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HomeMy WebLinkAbout27- Public Works 27.a .G Consent Calendar o City of San Bernardino z •� Request for Council Action N r c Date: October 18, 2017 E d To: Honorable Mayor and City Counci a From: Andrea M. Miller, City Manager``` By: Ryan Aschenbrenner, Reil Property Specialist d Subject: Revised Lease Agreement with the Metropolitan Water District relative to Assessment District No. 1055 y 0 Recommendation Adopt a Resolution of the Mayor and City Council of the City of San Bernardino, California, authorizing and directing the execution of a revised lease agreement with the Metropolitan Water District of Southern California, relative to Assessment District No. o 1055 in the Pine Avenue and Redwood Street Area, Tract No. 17716. o L i.. d Background On January 24, 2006, the Planning Commission approved Tentative Tract No. 17716 with conditions. One of the conditions for this development was the formation of a 3 Landscape Maintenance Assessment District to include a 100 foot strip of vacant land .. to the west of the tract. The easterly 40 feet of this strip is within the tract boundaries and is encumbered by an easement to the San Gabriel Valley Water District, which consented to the installation and maintenance of landscaping without the requirement of t a lease or compensation for its use. The remaining 60 feet, known as Norman Johnson 4) Park, is owned by the Metropolitan Water District of Southern California (MWD) for water transmission lines. The MWD consented to the installation and maintenance of landscaping conditioned on the execution of a lease agreement. Although there are N MWD areas for which the MWD issued no-fee permits in the area, these no-fee permits are no longer available as the MWD has changed their policy regarding the use of their properties. o N On February 20, 2007 the Mayor and City Council adopted Resolution 2007-46 (Attachment 1) authorizing execution of an acknowledgement of a lease (R.L. 2470) a between the MDW and the developer of Tentative Tract No. 17716, Pine Trails ;v Partners, LLC pursuant to the conditions of approval requiring the formation of an Assessment District in the Pine Avenue and Redwood Street area. The year to year lease between MWD and Pine Trails Partners, LLC was fully executed in March of 2007 and would allow the developer to install the required landscaping and perform E maintenance for the first year. r a Packet Pg. 379 2 On July 16, 2007 the Mayor and City Council adopted Resolution 2007-308, approving the formation of Assessment District No. 1055 (AD 1055) for the maintenance of z landscaping and a sewer lift station appurtenant to the development of Tract 17716. N Pine Trails Partners, LLC sold the property to FH II, LLC (Frontier Homes) and the lease o of 2014 to reflect the transference of responsibility was amended in March p y to FH li, LLC and set the term of the lease to a single twelve month term. (Attachment 2) N U) W Frontier Homes would take longer than a year to complete the installation and required a maintenance period prior to acceptance of the improvements by the Assessment District and executed a second amendment to the MWD lease agreement to extend the lease for an additional six months, to expire at the end of August 2015. (Attachment 3) o: On August 27, 2015 the landscape improvements were accepted for maintenance by the Assessment District. 0 On September 21, 2015 the Mayor and City Council adopted Resolution 2015-208 Y authorizing and directing the execution of Amendment No. 3 to the MWD lease (Attachment 4). The language "year-to-year" is reintroduced into the lease agreement with this amendment however the language of the amendment also includes a o termination date, such that the agreement survives for a twelve month period beginning o September 1, 2015 and terminated on August 31, 2016. On November 7, 2016 the Mayor and City Council adopted Resolution 2016-234 which w authorized and directed execution of a fourth amendment to the MWD lease which r would have amended the term of the lease to a 5 year term with three optional 5 year 3 extensions. This amendment is not executed by the MWD as the district policy concerning the conversion of the lease from a year-to-year term lease to a long term lease required approval by their Board and detailed review of the provisions of the lease agreement. N On June 13, 2017 the MWD's Board of Directors approved a long term version of the MWD lease. This version of the lease would escalate future rents by 4% per year and was rejected as over the life of the assessment district such a lease was unsustainable. I N to O Q d C d E t I Packet Pg. 380 27.a Discussion The original lease (Attachment 1), acknowledged by the City and executed by the o developer in 2007, had an initial rent of $2,325 per year adjusted bi-annually to the 0 Consumer Price Index (CPI) not to exceed a 5% increase in any adjustment period as shown In the City approved Engineer's Report for AD 1055. This bi-annual adjustment was accomplished by comparing the "Annual Average of the United States Consumer o Price Index — All items" of the year preceding an adjustment to a Base Index Year of 2005 and multiplying this ratio of the annual average of these two years by the initial y rent. Amendment No. 3 (Attachment 4) to the Lease Agreement modified the Initial Rent to 0 $2,594 starting in 2015, but did not adjust the Base Index Year accordingly. As a result the bi-annual rent adjustment would max out at 5% every year until the rent caught up with the gains in the CPI which had accumulated in the decade between 2005 and 2015. L a+ The lease has been reviewed and approved by the MWD with the following changes: o r • Paragraph 2, TERM, is updated to reflect the lease to be year-to-year beginning October 1, 2016. • Paragraph 4, RENT is updated to an initial rent of $2,700 for the term beginning o in 2016. o • Paragraph 5, DETERMINATION OF FUTURE RENT, is updated to use the ratio of the Annual Average of the United States Consumer Price Index — All Items of the two preceding years rather than a fixed Base Index Year, is adjusted annually rather than bi-annually, the maximum increase is lowered from 5% to 4%, and Y the minimum rent is fixed at the prior period's rent. 3 • Paragraph 9, TERMINATION, update prior written notices to 180 days from 30 days. • Paragraph 24, LIABILITY INSURANCE, updated to reflect that the City is a self- insured Lessee. a d • Paragraph 25, ASSUMPTION OF RISK AND INDEMNITY, indemnity language updated to reflect modern practice. • Paragraph 26, SECURITY DEPOSIT, updated to reflect the revised initial rent y amount of$2,700 as opposed to the 2007 initial rent amount of$2,325. • Paragraph 32, NOTICE TO HOMEBUYERS, is removed as this was a condition for the developer. • Paragraphs 33 thru 43 new standard provisions which were not yet in use by the MWD in 2007. 0 CL d 0 c d E t ca Q Packet Pg. 381 27.a In a letter dated September 7, 2017, the MWD requested that the City execute the revised Lease Agreement and pay • $1,500 amendment processing fee of for the preparation of the revised lease z° agreement. 2 • $2,700 rent for term beginning October 1, 2016 • $375 security deposit, this amount represents the difference between the original security deposit of$2,325 and the new security deposit of$2,700. At this time, the rent for the term beginning October 1, 2017 is also be due in the N amount of$2734. a 0 The first payment to the MWD under the revised lease would be $7,309 accounting for ; all of the costs described above. d As substantiated by paid special assessment reports published by the County, AD 1055 has collected $78,299.76 to dates since its formation in 2007. To date, there has been $38,674.15 in expenses paid from the district. $39,625.61 remains in the district, of which $23,224.44 is already allocated to the 2017/2018 operational budget for the district. The remaining $16,401.20 is unallocated. This unallocated amount is expected ir. to grow by $18,034.00 to $34,435.20 once the special assessment payments begin to Y be received by the City in the months of November and April. o CL 0 L Norman Johnson Park has been maintained by AD 1055 since August 27, 2015. The MWD lease rent for 2015 was paid under Amendment No. 3. No rent has been paid for 2016 or 2017. At this time the MWD has not ordered the removal of improvements nor w that the City vacate the property while the City and MWD has been working together 3 resolve the Lease Agreement, however without the lease, the area would need to be excluded from the Assessment District and would revert to non-maintained condition. L Fiscal Impact No additional liability to the General Fund is anticipated from this action, as the lease y was built into AD 1055 at formation. The existing liability to the General Fund is limited to the General Benefit calculated for the district at 10% of district expenditures. The liability to the assessment district is $7,309 this year, and future rent as determined by Paragraph 5 of the Lease Agreement in future years. This cost is offset by the special assessments already collected in AD 1055 and is not an additional liability as the Lease was built into the assessment district at formation and the rent escalators are capped by the lesser of the CPI growth or 4% and the assessment escalator for the district, when applied, is capped by the lesser of CPI growth or 5%. L The 2017/2018 operating budget within the district has allocated $3,000 for the Lease rent which represents a budgetary shortfall of $4,309 which will require a budget amendment to the district budget allocating an additional $4,309 to 254-150-6048*5181 (Other operating expenses) for the district from those as yet unallocated funds collected E for the district. Packet Pg. 382 27.a Conclusion It is recommended that the Mayor and City Council adopt the resolution authorizing and directing the execution of the revised lease agreement and amending the district budget 6 to allocate unallocated funds within in the district to pay for two years of rent and administrative fees associated with bringing the lease current. y 0 Attachments Attachment 1 — Resolution 2007-46 E Attachment 2 —Amendment No 1 Attachment 3 —Amendment No 2 U) Attachment 4— Resolution 2015-208 -Amendment No 3 0 0 Attachment 5— Rent Exhibit Attachment 6 — Resolution; Exhibit "A"— Lease Agreement d Ward: 5 L i+ N Synopsis of Previous Council Actions: o L d M • Feb 20,2007—Resolution 2007-46 acknowledging a lease between Pine Trails Partners, 1° LLC developer and the Metropolitan Water District of Southern California(MWD)for the = lease of MWD property which now comprises most of Norman Johnson Park o 0. 0 • May 7,2007—Resolution 2007-169 declaring the City's intent to form Assessment District No. 1055. as t • July 16,2007—Resolution 2007-308 forming Assessment District No. 1055 and confirming w the 2007/2008 Assessment Roll for the district. 3 c d • Feb 7,2011—Resolution 2011-28 declaring the City's intent to amend Assessment District aa) d No. 1055 rn a d • Apr 4,2011—Resolution 2011-83 ordering additional work in Assessment District No. 1055 aD and confirming the 2011/2012 Assessment Roll for the district. -j d • Sept 21,2015—Resolution 2015-208 authorizing execution of Amendment No.3 to R.L. 2470, assigning the MWD lease to the City of San Bernardino for one(1)year. 0 • Nov 7,2016—Resolution 2016-234 authorizing and directing execution of Amendment No. 4 to R.L.2470 which would have converted the term of the lease into a 5 year term lease with three(3)optional five(5)year extensions. This amendment is never executed by d MWD. ` 0 c d E t n: Q Packet Pg. 383 This Page Is Left Intentionally Blank 27.b 1 2 RESOLUTION NO. 2007-46 0 3 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND 6 DIRECTING THE EXECUTION OF AN ACKNOWLEDGEMENT OF A LEASE ? 4 BETWEEN THE METROPOLITAN WATER DISTRICT OF SOUTHERN 5 CALIFORNIA AND PINE TRAILS PARTNERS,LLC, RELATIVE TO A PROPOSED o ASSESSMENT DISTRICT IN THE PINE AVENUE AND REDWOOD STREET AREA, c 6 TENTATIVE TRACT NO. 17716. E N y 7 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY y 8 OF SAN BERNARDINO AS FOLLOWS: c 9 SECTION 1. That the Mayor of the City of San Bernardino is hereby authorized and d o: 10 directed to execute on behalf of said City, an Acknowledgement of a Lease between the .` r 11 Metropolitan Water District of Southern California and Pine Trails Partners, LLC, relative to a o 12 proposed Assessment District in the Pine Avenue and Redwood Street area, pursuant to the �2 13 Conditions of Approval for Tentative Tract No. 17716, said lease is attached hereto as Exhibit"1" o 14 0 15 and made a part hereof. 16 SECTION 2. This resolution is rescinded if the parties to the contract fail to execute it r 17 within sixty(60)days of the passage of the resolution. 18 19 a 20 J 21 22 0 23 N 24 25 0 3 26 27 E r v 28 Q 01/23/2007 1 Packet Pg. 384 27.b 1 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE 2 EXECUTION OF AN ACKNOWLEDGEMENT OF A LEASE BETWEEN THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA AND PINE TRAILS PARTNERS,LLC,RELATIVE c 3 TO A PROPOSED ASSESSMENT DISTRICT IN THE PINE AVENUE AND REDWOOD STREET, TENTATIVE TRACT NO.17716. z r 4 5 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and o c a� 6 Common Council of the City of San Bernardino at a joint regular meeting thereof N N d held on the 20th day of February — 2( 07 ,by the following vote,to-wit: a 8 0 Council Members: AYES NAYS ABSTAIN ABSENT 9 ESTRADA x - - - 10 'i 11 BAXTER x _ o 12 BRINKER X R 13 DERRY x 14 KELLEY a o X 15 JOHNSON g 16 r r i7 MCCAMMACK xQ3 18 - 4) Ci , 'lark L 19 a The foregoing resolution is hereby approved this q?/jr–day of ,February .2007 20J 21 N 22 ATRIC J.MOR Mai or qq Ci n Bernardino 0 23 N 24 Ap roved as to form: 25 ' ' o J ES F. PENMAN,City Attorney 26 27 E U 28 01/23/07 2 Packet Pg. 385 200746 LEASE 0 0 Z R. L. 2470 MWD Foothill Feeder(Fee) MWD Parcel No. 1606-30-5 (Ptn) APN 0261-101-08 E N N d U) This Lease is made by and between THE METROPOLITAN WATER DISTRICT a OF SOUTHERN CALIFORNIA,a public corporation, hereinafter referred to as Lessor, and 0 PINE TRAILS PARTNERS LLC,hereinafter referred to as Lessee. >_ d 1. DESCRIPTION OF PROPERTY. Lessor hereby leases to Lessee,on the terms 0: hereinafter set forth,that certain property hereinafter referred to as Property. Said Property is L described in Exhibit"A"and shown on Exhibit"B"attached hereto and incorporated herein by o reference. 2. TERM. The term of this Lease shall be from year-to-year beginning on March I, 2007, This Lease may be terminated in accordance with the provisions of Paragraph 9 herein w below. CL 0 3. USE. Property shall be used for passive greenbelt purposes only. Recreational improvements, organized sporting activities, and equestrian activities are specifically not s permitted, in addition to any other uses, which may be considered, at Lessor's sole discretion, _ deleterious to its current or future operations. Lessee's use of Property shall comply with all 3 applicable laws,ordinances and regulations. Property shall not be used to fulfill requirements for setback, park or open-space dedications or in-lieu fees or any exactions requisite for E development. This Lease is subject to Lessor's paramount right to use the Property for water L conveyance purposes. Lessor is a public utility and acquired the Property for drinking water Q conveyance purposes, including but not limited to long term operation and maintenance of its N Foothill Feeder. Lessor reserves the right to use the Property for any and all future uses necessary for Lessor's water conveyance purposes, including but.not limited to maintenance, v repair, and replacement of the existing Pipeline and appurtenant facilities, and/or installation of y additional subsurface and surface infrastructure. Lessor's rights to use the Property for water conveyance purposes, as described in this paragraph, are collectively referred to hereafter as the "Paramount Right." Lessor is not responsible for repair or replacement of Lessee's N improvements in the event Lessor.exercises its Paramount Right. T 4. RENT. The basic annual minimum rent shall be$2,325 payable in advance of the a next rental term. o 5. DETERMINATION OF FUTURE RENT. Commencing as of the end of the second full year of the term and each and every two-year period thereafter, the Rent shall be adjusted by multiplying the Rent in the current year of the Lease by a factor which shall be the r a Packet Pg. 386 2007-46 27.b Lease R.L. 2470 -2- 0 6 ratio of the Annual Average of the United States Consumer Price Index- - All Items for the last ? prior year of the concluding two-year rental period to die Annual Average of the Consumer Price N Index - All Items for the year 2005 as reported b} the United States, Department of Labor, o Bureau of Labor Statistics, and published in its monthly publication "Survey of Current Business" which factor is 1,95.3 provided, however, that the basic minimum annual Rent shall in E no case be less than $2325.00 notwithstanding the above. d N N Computation of the above ratio shall be carried to four decimal places and c rounded to the nearest 1/100th with the computation of Rent resulting from the application of this ratio rounded to the nearest dollar. d The calculation to arrive at the new Rent is as follows: r N New Index Year = Factor x Rent=New Rent Base Index Year In the event that the U.S. Department of Labor, Bureau of Labor Statistics, shall 2 cease to report, or change its method of compiling and/or reporting the Consumer Price Index - -6 All Commodities used in the above ratio, such other index as may be substituted in place thereof o by the appropriate governmental agency of the United States then having responsibility for such compilation and reports of Consumer Price Indices, subject to any necessary adjustment of such Index appropriate to its continued use in determining the ratio set forth above. shall be used. 3 In the event that such substitute index is not provided, or proves unsuitable for determining the above ratio,then such other index appropriate to such use.as mutually agreed E upon by the parties hereto, shall be used. i Q Notwithstanding the above calculations, the rent increases shall not exceed five percent N (5%)at any given adjustment period. d J 6. RENTAL PAYMENTS. All rental payments shall be made payable to The N Metropolitan Water District of Southern California and mailed to Post Office Box 54153, Los Angeles. CA 90054-0153, with the Lease R.L. number noted on the check and on the face of the .. envelope. N 7. LATE PAYMENT CHARGES. Lessee hereby acknowledges that late payment r by Lessee to Lessor of rent and other sums due hereunder will cause Lessor to incur costs not a contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges. Accordingly, if any installment of rent or any other sum due from Lessee shall not be received by Lessor within 20 days after such amount shall be due. Lessee shall pay to Lessor a late charge equal to ten E percent of such overdue amount. in no event shall the late charge exceed the maximum � allowable by law. The parties hereby agree that such late charge will incur by reason of late payment by Lessee. Acceptance of such late charge by Lessor shall in no event constitute a Packet Pg. 387 ' 2007-46 27.b Lease R.L. 2470 -3- , waiver of Lessee's default with respect to such overdue amount, nor prevent Lessor from exercising any of the other rights and remedies granted hereunder. z6 8. RETURNED CHECK CHARGE. Lessee shall pay to Lessor a tee of$100 for y any checks returned, plus. Lessee must pay to Lessor any and all other fees incurred with such o return. If Lessee has txvo returned checks within any 12-month period. Lessor shall not accept personal checks for any current or future payments due under this Lease. In this event: E acceptable payment shall be in the form of cashier's check, money order,or cash delivered in person to Lessor's Accounts Receivable Section located at 700 North.Alameda Street, Los a Angeles. CA 90012-2944. o r 9. TERMINATION. This Lease may be terminated at any time by Lessor or Lessee upon 30 days' prior written notice. Notice is to be deemed given upon the mailing thereof. postage prepaid,to the recipient at its address set forth below. w In the event the Lease is terminated between the anniversary dates in accordance o with the provisions of this clause, there shall be a pro rata refund of any rent paid in advance for the remaining term. co c Violation of any term,covenant,condition or provision contained herein shall be o cause for termination of the Lease. unless corrected within ten days after Lessor's written request c to do so. r 10. LOAD LIMITATION. If Lessee plans to use any equipment or engage in an%. activity on Property which will impose loads greater than AASHTO H-20. Permittee shall submit the specifications of such equipment for review and written approval by Lessor five working 3 c days prior to its use. d E a 11. IMPROVEMENTS. No structures or improvements shall be constructed or maintained on the Property without Lessor's written consent first had and obtained. a 12. REMOVAL OF IMPROVEMENTS. All structures and,'or other improvements placed on Property by Lessee shall be the personal property of Lessee and shall be removed by Lessee from Property by the last day of the Lease; provided, further. Lessor may keep, or dispose of at Lessee's expense.any real or personal property not so removed. 0 13. VACATING THE PROPERTY. At the expiration of the term, or at any sooner termination of this Lease, Lessee shall quit and surrender possession of Property and its appurtenances to Lessor in as good order and condition as Property was delivered to Lessee. reasonable wear and tear and damage by the elements excepted. a 0 14. NIAINTENANCE. Lessee shall, at its sole cost and expense, keep Property free of weeds, trash and debris,and shall comply with all applicable laws and regulations concerning the use of Property. E r a Packet Pg. 388 2007-46 27.b Lease R.L. 2470 -4- CD 15. HAZARDOUS SUBSTANCES. For purposes of this Lease, the term "Hazardous Substances" means: (a)any substance,product. waste,or other material of any nature z whatsoever which is or becomes listed, regulated,or addressed pursuant to the Comprehensive 2 Environmental Response, Compensation, and Liability Act(CERCLA), 42 United States Code y Section 9601 et seq.; the Resources Conservation and Recovery Act,42 United States Code o Section 6901 et seq.; the Hazardous Materials Transportation Conservation and Recovery Act. 42 United States Code Section 1801 et seq.; the Resources Conservation and Recover:pct. y 42 United States Code Section 690I et seq.; the Clean Water Act, 33 United States Code N Section 1251 et seq.; the Toxic Substances Control Act, 15 United States Code Section 2601 a et seq.; the California Hazardous Waste Control Act. Health and Safety Code Section 25100 E et seq.; the California Hazardous Substance Account Act, Health and Safety Code Section 25330 et seq.; the California Safe Drinking Water and Toxic Enforcement Act, Health and Safety Code Section 25249.5 et seq.;California Health and Safety Code Section 25280 et seq. (Underground Storage of Hazardous Substances);the California Hazardous Waste Management Act, Health and Safety Code Section 25170.1 et seq.; California Health and Safety Code Section 25501 et seq. (Hazardous Materials Release Response Plans and Inventory);or the California o Porter-Cologne Water Quality Control Act. Water Code Section 13000 et seq., all as amended (the above-cited California state statutes are hereinafter collectively referred to as"the State Toxic Substances Laws"); or any other federal,state, or local statute, law, ordinance, resolution, code, rule, regulation, order or decree regulating, relating to,or imposing liability or standards of c conduct concerning any Hazardous Substance, now or at any time hereafter in effect;(b)any c substance, product, waste or other material of any nature whatsoever which may give rise to liability under any of the above statutes or under any statutory or common law theory based on negligence,trespass, intentional tort. nuisance or strict liability or under any reported decisions of a state or federal court: (c)petroleum or crude oil, other than petroleum and petroleum products which are contained within regularly operated motor vehicles; and (d)asbestos. a� a. Lessor warrants and represents that as of the date hereof there are no Hazardous Substances in or about Property and that Property and improvements thereon a do not violate any applicable Federal, State or local statutes, ordinances, regulations. rules or other requirements,and that there is not presently pending any proceeding before any Federal, State or local tribunal or agency,the outcome of which would diminish or preclude Lessee's use of Property as permitted under the terms of this Lease. Except as N so provided, Lessor makes no warranty or representation whatsoever concerning Property, including without limitation, the condition, fitness or utility for any purpose thereof, any improvements thereto or personal property located thereon. or compliance o thereof with applicable laws, ordinances or governmental regulations: and the Lessee's right to use Property is strictly on an "as is." basis with all faults; and Lessor hereby disclaims all other warranties whatsoever, express or implied, the condition of the soil (or water), geology,and any warranty of merchantability or habitability or fitness for a a 0 particular purpose. b. Except as otherwise specifically permitted under the terns of this Lease. Lessee shall not use,create, store or allow any Hazardous Substances on Property. Fuel r and other Hazardous Substances stored in a motor vehicle for the exclusive operation of � such vehicle and storage batteries used for emergency power are excepted. Packet Pg. 389 2007-46 27.b Lease R.L. 2470 -5- 0 r 6 Z r C. In no case shall Lessee cause or allo,,%•the deposit or disposal of any such Hazardous Substances on Property. o c d. No underground storage tanks shall be installed on Property. C. Lessor or its officers, employees,contractors, or agents shall at all times have the right to go upon and inspect Property and the operations conducted thereon to a 0 assure compliance with the requirements herein stated. This inspection may include taking samples for chemical analysis of substances and materials present and/or testing soils on Property and taking photographs. f. Lessee shall. within a reasonable time,either prior to the release by Lessee or following the discovery by Lessee of the presence of, or believed presence of,a o Hazardous Substance as defined herein, give written notice to Lessor in the event that ; Lessee knows or has reasonable cause to believe that any release of a Hazardous Substance has come or will come to be located on or beneath the subject Property. The failure to disclose in a timely manner the release of either a material amount of �= Hazardous Substance or an amount which is required to be reported to a state or local o agency pursuant to law(e.g.. California's Hazardous Materials Storage and EmerkencN Response Act, Health and Safety Code Section 25550 et seq.)may subject Lessee to a default under this Lease in addition to actual damages and other remedies provided by law. Lessee shall immediately clean up and completely remove all Hazardous w Substances placed by Lessee on Property, in a manner that is in all respects safe and in 3 accordance with all applicable law's, rules and regulations. E aD g. Lessee shall disclose to Lessor the specific information regarding Lessee's disposal of any Hazardous Substances placed on Property by Lessee and provide written Q documentation of its safe and legal disposal. aD J h. Breach of any of these covenants,terms,and conditions shall give Lessor d the authority to immediately terminate this Lease and/or to shut down Lessee's operations W thereon, pending rectification of the breach, in which case, Lessee will continue to be a: liable under this Lease to remove, and mitigate all Hazardous Substances placed by o Lessee on Property. Lessee shall be responsible for.and bear the entire cost of removal and disposal of all Hazardous Substances introduced to the Property by Lessee during — Lessee's period of use and possession of Property. Lessor may pass through to Lessee any and all costs of removal and mitigation of Hazardous Substances incurred by Lessor a as a result of Lessee's activities on Property. Notwithstanding the foregoing. Lessee shall be responsible for any removal mitigation or decontamination. on or off Property, necessitated by the presence of such Hazardous Substances placed on Property by Lessee. Upon termination of this Lease. Lessee is required, in accordance with all laws. to E remove from Property any equipment or improvements placed on Property by Lessee that � could be contaminated by Hazardous Substances. a CA Packet Pg. 390 2007-46 27.b Lease R.L. 2470 -6- 0 6 Z v i. Lessee shall defend. indemnify and hold Lessor and its officers, N employees, contractors or agents harmless from any claims, liability, injury, damage, o costs.or expenses (including. without limitation,the cost of attorneys' fees) arising as a � result of the presence or use of any Hazardous Substances caused to be placed by the N r N ro rt � during the term of this Lease. The foregoing indemnity is intended to Lessee on P du t � y b b g as operate as an agreement pursuant to Section 107, subdivision(e)ofCERCLA. 421 United y States Code Section 9607, subdivision(z). and to California Health and Safety Code o Section 25363, to insure, protect, hold harmless and indemnify Lessor from any liability created by the Lessee pursuant to such sections. d o: I HAVE READ AND UNDERSTAND PARAGRAPH 15 HAZARDOUS SUBSTANCES. Lessee's Initials o o a 0 16. ACCESS. Lessee shall provide and maintain uninterrupted vehicular access in and across Property to Lessor and its employees,agents and contractors. If applicable. Lessee shall provide a means for Lessor to place its locks on gates. r t r 17. ENTRY BY OWNER. Lessee shall permit Lessor to enter upon Property at any 3 Y reasonable time for the inspection thereof.or at any time in connection with any work which may be required thereon, and Lessor shall not be liable for any damage to Lessee's personal a property in the course thereof. a d 18. PREVIOUS LEASES. In.the event there is any existing lease between Lessee and Lessor(or its predecessor-in-interest)covering Property,it is agreed and understood that this -J Lease shall cancel,supersede and terminate said prior lease as of the effective date of this Lease. N 19. ASSIGNMENT OR SUBLETTING. With the exception of a City of San Bernardino Landscape Maintenance District,Lessee shall not assign this Lease, nor sublet o Property, without the prior%mitten consent of Lessor,and a consent by Lessor to one assignment N shall not be deemed to be a consent to any subsequent assignment or subletting. Any assignment or subletting without the written consent of Lessor shall be void and shall, at the option of Lessor, terminate this Lease. Lessor is hereby exempt from participation and assessment of any a kind whatsoever in a Landscape Maintenance District. 20. TAXES. The possessory property interest created by this Lease may be subject to property taxation,and Lessee may be subject to the payment of property taxes levied on such s interest by the County. Lessee is required to pay any such tax directly to the County � Packet Pg. 391 2007-46 27.b Lease R.L. 2470 -7- 21. MECHANICS' LIENS. Lessee shall keep Property free from any liens arising out of any work performed, material tisrnishcd,or obligations incurred b-%• Lessee, or any tenant z° or subtenant thereof. + 22. WAIVER. The waiver by Lessor or Lessee of any breach of any term. covenant, o condition or provision, hereinafter referred to as Terms,contained herein, shalf not be deemed to be a waiver of such Terms of any subsequent breach of the same or any other Terms contained E herein. The subsequent acceptance of rent by Lessor shall not be deemed to be a waiver of any preceding breach by Lessee of any Tetras of this Lease,other than the failure of Lessee to pay y the particular rental so accepted. regardless of Lessor's knowledge of such preceding breach at o the time of acceptance of such rent. 23. ATTORNEYS' FEES. The prevailing party in any action brought by either party hereto, based on any claim arising under this Lease, shall be entitled to reasonable attorneys' and/or consultants' fees. 0 24. LIABILITY INSURANCE. Lessee has furnished insurance in the minimum amount of$1,000,000 in accordance with the Certificate of Insurance attached hereto as Exhibit "C-l." A review of the insurance coverage will be made every two years in order to adjust the coverage to be commensurate with the appropriate insurance coverage existing for similar type �= leaseholds at the time of review. Failure to maintain a current Certificate of Insurance on rite o with Lessor evidencing such insurance shall be cause for termination. Said insurance shall meet the following criteria: CD a. Remain in effect throughout the term of this Lease and an} renewals thereof, 3 CD b. Name Lessor as additional insured, E d a� L C. Shall obligate the insurance carrier to provide not less than a 30-day notice a of cancellation or material change to Lessor affecting the coverage of the policies. d J Lessor shall have no liability to Lessee or to any insurer, by way of subrogation or otherwise,on account of any loss or damage to Lessee's respective property,or the Project, regardless of whether such loss or damage is caused by the negligence of Lessor or Lessee, arising out of any of the perils or casualties insured against by the property and/or liability o insurance policies carried. The insurance policies obtained by Lessee pursuant to this Lease 04 shall permit waivers of subrogation that the insurer may otherwise have against the non-insuring party. in the event the policy or policies do not allow waiver of subrogation prior to loss, Lessee shall,at the request of Lessor, deliver to Lessor a waiver of subrogation endorsement in such a form acceptable to Lessor. If such an endorsement is not available and the Lessee's insurer pursues separate legal action against the Lessor,the Lessee shall be responsible for all legal fees and payment of any funds Lessor is legally held obligated to pay. E Prior to an assignment of this Lease to a City of San Bernardino Landscape Maintenance District,the Landscape Maintenance District shall furnish Lessor with a letter evidencing the a Packet Pg. 392 2007-46 27.b Lease R.L. 2470 -8- establishment of its self-insurance program. Proof of a bonafide self-insurance program, in r- accordance with the terms of this section, shall satisfy all insurance requirements under this 6 section. This program shall remain in full force and effect during the term of this Lease subsequent to the assignment to a Landscape Maintenance District. _N 25. ASSUMPTION OF RISK AND INDEMNITY. Lessee assumes all risk of lass to � itself,which in any manner may arise out of the use of Property under this Lease. Further. E Lessee hereby agrees to indemnify and defend Lessor and its directors. officers. and employees d against any liability and expense, including the reasonable expense of legal representation N whether by special counsel or by Lessor's staff attorneys, resulting from injury to or death of any c person,or damage to any property, including property of Lessor,or damage to any other interest of Lessor, including,but not limited to, suit alleging noncompliance with any statute or regulation which in any manner may arise out of the issuing of this Lease,or use by Lessee of Property, or any adjoining land used with Property. �- � .i 26. AMENDMENTS. The provisions of this Lease may be amended by mutual c written consent of the parties hereto. ; 27. SECURITY DEPOSIT. Lessee shall deposit with Lessor$2.325 as a guarantee for faithful performance of the conditions of this Lease. Lessor may use such amounts as are reasonably necessary to remedy Lessee's default; in the payment of rent, to repair damages o caused by Lessee, to clean the premises, or to replace personal property or appurtenances ` exclusive of ordinary wear and tear, upon termination of the Lease. No later than two weeks after Lessee has vacated the premises, Lessor shall furnish Lessee with an itemized written statement of the basis for, and the amount of,any security received and the disposition of the r security and shall return any remaining portion of the security to Lessee. 3 c d 28. NO RELOCATION ASSISTANCE. Lessee acknowledges that Lessee is not E entitled to relocation assistance or anv other benefits under the Uniform Relocation Assistance P Act or any other applicable provision of lav upon termination of this Lease. Q d 29. This paragraph intentionally left blank. d 30. TIME. Time is of the essence of this Lease. d 31. NOTICES TO LESSOR. All notices,certification of insurance, and or demands c required or permitted to be given to Lessor hereunder shall conspicuously bear the legend "NOTICE UNDER FACILITY LEASE R.L. No. 2470 and Lessee's identification file number, -- code or ID on the notice itself and on the envelope containing the notice, shall, until contrary instructions are given to Lessee in writing. be effectively given to Lessor when delivered a simultaneously by hand or mailed by registered or certified mail, return receipt requested,to Lessor,Attention: Asset Management, The Metropolitan Water District of Southern California, P. O. Box 54153, Los Angeles, California 90054-0153. E r Ix Packet Pg. 393 2007-46 27.b Lease R.L. 2470 -9- 0 32. NOTICE TO HOMEBUYERS. Lessee shall provide a complete copy of Lease to 0 each of the homebuyers within Lessee's adjacent development prior to close of homebuyer's ? escrows. ` Date Executed:_ nn d E Lessor's Mailing Address: THE METROPOLITAN WATER DISTRICT ( N Post Office Box 54153 OF SOUTHERN CALIFORNIA Los Angeles, CA 90054-0153 a Attention: Real Estate Services Unit Jeffrey K.ightlinger 0 Telephone: (213)217-7750 General Manager r gy � Jill . Wictce L Manager,Real Property An Development and Management r w Lessor o 0 L Date Executed: sk.-/p-1 d r Lessee's Mailing Address: PINE TRAILS PARTNERS, LLC Y A California Limited Liability Company 3 101 Main Street Suite A c Seal Beach,CA 90740 E Telephone: (562)430-0503 By ?,AcTt w M�G�.�e ✓ c 3'r�tt;A-r U) James R. Watson AKtt.o, m Authorized Signatory J / Approved as to form: _ n., _ Jr ES f PENMAN.City Attorney Acknowledgement: � CITY OF SAN 13ERNARDINO o r By I3ATRI R J. h(ORR1MI�t or a Packet Pg. 394 2007-46 V\I11I11T .1 0 11106 41 t I'urt.il+te t ° Z 1't+rrlt;it Ita'Slet IZi�l:o I'i;eeliJet � \t11'131,� rn 0 1'tm: I r.til. I'ar!ttcr., l I.C. c to E 111.11 l%wlitm+rfMock;9, Ire neje++n l..tnd mid Water C'emp:me StiNke.itin. in the City ter San rn N 1kt:rIfa( Blit).Cotut1v if San Ikrt it.it.It;tu. `late ut('alifurteia.as shemtit till flap bleat in Book 3,11ago9 of U) Ll_ -;. iu the Oflicc ttf tier C;uultly ItecOldtsr uf>afti COuttty. :umryed to I'lic \lclruprtitan W;ut:r District to a nl Stxethet»C -A fornix a,Panel A. by C+ra:nt D ecti recurtled Aprit. 19. 1071 it, litkek ?b ig. liag-c j'I 1,of o C ffictnl Rcvvrtl.of-:aid County. d :r EXCEPTING thcrei'rotn all thal portion of raid A trivul A,cnrtresed to Ilia Cily of Sven � f3croartlint)by Permanent Casement Lked rectuded March 30, 1999 a.lNx!umcnt No. 89-0931)2 of �. OTian: Flecord<ufsaidC'uunty. rn All as shun\•n on Exhibit attached herctv azul ntadc a ptft hereof. 0 at to Subject to any and all existing uses. Iicett.,es,Permits,easements,rights of way,covenrnt., conditions and restrictions. C r r EVD OF UF.SC.RIMON ^� ° 0 t r t PRFP.ARED UNDER IMY SUPERVISION ,_ E Neter C. W' emen P.L.S.G2�1 a, • jam, / a * ae H lC Date N d O r \I. J'I'�aJc�e;Ft.nh+ll FeeJrf. NakikPir-darn RIAV 1 N r H F— Q t] C m E t V l�ihl l lei 1 Packet Pg. 395 007-45 27.b EXHIBIT B Page 7 of I PORTION OF BLOCK 39, 1AWNGTON LAND AND WATER COMPANY SUBDIVISION M.B. 319, CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CAUFORNIA THIS EXHIBIT IS TO BE ATTACHED TO THE LEGAL DESCRIPTION 6 z LEGEND � 7A LEASE RL 2470 O r S 1606-30-5(PORTION) E - 1.783 AC. .'Y 'o� U, D. �, r 1p. �'`•, r � PERMANENT EASEMENT AER DOC.NO.88-093112 O.R. 1 j ``-•- o REC.03-30-1988 � %J�• ' -. P � Y Q � a 0 ev: � -N, Alk N JQ� � ix (I �j�;Q1 3 4C ego-ti's J' '� �' 4v (PO `SND S� a G. NOT TO SCALE �, u o / ` N r • E, D No. 21 e o VICINITY MAP p�F o� a� Cp PREPARED UNDER o THE TROPOUTAN WATER DISTRICT PERV/SIO MEOF SOUVIERN CAUFORNIA -/4�,� SITE- , FOOTHILL FEEDER *. Iseman P.LS. 6241 LEASE RL 2470 J •�~{�l.. �� MWD TO a PINE TRAILS PARTNERS, LLC- ` •. wor rosc u DATE - 1605.30-5 (PORTION) J�'ra;a.Js/Fr.�+h:t.f:�ctN.RQJIo.f'J,�1rc�t�wie.!rd/r6f�6-'103�a Packet Pg. 396 CERTIFICATE OF LIABILITY INSURANCE oii17/z 27.b (818)843-4314 FAX (818)842-0378 ONLY AND COI FERS NO RIIGHTED S UPON THE CERTITIFIICAATTE� Olympic Insurance Agency HOLDER-THIS CERTIFICATE DOES NOT AMEND,EXTEND OR 1906 W. Burbank Blvd. ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. P.O. Box 7725 Burbank, G 91510-7725 INSURERS AFFORDING COVERAGE NAIC s o NWNED atslan and Milt I ates; F1"ne ra - NBURERA' Golden Eagle Ins. Corp. _-- 0 Partners, LLC MaURERs: Z 101 Main Street SERC Seal Beach, G 90740-6335 INSURER a. _____ y ISR E. Q r+ COVERAGES C THE pouCes OF INSURANCE USTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR TKE POLICY PERIOD INDICATED.NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR N TO ALL THE TERMS,EXCLUSIONS AND CONDITIONS OF SUCH MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT N POLICIES.AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. d iiw oxTYPE OF MI9URANCE POLJCT NUI INN P MATE 1IMM E T10Y La1FFa Q GENERAL UANI M CBP8203 503 01/06/2007 01/06/2006 EACH OCCURRENCE 1 1,000,000 0 X COMMERCW.GENERAL LIABILITY FFEB 1 100 ) CLAM MADE a OCCUR MED EJP Ibry am pr�on3 i 5.000 r PEI2SONILL t AOV INxIRY s 1 000 2 A X _-- GENERAL ADGREOIATE i 21000, GEWL AGGREGATE I.WT APPLES PER PRODUCTS-COMPA7P AGO i 1,000 V ppo-o- .` POLICY .ECT LOC N AUTON09"LIARI r COMBED SINGLE LOST 1 Q (ES ANY AUTO �? L d ALL OWNED AUTOS BODILY"Aw S SCHEDULED AUTOS (P<p—) HIRED AUTOS ODDLY s Weno NON-OwNED AUTOS 0 PROPEIM DAMAGE S Q �-- - (per.ocfdMly 0 *ARAM LIABILIFY AUTOONLY-EAACCDENT S eA 1 ANYAUrO 0 AGO i t p 'An ITT EACH OCCURRENCE 1 r OCCUR CLANS MADE AGGREGATE 1 ?� S C DEDUCTIBLE N RETENTION1 S 41 _ WC STA O) WOIOIBM COMPENSATION AND - CA 91PLAYEW LIABILITY E4 EACH ACCMENF B Q ANY PROPRIETORIPARTNERJE)MCUTNEd OFFICERIMFJABEREXCLUDED? E.L.OISF.ASE-EAEMPLOYE S- UI :9d*"Kdw t dw E L DISEASE-POLICY LMIT S E d OTNEN -- - .. J d __-,- > DESCNrTION OPERA J')III VIHICI9 J�aausIoN ADDED TIY 1 NB N E; Loc-�arce APN 026 -101-08 St. San Be r�no 4 0). Certificate Holder s named as an additional insured as their interest may appear as respects to general liability. o Except 10 days notice of cancellation for non payment of premium. N CANCELLATION Q SHOULD MIY OF THE ABOVE DESCRIM POLICES eE CANCELLED BEFORE THE Q EIIPIRATION DATE THEREOF,THE BMW IISIMR YMLL ENDEAVOR TO BAIL 30; oAYB WRITTEN NOTM.E TO THE C6MFIGTE HOLDER NAMED TO THE LEFT, The Metropolitan Water District Headquarters BUT FALwETOVIAL SUCH NOTICE$HALL01p°BENOOBUGATION00LIAO N c OF ANY WHO UPON THE IHSUNK FM AMMON Oa BEPRESENTATIMM 0 P.O. Box 54153 E Los Angeles, CA 90054-0153 AUn10RIEM IlEPRESMATNB Donald Barberie Sr. "1' v ACORD ZS{2001108 BNACORD CORPORATION 1988 Packet Pg. 397 27.b 1 M PORTANT 6 z If the certificate holier Is an ADDITIONAL INSURED,the policy(ies)must be endorsed.A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s), o .r c If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may E require an endorsement A statement on this certificate does not confer rights to the certificate N holder in lieu of such endorsement(s). N N Q O r DISCLAIMER r The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s),authorized representative or producer,and the certificate holder,nor does it affirmatively or negatively amend,extend or after the coverage afforded by the policies listed thereon. D r !6 C R a+ O Q. O r L a+ t a+ 3 r c m E 0 N L Q J d N d Q' O r N LT Lr r Q C� C r. d E L V ACORD 26(20"011) Q Packet Pg. 398 This Page Is Left Intentionally Blank 27.c n THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA Lr) CD aM�A O Z r U Office of fhe General Manager y Lease R.L.2470 0 MWD Foothill Feeder-Rialto Pipeline C MWD Parcel No. 1606-30-5 (fee) E APN 0261-731-42 N WSO La Verne Team V) U) a 0 t., a� March 25,2014 ' Mr.Lonnie Ellisor 4 L '.,? .` Frontier Communities 8300 Utica Avenue Suite 300 Rancho Cucamonga,CA 91739 ' � Dear Mr.Ellison 0 Transmittal of Amendment No._1 to Lease R.L.2470 0 ' ` Y d Transmitted is your original executed copy of Amendment No. i to Lease R.L.2470. Should you have any questions,please contact me at telephone(213)217-7665 or y pnorlen@mwdh2o.com. 3 Sincerely, 0 E a Paul C. Norlen v Senior Real Estate Representative J Revenue&Property Management Unit PCN:Ihm CD Enclosure N N N H H Q 0 a.% C N E s �a r 700 N.Alameda Street,Los Angeles,Califomia 90012•Malling Address:Box 54153,Los Angeles,California 90054-0153•Telephone(213)217.6000 a Packet Pg. 399 27.c AMENDMENT NO. 1 TO;LEASE R.L.No.2470 Foothill Feeder—Rialto Pipeline c MWD Parcel No. 1606-30-5 c APN 0261-731-42 ? WSO La Verne Team A Lease R.L.2470 between THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA and PINE TRAILS PARTNERS LLC is hereby amended by � substituting FH II,LLC as Lessee,and by deleting in its entirety Paragraph 2 thereof,and y substituting therefor the following: y a 2. TERM. The term of this lease shall be from March 1,2014 though ° February 28,2015. ° Except as herein amended,all terms and conditions of Lease R.L.2470 shall continue in full force and effect. L 0 Date Executed: 2 cc Lessor's Mailing Address: THE METROPOLITAN WATER DISTRICT Post Office Box 54153 OF SOUTHERN CALIFORNIA Los Angeles,CA 90054 ° Attention: Real Property Development Jeffrey Kightlinger and Management Group General Manager Telephone(213)217-7750 Y By: Pohn C airday,Manager Real Property Development E and Management Group L a Lessor a� N J Date Executed: 3 1 v, Lessee's Mailing Address: FH II,LLC 8300 Utica Avenue,Suite 300 o Rancho Cucamonga,CA 91730 f Telephone(909)354-8000 By: Jame/-f. 11reviti,Presiden By. Richard Munkvold,Chief Financial Officer s E Lessee t U PCNAM j s:RPDMAWA4+649_Uase Amendmenkdoec G Packet Pg. 400 Pill", -Uwil% td ot LSI frNrtCt4*n14Ct'fiEni_n Wat.or Oisiriv 0 114 ri p (bov.11"11.211 01-11 porlkwof*0 f4mw.(v,couvo)vdui IlItt"hy"PT . 1301"famiIN!by Norlancoi CASCIllellif t>-.Va: Minh$.,Oj,l,9j*:A OfflOn,4VICLInN fir-utill-c-! .6ulkly, All.0-31mmo omExhibit.-IS(O 11jul PA! Q hv*.. '001joAs 4*1 resid' La CL 0 � !��tc .a'.enJ�nti P.L.S.G2�tI � —_ '�` � SD Date FlAwr 31,Itft Ln Packet Pg. 401 27.c E �/'!17 ;i Page 1 of t POJTTlo?!OF Ocp =2gr,IA'Y�Ii �1i"1}!)rit�A�Y[�WOER � COMP�AN U pi 'loly"hA IL 319; 0 . .. ..., E Rnl�ll WNo, z co�IN :��SAS�Ef NARDthlO ��A1`E _F G��9LlFt�RtittA T1,(!S 1'1l,�1' 'iS r E �ITrAoF O ?'7ti, L COAL bESOMPTION n, 0 LEGEND: _ ��• r �F�itSE.RL 4W .'. a �! o �L i E�,tl t"98a Av ` 0. ik .,1 1. •'�" m O E m i NOT TO SCALZ v: • Q; m WC1111"ITY o r`? ' L CM .,� PfiLPtAR 1�Jf1D.FR. N T MOT OT � ' f SITE•.'' v�:a4 ► .. tiRIMI c /Zl .. t ' ���� � FOOTHILL FEEG►EH Psemanp:�S.'8,2+�►i LEASE RL 2470 c N1Wli rQ At PINE TRA(tS:PARhV OSS LLC.. E i 1616.6-40-.5 f, DRTI.Pffi j +. r:�osri DATE :�;1'ra{a?Is1`F4'r7ei��-l: .R1Mro. Jadtrk7 ,���u5i fit? s ri 7,+;z2-4vx AL i Packet Pg.402 •4�oRn°® CERTIFICATE OF DATE LIABILITY INSURANCE tem THIS CERTIFICATE A3 ISSUEp AS A MATTER OF INFORMATION ONLY AND CONFERS NO RiAFR$UCERTIFICATE _ 2�3/20r� . CERTIFICATE DOES NOT AFFBiAAATIVELY OR NEGATIVELY AAAEND, AND OR ALTER THE COVERA E AFFC RDED BY THE Dpp�ClEg BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE 188UNG Q REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. fOtSURER(S}, AUTHORIZED IMPORTANT: ff the certificate holler b an ADDITIONAL INSURED,the pollcy(iea}moat be endorsed. K SUBROGATION IS WAIVED,a/la to Z the terms and condlUons of the poNcy,certain poNcias may require an eTldonemertf A statement on this Certificate holder in iteu of sueh endonement sl. irate do"not CoRfergghja m the PRODUCER • amoi V T, T� ' ice+ CD8 Insurance Services [Affi E (908}t388-7200 _ _m License # OC88587 taoalaaa-zoo a 2001 E. Financial Way cartifi oafras®odaiasaraTaae,vols 0 POE Glendora Ch 91741 NITER 9 umIIRENAATnited�eoial Ins NA F I MMURED FH II, LLC; FII Ii t3P; m SH Ti Hrzmebuilders, Inc; pH II Nu Ventures, watt eMavi ators t Ice. Co. d McURER O 7 N LLCt Frontier Commnnitiea E Nuco Homes LLC U) 8300 Utica Ave.#300 � WBIRMRD: Q MOUR6k a t 0 Rancho Cucamonga CA 91730 kFt m COVERAGES CERTIFICATE NUAABER,'OLI39303281 THIS is TO CERTIFY THAT THE POLICS:1 DF INSURANCE US1ED BELOW HAVE BEEN ISSUED TO TME INSURED ABOVE T} POLICY PERIOD INDHSATED. NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER d rACLAIMS40DE MAY BE ISSUED OR MAY PERTAIN.THE INSURANCE AFFORDED BY THE POLI bIESCRIBEDDOL'UMENT VII TO WHICH THIS AND CONDITIONS OF SUCH POLICIES.UNITS ON"MAY HAVE BEEN REDUCED BY PAID CR113E HEftmI IS SUBJECT TO ALL THE TERNS, YPBOFUtKIRANCE AD P LICYNLIMI PO Ef EXI GENERAL LIARLITY W Yvr I U) OULL GENERAL,LMBWTY EACH S 2,000,000 6 MB NAGE OCCUR ro1316281 /23/2013 /23/201) P __ __ 8$CLM= - UM EJWA Ona rc i l7LCjPERSOMALSADVINJUiLY $ 2,000,0D0AATE LNr AwLEs PE3i f 2,000,000PRO LOG PRODUCTS•COhUMDP A9p 0 2,000,000 0 AUTOMOBILE UABI ITY a sZ ANY AUTO e n Ns€LrttT�" ALL OWNED r—SCHEDULED BOD4Y WaIRY(P<tMpp¢] e AUTQs_ HUMAUr08 AUTOS I�DILYRiMRYtp�ra¢di¢n11 IPE e t 1 X UMBRELLA UAB occLlR 8 BIICBBS Los EACH OCCtNme� 8 5,000,000 3 DED RFrerlTorla 13=XC78016IOG /23/2013 23/2618 AGGRE"TE a 31000,000 i WORMERS COMPENSATION d ANDEMPLOYSIllLasOl WC : E rlw OOFf��RIYWRNBM f]=LUDDED? MIA 0) IMt¢xlerory in NHy EAI3I A S ErRFfM vdwopi kT babe LLDI86ISE-EAEMPLOTE Z - Q -- LL DWA9E.POLICY LIMIT S e) R 0 —I [04 CID 7M OF OPERATMMIS)LDOATWNS IVEHIOLEB ¢h ACOOD let.Adcmiaml Re�Ae Sah¢duls,rol spuq b ngWMtq e) re: Lease x,L. 2470 J►PN 0261-79f'-14402 ($ILII Bernardino County) w Metropolitan Water Distriot of Bouthern California ie named as additional > bility per form CG 20 12 05 09. Waiver of subrogation applies to the haired on the Aral 10 93. 9ol>eril liability per form C6 24 I o I I N I LO I CERTIFICATEHOLDERCANCELLA.TbN — C4 Q SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF. NOTICE- WILL BE DELIVERED IN The Metropolitan Water Distriot of auACCORDANCE WITH THE POLICY PROVI9tONs. Southern California -.� +r P.O. Box 54153 TNORrzEokePaN�iTATiWE Los Angeles, CA 90054-0153 m Chuck STrau/PCRI8TI �' -e• +- .c..-x.,r cLj ACORD cn ().ol S) 011988.2010 ACORD POOC RR RATION. All rights reserved, .r IN502512mtm51.o� Q The ACORD name and logo are registered mBHce of ACORD Packet Pg. 403 27.c POLICY NUMBER. $T01316281 COMMERCIAL GENERAL LIABILITY CG20120509 THIS ENDORSMENT CHANGES THE POLICY. PLEASE READ IT CARMLL.Y. xaj �l 1) r o ADDITIONAL INSURED-STATE OR GOVERNMENTAL AGENCY ? OR SUBDIVISION OR POLITICAL SUBDIVISION -- PERMITS OR y AUTHORIZATIONS c' This endorsement modifies insurance provided under the following: d E >Hats Or OovornourMsl Age»cy Or tlub6lvb(on Or PofMioal H h Pef Wratten Contreet Q O loftnation required to omn lets Itws dch9duli �lf"ol SM4 above.will,be shown In the Deo! R d r V r to D COMMERCIAL GENERAL LIABILITY COVERAGE PART d SCHEOULE C lC Section II-Who to An Insured h emended to Include as an Insured any site or govermnental agenay or Q subdivision or potH(csl subdivision shown in the . Schedule,subject lo the following provisions. 0 1. This insurance applies only with mAvrt b opera- tions performed by you or on your behalf for which the state or govammeMsi agency or subdhAsion or political subdivision has issued a pemm or au. +• thornzalion. s 2. This insurance does not apply lo: 3 a.'Bodey injury','properly damage"or"persona(and adver(ishtg injury'arising out of operations performed for the federal government.state or municipality;or b."BodBy injury"or`property damage"included within E the*products-completed operations hazard'. d ah Q d N dl J M d to CG 2012 0509 a Insurance services Office,.Inc.,2008 Page i Ott d 0 T N v N Q D 3 t r I Packet Pg. 404 27.c EXHIBIT C POLICY NUMBER: BT01316281 COMMERCIAL GENERAL LIABILITY CO 24 0410 93 _o THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY, o Z WAIVER OF TRANSFER OF RIGHTS OF RECOVERY y AGAINST OTHERS TO US This endorsement modifies Insurance provided under the following: E COMMERCIAL GENERAL LIABILITY COVERAGE PART w d SCHEDULE Q Name of Person or Organization:As per written contract 0 m As Required by Written Contract r M Ofd (If no entry appears above,information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) The TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US Condition (Section IV—COMMER- w CIAL GENERAL LIABILITY CONDITIONS)is amended by the addition of the following: o We waive any right of recovery we may have against the person or organization shown in the Schedule above because of payments we melee for Injury or damage arising out of your ongoing operations or'your work°done M under a contract with that person or organization and included In the "products-completed operations hazard". _ This waiver applies only to the person or organization shown in the Schedule above. r 0 M 0 d d r r t r 3 _ d E 1 m ar Q m w m m m OC _o I N N Q 0 3 d E t CG 24 0410 93 Copyright, Insurance Services Office, Inc., 1992 Page 9 of 1 p Q Packet Pg. 405 .�� ..�A J-J-A1 1 L 27.c CERTIFICATE 4F LIABILITY INSURANCE 2/3/201'4 THIS CERTIFICATE 1$ISSUED AS A MATTER OF INFORMATION ONLY AND CONFER$NO RIGHTS UPON THE CERTIFICATE HOLDER,'•1rHI8 CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES REPRESENTATIVE THIS CERTIFICATE PRODUCER,OF INSURANCE DOES NOT CONSTITUTE A CONTRACT ft-TWEEN THE ISSUING INSURER(81,AUTHORIZED IH;ER,AND THE CERTIFICATE.H04MR. IMPORTANT: N the certlticate holder Is an ADDITIONAL INSURED,Iha p0icy(ies)must be endorsed, N SUBROGATION 18 WAIVED,subJeet to Z Z terms and conditions of the policy,certain policies may require an endorsement. A statement on this certificate does not eonter rights to the certificate holder in lieu of such endorsement(s). 0 PRODUCER CD8 Insurance Serviee (909)599 s P1gNi T 9)599Jane .-7200 (A x (90911 egg-s�00 License !fi OC88587 = 2001 S. Financial Way INSVREaE APPoaontaORA= � I Glendora CA 91741 rwcs E 91BIAIF�lAd3late Com elLsrat:ion rne. Farad5076 N OrSUR® MURERa Bvarast Nations Iaavxanoe CO d F H II Homebuilders, Inc. NeuluRee N 8300 Utica Ave #300 INSURN0 -- Q 0 R#ncho Cucamonga CA 91730 W9URERE1 Ure11RER F r COVERAG88 CERTIFICATE U MBEP-13-14 REVISION NUMBER: R THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE IN8URE0 NAMED ABOVE FOR THE POLICY PERIOD 2 INDICATED. NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT MTN RESPECTTO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MIAYHAVE SEEN REDUCED BY PAID CLAIMS ALL THE TERMS, v TYPE OFNreuAANcs POUCYNIAW11 y LTA -p -- oEN6RAL LIAIIUTY Lions h EACH OCOURRUYCE S 6 00MMERC AL GENERAL LIAORM CLASL4•dlAOE OCCUR WD E%P Any ane person 9 -- PERSONAL a ADV INJURY s GMA0GFW TELNITAPPLIESPEIt riB1ERALA00REGATE S tea PRODUCTS-COMPMPAGO s POLICY LOO 8 O 0 CL AUT090BaE t1A&I ITY 20 - 16/13D/6/140 X pry�O 1.000 000 ALL ED ALROSAASU�TTp� EODEYNIREIYGyrOgnan) 8 $ �( I9ItEDAUTOS NOIiOWED EOWLYMAR11r(Perrfpl0sq S W Auroa s £ UMMEUA a OCCUR EACHOCCURRENCE S 3 AOIrYtE011TE DED I RETENn0N = AND EMPLOYERS LUMILM _ N NY APROPR MIWARTNER18MCLnrVE YIN i s 1.000 000 OFP BER EXCLUDED? MIA B.L EACH ACCDW j (IYunndabmInNNJ 064129-13 /4/2013 /a/2e14 L-- M MMDESCfS qN OF OPERATIONS behw F-L DISEASE-EA EMPLOYE $ 1 000,000 Q E1.ONIE4kSE.P0UCYLWff S 000 000 y d J '0 PIgN OP OPERATLDNS I LOCATNDN8r VENICLEB{�aCA AOOl10 701,AddSlmrl Reneb Sehenae,Eeace plea b nq:mety � re: Lease R.L. 2470 AM 0261-791-42 (Spin Bernardino County) The b%txopoiitan Water District Of Southern California is named as additional insurad on the auto policy d - endorsement to follow from oarrier. Waiver or subrogation applies to the auto � follow. L?olic7 - endorascant to 0 Waiver of subrogation applies to the work comp per form 2570 - endorsement to follow from carrier, 04041 CERTIFICATE HOLDER CANCELLATION � Q SHOULD ANY OF THE ABOVE DHSCRMED POLICIES ae CANCELLEDqBEIPORETHE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVThe Metropolitan ►later District of ACCORDANCE WITHTtEPOUCYPROVISIONS. Southern California P.O. Box 54153 AUTHORIZED REPRESeNTATIVE Los Angeles, CA 90054-0153 E Chuck Swan/SANDRA `---^ �'"--C-`•,.. c.,-.�..-� c=i ACdRD 26(2010105) ®1988-2010 ACORD CORPORATION. Ali rights reserved. j INS026 tmtoospi The ACORD name and logo are registered marks of ACORD Packet Pg.406 27.d AMENDMENT NO. 2 TO LEASE R.L. No. 2470 Co Foothill Feeder—Rialto Pipeline o MWD Parcel No. 1606-30-5 Z APN 0261-73142 r WSO La Verne Team (n 0 c a Lease R.L. 2470 between THE METROPOLITAN WATER DISTRICT OF N SOUTHERN CALIFORNIA and FH II, LLC is hereby amended by deleting in its entirety 0 Paragraphs 2 and I I thereof, and substituting therefor the following: a 0 2. TERM. The term of this lease shall be from March 1, 2015 through August 31,2015. a 11. IMPROVEMENTS. No structures or improvements shall be constructed or maintained on the Property without the Lessor's written consent first had and obtained. Any changes in Lessee's improvement plans shall require Lessor's approval prior to construction. o d Except as herein amended, all terms and conditions of Lease R.L. 2470 shall continue in full force and effect. C B Date Executed: 3 -Ile °n. 0 r Lessor's Mailing Address: THE METROPOLITAN WATER DISTRICT Post Office Box 54153 OF SOUTHERN CALIFORNIA t Los Angeles,CA 90054 Attention:Real Property Development Jeffrey Kightlinger 3 and Management Group General Manager Telephone(213)217-7750 +. E By: a� ! John Clairday,Mariat a Real Property Development N and Management Group J Lessor N Date Executed: 2113 �,o is' CD Lessee's Mailing Address: FH II, LLC 8300 Utica Avenue, Suite 300 M Rancho Cucamonga, CA 91730 By: Telephone(909) 354-8000 James 1/11'reviti,President Q By: - Richard Munkvol3—,ChiefTinancial Officer E Lessee CU PCN:Ihm s:WDMAWA5685 Lease Amendment No.2.doex Q Packet Pg. 407 27.d EXIIIBIT A 0 T 1606-30-5 (Portion) z Foothill Feeder/Rialto Pipeline Lease RL 2470 MWD to 0 Pine Trails Partners,LLC. _ m That portion of Block 39, Irvington Land and Water Company Subdivision, in the City of San y Bernardino,County of San Bernardino,State of California, as shown on Map filed in Book 3,Page 9 of y Maps, in the Office of the County Recorder of said County, conveyed to The Metropolitan Water District Q of Southern California as Parcel A.by Grant Deed recorded April 19, 1971 in Book 7649, Page 341, of 0 Official Records of said County. r EXCEPT[NG therefrom all that portion of said Parcel A,conveyed to the City of San Bernardino by Permanent Easement Deed recorded March 30, 1988 as Document No. 88-093112 of Official Records of said County. •L i/ All as shown on Exhibit"B"attached hereto and made a part hereof. p L m Subject to any and all existing uses, licenses,permits,easements,rights of way,covenants, conditions and restrictions. c END OF DESCRIPTION 0 CL0 L PREPARED UNDER MY SUPERVISION 3 Peter s P W. m �an P.L.S.6241 Date O IJ v a� N_ > d A.L.J:TrojectsTuoibill_Feeder_Rialto Pipelinc%R0Wl1.cpA1606.30-5.doc O February 22.2006 N M I— I— Q a+ C d E t U Page l of 1 Packet Pg. 408 27.d 0 EXHIBITB Page 1 Of t I z PORTION OF BLOCK 39, IRVINGTON LAND AND WATER COMPANY SUBDIVISION M.B.319,CITY OF SAN BERNARDINO, i COUNTY OF SAN BERNARDINO,STATE OF CALIFORNIA THIS EXHIBIT IS TO BE ATTACHED TO THE LEGAL DESCRIPTION 0 I d LEGEND I E N N LEASE RL 2470 11806-30- .83 AC5(PORTION) OEM, 0 p 0 i I y PERMANENT EASEMENT PER DOC.NO.88-083112 O.R. REC.03.301988 J 6 �O QQ�� O N AZ N G NOT TO SCALE o 7) J Expcp y '� No. 6241 > VICINITY MAP CA o PREPARED UNDER toy SUPERVISION THE METROPOLITAN WATER DISTRICT r, OF SOUTHERN CALIFORNIA � S1TE f F- r - FOOTHILL FEEDER a Hien P.L.S.6241 LEASE Rt 2470 MWD To PINE TRAILS PARTNERS, LLC. Z 1606.30.5(PORTION) _ Hormtdua DATE i J:Proleds/Foots)I-Feeder-,Rlalto-Plpetlne/ROWI"titVJ606-30-5dgn 02-P-2-2006 AL Q Packet Pg. 409 27.d EXHIBIT C A6®a CERTIFICATE OF LIABILITY INSURANCE2i3i24 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES r BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSUREII AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. O Z IMPORTANT: If the certlficate holder Is an ADDITIONAL INSURED,the pollcy(les)must be endorsed. If SUBROGATION IS WAIVED,wbject to v the terms and conoTtions of the policy,certain policies may require an endorsement A statement on this certificate does not confer rights to the ` certificate holder In lieu of such endorsementisl. _ y PRODUCER p CDB Insurance Services Imc No Ekt. (909)599-7206 -�- (009)599-zTaO License # OC88587 oelrtifioatass@crir3su=a�aae.ocm 2001 E. Financial Way I e AFFOROMGCOVBtAOE NA_ICs W Glendora Cil 91741 INSURERA;,United Specialty Ins Co W 4t --- - In INSURED FH II, LLC; FH II GP; INSURISRSN"igators specialty Mills. CO, y FH IS Homebuilders, Inc; rH II Ru Ventures, eBUpmc.eat At00rican Ise. Co. Q LLC r Frontier Coa>snunities 6 Nnco Homes, LLC1N9 Aw O;State sensation Ina. Fund — r 8300 Utica Ave.#300 INBUROR : a► Rancho Cucamonga CA 91730 IwueERF: COVERAGES CERTIFICATE NUMBER:CL139303281 REVISION NUMBER: d THIS IS TO CERTIFYTHATTHE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS v CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, ` EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAYHAVE BEEN REDUCED BY PAID CLAIMS, h LTR. TYPE OF INSURANCE POLICY NUNBBR Y .MM P.. LI WTe RA. 0 GENELIAB&M EACH OCCURRENCE S 2,000,000 L 0) N7— MERCIAL GENERAL LMILITY tel,amine xe S EXCLUID (+0, A, C,AIMSaAA.E ®OCCUR 701316291 /23/2013 /2.7/201:1 MED EXP Ww ono person) $ ExCLDD PERSONAL 4 ADV INJURY i 2,000,00 a R GENERAL AGGREGATE S 2,DOO,000 GENT AGGRFGATE LIMIT APPLE$PER PRODUCTS-COMP(OP AGG S 2,000,000 Q X POLICY LOC t AUTONOBLELIABILnv tEsemfdenl'd1` 1. 000 000 C Ix ANYAUro Lw (15) 56190215 /6/2016 /6/2015 BODLYINJURY(Perpe:son) t ALL OVMEDADH SCHEDULED BODILY INJURY(Per eccklert) SNON-OVMEDIIIRMAU ; TOS Y AUTO$ S X LBORELLA LMBOCCAIR EACH OCCURRENCE t 5,000,000 a EXCESSLUIB CLAIMS-MADE AGGREGATE i 5,000,000 y PED RETENTION) E136YC79018IDC 23/2013 /23/2035 i E IDTH- 0) WORKERS COMPENSATION - ANDEMPLOYERS'LMBrJTY YIN X Ofi: -Ir,.1T' cl= _.— i ANY PROPRIETORIPMTNERADECUTIVE EL.EACHACCIDENT $ 1 000 009 Im D 0µe Irwffi�In NH)E UOEm NIA 064126-14 /4/2014 /4/2034 E L DISEASE-EA EMPLOYE, 9 1100 0 000 4) yyeeU) IDt�uCAVIA8OFOrPERATIONSbelbw+ EL.DISEASE-POLICY LIMIT S 1000 000 0) J >3 01 -_ .- N DESCRIPTION OF OPERATIONS,LOCATIONS r VEHICLES`Aeaeh ACORD 101,Add*ood Ibrnorks Schedule,H mon cpaca is requires •> re: Lease R.L. 2470 APS 0261-791-42 (San Bernardino County) 4) The Metropolitan Water District of Southern California is named as additional insured on the general liability per form CG 20 12 05 09. Waiver of subrogation applies to the general liability per form CG 24 p 04 10 93. N fO M CERTIFICATE HOLDER CANCELLATION Q D SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE T THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN 2 The Metropolitan Water District Of ACCORDANCE WITH THE POLICY PROVISIONS. C Southern California P.O. Box 54153 AUTHORIZED REPRESENrAT1YE Los Angeles, CA 90054-0153 t v Chuck SKan/KRISTI ACORD 25(201 0105) ®1988.2010 ACORD CORPORATION. All dghte reserved. iNS025 pilims)m The ACORD name and logo are registered marks of ACORD Packet Pg. 410 T 27.d EXI TIB I 1 C POLICY NUMBER: BT01316281 COMMERCIAL GENERAL LIABILITY CO 24 0410 28 0 Z THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. L Y WAIVER OF TRANSFER OF RIGHTS OF RECOVERY N 0 AGAINST OTHERS TO US E N Th' ndorsement mrr5urence Prov!3i eZf er the following: d COMMERCIAL GENERALLIABI� ERAGE PART Q r' SCHEDULE ° r Name of Person or Organiratlion:As per written contract r As Required by Written Contract (if no entry appears above,information required to complete this endorsement will be shown in the Deciaretiona as applicable to this endorsement.) y The TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US Condition (Section IV—COMMER- CIAL GENERAL LIABILITY CONDITIONS)is amended by the addition of the following: r We waive any right of recovery we may have against the person or organization shown in the Schedule above 3: because of payments we make for Injury or damage arising out of your ongoing operations or'your work"done c under a contreci with that person or organization and included in the "products-completed operations hazard". cc This waiver applies only to the person or organization shown in the Schedule above. o CL 0 L Cd C w 3 c d E a� a� Q (D a� J d) m N d Q' O T N M H H Q 0 r C E t U fC a CG 24 0410 93 Copyright, Insurance Services Office, Inc., 1992 Page 1 of 1 ❑ Packet Pg. 411 27.d POLICYNl1MBER. BT01316291 COMMERCIAL GENERAL LIABILITY 0 CG 20 12 05 02 r' O THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. Z r v ADDITIONAL INSURED -STATE OR GOVERNMENTAL AGENCY N OR SUBDIVISION OR POLITICAL SUBDIVISION - PERMITS OR AUTHORIZATIONS E This endorsement modifies Insurance provided under the following: N O N N 8ta0a Or Owrenn ntat Ayre Ort b% lsian Or PolNlcal tluddlvlslon: O Per Written CofthmW > r to kfformation rerruired 10 eom Tete This Styieaule,if rt01 shown above,will be shown In the L}edar811o115: lx r+ V •L .r _N d ttf COMMERCIAL GENERAL LIABILITY COVERAGE PART ?� SCHEDULE O to r O 12 Section U—Who Is An insured is amended to Include O as an insured any slate or governmental agency or = subdivision or polllical subdivision shown in the Schedule,subject to the following provisions: 1. This insurance applies only with respect to opera t Lions performed by you or on your behalf for which the stale or governmental agency or subdivision or political subdivision has Issued a permit or au, 3 Ihorizalion. +r 2. This insurance does not apply to. _ O a.'Badly injury","property damage"or`personal and E advertising injury"arising out of operations performed d for the federal government,slate or municipality;or b.'Boddy injury'or property damage"included within ihe'products•comPleted operations hw"e Q O N R Cf J d I to d Cr CG 2a 12 05 Da M Irtclrrenee S*rviAarn twiirn.ine,236A Pa"1 or i � O N u7 M H H Q a.i C d E t V Packet Pg. 412 EXHIBIT G 2'.d CERTIFICATE OF LIABILITY INSURANCE - °^�`M"'12/4J20i4D°"'Y"'-- �./ THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS vt CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES CD BELOW, THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED O REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. Z IMPORTANT: If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must be endorsed. If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement. A Statement on this certificate does not confer rights to the L certificate holder in lieu of such endorsement(s). N PRODUCER COMM t c I E. CDS Insurance Services SONE (909)S99-7200 ;Ar No,•(909)599-4700 License # OCS8587 ^" s eertilioates@a dainaurance.cwm 2001 E. Financial Way IRmNalgslA�ORONNGCOVERAGE NAICNI to rn Glendora CA 91741 INSURERA-Uhitild Smaialty Ins Cc d INSURED FH II, LLC; FH II GP; INSURERB.Navigators 13paOi,alty Ins. Co, N FH II Homebuilders, Inc; FH II Nu Ventures, INSURERC Kest Ameriam Ins. Co. Q LLC' Frontier Communities 6 Nuco Homes, LLC INSURERD-State Compensation Ins. Fund 8300 Utica Ave.4300 d IN3(IRBRE: Rancho Cucamonga CA 91730 INSURERF: " COVERAGES CERTIFICATE NUMBER-.CL139303281 REVISION NUMBER: d THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO V4410H THIS V CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES,LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS, N iH5R' __.._ Ariv on—_._._.. .. _ . POLICt.EW _�W§0*11D(P..,. _ LTR: TYPE OF INSURANCE POUCYNUMBER IMVfDDryY UNUTS -- ---- GENERAL LM&LITY EACH OCCURRENCE t 2,000,000 X COtMtMERCIAL GENERAL Lw80.RY Pp_,.G]E 70 REN-Et- 5^c , -g. -.-- EXCLUDED (gyp A (CLA)MS�IAOE X❑OCCUR 701316281 +/23/2013 (29/2015 MED EXP(An one permn) L EXCLUDED PERSONAL 8 ADV INJURY S 2,000,000 GENERAL AGGREGATE 6 2,000,000 .GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS-COMPJOP AGG 5 2,000,000 t1 PRO f_ O X pOL)CY .T LOC AUTOMOBILE LIABILITY v t +. 'F LIMIT eacxdaM _,1._90010.0-0 L. Ix ANV AUTO (15) 56190235 IB/6/2011 /6/2018BODILY INJURY(Parpe•sALLOMNED "'�SCHEDULED BODILY tNJURV--racc7denQ SAU705 'AUTOS HIRED AUTOS E X NON-OWNED AMAZE ,: AUTOS ,Pr axiwrs1 r X I UMBRELLA LIAR OCCUR EACH OCCURRENCE 5 5,000,000 EXCESS uAe CLAMS-MALS ( AGGREGATE s--5,000,000 y N3 OED ( RETENTIONS - FdM=790L91OC 0/23/2013 /23/2015 - - 4 WORKERS COMPENSATION AND EMPLOYERTUABILITYY/N _.. i ANY PROPRIETOWPARTNER/EXEE L.EACH ACCIDENT t 1000000 CUTIVE Q Oandid yin NMIMEMBER IXCLUDEm NIA 064126-14 /4/2014 ^/4/2015 EL DIBEAaE-EA EMPLOYES 3.10001000 D (Mandatory in NH) U yes,deacnbe under DESCRIPTION OF OPERATIONS below EL.DISEASE-POLICY LIMIT S 1.ODA 000 V) —_ fl3 d J d) M DESCRIPTION OF OPERATIONS r LOCATIONS f VEHICLES(Altach ACORD 101,Additional Remwke Schedule,V more space M required( •j re: Lease R.L. 2470 APN 0261-791-42 (San Bernardino County) d The Metropolitan Water District of Southern California is named as additional insured on the general liability per form CG 20 12 05 09. Waiver of subrogation applies to the general liability per form CG 24 p 04 10 93. Waiver of subrogation applies to the work comp per attached form 2670. N Ln M H CERTIFICATE HOLDER CANCELLATION Q D SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN The Metropolitan Water District of ACCORDANCE WITH THE POLICY PROVISIONS. +% Southern California = P.O. Box 54153 AUTHORIZED REPRESENTATIVE c Los Angeles, CA 90054-0153 Chuck Swan/KRISTI � .c, ACORD 25(2010105) 01988-2010 ACORD CORPORATION. All rights reserved. INS025(201005)01 The ACORD name and logo are registered marks of ACORD Packet Pg. 413 27.d POLICY NUMBER BT01316281 EXHI ITr C6MMERCIAL GENERAL LIABILITY 0 C G 20 12 OS OS r O THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. Z v ADDITIONAL INSURED - STATE OR GOVERNMENTAL AGENCY y OR SUBDIVISION OR POLITICAL SUBDIVISION - PERMITS OR AUTHORIZATIONS E N This endorsement modifies insurance provided under the following. rn d -ft to to Or Oovanrasenlal Agency Or Gubdlvhrlon Or Pumical$ubdivfsion. Q O PerlAfritMa Contrett � rC Information rea7uirad to complete this Schedule.if not shown above,will be shown in the Declarations W V L 0 L d a+ R COMMERCIAL GENERAL.LIABILITY COVERAGE PART SCHEDULE Y_ •O IZ section II—Who is An Insured is amended to include O as an insured any stale or governmental agency or subdivision or oolilical subdivision shown in the Schedule,subject to the following provisions 1. This insurance applies only with respect to opera• r tions performed by you or on your behalf for which Nie state or governmental agency or subdivbsion or r political subdivision has issued a pgrmil or au• 3 tharizalion. 2. This insurance does not apply to. O a.'BadNy injury`."properly damage"or"personal and E adverlising injury^arising out of operations performed d for the taderal governmenl,slale or municipality;or b.'Bodily injury«or"property damage"included within the"products-completed operations hazard" Q atr iC N J d to Of CG 2012 OS 09 fC lrutlrAACP SP.rviPPR C)fftn Inc Prins Page i of i O r (V M H H Q O a+ C d E t V Packet Pg.414 27.d EXT-111BTC POLICY NUMBER: BT01316281 COMMERCIAL GENERAL LIABILITY CG 24 04 10 93 0 Z THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY, 0 WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US E N T,�s endorsement modifies itl U nce provided under the following; COMMEaCUL GENERAL LIABILITY COVERAGE PART Q 0 SCHEDULE 0 Na P.axsnn or :As per written contract i as As Required by Written Contract d L) (if no entry appears above, informo(ion required to complete this endorsement wirt be shown in the Declarations as applicable to this endorsement.) v, The TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US Condition (Section IV—COMMER- CIAL GENERAL LIABILITY CONDITIONS)is amended by the addition of the following: We waive any right of recovery we may have against the person or organization shown in the Schedule above because of payments we make for Injury or damage arising out of your ongoing operations or'your work"done under a contract with that person or organization and Included in the "products-completed operations hazard". This waiver applies only to the person or organization shown in the Schedule above. o a 0 .r d d r r 3 c a) E d as L Q N t6 d J CD N N O r N 5 Cl) H H Q r C d E t V ai Q CG 24 0410 93 Copyright, Insurance Services Office,Inc,, 1992 Page 1 of 1 ❑ Packet Pg. 415 27.d WAIVLpD8pS§"M(bCVAWT 9064126-14 STATEIll,,L RENEWAi+ EXo FUND PAGE 1 z r HOME OFFICE EFFECTIVE DECEMBER 1, 2014 AT 12.01 A.M. SAN FRANCISCO AND EXPIRING JULY 4, 2015 AT 12.01 A.M. N ALL EFFECTIVE DATES ARE AT 12:01 AM PACIFIC = STANDARD TIME OR THE d TIME INDICATED AT PACIFIC STANDARD TIME vNi d F H II HOMEBUILDERS, INC a 8300 UTICA AVE STE 300 ° RANCHO CUCAMONGA, CA 91730 r c� d rn 0 ANYTHING IN THIS POLICY TO THE CONTRARY NOTWITHSTANDING, IT IS AGREED THAT THE STATE COMPENSATION INSURANCE FUND WAIVES ANY RIGHT OF SUBROGATION AGAINST, c THE METROPOLITAN WATER DISTRICT OF SOUTHE O CL O WHICH MIGHT ARISE BY REASON OF ANY PAYMENT UNDER THIS POLICY IN CONNECTION WITH WORK PERFORMED BY, r F H II HOMEBUILDERS, INC c d E IT IS FURTHER AGREED THAT THE INSURED SHALL MAINTAIN i PAYROLL RECORDS ACCURATELY SEGREGATING THE REMUNERATION OF EMPLOYEES WHILE ENGAGED IN WORK FOR THE ABOVE Q d EMPLOYER. m J IT IS FURTHER AGREED THAT PREMIUM ON THE EARNINGS OF SUCH EMPLOYEES SHALL BE INCREASED BY 03%. y m 0 T N U M H 1- NOTHING IN THIS ENDORSEMENT CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE Q OR EXTEND ANY OF THE TERMS, CONDITIONS, AGREEMENTS, OR LIMITATIONS OF THIS o POLICY OTHER TITAN AS STATED. NOTHING ELSEWHERE IN THIS POLICY SHALL BE 2 HELD TO VARY, ALTER, WAIVE OR LIMIT THE TERMS, CONDITIONS, AGREEMENTS OR 4.; LIMITATIONS OF THIS ENDORSEMENT. d E COUNTERSIGNED AND ISSUED AT SAN FRANCISCO: DECEMBER 4, 2014 2570 v AUTHORIZED REPRESENT IVE PRESIDENT AND CEO SCIF FORM 10217(REV.7-2014) OLD OP 217 Packet Pg.416 27.d A010W STATE FUNDT- -ITC EX"X.- �1 d Or 6 Z U _N r C December 4, 2014 Policy 9064126-14 E ch N d in N CDS INS SVCS a 0 SANDRA NARROQUIN 2001 E FINANCIAL WAX, STE 200 >_ GLENDORA, CA 91741 a a� r U Dear SANDRA NARROQUIN: y D The list below indicates the documents which were recently sent to your client. We have also enclosed copies of the documents to assist you in servicing your client. If you have any questions regarding these documents, please feel free to contact: - 0 CL The State Fund Customer Service Center at (877) 405-4545. w a� a� Document Type: r New Business 3 8 Endorsements _ Bills Renewal Documents d Dividend Summary Cancellation / Rescission Documents a Collection Document Certificate of Insurance d rn a� CDS INS SVCS o SANDRA NARROQUIN N 2001 E FINANCIAL WAY, STE 200 GLENDORA, CA 91741 H a 0 E U 1275 Market Street •San Francisco, CA 94103-1410 a Mailing Address: P.O. Box 420807 . San Francisco, CA 94142-0807 Packet Pg. 417 27.d ENDORSEMENT AGREEMENT BROKER 'COPY ' STATE WAIVER OF SUBROGATION 9064126-14 Cl PUNO RENEWAL rl� AdAi�l1. 'SP O HOME OFFICE Z SAN FRANCISCO PAGE 1 OF 1 •L ALL EFFECTIVE DATES ARE u1 AT 1201 AM PACIFIC EFFECTIVE DECEMBER 1, 2014 AT 12.01 A.M. p STANDARD TIME OR THE AND EXPIRING JULY 4, 2015 AT 12.01 A.M. TIME INDICATED AT PACIFIC STANDARD TIME O E to F H II HOMEBUILDERS, INC (D N N 8300 UTICA AVE STE 300 Q RANCHO CUCAMONGA, CA 91730 ° a� d a•+ V L ANYTHING IN THIS POLICY TO THE CONTRARY NOTWITHSTANDING, p IT IS AGREED THAT THE STATE COMPENSATION INSURANCE FUND WAIVES ANY RIGHT OF SUBROGATION AGAINST, c ns THE METROPOLITAN WATER DISTRICT OF SOUTHE O CL O L WHICH MIGHT ARISE BY REASON OF ANY PAYMENT UNDER THIS POLICY IN CONNECTION WITH WORK PERFORMED BY, t t F H II HOMEBUILDERS, INC 3 c _ d IT IS FURTHER AGREED THAT THE INSURED SHALL MAINTAIN E PAYROLL RECORDS ACCURATELY SEGREGATING THE REMUNERATION ` OF EMPLOYEES WHILE ENGAGED IN WORK FOR THE ABOVE C EMPLOYER. O U) to _ IT IS FURTHER AGREED THAT PREMIUM ON THE EARNINGS OF SUCH EMPLOYEES SHALL BE INCREASED BY 03%. d rn d tY 0 N Ff M H NOTHING IN THIS ENDORSEMENT CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE ~ Q OR EXTEND ANY OF THE TERMS, CONDITIONS, AGREEMENTS, OR LIMITATIONS OF THIS Q POLICY OTHER THAN AS STATED. NOTHING ELSEWHERE IN THIS POLICY SHALL BE HELD TO VARY, ALTER, WAIVE OR LIMIT THE TERMS, CONDITIONS, AGREEMENTS OR LIMITATIONS OF THIS ENDORSEMENT. d COUNTERSIGNED AND ISSUED AT SAN FRANCISCO: DECEMBER 4, 2014 2570 v AUTHORIZED REPRESENT IVE PRESIDENT AND CEO SCIF FORM 10217 (REV.7-2014) OLD OP 217 Packet Pg.418 27.d BROKER COPY 9064126-14 RENEWAL ui SP 0 z -� 11IPU T C �. a+ G O E N N d y N a 0 d r 0 as t5 r L d a+ lC C R a+ O 0. O L a.+ PLEASE KEEP THIS ENDORSEMENT WITH YOUR POLICY y 3 r c a� E a� d L Q N t4 d J d N d O r N Cl) f- f- Q Dear Policyholder- r These endorsements amend and are part of your policy. Please keep them with your documents for future reference. E U f6 If you have any questions concerning these endorsements, Please contact Q your local State Fund office. Packet Pg. 419 This Page Is Left Intentionally Blank 27.e ui 1 RESOLUTION NO.2015-208 6 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY ? OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF c 3 AMENDMENT NO. 3 TO LEASE WITH METROPOLITAN WATER DISTRICT OF o SOUTHERN CALIFORNIA, RELATIVE TO ASSESSMENT DISTRICT NO. 1055 IN 4 THE PINE AVENUE AND REDWOOD STREET AREA,TRACT NO. 17716. 5 WHEREAS, on February 20, 2007, by Resolution No. 2007-046, the Mayor and N 6 a 7 Common Council authorizer) and directed the execution of an acknowledgement of a lease 0 8 between the Metropolitan Water District of Southern California (MWD) and Pine Trails 9 Partners, LLC (Pine Trails), relative to a proposed City Assessment District in the Pine U) 10 Avenue and Redwood Street area, now known as Assessment District No. 1055, in relation 11 to Tentative Tract No. 17716; and 3 12 13 K'HERFAS, on March 19, 2014, Amendment No. 1 to Lease was executed between cCL 0 L 14 MWD and Pine Trails by substituting FH II, LLC as the Lessee, and establishing the term 2 15 of the lease to be from March 1, 2014 through February 28, 2015; and on March 23, 2015, 16 .3 17 Amendment No. 2 to Lease was executed between MWD and FH II, LLC, extending the E a 18 term to August 31, 2015; and m a 19 WHEREAS, the City of San Bernardino is ready to assume landscape maintenance N a� 20 -' responsibilities for Assessment District No. 1055, which includes the area over the MWD 21 owned parcels covered by the lease agreement; and the parties wish to extend the Lease 22 23 for one (1) additional term beginning September 1, 2015 through August 31, 2016. N 24 NOW BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: a 25 0 26 SECTION 1. The City Manager is hereby authorized and directed to execute on 27 behalf of the City, Amendment No. 3 to Lease with MWD by substituting the City of San L 28 Bernardino as the Lessee and establishing the term of the lease to be from September 1, 2015 a Packet Pg. 420 27.e through August 31, 2016, relative to Assessment District No. 1055 in the Pine Avenue and o 1 6 z 2 Redwood Street area, pursuant to the Conditions of Approval for Tentative Tract No. 17716, 3 said Amendment No. 3 to Lease is attached hereto as Exhibit"I" and incorporated herein. o r c 4 SECTION 2. The authorization to execute the above referenced Amendment is N 5 rescinded if the parties to the Agreement fail to execute it within ninety (90) days of the a 6 0 passage of this Resolution. 8 9 111 10 11 � _ 12 o 13 0 14 az 15 w 16 3 _ 17 d 18 a 19 J 20 d N 21 a' 22 0 23 24 a 25 26 27 E 28 Packet Pg. 421 27.e ii 1 40 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF z6 2 AMENDMENT NO. 3 TO LEASE WITH METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA, RELATIVE TO ASSESSMENT DISTRICT NO. 1055 IN r 3 THE PINE AVENUE AND REDWOOD STREET AREA,TRACT NO. 17716. o w 4 E N 5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor N N 6 and Common Council of the City of San Bernardino at a joint regular meeting thereof, held on o 7 the 21"day of September, 2015,by the following vote,to wit: 8 o: 9 Council Members: AYES NAYS ABSTAIN ABSENT L w N 10 MARQUEZ X �— ----- - — o it BARRIOS x 12 VALDIVIA x a 13 0 14 SHORETT X 15 NICKEL x 16 JOHNSON x 3 17 MULVIHILL x d 18 , a 19 U) Gwrge Hanna, C,City Clerk J 20 21 The foregoing resolution is hereby approved this '?� day of September,2015. 22 2 J 23 R. CAREY LAVIS,Mayor City of San Bernardino 24 25 Approved as to form: o GARY D. SAENZ,City Attorney 26 27 By E 28 " a Packet Pg. 422 27.e 2015-208 0 1 c Z 2 EXHIBIT N 3 -Amendment No. 3 to Lease 4 5 N 6 [See attached] a 0 7 r 8 o_ 9 10 11 12 r 0 13 0 14 15 16 3 r 17 E 18 a 19 °' H R d 20 J 21 5 w 22 0 23 to 24 a 25 26 C 27 E L 28 Packet Pg. 423 27.e 2015-208 AMENDMENT NO.3 TO LEASE 0 R.L.No.2470 z Foothill Feeder—Rialto Pipeline MWD Parcel No. 1606-30-5 y APN 0261-731-42 0 WSO La Verne Team E a E d Lease R.L. 2470 between THE METROPOLITAN WATER DISTRICT OF y SOUTHERN CALIFORNIA and FH IT, LLC is hereby amended by substituting CITY OF SAN a BERNARDINO as Lessee, and by deleting in its entirety Paragraphs 2 & 4 thereof, and 0 substituting therefor the following: 2. TERM. The term of this Lease shall be year-to-year beginning on September 1, 2015 and terminating on August 31, 2016. This Lease may be terminated in accordance with the provisions of Paragraph 9 herein below. o 4. RENT.The initial rent shall be$2,594 annually payable in advance. Except as herein amended, all terms and conditions of Lease R.L. 2470 shall 0 continue in full force and effect. a 0 Date Executed: !:f � Lessor's Mailing Address: THE METROPOLITAN WATER DISTRICT y Post Office Box 54153 OF SOUTHERN CALIFORNIA y Los Angeles,CA 90054 3 Attention:Real Property Development Jeffrey Kightlinger and Management Group General Manager Telephone(213)217-7750 Email: RealEstateServices@mwdh2o.com a d y l0 d � J — a d C4 Property Devetopnlent �� X and Management Group o N Lessor v a 0 [Signatures continue on next page] E a Packet Pg.424 27.e ` 2015-208 0 Amendment No. 3 to Lease -2- d R.L. 2470 Z r t + 0 Date Executed; g r�e�P�r (��D�� E N Lessee's Mailing Address: CITY OF SAN BERNARDINO 4) 300 N.D Street, 3`d Floor a San Bernardino, CA 92418 Attn:Real Property Section d Telephone(909)384-5226 Email: Sandoval_ry@sbcity.orgw By. 2N ►S Alle arker,City Manager N 0 Lessee r 0 a ATTEST: o r George Hanna,Citf Clerk 3 r c d E a) a� L Approved as to form: Q GARY D. SAENZ,City Attorney N as ' J By: -a _ d � N d Ix O r N H F Q r C E t V Packet Pg. 425 27.f Projected Rent Performance Norman Johnson Park AD 1055 0 Projected Rent Performance assuming annual CPI Projected Rent Performance assuming 11-year growth of 2.119% growth cycle z 2005 193 3 77j- 2005 1 195.3 C 2006 201.6 3.226%; 2006 201.6 3.226% y 2007 207.342 $ 2,325.00 2.841111% 2007 207.342 $ 2,325.00 2.848% Q 2006 215.303 $ 2,325.00 3.840% 2008 215.303 $ 2,325.00 3.840% 2009 214.537 $ 2,441.25 -0.356% 2009 214.537 $ 2,441.25 -0.3S65, i 2010 218.056 $ 2,441.25 1.640% 2010 218.056 $ 2,441.25 1.640% i 2011 -(} 224.939 $ 2,563.31 3.157% 2011 Y 224.939 $ 2,563.31 3.157% N 2012 ! 229.594_ $ 2,563.31 2.069% 2012 f 229.594 $ 2,563.31 2.059% y 2013 T 232.957 $ 2,691.48 1.465% €, 2013 232.957 $ 2,691.48 1.465% U) 2014 236.736 $ 2,691 AS 1.622% 2014 236.736 $ 2,691.48 1.622% Q 2015 ...i 237.017 5 2,818.29 $ 2,594.00 0.119% _2015 237.017 5 2,818.29 $ 2,594.00 0.119% 0 2016 ! 240.007 $ 2,818.29 $ 2,594.00 $ 2,700.00 1.262% 2016 240.007 $ 2,818.29 $ 2,594.00 $ 2,700.00 1.262% 2017 245.093 $ 2,857.23 $ 2,723.70 $ 2,734.00 2.119% 2017 247.749 $ 2,857.23 $ 2,723.70 $ 2,734.00 3.226% d 2018 250.287 $ 2,857.23 $ 2,723.70 $ 2,792.00 2.119% 2018 254.805 $ 2,857.23 $ 2,723.70 $ 2,822.00 2.848% . 2019 255.591 $ 2,979.61 $ 2,859.89 5 2,851.00 2.119% 2019 264.588 $ 3,000.09 $ 2,859.89 $ 2,902.00 3.840% 2020 261.007 $ 2,979.61 $ 2,859.89 $ 2,91LDO 2.119% 2020 263.647 $ 3,000.09 $ 2,859.89 $ 3,013.00 -0.356% 4) 2021 266.538 $ 3,107.23 $ 3,002.88 $ 2,973.00 2.119% F 2021 267.972 $ 3,138.65 $ 3,002.88 $ 3,013.00 1.640% r.a 2022 272.186 $ 3,107.23 $ 3,002.88 $ 3,036.00 2.119% 2022 276.431 $ 3,138.65 $ 3,002.68 $ 3,062.00 3.157% V 2023 277.954 $ 3,240.31 $ 3,153.02 $ 3,100.00 2.119% 20?'. 282.152 $ 3,290.65 $ 3,153.02 $ 3,159.00 2.069% 2024 283.844 $ 3,240.31 $ 3,153.02 $ 3,166.00 2.119% f 2024 286.285 5 3,290.85 $ 3,153.02 $ 3,224.00 1.465% N 2025 289.859 $ 3,379.10 $ 3,310.67 $ 3,233.00 2.119% 2025 290.929 5 3,408.15 $ 3,310.67 $ 3,271.00 1.622% 2026 296.001 $ 3,379.10 5 3,310.67 $ 3,302.00 2.119% {'{ 2026 291.274 $ 3,408.15 $ 3,310.67 $ 3,324.00 0.119% 16- 2027 2027 302.273 5 3,523.82 $ 3,476.20 $ 3,372.00 2.119% t 2027 294.948 $ 3,46755 $ 3,476.20 $ 3,328.00 1.262% 12028 308.678 $ 3,523.82 $ 3,476.20 $ 3,443.00 2.119% tt 2028 304.462 $ 3,467.55 $ 3,476.20 $ 3,370.00 3.226% 2029 315.219 $ 3,674.74 $ 3,650.01 $ 3,516.00 2.119% 2029 313.134 $ 3,62455 $ 3,650.01 $ 3,479.00 2.848% 2030 321.898 $ 3,674.74 S 3,650.01 $ 3,S9L00 2.119% 2030 3Z5.157 $ 3,524.55 $ 3,650.01 $ 3,57&DO 3.840% L f0 2031 328.719 $ 3,832.12 $ 3,832.51 $ 3,667.00 2.119 203: 324.000 $ 3,805.78 $ 3,832.51 $ 3,715.00 -0.356% 2032 335.685 $ 3,832.12 $ 3,832.51 $ 3,745.00 2.119% 2032 329.314 $ 3,805.78 $ 3,832.51 $ 3,715.00 1.640% 0 2(;'7 342.798 $ 3,996.25 $ 4,024.14 $ 3,824.00 2.119". 2033 339.709 $ 3,920.40 $ 4,024.14 $ 3,776.00 3.157% 0- 2034 350.062 $ 3,996.25 $ 4,024.14 $ 3,905.00 2.119% 2034 346.739 $ 3,920.40 $ 4,024.14 $ 3,895.00 2.069% i0 2035 357.480 $ 4,167.40 $ 4,225.35 $ 3,988.00 2.119% 2035 351.818 $ 4,116.42 $ 4,225.35 $ 3,976.00 1.465% 4) 2036 365.055 $ 4,167.40 $ 4,225.35 $ 4,073.00 2.119% 2036 357.525 5 4,116.42 $ 4,225.35 5 4,034.00 1.622% 2037 372.791 $ 4,345,89 $ 4,436.62 $ 4,159.00 2AM- tt 2037 357.949 $ 4,256.25 $ 4,436.62 $ 4,099.00 0.119% 0) 2038 380.690 $ 4,345.89 $ 4,436.62 $ 4,247.OD 2.119% f 2038 362.465 S 4,256.25 $ 4,436.62 $ 4,104.00 1.262% L 2039 388.757 $ 4,532.02 $ 4,658.45 $ 4,337.00 2.119% IIII 20314 374.157 $ 4,315.06 $ 4,658.45 $ 4,156.00 3.226% 2040 396.995 $ 4,532.02 $ 4,658.45 $ 4,429.00 2.119% 2040 384.814 $ 4,315.06 $ 4,658.45 $ 4,290.00 2.848% 20" 405.407 $ 4,726.13 $ 4,891.37 $ 4,523.00 2.119% 2041 399.589 $ 4,530.81 5 4,891.37 $ 4,412.00 3.840% 3 2042 413.998 $ 4,726.13 $ 4,891.37 $ 4,619.00 2.119% 2042 398.167 $ 4,530.81 $ 4,891.37 $ 4,581.00 -0.356% 2043 422.771 $ 4,928.55 $ 5,135.94 $ 4,717.00 2.119% 2043 404.698 $ 4,740.08 $ 5,135.94 $ 4,581.00 1.640% 0) 2044 431.730 $ 4,928.55 5 5,135.94 $ 4,817.00 2.119% 2044 417.472 $ 4,740.08 $ 5,135.94 $ 4,656.00 3.157% E 2045 440.878 $ 5,139.64 $ 5,392.74 $ 4,919.00 2.119% 2045 426.111 $ 4,969.90 $ 5,392.74 $ 4,803.DO 2.069% Q) 2046 450.220 $ 5,139.64 $ 5,392.74 $ 5,023.00 2.119% 2046 432.353 $ 4,969.90 $ 5,392.74 $ 4,902.00 1.465% 2047 459.760 $ 5,359.76 $ 5,662.38 $ 5,129.00 2.119% 2047 439.367 $ 5,147.06 $ 5,662.38 $ 4,974.00 1.6221A Q 2048 469.502 $ 5,359.76 $ 5,662.38 $ 5,238.00 2.119% 2048 439.889 $ 5,147.06 $ 5,662.38 $ 5,055.00 0.119% d 2049 479.451 $ 5,589.31 $ 5,945.50 $ 5,349.00 2.119% 2049 44SA38 $ 5,236.77 $ 5,842.66 $ 5,061.00 1.262% N 2050 489.611 $ 5,58931 $ S,94S.50 $ 5.462.00 2.119% 2050 459.807 $ S,236.77 $ 5,842.66 $ 5,125.00 3.226% to Sum 2016-2050 $141,576.51 $143056.74 $136,890.00 C Sum 2016-2060 $135,469.49 $143,151.06 $134,889.00 J 2D16 PV @ 1.1%rate $115,560.73 $116561.50 $111,713.50 2016 PV @ 1.1%rate 5 113,279.05 $116,418.93 $110,319.59 N Actual Annual Average of the United States Consumer Price Index-All Items(CPI) The table on the left: j data is known for years 2005 thru 2016. The annualized growth over this 11 year Assumes a constant growth of 2.119%for the years 2017 thru 2050 and models the N period is 2.119%. adjusted rent accordingly. O Original Lease: The table on the right: Initial Rent$2325 in 2007,Rent Adjusted in odd years by the ratio of the CPI from Assumes that the CPI will fluctuate from year to year,increasing and possibly N U) the previous year to the CPI In the Base Index Year 2005 multiplied by the Initial decreasing,by cycling the growth rates observed in the first 11 years. Rent,not withstanding these calculations rent will never fall below Initial Rent nor shall it Increase more than 5%over the previous year's rent. At the bottom of each table is the sum of rents due under each model for the years 2016 thru 2050 inclusive. Q Amendment No 3 Lease: Q Initial Rent$2594 in 2015,Rent Adjusted in odd years by the ratio of the CPI from In the event of a prolonged depression in the CPI the original rent formula would the previous year to the CPI in the Base Index Year 2005 multiplied by the Initial result in lower rent than the revised one,however It is not anticipated that the CPI Rent,not withstanding these calculations rent will never fall below Initial Rent nor will experiance such a depression.The last time the CPI dropped was in 2009,and shall it increase more than 5%over the previous year's rent. the time before that was in 1955. C 0) Revised Lease: E Initial Rent$2700 in 2016,Rent Adjusted every year by the ratio of the CPI of the V two previous years multiplied by the previous year's rent,not withstanding these 0 calculations rent will never fall below the previous year's rent nor shall R increase $. more than 4%ever the previous year's rent. Q Packet Pg. 426 1 This Page Is Left Intentionally Blank r 27.g 1 RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN Z 3 BERNARDINO, CALIFORNIA, AUTHORIZING AND DIRECTING THE 2 EXECUTION OF A REVISED LEASE AGREEMENT WITH THE METROPOLITAN n 4 WATER DISTRICT OF SOUTHERN CALIFORNIA, RELATIVE TO ASSESSMENT DISTRICT NO. 1055 IN THE PINE AVENUE AND REDWOOD STREET AREA, 5 TRACT NO. 17716 y a 6WHEREAS, on February 20, 2007, by Resolution No. 2007-046, the Mayor and City a 7 0 Council authorized and directed the execution of an acknowledgement of a lease between the 8 9 Metropolitan Water District of Southern California (MWD) and Pine Trails Partners, LLC 0: 10 (Pine Trails), relative to a proposed City Assessment District in the Pine Avenue and y 0 L 11 Redwood Street area, now known as Assessment District No. 1055 (AD 1055), in relation to 12 Tentative Tract No. 17716; and a 13 WHEREAS, on March 19, 2014, Amendment No. 1 to Lease was executed between o 14 MWD and Pine Trails by substituting FH II, LLC as the Lessee and establishing the term of 15 16 the lease to be from March 1, 2014 through February 28, 2015; and on March 23, 2015, c 17 Amendment No. 2 to Lease was executed between MWD and FH II, LLC, extending the term as a 18 to August 31, 2015; and a 19 WHEREAS, on August 27, 2015, the City of San Bernardino assumed landscape 20 maintenance responsibilities for AD 1055, which includes the area over the MWD owned y 21 parcels covered by the lease agreement; and 22 23 WHEREAS, on September 21, 2015, by Resolution No. 2015-208, the Mayor and 24 City Council authorized and directed the execution of Amendment No. 3 to Lease with MWD Q 25 ° by substituting the City of San Bernardino as the Lessee and establishing the term of the lease 26 Y to begin September 1, 2015 and terminate August 31, 2016; and 27 R 28 Q 1 Packet Pg.427 27.9 WHEREAS, both parties desire for the Lease to continue year-to-year and that the 1 0 2 chain of amendments to said Lease be closed in the interest of clarity of purpose; z NOW THEREFOR, BE IT RESOLVED BY THE MAYOR AND CITY 3 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: o 4 $ SECTION 1. The Mayor and City Council of the City of San Bernardino hereby N authorize and direct the City Manager to execute the revised Lease with MWD, attached N 6 a 7 hereto and incorporated herein as Exhibit "A", relative to AD 1055 in the Pine Avenue and ° a 8 Redwood Street area. `0 a� 9 � SECTION 2. The Mayor and City Council of the City of San Bernardino hereby 10 0 authorize and direct the Director of Finance to amend the FY 2017/2018 budget for AD 1055 11 12 by allocating an additional $4,309 to account 254-150-6048*5181 from the unallocated funds c 13 collected within AD 1055 located within the 254 fund. CL 0 14 SECTION 3. The authorization to execute the above referenced Lease is rescinded if 15 the parties to the Agreement fail to execute it with in sixty (60) days of the passage of this w 16 .3 Resolution. c 17 E 18 a 19 \\\ N 20 \\1 d 21 \\\ 22 \\\ N 23 24 \\\ a 25 1\\ 26 \\\ Y 27 28 \\\ 2 Packet Pg. 428 27.g RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN 1 BERNARDINO, CALIFORNIA, AUTHORIZING AND DIRECTING THE o 2 EXECUTION OF A REVISED LEASE AGREEMENT WITH THE METROPOLITAN c WATER DISTRICT OF SOUTHERN CALIFORNIA, RELATIVE TO ASSESSMENT ? 3 DISTRICT NO. 1055 IN THE PINE AVENUE AND REDWOOD STREET AREA, TRACT NO. 17716 N 4 5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor N U) CD 6 and City Council of the City of San Bernardino ata _ a 7 0 meeting thereof, held on the day of_ , 2017, by the following vote, 8 to wit: 9 10 Council Members: AYES NAYS ABSTAIN ABSENT c 11 MARQUEZ 3 12 BARRIOS R 13 a VALDIVIA o 14 m 15 SHORETT 16 NICKEL 17 RICHARD d 18 MULVIHILL __ a 19 m 20 ' 21 Georgeann Hanna, CMC, City Clerk m The foregoing Resolution is hereby approved this day of , 2017. 22 0 23 24 R. Carey Davis,Mayor a 25 City of San Bernardino ° 3 26 Approved as to form: 27 Gary D. Saenz, City Attorney r 28 By: _ a 3 Packet Pg. 429 27.g LEASE o r R.L. 2470 Z Foothill Feeder Rialto Pipeline MWD Parcel No. 1606-30-5 APN 0261-731-42 Station Nos. 4083+50 to 4097+00 m WSO La Verne Team E m n, This Lease is made by and between THE METROPOLITAN WATER c DISTRICT OF SOUTHERN CALIFORNIA, a public corporation, hereinafter referred to as 0 Lessor, and CITY OF SAN BERNARDINO hereinafter referred to as Lessee. m 1. DESCRIPTION OF PROPERTY. Lessor hereby leases to Lessee,on the terms hereinafter set forth,that certain property hereinafter referred to as Property. Said Property is described in Exhibit "A" and shown on Exhibit"B" attached hereto and incorporated herein by o reference. m 2. TERM. The term of this Lease shall be from year-to-year beginning 3 October 1, 2016. This Lease may be terminated in accordance with the provisions of Paragraph 9 herein below. Q. 0 3. USE. Property shall be used for passive greenbelt purposes only. Recreational improvements,organized sporting activities,and equestrian activities are specifically not r permitted,in addition to any other uses,which may be considered,at Lessor's sole discretion, s deleterious to its current or future operations. Lessee's use of Property shall comply with all 3 applicable laws,ordinances,and regulations. Property shall not be used to fulfill requirements = for setback,park or open-space dedications or in-lieu fees or any exactions requisite for development. This Lease is subject to Lessor's paramount right to use the Property for water m Conveyance purposes, including but not limited to long-term operation and maintenance of its a Foothill Feeder-Rialto Pipeline. Lessor reserves the right to use the Property for any and all m future uses necessary for Lessor's water conveyance purposes, including but not limited to m maintenance,repair,and replacement of the existing Pipeline and appurtenance facilities,and/or installation of additional subsurface or surface infrastructure. Lessor's rights to use the Property for water conveyance purposes,as described in this paragraph,are collectively referred to as the m "Paramount Right." Lessor is not responsible for repair or replacement of Lessee's r improvements in the event Lessor exercises its Paramount Right. c r N 4. RENT. The initial rent shall be$2,700 payable in advance of the next rental m term. a 5. DETERMINATION OF FUTURE RENT. The annual rent shall be adjusted by multiplying the prior year's rent by a FACTOR each year,to be increased on September 1 st of each year. The adjusted rent shall be rounded to the nearest dollar. m E L e� Packet Pg.430 Lease R.L.2470 -2- ui 0 The FACTOR shall be the ratio of the Annual Average of the United States zd Consumer Price Index-All Items for the year one year prior to the current year to the Annual Average of the United States Consumer Price Index-All Items for the year two years prior to r the current year as reported by the United States, Department of Labor,Bureau of Labor 0 Statistics under the Series ID "CUUROOOOSAO." _ d E The calculation to arrive at the new Rent is as follows: y d N NJ CPI(current year—i) _ a - FACTORcurrentyear0 CPI(current year-2) > FACTOR x RENT RENT `-° current year (current year—i) = current year � The calculation to arrive at the Rent due on September 1',2017 is as follows: r CPI2016 _ 240.007 _ - 1.0126 = FACTOR2017 CPI2015 237.017 R FACTORZ017 x RENT2oi6 = 1.0126 x 2700 = 2734 = RENT2017 r .o In the event that the U.S. Department of Labor,Bureau of Labor Statistics, shall c cease to report the series titled"All items in U.S. city average, all urban consumers,not seasonally adjusted,"also known as Series ID"CUUROOOOSAO,"used in the above ratio, such other index as may be substituted in place thereof by the appropriate governmental agency of the United States then having the responsibility for such compilation and reports of Consumer Price Indices,subject to any necessary adjustments of such Index appropriate to its continued 3 r use in determining the ration set forth above,shall be used. E d In the event that such substitute index is not provided, or proves unsuitable for determining the above ratio,then such other index appropriate to use, as mutually agreed upon a by the parties hereto, shall be used. d J Notwithstanding the above calculations,the annual FACTOR shall not exceed 1.04 nor shall it be less than 1.00. N d 6. RENTAL PAYMENTS. All rental payments shall be made payable to The Metropolitan Water District of Southern California and mailed to Post Office Box 54153,Los N Angeles,California 90054-0153,Attention: Treasurer,with Lease R.L. 2470 noted on the check and on the face of the envelope. a 7. LATE PAYMENT CHARGES. Lessee hereby acknowledges that late payment 3 by Lessee to Lessor of rent and other sums due hereunder will cause Lessor to incur costs not contemplated by this Lease,the exact amount of which will be extremely difficult to ascertain. Such costs include,but are not limited to,processing and accounting charges. Accordingly,if any installment of rent or any other sum due from Lessee shall not be received by Lessor r a Packet Pg.431 27.g Lease R.L. 2470 -3- 0 T within 20 days after such amount shall be due, Lessee shall pay to Lessor a late charge equal to z° ten percent(10%)of such overdue amount. In no event shall the late charge exceed the z maximum allowable by law. The parties hereby agree that such late charge will incur by reason of late payment by Lessee. Acceptance of such late charge by Lessor shall in no event o constitute a waiver of Lessee's default with respect to such overdue amount,nor prevent Lessor = from exercising any of the other rights and remedies granted hereunder. E y 8. RETURNED CHECK CHARGE. Lessee shallpay to Lessor a fee of$100 for y any checks returned,plus,Lessee must pay to Lessor any and all other fees incurred with such a return. If Lessee has two returned checks within any 12-month period, Lessor shall not accept ° personal checks for any current or future payments due under this Lease. In this event, r acceptable payment shall be in the form of cashier's check, money order,or cash delivered in person to Lessor's Treasurer located at 700 North Alameda Street, Los Angeles,CA 90012. r 9. TERMINATION. This Lease may be terminated at any time by Lessor or Lessee upon 180 days' prior written notice. Notice is to be deemed given upon the mailing thereof,postage prepaid,to the recipient at its address set forth below. c In the event the Lease is terminated between the anniversary dates in accordance c with the provisions of this clause,there shall be no pro rata refund of any rent paid in advance o L for the remaining term. Violation of any term, covenant, condition, or provision contained herein shall r be cause for termination of the Lease, unless corrected within ten days after Lessor's written r request to do so. 3 r c 4) 10. LOAD LIMITATION. If Lessee plans to use any equipment or engage in any E activity on Property which will impose loads greater than AASHTO H-20, Lessee shall submit the specifications of such equipment for review and written approval by Lessor five working a days prior to its use. d 11. IMPROVEMENTS. No structures or improvements shall be constructed or maintained on the Property without Lessor's written consent first had and obtained. y 12. REMOVAL OF IMPROVEMENTS. All structures and/or other improvements placed on Property by Lessee shall be the personal property of Lessee and shall be removed by Lessee from Property by the last day of the Lease;provided, further, Lessor may keep,or dispose of at Lessee's expense, any real or personal property not so removed. 13. VACATING THE PROPERTY. At the expiration of the term, or at any sooner o termination of this Lease, Lessee shall quit and surrender possession of Property and its appurtenances to Lessor in as good order and condition as Property was delivered to Lessee, reasonable wear and tear and damage by the elements excepted. t Packet Pg. 432 27.g Lease R.L. 2470 -4- 0 14. MAINTENANCE. Lessee shall, at its sole cost and expense, keep Property free z° of noxious weeds,trash, and debris and shall comply with all applicable laws and regulations concerning the use of Property. r 0 15. HAZARDOUS SUBSTANCES. For purposes of this Lease,the term = "Hazardous Substance"means: (a) any substance,product,waste,or other material of any nature whatsoever which is or becomes listed,regulated,or addressed pursuant to the N Comprehensive Environmental Response,Compensation, and Liability Act(CERCLA),42 y United States Code Section 9601 et seq.; the Resources Conservation and Recovery Act,42 Q United States Code Section 6901 et seq.; the Hazardous Materials Transportation ° CD Authorization Act,49 United States Code Section 5101, et seq.; the Clean Water Act,33 United States Code Section 1251, et seq.; the Toxic Substances Control Act, 15 United States Code Section 2601 et seq.; the California Hazardous Waste Control Act, Health and Safety Code Section 25100 et seq.; the California Hazardous Substance Account Act,Health and Safety Code Section 25330.2 et seq.; the California Safe Drinking Water and Toxic N Enforcement Act,Health and Safety Code Section 25249.5 et seq.; California Health and Safety Code Section 25280 et seq. (Underground Storage of Hazardous Substances); the 2 California Hazardous Waste Management Act,Health and Safety Code Section 25170 et seq.; California Health and Safety Code Section 25501 et seq. (Hazardous Materials Release Response Plans and Inventory);or the California Porter-Cologne Water Quality Control Act, c Water Code Section 13000 et seq., all as amended or any other federal,state, or local statute, o law, ordinance,resolution, code,rule,regulation,order or decree regulating,relating to, or imposing liability or standards of conduct concerning any Hazardous Substance,now or at any time hereafter in effect; (b)any substance,product,waste or other material of any nature r whatsoever which may give rise to liability under any of the above statutes or under any r statutory or common law theory based on negligence,trespass,intentional tort,nuisance or 3 strict liability or under any reported decisions of a state or federal court; (c)petroleum or crude oil other than petroleum and petroleum products which are contained within regularly operated E motor vehicles; and(d)asbestos. Q a. Lessor warrants and represents that as of the date hereof there are no N Hazardous Substances in or about Property and that Property and improvements J thereon do not violate any applicable Federal, State or local statutes,ordinances, regulations, rules or other requirements, and that there is not presently pending any 2 proceeding before any Federal, State or local tribunal or agency,the outcome of which would diminish or preclude Lessee's use of Property as permitted under the terms of this Lease. Except as so provided, Lessor makes no warranty or representation N whatsoever concerning Property, including without limitation,the condition, fitness or Y� utility for any purpose thereof, any improvements thereto or personal property located thereon, or compliance thereof with applicable laws,ordinances or governmental a regulations; and the Lessee's right to use Property is strictly on an "as is,"basis with all o faults; and Lessor hereby disclaims all other warranties whatsoever, express or implied, the condition of the soil(or water), geology, and any warranty of merchantability or r habitability or fitness for a particular purpose. s U f6 Q Packet Pg. 433 27.g Lease R.L. 2470 -5- 0 T b. Except as otherwise specifically permitted under the terms of this Lease, z° Lessee shall not use,create, store or allow any Hazardous Substances on Property. �. Fuel and.other Hazardous Substances stored in a motor vehicle for the exclusive operation of such vehicle and storage batteries used for emergency power are excepted. o c C. In no case shall Lessee cause or allow the deposit or disposal of any such Hazardous Substances on Property. n as N d. No underground storage tanks shall be installed on Property. a 0 e. Lessor or its officers, employees, contractors, or agents shall at all times have the right to go upon and inspect Property and the operations conducted thereon to assure compliance with the requirements herein stated. This inspection may include taking samples for chemical analysis of substances and materials present and/or testing soils on Property and taking photographs. v, 0 f. Lessee shall, within a reasonable time, either prior to the release by Lessee or following the discovery by Lessee of the presence of,or believed presence of, a Hazardous Substance as defined herein, give written notice to Lessor in the event that Lessee knows or has reasonable cause to believe that any release of a Hazardous o Substance has come or will come to be located on or beneath the subject Property. The c failure to disclose in a timely manner the release of either a material amount of Hazardous Substance or an amount which is required to be reported to a state or local agency pursuant to law(e.g., California's Hazardous Materials Storage and Emergency r Response Act, Health and Safety Code Section 25550 et seq.)may subject Lessee to a r default under this Lease in addition to actual damages and other remedies provided by 3 law. Lessee shall immediately clean up and completely remove all Hazardous Substances placed by Lessee on Property,in a manner that is in all respects safe and in E accordance with all applicable laws,rules and regulations. a g. Lessee shall disclose to Lessor the specific information regarding N Lessee's disposal of any Hazardous Substances placed on Property by Lessee and a provide written documentation of its safe and legal disposal. N h. Breach of any of these covenants,terms,and conditions shall give Lessor the authority to immediately terminate this Lease and/or to shut down Lessee's operations thereon,pending rectification of the breach, in which case, Lessee will continue to be liable under this Lease to remove, and mitigate all Hazardous Substances placed by Lessee on Property. Lessee shall be responsible for, and bear the entire cost of removal and disposal of all Hazardous Substances introduced to the a Property by Lessee during Lessee's period of use and possession of Property. Lessor o may pass through to Lessee any and all costs of removal and mitigation of Hazardous Substances incurred by Lessor as a result of Lessee's activities on Property. Notwithstanding the foregoing, Lessee shall be responsible for any removal mitigation or decontamination, on or off Property,necessitated by the presence of such Hazardous r U Packet Pg.434 ar�rrrre 27.g Lease R.L. 2470 -6- 0 Substances placed on Property by Lessee. Upon termination of this Lease, Lessee is Zo required, in accordance with all laws, to remove from Property any equipment or improvements placed on Property by Lessee that could be contaminated by Hazardous Substances. 0 Y i. Lessee shall defend,indemnify and hold Lessor and its officers, employees, contractors or agents harmless from any claims, liability, injury,damage, y costs,or expenses (including, without limitation,the cost of attorneys' fees)arising as a N result of the presence or use of any Hazardous Substances caused to be placed by the Q Lessee on Property during the term of this Lease. The foregoing indemnity is intended ° to operate as an agreement pursuant to Section 107, subdivision(e)of CERCLA,42 United States Code Section 9607, subdivision(e), and to California Health and Safety Code Section 25364,to insure,protect, hold harmless and indemnify Lessor from any liability created by the Lessee pursuant to such sections. r I HAVE READ AND UNDERSTAND PARAGRAPH 15 HAZARDOUS SUBSTANCES. 61 Lessee's Initials c Y _ 'o 0. 0 Y C� L 16. ACCESS. Lessee shall provide and maintain uninterrupted vehicular Y access in and across Property to Lessor and its employees, agents and contractors. If Y applicable, Lessee shall provide a means for Lessor to place its locks on gates. 3 Y d 17. ENTRY BY OWNER. Lessee shall permit Lessor to enter upon Property at aEi any reasonable time for the inspection thereof, or at any time in connection with any work, which may be required thereon, and Lessor shall not be liable for any damage to Lessee's Q personal property in the course thereof. U) M CD 18. PREVIOUS LEASES. In the event there is any existing lease between Lessee v and Lessor(or its predecessor-in-interest)covering Property, it is agreed and understood that v this Lease shall cancel, supersede and terminate said prior lease as of the effective date of this Lease. 0 19, ASSIGNMENT OR SUBLETTING. Lessee shall not assign this Lease, `V nor sublet Property, without the prior written consent of Lessor, and a consent by Lessor to one assignment shall not be deemed to be a consent to any subsequent a assignment or subletting. o Any assignment or subletting without the written consent of Lessor shall be void and shall, at the option of Lessor, terminate this Lease. E s a Packet Pg. 435 27.g Lease R.L. 2470 -7- C1 20. TAXES. The possessory property interest created by this Lease may be z6 subject to property taxation,and Lessee may be subject to the payment of property taxes levied on such interest by the County. Lessee is required to pay any such tax directly to the County o Y c 21. MECHANICS' LIENS. Lessee shall keep Property free from any liens arising out of any work performed,material furnished,or obligations incurred by y Lessee, or any tenant or subtenant thereof. 22. WAIVER The waiver by Lessor or Lessee of any breach of any term, ° covenant,condition or provision,hereinafter referred to as Terms,contained herein, shall not be deemed to be a waiver of such Terms of any subsequent breach of the same or any other Terms contained herein. The subsequent acceptance of rent by Lessor shall not be deemed to be a waiver of any preceding breach by Lessee of any Terms of this Lease, other than the failure of Lessee to pay the particular rental so accepted,regardless of Lessor's knowledge of such preceding breach at the time of acceptance of such rent. a� Y 23. ATTORNEYS' FEES. The prevailing party in any action brought by either party hereto, based on any claim arising under this Lcasc, and shall be entitled to reasonable attorneys' and/or consultants' fees. r 0 a 0 24. LIABILITY INSURANCE. Lessee has furnished Lessor with a letter evidencing the establishment of its self-insurance program, attached hereto as Exhibit "C." This program shall remain in full force and effect during the term of this Lease. r Y 25. ASSUMPTION OF RISK AND INDEMNITY. Lessee shall defend and 3 indemnify Lessor and its directors, officers, and employees(collectively"Indemnified Parties") from and against all third party claims,actions, suits, demands,damages, obligations,losses, E settlements,judgments,costs and expenses (including without limitation reasonable attorneys' L fees and costs) ("Claims")which arise out of or relate to(1)death or bodily injury or(2)loss Q of or damage to real property resulting from any negligent act or willful misconduct of Lessee y except to the extent that such Claims result from, in whole or in part,the negligence,unlawful J or wrongful acts of the Indemnified Parties or any other person acting in concert with them. An -a Indemnified Party shall promptly notify Lessee of any actual or prospective Claim for which v indemnification is sought. In the event that any third party Claim is made, Lessee shall have the right and option to undertake and control such defense of such action with counsel of its choice, including the City Attorney's Office, and to settle such claims. N 26. AMENDMENTS. The provisions of this Lease may be amended by mutual written consent of the parties hereto. Q 0 27. SECURITY DEPOSIT. Lessee shall deposit with Lessor$2,700 as a guarantee for faithful performance of the conditions of this Lease. Lessor may use such amounts as are Y reasonably necessary to remedy Lessee's default; in the payment of rent,to repair damages caused by Lessee,to clean the premises, or to replace personal property or appurtenances E Packet Pg. 436 27.g Lease R.L. 2470 -$- 0 exclusive of ordinary wear and tear, upon termination of the Lease. No later than two weeks z° after Lessee has vacated the premises, Lessor shall furnish Lessee with an itemized written statement of the basis for, and the amount of, any security received and the disposition of the security and shall return any remaining portion of the security to Lessee. o r c 28. NO RELOCATION ASSISTANCE. Lessee acknowledges that Lessee is not entitled to relocation assistance or any other benefits under the Uniform Relocation Assistance N Act or any other applicable provision of law upon termination of this Lease. U) a 29. This paragraph intentionally left blank ° w a� 30. TIME. Time is of the essence of this Lease. a� 31. NOTICES. All notices,certifications of insurance, and or demands required or permitted to be given to Lessor hereunder shall conspicuously bear the legend "NOTICE tn UNDER FACILITY LEASE R.L. 2470"and Lessee's identification file number,code,or ID on the notice itself and on the envelope containing the notice, shall,until contrary instructions are given to Lessee in writing,be effectively given to Lessor when delivered simultaneously by hand or mailed by registered or certified mail,return receipt requested, to Lessor,Attention: Real Property Group, The Metropolitan Water District of Southern California, P.O.Box 54153, o Los Angeles, California 90054-0153. o d 32. This paragraph intentionally left blank a� s 33. This Paragraph intentionally left blank w 34. This Paragraph intentionally left blank E 35. SIGNS. Lessee shall not issue, sell, or grant any privileges for the erection of signs or advertisements upon the Property, including any fences thereof,but all such rights and Q privileges are reserved to Lessor with full power to enter into leases and authorize entry upon y the Property in respect to the same,provided that Lessor does not reduce the tillable acreage of J Lessee. d N 36. COMPLIANCE WITH LAW. Lessee shall observe and comply with all rules, regulations, and laws now in effect,or which may be enacted during the term of this Lease or any extension hereof or any occupancy hereunder,by any municipal, county, state, or federal N authorities having jurisdiction over the Property or the use allowed by this Lease. 37. PHYSICAL CONDITION OF PROPERTY. Lessee has inspected the Property Q and has satisfied itself in its subjective good faith judgment as to the physical and o environmental condition of the Property including,without limitation,the hazardous substance condition of the Property. Lessee acknowledges that there have been prior agricultural and r farming activities on the Property E r c� Q Packet Pg. 437 27.g Lease R.L. 2470 -9- o T 38. FORFEITURE OF RIGHTS. Lessee agrees that in the event it shall not well and °z truly keep and perform each and all of the covenants and conditions herein contained on its part z to be performed, time being made the essence hereof, Lessee shall be in default under the r Lease. If Lessee fails to cure said default with ten(10)days of receipt of written notice thereof, o Lessee shall forfeit unto Lessor all rights to further occupancy of the Property,or any part thereof. Lessee agrees that it shall be lawful for Lessor,at its option,without any legal process E or warrant,to re-enter the Property and remove all persons therefrom and hold the Property N without interference on the part of Lessee, and Lessee agrees that in such event,this Lease y shall be terminated and Lessee shall not be entitled to any rights hereunder. a 0 39. ACCEPTANCE BY LESSEE. Lessee accepts this Lease and agrees to fulfill all covenants and conditions on its part to be kept and performed and enters upon the Property with full knowledge of the condition of the Property. Lessee further agrees that it will not do,nor will it permit to be done, any act or thing upon the Property or any improvements thereof, or adjacent to said Property, which will in any way injuriously affect the strength or stability of said improvements. as r 40. PARAMOUNT RIGHT. Lessee's use of the Property shall be subject to Lessee's paramount right to use the Property for water conveyance purposes. 0 41. COMPLIANCE WITH LAWS. Lessee shall comply with any and all local, state, c and federal environmental laws and regulations, including the provisions of the California ` Environmental Quality Act(CEQA),Migratory Treaty Bird Act(MBTA), and Fish and Game Code Sections 3503 and 3503.5. In the event Lessee violates any such laws, Lessor may r terminate this lease. Lessee shall remain liable for any such violation and for any other costs, r fines, or penalties based upon such violation. Lessee shall keep Lessor and Lessee's property 3 free from any environmental claims, lawsuits, fines, penalties, excise taxes,or extraordinary mitigations required beyond those specified in the original land use approvals and permits aEi obtained for use of Lessor's property. Lessee agrees to inform Lessor of any actions requiring L the review of environmental documentation by Lessor as a Responsible Agency under the a California Environmental Quality Act(CEQA). d 42. ENVIRONMENTAL NOTIFICATION TO LESSOR_. Lessee shall submit to Lessor all environmental surveys that are conducted or needed and shall notify the Lessor prior n to the release said surveys to any third party. Lessor's personnel shall accompany Lessee or its designee for all environmental field inspections of Property. 0 T 43. Lessee shall provide Lessor with copies of any regulatory agency(ies) approvals relating to its work on the property within thirty(30)days of Lessee obtaining same and upon completion of the work. a 0 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year fust above written. a� E L V Packet Pg.438 27.g Lease R.L. 2470 -10- 0 6 Date Executed: Z Lessor's Mailing Address: THE METROPOLITAN WATER DISTRICT c Post Office Box 54153 OF SOUTHERN CALIFORNIA Los Angeles,CA 90054 Attention: Real Property Group Jeffrey Kightlinger N Telephone: (213)217-7750 General Manager y Email: RealEstateServices@mwdh2o.com Q 0 r d By -- -------- Lilly L. Shraibati,Manager Real Property Group Lessor c d r is 3 c e� Date Executed: c a 0 Lessee's Mailing Address: CITY OF SAN BERNARDINO 290 North D Street San Bernardino,CA 92401 r Attention: Real Property Section w Telephone: (909)384-5126 By: 3 Email: aschenbrenner ry@sbcity.org Andrea M.Miller, City Manager E d Lessee m Q d N la d J V d N 3 0 Ix 0 T N <O Q PC NAhm s:\RPGkPropMgnt\WA5875-Uase.docx C d E s �a Packet Pg.439 27.g EXHIBIT A 0 1606-30-5LE 100 ° z Foothill Feeder Rialto Pipeline Lease RL 2470 MWD to City of San Bernardino m E to ch That portion of Block 39,Irvington Land and Water Company Subdivision,in the City of San Bernardino,County of San Bernardino,State of California,as shown on Map filed in Book 3,Page 9 of a Maps,in the Office of the County Recorder of said County,conveyed to The Metropolitan Water District ° of Southern California as Parcel A,by Grant Deed recorded April 19, 1971 in Book 7649,Page 341,of Official Records of said County. >_ EXCEPTING therefrom all that portion of said Parcel A,conveyed to the City of San l Bernardino by Permanent Easement Deed recorded March 30, 1988 as Document No.88-093112 of � Official Records of said County. N 0 All as shown on Exhibit"B"attached hereto and made a part hereof. Subject to any and all existing uses,licenses,permits,easements,rights of way,covenants, conditions and restrictions. c�a _ o - END OFD.ESCRIPTION c W r 3 r PREPARED UNDER MY SUPERVISION E L.T06 a, Paul L.Tucker,P.L.S.7915 No.7915 y Exp d Date 0 N N t0 i— � a 0 3 I:1ProjectgWoothill Feeder_r ialto PipetineMOWUtOW17-03-02 Lease City of Saa_Bemadino Mach 1s.2017 d E t V Page 1 of 1 Packet Pg. 440 OZHIBI T B Pagel of i PORTION OF BLOCK 39,IRIVINGTON LAND AND WATER ► 6 COMPANY SUBDIWSION M.B.319, CITY OF SAN BERNARDINO, z COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA THIS EXHIBIT IS TO BEATTACHED To THE LEGAL mschipim LEGEND E LEASE RL 2470 Off, 1&18-30-5 fPORTFON) 1.783 AC. 0 CD .2 PERMANENT EASEMENT PER DOC-NO.88-093112 O.R. REC.03-30-1988 3: -6 0 CL / : ovib. 06 Cb N 4 J L -v rLAND �10 C3 L E `F sy00 4* :01 0�1 NOT TO SCALE EXPIRATION DATE 70 12-31-17 PLS 7915N- > VICINITY MAP �fi CA%-\F CD PREPARED UNDER RIVERSIDE TEAM lot MY SUPERVISION THE METROPOLITAN WATER DISTRICT SITE y b OF SOUTHERN CALIFORNLA FOOTHILL FEEDER RIALTO PIPELINE' 4t ot LEASE RL 2470 POW L Tu -L& 7915 MWD TO CITY OF SAN BERNARDINO 1606-30-5LE100 DATE E A.P.N.0201-731-42 J.- - - --1 0 rnardfmdgn 315-20/7 Packet Pg.441 Cir of San Bemardfno Hainan Resourcesh mk fiftragernent Dfalston 900 N.'n'Sheet San Bernardino,CA 92418 � o 6 Helen Tran !Aeric So* Z Interim Director of tit City Menager CERTIFICATE OR INSURANCE � OR SEL 4NSURANCE In Sia event of canaeBef m ofthe self4murence programs or po®des desbnated bdow,!IS f8e lIdW of tta3 Coy of Sir Bernardino to meh*M 90 days'prior notice thereof tm rA N The MetruW tan Water DisWd of Southam California a P.O. Box 54153 Loa Angeles, CA 90054 r The City of San Bwamino ceW"trek the bkwhV self-Inswance prograrns or aisanurce poldav are In fiance: To assume landscape maintenance responsibilities for Assessment District 1455 � N LWIM1 OF LUUMUTY :r COMPANY ARD POLICY cc TYM Olt COVl9tI GM POLICY"a PWOO 1*" c Genemf Uaft 49aAr4howed tnoWntte i11A00M i:On INned Single Lk nbs G Ind.Aum Udit p General LwNft t Ind.Auto Il&Mrw 3 Wbrlasraf Compton Saff4haroed IndefMAS, 811hory Allow arege c ar E 1� >� T H Q E N R � This owscate is rAtvWM unb acounwalgned by 1a aufta tod MomeentaWe of the C.fty of San Benrerano,Risk Menegemem Division. y .2 m Ca Ryan Aschenbrenner 0 N Hetes Tran Interirn DIrecdar of tit 4-i G4 of San semerdfno Deft Authorized RepresentaWe Q I � _—....T:G-frrfprme6ara-regacdiag�e-above.se#f=Frtsurance-poftdes,•pfease_contact.F�Isk.Man�ementDivfslon.at_(909}36A�308 __ c m 1 E L I 1 Packet Pg.442