HomeMy WebLinkAboutR38-Economic Development Agency
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ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
FROM:
Maggie Pacheco, Deputy Director/Director SUBJECT:
Housing & Community Development
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January 29, 2002 f . , ·
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AMENDMENT NO.3 TO THE
NEIGHBORHOOD HOUSING
SERVICES OF THE INLAND
EMPIRE, INC. (NHSIE) HOME
AGREEMENT
DATE:
Svnopsis of Previous Commission/Council/Committee Action(s):
On January 10.2002 the Redevelopment Committee recommended approval of this item to the Community
Development Commission,
Recommended Motion(s):
(Community Development Commission)
MOTION:
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION APPROVING
AND AUTHORIZING EXECUTION OF AMENDMENT NO, 3 TO THE SEPTEMBER 7.
1999 HOME AGREEMENT, AND AS SUBSEQUENTLY AMENDED, BY AND
BETWEEN THE AGENCY AND NEIGHBORHOOD HOUSING SERVICE OF THE
INLAND EMPIRE (NHSIE), CONVEYING THE PROPERTY AT 1650 NORTH SIERRA
WAY, NEIGHBORHOOD INITIATIVE PROGRAM (NIP#I),
Contact Person(s):
Maggie Pacheco
Phone:
663-1044
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Project Area(s)
N/A
Ward(s):
Supporting Data Attached: 0 Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letter/Memo
FUNDING REQUIREMENTS
$
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Source:
SIGNA TORE:
Budget Authority: .., ~
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Maggie Pacheco, Deputy Director/Director
Housing & Community Development
Commission/Council Notes:
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Stephanie/ Agenda/CDC/2-19-02 Amendment No, 3 to NHSIE COMMISSION MEETING AGENDA
Meeting Date: 02/19/2002
Agenda Item Number: ~K-
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Economic Development Agency Staff Report
Amendment No.3 to NHSIE
January 29, 2002
Page 2
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
AMENDMENT NO.3 TO THE NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE.
INC. /NHSIE) HOME AGREEMENT
BACKGROUND
On September 7, 1999, the Community Development Commission approved an Agreement
between the Agency and Neighborhood Housing Services of the Inland Empire, Inc., (NHSIE)
wherein the Agency would convey a parcel located at 571 Magnolia Street for development of a
single family home. This Agreement was later modified in 2000 in order to convey the 1149
Rialto Avenue property, and the properties at 1556 Mountain View and 1662 Sierra Way to
NHSIE for rehabilitation purposes and resale to owner occupants.
On August 20, 2001, the Community Development Commission approved and accepted the
donation of a vacant lot located at 1650 North Sierra Way, NIP #1, from the County of San
Bernardino on behalf of the Agency for the purpose of developing a small pocket park.
Subsequently, a neighborhood survey was conducted, area residents changed their previous
desire for development of a small community park and indicated they would rather have a single
family home constructed on the lot. Additionally, Park and Recreation Staffs research indicated
that the location is not adequate in size for a community park. Staff advised the Commission that
if the park concept did not prove feasible, Agency Staff would proceed with disposition of the
land to an approved non-profit or ARR partner for development of an infill single family home.
CURRENT ISSUE
For the reasons stated above, the Property was offered to Neighborhood Housing Services of the
Inland Empire (NHSIE), who expressed a desire to purchase and develop the property. The
Property is located next to the NHSIE Y outhBuild project at 1662 Sierra Way currently under
rehabilitation.
NHSIE is proposing to develop a single-family home consisting of about 1,400 square feet,
containing four bedrooms and two bathrooms with a two-car attached garage similar to the
YouthBuild project located at 571 Magnolia Street. NHSIE will construct the project with local
contractors in addition to providing a learning tool for the Y outhBuild students. Upon
completion, NHSIE will sell the property to an income eligible household. Construction will
commence within 60 days from approval of Amendment No.3 and completion to occur within
180 days from said date.
Stephanie/ Agenda/CDC/2-18-02 Amendment No.3 to NHSIE
COMMISSION MEETING AGENDA
Meeting Date: 02/19/2002
Agenda Item Number: ~
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Economic Development Agency Staff Report
Amendment No.3 to NHSIE
January 29, 2002
Page 3
ENVIRONMENTAL IMPACT
Pursuant to Section 15332, Class 32, this Project is categorically exempt from California
Environmental Quality Act (CEQA) requirements (infill project).
FISCAL IMPACT
NHSIE will absorb all costs associated with the conveyance and development of the Property.
RECOMMENDA nON
That the Community Development Commission adopt the attached Resolution.
v/J~ _(y ~
Maggie Pacheco, Deputy Director/Director
Housing & Community Development
Stephanie/Agenda/CDC/2-18-02 Amendment No.3 to NHSIE
COMMISSION MEETING AGENDA
Meeting Date: 02119/2002
Agenda Item Number: ..I!..a8.-
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RESOLUTION NO:
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
APPROVING AND AUTHORIZING EXECUTION OF AMENDMENT NO.
3 TO THE SEPTEMBER 7, 1999 HOME AGREEMENT, AND AS
SUBSEQUENTLY AMENDED, BY AND BETWEEN THE AGENCY AJ"ID
NEIGHBORHOOD HOUSING SERVICE OF THE INLAND EMPIRE
(NHSIE), CONVEYING THE PROPERTY AT 1650 NORTH SIERRA WAY,
NEIGHBORHOOD INITIATIVE PROGRAM (NIP#I).
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WHEREAS, the Agency and Neighborhood Housing Services of the Inland Empire,
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("Participant") have previously entered into an Agreement for the purpose of authorizing the
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Agency to convey the land located at 571 Magnolia Street to the Participant for development
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of a single-family home, and subsequently amended on July 24, 2000, to convey the property
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located at 1149 Rialto Avenue, San Bernardino (the "Amendment No. I) and thereafter on
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October 2, 2000, transferring the properties located at 1556 Mountain View and 1662 Sierra
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Way (the "Amendment No.2), to the Participant, all for rehabilitation, or construction and
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resale to income qualified homeowners; and.
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WHEREAS, the County of San Bernardino ("County") has donated the property at
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1650 Sierra Way, San Bernardino (the "Property") to the Agency pursuant to the temlS under
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the Agreement between the County and the U.S. Department of Housing & Urban
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Development ("HUD") known as the Neighborhood Initiative Program (NIP); and
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WHEREAS, the County has agreed to assign and transfer the Property to the Agency
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for use consistent with NIP. The Participant desires to acquire the Property from the Agency,
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subject to the terms and conditions as set forth in Amendment No.3.
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NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION, AS THE
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GOVERNING BODY OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
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BERNARDINO, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS
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FOLLOWS:
6 Section 1. The Executive Director of the Redevelopment Agency ("Director") is hereby
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authorized and directed to execute on behalf of said Agency Amendment No.3, and any other
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documents related to the implementation of Amendment No.3, to the September 7, 1999
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Agreement (Agreement) between the Agency and Neighborhood Housing Services of the
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Inland Empire, Inc. (NHSIE) and as subsequently amended on July 24, 2000 and October 2,
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2000, wherein the Agency will donate the property located at 1650 Sierra Way (the
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"Property") to NHSIE for construction and improvement, and upon completion sell the
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Property to an income qualified homebuyer, and as more fully described in the Amendment
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No.3 and original Agreement, a copy of which is on file with the City Clerk, and incorporated
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herein by reference as though fully set forth at length.
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Section 2. The Director is hereby authorized to make minor corrections, additions, and
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clarifications to the Amendment No. 3 and the Agreement, provided said changes are not
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substantive in nature and do not increase the monetary impact to the Agency pursuant to the
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Amendment No.3 and Agreement.
23 Section 3. The authorization to execute the above referenced Agreement No.3 is rescinded
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if the parties to the Amendment No.3 fail to execute it within sixty (60) days of the passage
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ofthis Resolution.
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
APPROVING AND AUTHORIZING EXECUTION OF AMENDMENT NO.
3 TO THE SEPTEMBER 7, 1999 HOME AGREEMENT, AND AS
SUBSEQUENTLY AMENDED, BY AND BETWEEN THE AGENCY AND
NEIGHBORHOOD HOUSING SERVICE OF THE INLAND EMPIRE
(NHSIE), CONVEYING THE PROPERTY AT 1650 NORTH SIERRA WAY,
NEIGHBORHOOD INITIATIVE PROGRAM (NIP#I).
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6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by Community
7 Development Commission of the City of San Bernardino at a
meeting
, 2002 by the following vote,
8 thereof, held on
day of
9 to wit:
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COMMISSION MEMBERS: A YES
ESTRADA
LIEN
MCGINNIS
SCHNETZ
SUAREZ
ANDERSON
MC CAMMACK
NAYS
ABSTAIN
ABSENT
Rachel Clark, City Clerk
The foregoing resolution is hereby approved this
,2002.
day of
Judith Valles, Chairperson
Community Development Commission
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Approved as t form and L al Content:
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By:
Agency Counsel
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CDC/2002-11
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AMENDMENT NO.3 TO THE NEIGHBORHOOD HOUSING SERVICES
OF THE INLAND EMPIRE (NHSIE) HOME PROGRAM ACQUISITION,
CONSTRUCTION AND RESALE AGREEMENT DATED SEPTEMBER 7,
1999, AS AMENDED
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THIS AMENDMENT NO.3 (the "Amendment No.3") to the Agreement entitled
"HOME Program Acquisition, Construction and Resale Agreement", dated September 7,1999 as
amended by Amendment No.1, dated as of July 24, 2000 and Amendment No.2, dated October
2,2000 (collectively the "Agreement") is made and entered into as of this _ date of_,
2002, by and between the Redevelopment Agency of the City of San Bernardino, a public body
corporate and politic (the "Agency"), and Neighborhood Housing Services of the Inland Empire,
Inc., a California non-profit corporation, (the "Participant") in view of the facts set forth in the
following Recitals:
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RECITALS
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WHEREAS, the Agency and Participant have previously entered into the Agreement for
the purpose of authorizing the Agency to convey the land located at 571 Magnolia Street to the
Participant for development of a single-family house, and subsequently amended on July 24,
2000 and to convey the property located at 1149 Rialto Avenue, San Bernardino (the
"Amendment No.1"); and transferring of the properties located at 1556 Mountain View, and
1662 Sierra Way, pursuant to Amendment No.2 (the "Amendment No.2"); and
WHEREAS, the Agency has received assignment and transfer of the property located at
1650 Sierra Way, San Bernardino (the "Property") from the County of San Bernardino
("County") under the program between the County and the Federal Housing Administration
("FHA") known as the Neighborhood Initiative Program (NIP); and
WHEREAS, the County has agreed to assign and transfer the Property to the Agency for
use consistent with NIP. The Participant desires to acquire the Property from the Agency,
subject to the terms and conditions as set forth in this Amendment No.3; and
WHEREAS, the Agency and Participant desire to further amend the Agreement
("Amendment No.3") to enable the Agency to transfer title to the Property to the Participant and
allow the Participant to commence development of the Property pursuant to this Amendment No,
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3 and reserve the completed Property for resale to a Qualified Homebuyer, pursuant to the terms
in this Amendment No.3.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS
HEREIN SET FORTH AND THE MUTUAL BENEFITS TO BE DERIVED THERE FROM,
THE PARTICIPANT AND AGENCY HERETO AGREE AS FOLLOWS:
Section 1. The meaning of words and phrases as used in the Amendment No. 3
shall be the same as set forth in the Agreement, except as the context of usage of a particular
term or phrase as set forth in the Recitals of this Amendment No.3. The text of the Agreement
(and all exhibits accompanying the Agreement) is hereby incorporated into this Amendment
No.3 by this reference.
Section 2. The Participant and the Agency mutually acknowledge and agree that as
of the date of approval of this Amendment No.3 by the governing board of the Agency, no
default exists under the Agreement, and Amendment No. I and No.2, nor is either party aware
of any fact, with the giving of notice and the passage of time, would constitute a default under
the Agreement or the Amendment No.1 and No.2.
Section 3. The Agreement is hereby amended to add a new Section 31 thereto
which reads as follows:
"Section 31 Amendment No.3 to the Agreement
a) Subject to the approval of Amendment No. 3 to this Agreement by the
governing board of the Agency and the transfer or assignment of the
Property by the County to the Agency under the County NIP Agreement,
the Agency hereby agrees to convey the Property to the Participant, and
the Participant hereby agrees to purchase the Property from the Agency
for closing costs and other good and valuable consideration as set forth in
this Section 31 of this Agreement, as amended. A legal description of the
Property is attached hereto as ("Legal Description of the Property")
Exhibit "G".
The Agency and the Participant shall accomplish the transfer of the fee
title interest of the Property from the Agency to the Participant (subject to
corresponding action by the County authorizing the transfer or assignment
of the Property pursuant to the terms and conditions of the "Agency
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Participant Purchase and Sale Agreement" and escrow instructions as
prepared by an approved escrow company, and as approved by Agency
and Participant substantially in the form as Exhibit "E" to the original
Agreement dated September 7, 1999. The Agency and the Participant
shall have each caused the Agency Participant Purchase and Sale
Agreement and other documents to be fully executed and delivered to the
escrow holder, as identified in the Agency Participant Purchase and Sale
Agreement, by a date not later than March 31, 2002.
Section 4. The Agreement is hereby amended to add a new Section 32 thereto
which reads as follows:
"Section 32. Development of a Single-Familv Home on the PropertY
a) Provided that the escrow for the transferring of the Property as described
in Section 31 has closed, the Participant shall commence the construction
and development of the new single-family home, consisting of
approximately 1,400 square feet, together with related on and off site
improvements consistent with the City's development codes, on the
Property within sixty (60) days following the date of recordation of the
Agency Grant Deed as provided in the Agency Participant Purchase and
Sale Agreement. The description of the home to be constructed by the
Participant on the Property is attached hereto as Exhibit "H" and
incorporated herein by this reference (the "HOME").
b) All of the following provisions of the Agreement shall also apply to the
construction and resale of the completed Home on the Property by the
Participant:
Section 4 through Section 24, inclusive.
In each such Section of the Agreement as referenced in the preceding
sentence, where the words "HOME Lot" and "New Home" may be used in
any such Section, such words, for the purposes of this Amendment No.3
to the Agreement, shall refer to the Amendment No. 3 Property and the
Home described in Exhibit "H" to be constructed and improved on the
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Property by the Participant and offered for resale by the Participant to a
Qualified Homebuyer.
c) Notwithstanding the provisions of Section 4(b) of the Agreement to the
contrary, the Participant shall complete the construction and improvement
of the Home on the Property by a date not later than November 30, 2002."
Section 5. The Agreement is hereby amended to add a new Section 33 thereto
which reads as follows:
"Section 30. Particioant Resoonsibilities
The Participant is responsible for:
a) All costs associated with the transfer and development of the Property,
(i.e. finance costs, public facilities capital charges, school district fees, and
marketing fees) as identified in the Scope of Work for the Property,
"Exhibit "H" as it relates to the Property.
Section 6. Section 19 of the Agreement is hereby amended to add a new
subsection 19(e) to read as follows:
Amendment No.3 may be terminated for the convenience of either party
who is not then in default upon thirty (30) days notice to the other party at
any time prior to the date on which the Agency Grant Deed for the
Property is recorded as provided in the Agency Participant Purchase and
Sale Agreement"
Section 7. The Agreement is hereby amended to add three (3) additional exhibits
thereto as follows:
Exhibit G - Legal Description of the Amendment No.3 Property.
Exhibit H - Scope of Work for the Property
Section 8. This Amendment No. 3 shall take effect following its approval by the
governing board of the Agency and when it has been fully executed by the authorized officers
of the parties herein.
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1 IN WITNESS WHEREOF, the parties have caused this Amendment No.3 to the Agreement to
2 be executed as of the day and year first written above.
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AGENCY
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Redevelopment Agency of the
City of San Bernardino
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Gary Van Osdel
Executive Director
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Approved as to Form:
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PARTICIPANT
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Neighborhood Housing Services of the
Inland Empire, a California Non-Profit
Corporation
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16 Agency Counsel
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By:
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Dawkins K. Hodges
Executive Director
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EXHIBIT "G"
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Legal Description of the Property
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The Property is described as the real property in the County of San Bernardino, State of
California:
Lot 5 and the South 2 feet of Lot 4, Block "I" of Home Gardens Subdivision, in the City
of San Bernardino, State of California, as per map recorded in Book 21, page(s) 53, of Maps, in
the office of the County Recorder of said County.
Commonly known as: 1650 North Sierra Way, San Bernardino, California 92405
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EXHIBIT "H"
Scooe of Work for the Prooertv
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Construction of a new single-family home in the Property, together with all related on
and off-site improvements, consistent with the City's development code and housing codes, (the
"HOME").
Participant shall pay for all costs affiliated with development of the Property including
building and development fees.
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** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Meeting Date (Date Adopted):
Vote: Ayes 1- (,
2- -\0-02- Item # 12.-" '6 Resolution # (' OCI?rrrv -\ \
Nays...G- Abstain 'I Absent -G-
Change to motion to amend original documents:
Reso. # On Attachments: / Contract term: -
Note on Resolution of Attachment stored separately: ~
Direct City Clerk to (circle I): PUBLISH, POST, RECORD W/COUNTY
Date Sent to Mayor: 7..::- La '"D?
Date of Mayor's Signature: .)-<3-<::,- c,:;J
Date of ClerklCDC Signature: Cl- ;) \ C'\ d
Date Memo/Letter Sent for Signature:
60 Day Reminder Letter Sent on 30th day:
90 Day Reminder Letter Sent on 45th day:
See Attached:
See Attached:
See Attached:
Request for Council Action & Staff Report Attached:
Updated Prior Resolutions (Other Than Below):
Updated CITY Personnel Folders (6413, 6429, 6433, 10584, 10585, 12634):
Updated CDC Personnel Folders (5557):
Updated Traffic Folders (~85, 8234, 655, 92-389):
Copies Distributed to:
City Attorney
Parks & Rec.
Code Compliance
Dev. Services
Police
Public Services
Water
Notes:
NulVVoid After: Inn D~~-Z2-0?
By:
Reso. Log Updated: ...---
Seal Impressed:
Date Returned: ,;)--.?S -0 d-
Yes ./ No
Yes No ---d-
Yes No~
Yes No~
Yes No.....L
EDA
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Finance
MIS
Others:
BEFORE FILING. REVIEW FORM TO ENSURE ANY NOT A TIONS MADE HERE ARE TRANSFERRED TO THE
YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term. etc.)
Ready to File: lb:r..-
Date: ;? - {).Io -0;).
Revised 01/ 12/0 1