temporary part-time Bus Driver. By December of the same year, Gilbert became a permanent employee when he was offered a permanent part-time Bus Driver position. After a couple of years as a part-time Bus Driver, Gilbert transferred departments and earned a new title. On May 20, 1987, Gilbert became the City’s full-time Animal Control Officer, where he spent a little over 8 years with Beaumont Police Department. On August 14, 1995, lay-offs occurred in the organization and Gilbert returned to the Transit Department where he was once again part of the City’s bus driving team until September 4, 1998. It was in 1998 when Gilbert earned another new title: Equipment Mechanic/Substitute Bus Driver. If the driving team experienced a shortage or needed coverage for any reason, Gilbert was pulled away from his mechanic work and filled the driving need. Gilbert served the city with these two roles until 2001. In 2001, Gilbert no longer needed to be a Substitute Bus Driver, and that part was dropped from his title. Gilbert has served our community as an Equipment Mechanic ever since. In his 36 years with the City of Beaumont, 5 years were spent as a Bus Driver, 8 years as Animal Control Officer, 23 years as an Equipment Mechanic. We wish Gilbert Krieter all the best in his next chapter as a retired community member and thank him for his 36 years of dedicated service to this organization and the residents of Beaumont. 7 Item 1. Proclamation Pledge of Allegiance WHEREAS, as early as 1951, the Knights of Columbus had urged the United States Government to add the term "One Nation under God" to the Pledge of Allegiance; and WHEREAS, Knights of Columbus was the founding Fraternal Organization that sponsored the statement "One Nation Under God" to be added to the Country's Pledge of Allegiance; and WHEREAS, in 1954 the United States Congress recognized the statement "One Nation Under God" be added to the United States of America Pledge of Allegiance and be presented to President Dwight David Eisenhower for approval; and WHEREAS, on Flag Day June 14, 1954 President Dwight David Eisenhower signed the approval for adding " One Nation Under God" to our Pledge of Allegiance; and WHEREAS, the United States of America and the City of Beaumont California recognizes this Pledge of Allegiance. NOW, THEREFORE BE IT RESOLVED, ON BEHALF OF THE CITY COUNCIL, DO HEREBY PROCLAIM THE PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA, AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD INDIVISIBLE WITH LIBERTY AND JUSTICE FOR ALL. ATTEST: ____________________________________ ___________________________________ Mayor City Clerk 8 Item 2. 9 Item 3. 10 Item 3. 11 Item 3. 12 Item 3. 13 Item 3. 14 Item 3. 15 Item 3. 16 Item 3. 17 Item 3. 18 Item 3. 19 Item 3. 20 Item 3. 21 Item 3. 22 Item 3. 23 Item 3. 24 Item 3. 25 Item 3. 26 Item 3. 27 Item 3. 28 Item 3. 29 Item 3. 30 Item 3. 31 Item 3. 32 Item 3. 33 Item 3. 34 Item 3. Staff Report TO: City Council FROM: Todd Parton, City Manager DATE September 21, 2021 SUBJECT: Second Reading of Ordinance Rescinding All Prior Approvals for the Legacy Highlands Specific Plan Project Background and Analysis: The following project entitlements related to the proposed Legacy Highlands Specific Plan Project (“Project”) were previously considered and approved by the City Council on January 15, 2008:  Resolution No. 2008-05 certifying the Final Environmental Impact Report (“EIR”) for the Project,  Resolution No. 2008-06 adopting Specific Plan No. 07-02,  Resolution No. 2008-07 requesting initiation of annexation proceedings,  Ordinance No. 924 adopting a zone change to pre-zone the Project area from County of Riverside W-2 (Controlled Development) to City of Beaumont SP-A (Specific Plan Area) and R-R (Rural Residential), and  Ordinance No. 925 adopting the Development Agreement between the City of Beaumont and The Preserve LLC. CEQA Lawsuit and Judgment: Following a final action by the City, a lawsuit was filed under the California Environmental Quality Act (“CEQA”) in February 2008, challenging the City’s actions. A hearing on the writ petition was conducted in February 2009. The Court found the EIR deficient with respect to water supply impacts and alternatives analysis. Further, the court held that the statement of Overriding Consideration did not comply with CEQA. The remaining challenges to the EIR were found to be without merit. A statement of decision, judgment and peremptory writ of mandate (“Writ”) were issued on March 30, 2009, that directed the City to set aside and vacate its certification of the final EIR for the Project. In addition, the court directed City set aside and vacate the land use approvals related to the Project. 35 Item 4. Bankruptcy Proceeding: The Preserve, LLC, the Project’s applicant, filed a Chapter 11 bankruptcy case in the United States Bankruptcy Court, Central District of California during the CEQA litigation, which was subsequently converted to one under Chapter 7. In December 2008, the United States Bankruptcy Court entered an order granting relief from the automatic stay to permit the CEQA action to proceed. Enacting Resolution No. 2009-24: On June 30, 2009, the City complied with the judgment and the Writ by enacting Resolution No. 2009-24, which rescinded all prior approvals for the Project. Specifically, the City Council set aside and vacated its (a) adoption of Resolution No. 2008-05; and (b) approvals of the Legacy Highlands Project, including the Legacy Highlands Specific Plan and the development agreement. Stipulation Voiding Resolution No. 2009-24: In the fall of 2017, The Preserve, LLC, asserted that the City violated the automatic stay of the bankruptcy court by enacting Resolution 2009-24. The City disputed such assertion. Nevertheless, out of an abundance of caution, the parties stipulated that Resolution 2009-24 was enacted in violation of the automatic stay and thus was void, withdrawn and cancelled. In December 2017, the stipulation was approved by the United States Bankruptcy Court. Partially Recirculated Environmental Impact Report: The purchaser of the Project has prepared a Partially Recirculated Environmental Impact Report (“PREIR”) based on the CEQA judgment. The PREIR was circulated for a 45-day review period: December 14, 2020, through January 28, 2021. A final PREIR was prepared and submitted to the City on February 3, 2021, and was ready for review and approval or disapproval by the City. However, in light of the stipulation, the City could not take any action related to the final PREIR until the automatic stay was lifted. To do otherwise would not only be in direct violation of the stipulation, but also in violation of the judgment and the Writ. The purchaser of the Project disagreed with the City’s position that it needed to comply with the judgment and writ in the CEQA action. Motion for Relief from the Automatic Bankruptcy Stay: On May 21, 2021, the City filed a Notice of Motion and Motion for Relief from the Automatic S tay under 11 U.S.C. § 362 in the United States Bankruptcy Court. After reviewing the pleadings submitted by the parties, and after conducting a hearing, the United States Bankruptcy Court granted the City’s motion for relief from automatic stay on June 29, 2021. The Court ordered, among other things, that the City may comply with the Statement of Decision, the judgment and the Writ in the Riverside County Superior Court CEQA action, and review and act upon the currently proposed final PREIR. 36 Item 4. PROJECT CASE HISTORY: Project Location: The Project site is located southerly of SR-60 and westerly of SR-79 in unincorporated Riverside County, adjacent to the boundary of the City of Beaumont. The Project site lies within the City of Beaumont Sphere of Influence (SOI) and would be annexed to the City as one of the Project’s requested discretionary actions. Project Summary: The Project would provide for a total of up to 2,868 dwelling units (1,107 single family residential units + 1,761 active adult, low density residential units), 100 acres (approximately 1.20 million square feet) of commercial/industrial uses, a 20- acre school site, various neighborhood parks, undeveloped open space, and all supporting infrastructure and utilities. In addition to approval of the specific plan, the Project required approval by the City Council of a zone change to pre -zone 1,616.89 acres of land from County of Riverside W -2 (Controlled Development) to City of Beaumont SP-A (Specific Plan Area) and R-R (Rural Residential). The Project also required the City Council to request the Local Agency Formation Commission of Riverside County to initiate proceedings for the annexation of the Project area to the City of Beaumont and concurrent detachment from the Riverside County Waste Management Resources District, and annexation to the Beaumont Cherry Valley Water District. The Project applicant also requested approval of a 25-year development agreement between the City of Beaumont and The Preserve, LLC, which would have given The Preserve, LLC, a vested right to develop and construct the Project in accordance with the entitlements received from the City pursuant to its discretionary approvals as well as all existing land use regulations and development standards in existence at the time the development agreement was approved. CITY ACTIONS TO COMPLY WITH COURT ORDER: As noted above, on March 30, 2009, the court issued a Writ and judgment directing the City to set aside and vacate its adoption of Resolution No. 2008 -05 certifying the final Environmental Impact Report for the Project, adopting findings of facts and a statement of overriding considerations, and adopting the mitigation monitoring program pursuant to CEQA. The writ/judgment also directed the City to set aside and vacate its approvals of the Project, including the Legacy Highlands Specific Plan, and its adoption of Resolution No. 2008-06, Resolution No. 2008-07, Ordinance No. 924, and Ordinance No. 925. The City has been unable to comply with the judgment and Writ in the Superior Court CEQA action because of the automatic stay imposed by the United States Bankruptcy Court. However, as set forth above, the automatic stay has now been lifted by the 37 Item 4. Bankruptcy Court. Therefore, the City must comply with the statement of decision, the judgment and the Writ in the Riverside County Superior Court CEQA action. Once everything has been vacated, the next step will be to review and act upon the currently proposed final PREIR. The action called upon City Council in order to comply with the judgment and peremptory Writ of mandate issued on March 30, 2009, by the Superior Court, will be to ordain the following rescission of prior approvals: • Resolution No. 2008-05 certifying the Final Environmental Impact Report for the Project, • Resolution No. 2008-06 adopting Specific Plan No. 07-02, • Resolution No. 2008-07 requesting initiation of annexation proceedings, • Ordinance No. 924 adopting a zone change to pre-zone the Project area from County of Riverside W-2 (Controlled Development) to City of Beaumont SP-A (Specific Plan Area) and R-R (Rural Residential), and • Ordinance No. 925 adopting the Development Agreement between the City of Beaumont and The Preserve LLC. Fiscal Impact: City staff estimates the cost to prepare this report to be $2,925. Recommended Action: Waive the full second reading and adopt by title only, “An Ordinance of the City Council of the City of Beaumont, California, Decertifying the Final Environmental Impact Report; Rescinding Adoption of Findings Statement of Overriding Considerations, Mitigation Monitoring and Reporting Program, Specific Plan No. 07-02, Pre-Zoning Ordinance No. 924, Development Agreement Ordinance No. 925, and Request for the Local Agency Formation Commission to Initiate Annexation Proceedings as to the Legacy Highlands Specific Plan, Site Plan, Land Division, Annexation, Pre-Zoning and Zoning.” Attachments: A. Ordinance 38 Item 4. ORDINANCE NO. ___________ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BEAUMONT, CALIFORNIA, DECERTIFYING THE FINAL ENVIRONMENTAL IMPACT REPORT; RESCINDING ADOPTION OF FINDINGS, STATEMENT OF OVERRIDING CONSIDERATIONS, MITIGATION MONITORING AND REPORTING PROGRAM, SPECIFIC PLAN NO. 07-02, PRE-ZONING ORDINANCE NO. 924, DEVELOPMENT AGREEMENT ORDINANCE NO. 925, AND REQUEST FOR THE LOCAL AGENCY FORMATION COMMISSION TO INITIATE ANNEXATION PROCEEDINGS AS TO THE LEGACY HIGHLANDS SPECIFIC PLAN, SITE PLAN, LAND DIVISION, ANNEXATION, PRE-ZONING AND ZONING WHEREAS, The Preserve LLC applied for the approval of the Legacy Highlands Specific Plan for property located south of State Route 60 and west of State Route 79, within the City of Beaumont's sphere of influence, for the development of approximately 1,600 acres, including more than 700 acres of undeveloped open space, up to 2,868 residential units, 100 acres of commercial development, and supporting school, park, and recreation uses (the "Project"); and WHEREAS, in addition to approval of the specific plan, the Project required approval by the City Council of a zone change to pre-zone 1,616.89 acres of land from County of Riverside W-2 (Controlled Development) to City of Beaumont SP-A (Specific Plan Area) and R-R (Rural Residential). The Project also required the City Council to request the Local Agency Formation Commission of Riverside County to initiate proceedings for the annexation of the Project area to the City of Beaumont and concurrent detachment from the Riverside County Waste Management Resources District, and annexation to the Beaumont Cherry Valley Water District. The Project applicant also requested approval of a 25 year Development Agreement between the City of Beaumont and The Preserve LLC which would have given The Preserve LLC a vested right to develop and construct the Project in accordance with the entitlements received from the City pursuant to its discretionary approvals as well as all existing land use regulations and development standards in existence at the time the Development Agreement was approved. WHEREAS, the City of Beaumont conducted an extensive environmental review for this Project which included an Environmental Impact Report ("EIR") prepared by the independent firm of Applied Planning, Inc., with technical reports concerning biological resources, traffic and circulation, air quality, and noise. The following is a summary of the City's environmental review for this Project: 1. The City issued a Notice of Preparation ("NOP") of a Draft EIR (“DEIR”) and associated Initial Study on March 28, 2005. The NOP and Initial Study 39 Item 4. 2 were circulated for public review and comment until April 26, 2005. A total of seven comment letters were received from state, regional and local agencies. Responses to comments on the NOP are included in Appendix A of the DEIR. Relevant comments received in response to the NOP were incorporated into the DEIR. 2. A Notice of Completion ("NOC") was sent with the DEIR to the State Clearinghouse on or around May 2, 2007. The City of Beaumont also provided a NOC and Availability to all organizations and individuals who had previously requested such notice, and published the NOC in The Weekly Record Gazette on April 27, 2007. 3. The DEIR was distributed for public review on May 2, 2007 for a 45-day review period with the comment period expiring on June 16, 2007. The City received 15 written comments on the DEIR at the close of the public review period. The Final Environmental Impact Report ("FEIR") includes responses to comments received through September 4, 2007, well past the public review period. 4. The Planning Commission held a duly noticed and advertised public hearing on November 13, 2007 to consider the FEIR, the specific plan, annexation, pre-zone, and the development agreement. The public hearing was closed, and the matter was continued to December 11, 2007 for further consideration and action; however, the Planning Commission was unable to take action on the matter due to a lack of a quorum of eligible Planning Commission members to vote on the matter. Accordingly, the matter was forwarded to City Council without a recommendation from the Planning Commission. 5. On January 15, 2008, the City Council held a duly noticed and advertised hearing on the matter. At the close of the public hearing, the City Council took the following actions: a. Approved Resolution No. 2008-05 certifying the Final Environmental Impact Report for the Project; b. Approved Resolution No. 2008-06 adopting Specific Plan No. 07- 02; c. Approved Resolution No. 2008-07 requesting initiation of annexation proceedings; d. Approved Ordinance No. 924 adopting a zone change to pre-zone the Project area from County of Riverside W-2 (Controlled 40 Item 4. 3 Development) to City of Beaumont SP-A (Specific Plan Area) and R-R (Rural Residential); and e. Approved Ordinance No. 925 adopting the Development Agreement between the City of Beaumont and The Preserve LLC. 6. On or about February 14, 2008, Cherry Valley Pass Acres and Neighbors ("CVPAN'') and Cherry Valley Environmental Planning Group ("CVEPG") filed a petition for a writ of mandate and complaint for declaratory relief in an action entitled Cherry Valley Pass Acres and Neighbors v. City of Beaumont, et al., Case No. RIC492830 in the Riverside County Superior Court based, in part, on the following alleged violations of the California Environmental Quality Act ("CEQA"): a. Failure to adequately analyze the Project's water impacts; b. Failure to properly analyze cumulative impacts; c. Failure to properly analyze growth inducing effects; d. Failure to properly analyze Project alternatives; and e. Failure to adopt an adequate statement of Overriding Considerations. 7. The Preserve LLC filed a chapter 11 bankruptcy case in the United States Bankruptcy Court, Central District of California (Case No. 2:10-bk-18429- BB) on September 25, 2008, which was subsequently converted to one under chapter 7. On December 16, 2008, United States Bankruptcy Judge Sheri Bluebond entered an order granting relief from the automatic stay to permit the CEQA action to proceed. 8. After reviewing the pleadings submitted by the parties, and after conducting a trial on the petition and complaint filed by CVPAN and CVEPG, Judge Mac Fisher of the Riverside County Superior Court issued a Statement of Decision on February 3, 2009, finding the EIR deficient with respect to water supply impacts and alternatives analysis. Further, the Court held that the statement of Overriding Consideration did not comply with CEQA. The remaining challenges to the EIR were found to be without merit. 9. In accordance with the Statement of Decision, on March 30, 2009, Judge Fisher issued a judgment and writ of mandate directing the City to set aside and vacate its certification of the FEIR for the Project. In addition, the court directed to City to set aside and vacate the land use approvals related to the Project. 10. On June 30, 2009, the City of Beaumont complied with the Judgment and the Writ by enacting Resolution No. 2009-24, which rescinded all prior 41 Item 4. 4 approvals for the Project. Specifically, the City Council set aside and vacated its (a) adoption of Resolution No. 2008-05; and (b) approvals of the Legacy Highlands Project, including the Legacy Highlands Specific Plan and the Development Agreement. 11. In the fall of 2017, The Preserve LLC asserted that the City of Beaumont violated the automatic stay by enacting Resolution No. 2009-24. The City disputed such assertion. Nevertheless, out of an abundance of caution, the parties stipulated that Resolution No. 2009-24 was enacted in violation of the automatic stay and thus was void, withdrawn and cancelled. On December 20, 2017, the Stipulation was approved by the United States Bankruptcy Court. 12. The purchaser of the Project has prepared a Partially Recirculated Environmental Impact Report (“PREIR”) based on the Statement of Decision. The PREIR was circulated for a 45-day review period: December 14, 2020 through January 28, 2021. A Final PREIR was prepared and submitted to the City on February 3, 2021 and was ready for review and approval or disapproval by the City. However, in light of the 2017 Stipulation, the City could not take any action related to the Final PREIR until the automatic stay was lifted. To do otherwise would not only be in direct violation of the Stipulation, but also in violation of the Judgment and the Writ. The purchaser of the Project disagreed with the City’s position that it needed to comply with the Judgment and Writ in the CEQA action. 13. On May 21, 2021, the City of Beaumont filed a Notice of Motion and Motion for Relief from the Automatic Stay under 11 U.S.C. § 362 in the United States Bankruptcy Court. After reviewing the pleadings submitted by the parties, and after conducting a hearing, Judge Bluebond of the United States Bankruptcy Court granted the City’s motion for relief from automatic stay on June 29, 2021. The Court ordered, among other things, that: a. The City may take the PREIR Actions1 as required or permitted by local and state law including, but not limited to complying with the Statement of Decision, the Judgment and the Writ in the Riverside County Superior Court CEQA action, and reviewing and acting upon the currently proposed Final PREIR; and 1 The PREIR Actions is defined in the United States Bankruptcy Order to include, but are not limited to, reviewing and acting upon the Final PRIER, complying with the judgment and the writ in the Riverside County Superior Court, the related entitlements, th e Legacy Highlands development agreement, specific plan, site plan, land division, annexation, pre-zoning and zoning, mitigation monitoring and reporting program, Findings of Facts and a Statement of Overriding Considerations, Resolution No. 2008-05, Resolution No. 2008-06, Resolution No. 2008-07, Ordinance No. 924 and Ordinance No. 925. 42 Item 4. 5 b. The City Council and the Planning Commission shall retain any and all discretion and authority under CEQA, other state law as well as local law with regards to the PREIR Actions. THEREFORE, THE CITY COUNCIL OF THE CITY OF BEAUMONT DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1: Rescission of Prior Approvals 1. The City Council hereby sets aside and vacates its adoption of Resolution No. 2008-05 certifying the Final Environmental Impact Report for the Legacy Highlands Specific Plan, adopting Findings of Facts and a Statement of Overriding Considerations, and adopting the Mitigation Monitoring Program pursuant to the California Environmental Quality Act ("CEQA"); and 2. The City Council hereby sets aside and vacates its approvals of the Legacy Highlands Project, including the Legacy Highlands Specific Plan, and its adoption of Resolution No. 2008-06, Resolution No. 2008-07, Ordinance No. 924, and Ordinance No. 925. SECTION 2: Effective Date This ordinance shall take effect immediately upon its adoption. INTRODUCED AND READ for the first time and ordered posted at a regular meeting of the City Council of the City of Beaumont, California, held on the 17th day of August, 2021, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Remainder of page intentionally left blank. 43 Item 4. 6 PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Beaumont, California, held on the 7th day of September, 2021. AYES: NOES: ABSENT: ABSTAIN: ______________________________ Lloyd White, Mayor Pro Tem Attest: ______________________________ Steven Mehlman, City Clerk Approved as to form: ______________________________ John Pinkney, City Attorney 44 Item 4. Staff Report TO: City Council FROM: Christina Taylor, Community Development Director DATE September 21, 2021 SUBJECT: Third Amendment to the Contract with Lisa Wise Consulting for a One-Year Contract Extension for Continued Work on the Sixth Cycle Housing Element Update Background and Analysis: On October 20, 2020, the City Council awarded a contract to Lisa Wise Consulting (LWC) for work on the City’s Sixth Cycle Housing Element Update. The contract was initially approved for one year and is set to expire October 20, 2021. Work on the Housing Element Update will be ongoing through the end of 2021. The scope of work for LWC also includes preparation of an accessory dwelling unit ordinance and objective design standards. Preparation and presentation of these items will continue beyond adoption of the housing element. There is no monetary change requested as part of this contract amendment. City staff is requesting City Council extend the contract for one additional year which will allow ample time to complete all work included in the contract scope. Fiscal Impact: This contract amendment provides solely for a one-year extension to the contract term. There are no changes to the fees or other costs associated with the contractor. City staff estimates it cost approximately $175 to prepare this report. Recommended Action: Approve a one-year contract extension with Lisa Wise Consulting for ongoing work on the City’s Sixth Cycle Housing Element Update. Attachments: A. Contract Amendment 45 Item 5. THIRD AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT BETWEEN CITY OF BEAUMONT AND LISA WISE CONSULTING, INC., FOR PROFESSIONAL PLANNING SERVICES FOR THE CITY OF BEAUMONT HOUSING ELEMENT UPDATE THIS THIRD AMENDMENT TO AGREEMENT FOR PROFESSIONAL SERVICES BY INDEPENDENT CONTRACTOR is made and effective as of the 21st day of SEPTEMBER 2021, by and between the CITY OF BEAUMONT, a general law city, (“CITY”) whose address is 550 E. 6th Street, Beaumont, California 92223 and LISA WISE CONSULTING, INCORPORATED, a California corporation whose address is 983 Osos Street, San Luis Obispo, CA 93401 (“CONTRACTOR”) in consideration of the mutual promises and purpose contained herein, the parties agree as follow: : RECITALS This Third Amendment is made with respect to the following facts and purpose that the parties agree are true and correct: A. On October 20, 2020 the CITY and CONTRACTOR entered into that certain agreement entitled “Agreement of Services by Independent Contractor” (“Agreement”). C. Term of Agreement states “…this agreement shall automatically terminate after one (1) year unless extended by the parties with the approval of the City Council of the CITY.” AMENDMENT Section 1 of the Agreement is hereby amended to extend the ‘Term of Agreement’ for an additional one-year term, effective October 21, 2021, as allowed in Beaumont Municipal Code 3.01.040. The recitals to this Amendment are deemed incorporated herein by this reference. All other terms of the Agreement not expressly amended by this Amendment shall remain in full force and effect. In the event of a conflict between the Agreement and this Amendment, this Amendment shall control. [Signatures on following page] 46 Item 5. SIGNATURE PAGE TO CITY OF BEAUMONT THIRD AMENDMENT CITY: CITY OF BEAUMONT By: _ Mike Lara, Mayor CONTRACTOR: LISA WISE CONSULTING By: _ Print Name: Title: ATTEST: By:_ City Clerk APPROVED AS TO FORM: By: _ John O. Pinkney, City Attorney 47 Item 5. Staff Report TO: City Council FROM: Todd Parton, City Manager DATE September 21, 2021 SUBJECT: Notice of Termination to T-Mobile Regarding a Communication Site Lease Agreement dated May 13, 1996 Background and Analysis: In 1996, Pacific Bell Mobile Services entered into a Communications Site Lease Agreement with the City of Beaumont to place mobile communications equipment on the roof of City Hall, 550 East Sixth Street. The original term of the lease was five (5) years with three automatic renewals of five (5) years at the sole discretion of Pacific Bell Mobile Services or their assigns/successors. Since its original effective date this lease has been transferred to T-Mobile which did not require consideration or approval by the City. A copy of the lease is included as Attachment A to this report. This lease has been automatically extended since June 30, 1996. The most recent automatic extension occurred July 1, 2018, and expires on June 30, 2023. After the first fifteen (15) years, the City of Beaumont may terminate the lease by providing written notice at least one hundred and eighty (180) days prior to the expiration date. Should the City of Beaumont opt to terminate this lease it must provide written notice by January 1, 2023. Due to the age of the lease, there are many provisions that need to be reevaluated and many updates that need to be included. These issues range from the authorities granted by right to the lessee to the value of the monthly rental payment paid to the City. The original contract established a monthly rental rate of $1,250 which has been increased annually by three percent (3%). The current monthly rental rate is now calculated to be approximately $2,395. Fiscal Impact: City staff estimates that it cost approximately $390 to prepare this report. 48 Item 6. Recommended Action: City staff recommends that the City Council direct the City Manager to provide written notice to T-Mobile of the City of Beaumont’s intention to terminate the Communication Site Lease Agreement dated May 13, 1996. Attachments: A. Communications Site Lease Agreement dated May 13, 1996 49 Item 6. 50 Item 6. 51 Item 6. 52 Item 6. 53 Item 6. 54 Item 6. 55 Item 6. 56 Item 6. 57 Item 6. 58 Item 6. 59 Item 6. 60 Item 6. 61 Item 6. Staff Report TO: City Council FROM: Christina Taylor, Community Development Director DATE September 21, 2021 SUBJECT: Density Bonus Agreement Between the City of Beaumont and LINC- Beaumont 2 LP Related to Plot Plan PP2019-0223 Background and Analysis: Beaumont Municipal Code Chapter 17.10 Affordable Housing Incentives/Density Bonus Provisions provides incentives for the production of housing for low income households. At its meeting on October 8, 2019, the City of Beaumont Planning Commission approved a proposed 48-unit affordable housing rental complex on a 1.48 acre parcel located on the east side of Allegheny Avenue north of Sixth Street. The project includes 24 two-bedroom units, 23 one-bedroom units and one (1) three-bedroom managers unit constructed in two (2) buildings. The project provides a 1,752 square foot community room with laundry facilities and 9,700 square feet of private and common open space. The site also provides 28 parking spaces. The project utilized a 35% density bonus in accordance with CA Government Code Sec. 65915 in order to achieve the planned forty-eight (48) units. The overall density of the project is 32.4 units per acre. All units, except the managers unit, will be restricted by the tax credit and bond regulatory agreements and rented to low-income families. A minimum of eight (8) units are required to be income restricted to “eligible households” meaning a household whose income does not exceed the qualifying limit for “lower income households” pursuant to Health and Safety Code Section 50079.5 . Beaumont Municipal Code Chapter 17.10 requires a Density Bonus Housing Agreement to ensure that the requirements for the Municipal Code and State density bonus law are satisfied. Planning Commission recommended City Council approve the proposed agreement. The Density Bonus Agreement is attached as Attachment A. 62 Item 7. Fiscal Impact: The cost to prepare this staff report and agreement is approximately $500. Recommended Action: Approve the Density Bonus Agreement between the City of Beaumont and LINC- Beaumont 2 Apts LP. Attachments: A. Density Bonus Agreement B. Site Project Plan 63 Item 7. RECORDED AT THE REQUEST OF AND WHEN RECORDED RETURN TO: City of Beaumont 550 East Sixth Street Beaumont, CA 92223 Attn: Community Development Director (Space Above For Recorder’s Use) This Density Bonus Housing Agreement is recorded at the request and for the benefit of the City of Beaumont and is exempt from the payment of a recording fee pursuant to Government Code Sections 6103 and 27383. DENSITY BONUS HOUSING AGREEMENT BY AND BETWEEN (i) THE CITY OF BEAUMONT, A California Municipal Corporation and (ii) LINC-BEAUMONT 2 APTS LP, A CALIFORNIA LIMITED PARTNERSHIP 64 Item 7. i TABLE OF CONTENTS Page 1. DEFINITIONS AND EXHIBITS ......................................................................................... 3 1.1 Definitions ................................................................................................................. 3 1.2 Exhibits ...................................................................................................................... 5 2. DEVELOPMENT OF THE PROPERTY ............................................................................. 5 2.1 Project ...................................................................................................................... 5 2.2 Total Number of Units .............................................................................................. 6 2.3 Unrestricted Units ..................................................................................................... 6 2.4 Affordable Units ........................................................................................................ 6 2.5 Minimum Development Standards For Affordable Units . ...................................... 6 2.6 Permits and Processing; Compliance with Laws ....................................................... 6 2.7 Relocation Prior to Development of Project .............................................................. 6 2.8 Mechanic’s Liens; Indemnification ........................................................................... 7 3. AFFORDABILITY ............................................................................................................... 7 3.1 Total Affordability Term ........................................................................................... 7 3.2 Memorializing Commencement of Total Affordability Term ................................... 7 4. OWNERSHIP AND OPERATION OF THE PROJECT BY OWNER. .............................. 8 4.1 Recording of Documents .......................................................................................... 8 4.2 Rental of Units ........................................................................................................... 8 4.3 Income Verification .................................................................................................. 8 4.4 Location of Affordable Units ................................................................................... 8 4.5 Termination and Release from Regulatory Agreement ............................................. 8 5. [INTENTIONALLY RESERVED] ...................................................................................... 9 6. TERM OF THIS AGREEMENT .......................................................................................... 9 6.1 Term ............................................................................................................................... 9 7. DEFAULT AND TERMINATION; INDEMNIFICATION ................................................ 9 7.1 Default ....................................................................................................................... 9 7.2 Rights and Remedies Cumulative .............................................................................. 9 7.3 Indemnification ............................................................................................................. 9 8. ASSIGNMENT; COVENANTS RUN WITH THE LAND ................................................. 9 8.1 Assignment By Developer ......................................................................................... 9 8.2 Covenants Run with the Land ................................................................................. 10 9. MISCELLANEOUS ........................................................................................................... 11 9.1 Notices .................................................................................................................... 11 9.2 Entire Agreement ..................................................................................................... 12 9.3 Severability .............................................................................................................. 12 9.4 Interpretation and Governing Law .......................................................................... 13 9.5 Section Headings .................................................................................................... 13 9.6 Singular and Plural .................................................................................................. 13 9.7 Joint and Several Obligations .................................................................................. 13 9.8 Time of Essence ...................................................................................................... 13 9.9 Computation of Days .............................................................................................. .13 9.10 Waiver ........................................................................................................................ 13 9.11 Third Party Beneficiaries ......................................................................................... 13 65 Item 7. ii Page 9.12 Force Majeure .......................................................................................................... 13 9.13 Mutual Covenants .................................................................................................14 9.14 Successors in Interest ............................................................................................14 9.15 Counterparts ..........................................................................................................14 9.16 Jurisdiction and Venue ..........................................................................................14 9.17 Project as a Private Undertaking ...........................................................................14 9.18 Further Actions and Instruments ...........................................................................14 9.19 Estoppel Certificate ...............................................................................................15 9.20 No Subordination ..................................................................................................15 9.21 Attorneys’ Fees and Costs .....................................................................................15 9.22 Authority to Execute .............................................................................................15 66 Item 7. 1 DENSITY BONUS HOUSING AGREEMENT This Density Bonus Housing Agreement (hereinafter “Agreement”) is entered into as of the __ day of ______, 2021 (hereinafter the “Effective Date”) by and between (i) the CITY OF BEAUMONT, a California municipal corporation (hereinafter “City”), and (ii) LINC-BEAUMONT 2 APTS LP, a California limited partnership (hereinafter “Developer”). City and Developer are hereinafter sometimes referred to collectively as the “Parties” and individually as a “Party.” RECITALS A. City is a municipal corporation organized and existing pursuant to the Constitution and laws of the State of California. B. Developer is an experienced developer and operator of multifamily rental affordable Projects in California. C. City adopted the “Affordable Housing Incentives/Density Bonus” Ordinance, Chapter 17.10 of the Beaumont Municipal Code, to facilitate the development of affordable housing and implement the goals, objectives and policies of the Housing Element of the City’s General Plan. City has allocated its existing authority to develop “low rent housing project(s)” to the Project (as defined below) in accordance with Article XXXIV of the California Constitution and California Health and Safety Code Sections 37000-37002. D. Developer is the owner of that certain real property located in the City of Beaumont, County of Riverside, State of California, more particularly described in the legal description attached hereto as Exhibit “A” and more particularly depicted in Exhibit “B”, both of which exhibits are incorporated herein by this reference (the “Property”), and Developer has agreed to develop and operate thereon a 48-unit multifamily affordable rental housing development, with all of such units, other than the one (1) management unit, affordable residential units (the “Project”). E. Pursuant to California law (Government Code Section 65915, et seq.) (the “State Density Bonus Law”) and implementing ordinance in Chapter 17.10 of the Beaumont Municipal Code of the City of Beaumont Zoning Code (the “City Density Bonus Ordinance”), applicants who entitle and build residential projects that include specified levels of affordable housing are entitled to apply for and receive certain density bonuses and additional incentives that contribute significantly to the economic feasibility of lower income housing. F. On April 5, 2019, Developer submitted to City an application for a project requesting a density bonus (the “Application”). The Project complies with the affordable housing requirements set forth in the City Density Bonus Ordinance and State Density Bonus Law. For purposes of this Agreement, the Project shall be the “housing development” as defined in the State Density Bonus Law. 67 Item 7. 2 G. Pursuant to the Application, Developer has agreed to restrict eight (8) of the units in the Project, to be rented to and occupied by “Eligible Households” in order for Developer to obtain the “Density Bonus Units” (as those terms are defined in Section 1 below). H On May 28, 2019, City’s Planning Commission approved the Application and recommended to the City Council the approval of this Agreement, subject to the terms and conditions of the City’s Planning Commission as specified therein. The Planning Commission Minute Order and Conditions of Approval is attached hereto and incorporated herein as Exhibit “C”. I. On ____________, 2021, the City Council adopted Resolution No. -___, which approved the Density Bonus Agreement, subject to execution by the Parties of this Agreement and the terms and conditions of the City Council as specified in the Resolution. J. City has complied with the procedures set forth in the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) (“CEQA”). The Project is categorically exempt from the CEQA Environmental pursuant to Section 15332 (Class 32, In-fill Development Projects) of the CEQA guidelines (Title 14, Chapter 3 of the California Code of Regulations). The Notice of Exemption is attached hereto and incorporated herein as Exhibit “F”. J. This Agreement (which includes by this incorporation by reference the attached Exhibits) is intended to set forth the terms and conditions for the implementation of the Project’s requirement to provide affordable housing units in exchange for receiving the Density Bonus Units and additional incentives set forth herein. K. The development of the Project on the Property pursuant to this Agreement, and the fulfillment generally of this Agreement, are in the vital and best interests of the City, and the welfare of its residents, and in accordance with the public purposes and provisions of applicable federal, state, and local laws and requirements. COVENANTS NOW, THEREFORE, in consideration of the above recitals, which are incorporated herein by this reference, and of the mutual covenants hereinafter contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 68 Item 7. 3 1. DEFINITIONS AND EXHIBITS 1.1 Definitions. In addition to the terms that may be defined elsewhere in this Agreement, the following terms when used in this Agreement shall be defined as follows: 1.1.1 “Adjusted for family size appropriate to the unit” means, pursuant to the State Density Bonus Law (Government Code section 65915(c)(1)) as it exists on the Effective Date, the same definition in Health and Safety Code section 50052.5 as it exists on the Effective Date (a copy of which is attached as Exhibit “D and E”). 1.1.2 “Affordable Rent” means the maximum Monthly Rent that may be charged to and paid by an Eligible Household for the Affordable Units, as annually determined pursuant to Health and Safety Code Section 50053(b), as of the date hereof, a copy of which is attached as Exhibit “E”, and the regulations promulgated pursuant to and incorporated therein. 1.1.3 “Affordable Units” means eight (8) of the Units that are required to be rented to and occupied by Eligible Households. The Affordable Units shall comprise four (4) two (2) bedroom, one (1) bath Units and four (4) three-bedroom two (2) bath Units. 1.1.4 “Agreement” means this Density Bonus Housing Agreement. 1.1.5 “Base Units” means the forty (40) Units that Developer would be authorized to develop on the Property without application of the State Density Bonus Law, including one (1) management unit. 1.1.6 “City” means the City of Beaumont, California, and the City’s successors and assigns. 1.1.7 “City Council” means the City Council of the City of Beaumont. 1.1.8 “City Attorney” means the City Attorney for the City of Beaumont. 1.1.9 “City Manager” means the City Manager for the City of Beaumont. 1.1.10 “City’s Planning Commission” means the Planning Commission for the City of Beaumont. 1.1.11 “Density Bonus Agreement Term” means the period during which this Agreement shall be in full force and effect, as provided for in Section 6.1 below. 1.1.12 “Density Bonus Units” mean the eight (8) Units in addition to the Base Units that Developer shall develop pursuant to the density allowance in the State 69 Item 7. 4 Density Bonus Law and the terms and conditions of this Agreement, of which Developer would not be entitled to develop without providing the Affordable Units. 1.1.13 “Developer” means LINC-Beaumont 2 Apts LP, a California limited partnership, and its permitted successors and assigns to all or any part of the Property. 1.1.14 “Effective Date” means the date the City Council of City approves this Agreement and from then on this Agreement shall be in full force and effect. 1.1.15 “Eligible Household” means a Household whose income does not exceed the qualifying limit for “lower income households” pursuant to Health and Safety Code Section 50079.5 as it exists on the Effective Date, a copy of which is attached as Exhibit “E”, which, as of the date of this Agreement means persons and families whose income does not exceed the qualifying limit for lower income households as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937, as published from time to time by HCD in the California Code of Regulations. 1.1.16 “Household” means all persons residing in a Unit. 1.1.17 “Housing Regulations” means the regulations published from time to time by the California Department of Housing and Community Development pursuant to Health and Safety Code Section 50093, as they exist as of the Effective Date. 1.1.19 “Median Income” means the Riverside County, California area median income, adjusted for family size appropriate to the unit, as periodically published by the State of California Department of Housing and Community Development in Section 6932 of Title 25 of the California Code of Regulations, or successor regulation. Upon request by Developer, City shall provide to Developer the amount of the Median Income. 1.1.20 “Monthly Rent” means the total of monthly payments for (a) use and occupancy of each Affordable Unit and land and facilities associated therewith, (b) any separately charged fees or service charges assessed by Developer which are required of all tenants, other than security deposits, (c) a reasonable allowance for an adequate level of service of utilities not included in (a) or (b) above, including garbage collection, sewer, water, electricity, gas and other heating, cooking and refrigeration fuels, but not including telephone or cable service, and (d) possessory interest, taxes or other fees or charges assessed for use of the land and facilities associated therewith by a public or private entity other than Developer. In the event that all utility charges are paid by the landlord rather than the tenant, no utility allowance shall be deducted from the rent. 1.1.21 “Project” means that certain residential development as more particularly described in Recital D and Section 2 of this Agreement. 1.1.22 “Property” means that certain real property more particularly described in the legal description in Exhibit “A” and improvements thereon. 1.1.23 “Regulatory Agreement” means that certain Regulatory 70 Item 7. 5 Agreement and Declaration of Covenants and Restrictions included herein. 1.1.24 “State Density Bonus Law” means Government Code Sections 65915-65918 as they exist on the Effective Date, a copy of which is attached hereto as Exhibit “D”. 1.1.25 “Substitute Affordable Units” means an equivalent Unit in terms of number of bedrooms and plan type as an Affordable Unit. 1.1.26 “Termination and Release of Regulatory Agreement” means that certain instrument included herein. 1.1.27 “Unit” means a residential dwelling unit within the Project to be rented by Developer pursuant to this Agreement. 1.1.28 “Unrestricted Units” means the Units within the Project to be rented by Developer to a Household without restriction. 1.2 Exhibits. The following documents are attached to, and by this reference made a part of, this Agreement: Exhibit “A” — Legal Description of the Property Exhibit “B” — Map showing Property and its Location Exhibit “C” — Planning Commission Minute Order and Conditions of Approval Exhibit “D” — Government Code Sections 65915-65918 Exhibit “E” — Health and Safety Code Sections 50052.5, 50053, 50079.5 Exhibit “F” — Notice of Exemption 2. DEVELOPMENT OF THE PROPERTY 2.1 Project. Developer shall develop, operate, and maintain the Property as a forty-eight (48) unit residential rental community. 2.2 The Project shall have forty-eight (48) Units, to be owned, occupied, operated, and maintained pursuant to the terms and conditions of this Agreement. Developer expressly understands and agrees that the State Density Bonus Law at the time of this Agreement allows up to a fifteen percent (15%) increase in the number of the Base Units because Developer shall restrict fifteen percent (15%) of the Base Units for occupancy by Eligible Households. Developer shall not construct or develop, or otherwise claim a right to construct or develop, more than eight (8) Density Bonus Units on the Property. 2.3 Unrestricted Units. The Project shall have no more than forty (40) Unrestricted Units with unit sizes as may be determined by the Developer. Developer may alter the unit distribution of the Unrestricted Units in Developer’s discretion, provided that the 71 Item 7. 6 Project has the minimum number of Affordable Units and the minimum distribution thereof as specified in this Agreement. 2.4 Affordable Units. The Project shall have no less than eight (8) of the Units designated as Affordable Units pursuant to the terms and conditions of this Agreement. The Affordable Units shall be consistent with the Planning Commission approval, and the Affordable Units shall be located throughout the Project, not clustered in one area or building, and shall be distributed in the same proportion as the Unrestricted Units within the Project. Developer may, subject to City’s written approval, which shall not be unreasonably withheld, increase the number of Affordable Units or alter the unit distribution as provided in this Section, provided that the Project has the minimum number of Affordable Units and the minimum distribution thereof as specified herein. Developer may elect to substitute a Substitute Affordable Unit for an Affordable Unit during the Density Bonus Agreement Term. In that event the affordability requirements hereunder with respect to the Affordable Unit shall be transferred to the Substitute Affordable Unit. 2.5 Minimum Development Standards For Affordable Units. The Affordable Units shall be constructed with the same exterior appearance and interior features, fixtures, and amenities, and shall use the same type and quality of materials as provided for the balance of the Unrestricted Units in the Project. 2.6 Permits and Processing; Compliance with Laws. Developer at its sole cost and expense shall secure or cause to be secured any and all permits that may be required by City or any other federal, state, or local governmental entity having or claiming jurisdiction over the Property or Project. Upon securing any and all permits, Developer shall carry out and perform the development, operation, and maintenance of the Project in conformity with all applicable federal, state, and local laws and regulations, and all conditions of approval issued by the City Council and City’s Planning Commission for the Project. 2.7 Relocation Prior to Development of Project. If relocation is required prior to the completion of development of the Project, Developer shall have the sole and exclusive responsibility for providing relocation assistance and paying all relocation costs as may be required to comply with applicable federal and state laws and regulations. Developer shall indemnify, defend (with counsel of City’s choosing and the consent of Developer, which shall not be unreasonably withheld, and which may be joint defense counsel upon City’s and Developer’s consent), and hold harmless City and all of its officials, officers, employees, representatives, volunteers and agents from any and all alleged or actual claims, causes of action, liabilities, and damages from any third party for relocation assistance, benefits and costs in connection with the Project prior to the completion of the development of the Project. 2.8 Mechanic’s Liens; Indemnification. The Developer shall take all actions reasonably necessary to remove any mechanic’s liens or other similar liens (including design professional liens) against the Property or Project, or any part thereof, by reason of work, labor, services, or materials supplied or claimed to have been supplied to Developer or anyone holding the Property or Project, or any part thereof, through or 72 Item 7. 7 under Developer. Upon request by the City, Developer shall provide to the City information from the Title Company. Prior to the recording of this Agreement (or memorandum thereof) pursuant to Section 4.1 below, Developer shall provide evidence from the Title Company of any recordings against the Property or Project. City hereby reserves all rights to post notices of non-responsibility and any other notices as may be appropriate upon a filing of a mechanic’s lien. Developer shall indemnify, defend (with counsel of City’s choosing and the consent of Developer, which shall not be unreasonably withheld, and which may be joint defense counsel upon City’s and Developer’s consent), and hold harmless City and all of its officials, officers, employees, representatives, volunteers and agents from any and all alleged or actual claims, causes of action, liabilities, and damages from any third party by reason of a mechanic’s lien or work, labor, services, or materials supplied or claimed to have been supplied to Developer or anyone holding the Property or Project, or any part thereof, through or under Developer, except to the extent caused by the gross negligence or willful misconduct of City. 3. AFFORDABILITY 3.1 Total Affordability Term. Each Affordable Unit shall be restricted to use and occupancy by an Eligible Household for a total period of no less than thirty (30) years (the “Total Affordability Term”). The Total Affordability Term for an Affordable Unit shall commence on the date that the Affordable Unit receives all required occupancy permits from the City. By way of explanation of the foregoing two sentences, it is possible that the Total Affordability Period for one Affordable Unit will neither commence on the same date nor terminate on the same date as another Affordable Unit, and it is possible that the Total Affordability Terms for all Affordable Units will commence on different days and terminate on different days. 3.2 Memorializing Commencement of Total Affordability Term. Developer shall keep detailed records of the commencement date of the Total Affordability Term for each Affordable Unit and each Substitute Affordable Unit. City shall have the right to review and verify said records to ensure that the commencement date specified by Developer for an Affordable Unit or Substitute Affordable Unit coincides with the date that the initial Affordable Unit received all permits from City required for occupancy of the Unit. In the event that a conflict exists between the date specified by Developer for the commencement of the Total Affordability Term for an Affordable Unit and the date specified by City’s issuance of all required permits for occupancy of the Unit, the date specified by City’s issuance of all required permits for occupancy of the Unit shall control. 3.3 Article XXXIV Authority. City represents that it has obtained and allocated to the Project (as a “low rent housing project”, as such term is used in Article XXXIV of the California Constitution) the authority, and the Project has been approved, as required under Article XXXIV of the California Constitution and California Health and Safety Code Sections 37000-37002. 73 Item 7. 8 4. OWNERSHIP AND OPERATION OF THE PROJECT BY OWNER 4.1 Recording of Documents. The City shall record or cause to be recorded in the Official Records for Riverside County, California, an executed original of this Agreement (or memorandum of this Agreement in a form approved by the City Attorney and Developer’s counsel), and no later than the date of issuance of the first certificate of occupancy for the Project after its completion of construction, Developer shall record or cause to be recorded a separately executed original of the Regulatory Agreement. City shall cooperate with Developer in promptly executing in recordable form the Regulatory Agreement. Upon the date of recording, the terms and conditions of the Regulatory Agreement shall be binding upon and run with the Property and the Project. It is the express intent and agreement between the Parties that the Regulatory Agreement shall remain binding and enforceable against the Property, the Project, and the Units to ensure compliance with the State Density Bonus Law and Chapter 17.10 of the Beaumont Municipal Code, and to ensure the continued supply of Affordable Units in the Project. 4.2 Rental of Units. Upon the completion of construction of the Project and receipt by Developer of all required permits for the occupancy of the Units, Developer shall rent or cause to be rented each Affordable Unit for the Total Affordability Term for such Affordable Unit in accordance with terms and conditions set forth in the Regulatory Agreement, which provide among other terms and conditions for the rental of each Affordable Unit at an Affordable Rent to an Eligible Household for the Total Affordability Term (the “For Rent Affordable Units”). 4.3 Income Verification. During the Density Bonus Agreement Term, Developer shall, at Developer’s sole cost and expense, determine and verify the eligibility of Low Income Households for the rental of the Affordable Units in accordance with the terms and conditions set forth in the Regulatory Agreement. 4.4 Location of Affordable Units. During the Density Bonus Agreement Term, the Affordable Units shall be disbursed throughout the Project in accordance with the terms and conditions set forth in this Agreement and the Regulatory Agreement. 4.5 Termination and Release from Regulatory Agreement. Upon the written request of Developer to City, the Termination and Release from Regulatory Agreement shall be recorded for the benefit of Developer at the conclusion of the Density Bonus Agreement Term upon City’s verification, which shall not be unreasonably delayed, that the Density Bonus Agreement Term has concluded. 5. [INTENTIONALLY RESERVED] 6. TERM OF THIS AGREEMENT 6.1 Term. The term of this Agreement (the “Density Bonus Agreement Term”) shall commence on the Effective Date and shall continue until the date that is thirty (30) years after the City issues the last certificate of occupancy for the Project. 74 Item 7. 9 7. DEFAULT AND TERMINATION; INDEMNIFICATION 7.1 Default. Failure or delay by any Party to perform any term or provision of this Agreement which is not cured within thirty (30) days after receipt of notice from the other Party specifying the default (or such other period specifically provided herein) constitutes a default under this Agreement; provided, however, if such default is of the nature requiring more than thirty (30) days to cure, the defaulting Party shall avoid default hereunder by commencing to cure within such thirty (30) day period, and thereafter diligently pursuing such cure to completion within an additional sixty (60) days following the conclusion of such thirty (30) day period (for a total of ninety (90) days). Except as required to protect against further damages, the injured Party may not institute proceedings against the Party in default until the time for cure has expired. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. City hereby agrees to accept any cure offered by any limited partner of or lender to Developer on the same basis as if such cure were offered by Developer. 7.2 Rights and Remedies Cumulative. The rights and remedies of the Parties are cumulative, and the exercise by either Party of one or more of its rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party. 7.3 Indemnification. In addition to any other indemnity specifically provided in this Agreement, Developer agrees to defend (with counsel of City’s choosing and the consent of Developer, which shall not be unreasonably withheld, and which may be joint defense counsel upon City’s and Developer’s consent) indemnify and hold harmless City and its respective officers, officials, agents, employees, representatives, and volunteers (collectively, “Indemnitees”) from and against any loss, liability, claim, or judgment arising from any act or omission of Developer in connection with its obligations under this Agreement, except to the extent caused by the negligence or misconduct of Indemnitees. 8. COVENANTS RUN WITH THE LAND 8.1 [Intentionally deleted.] 8.2 Covenants Run with the Land. The Property shall be held, sold, conveyed, hypothecated, encumbered, used, occupied and improved subject to the covenants, conditions, and restrictions set forth herein. The covenants, conditions, restrictions, reservations, equitable servitudes, liens and charges set forth in this Agreement shall run with the Property and shall be binding upon Developer and all persons having any right, title or interest in the Property, or any part thereof, their heirs, and successive owners and assigns, shall inure to the benefit of City and its successors and assigns, and may be enforced by City and its successors and assigns. The covenants established in this Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of City and its successors and assigns, and the parties hereto 75 Item 7. 10 expressly agree that this Agreement and the covenants herein shall run in favor of City, without regard to whether City is or remains an owner of any land or interest therein to which such covenants relate. Furthermore, all of the covenants, conditions, and restrictions contained herein shall also constitute easements in gross running in favor of City. City is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own right and for the purposes of protecting the interests of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided. Developer hereby declares its understanding and intent that the burden of the covenants set forth herein touch and concern the land and that the Developer’s interest in the Property is rendered less valuable thereby. Developer hereby further declares its understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the enjoyment and use of the Property by the citizens of City and by furthering the health, safety, and welfare of the residents of City. 9. MISCELLANEOUS 9.1 Notices 9.1.1 Delivery. As used in this Agreement, “notice” includes, but is not limited to, the communication of notice, request, demand, approval, statement, report, acceptance, consent, waiver, appointment or other communication required or permitted hereunder. All notices shall be in writing and shall be considered given either: (i) when delivered in person to the recipient named below; or (ii) on the date of delivery shown on the return receipt, after deposit in the United States mail in a sealed envelope as either registered or certified mail with return receipt requested, and postage and postal charges prepaid, and addressed to the recipient named below; or (iii) two (2) days after deposit in the United States mail in a sealed envelope, first class mail and postage prepaid, and addressed to the recipient named below; or (iv) one (1) day after deposit with a known and reliable next-day document delivery service (such as Fed Ex), charges prepaid and delivery scheduled next-day to the recipient named below, provided that the sending party receives a confirmation of delivery from the delivery service provider; or (v) the first business day following the date of transmittal of any facsimile, provided confirmation of successful transmittal is retained by the sending Party. All notices shall be addressed as follows: 76 Item 7. 11 If to City: City of Beaumont 550 East Sixth Street Beaumont, CA 92223 Attn: Director of Director of Planning Phone No: (951) 769-8518 Facsimile No: (951) 769-8526 With a copy to: Slovak Baron Empey Murphy & Pinkney LLP 1800 East Tahquitz Canyon Way Palm Springs, CA 92262 Attn: John O. Pinkney Phone No: (760) 322-2275 Facsimile No: (760) 322-2107 pinkney@sbemp.com If to Developer: c/o LINC Housing Corporation 3590 Elm Avenue Long Beach, CA 90807 Attn: President Phone No: (562) 684-1120 Facsimile No: (562) 684-1137 With a copy to: Gubb & Barshay LLP 505 14th Street, Suite 450 Oakland, CA 94612 Attn: Lauren Fechter Phone: 415-781-6600 Facsimile: 415-781-6967 lfechter@gubbandbarshay.com With a copy to: c/o Raymond James Tax Credit Funds, Inc. 880 Carillon Parkway St. Petersburg, Florida 33716 Attention: Steven J. Kropf, President and: PNC BANK, NATIONAL ASSOCIATION 101 South Fifth Street, 7th Floor Mailstop K1-K201-07-4 Louisville, Kentucky 40202 Attn: Loan Administration 77 Item 7. 12 9.1.2 Change of Address. Either Party may, by notice given at any time, require subsequent notices to be given to another person or entity, whether a party or an officer or representative of a party, or to a different address, or both. Notices given before actual receipt of notice of change shall not be invalidated by the change. 9.2 Entire Agreement. This Agreement and all of its exhibits and attachments set forth and contain the entire understanding and agreement of the parties, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements which are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement. 9.3 Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, the remainder of this Agreement shall not be affected thereby to the extent such remaining provisions are not rendered impractical to perform, taking into consideration the purposes of this Agreement. 9.4 Interpretation and Governing Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California without regard to conflict of law principles. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall not be employed in interpreting this Agreement, all Parties having been represented by counsel in the negotiation and preparation hereof 9.5 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement. 9.6 Singular and Plural. As used herein, the singular of any word includes the plural, and vice versa, as context so dictates. Masculine, feminine, and neuter forms of any word include the other as context so dictates. 9.7 Joint and Several Obligations. If at any time during the term of this Agreement the Property and/or Project is owned, in whole or in part, by more than one Developer, all obligations of such Developer under this Agreement shall be joint and several, and the default of any such Developer shall be the default of all such Developers. 9.8 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element. 9.9 Computation of Days. Unless otherwise specified in this Agreement or any Exhibit attached hereto, use of the term “days” shall mean calendar days. For purposes of this Agreement and all Exhibits attached hereto, “business days” shall mean every day of the week except Saturdays, Sundays, and official State holidays as recognized in Government 78 Item 7. 13 Code Section 19853(a) or successor statute. 9.10 Waiver. Failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Party, or the failure by a Party to exercise its rights upon the default of the other Party, shall not constitute a waiver of such Party’s right to insist and demand strict compliance by the other Party with the terms of this Agreement thereafter. 9.11 Third Party Beneficiaries. No person or entity, other than City and Developer shall have any right of action based upon any provision of this Agreement. 9.12 Force Majeure. Neither Party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by floods, earthquakes, pandemics, other Acts of God, fires, wars, riots or similar hostilities, strikes and other labor difficulties beyond the Party’s control (including the Party’s employment force), court actions (such as restraining orders or injunctions), or other causes beyond the Party’s control, including delays by any governmental entity (although the City may not benefit from this provision for a delay that results from City’s failure to perform its obligations under this Agreement), or an insurance company of either party. If any such events shall occur, the term of this Agreement and the time for performance by either Party of any of its obligations hereunder may be extended by the written agreement of the Parties for the period of time that such events prevented such performance. 9.13 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the Party benefited thereby of the covenants to be performed hereunder by such benefited Party. 9.14 Successors in Interest. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all permitted successors in interest to the Parties to this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land. Each covenant to do or refrain from doing some act hereunder with regard to development of the Property: (a) is for the benefit of and is a burden upon every portion of the Property; (b) runs with the Property and each portion thereof; and (c) is binding upon each Party and each successor in interest approved pursuant to this Agreement during ownership of the Property or any portion thereof. 9.15 Counterparts. This Agreement may be executed by the Parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the Parties had executed the same instrument. 9.16 Jurisdiction and Venue. Any action at law or in equity arising under this Agreement or brought by a Party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Riverside, State of California, and the Parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court. 79 Item 7. 14 9.17 Project as a Private Undertaking. It is specifically understood and agreed by and between the Parties hereto that the development of the Project is a private development, that neither Party is acting as the agent of the other in any respect hereunder, and that each Party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by this Agreement. The only relationship between City and Developer is that of a government entity regulating the development of private property and the Developer of such property. 9.18 Further Actions and Instruments. Each of the Parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and the satisfaction of the conditions of this Agreement. Upon the request of either Party at any time, the other Party shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or to evidence or consummate the transactions contemplated by this Agreement. City hereby authorizes City Manager to take such other actions and negotiate and execute any additional agreements as may be necessary or proper to fulfill the City’s obligations under this Agreement. The City Manager may delegate her or his powers and duties under this Agreement to an authorized management level employee of the City. 9.19 Estoppel Certificate. Within ten (10) business days following a written request by any of the Parties, the other Party shall execute and deliver to the requesting Party a statement certifying that (i) either this Agreement is unmodified and in full force and effect or there have been specified (date and nature) modifications to the Agreement, but it remains in full force and effect as modified; and (ii) either there are no known current uncured defaults under this Agreement or that the responding Party alleges that specified (date and nature) defaults exist. The statement shall also provide any other reasonable information requested. The failure to timely deliver this statement shall constitute a conclusive presumption that this Agreement is in full force and effect without modification except as may be represented by the requesting Party and that there are no uncured defaults in the performance of the requesting Party except as may be represented by the requesting Party. 9.20 No Subordination. City’s approval of the necessary land use entitlements that authorize Developer to develop, operate, and maintain the Project was based upon Developer’s obligation to provide the Affordable Units pursuant to the State Density Bonus Law and the terms and conditions of this Agreement. For the Density Bonus Agreement Term, this Agreement and the Regulatory Agreement shall have priority over any and all mortgages, deeds of trust, and other similar forms of secured financing recorded against the Property or any portion thereof. Developer expressly understands and acknowledges that state law requires preservation of affordability covenants in connection with the approval of this density bonus project. 9.21 Attorneys’ Fees and Costs. If either Party to this Agreement 80 Item 7. 15 commences an action against the other Party to this Agreement to interpret or enforce this Agreement, the prevailing Party shall be entitled to recover reasonable attorneys’ fees, expert witness fees, costs of investigation, and costs of suit from the losing Party. 9.22 Authority to Execute. The person or persons executing this Agreement on behalf of each Party warrants and represents that he or she/they have the authority to execute this Agreement on behalf of his or her/their corporation, partnership or business entity and warrants and represents that he or she/they has/have the authority to bind the Party to the performance of its obligations hereunder. IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the day and year set forth in the preamble above. “CITY” CITY OF BEAUMONT California municipal corporation By: ________________________________ Mike Lara, Mayor ATTEST: ________________________ City Clerk APPROVED AS TO FORM: SLOVAK BARON EMPEY MURPHY & PINKNEY LLP __________________________ City Attorney 81 Item 7. 16 “DEVELOPER” LINC-Beaumont 2 Apts LP, a California limited partnership By: LINC-Beaumont 2 Apts LLC, a California limited liability company, its managing general partner By: LINC Housing Corporation, a California nonprofit public benefit corporation, its sole member and manager By: _________________________ Anne Wilson, Chief Real Estate Development Officer By: Riverside Community Housing Corp., a California nonprofit public benefit corporation, its administrative general partner By: Carrie Harmon, Chief Operating Officer 82 Item 7. 17 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) ) ss: COUNTY OF ____________ ) On _____________________ before me, _______________________________, a Notary Public personally appeared ____________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. 83 Item 7. 18 Signature__________________________ A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) ) ss: COUNTY OF ____________ ) On _____________________ before me, _______________________________, a Notary Public personally appeared ____________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature__________________________ 84 Item 7. 19 EXHIBIT “A” TO DENSITY BONUS HOUSING AGREEMENT Legal Description of Property All that certain real property situated in the County of Riverside, State of California, described as follows: Parcel 1 of Parcel Map 26990, in the City of Beaumont, County of Riverside, State of California, on File in Book 172, Pages 65 and 66, of Parcel Maps, Records of Riverside County, Ca 85 Item 7. 20 EXHIBIT “B” TO DENSITY BONUS HOUSING AGREEMENT Map showing Property and its location [Attached] 86 Item 7. 21 EXHIBIT “C” TO DENSITY BONUS HOUSING AGREEMENT Planning Commission Minutes [Attached] EXHIBIT “C” 87 Item 7. 1 RECORDED AT THE REQUEST OF AND WHEN RECORDED RETURN TO: City of Beaumont 550 East Sixth Street Beaumont, CA 92223 Attn: Director of Director of Planning (Space Above For Recorder’s Use) This Regulatory Agreement and Declaration of Covenants and Restrictions is recorded at the request and for the benefit of the City of Beaumont and is exempt from the payment of a recording fee pursuant to Government Code Sections 6103 and 27383. REGULATORY AGREEMENT AND DECLARATION OF COVENANTS AND RESTRICTIONS This REGULATORY AGREEMENT AND DECLARATION OF COVENANTS AND RESTRICTIONS (“Agreement”) is entered into as of this ________day of_____________ 2021, by and between (i) the CITY OF BEAUMONT, a California municipal corporation (hereinafter “City”), and (ii) LINC-BEAUMONT 2 APTS LP, a California limited partnership (hereinafter “Owner”). City and Owner are hereinafter sometimes referred to collectively as the “Parties” and individually as a “Party”. RECITALS A. Owner is the owner in fee of that certain real property located in the City of Beaumont, County of Riverside, State of California, more particularly described in the legal description attached hereto as Attachment 1 (the “Property”) and incorporated by this reference. B. Owner has submitted to City plans to develop on the Property a 48-unit affordable rental residential community (the “Project”). C. On or about ___________, City and Owner entered into that certain Density Bonus Housing Agreement (“Density Bonus Agreement”), which set forth the terms and conditions for the development of the Project and implemented Government Code Sections 65915-65918 (the “State Density Bonus Law”) and the City of Beaumont Affordable Housing Implementation Procedure (Beaumont Municipal Code Chapter 17-10), by requiring Owner to restrict eight (8) residential units to lower income households as defined in Health and Safety Code Section 50079.5 at the time of this Agreement, which as of the date of this Agreement means persons and families whose income does not exceed the qualifying limit for lower income households, adjusted for family size, as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937, as published from time to time by HCD in the California Code of Regulations. 88 Item 7. 2 D. Pursuant to the Density Bonus Agreement, City and Owner desire to enter into this Agreement to place certain covenants and restrictions on the Property and use and operation of the Project, including the imposition of affordability covenants requiring that six (6) residential units be rented to Eligible Households at Affordable Rent for the Density Bonus Agreement Term (as defined below). E. It is the intent of the City and Owner that Owner’s interests in the Property shall be subject to this Regulatory Agreement and that the terms hereof shall be binding on the Owner and its successors in interest in the Property approved pursuant to the Density Bonus Agreement, for so long as this Regulatory Agreement shall remain in effect pursuant to the Density Bonus Agreement. AGREEMENT Based upon the foregoing Recitals, which are incorporated herein by this reference, and for good and valuable consideration, the receipt and sufficiency of which is acknowledged, the Parties hereby agree as follows: 1. Definitions and Attachments. 1.1 Definitions. In addition to the terms that may be defined elsewhere in this Agreement, the following terms when used in this Agreement shall be defined as follows: 1.1.1 “Adjusted for family size appropriate to the unit” means, pursuant to the State Density Bonus Law (Government Code section 65915(c)(1)) as it exists on the Effective Date, the same definition in Health and Safety Code section 50052.5 as it exists on the Effective Date (a copy of which is attached to the Density Bonus Agreement as Exhibit G). 1.1.2 “Affordable Rent” means annual rent that does not exceed the amount of rent (including a reasonable utility allowance) for an Eligible Household authorized pursuant to Health and Safety Code Section 50053 as it exists on the Effective Date, a copy of which is attached to the Density Bonus Agreement as Exhibit G, which is the product of thirty percent (30%) times eighty percent (80%) of Median Income, adjusted for family size appropriate for the unit. Exhibit I attached to the Density Bonus Agreement includes an example of the calculation of Affordable Rent. 1.1.3 “Affordable Unit’ means individually and “Affordable Units” means collectively the eight (8) Residential Units within the Project to be rented by Owner to an Eligible Household at Affordable Rent in accordance with this Agreement and the Density Bonus Agreement. 1.1.4 “Agreement” and “Regulatory Agreement” means this Agreement and all attachments hereto. 1.1.5 “Base Units” means the forty (40) Units that Owner would be authorized to develop on the Property without application of the State Density Bonus Law. 1.1.6 “City” means the City of Beaumont, California, and the City’s successors and assigns. 89 Item 7. 3 1.1.7 “City Attorney” means the City Attorney for the City of Beaumont. 1.1.8 “City Council” means the City Council of the City of Beaumont. 1.1.9 “City Manager” means the City Manager for the City of Beaumont. 1.1.10 “City Monitoring Fee” means the fee paid every year after the Effective Date in the amount of twenty-five dollars ($25.00) per completed Affordable Unit, to be paid to City (or City’s designee) by Owner to defray the costs incurred by City for monitoring compliance with the affordability covenants set forth in this Agreement. The twenty-five dollar ($25.00) base amount (effective on the Effective Date) shall be increased annually by the percentage increase (between September of the year preceding and September of the current year) in the Consumer Price Index published by the United States Department of Labor, Bureau of Labor Statistics, for Urban Wage Earners and Clerical Workers, Los Angeles-Long Beach-Anaheim Average, All Items (1984 = 100). A “completed Affordable Unit” shall mean an Affordable Unit that has received a certificate of occupancy by City. 1.1.11 “City’s Planning Commission” means the Planning Commission for the City of Beaumont. 1.1.12 “Density Bonus Agreement” means the agreement referenced in Recital C of this Agreement. 1.1.13 “Density Bonus Agreement Term” means the period during which this Agreement shall be in full force and effect, as provided for in Section 3.1 below. 1.1.14 “Density Bonus Units” means the eight (8) Units in addition to the Base Units that Owner shall develop pursuant to the density allowance in the State Density Bonus Law and the terms and conditions of this Agreement, of which Owner would not be entitled to develop without providing the Affordable Units. 1.1.15 “Effective Date” means the date the City Council of City approves the Density Bonus Agreement. 1.1.16 “Eligible Household” means a Household whose income does not exceed the qualifying limit for “lower income households” pursuant to Health and Safety Code Section 50079.5 as it exists on the Effective Date, a copy of which is attached to the Density Bonus Agreement as Exhibit H, which, as of the date of this Agreement means persons and families whose income does not exceed the qualifying limit for lower income households as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937, as published from time to time by HCD in the California Code of Regulations. 1.1.17 “Home Office” means a separate area or room in an Affordable Unit used for business purposes and claimed as a business expense pursuant to federal and state income tax laws. Any room used for business purposes shall not reduce the number of bedrooms that are required to be within an Affordable Unit pursuant to this Agreement and the Density Bonus 90 Item 7. 4 Agreement. 1.1.18 “Household” means all persons residing in a Unit. 1.1.19 “Housing Regulations” means the regulations published from time to time by the California Department of Housing and Community Development pursuant to Health and Safety Code Section 50093, as they exist as of the Effective Date. 1.1.20 “Income Computation and Certification Form” means the form used to determine and certify whether a potential renter is an Eligible Household, in a form approved by City. 1.1.21 “Median Income” means the Riverside County, California area median income, adjusted for family size appropriate to the unit, as periodically published by the State of California Department of Housing and Community Development in Section 6932, of Title 25 of the California Code of Regulations, or successor regulation. Upon request by Owner, City shall provide to Owner the amount of the Median Income. 1.1.22 “Project” means that certain residential development more particularly described in Recital B of this Agreement and Section 2 of the Density Bonus Agreement. 1.1.23 “Residential Unit” means a residential dwelling unit within the Project to be rented by Owner pursuant to this Agreement and the Density Bonus Agreement. 1.1.24 “State Density Bonus Law” means Government Code Sections 65915-65918 as it exists on the Effective Date. 1.1.25 “Substitute Affordable Units” means an equivalent Unit in terms of number of bedrooms for an Affordable Unit. 1.1.26 “Unit” means “Residential Unit.” 1.1.27 “Unrestricted Units” means the Residential Units within the Project to be rented by Owner to a Household without restriction. 1.2 Attachments. The following documents are attached to, and by this reference made a part of, this Regulatory Agreement: Attachment 1 — Legal Description of Property; 2. Development of the Project. City hereby acknowledges that Owner has completed the construction and development of the Project on the Property in accordance with the Density Bonus Agreement. 91 Item 7. 5 3. Affordability. 3.1 Term. The term of this Agreement (the “Density Bonus Agreement Term”) shall commence on the Effective Date and shall continue until the date that is thirty (30) years after the City issues the last certificate of occupancy for the Project. Owner may elect to substitute an equivalent Unit in terms of number of bedrooms and plan type (a “Substitute Affordable Unit”) for an Affordable Unit during the Density Bonus Agreement Term. In that event the affordability requirements hereunder with respect to the Affordable Unit shall be transferred to the Substitute Affordable Unit. 3.2 City Monitoring Fee. For purposes of defraying the monitoring activities required to ensure compliance with the State Density Bonus Law and affordability covenants set forth in this Agreement, Owner shall pay the City Monitoring Fee no later than December 31 of each year. City shall deliver to Owner an invoice for the City Monitoring Fee no later than November 30 of the same year for which payment will be due on December 31. In the event that City fails to deliver an invoice for the applicable year, then Owner shall have no obligation to pay the City Monitoring Fee for that year only, and Owner shall not be relieved of the payment obligation for any future City Monitoring Fees for which City timely delivers an invoice. City shall ensure that the funds received from the City Monitoring Fee shall be used to monitor compliance with the State Density Bonus Law and affordability covenants set forth in this Agreement. 4. Use Affordability Covenants. For the entirety of the Density Bonus Agreement Term, Owner shall own, operate, and maintain the Project by renting Affordable Units in accordance with the covenants and conditions of this Section 4. 4.1 General. Owner shall devote the Property for use as a residential rental community with associated amenities such as a clubhouse and ancillary uses including a leasing and/or sales office with all of the Affordable Units to be rented to and occupied or held available for occupancy only by Eligible Households at Affordable Rent. The Affordable Units shall be consistent with the requirements and conditions set forth in Planning Commission approval, which is attached to the Density Bonus Agreement as Exhibit E, and the Affordable Units shall be located throughout the Project, not clustered in one area or building, and shall be distributed in the same proportion as the Unrestricted Units within the Project. Owner may, subject to City’s written approval, which shall not be unreasonably withheld, increase the number of Affordable Units or alter the unit distribution as provided in this Section, provided that the Project has the minimum number of Affordable Units and the minimum distribution thereof as specified herein. The Affordable Units shall be constructed with the same exterior appearance and interior features, fixtures, and amenities, and shall use the same type and quality of materials as provided for the balance of the Unrestricted Units in the Project. Owner shall not permit the Residential Units to be utilized on a transient basis, or as a hotel, motel, dormitory, fraternity house, sorority house, rooming house, nursing home, hospital, sanitarium, trailer court or park, day care facilities, or non- residential uses (other than to maintain a Home Office). 4.2 Occupancy by Eligible Households. The lease for each Affordable Unit shall provide that it is to be used as the principal residence of that Affordable Unit’s Eligible Household and for no other purpose. The lease for an Affordable Unit may allow an Eligible Household to have a Home Office so long as the Affordable Unit is the Eligible Household’s principle residence. The 92 Item 7. 6 lease shall further provide that an Eligible Household shall not lease or sublease its Affordable Unit or its right of occupancy. 4.3 Occupancy Limits. The number of persons permitted to occupy each Affordable Unit shall not exceed the occupancy permitted pursuant to the general requirements of the United States Department of Housing and Urban Development in effect on the Effective Date of the Density Bonus Agreement. The lease for each Affordable Unit shall include a provision limiting the number of persons permitted to occupy each Affordable Unit in accordance with the preceding sentence and Owner shall enforce such occupancy restrictions. 4.4 Determination of Eligible Household Status. Immediately prior to any occupancy of an Affordable Unit, Owner shall obtain an Income Computation and Certification Form from each applicant for an Affordable Unit dated immediately prior to the date of initial occupancy of the Affordable Unit by such applicant. In addition, Owner shall provide such further information as may be reasonably required by City for purposes of verifying a tenant’s status as an Eligible Household. Owner shall verify that the income provided by an applicant is accurate by obtaining the following as a part of the verification process: (a) the Social Security Number (if available) of the proposed purchaser; (b) copies of the federal and state income tax returns if filed by the proposed purchaser for the prior two (2) calendar years; (c) copies (if available) of the two most current wage earning statements of the proposed purchaser; (d) a certification as to the income and family size of the applicant; and (e) any other information that City may reasonably require to verify the income of the proposed purchaser. Owner shall maintain in its records each Income Computation and Certification Form obtained pursuant to this Section and Section 4.5 for a minimum period of three (3) years. 4.5 Recertification. Within sixty (60) days prior to the first anniversary date of the occupancy of an Affordable Unit by an Eligible Household, and on each anniversary date thereafter, or if preferred by Owner and approved in writing by City, within sixty (60) days prior to January 1 of each year, Owner shall recertify the income of such Eligible Household by obtaining a completed Income Computation and Certification Form based upon the current income of each occupant of the Affordable Unit. In the event that recertification demonstrates that a Household’s income exceeds the income permitted for Eligible Household status, Owner shall perform either of the following: (i) To the extent permitted by applicable law, the occupants’ lease shall not be renewed and said occupants shall be required to vacate the unit within one hundred eighty (180) days after the recertification; or (ii) the next available Unrestricted Unit in the Project shall be leased as an Affordable Unit at Affordable Rent to an Eligible Household so that the Project will be in compliance with the covenants and conditions of this Agreement, and the previous Affordable Unit shall be redesignated as an Unrestricted Unit and the occupants thereof may be charged the amount of rent for an Unrestricted Unit. 4.6 Leasing Affordable Units. The Affordable Units shall be available for rental on a continuous basis and Owner shall not give preference to any particular class or group in renting Affordable Units, except to the extent that the Affordable Units are required to be rented to Eligible Households. Owner shall maintain a list of persons who have applied for an Affordable Unit and, should multiple tenants be equally eligible (as to income, credit history, and other nondiscriminatory criteria) and qualified to rent an Affordable Unit, Owner shall rent available Affordable Units to Eligible Households on a first qualified (with reasonable efforts made to qualify applicants in the order that the applications are received), first offered basis, or pursuant 93 Item 7. 7 to a lottery system. Owner shall use commercially reasonable efforts to lease Affordable Units that become available as quickly as possible. Subject to applicable law, Owner shall market the Affordable Units to the citizens of the City of Beaumont on a nonexclusive basis. 4.7 Rental Agreement. The form of the lease agreement that will be entered into between Owner and Eligible Households shall be reasonably approved by City prior to the rental or leasing of any of the Affordable Units. Once approved, no material changes shall be made to the form of the lease agreement relating to the total rent to be paid by an Eligible Household, the qualification of an Eligible Household, or usage of the Affordable Unit, without City’s prior written approval, which shall not be unreasonably withheld. The lease agreement shall obligate the Eligible Households to comply with the provisions set forth in this Agreement, and an Eligible Household who violates such requirements shall be in default under the rental agreement. Each lease agreement with an Eligible Household shall include a provision to the effect that the Owner has relied on the information provided by the Eligible Household on the Income Computation and Certification Form and all other supporting information supplied by the Eligible Household in determining qualification for occupancy of the applicable Affordable Unit, and that any material misstatement in such certification (whether or not intentional) shall be cause for immediate termination of such lease agreement. In addition, each lease agreement shall contain a provision that failure to cooperate with the annual recertification process may disqualify the Eligible Household as such and will be cause for immediate termination of such lease agreement. Any termination shall be subject to fair housing laws and other laws designed to protect the rights of tenants. 5. Termination and Release from Regulatory Agreement. The covenants set forth in this Regulatory Agreement shall remain binding and in effect from the date of its recording until the date the executed Termination and Release of Regulatory Agreement is recorded for the benefit of the Property in the Official Records for Riverside County, California for all of the Affordable Units. The Termination and Release of Regulatory Agreement shall be executed and recorded pursuant to the terms and conditions set forth in Section 4.5 of the Density Bonus Agreement. 6. No Discrimination. Owner shall not discriminate on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Section 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, or rental, or in the use, occupancy, or enjoyment of the Property, nor shall Owner itself, or any person claiming under or through it, establish or permit any such practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Property or any portion thereof. The foregoing covenants shall run with the land. 7. Maintenance of Property. For the Density Bonus Agreement Term, Owner shall maintain or cause to be maintained the Property and all improvements on the Property in a good condition and repair (and, as to landscaping, in a healthy condition), ordinary wear and tear excepted, and in accordance with all applicable laws, rules, ordinances, orders, and regulations of all federal, state, county, municipal, and other governmental agencies and bodies having or claiming jurisdiction. City places prime importance on quality maintenance to ensure that residential developments which include affordable units within the City of Beaumont are not allowed to deteriorate due to substandard maintenance. In addition, Owner shall keep the Property free from 94 Item 7. 8 all graffiti and any accumulation of debris or waste material. Owner shall make all repairs and replacements necessary to keep the improvements in first class condition and repair and shall promptly eliminate all graffiti and replace dead and diseased plants and landscaping with comparable materials. In the event that Owner breaches any of the covenants contained in this Section 7, and such default continues for a period of five (5) days after written notice from a City or such longer period of time as is reasonably necessary to correct the condition (with respect to landscaping, graffiti, debris, waste material, and general maintenance) or thirty (30) days after written notice from City or such longer period of time as is reasonably necessary to correct the condition (with respect to building improvements), then City in addition to whatever other remedy it may have at law or in equity shall have the right (but not the obligation) to enter upon the Property and perform or cause to be performed all such acts and work necessary to cure the default. Pursuant to such right of entry, City shall be permitted (but not required) to enter upon the Property and perform all acts and work necessary to protect, maintain, and preserve the improvements and landscaped areas on the Property, and to attach and record a lien against the Property enforceable in the same manner as a lien imposed for a nuisance, or to assess the Property, in the amount of the expenditures arising from such acts and work of protection, maintenance, and preservation by City and/or costs of such cure, including a ten percent (10%) administrative charge, which amount shall be promptly paid by Owner to City upon demand. 8. Management. For the Density Bonus Agreement Term, Owner shall manage or cause to be managed the Project in accordance with this Agreement and Density Bonus Agreement. In the event of “Gross Mismanagement” (as that term is defined below), City shall have the authority to require that such Gross Mismanagement cease immediately and that management of the Property comply with this Agreement and the Density Bonus Agreement. City shall provide written notice to Owner of the event(s) of Gross Mismanagement occurring and Owner shall have thirty (30) days after receipt of such notice (or such shorter period as specified in this Agreement, or longer period as is reasonably necessary to correct the condition) to cure, correct, or remedy the event(s) of Gross Mismanagement identified in City’s notice and to notify City of the cure, correction, or remedy. For purposes of this Agreement the term “Gross Mismanagement” shall mean management of the Project in a manner which violates the terms of this Agreement and/or the Density Bonus Agreement and shall include, but is not limited to, the following: i. Knowingly allowing an Affordable Unit to be occupied by a person or Household that does not qualify as an Eligible Household; ii. Knowingly renting an Affordable Unit for more than Affordable Rent; iii. Allowing the prescribed occupancy levels to be exceeded without taking immediate action to stop such overcrowding; or iv. Failure to maintain the Property in the manner prescribed in Section 7. 9. Records. Owner shall maintain complete and accurate records pertaining to the Affordable Units for a period of no less than three (3) years (unless a longer period of time is 95 Item 7. 9 expressly set forth herein), and shall permit any duly authorized representative of City to inspect the books and records of Owner pertaining to the Affordable Units within 24 hours of demand by City. 10. Right to Inspect. City shall have the right to inspect the Property and the Affordable Units for purposes of assuring compliance with this Agreement during normal business hours on not less than seventy-two (72) hours written notice. 11. Indemnification. Owner shall defend (with counsel of City’s choosing and the consent of Owner, which shall not be unreasonably withheld, and which may be joint defense counsel upon City’s and Owner’s consent), indemnify and hold harmless City and its officers, officials, members, agents, employees, representatives, and volunteers from and against any loss, damage, costs, expenses, liability, claim, or judgment (collectively, “claims”) relating to the operation of the Project and Residential Units as rental properties thereon, or Owner’s performance under this Agreement, except to the extent claims are caused by the negligence or misconduct of City. 12. Insurance. Upon completion of construction of the Project and in no event later than the date upon which the first Residential Unit has received all required occupancy permits from the City and for the duration of this Regulatory Agreement, Owner shall procure and keep in full force and effect or cause to be procured and kept in full force and effect for the mutual benefit of Owner and City, and shall provide City evidence reasonably acceptable to City, of insurance policies meeting the minimum requirements set forth in this Section 12. 12.1 Types of Insurance Policies. The insurance policies to be maintained by Owner upon the date specified above and for the duration of the term of this Agreement are as follows: i. Commercial General Liability insurance with respect to the Property and the operations of or on behalf of Owner, in an amount not less than Two Million Dollars ($2,000,000.00) per occurrence combined single limit including products, completed operations, contractual, bodily injury, personal injury, death and property damage liability, subject to such increases in amount as City may reasonably require from time to time; provided, that the percentage increase in coverage shall not be required to exceed the percentage increase in the Consumer Price Index published by the United States Department of Labor, Bureau of Labor Statistics, for Urban Wage Earners and Clerical Workers, Los Angeles-Long Beach-Anaheim Average, All Items (1984 = 100) (the “Index”), from and after the date of this Agreement, or, if said Index is discontinued, such official index as may then be in existence and which is most nearly equivalent to said Index (the “CPI Adjustment”). Unless otherwise approved in advance by the City, the insurance to be provided by Owner may provide for a deductible or self-insured retention of not more than Twenty-Five Thousand Dollars ($25,000.00), with such maximum amount to increase at the same rate as the periodic increases in the minimum amount of total insurance coverage set forth above. City and its officers, officials, members, employees, volunteers, agents, and 96 Item 7. 10 representatives shall be named as additional insureds under such policy or policies. ii. With respect to the improvements and any fixtures and furnishings to be owned or leased by Owner on the Property, all risk property insurance against fire, vandalism, and malicious mischief, and such other additional perils, hazards, and risks as now are or may be included in the standard “all risk” form in general use in Riverside County, California, with the standard form fire insurance coverage in an amount equal to full actual replacement cost thereof, as the same may change from time to time. City shall be a loss payee under such policy or policies and such insurance shall contain a replacement cost endorsement. 12.2 Policy Requirements. A copy of each paid-up policy evidencing such insurance (appropriately authenticated by the insurer) or a certificate of the insurer, certifying that such policy has been issued, providing the coverage required herein, and containing the provisions specified herein, shall be delivered to City on or prior to the date specified in Section 12 above, and thereafter, upon renewals, not less than thirty (30) days prior to the expiration of coverage. City may, at any time, and from time to time, inspect and/or copy any and all insurance policies required to be procured by Owner hereunder. In no event shall the limits of any policy be considered as limiting the liability of Owner hereunder. In addition to the requirements set forth in Section 12.1, each insurance policy required to be carried by Owner pursuant to this Agreement: i. shall be primary insurance and not contributory with any other insurance which City or its officers, officials, members, employees, volunteers, agents, or representatives may have; ii. shall contain no special limitations on the scope of protection afforded to City or its officers, officials, members, employees, volunteers, agents, and representatives; iii. shall be “per occurrence” rather than “claims made” insurance; iv. shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability; v. shall provide that the policy will not be cancelled by the insurer or Owner unless there is a minimum of thirty (30) days (10 days for nonpayment of premium) prior written notice by certified mail, return receipt requested to City; vi. shall be written by a California licensed insurer with a Best rating of not less than A:VII; vii. shall be endorsed to state that any failure to comply with the reporting 97 Item 7. 11 provisions of the policies shall not affect coverage provided to City and its officers, officials, members, employees, volunteers, agents, and representatives; and viii. shall contain a waiver by the insurer of any right to subrogation against City, and its officers, officials, members, employees, volunteers, agents, and representatives which arises or might arise by reason of any payment under such policy or policies or by reason of any act or omission of City or its officers, officials, members, employees, agents, or representatives. 13. Repair of Damage. If any improvements on the Property shall be totally or partially destroyed or rendered wholly or partly uninhabitable by fire or other casualty, Owner shall promptly proceed to obtain insurance proceeds and provided the insurance proceeds are sufficient to restore the Property and the insurance proceeds are made available therefor by the secured lenders, take all steps necessary to begin reconstruction and, immediately upon receipt of insurance proceeds, to promptly and diligently commence the repair or replacement of the improvements to substantially the same condition as the improvements are required to be maintained pursuant to this Agreement, and Owner shall complete the same as soon as possible thereafter so that the Project can continue to be operated and occupied in accordance with this Agreement. In no event shall the repair, replacement, or restoration period exceed one year from the date of the destruction subject to events of force majeure unless City, in its sole and absolute discretion, approves a longer period of time; provided however, that to the extent there are delays caused by the City or any other governmental agency in processing permits, inspections or any other City police power responsibilities, or there are delays by the insurance company in processing and providing payment for a claim, each day of delay shall extend the time period by one day in which Owner shall carry out its obligations pursuant to this section. Nothing in this Section 13 is or shall be deemed to be a waiver or delegation away of any of City’s police power and ability to enforce the law, policies, and regulations enacted pursuant thereto, including but not limited to the City’s power and procedures to issue permits, conduct inspections, or any other police power responsibility that applies to the Property and Project. 14. Defaults and Remedies. 14.1 Defaults. Failure or delay by any Party to perform any term or provision of this Agreement which is not cured within thirty (30) days after receipt of notice from the other Party specifying the default (or such other period specifically provided herein) constitutes a default under this Agreement; provided, however, if such default is of the nature requiring more than thirty (30) days to cure, the defaulting Party shall avoid default hereunder by commencing to cure within such thirty (30) day period, and thereafter diligently pursuing such cure to completion within an additional sixty (60) days following the conclusion of such thirty (30) day period (for a total of ninety (90) days). Except as required to protect against further damages, the injured Party may not institute proceedings against the Party in default until the time for cure has expired. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. City hereby agrees to accept any cure offered by any limited partner of or lender to Developer on the same basis as if such cure were offered by Developer. 98 Item 7. 12 14.2 Rights and Remedies are Cumulative. The rights and remedies of the Parties are cumulative, and the exercise by either Party of one or more of its rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party. 15. Miscellaneous. 15.1 Entire Agreement. This Agreement and the Density Bonus Agreement and all of the exhibits and attachments thereto set forth and contain the entire understanding and agreement of the Parties, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements which are not contained or expressly referred to herein or therein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement. 15.2 Attorneys’ Fees and Costs. If either Party to this Agreement commences an action against the other Party to this Agreement to interpret or enforce this Agreement, the prevailing Party shall be entitled to recover reasonable attorneys’ fees, expert witness fees, costs of investigation, and costs of suit from the losing Party. 15.3 [Intentionally deleted.] 15.4 Interpretation; Governing Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California without regard to conflict of law principles. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall not be employed in interpreting this Agreement, all Parties having been represented by counsel in the negotiation and preparation hereof. 15.5 Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, the remainder of this Agreement shall not be affected thereby to the extent such remaining provisions are not rendered impractical to perform, taking into consideration the purposes of this Agreement. 15.6 Third Party Beneficiaries. No person or entity, other than City and Owner, shall have any right of action based upon any provision of this Agreement. 15.7 Notices. 15.7.1 Delivery. As used in this Agreement, “notice” includes, but is not limited to, the communication of notice, request, demand, approval, statement, report, acceptance, consent, waiver, appointment or other communication required or permitted hereunder. All notices shall be in writing and shall be considered given either: (i) when delivered in person to the recipient named below; or (ii) on the date of delivery shown on the return receipt, after deposit in the United States mail in a sealed envelope as either registered or certified mail 99 Item 7. 13 with return receipt requested, and postage and postal charges prepaid, and addressed to the recipient named below; or (iii) two (2) days after deposit in the United States mail in a sealed envelope, first class mail and postage prepaid, and addressed to the recipient named below; or (iv) one (1) day after deposit with a known and reliable next-day document delivery service (such as Fed Ex), charges prepaid and delivery scheduled next-day to the recipient named below, provided that the sending party receives a confirmation of delivery from the delivery service provider; or (v) the first business day following the date of transmittal of any facsimile, provided confirmation of successful transmittal is retained by the sending Party. All notices shall be addressed as follows: If to City: City of Beaumont 550 East Sixth Street Beaumont, CA 92223 Attn: Director of Director of Planning Phone No: (951) 769-8518 Facsimile No: (951) 769-8526 With a copy to: Slovak Baron Empey Murphy & Pinkney LLP 1800 East Tahquitz Canyon Way Palm Springs, CA 92262 Phone No: (760) 322-2275 Facsimile No: (760) 322-2107 If to Developer: LINC-Beaumont 2 APTS LP 555 E. Ocean Blvd, Suite 900 Long Beach, CA 90802 Attn: President Phone No: (562) 684-1120 Facsimile No: (562) 684-1137 100 Item 7. 14 With a copy to: Gubb & Barshay LLP 505 14th Street, Suite 450 Oakland, CA 94612 Attn: Lauren Fechter Phone: 415 781-6600 Facsimile: 415 781-6967 lfechter@gubbandbarshay.com With a copy to: c/o Raymond James Tax Credit Funds, Inc. 880 Carillon Parkway St. Petersburg, Florida 33716 Attention: Steven J. Kropf, President and: PNC BANK, NATIONAL ASSOCIATION 101 South Fifth Street, 7th Floor Mailstop K1-K201-07-4 Louisville, Kentucky 40202 Attn: Loan Administration 15.7.2 Change of Address. Either Party may, by notice given at any time, require subsequent notices to be given to another person or entity, whether a party or an officer or representative of a party, or to a different address, or both. Notices given before actual receipt of notice of change shall not be invalidated by the change. 15.8 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement. 15.9 Singular and Plural. As used herein, the singular of any word includes the plural, and vice versa, as context so dictates. Masculine, feminine, and neuter forms of any word include the other as context so dictates. 15.10 Joint and Several Obligations. If at any time during the term of this Agreement the Property and/or Project is owned, in whole or in part, by more than one Owner, all obligations of such Owner under this Agreement shall be joint and several, and the default of any such Owner shall be the default of all such Owners. 15.11 Computation of Days. Unless otherwise specified in this Agreement or any attachment hereto, use of the term “days” shall mean calendar days. For purposes of this Agreement and all attachments hereto, “business days” shall mean every day of the week except Saturdays, Sundays, and official State holidays as recognized in Government Code Section 19853(a) or successor statute. 15.12 Waiver. Failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Party, or the failure by a Party to exercise its rights upon 101 Item 7. 15 the default of the other Party, shall not constitute a waiver of such Party’s right to insist and demand strict compliance by the other Party with the terms of this Agreement thereafter. 15.13 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the Party benefited thereby of the covenants to be performed hereunder by such benefited Party. 15.14 Successors in Interest. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all permitted successors in interest to the Parties to this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land. Each covenant to do or refrain from doing some act hereunder with regard to development of the Property: (a) is for the benefit of and is a burden upon every portion of the Property; (b) runs with the Property and each portion thereof; and (c) is binding upon each Party and each successor in interest approved pursuant to this Agreement during ownership of the Property or any portion thereof. 15.15 Jurisdiction and Venue. Any action at law or in equity arising under this Agreement or brought by a Party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Riverside, State of California, and the Parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court. 15.16 Further Actions and Instruments. Each of the Parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and the satisfaction of the conditions of this Agreement. Upon the request of either Party at any time, the other Party shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or to evidence or consummate the transactions contemplated by this Agreement. City hereby authorizes City Manager to take such other actions and negotiate and execute any additional agreements as may be necessary or proper to fulfill the City’s obligations under this Agreement. The City Manager may delegate her or his powers and duties under this Agreement to an authorized management level employee of the City. 15.17 Covenants Run with the Land. The Property shall be held, sold, conveyed, hypothecated, encumbered, used, occupied and improved subject to the covenants, conditions, and restrictions set forth herein. The covenants, conditions, restrictions, reservations, equitable servitudes, liens and charges set forth in this Agreement shall run with the Property and shall be binding upon Owner and all persons having any right, title or interest in the Property, or any part thereof, their heirs, and successive owners and assigns, shall inure to the benefit of City and its successors and assigns, and may be enforced by City and its successors and assigns. The covenants established in this Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of City and its successors and assigns, and the parties hereto expressly agree that this Agreement and the covenants herein shall run in favor of City, without regard to whether City is or remains an owner of any land or interest therein to which such covenants relate. Furthermore, all of the covenants, conditions, and restrictions contained herein 102 Item 7. 16 shall also constitute easements in gross running in favor of City. City is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own right and for the purposes of protecting the interests of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided. Owner hereby declares its understanding and intent that the burden of the covenants set forth herein touch and concern the land and that the Owner’s interest in the Property is rendered less valuable thereby. Owner hereby further declares its understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the enjoyment and use of the Property by the citizens of City and by furthering the health, safety, and welfare of the residents of City. 15.18 Subordination. City’s approval of the necessary land use entitlements that authorize Owner to develop, operate, and maintain the Project was based upon Owner’s obligation to provide the Affordable Units pursuant to the State Density Bonus Law and the terms and conditions of this Agreement. For the Density Bonus Agreement Term, this Agreement and the Density Bonus Agreement shall have priority over any and all mortgages, deeds of trust, and other similar forms of secured financing recorded against the Property or any portion thereof. Owner expressly understands and acknowledges that state law requires preservation of affordability covenants in connection with the approval of this density bonus project. 15.19 Authority to Execute. The person or persons executing this Agreement on behalf of each Party warrants and represents that he or she/they have the authority to execute this Agreement on behalf of his or her/their corporation, partnership or business entity and warrants and represents that he or she/they has/have the authority to bind the Party to the performance of its obligations hereunder. 15.20 Counterparts. This Agreement may be executed in two or more separate counterparts, each of which, when so executed, shall be deemed to be an original. Such counterparts shall, together, constitute and shall be one and the same instrument. This Agreement shall not be effective until the execution and delivery by the Parties of at least one set of counterparts. The Parties hereunder authorize each other to detach and combine original signature pages and consolidate them into a single identical original. Any one of such completely executed counterparts shall be sufficient proof of this Agreement. 15.21 Force Majeure. Neither party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by floods, earthquakes, other Acts of God, pandemics, fires, wars, riots or similar hostilities, strikes and other labor difficulties beyond the Party’s control (including the Party’s employment force), court actions (such as restraining orders or injunctions), or other causes beyond the Party’s control, including delays by any governmental entity (although the City may not benefit from this provision for a delay that results from City’s failure to perform its obligations under this Agreement), or an insurance company of either party. If any such events shall occur, the term of this Agreement and the time for performance by either Party of any of its obligations hereunder may be extended by the written agreement of the Parties for the period of time that such events prevented such performance. [signatures on next page] 103 Item 7. 17 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the day and year set forth in the preamble above. “CITY” CITY OF BEAUMONT California municipal corporation By: _______________________________ Mike Lara, Mayor ATTEST: ________________________ City Clerk APPROVED AS TO FORM: SLOVAK BARON EMPEY MURPHY & PINKNEY LLP __________________________ City Attorney 104 Item 7. 18 “DEVELOPER” LINC-Beaumont 2 Apts LP, a California limited partnership By: LINC-Beaumont 2 Apts LLC, a California limited liability company, its managing general partner By: LINC Housing Corporation, a California nonprofit public benefit corporation, its sole member and manager By: _________________________ Anne Wilson, Chief Real Estate Development Officer By: Riverside Community Housing Corp., a California nonprofit public benefit corporation, its administrative general partner By: Carrie Harmon, Chief Operating Officer 105 Item 7. 19 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) ) ss: COUNTY OF ____________ ) On _____________________ before me, _______________________________, a Notary Public personally appeared ____________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature__________________________ A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 106 Item 7. 20 STATE OF CALIFORNIA ) ) ss: COUNTY OF ____________ ) On _____________________ before me, _______________________________, a Notary Public personally appeared ____________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature__________________________ 107 Item 7. 1 ATTACHMENT A To Regulatory Agreement LEGAL DESCRIPTION OF PROPERTY 108 Item 7. 2 RECORDED AT THE REQUEST OF AND WHEN RECORDED RETURN TO: City of Beaumont 550 East Sixth Street Beaumont, CA 92223 Attn: Director of Director of Planning (SPACE ABOVE THIS LINE FOR RECORDER’S USE) This Termination Release of Regulatory Agreement is recorded at the request and for the benefit of the City of Beaumont and is exempt from the payment of a recording fee pursuant to Government Code Sections 6103 and 27383. TERMINATION AND RELEASE OF REGULATORY AGREEMENT This TERMINATION AND RELEASE OF REGULATORY AGREEMENT (the “Termination and Release of Regulatory Agreement”) is being entered into by and between (i) the CITY OF BEAUMONT, a California municipal corporation (hereinafter “City”), and (ii) LINC-BEAUMONT 2 APTS LP, a California limited partnership (hereinafter “Owner”). City and Owner are hereinafter sometimes referred to collectively as the “Parties” and individually as a “Party.” RECITALS: A. Owner is the owner in fee of that certain real property located in the City of Beaumont, County of Riverside, State of California, more particularly described in the legal description attached hereto as Exhibit No. 1 (the “Property”) and incorporated by this reference. B. On or about ___________, Owner and City entered into that certain Density Bonus Housing Agreement (the “Density Bonus Agreement”) relating to the Property. The Density Bonus Agreement is a public record and is available for inspection and copying in the office of the City Clerk of City located at 550 East Sixth Street, City Beaumont, County of Riverside, State of California. Any capitalized terms not defined herein shall have the meanings ascribed to such terms in the Density Bonus Agreement. C. The Owner has developed on the Property a 48-unit affordable rental residential community (the “Project”). Pursuant to a City condition of approval for the Project and the Density Bonus Agreement, Owner was required to develop eight (8) of said units (the “Affordable Units”) to be rented at Affordable Rent to Eligible Households. D. Pursuant to the Density Bonus Agreement, Owner was required to execute and record that certain Regulatory Agreement and Declaration of Covenants and Restrictions (the “Regulatory Agreement”), recorded on ____________ 2021, as Instrument No.____________ of the Official Records for Riverside County, California. The Regulatory Agreement was recorded against the Property, to provide constructive notice thereof to any successors or assigns of Owner’s 109 Item 7. 3 fee interest of the Property, and to memorialize and impose the restrictive covenants, including the affordability covenants that eight (8) Units were to be rented at Affordable Rent to Eligible Households during the Density Bonus Agreement Term. E. Pursuant to the Density Bonus Agreement and the Regulatory Agreement, after the expiration of the Density Bonus Agreement Term, Owner and City are required to execute and record or cause to be executed and recorded for the benefit of the Property this Termination and Release of Regulatory Agreement, whereupon the Property and Project would be released from the terms and conditions of the Regulatory Agreement, and Owner would be released from its obligations under the Density Bonus Agreement. COVENANTS: Based upon the foregoing Recitals, which are incorporated herein by this reference, and for good and valuable consideration, the receipt and sufficiency of which is acknowledged by both parties, Owner and City agree as follows: 1. From and after the date that this Termination and Release of Regulatory Agreement is recorded, neither the Property nor the Project shall be bound or burdened by any of the provisions set forth in the Regulatory Agreement. 2. City shall cooperate in executing any further or additional documents, in recordable form if necessary, as may be reasonably requested by any existing or prospective owner or holder of a mortgage or deed of trust of, in, or to any of the Property and/or Project to confirm said Termination and Release of Regulatory Agreement. The form of any such additional documents shall be prepared by such existing or prospective owner or holder at no cost to City, and shall be in a form approved by the City Attorney. 3. City does hereby certify that the Density Bonus Agreement Term has expired, and that the Property is hereby released from any further obligations set forth in the Density Bonus Agreement. 4. This Termination and Release of Regulatory Agreement shall not constitute evidence of compliance with or satisfaction of any obligation of Owner to any holder of a mortgage, or any insurer of a mortgage, securing money loaned to finance the construction of the Project on the Property or any part thereof or operation of the Project. [signatures on next page] 110 Item 7. 4 IN WITNESS WHEREOF, City has executed this Termination and Release of Regulatory Agreement as of this _____day of ________________, _____. CITY OF BEAUMONT, a California municipal corporation By: _______________________________________ Mike Lara, Mayor ATTEST: ________________________ City Clerk APPROVED AS TO FORM: _______________________________ __________________________ City Attorney 111 Item 7. 5 “DEVELOPER” LINC-BEAUMONT 2 APTS LP, a California limited partnership By: LINC-Beaumont 2 APTS LLC, a California limited liability company, its managing general partner By: LINC Housing Corporation, a California nonprofit public benefit corporation, its sole member and manager By: ________________________ Anne Wilson, Chief Real Estate Development Officer By: Riverside Community Housing Corp., a California nonprofit public benefit corporation, its administrative general partner By: Carrie Harmon, Chief Operating Officer 112 Item 7. 6 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) ) ss: COUNTY OF ____________ ) On _____________________ before me, _______________________________, a Notary Public personally appeared ____________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature__________________________ A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 113 Item 7. 7 STATE OF CALIFORNIA ) ) ss: COUNTY OF ____________ ) On _____________________ before me, _______________________________, a Notary Public personally appeared ____________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature__________________________ 114 Item 7. 8 ATTACHMENT A TO TERMINATION AND RELEASE OF REGULATORY AGREEMENT LEGAL DESCRIPTION OF PROPERTY 115 Item 7. ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: PARCEL 1 OF PARCEL MAP NO. 26990, IN THE CITY OF BEAUMONT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 172, PAGES 65 AND 66 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. ASSESSOR’S PARCEL NUMBER:419-150-050 116 Item 7. 117 Item 7. Issue / DescriptionDateNo.IT IS THE CLIENTS RESPONSIBILITY PRIOR TO OR DURING CONSTRUCTION TO NOTIFY THE ARCHITECTIN WRITING OF ANY PERCEIVED ERRORS OR OMISSIONS IN THE PLANS AND SPECIFICATIONS OF WHICHA CONTRACTOR THOROUGHLY KNOWLEDGEABLE WITH THE BUILDING CODES AND METHODS OFCONSTRUCTION SHOULD REASONABLY BE AWARE. WRITTEN INSTRUCTIONS ADDRESSING SUCHPERCEIVED ERRORS OR OMISSIONS SHALL BE RECEIVED FROM THE ARCHITECT PRIOR TO THECLIENT OR CLIENTS SUBCONTRACTORS PROCEEDING WITH THE WORK. THE CLIENT WILL BERESPONSIBLE FOR ANY DEFECTS IN CONSTRUCTION IF THESE PROCEDURES ARE NOT FOLLOWED.09.23.2019SHEET TITLE:SHEET NO:555 E. OCEAN BLVD., STE. 900LICENSE STAMP:PRINCIPAL:PROJECT MANAGER:DAVID R. MALDONADOBRIAN WELLERPLANNING DEPT. SUBMITTAL03.25.201907.13.2019LONG BEACH, CA 90802ALLEGHENY APTS. ALLEGHENY STREETPLANNING COMMENTSBEAUMONT, CAPLANNING DEPT. SUBMITTALALLEGHENY APARTMENTSALLEGHENY STREETBEAUMONT, CAAPN: 419-150-050118Item 7. 19'-0" TYP. 26'-0" TYP.9'-0"TYP.R2 0 ' - 0 " TYP .25'-11"15'-0"BUILDING TYPE 'A'BUILDING TYPE 'B'25'-3"7'-0" 11'-5" 9'-0" 7'-0"6'-1"ABCEDIssue / DescriptionDateNo.IT IS THE CLIENTS RESPONSIBILITY PRIOR TO OR DURING CONSTRUCTION TO NOTIFY THE ARCHITECTIN WRITING OF ANY PERCEIVED ERRORS OR OMISSIONS IN THE PLANS AND SPECIFICATIONS OF WHICHA CONTRACTOR THOROUGHLY KNOWLEDGEABLE WITH THE BUILDING CODES AND METHODS OFCONSTRUCTION SHOULD REASONABLY BE AWARE. WRITTEN INSTRUCTIONS ADDRESSING SUCHPERCEIVED ERRORS OR OMISSIONS SHALL BE RECEIVED FROM THE ARCHITECT PRIOR TO THECLIENT OR CLIENTS SUBCONTRACTORS PROCEEDING WITH THE WORK. THE CLIENT WILL BERESPONSIBLE FOR ANY DEFECTS IN CONSTRUCTION IF THESE PROCEDURES ARE NOT FOLLOWED.09.23.2019SHEET TITLE:SHEET NO:555 E. OCEAN BLVD., STE. 900LICENSE STAMP:PRINCIPAL:PROJECT MANAGER:DAVID R. MALDONADOBRIAN WELLERPLANNING DEPT. SUBMITTAL03.25.201907.13.2019LONG BEACH, CA 90802ALLEGHENY APTS. ALLEGHENY STREETPLANNING COMMENTSBEAUMONT, CAPLANNING DEPT. SUBMITTALINDICATES ACCESSIBLE PATH OF TRAVELCONNECTING PUBLIC ROW, BUILDING AND ACCESSIBLEPARKINGINDICATES BUILDING FOOTPRINT AT FIRST FLOORRESIDENTIAL (100% ON-SITE RESTRICTED AFFORDABLE)REQUIRED:24 (.5/UNIT)PROVIDED:28INDICATES OPEN SPACE AREAS (SEE TABLE ON THIS PAGE)X119Item 7. Issue / DescriptionDateNo.IT IS THE CLIENTS RESPONSIBILITY PRIOR TO OR DURING CONSTRUCTION TO NOTIFY THE ARCHITECTIN WRITING OF ANY PERCEIVED ERRORS OR OMISSIONS IN THE PLANS AND SPECIFICATIONS OF WHICHA CONTRACTOR THOROUGHLY KNOWLEDGEABLE WITH THE BUILDING CODES AND METHODS OFCONSTRUCTION SHOULD REASONABLY BE AWARE. WRITTEN INSTRUCTIONS ADDRESSING SUCHPERCEIVED ERRORS OR OMISSIONS SHALL BE RECEIVED FROM THE ARCHITECT PRIOR TO THECLIENT OR CLIENTS SUBCONTRACTORS PROCEEDING WITH THE WORK. THE CLIENT WILL BERESPONSIBLE FOR ANY DEFECTS IN CONSTRUCTION IF THESE PROCEDURES ARE NOT FOLLOWED.09.23.2019SHEET TITLE:SHEET NO:555 E. OCEAN BLVD., STE. 900LICENSE STAMP:PRINCIPAL:PROJECT MANAGER:DAVID R. MALDONADOBRIAN WELLERPLANNING DEPT. SUBMITTAL03.25.201907.13.2019LONG BEACH, CA 90802ALLEGHENY APTS. ALLEGHENY STREETPLANNING COMMENTSBEAUMONT, CAPLANNING DEPT. SUBMITTAL120Item 7. Issue / DescriptionDateNo.IT IS THE CLIENTS RESPONSIBILITY PRIOR TO OR DURING CONSTRUCTION TO NOTIFY THE ARCHITECTIN WRITING OF ANY PERCEIVED ERRORS OR OMISSIONS IN THE PLANS AND SPECIFICATIONS OF WHICHA CONTRACTOR THOROUGHLY KNOWLEDGEABLE WITH THE BUILDING CODES AND METHODS OFCONSTRUCTION SHOULD REASONABLY BE AWARE. WRITTEN INSTRUCTIONS ADDRESSING SUCHPERCEIVED ERRORS OR OMISSIONS SHALL BE RECEIVED FROM THE ARCHITECT PRIOR TO THECLIENT OR CLIENTS SUBCONTRACTORS PROCEEDING WITH THE WORK. THE CLIENT WILL BERESPONSIBLE FOR ANY DEFECTS IN CONSTRUCTION IF THESE PROCEDURES ARE NOT FOLLOWED.09.23.2019SHEET TITLE:SHEET NO:555 E. OCEAN BLVD., STE. 900LICENSE STAMP:PRINCIPAL:PROJECT MANAGER:DAVID R. MALDONADOBRIAN WELLERPLANNING DEPT. SUBMITTAL03.25.201907.13.2019LONG BEACH, CA 90802ALLEGHENY APTS. ALLEGHENY STREETPLANNING COMMENTSBEAUMONT, CAPLANNING DEPT. SUBMITTAL121Item 7. PLAN 2PLAN 2PLAN 2PLAN 2PLAN 3PLAN 3PLAN 3PLAN 3COMMUNITY ROOMIssue / DescriptionDateNo.IT IS THE CLIENTS RESPONSIBILITY PRIOR TO OR DURING CONSTRUCTION TO NOTIFY THE ARCHITECTIN WRITING OF ANY PERCEIVED ERRORS OR OMISSIONS IN THE PLANS AND SPECIFICATIONS OF WHICHA CONTRACTOR THOROUGHLY KNOWLEDGEABLE WITH THE BUILDING CODES AND METHODS OFCONSTRUCTION SHOULD REASONABLY BE AWARE. WRITTEN INSTRUCTIONS ADDRESSING SUCHPERCEIVED ERRORS OR OMISSIONS SHALL BE RECEIVED FROM THE ARCHITECT PRIOR TO THECLIENT OR CLIENTS SUBCONTRACTORS PROCEEDING WITH THE WORK. THE CLIENT WILL BERESPONSIBLE FOR ANY DEFECTS IN CONSTRUCTION IF THESE PROCEDURES ARE NOT FOLLOWED.09.23.2019SHEET TITLE:SHEET NO:555 E. OCEAN BLVD., STE. 900LICENSE STAMP:PRINCIPAL:PROJECT MANAGER:DAVID R. MALDONADOBRIAN WELLERPLANNING DEPT. SUBMITTAL03.25.201907.13.2019LONG BEACH, CA 90802ALLEGHENY APTS. ALLEGHENY STREETPLANNING COMMENTSBEAUMONT, CAPLANNING DEPT. SUBMITTAL122Item 7. Issue / DescriptionDateNo.IT IS THE CLIENTS RESPONSIBILITY PRIOR TO OR DURING CONSTRUCTION TO NOTIFY THE ARCHITECTIN WRITING OF ANY PERCEIVED ERRORS OR OMISSIONS IN THE PLANS AND SPECIFICATIONS OF WHICHA CONTRACTOR THOROUGHLY KNOWLEDGEABLE WITH THE BUILDING CODES AND METHODS OFCONSTRUCTION SHOULD REASONABLY BE AWARE. WRITTEN INSTRUCTIONS ADDRESSING SUCHPERCEIVED ERRORS OR OMISSIONS SHALL BE RECEIVED FROM THE ARCHITECT PRIOR TO THECLIENT OR CLIENTS SUBCONTRACTORS PROCEEDING WITH THE WORK. THE CLIENT WILL BERESPONSIBLE FOR ANY DEFECTS IN CONSTRUCTION IF THESE PROCEDURES ARE NOT FOLLOWED.09.23.2019SHEET TITLE:SHEET NO:555 E. OCEAN BLVD., STE. 900LICENSE STAMP:PRINCIPAL:PROJECT MANAGER:DAVID R. MALDONADOBRIAN WELLERPLANNING DEPT. SUBMITTAL03.25.201907.13.2019LONG BEACH, CA 90802ALLEGHENY APTS. ALLEGHENY STREETPLANNING COMMENTSBEAUMONT, CAPLANNING DEPT. SUBMITTAL123Item 7. 124 Item 7. PLAN 2PLAN 2PLAN 2PLAN 2PLAN 3PLAN 3PLAN 3PLAN 3Issue / DescriptionDateNo.IT IS THE CLIENTS RESPONSIBILITY PRIOR TO OR DURING CONSTRUCTION TO NOTIFY THE ARCHITECTIN WRITING OF ANY PERCEIVED ERRORS OR OMISSIONS IN THE PLANS AND SPECIFICATIONS OF WHICHA CONTRACTOR THOROUGHLY KNOWLEDGEABLE WITH THE BUILDING CODES AND METHODS OFCONSTRUCTION SHOULD REASONABLY BE AWARE. WRITTEN INSTRUCTIONS ADDRESSING SUCHPERCEIVED ERRORS OR OMISSIONS SHALL BE RECEIVED FROM THE ARCHITECT PRIOR TO THECLIENT OR CLIENTS SUBCONTRACTORS PROCEEDING WITH THE WORK. THE CLIENT WILL BERESPONSIBLE FOR ANY DEFECTS IN CONSTRUCTION IF THESE PROCEDURES ARE NOT FOLLOWED.09.23.2019SHEET TITLE:SHEET NO:555 E. OCEAN BLVD., STE. 900LICENSE STAMP:PRINCIPAL:PROJECT MANAGER:DAVID R. MALDONADOBRIAN WELLERPLANNING DEPT. SUBMITTAL03.25.201907.13.2019LONG BEACH, CA 90802ALLEGHENY APTS. ALLEGHENY STREETPLANNING COMMENTSBEAUMONT, CAPLANNING DEPT. SUBMITTAL125Item 7. Issue / DescriptionDateNo.IT IS THE CLIENTS RESPONSIBILITY PRIOR TO OR DURING CONSTRUCTION TO NOTIFY THE ARCHITECTIN WRITING OF ANY PERCEIVED ERRORS OR OMISSIONS IN THE PLANS AND SPECIFICATIONS OF WHICHA CONTRACTOR THOROUGHLY KNOWLEDGEABLE WITH THE BUILDING CODES AND METHODS OFCONSTRUCTION SHOULD REASONABLY BE AWARE. WRITTEN INSTRUCTIONS ADDRESSING SUCHPERCEIVED ERRORS OR OMISSIONS SHALL BE RECEIVED FROM THE ARCHITECT PRIOR TO THECLIENT OR CLIENTS SUBCONTRACTORS PROCEEDING WITH THE WORK. THE CLIENT WILL BERESPONSIBLE FOR ANY DEFECTS IN CONSTRUCTION IF THESE PROCEDURES ARE NOT FOLLOWED.09.23.2019SHEET TITLE:SHEET NO:555 E. OCEAN BLVD., STE. 900LICENSE STAMP:PRINCIPAL:PROJECT MANAGER:DAVID R. MALDONADOBRIAN WELLERPLANNING DEPT. SUBMITTAL03.25.201907.13.2019LONG BEACH, CA 90802ALLEGHENY APTS. ALLEGHENY STREETPLANNING COMMENTSBEAUMONT, CAPLANNING DEPT. SUBMITTAL126Item 7. 127 Item 7. 128 Item 7. 129 Item 7. 130 Item 7. State of California GOVERNMENT CODE Section 65915 65915. (a) (1) When an applicant seeks a density bonus for a housing development within, or for the donation of land for housing within, the jurisdiction of a city, county, or city and county, that local government shall comply with this section. A city, county, or city and county shall adopt an ordinance that specifies how compliance with this section will be implemented. Except as otherwise provided in subdivision (s), failure to adopt an ordinance shall not relieve a city, county, or city and county from complying with this section. (2) A local government shall not condition the submission, review, or approval of an application pursuant to this chapter on the preparation of an additional report or study that is not otherwise required by state law, including this section. This subdivision does not prohibit a local government from requiring an applicant to provide reasonable documentation to establish eligibility for a requested density bonus, incentives or concessions, as described in subdivision (d), waivers or reductions of development standards, as described in subdivision (e), and parking ratios, as described in subdivision (p). (3) In order to provide for the expeditious processing of a density bonus application, the local government shall do all of the following: (A) Adopt procedures and timelines for processing a density bonus application. (B) Provide a list of all documents and information required to be submitted with the density bonus application in order for the density bonus application to be deemed complete. This list shall be consistent with this chapter. (C) Notify the applicant for a density bonus whether the application is complete in a manner consistent with the timelines specified in Section 65943. (D) (i) If the local government notifies the applicant that the application is deemed complete pursuant to subparagraph (C), provide the applicant with a determination as to the following matters: (I) The amount of density bonus, calculated pursuant to subdivision (f), for which the applicant is eligible. (II) If the applicant requests a parking ratio pursuant to subdivision (p), the parking ratio for which the applicant is eligible. (III) If the applicant requests incentives or concessions pursuant to subdivision (d) or waivers or reductions of development standards pursuant to subdivision (e), whether the applicant has provided adequate information for the local government to make a determination as to those incentives, concessions, or waivers or reductions of development standards. STATE OF CALIFORNIA AUTHENTICATED ELECTRONIC LEGAL MATERIAL 131 Item 7. (ii) Any determination required by this subparagraph shall be based on the development project at the time the application is deemed complete. The local government shall adjust the amount of density bonus and parking ratios awarded pursuant to this section based on any changes to the project during the course of development. (b) (1) A city, county, or city and county shall grant one density bonus, the amount of which shall be as specified in subdivision (f), and, if requested by the applicant and consistent with the applicable requirements of this section, incentives or concessions, as described in subdivision (d), waivers or reductions of development standards, as described in subdivision (e), and parking ratios, as described in subdivision (p), when an applicant for a housing development seeks and agrees to construct a housing development, excluding any units permitted by the density bonus awarded pursuant to this section, that will contain at least any one of the following: (A) Ten percent of the total units of a housing development for lower income households, as defined in Section 50079.5 of the Health and Safety Code. (B) Five percent of the total units of a housing development for very low income households, as defined in Section 50105 of the Health and Safety Code. (C) A senior citizen housing development, as defined in Sections 51.3 and 51.12 of the Civil Code, or a mobilehome park that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the Civil Code. (D) Ten percent of the total dwelling units in a common interest development, as defined in Section 4100 of the Civil Code, for persons and families of moderate income, as defined in Section 50093 of the Health and Safety Code, provided that all units in the development are offered to the public for purchase. (E) Ten percent of the total units of a housing development for transitional foster youth, as defined in Section 66025.9 of the Education Code, disabled veterans, as defined in Section 18541, or homeless persons, as defined in the federal McKinney- Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.). The units described in this subparagraph shall be subject to a recorded affordability restriction of 55 years and shall be provided at the same affordability level as very low income units. (F) (i) Twenty percent of the total units for lower income students in a student housing development that meets the following requirements: (I) All units in the student housing development will be used exclusively for undergraduate, graduate, or professional students enrolled full time at an institution of higher education accredited by the Western Association of Schools and Colleges or the Accrediting Commission for Community and Junior Colleges. In order to be eligible under this subclause, the developer shall, as a condition of receiving a certificate of occupancy, provide evidence to the city, county, or city and county that the developer has entered into an operating agreement or master lease with one or more institutions of higher education for the institution or institutions to occupy all units of the student housing development with students from that institution or institutions. An operating agreement or master lease entered into pursuant to this 132 Item 7. subclause is not violated or breached if, in any subsequent year, there are not sufficient students enrolled in an institution of higher education to fill all units in the student housing development. (II) The applicable 20-percent units will be used for lower income students. For purposes of this clause, “lower income students” means students who have a household income and asset level that does not exceed the level for Cal Grant A or Cal Grant B award recipients as set forth in paragraph (1) of subdivision (k) of Section 69432.7 of the Education Code. The eligibility of a student under this clause shall be verified by an affidavit, award letter, or letter of eligibility provided by the institution of higher education that the student is enrolled in, as described in subclause (I), or by the California Student Aid Commission that the student receives or is eligible for financial aid, including an institutional grant or fee waiver, from the college or university, the California Student Aid Commission, or the federal government shall be sufficient to satisfy this subclause. (III) The rent provided in the applicable units of the development for lower income students shall be calculated at 30 percent of 65 percent of the area median income for a single-room occupancy unit type. (IV) The development will provide priority for the applicable affordable units for lower income students experiencing homelessness. A homeless service provider, as defined in paragraph (3) of subdivision (e) of Section 103577 of the Health and Safety Code, or institution of higher education that has knowledge of a person’s homeless status may verify a person’s status as homeless for purposes of this subclause. (ii) For purposes of calculating a density bonus granted pursuant to this subparagraph, the term “unit” as used in this section means one rental bed and its pro rata share of associated common area facilities. The units described in this subparagraph shall be subject to a recorded affordability restriction of 55 years. (G) One hundred percent of all units in the development, including total units and density bonus units, but exclusive of a manager’s unit or units, are for lower income households, as defined by Section 50079.5 of the Health and Safety Code, except that up to 20 percent of the units in the development, including total units and density bonus units, may be for moderate-income households, as defined in Section 50053 of the Health and Safety Code. (2) For purposes of calculating the amount of the density bonus pursuant to subdivision (f), an applicant who requests a density bonus pursuant to this subdivision shall elect whether the bonus shall be awarded on the basis of subparagraph (A), (B), (C), (D), (E), (F), or (G) of paragraph (1). (3) For the purposes of this section, “total units,” “total dwelling units,” or “total rental beds” does not include units added by a density bonus awarded pursuant to this section or any local law granting a greater density bonus. (c) (1) (A) An applicant shall agree to, and the city, county, or city and county shall ensure, the continued affordability of all very low and low-income rental units that qualified the applicant for the award of the density bonus for 55 years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program. 133 Item 7. (B) (i) Except as otherwise provided in clause (ii), rents for the lower income density bonus units shall be set at an affordable rent, as defined in Section 50053 of the Health and Safety Code. (ii) For housing developments meeting the criteria of subparagraph (G) of paragraph (1) of subdivision (b), rents for all units in the development, including both base density and density bonus units, shall be as follows: (I) The rent for at least 20 percent of the units in the development shall be set at an affordable rent, as defined in Section 50053 of the Health and Safety Code. (II) The rent for the remaining units in the development shall be set at an amount consistent with the maximum rent levels for a housing development that receives an allocation of state or federal low-income housing tax credits from the California Tax Credit Allocation Committee. (2) An applicant shall agree to, and the city, county, or city and county shall ensure that, the initial occupant of all for-sale units that qualified the applicant for the award of the density bonus are persons and families of very low, low, or moderate income, as required, and that the units are offered at an affordable housing cost, as that cost is defined in Section 50052.5 of the Health and Safety Code. The local government shall enforce an equity sharing agreement, unless it is in conflict with the requirements of another public funding source or law. The following apply to the equity sharing agreement: (A) Upon resale, the seller of the unit shall retain the value of any improvements, the downpayment, and the seller’s proportionate share of appreciation. The local government shall recapture any initial subsidy, as defined in subparagraph (B), and its proportionate share of appreciation, as defined in subparagraph (C), which amount shall be used within five years for any of the purposes described in subdivision (e) of Section 33334.2 of the Health and Safety Code that promote home ownership. (B) For purposes of this subdivision, the local government’s initial subsidy shall be equal to the fair market value of the home at the time of initial sale minus the initial sale price to the moderate-income household, plus the amount of any downpayment assistance or mortgage assistance. If upon resale the market value is lower than the initial market value, then the value at the time of the resale shall be used as the initial market value. (C) For purposes of this subdivision, the local government’s proportionate share of appreciation shall be equal to the ratio of the local government’s initial subsidy to the fair market value of the home at the time of initial sale. (3) (A) An applicant shall be ineligible for a density bonus or any other incentives or concessions under this section if the housing development is proposed on any property that includes a parcel or parcels on which rental dwelling units are or, if the dwelling units have been vacated or demolished in the five-year period preceding the application, have been subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income; subject to any other form of rent or price control through a public entity’s valid exercise of its police power; or occupied by lower or very low income households, unless the proposed housing development replaces those units, and either of the following applies: 134 Item 7. (i) The proposed housing development, inclusive of the units replaced pursuant to this paragraph, contains affordable units at the percentages set forth in subdivision (b). (ii) Each unit in the development, exclusive of a manager’s unit or units, is affordable to, and occupied by, either a lower or very low income household. (B) For the purposes of this paragraph, “replace” shall mean either of the following: (i) If any dwelling units described in subparagraph (A) are occupied on the date of application, the proposed housing development shall provide at least the same number of units of equivalent size to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be rebuttably presumed that lower income renter households occupied these units in the same proportion of lower income renter households to all renter households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Development’s Comprehensive Housing Affordability Strategy database. For unoccupied dwelling units described in subparagraph (A) in a development with occupied units, the proposed housing development shall provide units of equivalent size to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as the last household in occupancy. If the income category of the last household in occupancy is not known, it shall be rebuttably presumed that lower income renter households occupied these units in the same proportion of lower income renter households to all renter households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Development’s Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. If the replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction for at least 55 years. If the proposed development is for-sale units, the units replaced shall be subject to paragraph (2). (ii) If all dwelling units described in subparagraph (A) have been vacated or demolished within the five-year period preceding the application, the proposed housing development shall provide at least the same number of units of equivalent size as existed at the highpoint of those units in the five-year period preceding the application to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those persons and families in occupancy at that time, if known. If the incomes of the persons and families in occupancy at the highpoint is not known, it shall be rebuttably presumed that low-income and very low income renter households occupied these units in the same proportion of low-income and very low income renter households to all renter households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Development’s Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. If the 135 Item 7. replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction for at least 55 years. If the proposed development is for-sale units, the units replaced shall be subject to paragraph (2). (C) Notwithstanding subparagraph (B), for any dwelling unit described in subparagraph (A) that is or was, within the five-year period preceding the application, subject to a form of rent or price control through a local government’s valid exercise of its police power and that is or was occupied by persons or families above lower income, the city, county, or city and county may do either of the following: (i) Require that the replacement units be made available at affordable rent or affordable housing cost to, and occupied by, low-income persons or families. If the replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction for at least 55 years. If the proposed development is for-sale units, the units replaced shall be subject to paragraph (2). (ii) Require that the units be replaced in compliance with the jurisdiction’s rent or price control ordinance, provided that each unit described in subparagraph (A) is replaced. Unless otherwise required by the jurisdiction’s rent or price control ordinance, these units shall not be subject to a recorded affordability restriction. (D) For purposes of this paragraph, “equivalent size” means that the replacement units contain at least the same total number of bedrooms as the units being replaced. (E) Subparagraph (A) does not apply to an applicant seeking a density bonus for a proposed housing development if the applicant’s application was submitted to, or processed by, a city, county, or city and county before January 1, 2015. (d) (1) An applicant for a density bonus pursuant to subdivision (b) may submit to a city, county, or city and county a proposal for the specific incentives or concessions that the applicant requests pursuant to this section, and may request a meeting with the city, county, or city and county. The city, county, or city and county shall grant the concession or incentive requested by the applicant unless the city, county, or city and county makes a written finding, based upon substantial evidence, of any of the following: (A) The concession or incentive does not result in identifiable and actual cost reductions, consistent with subdivision (k), to provide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in subdivision (c). (B) The concession or incentive would have a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety or the physical environment or on any real property that is listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact without rendering the development unaffordable to low-income and moderate-income households. (C) The concession or incentive would be contrary to state or federal law. (2) The applicant shall receive the following number of incentives or concessions: (A) One incentive or concession for projects that include at least 10 percent of the total units for lower income households, at least 5 percent for very low income 136 Item 7. households, or at least 10 percent for persons and families of moderate income in a common interest development. (B) Two incentives or concessions for projects that include at least 17 percent of the total units for lower income households, at least 10 percent for very low income households, or at least 20 percent for persons and families of moderate income in a common interest development. (C) Three incentives or concessions for projects that include at least 24 percent of the total units for lower income households, at least 15 percent for very low income households, or at least 30 percent for persons and families of moderate income in a common interest development. (D) Four incentives or concessions for projects meeting the criteria of subparagraph (G) of paragraph (1) of subdivision (b). If the project is located within one-half mile of a major transit stop, the applicant shall also receive a height increase of up to three additional stories, or 33 feet. (3) The applicant may initiate judicial proceedings if the city, county, or city and county refuses to grant a requested density bonus, incentive, or concession. If a court finds that the refusal to grant a requested density bonus, incentive, or concession is in violation of this section, the court shall award the plaintiff reasonable attorney’s fees and costs of suit. Nothing in this subdivision shall be interpreted to require a local government to grant an incentive or concession that has a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon health, safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. Nothing in this subdivision shall be interpreted to require a local government to grant an incentive or concession that would have an adverse impact on any real property that is listed in the California Register of Historical Resources. The city, county, or city and county shall establish procedures for carrying out this section that shall include legislative body approval of the means of compliance with this section. (4) The city, county, or city and county shall bear the burden of proof for the denial of a requested concession or incentive. (e) (1) In no case may a city, county, or city and county apply any development standard that will have the effect of physically precluding the construction of a development meeting the criteria of subdivision (b) at the densities or with the concessions or incentives permitted by this section. Subject to paragraph (3), an applicant may submit to a city, county, or city and county a proposal for the waiver or reduction of development standards that will have the effect of physically precluding the construction of a development meeting the criteria of subdivision (b) at the densities or with the concessions or incentives permitted under this section, and may request a meeting with the city, county, or city and county. If a court finds that the refusal to grant a waiver or reduction of development standards is in violation of this section, the court shall award the plaintiff reasonable attorney’s fees and costs of suit. Nothing in this subdivision shall be interpreted to require a local government to waive or reduce development standards if the waiver or reduction would have a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon health, 137 Item 7. safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. Nothing in this subdivision shall be interpreted to require a local government to waive or reduce development standards that would have an adverse impact on any real property that is listed in the California Register of Historical Resources, or to grant any waiver or reduction that would be contrary to state or federal law. (2) A proposal for the waiver or reduction of development standards pursuant to this subdivision shall neither reduce nor increase the number of incentives or concessions to which the applicant is entitled pursuant to subdivision (d). (3) A housing development that receives a waiver from any maximum controls on density pursuant to clause (ii) of subparagraph (D) of paragraph (3) of subdivision (f) shall only be eligible for a waiver or reduction of development standards as provided in subparagraph (D) of paragraph (2) of subdivision (d) and clause (ii) of subparagraph (D) of paragraph (3) of subdivision (f), unless the city, county, or city and county agrees to additional waivers or reductions of development standards. (f) For the purposes of this chapter, “density bonus” means a density increase over the otherwise maximum allowable gross residential density as of the date of application by the applicant to the city, county, or city and county, or, if elected by the applicant, a lesser percentage of density increase, including, but not limited to, no increase in density. The amount of density increase to which the applicant is entitled shall vary according to the amount by which the percentage of affordable housing units exceeds the percentage established in subdivision (b). (1) For housing developments meeting the criteria of subparagraph (A) of paragraph (1) of subdivision (b), the density bonus shall be calculated as follows: Percentage Low-Income Units 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Percentage Density Bonus 20 21.5 23 24.5 26 27.5 29 30.5 32 33.5 35 38.75 42.5 46.25 50 138 Item 7. (2) For housing developments meeting the criteria of subparagraph (B) of paragraph (1) of subdivision (b), the density bonus shall be calculated as follows: Percentage Very Low Income Units 5 6 7 8 9 10 11 12 13 14 15 Percentage Density Bonus 20 22.5 25 27.5 30 32.5 35 38.75 42.5 46.25 50 (3) (A) For housing developments meeting the criteria of subparagraph (C) of paragraph (1) of subdivision (b), the density bonus shall be 20 percent of the number of senior housing units. (B) For housing developments meeting the criteria of subparagraph (E) of paragraph (1) of subdivision (b), the density bonus shall be 20 percent of the number of the type of units giving rise to a density bonus under that subparagraph. 139 Item 7. (C) For housing developments meeting the criteria of subparagraph (F) of paragraph (1) of subdivision (b), the density bonus shall be 35 percent of the student housing units. (D) For housing developments meeting the criteria of subparagraph (G) of paragraph (1) of subdivision (b), the following shall apply: (i) Except as otherwise provided in clause (ii), the density bonus shall be 80 percent of the number of units for lower income households. (ii) If the housing development is located within one-half mile of a major transit stop, the city, county, or city and county shall not impose any maximum controls on density. (4) For housing developments meeting the criteria of subparagraph (D) of paragraph (1) of subdivision (b), the density bonus shall be calculated as follows: Percentage Moderate-Income Units 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Percentage Density Bonus 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 140 Item 7. 40 35 41 38.75 42 42.5 43 46.25 44 50 (5) All density calculations resulting in fractional units shall be rounded up to the next whole number. The granting of a density bonus shall not require, or be interpreted, in and of itself, to require a general plan amendment, local coastal plan amendment, zoning change, or other discretionary approval. (g) (1) When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land to a city, county, or city and county in accordance with this subdivision, the applicant shall be entitled to a 15-percent increase above the otherwise maximum allowable residential density for the entire development, as follows: Percentage Very Low Income 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Percentage Density Bonus 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 (2) This increase shall be in addition to any increase in density mandated by subdivision (b), up to a maximum combined mandated density increase of 35 percent if an applicant seeks an increase pursuant to both this subdivision and subdivision (b). All density calculations resulting in fractional units shall be rounded up to the next whole number. Nothing in this subdivision shall be construed to enlarge or 141 Item 7. diminish the authority of a city, county, or city and county to require a developer to donate land as a condition of development. An applicant shall be eligible for the increased density bonus described in this subdivision if all of the following conditions are met: (A) The applicant donates and transfers the land no later than the date of approval of the final subdivision map, parcel map, or residential development application. (B) The developable acreage and zoning classification of the land being transferred are sufficient to permit construction of units affordable to very low income households in an amount not less than 10 percent of the number of residential units of the proposed development. (C) The transferred land is at least one acre in size or of sufficient size to permit development of at least 40 units, has the appropriate general plan designation, is appropriately zoned with appropriate development standards for development at the density described in paragraph (3) of subdivision (c) of Section 65583.2, and is or will be served by adequate public facilities and infrastructure. (D) The transferred land shall have all of the permits and approvals, other than building permits, necessary for the development of the very low income housing units on the transferred land, not later than the date of approval of the final subdivision map, parcel map, or residential development application, except that the local government may subject the proposed development to subsequent design review to the extent authorized by subdivision (i) of Section 65583.2 if the design is not reviewed by the local government before the time of transfer. (E) The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units consistent with paragraphs (1) and (2) of subdivision (c), which shall be recorded on the property at the time of the transfer. (F) The land is transferred to the local agency or to a housing developer approved by the local agency. The local agency may require the applicant to identify and transfer the land to the developer. (G) The transferred land shall be within the boundary of the proposed development or, if the local agency agrees, within one-quarter mile of the boundary of the proposed development. (H) A proposed source of funding for the very low income units shall be identified not later than the date of approval of the final subdivision map, parcel map, or residential development application. (h) (1) When an applicant proposes to construct a housing development that conforms to the requirements of subdivision (b) and includes a childcare facility that will be located on the premises of, as part of, or adjacent to, the project, the city, county, or city and county shall grant either of the following: (A) An additional density bonus that is an amount of square feet of residential space that is equal to or greater than the amount of square feet in the childcare facility. (B) An additional concession or incentive that contributes significantly to the economic feasibility of the construction of the childcare facility. (2) The city, county, or city and county shall require, as a condition of approving the housing development, that the following occur: 142 Item 7. (A) The childcare facility shall remain in operation for a period of time that is as long as or longer than the period of time during which the density bonus units are required to remain affordable pursuant to subdivision (c). (B) Of the children who attend the childcare facility, the children of very low income households, lower income households, or families of moderate income shall equal a percentage that is equal to or greater than the percentage of dwelling units that are required for very low income households, lower income households, or families of moderate income pursuant to subdivision (b). (3) Notwithstanding any requirement of this subdivision, a city, county, or city and county shall not be required to provide a density bonus or concession for a childcare facility if it finds, based upon substantial evidence, that the community has adequate childcare facilities. (4) “Childcare facility,” as used in this section, means a child daycare facility other than a family daycare home, including, but not limited to, infant centers, preschools, extended daycare facilities, and schoolage childcare centers. (i) “Housing development,” as used in this section, means a development project for five or more residential units, including mixed-use developments. For the purposes of this section, “housing development” also includes a subdivision or common interest development, as defined in Section 4100 of the Civil Code, approved by a city, county, or city and county and consists of residential units or unimproved residential lots and either a project to substantially rehabilitate and convert an existing commercial building to residential use or the substantial rehabilitation of an existing multifamily dwelling, as defined in subdivision (d) of Section 65863.4, where the result of the rehabilitation would be a net increase in available residential units. For the purpose of calculating a density bonus, the residential units shall be on contiguous sites that are the subject of one development application, but do not have to be based upon individual subdivision maps or parcels. The density bonus shall be permitted in geographic areas of the housing development other than the areas where the units for the lower income households are located. (j) (1) The granting of a concession or incentive shall not require or be interpreted, in and of itself, to require a general plan amendment, local coastal plan amendment, zoning change, study, or other discretionary approval. For purposes of this subdivision, “study” does not include reasonable documentation to establish eligibility for the concession or incentive or to demonstrate that the incentive or concession meets the definition set forth in subdivision (k). This provision is declaratory of existing law. (2) Except as provided in subdivisions (d) and (e), the granting of a density bonus shall not require or be interpreted to require the waiver of a local ordinance or provisions of a local ordinance unrelated to development standards. (k) For the purposes of this chapter, concession or incentive means any of the following: (1) A reduction in site development standards or a modification of zoning code requirements or architectural design requirements that exceed the minimum building standards approved by the California Building Standards Commission as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety 143 Item 7. Code, including, but not limited to, a reduction in setback and square footage requirements and in the ratio of vehicular parking spaces that would otherwise be required that results in identifiable and actual cost reductions, to provide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in subdivision (c). (2) Approval of mixed-use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the housing development and if the commercial, office, industrial, or other land uses are compatible with the housing project and the existing or planned development in the area where the proposed housing project will be located. (3) Other regulatory incentives or concessions proposed by the developer or the city, county, or city and county that result in identifiable and actual cost reductions to provide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in subdivision (c). (l) Subdivision (k) does not limit or require the provision of direct financial incentives for the housing development, including the provision of publicly owned land, by the city, county, or city and county, or the waiver of fees or dedication requirements. (m) This section does not supersede or in any way alter or lessen the effect or application of the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code). Any density bonus, concessions, incentives, waivers or reductions of development standards, and parking ratios to which the applicant is entitled under this section shall be permitted in a manner that is consistent with this section and Division 20 (commencing with Section 30000) of the Public Resources Code. (n) If permitted by local ordinance, nothing in this section shall be construed to prohibit a city, county, or city and county from granting a density bonus greater than what is described in this section for a development that meets the requirements of this section or from granting a proportionately lower density bonus than what is required by this section for developments that do not meet the requirements of this section. (o) For purposes of this section, the following definitions shall apply: (1) “Development standard” includes a site or construction condition, including, but not limited to, a height limitation, a setback requirement, a floor area ratio, an onsite open-space requirement, or a parking ratio that applies to a residential development pursuant to any ordinance, general plan element, specific plan, charter, or other local condition, law, policy, resolution, or regulation. (2) “Located within one-half mile of a major transit stop” means that any point on a proposed development, for which an applicant seeks a density bonus, other incentives or concessions, waivers or reductions of development standards, or a vehicular parking ratio pursuant to this section, is within one-half mile of any point on the property on which a major transit stop is located, including any parking lot owned by the transit authority or other local agency operating the major transit stop. 144 Item 7. (3) “Major transit stop” has the same meaning as defined in subdivision (b) of Section 21155 of the Public Resources Code. (4) “Maximum allowable residential density” means the density allowed under the zoning ordinance and land use element of the general plan, or, if a range of density is permitted, means the maximum allowable density for the specific zoning range and land use element of the general plan applicable to the project. If the density allowed under the zoning ordinance is inconsistent with the density allowed under the land use element of the general plan, the general plan density shall prevail. (p) (1) Except as provided in paragraphs (2), (3), and (4), upon the request of the developer, a city, county, or city and county shall not require a vehicular parking ratio, inclusive of parking for persons with a disability and guests, of a development meeting the criteria of subdivisions (b) and (c), that exceeds the following ratios: (A) Zero to one bedroom: one onsite parking space. (B) Two to three bedrooms: one and one-half onsite parking spaces. (C) Four and more bedrooms: two and one-half parking spaces. (2) (A) Notwithstanding paragraph (1), if a development includes at least 20 percent low-income units for housing developments meeting the criteria of subparagraph (A) of paragraph (1) of subdivision (b) or at least 11 percent very low income units for housing developments meeting the criteria of subparagraph (B) of paragraph (1) of subdivision (b), is located within one-half mile of a major transit stop, and there is unobstructed access to the major transit stop from the development, then, upon the request of the developer, a city, county, or city and county shall not impose a vehicular parking ratio, inclusive of parking for persons with a disability and guests, that exceeds 0.5 spaces per unit. (B) For purposes of this subdivision, a development shall have unobstructed access to a major transit stop if a resident is able to access the major transit stop without encountering natural or constructed impediments. For purposes of this subparagraph, “natural or constructed impediments” includes, but is not limited to, freeways, rivers, mountains, and bodies of water, but does not include residential structures, shopping centers, parking lots, or rails used for transit. (3) Notwithstanding paragraph (1), if a development consists solely of rental units, exclusive of a manager’s unit or units, with an affordable housing cost to lower income families, as provided in Section 50052.5 of the Health and Safety Code, then, upon the request of the developer, a city, county, or city and county shall not impose vehicular parking standards if the development meets either of the following criteria: (A) The development is located within one-half mile of a major transit stop and there is unobstructed access to the major transit stop from the development. (B) The development is a for-rent housing development for individuals who are 62 years of age or older that complies with Sections 51.2 and 51.3 of the Civil Code and the development has either paratransit service or unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day. (4) Notwithstanding paragraphs (1) and (8), if a development consists solely of rental units, exclusive of a manager’s unit or units, with an affordable housing cost to lower income families, as provided in Section 50052.5 of the Health and Safety 145 Item 7. Code, and the development is either a special needs housing development, as defined in Section 51312 of the Health and Safety Code, or a supportive housing development, as defined in Section 50675.14 of the Health and Safety Code, then, upon the request of the developer, a city, county, or city and county shall not impose any minimum vehicular parking requirement. A development that is a special needs housing development shall have either paratransit service or unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day. (5) If the total number of parking spaces required for a development is other than a whole number, the number shall be rounded up to the next whole number. For purposes of this subdivision, a development may provide onsite parking through tandem parking or uncovered parking, but not through onstreet parking. (6) This subdivision shall apply to a development that meets the requirements of subdivisions (b) and (c), but only at the request of the applicant. An applicant may request parking incentives or concessions beyond those provided in this subdivision pursuant to subdivision (d). (7) This subdivision does not preclude a city, county, or city and county from reducing or eliminating a parking requirement for development projects of any type in any location. (8) Notwithstanding paragraphs (2) and (3), if a city, county, city and county, or an independent consultant has conducted an areawide or jurisdictionwide parking study in the last seven years, then the city, county, or city and county may impose a higher vehicular parking ratio not to exceed the ratio described in paragraph (1), based upon substantial evidence found in the parking study, that includes, but is not limited to, an analysis of parking availability, differing levels of transit access, walkability access to transit services, the potential for shared parking, the effect of parking requirements on the cost of market-rate and subsidized developments, and the lower rates of car ownership for low-income and very low income individuals, including seniors and special needs individuals. The city, county, or city and county shall pay the costs of any new study. The city, county, or city and county shall make findings, based on a parking study completed in conformity with this paragraph, supporting the need for the higher parking ratio. (9) A request pursuant to this subdivision shall neither reduce nor increase the number of incentives or concessions to which the applicant is entitled pursuant to subdivision (d). (q) Each component of any density calculation, including base density and bonus density, resulting in fractional units shall be separately rounded up to the next whole number. The Legislature finds and declares that this provision is declaratory of existing law. (r) This chapter shall be interpreted liberally in favor of producing the maximum number of total housing units. (s) Notwithstanding any other law, if a city, including a charter city, county, or city and county has adopted an ordinance or a housing program, or both an ordinance and a housing program, that incentivizes the development of affordable housing that allows for density bonuses that exceed the density bonuses required by the version 146 Item 7. of this section effective through December 31, 2020, that city, county, or city and county is not required to amend or otherwise update its ordinance or corresponding affordable housing incentive program to comply with the amendments made to this section by the act adding this subdivision, and is exempt from complying with the incentive and concession calculation amendments made to this section by the act adding this subdivision as set forth in subdivision (d), particularly subparagraphs (C) and (D) of paragraph (2) of that subdivision, and the amendments made to the density tables under subdivision (f). (Amended by Stats. 2020, Ch. 197, Sec. 2. (AB 2345) Effective January 1, 2021.) 147 Item 7. State of California HEALTH AND SAFETY CODE Section 50052.5 50052.5. (a) For any owner-occupied housing that receives assistance prior to January 1, 1991, and a condition of that assistance is compliance with this section, “affordable housing cost” with respect to lower income households may not exceed 25 percent of gross income. (b) For any owner-occupied housing that receives assistance on or after January 1, 1991, and a condition of that assistance is compliance with this section, “affordable housing cost” may not exceed the following: (1) For extremely low income households the product of 30 percent times 30 percent of the area median income adjusted for family size appropriate for the unit. (2) For very low income households the product of 30 percent times 50 percent of the area median income adjusted for family size appropriate for the unit. (3) For lower income households whose gross incomes exceed the maximum income for very low income households and do not exceed 70 percent of the area median income adjusted for family size, the product of 30 percent times 70 percent of the area median income adjusted for family size appropriate for the unit. In addition, for any lower income household that has a gross income that equals or exceeds 70 percent of the area median income adjusted for family size, it shall be optional for any state or local funding agency to require that affordable housing cost not exceed 30 percent of the gross income of the household. (4) For moderate-income households, affordable housing cost shall not be less than 28 percent of the gross income of the household, nor exceed the product of 35 percent times 110 percent of area median income adjusted for family size appropriate for the unit. In addition, for any moderate-income household that has a gross income that exceeds 110 percent of the area median income adjusted for family size, it shall be optional for any state or local funding agency to require that affordable housing cost not exceed 35 percent of the gross income of the household. (c) The department shall, by regulation, adopt criteria defining, and providing for determination of, gross income, adjustments for family size appropriate to the unit, and housing cost for purposes of determining affordable housing cost under this section. These regulations may provide alternative criteria, where necessary to be consistent with pertinent federal statutes and regulations governing federally assisted housing. The agency may, by regulation, adopt alternative criteria, and pursuant to subdivision (f) of Section 50462, alternative percentages of income may be adopted for agency-assisted housing development. (d) With respect to moderate- and lower income households who are tenants of rental housing developments and members or shareholders of cooperative housing STATE OF CALIFORNIA AUTHENTICATED ELECTRONIC LEGAL MATERIAL 148 Item 7. developments, or limited equity cooperatives “affordable housing cost” has the same meaning as affordable rent, as defined in Section 50053. (e) Regulations of the department shall also include a method for determining the maximum construction cost, mortgage loan, or sales price that will make housing available to an income group at affordable housing cost. (f) For purposes of this section, “area median income” shall mean area median income as published by the department pursuant to Section 50093. (g) For purposes of this section, “moderate income household” shall have the same meaning as “persons and families of moderate income” as defined in Section 50093. (h) For purposes of this section, and provided there are no pertinent federal statutes applicable to a project or program, “adjusted for family size appropriate to the unit” shall mean for a household of one person in the case of a studio unit, two persons in the case of a one-bedroom unit, three persons in the case of a two-bedroom unit, four persons in the case of a three-bedroom unit, and five persons in the case of a four- bedroom unit. (Amended by Stats. 2017, Ch. 418, Sec. 7. (AB 1714) Effective January 1, 2018.) 149 Item 7. State of California HEALTH AND SAFETY CODE Section 50079.5 50079.5. (a) “Lower income households” means persons and families whose income does not exceed the qualifying limits for lower income families as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937. The limits shall be published by the department in the California Code of Regulations as soon as possible after adoption by the Secretary of Housing and Urban Development. In the event the federal standards are discontinued, the department shall, by regulation, establish income limits for lower income households for all geographic areas of the state at 80 percent of area median income, adjusted for family size and revised annually. (b) “Lower income households” includes very low income households, as defined in Section 50105, and extremely low income households, as defined in Section 50106. The addition of this subdivision does not constitute a change in, but is declaratory of, existing law. (c) As used in this section, “area median income” means the median family income of a geographic area of the state. (Amended by Stats. 2002, Ch. 782, Sec. 24. Effective January 1, 2003.) STATE OF CALIFORNIA AUTHENTICATED ELECTRONIC LEGAL MATERIAL 150 Item 7. State of California HEALTH AND SAFETY CODE Section 50053 50053. (a) For any rental housing development that receives assistance prior to January 1, 1991, and a condition of that assistance is compliance with this section, “affordable rent” with respect to lower income households shall not exceed the percentage of the gross income of the occupant person or household established by regulation of the department that shall not be less than 15 percent of gross income nor exceed 25 percent of gross income. (b) For any rental housing development that receives assistance on or after January 1, 1991, and a condition of that assistance is compliance with this section, “affordable rent,” including a reasonable utility allowance, shall not exceed: (1) For extremely low income households the product of 30 percent times 30 percent of the area median income adjusted for family size appropriate for the unit. (2) For very low income households, the product of 30 percent times 50 percent of the area median income adjusted for family size appropriate for the unit. (3) For lower income households whose gross incomes exceed the maximum income for very low income households, the product of 30 percent times 60 percent of the area median income adjusted for family size appropriate for the unit. In addition, for those lower income households with gross incomes that exceed 60 percent of the area median income adjusted for family size, it shall be optional for any state or local funding agency to require that affordable rent be established at a level not to exceed 30 percent of gross income of the household. (4) For moderate-income households, the product of 30 percent times 110 percent of the area median income adjusted for family size appropriate for the unit. In addition, for those moderate-income households whose gross incomes exceed 110 percent of the area median income adjusted for family size, it shall be optional for any state or local funding agency to require that affordable rent be established at a level not to exceed 30 percent of gross income of the household. (c) The department’s regulation shall permit alternative percentages of income for agency-assisted rental and cooperative housing developments pursuant to regulations adopted under subdivision (f) of Section 50462. The department shall, by regulation, adopt criteria defining and providing for determination of gross income, adjustments for family size appropriate to the unit, and rent for purposes of this section. These regulations may provide alternative criteria, where necessary, to be consistent with pertinent federal statutes and regulations governing federally assisted rental and cooperative housing. The agency may, by regulation, adopt alternative criteria, and pursuant to subdivision (f) of Section 50462, alternative percentages of income may be adopted for agency-assisted housing developments. STATE OF CALIFORNIA AUTHENTICATED ELECTRONIC LEGAL MATERIAL 151 Item 7. For purposes of this section, “area median income,” “adjustments for family size appropriate to the unit,” and “moderate-income household” shall have the same meaning as provided in Section 50052.5. (Amended by Stats. 2002, Ch. 782, Sec. 23. Effective January 1, 2003.) 152 Item 7. 153 Item 7. 154Item 7. 19'-0"TYP.26'-0"TYP.9'-0"TYP.R20'-0"TYP.25'-11"15'-0"BUILDING TYPE 'A'BUILDING TYPE 'B'25'-3"7'-0"11'-5"9'-0"7'-0"6'-1"ABCEDIssue / DescriptionDateNo.IT IS THE CLIENTS RESPONSIBILITY PRIOR TO OR DURING CONSTRUCTION TO NOTIFY THE ARCHITECTIN WRITING OF ANY PERCEIVED ERRORS OR OMISSIONS IN THE PLANS AND SPECIFICATIONS OF WHICHA CONTRACTOR THOROUGHLY KNOWLEDGEABLE WITH THE BUILDING CODES AND METHODS OFCONSTRUCTION SHOULD REASONABLY BE AWARE. WRITTEN INSTRUCTIONS ADDRESSING SUCHPERCEIVED ERRORS OR OMISSIONS SHALL BE RECEIVED FROM THE ARCHITECT PRIOR TO THECLIENT OR CLIENTS SUBCONTRACTORS PROCEEDING WITH THE WORK. THE CLIENT WILL BERESPONSIBLE FOR ANY DEFECTS IN CONSTRUCTION IF THESE PROCEDURES ARE NOT FOLLOWED.09.23.2019SHEET TITLE:SHEET NO:555 E. OCEAN BLVD., STE. 900LICENSE STAMP:PRINCIPAL:PROJECT MANAGER:DAVID R. MALDONADOBRIAN WELLERPLANNING DEPT. SUBMITTAL03.25.201907.13.2019LONG BEACH, CA 90802ALLEGHENY APTS.ALLEGHENY STREETPLANNING COMMENTSBEAUMONT, CAPLANNING DEPT. SUBMITTALINDICATES ACCESSIBLE PATH OF TRAVELCONNECTING PUBLIC ROW, BUILDING AND ACCESSIBLEPARKINGINDICATES BUILDING FOOTPRINT AT FIRST FLOORRESIDENTIAL (100% ON-SITE RESTRICTED AFFORDABLE)REQUIRED: 24 (.5/UNIT)PROVIDED: 28INDICATES OPEN SPACE AREAS (SEE TABLE ON THIS PAGE)X155Item 7. Staff Report TO: City Council FROM: Thaxton Van Belle, General Manager of Utilities DATE September 21, 2021 SUBJECT: Ratification of Emergency Repair Costs to Four Seasons Lift Station Pump Background and Analysis: The Four Seasons Lift Station located on South Highland Springs Avenue experienced pump failures of an electrical nature. The pump was pulled and tested and ultimately sent to a repair facility for inspection and diagnosis. Estimated cost of the pump repair was $36,821. City staff also secured two cost estimates of $123,461 and $128,741 for a pump replacement. Also of consideration was the time to return to service: Repair is estimated to take 5-6 weeks, whereas the estimated delivery time for a new pump is 14- 16 weeks. This report seeks City Council ratification of the costs of emergency repairs to the Four Seasons Lift Station that were initiated August 2021 at a projected cost of $36,820.89. These repairs were funded using contingency funds within the Wastewater Treatment Plant budget (700-4050-7900-0000). Fiscal Impact: The cost of the emergency pump repair is estimated to be $36,820.89. A summary of parts, repairs and a listing of costs is included as Attachment A. Recommended Action: Ratify the cost of emergency repairs completed and paid to Evans Hydro in an amount not to exceed $36,820.89. 156 Item 8. Attachments: A. Repair Quote B. Replacement Quote – Xylem C. Replacement Quote – Evans Hydro 157 Item 8. Page 1 of 3 EVANS HYDRO, Inc. 18128 S. Santa Fe Ave. Rancho Dominguez, CA. 90221 Phone: (310) 608-5801 Fax: (310) 608-6936 August 5, 2021 City Of Beaumont 550 E. 6th Street Beaumont, CA 92223 Attention: Kevin Lee Subject: Flygt 3300/675-5050, 0761145, submersible Pump Hp-160 Evans Hydro Quote No EHQ-210803 Evans Hydro Job # 74469 Dear Kevin Evans Hydro Inc. thanks you for your interest in our quality parts and services. We have received your pump to our service center, disassembled and inspected the unit. Please review the following proposal to repair your Flygt Submersible pump. Work Scope  Receive pump at our shop  Disassemble  Perform dimensional inspection of all critical components and document  Clean and sand blast  Inspect rotor  Stator, test  Check and record condition of casing  Check and record all fits and clearances Rotor motor, shaft  Polish and clean  Inspect  Prep for assembly Stator/Windings  Clean up  Rewind, Surge test, dip and bake  Inspect  Prep for assembly Upper Bearing housing  Clean up  Skim cut mating faces and register (concentricity and perpendicular within .001”)  Inspect  Prep for final assembly Bearing housing/seal Chamber  Clean  Machine bore and bush (bronze)  Inspect  Prep for final assembly 158 Item 8. Page 2 of 3 Lower adapter seal Chamber  Clean  Prep and weld register  Machine register and mating faces concentricity and perpendicular within .001  Prep for final assembly Impeller  Polish  Remove wear ring  Manufacture new ring 410SS  Skim cut wear ring journal to proper clearance fit (concentricity and perpendicular within .001”)  Impeller prep and weld erosion areas and clean up  Inspect  Prep for final assembly Volute  Clean and sandblast  Inspect  Prep for assembly Suction plate/cover  Sandblast and clean up  Remove wear ring  Prep and weld register  Manufacture new “L” shape ring 410SS HT 40-42RC  Install ring and secure  Machine wear ring to proper clearance register concentricity and perpendicular within .001  Machine register and mating face  Inspect  Prep for assembly Rotor assembly  Stack  Install on rollers and Inspect TIR  Balance to 4W/N  Prep for final assembly Assembly  Install rotor into stator  Check total float  Install mechanical seals  Hydro test  Inspect  Paint  Prep for install Miscellaneous  Replace new O-rings  Recondition two mechanical seals  Replace Thrust and Radial Bearings 159 Item 8. Page 3 of 3 PRICING Labor $ 14,375.00 Parts & Materials $ 19,530.00 IBF $ 675.00 Tax at 7.75% $ 1,565.89 OBF $ 675.00 Per Above $ 36,820.89 Delivery 5-6 weeks ARO Payments terms: NET30 Shipment: EX-works Terms and conditions: Evans Hydro, Inc. Validity: 30 Days Note: The prices for the above scope of work do not include any applicable taxes and /or freight. If you have any questions or need more information, please do not hesitate to contact us. Sincerely, Evans Hydro Inc. James R. Byrom President cc: Kim Dixon 160 Item 8. Page 1 of 3 July 27, 2021 CITY OF BEAUMONT 550 E 6TH ST BEAUMONT CA 92223-2253 Quote # 2021-LAB-0507 Project Name: City of Beaumont Job Name: Xylem Water Solutions USA, Inc. is pleased to provide a quote for the following Flygt equipment. A Flygt Preventive Maintenance Contract is available for this order. Please contact XXX for more information. pump Qty Part Number Description Unit Price Extended Price 1 3315.095-0082 Flygt Model NP-3315.095 6" volute Submersible pump equipped with a 460 Volt / 3 phase / 60 Hz 160 HP 1750 RPM motor, 456 impeller, 2 x 50 Ft. length of SUBCAB 3x50+2G35/2+S(2x0,5) submersible cable, FLS leakage detector $ 109,465.00 $ 109,465.00 1 14-40 71 29 MINI-CASII/FUS 120/24VAC,24VDC $ 583.00 $ 583.00 1 14-40 70 97 SOCKET,11 PIN OCTAL DIN MOUNT $ 57.00 $ 57.00 Total Price $ 110,105.00 Freight Charge $ 4,823.00 Total Price $ 114,928.00 Terms & Conditions Xylem Water Solutions USA, Inc. Flygt Products 11161 Harrel Street Mira Loma, CA 91752 Tel (951) 332-3668 Fax (951) 332-3679 161 Item 8. Page 2 of 3 This order is subject to the Standard Terms and Conditions of Sale – Xylem Americas effective on the date the order is accepted which terms are available at http://www.xyleminc.com/en-us/Pages/terms- conditions-of-sale.aspx and incorporated herein by reference and made a part of the agreement between the parties. Purchase Orders: Please make purchase orders out to: Xylem Water Solutions USA, Inc. Freight Terms: 3 DAP - Delivered At Place 08 - Jobsite (per IncoTerms 2020) See Freight Payment (Delivery Terms) below. Taxes: State, local and other applicable taxes are not included in this quotation. Back Charges: Buyer shall not make purchases nor shall Buyer incur any labor that would result in a back charge to Seller without prior written consent of an authorized employee of Seller. Shortages: Xylem will not be responsible for apparent shipment shortages or damages incurred in shipment that are not reported within two weeks from delivery to the jobsite. Damages should be noted on the receiving slip and the truck driver advised of the damages. Please contact our office as soon as possible to report damages or shortages so that replacement items can be shipped and the appropriate claims made. Terms of Delivery: PP/Add Order Position Terms of Payment: 100% N45 after invoice date. Xylem’s payment shall not be dependent upon Purchaser being paid by any third party unless Owner denies payment due to reasons solely attributable to items related to the equipment being provided by FLYGT. Validity: This Quote is valid for ninety (90) days. Schedule: Submittals are not applicable. Delivery lead times are XX weeks after order acceptance. Warranty: Xylem Water Solutions USA, Inc.offers a commercial warranty to the original end purchaser against defects in workmanship and material. Exclusions: This Quote includes only the items listed specified above. Thank you for the opportunity to provide this quotation. Please contact us if there are any questions. Sincerely, Manny Padilla Jr. Aftermarket Sales Phone: 562.760.9258 manny.padilla@xylem.com 162 Item 8. Page 3 of 3 Customer Acceptance This order is subject to the Standard Terms and Conditions of Sale – Xylem Americas effective on the date the order is accepted which terms are available at http://www.xyleminc.com/en-us/Pages/terms- conditions-of-sale.aspx and incorporated herein by reference and made a part of the agreement between the parties. A signed copy of this Quote is acceptable as a binding contract. Purchase Orders: Please make purchase orders out to: Xylem Water Solutions USA, Inc. Quote #: 2021-LAB-0507 Customer Name: CITY OF BEAUMONT Job Name: Total Amount: $ 110,105.00 (excluding freight) Signature: _______________________________ Name:_______________________________________ (PLEASE PRINT) Company/Utility:___________________________ PO:_________________________________________ Address:_________________________________ Date:________________________________________ ________________________________________ Phone:_______________________________________ ________________________________________ Email:_______________________________________ ________________________________________ Fax:_________________________________________ Xylem Water Solutions USA, Inc. Flygt Products 163 Item 8. Page 1 of 1 Evans HYDRO, Inc. 18128 S. Santa Fe Ave. Rancho Dominguez, CA. 90221 www.EvansHydro.com Phone: (310) 608-5801 Fax: (310) 608-6936 While others are chasing symptoms, we eliminate the cause. August 11, 2021 City Of Beaumont 550 E. 6th Street Beaumont, CA 92223 Attention: Kevin Lee Subject: Flygt CP 3300.675-0551040 Four Season # 1 Replacement Evans Hydro Quote No EHQ-210807 Dear Kevin Evans Hydro Inc. thanks you for your interest in our quality parts and services. Per your request, listed below is the pricing and availability to replace the above unit. The existing unit has been replaced with a different model, listed below is the information for the new unit. Attached are the new pump specs and curve One New Flygt Model NP=3315.095 6” volute submersible pump equipped with a 460 volt, 3 phase, 160HP 1750 RPM motor, 457 impeller, 2x50 ft length of SUBCAB 3x50+2G35/2+S(2x0,5) submersible cable Leakage detector Pricing $ 115,905.00 EACH MiniCASII/FUS 120/24VAC,24VDC with socket, 11 pin back mounting Pricing $ 760.00 EACH Delivery on the above is estimated at 14-16 weeks ARO. Does not include any items not listed above. Payments terms: NET30 Terms and conditions: Evans-Hydro Inc. Validity: 60 Days Note: The prices for the above scope of work do not include any applicable taxes or freight charges. If you have any questions or need more information, please do not hesitate to contact us. Sincerely, Evans Hydro Inc. James R. Byrom, Sr. President cc: Kim Dixon kdixon@hydroinc.com 164 Item 8. Staff Report TO: City Council FROM: Jennifer Ustation, Finance Director DATE September 21, 2021 SUBJECT: FY2022 General Fund and Wastewater Fund Budget to Actual through August 2021 Background and Analysis: City staff has updated the financial analysis of the General Fund and Wastewater Fund for FY2022 with results through August 2022. This represents two months of activity. The FY2021 accrual process will take place through August. This is reflected on the July and August reports which are included in the analysis in the attachments. Fiscal Impact: City staff estimates the costs to prepare this staff report to be $350. Recommended Action: Receive and file the attached reports. Attachments: A. FY2022 General Fund Budget to Actual Report – through August 2021 B. FY2022 Wastewater Fund Budget to Actual Report – through August 2021 165 Item 9. Estimated Beginning Fund Balance: $15.6mParent BudgetFY2022 EstimateNotes‐ 59,068.01 6,516,588.00 6,516,588.00 $10,150.09 to be accrued to FY21‐ ‐ 277,822.00 277,822.00 15,285.80 20,741.90 6,926,638.00 6,926,638.00 101,005.24 190,332.29 8,462,873.00 8,462,873.00 116,291.04 270,142.20 22,183,921.00 22,183,921.00 104,332.53 103,669.46 405,000.00 405,000.00 104,332.53 103,669.46 405,000.00 405,000.00 323,382.36 624,930.77 2,857,250.00 2,857,250.00 Increase in permit activity, will watch for potential increase17,403.32 ‐ 376,200.00 376,200.00 70,321.64 77,475.35 746,575.00 746,575.00 ‐ 2,039.98 ‐ 411,107.32 704,446.10 3,980,025.00 3,980,025.00 5,525,000.00 525,000.00 3,111,474.00 3,111,474.00 5,525,000.00 525,000.00 3,111,474.00 3,111,474.00 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 112,614.53 2,414.52 ‐ - 12,374.00 13,372.08 111,564.00 111,564.00 1,132.00 876.00 6,135.00 6,135.00 558.00 ‐ 15,500.00 15,500.00 850.00 2,097.70 67,399.00 67,399.00 26,358.55 (2,836.61) 450,496.00 450,496.00 Accrued invoice20,727.88 17,473.72 131,020.00 131,020.00 31,548.50 1,864.00 18,750.00 18,750.00 10,130.96 6,367.28 280,050.00 280,050.00 216,294.42 41,628.69 1,080,914.00 1,080,914.00 Budget Comparison ReportCity of Beaumont, CAGeneral Fund Budget to Actual through August 20212019‐2020YTD Activity2020‐2021YTD Activity2021‐2022YTD Activity2021‐2022V3SubCategoryCategory: 40 ‐ TAXES400 ‐ Real Property Taxes 28,580.03 403 ‐ Personal Property Taxes 11,525.66 409 ‐ Sales Taxes ‐ 420 ‐ Other Taxes 145,929.19 Total Category: 40 ‐ TAXES: 186,034.88 Category: 41 ‐ LICENSES430 ‐ Business Licenses 100,459.01 Total Category: 41 ‐ LICENSES: 100,459.01 Category: 42 ‐ PERMITS450 ‐ Building Permits 240,485.28 453 ‐ Inspections 40,675.13 456 ‐ Other Permits 75,012.74 515 ‐ Public Works ‐ Total Category: 42 ‐ PERMITS: 356,173.15 Category: 43 ‐ FRANCHISE FEES406 ‐ Franchise Fees 525,000.00 Total Category: 43 ‐ FRANCHISE FEES: 525,000.00 Category: 45 ‐ INTERGOVERNMENTAL465 ‐ State ‐ 470 ‐ Local ‐ al Category: 45 ‐ INTERGOVERNMENTAL: ‐ Category: 47 ‐ CHARGES FOR SERVICE500 ‐ Sanitation ‐ 505 ‐ Animal Control 3,242.44 510 ‐ Community Development 616.00 545 ‐ Other 3,397.99 515 ‐ Public Works 3,740.00 525 ‐ Abatements 3,984.40 530 ‐ Public Safety 6,319.36 535 ‐ Facilities 19,414.64 540 ‐ Programs ‐ al Category: 47 ‐ CHARGES FOR SERVICE: 40,714.83 166Item 9. 6,892.07 718.81 76,608.00 76,608.00 3,157.58 ‐ 52,195.00 52,195.00 10,049.65 718.81 128,803.00 128,803.00 2,669.57 ‐ 20,000.00 20,000.00 53,819.40 53,032.10 432,500.00 432,500.00 56,488.97 53,032.10 452,500.00 452,500.00 251.24 255.04 275,000.00 75,000.00 Low rate market conditions3,977.86 16,547.65 34,000.00 34,000.00 4,229.10 16,802.69 309,000.00 109,000.00 ‐ ‐ ‐ (13.29) 94.06 ‐ (13.29) 94.06 ‐ - ‐ ‐ 7,859,575.00 7,859,575.00 Transfers are quarterly‐ ‐ 7,859,575.00 7,859,575.00 Total Revenue 6,443,779.74 1,289,494.07 1,715,534.11 39,511,212.00 39,311,212.00 1,765,804.99 1,778,792.29 14,713,709.00 14,552,652.00 3 of 26 pay periods reported2,011,987.14 1,757,533.87 6,545,052.00 6,485,051.00 121,741.45 46,410.49 299,931.00 289,735.00 4,820.86 4,690.72 95,850.00 94,650.00 3,904,354.44 3,587,427.37 21,654,542.00 21,422,088.00 2,875.69 11,950.00 35,000.00 35,000.00 182,380.43 190,803.50 1,624,392.00 1,624,392.00 77,860.80 81,112.22 642,892.00 642,892.00 42,075.18 34,372.31 415,389.00 415,389.00 347,530.43 23,982.29 750,250.00 750,250.00 13,764.29 193,508.34 885,627.00 885,627.00 29,159.37 62,699.65 998,261.00 998,261.00 11,124.00 173,445.78 946,200.00 946,200.00 478,433.04 459,350.58 7,337,385.00 7,337,385.00 ‐ ‐ ‐ - 1,118,846.61 1,703,776.81 1,872,674.00 1,872,674.00 Annual insurance premium paid2,304,049.84 2,935,001.48 15,508,070.00 15,508,070.00 7,453.88 12,967.80 344,751.00 344,751.00 Category: 50 ‐ FINES AND FORFEITURES555 ‐ Vehicle 5,117.32 557 ‐ Other 5,002.48 Category: 50 ‐ FINES AND FORFEITURES: 10,119.80 Category: 53 ‐ COST RECOVERY465 ‐ State ‐ 565 ‐ Other Income 83,297.47 Total Category: 53 ‐ COST RECOVERY: 83,297.47 Category: 54 ‐ MISCELLANEOUS REVENUE560 ‐ Investment Earnings 253.13 565 ‐ Other Income (12,556.20) tegory: 54 ‐ MISCELLANEOUS REVENUES: (12,303.07) Category: 58 ‐ OTHER FINANCING SOURC595 ‐ Sale of Assets ‐ 599 ‐ Other (2.00) egory: 58 ‐ OTHER FINANCING SOURCES: (2.00) Category: 60 ‐ PERSONNEL SERVICES600 ‐ SALARIES AND WAGES 1,650,007.20 610 ‐ BENEFITS 1,724,563.98 615 ‐ OTHER 86,194.57 Category: 90 ‐ TRANSFERS900 ‐ Transfers ‐ Total Category: 90 ‐ TRANSFERS: ‐ 699 ‐ OTHER 2,965.00 otal Category: 60 ‐ PERSONNEL SERVICES: 3,463,730.75 Category: 65 ‐ OPERATING COSTS615 ‐ OTHER ‐ 650 ‐ UTILITIES 181,571.97 655 ‐ ADMINISTRATIVE 31,180.68 660 ‐ FLEET COSTS 38,873.78 665 ‐ PROGRAM COSTS 4,290.10 670 ‐ REPAIRS AND MAINTENANCE 25,634.03 675 ‐ SUPPLIES 26,235.45 680 ‐ SPECIAL SERVICES 235.00 690 ‐ CONTRACTUAL SERVICES (582,282.51) 697 ‐ ADMIN OVERHEAD ‐ 699 ‐ OTHER 1,459,302.76 Total Category: 65 ‐ OPERATING COSTS: 1,185,041.26 Category: 70 ‐ CAPITAL IMPROVEMENTS700 ‐ EQUIPMENT 23,421.54 167Item 9. ‐ ‐ ‐ - 4,459.94 9,582.93 848,626.00 848,626.00 11,913.82 22,550.73 1,193,377.00 1,193,377.00 ‐ ‐ 150,000.00 150,000.00 ‐ ‐ 150,000.00 150,000.00 ‐ ‐ 445,271.00 445,271.00 ‐ ‐ 445,271.00 445,271.00 Total Expense 6,220,318.10 4,683,129.31 6,544,979.58 38,951,260.00 38,718,806.00 223,461.64 (4,829,445.47) 559,952.00 592,406.00 Add back Reappropriation of Unspent Funds 214,799.00 214,799.00 Aug 3, Council Reappropriated Unspent Funds774,751.00 807,205.00 Estimated Ending Fund Balance: $16.4mAnalysis: The City is 2 months into FY2022. Invoices and receipts for prior year are accrued through the end of August. Permit activity is up from FY2021 at this time. Investment returns are expected to remain low throughout the FY. Billings are usually 30 days behind, therefore, trending is difficult until more operational activity is recorded. Personnel costs thus far are tracking to have savings. On August 3, City Council approved a budget amendment for unspent prior year appropriations and reappropriated $214,799 for FY2022. This still leaves the City Council with $774,751 of available funds for appropiations throughout the year. 703 ‐ FURNITURE ‐ 705 ‐ VEHICLE 10,052.45 Category: 70 ‐ CAPITAL IMPROVEMENTS: 33,473.99 Total Fund 100 ‐ General Fund(3,393,635.24) Category: 77 ‐ CONTINGENCY770 ‐ CONTINGENCY ‐ Total Category: 77 ‐ CONTINGENCY: ‐ Category: 90 ‐ TRANSFERS900 ‐ Transfers 883.31 Total Category: 90 ‐ TRANSFERS: 883.31 168Item 9. Estimated Beginning Balance: $5.4mParent BudgetEstimate Notes‐ ‐ 5,000.00 5,000.00 ‐ ‐ 5,000.00 5,000.00 6,236.10 ‐ 5,000.00 5,000.00 6,236.10 ‐ 5,000.00 5,000.00 ‐ ‐ 100,000.00 25,000.00 Returns are projected to remain low‐ ‐ 100,000.00 25,000.00 (35,266.24) (395,974.47) 11,671,500.00 11,671,500.00 (35,266.24) (395,974.47) 11,671,500.00 11,671,500.00 ‐ ‐ ‐ - ‐ ‐ ‐ - Total Revenue (29,030.14) (395,974.47) 11,881,500.00 11,731,500.00 133,477.57 162,551.57 1,557,349.00 1,509,071.00 3 of 26 pay periods96,642.56 131,387.60 576,339.00 546,945.00 2,487.80 2,538.36 21,412.00 21,232.00 53.00 704.97 12,300.00 12,300.00 232,660.93 297,182.50 2,167,400.00 2,089,548.00 ‐ ‐ ‐ - 151,602.62 101,037.66 767,796.00 767,796.00 12,019.94 27,479.52 187,475.00 187,475.00 3,192.50 3,127.94 34,820.00 34,820.00 601.54 3,575.00 96,200.00 96,200.00 44,974.21 21,536.94 553,900.00 553,900.00 670 ‐ REPAIRS AND MAINTENANCE 5,216.87 675 ‐ SUPPLIES(384,692.08) 36,201.44 615 ‐ OTHER 1,844.93 699 ‐ OTHER 562.70 otal Category: 60 ‐ PERSONNEL SERVICES: 197,559.81 Category: 65 ‐ OPERATING COSTS615 ‐ OTHER ‐ 650 ‐ UTILITIES 84,799.74 655 ‐ ADMINISTRATIVE 28,997.73 660 ‐ FLEET COSTS 2,017.45 Category: 58 ‐ OTHER FINANCING SOURC599 ‐ Other ‐ tegory: 58 ‐ OTHER FINANCING SOURCES: ‐ Category: 60 ‐ PERSONNEL SERVICES600 ‐ SALARIES AND WAGES 111,849.49 610 ‐ BENEFITS 83,302.69 Category: 54 ‐ MISCELLANEOUS REVENUE560 ‐ Investment Earnings ‐ tegory: 54 ‐ MISCELLANEOUS REVENUES: ‐ Category: 56 ‐ PROPRIETARY REVENUES570 ‐ WasteWater (384,692.08) Category: 56 ‐ PROPRIETARY REVENUES: (384,692.08) Category: 50 ‐ FINES AND FORFEITURES557 ‐ Other ‐ l Category: 50 ‐ FINES AND FORFEITURES: ‐ Category: 53 ‐ COST RECOVERY565 ‐ Other Income ‐ Total Category: 53 ‐ COST RECOVERY: ‐ Budget Comparison ReportCity of Beaumont, CAWastewater Fund Budget to Actual through August 20212019‐2020YTD Activity2020‐2021YTD Activity2021‐2022YTD Activity2021‐2022V3SubCategory169Item 9. 48,655.15 74,456.29 1,188,816.00 1,188,816.00 ‐ ‐ ‐ - 14,960.22 9,064.57 649,050.00 649,050.00 276,006.18 240,277.92 3,478,057.00 3,478,057.00 ‐ 145,872.74 198,638.00 198,638.00 ‐ 25,909.38 215,000.00 215,000.00 ‐ ‐ 100,000.00 100,000.00 ‐ 171,782.12 513,638.00 513,638.00 ‐ ‐ 5,622,405.00 5,622,405.00 Transfers are quarterly‐ ‐ 5,622,405.00 5,622,405.00 Total Expense 508,667.11 394,067.37 709,242.54 11,781,500.00 11,703,648.00 (537,697.25) (1,105,217.01) ‐ 27,852.00 Estimated Ending Balance: $5.4mAnalysis: The City is in the 2nd month of the FY. Billing for Wastewater is done in the arrears, the first billing will show on September 1st. Low returns are projected for the near future which are resulting in a decrease in interest revenue. Personnel costs are thus far looking to have a savings resulting in a surplus of $27,852 in the Wastewater Fund. Category: 90 ‐ TRANSFERS900 ‐ Transfers ‐ Total Category: 90 ‐ TRANSFERS: ‐ Total Fund 700 ‐ Wastewater(778,759.45) Category: 70 ‐ CAPITAL IMPROVEMENTS700 ‐ EQUIPMENT 17,272.92 705 ‐ VEHICLECategory: 70 ‐ CAPITAL IMPROVEMENTS: 17,272.92 Total Category: 65 ‐ OPERATING COSTS: 179,234.64 690 ‐ CONTRACTUAL SERVICES 15,581.51 697 ‐ ADMIN OVERHEAD ‐ 699 ‐ OTHER 6,419.90 ‐ 750 ‐ OTHER ‐ 170Item 9. Staff Report TO: City Council FROM: Todd Parton City Manager DATE September 21, 2021 SUBJECT: Public Hearing and Consideration of Resolution Denying Certification of Final Partially Recirculated EIR for the Legacy Highlands Specific Plan Project Background and Analysis: 2008 Approval of Project, and Certification of the Final EIR On January 15, 2008, the City Council certified the Legacy Highlands Specific Plan Project Final Environmental Impact Report, SCH No. 2005031155 (the “2008 EIR”), and approved the Legacy Highlands Specific Plan Project (“Project”). Specifically, the City Council adopted the following resolutions and ordinances for the Project:  Resolution No. 2008-05 certifying the 2008 EIR for the Project,  Resolution No. 2008-06 adopting Specific Plan No. 07-02,  Resolution No. 2008-07 requesting initiation of annexation proceedings,  Ordinance No. 924 adopting a zone change to pre-zone the Project area from County of Riverside W-2 (Controlled Development) to City of Beaumont SP-A (Specific Plan Area) and R-R (Rural Residential), and  Ordinance No. 925 adopting the Development Agreement between the City of Beaumont and The Preserve LLC. CEQA Lawsuit and Judgment Following a final action by the City, a lawsuit was filed under the California Environmental Quality Act (“CEQA”) in February 2008, challenging the City’s actions. A hearing on the writ petition was conducted in February 2009. The Court found the 2008 EIR deficient with respect to water supply impacts and alternatives analysis. Further, the court held that the Statement of Overriding Consideration did not comply with CEQA. The remaining challenges to the 2008 EIR were found to be without merit. A Statement of Decision, Judgment and Peremptory Writ of Mandate (“Writ”) were issued on March 30, 2009, that directed the City to set aside and vacate its certification of the 2008 EIR for the Project. In addition, the court directed the City to set aside and vacate the land use approvals related to the Project. 171 Item 10. Bankruptcy Proceeding The Preserve, LLC, the Project’s applicant, filed a Chapter 11 bankruptcy case in the United States Bankruptcy Court, Central District of California during the CEQA litigation, which was subsequently converted to a Chapter 7 filing. In December 2008, the United States Bankruptcy Court entered an order granting relief from the automatic stay to permit the CEQA action to proceed. Enacting Resolution No. 2009-24 On June 30, 2009, the City complied with the judgment and the Writ by enacting Resolution No. 2009-24, which rescinded all prior approvals for the Project. Specifically, the City Council set aside and vacated its adoption of Resolution No. 2008-05 (i.e., certification of the 2008 EIR); and approvals of the Legacy Highlands Project, including the Legacy Highlands Specific Plan and the Development Agreement. Stipulation Voiding Resolution No. 2009-24 In 2017, The Preserve, LLC asserted that the City of Beaumont violated the automatic stay of the Bankruptcy Court by enacting Resolution 2009 -24. The City disputed such assertion. Nevertheless, out of an abundance of caution, the parties stipulated tha t Resolution 2009-24 was enacted in violation of the automatic stay and thus was void, withdrawn and cancelled. In December 2017, the stipulation was approved by the United States Bankruptcy Court. Partially Recirculated Environmental Impact Report The City prepared and distributed the December 2020 Partially Recirculated Environmental Impact Report (“PREIR”). The PREIR addressed the issues identified in the CEQA Judgment. The PREIR was circulated for a 45-day review period from December 14, 2020, through January 28, 2021. A final PREIR was prepared and submitted to the City on or about February 23, 2021, and was ready for review and approval or disapproval by the City. However, in light of the stipulation, the City could not take any action related to the final PREIR until the automatic stay was lifted. To do otherwise would not only be in direct violation of the stipulation, but also in violation of the judgment and the Writ. The purchaser of the Project disagreed with the City’s position that it needed to comply with the judgment and Writ in the CEQA action. Motion for Relief from the Automatic Bankruptcy Stay On May 21, 2021, the City filed a Notice of Motion and Motion for Relief from the automatic stay under 11 U.S.C. § 362 in the United States Bankruptcy Court. After reviewing the pleadings submitted by the parties, and after conducting a hearing, the United States Bankruptcy Court granted the City’s motion for relief from automatic stay on June 29, 2021. The court ordered, among other things, that the City may comply with 172 Item 10. the Statement of Decision, the judgment and the Writ in the Riverside County Superior Court CEQA action, and review and act upon the currently proposed final PREIR. City of Beaumont Adopted Ordinance Complying with Court Orders On August 17, 2021, City Council approved the first reading of an ordinance decertifying the final environmental impact report and rescinding adoption of findings statement overriding considerations, mitigation monitoring and reporting program, Specific Plan No. 07-02, pre-zoning Ordinance No 924, development agreement Ordinance No. 925, and request for the Local Agency Formation Commission (LAFCO) to initiate annexation proceedings as to the Legacy Highlands Specific Plan, Site Plan, Land Division, Annexation, Pre-Zoning and Zoning. In a previous item on the current agenda, the City Council will have considered the second reading and adoption of such ordinance. Upon adoption, the City will have complied with the Statement of Decision, the judgment and the Writ in the Riverside County Superior Court CEQA action, and the United States Bankruptcy Court. Project Case History Project Location The Project site is located southerly of SR-60 and westerly of SR-79 in unincorporated Riverside County, adjacent to the boundary of the City of Beaumont. The Project site lies within the City of Beaumont Sphere of Influence (SOI) and would be annexed to the City as one of the Project’s requested discretionary actions. Project Summary The Project would provide for a total of up to 2,868 dwelling units (1,107 single family residential units + 1,761 active adult, low density residential units), 100 acres (approximately 1.20 million square feet) of commercial/industrial uses, a 20-acre school site, various neighborhood parks, undeveloped open space, and all supporting infrastructure and utilities. In addition to approval of the specific plan, the Project required approval by the City Council of a zone change to pre-zone 1,616.89 acres of land from County of Riverside W -2 (Controlled Development) to City of Beaumont SP-A (Specific Plan Area) and R-R (Rural Residential). The Project also required the City Council to request LAFCO to initiate proceedings for the annexation of the Project area to the City and concurrent detachment from the Riverside County Waste Management Resources District, and annexation to the Beaumont Cherry Valley Water District. The Project applicant also requested approval of a 25 year Development Agreement between the City of Beaumont and The Preserve, LLC, which would have given The Preserve, LLC a vested right to develop and construct the Project in accordance with the entitlements received from the City pursuant to its discretionary approvals as well as 173 Item 10. all existing land use regulations and development standards in existence at the time the development agreement was approved. Since the 2008 EIR has been vacated, the final PREIR is incomplete and must be denied. The final EIR consists of the draft EIR, among other things. (CEQA Guidelines, § 15132(a).) Before approving the project, the lead agency must certify that its decision - making body reviewed and considered the information contained in the EIR, that the EIR reflects the agency's independent judgment and analysis, and that the EIR was completed in compliance with CEQA. (Pub. Resources Code, § 21082.1, subd. (c); CEQA Guidelines, § 15090.) Based on the CEQA Guidelines, the City Council must review and consider the information in the 2008 EIR when reviewing and approving or disapproving the certification of the final PREIR. However, since the 2008 EIR and entitlements have been rescinded, there is no longer an EIR for the Project. Therefore, the City Council should deny the certification of the final PREIR. If City Council concurs, the appropriate action would be a motion to adopt a Resolution denying the certification of the final PREIR. Fiscal Impact: City staff estimates the cost to prepare this report to be $9,750. Recommended Action: Open the public hearing, take public comment and continue the public hearing to the regular City Council meeting of November 2, 2021. Attachments: A. Resolution 174 Item 10. RESOLUTION NO. 2021-___ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BEAUMONT, CALIFORNIA, DENYING THE CERTIFICATION OF THE FINAL PARTIALLY RECIRCULATED ENVIRONMENTAL IMPACT REPORT WHEREAS, The Preserve LLC applied for the approval of the Legacy Highlands Specific Plan for property located south of State Route 60 and west of State Route 79, within the City of Beaumont's sphere of influence, for the development of approximately 1,600 acres, including more than 700 acres of undeveloped open space, up to 2,868 residential units, 100 acres of commercial development, and supporting school, park, and recreation uses (the "Project"). WHEREAS, in addition to approval of the specific plan, the Project required approval by the City Council of a zone change to pre-zone 1,616.89 acres of land from County of Riverside W-2 (Controlled Development) to City of Beaumont SP-A (Specific Plan Area) and R-R (Rural Residential). The Project also required the City Council to request the Local Agency Formation Commission of Riverside County to initiate proceedings for the annexation of the Project area to the City of Beaumont and concurrent detachment from the Riverside County Waste Management Resources District, and annexation to the Beaumont Cherry Valley Water District. The Project applicant also requested approval of a 25 year Development Agreement between the City of Beaumont and The Preserve LLC which would have given The Preserve LLC a vested right to develop and construct the Project in accordance with the entitlements received from the City pursuant to its discretionary approvals as well as all existing land use regulations and development standards in existence at the time the Development Agreement was approved. WHEREAS, the City of Beaumont conducted an extensive environmental review for this Project which included an Environmental Impact Report ("2008 EIR") prepared by the independent firm of Applied Planning, Inc., with technical reports concerning biological resources, traffic and circulation, air quality, and noise. WHEREAS, on January 15, 2008, the City Council held a duly noticed and advertised hearing on the matter. At the close of the public hearing, the City Council took the following actions: 1. Approved Resolution No. 2008-05 certifying the Final 2008 EIR for the Project; 2. Approved Resolution No. 2008-06 adopting Specific Plan No. 07-02; 3. Approved Resolution No. 2008-07 requesting initiation of annexation proceedings; 4. Approved Ordinance No. 924 adopting a zone change to pre-zone the Project area from County of Riverside W-2 (Controlled Development) to 175 Item 10. 2 City of Beaumont SP-A (Specific Plan Area) and R-R (Rural Residential); and 5. Approved Ordinance No. 925 adopting the Development Agreement between the City of Beaumont and The Preserve LLC. WHEREAS, on or about February 14, 2008, Cherry Valley Pass Acres and Neighbors ("CVPAN'') and Cherry Valley Environmental Planning Group ("CVEPG") filed a petition for a writ of mandate and complaint for declaratory relief in an action entitled Cherry Valley Pass Acres and Neighbors, et al. v. City of Beaumont, et al., Case No. RIC492830 in the Riverside County Superior Court based, in part, on the following alleged violations of the California Environmental Quality Act ("CEQA"): 1. Failure to adequately analyze the Project's water impacts; 2. Failure to properly analyze cumulative impacts; 3. Failure to properly analyze growth inducing effects; 4. Failure to properly analyze Project alternatives; and 5. Failure to adopt an adequate statement of Overriding Considerations. WHEREAS, The Preserve LLC filed a chapter 11 bankruptcy case in the United States Bankruptcy Court, Central District of California (Case No. 2:10-bk-18429-BB) on September 25, 2008, which was subsequently converted to one under chapter 7. On December 16, 2008, United States Bankruptcy Judge Sheri Bluebond entered an order granting relief from the automatic stay to permit the CEQA action to proceed. WHEREAS, on February 3, 2009, after reviewing the pleadings submitted by the parties, and after conducting a trial on the petition and complaint filed by CVPAN and CVEPG, Judge Mac Fisher of the Riverside County Superior Court issued a Statement of Decision in the CEQA action, finding the 2008 EIR deficient with respect to water supply impacts and alternatives analysis. Further, the Court held that the statement of Overriding Consideration did not comply with CEQA. The remaining challenges to the 2008 EIR were found to be without merit. WHEREAS, on March 30, 2009, in accordance with the Statement of Decision, on March 30, 2009, Judge Fisher issued a Judgment and Writ of Mandate (“Writ”) in the CEQA action directing the City to set aside and vacate its certification of the 2008 EIR for the Project. In addition, the court directed the City to set aside and vacate the land use approvals related to the Project. WHEREAS, on June 30, 2009, the City of Beaumont complied with the Judgment and the Writ by enacting Resolution No. 2009-24, which rescinded all prior approvals for the Project. Specifically, the City Council set aside and vacated its (a) adoption of Resolution No. 2008-05; and (b) approvals of the Legacy Highlands Project, including the Legacy Highlands Specific Plan and the Development Agreement. 176 Item 10. 3 WHEREAS, in the fall of 2017, The Preserve LLC asserted that the City of Beaumont violated the automatic stay by enacting Resolution No. 2009-24. The City disputed such assertion. Nevertheless, out of an abundance of caution, the parties stipulated that Resolution No. 2009-24 was enacted in violation of the automatic stay and thus was void, withdrawn and cancelled. On December 20, 2017, the Stipulation was approved by the United States Bankruptcy Court. WHEREAS, the City prepared a Partially Recirculated Environmental Impact Report (“PREIR”) based on the Statement of Decision. The following is a summary of the City’s environmental review for the PREIR: 1. The City issued a Notice of Availability advising the public that it was circulating the PREIR for a 45-day review period: December 14, 2020 through January 28, 2021. 2. A Final PREIR was prepared and submitted to the City Council on or about February 23, 2021 and was ready for review and approval or disapproval by the City. However, in light of the 2017 Stipulation, the City could not take any action related to the Final PREIR until the automatic stay was lifted. To do otherwise would not only be in direct violation of the Stipulation, but also in violation of the Judgment and the Writ. The purchaser of the Project disagreed with the City’s position that it needed to comply with the Judgment and Writ in the CEQA action. WHEREAS, on May 21, 2021, the City of Beaumont filed a Notice of Motion and Motion for Relief from the Automatic Stay under 11 U.S.C. § 362 in the United States Bankruptcy Court. After reviewing the pleadings submitted by the parties, and after conducting a hearing, Judge Bluebond of the United States Bankruptcy Court granted the City’s motion for relief from automatic stay on June 29, 2021. The Court ordered, among other things, that: 1. The City may take the PREIR Actions1 as required or permitted by local and state law including, but not limited to complying with the Statement of Decision, the Judgment and the Writ in the Riverside County Superior Court CEQA action, and reviewing and acting upon the currently proposed Final PREIR; and 1 The PREIR Actions is defined in the United States Bankruptcy Order to include, but are not limited to, reviewing and acting upon the Final PRIER, complying with the judgment and the writ in the Riverside County Superior Court, the related entitlements, the Legacy Highlands development agreement, specific plan, site plan, land division, annexation, pre-zoning and zoning, mitigation monitoring and reporting program, Findings of Facts and a Statement of Overriding Considerations, Resolution No. 2008-05, Resolution No. 2008-06, Resolution No. 2008-07, Ordinance No. 924 and Ordinance No. 925. 177 Item 10. 4 2. The City Council and the Planning Commission shall retain any and all discretion and authority under CEQA, other state law as well as local law with regards to the PREIR Actions. WHEREAS, on August 17, 2021, the City complied with the CEQA Judgment and Writ from the Riverside County Superior Court, and the Order from the United States Bankruptcy Court. Specifically, the City Council of the City of Beaumont, California introduced and waived full reading for the first time and ordered posted at a regular meeting “An Ordinance of the City Council of the City of Beaumont, California, Decertifying the Final Environmental Impact Report; Rescinding Adoption of Findings, Statement of Overriding Considerations, Mitigation Monitoring and Reporting Program, Specific Plan No. 07-02, Pre-Zoning Ordinance No. 924, Development Agreement Ordinance No. 925, and Request for the Local Agency Formation Commission to Initiate Annexation Proceedings as to the Legacy Highlands Specific Plan, Site Plan, Land Division, Annexation, Pre-Zoning and Zoning” (“the Ordinance”). WHEREAS, on September 21, 2021, the Ordinance was passed, approved and adopted at a regular meeting of the City Council of the City of Beaumont, California. WHEREAS, the City Council must complete and certify the Final PREIR within one year following its acceptance of the application as complete. (14 Cal. Code Reg. § 15108; Pub. Res. Code § § 21100.2, 21151.5(a).) Therefore, the Final PREIR must be reviewed and approved or disapproved for certification no later than December 8, 2021. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Beaumont, California makes the following findings, determinations and recommendations with respect to the Final PREIR for the proposed Project: SECTION 1: Denial of Final PREIR 1. That the above recitations are true and correct, and material to this Resolution. 2. The Riverside County Superior Court issued a Judgment and Writ in the CEQA litigation ordering the City Council to set aside and vacate its (a) adoption of Resolution No. 2008-05 (certifying the 2008 EIR); and (b) approvals of the Legacy Highlands Project, including the Legacy Highlands Specific Plan and the Development Agreement. 3. The United States Bankruptcy Court issued an Order that the City may take the PREIR Actions as required or permitted by local and state law including, but not limited to complying with the Statement of Decision, the Judgment and the Writ in the Riverside County Superior Court CEQA action, and reviewing and acting upon the currently proposed Final PREIR. 178 Item 10. 5 4. Based on the CEQA Judgment and Writ from the Riverside County Superior Court, and the Order from the United States Bankruptcy Court, the City Council passed, approved, and adopted an Ordinance rescinding all prior approvals for the Project, including the certification of the 2008 EIR on September 21, 2021. 5. The City Council must review and consider the information in the 2008 EIR when considering and certifying the Final PREIR. However, since the 2008 EIR and entitlements have been rescinded, there is no longer an EIR for the Project. Therefore, the City Council hereby denies the certification of the Final PREIR. SECTION 6: Effective Date This resolution shall take effect immediately upon its adoption. MOVED, PASSED, and ADOPTED this 21st day of September by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________ Lloyd White, Mayor Pro Tem Attest: ______________________________ Steven Mehlman, City Clerk Approved as to form: ______________________________ John Pinkney, City Attorney 179 Item 10. Staff Report TO: City Council FROM: Christina Taylor, Community Development Director DATE September 21, 2021 SUBJECT: Public Hearing and Consideration of an Ordinance of the City Council of the City of Beaumont Amending Table 17.03-3 “Permitted Uses in Base Zone Districts”; Amending Table 17.19-1 “Permitted Uses for Downtown Base Zone Districts”; Amending Chapter 17.14.030 “Definitions” of The Beaumont Municipal Code and Adding Chapter 17.04.41 Performance Standards for Tire Stores and Tire Repair Facilities Background and Analysis: On March 3, 2020, the City Council adopted an Interim Urgency Ordinance for a Moratorium on tire sales and tire repair establishments. On April 7, 2020, the City Council adopted a ten (10) month, 15-day extension to the Interim Urgency Ordinance. On February 16, 2021, City Council approved the final extension of Ordinance 1121 for a moratorium on tire sales and tire repair establishments. The purpose of the moratorium was to allow the General Plan Update to be completed and to assess the critical issues associated with tire sales and tire repair businesses. The General Plan Update is complete and took effect in January 2021. The Downtown Area Plan was also completed with the General Plan Update and established generalized design guidelines for the downtown area. Automobile repair businesses are permitted in the downtown as are retail sales businesses with accessory uses. Automotive repair is also permitted in the commercial and manufacturing areas outside of the downtown. The municipal code does not specifically speak to tire sales (new or used) or tire repair. Rather, historically, these uses have been considered as automobile repair or retail sales. The City has eight (8) licensed tire sales and/or repair businesses, six (6) of which are located in the downtown. City staff has been working with City departments to assess the most critical issues related to these uses and determine options to address them. The primary issue is the storage of tires. The pictures included as Attachment A to this report provide examples 180 Item 11. of current conditions specific to tire sales businesses in the downtown area. The same types of storage issues can be observed in other areas of the City on West Sixth, California Avenue and Fifth Street. Chapter 17 Zoning of the municipal code does not address outdoor storage or display. City staff has typically relied on Chapter 8.32.115 Outdoor Displays/Storage of Merchandise or Chapter 8.32.220 Attractive Nuisances of the City of Beaumont Municipal Code (Code) which declares a public nuisances under certain circumstances. City staff proposes adding definitions, zoning allowances and performance standards to the Code to preemptively address the primary site concerns that City departments face with regard to tire related businesses. Addition of definitions to Chapter 17.14.030 “Definitions” of the Beaumont Municipal Code as follows: o Tire - a rubber covering, typically inflated or surrounding an inflated inner tube, placed around a wheel to form a flexible contact with the road. May include new or used tires; o Tire Store - an establishment where the sale, installation or storage of new or used or retread tires and tubes is conducted with or without other products or services. Tire store does not include a retreading establishment, collection, reduction or transfer of tires; and o Tire Repair – the process of mending a hole, tear, fissure or blemish in a tire by including but not limited to grinding, gouging, applying adhesive or filling a hole or crevice with rubber. Zoning allowances in Table 17.03-3 “Permitted Use Table for Base Zone Districts” of Chapter 17.03.120 of The Beaumont Municipal Code: TABLE 17.03-3 Automotive Services RC PF RR RSF RTN RMF CN CC M UV Automobile, Motorcycle, and Marine Craft Sales (New and Used) N N N N N N C P C C Automobile Parking Facilities N N N N N N C P P C Automobile Rental Agencies N N N N N N P P P C 181 Item 11. Automobile Repair Facilities N N N N N N C P P N Automobile Towing and/or Wrecking Facilities N N N N N N N N C N Body and Paint Shops N N N N N N C C C N Car Wash N N N N N N C C C C Automotive Services (Cont.) RC PF RR RSF RTN RMF CN CC M UV Gas/Service Stations N N N N N N C C C C Limousine Services N N N N N N P P P N Recharging Stations Allowed (P) in any area designed for the parking or loading of vehicles. Tire Repair N N N N N N N P P N Tire Store N N N N N N N P P N Towing Services with Indoor Vehicle Service N N N N N N C C C N Towing Services with Outdoor Vehicle Storage N N N N N N N N C N Truck/Trailer Rentals N N N N N N C C P N 182 Item 11. Zoning allowances Table 17.19-1 “Permitted Use Table for Base Zone Districts in Downtown” of Chapter 17.19.120 of The Beaumont Municipal Code: TABLE 17.19-1 Automotive Services DMU BMU SSMU SSMU-R LC DMF Automobile, Motorcycle, and Marine Craft Sales (New and Used) N N P C 6 P N Automobile Parking Facilities C N C N P N Automobile Rental Agencies N N C 6 N P N Automobile Repair Facilities N N C 6 N C N Body and Paint Shops N N N N C N Car Wash N N C N C N Gas/Service Stations N N C 6 C 6 C N Limousine Services N N C N P N Recharging Stations Allowed (P) in any area designed for the parking or loading of vehicles Tire Repair N N N N P N Tire Store N N N N P N 183 Item 11. Towing Services with Indoor Vehicle Service N N N N C N Towing Services with Outdoor Vehicle Storage N N N N C N Truck/Trailer Rentals N N N N C N The changes proposed in the use tables would specifically allow tire stores and tire repair facilities in the Local Commercial (LC) zone of the Downtown Area Plan and in the Community Commercial (CC) and Manufacturing (M) zones throughout the City. City staff believes these zones allow ample opportunity in with sites large enough to accommodate the needs of tire related services and meet the proposed performance standards. If approved, these changes would render six (6) existing tire stores in the Downtown Area Plan as legal, non-conforming. The following is proposed to be added to the Performance Standards section of the Beaumont Municipal Code: Chapter 17.04.41 “Tires” A. Display. Outdoor display of merchandise, goods or materials for marketing or advertising purposes must be reviewed and approved through the Plot Plan process as identified in the Beaumont Municipal Code Chapter 17.02.070 Plot Plans. This could be an Administrative Plot Plan for an existing business or structure or a Plot Plan for approval by the Planning Commission for new construction. In addition to any site - specific conditions, outdoor display of merchandise, goods or materials shall only occur during a business’s hours of operation. B. Tire Storage. Storage of tires must be reviewed and approved through the Plot Plan process as identified in the Beaumont Municipal Code Chapter 17.02.070 Plot Plans. This could be an Administrative Plot Plan for an existing busin ess or structure or a Plot Plan for approval by the Planning Commission for new construction. In addition to any site-specific conditions the following is required: 1. All outdoor storage must be covered on a minimum of three sides, one of which must be the top and screened from public view, 2. Any proposed use must comply with the California Regional Water Quality Control Board and the requirements specified in the National Pollutant Discharge 184 Item 11. Elimination System (NPDES) Municipal Separate Storm Sewer Syst em (MS4) permit, 3. Water supply and hydrant requirements as specified in the adopted Fire Code must be met, and 4. Both indoor and outdoor storage of tires and related materials and equipment, must meet all Building and Safety and Fire Department standards and requirements. C. Incidental Use. Outdoor storage of tires, related equipment or materials must be incidental to a primary use and shall not exceed 20% of the total lot area. D. Structures. Structures utilized for storage of materials must meet all Building and Safety and Fire standards, shall be complimentary to the primary structure and meet the aesthetic intent of the area in which the business is located. E. Definitions. Tires, Tire Store and Tire Repair referenced herein are as defined in Chapter 17.14.030 “Definitions” of the Beaumont Municipal Code. The proposed performance standards set forth a review process and expectations for tire stores and other tire related uses which would locate within the City. Fiscal Impact: The cost to prepare this staff report is approximately $1,000. Recommended Action: Conduct a Public Hearing; and Waive the First Full Reading and Adopt by Title Only and Ordinance of the City Council of the City of Beaumont Amending Table 17.03 -3 “Permitted Uses in Base Zone Districts”; Amending Table 17.19-1 “Permitted Uses for Downtown Base Zone Districts”; Amending Chapter 17.14.030 “Definitions” of The Beaumont Municipal Code and Adding Chapter 17.04.41 Tires to the Beaumont Municipal Code. Attachments: A. Ordinance B. Draft Municipal Code Language Chapter 17.04.41 Tires C. Draft Municipal Code Language Chapter 17.14.030 Definitions D. Draft Amended Use Table Chapter 17.03-1 E. Draft Amended Use Table Chapter 17.19-1 185 Item 11. ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BEAUMONT, CALIFORNIA AMENDING TABLE 17.03-3 “PERMITTED USES FOR BASE ZONE DISTRICTS” AMENDING TABLE 17.19-1 “PERMITTED USES FOR DOWNTOWN BASE ZONE DISTRICTS” AMENDING CHAPTER 17.14.030 “DEFINITIONS,” OF THE BEAUMONT MUNICIPAL CODE AND ADDING CHAPTER 17.04.41 PERFORMANCE STANDARDS FOR TIRES, TIRE STORES AND TIRE REPAIR FACILITIES BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT, RIVERSIDE COUNTY, STATE OF CALIFORNIA AS FOLLOWS: SECTION 1. CEQA. The City Council finds that the actions contemplated by this Ordinance are exempt from the California Environmental Quality Act (“CEQA”) pursuant to 15061(b)(3), CEQA review is not required because there is no possibility that this Ordinance may have a significant effect upon the environment and the proposed text amendments constitute a minor alteration in a land use limitation under CEQA Guidelines Section 15305, and such a land use limitation is a permissible exercise of the City's zoning powers. SECTION 2. Severability. The City Council hereby declares that if any provision, section, paragraph, sentence, or word of this Ordinance is rendered or declared to be invalid or unconstitutional by any final court action in a court of competent jurisdiction, or by reason of any preemptive legislation, such invalidity shall not affect the other provisions, sections, paragraphs, sentences, or words of this Ordinance, and to this end the provisions of this Ordinance are severable. The City Council declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof and intends that the invalid portions should be severed, and the balance of the Ordinance enforced. SECTION 3. Prosecution of Prior Ordinances. Neither the adoption of this Ordinance nor the repeal of any other ordinance of this City shall in any manner affect the prosecution of any violation of any City ordinance or provision of the City of Beaumont Municipal Code, committed prior to the effective date hereof, nor be construed as a waiver of any penalty or the penal provisions applicable to any violation thereof. SECTION 4. The City Council hereby amends Title 17, Table 17.03-3 “Permitted Uses in Base Zone Districts” to include uses specifically set forth in Exhibit “A”, which Exhibit is attached hereto and made a part hereof. SECTION 5. The City Council hereby amends Title 17, Table 17.19-1 “Permitted Uses for Downtown Base Zone Districts” to include uses specifically set forth in Exhibit “A”, which Exhibit is attached hereto and made a part hereof. SECTION 6. The City Council hereby amends Title 17, Chapter 17.14.030 “Definitions” to include uses specifically set forth in Exhibit “B”, which Exhibit is attached hereto and made a part hereof. 186 Item 11. SECTION 7. The City Council hereby amends Title 17, adding Chapter 17.04.41 “Tires, Tire Stores and Tire Repair Facilities” as specifically set forth in Exhibit “C”, which Exhibit is attached hereto and made a part hereof. SECTION 8. Effective Date and Publication. The Mayor shall sign and the City Clerk shall certify to the passage of this Ordinance and cause the same or a summary thereof to be published within 15 days after adoption in accordance with Government Code Section 36933. This Ordinance shall take effect 30 days after adoption in accordance with Government Code Section 36937. NOW, THEREFORE, BE IT ORDAINED that the City Council of the City of Beaumont, California, approves an amendment to the City Code. INTRODUCED AND READ for the first time and ordered posted at a regular meeting of the City Council of the City of Beaumont, California, held on the 21st day of September 2021, by the following roll call vote: AYES: NOES ABSENT ABSTAIN PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Beaumont, California, held on the 5th day of October 2021. AYES: NOES: ABSENT: ABSTAIN: _______________________ Mike Lara, Mayor Attest: ______________________ City Clerk Approved as to form: _______________________ John O. Pinkney, City Attorney 187 Item 11. 17.04.041 – Tires, Tire Stores and Tire Repair Facilities. The following standards are established to regulate the land uses and structures engaging in the sales, storage, or installation of Tires in the City of Beaumont. In order to protect the health and welfare of those persons living, working, or visiting the City of Beaumont, the sales, storage or installation of tires shall be regulated and monitored according to standards established herein and by the standards implemented by the appropriate City Departments. A. Display. Outdoor display of merchandise, goods or materials for marketing or advertising purposes must be reviewed and approved through the Plot Plan process as identified in the Beaumont Municipal Code Chapter 17.02.070 Plot Plans . This could be an Administrative Plot Plan for an existing business or structure or a Plot Plan for approval by the Planning Commission for new construction. In addition to any site-specific conditions, outdoor display of merchandise, goods or materials shall only occur during a business’s hours of operation and shall be limited to a maximum of four (4) items including tires and other related display items. B. Tire Storage. Storage of tires must be reviewed and approved through the Plot Plan process as identified in the Beaumont Municipal Code Chapter 17.02.070 Plot Plans. This could be an Administrative Plot Plan for an existing business or structure or a Plot Plan for approval by the Planning Commission for new construction. In addition to any site- specific conditions the following is required: 1. All outdoor storage must be covered on a minimum of three sides, one of which must be the top and screened from public view. 2. Any proposed use must comply with the California Regional Water Quality Control Board and the requirements specified in the National Pollutant Discharge Elimination System (NPDES) Municipal Separate Storm Sewer System (MS4) permit. 3. W ater supply and hydrant requirements as specified in the adopted Fire Code must be met. 4. Both indoor and outdoor storage of tires and related materials and equipment, must meet all Building and Safety and Fire Department standards and requirements. C. Incidental Use. Outdoor storage of tires, related equipment or materials must be incidental to a primary use and shall not exceed 20% of the total lot area. D. Structures. Structures utilized for storage of materials must meet all Building and Safety and Fire standards, shall be complimentary to the primary structure and meet the aesthetic intent of the area in which the business is located. E. Definitions. Tires, Tire Store and Tire Repair referenced herein are as defined in Chapter 17.14.030 “Definitions” of the Beaumont Municipal Code. 188 Item 11. Created: 2021-05-05 12:38:43 [EST] (Supp. No. 5, Update 1) Page 1 of 21 17.14.030 Definitions (A through Z). A Above-ground/on-ground pool. See "Swimming pool". Abut or Abutting. The same as meaning adjoining. Access. The place, or way, by which pedestrians and vehicles are provided adequate and usable ingress and egress to a property or use as required by this Zoning Code. Accessory Use. A use incidental to, related, and clearly subordinate to the principal use estab lished on the same lot or parcel of land where such accessory use is located. Adjacent. Two or more lots or parcels of land separated by an alley, street, highway or recorded easement, or two or more objects located near or in close proximity to each other. Adjoining. Two or more lots or parcels of land sharing a common boundary line, or two or more objects in physical contact with each other. Affordable Unit. Refers to a housing development project in which 80 percent of the units shall be designated for very low-income households and 20 percent reserved for low-income households as those terms are defined in the Health and Safety Code. Alley. A public or private right-of-way, other than a street or highway, permanently reserved as a secondary means of vehicular access to adjoining properties. Amendment. A change in the wording, context, content, or substance of this Zoning Code or in the zoning map. Such changes must be adopted by ordinance by the City Council in the manner prescribed by law. Amusement Arcade. Any place open to the public where five or more amusement games are maintained for use by the public. When only a portion of the premises is used for the operation of amusement games, only that portion shall be considered as an amusement arcade. Amusement Game. Any entertainment device for which a fee is paid to play, including, but not limited to, pinball, video or other electronic games. Animal Hospital. Shall mean a place where anima s or pets are given medical or surgical treatment and cared for during the time of such treatment. Use as a kennel shall be limited to short time boarding and shall be only incidental to such hospital use. Animals—Retail Sales. The retail sales of small animals (such as dogs, cats, birds, and fish), provided such activities take place within an entirely enclosed building. Antique Shop. An establishment primarily engaged in the sale of antiques. Apartment House. A building, or a portion of a building, designed or used for occupancy by three or more households living independently of each other and containing three or more individual dwelling units within a single structure. Apartment Unit. A room or suite of two or more rooms with a single kitchen in a multiple-family dwelling, suitable for occupancy as a dwelling unit for one household. Arcade. See "Amusement arcade". Artists' Studio. A building containing work space and retail sales space for artists and artisans producing individual one-of-a-kind works of art, including individuals practicing a fine art, or skilled in an applied art or craft, provided that the use does not impact any other use or property with noise, odor, dust, vibration, or other 189 Item 11. Created: 2021-05-05 12:38:43 [EST] (Supp. No. 5, Update 1) Page 2 of 21 nuisance. This classification includes, but is not limited to, painter's studios, ceramic studios, and custom jew elry studios. Assessor. The Assessor of the County of Riverside. Automobile Parking or Storage Facility means a type of outdoor storage use whereby an outdoor lot, lot area, or parcel of land used, is designed and maintained primarily for the purpose of storing, parking, dispatching, or keeping automobiles or recreational vehicles (including RV’s, boats, watercraft, off -road vehicles) or other vehicles, together with or without facilities necessary to service, dispatch, store or maintain aforementioned vehicles, their cargos and crews. Also applies to a business establishment providing towing and/or storage of operative or inoperative vehicles. This classification includes the storage of tow -aways, impound yards, and storage lots for buses and recreational vehicles, but does not include vehicle dismantling. Automobile Wrecking or Automobile Dismantling. A business establishment engaged in the dismantling and/or wrecking of automobiles, used motor vehicles or trailers, and/or the storage, sale, or dumping of dismantled, partially dismantled, obsolete, or wrecked vehicles or parts. Automobile Service Station. An establishment providing gasoline oil and other additives, and/or performing minor repairs and other customary services for automobiles and light vehicles, but excluding painting, body work steam cleaning, and major repairs. Advertising Structure. A structure of any kind or character, erected or maintained for outdoor advertising purposes, upon which any poster bill, Awning. Either a fabric covered appendage or a temporary collapsible shelter of noncombustible materials supported entirely from the exterior wall of a building. B Balcony. A platform that projects from the wall of a building, typically above the first level, and is surrounded by a rail, balustrade, or parapet on at least one side. Balcony, Unenclosed. A balcony open to the sky and not fully enclosed on more than two sides. Balloon. A floating air-filled or gas-filled object tethered to a fixed location (also see "Sign, balloon"). Banks and Savings. A state- or federally-chartered financial institution that provides retail banking Barrier. A fence, a wall, a building wall or a combination thereof which completely surrounds the swimming pool and obstructs access to the swimming pool. Bars and Cocktail Lounges. Establishments where alcoholic beverages are sold for consumption on the premises. This classification excludes restaurants and commercial recreation uses that may serve alcoholic beverages incidental to the primary use. Basement. That portion of a building located between the ground level or first floor of a structure. Billiard Parlor. An establishment that provides five or more billiard and/or pool tables. Boarding. A residence or dwelling, other than a hotel, wherein three or more rooms are rented under three or more separate written or oral rental agreements, leases or subleases or combination thereof, whether or not the owner, agent or rental manager resides within the residence. Building. Any structure having a roof supported by columns or by walls and intended for the shelter, housing, or enclosure of persons, animals, or property of any kind. Building; Accessory. A detached subordinate building, the use of which is incidental to that of the primary building or to the principal use of the land, and which is located on the same lot or parcel of land with the main building or principal use of the land. 190 Item 11. Created: 2021-05-05 12:38:43 [EST] (Supp. No. 5, Update 1) Page 3 of 21 Building, Height. The vertical distance as measured continuously along a line at existing grade bisecting the width of the lot to the highest point of a building or structure, except as provided elsewhere in this Zoning Ordinance. Building, Main. A building in which is conducted a principal use of the lot or parcel of land upon which it is situated. In a residential or agricultural zone, any residential unit shall be deemed to be a main building upon the lot or parcel of land on which it is situated. Building Material Sales. An establishment engaged in retailing or wholesaling of building supplies or equipment. This classification includes lumber yards and tool and equipment sales, but excludes businesses engaged in the retail sales of paint and hardware, building contractor's yards, and activities classified under "Equipment Leasing and Rentals." Building Site. The ground area of one or the ground area of two or more lots when used in combination of a building or group of buildings together with all open spaces as required by this Ordinance. Building Wall. The vertical surface, or any element thereof, including any structural member or group of structural members attached the vertical surface, that defines the exterior boundaries of a building. Business and Trade School. An establishment which provides on-site training of business, commercial, and/or trade skills such as accounting, data processing, and computer repair. This classification excludes establishments providing training in an activity that is not otherwise permitted in the applicable zone. Incidental instructional services in conjunction with another primary use shall not be considered a business and trade school. C Cabana. A structure containing not more than 700 square feet, not containing a kitchen. Camp, Day. A facility with an organized daytime program involving the supervision and care of children. Canopy. Has the same meaning as "awning" as defined in this section, except that a canopy contains separate supporting posts and is not supported entirely from the exterior wall of a building. A fixed overhead shelter used as may or may not be attached to a building. Carport. A permanently-roofed structure with no more than two enclosed sides, used or intended to be used for automobile shelter and storage. Cellar. See "Basement". Center-line. The center-line of any street, as established by the City Engineer by official surveys, and on file in the office of the City Engineer. Check Cashing. A business that, for compensation, engages in the business of cashing checks, warrants, drafts, money orders, or other commercial paper serving the same purpose. This classif ication does not include a state- or federally- chartered bank, savings association, credit union, or industrial loan company. Further, this classification does not include establishments selling consumer goods where the cashing of checks or money orders is incidental to the main purpose of the business. Church. A facility used for religious worship and incidental religious education and/or activities, including a parsonage which shall be a maximum of 1,200 square feet or 50 percent of the assembly hall wh ichever is less. Setbacks and parking shall meet the residential single family requirements. This definition does not include private schools as defined in this section of the Zoning Ordinance. Child Care Center. A facility that provides non-medical care to children under 18 years of age in need of personal services, supervision, or assistance essential for sustaining the activities of daily living or for the protection of the individual on less than a 24-hour basis. "Child care center" includes day care centers and family day care homes. City. Refers to the City of Beaumont. 191 Item 11. Created: 2021-05-05 12:38:43 [EST] (Supp. No. 5, Update 1) Page 4 of 21 Club, Private. Any building or premises used by an association of persons, whether incorporated or unincorporated, organized for some common purpose, but not including a group organi zed solely or primarily to render a service customarily carried on as a commercial enterprise. This definition does not include "Adult" business establishments. Clubs and Lodges. A private or nonprofit organization providing meeting, recreational, or social facilities primarily for use by members and/or guests. Commercial Printing. A business providing printing, blueprinting, photocopying, engraving, binding, or related services. Commercial Vehicle. A vehicle which, when operated on a street, is required to be registered as a commercial vehicle under the State Vehicle Code, and which is used or maintained for the transportation of persons for hire, compensation, or profit, or which is designed, used, or maintained primarily for the transportation of property. Commission. Refers to the Planning Commission of the City of Beaumont. Communications Facilities. An establishment engaged in broadcasting, recording, and other communication services accomplished through electronic or telephonic mechanisms. This classification includes, but is not limited to, radio, television, or recording studios, telephone switching centers, and telegraph offices. Communications Facilities, Wireless. An unstaffed facility used for the transmission or reception of wireless telecommunication services, commonly consisting of an antenna array, connection cables, a support structure, and ancillary support facilities. Community Center. A building, buildings, or portions thereof used for recreational, social, educational, and cultural activities where buildings and associated improvements are owned and/or operated by a public, nonprofit, or public serving group or agency. Condominium. An undivided interest in common in a portion of real property coupled with a separate interest in space called a "unit," the boundaries of which are described on a recorded final map, parcel map, or condominium plan. The description of the unit may refer to : a) boundaries described in the recorded final map, parcel map, or condominium plan, b) physical boundaries, either in existence, or to be constructed, such as wall, floors, and ceilings of a structure or any portion thereof, c) an entire structure containing one or more units, or d) any combination thereof. An individual condominium within a condominium project may include, in addition, a separate interest in other portions of the real property. This term shall also include stock -cooperative developments. Condominium Project. A common interest development consisting of condominiums. Contractor or Building Materials Storage Yard means establishments which engage primarily in the outdoor storage of goods, materials (except temporary storage of construction materials associated with an active building permit), machines, vehicles, trailers, and other equipment associated with a construction or contractor’s business licensed within the City of Beaumont. Convalescent Facilities. A business establishment engaged in providing care on 24-hour basis for persons requiring regular medical attention, but excluding facilities providing surgical or emergency medical services. Convalescent Home. A home or establishment offering or providing lodging, meals, nursing, dietary, or other personal services to five or more convalescents, invalids, or aged persons, but shall not include surgery or the care of persons with contagious or communicable diseases. Conversion (Condominium). A change in the type of ownership of a parcel or parcels of land, together with the existing structures, from rental housing, as defined in this section, to a condominium, community apartment, planned development, stock cooperative, or common interest development. County. Refers to the County of Riverside. 192 Item 11. Created: 2021-05-05 12:38:43 [EST] (Supp. No. 5, Update 1) Page 5 of 21 Court. An open, unoccupied space, bounded on two or more sides by the walls of a building. "Inner court" is a court entirely enclosed within the exterior walls of a building. All other courts are referred to as outer courts. Coverage. The percentage of total site area covered by structures, open or enclosed, excluding the following uncovered structures: steps, courts, patios, terraces, and swimming pools. D Dairy. Any premises where three or more cows, three or more goats or one or more cows and two or more goats, or two or more cows and one or more goats are kept, milked, or maintained. Daycare Center, Adult. A state-licensed facility designed to provide necessary care and supervision to persons 18 years of age or older on less than a 24-hour basis. Adult day care centers include the various types of adult day services as defined under state law that include "adult day care facilities," "adult social day care facilities," and "adult day health care facilities." Day Care Center, Children. A state-licensed facility, other than a family day care home, providing non -medical care and supervision to children under 18 years of age on less than a 24-hour basis. Child day care centers shall include "day care centers" as defined under state law, which include infant centers, preschools, and extended day care facilities. Deck. A platform other than a balcony, either freestanding or attached to a building, without a roof, that is supported by pillars, posts, or walls. Director and Director of Planning and Planning Director. Refers to the Community Development Director or his or her designee. Drive-in Restaurant. Any building or structure in which food and drink are prepared for service to customers outside of such building or structure, even though the same is served to customers inside said building or structure or to customers occupying vehicles outside such structure, and shall include self-service restaurants for take-out food. Drive-thru. See "Establishment with drive-up service". Driveway. An appropriately paved and privately-owned surface or road that provides access to off-street parking or loading facilities. Dump. An area devoted to the disposal of combustible or non -combustible refuse. Duplex. A structure consisting of two dwelling units. Dwelling or Dwelling Unit. An attached or detached building containing one or more rooms wherein the occupants of each dwelling unit are living and functioning together as a single housekeeping unit, meaning that they have established ties and familiarity with each other, jointly use common areas, interact with each other, share meals, household activities, expenses and responsibilities, membership in the single housekeeping unit is fairly stable as opposed to transient and members have some control over who be comes a member of the single housekeeping unit. Dwelling, Multiple Family Residential. One or more buildings located on a lot containing a total of two or more dwellings within a structure. Dwelling, Single-Family. An attached or detached building not to contain more than one kitchen wherein the occupants of the dwelling unit are living and functioning together as a single housekeeping unit, meaning that they have established ties and familiarity with each other, jointly use common areas, interact with each other, share meals, household activities, expenses and responsibilities, membership in the single housekeeping unit is fairly stable as opposed to transient and members have some control over who becomes a member of the single housekeeping unit. 193 Item 11. Created: 2021-05-05 12:38:43 [EST] (Supp. No. 5, Update 1) Page 6 of 21 Dwelling, Tri-plex. A building designed for occupancy by three families living independently of each other and containing three dwelling units under one common roof. Dwelling, Two-Family or Duplex. An attached or detached building containing two Dwelling Units wherein the occupants of each Dwelling Unit are living and functioning together as a single housekeeping unit, meaning that they have established ties and familiarity with each other, jointly use common areas, interact with each other, share meals, household activities, expenses and responsibilities, membership in the single housekeeping unit is fairly stable as opposed to transient and members have some control over who becomes a member of the single housekeeping unit. E Establishment with Drive-up Service. A business or institution providing services accessible to persons who remain in their automobiles. F Family. One or more persons living together as a single housekeeping unit in a dwelling unit. A family includes the residents of residential care facilities and group homes for people with disabilities. A family does not include larger institutional group living situations such as dormitories, fraternities, sororities, monasteries or nunneries. Family Day Care Home, Large. A dwelling that regularly provides care, protection, and supervision for 12 or fewer children under the age of ten, in the provider's own home, for periods of less than 24 hours per day. Family Day Care Home, Small. A dwelling that regularly provides care, protection, and supervision for one to six children inclusive, including children under the age of ten. Fire Arm Sales or Firearms Business. An establishment having at least 25 percent of its gross floor area devoted to the sale of fire arms, ammunition and ammunition components, and hunting or shooting equipment. Floor Area, Gross. The total horizontal area of all the floors of a building included within the surrounding walls, exclusive of vent shafts and courts. Floor Area, Net. The total useable floor area within all floors of a building included within the surrounding walls. Floor Area Ratio. The numerical value obtained through dividing the gross floor area of a building or buildings by the total area of the lot or parcel of land on which such building or buildings are located. Food and Beverage Sales. A business establishment where the primary use involves the retail sales of food and beverages for off-site preparation and consumption. Typical uses include grocery markets and delicatessens. This category does not include liquor stores. Food Manufacturing. A business establishment engaged in manufacturing, processing, and/or packaging of food products for wholesaling and distribution. This use may include incidental direct sale to consumers of the products manufactured on-site, souvenirs, and ancillary tasting facilities for the public. Frontage. The frontline of a site, separating the site from the street. G Garage, Parking Garage. A structure with a common vehicular entrance and exit which is used by vehicles in parking spaces and which otherwise conforms to the requirements of this Zoning Code. Garage, Private. A detached accessory building, or a portion of a main building on the same lot, enclosed on three sides and with a door capable of enclosing the fourth side, for the parking or temporary storage of vehicles owned by the occupants of the premises. 194 Item 11. Created: 2021-05-05 12:38:43 [EST] (Supp. No. 5, Update 1) Page 7 of 21 General Plan. The General Plan of the City of Cudahy, consisting of the General Plan and Map, adopted by the City Council. Grade, Existing. The surface of the ground or pavement at a specific location as it existed prior to disturbance in preparation for a construction project. Grade, Finished. The finished surface elevation of the ground or pavement at a specific location after the completion of a construction project. Grade, Ground Level. The average level of the finished ground surface surrounding a building, measured at the center of all walls of the building. Gradient. The rate of vertical change of a ground surface expressed in a percentage and determined by dividing the vertical distance by the horizontal distance. Group Home (Unlicensed) or Unlicensed Group Home. A single family dwelling unit with six or fewer occupants who are all (other than the house manager) considered disabled under state or federal la w, but not licensed by the state. Guest House. Refers to living quarters, having no kitchen facilities, located within an accessory building located on the same premises with a main building and occupied solely by members of the family, temporary guests, or persons permanently employed on the premises. Guest Room. A room designed for or occupied as sleeping quarters by one or two persons, providing lodging for compensation. H Hazardous Waste. Any waste, or combination of wastes, which because of its quantity, concentration, or physical, chemical, or infectious characteristics may: a) exhibit toxicity, corrosivity, flammability, and/or reactivity; b) cause, or significantly contribute to, an increase in serious irreversible, or incapacitating reversible, illness; or, c) present a substantial present or potential hazard to human health or the environment when improperly treated, stored, transported, or disposed of, or otherwise managed. Hazardous Waste Facility. All contiguous land, structures, other appurtenances, and improvements within a property, used for handling, treating, storing, or disposing of hazardous wastes. Health and Physical Fitness Facility. A private athletic clubs and gymnasiums including, but not limited to, weight training facilities, aerobic exercise floors, racquetball courts, swimming pools, and similar athletic facilities. Height. See "Building height". Home Occupation. An occupational activity carried on by the occupant(s) of a residential dwelling as a secondary use in connection with which there is no display, no walk -in customers, no stock-in-trade, nor commodity sold upon the premises, no person employed, and no mechanical equipment used, except such as is necessary for housekeeping purposes. Hospital. A facility providing medical, surgical, psychiatric, and/or emergency medical services to sick or injured persons, primarily on an inpatient basis. This classification includes incidental facilities for out-patient treatment, as well as training, research, and administrative services for patients and employees. Hotel or Motel. One or more buildings containing guest rooms or dwelling units, with one or more such rooms or units having a separate entrance leading directly from the outside of the building or from an interior court. Such facilities are designed to be used, or intended to be used, rented, or hired out for temporary or overnight accommodations for guests, and are offered primarily to patrons by signs or other advertising media. This classification may contain public meeting rooms and eating, drinking, and banquet services associated with the facility. Hot Tub. See "Swimming pool". 195 Item 11. Created: 2021-05-05 12:38:43 [EST] (Supp. No. 5, Update 1) Page 8 of 21 Household. A single individual or group of individuals, unrelated or related by blood or marriage, residing in a dwelling unit. Household Pet. A domesticated animal commonly maintained within a residence. I Industrial Complex. Any group of three or more industrial uses on a parcel or combination of parcels which are generally served either by common access or common parking, or single industrial use occupying at least 100,000 square feet of floor area. In-ground pool. See "Swimming pool". J Junk Yard. The use of a lot, or the use of any portion of a lot, for the dismantling of machinery or for the storage or keeping for sale of parts and equipment resulting from such dismantling or wrecking, or for the storage or keeping of junk, including scrap metals or other scrap materials. K Kennel. Any lot or premises on which four or more dogs or cats at least four months of age are boarded or trained. Kitchen. A room in a building or dwelling unit that is used in the cooking or preparation of food. L Laboratory. An establishment providing analytical or testing services, including, but not limited to, chemical labs, dental-medical labs, optical labs, and labs conducting mechanical, electrical, physical, or environmental tests, as well as research and development. Landscaping. The planting and maintenance of live trees, shrubs, ground cover, and lawn areas, including the installation of irrigation systems required by the provisions of this Zoning Code. "Landscaping" may include inorganic decorative materials of natural or man-made origin if used to accent or complement, but in no case imitate, the natural vegetation. Inorganic decorative materials used in landscaping may include rock, stone, wood, waterfall, fountains, pools, sculptures, benches, and architectural screens, w alls, and fences. Liquor Store. A business establishment having at least 50 percent of its gross floor area used for the sale of alcoholic beverages intended for off-site consumption. Loading Space. An off-street space on the same lot with a main building, or contiguous to a group of buildings, for the temporary parking of commercial vehicles while loading or unloading, and which has access from a street, alley, or other permanent means of ingress and egress. Lodging House. A residence or dwelling, other than a hotel, wherein lodging and meals are provided to four or more persons for compensation, whether direct or indirect. In determining the number of persons lodging in a lodging house, all residents shall be counted, including an owner, agent or manger. Lot. Real property with a separate and distinct number or other designation shown on a plat recorded in the office of the County Recorder as a part of an approved subdivision, shall also mean (1) a parcel of real property when shown as a delineated parcel of land with a number of other designations on a plat recorded in the Office of the County Recorder of Riverside County; or (2) a parcel of land the dimensions or boundaries of which are defined by a record of survey recorded pursuant to the provisions of the Subdivision Map Act of the State of California in the Office of the County Recorder of Riverside County; (3) a parcel of real property not delineated as in (1) or (2) above, and containing not less than the prescribed minimum square footage required in the zone in which it is located and which abuts at least one public street, and alley or a private easement determined by the Commission to be adequate for purposes of access from a street; (4) a parcel of land registered under Land Title Law (Torrens Title) and held under separate ownership from adjacent property on the effective date of this Ordinance. 196 Item 11. Created: 2021-05-05 12:38:43 [EST] (Supp. No. 5, Update 1) Page 9 of 21 Lot, Area. The total area, measured in a horizontal plane, included within the lot lines of a lot or parcel of land. Lot, Corner. A lot located at the intersection of two or more streets at an angle of not more than 135 degrees. If the angle is greater than 135 degrees, the lot shall be considered an interior lot. Lot, Cul-de-sac. A lot fronting on, or with more than one-half of its lot frontage, on the turnaround end of a cul-de-sac street. Lot, Depth. The horizontal distance between the front and rear lot lines, measured in the mean direction of the side lot lines. Lot, Interior. A lot other than a corner or reverse corner lot. Lot, Key. Any lot where the side property line abuts the rear property line of one or more lots, and where such lots are not separated by an alley or any public way. Lot Line. Any line bounding a lot as defined in this section. Lot Line, Exterior. A lot line abutting a street. Lot Line, Front. On an interior lot, the front lot line of the property line abutting the street, except in those cases where the latest tract deed restrictions specify another line as the front lot line. On a corner or reve rsed corner lot, the front lot line is the shorter property line abutting a street. On a through lot, or a lot with three or more sides abutting a street, or a corner or reversed corner lot with lot lines of equal length, the Zoning Administrator shall determine which property line shall be the front lot line for purposes of compliance with the setback provisions of this Zoning Code. Lot Line, Interior. A lot line not abutting a street. Lot Line, Rear. A lot line not abutting a street that is opposite and most distant from the front lot line. For triangular lots where there is no rear lot line, the rear lot line shall be defined as the point at which the side lot lines intersect. Lot Line, Side. Any lot line that is not classified as a front lot line or rear lot line. Lot Line, Zero. A lot line that does not have any side-yard setback. Lot, Reverse Corner. A corner lot, the side line of which is substantially a continuation of the front lot lines of the lot to its rear. Lot, Through. A lot having frontage on two parallel or approximately parallel streets. A through lot may have no rear lot line. Lot; Width. The horizontal distance between the side lot lines measured at right angles to the lot depth line at a distance located midway between the front and rear lot lines. M Main Building. A building that is designed, and used for, or intended to be used, to accommodate the principal use on the lot. In residential zones, any dwelling shall be considered the main building on the lot. Maintenance and Repair Services. An establishment providing household appliance repair, furniture repair, office machine repair, bicycle repair, or building maintenance services. This classification excludes maintenance and repair of motor vehicles, boats, or ships. Mansard or Mansard Roof. A roof having two slopes on all sides with the lower slope steeper than the upper one. 197 Item 11. Created: 2021-05-05 12:38:43 [EST] (Supp. No. 5, Update 1) Page 10 of 21 Manufactured Housing. A mobile home, or manufactured housing unit, as defined by and installed in accordance with California Health and Safety Code Section 18008 and 18551, respectively, and factory -built housing as defined by California Health and Safety Code Section 19971. Medical Clinic. Any facility providing physical or mental health service, and medical or surgical care of the sick or injured, but shall not include inpatient or overnight accommodations. Activities included within this definition are health centers, health clinics, and doctors' offices. Mini-storage, Mini-warehouse, Self-storage or Public-storage means an operation serving the public where customers rent or lease, or self-store and have direct access to, individual storage areas, compartments, or facilities rooms within a larger structure or structures provided for storage use. This use may also include limited caretaker facilities. Mobile Home. A movable or transportable vehicle, other than a motor vehicle, intended for occupancy for one family, and having no foundation other than jacks, piers, wheels or skirtings. All mobile homes located on lots must be a minimum of 450 square feet, with a minimum of ten feet in width. All mobile homes must have a complete sanitary facilities, including a lavatory, flush type toilet, tub or shower, and kitchen sink, all connected to sewage outlets in conformity with state, county and health requirements. Mortuary. An establishment providing services such as preparing the deceased for burial, and arrangin g and managing funerals and related services, and may include limited caretaker facilities. This classification excludes cemeteries, crematoriums, and columbariums. Motel. One or more buildings containing more than five completely furnished individual guest rooms with one or more such rooms or units having a separate entrance leading directly from the outside of the building or an inner court. Such facilities are designed, used, or intended to be used, rented or hired out as temporary or overnight accommodations for guests, and are offered primarily to automobile tourists or transients. Motels include auto courts, motor lodges, and tourist courts. N Nonconforming. A building and/or improvement, or portion thereof, which does not conform improvement to current Zoning Code regulations. Nonconforming use, any use of land or property that was lawfully established and in effect at the lawful or legal time this Zoning Code or any amendment became effective, but no longer complies with all of the applicable regulations and standards of the zone in which the use is located. Nonconforming any structure or improvement that was lawfully established and in existence structure, lawful at the time this Zoning Code or any amendment became effective, but no or legal longer complies with all of the applicable regulations and standards of the zone in which the structure or improvement is located. O Offices. Administrative, clerical, or public contact offices of a government agency, government including postal facilities, together with incidental storage and maintenance of vehicles. Offices, Medical. Offices or health facilities providing health services, including without limitation, preventative and rehabilitation treatment, diagnostic services, and testing and analysis, but excluding inpatient services and overnight accommodations. This classification includes without limitation offices providing medical, dental, surgical, rehabilitation, podiatric, optometric, chiropractic, and psychiatric services, and medical or dental laboratories incidental to such offices. Offices, Professional. Offices for firms or organizations providing professional, executive, management or administrative services, such as architectural, engineering, real estate, insurance, investment, or legal offices. This classification excludes savings and loan associations, banks, and medical offices. Off-Street Parking Facility. A lot, or portion thereof, improved and used for the parking of vehicles, including, but not limited to, enclosed garages and parking structures, open parking areas, aisles, driveways, and appurtenant landscaped planters and their improvements. 198 Item 11. Created: 2021-05-05 12:38:43 [EST] (Supp. No. 5, Update 1) Page 11 of 21 Open Space, Useable (Useable Open Space). Open space upon the lot or parcel to which it is appurtenant, which can be used by inhabitants of the property for outdoor living, activity and/or recreation and may include landscaping. Each linear dimension of such space shall be a minimum of six feet. Balconies may be credited as "usable open space" provided they each have linear dimensions of a minimum of five feet. Enclosed recreation or multi-purpose activity rooms may be credited as "usable open space." All such areas shall be readily accessible to the inhabitants of the property. "Usable open space" does not include driveways, open or covered park ing areas, utility space such as trash or garbage areas, or space occupied by the required front yard setback. For the R -MF zone, the following minimum usable open space is required for: 1. Each studio apartment, 200 square feet; 2. Each one-bedroom apartment, 200 square feet; 3. Each two-bedroom apartment, 200 square feet plus 100 square feet making a total of 300 square feet; 4. Each additional bedroom an additional 100 square feet. The computation of usable open space provided shall be as follows: 1. The following areas shall be computed at 1.25 times the area actually devoted to such use: a. Private patios, when directly accessible to the dwelling unit to which it is appurtenant; such patios shall be completely enclosed on all sides by a fence which is a minimum of five feet in height; b. Balconies and lanais, when directly accessible to the unit to which they are appurtenant; such balconies and lanais must have a minimum dimension of five feet; and c. Swimming pool areas, including the hard surface deck, which normally surrounds such pools. Deck area more than 25 feet from the edge of the pool will not be counted as open space under this recreation activity rooms, provided these rooms are permanently maintained for the use of tenants for various recreation activities. Such activity rooms shall not include lobbies, but may include common steam rooms, sauna baths, or the like. 2. All other areas meeting usable open space requirements shall be credited with the actual area (squa re feet) provided. 3. No area will be considered as usable open space if it has any dimension less than six feet except balconies. Outdoor Advertising. The use of signs or other measures soliciting public support or directing public attention to the sale, lease, hire, or use of any objects, products, services, or functions which are not produced, sold, or otherwise available on the premises where such signs are erected or maintained. Outdoor Living Space. Either an open passive landscaped area specifically designed, improved, and maintained to enhance the architectural design, privacy, and general environmental quality of a residential development or an easily accessible public or private activity area specifically designed, improved, and maintained for outdoor living and/or recreation by occupants of the residential development. Outdoor Storage use means establishments that engage primarily in the outdoor storage of goods, materials (except temporary storage of construction materials associated with an active building permit), machines, vehicles, trailers, and other equipment. P Parcel. A contiguous quantity of land owned by, or recorded as the property of, the same claimant or person. 199 Item 11. Created: 2021-05-05 12:38:43 [EST] (Supp. No. 5, Update 1) Page 12 of 21 Parking Space. A space within an off-street parking facility that has the minimum attributes of size, location, and design specified in Article 21 (Parking requirements) of this Zoning Code. Parks and Recreation Facilities. Uses that include, but are not limited to, land and interests in land; swimming pools; tennis, volleyball and basketball courts; baseball grounds; play areas; turf; sprinkler systems; community center buildings; recreation buildings; and other works, properties, structures, and facilities necessary or convenient for public park, playground, or recreation purposes. Pawn Shop. A business establishment engaged in the buying or selling of new or secondhand merchandise and offering loans secured by personal property. Performance Art. A public building used for theatrical performances, concerts, recitals, a nd facilities similar entertainment. This classification excludes commercial cinemas or theaters. Personal Convenience Service. A business establishment providing recurrently-needed services of a personal nature. This classification includes, but is not limited to, barber and beauty shops, seamstresses, tailors, shoe repair shops, photocopying, retail dry cleaning establishments (excluding wholesale dry cleaning plants), self - service laundromats, and similar services. This classification excludes massage parlors, tattoo parlors, and/or skin piercing establishments. Personal Improvement Service. A business establishment providing instructional services or facilities, including, but not limited to, photography, fine arts, crafts, dance or music studios, driv ing schools, modeling agencies, reducing salons, and health or physical fitness clubs. Incidental instructional services associated with a retail use shall be classified as "retail sales" rather than "personal improvement services." Planned Unit Development. The planning, construction, or implementation and operation of any use or structure, or a combination of uses and structures, on a single parcel of land based on a comprehensive and complete design or plan treating the entire complex of land, structures, and uses as a single project. Plant Nursery. A site used to raise trees, shrubs, flowers, and other plants for sale or for transplanting, and where all merchandise (other than plants) is kept within an enclosed building or fully -screened enclosure, and fertilizer of any type is stored and sold in package form only. Pre-existing. In existence prior to the effective date of this Ordinance. Public Building. A building owned and operated by a public agency for public use. Public Safety Facility. A public facility providing public safety and emergency services, including police and fire protection, and associated support and training facilities. Public Utility Facility. A building or structure used by any public utility including, but not limited to, any gas treatment plant, reservoir, tank, or other storage facility, water treatment plant, well, reservoir, tank or other storage facility, electric generating plant, distribution or transmission substation, telephone switching or other communications plant, earth station or other receiving or transmission facility, any storage yard for public utility equipment or vehicles, and any parking lot for parking vehicles or automobiles to serve a public utility. The term "public utility" shall include every gas, electrical, telephone and water corporation serving the public or any portion thereof for which a certificate of public convenience and necessity has been issued by the State Public Utility Commission. Q R Recreational Facility. A publicly-owned and operated recreational structure or building, such as a tennis court, swimming pool, multi-purpose community building, or similar use. Recyclable Material. A reusable material, including, but not limited to, metals, glass, plastic, and paper, and which is intended for reuse, re-manufacture, or reconstitution for the purpose of using the altered form. 200 Item 11. Created: 2021-05-05 12:38:43 [EST] (Supp. No. 5, Update 1) Page 13 of 21 "Recyclable material" shall not include refuse or hazardous materials. "Recyclable material" may include used motor oil collected and transported in accordance with Section 25250.11 and Section 25143.2(b)(4) of the State Health and Safety Code. Recycling Facility. A center for the collection and/or processing of recyclable materials. "Certified recycling facility" or "certified processor" refers to a recycling facility certified by the State Department of Conservation as meeting the requirements of the State Beverage Container Recycling and Lifter Reduction Act of 1986. A recycling facility does not include storage containers or processing activities located on the premises of a residential, commercial, or manufacturing use, and used solely for the recycling of material generated by such residential property, business, or manufacturer. Recycling, Collection Facility. A center for the acceptance of recyclable materials from the public by donation, redemption, or purchase. Recycling, Processing Facility. A building or enclosed space used for the collection and processing of recyclable materials. "Processing" means the preparation of material for efficient shi pment, or to an end-user's specifications, by such means as baling, briquetting, compacting, flattening, grinding, crushing, mechanical sorting, shredding, cleaning, and re-manufacturing. Rental Units. A housing unit leased for the occupancy of a residential household. Residence. One or more rooms designed, used, or intended to be used as permanent living quarters for a household, and not as temporary or overnight accommodations. Residential Care Facility, Licensed. A residential care facility licensed or supervised by any federal, state, or local agency, which provides housing and nonmedical care for children, elderly persons, or physically and mentally handicapped persons in a family-like environment. These facilities include the following: (a) An intermediate care facility, developmentally disabled habilitative and intermediate care facility/developmentally disabled-nursing or a congregate living facility as identified in State of California Health and Safety Code section 1267.8; (b) A community care facility as identified in State of California Health and Safety Code section 1566.3; (c) A residential care facility for the elderly as identified in State of California Health and Safety Code section 1569.85; (d) An alcoholism or drug abuse recovery or treatment facility as identified in State of California Health and Safety Code section 11834.02; (e) A home for the care of mentally disordered or otherwise handicapped persons as identified in State of California Welfare and Institutions Code section 5116; (f) A home for the care of dependent and neglected children as identified in the State of California Welfare and Institutions Code section 300, but not including wards of the court as identified in the State of California Welfare and Institutions Code section 601ff. Rest Home. See "Convalescent home". Restaurant, Sit Down. A business establishment that is maintained, operated, and/or advertised or held out to the public as a place where food and beverage are served to the public on demand from a menu during stated business hours, served in and on reusable containers and din nerware, to be consumed on the premises primarily inside the building at tables, booths, or counters, with chairs, benches, or stools. This use may include incidental delivery service utilizing no more than two delivery vehicles. Restaurant, Fast-Food. A business establishment that is maintained, operated, and/or advertised or held out to the public as a place where food and beverage are served to customers from a serving counter in disposable 201 Item 11. Created: 2021-05-05 12:38:43 [EST] (Supp. No. 5, Update 1) Page 14 of 21 containers or wrappers and where food and meals are generally prepared in advance for immediate sale, and which may include inside seating, drive-through service, delivery service, and take-out/carry-out service. Restaurant, Delivery. A place where orders for food and beverages may be placed in person or by telephone , facsimile, copier, or other off-site means of communication, from a limited menu, and which orders are delivered to a location directed by the customer. Restaurant, Take-out. A business establishment that is maintained, operated, and/or advertised or he ld out to the public as a place where food and beverages are served in disposable containers or wrappers from a serving counter for consumption exclusively off the premises. Retail Sales. A business establishment engaged in the retail sale of merchandise not specifically listed under another use classification as defined in this section. This classification includes, but is not limited to: department stores, clothing stores, furniture stores, and businesses retailing the following goods: toys, hobby materi als, handcrafted items, jewelry, cameras, photographic supplies, books, electronic equipment, records, sporting goods, kitchen utensils, hardware, appliances, antiques, art supplies, paint and wallpaper, carpeting and floor covering, office supplies, bicycles, and new automotive parts and accessories (excluding service and installation). This classification excludes thrift shops and pawnshops. Room. An unsubdivided portion of the interior of a dwelling, excluding bathrooms, kitchens, closets, hallways, and service porches. S School, Elementary, Junior High, and High. An institution of learning which offers instruct on in the several branches of learning and study required to be taught in the public schools by the Education Code of the State of California. School, Private. An educational institution having a curriculum comparable to that required in the public schools of the State of California. Secondary (or second) Unit. A detached dwelling unit that provides complete, independent living residential unit facilities for one or more persons. A secondary residential unit shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same lot on which the primary unit is situated. Senior Housing. A housing development project in which 100 percent of the project rental units are intended to be occupied by persons who are 62 years of age or older, or married couples, of which one spouse is over 62 years of age. Service Station. See "Vehicle, service station". Setback. A required open space on an improved lot that is unoccupied by buildings and unobstructed by structures from the ground upward, except for projections and accessory buildings permitted by the provisions of this Zoning Code. Setbacks shall be measured as the shortest distance between a property line and the nearest vertical support or wall of the building, enclosed or covered porch, or other structure. Setback, Between. A required open space between separate buildings or between separate buildings or dwelling units on the same lot or building site. Such setback shall be setback between measured as the minimum distance between the nearest vertical support dwelling units or wall of each building or enclosed or covered porch. Setback, Exterior Side. A side setback abutting a street. Setback, Front. A setback extending across the full width of the front of the lot, the minimum and/or average dimensions of which are determined by the property development standard of the applicable zone in which such lot is located. 202 Item 11. Created: 2021-05-05 12:38:43 [EST] (Supp. No. 5, Update 1) Page 15 of 21 Setback, Rear. A setback extending across the full width of the rear of a lot, the minimum and/or average dimensions of which are determined by the property development standards of the applicable zone in which such lot is located. Setback, Side. A setback extending from the required front setback to the required rear setback, or to the front and/or rear property lines where no front and/or rear setback is required by the provisions of this Zoning Code, the minimum and average dimensions of which are determined by the property development standards of the applicable zone in which such lot is located. Sign. Any card, cloth, plastic, paper, metal or other material or painted character visible from outside of a structure for advertising purposes, mounted to the ground or any, tree, building, wall, bush, rock, fence or structure,. whether privately or publicly owned. "Sign", means any graphic announcement, declaration, demonstration, display, illustration, insignia or object used to advertise or promote t he interest of any person or business when the same is placed out-of-doors in view of the general public. This definition shall not include the display of. the American flag, flag of the State, county, public entity or City flag. Sign, A-Frame. A freestanding sign usually hinged at the top or attached in a similar manner, and widening at the bottom to form a shape similar to the letter "A." Such signs are usually designed to be portable, and are not considered to be permanent signs or displays. Sign, Animated Signs. Signs designed to attract attention through movement or the semblance of movement of the whole or any part including, but not limited to, signs which swing, twirl, move back and forth or up and down; or signs which change color or shades of color; or any other method or device which suggests movement. Animated signs do not include flags and banners, time and temperature signs. Sign, Announcement or Bulletin Board Signs. Signs permanent in character designed to accept changeable copy, handbills, posters and matters of a similar nature. Sign, Area of Sign. The area of a sign shall include the entire area within a series of rectangles whose outermost boarders are defined by the outermost extent of any writing, representation, emblem, figure, chara cter or separate sign surface. When letters comprising a sign message are placed on a background or field which is different in color or materials from the architectural features of the building on which the sign is mounted, the sign area shall be calculated as the entire area comprising the overall sign feature. In the case of a two-sided sign, the area shall be computed as including only the maximum single display surface that is visible from any ground position at one time. The supports or uprights on wh ich any sign is supported should not be included in determining the sign area unless such supports or uprights are designed in such a manner as to form an integral background of the sign. In the case of any cylindrical or spherical sign, the total area sha ll be computed on the total area of the surface of the sign. Sign, Awning Sign. A sign painted or printed on the exterior surface of an awning. An alternative to a wall sign, permitted as same. Sign, Balloon. One or more balloons used as a permanent or temporary sign or as a means of directing attention to any business or profession, or to a commodity or service sold, offered, or manufactured, or to any entertainment. Sign, Banner. A fabric or fabric-like material on which an advertising message is painted or otherwise affixed. Sign, Billboard. A sign that directs attention to a business, profession, product, commodity or service offered on the site on which the sign is located. Signs, Changeable Copy. Copy for temporary use which is changed at periodic intervals and which may be utilized on pylon, monument, wall, bulletin board or announcement signs. Sign, Commercial Complex. Any group of three or more commercial uses on a parcel or combination of parcels which are generally served either by common access or common parking, or large single commercial use occupying at least two and one-half acres with a minimum of 200 feet of street frontage. 203 Item 11. Created: 2021-05-05 12:38:43 [EST] (Supp. No. 5, Update 1) Page 16 of 21 Sign, Construction Signs. Signs stating the names of those individuals or businesses, such as architects, engineers, contractors, or owners directly connected with a construction project and/or the name of the project, the address of the business, and emergency telephone numbers. Sign, Directional Signs. Signs which contain any of the following words: "Entrance", "enter", "out", "one-way" or other words, or words which contain nonflashing arrows or other characters indicating traffic direction. Sign, Electronic Message Sign. A sign having the capability of presenting variable message displays, including time and temperature, by projecting an electronically controlled light pattern against a contrasting background and which can be programmed to change the message display periodically. Sign, Flag. A device, generally made of flexible materials, usually cloth, paper or plastic, usually used as a symbol of a government, school, religion, etc. It may or may not contain any copy. Sign, Flashing Signs. Lighted signs which in whole or in part disappear and reappear at periodic intervals, or are intermittently on and off, and which are placed so as to attract vehicular traffic with emphasis on the recurrence of lights as in those types generally referred to as "nervous" signs, arrows, stars, etc., and/or beacon signs. Sign, Freestanding. A sign that is completely supported by structures or other supports that are placed on or anchored in the ground and are independent from any building or other structure. Sign, Height of Signs. The distance from the average ground level immediately surrounding the base of the sign to the top of its highest element, including any structural or architectural element. Landscape mounding shall not be used to artificially increase the height of a sign. Sign, Monument Signs. A sign with an overall height of six feet or less, standing directly on the ground or on a base of where supporting poles or structures, if any, are enclosed by decorative covers. Sign, Nameplate. Signs naming the occupant of the premises, the business and/or address. Sign, Off-site Signs. Any sign which advertises or informs in any manner businesses, services, goods, persons or events at some location other than that upon which the sign is located. Sign, Painted Signs. Signs painted on the exterior surface of a building or structure. Painted signs do not Sign, Pennant. A device generally made of flexible materials, usually cloth, paper or plastic. A pennant may or may not contain any copy and is primarily intended to draw attention. Sign, Pylon Sign. A sign with an overall height exceeding six feet and having one or more decorative supports permanently attached directly into or upon the ground. Sign, Political Signs. Political signs are signs setting forth a political message with respect to an upcoming federal, State or local governmental election. Sign, Portable Signs. Signs not designed to be attached to a building or anchored to the ground, including "A" boards, sandwich signs and signs attached to a fence/wall. Sign, Poster Signs. Any sign attached to the ground in a manner approved by the building official, which may be visible from adjacent streets or highways. Sign, Projecting Signs. Signs including wall signs which are suspended from or supported by a building or wall and which project from said building or wall. Sign, Real Estate Signs. All signs and sign structures relating to the sale, lease or other disposition of the real property on which the sign is located and which are temporary in nature. Sign, Revolving Signs. Signs, all or a portion of, which rotate in a constant, circular manner. 204 Item 11. Created: 2021-05-05 12:38:43 [EST] (Supp. No. 5, Update 1) Page 17 of 21 Sign, Roof Signs. Any sign supported by or attached to or projecting through the roof of a building or structure, or projecting above the eave line or parapet wall of the building or structure. Sign, Special Event Sign. A temporary sign, which advertises special events and activities such as grand openings, charitable events, Christmas trees, fireworks, or as specified by the Planning Director. Sign Structure. The supports, uprights, bracings, guy rods, cables and other structural framework of a sign or outdoor display. Sign, Temporary Signs. Signs erected for a temporary purpose not exceeding 45 days, including banners, pennant valances, streamers, balloon signs, inflated devices, search lights, beacons, costumed or live persons, moving stuffed animals, or advertising light or similar materials used for advertising purposes attached to or pinned on or from any structure, staff, pole, line, framing, vehicle or other object. Sign, Time and Temperature Sign. An electronically controlled sign with illuminated flippers or light bulbs for the sole purpose of displaying the time, and temperature (F. and/or C.) at intermitte nt intervals. Under Canopy Signs. A sign with a single or double face copy attached to the underside of a projecting canopy perpendicular to the building frontage. Sign, Unofficial (Non-Regulatory) Signs. Signs located on public property (e.g., street or median island, parkway, sidewalk, traffic control sign posts, utility poles, park land, trees, etc.). Sign, Vehicle Signs. Signs on or affixed to trucks, vans, automobiles, trailers, or other vehicles which advertise or provide direction to a use or activity not related to its lawful making of deliveries or sales of merchandise or rendering of service from such vehicles. Sign, Wall Signs. Signs which are in any manner affixed to any exterior wall of a building or structure, the exposed face of which is in a plane parallel to the plane of the wall and which projects not more than 12 inches from the building or structure wall. Sign, Window Signs. Signs painted, attached, glued or otherwise affixed to a window or otherwise easily visible from the exterior of the building. Sign, Wall Murals. The decoration on the exterior surface of a structure with scenic, architectural or artistic paints which in themselves do not identify or advertise any product, service or business. A wall mural is a sign if it is related by language, logo or pictorial depiction to the advertisement of any product or service or the identification of any business. Snack Shop. A business establishment that is maintained, operated, and/or advertised or held out to the public as serving snack foods, such as donuts, ice cream, yogurt, candy, cookies, bakery items, beverages, and similar items to be consumed either on the premises or off the premises. Solid Fill. Any noncombustible materials insoluble in water, such as soil, rock, sand, or gra vel, that can be used for grading land or filling depressions. Spa, Non-Portable. See "Swimming pool". Spa, Portable. A non-permanent structure intended for recreational bathing, in which all controls, water - heating, and water-circulating equipment are an integral part of the product and which is cord-connected (not permanently electrically wired). Story. "Story" as defined in the currently adopted and effective Uniform Building Code of the City. Story-Half. A story with at least two of its opposite sides situated immediately under a sloping roof, with the floor area of said story not in excess of two-thirds of the floor area of the floor immediately below it. Street. A public thoroughfare or right-of-way acquired for use as such, or an approved private thoroughfare or right-of-way, other than an alley, which affords the principal means of access to abutting property. "Street" shall include all major and secondary highways, traffic collector streets, and loca l streets. 205 Item 11. Created: 2021-05-05 12:38:43 [EST] (Supp. No. 5, Update 1) Page 18 of 21 Street, Center line. See "Center line". Street Line. The boundary line between the street right-of-way and abutting property. Structural Alteration. Any change in the supporting members of a building, such as bearing walls, columns, beams, girders, floor joists, ceiling joints, or roof rafters. Structure. Any physical improvement constructed or erected, including an edifice or building of any kind, or any piece of work artificially constructed or composed of parts jointed together in some definite manner, and which structure requires location on or in the ground or is attached to another improvement or in the ground, including fences, walls, swimming and wading pools, and patios. Swap Meet. Any indoor or outdoor place, location, or activity where new or used goods or secondhand personal property is offered for sale or exchange to the general public by a multitude of individual licensed vendors, usually in compartmentalized spaces; and, where a fee may be charged to prospective buyers for admission, or a fee may be charged for the privilege of offering or displaying such merchandise. The term "swap meet" is interchangeable with, and applicable to, flea markets, auctions, open air markets, farmer's markets, or other similarly named or labeled activities; but the term does not include the usual supermarket or department store retail operations. Swimming Pool. Any structure intended for swimming, diving, or recreational bathing that contains water over 24 inches deep. This includes in-ground, above-ground, and on-ground swimming pools, hot tubs, and spas. Swimming Pool, Indoor. A swimming pool which is totally contained within a residential structure and surrounded on all four sides by walls of said structure. Swimming pool, Outdoor. Any swimming pool which is not an indoor pool. Structure Advertising. A structure existing, erected, or maintained to serve exc lusively as a stand, frame, or background for the support or display of signs. T Thrift Shop. A business establishment primarily engaged in the sale of used clothing, household goods, furniture, or appliances. This classification does not include antique shops. Tire - a rubber covering, typically inflated or surrounding an inflated inner tube, placed around a wheel to form a flexible contact with the road. May include new or used tires. Tire Repair – the process of mending a hole, tear, fissure or blemish in a tire by including but not limited to grinding, gouging, applying adhesive or filling a hole or crevice with rubber. Tire Store - an establishment where the sale, installation or storage of new or used or retread tires and tubes is conducted with or without other products or services. Tire store does not include a retreading establishment, collection, reduction or transfer of tires. Townhouse. A single-family dwelling which visually appears to share one or more common walls with an adjacent single-family dwelling, but which, in fact, is structurally and functionally independent of any other single - family dwelling. Trailer Coach. Any vehicle, with or without motor power, designed or used for human habitation and constructed to travel on the public thoroughfares in accordance with the provisions of the California State Vehicle Code. Trailer Park. A site designed and equipped for the harboring, parking, or storing of one or mobile home park more trailers or mobile homes being used as living and/or sleep ing quarters. Trailer Site. That portion of a trailer park designated for use or occupancy of one trailer coach and including all appurtenant facilities. 206 Item 11. Created: 2021-05-05 12:38:43 [EST] (Supp. No. 5, Update 1) Page 19 of 21 Transfer Station. An area, including any necessary building or structures, for the temporary waste storage and the salvage of rubbish, garbage, or industrial waste. This definition also includes material recovery facilities. Triplex. A structure containing three individual residential dwelling units. Truck Yard or Truck Terminal means a type of outdoor storage use whereby an outdoor lot, lot area, or parcel of land used, is designed and maintained primarily for the purpose of storing, parking, dispatching, or keeping trucks, tractors, construction equipment and associated equipment together with or with out facilities necessary to service, dispatch, store or maintain aforementioned vehicles, their cargos and crews. Also applies to a business engaged in the storage and distribution of goods having more than five heavy trucks (having a rating of more than 10,000 pounds and/or an unladen weight of more than 6,000 pounds) on the premises at any one time but excluding trucking accessory to another industrial use on the site. U Uniform Sign Program. All applications for approval of signs in a shopping center, commercial, industrial or office complex, a group of three or more businesses on a parcel or project site or for commercial recreation uses shall be submitted in the form of a construction, including connections and electrical plans, if any, and shall delineate the typical size, shape, design, material, coloring, lettering, lighting and position of the signage in relationship to the building form or place where it will be displayed. Scaled sketch es of existing signs on the premises shall accompany the application. Use. The purpose for which land or a building is arranged, designed, or intended, or for which either land or a building is or may be occupied, utilized, or maintained. V Variance. A modification of a literal provision of this Zoning Code, granted by an administrative or quasi- judicial act in accordance with the provisions of this Zoning Code. Vehicle. A business engaged in the washing, waxing, cleaning, and/or detailing of automobile washing automobiles or similar light vehicles. Vehicle Body. A business establishment involved in the repairing, restoring, and/or painting and fender shop of the bodies of motor vehicles. Vehicle Rentals. A business engaged in the sale, lease and/or rental of automobiles and light trucks (having a rating of less than 10,001 pounds, an unladen weight of less than 6,001 pounds, and equipped with an open box - type bed less than nine feet in length), including storage and incidental maintenance and repair. Vehicle Repair Garage. Any site and improvements used for the repair and maintenance of automobiles, motorcycles, light trucks (having a rating of less than 10,001 pounds, an unladen weight of less than 6,001 pounds, and equipped with an open box-type bed less than nine feet in length), or other similar passenger vehicles licensed by the State Department of Motor Vehicles. This classification shall not include the repair or maintenance of motor homes or commercial vehicles as defined in Section 3-7.901 of this Zoning Code. "Motor vehicle repair garage" shall be construed broadly to include the place where the following types of commonly -known garage or shop activities occur: tune-up and muffler work, parts and tire sales and installation, wheel and brake work , engine and transmission overhaul, and installation of car alarms and car stereos. "Motor vehicle repair garage" shall not include automobile wrecking, dismantling, or salvage, motor vehicle body and fender shops, or tire retreading or recapping. Vehicle, Service. A business establishment primarily engaged in the retail sale of vehicle fuel station and lubricants. This classification includes facilities having service bays for vehicle service and repair. Such service and repair may include the sale of tires, batteries, and other parts and products related to the operation of a motor vehicle; minor tune-up; lubrication and parts replacement; non-mechanical car-washing, polishing, and waxing; 207 Item 11. Created: 2021-05-05 12:38:43 [EST] (Supp. No. 5, Update 1) Page 20 of 21 and other light work related to preventive maintenance and upkeep, but may not include maintenance and repair of large trucks or other large vehicles, or body and fender work on any vehicles. Vehicle Towing/Storage. A business establishment providing towing and/or storage of operative or inoperative vehicles. This classification includes the storage of parking tow-aways, impound yards, and storage lots for buses and recreational vehicles, but does not include vehicle dismantling. Visual Obstruction. Any physical obstruction which limits the visibility of persons in motor vehicles or pedestrians approaching intersecting or intercepting streets, alleys, driveways, or other public rights-of-way. W Wall or Fence. A structure forming a physical barrier, including, but not limited to, concrete, concrete block, wood, or other materials which are solid and are so assembled as to form a barrier. Warehouse Retail. An off-price or wholesale retail/warehouse establishment exceeding 70,000 square feet of gross floor area and offering a full range of general merchandise to the public. Warehouse Retail, Specialty. An off-price or wholesale retail/warehouse establishment exceeding 30,000 square feet of gross floor area and offering a limited range of merchandise, s erving both wholesale and retail customers. Washroom. Any building, which contains individual laundry facilities and/or bathroom facilities, but does not include kitchen facilities. Wholesaling, Distribution and Storage. A business engaged in storage and distribution, and having five or fewer heavy trucks (having a rating of more than 10,000 pounds and/or an unladen weight of more than 6,000 pounds) on the premises at any one time. Wholesaling establishments may include no more than ten percent or 1,000 square feet of floor area, whichever is less, for the incidental direct sale to consumers of only those goods distributed wholesale. This classification excludes "Mini-warehouses or self-storage facilities" and "Vehicle towing/storage." Wholesale Dry-Cleaning Plant. A dry cleaning establishment having at least 51 percent of its gross sales to licensed dry cleaners. X Y Yard. An open space on a lot or parcel of land, other than a court, unoccupied and unobstructed by a building from the ground upward. Yard, Front. A yard extending across the full width of the lot or parcel of land. The depth of a required front yard shall be a specified horizontal distance between the front lot line, where the front lot line is coterminous with the street line, and the front elevation of the structure located on the parcel. Yard, Rear. A yard extending across the full width of the lot or parcel of land. The depth of a required rear yard shall be a specified horizontal distance between the rear lot line and a line parallel t hereto on the lot or parcel of land. Yard, Side. A yard extending from the required front yard, or the front lot line where no front yard is required, to the required rear yard or the rear lot line where no rear yard is required. The width of a required s ide yard shall be a specified horizontal distance between each side lot line and a line parallel thereto on the lot or parcel of land. Where a side yard is bounded by a street, the width of such required side yard shall be a specified horizontal distance between the side lot line on the street side, where said side lot line is coterminous with the street line of a fully-widened street or the ultimate street line of a partially-widened street, and a line parallel thereto on the lot or parcel of land. Z 208 Item 11. Created: 2021-05-05 12:38:43 [EST] (Supp. No. 5, Update 1) Page 21 of 21 Zoning Map. The Official Zoning Map delineating the boundaries of zones within the City of Beaumont. (Ord. 977, 12/07/2010; Ord. No. 1025, § 3, 9-18-2012 ) 209 Item 11. Created: 2021-08-09 10:13:04 [EST] (Supp. No. 5, Update 3) Page 1 of 8 17.03.120 Permitted uses for Base Zone Districts. The permitted uses for the Base Zone Districts (identified in Section 17.03.040 through 17.03.110) are listed in Table 17.03-3. Table 17.03-3 Permitted Land Uses For Base Zone Districts1 RC PF RR RSF RTN RMF CN CC M UV Administrative Professional Services Administrative/Professional Offices N N N P N N P P P P Advertising Agencies N P N N N N P P C P Architectural/Engineering/Design Services N P N N N N P P P P Attorney/Legal Services N P N N N N P P C P Business Management Services N P N N N N P P C P Government Offices P P P P P P P P P P Travel Agencies N P N N N N P P C P Agricultural Uses Animal Keeping (Commercial Use) N N P C C N C C C C Animal Keeping (Accessory Use) N A A A A A C C C C Animal Rescue Facilities N N P C C N N N C N Apiaries N N P C C N N N N N Aviaries N N P N N N N N C N Catteries N N P C C N C C C C Commercial Growing Establishments N N P N N N N N C N Community Gardens N N P P P P P P N P Dairies N N P N N N N N N N Kennels (all Classes) N N P C C N C C C C Produce Stands N N P N N N N N P N Stables N N P N N N N N N N Alcohol Service and Sales Bars or Cocktail Lounges2 C N N N N N C C C7 C Liquor Stores2, 4 N N N N N N C C N C Restaurants with Alcoholic Beverage Sales C N N N N N C C C C Automotive Services Automobile, Motorcycle, and Marine Craft Sales (New and Used) N N N N N N C P C C Automobile Parking Facilities N N N N N N C P P C Automobile Rental Agencies N N N N N N P P P C 210 Item 11. Created: 2021-08-09 10:13:04 [EST] (Supp. No. 5, Update 3) Page 2 of 8 Automobile Repair Facilities N N N N N N C P P N Automobile Towing and/or Wrecking Facilities N N N N N N N N C N Body and Paint Shops N N N N N N C C C N Car Wash N N N N N N C C C C Gas/Service Stations N N N N N N C C C C Limousine Services N N N N N N P P P N Recharging Stations Allowed (P) in any area designed for the parking or loading of vehicles. Tire Repair N N N N N N N P P N Tire Store N N N N N N N P P N Towing Services with Indoor Vehicle Service N N N N N N C C C N Towing Services with Outdoor Vehicle Storage N N N N N N N N C N Truck/Trailer Rentals N N N N N N C C P N Communications Facilities Ham Radio Antennae (Private Use) N N P P P P P P P P Radio and Television Broadcasting Studios N N N N N N N P P P Recording and Sound Studios N N N N N N N P P P Satellite Dishes (Non-Private) N N N N N N P P P P Satellite Dishes (Private Use) N N P P P P N N C P Wireless Telecommunication Facility— Stealth C N N N N N C C C C Daycare Facilities Commercial Day Care Facilities N N N C5 C5 N P P C C Educational Establishments Elementary, Junior, and High Schools/Private & Charter N P C C C C C C C C Elementary, Junior, and High Schools/Public N P P P P P C C C C College or University N P C C C C C C C C Tutoring & Testing N P A A A A C C C C Vocational and Trade Schools N P C C C C C C C C Food and Beverage Sales Bakeries N N N C5 C6 C5, 6 P P P P Catering Establishments N N N N N N P P P P Convenience Markets N N N C5 C6 C5, 6 P P P P Grocery Stores/Supermarkets N N N C5 C6 C5, 6 P P N P 211 Item 11. Created: 2021-08-09 10:13:04 [EST] (Supp. No. 5, Update 3) Page 3 of 8 Grocery Store, Alcohol Sales N N N C5 C6 C5, 6 P P N P General Merchandise and Trade Antique Sales N N N N N N P P A P Appliance Sales N N N N N N P P C P Art Galleries and Supplies N N N N N N P P N P Beauty Supplies N N N N N N P P N P Books and Magazines N N N C5 C6 C5, 6 P P N P Building Materials N N N N N N N P P N Building Materials with outdoor sales/storage N N N N N N N C P N Camera and Photographic Supplies N N N N N N P P N P Candy Stores N N N N N N P P N P Cigar/Cigarette Shops2 N N N N N N C C N C Clothing Stores N N N N N N P P N P Department Stores N N N N N N P P N P Discount Stores N N N N N N P P N P Electronic Equipment Sales N N N N N N P P C P Equipment Sales and Rentals N N N N N N C C P N Florists N N N C5 C6 C5, 6 P P N P Freight Forwarding Services N N N N N N P P P P Furniture and Home Furnishings N N N N N N P P N P Garden Supply N N N N N N P P N P Gifts, Crafts, and Novelties N N N C5 C6 C5, 6 P P N P Guns and Ammunition N N N N N N N C C P Hardware Stores N N N N N N P P N P Hobby, Toy and Game Stores N N N C5 C6 C5, 6 P P N P Indoor Swap Meets N N N N N N N C C N Jewelry Sales and Repair N N N N N N P P N P Leather Goods N N N N N N P P N P Luggage Sales N N N N N N P P N P Office Equipment, Furniture, and Supplies N N N N N N P P P P Pet Sales and Supplies N N N N N N P P P P Records, Tapes, and Videos N N N C5 C6 C5, 6 P P N P Retail, Other Specialty N N N N N N P P N P Sporting Goods and Equipment N N N N N N P P P P Surplus Stores N N N N N N P P C N Thrift and Second-Hand Stores N N N N N N C C N N Variety Stores N N N N N N P P N C 212 Item 11. Created: 2021-08-09 10:13:04 [EST] (Supp. No. 5, Update 3) Page 4 of 8 Wholesale Establishments N N N N N N P P C P Lodging Bed and Breakfast Facilities C N C C C C P P N P Emergency Shelters N N N N N N P N Hotels and Motels C N N N N N P P C P Residence Inns C N N N N N P P N P Single-Room Occupant (SRO) Facilities N N N N N N C C N N Trailer Parks and Campsites C N N N N C N N N N Transitional Housing N N N N C C C C N N Manufacturing and Industrial Apparel/Textile Products N N N N N N N N P N Assembly Plants N N N N N N N N P N Bottling Plants N N N N N N N N P N Bulk Postal Service Facilities N N N N N N N N P N Chemicals N N N N N N N N P N Contract Construction Services N N N N N N N N P N Data Services N N N N N N N N P N Exterminating Services N N N N N N C C P N Feed and Fuel Yards N N N N N N N N P N Food and Kindred Products N N N N N N N N P N Furniture N N N N N N N N P N Lumber/Wood Products N N N N N N N N P N Moving and Storage Establishments N N N N N N N N P N Metal Salvage Yards N N N N N N N N P N Paper Products N N N N N N N N P N Petroleum-Related Materials N N N N N N N N C N Primary Metal Industries (Electroplating) N N N N N N N N C N Printing/Publishing N N N N N N N N P N Professional/Scientific/Electronic Products N N N N N N N N P N Research Services and Laboratories N N N N N N N N P N Retail Sales of Products Manufactured or Stored On-Site N N N N N N N N P N Sandblasting and Beadblasting N N N N N N C, A C, A C N Taxidermy N N N N N N N N C N Medical/Health Care Ambulance Services N N N N N N P P P N 213 Item 11. Created: 2021-08-09 10:13:04 [EST] (Supp. No. 5, Update 3) Page 5 of 8 Animal Hospitals/Veterinaries N N N N N N P P P P Clinics N N N N N N P P C P Convalescent Homes N N C C C C P P N C Chemical Dependency Clinics N N N N N C C N N C Hospitals N N N N N N P P N C Medical/Dental Offices N N N N N N P P N P Pharmacies N N N N N N P P N P Pharmacies, with drive-through N N N N N N C C N P Personal Services Banking, Credit Unions, Financial Services N N N N N N P P N P Barbers and Beauty Parlors N N N C5 C6 C5, 6 P P N P Cemeteries N C C C C C C C C N Check Cashing Services N N N N N N P P N N Commercial Pet Grooming Services N N N N N N P P C P Dry Cleaners N N N C5 C6 C5, 6 P P N P Funeral Parlors, Mortuaries N N N N N N C C C C Laundries, Laundromats N N N C5 C6 C5, 6 P P C P Locksmith and Key Shops N N N N N N P P P P Pawnbrokers N N N N N N C C N N Massage Establishment N N N N N N C C N C Photocopying and Photo Developing Services N N N N N N P P P P Photography Studios N N N N N N P P N P Shoe Repair Shops N N N C5 C6 C5, 6 P P C P Tailors N N N C5 C6 C5, 6 P P C P Tattoo/Body Piercing Services N N N N N N C C N C Public and Quasi-Public Uses Community Recreation Centers P P P P P P N N N P Cultural Facilities P P P P P N N N P Libraries P P P P P P C C N P Museums P P P P P P C C N P Parks P P P P P P P P N P Public Safety Facilities N P P P P P P P P P Senior Citizen Activity Centers N P P P P P P P N P Recreation and Entertainment Adult-Oriented Businesses N N N N N N N N C N Amusement Parks N N C N N N C C C C Athletic Fields N P P P P P N N N P 214 Item 11. Created: 2021-08-09 10:13:04 [EST] (Supp. No. 5, Update 3) Page 6 of 8 Batting Cages N N N N N N C C C P Billiard and Pool Halls N N N N N N C C N C Bowling Alleys N N N N N N P P N P Commercial Athletic Facility N N N N N N C C C C Dance Studios N N N N N N P P N P Golf Driving Ranges C N N N N N N C C C Health Clubs and Gymnasiums N N N N N N C C C C Miniature Golf Courses N N C N N N C C N P Off-Road Mini-Bike and Motorcross Courses C N C N N N N C C N Public Auditorium/Auditoriums N P N N N N P P N P Shooting Range (Indoor) N N N N N N N N C N Skating Rinks N N N N N N N C C P Video Arcades N N N N N N C C N C Recycling Collection Facilities N N N N N N C C C N Processing Facilities N N N N N N C C C N Religious Institutions Churches N C C C C C P P C P Monasteries, Convents, or Similar Religious Use N C C C C C P P C P Repair Services Electrical and Household Appliances Repair N N N N N N P P P N Furniture Refinishing N N N N N N P P P N Furniture Reupholstering N N N N N N C C P N Lawnmower Repair/Sales Shops N N N N N N P P P N Machine Shops N N N N N N C C P N Welding Shops N N N N N N C, A C, A P N Residential Uses Accessory Guest Houses N N P P P P N N N P Accessory Dwelling Units N N P P P P N N N P Boarding or Rooming Houses N N C C C C N N N P Caretaker's Unit N N P N P P P* N C P Congregate Care Facilities N N N N C C C C N P Day Care Centers, Small Family—1 to 8 Children N N P P P P N N N P Day Care Centers, Large Family—7 to 14 Children N N P P P P C N N P 215 Item 11. Created: 2021-08-09 10:13:04 [EST] (Supp. No. 5, Update 3) Page 7 of 8 Duplexes N N N N P P N N N P Group or Community Care Facilities—6 or fewer persons) N N P P P P N N N P Group or Community Care Facilities—7 or more persons) N N C C C C N N N C Home Occupation Businesses N N P P P P N N N P Mobile Home Parks N N N N C C N N N N Mobile Home or Manufactured Housing Units Single Lot N N P P P P N N N P Multiple-Family, Apartment & Condominiums N N N N P P P* N N P Planned Residential Developments N N P P P P N N N P Senior Housing Developments N N P P P P C N N P Single-Family Dwellings N N P P P P N N N P Restaurant Delicatessens N N N C5 C6 C5, 6 P P P P Fast-Food Restaurants—Without Drive- Thru2, 3 N N N N N N P P P P Fast-Food Restaurants—With Drive- Thru2, 3 N N N N N N C C N P Sit-Down Restaurants C N N C5 C6 C5, 6 P P C P Sit Down Restaurant with live Entertainment C N N N N N C C N C Restaurant, serving alcohol C N N N N N C C N C Service Organizations Philanthropic and Charitable Institutions N N N N N N P P C P Service Organizations N N N N N N P P C P Temporary Uses Street/Craft Fairs and Farmers' Markets—Ongoing N N N N N N C C N C Temporary Structures (Subdivision sales Office) C N P P P P P P P P Christmas Tree/Pumpkin Lots, and Similar, Not Exceeding 30 Days C C C N N C P P P P Outdoor Displays N N N C5 C6 C5, 6 C C C C Parking Lot Sales N C N N N N P P P P Amusement Enterprises N C N N N N C C C C Transportation Facilities Bus Passenger Terminals N N N N N N C C C P 216 Item 11. Created: 2021-08-09 10:13:04 [EST] (Supp. No. 5, Update 3) Page 8 of 8 Charter Bus Companies N N N N N N C C C P Motor Vehicle Transportation (Taxi/Shuttle) N N N N N N C C C N Truck Stops and Terminals N N N N N N C C C N Utilities Public Storage Facilities N N N N N N N C C N Public Utility/Service Structures N P N N N N N N P N Sewage Disposal Facilities/Waste Transfer N P N N N N N N P N Utility Company Offices N N N N N N P P P N Water Storage, Distribution, and Collection Facilities N P N N N N N N N N Wind Energy Conversion Systems See Section 17.11.140 N = Not Permitted P = Permitted C = Conditionally Permitted A = Permitted as an Accessory Use A* = Permitted as an Accessory Use in Assembly Buildings *Only allowed for properties on Sixth Street 1 See Section 17.02.070 to determine if a plot plan is required. 2 These uses shall not be located on any parcel which is located within 1,000 feet of any school providing instruction in 12th grade or below, day care center, or youth center. 3 New fast food restaurants should not be located within 1,000 feet of another fast food restaurant. 4 New liquor stores shall not be located within 1,000 feet of another liquor store. 5 Only allowed for properties on Brookside Avenue, Cougar Way, Oak Valley Parkway, 11th Street, 8th Street, Beaumont Avenue, Pennsylvania Avenue, and Highland Springs Avenue. 6 Only allowed for properties on streets designated as Arterial Roadways or Connector Streets. 7 Bars and cocktail lounges are only allowed as a conditionally permitted accessory use in the M Zone, and if the primary business is an alcohol production facility, such as a brewery, winery, or spirits manufacturer. ( Ord. No. 1128 , § 2(Exh. B), 12-1-2020) 217 Item 11. Created: 2021-08-09 10:13:07 [EST] (Supp. No. 5, Update 3) Page 1 of 6 17.19.120 Permitted uses for Downtown Base Zone Districts. The permitted uses for the Base Zone Districts (identified in Section 17.19.040 through 17.19.090) are listed in Table 17.19-1. Table 17.19-1 Permitted Land Uses for Base Zone Districts in Downtown DMU BMU SSMU SSMU-R LC DMF Administrative Professional Services Administrative/Professional Offices P1 P P P P N Advertising Agencies P1 P P P P N Architectural/Engineering/Design Services P1 P P P P N Attorney/Legal Services P1 P P P P N Business Management Services P1, 2 P P P P N Government Offices and Facilities P1, 2 P3 P P P N Travel Agencies P P P P P N Alcohol Service and Sales Bars or Cocktail Lounges4 C N C C C N Liquor Stores4, 5 C C C C C N Restaurants with Alcoholic Beverage Sales C C C6 C6 C6 N Automotive Services Automobile, Motorcycle, Truck, and Marine Craft Sales (New and Used) N N P C6 P N Automobile Parking Facilities C N C N P N Automobile Rental Agencies N N C6 N P N Automobile Repair Facilities N N C6 N C N Body and Paint Shops N N N N C N Car Wash N N C N C N Gas/Service Stations N N C6 C6 C N Limousine Services N N C N P N Recharging Stations Allowed (P) in any area designed for the parking or loading of vehicles. Tire Repair N N N N P N Tire Store N N N N P N Towing Services—With Indoor Vehicle Service N N N N C N Towing Services—With Outdoor Vehicle Storage N N N N C N Truck/Trailer Rentals N N N N C N Communications Facilities Wireless Telecommunication Facility— Stealth N N C N C N Radio and Television Broadcasting Studios N N P1, 7 P1, 7 P N Recording and Sound Studios C1, 7 C1, 3 P1, 7 P1, 7 P N Satellite Dishes (Non-Private) P P P P P N Satellite Dishes (Private Use) P P P P P P Ham Radio Antennae (Private Use) P P P P P P 218 Item 11. Created: 2021-08-09 10:13:07 [EST] (Supp. No. 5, Update 3) Page 2 of 6 Day Care Facilities Commercial Day Care Facilities (not in- home) N P P P C N Day Care Centers, In Home—Small Family with 1 to 6 Children (as an accessory use in a residential unit) P1 P P P P P Day Care Centers, In Home—Large Family with 7 to 12 Children (as an accessory use in a residential unit) C1 C C C C C Educational Establishments Elementary, Junior, and High Schools/Private & Charter C2 C C C C C Elementary, Junior, and High Schools/Public C2 C P C C C Colleges or University P2 N P1, 6 N P N Tutoring & Testing P1, 7 P3 P7 P7 P N Vocational and Trade Schools C1, 7 C1, 3 N N P N Food and Beverage Sales Bakeries P7 P3 P7 N P N Catering Businesses P P3 P P P N Convenience Markets P P3 P P P N Grocery Stores/Supermarkets P P3 P P P N Grocery Stores, Alcohol Sales P N P C P N General Merchandise and Trade Antique Sales P7 P3 P7 P P N Appliances Sales P7 P3 P7 N P N Art Galleries, Studios and Supplies P P3 P P P N Beauty Supplies P P3 P P P N Book and Magazine Sales P P3 P P P N Building Materials with outdoor sales/storage N N N N C N Camera and Photographic Supplies P P3 P P P N Candy Stores P P3 P P P N Cigar/Cigarette Shops4 P P3 P P P N Clothing Stores P P3 P P P N Department Stores P8, 9 N P P P N Discount Stores N N N N P N Electronic Equipment Sales P P3 P P P N Equipment Sales and Rentals (indoor storage only) N N P N P N Equipment Sales and Rentals (outdoor storage) N N C N C N Florists P P3 P P P N Freight Forwarding Services N N N N P N Furniture and Home Furnishings P N C C P N Garden Supply P7 P3 P7 P7 P N Gifts, Crafts, and Novelties P P P P P N 219 Item 11. Created: 2021-08-09 10:13:07 [EST] (Supp. No. 5, Update 3) Page 3 of 6 Guns and Ammunition C N C N P N Hardware Stores P7 P3 P7 P7 P N Hobby, Toy and Game Stores P P3 P P P N Indoor Swap Meets N N C5 C5 C N Jewelry Sales and Repair P P P P P N Leather Goods P P P P P N Luggage Sales P P P P P N Office Equipment, Furniture and Supplies Sales P7 P3 P7 P7 P N Pet Sales and Supplies P7 N P7 P7 P N Records, Tapes, and Videos P7 P3 P P P N Retail, Other Specialty P7 P3 P P P N Sporting Goods and Equipment P7 P3 P7 P7 P N Surplus Stores P7 P3 P P P N Thrift and Second-Hand Stores with donation drop off C C C C C N Thrift and Second-Hand Stores without donation drop off P7 P3 P7 P7 P7 N Variety Stores P7 P3 P7 P7 P N Wholesale Establishments N N C C P N Lodging Bed and Breakfast Facilities P1 C C C P C Emergency Shelters N N C C P N Hotels and Motels P1 N P P P N Residence Inns P1 N P P P N Single-Room Occupant (SRO) Facilities P1 C P P N N Trailer Parks and Campsites N N N N N N Transitional Housing P1 C P P N N Medical/Health Care Ambulance Services N N N N P N Animal Hospitals/Veterinaries P2, 7, 9 N P P P N Clinics P P P P P N Convalescent Homes N N C C P N Chemical Dependency Clinics N N N N C N Hospitals N N N N P N Medical/Dental Offices P1 P P P P N Pharmacies P7 P3 P P7 P N Pharmacies with Drive-Through N N C C P N Personal Services Banking, Credit Unions, Financial Services P P3 P P P N Barbers and Beauty Parlors P P P P P N Check Cashing Services P N P P P N Commercial Pet Grooming Services P N P N P N Dry Cleaners P P P P P N Funeral Parlors, Mortuaries C2 N N C P N Laundries, Laundromats N N C C6 P N Locksmith and Key Shops P P P P P N 220 Item 11. Created: 2021-08-09 10:13:07 [EST] (Supp. No. 5, Update 3) Page 4 of 6 Massage Establishments P1 P P P P N Pawnbrokers C N C C C N Photocopying and Photo Developing Services P7 P3 P7 P7 P N Photography Studios P P P P P N Shoe Repair Shops P P P P P N Tailors P P P P P N Tattoo/Body Piercing Services N N C C C N Public and Quasi-Public Uses Community Recreation Centers P C P P P P Cultural Facilities P C P P P N Libraries P P P P P N Museums P C C C P N Parks P P P P P P Public Safety Facilities P P P P P P Senior Citizen Activity Centers P P P P P P Recreation and Entertainment Adult-Oriented Businesses N N N N N N Amusement Parks N N N N N N Athletic Fields N N N N N N Batting Cages, Indoor C2, 8 N C C6, 8 C N Batting Cages, Outdoor N N N N C N Billiard and Pool Halls C N C N C N Bowling Alleys C2 N C C P N Commercial Sports Facilities N N C C C N Dance Studios C N C N C N Golf Driving Ranges N N N N N N Health Clubs and Gymnasiums C7 C3 C6, 7 C6, 7 C N Miniature Golf Courses N N N N C N Off-Road Mini-Bike and Motocross Courses N N N N N N Public Auditorium/Auditoriums C N C C C N Shooting Ranges (indoor) N N C N N N Skating Rinks N N C C P N Video Arcades C C N N C N Recycling Collection Facilities N N N N C N Processing Facilities N N N N C N Religious Institutions Churches C C P P C C Monasteries, Convents, or Similar Religious Quarters C C P P C C Repair Services Electrical and Household Appliances Repair N N C C P N Furniture Refinishing N N N N P N Furniture Reupholstering N N N N P N Lawnmower Repair/Sales Shops N N C N P N Machine Shops N N N N C N 221 Item 11. Created: 2021-08-09 10:13:07 [EST] (Supp. No. 5, Update 3) Page 5 of 6 Welding Shops N N N N C N Residential Uses Accessory Guest Houses P P P P N P Accessory Dwelling Units P P P P N P Boarding or Rooming Houses C N C C N C Caretaker's Unit P P P P P P Congregate Care Facilities N N C C P C Day Care Centers, Small Family—1 to 8 Children P1 P P P N P Day Care Centers, Large Family—7 to 14 Children P1 P P P N P Duplexes P P P P N P Group or Community Care Facilities—6 or fewer persons P1 P P P P P Group or Community Care Facilities—7 or more persons C1 C C C C C Home Occupation Businesses P P P P N P Mobile Home Parks N N N N C N Mobile Home or Manufactured Housing Units Single Lot N P N N N P Multiple-Family, Apartments & Condominiums P1,10 N P10 P10 N P10 Planned Residential Developments P P P P N P Senior Housing Developments P P P P N P Single-Family Dwellings N P10 N N N P10 Restaurants Delicatessens P P P P P N Fast-Food Restaurants—Without a Drive- Through4, 11 P P P P P N Fast-Food Restaurants—With a Drive- Through4, 11 N N C C P N Sit-Down Restaurants P C P5 P5 P N Sit-Down Restaurant with live entertainment C C C5 C5 C5 N Restaurant, serving alcohol See Alcohol Sales, Restaurants with Alcoholic Beverage Sales Philanthropic and Charitable Institutions P C P P P N Service Organizations P C P P P N Temporary Uses Street/Craft Fairs and Farmers' Markets— Ongoing C12 C12 C12 C12 C12 N Temporary Structures (Subdivision sales Office) P12 P12 P12 P12 P12 N Christmas Tree/Pumpkin Lots, and Similar, Not Exceeding 30 Days P12 P12 P12 P12 P12 N Outdoor Displays C C C C C N Parking Lot Sales P P P P P N Amusement Enterprises C12 C12 C12 C12 C12 N 222 Item 11. Created: 2021-08-09 10:13:07 [EST] (Supp. No. 5, Update 3) Page 6 of 6 Transportation Facilities Bus Passenger Terminals N N C N C N Charter Bus Companies N N C N C N Motor Vehicle Transportation (Taxi/Shuttle) N N C C C N Truck Stops and Terminals N N N N C N Utilities Public Utility/Service Structures N N N N N N Sewage Disposal Facilities/Waste Transfer N N N N N N Utility Company Offices P1, 7 P1, 3 P1, 7 P1, 7 P N Water Storage, Distribution, and Collection Facilities N N N N N N Public Storage Facilities N N N N N N Wind Energy Conversion Systems See 17.11.140 N = Not Permitted P = Permitted C = Conditionally Permitted A = Permitted as an Accessory Use Footnotes: 1 Use is allowed only on upper floor locations on parcels fronting 6th Street and Beaumont Avenue. Limited lobby or entry areas are allowed on the ground floor. 2 Use is not allowed on parcels fronting 6th Street and Beaumont Avenue. 3 Use is limited to 2,500 square feet. 4 These uses shall not be located on any parcel which is located within 1,000 feet of any school providing instruction in 12th grade or below, day care center, or youth center. 5 New liquor stores shall not be located within 1,000 feet of another liquor store. 6 Must comply with step back standards (Figure 17.19 -2) and setbacks per zone if adjacent to single family residential use. Performance standards per Chapter 17.04 apply. 7 Use is limited to 5,000 square feet. 8 Use is limited to 10,000 square feet. 9 CUP required if proposed use is larger than 10,000 square feet. 10 A Live/work unit is only permitted in the primary structure. 11 New fast food restaurants should not be located within 1,000 feet of another fast food restaurant. 12 Temporary Use Permit required. ( Ord. No. 1128 , § 2(Exh. B), 12-1-2020) 223 Item 11. Staff Report TO: City Council FROM: Carole Kendrick, Planning Manager DATE September 21, 2021 SUBJECT: Public Hearing and Consideration of (PLAN2021-0625) Partial Assignment and Assumption of a Development Agreement Related to the Development of a Portion of the Fairway Canyon Development (Assessor Parcel Numbers: 413-790-010 and a Portion of 413-790- 042) Located in the Oak Valley and SCPGA Golf Course Specific Plan, North of San Timoteo Canyon Road, West of Tukwet Canyon Parkway Background and Analysis: The Oak Valley SCPGA Specific Plan No. 318 encompassing 1,747.9 acres allowing 4,355 dwelling units was adopted by the County of Riverside on August 14, 2001. The property was annexed into the City of Beaumont on April 9, 2003, by the Local Agency Formation Commission (LAFCO) by LAFCO 2002-43-5. The Oak Valley SCPGA Specific Plan includes the developments of Fairway Canyon and Tournament Hills. The subject property is located within the Fairway Canyon portion of the specific pl an. The site was also subject to a development agreement originally entered into in November 2003, and amended in July 2004, and June 2020. Meritage Homes has purchased Planning Areas 18A, 18B, 20A1, 20A2, 20B1, 20B2, 20C1, 20C2, 21B, 22A, 22B, 22C, and 22D, which are shown in Attachment C in the purple and blue areas. The proposed partial assignment and assumption of the development agreement is to transfer rights from SDC Fairway Canyon, LLC to Meritage Homes of California, Inc. In addition, the partial assignment and assumption of the development agreement refers back to the Fairway Canyon Park Agreement that was presented to the City Council at the September 7, 2021, meeting to provide that the Developer will offer to dedicate PA 21B Park to the City subject to City Council acceptance, that it has paid prevailing wages and that it will warrant Mickelson and PA 21B Park for one year. 224 Item 12. A Community Facilities District (CFD) is also provided in the partial assignment and assumption of the development to the CFD to pay for the increased costs of services incurred by the City in connection with the proposed development of the property. The types of services that are proposed to be provided by the CFD and funded with the proceeds of special assessments levied by the CFD consist of services permitted to be financed under the Mello-Roos Community Facilities Act of 1982, including, without limitation, police and fire protection, ambulance and paramedic services (collectively, “Public Safety Services”), street sweeping, traffic signal maintenance and the maintenance of City-owned parks, parkways and open spaces, lighting, flood and storm protection services and the operation of storm drainage systems (collectively, “Maintenance Services”). Findings: The guidelines for development agreements are established in City of Beaumont Resolution No. 1987-34. This resolution requires City Council to make the following findings: 1. The proposed agreement is consistent with the objectives, policies, general land use and programs specified in the General Plan. The proposed partial assignment and assumption of the development agreement is consistent with the General Plan and its goals, objectives and policies. 2. The proposed agreement facilitates land uses which are compatible with the uses authorized in, and the regulations prescribed for, the land use districts in which the real property is located. The proposed development agreement has no impact on zoning or land use on the property or in the surrounding area. There are no proposed changes to the zoning, land use or project approvals as a result of this partial assignment. 3. The proposed agreement is in conformity with public convenience, general welfare and good land use practice. The partial assignment and assumption of the development agreement has no impact on land use or compatibility with the surrounding area. 4. The proposed agreement will not be detrimental to the health, safety and general welfare. 225 Item 12. Approval of the development agreement will have no impact on the health, safety or welfare of the City, the surrounding area or its residents. The partial assignment and assumption of the development agreement, through the imposition of conditions will ensure the existing and proposed infrastructure can adequately serve the public. 5. The proposed agreement will not adversely affect the orderly development of property or the preservation of property values. Approval of this development agreement will help facilitate the orderly development of infrastructure and related facilities. Approval of this partial assignment and assumption of the development agreement will not have a negative effect on orderly development or preservation of property rights and is agreed to by both the City and the property owner. There are no unusual or changed circumstances at this site which would affect the entitlements or consideration of amendment to the development agreement. All of the required findings can be made in a positive manner. Public Notice and Communications: A 10-day notice of public hearing was advertised on September 10, 2021, in the Press Enterprise (see Attachment D). The Planning Department has not received any letters of comment from the public as of the writing of this report. Environmental Documentation: From the standpoint of the California Environmental Quality Act (CEQA), an Environmental Impact Report (EIR) was prepared and certified in 2001 for the Oak Valley SCPGA Specific Plan (Specific Plan No. 318) (SCH No. 2000051126), with the latest addendum of the EIR being approved by City Council in 2014 (13-EIR-03), which assessed the environmental impacts of the overall project and subsequent implementation steps. This development agreement amendment is not subject to CEQA, given certainty that there is no possibility that the activity in question may have a significant effect on the environment. 14 CCR Section 15061(b)(3). Fiscal Impact: Cost to prepare this report and associated documents is approximately $2,500 and is covered by the development agreement deposit on file. 226 Item 12. Recommended Action: Conduct a public hearing, and Waive the first full reading and adopt by title only “An Ordinance of the City Council of the City of Beaumont adopting the Partial Assignment and Assumption of Development Agreement between the City of Beaumont and Meritage Homes, LLC.” Attachments: A. Partial Assignment and Assumption of Development Agreement B. Aerial Photograph C. Fairway Canyon Lot Phasing Plan D. Proof of Publication Incorporated herein by Reference:  City of Beaumont General Plan  City of Beaumont Zoning Ordinance  Project Site’s Riverside Conservation Authority Multi-Species Habitat Conservation Plan Informational Map  Contents of City of Beaumont Planning Department Project File Partial Assignment & Assumption of Development Agreement (PLAN2021 -0625) Tentative Tract Map No. 31462, Tentative Parcel Map No. 38090 (PM2021- 0008), LAFCO 2002-43-5, 02-ANX-02, Development Agreement dated November 18, 2003, Oak Valley SCPGA Specific Plan 318 and Environmental Impact Report 418. 227 Item 12. US-DOCS\120870329.4 CONSENT TO PARTIAL ASSIGNMENT AND ASSUMPTION OF DEVELOPMENT AGREEMENT TO: SDC Fairway Canyon, LLC ("Seller") c/o Argent Management 2392 Morse Avenue Irvine, CA 92614 Attn: Rob Starkman; Dale Strickland AND TO: Meritage Homes of California, Inc. ("Buyer") 5 Peter’s Canyon, Suite 310 Irvine, California 92606 Attn: Raphael Dibianco and Timothy Huynh FROM: City of Beaumont (“City”) 550 E. Sixth Street Beaumont, California 92223 RE: Development Agreement between City and LB/L – Suncal Oak Valley LLC, a Delaware Limited Liability Company, and its successors and assigns (“Developer”), dated November 18, 2003, and recorded at Document No. 2003- 977700, Official Records of Riverside County, California, and re-recorded on February 26, 2004, as Instrument No. 2004-0131329, as amended by the Administrative Amendment No. 1 to the Development Agreement recorded in the Official Records of the County on July 15, 2020, as Instrument No. 2020-0309850 (the “Development Agreement”), relating to the development of that certain real property commonly known as the Fairway Canyon Project (the “Project”), located in the City, County of Riverside, State of California. Seller and Buyer have entered into a Purchase and Sale Agreement and Escrow Instructions, dated April 29, 2021 (the “Purchase Agreement”), pursuant to which Seller will sell to Buyer, and Buyer will purchase from Seller, a portion of the Project which is more particularly described on Exhibit A attached hereto and incorporated herein (the “Property”). In connection with the transfer of fee title the Property to Buyer, Seller will assign to Buyer all of the rights, interests, duties and obligations under the Development Agreement, as such rights, interests, duties and obligations relate to the Property, pursuant to a Partial Assignment and Assumption of Development Agreement, the form of which is attached hereto as Exhibit B (the “Partial Assignment”). a. Pursuant to Section 20.1 and 20.2 of the Development Agreement, the City hereby consents to Seller making the assignment to the Buyer under the Partial Assignment provided the same is executed and recorded with the Riverside County Recorder no later than October 228 Item 12. 2 US-DOCS\120870329.4 21, 2021; and provided further that such consent is explicitly contingent upon Buyer agreeing to participate in the formation of a community facilities district over the Property (the “CFD”) to pay for the increased costs of services incurred by the City in connection with the proposed development of the Property. The types of services that are proposed to be provided by the CFD and funded with the proceeds of special taxes levied by the CFD consist of services permitted to be financed under the Mello-Roos Community Facilities Act of 1982 including, without limitation, police and fire protection, ambulance and paramedic services (collectively, “Public Safety Services”), street sweeping, traffic signal maintenance and the maintenance of City-owned parks, parkways and open spaces, lighting, flood and storm protection services and the operation of storm drainage systems (collectively, “Maintenance Services”). The maximum special tax to fund the costs of Public Safety Services shall not exceed $485.10 per home as of the 2020/2021 fiscal year. Such special tax shall escalate annually by the greater of (i) 5% or (ii) the consumer price index used by City in connection with special tax increases for other CFDs in the City which fund Public Safety Services. All of the services to be financed are in addition to those provided within the boundaries of CFD before the CFD is created, and shall not supplant services already available within that territory when the CFD is created. Buyer agrees to cooperate with the City in the formation of the CFD and pay for the City’s costs of forming the CFD. The maximum special tax for Maintenance Services and Contingent Maintenance Services (if needed) and any annual escalator for each such maximum special tax(es) shall be calculated and determined by the City at the time of the formation of the CFD consistent with the City’s recent practices of forming CFDs to fund Maintenance Services. If after October 21, 2021, the Partial Assignment has not been fully executed and this consent has not been recorded, this consent shall be null and void and of no force or effect and a new consent to assignment shall be obtained by Assignor and Assignee. Notwithstanding the forgoing, it is understood and agreed that the City is not a party to such Partial Assignment or the Purchase Agreement and the terms of the Purchase Agreement and the Partial Assignment shall not be binding on the City. Assignor, Assignee and City shall execute that certain Fairway Canyon Park Agreement dated September ___, 2021 prior to the execution of this Assignment. This Consent to Partial Assignment of Development Agreement shall be governed by the laws of the State of California, without regard to conflict of law principles. IN WITNESS WHEREOF, the undersigned has executed this Consent to Partial Assignment of Development Agreement as of the ________ day of _____________, 2021. CITY OF BEAUMONT, a municipal corporation of the State of California 229 Item 12. 3 US-DOCS\120870329.4 By: Name: Its: Approved as to form: City Attorney Acknowledged and Agreed to BUYER: MERITAGE HOMES OF CALIFORNIA, INC., a California corporation By: Name: Title: 230 Item 12. US-DOCS\120870329.4 Exhibit A Legal Description of Property THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF BEAUMONT, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: PARCEL 1: 413-790-042 (PORTION) LOT 176 OF TRACT MAP NO. 31462-21, IN THE CITY OF BEAUMONT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN ON MAP FILED IN BOOK 476, PAGES 24 THROUGH 30, INCLUSIVE OF MAPS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT THEREFROM THE FOLLOWING AS RESERVED IN THE DEED FROM OAK VALLEY PARTNERS, L.P., RECORDED OCTOBER 19, 2005, AS INSTRUMENT NO. 2005-0862966 OF OFFICIAL RECORDS, TO WIT: A. ANY AND ALL NATURAL OIL, OIL RIGHTS, MINERALS, MINERAL RIGHTS, NATURAL GAS, NATURAL GAS RIGHTS AND OTHER HYDROCARBONS BY WHATSOEVER NAME KNOWN AND ALL RIGHTS THEREIN, GEOTHERMAL STEAM, AND ALL PRODUCTS DERIVED FROM ANY OF THE FOREGOING, THAT MAY BE WITHIN OR UNDER THE LAND, TOGETHER WITH THE PERPETUAL RIGHT OF DRILLING, MINING, EXPLORING AND OPERATING THEREFOR AND STORING IN AND REMOVING THE SAME FROM THE LAND OR ANY OTHER PROPERTY, INCLUDING THE RIGHT TO WHIPSTOCK OR DIRECTIONALLY DRILL AND MINE FROM PROPERTY OTHER THAN THE LAND, OIL OR GAS WELLS, TUNNELS AND SHAFTS INTO, THROUGH OR ACROSS THE SUBSURFACE OF THE LAND, AND TO BOTTOM SUCH WHIPSTOCKED OR DIRECTIONALLY DRILLED WELLS, TUNNELS AND SHAFTS UNDER AND BENEATH OR BEYOND THE EXTERIOR LIMITS THEREOF, AND TO REDRILL, RETUNNEL, EQUIP, MAINTAIN, REPAIR, DEEPEN AND OPERATE ANY SUCH WELLS, TUNNELS OR SHAFTS, WITHOUT THE RIGHT TO DRILL, MINE, STORE OR EXCAVATE THROUGH THE SURFACE OR THE UPPER 500 FEET OF THE SUBSURFACE OF THE LAND AS RESERVED IN THE GRANT DEED RECORDED OCTOBER 19, 2005, AS INSTRUMENT NO. 2005-0862966 OF OFFICIAL RECORDS. B. ANY AND ALL WATER, WATER RIGHTS OR INTEREST THEREIN APPURTENANT OR RELATING TO THE LAND OR OWNED OR USED BY GRANTOR IN CONNECTION WITH OR WITH RESPECT TO THE LAND (NO MATTER HOW ACQUIRED BY GRANTOR), WHETHER SUCH WATER RIGHTS SHALL BE RIPARIAN, OVERLYING, APPROPRIATIVE, LITTORAL, PERCOLATING, PRESCRIPTIVE, ADJUDICATED, STATUTORY OR CONTRACTUAL, TOGETHER WITH THE RIGHT AND POWER TO EXPLORE, DRILL, REMOVE AND STORE THE SAME FROM OR IN THE LAND OR TO DIVERT OR OTHERWISE UTILIZE SUCH WATER, RIGHTS OR INTERESTS ON ANOTHER PROPERTY OWNED OR LEASED BY GRANTOR, WITHOUT THE RIGHT TO ENTER UPON THE SURFACE OF THE LAND IN THE EXERCISE OF SUCH RIGHTS; PROVIDED, HOWEVER, ONLY IF AND TO THE EXTENT THAT SUCH RIGHTS ARE NOT USED BY GRANTEE IN ITS USE AND ENJOYMENT OF T HE LAND AS RESERVED IN THE GRANT DEED RECORDED OCTOBER 19, 2005, AS INSTRUMENT NO. 20050862966 OF OFFICIAL RECORDS. PARCEL 2: APN 413-790-010 PARCEL 4 OF PARCEL MAP NO. 32775, IN THE CITY OF BEAUMONT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, FILED IN BOOK 237, PAGES 79 THROUGH 84 OF PARCEL MAPS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM THE ABOVE PARCEL ANY AND ALL NATURAL OIL, OIL RIGHTS, MINERALS, MINERAL RIGHTS, NATURAL GAS, NATURAL GAS RIGHTS AND OTHER HYDROCARBONS BY WHATSOEVER NAME KNOWN AND ALL RIGHTS THEREIN, GEOTHERMAL 231 Item 12. 5 US-DOCS\120870329.4 STEAM, AND ALL PRODUCTS DERIVED FROM ANY OF THE FOREGOING, THAT MAY BE WITHIN OR UNDER THE LAND, TOGETHER WITH THE PERPETUAL RIGHT OF DRILLING, MINING, EXPLORING AND OPERATING THEREFOR AND STORING IN AND REMOVING THE SAME FROM THE LAND OR ANY OTHER PROPERTY, INCLUDING THE RIGHT TO WHIPSTOCK OR DIRECTIONALLY DRILL AND MINE FROM PROPERTY OTHER THAN THE LAND, OIL OR GAS WELLS, TUNNELS AND SHAFTS INTO, THROUGH OR ACROSS THE SUBSURFACE OF THE LAND, AND TO BOTTOM SUCH WHIPSTOCKED OR DIRECTIONALLY DRILLED WELLS, TUNNELS AND SHAFTS UNDER AND BENEATH OR BEYOND THE EXTERIOR LIMITS THEREOF, AND TO REDRILL, RETUNNEL, EQUIP, MAINTAIN, REPAIR, DEEPEN AND OPERATE ANY SUCH WELLS, TUNNELS OR SHAFTS, WITHOUT THE RIGHT TO DRILL, MINE, STORE OR EXCAVATE THROUGH THE SURFACE OR THE UPPER 500 FEET OF THE SUBSURFACE OR THE LAND AS RESERVED BY OAK VALLEY PARTNERS, L.P., A TEXAS LIMITED PARTNERSHIP WHICH IS REGISTERED IN CALIFORNIA AS OVP, L.P., IN A GRANT DEED RECORDED NOVEMBER 14, 2003, AS INSTRUMENT NO. 2003-899365 OF OFFICIAL RECORDS. ANY AND ALL WATER, WATER RIGHTS OR INTERESTS THEREIN APPURTENANT OR RELATING TO THE LAND OR OWNED OR USED BY GRANTOR IN CONNECTION WITH OR WITH RESPECT TO THE LAND (NO MATTER HOW ACQUIRED BY GRANTOR), WHETHER SUCH WATER RIGHTS SHALL BE RIPARIAN, OVERLYING, APPROPRIATIVE, LITTORAL, PERCOLATING, PRESCRIPTIVE, ADJUDICATED, STATUTORY OR CONTRACTUAL, TOGETHER WITH THE RIGHT AND POWER TO EXPLORE, DRILL, REMOVE AND RESTORE THE SAME FROM OR IN THE LAND O R TO DIVERT OR OTHERWISE UTILIZE SUCH WATER, RIGHTS OR INTERESTS ON ANY OTHER PROPERTY OWNED BY OR LEASED BY GRANTOR, WITHOUT THE RIGHT TO ENTER UPON THE SURFACE OF THE LAND IN THE EXERCISE OF SUCH RIGHTS; PROVIDED, HOWEVER, ONLY IF AND TO THE EXTENT THAT SUCH RIGHTS ARE NOT USED BY GRANTEE IN ITS USE AND ENJOYMENT OF THE LAND AS RESERVED BY OAK VALLEY PARTNERS, L.P., A TEXAS LIMITED PARTNERSHIP, WHICH IS REGISTERED IN CALIFORNIA AS OVP, L.P., IN A GRANT DEED RECORDED NOVEMBER 14, 2003, AS INSTRUMENT NO. 2003-899365 OF OFFICIAL RECORDS. 232 Item 12. US-DOCS\120870329.4 Exhibit B Form of Partial Assignment and Assumption of Development Agreement 233 Item 12. Exhibit G US-DOCS\120870329.4 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Meritage Homes of California, Inc. 5 Peter’s Canyon, Suite 310 Irvine, California 92606 Attention: Aaron Talarico and Patric Lynam (Space above this line for Recorder’s use only) PARTIAL ASSIGNMENT AND ASSUMPTION OF DEVELOPMENT AGREEMENT This PARTIAL ASSIGNMENT AND ASSUMPTION OF DEVELOPMENT AGREEMENT (this “Partial Assignment”), dated as of [________], 2021 (the “Effective Date”), for reference purposes only, is made by and between SDC FAIRWAY CANYON, LLC, a Delaware limited liability company (“Assignor”), and MERITAGE HOMES OF CALIFORNIA, INC., a California corporation (“Assignee”). Recitals A. Pursuant to that certain “Assignment and Assumption of Development Agreement,” recorded June 1, 2012, as Instrument No. 2012-0253906 in the Official Records of Riverside County (the “Official Records”), Assignor is the current “Developer” under that certain “Development Agreement,” recorded on December 15, 2003, as Instrument No. 2003- 977700 and re-recorded on February 26, 2004, as Instrument No. 2004-0131329, as amended by the Administrative Amendment No. 1 to the Development Agreement recorded in the Official Records of the County on July 15, 2020, as Instrument No. 2020-0309850 (the “Development Agreement”), which Development Agreement contains certain rights, duties and obligations relating to the development of that certain real property commonly known as the Fairway Canyon Project (the “Project”), located in the City of Beaumont (the “City”), County of Riverside (the “County”), State of California. B. Concurrently with the recording of this Partial Assignment in the Official Records, and pursuant to the terms, provisions and conditions of that certain unrecorded Purchase and Sale Agreement and Escrow Instructions, dated as of [_____], 2021, by and between Assignor, as the seller, and Assignee, as the buyer, as may be amended from time to time (collectively, the “Purchase Agreement”), Assignee is acquiring a portion of the Project from Assignor, said portion of the Project being more particularly described in Exhibit “A” attached hereto and incorporated herein by this reference (the “Property”). C. Pursuant to the Purchase Agreement, Assignor agrees to assign to Assignee certain of its rights, interests duties and obligations under the Development Agreement, as such 234 Item 12. Exhibit G US-DOCS\120870329.4 rights, interests duties and obligations relate to the Property. Assignor and Assignee agree that Assignor will assign and delegate to Assignee all of the duties and obligations of Assignor under the Development Agreement as related to the Property and which obligations shall be assumed by Assignee. Accordingly, Assignor desires to assign and delegate such rights, interests, duties and obligations under the Development Agreement to Assignee, and Assignee desires to accept such assignment and assume such rights, interests, duties and obligations under the Development Agreement, as more particularly provided below in this Partial Assignment. D. Section 20 of the Development Agreement allows for the assignment of all of the rights and obligations under the Development Agreement as relates to the part of the Project transferred in fee to merchant builders purchasing a portion of the Project, and this Partial Assignment is meant to be an assignment under and to be subject to such Section 20 of the Development Agreement. E. The purpose of this Partial Assignment is to set forth the terms and provisions agreed upon between Assignor and Assignee with respect to the assignment of such rights and interests and the delegation of such duties and obligations of Assignor under the Development Agreement, as such rights, interests, duties and obligations relate to the Property. Agreement NOW, THEREFORE, with reference to the foregoing Recitals, and in consideration of the mutual covenants and agreements set forth herein, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 1. Partial Assignment. Except as provided in this Section 1, Assignor hereby assigns, conveys and transfers to Assignee all of the rights and interests of Assignor, as the “Developer,” under the Development Agreement arising from and after the date that Assignee becomes the fee owner of the Property under a Grant Deed recorded with the County of Riverside Recorder’s office to the extent such rights and interests relate to the Property, and Assignee accepts such assignment. The parties intend this Partial Assignment to be a partial assignment in accordance with and subject to Section 20 of the Development Agreement. 2. Delegation of Obligations. Assignor hereby delegates to Assignee all of Assignor’s duties and obligations, as the “Developer,” under the Development Agreement first arising from and after the date that Assignee becomes the fee owner of the Property under a Grant Deed recorded with the County of Riverside Recorder’s office to the extent such obligations relate to the Property, all of which obligations are hereby assumed by Assignee (collectively, the “Obligations”), including, without limitation, to the extent applicable under the Development Agreement as it relates to the Property: (a) any indemnity obligations, concerning claims that arise after the effective date hereof, (b) any obligation to follow and be bound by all applicable rules, regulations and policies, (c) any obligation to pay any fees, assessments or exactions as may be imposed by law consistent with the Development Agreement, and (d) any obligations arising under the Development Agreement by reason of a default of’ Assignee under the Development Agreement (with respect to any obligations assumed by Assignee hereunder). Assignee acknowledges that Section 10.5 of the Development Agreement governs the formation and obtaining of any public financing and may 235 Item 12. Exhibit G US-DOCS\120870329.4 result in assessments against the Property, and if so imposed the owner or owners of the Property or portions thereof may be responsible for the payment of any resulting special taxes or special assessments. 3. Covenants of Assignee. Assignee hereby agrees and covenants to timely, properly and fully perform each and every one of the Obligations. 4. Indemnification. (a) Assignee’s Indemnity. Assignee shall defend, indemnify and hold harmless Assignor, its members, owners, shareholders, officers, directors, employees, successors and assigns, and all other merchant builders that acquire and develop property within the Project (“Merchant Builders”) from and against any liability, obligation, claim, cause of action, cost or expense (including, without limitation, reasonable attorneys’ fees and costs) arising from, or related to, the breach or default by Assignee of the Obligations assumed by Assignee hereunder, including without limitation any untimely or deficient performance thereof, which may arise from and after the date of this Partial Assignment, other than any damage or liability based on Assignor’s or any other Merchant Builder’s breach or default under the Development Agreement. (b) Assignor’s Indemnity. Assignor shall defend, indemnify and hold harmless Assignee, its members, owners, shareholders, officers, directors, employees and successors and assigns from any liability, obligation, claim, cause of action, cost or expense (including, without limitation, reasonable attorneys’ fees and costs) arising from Assignor’s breach or default under the Development Agreement, other than any damage or liability based on Assignee’s breach or default under the Obligations assumed by Assignee hereunder. 5. Merchant Builders. (a) Assignor represents and warrants that all Merchant Builders to whom Assignor has sold a portion of the Project have executed a partial assignment and assumption of development agreement containing an indemnity substantially similar to that contained in Section 5(a) hereof. (b) Assignor covenants that it shall not sell any portion of the Project to any Merchant Builder unless a partial assignment and assumption of development agreement is executed in connection therewith containing an indemnity substantially similar to that contained in Section 5(a) hereof. 6. Miscellaneous. (a) Interpretation; Governing Law. This Partial Assignment shall be construed according to its fair meaning and as prepared by both parties hereto. This Partial Assignment shall be construed in accordance with and governed by the laws of the State of California. (b) Attorneys’ and Other Fees. In the event of any dispute between the parties hereto or institution of any action or proceeding to interpret or enforce the provisions of this Partial Assignment or arising out of the subject matter of this Partial Assignment or the transaction 236 Item 12. Exhibit G US-DOCS\120870329.4 contemplated hereby, the prevailing party shall be entitled to recover from the losing party all of its costs and expenses incurred, including court costs and reasonable attorney’s fees and expert witness fees. (c) Authority. Each of the parties hereto represents and warrants to the other that the person or persons executing this Partial Assignment on behalf of such party is or are authorized to execute and deliver this Partial Assignment and that this Partial Assignment shall be binding upon such party. (d) Further Assurances. Assignor and Assignee each agree to do such further acts and things and to execute and deliver such additional agreements and instruments as the other may reasonably request to consummate, evidence, confirm or more fully implement the agreements of the parties as contained herein. (e) Execution in Counterparts. This Partial Assignment may be executed in several counterparts, and all originals so executed shall constitute one agreement between the parties hereto. (f) Effective Date. The “Effective Date” shall mean the date upon which Assignee acquires fee title to the Property pursuant to the Purchase Agreement. (g) Recordation. The parties hereby authorize this Partial Assignment to be recorded in the records of the County upon the Effective Date. (h) Successors and Assigns. This Partial Assignment shall be binding upon and inure to the benefit of the respective successors, assigns, personal representatives, heirs and legatees of Assignor and Assignee. (i) Assignment. Notwithstanding subsection (i), any future assignment of rights and obligations under the development Agreement with respect to the Property or the Project shall require compliance with Section 20 of the Development Agreement. (Signatures Follow on Next Page) 237 Item 12. US-DOCS\120870329.4 IN WITNESS WHEREOF, the parties have executed this Partial Assignment as of the date first set forth above, to be made effective as of the Effective Date. ASSIGNOR: SDC FAIRWAY CANYON, LLC, a Delaware limited liability company By: Name: Title: ASSIGNEE: MERITAGE HOMES OF CALIFORNIA, INC., a California corporation By: Name: Title: 238 Item 12. *IMPORTANT* Maps and data are to be used for reference purposes only. Map features are approximate, and are not necessarily accurate to surveying or engineering standards. The County of Riverside makes no warranty or guarantee as to the content (the source is often third party), accuracy, timeliness, or completeness of any of the data provided, and assumes no legal responsibility for the information contained on this map. Any use of this product with respect to accuracy and precision shall be the sole responsibility of the user. © Riverside County GIS Legend Partial Assignment & Assumption of DA Notes REPORT PRINTED ON...9/7/2021 9:53:54 AM Meritage Homes 0 2,3601, 180 Feet Blueline Streams City Areas World Street Map 239 Item 12. PA-22BTR 31462-23363433323130292827262345689101112131415161819201771352524232221201918171615142213656463626059535251504948283031323334355857565554663637383940414243444546474849505152535455123452627474645444342414039678910111213141516171819202122232425383736353433323130292827262524232221201918171615621541413121110987613534340232425262728293031333435363738394143444546474849505152535455324212111098765432154515049484746454442414039383721526729TUKWET CANYON PARKWAYSTREET "A "STREET "D"STREET "A"STREET "B"STREET "G"STREET "C"STREET "C "STREET "F"STREET "E"STREET "D"S T R E E T " B "FUNKWRIGHT ST.SORENSTAM DR.WAYGILMORE DR. P R I C E S T . FUNK WAYWEBB PLACEMURRAY W A Y HINTON CT.P R I C E S T R E E T OMEARA ST.GULDAHL COURTBRAID PLACESORENSTAM DRIVESORENSTAM DRIVESORENSTAM DR IVEWE I S K O P F W A YLOPEZ LANEZ O E L L E R S T R E E T ZO E L L E R S T . L O V E L A N E SORENSTAM DRIVEELS PLACES H U T E D R I V E FALDO ST.TUKWET CANYON PA R K W A Y2726252423222120191234567891011121314151617182829303132333435363738394041424344454647484950515253545557585960616263646566676869707172737475767712345678910111213141516171819202122232425262728293031323334646362616059585756495051525354557776757473727170696867666511111010910810710610510410310210110056353637383940414243444546474878798081828384858687888990919293949596969899OAK VALLEY PARKWAYPROPOSEDNEWSCHOOLSITEPA-15TR 31462-01PA-14RECREATIONCENTERPA-17PA-16TR 31462-07PA-19TR 31462-08PA-20C2TR 31462-27PA-20A2TR 31462-29PA-20B2TR 31462-28PA-20A1TR 31462-17PA-20B1TR 31462-18PA-20C1TR 31462-19PA-21BPA-22DTR 31462-25PA-22CTR 31462-24PA-22ATR 31462-20PA-26CTR 31462-22PA-26ATR 31462-21PA-18BTR 31462-16PA-18ATR 31462-26PARKPA-25TR 37698PA-25TR 37697PA-25TR 37696PARKPA-23A\23BPA-2712.56 ac25109 jefferson Ave. Suite 200Murrieta, CA 92562951-200-6840DWGPORWWHG SHS 07 2021 1018DP PLNHKDQQDB\N?06.002.000?DUDZLQJV?E[KLELWV?WDOO MDS E[KLELW NHZ PA18 NR AHULDO.GZJLOT SUMMARYPA 18A 77 LOTS55;100PA 18B111 LOTS50;100PA 22A60;100PA 22B60;100PA 22C55;100PA 22D55;10067 LOTS55 LOTS55 LOTS54 LOTSTOTAL419 LOTSPHASE 1PHASE 2PHASE 3PHASE 4APHASE 4B MERITAGE HOMESPHASE 4C MERITAGE HOMESLEGEND240Item 12. 1825 Chicago Ave, Suite 100 Riverside, CA 92507 951-684-1200 951-368-9018 FAX BEAUMONT, CITY OF / LEGAL 550 E SIXTH ST BEAUMONT, CA 92223 09/10/2021 I am a citizen of the United States. I am over the age of eighteen years and not a party to or interested in the above entitled matter. I am an authorized representative of THE PRESS-ENTERPRISE, a newspaper in general circulation, printed and published daily in the County of Riverside, and which newspaper has been adjudicated a newspaper of general circulation by the Superior Court of the County of Riverside, State of California, under date of April 25, 1952, Case Number 54446, under date of March 29, 1957, Case Number 65673, under date of August 25, 1995, Case Number 267864, and under date of September 16, 2013, Case Number RIC 1309013; that the notice, of which the annexed is a printed copy, has been published in said newspaper in accordance with the instructions of the person(s) requesting publication, and not in any supplement thereof on the following dates, to wit: PROOF OF PUBLICATION OF Ad Desc.: / I certify (or declare) under penalty of perjury that the foregoing is true and correct. Date: September 10, 2021 At: Riverside, California Ad Number: 0011486885-01 P.O. Number: Publication(s): The Press-Enterprise Ad Copy: PROOF OF PUBLICATION (2010, 2015.5 C.C.P) Legal Advertising Representative, The Press-Enterprise #BM_Tag::2||5209422||-||1||0;0;0# 241 Item 12. Staff Report TO: City Council FROM: Kristine Day, Assistant City Manager DATE September 21, 2021 SUBJECT: Public Hearing and Consideration of a Resolution for the First Amendment to the Five-Year FY 22-26 Capital Improvement Plan Background and Analysis: During each fiscal year, City Council is presented with amendments to the Capital Improvement Program to close completed projects, add new projects associated with budget amendments or new grants and/or adjust certain projects. Below is a summary of the First Amendment to the Five-Year FY 22-26 Capital Improvement Plan. Prior Year Capital Improvement Plan Summary City staff is not recommending any changes to the Prior Year Capital Improvement Plan at this time. Five-Year FY 22-26 Capital Improvement Plan Summary Public Safety Radio System Upgrade (PS-04) – This is a new project associated with integrating the Public Safety radios to a digital format for compatibility with the County wide radio communications system. The total project cost will be $1,421,841 consisting of the following amounts and sources over three years as outlined below. Funding Sources: $ 3,895.00 General Fund FY 21/22 $ 471,785.00 Public Safety CFD Reserve FY 21/22 $ 249,000.00 Grant FY 21/22 $ 112,000.00 Grant FY 21/22 $ 112,000.00 Grant FY 22/23 $ 128,682.00 General Fund FY 22/23 $ 344,479.00 General Fund FY 23/24 $ 1,421,841.00 Total Funding 242 Item 13. Fiscal Impact: Financial impacts are outlined above and in the exhibits to the resolution. Recommended Action: Conduct a Public Hearing, and Waive the full reading and adopt by title only, “A Resolution of the City Council of the City of Beaumont Amending the Five-Year Capital Improvement Plan for Fiscal Years 2021/2022-2024-2026.” Attachments: A. Resolution 243 Item 13. 1 RESOLUTION NO. 2021- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BEAUMONT AMENDING THE FIVE-YEAR CAPITAL IMPROVEMENT PLAN FOR FISCAL YEARS 2021/2022-2024/2026 WHEREAS, the City Council of the City of Beaumont adopted the City’s Five-Year Capital Improvement Plan for Fiscal Years 2022 through 2026 (“CIP”) and the at a duly noticed public hearing, as defined below; WHEREAS, the City Council desires to amend the City’s Five-Year Capital Improvement Plan for Fiscal Years 2022 through 2026 (“CIP”); WHEREAS, the proposed amendments to the CAPITAL IMPROVEMENT PLAN FOR FISCAL YEARS 2022-2026 are intended to add a project upgrading the Public Safety Radio System; WHEREAS, these amendments are detailed in Exhibit “A” attached hereto and made a part hereof; WHEREAS, pursuant to Government Code, section 66002, the City duly gave public notice of the public hearing of the proposed amendments to the CIP, a copy of which has been on file with the City Clerk at least 10 calendar days prior to the City Council’s commencement of such public hearing; and WHEREAS, the City Council desires to amend the CIP as set forth herein; NOW, THEREFORE BE IT RESOLVED BY THE BEAUMONT CITY COUNCIL AS FOLLOWS: Section 1. The City Council hereby approves and adopts the amendment to the Capital Improvement Plan for Fiscal Years 2022 through 2026, a copy of which is attached hereto as Exhibit “A” and made a part hereof by this reference. Section 2. The Capital Improvement Plan shall be updated annually by the City Council pursuant to California Government Code, section 66002, or as otherwise provided by law. Section 3. This Resolution shall take effect immediately upon its passage and adoption. MOVED, PASSED, and ADOPTED this 21st day of September , 202 1 , by the following vote: 244 Item 13. 2 AYES: NOES: ABSTAIN: ABSENT: By: Mike Lara, Mayor City of Beaumont ATTEST: By: Nicole Wheelwright, Deputy City Clerk City of Beaumont 245 Item 13. 3 EXHIBIT A 246 Item 13. Project Name Project Number FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 Future Funding TOTAL TOTAL $ - $ - $ - $ - $ - $ - $ - Project Name Project Number FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 Future Funding TOTAL New City Hall 18,000,000$ 18,000,000$ TOTAL $ - $ - $ - $ - $ - $ 18,000,000 $ 18,000,000 Project Name Project Number FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 Future Funding TOTAL 2nd Street Extension Construction 5,000,000$ 5,000,000$ 1st Street Widening Penn to Beaumont Ave Design & Construction 1,600,000$ 1,600,000$ TOTAL $ - $ - $ - $ - $ - $ 6,600,000 $ 6,600,000 Project Name Project Number FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 Future Funding TOTAL Citywide Traffic Signal Upgrade & Capacity Improvement Phase 2 R-11 150,000$ 150,000$ Citywide Traffic Signal Upgrade & Capacity Improvement Phase 3 150,000$ 150,000$ Citywide Traffic Signal Upgrade & Capacity Improvement Phase 4 150,000$ 150,000$ Citywide Traffic Signal Upgrade & Capacity Improvement Phase 5 150,000$ 150,000$ TOTAL $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ - $ - $ 600,000 Project Name Project Number FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 Future Funding TOTAL -$ TOTAL $ - $ - $ - $ - $ - $ - $ - Project Name Project Number FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 Future Funding TOTAL -$ -$ TOTAL $ - $ - $ - $ - $ - $ - $ - Project Name Project Number FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 Future Funding TOTAL -$ -$ TOTAL $ - $ - $ - $ - $ - $ - $ - Project Name Project Number FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 Future Funding TOTAL -$ -$ TOTAL $ - $ - $ - $ - $ - $ - $ - Five Year Capital Improvement Plan FY 22-26 Funding Source: TUMF Funding Source: Basic Services DIF Funding Source: Road & Bridge DIF Funding Source: Traffic Signal DIF Funding Source: Community Park DIF Funding Source: Neighborhood Park DIF Funding Source: Recreation Facilities DIF Funding Source: Regional Park DIF 247 Item 13. Project Name Project Number FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 Future Funding TOTAL TOTAL $ - $ - $ - $ - $ - $ - $ - Project Name Project Number FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 Future Funding TOTAL -$ TOTAL $ - $ - $ - $ - $ - $ - $ - Project Name Project Number FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 Future Funding TOTAL Public Safety Radio System Upgrade PS-04 471,785$ 471,785$ 471,785$ -$ -$ -$ -$ -$ $ 471,785 Funding Source: CFD Project Name Project Number FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 Future Funding TOTAL Playground Shade Covers - Phase 2 P-12 $ 250,000 250,000$ Downtown Plaza $ 1,500,000 1,500,000$ TOTAL $ 250,000 $ 1,500,000 $ - $ - $ - $ - $ 1,750,000 Project Name Project Number FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 Future Funding TOTAL Annual Citywide Street Rehabilitation and Maintenance 21/22 R-08 $ 1,060,000 $ 1,060,000 Annual Citywide Street Rehabilitation and Maintenance 22/23 $ 535,500 $ 535,500 Annual Citywide Street Rehabilitation and Maintenance 23/24 $ 541,000 $ 541,000 Annual Citywide Street Rehabilitation and Maintenance 24/25 $ 546,500 $ 546,500 Annual Citywide Street Rehabilitation and Maintenance 25/26 $ 552,000 $ 552,000 TOTAL $ 1,060,000 $ 535,500 $ 541,000 $ 546,500 $ 552,000 $ - $ 3,235,000 Project Name Project Number FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 Future Funding TOTAL Annual Citywide Street Rehabilitation and Maintenance 21/22 R-09 $ 863,763 $ 863,763 Annual Citywide Street Rehabilitation and Maintenance 22/23 $ 892,435 $ 892,435 Annual Citywide Street Rehabilitation and Maintenance 23/24 $ 900,840 $ 900,840 Annual Citywide Street Rehabilitation and Maintenance 24/25 $ 898,837 $ 898,837 Annual Citywide Street Rehabilitation and Maintenance 25/26 $ 908,101 $ 908,101 TOTAL $ 863,763 $ 892,435 $ 900,840 $ 898,837 $ 908,101 $ - $ 4,463,976 Project Name Project Number FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 Future Funding TOTAL Pennsylvania Ave/UPRR Grade Separation - Construction 34,000,000$ 34,000,000$ California Ave/UPRR Grade Separation - Construction 34,000,000$ 34,000,000$ Oak Valley/I-10 Interchange - Construction 65,000,000$ 65,000,000$ Public Safety Radio System Upgrade PS-04 361,000$ 112,000$ 473,000$ TOTAL $ - $ - $ - $ - $ - $ 133,000,000 $ 133,473,000 Funding Source: Measure A Funding Source: Public Safety CFD Funding Source: Fire Station DIF Funding Source: Police Facilities Mitigation DIF Funding Source: RMRA/SB 1 Funding Source: Grants Funding Source: Transit Grants 248 Item 13. Project Name Project Number FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 Future Funding TOTAL CNG Fueling Station 500,000$ 500,000$ Fleet Maintenance and Operations Facility Construction 1,000,000$ 1,000,000$ Passenger Amenties Project 100,000$ 100,000$ Vehicle Replacements - Phase 1 T-07 1,400,000$ 1,400,000$ Vehicle Replacements - Phase 2 1,400,000$ 1,400,000$ Vehicle Replacements - Phase 3 1,400,000$ 1,400,000$ Fleet Video Cameras T-08 110,000$ 110,000$ Paratransit Scheduling Software T-09 14,000$ 14,000$ Shop Tools and Lifts T-10 60,000$ 60,000$ TOTAL $ 1,584,000 $ 2,000,000 $ 2,400,000 $ - $ - $ - $ 5,984,000 Project Name Project Number FY21/22 FY21/22 FY22/23 FY23/24 FY24/25 Future Funding TOTAL TOTAL $ - $ - $ - $ - $ - $ - $ - Funding Source: CDBG Grants Project Name Project Number FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 Future Funding TOTAL Citywide Street Improvements 21/22 - CDBG R-10 $ 130,000 $ 130,000 Citywide Street Improvements 22/23 - CDBG $ 130,000 $ 130,000 Citywide Street Improvements 23/24 - CDBG $ 130,000 $ 130,000 Citywide Street Improvements 24/25 - CDBG $ 130,000 $ 130,000 Citywide Street Improvements 25/26- CDBG 130,000$ $ 130,000 TOTAL $ 130,000 $ 130,000 $ 130,000 $ 130,000 $ 130,000 $ - $ 650,000 Funding Source: General Fund Project Name Project Number FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 Future Funding TOTAL Storm Drain Facilities $ 1,000,000 $ 1,000,000 Storm Drain Master Plan $ 500,000 $ 500,000 Parking Garage Facility - Downtown $ 10,000,000 $ 10,000,000 New Police Station Facility $ 40,000,000 $ 40,000,000 Publis Safety Radio System Upgrade PS-04 $ 3,895 $ 128,682 $ 344,479 $ 477,056 TOTAL $ - $ - $ - $ - $ - $ 51,500,000 $ 51,977,056 Project Name Project Number FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 Future Funding TOTAL I&I Rehabilitation Project - Phase 2 - Flow Meters WW-02 200,000$ 200,000$ I&I Rehabilitation Project - Phase 3 200,000$ 200,000$ Wastewater Rate Study WW-03 200,000$ 200,000$ UV Bulb Replacement 50,000$ 50,000$ 50,000$ 150,000$ RO Module Replacement 300,000$ 300,000$ TOTAL $ 400,000 $ 200,000 $ - $ 50,000 $ 300,000 $ - $ 950,000 Project Name Project Number FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 Future Funding TOTAL 16" Mesa Force Main and Pump Replacement Design WW-04 450,000$ 450,000$ 16" Mesa Force Main Construction 4,000,000$ 4,000,000$ Mesa Lift Station Pump Replacement Construction 750,000$ 750,000$ TOTAL $ 450,000 $ 4,750,000 $ - $ - $ - $ - $ 5,200,000 Project Name Project Number FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 Future Funding TOTAL City Hall Roofing ISFB-01 313,071$ 313,071$ Funding Source: Wastewater DIF Funding Source: Internal Service Fund- Buildings Funding Source: Wastewater Funding Source: Asset Forfeiture 249 Item 13. City Hall Fire System Upgrades - Remodeled Spaces ISFB-02 403,504$ 403,504$ City Hall Bathrooms ISFB-03 100,000$ 100,000$ City Hall HVACs - Gym and Remodeled Spaces ISFB-04 275,812$ 275,812$ Fire Station 66 - HVAC ISFB-05 49,399$ 49,399$ Police Station - HVAC ISFB-06 157,791$ 157,791$ Police Station - Concrete Walkway Trip Hazards ISFB-07 25,000$ 25,000$ Grounds Smart Irrigation ISFB-08 109,000$ 109,000$ Building B - Window Replacement ISFB-09 26,000$ 26,000$ TOTAL $ 1,459,577 $ - $ - $ - $ - $ - $ 1,459,577 Streets/ Roads R Parks P Public Safety PS Community Development CD Transit T Wastewater WW Facilities F Internal Service Fund - Buildings ISFB 250 Item 13. Staff Report TO: City Council FROM: Jennifer Ustation, Finance Director DATE September 21, 2021 SUBJECT: FY2022 Mid-Year Budget Amendment No. 2 to the Capital Improvement Program, Wastewater and General Fund Background and Analysis: This report requests adjustments to the Capital Improvement Plan budget , Wastewater Operating budget and General Fund budget. Capital Improvement Plan On June 1, 2021, the City Council approved the FY2022 Capital Improvement Plan (CIP). This plan contained a project with the use of a portion of the State and Local Fiscal Recovery Funds (SLFRF) that were received on June 7, 2021. However, this project was not included in the Citywide budget that was approved on the same agenda. This adjustment will provide for authorized spending for this project within the FY2022 budget. SLFRF Project – Wet Well Capacity Increase Design Budget Amendment Funding Source Project Cost Fund SLFRF Funds $ 400,000 Wastewater Capital Project The first tranche of SLFRF funds were received and recorded in the grants fund in FY2021. The budget adjustment will allow for a transfer-out of the grants fund of $400,000 and a transfer-in to the Wastewater Capital Projects fund to cover the costs of this project. The CIP has also been amended in this agenda to include the purchase of portable radios for the migration to the Riverside County Public Safety Enterprise Communication (PSEC) system. The budget amendment will give the spending authority for this project within the FY2022 budget. 251 Item 14. PSEC Radio Project Funding Source Project Cost Fund Grant $361,000 Capital Project Fund PS CFD $471,785 Capital Project Fund General Fund $3,895 Capital Project Fund Total $ 836,680 The budget adjustment will allow for the Grants Fund, Public Safety CFD Fund and General Fund to transfer-out the above amounts to the capital projects fund to cover the FY2022 costs of this project. A detail of the CIP budget adjustments has been attached as Attachment A. Wastewater Fund and General Fund The Wastewater operations and Public Works department have seen a large increase in activity and additional help is needed to continue the current service level. City staff have reviewed the needs of these departments which require the proposed adjustments as outlined below. Expenses Wastewater operations have grown with City growth as well as the Wastewater Treatment Plant expansion and additional resources are greatly needed to maintain consistent levels of service and meet operational mandates/requirements. City staff has identified three new positions that are needed to meet growing demand and operational requirements. Customer Service Coordinator This position has an annual estimated fully burdened cost of $71,836. FY2022 budget of $58,022 is adjusted for partial year costs. This position will be split 50/50 with the Public Works Department. The Public Works department and Wastewater costs for this position is $29,011 each for FY2022. Management Analyst This position has an annual estimated fully burdened cost of $163,247. FY2022 budget of $131,854 is adjusted for partial year costs. 252 Item 14. Collections Supervisor This position has an annual estimated fully burdened cost of $123,120. FY2022 budget of $99,443 is adjusted for partial year costs. City staff is also recommending an amendment to the FY2022 budget to include $130,000 for legal costs for the Title 22 Water Project and adding an additional $163,693 in contingency for emergency repairs. The Wastewater Expenses are outlined below. Type of Expense Increase/(Decrease) Explanation Salaries and Benefits $ 260,307 2.5 New Positions Legal $130,000 Legal Costs Contingency $163,693 Emergency Repairs Total $ 554,000 The General Fund adjustment for the split of the Customer Service Coordinator position is outlined below. This adjustment will reduce the available appropriations remaining in the FY2022 budget. Type of Expense Increase/(Decrease) Explanation Salaries and Benefits $ 29,011 .5 New Position Revenue City staff has completed an analysis of Wastewater revenues and determined that there has been an increase to the discharge to the plant, but this increase is not reflected in the current budget. In reviewing revenues, it was also determined that the current interest revenue budget is largely inflated as the projected investment market condition for the City is expected to remain low. A suggested decrease of $75,000 to that revenue is recommended. Type of Revenue Increase/(Decrease) Explanation Sewer Service Fees $ 629,000 Increased Discharge to Plant Interest ($ 75,000) Low Expected Return Total $ 554,000 The Wastewater and General Fund detailed budget adjustment has been attached as Attachment B. 253 Item 14. Fiscal Impact: The fiscal impact of this report is an on-going cost of two new positions in the Wastewater Fund and one new position split between the Wastewater Fund and General Fund, increases to the Wastewater Fund revenue and expenses of $554,000, General Fund expenses of $32,906 reducing available appropriations by the same amount, Grants Fund revenue of $361,000 and expenses of $761,000 reducing fund balance by $400,000, Public Safety CFD Fund expenses of $471,785 reducing the fund balance by the same amount, Wastewater Capital Project Fund revenues and expenses of $400,000, and Capital Projects Fund revenue and expenses of $836,680. Recommended Action: Approve two new positions within the Wastewater Fund, Approve one new position split between the Wastewater Fund and General Fund, Approve the Capital Improvement Plan budget adjustments as outlined in Attachment A, and Approve Wastewater Operating and Capital budget adjustments as outlined in Attachment B. Attachments: A. FY2022 Capital Improvement Plan Budget Adjustment Form B. FY2022 Wastewater and General Fund Budget Adjustment Form 254 Item 14. DATE:9/21/2021DEPARTMENT NAME:CIPPREPARED BY:Jennifer UstationAPPROVED BYRevenue = (Credit) Expense = DebitRevenue = (Credit) Expense = Debit Debit (Credit)ACCOUNT NUMBER ACCOUNT DESCRIPTIONCURRENT BUDGET ADJUSTMENT NEW BUDGET AMTExplanations / Justification215‐0000‐4352‐0000Grant‐Other‐ (361,000.00) (361,000.00) Grant Revenue215‐0000‐9960‐0000Transfer‐out‐ 361,000.00 361,000.00 Grant portion of radio purchase260‐0000‐9960‐0000Transfer‐out663,988.00 471,785.00 1,135,773.00 PS CFD Reserves Equipment100‐0000‐9960‐0000Transfer‐out445,271.00 3,895.00 449,166.00 GF portion of radio purchase500‐0000‐9950‐0000Tranfer In3,783,340.00 (836,680.00) 2,946,660.00 Transfer in of funds for radio purchase500‐0000‐8040‐0000Equipment‐ 836,680.00 836,680.00 Purchase of portable radios215‐0000‐9960‐0000 Transfer‐Out ‐ 400,000.00 400,000.00 Transfer SLFRF Funds to Wastewater Capital Projects (reserves)710‐0000‐9950‐0000 Transfer‐In(5,922,988.00) (400,000.00) (6,322,988.00) Transfer in of SLFRF funds for Wastewater Project710‐0000‐8030‐0000Capital Improvement850,000.00 400,000.00 1,250,000.00 Wastewater Well Capactiy Increase Design‐ TOTALS875,680.00$ Net EffectCity of BeaumontBudget Adjustment FormFY 2021/2022255Item 14. DATE:9/21/2021DEPARTMENT NAME:WastewaterPREPARED BY:Jennifer UstationAPPROVED BYRevenue = (Credit) Expense = DebitRevenue = (Credit) Expense = DebitDebit (Credit)ACCOUNT NUMBER ACCOUNT DESCRIPTIONCURRENT BUDGET ADJUSTMENT NEW BUDGET AMTExplanations / Justification700‐0000‐4750‐0000Sewer Service Fees ‐ Revenue(11,609,500.00) (629,000.00) (12,238,500.00) Increase in Sewer Service Fees700‐0000‐4650‐0000Interest(100,000.00) 75,000.00 (25,000.00) Decrease Interest due to low interest market700‐4050‐6010‐0000Salaries1,367,338.00 177,364.00 1,544,702.00 Addition of 2.5 new positions700‐4050‐6012‐0000 Overtime 141,907.00 2,423.00 144,330.00 Addition of 2.5 new positions700‐4050‐6016‐0000 Cash‐Out42,254.00 5,931.00 48,185.00 Addition of 2.5 new positions700‐4050‐6034‐0000Medicare20,669.00 2,691.00 23,360.00 Addition of 2.5 new positions700‐4050‐6022‐0000 Workers Comp 65,272.00 8,867.00 74,139.00 Addition of 2.5 new positions700‐4050‐6020‐0000 Health Insurance 208,815.00 32,479.00 241,294.00 Addition of 2.5 new positions700‐4050‐6028‐0000 Life Insurance 1,176.00 169.00 1,345.00 Addition of 2.5 new positions700‐4050‐6023‐0000 Disability 7,364.00 1,061.00 8,425.00 Addition of 2.5 new positions700‐4050‐6024‐0000 PERS/PEPRA 293,712.00 29,322.00 323,034.00 Addition of 2.5 new positions700‐4050‐7068‐0000 Contractual Services 1,188,816.00 130,000.00 1,318,816.00 Legal Costs700‐4050‐7900‐0000 Contingency 100,000.00 163,693.00 263,693.00 Emergency Repairs100‐3100‐6010‐0000Salaries734,248.00 21,024.00 755,272.00 Additiona of .5 new position100‐3100‐6012‐0000 Overtime 3,284.00 202.00 3,486.00 Additiona of .5 new positionCity of BeaumontBudget Adjustment FormFY 2021/2022https://beaumontca.sharepoint.com/sites/financegroup2/Shared Documents/Council Reports/FY2022/WW‐CIP Budget Adjustment #2 09.21.21/Attachment A ‐ WW Fund Budget Adjustment Form.xlsx: Budget Adjustment Form256Item 14. ACCOUNT NUMBER ACCOUNT DESCRIPTIONCURRENT BUDGET ADJUSTMENT NEW BUDGET AMTExplanations / Justification100‐3100‐6016‐0000Cash‐Out30,453.00 1,508.00 31,961.00 Additiona of .5 new position100‐3100‐6034‐0000Medicare8,382.00 330.00 8,712.00 Additiona of .5 new position100‐3100‐6022‐0000 Workers Comp 30,275.00 1,051.00 31,326.00 Additiona of .5 new position100‐3100‐6020‐0000 Health Insurance 129,239.00 2,992.00 132,231.00 Additiona of .5 new position100‐3100‐6028‐0000 Life Insurance 546.00 34.00 580.00 Additiona of .5 new position100‐3100‐6023‐0000 Disability 3,419.00 212.00 3,631.00 Additiona of .5 new position100‐3100‐6024‐0000 PERS/PEPRA 148,103.00 1,658.00 149,761.00 Additiona of .5 new position‐ TOTALS29,011.00$ Net Effecthttps://beaumontca.sharepoint.com/sites/financegroup2/Shared Documents/Council Reports/FY2022/WW‐CIP Budget Adjustment #2 09.21.21/Attachment A ‐ WW Fund Budget Adjustment Form.xlsx: Budget Adjustment Form257Item 14. CITY OF BEAUMONT CUSTOMER SERVICE COORDINATOR I/II Class specifications are intended to present a descriptive list of the range of duties performed by employees in the class. Specifications are not intended to reflect all duties performed within the job. SUMMARY DESCRIPTION Under supervision (Customer Service Coordinator I) or general supervision (Customer Service Coordinator II), interfaces daily with the public to provide information regarding services available through the City’s programs; performs a wide variety of responsible customer service duties in support utility billing, animal licensing, passport processing, yard sales, and business licenses; establishes and maintains customer relations; and performs related work as required. DISTINGUISHING CHARACTERISTICS Customer Service Coordinator I – This is the entry level class in the Customer Coordinator series. This class is distinguished from the Customer Service Coordinator II by the performance of the more routine tasks and duties assigned to positions within the series. Since this class is typically used as a training class, employees may have only limited or no directly related work experience. Customer Service Coordinator II – This is the full journey level class within the Customer Coordinator series. Employees within this class are distinguished from the Customer Service Coordinator I by the performance of the full range of duties as assigned. Employees at this level receive only occasional instruction or assistance as new or unusual situations arise, and are fully aware of the operating procedures and policies of the work unit. Positions in this class are flexibly staffed and are normally filled by advancement from the I level, or when filled from the outside, have prior experience. COORDINATOR DUTIES The following duties are typical for this classification. Incumbents may not perform all of the listed duties and/or may be required to perform additional or different duties from those set forth below to address business needs and changing business practices. 1. Provides customer service and assistance to the public in person and over the telephone on a variety of services available through the City. 2. Answers customer questions and inquiries or refers to the appropriate party; researches, resolves, and responds to customer problems and complaints; interprets and explains City policies and procedures to the public. 3. Provides customer service at the counter; assists customers with utility billing, yard sale permits, business license applications, passport processing, and animal licensing; receives and posts payments to the appropriate system; issues receipts; balances cash registers at the end of the day and prepares deposit. 4. Receives payments and issues receipts for utility services; starts and stops utility services for customers; opens and closes accounts as requested; makes adjustments to accounts as necessary. 258 Item 14. CITY OF BEAUMONT Customer Service Coordinator I/II (Continued) 5. Receives, reviews, and processes permit and license applications; resolves discrepancies or missing information; provides information to individuals and the public regarding the application process; collaborates with other departments as necessary. 6. Performs various duties related to business license processing; prepares and mails renewal notices, receives and audits applications, enters business information into the system, processes payments, and prints and distributes licenses. 7. Processes animal license applications; verifies necessary documentation is submitted; issues tags and processes payments. 8. Processes passport applications; reviews forms for completeness, administers oath, receives appropriate fees, copies documents, and mails applications. 9. Receives and processes yard sale permit applications; receives appropriate payment and issues permit. 10. Performs various duties in support of the City’s transit system; receives payments and creates bus pass cards for customers; provides information to customers regarding routes. 11. Operates a variety of office equipment including a copy machine, telephone system, facsimile machine, and computer; utilizes various computer applications and software packages. 12. Creates and maintains a variety of reports, logs, and records; files documents. 13. Receives and sorts incoming mail. 14. Performs related duties, as assigned. QUALIFICATIONS The following generally describes the knowledge and ability required to enter the job and/or be learned within a short period of time in order to successfully perform the assigned duties. Knowledge of: Customer service techniques, practices, and principles. Methods and techniques of proper phone etiquette. Methods and techniques of cash handling. Basic principles and procedures of financial record keeping and reporting. Basic mathematical principles. English usage, spelling, grammar, and punctuation. Business letter writing and basic report preparation. Principles and practices of record keeping and filing. Modern office procedures, methods, and equipment including computers and applicable word processing, spreadsheet, and database applications. Pertinent federal, state, and local laws, codes, and regulations. Ability to: Perform a variety of customer services, clerical accounting, and office support duties and activities in support of assigned function. Understand the organization, operation, and services of the City and of outside agencies as necessary to assume assigned responsibilities. Perform routine multi-tasking functions. Work under steady pressure with frequent interruptions and a high degree of public contact by phone or in person. Apply problem solving techniques to provide effective customer service. 259 Item 14. CITY OF BEAUMONT Customer Service Coordinator I/II (Continued) Receive, screen and direct questions and telephone calls to the appropriate source of information. Exercise sound judgment and tact in dealing with public in difficult situations. Use highly effective and innovative planning, organization, and research techniques to achieve goals Follow oral and written instructions. Relate effectively to and communicate with people of a variety of cultures, languages, disabling conditions and socioeconomic situations. Analyze situations and apply departmental rules and regulations effectively, as well as common sense where no guidelines are readily available. Work with minimum supervision. Implement and maintain standard filing systems. Maintain records and reports. Operate and use modern office equipment including a computer and various software packages. Type at a speed necessary for successful job performance. Communicate clearly and concisely, both orally and in writing. Establish and maintain effective working relationships with those contacted in the course of work. Education and Experience Guidelines - Any combination of education and experience that would likely provide the required knowledge and abilities is qualifying. A typical way to obtain the knowledge and abilities would be: Customer Service Coordinator I Education/Training: Equivalent to the completion of the twelfth grade. Experience: One year of customer service or public relations experience in a municipal government agency is desirable. License or Certificate: Possession of, or ability to obtain an appropriate, valid driver’s license. Customer Service Coordinator II Education/Training: Equivalent to the completion of the twelfth grade. Experience: Two years of increasingly responsible customer service and clerical accounting experience. License or Certificate: Possession of, or ability to obtain an appropriate, valid driver’s license. PHYSICAL, MENTAL, AND ENVIRONMENTAL REQUIREMENTS: The conditions herein are Coordinator of those that must be met by an employee to successfully perform the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential job functions: Must be found to be free from any physical, emotional or mental conditions, as determined by a qualified physician and/or psychologist, which with or without accommodation might affect the ability of the employee to perform essential job functions. The position may require prolonged sitting, standing, walking, reaching, twisting, turning, kneeling, bending, squatting, and stooping in the performance of daily office activities. 260 Item 14. CITY OF BEAUMONT Customer Service Coordinator I/II (Continued) Additionally, the position requires grasping, repetitive hand movement, and fine coordination in retrieving and entering data using a computer keyboard. Near and far vision is required in order to read work related documents and use the computer. Acute hearing is required when providing phone and personal service. The position requires lifting, carrying, pushing, and/or pulling objects weighing up to 25 pounds. This classification is not intended to be all-inclusive. An employee may be required to perform other reasonable duties as assigned by management. The City reserves the right, with the concurrence of the department head, to revise or change classification duties and responsibilities as the need arises and as consistent with the meet and confer process. 261 Item 14. CITY OF BEAUMONT WASTEWATER COLLECTIONS SUPERVISOR Class specifications are intended to present a descriptive list of the range of duties performed by employees in the class. Specifications are not intended to reflect all duties performed within the job. SUMMARY DESCRIPTION Under general supervision of the General Manager, assists in all areas of the Wastewater Department, oversees all aspects of wastewater conveyance system operations and maintenance; supervises and directs assigned staff; is responsible for managing the daily operations of the collection and conveyance system, maintenance on infrastructure such as cleaning of gravity lines, operation and maintenance of pump stations, inspection and testing of air valve assemblies; manage the productivity of the operations and maintenance department; demonstrates a full understanding of all applicable policies, procedures and work methods associated with assigned duties; performs other related duties as required REPRESENTATIVE DUTIES The following duties are typical for this classification. Incumbents may not perform all of the listed duties and/or may be required to perform additional or different duties from those set forth below to address business needs and changing business practices. 1. Recommend and implement goals and objectives; establish performance standards and methods for the operation and maintenance of the wastewater conveyance system and the maintenance of facilities and fleet; develop and implement policies, procedures and metrics. 2. Evaluate operations and maintenance activities; implement improvements and modifications; prepare various reports on operation and maintenance activities. 3. Direct and supervise safe and effective operations and maintenance of wastewater collection system and staff. 4. Supervise assigned employees including direct work, conducting performance evaluations, coordinating training, and implementing hiring, discipline and termination procedures. 5. Collaborate with colleagues on projects and development and implementation of pol icies and procedures. 6. Perform installation, maintenance, repair, cleaning and inspection of wastewater and storm water conveyance lines and pump stations, manholes and connections. 7. Operate backhoes, dump trucks, loaders, compressor jackhammers, hydro rodder vacuum units in the course of repair. 8. Operate video camera equipment in investigation of lines. 9. Maintain wastewater and storm water conveyance line maintenance records. 10. Contact members of the public regarding problems and potential stoppages. 11. Demonstrate a full understanding of wastewater and storm water conveyance line inspection and maintenance procedures and work methods. 12. Read maps and engineering drawings for location of wastewater and storm water conveyance lines. 13. Investigate line stoppages and associated problems. 262 Item 14. CITY OF BEAUMONT Accounting Technician (Continued) 14. Resolve minor repairs as needed. 15. Operate a variety of tools and equipment relevant to the operation and maintenance of wastewater and storm water conveyance lines. 16. Operate lift stations and other equipment. QUALIFICATIONS The following generally describes the knowledge and ability required to enter the job and/or be learned within a short period of time in order to successfully perform the assigned duties. Knowledge of: Principles of wastewater collection and conveyance systems, including best practices, procedures, methods, materials, tools, equipment, and supplies as applicable. Understanding and use of heavy equipment, vehicles, power tools, and hand tools utilized in the maintenance of wastewater collection system, pump stations, and related appurtenances. Safety regulations, standards, and procedures in wastewater collection system and pump station maintenance. Principles and practices of facilities and fleet management. Principles and practices of supervision, training, and performance evaluation. Mathematics and calculations used in construction and wastewater industry. Principles and procedure of emergency response preparedness. Adept at using good personal judgement and discretion; remain clam in a crisis, emergency, and/or other stressful situations, and using discretion when handling and disseminating sensitive information. Knowledge of wastewater and storm water conveyance system installation, inspection and maintenance safety procedures and methods associated with operating heavy equipment. Knowledge of City’s and the Department’s policies and procedures. Knowledge of applicable city, county, state and federal statutes, rules, regulations, ordinances, codes, administrative orders, and other operational guidelines and directives. Ability to: Make calibrated assessments and take required action(s). Make assessments concerning wastewater and storm water conveyance system repair. Read engineering drawings and maps. Perform heavy physical labor. Understand and carry out oral and written instructions and communicate these instructions to others. Instruct in and ensure safety methods and procedures as appropriate for construction job sites and conveyance system maintenance and repair. Establish and maintain effective working relationships; communicate clearly and courteously with the City’s internal and external customers. Ability to work with minimum supervision. Education and Experience Guidelines - Any combination of education and experience that would likely provide the required knowledge and abilities is qualifying. A typical way to obtain the knowledge and abilities would be: Education/Training: Equivalent to the completion of the twelfth grade. Must Possess a valid Collections System Maintenance Grade III issued by the California Water Environmental Association at the time of hire. Must be able to obtain a valid Collections System Maintenance Grade IV issued by the California Water Environmental Association within 36 months of date of hire. Possession of a CWEA Collections System Maintenance Grade IV and/or Mechanical Technical Grade I is highly desirable. 263 Item 14. CITY OF BEAUMONT Accounting Technician (Continued) Experience: Five years of increasingly responsible wastewater collections experience. License or Certificate: Must possess a valid California Class B Driver’s License and maintain possession of such license during the course of employment. Must have an acceptable driving record, be insurable at standard rates by City’s insurance carrier, and maintain such insurability during the course of employment. PHYSICAL, MENTAL, AND ENVIRONMENTAL REQUIREMENTS: The conditions herein are representative of those that must be met by an employee to successfully perform the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential job functions: Must be found to be free from any physical, emotional or mental conditions, as determined by a qualified physician and/or psychologist, which with or without accommodation might affect the ability of the employee to perform essential job functions. The position may require prolonged sitting, standing, walking, reaching, twisting, turning, kneeling, bending, squatting, and stooping in the performance of daily office activities. Additionally, the position requires grasping, repetitive hand movement, and fine coordination in retrieving and entering data using a computer keyboard. Near and far vision is required in order to read work related documents and use the computer. Acute hearing is required when providing phone and personal service. The position requires lifting, carrying, pushing, and/or pulling objects weighing up to 50 pounds. Incumbent must be willing to work shift work, including nights, weekends, holidays and on call as needed. This classification is not intended to be all-inclusive. An employee may be required to perform other reasonable duties as assigned by management. The City reserves the right, with the concurrence of the department head, to revise or change classification duties and responsibilities as the need arises and as consistent with the meet and confer process. 264 Item 14. CITY OF BEAUMONT MANAGEMENT ANALYST Class specifications are intended to present a descriptive list of the range of duties performed by employees in the class. Specifications are not intended to reflect all duties performed within the job. SUMMARY DESCRIPTION Under direction, performs a full range of varied and responsible professional and technical administrative and analytical duties in support of assigned department, division, function, or program area; performs a variety of special projects, research studies, budget analysis, and other specialized functions; and coordinates assigned activities with other departments, divisions, outside agencies, and the general public. REPRESENTATIVE DUTIES The following duties are typical for this classification. Incumbents may not perform all of the listed duties and/or may be required to perform additional or different duties from those set forth below to address business needs and changing business practices. 1. Performs a variety of professional level research, administrative, operational, financial, and analytical duties in support of assigned programs and functions within a department; performs duties in support of various administrative operations and activities within assigned area of responsibility including special projects, research studies, budget analysis, and other specialized functions. 2. Participates in the development and implementation of goals, objectives, policies, and priorities for assigned functions and program areas; researches, implements, and administers policies, procedures, and changing business practices and processes for assigned area; coordinates, and oversees on-going or special programs as assigned. 3. Conducts or participates in studies of new and existing programs and special projects; researches and analyzes organization structure, technical data, and fiscal impact to determine feasibility, resolve problems, and increase efficiency; consults with City personnel and outside agencies; develops recommendations; assists with the development of policies and procedures; participates in program implementation and monitoring activities; serves as project manager for assigned projects. 4. Researches, complies, analyzes data, trends and patterns; makes recommendation of possible solutions to problems; and assists staff in planning the deployment of resources for various events. 5. Provides assistance in resolving operational and administration problems; identifies problem areas and issues; conducts research to find alternative solutions; makes recommendations; assists in implementation of recommendations. 6. Prepares administrative, operational, and financial reports including the preparation of conclusions, recommendations, and forecasts based on data summaries and other findings; consults with City staff, outside agencies, and associations to obtain information; advises management staff on emerging issues. 265 Item 14. CITY OF BEAUMONT Management Analyst (Continued) 7. Assists with the budget process; provides assistance in the development and administration of assigned budget; collects and analyzes financial data; makes budget recommendations relative to assigned program areas or projects; coordinates and compiles budget recommendations prepared by other staff; creates data tracking and reporting systems; monitors status; assists with grant applications and monitoring. 8. Researches, negotiates, and monitors assigned contracts and agreements with outside suppliers, service providers, and others; ensures work is performed in compliance with contracts and agreements. 9. Provides staff assistance to management staff; performs a full range of complex duties in support of administrative functions and areas; reviews and analyzes month end department reporting; prepares staff reports, consults with and advises department personnel. 10. Coordinates assigned services and project activities with other City programs, functions, boards, committees, and task forces as well as external organizations and agencies and the general public. 11. Establishes, emphasizes and maintains effective working relationships with all City employees, the public and other agencies with which the department interacts. 12. Responds to requests for information from the public, City departments, and outside agencies. 13. Represents area of assignment, participates on, and provides staff support to a variety of committees, task forces, and boards; prepares, presents, and reviews staff reports and other correspondence as appropriate and necessary; responds to and resolves inquiries and complaints. 14. Oversees and assumes responsibility for departmental and/or some City-wide communications; prepares press releases, City Council staff reports, newsletter articles, and other informational pieces; manages department social media accounts; assists management staff in the preparation of various presentations. 15. Attends and participates in professional group meetings; stays abreast of new trends and innovations in the fields of business and public administration and issues related to area of assignment. 16. Operates a variety of office equipment, including copy machines, telephones, fax, email, and other various computer systems. 17. Prepares reports and statistics required by the State and regional boards. 18. Assists in monitoring department accounts payable and payroll. 19. Uses sound professional judgment in the application of policy, procedures and laws in situations arising in the course and scope of employment; 20. Gathers and disseminates information necessary for the operation of the department. 21. Confirms accuracy and reliability of data through investigation and research. 22. Enhances department capabilities by preparing analytical and/or statistical reports. 23. Responds to and resolves difficult and sensitive citizen complaints and inquiries. 24. Performs related duties, as assigned. 266 Item 14. CITY OF BEAUMONT Management Analyst (Continued) QUALIFICATIONS The following generally describes the knowledge and ability required to enter the job and/or be learned within a short period of time in order to successfully perform the assigned duties. Knowledge of: Operational characteristics, services and activities of assigned program area. Principles and practices of public administration. Organization and operation of municipal government. Municipal government functions specifically related to program area. Methods and techniques of data collection, research, and report preparation. Principles and practices of program development and administration. Organizational and management practices as applied to the analysis and evaluation of programs, policies, and operational needs related to area of assignment. Techniques and formulae for administrative, financial, and comparative analyses. Methods and techniques of effective technical, administrative, and financial record keeping, report preparation, and presentation. Recent developments, research methods, current literature, and sources of information related to assigned programs and service areas. Terminology used in area of assignment. Principles and practices of budget preparation and administration. Principles of business letter writing. Office procedures, methods, and equipment including computers and applicable software applications such as word processing, spreadsheets, and databases. Principles, trends, methods, and techniques used in customer service, public relations, public information, and program education and promotion. English usage, spelling, grammar, and punctuation. Pertinent federal, state, and local laws, codes, and regulations. Ability to: Perform a full range of responsible and varied professional, analytical duties in providing responsible staff support to a City department. Plan, organize, direct, coordinate, and evaluate assigned programs, projects, events, or technical area. Oversee and participate in the development and administration of program goals, objectives and procedures. Perform a range of professional analytical, programmatic, and administrative duties involving the use of independent judgment and personal initiative. Collect, evaluate, and interpret varied information and data. Research, analyze, and formulate recommendations, work plans, and activities regarding planning, technical, and administrative issues. Analyze problems, identify alternative solutions, project consequences of proposed actions, and implement recommendations in support of goals. Prepare clear and concise technical, administrative and financial reports. Collect, evaluate, and interpret varied information and data. Operate and use modern office equipment including a computer and applicable computer applications. Type at a speed necessary for successful job performance. Understand and adhere to City policies, procedures, rules and regulations. Use sound professional judgment in the application of policy, procedures, and laws in situations arising in the course and scope of employment. Perform routine multi-tasking functions. Understand and work within the course and scope of duties, authority and responsibilities. 267 Item 14. CITY OF BEAUMONT Management Analyst (Continued) Relate effectively to people of a variety of cultures, languages, disabling conditions and socioeconomic situations. Work cooperatively with other departments, City officials, and outside agencies. Analyze situations and apply departmental rules and regulations effectively, as well as common sense where no guidelines are readily available. Work with minimum supervision. Communicate clearly and concisely, both orally and in writing. Establish and maintain effective working relationships with those contacted in the course of work. Education and Experience Guidelines - Any combination of education and experience that would likely provide the required knowledge and abilities is qualifying. A typical way to obtain the knowledge and abilities would be: Education/Training: A Bachelor’s degree from an accredited college or university with major course work in public administration, business administration, or a field related to area of assignment. Experience: Two years of responsible professional level administrative and management analysis experience. License or Certificate: Possession of an appropriate, valid driver’s license. Must have an acceptable driving record, be insurable at standard rates by City’s insurance carrier, and maintain such insurability during the course of employment. PHYSICAL, MENTAL, AND ENVIRONMENTAL REQUIREMENTS: The conditions herein are representative of those that must be met by an employee to successfully perform the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential job functions: Must be found to be free from any physical, emotional or mental conditions, as determined by a qualified physician and/or psychologist, which with or without accommodation might affect the ability of the employee to perform essential job functions. The position may require prolonged sitting, standing, walking, reaching, twisting, turning, kneeling, bending, squatting, and stooping in the performance of daily activities. Additionally, the position requires grasping, repetitive hand movement, and fine coordination in retrieving and entering data using a computer keyboard. Near and far vision is required in order to read work related documents and use the computer. Acute hearing is required when providing phone and personal service. The position requires lifting, carrying, pushing, and/or pulling objects weighing up to 25 pounds. Incumbent must be willing to work shift work, including nights, weekends, and holidays. This classification is not intended to be all-inclusive. An employee may be required to perform other reasonable duties as assigned by management. The City reserves the right, with the concurrence of the department head, to revise or change classification duties and responsibilities as the need arises and as consistent with the meet and confer process. 268 Item 14. Staff Report TO: City Council FROM: Jennifer Ustation, Finance Director DATE September 21, 2021 SUBJECT: CalPERS Pension Update Background and Analysis: On March 3, 2020, the City Council received a presentation from Bartel Associates, LLC regarding the June 30, 2018, Valuation Preliminary Results. This presentation has been included as Attachment A. This report outlined that pension costs are very likely to increase and outpace revenue growth over the next twelve years. It is also projected that a recession coupled with growing needs is expected to create budget deficits by FY2024. This staff report continues the discussion and looks for direction from the City Council. Pension Costs Overview One of the costs that is projected to outpace revenue growth is pension costs. Pension costs for the City are divided into two categories (1) normal costs and (2) unfunded liability as follows: Normal Costs - This is the cost associated with existing employees and is computed as a percentage of wages, and Liability Costs - This is the cost associated with past and current employees where the estimated cost of future retirement benefits exceeds the amount of funds available in the system to pay those benefits. Each year the City submits payments to CalPERS for each of the normal costs and the liability costs. There are two major inputs into the pension system that is managed by CalPERS. This includes (1) the pension contributions made by the City/Employees into the system (for 269 Item 15. both normal costs and the unfunded liability), and (2) the investment returns those funds generate. An unfunded liability is created when the contributions and/or investment returns are insufficient to pay for the projected cost to employees when they retire. The primary driver of the current liability is the lack of sufficient investment returns. CalPERS Discount Rate and its Effects on Pension Funded Status The discount rate is the long-term interest rate used to fund future pension benefits. It is one of the key components of the Asset Liability Management (ALM) cycle that CalPERS uses to balance assets with future pension obligations. The discount rate is also known as the assumed rate of return because it is what CalPERS expects its investments to earn during the fiscal year. The overall financial health of the employer’s plan is measured by the plan’s funded status. The funded status represents the funded market of the assets minus the discounted value of the future liabilities. When the discount rate is reduced, it decreases the funded status because the future liabilities have less discounting as they go out into the future. Therefore, when the discount rate is reduced the costs to the City will increase. City of Beaumont’s Pension Status The FY2020 Financial Statement Audit shows the City with a total proportionate share of the Net Pension Liability for the plan at $18,207,382, which was calculated utilizing the CalPERS 7.15% discount rate set by them as of June 30, 2020. Also within the audit was a determination of the impact that changes to the discount rate would have on the City’s net pension liability. It models the effects of a 1% decrease and 1% increase to the discount rate. The effect of a 1% decrease would put the City’s liability at $28,857,047 while an increase of 1% would decrease it to $9,450,732. Discount Rate -1% (6.15%) Current Discount Rate (7.15%) Discount Rate +1% (8.15%) Miscellaneous $ 12,019,831 $ 7,438,139 $ 3,656,276 Safety $ 16,837,216 $ 10,769,243 $ 5,794,456 Total $ 28,857,047 $ 18,207,382 $ 9,450,732 270 Item 15. The estimated balance for the City’s proportionate share of the pension liability for FY2021 is below. Discount Rate -1% (6.15%) Current Discount Rate (7.15%) Discount Rate +1% (8.15%) Miscellaneous $ 13,128,862 $ 8,214,777 $ 4,154,423 Safety $ 18,254,588 $ 11,725,412 $ 6,367,605 Total $ 31,383,450 $ 19,940,189 $ 10,522,028 Below shows the estimated increase in the liability from FY20 to FY21 Discount Rate -1% (6.15%) Current Discount Rate (7.15%) Discount Rate +1% (8.15%) Miscellaneous + $1,109,031 + $ 776,638 + $ 498,147 Safety + $1,417,372 + $ 956,169 + $ 573,149 Total + $2,526,403 + $1,732,807 + $1,071,296 CalPERS Funding Risk Mitigation Policy and ALM Process CalPERS recently triggered its Funding Risk Mitigation Policy when it reported preliminary investment returns of 21.3%. This policy lowers the discount rate in years of good investment returns. This is the first time this policy has been triggered . CalPERS is also in its Asset Liability Management (ALM) process which was put into place by the CalPERS Board to strengthen long-term pension fund sustainability. This policy runs on a four-year cycle with a mid-cycle review after two years. The full review is taking place now. Application of the CalPERS Funding Risk Mitigation Policy has reduced the discount rate to 6.8% going into the ALM review process. The full effect of this discount rate change will be felt by the City in FY2024. On September 13, 2021, the CalPERS board was presented with candidate portfolios with proposed discount rates. A look at portfolio candidates that were presented to the board are below. Portfolio Discount Rate Projected Return Current Portfolio: status quo 6.25% 6.2% Candidate Portfolio A 6.375% 6.4% Candidate Portfolio B 6.75% 6.8% Candidate Portfolio C 6.75% 6.8% Candidate Portfolio D 6.75% 6.8% Candidate Portfolio E 7.0% 7.0% 271 Item 15. These portfolio candidates all range from a low diversification to a more diversified portfolio. Some of the candidate portfolios would require CalPERS investment policy changes and a few of the candidates also include leverage as a part of the portfolio. The final decision on the portfolio candidates will be made by the CalPERS Investment Committee in November 2021. Future Contribution Sustainability The sensitivity of the plan as outlined above shows that the discount rate that is applied by CalPERS can greatly impact the City’s employer contribution rates. Normal payroll increases also contribute to pension increases. With budget deficits projected for future years it is imperative to prepare strategies that allow the City to meet these increased costs while minimalizing the impacts to service delivery and maintaining fiscal sustainability. The City Council has taken some steps to address this. On March 16, 2021, the City Council $2,500,000 of unassigned fund balance in the General Fund and to bring back options at a later date for a use of these funds. Beginning in FY2020, the City also started to pay its annual UAL payment upfront in July rather than paid monthly to save on interest costs. In FY2022, paying the upfront portion of the UAL payment saved the city $49,594 in interest costs. Options to Address Future City Pension Contributions Keep funds in committed status in General Fund reserve funds. Pros Cons Most flexible – can be accessed for other uses Fixed income investing only Can be included in calculation of reserve requirement per City’s policy Unprotected from creditors and other spending pressures 115 Pension Trust Pros Cons Fixed Income and diversified equity strategies Irrevocable (for non-pension expenses) Can be tailored for short or long-term use Exclusive benefit/protected from creditors Dedicated solely for pension costs 272 Item 15. Additional Discretionary Payments (ADPs) to CalPERS Pros Cons Could have best long-term investment return Irrevocable decision Extra payments cannot be used as future “credit” PEPRA prevents contributions from dropping below normal cost Still subject to CalPERS investment losses/gains policies and discount rate changes “Fresh Start” to restructure UAL amortization payments (requires a contract amendment) Pros Cons Less interest and lower long -term payments Higher short- term payments Likely cannot revert to old amortization schedule Still subject to CalPERS investment losses/gains policies and discount rate changes Pension 115 Trusts are a great way to invest funds specifically for pension obligations. However, not all trusts are the same as there are more than 100 established trusts, mostly since 2015. Some of the providers include PARS, PFM and Keenan. Beginning on July 2019, CalPERS started offering the California Employers’ Pension Prefunding Trust (CEPPT) effective July 2019. Below are the comparisons between a supplemental trust vs CalPERS. Supplemental Trust CalPERS Flexible Locked In Likely lower long-term return Likely higher long-term return Investment strategy choice No investment choice Does not reduce net pension liability for GASB reporting Reduced net pension liability for GASB reporting More visible More restricted 273 Item 15. City staff seeks direction from the City Council to research supplemental 115 pension trust options, consider the CalPERS pension trust, or consider any of the other options that have been listed above. The City Council can also opt to do a combination of the above to address future pension costs. Fiscal Impact: The cost to prepare this staff report is estimated to be $1,218. Recommended Action: Discuss the pension liability and its impacts on the budget in future years, Discuss options to address the liability and projected escalation in pension costs , and If there is interest to further consider options to address pension costs, provide guidance to staff. Attachments: A. Pension Cost Analysis dated January 16, 2020 – Bartel Associates, LLC 274 Item 15. CITY OF BEAUMONT MISCELLANEOUS AND SAFETY PLANS CalPERS Actuarial Issues – 6/30/18 Valuation Preliminary Results Mary Beth Redding Bianca Lin, Assistant Vice President Wai Man Yam, Actuarial Analyst Bartel Associates, LLC January 16, 2020 Contents o:\clients\city of beaumont\calpers\6-30-18\ba beaumontci 20-01-16 calpers misc safety 18 v1.docx Topic Page Background 1 Miscellaneous Plan: Historical Information 13 Projections 21 Safety Plan: Historical Information 31 Projections 39 Combined Miscellaneous and Safety 49 Leaving CalPERS 51 PEPRA Cost Sharing 53 Paying Down the Unfunded Liability 55 Example of Additional Payments 65 275 Item 15. January 16, 2020 1 DEFINITIONS  PVB - Present Value of all Projected Benefits:  The value now of amounts due to be paid in the future  Discounted value (at valuation date - 6/30/18), of all future expected benefit payments based on various (actuarial) assumptions  Current Normal Cost (NC):  Portion of PVB allocated to (or “earned” during) current year  Value of employee and employer current service benefit  Actuarial Liability (AAL):  Discounted value (at valuation date) of benefits earned through valuation date [value of past service benefit]  Portion of PVB “earned” at measurement January 16, 2020 2 DEFINITIONS  Target- Have money in the bank to cover Actuarial Liability (past service)  Unfunded Liability (UAAL or UAL) - Money short of target at valuation date  If all actuarial assumptions were always exactly met, then the plan assets would always equal AAL  Any difference is the unfunded (or overfunded) AAL  Every year, the actuary calculates the difference between the expected UAAL and Actual UAAL. This is a new layer or amortization base  Each new layer gets amortized (paid off) over a period of time as part of the contribution [rate]. 276 Item 15. January 16, 2020 3 HOW WE GOT HERE  Investment Losses  CalPERS Contribution Policy  Enhanced Benefits  Demographics January 16, 2020 4 HOW WE GOT HERE – INVESTMENT RETURN Returns (after 2001) shown are gross returns, unreduced for administrative expenses. The discount rate is based on expected returns net of administrative expenses. 20-Year and 30-Year average return rates on 6/30/19 are 5.8% and 8.0%, respectively 277 Item 15. January 16, 2020 5 HOW WE GOT HERE – OLD CONTRIBUTION POLICY  Effective with 2003 valuations:  Slow (15 year) recognition of investment losses into funded status  Rolling 30 year amortization of all (primarily investment) losses  Designed to:  First smooth rates and  Second pay off UAL  Mitigated contribution volatility January 16, 2020 6 HOW WE GOT HERE – ENHANCED BENEFITS  At CalPERS, Enhanced Benefits implemented using all (future & prior) service  Typically not negotiated with cost sharing  City of Beaumont Tier 1 PEPRA  Miscellaneous 3%@60 FAE1 2%@62 FAE3  Safety Police 3%@50 FAE1 2.7%@57 FAE3  Note:  FAE1 is highest one year (typically final) average earnings  FAE3 is highest three years (typically final three) average earnings  PEPRA tier implemented for new employees hired after 1/1/13  Employee pays half of total normal cost  2019 Compensation limit  Social Security participants: $124,180  Non-Social Security participants: $149,016 278 Item 15. January 16, 2020 7 HOW WE GOT HERE – ENHANCED BENEFITS 1.0% 1.5% 2.0% 2.5% 3.0% 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 Miscellaneous 2%@60 2%@55 2.5%@55 2.7%@55 3%@60 PEPRA 2%@62 January 16, 2020 8 HOW WE GOT HERE – ENHANCED BENEFITS 1.0% 1.5% 2.0% 2.5% 3.0% 50 51 52 53 54 55 56 57 58 59 60 Safety 2%@55 2%@50 3%@55 3%@50 PEPRA 2%@57 PEPRA 2.5%@57 PEPRA 2.7%@57 279 Item 15. January 16, 2020 9 HOW WE GOT HERE – DEMOGRAPHIC  Around the State  Large retiree liability compared to actives  State average: 56% for Miscellaneous, 65% for Safety  Declining active population and increasing number of retirees  Higher percentage of retiree liability increases contribution volatility  City of Beaumont percentage of liability belonging to retirees:  Miscellaneous 39%  Safety 56% January 16, 2020 10 CALPERS CHANGES  Recent contribution policy changes:  No asset smoothing  No rolling amortization  5-year ramp up  February 2018: CalPERS adopted new amortization policy  Applies only to newly established amortization bases  Fixed dollar amortization rather than % pay  Amortize gains/losses over 20 rather than 30 years  5-year ramp up (not down) for investment gains and losses  No ramp up/down for other amortization bases  Minimizes total interest paid over time and pays off UAL faster  Effective June 30, 2019 valuation for 2021/22 contributions  CalPERS Board changed the discount rate: Rate Initial Impact Full Impact  6/30/16 valuation 7.375% 18/19 22/23  6/30/17 valuation 7.25% 19/20 23/24  6/30/18 valuation 7.00% 20/21 24/25 280 Item 15. January 16, 2020 11 CALPERS CHANGES  Risk Mitigation Strategy  Move to more conservative investments over time to reduce volatility  Only when investment return is better than expected  Lower discount rate in concert  Essentially use ≈50% of investment gains to pay for cost increases  Likely get to 6.0% discount rate over 20+ years  Risk mitigation suspended from 6/30/16 to 6/30/18 valuation  Did not trigger for 6/30/19 valuation January 16, 2020 12 CALPERS CHANGES 281 Item 15. January 16, 2020 13 SUMMARY OF DEMOGRAPHIC INFORMATION - MISCELLANEOUS 2012 2015 2017 2018 Actives  Counts 101 92 83 100  Average PERSable Wages $ 56,200 $ 64,500 $ 60,900 $ 64,800  Total PERSable Wages 5,700,000 5,900,000 5,100,000 6,500,000 Inactive Members  Counts  Transferred 17 13 17 16  Separated 27 31 40 45  Receiving Payments 54 57 66 68 January 16, 2020 14 SUMMARY OF DEMOGRAPHIC INFORMATION - MISCELLANEOUS 282 Item 15. January 16, 2020 15 PLAN FUNDED STATUS - MISCELLANEOUS June 30, 2017 June 30, 2018  Actuarial Accrued Liability  Active $14,600,000 $17,700,000  Retiree 12,600,000 12,800,000  Inactive 2,000,000 2,600,000  Total 29,200,000 33,100,000  Assets 22,600,000 25,300,000  Unfunded Liability 6,600,000 7,800,000  Funded Ratio 77.5% 76.5%  Average funded ratio for CalPERS Public Agency Miscellaneous Plans 72.7% 71.8% January 16, 2020 16 PLAN FUNDED STATUS - MISCELLANEOUS City CalPERS Assets and Actuarial Liability ($Millions) 283 Item 15. January 16, 2020 17 PLAN FUNDED STATUS - MISCELLANEOUS Discount Rate Sensitivity June 30, 2018 Discount Rate 7.00% 6.50%1 6.00% AAL $33,100,000 $35,800,000 $38,400,000 Assets 25,300,000 25,300,000 25,300,000 Unfunded Liability 7,800,000 10,500,000 13,100,000 Funded Ratio 76.5% 70.7% 65.9% 1 Estimated by Bartel Associates. January 16, 2020 18 FUNDED RATIO - MISCELLANEOUS 6/30/19 funded status estimated 284 Item 15. January 16, 2020 19 FUNDED STATUS (MILLIONS) - MISCELLANEOUS 6/30/19 funded status estimated January 16, 2020 20 CONTRIBUTION RATES - MISCELLANEOUS 285 Item 15. January 16, 2020 21 CONTRIBUTION RATES - MISCELLANEOUS 6/30/18 Valuation 2020/2021 Contribution Rates Total2 Tier 1 PEPRA 3%@60 2%@62  Base Total Normal Cost 20.2% 22.5% 14.5%  1 year final average pay 0.5% 0.7% -  Total Normal Cost 20.7% 23.2% 14.5%  Risk Pool EE Contr. Rate 7.5% 7.8% 6.8%  ER Normal Cost 13.2% 15.4% 7.7%  Amortization Bases 7.6% 10.4% 0.6%  Amortization of Side Fund - - -  Total ER Contribution 20.8% 25.8% 8.4%  Employee counts 100 69 31  Employee payroll (in 000’s) $ 7,026 $ 5,026 $ 2,000  Total ER Contribution $ (in 000’s) $ 1,465 $ 1,297 $ 167 2 Weighting of total contribution based on projected classic and PEPRA payrolls January 16, 2020 22 CONTRIBUTION RATES - MISCELLANEOUS 6/30/17 6/30/18 2019/2020 2020/2021  Total Normal Cost 21.0% 20.7%  Employee Normal Cost 7.6% 7.5%  Employer Normal Cost 13.4% 13.2%  Amortization Payments 8.2% 7.6%3  Total Employer Contribution Rate 21.5% 20.8%  2019/20 Employer Contribution Rate 21.5%  Payroll > Expected (2.0%)  6/30/14 Assumption Change (5th Year) 0.5%  6/30/16 Discount Rate Change (3rd Year) 0.2%  6/30/17 Discount Rate & Inflation (2nd Year) 0.2%  6/30/18 Discount Rate change (1st Year) 0.2%  Other (Gains)/Losses 0.2%  2020/21 Employer Contribution Rate 20.8% 3 Equivalent to 6.5% of UAL. One year, 7% interest on the UAL is 8.2% of payroll . 286 Item 15. January 16, 2020 23 CONTRIBUTION PROJECTIONS - MISCELLANEOUS  Market Value Investment Return:  June 30, 2019 6.7%4  Future returns based on stochastic analysis using 1,000 trials Single Year Returns at5 25th Percentile 50th Percentile 75th Percentile Current Investment Mix 0.1% 7.0% 14.8% Ultimate Investment Mix 0.8% 6.0% 11.4%  Assumes investment returns will, generally be 6.5% (as compared to 7.0%) over the next 9 years and higher beyond that.  Discount Rate decreases due to Risk Mitigation policy  No Other: Gains/Losses, Method/Assumption Changes, Benefit Improvements  Different from CalPERS projection 4 Gross return based on July 2019 CalPERS press release 5 Nth percentile means N percentage of our trials result in returns lower than the indicated rates. January 16, 2020 24 CONTRIBUTION PROJECTIONS - MISCELLANEOUS  New hire assumptions:  92.5% of 2019/20 new hires are PEPRA members and 7.5% are Classic members  Percentage of PEPRA member future hires to increase from 92.5% to 100% over 3 years 287 Item 15. January 16, 2020 25 CONTRIBUTION PROJECTIONS - MISCELLANEOUS 0% 10% 20% 30% 40% Contribution Projection – Percent of Pay 75th Percentile 50th Percentile 25th Percentile January 16, 2020 26 CONTRIBUTION PROJECTIONS - MISCELLANEOUS 0% 10% 20% 30% 40% Contribution Projection – Percent of Pay 75th Percentile 50th Percentile 25th Percentile 288 Item 15. January 16, 2020 27 CONTRIBUTION PROJECTIONS - MISCELLANEOUS 21.5%20.8%21.6%22.6%23.1%23.8%24.0%24.3%24.8%24.9%25.3%25.6% 13.4%13.2%12.9%12.6%12.5%12.6%12.4%12.3%12.2%12.0%11.9%11.8% 8.2% 7.6%8.7%10.0%10.6%11.2%11.6%12.0%12.7%12.9%13.4%13.9% 0% 10% 20% 30% 40% 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 Contribution Projection – Percent of Pay (50th Percentile) Total Normal Cost UAL Payment January 16, 2020 28 CONTRIBUTION PROJECTIONS - MISCELLANEOUS 1,185 1,465 1,558 1,673 1,760 1,861 1,932 2,011 2,111 2,175 2,268 2,362 735 931 933 935 952 984 1,000 1,017 1,033 1,050 1,067 1,085 451 534 625 738 807 878 932 994 1,078 1,124 1,201 1,278 $0 $500 $1,000 $1,500 $2,000 $2,500 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 Contribution Projection - $000s (50th Percentile) Total Normal Cost UAL Payment 289 Item 15. January 16, 2020 29 FUNDED STATUS - MISCELLANEOUS 50% 75% 100% 125% 150% Funded Status Projection 75th Percentile 50th Percentile 25th Percentile January 16, 2020 30 FUNDED STATUS - MISCELLANEOUS This page intentionally blank 290 Item 15. January 16, 2020 31 SUMMARY OF DEMOGRAPHIC INFORMATION - SAFETY 2011 2014 2017 2018 Actives  Counts 58 43 39 41  Average PERSable Wages $ 93,600 $ 98,400 $ 99,000 $ 100,400  Total PERSable Wages 5,400,000 4,200,000 3,900,000 4,100,000 Inactive Members  Counts  Transferred 19 21 22 22  Separated 11 13 14 15  Receiving Payments 41 50 54 54 January 16, 2020 32 SUMMARY OF DEMOGRAPHIC INFORMATION - SAFETY 291 Item 15. January 16, 2020 33 PLAN FUNDED STATUS - SAFETY June 30, 2017 June 30, 2018  Actuarial Accrued Liability  Active $12,700,000 $14,700,000  Retiree 22,600,000 24,300,000  Inactive 3,600,000 4,300,000  Total 38,900,000 43,300,000  Assets 29,100,000 32,100,000  Unfunded Liability 9,800,000 11,200,000  Funded Ratio 74.8% 74.1%  Average funded ratio for CalPERS Public Agency Safety Plans 69.4% 68.3% January 16, 2020 34 PLAN FUNDED STATUS - SAFETY City CalPERS Assets and Actuarial Liability ($Millions) 292 Item 15. January 16, 2020 35 PLAN FUNDED STATUS - SAFETY Discount Rate Sensitivity June 30, 2018 Discount Rate 7.00% 6.50%6 6.00% AAL $43,300,000 $46,700,000 $50,000,000 Assets 32,100,000 32,100,000 32,100,000 Unfunded Liability 11,200,000 14,600,000 17,900,000 Funded Ratio 74.1% 68.7% 64.2% 6 Estimated by Bartel Associates. January 16, 2020 36 FUNDED RATIO - SAFETY 6/30/19 funded status estimated 293 Item 15. January 16, 2020 37 FUNDED STATUS (MILLIONS) - SAFETY 6/30/19 funded status estimated January 16, 2020 38 CONTRIBUTION RATES - SAFETY 14/15 15/16 16/17 17/18 18/19 19/20 20/21 ER Normal Cost 18.4% 18.5% 19.3% 19.7% 20.2% 21.3% 22.6% Total ER Cont Rate 32.9% 27.7% 33.2% 34.0% 39.7% 42.9% 38.4% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% 294 Item 15. January 16, 2020 39 CONTRIBUTION RATES - SAFETY 6/30/18 Valuation 2020/2021 Contribution Rates Total7 Tier 1 PEPRA 3%@50 2.7%@57  Base Total Normal Cost 30.9% 31.4% 26.0%  1 year final average pay 1.1% 1.2% -  Total Normal Cost 32.0% 32.7% 26.0%  Risk Pool EE Contr. Rate 9.4% 9.0% 13.0%  ER Normal Cost 22.6% 23.7% 13.0%  Amortization Bases 15.8% 17.4% 1.4%  Amortization of Side Fund - - -  Total ER Contribution 38.4% 41.0% 14.4%  Employee counts 41 35 6  Employee payroll (in 000’s) $ 4,466 $ 4,030 $ 436  Total ER Contribution $ (in 000’s) $ 1,715 $ 1,652 $ 63 7 Weighting of total contribution based on projected classic and PEPRA payrolls January 16, 2020 40 CONTRIBUTION RATES - SAFETY 6/30/17 6/30/18 2019/2020 2020/2021  Total Normal Cost 30.5% 32.0%  Employee Normal Cost 9.2% 9.4%  Employer Normal Cost 21.3% 22.6%  Amortization Payments 21.6% 15.8%8  Total Employer Contribution Rate 42.9% 38.4%  2019/20 Employer Contribution Rate 42.9%  Payroll > Expected (0.7%)  6/30/14 Assumption Change (5th Year) 0.9%  6/30/16 Discount Rate Change (3rd Year) 0.3%  6/30/17 Discount Rate & Inflation (2nd Year) 0.4%  6/30/18 Discount Rate change (1st Year) 2.0%  Side fund base drop off (7.4%)  2020/21 Employer Contribution Rate 38.4% 8 Equivalent to 6.3% of UAL. One year 7% interest in the UAL is 17.6% of payroll 295 Item 15. January 16, 2020 41 CONTRIBUTION PROJECTIONS - SAFETY  Market Value Investment Return:  June 30, 2019 6.7%9  Future returns based on stochastic analysis using 1,000 trials Single Year Returns at10 25th Percentile 50th Percentile 75th Percentile Current Investment Mix 0.1% 7.0% 14.8% Ultimate Investment Mix 0.8% 6.0% 11.4%  Assumes investment returns will, generally be 6.5% (as compared to 7.0%) over the next 9 years and higher beyond that.  Discount Rate decreases due to Risk Mitigation policy  No Other: Gains/Losses, Method/Assumption Changes, Benefit Improvements  Different from CalPERS projection 9 Gross return based on July 2019 CalPERS press release. 10 Nth percentile means N percentage of our trials result in returns lower than the indicated rates. January 16, 2020 42 CONTRIBUTION PROJECTIONS - SAFETY  New hire assumptions:  92.5% of 2019/20 new hires are PEPRA members and 7.5% are Classic members  Percentage of PEPRA member future hires to increase from 92.5% to 100% over 3 years 296 Item 15. January 16, 2020 43 CONTRIBUTION PROJECTIONS - SAFETY 0% 10% 20% 30% 40% 50% 60% 70%Contribution Projection – Percent of Pay 75th Percentile 50th Percentile 25th Percentile January 16, 2020 44 CONTRIBUTION PROJECTIONS - SAFETY 0% 10% 20% 30% 40% 50% 60% 70% Contribution Projection – Percent of Pay 75th Percentile 50th Percentile 25th Percentile 297 Item 15. January 16, 2020 45 CONTRIBUTION PROJECTIONS - SAFETY 42.9% 38.4%40.2%42.4%43.7%45.3%46.2%47.0%47.9%48.5%49.3%49.6% 21.3%22.6%22.2%21.7%21.6%21.9%21.8%21.7%21.6%21.5%21.4%21.1%21.6% 15.8%18.1%20.7%22.1%23.4%24.4%25.2%26.3%27.0%27.9%28.5% 0% 10% 20% 30% 40% 50% 60% 70% 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 Contribution Projection – Percent of Pay (50th Percentile) Total Normal Cost UAL Payment January 16, 2020 46 CONTRIBUTION PROJECTIONS - SAFETY 1,802 1,715 1,846 1,998 2,118 2,255 2,362 2,468 2,586 2,690 2,809 2,906 895 1,011 1,016 1,022 1,047 1,090 1,115 1,141 1,167 1,194 1,218 1,236 907 704 830 976 1,071 1,164 1,246 1,327 1,419 1,496 1,592 1,671 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 Contribution Projection - $000s Without EE Cost Sharing (50th Percentile) Total Normal Cost UAL Payment 298 Item 15. January 16, 2020 47 FUNDED STATUS - SAFETY 50% 75% 100% 125% 150% Funded Status Projection 75th Percentile 50th Percentile 25th Percentile January 16, 2020 48 FUNDED STATUS - SAFETY This page intentionally blank 299 Item 15. January 16, 2020 49 COMBINED MISCELLANEOUS AND SAFETY 3.0 3.2 3.4 3.7 3.9 4.1 4.3 4.5 4.7 4.9 5.1 5.3 1.2 1.5 1.6 1.7 1.8 1.9 2.0 2.0 2.1 2.2 2.3 2.41.8 1.7 1.8 2.0 2.1 2.3 2.4 2.5 2.6 2.7 2.8 2.9 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0 $5.5 $6.0 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 Contribution Projection ($Millions) Miscellaneous & Safety Miscellaneous + Safety Miscellaneous Safety January 16, 2020 50 COMBINED MISCELLANEOUS AND SAFETY Funded Status Summary on June 30, 2018 (Amounts in $Millions) Miscellaneous Safety Total  AAL $ 33.1 $ 43.3 $ 76.4  Assets 25.3 32.1 57.4  Unfunded AAL 7.8 11.2 19.0  Funded Ratio 76.5% 74.1% 75.1% 300 Item 15. January 16, 2020 51 LEAVING CALPERS  Participation in CalPERS is governed by State law and CalPERS rules  The following are considered “withdrawing” from CalPERS:  Exclude new hires from CalPERS & giving them a different pension  Stop accruing benefits for current employees  “Withdrawal” from CalPERS:  Treated as plan termination  Liability increased for conservative investments  Liability increased for future demographic fluctuations  Liability must be funded immediately by withdrawing agency  Otherwise, retiree benefits are cut January 16, 2020 52 LEAVING CALPERS CalPERS Termination Estimates on June 30, 2018 (Amounts in Millions) Ongoing Plan Termination Basis Discount Rate 7.00% 2.5% 3.25% Miscellaneous Actuarial Accrued Liability $ 33 $ 60 $ 53 Assets 25 25 25 Unfunded AAL (UAAL) 8 35 28 Safety Actuarial Accrued Liability $ 43 $ 81 $ 72 Assets 32 32 32 Unfunded AAL (UAAL) 11 49 40 Total Unfunded AAL (UAAL) 19 84 68 Funded Ratio 75.1% 40.4% 45.6% 301 Item 15. January 16, 2020 53 PEPRA COST SHARING  Target of 50% of total normal cost paid by all employees  PEPRA members must pay greater of 50% of total normal cost or bargained amount if higher  Employer cannot pay any part of PEPRA member required employee contributions  Employer may impose current employees pay 50% of total normal cost (limited to 8% of pay for Miscellaneous and 12% for Safety) if not agreed through collective bargaining by 1/1/18  Miscellaneous Plan 2020/21: Classic Members New Members Tier 1 3%@60 FAE1 PEPRA 2%@62 FAE3  Employer Normal Cost 15.4% 7.73%  Member Normal Cost 8.0% 6.75%  Total Normal Cost 23.4% 14.48%  50% Target 11.7% 7.24% January 16, 2020 54 PEPRA COST SHARING  Safety Plan 2020/21: Classic Members New Members Tier 1 3%@50 FAE1 PEPRA 2.7%@57 FAE3  Employer Normal Cost 23.7% 13.04%  Member Normal Cost 9.0% 13.00%  Total Normal Cost 32.7% 26.04%  50% Target 16.4% 13.02%  PEPRA Member Contributions: 2019/20 2020/21 Group Total NC (Basis) Member Rate Total Normal Cost Change Member Rate Method Miscellaneous 13.74% 6.75% 14.48% 0.75% 6.75% Risk Pool Basis Safety 24.14% 12.00% 26.04% 1.90% 13.00% Risk Pool Basis 302 Item 15. January 16, 2020 55 PAYING DOWN THE UNFUNDED LIABILITY & RATE STABILIZATION  Where do you get the money from?  How do you use the money? January 16, 2020 56 WHERE DO YOU GET THE MONEY FROM?  POB:  Usually thought of as interest arbitrage between expected earnings and rate paid on POB  No guaranteed savings  PEPRA prevents contributions from dropping below normal cost  Savings offset when investment return is good  GFOA Advisory  Borrow from General Fund similar to State  One time payments  Governing body resolution to use a portion of one time money, e.g.  1/3 to one time projects  1/3 to replenish reserves and  1/3 to pay down unfunded liability 303 Item 15. January 16, 2020 57 HOW DO YOU USE THE MONEY?  Internal Service Fund  Typically used for rate stabilization  Restricted investments:  Likely low (0.5%-1.0%) investment returns  Short term/high quality, designed for preservation of principal  Assets can be used by governing body for other purposes  Does not reduce Unfunded Liability January 16, 2020 58 HOW DO YOU USE THE MONEY?  Make payments directly to CalPERS:  Likely best long-term investment return  Must be considered an irrevocable decision  Extra payments cannot be used as future “credit”  PEPRA prevents contributions from dropping below normal cost  Option #1: Request shorter amortization period (Fresh Start):  Higher short term payments  Less interest and lower long term payments  Likely cannot revert to old amortization schedule  Savings offset when investment return is good (PEPRA) 304 Item 15. January 16, 2020 59 HOW DO YOU USE THE MONEY?  Make payments directly to CalPERS (continued):  Option #2: Target specific amortization bases:  Extra contribution’s impact muted by reduced future contributions  CalPERS can’t track the “would have been” contribution  Must continually make payments larger than required in order to pay down UAL faster  No guaranteed savings  Larger asset pool means larger loss (or gain) opportunity  Paying off shorter amortization bases: larger contribution savings over shorter period:  e.g. 10 year base reduces contribution 11.9¢ for $1  Less interest savings vs paying off longer amortization bases  Paying off longer amortization bases: smaller contribution savings over longer period:  e.g. 25 year base reduces contribution 6.2¢ for $1  More interest savings vs paying off shorter amortization bases January 16, 2020 60 HOW DO YOU USE THE MONEY? This page intentionally blank 305 Item 15. January 16, 2020 61 IRREVOCABLE SUPPLEMENTAL (§115) PENSION TRUST  Can only be used to:  Reimburse City for CalPERS contributions  Make payments directly to CalPERS  Investments significantly less restricted than City investment funds  Fiduciary rules govern Trust investments  Usually, designed for long term returns  Assets don’t count for GASB accounting  Are considered Employer assets  Over 100 trusts established, mostly since 2015  Trust providers: PARS, PFM, Keenan  California Employers’ Pension Prefunding Trust (CEPPT) effective July 2019  Strategy 1: Expected Return 5% (48 stocks / 52% bonds)  Strategy 2: Expected Return 4% (22% stocks / 78% bonds) January 16, 2020 62 IRREVOCABLE SUPPLEMENTAL (§115) PENSION TRUST  More flexibility than paying CalPERS directly  City decides if and when and how much money to put into Trust  City decides if and when and how much to withdraw to pay CalPERS or reimburse Agency  Funding strategies typically focus on  Reducing the unfunded liability  Fund enough to make total CalPERS UAL = 0  Make PEPRA required payments from Trust when overfunded  Stabilizing contribution rates  Mitigate expected contribution rates to better manage budget  Combination  Use funds for rate stabilization/budget predictability  Target increasing fund balance to pay off UAL sooner 306 Item 15. January 16, 2020 63 IRREVOCABLE SUPPLEMENTAL (§115) PENSION TRUST  Consider:  How much can you put into Trust?  Initial seed money?  Additional amounts in future years?  When do you take money out?  Target budget rate?  Year target budget rate kicks in?  Before or after CalPERS rate exceeds budgeted rate? January 16, 2020 64 COMPARISON OF OPTIONS  Supplemental Trust  CalPERS  Flexible  Locked In  Likely lower long-term return  Likely higher long-term return  Investment strategy choice  No investment choice  Does not reduce net pension liability for GASB reporting  Reduces net pension liability for GASB reporting  More visible  More restricted 307 Item 15. January 16, 2020 65 EXAMPLE OF ADDITIONAL PAYMENTS Direct Payment to CalPERS  Following example illustrates additional contribution of:  $2 million to CalPERS in September 2020  $500,000 for 5 years, beginning in FY 2020/21  Contributions allocated to 2 plans based on UAL, 41% and 59% allocated to Miscellaneous and Safety plan respectively  Miscellaneous  Long Base: 2018 Non-Asset Gain/Loss (30 years remaining) and 2016 Gain/Loss (28 years remaining)  Short Base: Share of Pre-2013 Pool UAL (16 years remaining)  Safety  Long Base: 2018 Non-Asset Gain/Loss (30 years remaining), 2017 Non- Asset Gain/Loss (29 years remaining) and 2016 Asset Gain/Loss (28 years remaining)  Short Base: Share of Pre-2013 Pool UAL (17 years remaining) and 2014 Assumption Change (16 years remaining) January 16, 2020 66 EXAMPLE OF ADDITIONAL PAYMENTS Direct Payment to CalPERS (continued)  Estimated Savings Miscellaneous Safety Short Base $819,000 @ Sept 2020 + 205,000/5yrs $1,181,000 @ Sept 2020 + 295,000/5yrs $ Savings $1,086,000 $1,414,000 PV Savings @ 3% 498,000 654,000 Long Base $819,000 @ Sept 2020 + 205,000/5yrs $1,181,000 @ Sept 2020 + 295,000/5yrs $ Savings $2,062,000 $3,025,000 PV Savings @ 3% 858,000 1,253,000 No Contribution Reduction $819,000 @ Sept 2020 + 205,000/5yrs $1,181,000 @ Sept 2020 + 295,000/5yrs $ Savings $3,009,000 $4,531,000 PV Savings @ 3% 1,245,000 1,853,000 Fresh Start – 15 Years N/A N/A $ Savings $1,607,000 $2,614,000 PV Savings @ 3% 628,000 1,020,000 308 Item 15. January 16, 2020 67 EXAMPLE OF ADDITIONAL PAYMENTS Payment to 115 Trust Miscellaneous Safety Trust Contributions $819,000 @ Sept 2020 + 205,000/5yrs $1,181,000 @ Sept 2020 + 295,000/5yrs Trust Earnings 5% 5% Trust Target - Target Rate 22.0% 41.4% - 1st Year 2025/26 2026/27 - Last Year 2035/36 2036/37 $ Savings (000’s) $985,000 $1,528,000 PV Savings @ 3% (000’s) 324,000 501,000 January 16, 2020 68 EXAMPLE OF ADDITIONAL PAYMENTS This page intentionally blank 309 Item 15. January 16, 2020 69 EXAMPLE OF ADDITIONAL PAYMENTS Direct Payment to CalPERS Miscellaneous January 16, 2020 70 EXAMPLE OF ADDITIONAL PAYMENTS Direct Payment to CalPERS Miscellaneous 310 Item 15. January 16, 2020 71 EXAMPLE OF ADDITIONAL PAYMENTS Direct Payment to CalPERS Safety January 16, 2020 72 EXAMPLE OF ADDITIONAL PAYMENTS Direct Payment to CalPERS Safety 311 Item 15. January 16, 2020 73 EXAMPLE OF ADDITIONAL PAYMENTS Miscellaneous January 16, 2020 74 EXAMPLE OF ADDITIONAL PAYMENTS Safety 312 Item 15. January 16, 2020 75 EXAMPLE OF ADDITIONAL PAYMENTS Payment to 115 Trust Miscellaneous 24.4% 25.8% 22.0% 22.0% 22.0% 22.0% 22.0% 22.0% 15.7% 10.8% 21.5%21.6% 23.1%24.0%24.8%25.3%25.9%25.1% 22.8% 15.7% 10.8% 10% 15% 20% 25% 30% 35% 40% Contribution Rate Projection Target 50th Percentile January 16, 2020 76 EXAMPLE OF ADDITIONAL PAYMENTS Payment to 115 Trust Miscellaneous 1,763 1,964 1,770 1,869 1,973 2,083 2,199 2,322 1,746 1,267 1,185 1,558 1,760 1,932 2,111 2,268 2,449 2,507 2,409 1,746 1,267 $100 $600 $1,100 $1,600 $2,100 $2,600 $3,100 Contribution Projections ($000s) Target 50th Percentile 313 Item 15. January 16, 2020 77 EXAMPLE OF ADDITIONAL PAYMENTS Payment to 115 Trust Miscellaneous 0 500 1,000 1,500 2,000 2,500 Supplemental Trust Balance ($000s) 50th Percentile January 16, 2020 78 EXAMPLE OF ADDITIONAL PAYMENTS This page intentionally blank 314 Item 15. January 16, 2020 79 EXAMPLE OF ADDITIONAL PAYMENTS Payment to 115 Trust Safety 46.7% 49.8% 46.2% 41.4% 41.4% 41.4% 41.4% 41.4% 34.1% 27.9% 42.9% 40.2% 43.7%46.2%47.9%49.3%50.3%49.2% 44.4% 34.1% 27.9% 10% 20% 30% 40% 50% 60% 70% 80% Contribution Rate Projection Target 50th Percentile January 16, 2020 80 EXAMPLE OF ADDITIONAL PAYMENTS Payment to 115 Trust Safety 2,142 2,414 2,362 2,235 2,360 2,492 2,631 2,777 2,413 2,084 1,802 1,846 2,118 2,362 2,586 2,809 3,027 3,125 2,980 2,413 2,084 $100 $600 $1,100 $1,600 $2,100 $2,600 $3,100 $3,600 Contribution Projections ($000s) Target 50th Percentile 315 Item 15. January 16, 2020 81 EXAMPLE OF ADDITIONAL PAYMENTS Payment to 115 Trust Safety 0 500 1,000 1,500 2,000 2,500 3,000 3,500 Supplemental Trust Balance ($000s) 50th Percentile January 16, 2020 82 ACTUARIAL CERTIFICATION This report presents analysis of the City of Beaumont’s CalPERS pension plans. The purpose of this report is to provide the City:  Historical perspective on the plan investment returns, assets, funded status and contributions.  Projections of likely future contributions and the impact of investment volatility The calculations and projections in this report are based on information contained in the City’s June 30, 2018 and earlier CalPERS actuarial valuation reports. We reviewed this information for reasonableness, but do not make any representation on the accuracy of the CalPERS reports. Future investment returns and volatility are based on Bartel Associates Capital Market model which results in long term returns summarized on pages 23 and 41. Future results may differ from our projections due to differences in actual experience as well as changes in plan provisions, CalPERS actuarial assumptions or methodology. Other than variations in investment return, this study does not analyze these. To the best of our knowledge, this report is complete and accurate and has been conducted using generally accepted actuarial principles and practices. As members of the American Academy of Actuaries meeting the Academy Qualification Standards, we certify the actuarial results and opinions herein. Respectfully submitted, Mary Elizabeth Redding, FSA, EA, MAAA Vice President Bartel Associates, LLC January 16, 2020 Bianca Lin, FSA, EA, MAAA Assistant Vice President Bartel Associates, LLC January 16, 2020 316 Item 15. Staff Report TO: City Council FROM: Jennifer Ustation, Interim Finance Director DATE September 21, 2021 SUBJECT: Approval of Invoice from Riverside County Fire Department for Fourth Quarter Fire Services Fiscal Year 2021 Background and Analysis: The City of Beaumont maintains a contract with Riverside County Fire Department for applicable fire protection services that are provided by The California Department of Forestry and Fire Protection (“Cal Fire”). Cal Fire provides an estimate of costs for the year during the budgeting process, which is evaluated against the actual invoices as they are received. Invoices are presented to the City on a quarterly basis and are based on actual costs except for support services which follow the budgeted cost estimate. The City has received the invoice for April 1, 2021, through June 30, 2021, in the amount of $838,766.59. The invoice has been reviewed by City staff and is in compliance with the contract. The invoice has been included as Attachment A. The budget for this contract for FY 2021, is $4,565,808. The invoices for the fiscal year are as follows. First Quarter $917,453.30 Approved by City Council on January 19, 2021 Second Quarter $1,146,793.33 Approved by City Council on March 16, 2021 Third Quarter $938,051.98 Approved by City Council on July 20, 2021 Fourth Quarter $838,766.59 Pending City Council approval TOTAL $3,841,065.20 The total for the fiscal year of $3,841,065.20 represents 84.13% of the budget for the year. Fiscal Impact: The cost for this contract is included in the budget and the expenditures were within budget authority for FY 2021. 317 Item 16. Recommended Action: Approve payment of the FY 2021 Fourth Quarter Fire Services invoice from Riverside County Fire Department in the amount of $838,766.59. Attachments: A. FY 2021 Fourth Quarter Fire Services Invoice from Riverside County Fire Department 318 Item 16. 319 Item 16. 320 Item 16. 321 Item 16. 322 Item 16. 323 Item 16. 324 Item 16. 325 Item 16. 326 Item 16. 327 Item 16. 328 Item 16. 329 Item 16. 330 Item 16. 331 Item 16. 332 Item 16. 333 Item 16. 334 Item 16. 335 Item 16. 336 Item 16. 337 Item 16. 338 Item 16. 339 Item 16. 340 Item 16. 341 Item 16. 342 Item 16. 343 Item 16. 344 Item 16. 345 Item 16. 346 Item 16. 347 Item 16. 348 Item 16. 349 Item 16. 350 Item 16. 351 Item 16. 352 Item 16. 353 Item 16. 354 Item 16. 355 Item 16. 356 Item 16. 357 Item 16. 358 Item 16. 359 Item 16. 360 Item 16. 361 Item 16. 362 Item 16. 363 Item 16. 364 Item 16. 365 Item 16. 366 Item 16. 367 Item 16. 368 Item 16. Staff Report TO: City Council FROM: Todd Parton, City Manager DATE September 21, 2021 SUBJECT: Review of Local Emergency Declaration Established via the Adoption of City of Beaumont Resolution No. 2020-07 Adopted on March 17, 2020 Background and Analysis: On March 17, 2020, the City Council passed and approved Resolution No. 2020-07 (“Resolution”) which authorized the City Manager to execute a declaration of the existence of a local emergency in the City of Beaumont. Approval of the Resolution was in response to the declaration by the World Health Organization (WHO) of the COVID – 19 pandemic, Governor Gavin Newsom’s declaration of a state of emergency for all California, and the increase of infections within the City of Beaumont and the immediate area. The emergency declaration must be reviewed every 60 days in order to determine whether conditions exist for its continuance. This emergency declaration was reviewed by the City Council on June 15, 2021, and was not modified. The City Council’s adoption of Resolution No. 2020-07 established the existing emergency declaration and empowered the City Manager to: 1. Make and issue rules and regulations on matters reasonably related to the protection of life and property as affected by such emergency; 2. Obtain vital supplies, equipment and such other properties found lacking and needed for the protection of life and property, and to bind the City for the fair value thereof; 3. Require emergency services of any City officer or employee, and, in the event of the proclamation of a state of emergency in Riverside County, to command the aid of as many citizens of Beaumont as is deemed necessary by the City Manager for the execution of the City Manager’s duties; such persons shall be 369 Item 17. entitled to all privileges, benefits and immunities as are provided by state law for registered disaster service workers; 4. Requisition necessary personnel or material to any City department or agency; and 5. Execute all ordinary duties and powers of the City Manager as well as special powers conferred by the Beaumont Municipal Code, by resolution or emergency plan adopted by the City Council, and all other powers conferred by the City Council and any other lawful authority. As of the time that this memorandum was prepared, there had been no significant cessation of the conditions that originally warranted the adoption of Resolution No. 2020-07. The COVID – 19 pandemic originally declared by the WHO was still in place, Governor Newsom’s emergency declaration remained in effect, and new cases of infection were still being diagnosed within Beaumont’s immediate area. If Beaumont’s emergency declaration remains in effect, it will be brought back to the City Council for consideration no later than November 16, 2021. In the event that the City Council determines that a local emergency declaration is no longer required, an amending resolution will be presented for City Council consideration at the next regular City Council meeting of October 5, 2021, or earlier at a special meeting convened by the City Council for that purpose. Fiscal Impact: There are no costs resulting from the continuation of a local state of emergency. City staff estimates that preparation of this report cost to be approximately $75. Recommended Action: City staff recommends waiting for the Governor Newsom’s official announcement on the status of the State’s emergency declaration before making any change regarding the local emergency declaration. This is to ensure that Beaumont remains eligible for federal and state emergency aid. Attachments: A. City of Beaumont Resolution No. 2020-07 370 Item 17. 371 Item 17. 372 Item 17. 373 Item 17. 374 Item 17. SLOVAK BARON EMPEY MURPHY & PINKNEY LLP Palm Springs, CA T (760) 322-2275 Indian Wells, CA T (760) 322- 9240 Orange County, CA T (714) 435-9591 San Diego, CA T (619) 501-4540 New Jersey T (609) 955-3393 New York T (212) 829-4399 www.sbemp.com ANGIE ARCILLA arcilla@sbemp.com FIRM ASSISTANT TO SONJA LEE REPLY TO: Palm Springs, California September 7, 2021 CITY OF BEAUMONT PROFESSIONAL SERVICES THRU: 8/31/2021 TOTAL DUE: $95,418.60 Sincerely, SBEMP,LLP By: Angie Arcilla 375 Item 18. 376 Item 18. 377 Item 18. 378 Item 18. 379 Item 18. 380 Item 18. 381 Item 18. 382 Item 18. 383 Item 18. 384 Item 18. 385 Item 18. 386 Item 18. 387 Item 18. 388 Item 18. 389 Item 18. 390 Item 18. 391 Item 18. 392 Item 18. 393 Item 18. 394 Item 18. 395 Item 18. 396 Item 18. 397 Item 18. 398 Item 18. 399 Item 19. 400 Item 19. 401 Item 19. 402 Item 19. 403 Item 19. 404 Item 19. 405 Item 19. 406 Item 19. 407 Item 19. 408 Item 19. 409 Item 19. 410 Item 19. 411 Item 19. 412 Item 19. 413 Item 19. 414 Item 19. 415 Item 19. 416 Item 19. 417 Item 19. 418 Item 19. 419 Item 19. 420 Item 19. 421 Item 19. 422 Item 19. 423 Item 19. 424 Item 19. 425 Item 19. 426 Item 19. 427 Item 19. 428 Item 19. 429 Item 19. 430 Item 19. 431 Item 19. 432 Item 19. 433 Item 19.