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Home My WebLink About _ 4.2(c)--Good News Rescue Mission Provider Operational AgreementMEETING DATE: ITEM NO. sbade@citydredding.org REPORT TO THE CITY COUNCIL June 3, 2025 FROM: Steve Bade, Assistant City 4.2(c) Manager ***APPROVED BY*** Leve a F , s er 5/28/2025 SUBJECT: 4.2(c) --Authorize and Approve a Provider Operational Agreement with the Good News Rescue Mission. Recommendation Authorize and approve the following actions relative to the Good News Rescue Mission's Day Resource Center: (1) Authorize the City Manager, or designee, to execute the Provider Operational Agreement with the Good News Rescue Mission; (2) Find that entering into a Provider Operational Agreement is not considered a project under the California Environmental Quality Act, the actual construction of the project was previously reviewed for California Environmental Quality Act compliance; and (3) Find that entering into a Provider Operational Agreement is exempt under the National Environmental Policy Act under Title 24 CFR 58.34(a)(3). Fiscal Impact There is no General Fund fiscal impact related to this report. Alternative Action The City Council (Council) could choose not to authorize the City Manager to execute the Provider Operational Agreement (Operational Agreement) or provide alternate direction to staff. Without an operational agreement, the Good News Rescue Mission (GNRM) would operate the Day Resource Center (DRC) without formal oversight or enforceable obligations, despite the requirement under the Development Funding Agreement (DFA) to provide and adhere to an Operational Agreement. Report to Redding City Council May 28, 2025 Re: 4.2(c) --Good News Rescue Mission Provider Operational Agreement Page 2 Background/Analysis On September 21, 2023, the Encampment Resolution Funding 3-L (ERF -3-L) Program Standard Agreement was executed in the amount of $8,354,955. The purpose of the ERF -3-L grant is to support outreach, provide supportive services, and facilitate connections to shelter for those living in the Linden/Mercy Canyon and Progress/Technology Way encampments. On. November 21, 2023, Council approved ERF -3-L funds for development of a DRC. On December 19, 2023, Council directed staff to negotiate a DFA with GNRM for $3,000,000 to support the acquisition and development of the DRC at 3145 Veda Street (Property). In addition, staff was instructed to negotiate an Operational Agreement and return to Council within 180 days. On August 20, 2024, Council extended the timeline for consideration of the Operational Agreement. In March 2024, the GNRM finalized the acquisition of the property and has since conducted five community meetings for input on the DRC operations and design. The community feedback received through these sessions has directly informed both the architectural design and operational framework of the DRC. Staff negotiated the Operational Agreement with the GNRM and has been reviewed by the City Attorney's office. The purpose of the attached Operational Agreement is to articulate the scope of services to be delivered to DRC consumers and to help guide the GNRM in what information should be included in the GNRM's specific DRC Operational Plan (GNRM Plan) that is to be submitted to the Council for approval, 180 days prior to the completion of the DRC rehabilitation project. The subject Operational Agreement requires the GNRM Plan be completed by September 30, 2026. In general, the DRC's program focus is to centralize and streamline access to a spectrum of interventions and services to support persons experiencing homelessness, including those coming out of encampments, with the final objective of connecting the participants to housing. The programming will provide a welcoming and safe environment where participants can access local case management, educational and volunteer opportunities, medical and mental health care, and a supportive community network to help direct and achieve their journey to obtain housing. Additionally, the Operational Agreement outlines the requirements related to site management, service coordination, data collection, reporting, and program evaluation and the overall written policies and procedures governing the operation and administration of the DRC. Upon receipt of the GNRM Plan, staff will present a Funding Agreement to Council to support staff -related operational costs of the DRC. The GNRM anticipates the DRC project will begin construction July 2025. The building permits have been approved and issued by the Development Services Department with an encroachment permit pending. GNRM and its engineering team has been diligently working on finalizing design revisions related to the sewer main and lateral connections. Once the encroachment permit is issued, the project will proceed into the bidding phase. The DRC is estimated to be operational by September 2026. Report to Redding City Council May 28, 2025 Re: 4.2(c) --Good News Rescue Mission Provider Operational Agreement Page 3 Environmental Review Approving the Operational Agreement is not considered a project under California Environmental. Quality Act (CEQA). The actual construction of the project was previously reviewed for CEQA compliance. Under the National Environmental Act (NEPA), administrative and management activities such as approving agreements are considered exempt activities and no further action is required. The actual construction of the project was reviewed for NEPA requirements before the project started. Council Priority/City Manager Goals • Public Safety — "Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding." • Government of the 21st Century — `Be relevant and proactive to the opportunities and challenges of today's residents and workforce. Anticipate the future to make better decisions today." Attachments Good News Rescue Mission Provider Operational Agreement Staff Report - August 20, 2024 Staff Report - February 20, 2024 Staff Report - December 19, 2023 Staff Report - November 21, 2023 CITY OF REDDING THIS AGREEMENT ("Agreement") is made at Redding, California, by and between the City of Redding, a municipal corporation and a general law City ("City"), and The Good News Rescue Mission, a California Nonprofit Religious Corporation ("Provider" or "GNRM") for the purpose of providing the Day Resource Center services utilizing Encampment Resolution Funding -3-1, ("ERF -3-L" or "Program") funds. WHEREAS, the California Department of Business, Consumer Services and Housing Agency has awarded City the encampment resolution funds for the purpose of ensuring the safety and wellness of people experiencing homelessness in encampments, resolving critical encampment concerns and transition individuals into safe and stable housing, and encouraging a data - informed, coordinated approach to address encampment concerns ("Encampment Resolution Funding Program (ERF -3-L)"); and WHEREAS, City has entered in that certain Standard Agreement Number 23 -ERF -3-L-00008, Purchasing Authority Number 010725 with the California Department of Business, Consumer Services and Housing Agency dated October 12, 2023 under the authority of, and in furtherance of the purpose of the Encampment Resolution Funding Program (ERF -3-L) ("Standard Agreement"); and WHEREAS, the California Department of Housing and Community Development ("HCD") has assumed administration of the Encampment Resolution Funding Program (ERF -3-L) and currently administrates the Encampment Resolution Funding Program (ERF -3-L); and WHEREAS, Provider agrees to provide services related to the Encampment Resolution Funding Program set forth in the Contract and represents that it is capable of providing such services; and WHEREAS, Provider acknowledges and agrees that City shall utilize the Encampment Resolution Funding Program to compensate Provider for the services provided pursuant to the Contract and represents that it is willing and capable of complying with the Encampment Resolution Funding Program requirements; WHEREAS, City has allocated said funds for the sole purpose of supporting Provider's delivery of services and programs to City's residents as set forth herein. NOW, THEREFORE, the Parties covenant and agree, for good consideration hereby acknowledged, as follows: A. City and Provider agree that all services pursuant to this Agreement will be performed by Provider in accordance with the terms and conditions (as applicable) set forth in Standard Agreement No: 23 -ERF -3-L-0008 executed on October 12, 2023 between the City of Redding and the California Interagency on Homelessness in the Business, Consumer Services and Housing Agency enclosed herein as Exhibit A and incorporated hereby by reference. Exhibit A: Standard Agreement Number 23 -ERF -3-L-0008 B. Subject to all applicable terms and conditions as set forth in this Agreement, Provider shall provide to City the services described in Exhibit B, attached and incorporated herein. Provider shall provide the services at the Day Resource Center (Center) at the time, place and in the manner specified in Exhibit B and Exhibit E. A. Provider shall commence upon a fully signed Agreement and complete said work no later than September 30, 2026. B. If Provider fails to (1) perform its duties to the satisfaction of City, or (2) fulfill in a timely and professional manner its obligations under this Contract, (3) comply with the requirements of the Encampment Resolution Funding Program (ERF -3-L ), or ( 4) ensure that each independent contractor or subcontractor hired by Provider to perform a portion of its obligations under this Contract complies with the Encampment Resolution Funding Program (ERF -3-L) requirements, then City shall have the right to terminate this Contract effective immediately upon City giving written notice thereof to Provider. C. Either Party may terminate this Agreement without cause on thirty (30) calendar days' written notice. Notwithstanding the preceding, if the term set forth in Section 3.A. of this Agreement exceeds ninety (90) calendar days in duration, Provider's sole right to terminate shall be limited to termination for cause. D. Provider hereby acknowledges and agrees that the obligation of City to pay under this Agreement is contingent upon the availability of City's funds which are appropriated or allocated by the City Council. Should the funding for the project and/or work set forth herein not be appropriated or allocated by the City Council, City may terminate this Agreement by furnishing at least thirty (30) calendar days' written notice of its intention to terminate. In the event of a termination pursuant to this subdivision, Provider shall not be entitled to a remedy of acceleration of payments due over the term of this Agreement. The Parties acknowledge and agree that the power to terminate described herein is required by Article 16, Section 18, of the California Constitution, and that constitutional provision supersedes any law, rule, regulation or statute which conflicts with the provisions of this Section. E. In the event that City gives notice of termination, Provider shall promptly provide to City any and all finished and unfinished reports, data, studies, photographs, charts or I other work product prepared by Provider pursuant to this Agreement. City shall have full ownership, including, but not limited to, intellectual property rights, and control of all such finished and unfinished reports, data, studies, photographs, charts or other work product. F. In the event that City terminates the Agreement, City shall pay Provider the reasonable value of services rendered by Provider pursuant to this Agreement. Provider shall, not later than thirty (30) calendar days after termination of this Agreement by City, furnish to City such financial information as in the judgment of the City's representative is necessary to determine the reasonable value of the services rendered by Provider. G, In no event shall the termination or expiration of this Agreement be construed as a waiver of any right to seek remedies in law, equity or otherwise for a Party's failure to perform each obligation required by this Agreement. A. All Provider records with respect to any matters covered by this Agreement shall be made available to City, state, and/or federal authorities or any authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit/monitoring reports must be fully cleared by Provider within 30 days after receipt of notice of deficiency or deficiencies by Provider. Failure of Provider to comply with the above audit/monitoring requirements will constitute a violation of this Agreement and may result in the withholding of future payments. Provider must keep associated records fora period of not less than Five (5) years from completion of services (September 30, 2034). B. Provider hereby agrees to have an annual agency audit conducted in accordance with current City policy concerning provider and be prepared to provide a copy of that audit upon request. C. Provider shall, during the entire term of this Agreement, be construed to be an independent Contractor and nothing in this Agreement is intended, nor shall it be construed, to create an employer/employee relationship, association, joint venture relationship, trust or partnership or to allow City to exercise discretion or control over the professional manner in which Provider performs under this Agreement. Any and all taxes imposed on Provider's income, imposed or assessed by reason of this Agreement or its performance, including but not limited to sales or use taxes, shall be paid by Provider. Provider shall be responsible for any taxes or penalties assessed by reason of any claims that Provider is an employee of City. Provider shall not be eligible for coverage under City's workers' compensation insurance plan, benefits under the Public Employee Retirement System or be eligible for any other City benefit. D. No provision of this Agreement is intended to, or shall be for the benefit of, or construed to create rights in, or grant remedies to, any person or entity not a party hereto. E. Provider shall maintain accounts and records, including personnel, property and financial records, adequate to identify and account for all costs pertaining to this Agreement and such other records as may be deemed necessary by City to assure proper accounting for all project funds. These records shall be made available for audit purposes to state and federal authorities, or any authorized representative of City. Provider shall retain such records for five (5) years after the expiration of this Agreement, unless prior permission to destroy them is granted by City. F. Provider shall perform all services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of Provider's profession. All products of whatsoever nature which Provider delivers to City pursuant to this Agreement shall be prepared in a professional manner and conform to the standards of quality normally observed by a person practicing the profession of Provider and its agents, employees and subcontractors assigned to perform the services contemplated by this Agreement. G. All completed reports and other data or documents, or computer media including flash drives, and other materials provided or prepared by Provider in accordance with this Agreement are the property of City, and may be used by City. City shall have all intellectual property rights including, but not limited to, copyright and patent rights, in said documents, computer media, and other materials provided by Provider. City shall release, defend, indemnify and hold harmless Provider from all claims, costs, expenses, damage or liability arising out of or resulting from City's use or modification of any reports, data, documents, drawings, specifications or other work product prepared by Provider, except for use by City on those portions of the City's project for which such items were prepared. H. Provider, including its employees, agents, and sub -providers, shall not maintain or acquire any direct or indirect interest that conflicts with the performance of this Agreement. Provider shall comply with all requirements of the Political Reform Act (Government Code § 81000 et seq.) and other laws relating to conflicts of interest, including the following: 1) Provider shall not make or participate in a decision made by City if it is reasonably foreseeable that the decision may have a material effect on Provider's economic interest, and 2) if required by the City Attorney, Provider shall file financial disclosure forms with the City Clerk. 1. Provider hereby agrees to provide a completed Operations Manual which is to be submitted and approved by the City within 120 days before the completion of construction. 0 A. Each Party, prior to commencing its responsibilities in this Agreement, shall provide to the other Party a certificate of self-insurance which shall be approved by the other Party's Risk manager. B. Each Party understands, acknowledges, and agrees that both Parties are self-insured with respect to their automobile and general liability exposures and shall remain self- insured throughout the term of this Agreement. C. If any damage, including death, personal injury or property damage, occurs in connection with the performance of this Agreement, Provider shall immediately notify City's Risk Manager by telephone at (530) 225-4068 within 5 calendar days after Provider has constructive notice of the event. Provider shall timely submit a written report to City's Risk Manager containing the following information, as applicable: 1) name and address of injured or deceased person(s); 2) name and address of witnesses; 3) name and address of Provider's insurance company; and 4) a detailed description of the damage and whether any City property was involved, A. Consistent with California Civil Code § 2782.8, when the services to be provided under this Agreement are design professional services to be performed by a design professional, as that term is defined under Section 2782.8, Provider shall, to the fullest extent permitted by law, indemnify protect, defend and hold harmless, City, its elected officials, officers, employees, and agents, and each and every one of them, from and against all actions, damages, costs, liability, claims, losses, penalties and expenses (including, but not limited to, reasonable attorney's fees of the City Attorney or legal counsel retained by City, expert fees, litigation costs, and investigation costs) of every type and description to which any or all of them may be subjected by reason of, or resulting from, directly or indirectly, the negligence, recklessness, or willful misconduct of Provider, its officers, employees or agents in the performance of professional services under this Agreement, except when liability arises due to the sole negligence, active negligence or misconduct of the City. B. Other than in the performance of professional services by a design professional, which is addressed solely by subdivision (A) of this Section, and to the fullest extent permitted by law, Provider shall indemnify protect, defend and hold harmless, City, its elected officials, officers, employees, and agents, and each and every one of them, from and against all actions, damages, costs, liability, claims, losses, penalties and expenses (including, but not limited to, reasonable attorney's fees of the City Attorney or legal counsel retained by City, expert fees, litigation costs, and investigation costs) of every type and description to which any or all of them may be subjected by reason of the performance of the services required under this Agreement by Provider its officers, employees or agents in the performance of professional N services under this Agreement, except when liability arises due to the sole.negligence, active negligence or misconduct of the City. C. The Provider's obligation to defend, indemnify and hold harmless shall not be excused because of the Provider's inability to evaluate liability. The Provider shall respond within thirty (30) calendar days to the tender of any claim for defense and indemnity by the City, unless this time has been extended in writing by the City. If the Provider fails to accept or reject a tender of defense and indemnity in writing delivered to City within thirty (30) calendar days, in addition to any other remedy authorized by law, the City may withhold such funds the City reasonably considers necessary for its defense and indemnity until disposition has been made of the claim or until the Provider accepts or rejects the tender of defense in writing delivered to the City, whichever occurs first. This subdivision shall not be construed to excuse the prompt and continued performance of the duties required of Provider herein. D. City shall have the right to approve or disapprove the legal counsel retained by Provider pursuant to this Section to represent City's interests. City shall be reimbursed for all costs and attorney's fees incurred by City in enforcing the obligations set forth in this Section. A. This Agreement shall be deemed to have been entered into in Redding, California. All questions regarding the validity, interpretation or performance of any of its terms or of any rights or obligations of the parties to this Agreement shall be governed by California law. If any claim, at law or otherwise, is made by either party to this Agreement, the prevailing party shall be entitled to its costs and reasonable attorneys' fees. B. This document, including Exhibit A through Exhibit E, contains the entire Agreement between the parties and supersedes whatever oral or written understanding each may have had prior to the execution of this Agreement. This Agreement shall not be altered, amended or modified except in writing signed by City and Provider. No verbal agreement or conversation with any official, officer, agent or employee of City, either before, during or after the execution of this Agreement, shall affect or modify any of the terms or conditions contained in this Agreement, nor shall any such verbal agreement or conversation entitle Provider to any additional payment whatsoever under the terms of this Agreement. C. No covenant or condition to be performed by Provider under this Agreement can be waived except by the written consent of City. Forbearance or indulgence by City in any regard whatsoever shall not constitute a waiver of the covenant or condition in question. Until performance by Provider of said covenant or condition is complete, 01 City shall be entitled to invoke any remedy available to City under this Agreement or by law or in equity despite said forbearance or indulgence. D. If any portion of this Agreement or the application thereof to any person or circumstance shall be invalid or unenforceable to any extent, the remainder of this Agreement shall not be affected thereby and shall be enforced to the greatest extent permitted by law. E. The headings in this Agreement are inserted for convenience only and shall not constitute a part hereof. A waiver of any party of any provision or a breach of this Agreement must be provided in writing, and shall not be construed as a waiver of any other provision or any succeeding breach of the same or any other provisions herein. F. Each Party hereto declares and represents that in entering into this Agreement, it has relied and is relying solely upon its own judgment, belief and knowledge of the nature, extent, effect and consequence relating thereto. Each Party further declares and represents that this Agreement is made without reliance upon any statement or representation not contained herein of any other Party or any representative, agent or attorney of the other Party. The Parties agree that they are aware that they have the right to be advised by counsel with respect to the negotiations, terms, and conditions of this Agreement and that the decision of whether or not to seek the advice of counsel with respect to this Agreement is a decision which is the sole responsibility of each of the Parties. Accordingly, no party shall be deemed to have been the drafter hereof, and the principle of law set forth in Civil Code § 1654 that Agreements are construed against the drafter shall not apply. G. Each of the Parties hereto hereby irrevocably waives any and all right to trial by jury in any action, proceeding, claim or counterclaim, whether in Agreement or tort, at law or in equity, arising out of or in any way related to this Agreement or the transactions contemplated hereby. Each Party further waives any right to consolidate any action which a jury trial has been waived with any other action in which a jury trial cannot be or has not been waived, H. In the event of a conflict between the term and conditions of the body of this Agreement and those of any exhibit or attachment hereto, the terms and conditions set forth in the body of this Agreement proper shall prevail. In the event of a conflict between the terms and conditions of any two or more exhibits or attachments hereto, those prepared by City shall prevail over those prepared by Provider. The provisions set forth in Sections 3 through 6, inclusive, of this Agreement shall survive termination of the Agreement. A. Provider shall comply with all applicable laws, ordinances and codes of federal, state and local governments. B. In the performance of this Agreement, Provider shall not unlawfully discriminate against any employee or applicant for employment because of race, color, ancestry, national origin, religious creed, sex, sexual orientation, disability, age, marital status, political affiliation, or membership or non -membership in any organization. Provider shall take affirmative action to ensure applicants are employed and that employees are treated during their employment without regard to their race, color, ancestry, national origin, religious creed, sex, sexual orientation, disability, age, marital status, political affiliation, or membership or non -membership in any organization. Such actions shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training. C. Provider shall assure that any religious activities offered at the Center are voluntary and not discriminate against any particular religious group. Services at the Center must not be connected to any religious activity to participate in services. I I I �i MM�M=1101911n# U11 A. City's representative for this Agreement is Laura McDuffey, Senior Housing Specialist, telephone number (530) 225-4236, fax number (530) 225-4126, and email Imcduffey@cityofredding.org. All of Provider's questions pertaining to this Agreement shall be referred to the above-named person, or to the representative's designee. B. Provider's representative for this Agreement is Jonathan Anderson, Executive Director, telephone number (530)242-5920, email janderson@gnnn.org. All of City's questions pertaining to this Agreement shall be referred to the above-named person. C. The representatives set forth herein shall have authority to give all notices required herein. A. All notices, requests, demands and other communications hereunder shall be deemed given only if in writing signed by an authorized representative of the sender (may be other than the representatives referred to in Section 10) and delivered by email, or facsimile, with a hard copy mailed first class, postage prepaid; or when sent by a courier or an express service guaranteeing overnight delivery to the receiving party, addressed to the respective parties as follows: R To CITY: Laura McDuffey Senior Housing Specialist City of Redding 777 Cypress Ave. Redding, CA 96001 Imcduffey@cityofredding.org To Provider: GNRM Jonathan Anderson 2842 South Market Street Redding, CA 96001 B. Either party may change its address for the purposes of this paragraph by giving written notice of such change to the other party in the manner provided in this Section. C Notice shall be deemed effective upon: 1) personal service; 2) two calendar days after mailing or transmission by facsimile, whichever is earlier. 111 # .1 9191 A. Each of the undersigned signatories hereby represents and warrants that they are authorized to execute this Agreement on behalf of the respective parties to this Agreement; that they have full right, power and lawful authority to undertake all obligations as provided in this Agreement; and that the execution, performance and delivery of this Agreement by said signatories has been fully authorized by all requisite actions on the part of the respective parties to this Agreement. B. When the Mayor is signatory to this Agreement, the City Manager and/or the Department Director having direct responsibility for managing the services provided herein shall have authority to execute any amendment to this Agreement which does not increase the amount of compensation allowable to Provider or otherwise substantially change the scope of the services provided herein. The foregoing Recitals and all exhibits referenced therein are hereby incorporated by this reference and made part of this Contract. The effective date of this Agreement shall be the date it is signed by City. I IN WITNESS WHEREOF, CITY and Provider have executed this Agreement on the days and year set forth below: Dated: 20_ 0 a. ZEN "I q NO 519 191 OR Dated: 201 City Attorney By: Good News Rescue Mission, A California Religious Nonprofit Benefit 10 Exhibit A ERF -3-L Standard Agreement CUSCIES&CONSWER SERVICES AND IM SNU AU"CY CA WoRMA MEWENI7VC0".NCI1,*N 11GIMESINESSOEV 04 —c�lh I INj, 3— IM S. --.CA 55811 A ENCAMPMENT RESOLUTION FUND (ERF -3-L) REQUEST FOR FUNDS FORM C-11.0 NumtU ' 23-ERF3-1.-00008 la -k. Number 23 -ERF -3-L-00008 Expenditure Madlia.: SIMMS C"'.1.-1.0 ...: Steve $, e WV Atfentiaafn Coal d Person TUW Address 777 Cypress Ave Cm ii: Ca ylswPhone Rddirw, CA 966131 N., 536 246-7129 ENCAMPMENT RESOLUTION FUNDING BREAKDOWN AWARD Per Health and Safety Code Sections 50251 (a), a recipient may use encampment resolution funds for the purpose of ensuring the safety and wellness of people experiencing homelessness in Encampments, resolving critical encampment concerns and transition individuals into safe and stable housing, and encouraging adata- informed; coordinated approach to address encampment concerns, Funds shall be spent on resolving the identified, prioritized encampment through activities including, but not limited to, all afthe followm& Rapid Rehousing Operating Subsidies Street Outreach Systems Support Delivery of Permanent Housing Prevention and Shelter Diversion Interim Sheltering Improvements to Existing Emergency Shelters Administration (up to 5%) TOTAL, $8,354,955.00 CERTIFICATION Ag—w' gasint 'rinin C,,i+q MdAd Ae-V- Tille rAIAlf-i-d R.PITSR-t-mill or Sig--t-'Y Sjg..tfl-.1A.th.0M-. R. G. or 91gaawy D.w UCSH USE ONLY cjaa'"I� 1 9129/23 Grw6fh1.q.e—.t Rm,midafiv. S:' nature 1jtAAvflw G—u N'dpmw swi.. chi'r 11 STATE OF CALIFORNIA -DEPARTMENT OF GENERAL SERVICES STANDARD AGREEMENT STD 213 iRev, 0412020) AGREEMENT NUMBER 23 -ERF -3-L-00008 and the Contractor named b IORITY NUMBER (If Applicable) 010725 Business, Consumer Services and Housing Agency CONTRACTOR NAME City of Redding 2, The term of this Agreement is: START DATE 10/1212023 THRO UGH END DATE 3/3112027 3: The maximum amount of this Agreement is $8,354,555:00 (Eight Million Three Hundred Fifty Four Thousand Mine Hundred Fifty Five Dollars and No Cents) 4, The parties agree to comply with the terms and conditions of the following exhibits, which are by this reference made a part ofthe Agreement. Exhibits Title Pages Exhibit A Authority, Purpose and Scope of Work 5 Exhibit B Budget Detail and Disbursement Provisions 4 Exhibit C State of California General Terms and Conditions 1 + Exhibit D General Terms and Conditions 10 Exhibit E Special Terms and Conditions 2 items snown Wrrn an osreasK i'); are nerevy rrrcorporarea oyrererence ana maue part at crus agreerrrenr os rr rrrf uLrieu i rereru.. These d"unrents can be viewed at t' r IN WITNESS WHEREOF, THIS AGREEMENT HASBEEN EXECUTED BY THE PARTIES HERETO, CONTRACTOR CONTRACTOR NAME (if other than an individual, state whether a corporation, partnership, etc.) City of Redding ATTEST: 1 EST; SHARLENE TIPTQN, City Cit1t i 4 P y ff.-a..« y..Aty 12 STATE OF CALIFORNIA - DEPARTMENT OF GENERAL SERVICES STANDARD AGREEMENT AGREEMENTNUMBER PURCHASING AUTHORITY NUMBER (if Applicabte) STD 213 (Rev. 04/2020) 23 -FRF -3-L-0000$ 010725 STATE OF CALIFORNIA -- CONTRACTING AGENCY NAME Business, Consumer Services and Housing agency CONTRACTING AGENCY ADDRESS CITY STATE IZIP 500 Capitol Mall, Suite 1850 Sacramento CA 195814 PRINTED NAME OF PERSON SIGNING TITLE Lourdes Castro Ramirez Secretary CONTRACTING AGENCY AUTHORIZED SIGNATURE DATE SIGNED Oct z, 2023 CALIFORNIA DEPARTMENT OF GENERAL SERVICES APPROVAL EXEMPTION (if Applicable) 13 I Z= -FMAME� 'PI 37 Standard Agreement EX141BIT A AJUI mr� The State of California has established the Encampment Resolution Funding Program ("ERF" or "Program') pursuant to Chapter 7 (commencing with Section 50250) of Part I of Division 31 of the Health and Safety Code. Amended by SB 197 (Statutes of 2022, Chapter 70, Sec.3-8, effective June 30, 2022), 'Wit I NO of Care and / or Local Jurisdictions as defined below. To date, there have been two previous rounds of the Encampment Resolution Funding Program. This Standard Agreement governs the Lookback Disbursement in Round 3 of w Program For this Standard Agreement, ERF -3-1- is synonymous with • "Program"." and refers to programs and grantees under Health and Safety Code section 50252.1 (b) This Standard Agreement along with all its exhibits ("Agreement") is entered into by Cal ICH and a Continuum of Care or a Local Jurisdiction ("Grantee") under the authority of, and in furtherance of, the purpose of the Program. In signing this Agreement and thereby accepting this award of funds, the Grantee agrees to comply with the terms and conditions of this Agreement, the Notice of Funding Availability ("NOFA") under which the Grantee applied, the representations contained in the Grantee's application, Cal ICH guidance or directives, and the requirements appearing in the statutory authority for the Program cited above. 2) Pur os Initial Here 14 stable, and ultimately permanent housing for people experiencing homelessness in encampments. Expenditures shall be consistent with the legislative intent of the authorizing statute to ensure the safety and wellness of people experiencing homelessness in encampments, 91MM= The following Encampment Resolution Funding Program terms are defined in accordance with Health and Safety Code Section 50250, Subdivisions (a) — (1); (a) "Additional funding round moneys" means moneys appropriated for the program in or after fiscal year 2022-23. (b) "Agency" means the Business, Consumer Services, and Housing Agency. (c) "Applicant" means a continuum of care or local jurisdiction (d) "Continuum of Care" has the same meaning as in Section 578,3 of Title 24 of the Code of Federal Regulations. (e) "Council" means the California Interagency Council on Homelessness, previously known as the Homeless Coordinating and Financing Council created pursuant to Section 8257 of the Welfare and Institutions Code. (f]i "County" includes, but is not limited to, a city and county. (g) "Funding round I moneys" means moneys appropriated for the program in fiscal year 2021-22. (h) "Homeless" has the same meaning as in Section 578.3 of Title 24 of the Code of Federal Regulations. (i) "Local Jurisdiction" means a city, including a charter city, a county, including a charter county, or a city and county, including a charter city and county. (j) "Program" means the Encampment Resolution Funding program established pursuant to this chapter. (k) "Recipienf' means an applicant that receives grant funds from the council for the purposes of the program. (1) "State right-of-way" means real property held in title by the State of California "Grantee" is "a Continuum of Care or a Local Jurisdiction that receives grant funds from the Council for the purposes of the program. Grantee is synonymous with "Recipient." Initial Here 15 "Subrecipients" or "Subgrantees" are entities that receive subawards from "Recipients" or "Grantees" to carry out part of the Program. "Expended" means all ERF funds obligated under contract or subcontract that have been fully paid and receipted, and no invoices remain outstanding. 'Obligate" means that the Grantee has placed orders, awarded contracts, received services, or entered into similar transactions that require payment using ERF funding. Grantees must obligate the funds by the statutory deadlines set forth in this Exhibit A. "Cal ICH" is synonymous with "Council". Scope of 'T"Fork This Scope of Work identifies the terms and conditions necessary to accomplish the Program's intended objectives. As detailed in Exhibit A1, the Program's objective is to fund grantees to implement actionable, person -centered local proposals that resolve the experience of unsheltered homelessness for people residing in encampments. Grantees will implement their ERF funded local proposals in compliance with the terms and conditions of this Agreement, the NOFA under which the Grantee applied, the representations contained in the Grantee's application, Cal ICH guidance and directives, and the requirements per the authorizing statute. Expenditures shall be consistent with the legislative intent of the authorizing statute to ensure the safety and wellness of people experiencing homelessness in encampments. Permissible eligible uses and activities are detailed below in Exhibit 8, Budget Details and Disbursement Provisions. Prior to fully executing this agreement, Grantees must standardize their budget using a Cal ICH provided budget template. Grantees are expected to be close partners with Cal ICH. This means timely and accurate reporting, candid communication of successes and challenges, and availability of persons, information, or materials. Quarterly reporting requirements are detailed below in Exhibit DA. Reporting, Evaluation, and Audits. Fiscal deadlines are detailed below in Exhibit A.6. Effective Date, Term of Agreement, and Deadlines. Initial Here2j&_ 16 00 ## a -MIT --- - - i rat - M Rmn I $J0101 I S1111mi WARM -11M 10" MWAI In "NIM W8j1j=-1WAVjgMV1§ [M V� Cal ICH maintains sole authority to determine if a Grantee is acting in compliance -at Cal ICH's Contract Coordinator for this Agreement is the Council's Grant Development Section Chief or the Grant Development Section Chiefs designee. Unless otherwise instructed, any communication shall be conducted through email to the Cal ICH Contractor Coordinator or their designee. If documents require an original signature, the strongly preferred form is an e -Signature in accordance with the Uniform Electronic Transactions Act (UETA). If an Awardee is unwilling or unable to sign a document electronically, Agency shall accept wet or original signed documents. These documents containing wet signatures should be both mailed to Cal ICH and scanned and emailed as instructed. State law or policy may require the use of wet signatures for specific documents. The Representatives during the term of this Agreement will be: The Council reserves the right to change their Cal ICH Contractor Coordinator, designee, and / or contact information at any time with reasonable notice to the Grantee, Initial Here 17 GRANTEE Services City of Redding and Housing Agency . .. ...... . SECTION/ IT: Homelessness 801 Capital Mail, 6th floor 777 Cypress Ave ADDRESS: ii Sacramento, CA, 95814 Redding, CA 96001 III�IJIUT ra�� Steve Bade cooRDINATOR IMVIII PHONE 111R. 0 * (530) 245-7129 NUMB �� i F EMAIL sbade@cityofredding,org 1ADDRESS: and calichgrants@bcsh.ca.gov--] The Council reserves the right to change their Cal ICH Contractor Coordinator, designee, and / or contact information at any time with reasonable notice to the Grantee, Initial Here 17 IN I WN IN I All requests to update the Grantee information listed within this Agreement shall be emailed to Cal ICH grant's general email box at calichgrants@bcsh,ca.gov. Notice to either party may be given by email. Such notice shall be effective when received as indicated on email. Changes to Cal ICH Contractor Coordinator, designee, and dor contact information or grantee information can be made without a formal amendment, approved by DGS, if necessary. 6) Effective Date, Term of Agreement, and Deadlines a) This Agreement is effective upon execution by Cal ICH, which includes signature from the Grantee and Cal ICH. This is indicated by the Cal ICH provided signature and date on the second page of the accompanying STD. 213, Standard Agreement, b) Performance shall start no later than 30 days, or on the express date set by Cal ICH and the Grantees, after all approvals have been obtained and the Grant Agreement is fully executed. Should the Grantee fail to commence work at the agreed upon time, Cal ICH, upon five (5) days written notice to the grantee, reserves the right to terminate the Agreement. c) Grantees will continue to perform until the Agreement is terminated, including data reporting and participation in program evaluation activities, as needed. d) This Agreement will terminate on March 31, 2027. Cal ICH will review submitted Final Work Products and collaborate with Grantees to cure any deficiencies by March 31, 2027. Grantees are expected to continue performing until March 31, 2027. This means timely and accurate reporting, candid communication of success or shortcomings, and availability of persons, information, or materials. i i, Grantees shall expend no less than 50 percent and obligate 100 percent of Program funds by June 30, 2025 Initial Here jaa=- 18 ii. Grantees that have not expended 50 percent of their Program funds by June 30, 2025, shall return the unspent portion to Cal ICH, in a form and manner determined by Cal ICH. iii. Grantees that have not obligated 100 percent of their Program funds by June 30, 2025, shall submit an alternative disbursement plan to Cal ICH for approval no later than July 30, 2025, This alternative disbursement plan should detail the explanation for the delay and plans for all future obligations and expenditures. iv. Grantees not meeting the requirements outlined in (I) may be subject to additional corrective action, as determined by Cal ICK v. All Program funds (100 percent) shall be expended by June 30, 2026, Any funds not expended by this date shall revert to the fund of origin pursuant to HSC Section 50253(d)(5), Cal ICH maintains sole authority to determine if a Grantee is acting in compliance with the program objectives and may direct Grantees to take specified actions or risk breach of this Agreement. Grantees will be provided reasonable notice and Cal ICH's discretion in making these determinations are absolute and final. Initial Here;*W::- 19 Standard Agreement EXHIBIT B BUDGET QE1A--1—(zTA DISBUR released- • Request for Funds Form ("RFF") • STD 213 Standard Agreement form and initialed Exhibits A through E • STD 204 Payee Data Record or Government Agency Taxpayer ID Form completed Standard Agreement and RFF by Cal ICK The RFF must include the total amount of Program funds proposed to be expended. The ERF will be disbursed in one allocation via mailed check once the RFF has been received by the SCO. Checks will be mailed to the address and contact name listed on the RFF, 3) Bud -get Details and Expenditure of Funds. The Grantee shall expend Program funds on eligible uses and activities as detailed in the submitted standardized budget. Cal ICH reserves the right to direct specific fine -item changes in the originally submitted Application budget or subsequently submitted standardized budgets. a) Budget Changes i) Process: Budget modification requests should be made as part of the quarterly report process. These requests will be reviewed in the first week after quarterly reports are received. Cal ICH may consider budget change requests outside of this process, through email as needed due to documented, exigent circumstances. Grantees carry the burden to anticipate foreseeable budget change requests and should plan accordingly. Cal ICH reserves the right to amend or adjust this process as necessary. Initial Here 20' Changes may be made to the timing (egj fiscal year) of eligible use expenditures without prior approval by Cal ICH so long as the total their designee, in writing, before the Grantee may expend Program funds according to an alternative standardized budget. The Grant Development Section Chief will respond to Grantee with approval or denial of request. Failure to obtain written approval from Cal ICH as required by this section may be considered a breach of this Agreement A breach of this agreement may result in remedies listed below in Exh&t D,6,, Breachand Remedies. .-9 0 MOM= lawl- - ill j I - W 'M 1-471,4,09 WV—PI ICH guidance or directives, the NOFA under which the Grantee applied� 1!11 1 1 1111 1 1 11' 1 i 11 pill, 11111 Rapid Rehousing- Rapid rehousing, including housing identification services, rental subsidies, security deposits, incentives to landlords, and holding fees for eligible persons, housing search assistance, case management and facilitate access to other community-based services. *perafing Subsidies: Operating subsidies in new and existing affordable or subsidies may include operating reserves, 211M, M IoIl 21 Initial Here 22 Moreover, no parties to this contract nor their agents shall directly or indirectly use ERF awards for any use or activity that is in violation, conflict, or inconsistent with the legislative intent of the authorizing statute to ensure the safety and wellness of people experiencing homelessness in encampments. This prohibition includes using ERF funds in connection to or in support of activities that cause a traumatic effect on those experiencing homelessness. Cal ICH, at its sole and absolute discretion, shall make the final determination regarding the allowability of ERF expenditures, Cal ICH reserves the right to request additional clarifying information to determine the reasonableness and eligibility of all uses of the funds made available by this Agreement, If the Grantee or its funded subrecipients use ERF funds to pay for ineligible activities, the Grantee shall be required to reimburse these funds to Cal ICH at an amount and timeframe determined by Cal ICH, An expenditure which is not authorized by this Agreement, or by written approval of Cal ICH, or which cannot be adequately documented, shall be disallowed, and must be reimbursed to Cal ICH by the Grantee at an amount and timeframe determined by Cal ICH. Program funds shall not be used to supplant existing local funds for homeless housing, assistance, prevention, or encampment resolution. Unless expressly approved by Cal ICH in writing reimbursements are not permitted for any Program expenditures prior to this Agreement's date of execution. Initial Here4-d� 23 • ! 1 Standard Agreement EXHIBIT C -. « • s This exhibit is incorporated by reference and made part of this agreement. The General Terms and Conditions (GTC 04/2017) can be viewed at the fallowing link. MON In the interpretation of this Agreement, any inconsistencies between the State of California General Terms and Conditions (CTC - 04/2017) and the terms of this Agreement and its exhibits/attachments shall be resolved in favor of this Agreement and its exhibits/attachments. Initial Her--)d&;=-- 24 ere _ 24 Encampment Resolution Funding Program (ERF --1) Standard Agreement EXHIBIT lC GENERAL 'TERMS AND CONDITIONS 1) Termination and Sufficiency of Funds a) Termination of Agreement Cal ICH may terminate this Agreement at any for cause by giving a minimum of 14 days' notice of termination, in writing, to the Grantee. Cause shall consist of violations of any conditions of this Agreement, any breach of contract as described in paragraph 6 of this Exhibit C; violation of any federal or state laws, or withdrawal of Cal ICH's expenditure authority. Upon termination of this Agreement, unless otherwise approved in writing by Cal ICH, any unexpended funds received by the Grantee shall be returned to Cal ICH within 30 days of Cal ICH's specified date of termination. b) sufficiency of Funds This Agreement is valid and enforceable only if sufficient funds are made available to Cal ICH by legislative appropriation. In addition; this Agreement is subject to any additional restrictions, limitations or conditions, or statutes, regulations or any other laws, whether federal or those of the State of California; or of any agency, department, or any political subdivision of the federal or State of California governments, which may affect the provisions, terms or funding of this Agreement in any manner. 2) Transfers Grantee may not transfer or assign by subcontract or novation, or by any other means, the rights, duties, or performance of this Agreement or any part thereof; except as allowed within Exhibit Q.12. (Special Conditions — Grantees/Sub Grantee) or with the prior written approval of Cal ICH and a formal amendment to this Agreement to affect such subcontract or novation: ) Grantee's Apolication for Funds Grantee submitted a standardized budget to Gal ICH as part of their application for the Program. Grantee warrants that all information, facts, assertions and representations contained in the application and approved modifications and additions thereto are true, correct, and complete to the best of Grantee's knowledge. In the event that any Initial Here 25 nlffl�# MIA t,E27 LI I iNE23I . jL #"W lJoag. part of the application and any approved modification and addition thereto is untru incorrect, incomplete, or misleading In such a manner that would substantially affe Cal ICH approval, disbursement, or monitoring of the funding and the grants or activities governed by this Agreement, then Cal ICH may declare a breach of this Agreement and take such action or pursue such remedies as are legally available. 4) Reporting, Evaluation, and Audits a) Reporting Requirements I I III i WI I I BMW V;Q1 shall report quarterly and have one Final Work Product submitted prior to this Agreemenfs termination. The�,tyarwly re-,#,*rts shall le sv*14-hitt&V *n a tzan-,�Jate t4i *a xr*��O& �y G21i ICH at least 90 days prior to the first reporting deadline. Cal 1CH may request interim reports as needed and will provide no less than 30 days' notice to Grantees. Required Data Grantees will be required to provide: Outreach and service path data at the anonymized, individual level; • Current housing status of persons served in the aggregate; Status of funding as presented in the Cal ICH approved, standardized budget; and • Continued confirmation that projects receiving ERF funds are populated timely into HMIS and use Cal ICH supplied funding codes, Cal ICH's discretion in identifying which information shall be included in these reports is final. Grantees shall also report information in the form and manner required by Cal ICH. Failure to comply will be considered a breach. Pursuant to HSC Section 50254, grantees shall provide data elements, including, but not limited to, health information, in a manner consistent with state and federal law, to their local Homeless Management Information System for tracking in the statewide Homeless Data Integration System. Pursuant to HSC Section 50254(b)(3), Grantees shall report individual, client -level data for persons served by grant funding to the council, in addition to any data reported through local Homeless Management Initiai Her ------ 26 12215210-112322 "F9 7- and evaluation of grant performance, service pathways, and outcomes for people served, Grantees shall comply with the data entry requirements of AB 977, located at Welfare and Institutions Code section 8256(d). I Iii. Cal ICH usage of Reports Pursuant to HSC Section 50254(b)(4), Council staff may use informatio reported directly from grantees and through statewide Homeless Data Integration System for the purposes of research and evaluation of grant performance, service pathways, and outcomes for people serve& ® to Report If the Grantee fails to provide any such report, Cal ICH may recapture a itt portion of the amount authorized by this Agreement with a 14 -day wri notification. I MEN= Initial Here 27 MUMMM. 1161: advance notice. Cal ICH will comply with Grantee's site visit terms during any site visits. iv. Grantees should maintain active data, documents, and filings in anticipation of this evaluation. Special care should betaken to organize and preserve internal work products that guided implementation by the Grantee or subgrantee, v. Grantees shall notify Cal ICH and provide copies of any reports or findings if Grantee conducts or commissions any third -party research or evaluation regarding their funded project. =III III 1111! 1111111 1 11 � 11 � � 11! 11! 111111121 III tIIINII 11 11 1! 11 -, I c) Auditing i) The audit shall be performed by an independent certified public accountant g ii) The Grantee Shall notify Cal ICH of the auditor's name and address immediately after the selection has been made, The contract for the alldit shall allow access by Cal ICH to the independent auditor's working papers. iii) The Grantee is responsible for the completion of audits and all costs of preparing audits. iv) If there are audit findings, the Grantee must submit a detailed response acceptable to Cal ICH for each audit finding within 90 days from the date of the audit finding report. I'll 11411 Palo I Initial Her9929;__L M 150 MuMal 41141 books, records, accounts, and other materials that may be relevant to an investigation of compliance with the ERF laws, Cal ICH guidance or directives, and this Agreement. b) Record Retention The Grantee further agrees to retain all records described in subparagraph A for a minimum period of five (5) years after the termination of this Agreement. If any litigation, claim, negotiation, audit, monitoring, inspection, or other action has been commenced before the expiration of the required record retention period, all records must be retained until completion of the action and resolution of all issues which arise from it. c) Public Records Act The grantees' application, this contract, and other documents related to the grant are considered public records, which are available for public viewing pursuant to the California Public Records Act. 6) Breach and Remedies a) Breach of Agreement Breach of this Agreement includes, but is not limited to, the following events: i. Grantee's failure to comply with the terms or conditions of this Agreement, ii. Use of, or permitting the use of, Program funds provided under this Agreement for any ineligible activities. iii. Any failure to comply with the deadlines set forth in this Agreement. b) Remedies for Breach of Agreement In addition to any other remedies that may be available to Cal ICH in law or equity for breach of this Agreement, Cal ICH may, in a form and manner determined by Cal ICH: i. Conduct a program monitoring which will include a corrective action plan (CAP) with findings, remedies, and timelines for resolving the findings. H. Bar the Grantee from applying for future ERF funds; Initial Here,_ 29 iii. Revoke any other existing ERF award(s) to the Grantee; iv. Require the return of any unexpended ERF funds disbursed under this Agreement; v. Require repayment of ERF funds disbursed and expended under this Agreement; vi. Require the immediate return to Cal ICH of all funds derived from the use of ERF vii. Seek, in a court of competent jurisdiction, an order for specific performance of the defaulted obligation or participation in the technical assistance in accordance with ERF requirements. c) All remedies available to Cal ICH are cumulative and not exclusive, d) Cal ICH may give written notice to the Grantee to cure the breach or violation within a period of not less than 14 days. 7) Waivers No waiver of any breach of this Agreement shall be held to be a waiver of any prior or subsequent breach, The failure of Cal ICH to enforce at any time the provisions of this Agreement, or to require at any time, performance by the Grantee of these provisions, shall in no way be construed to be a waiver of such provisions nor to affect the validity of this Agreement or the right of Cal ICH to enforce these provisions. 8) Nondiscrimination During the performance of this Agreement, Grantee and its subrecipients shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex (gender), sexual orientation, gender identity, gender expression, race, color, ancestry, religion, creed, national origin (including language use restriction), pregnancy, physical disability (including HIV and AIDS), mental disability, medical condition (cancer/genetic characteristics), age (over 40), genetic information, marital status, military and veteran status, denial of medical and family care leave or pregnancy disability leave, or any other characteristic protected by state or federal law. Grantees and Sub grantees shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Grantee and its subrecipients shall comply with the provisions of California's laws against discriminatory practices relating to specific groups: the California Fair Employment and Housing Act (FEMA) (Gov, Code, Section 12900 et seq.); the regulations Initial Here Fri promulgated thereunder (Cal. Code Regs., tit. 2; Section 11000 et seq.); and the provisions of Article 9., Chapter 1, Part 1, Division 3, Title 2 of the Government Dade (Gov. Code, Section 11135 -11139.0. Grantee and its subrecipients shall dive written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. All Grantees are subject to state and federal conflict of interest laws. Failure to comply with these laws, including business and financial disclosure provisions, will result in the application being rejected and any subsequent contract being declared void. Other legal action may also be taken. Additional applicable statutes include, but are not limited to, Government Code Section 1090 and Public Contract Code Sections 10410 and 10411. a) Current State Employees: No State officer or employee shall engage in any employment, activity, or enterprise from which the officer or employee receives compensation or has a financial interest, and which is sponsored or funded by any State agency, unless the employment, activity, or enterprise is required as condition of regular State employment, leo State officer or employee shall contract on his or her own behalf as an independent Grantee with any State agency to provide goods or services= Initial Here' -- 31 10) Qrug-Free Workglace Ceritification Certification of Compliance- By signing this Agreement, Grantee hereby certifies, under penalty of perjury under the laws of State of California, that it and its subrecipients will comply with the requirements of the Drug -Free Workplace Act of 1990 (Gov. Code, Section 8350 et seq.) and have or will provide a drug-free workplace by taking the following actions. - Publish a statement notifying employees and subrecipients that unlawful manufacture distributlondispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees, Grantees, or subrecipients for violations, as required by Government Code Section 8355� subdivision a) Establish a Drug -Free Awareness Program, as required by Government Code Section 8355, subdivision (a)(2) to inform employees, Grantees, or subrecipients about all of the following. i. The dangers of drug abuse in the workplace; ii. Grantee's policy of maintaining a drug-free workplace; iii. Any available counseling, rehabilitation, and employee assistance program; and iv. Penalties that may be imposed upon employees, Grantees, and subrecipients for drug abuse violations. b) Provide, as required by Government Code Section 8355, subdivision (a)(3), that every employee and/or subrecipient that works under this Agreement: i. Will receive a copy of Grantee's drug-free policy statement, and ii: Will agree to abide by terms of Grantee's condition of employment or subcontract, 11) Child Support Compliance Act For any Contract Agreement in excess of $100,000, the Grantee acknowledges in accordance with Public Contract Code 7110, that: a) The Grantee recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of Initial Here -- 32 090MAZIUM IIII-1. i. Perform the work in accordance with Federal, State and Local housing and building codes, as applicable. ii. Maintain at least the minimum State -required worker's compensation for those employees who will perform the work or any part of it. iii. Maintain, as required by law, unemployment insurance, disability insurance, and liability insurance in an amount that is reasonable to compensate any person, firm or corporation who may be injured or damaged by the Grantee or any Subgrantee in performing the Work or any part of it. iv. Agree to include and enforce all the terms of this Agreement in each subcontract. 13) Compliance with State and Federal Laws, Rules. Guidelines and Regulations The Grantee agrees to comply with all state and federal laws, rules and regulations that pertain to construction, health and safety, labor, fair employment practices, environmental protection, equal opportunity, fair housing, and all other matters applicable and/or related to the ERF program, the Grantee, its subrecipients, and all eligible activities. Grantee shall also be responsible for obtaining any and all permits, licenses, and approvals required for performing any activities under this Agreement, including Initial Here,� 33 specificallyH W-60 ffil MITMUMINWOMM MWINW1 17 1; W, - I I I i 10 1 1 1 1 IWWWW'111 I ISO I IN ! ^ including, but is limited # environmental protection, procurement ' and safety laws, rules, regulations, and ordlnances� Grantee shall provide copies of permits and approvals to Cal ICH upon request. .fill i • a , a) Grantee shall inspect any work performed hereunder to ensure that the work is being and has been performed in accordance with the applicable federal, state and/or local requirements, and this Agreement. b) Cal ICH reserves the right to inspect any work performed hereunder, including site visits, to ensure that the work is being and has been performed in accordance with the applicable federal, state and/or local requirements, and this Agreement. c) Grantee agrees to require that all work that is determined based on such inspections not to conform to the applicable requirements be corrected and to withhold payments to the subrecipient until it is corrected. b) The Grantee shall notify Cal ICH immediately of any claim or action undertaken by or against it, which affects or may affect this Agreement or Cal ICH, and shall take such action with respect to theclaimor action as is consistent with the terms of this Agreement and the interests of Cal ICH. Initial Ner 34 nummu= loolit Encampment Resolution Funding Program (ERF -3-L) Standard Agreement EXHIBIT E SPECIAL TERMS AND CONDITIONS 1) All proceeds from any interest-bearing account established by the Grantee for the deposit of funds, along with any interest-bearing accounts opened by subrecipients to the Grantee for the deposit of funds, must be used for eligible activities, Grantee$ must maintain records of all expenditures of the proceeds from these interest- bearing accounts for five (5) years. Cal ICH reserves the right to perform or cause to be performed a financial audit on the use of proceeds from interest bearing accounts. 2) Grantee shall utilize its local Homeless Management Information System (HMIS) to track ERF projects, services, and clients served. Grantee will ensure that HMIS data are collected in accordance with applicable laws and in such a way as to identify individual projects, services, and clients that are supported by funding (e.g., by creating appropriate - ERF specific funding sources and project codes in HMI). 3) Grantee shall participate in and provide data elements, including, but not limited to, health information, in a manner consistent with federal law, to the statewide Homeless Management Information System (known as the Homeless Data Integration System or "HIT"), in accordance with their existing Data Use Agreement entered into with the Council, if any, and as required by Health and Safety Code Section 50254. Any health information provided to, or maintained within, the statewide Homeless Management Information System shall not be subject to public inspection or disclosure under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code). For purposes of this paragraph, "health information" means .protected health information," as defined in Part 160,103 of Title 45 of the Code of Federal Regulations, and "medical information," as defined in subdivision (j) of Section 56.05 of the Civil Code. The Council may, as required by operational necessity, amend or modify required data elements, disclosure formats, or disclosure frequency. Additionally, the Council, at its discretion, may provide Grantee with aggregate reports and analytics of the data Grantee submits to HMS in support of the Purpose of this Agreement and the existing Data Use Agreement, 4) Grantee agrees to accept technical assistance as directed by Cal ICH or by a contracted technical assistance provider acting on behalf of Cal ICH. Grantee will report to Cal ICH on programmatic changes the Grantee will make as a result of the technical assistance and in support of their grant goals. Initial Hergddi;� 35 1L?a MRSOMM WIN t+JLSiiM-JJ2SL"If V 5) Grantee should establish a mechanism for people with lived experience, of f� homelessness to have meaningful and purposeful opportunities ♦to in orI and shal all levels of planning and implementation, including through opportunities to hire people with lived experience. I 6) Cal ICH maintains sole authority to determine if a Grantee is acting in compliance with the program objectives and may direct grantees to take specified actions or risk breach of this Agreement. Grantees will be provided reasonable notice and Cal ICH's discretion in making these determinations are absolute and final. Initial HereAgE:- 0 REMME= As part of the comprehensive approach of the City to address homelessness, Service Provider will provide Center Services ("Program") within the City of Redding. The Program's objective is to centralize and streamline access to a spectrum of interventions and supportive services for persons experiencing homelessness in the City ("Program Guests"), offer guest -centered support and system navigation services that support Program Guests throughout all stages of their pathway toward housing stability, and contribute the development of a data -informed and systems -level perspective on the City's homeless crisis response system by reporting on system outcomes across all stages of service delivery. Subrecipient will operate the components of the Program, as detailed herein, at 3145 Veda St. Redding, CA 96001 ("Program Site"). The Program will operate Monday through Friday, from 8:00 AM to 5:00 PM, excluding holidays ("Program Operating Schedule"). Scheduled operating hours are subject to change based upon demand. MM' Subrecipient will maintain an administrative office at 2842 S. Market St., Redding, CA 96001. The days and hours of operation are Monday through Friday from 8:00 AM to 4:30 PM. The Subrecipient will provide system navigation and related services to identify and meet the needs of individuals and families experiencing homelessness during each stage of their pathway toward housing. The Program will coordinate with Service Providers and partners in the community who may be serving Program Guests to ensure efficient utilization of system resources and better integrate the suite of services each Program Guest receives. The Program will utilize trauma -informed care, motivational interviewing, and a harm reduction model. The Program will serve guests in a welcoming and solutions -focused environment; Subrecipient's corporate culture must support this environment and be reflected in guest interactions and within the daily operations of the Program. All services must be guest -centered and easily accessible. Services must be evaluated for effectiveness 37 and adherence to approved policies and procedures on a regular basis, with course corrections implemented as necessary to maintain Program fidelity. The Subrecipient will adhere to all local rules, regulations, performance standards, and requirements of the funding source. The Program will participate in the Coordinated Entry (CE)System in accordance with NorCal CoC standards and policies. Services provided at the Program may include but are not limited to: • Hygiene Services • Showers Self -Serve Laundry • Secure Storage Facilities (Individual Storage Trolleys) • Amnesty Lockers • Case Management Services • Computer Lab Outdoor Courtyard Bicycle Repair Station Pet Friendly Facility • Phone and Device Charging WIFI/Internet 0 Lounge Area 0 On-site Classes 0 Library • Office Space for Service Partners 0 Medical Triage (Partner Provided) • Mental Health Services (Partner Provided) 0 Classroom • Conference Room Copy/Print Center for Guests SECTION 5. TARGET POPULATION & PROGRAM ELIGIBILITY The Program will serve all persons experiencing homelessness in the City. Subrecipient will aim to provide system navigation services to a at least 750 unduplicated individuals annually. Subrecipient will ensure the following services are provided to Program Guests pursuant to this Agreement: a) Create and maintain a site that offers dignity to those who access the Center; 38 b) Connect guests with services as opposed to simply referring them for services; c) Facilitate and manage partnerships with local and other organizations beyond community organizations that offer services within the Center; d) Establish a program of partnerships and community engagement that enables a "one- stop -shop" approach to providing services; e) Pursue, obtain, and maintain funding from various non -City sources; f) Provide coordinated assessment and prioritization for visitors to services; g) Establish site as an Access Site for the Coordinated Entry system; h) Provide annual evaluation of the Center through surveys of Service Providers and homeless guests; i) Ensure community partners adhere to and use the NorCal CoC Homeless Management Information System (HMIS) that ensures timely and accurate information is collected and facilitates necessary training; j) Establish, facilitate, and maintain Center policy and training that ensures HIPPA compliance, storage, and reporting; k) Mediate and ensure collaborative partnerships that result in a positive atmosphere of Service at the Center; 1) Execute and maintain Memorandums of Understanding with community service providers; m) Manage and coordinate volunteers-, n) Administer and complete background reviews and clearance on all volunteers; o) Oversee and implement mental health first-aid and de-escalation training and policy for the Center; p) Provide, oversee, and maintain sanitary conditions and general cleanliness of the Center, including maintaining trash in and around the property and disinfection of the showers and bathrooms; q) Distribute marketing material to reach new guests Provider must enter and maintain data in the NorCal CoC Homeless Management Information System (HMIS) and must comply with all HMIS policies and procedures in effect during the term of this Agreement, as defined by the NorCal HMIS, including those for data collection, 10 data entry, data quality, and standards for missing data, incomplete data, and timeliness of data entry. Provider agrees to grant access to all data related to the Program in HMIS to all appropriate City staff for purposes of data analysis, compliance monitoring, and performance monitoring. Provider will participate in the Nor Cal CoC Coordinated Entry System (CES) as established by the NorCal HMIS and in alignment with HMIS policies and procedures in effect during the term of this Agreement as noted here: https://www.norcalunitedwE.org/hmis Activities include but are not limited to: • Attendance at required trainings and CES alignment meetings; • Adherence to the progressive engagement process to remedy a current housing crisis as quickly and efficiently as possible; • Use of diversion conversations throughout all stages of engagement with Program Guests; and • Participation and data entry in the HMIS, including applicable data elements related to the CES process, as established by NorCal HMIS. SECTION 8. PROGRAM STANDARDS Program Policies and Procedures Within 120 calendar days of the completion of construction, Subrecipient must provide to the City and have approved complete written policies and procedures for the operation and administration of the Program in accordance with the requirements set forth in this Agreement ("Operations Manual" or "Manual"). Promptly after the effective date of any material modification to a Program policy or procedure, Subrecipient shall provide a complete copy thereof to the City, Within 15 calendar days of any request thereof by the City, Subrecipient shall provide to the City any documents related to Program policies and procedures. At a minimum, Program policies and procedures must include the following components: The Program as it relates to the target population and the surrounding community must be designed to ensure that it: a) Is grounded in low -barrier principles, harm reduction, trauma -informed care, diversion strategies, and cultural competency best practices; b) Includes a description of how internal and external resources and partnerships are utilized to maximize Program Guest services; A description and specification of delivery method for all services outlined under Section 6 ("Program Services"); EEO Processes to ensure the Program does not: a) Require personal identification documents; b) Screen out for substance use; c) Refuse assistance for failure to participate in supportive services, HIS intake paperwork, or making progress on a service plan; or d) Require participation in religious services or activities; * Policies and Procedure Guidelines for the following areas: a) Organizational Chart b) Rights and Responsibilities of Guests c) Non -Discrimination and Equity d) Confidentiality e) Contraband control and confiscation f) Guest grievance g) HMIS process/timely data entry h) Harassment/Bullying i) Reasonable accommodations j) Just cause to deny services k) Critical incidents and reporting 1) Public Health incidents in) Pest control n) Pets and animals o) Storage p) Showers and Laundry q) Biohazard waste handling and disposal r) First aid/Emergency Preparedness s) Record management and retention Program Guest Engagement in Service Delivery and Program Design Provider must maintain policies and procedures for Guest Satisfaction by: a) Collecting and evaluating feedback from Program Guests; and b) Incorporating feedback from Program Guests into service delivery and Program 41 design Provider must provide collection used during the reporting period, assessments of the data, and how the findings were or will be incorporated into Program service delivery and Program design. Provider agrees to coordinate and provide persons who are experiencing homelessness or have previously experienced homelessness access to evaluation of the Program services through participation in a Program advisory group or as a guest member of the Subrecipient's board of directors or equivalent governing body. All files pertaining to personal Program Guest information must remain confidential and kept in a locked file cabinet or equivalent secure storage container. All computer files must be accessible by password only and otherwise secured using reasonable data security protocols. Subrecipient must maintain an inventory of all equipment and furniture purchased with funds awarded through this Agreement. SECTION 9. PROGRAM SITE MANAGEMENT AND SECURITY Program security and safety measures must include, but are not limited to: a) Staff at the Program Site employed by the Subrecipient including how to alert and evacuate all persons in the event of a fire or other emergency; b) Staff at the Program Site must ensure that egress paths are always maintained clear, unobstructed, and without combustible storage; c) All staff at the Program Site, whether employed by Subrecipient, staffed through a third -party vendor by the Subrecipient, or volunteering with the Subrecipient, must be trained on the following: • Cultural competency to best serve the target population; • The Program's terms of service; and • Critical incident reporting Subrecipient must develop an emergency preparedness plan ("Emergency Plan") in effect throughout the term of the Agreement. The Subrecipient must provide, at a minimum: a) Identification of the person(s) at the Program Site who is responsible for the initial response and subsequent action to be taken in the event of an emergency (i.e., the "persons in charge") during each shift; b) Phone numbers and resources as well as a contact protocol for Subrecipient and City staff, accessible to all staff and security at the Program Site at all times. c) Subrecipient must participate in the City's Community Engagement/Good 42 Neighbor Plan for the areas surrounding the Program Site including, but not limited to: • Methodologies for maintaining a clean and safe environment; • Strategies for building positive relationships with the surrounding community/neighborhood, and proactively addressing potential or actual community concerns; • Methods for electronic and/or written community feedback; and • Mechanisms to ensure community input has been reviewed and incorporated into operations plans, as appropriate. Subrecipient must actively participate in compliance and performance monitoring administered by the City. The City's staff involved in monitoring and/or administering the Agreement, and providing guidance or technical support to Subrecipient, may visit the Program Site from time to time. The City will make every effort to schedule these visits in advance. All Program progress must be documented in monthly or quarterly and term -end reports in a form and format determined by the City and shall be submitted to the City by deadlines determined by the City. The City reserves the right to modify or add new performance metrics to this Scope of Work from time to time upon reasonable consultation with the Subrecipient. During the Agreement term, Subrecipient must make reasonable, good -faith efforts to accomplish the Program performance outcomes specified below: Annual Performance Standards and Outcomes Measure Total unduplicated persons served by the Center Target 750 Total visits to the Program Site per Month 300 Total households enrolled in Coordinated Entry 250 43 ExhibitI! Real property in the City 0.. #.'#.w 9. County •:Shasta,• I: • . !: ! • s �. THAT REAL PROPERTY IN SECTIONS 14 AND 15 OF THE P. B. READING GRANT, 11-� THE CITY OF REDDING, SHASTA COUNTY, CALIFORNIA, DESCRIBED AS _.. 1 . � �• � I ! j •I s1 /. 1. �. 1 ♦ �.... .. �... �: l �: � �.. # �. �. 44 Exhibit D wmmwmmlzz=== F-� a IN AFN# IU4�UZO-UU 45 Exhibit E Schedule Performance Action Time Frame 1. City and Service Provider approve Agreement. March 30 2025 2. Service Provider provides acceptable insurance to Prior to City execution o the City Risk Management. Agree ent 3. Execution of Agreement Within 14 days of approval of insurance 4. Service Provider submits Final Operations Within 180 days before Manual to Project Coordinator. completion of the Center 5. Project Coordinator approves or rejects Final Within 30 days of receipt o Operations Manual. Final Operations Manual 6. City Manager approves or rejects Final Operations Within 30 days of Project Manual Coordinator approval 9. Service Provider begins the operation of the public Within 30 days following facility. issuance of Certificate of Completion. M REPORT TO THE CITY COUNCIL MEETING DATE: August 20, 2024 FROM: Steve Bade, Assistant City ITEM NO. 4.2(a) Manager ***APPROVED BY*** Recommendation Authorize the City Manager to approve an extension to the timeline to develop an Operations Agreement for the Day Resource Center. Fiscal Impact The Good News Rescue Mission's (GNRM) Day Resource Center (DRC) Project includes both capital and operational costs that are funded by the Encampment Resolution Funding (ERF) -3-L Program. There is no impact to the General Fund. Alternative Action The City Council (Council) could choose not to approve the DRC Operations Agreement extension, and provide alternative direction to staff. Background/Analysis On September 21, 2023, a ERF -3-L Program standard agreement in the amount of $8,354,955 was executed. The ERF -3-L grant's intent is to provide outreach, supportive services and connection to shelter for those living in the Linden/Mercy Canyon and Progress/Technology Way encampments. On November 21, 2023, Council approved the appropriation of the grant award and provided direction on grant awarded line items of including Crisis Intervention Response Team officers; case managers; street outreach; housing; day resource center; GNRM rehabilitation project; and City staff costs. Report to Redding City Council August 13, 2024 Re: 4.2(a) --Day Resource Center Operational Agreement Page 2 On February 20, 2024, Council approved the appropriation of funding for the DRC and directed staff to negotiate an operations agreement for the DRC within 180 days of execution of the DFA (September 9, 2024). A development funding agreement was fully executed between the City and GNRM on March 13, 2024. Since that time, Housing Division staff has met regularly with GNRM and they have conducted at least three community meetings for the DRC design and operations research. These meetings and outreach efforts have created the basis of the operational agreement. Currently, the agreement is in draft form and staff is negotiating final details. Staff anticipates this will take an additional 60 days. Once both parties' legal counsels have completed their review, staff will return to Council with the final agreement. Environmental Review This is not a project as defined under California Environmental Quality Act, and no further action is required. Council Priority/City Manager Goals • This agenda item is a routine operational item. CIT Y O ' F 0 R N ' ACITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: February 20, 2024 FROM: Steve Bade, Assistant City ITEM NO. 9.2(d) Manager ***APPROVED BY*** _ �2/�15/2024 6,pp4itn, �teie a e ss er 2/32/207 Ci lana e sbadeC&dtyofredding.org btippinC&Myofredding.org SUBJECT: 9.2(d) --Consider actions related to the Good News Rescue Mission's Property Purchase and development of a Day Resource Center. Recommendation Approve the following actions relative to the Good News Rescue Mission's acquisition of 3145 Veda Street (Assessor's Parcel Number (APN) 104-620-052-000) and 3150 South Market Street (APN 104-620-059-000) for the development of a community -served day resource center: (1) Accept the use of a broker's opinion of value to justify the $875,000 purchase price for the subject properties; (2) Authorize the City Manager, or designee, to negotiate and finalize a Development Funding Agreement that includes but is not limited to: (a) Providing an Encampment Resolution Funding Program grant in an amount not -to - exceed $3,000,000 as a secured, forgivable loan with a term that begins with the issuance of a building permit and ends three years after the opening date of the day resource center operating in accordance to a City Council approved operations agreement; (b) The City Manager establishing escrow specific conditions that include: a 45 -day escrow term; disbursement of acquisition funding; Phase I environmental site assessment submittals; a $20,000 contingency fund for applicable escrow extension accommodations, American Land Title Association endorsements, or other due diligence costs; and acknowledges a City of Redding approved use permit will be applied for after the close of escrow; (c) 18 -month term schedule of performance; (d) Scope and budget for the day resource center rehabilitation project; (e) Operations agreement negotiated within 180 days; and (3) Authorize the Mayor to execute the resulting Development Funding Agreement and the associated documents; and (4) Find that the aforementioned actions are exempt from review under the California Environmental Quality Act (CEQA) Guidelines, pursuant to Section 15061(b)(3) — Common Sense Exemption. A CEQA review will be completed as part of the use permit process once the details of the day resource center rehabilitation are defined. Report to Redding City Council February 15, 2024 Re: 9.2(d) --Good News Rescue Mission Day Resource Center Page 2 Fiscal Impact In November 2023, City Council (Council) adopted a resolution appropriating Encampment Resolution Funding Lookback Disbursement (ER Funding) funds in the amount of $8,354,955. Of this amount, $3 million of ER Funding is budgeted for the acquisition, rehabilitation and operation of a day resource center. The ER Funding does not require matching funds and there is no impact to the General Fund. Alternative Action Council could provide alternate direction to staff for the escrow process or the Development Funding Agreement (DFA) terms and conditions. In regard to the loan underwriting, Good News Rescue Mission (GNRM) obtained a broker's opinion of value to establish the likely fair market value of 3145 Veda Street and 3150 South Market Street (Property). A broker's opinion of value does not meet Uniform Standards of Professional Appraisal Practice appraisal standards and is considered cursory in nature. Council Policy 1901 establishes the requirement for an appraisal with regard to the disposition of City of Redding (City) -owned real property. This transaction does not involve City -owned property but rather involves the City providing ER Funding in the form of a loan for the purchase of real property on the behalf of a non-profit. Council may choose not to accept a broker's opinion of value and instead require a formalized appraisal which is estimated to cost approximately $5,500. Requiring an appraisal may take three months which could delay the escrow closing date, halt the transaction in its entirety, or cause a possible increase in purchase price. Background/Analysis On December 19, 2023, Council directed staff to negotiate a DFA with the GNRM to provide a zero -percent -interest loan for the purchase and rehabilitation of the Property. The loan is a forgivable loan with a term that begins upon the issuance of a day resource center building permit and terminates after three years of operating the center in accordance with the expectations that will be fully defined in the pending operations agreement. It is anticipated that the loan term will be for no more than five years. GNRM is currently in escrow for the purchase of the Property for $875,000. Staff is preparing the DFA - in order to complete the terms and conditions of the DFA, Council direction is needed to underwrite the property purchase value; escrow conditions; loan provisions and terms; use of funds, budget and schedule of performance; performance expectations; termination and clawback language; and regulatory obligations, if any. A Phase I Environmental Site Assessment (ESA) was completed for 3145 Veda Street. The assessment revealed no evidence of recognized environmental conditions in connection with the subject property. A Phase I ESA for 3150 South Market Street is pending and will be completed prior to the close of escrow. Pursuant to Council's direction with these DFA terms/conditions, the City Manager will be able to negotiate the final terms of the DFA, have the DFA approved by the City Attorney and executed by the Mayor. A draft DFA is attached for Council's review. Report to Redding City Council February 15, 2024 Re: 9.2(d) --Good News Rescue Mission Day Resource Center Page 3 Environmental Review Staff has reviewed the action and determined that execution of the funding agreement is exempt from environmental review under the California Environmental Quality Act (CEQA), pursuant to Section 15061(b)(3) — Common. Sense Exemption. CEQA applies only to projects which have the potential for causing a significant effect on the environment. This action will not result in physical alteration of the environment, and it can be seen with certainty that there is no possibility the action may have a significant effect on the environment. A separate environmental review will be completed once the details of the day center rehabilitation project are known. Council Priority/City Manager Goals • Government of the 21St Century — `Be relevant and proactive to the opportunities and challenges of today's residents and workforce. Anticipate the future to make better decisions today." • Public Safety — "Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding." Attachments Draft Development Funding Agreement with GNRM (3145 Veda Street & 3150 South Market Street) By and Between CITY OF REDDING and -GOOD NEWS RESCUE MISSION This DEVELOPMENT FUNDING AGREEMENT ("DFA") is made and entered into by and between the CITY OF REDDING, a municipal corporation and general law city ("City") and GOOD NEWS RESCUE MISSION, a California Nonprofit Public Benefit Corporation ("Developer"). A. The City of Redding (City) is a municipal corporation and general law city. B. Developer is a nonprofit corporation organized under the laws of the State of California and qualifying for Federal Tax -Exempt Status under Section 501 (c) (3) of the Internal Revenue Code and entry into this DFA has been authorized by its Board of Directors. C. Developer is presently in escrow on the real property located at 3145 Veda St identified as Assessor's Parcel Number 104-620-052-000 and an adjacent site located at 3150 South Market St identified as Assessor's Parcel Number 104-620-059-000, (the "Project Site" or "Site"). The Site is described in Exhibit 1, "Legal Description" and depicted in Exhibit 2, "Site Map," both attached hereto and incorporated by reference herein. Please note that the title report legal description depicts parcel number 104-620-059-000 in two "portions". D. Developer is interested in providing and developing additional homeless services that supports the homeless population within the City of Redding. E. Funding is needed for these additional homeless services F. City applied for and was awarded Encampment Resolution Funds. G. As specified in the executed Encampment Resolution Fund Standard Agreement, up to $3,000,000 is budgeted for the acquisition and rehabilitation of a day resource center. H. City desires to provide Encampment Resolution Funds to Developer for the purpose of assisting Developer with the homeless services, including acquisition and rehabilitation costs of the Project Site for the Project. I. On December 19, 2023, the City Council of the City of Redding (Council) passed a motion to provide a loan to Developer in an amount not to exceed $3,4000,000 to purchase and rehabilitate the Project Site. J. City and Developer desire to enter into this Development Funding Agreement (the "DFA") to provide financing pursuant to this DFA to set forth the mutual obligations of the City and Developer in connection with the Project. [T91111939—re" 1. DEFINITIONS. The following definitions shall apply for the purposes of this DFA: 1.1 "Broker's Opinion of Value" shall mean the value as established by the broker's opinion of property value to be completed as part of the purchase process. 1.2 "Certificate of Completion" shall mean the document attached as Exhibit 10. 1.3 "City Assistance" or "City Loan" shall mean the financial assistance provided to Developer by the City pursuant to Section 3.1. 1.4 "City Manager" shall mean the City Manager of the City of Redding. 1.5 "Completion Date" shall mean the date stated in the Schedule of Performance for the completion of the Project. 1.6 "Days" shall mean calendar days unless expressly stated otherwise. If the date or time period for any action under this DFA falls or ends on a Saturday, Sunday or federal, state or legal holiday, then such date or time period shall automatically be extended until 5 p.m. Pacific Time of the next Day which is not a Saturday, Sunday or federal, state or legal holiday. 1.7 "Deed of Trust" shall mean the deed of trust recorded against the Site to secure the City Loan, a representative copy of which is attached hereto as Exhibit 3. 1.8 "Development Funding Agreement" or "DFA" is this agreement which includes this document and the referenced exhibits and attachments to this DFA, which are all incorporated in this DFA as if set forth in full in the body of the DFA. A default of any of the referenced exhibits or attachments shall be deemed a default of this DFA. 1.9 "Developer" is iThe Good News Rescue Mission, a California nonprofit public benefit corporation. The principle office of the Developer is located at 2842 S. Market Street, Redding, CA 96001 1.10 "Effective Date" shall mean the date this DFA is signed by the City or its designee authorized to sign on behalf of the City. 1.11 "Escrow" is the escrow for the execution and recordation of the Security Documents. 1.12 "Escrow Agent" shall mean the title and escrow officer authorized to act within this transaction. 1.13 "Escrow Closing Costs" shall mean the fees, charges and costs identified in Section 4.3 applicable to the City Security Documents. 1.14 "Homeless services" may include services to individuals and families who are homeless including stabilization services, mediation, basic services such as meals; 'egg=a, case management, connection to services, or other eligible activities for homelessness prevention and housing navigation for persons who have become homeless. 1.15 "Improvements" shall mean the improvements existing or to be constructed and/or rehabilitated on the Site in accordance with the Proj ectFinal Plans and this DFA 1.16 "Predevelopment Costs" shall mean the approved Project predevelopment expenses that include the following; a) feasibility studies; b) planning, design and architectural expenses; C) legal and financial expenses; d) required permit and approval expenses; e) appraisals; 0 consulting expenses; g) filing fees, legal fees and regulatory fees; and 3 h) other expenses as authorized by the City. 1.1.7 "Project" is the purchase and rehabilitation of the Project Site located at 3145 Veda St Street, Redding, CA 96001 and 3150 South Market Street, Redding, CA 96001 and its subsequent use to facilitate homeless services and/or shelter services as further described in this DFA. 1.18 "Project Manager" shall mean the City's designee of a City staff person to review, approve and process invoiced payment requests associated with predevelopments costs, review the Project final plans, and serve as the City's liaison to participate with construction draw meetings and to ensure the Project is completed and operated as proposed. 1.19 "Project Site" or "Site" shall mean the real properties located in the City of Redding, Shasta County, California, at 3145 Veda St identified as Assessor's Parcel Number 104-620-052- 000 and 3150 South Market St identified as Assessor's Parcel Number 104-620-059-000 more specifically described in Exhibit 1 and depicted in Exhibit 2. 1.20 "Promissory Note" or "City Promissory Note" shall mean the promissory note to be executed by Developer which evidences the City Loan, a representative copy of which is attached as Exhibit 4. 1.21 "Scope of Development" is attached as Exhibit 6 1.22 "Schedule of Performance" is attached as Exhibit 7. 1.23 "Security Documents" shall mean the following documents related to the Project: The Deed of Trust; and the Declaration of Restrictive Covenant. 2. THE AGREEMENT. 2.1 Purpose of the DFA. The City represents that the completion of the Project is in the vital and best interests of the City of Redding and the health, safety, morals and welfare of its residents; for the purpose of community improvement and wellbeing; and to improve, preserve, and increase the supply of options of supportive services for homeless individuals in the City. Except for the risks and speculation inherent with respect to real estate development projects, Developer represents and agrees that its development of the Site under the DFA is not intended for speculation in land holding. 2.2 Scope of Project/Work. It is contemplated by the parties that the Developer will improve the Project Site by reconfiguring its interior,— exterior and surroundzn area to provide homeless clientele with supportive services. The scope of work to be carried out by the Developer under this DFA is more particularly described in Exhibit 6. 2.3 Term. This DFA shall commence as of the Effective Date and proceed as required by this DFA and shall continue for 2---10 years unless extended or terminated as provided herein. Following the expiration of the term or extension thereof, or if sooner terminated, this DFA shall have no force and effect, subject however, to post -termination obligations of the Developer except for any deed restrictions, covenants running with the land, or other agreements or provisions which by their terms survive the term of the DFA. 2.4 Exhibits. Exhibits to this DFA are as follows: a) Exhibit 1 - Legal Description of Site b) Exhibit 2 - Location Map C) Exhibit 3 - City Deed of Trust M d) Exhibit 4 - City Promissory Note e) Exhibit 5 - Declaration of Restrictive Covenant I) Exhibit 6 - Scope of Development g) Exhibit 7 - Schedule of Performance h) Exhibit 8 - Notice to Proceed i) Exhibit 9 - Notice of Completion h) Exhibit 10 - Certificate of Completion 2.5 Parties to the DFA. The parties to this DFA are: a) The "City" shall mean the City of Redding. The City is a municipal corporation and general law city. City as it is used in this DFA, includes the City Council of the City of Redding and any assignees of or successors to its right, powers, and responsibilities. The principal office of the City is located at 777 Cypress Avenue, Redding, California 96001. b) The "Developer" shall mean the Good News Rescue Mission (GNRM), a California nonprofit public benefit corporation. The principal office of the Developer is located at 2842 S. Market Street, Redding, CA 96001. The phone number for voice communication with the Developer is 530-242-5920. Developer as it is used in this DFA, shall include any permitted nominee, assignee, or successor in interest as herein provided. 3. PROJECT FINANCING. 3.1 City Loan/Assistance. The City shall provide a loan to Developer in an amount not to exceed TweThree-million rnhu- eft.. �fi-v��and No/ 100 Dollars ($23,955000,000) pursuant to this DFA (the "City Loan"). The City Loan is provided to Developer for the purpose of assisting Developer in the acquisition and rehabilitation of the Project Site to expand supportive services as indicated above. 3.2 City Loan Terms and Conditions. The City Loan shall be evidenced by a promissory note (Promissory Note) in favor of City for the full amount of the City Loan. The Promissory Note shall bear simple interest at zero percent (0%) per annum as defined in the Promissory Note and this DFA. The Promissory Note shall be secured by a Deed of Trust executed by the Developer and recorded on the Site ("Deed of Trust"). The Deed of Trust shall be a lien on the Project Site, which shall be in first position. The Promissory Note shall not be assumable by the successors and assigns of Developer without the prior written consent of the City. Payments received by the City or its loan servicing agent shall be applied first to the interest and subsequently to reducing the principal as identified in the Promissory Note. The Developer may pay in full, or any part, of the City Loan prior to the due date without penalty. If the Developer satisfactorily constructs and operates the Project for five (5) years, from the date of issuance of a Notice to Proceed by the City, the City Loan shall be forgiven in its entirety. Determining satisfactory operation will e at the sole discretion of the City but will include, 5 packet Pg, 309 ; but not limited to, a review of operating hours, number of participants served, adherence to the schedule of performance and adequate reporting. 3.3 Additional Financing Conditions. Subject to the notice and cure rights set forth in Section 13. 1, the full amount of the City Assistance, including principal and all accrued interest, shall become immediately due and payable upon the occurrence of any of the following: a) Developer's failure to proceed with and complete the Project in accordance with this DFA; or b) Developer abandons the Project for (3) months after written notice of such. abandonment or suspension from the City; ore ; C) Material breach of the final negotiated operation agreement; or d)) Other material breach of this DFA. 4. DISBURSEMENT OF CITY ASSISTANCE• ESCROW; RECORDATION OF SECURITY DOCUMENTS. 4.1 Disbursement of Proceeds from City Loan. Proceeds from the City Loan shall be disbursed as follows: Upon execution and recordation of all City Security Documents and completion of the escrow, a portion of the proceeds of the City Loan may be utilized for the acquisition and authorized title and escrow costs associated with escrow. , Following the disbursement of these funds, any balance remaining of the City Loan may be utilized by Developer for authorized infrastructure and/or construction costs associated with the Project that are incurred by Developer which will be disbursed through the City's Finance Division. Following the completion of construction, any remaining funds shall be returned to the City of Redding to reduce the balance of the City Loan. Further instructions will be provided to Escrow via a letter of instruction from City to Escrow Officer. 5. PREPARATION OF PROJECT PLANS AND RELATED DOCUMENTS. 5.1 Project Manager. Subject to the terms of this Agreement, the City shall designate a Project Manager who shall, in addition to other responsibilities under this Agreement, have the right of architectural and site planning review of all plans and drawings, including, but not limited to complete structural and engineering plans, and landscape plans associated with the Project as well as any changes therein. 5.2 Preparation of Project Final Plans. In accordance with the time line set forth in the Schedule of Performance, the Developer shall prepare the Final Plans. The Final Plans shall include all construction plans, drawings, specifications and other documents required to obtain the required building permits for the construction of the Project. The Final Plans shall conform in all material aspects with the Scope of Development, unless otherwise approved by the Project Manager. The Project Manager and the Developer shall hold regular progress meetings as necessary to coordinate the preparation, submission and review of the Final Plans. The Project Manager and the Developer shall communicate and consult informally to ensure that the formal submittal of all or any part of the Final Plans to the City can receive prompt consideration. 5.3 Review of Project Final Plans. Developer shall provide the Project Manager with a complete set of Final Plans for the Project prior to or concurrently with the initial submittal of the no Plans to the City's Building Division. The Final Plans shall be accepted by the Project Manager, if a) the Plans conform in all material respects to the Scope of Development and this Agreement, and b) no Substantial Changes, as hereinafter defined, have been made. 5.4 Review of Substantial Changes to Project Final Plans. 5.4.1 City Review. Notwithstanding the foregoing, any Substantial Change in the Final Plans is subject to City review. If the Developer desires to make a Substantial Change in the Final Plans, the Developer shall submit such proposed change, in writing, to the Project Manager for review. 5.4.2 Substantial Change. A Substantial Change in the Final Plans shall mean any of the following changes, with respect to the Project: (a) Changes in size or design resulting in an increase or decrease of greater than ten percent (10%) of square footage of—e--t -or an. increase or decrease in the number of bodr-oon+irooms. (c) Changes in use ksfor any section of the buildin or rounds. (d) Changes in use of exterior finishing or landscape materials substantially affecting architectural appearance or functional use and operation of the Project. (e) Material changes in size or placement of public service facilities; or material changes in general pedestrian or vehicular circulation in, around or through the Public areas of the Project. (f) Any changes required by or requiring approval of the City of Redding, the County of Shasta, or any state or federal board, body, or commission. (g) Any change which would preclude or materially reduce the ability to use the Project as set forth in the Final Plans and this Agreement. 5.5 Purpose of Review. Project Manager's review of Final Plans and any Substantial Changes is not an assurance of the adequacy or correctness of the Plans. Project Manager has reserved review rights to: a) assure that the Final Plans conform to the Scope of Development and the requirements of this Agreement; and b) assure that City funds which may be obligated under this Agreement are used as intended by the City. 5.5.1 Misrepresentation. If Project Manager's approval of the Final Plans or the changes to the Final Plans delivered to the City is based upon a willful and material misrepresentation of Developer made in conjunction with the Final Plans or changes to the Final Plans, nothing in this Section shall be construed to preclude or limit the rights or claims of the City with regard to such misrepresentations, including any rights the City may have to rescind such approval. f_gL •'►VI I qg J I r#Td Fffgg fl FIJ:• 6.1 Project Budget. At the times called for in the Schedule of Performance, the Developer shall provide a complete final Project Budget in a form and with specificity reasonably satisfactory to the Project Manager, including all "hard" and "soft" costs for the Project and reflecting, as possible, executed contracts. The final Project Budget will include a final construction 0 bid from the Project's Contractor. All Project costs that are not part of the Contractor's construction bid shall be listed separately as line items in the final Project Budget. Such final Project Budget shall be substantially in conformance with the Preliminary Project Budget. Reductions in total Project cost that occur as a result of competitive bid solicitation by the Contractor, are encouraged and shall be considered substantially in conformance with the Preliminary Project Budget. 6.2 Disbursement of Remaining Proceeds of City Loan. The parties agree that upon recording of the City Loan Deed of Trust as described in Section 4. 1, the remaining proceeds of the City Loan not previously expended will be controlled by the City's Finance Department. Each and any disbursement of funds from such account shall require a written authorization signed by the Developer, and the City's Project Manager authorizing the release of the requested disbursement. The Project Manager shall provide such written. approval within ten (10) business days of receipt of a complete disbursement request from Developer. 6.2.1 Disbursement during Construction. Prior to any disbursement for construction, the Project Manager, Developer and Contractor shall develop a mutually agreeable disbursement format. This format shall include certifications from the Project Manager, Developer and Contractor that all materials and construction included in the request for disbursement are consistent with approved final Project Specifications and supplemental specifications and that all. materials have been delivered to either the Project Site or installed and inspected as required. All disbursements shall be based on a percentage of completion and all disbursements shall reflect ten percent (10%) retention not including the costs of stored materials. (Retention shall be released following the recording of the Notice of Completion and completion of the 30 -Day mechanics lien period.) The proceeds of the City Loan shall be disbursed in accordance with the mutually agreed upon draw schedule described above. Disbursement shall be based upon satisfaction of the construction component upon which the draw request is based as determined in good faith by the Project Manager. Disbursements shall not exceed aggregate amounts set forth in the accepted and approved construction contract(s) for the Project. Developer and City acknowledge that it shall be the sole responsibility of the Developer to obtain the required written authorization for any request for disbursement. 6.3 Procurement. The Developer shall coordinate the solicitation of bids with the General Contractor based upon the Final Plans. Developer and General Contractor shall endeavor to obtain a minimum of three bids per subcontractor and, to the greatest extent possible, utilize local suppliers and subcontractors from within Shasta County. The General Contractor will comply with the applicable procurement requirements in 24 CFR Part 85. The Project Manager will coordinate with the Developer and provide the required documents to complete the bid procurement process. The Project Manager will complete a cost analysis and ensure that the bids are cost reasonable and conform to the proposed budget. The Project Manager's cost analysis includes initial subcontract bids, contract modifications and change orders. The final construction bid from the Contractor must have all non -construction categories, including, but not limited to, general conditions; profit and overhead; and permits, clearly identified as separate line items. 6.4 Construction. Developer shall construct the Project according to the requirements E established in this Agreement, including but not limited to the Scope of Development, Schedule of Performance and the Final Plans. In the event that the cost of construction of the Project, or any part of the Project exceeds the costs projected by Developer, Developer shall, nevertheless, bear the responsibility to complete, at Developer's cost and without right of contribution from City, the construction of the Project in accordance with this Agreement. The parties agree that such obligations of Developer shall be covenants running with the land and that they shall, in any event, and without regard to technical classification or designation, be to the fullest extent permitted by law 8 Packet Pg. 312 and equity, binding for the benefit of the City and enforceable by the City against the Developer, its successors and assigns. These covenants shall terminate upon the City issuing a Certificate of Completion for the Project. California State Prevailin IAall re_quiLements shall y to the rojcct, X11 bids will be submitted with wages reflectin the Prevailin IVa ere wire ants. 'f'l e CoiitrLt toi-, a iii raa,iv SUbcontr°atclo el'I'ected slaca;l cora:n,-_)Iy..with till laws related to r.he perionnance of llubhc Work iaaa la.arlin,,,, but riot Hiniteri to. -ma a,aaaerat L)i° yam$°� a��l��a+ � � 1tLeC�a�n-1sn _of the alr�_fi+;ttnja [, at)o r Code d gnd the aotb;aM ion setforth tti ._26of the ghfiarnia.I.._.: bor ;ar t lat Pato idelay ita r2f l ,a LII flaLg_ aa�ci_aa .W� a i ttwt;L!Lej� of°Industrial ffelstsarrrr certified oaavroll documentation tshcr> required, No Contractor ..or s�,abcorjtractor rria _lisoed in a l�aa_.tfc �l�cr�;l._c�a a Public...Work fta�ca ct urde"s re istered with the ite _ ar°trreaat of Industrial itc'latiorrs attarrUMIt to Labor Code °I d.w .ffatl aaaart r tx c to a ffaa tit°tfw t r ICtrv�at� tf _l r visas 12,x1 11ISr_-_r ,a a taaader I Sabo Code 17 twaf i_..No Contra ltr or stibcontractor ni v f~a.e_..giv arded, a a,(aratraa t or a.f)iibh Wo'rks ltac t 1 raf ,t ra fatc c to all _th J�wl2 ?rtL qrst iardustr i al If€ l ata0aaS air su ant to i-abor Code 7? 5, 6.5 Substantial Changes. Developer covenants and agrees that Developer shall not make or permit to be made any construction of the Project which incorporates a Substantial Change in the Project Final Plans, as described in subsection 5.4.2, without City review of such changes as provided in that section. 6.6 Changes during Construction. Developer shall, prior to their occurrence, notify the Project Manager of all Substantial Changes (as that term is defined in subsection 5.4.2) in the construction as well as changes which result in a material net increase in cost or may extend the period of construction beyond the Completion Date. To the extent feasible, the Developer agrees to submit all proposed Change Orders to the Project Manager for review and approval prior to implementation. 6.7 Payment and Performance Bonds. As part of the construction contract for the Project, Developer shall require the general Contractor to obtain payment and performance bonds in favor of the City for one hundred percent (100%) of the face amount of the construction contract price. All bonds shall be issued by a corporate surety authorized by the State of California. All payment and performance bonds are to be submitted to the Project Manager to complete the City Attorney approval process. City Attorney approval is a condition precedent to the Developer starting construction. In the event that the City Loan Deed of Trust is recorded prior to the closing of private financing for the development of the Project and Developer intends to utilize City Loan proceeds to construct the infrastructure improvements that are onsite and a part of the Project, this Section 6.7 shall be deemed satisfied if Developer, or the general contractor obtain payment and performance bonds in favor of the City for one hundred (100%) of the face amount of the construction contract price for such infrastructure improvements. %otwithstanding-an�thin to the contrary contained herein, Developer shall not commence construction on anv comrtonent of the Project until nav ent and nerfor ance bonds meeting the requirements of the Citi have; been obtained and approved by the Cites - 9 Pack 6.8 No Construction over Utility Easements. Developer shall not construct any of the Project on, over, or within the boundary lines of any casement for public utilities on the Project Site, unless such construction is provided for in such easement or has been approved by the beneficiary of the easement. 6.9 Conditions Precedent to Construction. The Developer shall not begin construction until the following conditions precedent have been satisfied or waived by the City: 6.9.1 The City Loan Deed of Trust has recorded pursuant to the terms of this Agreement; 6.9.2 The Developer has submitted payment and performance bonds as required by the City and the City Attorney has approved the bonds. 6.9.3 The Developer has obtained all consents, approvals, entitlements, and permits required for construction, including any and all environmental approvals and/or clearances required by any Project Lender; 6.9.4 The City has reviewed the construction bid documents, construction contract and final selection of the Contractor for the Project. 6.9.5 The Developer has obtained the proper building permits from the City; 6.9.6 The Developer has requested a notice to proceed from the City, and the City has notified the Developer in writing that it may proceed with construction; and 6.9.7 The Developer has issued a notice to proceed under the executed construction contract, if any. 0 6.9.8 The Developer has cured all existing breaches of this Agreement to the satisfaction of the City. E 6.10 Commencement and Completion of Construction. Developer shall promptly begin and thereafter diligently pursue to complete the construction of the Project and the development of the Project Site in accordance with the provisions of this Agreement and at the times specified in the Schedule of Performance; and complete construction not later than the date set forth in the Schedule of Performance, unless otherwise approved by the City. Time is of the essence. U.t C 6.11 Reports. During the period of construction, the Developer shall submit to the City a 4) written report of the progress of the work when reasonably requested by the City, but not more often a than once each month. The report shall be in such form and detail as may reasonably be required by the City and shall include a reasonable number of construction photographs taken since the last report if esl�-requested by the City. 6.12 Local State and Federal Laws. The Developer shall carry out the construction of the Project in conformity with all applicable laws, including all applicable federal and state labor standards. . 6.13 Anti -Discrimination during Construction. The Developer for itself and its successors and assigns, agrees that the following provisions shall apply to, and be contained in all contracts and subcontracts for the construction of the Project. (For purposes of this Section, 644Developer shall also mean Contractor or Subcontractor.) 6.13.1 Employment. The Developer shall not discriminate against any empl9vee or 10 1 Packet Pg. 314 applicant for employment because of race, color, religion, creed, age, disability, sex, sexual orientation, marital status, ancestry or national origin. The Developer shall ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, creed, age, disability, sex, sexual orientation, marital status, ancestry or national origin. Such action shall include, but not limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layout or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Developer agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the City setting forth the provisions of this nondiscrimination clause. 6.13.2 Advertising?. The Developer will, in all solicitations or advertisements for employees placed by or on behalf of the Developer, state that all qualified applicants will receive consideration for employment without regard to race, color, creed, religion, sex, marital status, or national origin. 6.14 City Access to the Project Site. Developer shall permit City representatives' access, without charge, to the entire Project Site at any time and for any purpose which City reasonably considers necessary to carry out its obligations and protect its interests under this Agreement. Purposes for City entry may include, without limitation, inspection of all work being performed in connection with the construction of the Project. Any City personnel entering on the Project Site shall register immediately at Developer's construction office, shall be escorted by Developer's designee and shall wear proper clothing an safety equipment. 9 7 e 7 7 615 Notification of Contractors, Architects and Engineers. Developer shall notify its Project Contractors, architects and engineers in writing of the requirements of this Agreement. Developer shall include, where applicable, the provisions of this Agreement in contracts and subcontracts for the Project, and Developer shall enforce such provisions. 6.16 Supervision of the Work. Developer shall be solely responsible for monitoring all construction, ensuring that the construction is performed in a workmanlike manner, and enforcing the terms of this Agreement and the construction contracts. City inspections of construction are made solely for assuring Developer's performance under this Agreement and protecting City's security interest in the Project Site. 6.17 Certificate of Completion. After the completion certificate has been issued by the City's Building Division and the Project Manager has determined that the Developer has completed the Project in accordance with Developer's obligations under this Agreement, the Project Manager will coordinate with the Developer to execute and record a Notice of Completion. Following the Notice of Completion 30 -Day lien period, the City will furnish the Developer with a Certificate of Completion certifying such completion. Such certification shall be a conclusive determination of satisfaction and termination of the agreements in the Agreement with respect to the obligations of the Developer to construct the Project and of the dates for the commencement and completion of construction, subject to any qualifications or limitations stated in such certification. Such certification and such determination shall not constitute evidence of compliance with or satisfaction of any governmental requirements other than City or any obligation of the Developer to any holder of a mortgage, or any insurer of a mortgage, securing money loaned to finance all or any part of the Project. 6.17.1 Refusal to Issue. If the City shall refuse or fail to provide a Certificate of Completion, the City shall, within five (5) Days after written request by the Developer, provide the Developer with a written statement, indicating in adequate detail in what respects the Developer has 11 I Packet Pg. 315 failed to complete the Project in accordance with the provisions of the Agreement, or is otherwise in default, and what measure or acts it will be necessary, in the opinion of the City, for the Developer to take or perform in order to obtain such certification. If the City wrongfully refuses to issue a Certificate of Completion, or upon passage of the five (5) business day period, Developer may seek a writ or order compelling City to issue the Certificate. 7. ANNUAL REVIEW. The City shall, at least every twelve (12) months during the term of this DFA., review the extent of good faith substantial compliance by Developer with this DFA. 8. COVENANTS REGARDING USE AND OPERATION OF THE PROJECT AND SITE. The Developer covenants and agrees for itself, its successors, its assigns and every successor - in -interest to all or any part of the Site that the Developer, such successors and such assignees shall act as follows: 8.1 Nondiscrimination. Developer, its successors and assigns, shall not discriminate on the basis of race, color, religion, creed, age, disability, sex (including gender identity and sexual orientation); ,, marital status, ancestry or national origin in the sale, lease or rental or in the use or occupancy of the Site and the Improvements. 8.2 Section 504. Section 504 provides that no qualified individual with a disability shall, only by reason of his or her disability, be excluded from the participation in, be denied the benefits of, or be subject to discrimination under any program or activity receiving Federal financial assistance. 8.3 Payment of Taxes, Assessments, Encumbrances and Liens. The Developer shall pay prior to delinquency all real estate taxes and assessments assessed and levied on the Site, at all times. The Developer shall not allow to be placed on the Site any mortgage, trust deed, encumbrance or lien other than such deeds of trust as the Developer may grant to secure construction or other financing related to the development of the Site unless expressly authorized by this DFA or the City. The Developer shall promptly remove or satisfy any levy or attachment made on all or any part of the Site. Nothing contained in this DFA shall prohibit the Developer from reasonably contesting the validity or amounts of any tax assessment, encumbrance or lien, nor to limit the remedies available to the Developer in respect to such contest. 8.4 Effect and Duration of Covenants. It is intended and agreed that the agreements and covenants provided in the Declaration of Restrictive Covenant shall be covenants running with the land and equitable servitudes thereon and that they shall, in any event, and without regard to technical classifications or designation, be binding, to the fullest extent permitted by law and equity, for the benefit and in favor of, and enforceable by, the City, the City's successors and assigns, any other governmental entity acting within its authority and any successor in interest to all or any part of the Site against the Developer, its successors and assigns and every successor in interest to all or any part of the Site, and any party in possession or occupancy of the Site and any subcontracting party or parties or other transferees under this DFA. 8.5 Effect of Violation. The City is deemed the beneficiary of the terms and provisions of this DFA, the Declaration of Restrictive Covenant, and the covenants running with the land, both for its own rights and for the purposes of protecting the interests of the community and other parties, public or private, in whose benefit this DFA and the covenants running with the land have been provided. The DFA, the Declaration of Restrictive Covenant, and the covenants shall run in favor of the City without regard to whether the City has had or does have any interest in the Site. 8.6 Uses. The Developer covenants and agrees for itself, its successors, its assigns and every successor in interest to the Project, that during construction and through thean- pa-yme- 12 pefiodLerin of the DFA, its successors and assigns, shall devote, use, operate, and maintain the Project in accordance with this DFA. All uses conducted on the Project Site, including, without limitation, all activities undertaken by the Developer pursuant to this DFA, shall conform to all applicable provisions of the City of Redding Municipal Code, and any restriction of record or any of the recorded documents against the Project Site. 8.7 Public Facility. The Developer affirms the use of the Project Site as a public facility for the Developer's mission to provide supportive services to homeless individuals and families. 8.8 Management and Maintenance. The Developer shall manage and maintain, or cause to be managed and maintained, the improvements throughout the term of this DFA. The Developer shall keep parking lights, lighting fixtures, trash enclosures, and all areas which can be seen from adjacent streets, free from any accumulation of debris or waste materials by performing regularly scheduled maintenance. If at any time the Developer fails to maintain such areas in the manner required pursuant to this DFA, and said condition is not corrected upon written notice by the City pursuant to section 14.9 of this DFA, the City may (but shall not be obligated to) perform the necessary maintenance and the Developer shall pay such costs as are reasonably incurred for such maintenance, together with the interest at the maximum lawful rate until full payment is made to the City. The monies expended by the City shall become a lien against the Site which shall be junior and subordinate to deeds of trust for financing or refinancing of the improvements as allowed pursuant o this DFA. 9. INDEMNIFICATION. Developer hereby agrees to protect, defend, indemnify and hold harmless, City, its officers, elected or appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses, judgments, demands, penalties, fines, defense costs, and consequential damage or liability of any kind or nature, however caused, arising directly or indirectly out of the obligations or operations herein undertaken by Developer, but only to the extent such damage or liability is caused in whole or in part by any act or omission of the Developer, any contractors or subcontractors of Developer or anyone for whose acts Developer may be liable, including, but not limited to, concurrent active or passive negligence, except where caused by the active negligence, sole negligence or willful misconduct of the City or resulting or arising from allegations that the City failed to administer the program in accordance with applicable law. Developer will conduct all defense at its sole cost and expense and City shall have right to approve or disapprove legal counsel defending the City. City shall be reimbursed for all costs and attorney's fees incurred in enforcing this obligation. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable, but it is the intent of the parties that nothing in this provision is intended to otherwise reduce any insurance coverage on any policy of insurance held by the Developer or its subcontractors to which the City would otherwise be entitled to in the absence of this provision; accordingly the indemnity obligations hereunder shall not apply to this extent this indemnity would reduce or eliminate existing insurance coverage that would inure directly or indirectly to the benefit of the City. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Developer. This Section 4-9-9 shall survive the termination of this DFA, irrespective of the reason for its termination, until a date that is ten (10) years following the date the City furnishes the Developer a Certificate of Completion; provided however that nothing in this provision is intended to extend the statute of limitations by which any party other than the City can bring their claim. 10. INSURANCE REQUIREMENTS AND PUBLIC SAFETY PROTECTIONS. Developer shall promptly take steps to protect the public from the risk of injury whether om 13 1 Packet Pg. 317 the condition of the Site or Developer's activities in connection with the Site. The Developer shall obtain and maintain, or require the contractor and subcontractors for the Project to purchase and maintain the following insurance for claims which may result from the operations under the DFA of the Developer, any contractor, subcontractor or anyone directly or indirectly employed by any of them, or by anyone for whose acts any of them may be liable: 10.1 Developer Insurance Requirements. Developer shall procure and maintain for the duration of the DFA insurance against claims for injuries to persons or damages to Site which may arise from or in connection with Developer's activities hereunder. The cost of such insurance shall be borne by Developer. Developer shall maintain the following noted insurance: Coverage Required Not Required Commercial General Liability X (lif c,Contractor does not carry) Comprehensive Vehicle Liability X Workers Compensation and Employee Liability X Hazard/All Risks X (After course of construction) 10.2 Contractor Insurance Requirements. During the Course of construction, Developer shall insure that the Contractor and Subcontractors maintain the following noted insurances: Coverage Required ......................................................................-N of Required Commercial General Liability X Comprehensive Vehicle Liability X Workers Compensation and Employee Liability X Builder's Risk/Course of Construction x --------------------------------------- x Hazard/All ---------------------------.- Hazard/All Risks EN 10.3 Minimum Scope and Limits of Insurance. Coverage shall be at least as broad as (a) Insurance Services Office form number CG -0001, Commercial General Liability Insurance, in an amount not less than $1,000,000 per occurrence $2,000,000 general aggregate for bodily injury, personal injury and property damage; (b) Insurance Services Office form number CA -0001, Comprehensive Automobile Liability Insurance, which provides for total limits of not less than $1,000,000 combined single limits per accident applicable to all owned/non-owned and hired vehicles; (e) Statutory Workers Compensation required by the Labor Code of the State of California and Employers' Liability Insurance in an amount not less than $1,000,000 per occurrence. Both the Workers Compensation and Employers' Liability policy shall contain the insurer's waiver of subrogation in favor of the City, its elected officials, officers, agents, employees and volunteers; (d) Deductibles and Self -Insured Retentions: Any deductibles or self-insured retentions, and any modifications thereof, must be declared to and approved by the Risk Manager of the City of Redding. 10.4 Other Insurance Provisions. The general liability policy is to contain, or be endorsed to contain, the following provisions: (a) The City, its officers, officials, employees, agents, and volunteers are to be covered as insured as respects: liability arising out of activities performed by or on behalf of 14 Developer; products and completed operations of the Developer; premises owned, occupied, or used by the Developer. The coverage shall contain no special limitations of the scope of protection afforded to the City, its officers, officials, employees, agents, or volunteers. (b) Developer's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents, and volunteers. Any insurance or self- insurance maintained by the City, its officers, officials, employees, agents, or volunteers shall be in excess of Developer's insurance and shall not contribute with it. (c) Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) Days prior written notice has been given to the entity. (d) All insurance policies and renewals thereof shall be in form acceptable to the City. Developer shall promptly furnish to City copies of all renewal notices and all receipts of paid premiums. In the event of loss, Developer shall give prompt notice to the insurance carrier and City. City may make proof of loss if not made promptly by Developer. 10.5 Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A: VII. 10.6 Verification of Coverage. Developer shall furnish the Risk Manager of the City of Redding with certificates of insurance and original endorsements effecting coverage required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the Risk Manager of the City of Redding as a condition precedent to the obligation of the City to disburse funds to Developer. 10.7 Failure to Maintain. If Developer fails to obtain or maintain, or cause to be obtained and maintained, any insurance required by this DFA, the City shall have the right to purchase the insurance and Developer shall reimburse the full costs to City of obtaining such insurance. 11. PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER. 11.1 Prohibition Against Transfer of Rights or Obligations. City has entered into this DFA in reliance upon the identity and qualifications of the Developer. Developer may not assign or otherwise transfer Developer's rights or obligations under this DFA without the prior written consent of City. 11.2 Transfer or Assignment of Interests in the Site. Except as required to obtain any other financing approved by the City, Developer shall not, make any total or partial sale, assignment or transfer of any interest in the Site without the prior written approval of the City. 12. FINANCING AND LENDER'S RIGHTS. 12.1 Limitation on Encumbrances. Prior to the completion of the Project, Developer shall not engage in any financing or any other transaction creating any encumbrance or lien on the Site, whether by express agreement or operation of law, except to obtain funds to be used only for actual costs of the Project and other expenditures necessary and appropriate to develop the Site in accordance with this DFA. Developer shall notify the City in advance of any proposed financing to be secured by the Site. In any event, Developer shall promptly notify City of any encumbrance or lien that has been created on or attached to the Site. 12.2 Foreclosure. City shall have the right to bid at any foreclosure sale held by or for any Lender on the Site. 15 12.3 Eminent Domain. Nothing in this DFA shall limit any exercise of City's power of eminent domain over the Site. 13. DEFAULTS AND REMEDIES. The provisions of this Section are in addition to any provisions in the City's Deed of Trust regarding default and remedies. Subject to any extension of time permitted by this DFA, a failure or delay by a party to perform any term or provision of this DFA constitutes a default of this DFA. 13.1 Cure. Except as otherwise provided in the DFA, if either party shall default in, or breach, the DFA, such party shall cure such default or breach within thirty (30) Days after receipt of written notice from the other party of such default or breach. If the defaulting party does not cure or demonstrate to the reasonable satisfaction of the other party that it has acted and continues to act promptly and diligently to cure the default within such time, the aggrieved party may declare an "Event of Default" and institute proceedings to cure and remedy such default or breach, including, but not limited to, proceedings to compel specific performance by the party in default. While neither party is relieved of any obligation under this DFA to give notice, mere failure to notify the other party shall not be deemed a waiver of the defaulting party's default. 14. GENERAL PROVISIONS. 14.1 Time for Actions. City and Developer shall each do the actions required of them, on or before the times specified in this DFA. Unless otherwise provided, City shall give required approvals or disapprovals whi-n--feu#een-(4-pl`omMtly after submission, except matters which must be decided by the City s Counc it Board of"Administrative Review or other -similar entity d Dimes, which shall be decided within forty-five (45) Days. 14.2 Counterparts. This DFA may be executed in two (2) counterpart originals, each of which shall constitute one and the same instrument. 14.3 Priority of Contents of DFA. In the event of a conflict between the terms of this DFA and the Exhibits, this DFA shall be given precedence. 14.4 Inspection of Books and Records. City has the right, at all reasonable times and upon reasonable notice, to inspect the books and records of the Developer pertaining to the Project as necessary to assure compliance with the provisions of this DFA. Developer shall keep such books and records as City may reasonably require to assure Developer's performance of its obligations under this DFA for the length of 2-5-10 years. 14.5 Fees, Commissions, Gifts or Interests. Neither party shall be liable for any real estate commissions, brokerage fees or finder's fees which may arise from this DFA. City and Developer each represent that neither has engaged any broker, agent or finder, and that neither claims such a commission or fee, in connection with this DFA. Developer shall pay no fee or commission, make no gifts and provide no interest in the City Loans to any employee or official of the City. 14.6 Entire Agreement. This DFA, including all of the exhibits and attachments, integrates all of the terms and conditions related or incidental to its subject matter, and supersedes all negotiations or previous agreements between the parties with respect to its subject matter. 14.7 Waivers and Amendments. All waivers of the provisions of this DFA must be in writing and signed by the appropriate authorities of the City or the Developer, and all amendments hereto must be in writing and signed by the appropriate authorities of the City and the Developer. However, minor amendments which do not result in a substantial or functional change to the original intent of the DFA and do not cause an increase to the maximum amount payable under this DFA may be agreed to in writing between Developer and the As4stan4City Manager or designee. I 16 14.8 Non -liability of City Officials and Employces. No member, official or employee of the City shall be personally liable to the Developer, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Developer or its successors, or on any obligations under the terms of this DFA. 14.9 Notices and Demands. Any notice, demand or other communication under the DFA by either party to the other shall be deemed to have been full and properly given when made in writing, enclosed in a sealed envelope, and deposited in the United States Post Office, certified mail, postage prepaid, to the addresses for City and Developer stated in Sections , 14.10 Jurisdiction, Venue and Attorneys' Fees. 14. 10.1 Jurisdiction and Venue. Any legal action(s) concerning the DFA or the performance of any party thereunder shall be brought only in the court of appropriate jurisdiction in the County of Shasta. The Developer and the City agree that jurisdiction and venue shall only be in said courts. 14.10.2 Attorneys' Fees. In the event any legal action, including arbitration, is brought by either party to this DFA to enforce this DFA or for breach of this DFA or for a declaration of the rights and duties under this DFA, the prevailing party shall recover costs and reasonable attorney's fees in addition to any other relief to which that party may be entitled. 14.10.3 No Party Deemed Drafter. In the event of a dispute between the parties hereto over the meaning of this DFA, no party shall be deemed to have been the drafter hereof, and the principle of law that contracts are construed against the drafter does not apply. Section 14.10.4 Other Approvals Required. This DFA shall not be construed as a grant of any land use entitlement nor shall it be construed as a waiver of any right held by the City of Redding to disapprove or condition any approval for the Project pursuant to the Redding Municipal Code and the laws of the State of California. Section 14.10.5 Ordinance Not Adopted. In the event that an ordinance is not adopted which would facilitate the uses contemplated by this DFA, or that the Project is not approved as an appropriate use of the Project Site or in the event Developer determines that it shall not apply for approval of the Project, Developer shall, not later than one hundred and twenty (120) calendar days after the Council fails to adopt the authorizing ordinance, or approve the use of the Project Site, return all funds granted pursuant to this DFA without payment of interest. In the event that Developer determines it shall not proceed with the Project after having been granted a land use entitlement, it shall make such determination and provide written notice of the same to the City no later than thirty (30) calendar days after a final land use entitlement is granted by the City of Redding. If Developer fails to provide such notice, the one hundred and twenty (120) calendar day time -frame for repayment to the City shall commence on the lapse of the thirtieth (30tH) day 10//1011 IN01UI\10111711 Zil9WIT" aWIN10100fflVR111►•/111l11111W.1110 17 IN WITNESS WHEREOF, the City and the Developer have executed this DFA on the respective dates set forth below: Date: ATTEST: Sharlene Tipton, City Clerk Date: CITY: City of Redding Barry Tippin, City Manager APPROVED AS TO FORM: Christian M. Curtis, City Attorney In In DEVELOPER: Good News Rescue Mission, a California Nonprofit Benefit Corporation By: Jonathan Anderson Title: Executive Director TaxID#-94- 1652602 EXHIBIT 1 Es�I tiro of Site described as follows-, THAT REAL PROPERTY IN SECTIONS 14 AND 15 OF THE P. B. READING GRANT IIS THE CITY OF REDDING SHASTA COUNTY CALIFORNIA DESCRIBED AS FOLLOWS: PARCEL, I: (AEN: 104-620-052-000 COMMENCING AT THE NORTHWEST CORNER OF PARCEL C AS SHOWN ON A SURVEY FILED MARCH 27. 1984 IN BOOK 46 OF LAND SURVEYS AT PAGE 1039 SHASTA COUNTY RECORDS THENCE ALONG THE NORTH LINE OF PARCELS C AND Q OF SAID SURVEY SOUTH 880 24' 00" EAST A DISTANCE OF 153.07 FEET THENCE LEAVING SAID NOR E OF 70.60 FEET TO THE POINT OF BEGINNING; THENCE CONTINUING SOUTH 2' 55'34" EAST, A DISTANCE OF 79x28 FEET MORE OR LESS TO A POINT ON THE NORTH LINE OF PARCEL B OF SAID SURVEY RECORDED IN BOOK 46 OF LAND SURVEYS AT PAGE 103 ° THENCE ALONG SAID NORTH L E SOUTH 880 24'00" EAST. A DISTANCE OF 2.42 FEET TOTHE NORTHWEST CORNER OF THAT CERTAIN PARCEL DESIGNATED "PARCEL 4" IN DEED RECORDED ON NOVEMBER 5 1990 IN BOOK 2659 OF OFFICIAL RECORDS AT PAG . ALONG THE WEST LINE OF SAID "PARCEL 4". SOUTH 20 38'00" EAST. A DISTANCE OF 96.59 FEET TO A POINT THAT BEARS NORTH 87- 22'00" EAS,.TA D.ISTA.NCF, OF.] 4..00FF,.FTFR.OM THE SOUTHEAST CORNER OF PARCEL A OF SAID SURVEY RECORDED IN BOOK 46 OF LAND SURVEYS AT PAGE 103, THENCE SOUTH 87' 22'00" WEST. A DISTANCE OF 14.00 FEET TO THE SOUTHEAST CORNER OF SAID PARCEL k THENCE ALONG THE SOUTH LINE OF SAID PARCEL A. SOUTH 870 14'54" WEST, A DISTANCE OF 13021 FEET(SQUTH 87- 22' 00" WEST, 130.21 FEET PER 46-L.S,-103), MORE OR LESS TO THE EAST LINE OF VEDA STREFI THENCE AL ONCE SAID EAS T L INE NORTH 60 11' 00" WEST. A DISTANCE OF 188.00 FEET- THENCE LEAVING SAID EAST L INE SOUTH 880 24'00" EAST A DISTANCE OF 153.45 FEET- MORE OR LESS ESS TO THE POINT OF BEGINNING AND AS DESCRIBED AS RESULTANT PARCEL A OF PROPERTY LINE ADJUSTMENT PLA -6-06. PARCEL 2: (APN: 104-620-059-000 PORTIONI BEGINNING AT THE SOUTHEAST CORNER OF PARCEL A AS SHOWN ON A SURVEY FILED MARCH 27, 1984 IN BOOK 46 OF LAND SURVEYS AT PAGE 103, THENCE SOUTH 6 F LOT 29 OF BLOCK 2 OF THE ALTA UBDIVISION BOOK 5 OF MAPS PAGE 53 A DISTANCE OF 164.40 FEET TO THE SOUTHWEST CORNER OF SAID LOT 29° THENCE. NORTH 870 22' WEST ALONG THE SOUTH LINE OF SAID LOT 29 50.00 FEET TO THE sCii 1TIIEAST CORNER THEREOF- THENCE NORTH 6°11' WEST ALONG THE LINE COMMON TO LOTS 29 AND 30 OF SAID ALTA SUBDIVISION 67.38 FEET TO THE NORTHWEST CORNER OF SAID LOT 30- THENCE NORTH 87c22'EAST ALONG THE NORTH LINE OF SAID LOT 30,A DISTANCE OF 30.23 FEET- THENCE NORTH 2- 38' WEST 187.00 FEET TO A POINT ON THE NORTH LINE OF PARCEL BAS SHOWN ON 46 LAND SURVEYS AT PAGE 10 MORE OR LESS TO A POINT WHICH BEARS NORTH 870 22' EAST 14.00 FEET- THENCE NORTH 2c38'WEST 86.00 FEET FROM THE POINT OF BEGINNING- THENCE, SOUTH 20 38° EAST 86.00 FEET- THENCEg SOLTTII 87° 22' WEST 14.00 FEET TO POINT OF BEGINNING. PARCEL 3: (APN: 104-620-059-000 PORTION1 BEGINNING AT A POINT ON THE NORTH LINE OF LOT 30 OF BLOCK 2 OF THE ALTA L SUBDIVIMQN ROOK 5 OF MAPS. PAGE 53) DISTANT THEREON NORTH 870 22'EAST — -— 19 EXHIBIT 2 Locati(!p Map 21 W, EXHIBIT 3 City Deed of Trust RECORDING REQUESTED BY: City of Red din r CITY BUSINESS - NO FEE Section 6103 of the Cove went Code of the State of California AND WHEN RECORDED MAIL TO: City pf'Reddin Fiousin division P.0, Box 496071 777 Cypress Avenue Redding. CA 96049-6071 CITY OF REDDING DEED OF TRUST AND ASSIGNMENT OF RENTS THIS DEED OF TRUST is made this day. 2024. GOOD NEWS RESCUE MISSION. a California Nf—profit Public Benefit C; i Doration as to -Guitable title herein called "Trustor," and/or "Borrower" whose address is 2842 South Market Street lteddin C✓� 9600 FIRST AMERICAN TITLE COMPANY, herein called "T stee " whose address is 1900 Churn Creek Road. Reddi"Or CA 96002- and the CITY OF REDDING a municiDal co ---- - -- tion and general law city, hose address is 777 Cypress Avenue, Redding, Califomia 96001 herein called "Beneficiary'" and/or the "Lender". WITNESSETH: That Truster Irrevocably, Grants, Transfers and Assh2ans. to stee in Trust with Dower of Sale that roe�ty in the C ity of I�edcl("C�lty")g C oaznty of Shasta, State of Californiadescribed as: EXHIBIT A -_Legal Description ASSESSOR'S PARCEL NUMBERSe 104-620-052-000 and 104-620-059 TOGETHER es now or in the future thereon it bein understood and a reed that all classes of ro ert attached r unattached used in connection herewith shall be deemed fixtures, (b) rents issues —and profits thereof., and icy all sums of pjppgy_pqyable on purchase of said ro ert assured b alien thereon or payable under any agreement for the sale thereof, SUBJECT, HOWEVER, to the right, power and authority hereinafter and conferred upon Beneficiqjyjq_collect and a I y such�rents issues and profits, and all sums of one payable on the purchase price of said property secured by a lien thereon orTayable tinder any agreenjent. BORROWER HEREBexpressly acl�nowledes and agrees that the subject loan„ this Deed of Trust and the ro ert which serves as securit for the Note and Deed of Trust one that the Borrower is expressly enterimay into for the benefit of the horneles,,s �oplqtion and shelter au ort sc ices and not for root and not ira an uva related. to Borrower's ho e or residence, As such, Borrower further acknowledges and agrees that Lender likewise is making this loan on the aforesaid basis and thus intends to enforce ani and all of its rights qLaccordingly. FOR THE PURPOSE OF SECURING: 23 1. Pa taaent of the su of Three . it iart incl /100 Dollars $3,000,0001 without interest thereon according to the terms of a certain Promissory Note of even date herewith, designated as the "Procaaissory �otc-9 made �T°r�astos•, �aay�le to flee order of` the f3eneiiciar� and extensions or renewals thereof. 2. Payment of such additional suns with interest thereon as; (a) may be hereafter borrowed from the Beneficiary by the then record owner or owners ofsaidpproperty when --- -- - evidenced they are secured hereby, or b as a be added to the indebtedness secured n accordance with the provisions of this Deed of Trust, 3, Performance of each and every obligation covenant,Promise, or cement of Trustor contained herein. 4. Payment, with interest thereon of any other present or future indebtedness or obligation of flee Trustor or of an successor in interest of the Trustor to said ro erty) to the Beneficiar recitin that the are scoured hereb whedaer created directly or acquired by assi n agent, whether absolute or continent, whether due or not whether otherwise secured or not or bather existin at the tinea of the execlttion of the Deed of Trustor arising thereafter. 5. Performance of each agreement of Trustor contained in an assent Funding Agreement (inCILIding without limitation the Exhibits thereto) entered into between Trustor and Beneficiga for the development, construction of improyementasadoration of rent restrictions or other affordability covenants or operation of certain activities on the above- dLescAbcd property TO PROTECT THE SECURITY OFT I EED OF TRUST TRUSTOR AGREES: I To keep said propegy in mood condition and �riq�into �qjlow BeneficiapLq�iits representatives to enter and inspect the premises at all reasonable times and access thereto shall be raer aaitted for that taurpose; not to rezaaove or demolish any -building -thereon, not to make alterations thereto without the consent of the Beneficiary; to suffer or permit no change in the mineral nature of the occupancy of the rare s without Beneficiary!swritten conseiLt. to co late or restore ro tl and in ood and workmanlike rriqqqer an building_Ahich may be constructed, damaged, or destroyed thereon, including, without restricting-ttie Zenerality of the fore�oin�g dauaa�e frozaa termites and dry -rot, to pa when d:�e all clai s for labor erfornted and materials furnished in connection with such property and not to 1permit any mechanic's lien ainst such pro ertys to ca Ial ith all laws affectin such property or recluirzn easy alterations or improvements to be made thereon- not to initiate or acquiesce in anyronin reclassification without it waste thereorynot , to commit, suffer, or permit any act ui,,)on such ro ert in violation ofhe law- and to aint ofthe p___, �gultjyqtg, irrigate, fertilize, fungi -ate runeand do all other acts that from the character or use of said property may be reasonably neces on agreements of lease or conditional sale of all fixtures, thereon. If the loan secured hereb or any part thereof is being obtained or should anyadditional loan be made hereafter ements or construction of affordable housing on said pro ertyg Truster further areesg mythii in this Deed of Trust to the contrary notwithstandin a roved plans and specifications satisfactory to Beneficiary; (b) to allow Beneficiary to inspect such property at all times during rehabilitation; (6 to replace any work or materials unsatisfactory to Beneficiary within fifteen (15) calendar days after written notice from Beneficiary of such fiact, which notice a be even to Trustor by re istered or certified ail sent to its last known addressR or by personal service of the construction of such i_ prove ants for airy reason whatsoever for a period of fifteen 1115) calendar da sw whether consecutive or not, without the wKjjtgp.rrerrnissjon of the Beneficiary„ je)pay ay when due all , ----- claims for labor and materials furnished in connection with the said construction and/or rehabilitation and not topermit any claims filed of record 5 of lien for said work or material to be f against the said property; and (f) not to permit any stop notice claims to be presented to Beneficiary. If the said art of a lamer tract Don which imr rovernents will be constructed, ntracts for said construction which recordsshall ertain to the saidro art onl and shall kee se erste full and co _ late of all work and materials furnished to tle said ro art Trustee a on resentation to it of an affidavit si fined b the I3erreficiary settingforth E'acts showing a default y T star under this leers ra is authorized. to accept as true and conclusive all facts and statements therein and to act thereon hereunder. 2. To provide and maintain in force at all times with respect to said property, fire and other tyres of insurance as rna be required Beneficiary, All of such insurance shall have a loss payable endorsement in favor of Beneficiary, shad contain an endorsement that such insurance shall not be canceled or modified without thirty ('30) days advance written notice to Beneficiary t and with such corn anies as j--,, be satisfactor to Benefrciar and the offic es therefor shall be delivered to and remain in possession of Beneficiary as further security for the faithful rmance of Trustor hereunder. At least thirty (30) days prior to the expiration of any insurance policy, a policy or policies rene�vin or extending such ex irizi insurance shall be delivered to Beneficiary together with written evidence showing payment of the premium therefor and, in the event _qgy_such insurance o ic and evidence of the dayrne Trustor to Beneficiar T stor b executin this Deed of Trust s ecificaily—re uests Beneficiary without notice to or demand a on Trustor and without releasin Trustor frorn anvobli-ation hereof tarn such insurance thropZh or from any insurance D�,en� or company acceptable to it, pa t 1,ie thereofpre iu thereof and ar add thea Dunt to the indebtedness secured hereby, which amount shall bear a like rate of interest. Benei (i!'::; furnish to ; i ' 1- Ljjj�� insurance a�� court any, or �q� other �q infonnation contained in or extracted from any insurance policy theretofore delivered to Beneficiary pursuant hereto and any information concernir� the loan secured hereby, Neither Trustee nor Beneficiary shall be responsible for such insurance or for the collection of any _insurance rpnonies, or for any , insol olvency of any insurer or insurance underwriter. In case of insurance loss, Beneficiary is hereby authorized either (a) upon pLior notice toinsurance policies provided for in this document without the consent of the Trustor, orb to allow Trustor to agree with the insurance Kgany Kcompanies gaj�heam�ount to �b the loss. In either case-, the Beneficiary -s authorized to collect and make receipt any such insurqnce monev, If Trustor is obliapted to restore or re lace tlpe danpa ed or destro pd buildin s or inp rave eats under the terms of an lease or leases which are or may be prior to the lien of this Deed of Trust and such dama(-Ye oi- destruction does not result in cancellation or termination of such lease9 such proceeds, after deducting therefrom any expenses incurred in the collection thereof, shall be used to reimburse the Trustor for the cost of rebuilding --g �restqdqg_jb,e buildira s or i provpr�rpnts on sand premises. In all other cases, such insurance procg.-gedss_AqtLjthpeMotion of the Beneficiary, shall either b.g�fied applied re�dqctio�nof the indebtedness secured her�gjb�whgthg due or not or in such order as Beneficiary may determine, be held by the Beneficiary and used to reimburse the Trustor for the cost of rebui1qdiqg_2L_KeqoKrjjqg _the buildin,3_,, or improvements on said Such uildrn s and i prove pats shall be so restos ed r rebuilt as to be of at Least equal value and substantially the same character as prior to the darn4gg_or degruction and shall be in a condition satisfiiqtor�Bepeficj or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. Any and all unexpired insurance shall inure to the benefit of, and ass to the purchaser of, the property conveyed at any Trustee sale held hereunder. 3. To pay- Laj at least ten (1 0) days before deliqqqqg�nm �-,Yene�rqlqnds pe al fit� and County taxes affecting such Tirpoperty; (b) when due allspecialassessments for public rrrr rove ants without pr ittn an ins t bond to issue for any s ecial assessment -Ac when due all encumbrances, charges and liens with interest on said property, or any part thereofrlric are ora ears to by rior or su prior hereto° d if the securit of this Deed of Trust is a leasehold estate, to make any payment or do any act reqgired of the Lessee or its successor in interest under the ternis of the instrument or instruments creating said leasehold - all costs, fees and expenses of this trust- M for any statement rMa -rding the obligation secured hereby any a Dunt de andel by Beneficiarynot tQ exceed the macLimum flowed�blqw law at the time when such ervices rendered by Beneficiarsuccessor in interest to Trustor as the Beneficiary may deem reasonable. If by the laws of the United States of America, or of any state having jurisdiction over the Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby secured., the Trustor covenants and agrees to pay such tax in the manner required by such law. Should Trustor fail to make any such spa �nt�Be amount soindebtedness secured he �ban�dshall shall a like rate of interest. 4, Thatg should Truster fail to make any payment or do qap�act as 'Provided in this Deed of Trust then Beneficiary or o do so and ithout notice to or demand upon Trustor and without releasing Trustor from an obl gation hereof, ma a�makee or do the same in such manner and to such extent as pitl2er ay deers necessary to protect the prized to enter a on said ro prt for such purposes; f b� coni encs pear in, or defend any action or proceedin purport.in to affect the spcurit hereof or the ro pert covered tl3is Deed of Beneficiary or TrusteeL(g) pay, purchasecontestor conproqij�ibrqnce, chane or or or su prior hereto, and d in exercising any such powers, pa y necessary expenses, employ counsel and pgy his reasonable fees. Trustor agrees to repay anv amount so expended on demand of Beneficiary, and an amount so exIiended rna be added by Beneficiqaajog the indebtedness secured hereby and shall bear a like rate of interest, 5, T J o Terfonn each agKeeent of Trustor contained in any Develg rnent Fundi —2 Agreement (including without limitation the Exhibits thereto) entered into between Trustor and beneficiary for the development, construction of im1provernencs, adoption of rent restrictions or other affordability covenants, or operation of certain activities on the above-described property. 6. To appear in and defend hereof or the 111,L)rODertv which is covered by this Deed of Trust. or the r owers —_—_ights -gL-p—of beneficiary hears or defendsto 2ay all costs and exlaensesg including cosi of evidence of title and attorneys° fees in a reasonable sura in anm such action car laroc�edin� in which Beneficiary or Trustee z�a�ear y virtue of esu puede a laarty defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in SLICII laroraert is directs questioned by such action, includin any action for the condemnation or laartition of said. �arernises, and in any suit broc�ht by Beneficiary to forc:c;lose this Deed of "Trust, 7. To pay immediately and without demand all sums -----ended Linder the to3sof this Deed of Trust y T3eneor Trustee with interest from the date of esctaenditure at the rate which the rind al obli anon secured harsh bears at the firne such -pqy!p�ant is ads and the repayment of such sums shall be secured hereby, K That, should the Trustor or any successor in interest to Trustor in such property drill or extract or enter into a lease for drilling or extraction of oil "gas, or other hydrocarbon L-i� substances or any mineral of any kind or character or sell convey, further encumber or alienate saidlarolaert , or anyaart thereof, or any interest therein„ or be divested of his title or any interest therein in any manner or way, whether voluntarily or involuntgaArlyL3eneficiary shall have the ri �t at its o tion to declare an indebtedness or obli pations secured harsh irres aective of the naattarit date saecified in anv Tenors evidencing the sa ew i _ ediately due and fsa able, and no waiver of this richt shall be effective unless in writi 9. That anv a ardg settlement or dam in' -es for jgpgLty injury or darnages to such D or in connection with the transaction financed by such loan, and any award of darns connection with any condemnation for public use of or inu to said �arotacrty, or an art thereof is harsh asci ned and shad e aid to Beneficiary, who may ay or release such monies received by it in such manner and with the sarne effect as above provided for the dis2osition of roceeds of fire or other insurance. ------p 10. That, by acce�paylent of any sum secured hereby after its duc date, or by akin an ant or erforaxsin = an act on behalf of Trustor that Trustor was oblWated hereunder, but failed, to finale, or �aerfoL or lav actin anv ayaent so a by i6q,r-yto the indebtedness secured harsh 13eneficiar does not waive its ri ht either to re airs resKnPl when due of all sums so secured or to declare a default for failure so to 11. That at any time, or from time to tiLne„ without liabilit�r of flee I3eneficiar� or Trustee thereof ion of this Deed of Trust and any Note secured hereby for endorsement, and without affecting the personal liability of anperson fort' .. ant of the indebtedness secured hergh�qr the lien of the Deed of T e full amount of the indebtedness then or thereafter secured herb or tle ri lets or Owers of Flenefciar or the Trustee withresact to the remainder oLsaid -prop onsent to the malio gIf�qap or in plat thereof l, LLcljoin-in-granting any easement thereon; agreement subordinating the lien or charge hereof. 12. That the lien hereof shall rernain in full force and effect during any vgost onernent or extension of time ofjpayMgqt_gfjhg_jg&btedness secured. hereby,or aRymqrt thereof. 13. at Th h— upon written re gestofBeneficiarystatin, g that all sums secured hereby been paid, and upon surrender of this Deed of Trust and said Note or Notes to Trustee for cancellation and retention, and upon " hour war�antp „the protaerty then held hereunder, The recitals in such reconveyance of an matters of fact shall be conclusive evidence of the truthfulness thereof. The grantee in such reconveyance naay be described as '"the person or arsons le ally led thereto." Such !:equ st and reconveyance �sbql�lerqte as a re -assignment of the rents, issues, royalties and profits hereinafter assiPmed to Ben ci ar ears after issuance of such full reconveva--- Trustee may destroy said eNote and this Deed ofTrust -(unless directed in such renest to retain �q— lhcgm 1. 14. That as additional security, Trustor irrevocably assigns to Beneficjaryflie rents issues and rots of tl�e ro art affected b this Deed of Trust for the u uses and u on the ten -ns and conditions set forth below. This assignment shall not impose upon Beneficiary any duty toproducerents from the pro erty affected bythis Deed of Trust. or cause Beneficiary to be — (a) "rnortgqggg_m _possession" for any purpose- (b) responsible for perfojrqjng-Aqy--�gf the obligations of the lessor under -or1c) responsible for any waste com.-! ifitted by lessees car any other taartles for any dangerous or defective condition of the property affected�hth�is Deed of U skee re air or control of such �rro arty. 'This is an absolute assign ant, not an ass n. ant for secnrit only, and Eieneficia . °s it to rents, issues, and rarofits is not Contin ant upon, and ay be exercised without ssession ofu ., the property affected by this Deed of Tr st, Beneficiary confers upon Truster a license ("License") to collect and retain the rents, issues, and profits of the prorerty affected by his Deed of Trust as they become due and a able until the occurrence of a default hereunder. LI on such default the l.,icense shall las automatically revoked and Beneficiary mqy collect and retain the rents, issues, and profits r) without notice and without takin � ossession of theDri-I'Derl affected this Deed of Trust. This right to collect rents, issues and. rofits shall not. ��rant to 13enefzc,�ary or T etas the ri =ht to possession, exct as otherwise larovided herein; and neither said right, nor termination of the License sha11 iz� case a on C;it c>r T etas the ut to roduce rents issues or roots or maintain of Trust. If Trustor shall default as, aforesaid T stores ri ht to collect an such rnoney shall cease and Beneficiary shall have the to collect all rents, issues ro aloes and rofits and shall e authorised and rna ithout notice and irres ectivc of whether declaration of default has been delivered to Trustee and without regard to , the -�qddeuq�c of the security for the indebtedness secured h without bringing any action or proceeding, orb receiver to be qppointed by the Court, enter into possession and and odif leases obtain and e'et tenants and set and rnodif rents and terms of rents, and to sue and to taro receive and collect all q or a L.�qrtpf the said rents issues9 and profits of the affected hercb and ager a in such costs of aizztenance o enation of said ro art and of collection including reasonable attorneys' fees, as in its judgment it in deen-iproper, to a I the balance upon any indebtedness then secured hereby, the rents, issues, royalties and profits of said property being hereby assigned to Beneficiary for said purposes. The acceptance of such rentsg issues, royalties, and profzts shall not constitute a waiver of another ri4aht which Trustee or Beneficiary may enjoy under this Deed of Trust or under the laws of California. Failure of or discontinuance by Beneficiary at an time or from tune to time to collect an such rents issues royalties, or rofits shall not in any anise affect the szzbsequent enforcement y 13eneficiary of the right ower and authority to colica t the same, The receipt and. application by said Beneficiar of all such z ants issues ro aloes and rofzts ursuant heretoafter execution and deliver of declaration of default and dezzand r sale as hereinafter Provided or dentis the p�q �dency of Trustee's sale Drocegdin s hereztnder, shall not cure such breach or default nor affect said sale proceedings, or any sale made pursuant thereto, but such rents, issues, royalties, and profits„ ess all costs �of operation, collection, and reasonable attorneys' received by Beneficiary, shall be applied in reduction of the indebtedness secured hereby, from time to time in such order as BeneficjqU may determine. Nomtbjiag cotitained herein nor the exercise of the right by Beneficiary to collect, shall be, or be construed to beAir_Affinnation by Beneficiary of E IV tenancy lease �or nor an assumption of liabi, under- nor a a- Sujn )1 subordination of the hen or char e of this Deed of Trust to an such terzancy, lease oro tion. 15. That if the security of this Deed of Trust is a leasehold estate, the Trustor a rasa that: (a) the term "Lease" as used herein shall mean the lease creating the "leasehold e Lstate'b Truster shall not arnendchap gpcar Mqhis leasehold interest or the Lease or agree to do so, without the written consent of the Beneficiary (c) Truster will promptly advise l3gepnKed,cimr KMaLding any notice qder the Lease and , request pron��atl�furnish beneficiary with a cotay_p_�ny such notice, request or dernandg (d�as longas aza of the indebtedness secured hereb shall rerrtain un aid unless the benei-zciar shall otherwise consent thereto in writing, the leasehold estate shall not merge with the fee title but shall always e union of said estates inAgy party; (e) Trustor agrees that it will promptly, strictly, and faithfully perform, fulfill., and comply with all covenants., agreements to s9 conditions and -1rovisions under any lease affectina the premises and to neither do anything, nor to permit anything to be done which may cause inodification or termination of any such lease or of the obli0ations of any lessee or rzerson for therein or the interest of the lessor or the beneficiary ill not execute a Deed of Trust or leasehold estate that is security for this Deed of Trust, In the event of a violation of any a ra It benef"zciarsall lzae time right, at its option, to declare all su s secured and a able. consent to or waiver of one of said violations shall not be deemed to be a consent to or waiver ed of Trust is a leasehold estate the, to "said dee ed to mean the leasehold estate whenever the context so requires for the protection of the Beneficiary. 16. That any default by Trustor inpqyant of anv indebtedness secured ligEgby or erfo encs of an covenant or condition set forth in a Development Funding_ Agreement between Trustor and Beneficiary shall constitute a default under this Deed of Trust and _ prior or superior bereto, BeneficiaKy may declare all sums secured hereby irmnediate�ldue�qnd a able b deliver to "Trustee of written ion of default and demand for sale of written notice of default and of election to cause to be sold said which notice Trustee shall cause to be filed for record. Bene f Trust and any Notes and all documents ures secured bereby. After the In-,- of such time as then mayberequired by law followin recordation of such notice of default and notice of sale having been given as then required by lawy,11'rusteewithout demand on Trustor, shall sell, said property at the tine and place fixed y it in such notice of sale whether as a, whole or in separate pqrcelsand in such order as it may determine, at public auction to the highest bidder in lawful money of the United States, payable at time of sale. Trustee m so I one sale of all or an onion of said roertyriblic announce ent at such ti e and glace of saleg and from time to time thereafter may postpone such sale by public announcement at the time fixed by the evidencerecedin oat one�nent. T . etas shall. deliver to such urchaser its Dced conve in the ro el�t so sold but without az�y covenant or warrant?„ ex rasa ori died. The recital in such Teed of any matters of fact shall be conclusive of the truthfulness thereof, Any Derson. including Trustor TrusteeA or Beneficiary as hereinafter defined, may purchase at such sale. Trustee may also sell at any such sale and as Dart thereof any shares of corporate stock securing the obligations secured hereby, and Trustor waives demand and notice of such sale. (Beneficiary at Trustor waives demand and notice of such sale.) After deducting -All costs fees and expenses of Trustee., and of this Trustg including cost of evidence of tine in connection with this sale., Trustee shall apply the roceeds of sale to a ant first of all sums ex ended under the terms hereof not then repaid with accrued interest at the rate when payable under the Note or Notes secured hereby and then of all other sums secured herebv- and if there are any proceeds rernami g, shall distribute the.... to the person or persons legally entitled thereto. 17, To waive, to the fullest extent pen-nissible by law, the right to plead any statute of limitations as a defense to anv demand secured hereb . 18. That Be bstittite a successor or successors to any Trustee named herein or acti,10, hereunderwhich instrument executed and acknowled e d by Beneficiary and recorded In the office of the recorder of the county or counties where such property is situated shall be conclusive proof pf_properr y substitution of such successor Trustee or Trustees who shall without conveyances from the Trusteepre�decessor succeed to all its title, estate, rights, powers and duties, including but not limited to the power to reconvey the whole or ary part of t: sr erty covered by this Deed of Trust. Such instrument must contain the name of tl-_ie original Trustor �Truste�eand�Benxbiciar hereunder, and the book andae where this Deed of Trust is recorded, If notice of default shall have been recorded this -ower of substitution cannot be exercised until after the costs fees and expenses of the then acting T`rtzstee shall have been. laid to such T .etas, wl�o shall ettdorse receixt thereof upon such instrument. The procedures herein provided for substitution of Trustee shall not be exclusive of other vrevisions for substitution w,Tided b 1aw. 19. That this Deed of Trust aDDlies to. inures to the benefit of. and binds all hereto their heirs legatees devisees ad inistrators executors transferees successors.. and over and holder includin = led gee of the Note secured hereby, whether or not named as Beneficiary herein, In this Lined of Trust, whenever the context so re wires the asctalinc render includes tlrc fe mine and/or neuter and the sin alar number includes thlural. 20. Trustor a written operational re ort which concerns the fiscal year ending on the jrqmediat.e�lrecedjn June 30th and conforms to the standards set fart 92 (with resect to the real property first described in this Deed of Trust) necessary convenient for Beneficiary to make the annual reports. 21. That in the event of a demand for, and the Preparation and delivery of a written statement regarding the obligations secured by this Deed of Trust pursuant to Sections 2943 and 2954 of the Civil Code of California or successor statutes') Benefici, U shall be entitled to make a reasonable charge, not exceeding the maximum amount which is permitted by law at the time the statement is fumished. Beneficiary may also charae Truster a reasonable fee for an other services rendered to Trustor or rendered in Trustor's behalf in connection with said property of this Deed of Trust includi-a chap ink Beneficiary's records Dertainit a to this Deed of Trust and the loan secured hereby in connection with the transfer of said property„ or jqleasin&qn-g�istin� policy of ire insurance or other casualty insurance held by Beneficiary and replacing the same with another such o icv. 22. That Trustee accents this Trust when this Deed of Trust, duly executed and acknowled ped is made a ublic record as rovided b la.w. Trustee is noLQbligated to notif yan prthereto of pendin sale uzzdeo any other Deed of Trust or of an action or laroceedin in which Tru brou ht b Trustee. or - 2Tru 3. That should this Deed of st i:11:1 � Note secured provide an- fee f prepayment of any indebtedness secured hereby, Trustor agrees to pay said fee if any, if said indebtedness shall bi-, Daid prior to the due date thereof stated in said Note or this Deed of Trust even if and notwithstanding that Trustor shall have defaulted in payment theileof, or in reason thereof shall have declared all sums secured hereby intmediat.Lly due and payabLe- 24. That Trustor has made certain Me esentations and disclosures in order to induce Beneficiary to make the loan evid is Deed of Trust secures, and in the event that Trustor has made any material misrepresentation or failed to disclose amy-material fact. Beneficiary at its option and without notice shall have the jighL_Lo declare the indebtedness secured hereby, irrespective of the maturity date s ecified in such Note written declaration of default and demand for sale as in pgragra h No. 15 herein set forth. Trustee u on presentation to it of an affidavit signed by Beneficiary setting forth facts showing a default by Truster under this roars raph, is authorized to accept as true and conclusive all facts and statements therein and to act thereon hereunder, An notice which any jDart y hereto may desire or be required to 7ive to the other art shall be in Titin, The ailing thereof t be certified mail addressed to the Trustor at his address herein above set forth or to the Beneficiary at his office or at such other -olace as such THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK �p THE UNDERSIGNED TRUSTOR REQUESTS that a copy ( of any notice of default and of anv notice of sale hereunder be mailed to him at his address hereinbefore set forth, Dated: 2024 Signature of Trustor(s), GOOD NEWS RESCUE MISSION. a CafifomiAa o N !yon grofit Public Benefit Corporation Bv: Jonathan Anderson Executive Director TaxlD# 94-1652602 IThis document must be Notarized. EXHIBIT A LEGAL DESCRIPTION 3145 Veda St. R,�d�djn CA 96001 Accessor's Parcel Number, 104-620-052-000 THAT REAL PROPERTY IN SECTIONS 14 AND 15 OF THE P. B. READING GRANT IN THE CITY OF RED DESCRIBED AS FOLLOWS: PARCEL (APN- 104-6 10E, —1 :1 104 620-052-000) COMMENCING AT THE NORTHWEST CORNER OF PARCEL Q AS SHOWN ON A SURVEY FILED MARCH 27 1984 IN BOOK 46 OF LAND SURVEYS AT PAGE 103. SHASTA COUNTY INE OF PARCELS Q AND D OF SAID SURVEY, SOUTH 88- 24' 00" EAST, A DISTANCE OF 153:,07 FEET° THENCE LEAVTNG SAID NORTH LINE SOUTH 20 55'34" EAST A DISTANCE OF 70.60 FEET TO THE POINT OF BEGINNING; THENCE CONTINUING SOUTH 20 55,34" EAST, A DISTANCE OF 79.28 FEET MORE OR LESS TO A POINT ON THE NORTH LINE OF PARCEL B OF SAID SURVEY RECORDED IN BOOK 46 OF LAND SURVEYS AT PAGE 103 THENCE ALC)NC� SAID N(�IZIII LINE St UTH 880 24'00" EAST. A DISTANCE OF 2,42 FEET TO THE NORTHWEST CORNER OF THAT CERTAIN PARCEL DESIGNATED "PARCEL 4" IN DEED RECORDED ON NOVEMBER 5 1990 IN BOOK 2659 OF OFFICIAL RECORDS AT PAG -1 ALONG THE WEST LINE OF SAID "PARCEL 4", SOUTH 2- 38'00" EAST ' A DISTANCE OF 96.59 FEET'TO A POINT THAT BEARS NORTH 870 22'00" EAST A DISTANCE OF 14.00 FEET FROM THE SOUTHEAST CORNER OF PARCEL A OF SAID SURVEY RECORDED IN BOOK 46 OF LAND SURVEYS AT PAGE 103- THENCE SOUTH 87" 22'00" WEST A DISTANCE OF 14.00 FEET TO THF SOUTHEAST CORNER OF SAID PARCEL A- THENCE ALONG THF SOUTH LINE OF SAID PARCEL A, SOUTH 87- 14' 5; . WEST A DISTANCE OF 130.21 T PER 46-L,S MORE OR LES� ��-103)��S, TO THE EAST LINE OF VEDA STREET- THENCE ALONG SAID EAST T LINE, NORTH 60 11" 00" WEST, A DISTANCE OF 188.00 FEET- THENCE LEAVING SAID EAST LINE, SOUTH 88- 24' 001f -LAST,- A DISTANCE OF 153.45 FEET MORE OR LESS, 10 '!BE POINT OF BEGINNING AND AS DESCRIBED AS RESULTANT PARCEL A OF PROPERTY LINE ADJUSTMENT PLA -6-06. PARCEL 2,; ON - �APN- �104-6�20-05�9-000 _FORT�l BEGINNING AT THE SOUTHEAST CORNER OF PARCEL, A AS SHOWN ON A SURVEY FILED MARCH 27 1984 IN BOOK 46 OF LAND SURVEYS AT PAGE 103° THENCE SOUTH 6c' I I T 29 OF BLOCK 2 OF THE ALTA SUBDIVISIO E OF 164.40 FEET TO THE SOUTHWEST CORNER OF SAID LOT 29- THENCE. NORTH 870 22' WEST ALONG THE SOUTH LINE OF SAID CORNER THEREOF; THENCE NORTH 6"11' WEST ALONG THE LINE COMMON TO LOTS 29 AND 30 OF SAID ALTA SUBDIVISION 67.38 FEET TO THE NORTHWEST CORNER OF SAID LOT' 30° THENCE NORTH 87- 2TEAST ALONG THE NORTH LINE OF SAID LOT NORTH 20 38' WEST 187.00 FEET TO A POINT ON THE NORTH LINE OF PARCEL B AS SHOWN ON 46 LAND SURVEYS AT PAGE 103; THENCE NORTH 88' 24$ NEST 72.00 FEET MORE OR LESS, TO A POINT Development Funding Agreement Between the GNRM and the City of Redding Page 33 of 48 WHICH BEARS NORT14 870 22' EAST 14,00 FEET- THENCE NORTH 20 3P' WEST 86.00 FEET FROM THE POINT OF BEGINNIN i THE POINT OF BEGINNING, PARCEL. 3: (APM- 104-620-059-000 PORTION BEGINNING AT A POINT ON THE NORTH LINE OF LOT 30 OF BLOCK 2 OF THE ALTA SUBDIVISION "BOOK 5 OF MAPS PAGE 511" DISTANT THEREON NORTH 870 22' FAST 30.23 FEET FROM THE NORTHWEST CORNER THEREOF; THENCE., NORTH 87' 22' FAST 64.00 FEET TO TLtE SOUTHEAST CORNER OF PARCEL B AS SHOWN ON A SURVEY FILED M VEYS AT PAGE 103. EAST LINE OF SAID PARCEL B. 183.42 FEET TO THE NORTHWEST CORNER OF SAID PAF2.C'FI & THENCE NORTH 88- 24' WEST ALONG THE NORTH LINE OF SAID PARCEL B. 64.00 FEF,',T- THENCE SOUTH 20 W EAST, 187.00 FEET TO THE POINT OF BEGINNING, EXCEPTING THEREFROM THAT PORTION OF LAND CONVEYED TO THE STATE OF CALIFORNIA. DEPARTMENT OF TRANSPORTATION IN GRANT DEED RECORDED JUNE 30 2020 AS INSTRUMENT NO. 2020-0020302 OF OFFICIAL RECORDS, APN: 104-620-052-000 and 104-620-059-00 Development Funding Agreement Between the GNRM and the City of Redding Page 34 of 48 EXHIBIT 4 NOTE SECURED BY DEED OF TRUST dor *ivable Note DO NOT DESTROY THIS NOTE: When paid, this Note along with the Deed of Trust r cancellation before reconv("Vance will be made. 000.000 .2024 FOR VALUE RECEIVED, [/We, GOOD NEWS RESCUE MISSION, a California e CITY REDDIN address is 777 Cypress Avenue Redding, 9,6001 or or California�q bornia 96001 or order, the principal sum of Three Million and No/100 Dollars . Provided that the Borrower/s continue to 1-neet the requirements set forth in the Development FUnding Agreement 24 for a five (5) year period from the date of issuance of a Notice to Proceed,- as incorporated as Exhibit �� in afore _ entioned. IF�9 all �rincal and interest ill be for iven. Borrower/s may choose to r y or all of the �nci a] and interest described in this Note at any time before the end of five (years without nalt . Should default be made, y either failure to co ply with any of the tern -is and conditions of this Note, the Deed of Trust securing this Note, the DFA, or the Declaration of Restrictive Covenants, or in the performance I LLL e p mance of any pf the obligations of Borrower/s contained therein the entire sura iately due and -payable at Lender's o-Dtion. Failure by Lender to exercise this option upon one or more events of default by Borrower/s shall not constitute a waiver of the right to exercise it in the event of any su secltient default. Whether or not suit is filed Borjroge�r/sgee to clayAll reasonable attomey's fees9 costs of collection, costs and expenses incurred by Lender in connection with the enforcement or collection of the Note. This Note is secured by a Deed of Trust of even date herewith, executed by Borrower/s in favor of Lender. GOOD NEWS RESCUE MISSION L= A California Nonprofit Public Benefit Corporation By: Jonathan Anderson Executive Director Development Funding Agreement Between the GNRM and the City of Redding Page 35 of 48 RECORDED AT REDE S _T0 F AND RETURN TO: City of Redding Housing Division 777 Cypress Avenue Rgdding., CA 26001 Attention: jjpusin I�1anacr Space above Ibis line Lbr Recorder Vuse ontE.1 DECLARATION OF RESTRICTIVE COVENANT Qjorneless Services) This Declaration of Restrictive Covenants "Covenant") is made as of this da of 2024 between the CITY OF REDDING. a MmEuRnigjpal corporation aDd jener, law city ("City") and the GOOD NEWS RESCUE MiSSION, a California Nonprofit Public Benefit MEXIMMM A. The City of Redding (City) is a municipal corporation and general law city. B, Developer is a nonprofit corporation organized under the laws of the State of California andqualifyingfor Federal Tax-_Fxempt Status under Section 5011c 3j of the Internal Revenge Code. C. Developer is presently in escrow or the owner of the Property located at 3145 Veda Street, 12ec1din Shasta City, CaliforniAssessor's Parcel Number 104-620-052-000 and 3150 S Market Street Assessor's Parcel Number 104-620-059-000, the "Project Site" or "Site"), The Site is described in Exhibit A, 66Le2a reference herein. Da Develo aer is interested in rovidin or evelo in additional homeless services that supports the ho Bless population within the C its f Reddin . E, City desires to provide EncamMent funds to DeveloDer for the sole umose of assisting Developer with the acquisition and rehabilitation costs of the PropertySite for the Pro'ect. F. On January 29. 2021 the City Council of the City of Redding approved a loan in an amount not to exceed $3,000,000 to the QNRAMLmt_Mchqse and rehabilitate the Property as Q da11 resource center for homeless individuals. G. City and DeveloDer desire to enter into this Covenant set forth the mutual obli ations o the C it and Develot�er in connection with the Project Site, Development Funding Agreement Between the GNRM and the City of Redding Page 36 of 48 declare that the followiqg-,�x r ss cc�v pants are to be taken and construed as running-, with the Property and except as set forth below, shall pass to and be binding utaon Owner and its heir, successors, assigns,heirs, grantees or lessees to the Property or any part thereof front the date of recordation of this Covenant and shall continue for l ears from the execution of the Fundin ent, Each and every contract, deed lease or other instrument covering or conveying the Property or any portion thereof shall be held conclusively to have been executeddelivered and accMted s ect to covenants and restrictions ess of whether such covenants and restrictions are set forth in such contract. deed, lease or other instruments, I . PuKpose and Effect of Covenant. The a one of this Covenant is to restrict the use of the Property as set forth in Paragraph 2 below. 2. Restrictions Affecting the Property. The Owner herels-v avorrees to the below restrictions for �10 ears ftonmi the �execu�tion of �rbe Fundin1 -greement. 1, A — Th Pro ert shall be used solei and exclusivel fear homeless services for the homeless citizens of the Cit on the Project Site a!s�allo i I i �J�ocql lq�w."H�omele�ssserv�ices" nia include, but are not Innited to prevention and rapid rehousin se ices to individuals and families who are homeless including stabilization services including housin = search mediation outreach to tarope ty o ners, credit repair, security or utility depositsg utility payments, rental assistance for a final month at a location, moving cost assistance and case mann grernent or other --sr—riate activities for homelessness Prevention and r - -id rehousilIZ-917-persons who have become homeless. Other "Homeless services" nay include a warmin/coolin area laundr facilities sho er facilit ersonal Stora e area charging stations and internet access. I Restrictions Run with the Prqpgrty. Owner intends that the Provisions set forth in Paraigraph 2 above are covenants which shall run with the land and be bindin upon O ner, its heirs, successors and assi ns includin lessees or other users of the Pro ert collective) "Users' . Should it be determined that the restrictions contained in ParagLq)h 2 are not covenants which run with are e citable servitudes which run with the land and are bindjipj upon all Users. Owner also intends that the Drovisions set forth in Para ---r: A 2 naaA, be enforced Ownei auainst Users even if Owner does not rovisions, Should �a onion of Pa 20WnLu-pjr-o!ipertY which is benefited bv these be held to be unenforceable all of the Cather --ortions shall remain binding n enforceable. Should any portion of Paragraph 2 be held to not run with the land ,all of the other 4. IrrevocabilityofCovenant. This Covenant the term hereof without the Prior written consent of CitV. Development Funding Agreement Between the GNRM and the City of Redding Page 37 of 48 5. Maintenance-, Compliance with Law. 0 good condition, repair and condition and in accordance with an re wire ants includin without Iirnjjqjjqn an.y landscaping and si nage), as the carne may be amended froth time to time., and all other atalrlicable laws9 lase ordinazacesa orders and regulations f all federal state City, pranicipal, and other governmental agencies and bodies having or claiming jurisdict� and all their respective depart ents9 bazreaus, and officials. Owner ackno led es the great emphasis the City places on quality and to provide quality services to eligible participants to ensure oi liance with this Development Funding A(Yreement. In addition Owner sha11 kee a the Prom fa ee from all raffiti and an accumulation of debris or waste material. Owner shall Dromptly make all repairs and replace eats necessary to been the Proerr i roan tl eliminate all graffiti and replace dead and diseased plants and landscaping with comparable Up roved materials. - - 6, Owner's R RgK�ts. Except for the express restrictions on use of the Property as set forth herein Owner shall have all other Irights, of Qwnersh'o, appurtenant to the Proven and the right to exercise same. Term of the Covenant, This Covenant shall automatically terminate on the date which is 10 years from the date of the execution of the Fundinar A(Treernent. if not earlier tenoinated by mutual consent of Owner and City ("Term of the Covenant" I & Defaults - Anion others each of the lollo ina shall constitute an "Event of Default'Lby Owner under this Covenant-, i Failure to operate and maintain the Property pursuant to requirements of the Covenant9 Level ment FundingAm greeent and other applicable state and federal laws n and regulations; ii Owner's unauthorized sale or transfer of the Pro Dert in violation of this Covenant or Fqqdin , A reernenV in Failure tca operate and maintain the Property as a location for personal >aroerty storage facilities homeless services and daily life necessities for the homeless citizens of the City as allowed by local law for the Term of the Covenant. iv Any fraudulent act or omission b the O her erlaznin s to or made in contraction. with the use of the Funds, Develo,13ment FundljiW_AYreernent or o eration and maintenanee�fthe�Pro ertas indicated above. 9. Remedies: The occurrence of any Event of Default or air other violation of Owner ander this Covenant or th 'it the ri lit to proceed with any and all remedies available to the City inLIudin -, but not finfired to. Development Funding Agreement Between the GNRM and the City of Redding Page 38 of 48 a� Specific l�erfo sauce; the C it hall leave the right tomandamus or other suit action or aroceedin r at 1a or in e uit to re airs Owner to erform its obli ations and covenants under this Covenant or Development Funding Agreement or to eniom acts on which may be unlawful. or in violation of the Drovisions of this Covenant or Development Funding Agreement. (b) Remedies Cumulative. No right, power, or remedy given to the City by the terms of this Covenant or Development Fundi intended to be exclusive of an other right, power, or remedy, and each and every such right, pea weror remedy shall be cumulative and in addition to every other r power I -� en to �theC �ojy� terms of any such instrument, or by any statute or otherwise n X a ainst Owner and aother — — — — — — — — — — — — �y— �aerson, Neither the failure nor atm de3ay on the hart of the City to exercise an such ri his and remedies shall. o erste as a elver thereof ��zor shall. an sin le or artial. exercise by the City of any such right or reined y preclude any other or further exercise of such riCylit or re ed , or any other right or rernq id . 10, Notice: Notices or other communications which ma be required or provided under the terms of this Covenant 5hall be given as follows: Owner City The Good News Rescue Mission City of Redding Housi ,,,� �nQi�yision Attn: Executive Director Attn- Housing Manager 2842 S. Market Street 777 Cypress Avenue Redding, CA 96001 Redding, CA 96001 THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK Development Funding Agreement Between the GNRM and the City of Redding Page 39 of 48 IN WITNESS WHEREOF the City and the Develo-oer have executed this FA on the respective dates set forth below: CITY: City of Redding Date: Barry Ti in, Cit M�qnner 2p— Date: APPROVED AS TO FORM: RgMLE DeWalt GENERAL CCS SEI, M DEVELOPER: Good News Rescue Mission, a California By: Jonathan Anderson Title- Executive Director 'raxlD# 94-1652602. Development Funding Agreement Between the GNRM and the City of Redding Page 40 of 48 PARCEL LL(APN104-620-052-000 COMMENCING AT THE NORTHWEST CORNER OF PARCEL C AS SHOWN ON A SURVEY FILED MARCH 27 1984 IN BOOK 46 OF LAND SURVEYS AT PAGE 103. SHASTA COUNTY INE OF PARCELS C AND Q OF SAID SURVEY, SOUTH 88- 24' 00" EAST, A DISTANCE OF 153,07 FEET - 'THENCE LEAVING SAID NORTH LINE. SOUTH 20 55'34" EAST A DISTANCE OF 70.60 FEET TO THE POINT OF BEGINNING; THENCE CONTINUING SOUTH 20 559 34" A DISTANCE OF 79.28 FEET. MORE OR LESS TO A POINT ON THE NORTH LINE OF PARCEL B OF SAID SURVEY RECORDED IN BOOK 46 OF LAND SURVEYS AT PAGE UTH 880 24'00" EAST A DISTANCE OF 2,42 FEET TO THE NORTHWEST CORNER OF THAT CERTAIN PARCEL DESIGNATED "PARCEL 4" IN DEED RECORDED ON NOVEMBER 5 199 IN BOOK 2659 OF OFFICIAL RECORDS AT PAG , ALONG THE WEST LINE OF SAID "PARCEL 4", SOUTH 2- 38'00" EAST A DISTANCE OF 96.59 FEET TO A POINT THAT BEARS NORTH 870 22'00" EAST, A DISTANCE OF 14.00 FEET FROM THE SOUTHEAST CORNER OF PARCEL A OF SAID SURVEY RECORDED IN BOOK 46 OF LAND SURVEYS AT PAGE 103, THENCE SOUTH 87c22'00" WEST DISTANCE OF 14.00 FEET TO THE SOUTHEAST CORNER OF SAID PARCEL A. -THENCE ALONG THE SOUTH LINE OF SAID PARCEL A, SOUTH 87- 14'5 WEST A DISTANCE OF 13021 T PER 46—L. S. —I 03t MORE OR LESS, TO THE EAST LINE OF VEDA STREET- THENCE ALONG SAID EAST LINE NORTH 60 11' 00" WEST, A DISTANCE OF 188,00 FEET- THENCE LEAVING SAID EAST LINE, 5�()UTH 88c'24'0"EAST , A DISTANCE OF 153.45 FEET MORE CSR LESS TO THE POINT OF BEGINNING AND AS DESCRIBED AS RESULTANT PARCEL A OF PROPERTY LINE ADJUSTMENT PLA -6-06. Development Funding Agreement Between the GNRM and the City of Redding Page 41 of 48 SCOPE OF DEVELOPMENT 1, GENERAL 1h y delineated on the Leda] Description (Exhibit 1) and the Site Map 'Exhibit 2) pursuant to this Development shall be rehabilitated in accordance with the provisions of this Agrgginent referenced in Section 2.2 of thg�Aree�mqntand all drawings and related documents gpproved by the Cit v of RedaddingTursuant hereto. ff. DEVELOPMENT The Developer shall i rove or cause to be j proved on the Project Site, all pursuant to the Agreemg.,gntLthis Exhibit the Final Proect .......... Plans and Specifications, and all conitios set forth in anitpe it issued for the Project. The Project will be coni feted to the satisfaction of the C;it� of Lieddin� Tlousin� Division and the Project Manager. The DeveloTrier shall commence and comr)Iete the Pr -,-- respective times established therefore in the Schedule of Performance. IfL DEVELOPMENT STANDARDS The Fro°act shall conform to all a clic able state laws and re dations and to local zonrngqppficqblq, provisions of the Municipal Code of the ent standards. The Developer shall ap l for and obtain its re aired for the development including those pemits and qpprovals required by the ent or Transportation and EngineerinDe artment. g�� Development Funding Agreement Between the GNRIVI and the City of Redding Page 42 of 48 EXHIBIT 7 Schedule of Performance Action Time Frame I CityAqd Developer February 20- 2024 2. Developer provides acc-,moble insurance to the ON Risk Management. Prior to City execution of DFA I Execution of DFA and all security documents Within 7 days of rove o insurance 4. DFA and security doctiments�,iredel�iverecit�oEscro�wA�e�nt, Within 10 days of execution of DFA 5. Escrow Agent to mitifyprovide CatsandDeveloper with closing statement. Within 10 da s rior to Close of Escrow 6. Close of Escrow recordation of security documents and release of acquisition and eligible escrow fees. Within 30 days of execution of DFA T Escrow Agent to issue and deliver Title Insurance to the City. At close of escrow & Developer _submits �alicqtmn for �Use Permit, Within 10 days of close of e-S—Crow 9. De �Ioer Final P�roect Plans and B�ud etoProj ect Within 45 d L_- ays of close of 9--s—crow _submits Manam M Project Mana�or Within 14 days of reKei t of Final Project Plans 11 DCVCIODCT submits plans and buildra- pgEqjjLpppjjcation. Within 14 days of Pro ect, j— Manager,inproyn] 11. Developer and/or Cre�neral Contractor wobtains �use and �build�in, Within 60 days of submittal to ne-rmmits- the RLijldin * De az°tent 12. Protect ,Mana �)erissu_esa Notice to 1�1'rocced, Within j0days of issuance of use and buildin Y ernuts 11 D S Within 15 days of issuance of the Notice to Proceed 14. Ini rovenients completed. Within 12 months folloin issuance of buildin 15. Recordation of Notice of Completion- Within 14 days of the cons lqtion certificate issued bytheBuildin, Department 16, �11 issue �aCe�rfificate ofCorn �Ietion. City. Within 35 days s fbllowing recordation of the Notice of Cg!ppletion 17. Dgy �Iqer be �ins the �oerq�fionof �theiubjic �fqcifi�r. Within 30 da, s followin issuance of Certificate of Conilotion. Funding Agreement Between the GNRM and the City of Redding Page 43 of 48 EXHBUT 8 Notice to Proceed R ED"Do. 11 1 11 G, HOUGING DIV10-10H NEW Jonathan Anderson The Good Nems Rescue, Mission 2842 S Market St. Redding, CA 96001 Subject: NOTICE TO PROCEED; Dear Jonadrati, I In aeeot�4ith st"s of stibs&tions 6,§,6 and 4he S�hednle 6f P��e nrcaqpprated it Sincerely, Development Funding Agreement Between the GINRM and the City of Redding Page 44 of 48 RREECORDING REQUESTED BY - CITY OF REDDING WHEN RFCORDED,MAIL TO: CITY OF REEDING P,O. Box 496071 Redding, CA 96049-6071 Loan No. - THIS SPACE FOR RECORDER'S USE ONLY NOTICE OF COMPLETION 1sTotice pursuant to C:ivi1 Code Section 3093 . ust e filed within 10 da, s after co-1-fion. NOTICE IS HEREBY GIVEN THAT: 1, The undersigned is the owner or authorized asent of the owner of the interest or estate stated below in the propert hereinafter described. 2. The full narne of the owner is: The Good News Rescue Mission. 3. The full address of the owner is2842 S. Market Street Reddin CA 96001 4. The nature of the interest or estate of the undersigned is: In Fee 5. The full names and full addresses of all persons, if any, who hold title with the qadersigned as�oint tenants or as tenants in co on are: None 6. Work or improvement on the property hereinafter described was construction and was et�edon 7,. Said work ori oveent was undertaken on said faro erttrstant to a contract dated 2024 with General Contractor. The street address of the iaroi3ertv on which said work or its pjgyg!pg �twqs�eo�jeted is 3145 Veda Street, Redding, CA 960011 , A - 104 ..County of Shasta State of Califomia, PN. -620-052-000 I9 the undersigned, state that I am the declarant of the foregoin a Notice of Corlu,-)Ietion-, that I have read said Notice of Comi3letion and9 to the best of i y knowledge, I declare under Penalty 2fTerjy 'ur that the fore oink is true and correct. ---- DEVELOPER: Zgo—odNews Rescue Mission a California LNonofit Benerit Corporation 2r By Jonathan AndersonDate.- Title: Executive Director Development Funding Agreement Between the GNRM and the City of Redding Page 45 of 48 EXHIBIT 10 CERTIFICATE OF COMPLETION THIS CERTIFICATE OF COMPLETION (the "Certificate") is made by the CITY OF REDDING a municiDal co oration and general law cit the "CITY") in favor ofG00D NEWS RESCUE MISSION a California Nonprofit Public Benefit Corporation (the "OWNER"). as of the date set forth below, A. The CITY and the OWNER have entered into that certain Develp anent Funding A�reernent {I�I'A) dated F�i�rr� 4 2024 concern€n� tlne develop int of certain real gnient Fundi property situated in Redding, Californian including Assessor Parcel Number(s) 104-620-052-000 and 104-620-059-000 as more full v described in Exhibit A attached hereto and made a nart hereof (the Property). & The DFA sets forth the obligations of C) ER referred to as Developer., Linder the DFA. C. The CITY has conclusively Bete lined that the Developer has satn;4,'3c1-aVil,7 completed the obligations of the LaE<tIEI CCPEIZ relative to development of the Property required by the DFA and now desires to furnish DEVELOPER or its successors with a. Certificate of C:on-tpletion. This Certificate is in such form as topermitconclusive determination of satisfactory completion of all of the obligations of the DEVELOPER required by the DFA re ardindevelopInent ofthe taro arty. N follows: I The obliu-ations of the DEVELOPER regTardina develonment of the Site as stated in the DFA have been fully and satisfactorily completed in conformance with the DFA extent as to those breaches of contract or defects in construction that could not have reasonably been discovered by CITY at the time of issuance of the Certificate of Completion. 2. RMA92iLS of the DFA. IN WITNESS WHEREFthe CITE has executed this Certificate this day of ,,-202 . CITY OF REDDING a municipal cor oration BARRY TIPPIN City Dana er Development Funding Agreement Between the GNRM and the City of Redding Page 46 of 48 Exhibit A Real res o ri In the Cii csf R ddiza Coast cif Shasta Stag cif C a1if described as follows-, THAT REAL PROPERTY IN SECTIONS 14 AND 15 OF THE P. B. READING GRANTIN THE CITY OF REDDING, SHASTA COUNTY CALIFORNIA DESCRIBED AS FOLLOWS: PARCEL 1. "ARN: 104-620-052-000 COMMENCING AT' THE NORTHWEST CORNER OF PARCEL C AS SHOWN ON A SURVEY FILED MARCH 27 1984 IN BOOK 46 OF LAND SURVEYS AT PAGE 103 SHASTA COUNTY INE OF PARCELS C AND D OF SAID SURVEY SOUTH 880 24' 00" EAST. A DISTANCE OF 153.07 FEET: THENCE LEAVING SAID NOR E OF 70.60 FEET TO THE POINT OF BEGINNING; THENCE CONTINUING SOUTH 2' 55' 34" A DISTANCE OF 79.28 FEET MORE OR LESS TO A POINT ON THE NORTH LINE OF PARCEL B OF SAID SURVEY RECORDED W BOOK 46 OF LAND SURVEYS AT PAGE _L03., THENCE ALONG SAID NORTH L . SOUTH 88- 24' 00" EAST A DISTANCE OF 2.42 FEET TO THE NORTHWEST CORNER QFTHA,r CERTAIN PARCEL DESIGNATED "PARCEL 4" IN DEED RECORDED ON NOVEMBER 5 1990 IN BOOK 2659 OF OFFICIAL RECORDS AT RAG ALONG THE WEST LINE OF SAID "PARCEL 4". SOUTH 20 38'00" EAST. A DISTANCE OF 96.59 FEET TO A POINT THAT BEARS NORTH 87- 22'00" EAST A DISTANCE OF, 14.00 FEET FROM THE SOUTHEAST CORNER OF PARCEL A OF SAID SURVEY RECORDED IN BOOK 46 OF LAND SURVEYS AT PAGE 103: THENCE SOUTH 870 22'00" WEST A DISTANCE OF 14,00 FEET TO THE SOUTHEAST CORNER OF SAID PARCEL A; T [ENCE ALONG THE SOUTH LINE; OF SAID PARCEL A 13021 FEET (sourIj 87' 22' 00" WEST, 130.21 FEET PER 46-L.S.-103), MORE OR LESS., TO THE EAST LINE OF VEDA ST RTH 60 1 F 00" WEST. A DISTANCE OF 188 00 FEET- THENCE LEAVING SAID EAST LINE. SOUTH 880 24' 00" EAST A DISTANCE OF 153.45 FEET MORE OR LESS TO THE POINT OF 13EQfNNfNQ AND AS DESCRIBED AS RESULTANT PARCEL A OF PROPERTY LINE ADJUSTMENT PLA -6-06. PARCEL 2: (APM- 104-620-059-000 PORTIONI BEGINNINt AT THE SOUTHEAST CORNER OF PARCEL A AS SHOWN ON A SURVEY FILED MARCH 27 1984 IN BOOK 46 OF LAND SURVEYS AT PAGE 103° TFIENQE SOUTH 6 F LOT 29 OF BLOCK 2 OF THE ALTA SUBDIVISIO 'BOOK 5 OF MAPS PAGE 53 A DISTANCE OF 164.40 FEET TO THE SOUTHWEST CORNER OF SAID LOT 29- THENCE NORTH 870 22' NEST ALONG THE SOUTH LINE OF SAID LOT 29 50.00 FEET TO TFIE SOUTHEAST CORNER THEREOF- THENCE NORTH 6°11' WEST ALONG THE LINE COMMON TO LOTS 29 AND 30 OF SAID ALTA SUBDIVISION 67.38 FEET TO THE NORTHWEST CORNER OF SAID LOT 30- THENCE NORTH 870 22' EAST ALONG THE NORTH LINE OF SAID LOT 30 A. DISTANCE OF 30.23 FEET- THENCE NORTH 20 38' WEST 187.00 FEET TO A POINT ON THE NORTH LINE OF PARCEL B, AS SHOWN ON 46 LAND SURVEYS AT PAGE 10 MORE OR LESS, TO A POINT WHICH BEARS NORTH 87" 22' EAST 14.00 FEET- THENCE NORTH 20 3S' WEST 86.00 Development Funding Agreement Between the GNRM and the City of Redding Page 47 of 48 FEET FROM THE POINT OF BEGINNING- THENCE SOUTH 20 38' EAST 86.00 FEET - THE POINT OF BEGINNING. PARCEL 3: i(ARN. 104-620-059-000 PORTIO BEGINNING AT A POINT ON THE NORTH LINE OF LOT 30 OF BLOCK 2 OF THE ALTA SUBDIVISION (BOOK 5 OF MAPS, PAGE 53) DISTANT THEREON NORTH 87- 22' EAST 30.23 FEET FROM THE NORTHWEST CORNER. THEREQF-- THENCE NORTH 87- 22' EAST 64.00 FEET TO THE SOUTHEAST CORNER OF PARCEL B AS SHOWN ON A SURVEY FILED MARCH 27. 1984 IN BOOK 46 OF LAND SURVEYS AT PAGE 103 - 'THENCE, NORTH 2- 3S' WEST ALONG ,rHE EAST LINE OF SAID PARCEL B,183.42 FEET TO THE NORTHWEST CORNER OF SAID PARCEL & THENCE NORTH 880 24'. WEST ALONG THE NORTH LINE OF SAID PARCEL B 64 00 FFET- THENCE SOUTH 2 - INNING, EXCEPTING THEREFROM THAT PORTION OF LAND CONVEYED TO THE STATE OF CALIFORNIA, DEPARTMENT OF TRANSPORTATION, IN GRANT DEED RECORDED JUNE 3Q, 2020 AS INSTRITi�IFNT NO, 0302 OF OFFICIAL RECORDS, APN- 104-620-052-000 and 104-620-059-00 X:\Redev\Staff Renorts\2024 Staff Re0orts\Attachments\GNRM DA DRC.doc Development Funding Agreement Between the GNRM and the City of Redding Page 48 of 48 C IT Y OF REMDINO�" AN CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: December 19, 2023 FROM: Steve Bade, Assistant City ITEM NO. 9.2(g) Manager ***APPROVED BY*** n tee I S, er I V 13/2023 r5�> ,pp n,, C -i ars e shade@cityofredding.org btippin@cityofredding.org SUBJECT: 9.2(g) --Consider providing direction to staff regarding a Navigation/Day Resource Center Recommendation Provide direction to staff regarding the location, the purchase and development, and the operation of a Navigation/Day Resource Center. Fiscal Impact The Encampment Resolution Lookback Disbursement Funding (ERF -3-L) provides $8,354,955 in grant funds to the City of Redding (City) as detailed in the California Department General Services — Business, Consumer Services and Housing Agency (BCSH) Standard Agreement. As part of the ERF -3-L grant award, $3,000,000 was allocated toward the development of a Day Resource Center (DRC). In addition, $720,000 has been earmarked for a director and case management services upon the completion of the project and for the first three years of operation. There is no impact to the General Fund. Alternative Action City Council (Council) may choose to take no action, may choose to consider other DRC location/development alternatives or may choose to not pursue a DRC development project. If Council chooses not to pursue the DRC project, any request for redirection of ERF -3-L funds will need to be reviewed and approved by BCSH and could result in losing the grant award. Report to Redding City Council December 14, 2023 Re: 9.2(g) Provide direction to staff regarding a Day Resource Center Page 2 Background/Analysis At the meeting of November 21, 2023, Council discussed several possible directions with regard to developing a DRC. Option 1: Publish a request for proposals, seeking input from the development community for possible DRC sites within the requested service area. Option 2: City to purchase a property and provide a lease option to the operator. Option 3: City staff to partner with the Good News Rescue Mission (Mission) directly, with. regard to the property already in escrow, and determine the Mission's interest in a DRC. Council requested additional information for option three and directed staff to contact the Mission. Staff met with Jonathan Anderson, the Mission's Executive Director. The Mission has been negotiating with the property owner of 3145 Veda Street and 3150 South Market Street (Properties) for more than eight months for the purpose of establising a DRC. Furthermore, the GNRM purchased 3127 Veda Street and 3131 Veda Street, located adjacent to the properties in escrow. The combined properties consist of approximately .59 acres with an existing commercial building of approximately 8,000 square feet, with power, sewer, water, four roll -up doors, and a parking lot. All parcels are located in a "Heavy Commercial" designated land use area. Under the use regulations, Heavy Commercial will allow a community social service facility use classification upon review and approval of a use permit by the Planning Commission. A community social service facility is defined as any non-commercial facility such as a day center, which may provide meals, showers and/or laundry facilities along with specialized programs and services related to the needs of those using the facility. The GNRM may be able to amend its current use permit to include the new properties. Overall, the Mission's preferred option is for the City to provide financing in the form a secured loan to the Mission. The financing would be available for the acquision, development and two to three years of operational funding of the DRC. The City would have no ownership in the project nor a covenant on the property. As proposed, the Mission would operate the facility under a new brand, completely separate from the existing Mission operations. The newly branded entity would collaborate with other agencies and nonprofits to co -locate services at the site. Although not their preferred choice, the Mission would consider a lease -option for purchase of the Properties from the City. The Mission has received costs estimates from contractors — they have estimated that the cost to renovate the space is approximately $150 per square -foot. Planning and design work would include a high-level master plan for the properties with additional considerations contemplated for existing Mission -owned parcels, improvement plans, construction costs, electrical calculations, and energy efficiency measures. The rehabilitation would include improvements such as Title 24 (Building Code Energy Efficiency Standards), fire safety, Americans with Disabilities Act upgrades and required City permits. The timeline is estimated to be three to four months for predevelopment activities and six -to -eight months for construction which includes framing, new windows and exterior doors, mechanical upgrades, insulation, sheetrock, interior doors and trim, cabinets, finish work signage, appliances, courtyard creation and landscaping. If the Council approves the City providing financing, staff would draft a development financing agreement that would include the terms, conditions, finance/loan documents and regulatory requirements and return to the City Council for consideration. Report to Redding City Council December 14, 2023 Re: 9.2(g) Provide direction to staff regarding a Day Resource Center Page 3 Environmental Review This is not a project as defined under California Environmental Quality Act, and no further action is required. A National Environmental Policy Act review is not necessary as these are State of California and not Federal funds. Council Priority/City Manager Goals • Government of the 211t Century — `Be relevant and proactive to the opportunities and challenges of today's residents and workforce. Anticipate the future to make better decisions today." • Economic Development — "Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community." • Public Safety — "Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding." Attachments GNRM Properties Location Map Aerial W+E GNRM Properties Location Map S City of Redding Feet 60 120 180 Pont Date: Deeember 11, 2023 C IT Y OF REMDINO�" AN CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: November 21, 2023 ITEM NO. 9.2(a) FROM: Steve Bade, Assistant City Manager ***APPROVED BY*** n tee S, er 11114/2023 shade@cityofredding.org 6, p n,, C -i ars e btippin@cityofredding.org SUBJECT: 9.2(a) --Appropriate Encampment Resolution Funding (ERF) 3-L Award Recommendation Authorize and approve the following actions: (1) Adopt Resolution approving and adopting the 23rd Amendment to City Budget Resolution No. 2023-060 appropriating $8,354,960 of Encampment Resolution Funding Lookback Disbursement Round 3 (ERF -3-L) funds and adding a full-time, Housing Specialist 1/11 position to the Housing Division; (2) Authorize the City Manager to negotiate a Development Funding Agreement with the Good News Rescue Mission for maintenance improvements in an amount not to exceed $500,000; (3) Direct staff to prepare a request for proposals for eligible scope of work items as identified on the attached Grant Expenditure Summary which includes housing case managers; interim housing/motel room partnerships; day resource center purchase; and day resource center director and case manager; and prioritize the release of each request for proposal; and (4) Determine that allocating grant funding is not considered a project under the California Environmental Quality Act. Fiscal Impact The Encampment Resolution Lookback Disbursement Funding (ERF -3-L) provides $8,354,955 in grant funds to the City of Redding (City) as detailed in the California Department General Services — Business, Consumer Services and Housing Agency (BCSH) Standard Agreement. Administration and activity delivery costs of $473,455 will assist in funding associated staff contract administration costs and an additional staff person. There is no impact to the General Fund, and the ERF -3-L grant does not require matching funds. Report to Redding City Council November 15, 2023 Re: 9.2(a) --Appropriate Encampment Resolution Funding (ERF -3-L) Award Page 2 Alternative Action The City Council (Council) could choose not to give staff direction to prepare Request for Proposals (RFPs) and staff would work within the Standard Agreement and funding guidelines to implement the ERF -3-L funds. Or, Council could provide alternate direction to staff. If Council redirects funds within categories or changes a category, ERF -3-L funds may be lost or reduced by the BCSH. Background/Analysis On. February 21, 2023, Council authorized and approved Housing Division staff to submit a grant application through the BCSH for the ERF -3-L Program. The City's initial application was denied. However, staff revised the application with a focus on a cohesive project that provided support services to specific encampments connected to a day resource center and was awarded $8,354,955 in ERF -3-L grant funds. On September 21, 2023, a Standard Agreement detailing the budget, scope of work, and terms and conditions of the funding was executed. The ERF -3-L grant's intent is to provide outreach, supportive services and connection to shelter for those living in the Linden/Mercy Canyon, Progress/Technology Way Encampments (Encampments) or the Good News Rescue Mission area. As proposed in the grant application, the City's primary means of providing outreach and services is through the Crisis Intervention Response Team (CIRT) officers, coupled with housing case manager services. The case managers will assist CIRT in their efforts and provide more intensive services by connecting unsheltered persons to shelter and housing options along with other community resources such as employment options, public benefits, medical or dental care or drug and alcohol abuse rehabilitation. In addition, the grant will fund sanitation support for the encampments and case managers with housing placement support assistance that includes: deposits, application fees, and furnishings for no more than 50 people. ERF -3-L funding also specifically provides for maintenance improvements to the Good News Rescue Mission (GNRM). These maintenance needs include a new roof, kitchen upgrade and remodel, laundry and privacy screening improvements, if the budget allows. The City Manager and staff will work with the GNRM to determine the full scope of the maintenance improvements and will negotiate a development funding agreement to set forth the terms and conditions of the grant funding and GNRM project. Lastly, the ERF -3-L award includes funding for specific categories that include: interim housing/motel room partnerships; day resource center purchase and rehabilitation; and a day resource center director and case manager to support the center for the first three years of operation. At the Council's discretion, each one of these categories can be the subject of a request for proposal that can be drafted by staff and reviewed and approved by the Council and/or the City Manager — ERF -3-L funding allows either path for selection. Over the last year, the City has strived to provide leadership surrounding the unsheltered crisis in our community. As such, staff has diligiently competed for grants to help the community assist this vulnerable population, but with more grants, comes more workload and responsibility. The Housing Division's goal is to continue its level of service to the community while also providing Report to Redding City Council November 15, 2023 Re: 9.2(a) --Appropriate Encampment Resolution Funding (ERF -3-L) Award Page 3 succession planning for three possible staff retirements within the next two years. As such, additional staff is needed to support the Housing Division's projects, programs, and goals. Staff requests the addition of one, full-time Housing Specialist position to assist with the day-to-day administration of the Encampment grant award. With the addition of this position, the Housing Division will have 20 positions, consisting of 19.5 full-time and one 1/2 time employees. Environmental Review This is not a project as defined under California Environmental Quality Act, and no further action is required. A National Environmental. Policy Act review is not necessary as these are State of California and not Federal funds. Council Priority/City Manager Goals • Public Safety — "Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding." • Government of the 211t Century — `Be relevant and proactive to the opportunities and challenges of today's residents and workforce. Anticipate the future to make better decisions today." Attachments ^Budget Resolution "Grant Expenditure Summary Standard Agreement (C-10048) Resolution No. 2023 - A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE 23rd AMENDMENT TO CITY BUDGET RESOLUTION NO. 2023-060 APPROPRIATING $8,354,960 FOR ENCAMPMENT RESOLUTION FUNDING LOOKBACK DISBURSEMENT ROUND 3 FUNDS INCLUDING A FULL-TIME HOUSING SPECIALIST I/II FOR FISCAL YEAR 2023-24. BE IT RESOL VED BY THE CITY COUNCIL OF THE CITY OF REDDING THAT Budget Resolution No. 2023-060 be and is hereby amended as follows: FUND 191. 191 DIVISION DESCRIPTION 9191 State & Local Housing and Community Development 9151 Housing & Community Development INCREASE DECREASE $2,354,960 $0 THAT account titles and numbers requiring adjustments by this Resolution are as follows: PERSONNEL Housing Specialist I/II FY 2023-24 1 FTE THAT the purpose is to appropriate $8,354,960 for Encampment Resolution Funding Lookback Disbursement Round 3 funds including a Full -Time Housing Specialist UII for fiscal year 2023- 24. I HEREBY CERTIFY that the foregoing Resolution was introduced at a regular meeting of the City Council of the City of Redding on the 21st day of November, 2023 and was duly adopted at said meeting by the following vote: USE SOURCE OF FUNDS OF FUNDS Increase (Decrease) Revenue 191-9191-3622901-00000 State Grant Operating -Com Devel $ 8,354,960 Increase (Decrease) Expenditures 191-9191-6410604-00000 Encampment Grant ERF 3-1, $ 8,354,960 191-9151-4900111-00000 Full Time Regular 35,240 191-91.51-4900171-00000 Worker's Comp 1,240 191-9151-4900173-00000 Group Insurance 9,570 191-9151-4900175-00000 Retirement Program - PERS 10,630 191-9151-4900177-00000 Medicare 510 191-91514901885-00000 Cross Charge to State & Local HCD $ (57,190) Total $ 8,354,960 $ 8,354,960 PERSONNEL Housing Specialist I/II FY 2023-24 1 FTE THAT the purpose is to appropriate $8,354,960 for Encampment Resolution Funding Lookback Disbursement Round 3 funds including a Full -Time Housing Specialist UII for fiscal year 2023- 24. I HEREBY CERTIFY that the foregoing Resolution was introduced at a regular meeting of the City Council of the City of Redding on the 21st day of November, 2023 and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ATTEST: SHARLENE TIPTOP, City Clerk MICHAEL DACQUISTO, Mayor FORM APPROVAL: BARRY E. DeWALT, City Attorney ERF 3-L Grant Expenditure Summary Focus: Linden/Mercy Canyon and Progress/Technology Way Encampments Amount Purpose Notes $840,000 CIRT Officers 1.6 FTE - $175k/yr - 36 months $540,000 Case Managers 2 FTE-$90k/yr-36 months -To work alongside CIRT-Housing Case Managers $67,500 Street Outreach Supplies CIRT/Case Managers - purchases of hygeine, food, supplies, narcan $300,000 Sanitation Support Portable toilets, hand washing stations, dumpsters for 2 sites - 30 months $150,000 Housing Supports Use by Case Managers to help get people into housing: deposits, application fees, furnishings, etc for up to 50 people $1,764,000 Interim Housing/Motel Rooms 35 rooms for 70 people x $1400/room - 36 months $3,000,000 Day Resource Center Purchase, Rehab, startup operation costs $450,000 Director - Day Resource Center 1 FTE 36 months $270,000 Case Manager - Day Resource Center 1 FTE 36 months $500,000 Good News Rescue Mission Rehab Remodel/rehab current shelter such as roof, kitchen, laundry, privacy screening $473,455 City of Redding Staffing and overhead costs $8,354,955 Deadlines: 6/30/25 - 50% expended/100% obligated; 6/30/26 -100% expended C- I c)o m® m tiD c$ CD N Q Q a. a E cc cu LU r4 Q y F Q 0 Q 0 6 < m z aa, -0 N ° O f z M c AQP v Lnv V ° E ®' CS O ? 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