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2016-03-09 VHC Agenda Packet UPDATEDCalifornia Public Records Act ("PRA"): In compliance with the PRA, the documents pertaining to agenda items, including attachments, which are presented to the Vernon Housing Commission in open session are available for public inspection. They may be inspected during regular business hours in the Office of the City Clerk at Vernon City Hall, 4305 Santa Fe Avenue, Vernon, California 90058, no prior appointment necessary, and on the City’s website at www.cityofvernon.org. Americans with Disabilities Act (“ADA”): In compliance with the ADA, if you need special assistance to participate in the meeting, please contact the Office of the City Clerk at (323) 583-8811. Notification of at least 24 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service. Agenda Regular Meeting of the Vernon Housing Commission Wednesday, March 9, 2016, 6:00 p.m. Council Chambers 4305 Santa Fe Avenue Vernon, CA 90058 Michael Hughes, Chairperson Melissa Ybarra, Vice Chairperson Hector Garcia, Commissioner John Kriste, Commissioner Steven Froberg, Commissioner Kyle Cooper, Commissioner Steven Florman, Commissioner CALL TO ORDER & FLAG SALUTE CHANGES TO THE AGENDA PUBLIC COMMENT - At this time the public is encouraged to address the Vernon Housing Commission on any matter that is within the subject matter jurisdiction of the Commission. The public will also be given a chance to comment on matters which are on the posted agenda during Commission deliberation on those specific matters. MINUTES 1. Corrected Minutes of the Regular Vernon Housing Commission Meeting held September 9, 2015. 2. Minutes of the Regular Vernon Housing Commission Meeting held December 9, 2015. 3. Minutes of the Special Vernon Housing Commission Meeting held February 10, 2016. Vernon Housing Commission Meeting Agenda March 9, 2016 Page 2 of 4 NEW BUSINESS 4. Amendments to Section 2 of Form Residential Lease Relating to “Term” Recommendation: A. Find that the proposed amendments to the form Residential Lease are exempt from the California Environmental Quality Act (“CEQA”), because such amending of a lease is a continuing administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines Section 15378, and that even if such were a project, it would be exempt in accordance with CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Approve amendments to Section 2 of the form Residential Lease relating to the “Term” of the Lease. PUBLIC HEARING 5. Public Hearing Regarding Preliminary 5-Year Market Rent Schedule for all City-Owned Housing Units in Vernon Recommendation: A. Find that the review of the Preliminary 5-Year Market Rent Schedule is exempt from the California Environmental Quality Act (“CEQA”), because such review is a continuing administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines Section 15378, and that even if such were a project, it would be exempt in accordance with CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Hold a public hearing on the Preliminary 5-Year Market Rent Schedule to obtain oral and written testimony. C. Hold a discussion regarding the Preliminary 5-Year Market Rent Schedule based on any testimony provided during the public hearing. D. Provide direction to staff regarding what the Commission would like to consider for adoption or further discussion at the special Housing Commission meeting slated for April 6, 2016. Vernon Housing Commission Meeting Agenda March 9, 2016 Page 3 of 4 DISCUSSION AND POSSIBLE DIRECTIVES TO STAFF 6. Review of existing transitional/financial hardship procedures and discussion regarding potential modifications to said procedures. (Item Attachment: Vernon Housing Commission Appeal Procedures for Existing Tenants Experiencing Transitional Hardship, Adopted July 18, 2012) 7. Update on City Housing Budget. 8. Creation of a Permanent Relocation Priority Interest List for the Six Tenants in Non-remodeled City-owned Housing Units. (Staff Report distributed on March 7, 2016). Recommendation: A. Find that the creation of a Permanent Relocation Priority Interest List for tenants in non- remodeled units is exempt from the California Environmental Quality Act (“CEQA”), because the creation of such a list is a continuing administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines Section 15378, and that even if such were a project, it would be exempt in accordance with CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Authorize staff to create a Permanent Relocation Priority Interest List for the six tenants in non- remodeled City-owned housing units, related to the 2016 Housing Remodel Project currently under consideration by the City Council. ORAL REPORTS, PRESENTATIONS & COMMENTS FROM STAFF AND COMMISSION MEMBERS 9. Quarterly Housing Report to be presented by Public Works, Water & Development Services Staff. 10. Brief reports, announcements, or directives to staff from the Commissioners and Commission Officers. 11. Upcoming Meetings: A. Special Vernon Housing Commission Meeting, April 6, 2016 at 6:00 p.m. B. Next regular meeting: June 8, 2016 at 6:00 p.m. SECOND PUBLIC COMMENT - The public is encouraged to address the Vernon Housing Commission on any matter that is within the subject matter jurisdiction of the Commission. Vernon Housing Commission Meeting Agenda March 9, 2016 Page 4 of 4 ADJOURNMENT I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Vernon City Hall, located at 4305 Santa Fe Avenue, Vernon, California, and on the City’s website, not less than 72 hours prior to the meeting set forth on this agenda. Dated this 3rd day of March, 2016. By: ________________________________ Maria E. Ayala, CMC Secretary CORRECTED MINUTES OF THE REGULAR VERNON HOUSING COMMISSION MEETING HELD WEDNESDAY SEPTEMBER 9, 2015, IN THE COUNCIL CHAMBER OF THE CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: Michael Hughes, Melissa Ybarra, Steven Froberg, John Kriste, and Kyle Cooper Correction: Original Minutes indicated Comm. Henry Haskell was present at the meeting. Comm. Haskell is was no longer a member of the Vernon Housing Commission. MEMBERS ABSENT: Steven Florman and Hector Garcia The meeting was called to order by Chairperson Hughes at 6:00 p.m. Vice Chairperson Ybarra led the flag salute. CHANGES TO THE AGENDA Maria Ayala, City Clerk, announced that there were no changes to the agenda. PUBLIC COMMENT Chairperson Hughes announced that this was the time allotted for public comment and inquired whether anyone in the audience wished to address the Commission. The public will also be given a chance to comment on matters which are on the posted agenda during Commission deliberation on those specific matters. No public comment provided. INTRODUCTORY BUSINESS 1. Introduction of newly appointed Commissioners Steven Florman and Kyle Cooper (Business Representative Seats). Members present conducted self-introductions. MINUTES 2. Minutes of the Regular Vernon Housing Commission Meeting held June 10, 2015, to be received and filed. It was moved by Ybarra and seconded by Cooper to approve the Minutes listed above. Motion carried, 5-0. Regular Vernon Housing Commission Meeting Minutes CORRECTED September 9, 2015 Page 2 of 4 NEW BUSINESS 3. Approval and Adoption of Proposed Guidelines Regarding Tenant and Landlord Responsibilities and Tenant Do’s and Don’ts. Recommendations: A. Find that approval and adoption of the proposed Guidelines Regarding Tenant and Landlord Responsibilities and Tenant Do’s and Don’ts are exempt under the California Environmental Quality Act (“CEQA”) because such is not a “project” as that term is defined in the CEQA Guidelines section 15378, and even if it were a project, it would still be exempt in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Approve and adopt the proposed Guidelines Regarding Tenant and Landlord Responsibilities and Tenant Do’s and Don’ts. Deputy City Administrator Kristen Enomoto presented the item and outlined the proposed changes to the Guidelines Regarding Tenant and Landlord Responsibilities and presented the proposed Tenant Do’s and Don’ts. In response to Vice Chairperson Ybarra, Director of Public Works, Water and Development Services Kevin Wilson reported on satellite, lawn and landscaping installation requirements. Subsequent changes to the proposed were made concerning the same. It was moved by Ybarra and seconded by Cooper to approve proposed items as amended. Motion carried, 5-0. 4. Approval and Adoption of Proposed Procedures for Tenants under First Responder Priority. Recommendations: A. Find that approval and adoption of the proposed procedures for tenants under first responder priority is exempt under the California Environmental Quality Act (“CEQA”) because such is not a “project” as that term is defined in the CEQA Guidelines Section 15378, and even if it were a project, it would still be exempt in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Approve and adopt the proposed procedures for tenants under first responder priority. Deputy City Administrator Kristen Enomoto reported on City Council’s consideration regarding the first responders and provided an update on the current status. Regular Vernon Housing Commission Meeting Minutes CORRECTED September 9, 2015 Page 3 of 4 Proposed procedures for annual certification for first responder tenants was presented. It was moved by Ybarra and seconded by Froberg to approve and adopt the Procedures for Tenants under First Responder Priority. Motion carried, 5-0. DISCUSSION AND POSSIBLE DIRECTIVES TO STAFF 5. Preliminary Discussion Regarding Potential Market Rent for Units to be Remodeled in Fiscal Year 2015/2016. Recommendations A. Find that discussion of market rent is exempt under the California Environmental Quality Act (“CEQA”) because such is not a “project” as that term is defined in the CEQA Guidelines section 15378, and even if it were a project, it would still be exempt in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Hold a preliminary discussion regarding potential market rent for units to be remodeled in fiscal year 2015/2016. Deputy City Administrator Kristen Enomoto provided an update on the item and City Council’s current consideration on the same. Legal Counsel Stuart Leviton provided further reporting. At 6:45 p.m., Leviton advised that Vice Chairperson Ybarra is a resident that would be impacted by this item and recommended that she recuse herself from the discussion. Ybarra recused herself from the dais and sat in the meeting as a member of the public. The remaining Commission members held considerable dialog regarding this item. No action on this item was taken. ORAL REPORTS & COMMENTS FROM STAFF AND COMMISSION MEMBERS 6. Update on the sale of three City-owned housing units in Huntington Park. Deputy City Administrator Kristen Enomoto provided the update. 7. Quarterly housing report to be presented by the Director of Public Works, Water & Development Services. Director of Public Works, Water and Development Services Kevin Wilson presented the reporting. Regular Vernon Housing Commission Meeting Minutes CORRECTED September 9, 2015 Page 4 of 4 Chairperson Hughes and Vice Chairperson Ybarra provided feedback. In response to Commissioner Cooper, Wilson clarified the types of repair calls. 8. Report on the completion and grand opening of Vernon Villages Park Apartments by the Director of Public Works, Water & Development Services. Director of Public Works, Water and Development Services Kevin Wilson conducted the presentation. 9. Brief reports, announcements, or directives to staff from the Commissioners and Commission Officers. Vice Chairperson Ybarra commended staff on the agenda material. SECOND PUBLIC COMMENT Chair Hughes announced that this was the time allotted for public comment and inquired whether anyone in the audience wished to address the Commission. No public comment provided. With no further business, at 7:35 p.m. the meeting was adjourned. ________________________ Michael Hughes Chairperson ATTEST: _________________________ Maria E. Ayala, CMC Secretary MINUTES OF THE REGULAR VERNON HOUSING COMMISSION MEETING HELD WEDNESDAY DECEMBER 9, 2015, IN THE COUNCIL CHAMBER OF THE CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: Michael Hughes, Melissa Ybarra, Hector Garcia, Steven Froberg, John Kriste, and Steven Florman MEMBERS ABSENT: Kyle Cooper The meeting was called to order by Chairperson Hughes at 6:05 p.m.; who also led the flag salute. CHANGES TO THE AGENDA Chairperson Hughes confirmed that there were no changes to the agenda. PUBLIC COMMENT Chairperson Hughes announced that this was the time allotted for public comment and inquired whether anyone in the audience wished to address the Commission. The public will also be given a chance to comment on matters which are on the posted agenda during Commission deliberation on those specific matters. No public comment provided. INTRODUCTORY BUSINESS 1. Self-introduction of newly appointed Commissioner Steven Florman (Business Representative Seat). Commissioner Florman conducted his self-introduction. MINUTES 2. Minutes of the Regular Vernon Housing Commission Meeting held September 9, 2015, to be received and filed. It was moved by Ybarra and seconded by Garcia to receive and file the September 9, 2015 Minutes. Motion carried, 6-0. DISCUSSION AND POSSIBLE DIRECTIVES TO STAFF 3. Discussion Regarding 2016 Rent Setting Process and Timeline. Regular Vernon Housing Commission Meeting Minutes December 9, 2015 Page 2 of 4 Recommendations A. Find that discussion of market rent is exempt from the California Environmental Quality Act (CEQA), in accordance with CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Hold a discussion regarding the 2016 rent setting process and timeline, and provide direction to City staff on the same. Deputy City Administrator Kristen Enomoto clarified that no recusal was needed for Vice Chairperson Ybarra nor any other Vernon resident on the Commission for this item. Enomoto reported on the previous housing appraisal process and initial rent setting and provided an update on the current housing stock. The Commission held some discussion and directed staff to use the same appraisal firms as the last time. Enomoto and Legal Counsel Stuart Leviton responded to inquiries and provided general guidance as the Commission held some discussion. The Commission proposed the following timeline to address the rent setting process: - Special meeting in February to discuss the appraisal survey results. - Regular March Meeting to conduct a public hearing. - Special meeting in April to discuss any changes. - Regular June meeting proposed adoption of new rental rates. Staff was directed to schedule and prepare for meetings accordingly. DECEMBER LOTTERY AND WAIT LIST 4. In accordance with Section 3, Random Selection of Potential New Leasees, of the Vernon Housing Commission Lease-Up Procedures for New Tenants, separate lottery drawings of all Expression of Interest Forms and Unit-to-Unit Transfer Request Forms received during the 2015 calendar year up to 5:00 p.m. on December 8, 2015, will be conducted to create a wait list for all units that become available December 9, 2015 or later. In response to Vice Chairperson Ybarra, Deputy City Administrator Kristen Enomoto advised that staff will be providing an update to the housing stock during oral reports and clarified the use and application of the wait list. Deputy City Clerk Ana Barcia announced that no unit-to-unit transfer forms had been received, and that 49 entries, after the removal of duplicates, are included in the lottery. Regular Vernon Housing Commission Meeting Minutes December 9, 2015 Page 3 of 4 The Commission conducted the lottery. Any vacancy that opens from this day forth will utilize the list created this day. ORAL REPORTS & COMMENTS FROM STAFF AND COMMISSION MEMBERS Chairperson Hughes and Commissioner Kriste thanked City Administrator Mark Whitworth for his leadership in Vernon. 5. Update on the sale of three City-owned housing units in Huntington Park. Deputy City Administrator Kristen Enomoto provided an update on the sale of the Huntington Park units. 6. Quarterly housing report to be presented by Public Works, Water & Development Services Staff. Public Works Water and Development Services Department Administrative Secretary Anthony Zarate conducted the presentation. In response to Vice Chairperson Ybarra’s concerns, Deputy City Administrator Kristen Enomoto reported on the condition of the vacated units and on the City Council’s direction concerning the same. 7. Brief reports, announcements, or directives to staff from the Commissioners and Commission Officers. Deputy City Administrator Kristen Enomoto reported on the recent walk-through of vacant units with some of the Commission members. In response to Chairperson Hughes, Enomoto reported on the tenant selection process for Vernon Village Park Apartments in compliance with the applicable agreement. Vice Chairperson Ybarra expressed concerns over the condition in which one of the units was left after vacation. Enomoto advised that Commissioner Cooper had noted a sense of community and ownership during her participation in the recent walk-through. Chairperson Hughes echoed the remarks. 8. Next regular meeting: March 9, 2016 at 6:00 p.m. Staff will be communicating proposed dates for the special meetings in February and April per earlier discussions. Regular Vernon Housing Commission Meeting Minutes December 9, 2015 Page 4 of 4 SECOND PUBLIC COMMENT Chair Hughes announced that this was the time allotted for public comment and inquired whether anyone in the audience wished to address the Commission. No public comment provided. With no further business, at 7:15 p.m. it was moved by Ybarra and seconded by Froberg to adjourn the meeting. ________________________ Michael Hughes Chairperson ATTEST: _________________________ Maria E. Ayala Secretary MINUTES OF THE SPECIAL VERNON HOUSING COMMISSION MEETING HELD WEDNESDAY FEBRUARY 10, 2016, IN THE COUNCIL CHAMBER OF THE CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: Michael Hughes, Melissa Ybarra, Henry Haskell, Steven Froberg, John Kriste, and Kyle Cooper. MEMBERS ABSENT: Steven Florman and Hector Garcia The meeting was called to order by Chair Hughes at 6:05 p.m. Commissioner Ybarra led the flag salute. City Clerk Maria E. Ayala conducted roll call. CHANGES TO THE AGENDA Deputy City Administrator Kristen Enomoto, noted she had reformatted 3 pages, starting with Page 3 of the Himes Market Rental Report to be consistent with 2011 Report. The pages were reformatted to be consistent with 2011 report. City Clerk Maria E. Ayala announced that there were no changes to the agenda. PUBLIC COMMENT Chair Hughes announced this was the time allotted for public comment and inquired whether anyone in the audience wished to address the Commission. The public will also be given a chance to comment on matters which are on the posted agenda during Commission deliberation on those specific matters. No public comment provided. DISCUSSION AND POSSIBLE DIRECTIVES TO STAFF 1. Review of 2016 Market Rent Data and Development of a Preliminary Market Rent Schedule for City-Owned Housing Units in Vernon Recommendation: Items A-D: A. Find that the review and development of market rent data and schedules is exempt from the California Environmental Quality Act (“CEQA”), in accordance with CEQA Guidelines Section 15601(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Review 2016 market rent data provided by qualified, independent appraisers. Special Vernon Housing Commission Meeting Minutes February 10, 2016 Page 2 of 3 C. Review the market rent growth rate from 2011 to 2016. D. Develop a 3 to 5 year preliminary market rent schedule to be disseminated to all residents and made available to the public at-large for the purpose of soliciting feedback on the proposed schedule at an upcoming public hearing. Interim City Administrator, A.J. Wilson, introduced himself to the Commission and the public, as the new Interim City Administrator. He spoke on industry and market rental rates, and aligining city-owned property value with privately-owned property; and further referencing the 2011 market rate report as a baseline, and recommending a future adjustment in five years (2021). Mr. James Himes (Consultant Himes & Himes) referenced Page 3 of their 2016 Market Rental Report, discussed the summary of scheduled rents ( passed out at the meeting) showing projected rents if the unit was recently remodeled. Size of unit, parking, garages, location and amenities were considered. Ms. Hee K. Yi (Consultant Gold Coast Market) provided an overview of their 2016 Rental Report noting they used Housing and Urban Development (HUD) guidelines to determine Gold Coast’s assessment. Deputy City Administrator Kristen Enomoto discussed in detail various methodologies and scenarios, such as the existing renter’s rate, based upon incremental rate increases versus the higher rate a new tenant would pay. Charts and graphs within the data reflect potential cases. Mr. Wilson, Ms. Enomoto, and Special Legal Counsel Stuart Leviton provided additional information and responses to questions. Recommended Items A through D were thoroughly discussed. Mr. Wilson summarized what is being proposed is to adopt a market table, provide five years to catch up to market value, and reflect current property conditions. It was moved by Ybarra and seconded by Froberg to approve proposed item, (best described as the Growth Rate Factor Approach, Recommendation D), and manually adjust the 5-year number for existing tenants to be the same amount for new tenants. Motion carried, 5-0. ORAL REPORTS & COMMENTS FROM STAFF AND COMMISSION MEMBERS 2. Brief reports, announcements, or directives to staff from the Commissioners and Commission Officers. Ms. Enomoto announced the City’s February 16 meeting on Parks Needs Assessment. Special Vernon Housing Commission Meeting Minutes February 10, 2016 Page 3 of 3 Chair Hughes also spoke on the topic and explained the County’s consideration of proposing a bond for local parks, and trying to gain as much input from the community as possible. Ms. Enomoto also reported on the sale of the Huntington Park units. 3. Next regular meeting: June 8, 2016 March 9, 2016 at 6:00 p.m. Deputy City Administrator Kristen Enomoto clarified the meeting date for the next regular Commission Meeting. : The main item at the meeting will be the Public Hearing, to provide the opportunity for the residents and community to give input on the proposed Preliminary Market Rent Schedule. 4. Special Meeting Scheduled for April 6, 2016 at 6:00 p.m. A special meeting will be held in April for the purpose of reviewing and determining what action to be taken. 5. Next regular meeting: June 8, 2016 at 6:00 p.m. SECOND PUBLIC COMMENT Chair Hughes announced that this was the time allotted for public comment and inquired whether anyone in the audience wished to address the Commission. Marisa Olguin, Representative from the City of Vernon Chamber of Commerce requested the City provide clarification on the revised annual budget to separate the housing funds by expenditures and revenue. It was noted housing funds are part of the general fund, but do not reflect an allocated line item. With no further business, at 7:45 p.m. the meeting was adjourned. ________________________ Michael Hughes Chair ATTEST: _________________________ Maria E. Ayala, CMC Secretary STAFF REPORT CITY ADMINISTRATION DATE: TO: FROM: RE: March 9,2016 Honorable Vernon Housing Commission A.J. Wilson, Interim City Administrator/Commission Originator: Kristen Enomoto, Deputy City Administrator Amendments to Section 2 of Form Residential Lease Relating ttTerm" Recommendations A. Find that the proposed amendments to the form Residential Lease are exempt from the Califomia Environmental Quality Act C'CEQA"), because such amending of a lease is a continuing administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines Section 15378, and that even if such were a project, it would be exempt in accordance with CEQA Guidelines Section 15061(bX3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Approve amendments to Section 2 of the form Residential Lease relating to the "Term" of the Lease. Background In an effort to effectively and effrciently implement any changes in rents that may be established by the Housing Commission ("Commission"), as well as further streamline and standardize the lease-up and lease renewal process for new and existing tenants, staIT recommends the Commission approve amendments to Section 2 - "Term" ofthe form Residential Lease ("Lease") to read as follows: TERM: The term of this Lease shall begin on ("Commencement Date") and shall continue until , 20_ ("Expiration Date"). The term ofthe Lease shall be for a period ofone (1) year. A. At the end of ,rny term, at Tenant's option, so long as Tenant is not in breach of any material obligation under this Lease, Tenant may extend Tenant's tenancy for a period ofone year. Page 1 of2 IfTenant wishes to extend Tenant's tenancy, at least 30 days prior to the expiration of the crurent term, Tenant shall give Landlord written notice of Tenant's intent to extend Tenant's tenancy. Thereafter, Tenant shall execute a new lease incorporating the then current terms and conditions of tenancy at the then applicable rental rate. B. Unless Tenant has executed a new lease or has obtained prior approval by Landlord to holdover for a specified period, Tenant shall vacate the Premises upon expiration of this Lease and shall promptly remove all personal property. Approval to holdover shall only be granted in cases ofextraordinary circumstances and, during the holdover period, Tenant shall be charged 1.25 times the then current market rent for the Premises that Landlord would charge a new tenant for the Premises. If approved by the Commission, staff would use the updated form Lease for any new tenancies commencing on or after the approval date, as well as for all existing tenants effective August l, 2016, or any later effective date ofany new rent schedule adopted by the Commission. A copy ofthe full Lease showing the proposed amendments in redline format is attached hereto. Fiscal Imnact There is no direct fiscal impact associated with the proposed amendments to t}te form Residential Lease. Attachment(s)l. Full Copy of Form Residential Lease with Proposed Amendments to Section 2 - "Term" Page 2 of 2 Attachment I Full Copy of Form Residential Lease with Proposed Amendments to Section2 - "Term" SIDENIIALLEASE THIS RESIDENTIAL LEASE (the *Lease") is dated as of , 20 , and is entered into between the CITY OF VERNON, a Califomia municipal corporation ("Landlord") and (collectively, "Tenant"). l.PROPERTY: A. Landlord rents to Tenant and Tenant rents from Landlord, the property located at Calitbmia (the "Prernises"). The Premises are tbr the sole following named person(s) only: use as a personal residence by the Tenant and (the "Authorized Occupants"). Occupancy shall be limited to no more than two persons per bedroom, plus one additional person. )TERM: The term of this Lease shall begin on ("Commencement Date") and shall continue until , 20 ("Expiration Date"). The term of the Lease maynetgfu[! be for a period l.enger+hanq! one ( [ ) year. At the end of any term, at Tenant's option, so long as Tenant is not in breach ol any material obligation under this Lease, Tenant may rener+{he-tem-eF{he @ for a period so+{o-€x€€cqf one year. If Tenant wishes to , at least 30 days prior to the expiration of the current term, Tenant shall give Landlord written notice of Tenant's intent to . Thereafter, Tenant shall execute a then applicable rental rate. Tenant has executd a new lease or has holdover for a specified period. Tenant shall vacate the Premises upon expiration of this Lease and shall promptly remove all personal property. Approval to a new tenant for the Prernises. RENT; RENT ADJUSTMENT: The capitalized term "Rent" shall mean all monetary obligations ofTenant to Landlord under this Lease, except the security deposit. A. Tenant agrees to pay monthly rent in the amount of $per month, subject to adjustment as described in Section 38 below, in advance on the I st day of each calendar month, by personal check, money order, or cashier's check to B. A. B. 3. .4dopred l/25/12 Pagc I of 18 {. City of Vernon at 4305 Santa Fe Avenue, Vemon, CA 90058 (or at any other location subsequently specified by Landlord in writing to Tenant). If any payment is returned for non-suflicient funds C'NSF") or because tenant stops payment, then, after that Landlord may by written notice to Tenant require Tenant to pay all future Rent by cashier's check. B. It is Landlord's policy to charge Tenant "market" rent. As such, Landlord reserves the right to adjust the Rent to reflect Landlord's current assessment of "market" Rent. Notwithstanding the tbregoing, Landlord may not adjust the Rent more than once in any l2 month period of time. SECURITY DEPOSIT: A. Concurrently with Tenant's execution of this Lease, Tenant shall pay one month's rent to Landlord as a security deposit. B. All or any po(ion of the security deposit may be used, as reasonably necessary, to: (i) cure Tenant's default in payment of Rent (which includes late charges, NSF fees or other sums due); (ii) repair damage, excluding ordinary wear and tear, caused by Tenant or by a guest or licensee ofTenant; and (iii) clean the Premises, if necessary, upon expiration or earlier termination of the tenancy. SECURITY DEPOSIT SHALL NOT BE USED BY TENAI{T IN LIEU OF PAYMENT OF LAST MONTH'S RENT. If all or any portion of the security deposit is used during the tenancy, Tenant agrees to reinstate the total security deposit within live (5) days written request to Tenant. Within 2l days after Tenant vacates the Premises, Landlord shall: (l) fumish Tenant an itemized statement indicating the amount of any security deposit received and the basis for its disposition and supporting documentation as required by Califomia Civil Code Section 1950'5(g); and (2) retum any remaining portion of the security deposit to Tenant. C. After giving or receiving notice of termination ofa tenancy, or before the end of this Lease, Tenant has the right to request that an inspection of the Premises take place prior to termination of the Lease or rental. lf Tenant requests such an inspection, Tenant shall be given an opportunity to remedy identified deficiencies prior to termination, consistent with the terms of this Agreement. Any repairs or alterations made to the Premises as a result of this inspection (collectively, "Repairs") shall be made at Tenant's expense. Repairs may be performed by Tenant or through others, who have adequate insurance and licenses and are approved by Landlord. The work shall comply with applicable law, including govemmental permit, inspection and approval requirements. Repairs shall be performed in a good, skillful manner with materials ol quality and appearance comparable to existing materials. [t is understood that exact restoration of appearance or cosmetic items lbllowing all Repairs may not be possible. (iii) Tenant shall: (a) obtain receipts for Repairs performed by others; (b) prepare a written statement indicating the Repairs performed by Tenant and the date of such Repairs; and (c) provide copies of receipts and statements to Landlord prior Adopted l/J5/12 Page 2 of t8 to termination. This Section does not apply, however, when the tenancy is terminated pursuant to Califomia Code of Civil Procedure $ I l6l (2), (3) or (4). D. The security deposit will not be returned until all Tenants and occuprnts have vacated the Premises and all keys have been returned. Any security deposit returned by check shall be made jointly to all Tenants named in this Lease. E. No interest will be paid on the security deposit. 5. INITIAL PAYMENTS; FIRST AND LAST MONTH'S RENT AND SECURITY DEPOSIT: Upon execution of this Lease, Tenant shall pay the first partial month's rent (if applicable), first full month's rent, last month's rent (equal to one full month of rent) and the security deposit to Landlord by personal check, cashier's check, or money order. 6. LATECHARGE;RETURNEDCHECKS: A. Tenant acknowledges that either late payment of monthly rent or issuance of a retumed check may cause Landlord to incur costs and expenses, the exact amounts of which are extremely difficult and impractical to determine. These costs may include, but are not limited to, processing, enlbrcement and accounting expenses. Ifany installment of Rent due tiom Tenant is not received by Landlord within five (5) calendar days after the date due, or ifa check is retumed, Tenant shall pay to Landlord, respectively, an additional sum of five percent (5%) ofthe Rent due as a late charge and $25.00 as a NSF f'ee tbr the first returned check and $35.00 as a NSF fee tbr each additional retumed check, all of which shall be deemed additional Rent. B. Landlord and Tenant agtee that these charges represent a tair and reasonable estimate of the costs Landlord may incur by reason of Tenant's late or NSF payment. Any late charge or NSF fee due shall be paid with the curent installment of Rent. Landlord's acceptance of any late charge or NSF fee shall not constitute a waiver as to any default o[ Tenant. Landlord's right to collect a late charge or NSF fee shall not be deemed an extension of the date monthly rent is due under Section 3.{ above or prevent Landlord from exercising any other rights and remedies under this Agreement and as provided by law. 7. PARKING: If the Premises consist of an apartment, Tenant shall have two assigred parking spaces, specifically the two spaces labeled with the corresponding address of the Premises, and Tenant shall park only in such assigned spaces. Parking areas are to be used for parking properly licensed and operable motor vehicles, but not for trailers, boats, campers, buses or trucks (other than pick-up trucks). Parking areas used by Tenant are to be kept clean, and vehicles leaking oil, gas or other motor vehicle fluids shall not be permitted. Mechanical work or storage of inoperable vehicles is not permitted. 8. STORAGE: If the Premises consist of an apartment, Tenant shall have the right to use storage unit labeled with the corresponding address of the Premises. Tenant shall store only personal property Tenant owns, and shall not store property claimed by another or in .4dopred l/)5/12 Page 3 of l8 9. 10. I l. which another has any right, title or interest. Tenant shall not store any improperly packaged food or perishable goods, or any flammable materials, explosives, hazardous materials or wastes or other inherently dangerous material, or any illegal substances. UTILITIES: Tenant shall pay for all utilities. If any utilities are not separately metered, Tenant shall pay Tenant's proportional share, as reasonably determined and directed by Landlord. If utilities are separately metered, Tenant shall place utilities in Tenant's name as of the Commencement Date. Tenant shall pay any cost for conversion from existing utilities service provider. CONDITION OF PREMISES: Tenant represents and warrants that Tenant has examined the Premises and, all appliances, landscaping and tixtures, including smoke detecto(s) and carbon monoxide detectors, and Tenant acknowledges these items are in good and operable condition. MAINTENANCE: A. Tenant shall properly use, operate and safeguard the Premises, including maintaining any landscaping and appliances, and all mechanical, electrical, gas and plumbing fixtures, and kecp them and the Premises clean, sanitary and well ventilated. Tenant shall be responsible for checking and maintaining all smoke detectors and carbon monoxide detectors and any additional phone lines beyond the one line and jack that Landlord shall provide and maintain. Tenant shall immediately notify Landlord's Building Maintenance Department of any problem, malfunction or damage. Tenant shall be charged for all repairs or replacements caused by Tenant, pets, guests or licensees of Tenant, excluding ordinary wear and tear. Tenant shall be charged for all damage to Premises resulting liom failure to report a problem in a timely manner. Tenant shall be charged for repair of drain blockages or stoppages, unless caused by defective plumbing parts or tree roots invading sewer lines. B. Tenant shall maintain, repair as necessary and water the garden, landscaping, trees and shrubs. C. Tenant's failure to maintain any item for which Tenant is responsible shall give Landlord the right to hire someone to perform such maintenance, and Tenant shall reimburse Landlord tbr Landlord's actual cost thereof, as additional Rent, within ten ( l0) days after written demand. NEIGHBORHOOD CONDITIONS: Tenant is advised to satisfy him or herself as to neighborhood or area conditions, including schools, proximity and adequacy of law enforcement, crime statistics, proximity of registered fblons or offenders, fire protection, other govemmental services, availability, adequacy and cost of any wired, wireless internet connections or other telecommunications or other technology services and installations, proximity to commercial, industrial or agricultural activities, existing and proposed transportation, construction and development that may alTect noise, view, or traffrc, airport noise, noise or odor ltom any source, wild and domestic animals, other 12. A.lopte.l l/:5/12 Page 4 of l8 13. nuisances, hazards, or circumstances, cemeteries, facilities and condition of common areas, conditions and influences of significance to certain cultures and./or religions, and personal needs, requirements and preferences ofTenant. PETS: Unless otherwise provided in Califomia Civil Code $ 54.2, Tenant may keep no more than two dog(s) and/or three cat(s) on the Premises as pets, subject to Landlord's separate Pet Agteement attached hereto as Exhibit -A", which must be signed by Tenant and is incorporated herein by reference. Except as expressly so provided herein, no other animal or pet shall be kept on or about the Premises without Landlord's prior written consent. WATERBEDS: [f the Premises were constructed on or after January 1973, then Tenant may use a waterbed in the Premises provided: (i) Tenant obtains a replacement value $100,000 waterbed insurance policy and delivers a copy to Landlord; (ii) the waterbed does not exceed the floor load for the Premises; (iii) the waterbed is held together by a pedestal or frame; (iv) the Tenant installs, maintains and moves the waterbed in accordance with the manufacturer's retailer's standards; (v) the Tenant gives Landlord at least 24 hours' prior written notice of Tenant's intention to install, move or remove (as applicable) the waterbed and arranges for a Landlord representative to be present when this occurs; (vi) the waterbed has a label certifying that it conforms to construction standards imposed by the State Bureau of Home Fumishings; and (vii) the waterbed was constructed after January l, 1973. SMOKING: lf smoking occurs on the Premises, Tenant is responsible for all damage caused by the smoking including, but not limited to, stains, burns, odors and removal of debris; and Tenant acknowledges that in order to remove odor caused by smoking, Landlord may need to take certain actions such as replacing carpet and drapes and painting entire premises regardless of when these items were last cleaned or replaced. Such actions and other necessary steps will impact the retum ofany security deposit. RULES/REGULATIONS: A. Tenant shall comply with the Rules and Regulations attached hereto as Exhibit "B" B. Tenant agrees to comply with all other Landlord rules and regulations that are delivered to Tenant. Tenant shall not, and shall ensure that guests and licensees of Tenant shall not, disturb, annoy, endanger or intert'ere with other tenants (if any) or neighboni, or use the Premises tbr any unlawful purposes, including, but not limited to, using, manufacturing, selling, storing or transporting illicit drugs or other contraband, or violate any law or ordinance, or commit a waste or nuisance on or about the Premises. E (If checKed) CONDOMINIUM; PLANNED UNIT DEVELOPMENT: The Premises is a unit in a condominium, planned unit development, common interest suMivision or other development govemed by a homeowners' association ("HOA*). The name of the HOA is lJ. 15. 16. 17. ,4dopted l/25/12 Page 5 of l8 Tenant agrees to 18. comply with all HOA covenants, conditions and restrictions, bylaws, rules and regulations and decisions, and Landlord has provided or shall provide Tenant with copies of them. Tenant shall reimburse Landlord for any fines or charges imposed by HOA or other authorities due to any violation by Tenant, or the guests or Iicensees ofTenant. EQUIPMENT; ALTERATIONS; REPATRS: Unless otherwise required by law, without Landlord's prior written consent: (i) Tenant shall not make any repairs, alterations or improvements in or about the Premises including: painting, wallpapering, adding or changing locks, installing antenna or satellite dish(es), placing signs, displays or exhibits, or using screws, t'astening devices, large nails or adhesive materials; (ii) Landlord shall not be responsible for the costs of alterations or repairs made by Tenant; (iii) Tenant shall not deduct Iiom Rent the costs of any repairs, alterations or improvements; and (iv) any deduction made by Tenant shall be considered unpaid Rent. Any equipment, fixrures, or improvements (including, without Iimitation, water treatment and water tiltration equipment) installed by the Landlord (whether purchased by the Landlord or the Tenant) shall remain the property ofthe Landlord and shall remain on the Premises after the expiration or earlier termination of the Lease. Any equipment, fixtures, or improvements (including, without limitation, t'encing) shall only be installed by the Tenant after written approval by the Landlord and shall become the property ofthe Landlord at the expiration or earlier termination ofthe Lease. The Landlord may require the Tenant to remove any such equipment, tixtures, or improvements (whether installed by the Landlord or the Tenant) and restore the Premises to their original condition at the Tenant's expense. Any appliances installed or placed in the Premises by the Landlord shall remain the property of the Landlord and shall not be removed by the Tenant. KEYS; LOCKS: A. Tenant acknowledges receipt of (or Tenant will receive prior to the Commencement Date): n key(s) to the Premises tr remote control device(s) for garage door/gate opener(s) ! for apartments and condominiums, _ key(s) to mailbox ! for apartments and condominiums, key(s) to common area(s) ! for apartments, key(s) to storage unit(s) IfTenant re-keys existing locks or opening devices (with or without Landlord's consent), Tenant shall immediately deliver copies of all keys to Landlord. Tenant shall pay all costs and charges related to loss ofany keys oropening devices. Tenant may not remove locks, even ifinstalled by Tenant. 19. B. ,4dopred l/25/12 Page 6 of l8 20.ENTRY: A. Tenant shall make Premises available to Landlord or Landlord's representative for the purpose of entering to make necessary repairs, or improvements, or to supply necessary or agreed services, or to show Premises to prospective or actual purchasers, tenants, mortgagees, lenders, appraisers, or contractors. B. Landlord and Tenant agree that 24-hour written notice shall be reasonable and suffrcient notice, except that 48-hour written notice is required to conduct an inspection of the Premises prior to the Tenant moving out, unless the Tenant waives the right to such notice. Notice may be given orally to show the Premises to actual or prospective purchasers provided Tenant has been notified in writing within 120 days preceding the oral notice that the Premises are for sale and that oral notice may be given to show the Premises. No notice is required: (i) to enter in case of an emergency; (ii) if the Tenant is present and consents at the time of entry or (iii) if the Tenant has abandoned or surrendered the Premises. No written notice is required if Landlord and Tenant orally agree to an entry for agreed services or repairs. SIGNS: Tenant authorizes Landlord to place FOR SALE/LEASE signs on the Premises. ASSIGNMENT AND SUBLET"TING: Tenant shall not sublet all or any part of Premises, or assign or transfer this Lease or any interest in it. Any assignment, transfer or subletting of Premises or this Agreement or tenancy, by voluntary act of Tenant, operation oflaw or otherwise, shall terminate this Lease. JOINT AND SEVERAL OBLIGATIONS: lf there is more than one Tenant, each one shall be completely responsible for the performance of all obligations of Tenant under this Lease, jointly and severally with every other Tenant, whether or not in possession. n leeo-naSED PAINT (If checked): The Premises were constructed prior to 1978. In accordance with t'ederal law, Landlord gives and Tenant acknowledges receipt of the disclosures on the attached Exhibit "C" and a federally approved lead pamphlet. ! ffruOotC PEST CONTROL (If checked): Landlord has entered into a contract for periodic pest control treatment of the Premises and shall give Tenant a copy of the notice originally given to Landlord by the pest control company. MEGAN'S LAW DATABASE DISCLOSURE: Notice: Pursuant to Section 290.46 of the Penal Code, information about specified registered sex offenders is made available to the public via an Intemet Web site maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on an ofTender's criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she resides. (Landlord is not required to check this website. If Tenant wants further information, Tenant should obtain information directly from this website.) 21. ,, 23. 21. ,( 26. .ldopted l/25/12 Page 7 of lE )1 2E. 29. MOLD AND MILDEW WARNING NOTICE: Mold and mildew may be injurious to one's health; therefore, Tenant acknowledges that: (a) Tenant has inspected the Premises, and every part thereof, at the outset of the tenancy; (b) Tenant has found no sigls of moisture, mold or mildew thereint (c) Tenant shall: (i) keep the Premises well-ventilated, clean and dry any signs of mold or mildew lrom all surfaces, (ii) promptly notify Landlord of any dampness (from leaks, overflows, water intrusion, etc.); and (iii) promptly notiry Landlord of any mold, as well as any malfunction of ventilation, air conditioning or heating systems. Tenant shall be liable for any costs, expenses, injuries, damages and claims that may result from any failure to perform the foregoing duties. TOXIC SUBSTANCE WARNING: Landlord is required to give you notice that areas on this property contain or may contain one or more of some 700 + toxic substances and chemicals substances, such as swimming pool disinfectant, cleaning substances, automobile exhaust fumes, barbeque or second-hand cigarette smoke, laundry room tluids or emissions, lead paint, asbestos, etc., known to the State of Califomia to cause cancer, reproductive toxicity, birth defects and reproductive harm. TENANT'S OBLIGATIONS UPON VACATING PREMISES: A. Upon the expiration or earlier termination of this Lease, Tenant shall: (i) give Landlord all copies of all keys or opening devices to Premises, including any mailboxes, pools, gates, common areas and all garage door openers; (ii) vacate and surrender Premises to Landlord, empty of all personal property and persons; (iii) vacate anylall parking and/or storage space; (iv) clean and deliver Premises to Landlord in good and broom-clean condition; (v) remove all debris; and (vi) give written notice to Landlord ofTenant's forwarding address. B. All alterationVimprovements made by or caused to be made by Tenant, with or without Landlord's consent, shall become the property of Landlord upon the expiration or earlier termination of this Lease. Tenant shall reimburse Landlord, as additional Rent, within ten ( I 0) days after written demand for costs of restoration of the Premises to the condition they were in prior to any alterationVimprovements that were not approved in writing by Landlord. TEMPORARY RELOCATION: Subject to local law, Tenant agrees, upon demand of Landlord, to temporarily vacate Premises for a reasonable period, to allow for fumigation (or other methods) to control wood destroying, pests or organisms, or other repairs to Premises. Tenant agrees to comply with all instructions and requirements necessary to prepare Premises to accommodate pest control, fumigation or other work, including bagging or storage of food and medicine, and removal of perishables and valuables. Tenant shall only be entitled to a credit of Rent equal to the per diem Rent for the period of time Tenant is required to vacate Premises. Unless Landlord expressly agrees in writing to pay relocation benefits, Tenant hereby waives any and all rights it may have to relocation benefits under Califomia law. DAMACE: If, by no t'ault of Tenant, Premises are totally or partially damaged or destroyed by fire, earthquake, accident or other casualty that render Premises totally or 30. 31. Adopted l/25/12 Page 8 of lt 32. partially uninhabitable, either Landlord or Tenant may terminate this Agreement by giving the other written notice and Rent shall be abated as of the date Premises become totally or partially uninhabitable. If the Premises is an apartment unit or condominium, then Landlord may terminate this Lease upon written notice to Tenant if damage to the apartment or condominium complex occurs which will cost in excess of 20% of the replacement cost of the complex to repair. lf this Lease is not terminated, Landlord shall promptly repair the damage, and Rent shall be reduced based on the extent to which the damage interferes with Tenant's reasonable use of Premises. If damage occurs as a result ofan act of Tenant or Tenant's guests, only Landlord shall have the right of termination, and no reduction in Rent shall be made. INSURANCE: Tenant's or guest's personal property and vehicles are not insured by Landlord, manager or, if applicable, HOA, against loss or damage due to fire, theft, vandalism, rain, water, criminal or negligent acts ofothers, or any other cause. Tenant is advised to carry Tenant's own insurance to protect Tenant from any such loss or damage. Tenant shall comply with any requirement imposed on Tenant by Landlord's insurer to avoid: (i) an increase in Landlord's insurance premium (or Tenant shall pay for the increase in premium); or (ii) loss of insurance. WAIVER: The waiver of any breach shall not be construed as a continuing waiver of the szrme or any subsequent breach. NOTICES: Notices may be served at the following address, or at any other location subsequently designated: Landlord: City of Vemon Tenant: To the Premises 4305 South Santa Fe Avenue Vemon, CA 90058 Attn: City Clerk TENANT ESTOPPEL CERTIFICATE: Tenant shall execute and retum, from time to time, a tenant estoppel certificate delivered to Tenant by Landlord, containing such information regarding this Lease and the Premises as Landlord may request, within five (5) business days. Failure to comply with this requirement shall be deemed Tenant's acknowledgrnent that the tenant estoppel certificate is true and correct, and may be relied upon by Landlord and a lender or purchaser. TENANT REPRESENTATIONS; CREDIT REPORTS: Tenant warrants that all statements in Tenant's rental application are accurate, and Tenant hereby authorizes Landlord to obtain Tenant's credit report periodically during the tenancy in connection with the modification or enforcement of this Lease. Landlord may cancel this Lease: (i) before occupancy begins, upon disapprova[ of the credit report(s); or (iii) at any time, upon discovering that material information in Tenant's application is false. A negative credit report reflecting on Tenant's record may be submitted to a credit reporting agency if Tenant fails to fultill the terms of payment and other obligations under this Agreement. -j3. 3{. 35. 36. ,4dopted I /25/12 Page 9 of l8 37.MEDIATION: A, Subject to Section 37B below, Landlord and Tenant agree to mediate any dispute or claim arising between them out of this Agreement, or any resulting transaction, before resorting to court action. Mediation fees, if any, shall be divided equally between Landlord and Tenant. If, tbr any dispute or claim to which this Section applies, any party commences an action without tirst attempting to resolve the matter through mediation, or refuses to mediate after a request has been made, then that party shall not be entitled to recover its attomeys' fees, even if they would otherwise be available to that party in any such action. B. The following matters are excluded from mediation: (i) an unlawful detainer action; (ii) any matter within the jurisdiction of a probate, small claims or bankruptcy court; (iii) an action tbr injunctive reliefl (iv) an action for attachment. ATTORNEYS' FEES: In any action or proceeding arising out of this Lease, the prevailing pa(y between Landlord and Tenant shall be entitled to reasonable attomeys' fees and costs, except as provided in Section 37A above. ENTIRE CONTRACT; SEVERABILITY; AMENDMENTS: All understandings between the parties are incorporated in this Lease. The terms are intended by the parties as a final, complete and exclusive expression of their agreement with respect to its subject matter, and may not be contradicted by evidence ol any prior agreement or contemporaneous oral agreement. If any provision of this Lease is held to be inetTective or invalid, the remaining provisions will nevertheless be given full force and effect. Neither this Agreement nor any provision in it may be extended, amended, moditied, altered or changed except in writing. 3E. 39. 42. {-1. {0. .l l. ! rrmnnauoN oF EXISTING LEASE (tf checked): Date, the existing Lease between Landlord and Tenant terminate. Upon the Commencementdated shall LANDLORD IS ACTING IN ITS PROPRIETARY CAPACITY (NOT GOVERNMENTAL CAPACITY): In entering into this Lease, Landlord is acting in its proprietary capacity as a party to a contract, and not in its govemmental capacity; consequently, nothing in this Lease shall be construed to modify or waive Landlord's rights in its govemmental capacity, all of which are hereby reserved. INDEMNITY: Tenant shall defend, indemnity and hold Landlord harmless from and against any and all claims, liabilities, Leases, damages, costs and expenses arising from, or relating to, any act or omission by Tenant or any Authorized Occupant, or guest, licensee, contractor, sublessee or assignee ofTenant, in, on or about the Premises. TIME OF ESSENCE: Time is of the essence of each and every provision of this Lease in which time is a tactor. Adopred l/)5/12 Page l0 of I E {{. {5. 16. 17. EXECUTION IN COUNTERPARTS: Counterpart originals of this Lease may be executed, each of which, and all of which together, shall constitute one and the same agreement. POSSESSORY INTEREST TAX: Landlord hereby intbrms Tenant that a form of property tax called a "possessory interest tax" may apply to Tenant's interest under this Lease. Tenant shall pay all such possessory interest taxes, as assessed to Tenant, before they become delinquent, and may submit proof of payment of such tax to Landlord for prompt reimbursement. WAMR OF RELIEF FROM FORFEITURE: To the extent not prohibited by law, Tenant hereby waives and agrees not to assert any rights or benefits under Califomia Code of Civil Procedure Section 1179 permitting a court to relieve a tenant liom forfeiture ofa Lease and restore him to or her to tenancy in the case of"hardship". COMMISSION AUTHORITY TO AMEND: The Vemon Housing Commission ("VHC') shall have the authority (but not any obligation) to amend this Lease on behalf of the City provided the amendment is express, in writing and executed by the VHC Director and the Tenant. Compliance With Laws: Neither Tenant, nor Tenant's guests or invitees, shall violate any law or commit or permit any waste, damage to, or nuisance in or about, the Premises, or in any way annoy any other tenant, or operate any business in or about the Premises, or do or keep anything in or about the Premises that will obstruct the common areas or usage thereof, or increase Landlord's insurance premiums. Non-Curable Breach of Agreement: The following, by way of illustration and not limitation, shall constitute a non-curable breach of this Agre€ment: (a) Police raid upon the Premises resulting in the anest and conviction of Tenant tbr possession/sale/storage ofany illegal narcotic/controlled substance/chemical or herbal contraband, in or about the Premises, or for aiding and abetting any family member, occupant, guest or visitor in any such activity; (b) Misrepresentation or material omission on Tenant's Rental Application vitiating the tenancy. Priority Right to Purchase Housing Units for Tenants Who First Leased a Housing Unit on or before July 7, 20ll: lfTenant tirst Leased and occupied the Premises on or betbre July 7, 201 I , regardless of the effective date of this Lease, and if the Premises is offered tbr sale, Tenant shall have a priority right to purchase the Premises, subject, however, to the Califomia Attomey General approving of this grant of a priority right. If the Califomia Attomey General does not approve of the granting of this priority right, no such priority right shall exist. (Conrinued on Ne\, Page) -t8. {9. 50. Adopted l/25/12 Page ll of 18 tN WITNESS WHEREOF, Landlord and Tenant have executed and delivered this Lease as of the date first written above. LANDLORD: CITYOFVERNON, a Califbmia municipal corporation By: Mark C. Whitworth City Administrator and VHC Director ATTEST: Maria E. Ayala. City Clerk TEr*AN'I: Print Name: Print Name: Adopted I /)5/l )Page l2 of I 8 EXHIBIT *A" PET AGREEMENT (Attached; .) .klopted l/25/l) Page 13 of l8 PET AGREENIENT LANDLORD: TENANT: PREMISES: DoG(S): Breed(s): Name(s): cAT(s): Breed(s): Name(s): Tenant, in consideration of this agreement which is incorporated into the rental agreement, shall abide by the tbllowing terms, each of which is material: ) Pet(s) allowed: The only pet(s) which the tenant shall keep on the prernises are described above. Repair and/or Replacement: Tenant shall either, at the sole election of the landlord, repair in a workmanlike manner or reimburse the landlord for the costs of said repair, upon a demand contained in a three day notice to perform or quit, any damages to the premises or its fumishings and improvements, caused by the pet(s). Dogs: Dogs must be neutered. Dogs must be leashed, at all times, outside the premises. Dogs shall not be allowed to defecate on or about the premises. Any such defecation must be immediately removed and either wrapped or bagged. Unwrapped defecation shall not be placed in any trash container. Dogs must not bark or howl or in any way become a nuisance or threat to the other tenants of the premises. Dogs shall be kept free of fleas and tenant is responsible tbr the costs ofany and all flea infestation treatment which may be required, at the sole discretion of the landlord. Tenant represents that their dog(s) is/are housebroken. Cats: Cats must be neutered. Cats must be kept inside the premises at all times unless the premises is a single family dwelling. A litter box must be maintained inside the premises and it must be kept clean. Litter must be bagged before being placed into trash. Feeding: No pet may be fed outside the dwelling unit except if the unit is a single family dwelling, or fed over any uncovered carpeting. Laws and ordinances: Tenant shall obey all pertinent laws and ordinances. 5. t. 3. 4. 6. .ldopted l/25/12 Page l,l of I E Tenant 7. Breach ofCovenant: The breach ofany covenant of this agreement, following the service of a three day notice to perform or quit on the tenant, shall be deemed a material breach of the rental agreement and will entitle the landlord to restitution of the premises, and such other damages as may be recoverable pursuant to the terms of the rental agreement. 8. Unattended Pet: No pet shall be left unattended for more than twenty-four hours. When tenant is on vacation or away from the premises for more than twenty-four hours, the pet must be taken to a pet care facility. Strangers to the tenancy shall not be allowed to enter the premises to care for the pet. 9. Abandonment of Pet: Any pet left at the premises following either voluntary vacation by the tenant or lockout puniuant to court order shall be deemed abandoned. The landlord has no responsibility tbr the care, feeding, and maintenance of the pet, and may immediately tum the pet over to any local animal control authority. 10. Complete Agreement: This is the complete agreement between the parties conceming Pet(s). I l. Modification of Agreement: This agreement may only be modified by an agreement in writing signed by both parties. 12. Waiver: The acceptance of rent by the landlord from the tenant after a breach or purportd breach of this agreement shall not be considered a waiver ofany covenant herein. 13. lndemnity and Hold Harmless: The tenant shall indemni$ the landlord and hold the landlord harmless from any and all damages, inconveniences, and nuisance which may be caused by the pet, and will reimburse landlord for all expenses occasioned thereby. 14. Liability insurance covering injuries or damages caused by Tenant's pet(s), with a minimum limit per incident as specified by Landlord, showing Landlord as an additional insured, shall be purchased by Tenant and kept in effect during the tenancy on Landlord's demand. Date Tenant Date Landlord Adopted l/25/12 Page l5 of 18 Date 1 l. l. ll. EXHIBIT "8" RULES AND RECULATIONS Landlord is not responsible for providing any security, and shall not be responsible for fire, theft of personal prope(y, including jewelry, money, apparel or other items in the Premises, storage areas, carports, garages, common area or mailboxes. No unnecessary noise is allowed at any time. All musical instruments, television sets, radios, stereos, etc. are to be played only at a volume that does not disrurb neighbors and other residents. All appliances including garbage disposal and dishwasher are to be operated only in accordance with factory recommendations, instructions delivered to you or posted instructions. No alterations may be done without prior written consent from Landlord. Any drapes and carpets must be given good care and kept free of spots, bums and other damage. Notwithstanding the foregoing, ifa Tenant paints a unit, upon move-out, the Tenant must re-paint the unit in its original color, or will be held financially liable for the cost of re- painting the unit. Cost of repairs to or stoppage of, waste pipes or drains, water pipes, plumbing fixtures or overflow therefrom caused by negligent or improper usage, or the introduction of foreign articles or materials into the system, will be the responsibility of and must be paid for by the Tenant. With respect to apartments and condominiums, no rugs, towels, articles of clothing or other such items are to be draped over the rails of balconies, and no mops or rugs are to be shaken liom same or through window openings. The storage of gasoline or other combustibles is prohibited. Residents are responsible for the conduct of their licensees, guests and contractors and the adherence to these rules at all times. Intoxication, disorderly conduct, objectionable language or other disturbance by residents or visitors are not permitted. No trash or other material may be accumulated that will create a hazard or be in violation of any health, fire or satbty ordinance or regulation. Premises must be kept clean and sanitary and free from objectionable odors. Vehicles parked in violation ofthe Lease may be towed away at the Tenant's expense. If the Premises consists of an apartment or condominium unit, no personal belongings, including bicycles, equipment or other items may be placed in halls, stairways or q4y common areas except in areas where expressly allowed by posted sigrage. 4. 5. 9. 10. 6. 7. Adopted lD5/12 Page 16 of I E EXHIBIT "C" EPA LEAD BASED PAINT DISCLOSURE FORM (Attached; to be completed bv Landlord. and executed and dated by Tenant.) Adopted l/15/12 Page 17 of I E Lead Warning Statement Housing built before 1978 mav contain lead-based paint. Lead .from paint, paint chips, and dust can pose heallh hazards ifnot managed properly. Lead exposure is especially hormft to ltoung children and pregnant v'omen. Before renling pre-1978 housing, lessors must disclose the presence of known lead-based paint antl/or lead-based painl ha:ards in the dwelling. Lessees must also receive a.federallv approt'ed pomphlet on lead poisoning prevention. Lessor's Disclosure(a) Presence oflead-based and/or lead-based paint hazards (check (i) or (ii) below): (i)-Known lead-based paint and/or lead-based paint hazards are present in the housing (explain). (ii)_Lessor has no knowledge of lead-based paint and/or lead-based paint hazards in the housing. (b) Records and reports available to the lessor (check (i) or (ii) below): (i)_Lessor has provided the lessee with all available records and reports pertaining to lead-based paint and/or lead-based paint hazards in the housing (list documents below). (ii)_Lessor has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in the housing. Lessee's Acknowledgment (initial) (c)-Lessee has received copies of all information listed above. (d)-Lessee has received the pamphlet Protect Your Famil.v from Lead in Your Home. Agent's Acknowledgment (initial) (e)-Agent has informed the lessor of the lessor's obligations under 42. U.S.C. 4852d and is aware ofhiVher responsibility to ensure compliance. Certification of Accuracy The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate. Premises: Lessor: City of Vemon By: Adopred l/25/12 Date DatcLesseeLessee Page lt of l8 STAFF REPORT CITY ADMINISTRATION DATE: TO: FROM: RE: March 9,2016 Honorable Vernon Housing Commission A.J. Wilson, Interim City Administrator/Commission Direct Originator: Kristen Enomoto, Deputy City Administrator Public Hearing Regarding Preliminary S-Year Market Rent Schedule for all City-Owned Housing Units in Vernon Recommendations A. Find that the review of the Preliminary 5-Year Market Rent Schedule is exempt from the Califomia Environmental Quality Act ('CEQA), because such review is a continuing administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines Section I 5378, and that even ifsuch were a project, it would be exempt in accordance with CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Hold a public hearing on the Preliminary S-Year Market Rent Schedule to obtain oral and written testimony. C. Hold a discussion regarding the Preliminary 5-Year Market Rent Schedule based on any testimony provided during the public hearing. D. Provide direction to stalf regarding what the Commission would like to consider for adoption or further discussion at the special Housing Commission meeting slated for April 6,2016. Background At a special meeting held on February 10, 2016, the Housing Commission ("Commission") developed a Preliminary 5-Year Market Rent Schedule ("Rent Schedule") for all City-owned housing units in Vemon. The Rent Schedule was developed based on written reports and oral Page I of2 presentations from two of the three independent, qualified appraisers utilized by the Commission in 201 I to determine initial market rents for all units. With comparative data now available, the Commission focused its attention on the growth rate expressed when comparing the 201 I appraisal results to the 2016 appraisal results. One appraiser indicated an average growth rate of l8% over the S-year period, while the other appraiser indicated an average growth rate of25%o over the same 5-year period. The Commission elected to apply the average ofthose two rates, approximately 22o/o, to the existing rates established in 201 l, in order to determine what market rents should be today. Additionally, the Commission applied a growth rate projection of22%o to said rates over the next fiveyears(or 4.4%o per year) in an effiort to ensure rents would remain at market levels over the next five years. In order to avoid potential tenant tumover (and the additional associated costs) that may result Iiom a sharp increase in rents, the Commission developed a "smoothing" approach or "catch-up" rate for existing tenants. Under the Commission's proposal, existing tenants would remain at their current rents and see a combined 8.8% increase (4.4% "catch-up" rate * 4.4%o growth rate projection) each of the next five years. Rents for new tenants would be set at the current market rates (approximately 22o/ohigher lhan current rates for existing tenants), and increase by the 4.4oh growth rate projection each of the next five years. Under this proposal, both existing and new tenants would arrive at the same market rent for the same unit by 2021. Fiscel Imoact Based on the projected August l, 2016 effective date of the Preliminary S-Year Rent Schedule, the housing stock could expect to generate approximately $314,036 (full occupancy of existing tenants) to $367,630 (full occupancy of new tenants) in the first year. This does not account for any vacancies or loss of revenue during turnover, nor does it factor in additional rent values that may apply to any of the seven units curently under remodel consideration by the City Council. Using this approach, the range of rental income that could be generated over the following four years is as follows: . Year2: $341,671 to $383,806. Year 3: $371,738 to $400,693. Year4: $404,451 to $418,324. Year5: $436,730 1o$436,730 At full occupancy under the current rental rates, the housing stock would generate approximately $288,636 in annual revenue! not accounting for any vacancies or loss of revenue during tumover. Attachment(s) 1. Sample Letter to Tenants re Public Hearing Vattachments 2. February 10,2016 Housing Commission Staff Report re Review of 2016 Market Rent Data 3. Growth Rate Comparison Charts Presented at February 10, 2016 Housing Commission Meeting Page 2 of 2 Vernon Housing Commission Appeal Procedures for Existing Tenants Experiencing Transitional Hardship Adopted July 18, 2012 Pursuant to Ordinance 1183 and the Vernon Rental Housing Policy (“VRHP”), the Vernon Housing Commission (“VHC”) hereby adopts the following appeal procedures for existing tenants who experience a particularized hardship in complying with the VRHP. The appeal procedures stipulated below shall apply only to existing tenants whose tenancies were in effect as of July 8, 2011. 1. Definition of “Hardship” Generally: Something that causes or entails significant difficulty in complying with the VRHP. 2. Definition of “Financial Hardship”: A “Financial Hardship” shall exist if a leasee’s monthly gross household income is less than two times the then current rent for the unit he/she currently leases. “Gross Household Income” shall include all income from all leasees and authorized occupants of a housing unit. 3. Appeal Procedures for Tenant Experiencing Financial Hardship: a. Financial Hardship Application Form: Leasee shall complete and submit an application form that contains sufficient financial information from which the VHC may evaluate the leasee’s financial condition. The VHC Director shall create an appropriate form for this purpose. A copy of leasee’s and any authorized occupant(s)’ most current federal and state income tax returns must be attached to said application, or if the tax returns are unavailable, provide an explanation as to why the tax returns are unavailable. Both leasees and authorized occupants also must submit the most recent three months of pay stubs or equivalent documentation of current wages, if any. To the extent legally permissible, the VHC shall maintain the confidentiality of the Financial Hardship Application and any documentation submitted in support of it. Verification/Relief: If the VHC confirms that a leasee suffers a Financial Hardship, the leasee’s rent shall be adjusted such that the leasee shall be charged rent equivalent to one-half of the combined monthly gross household income of all individuals occupying the housing unit. b. Recertification: Prior to each prospective lease renewal, leasee must re-certify any Financial Hardship by submitting to the VHC a new Financial Hardship Application Form and the required supporting documentation (tax returns and pay stubs). No recertification of Financial Hardship may be found unless all required supporting documentation is provided, or a separate certification that some or all of the supporting documentation does not exist (no wages) and need not exist (not required to file tax returns). 4. Priority to Lease More Affordable Unit: An existing leasee with a Financial Hardship shall have a priority over new lessees on any more affordable unit that becomes available, and shall be required to move to such unit upon availability in order to maintain eligibility for a Financial Hardship finding by the VHC. Refusal to move to a more affordable unit shall result in the immediate discontinuation of any Financial Hardship accommodation. Leasee shall continue to have priority in leasing a more affordable unit so long as a Financial Hardship exists and is verified at the time the leasee desires to move to a more affordable unit. 5. Other Transitional Hardships: Any transitional hardship other than a Financial Hardship experienced by an existing leasee in complying with the VRHP shall be explained in writing and submitted to the VHC. Such writing shall contain sufficient detail to explain clearly the existing hardship and the relief being sought. 6. The VHC shall promptly consider all transitional hardships on a case by case basis. The VHC Director shall make a recommendation to the VHC regarding whether to grant an accommodation, and if an accommodation is recommended, the nature and scope of the accommodation. The VHC shall make the final decision as to whether any accommodation is granted, and if so, the nature and scope of any such accommodation. Although the VHC shall not be required to call a special meeting solely for the purpose of considering a hardship, all hardship considerations shall be considered by the VHC as promptly as is reasonably possible. Page 1 of 2 Updated 10/01/12 Vernon Housing Commission Financial Hardship Application Form Pursuant to the Vernon Housing Commission’s Appeal Procedures for Existing Tenants Experiencing Transitional Hardship, adopted on July 18, 2012, the named leasee below, who resides at the address indicated below, hereby applies for a rent reduction based on his/her financial hardship. Name(s) of Leasee(s): ___________________________________________________________ Address of Leasee(s): ____________________________________________________________ Brief Description of Financial Hardship (Why do you need relief?): ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Combined Gross Monthly Income of all named leasee(s) and authorized occupants: $_________ How much do you believe you can pay in monthly rent? $_______________________________ How long do you believe you will need relief? ________________________________________ Required Documentation. Please submit the following documents along with this Application: 1. Most current federal and state tax returns for each named leasee and authorized occupant. 2. Pay stubs or equivalent documentation for the past three months for each named leasee and each authorized occupant. 3. Any other documentation you want the Vernon Housing Commission to consider regarding your Application. If you are not submitting either required tax returns and/or pay stubs, please explain why not: ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 Updated 10/01/12 Vernon Housing Commission Financial Hardship Application Form Certification I/We, ______________________________________________ (name/s), the named leasee(s) for the unit located at _______________________________________________ (address), hereby certify that the information provided on this Application is true and correct. I/We further certify that the documents I/we have provided in connection with this Application are true and correct copies of the originals of said documents. I/We declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Executed this ____________ day of _______________ at Vernon, California. ____________________________________ (Signature) ____________________________________ (Print Name) ____________________________________ (Signature) ____________________________________ (Print Name) Submit the completed Application, Required Documentation, and Certification to: Vernon Housing Commission 4305 Santa Fe Avenue Vernon, CA 90058 Attn: Commission Director/City Administrator RECEIVED MAR 0 7 2016 CWCLERKSOFITCESTAFF REPORT CITY ADMINISTRATION DATE: TO: FROM: RE: March 9,2016 Honorable Vernon Housing Commission A.J. Wilson, Interim City Administrator/Commission Direc( Originator: Kristen Enomoto, Deputy CiE" Administrator Creation of a One-Time Relocation Priority Interest List for the Six Tenants in Non-remodeled City-owned Housing Units Recommendation: A. Find that the creation ofa One-Time Relocation Priority Interest List for tenants in non- remodeled units is exempt from the Califomia Environmental Quality Act C'CEQA), because the creation of such a list is a continuing administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines Section 15378, and that even if such were a project, it would be exempt in accordance with CEQA Guidelines Section 15061(bX3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Authorize staff to create a One-Time Relocation Priority Interest List for the six tenants in non-remodeled City-owned housing units, related to the 2016 City Housing Remodel Project currently under consideration by the City Council. Beckground Two tenants in two separate City-owned properties recently notified City Housing staff that they will be vacating their units as of March 31, 2016. Both of the units were remodeled in 200712008. There is currently one tenant on the Unit-to-Unit Transfer List established at the December 2015 lottery that has expressed potential interest in leasing one ofthe units. It has come to stafPs attention that the additional vacancy creates a special, one-time opportunity to further expedite the Commission's market rent policy objective, and could further ease the Page I of2 logistical demands related to the 2016 City Housing Remodel Project. As such, it is recommended that the Commission authorize staff to create a One-Time Relocation Priority Interest List for the six tenants in non-remodeled units to provide an option for said tenants to permanently relocate to one of the soon-to-be vacant units, as well as to any other previously remodeled unit that may become available before the 2016 City Housing Remodel Project comnences, or before the affected tenant would need to be relocated as part ofsaid project. If authorized to proceed, below are generally the steps that staff proposes to follow: l. Notifu all six tenants of the one-time, special opportunity to relocate to the vacant 200712008 remodeled unit and enter into a new one-year lease for said unit at the then current full market rate. 2. Conduct a lottery ofall interested subject tenants to establish the priority interest list. 3. Once any adjustments in rents have been adopted by the Commission, perform the lease- up process for the tenant who is first on the priority list. 4. Provided there are remaining tenants on the priority list, keep the list active until any 2016 remodel work commences, and follow steps I through 3 for any additional 200712008 remodeled units that may become available during that period. It is proposed that the opportunity to join the One-Time Relocation Priority List be offered only once to all six subject tenants and be utilized only as it relates to the 2016 City Housing Remodel Project. Fiscal Imoact Provided at least one ofthe six tenants in non-remodeled units elected the relocation option, two units would immediately achieve full market rent (the one the subject tenant vacates and the one he/she moves into). Additionally, the City would avoid any relocation costs in order to perform any remodel work on that unit. Attachment(s) None. Page2 of?