Special City Council Meeting

CITY OF CRESCENT CITY Mayor Jason Greenough Mayor Pro Tem Isaiah Wright Council Member Raymond Altman Council Member Beau Smith Council Member Blake Inscore AGENDA SPECIAL CITY COUNCIL MEETING VIA ZOOM TUESDAY JANUARY 18, 2022 6:00 P.M. ZOOM PHONE NUMBER: (253) 215-8782 ZOOM WEBINAR ID: 842 8854 4373 MUTE / UNMUTE PRESS *6 RAISE HAND PRESS *9 The public may access and participate in the public meeting using one or more of the following methods: 1) Participate live online via Zoom (details below) or by utilizing the link to join the meeting posted on both the City of Crescent City – City Hall Facebook page and the City of Crescent City website (www.crescentcity.org), public comment may be made by using the raise hand feature on Zoom; 2) Watch the meeting via livestream on YouTube (channel: City of Crescent City, California), public comment may be made by calling in to the meeting using the Zoom phone number; 3) Public comments may be made in advance by submitting written comment via publiccomment@crescentcity.org or by filing it with the City Clerk at 377 J Street, Crescent City, California, 95531. All public comments (via email or mail) must be received by the City Clerk prior to 12:00 p.m. the day of the meeting. Please identify the meeting date and agenda item to which your comment pertains in the subject line. Public comments so received will be forwarded to the City Council and posted on the website next to the agenda. Written public comments will not be read aloud during the meeting. Notice regarding Americans with Disabilities Act: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in the meeting, please contact the City Clerk’s office at (707)464-7483, ext. 223. Notification 48 hours before the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting [28 CFR 35.102- 35.104 ADA Title II]. For TTYDD use for speech and hearing impaired, please dial 711. A full agenda packet may be reviewed at City Hall, 377 J Street, Crescent City, CA or on our website: www.crescentcity.org OPEN SESSION Call to order Roll call Pledge of Allegiance 1|Page 1/18/22 COUNCIL AGENDA NEW BUSINESS - 1. Application to State Department of Parks and Recreation for Prop 68 Rural Recreation and Tourism Grant Funds • Recommendation: Hear staff report • Technical questions from the Council • Receive public comment • Further Council discussion • Approve and adopt Resolution No. 2022-04, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CRESCENT CITY APPROVING APPLICATION(S) FOR PROP 68 RURAL RECREATION AND TOURISM GRANT FUNDS CITY COUNCIL ITEMS ➢ Legislative Matters – Consider miscellaneous legislative matters pertinent to the City of Crescent City. Authorize the Mayor to sign the appropriate letters and/or positions with respect to such matters. ➢ City Manager Report and City Council Directives – Pursuant to Crescent City Municipal Code § 2.08.200, the City Council may instruct the city manager on matters of importance to the administrative services of the City and provide direction with respect to subordinates of the City Manager. (Directives from individual Council Members that are not objected to by any member present shall be considered an order of the City Council.) ➢ Reports, Concerns, Referrals, Council travel and training reports – In accordance with Gov’t Code § 54954.2(a), City Council Members may make brief announcements or brief reports on their own activities. They may ask questions for clarification, make a referral to staff or take action to have staff place a matter of business on a future agenda. ADJOURNMENT Adjourn to the regular meeting with the City Council of the City of Crescent City scheduled for Monday, January 24, 2022 at 6:00 p.m., via Zoom. POSTED: January 13, 2022 /s/ Robin Patch City Clerk/Administrative Analyst Vision: The City of Crescent City will continue to stand the test of time and promote quality of life and community pride for our residents, businesses and visitors through leadership, diversity, and teamwork. Mission: The purpose of our city is to promote a high quality of life, leadership and services to the residents, businesses, and visitors we serve. The City is dedicated to providing the most efficient, innovative and economically sound municipal services building on our diverse history, culture and unique natural resources. Values: Accountability Honesty & Integrity Excellent Customer Service Effective & Active Communication Teamwork Fiscally Responsible 2|Page 1/18/22 COUNCIL AGENDA  CITY COUNCIL AGENDA REPORT TO: MAYOR GREENOUGH AND MEMBERS OF THE CITY COUNCIL FROM: ERIC WIER, CITY MANAGER BY: BRIDGET LACEY, GRANTS / ECONOMIC DEVELOPMENT COORDINATOR DATE: JANUARY 18, 2022 SUBJECT: APPLICATION TO STATE DEPARTMENT OF PARKS AND RECREATION FOR PROP 68 RURAL RECREATION AND TOURISM GRANT FUNDS ______________________________________________________________________ RECOMMENDATION • Hear staff report • Technical questions from the Council • Receive public comment • Further Council discussion • Adopt Resolution No. 2022-04, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CRESCENT CITY APPROVING APPLICATION(S) FOR PROP 68 RURAL RECREATION AND TOURISM GRANT FUNDS. BACKGROUND In March 2019, California Department of Parks and Recreation announced that $23,125,000 in funds were available through the Rural Recreation and Tourism Program (RRTP) for local park rehabilitation, creation, and improvement. The RRTP is funded through the Parks and Water Bond Act of 2018 (Proposition 68), which is found in Public Resources Code § 80090. Grant recipients are encouraged to utilize awards to create new recreational opportunities within rural communities. The RRTP competitive grants will create new recreational features in support of economic, tourism, and health-related goals. Competitive projects will improve the health of residents and attract out-of-town visitors. Eligible Applicants may apply for up to $3,000,000 in grant funds per application. Eligible Applicants Eligible applicants include cities, counties and districts in non-urbanized areas. To qualify as a non-urbanized area, the project site must meet one of these thresholds: 1. Be in a county with a population below 500,000 people, and, in a city/town/census designated place that has a population below 50,000 people. OR 2. Be in a county with a population below 500,000 people, and, in a city/town/census designated place that has a population below 80,000 people, provided that the county below 500,000 people has adopted State planning priorities pursuant to Government Code Section 65041.1. The applicant shall include in the RRTP application a letter or other documentation from the County's Planning Agency confirming the county has adopted one or more State planning priorities found in Government Code Section 65041.1 to limit sprawl, protect environmental and agricultural resources, and encourages efficient infill development patterns within incorporated city limits. Eligible Projects and Priorities Eligible projects and priorities for Prop 68 funds include the following: • Acquisition of land: o Combined with development of a new recreational feature; or o Already has a recreational feature for public use at close of escrow. For expansions, this may include acquiring adjacent land to protect viewsheds or create new access; • Aquatic center, swimming pool, splash pad, fishing pier or paddling launch site; • Amphitheater/performing arts dance, music, and theater stage; • Regional Sports Complex; • Athletic fields (soccer regulation or “futbol-rapido”, baseball, softball, football); • Athletic courts (basketball, “futsal”, tennis, pickleball, etc.); • Year-round complexes; • Winter recreational features, such as skiing, snowboarding, snowshoeing, etc.; • Summer recreational features, such as hiking, mountain biking, equestrian, etc. • Visitor, interpretive, cultural, historical structures; • Wildlife viewing structure or shade structure/covered park area; • Non-motorized trail, equestrian trail, bikeways, pedestrian/bicycle bridge; • Botanical or demonstration gardens and orchards; • Recreation center/gymnasium; • Dog park; • Jogging and walking loop, par course, running track; • Gym exercise equipment (stations fixed into ground) or outdoor exercise equipment; • Disc Golf; • Open space and natural area for public recreation use; • Campground (developed or primitive campsites); • Picnic/Bar-B-Que areas; • Playground and tot lot; • Plaza, zocalo, gazebo; • Public art (mosaic tiles, sculptures, murals);  • Skate park, skating, roller blading, or ice rink, and BMX or pump track (nonmotorized bike tracks); • Lighting to allow for extended nighttime use of an existing recreational feature is considered a renovation. A project may also include major support amenities such as: • Restroom building, snack shack; • Parking lot, staging area, pathway for access to a recreational feature; • Landscaping or lighting that will be constructed throughout the project site. ITEM ANALYSIS If awarded, the Prop 68 Rural Recreation and Tourism funds will provide the City with funding for the Waterfront Plaza and the Outdoor Amphitheater recreational amenities in Beachfront Park. These two features are included in the City’s 2021 Beachfront Park Master Plan, which is founded upon extensive community input. In response to the Application Guide for the Rural Recreation and Tourism Program provided by the Office of Grants and Local Services (OGALS) in March 2019, the City of Crescent City began the community outreach process and collection of information to be prepared for the defined application process for all Prop. 68 grant opportunities to be eligible for funding. At this time, City staff are asking for City Council to adopt a resolution approving an application for the Prop 68 Rural Recreation and Tourism Grant in the amount of $3,000,000. This application would also list the City’s recent Prop 68 Grant Award of $5,000,000 as well as the Prop 68 Per Capita funding of 177,000, resulting in an overall proposed Beachfront Park improvement project of over $8.1 Million. The resolution also authorizes the City Manager, Economic Development and Recreation Director, or Finance Director to sign and execute any further contracts or documents should the City be granted funds during the Grant Performance period ending June 30, 2025. The resolution also states that the City will comply with all grant requirements. The draft contract template the City will be required to sign upon grant award is also attached for your review. GRANT APPLICATION TIMELINE Grant Performance Period: July 1, 2020 – June 30, 2025 • Resolution approving the filing of all applications associated with the contract January 20, 2022 • Application Packets defining the project scope and funding sources January 20, 2022 • Award Announcements for the $23,125,000 in available funding Spring 2022 • Project Closeout o Complete Project March 31, 2025 o Project Completion Packet to OGALS March 31, 2025  • Accounting and Audit: Grantee required to retain project records for five years following issuance of the final payment or project termination, whichever is later. Project Site Maintenance: Grantee must ensure operation and maintenance of the project site for 30 years. The 30-year period begins on July 1, 2020 and ends on June 30, 2050. FISCAL ANALYSIS Adoption of this resolution allows the City to apply for these competitive funds. There will be no matching funds required for this grant. These funds would support implementation of the Beachfront Park Master Plan and increase the recreational opportunities for residents and visitors to our community. STRATEGIC PLAN ASSESSMENT This action is consistent with the following 2016 Strategic Plan Goals: • Goal 1: Support quality services, community safety, and health to enhance the quality of life and experience of our residents and visitors. o Encouraging and supporting community participation in the implementation of the Beachfront Park Master Plan through avenues such as Beachfront Park Fund. o Target economic development improvements that provide additional benefit by enhancing the quality of life for residents. o Examine methods to maintain, enhance, and expand park and recreation facilities • Goal 2: Promote a thriving local economy. o Evaluate and optimize additional revenue sources. o Support community services that provide measurable services to the community. o Research and implement methods to increase local tourism and funding for tourism promotion. o Expand on the success of grant funding by maximizing utilization of opportunities with corresponding community needs. ATTACHMENTS 1. Resolution No. 2022-04 Prop 68 Agreement Template  RESOLUTION NO. 2022-04 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CRESCENT CITY APPROVING APPLICATION(S) FOR RURAL RECREATION AND TOURISM PROGRAM GRANT FUNDS WHEREAS, pursuant to the Parks and Water Bond Act of 2018 (Prop 68), the State Department of Parks and Recreation has been delegated the responsibility by the Legislature of the State of California for the administration of the Rural Recreation and Tourism Grant Program, setting up necessary procedures governing the application; and WHEREAS, said procedures established by the State Department of Parks and Recreation require the Applicant to certify by resolution the approval of the application(s) before submission of said application to the State; and WHEREAS, successful Applicants will enter into a contract with the State of California to complete the Grant Scope project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Crescent City that the City Council hereby: 1. Approves the filing of project application(s) for Rural Recreation and Tourism Grant funds for Beachfront Park Projects identified in this application; and 2. Certifies that the City has or will have available, prior to commencement of any work on the project(s) included in this application, sufficient funds to complete the project(s); and 3. Certifies that if the project(s) is awarded, the City has or will have sufficient funds to operate and maintain the project(s); and 4. Certifies that the City has reviewed, understands, and agrees to the General Provisions contained in the contract shown in the Grant Administration Guide; and 5. Delegates the authority to the City Manager, Economic Development and Recreation Director, and Finance Director, or designee to conduct all negotiations, sign and submit all documents, including, but not limited to applications, agreements, amendments, and payment requests, which may be necessary for the completion of the grant scope(s); and 6. Agrees to comply with all applicable federal, state and local laws, ordinances, rules, regulations and guidelines. CITY OF CRESCENT CITY RESOLUTION NO. 2022-04 Page 1  7. Will consider promoting inclusion per Public Resources Code § 80001(b)(8 A-G). PASSED AND ADOPTED at a special meeting of the City Council of the City of Crescent City held on this the 18th day of January 2022, by the following polled vote: AYES: NOES: ABSTAIN: ABSENT: _____________________________ Jason Greenough, Mayor ATTEST: __________________________ Robin Patch, City Clerk CITY OF CRESCENT CITY RESOLUTION NO. 2022-04 Page 2 Competitive Grant Program Contract State of California – The Natural Resources Agency DEPARTMENT OF PARKS AND RECREATION Sample Grant Contract Competitive Grant Program GRANTEE: Grantee Name GRANT PERFORMANCE PERIOD is from July 1, 2019 through June 30, 2024 CONTRACT PERFORMANCE PERIOD is from July 1, 2019 through June 30, 2049 The GRANTEE agrees to the terms and conditions of this contract (CONTRACT), and the State of California, acting through its Director of the Department of Parks and Recreation, pursuant to the State of California, agrees to fund the total State grant amount indicated below. The GRANTEE agrees to complete the PROJECT SCOPE(s) as defined in the Development PROJECT SCOPE/Cost Estimate Form or acquisition documentation for the application(s) filed with the State of California. The General and Special Provisions attached are made a part of and incorporated into the Contract. Total State grant amount not to exceed $ [GRANT amount] GRANTEE AUTHORIZED REPRESENTATIVE Signature Date Print Name and Title STATE OF CALIFORNIA DEPARTMENT OF PARKS AND RECREATION AUTHORIZED REPRESENTATIVE Signature Date Print Name and Title CERTIFICATION OF FUNDING (FOR STATE USE ONLY) AMOUNT OF ESTIMATE $ CONTRACT NUMBER FUND ADJ. INCREASING ENCUMBRANCE $ APPROPRIATION ADJ. DECREASING ENCUMBRANCE $ ITEM VENDOR NUMBER UNENCUMBERED BALANCE $ LINE ITEM ALLOTMENT CHAPTER STATUTE FISCAL YEAR T.B.A. NO. B.R. NO. INDEX Funding Source OBJ. EXPEND I hereby certify upon my personal knowledge that budgeted funds are available for this encumbrance. SIGNATURE OF ACCOUNTING OFFICER DATE 28 I. RECITALS This CONTRACT is entered into between the California Department of Parks and Recreation (hereinafter referred to as “GRANTOR,” “DEPARTMENT” or “STATE”) and [grantee name] (hereinafter referred to as “GRANTEE”). The DEPARTMENT hereby grants to GRANTEE a sum (also referred to as “GRANT MONIES”) not to exceed $grant amount, subject to the terms and conditions of this CONTRACT and the 20xx/xx California State Budget, Chapter xx, statutes of 20xx, Item number – 3790-xxx-xxxx (appropriation chapter and budget item number hereinafter referred to as “COMPETITIVE GRANT PROGRAM GRANT”). These funds shall be used for completion of the GRANT SCOPE(S). The Grant Performance Period is from July 1, 20xx to June 30, 20xx. II. GENERAL PROVISIONS A. Definitions As used in this CONTRACT, the following words shall have the following meanings: 1. The term “ACT” means the California Drought, Water, Parks Climate, Coastal Protection, and Outdoor Access for All Act of 2018, as referred to in section I of this CONTRACT. 2. The term “APPLICATION” means the individual project APPLICATION packet for a project pursuant to the enabling legislation and/or grant program process guide requirements. 3. The term “DEPARTMENT” or “STATE” means the California Department of Parks and Recreation. 4. The term “DEVELOPMENT” means capital improvements to real property by means of, but not limited to, construction, expansion, and/or renovation, of permanent or fixed features of the property. 5. The term “GRANTEE” means the party described as the GRANTEE in Section I of this CONTRACT. 6. The term “GRANT SCOPE” means the items listed in the GRANT SCOPE/Cost Estimate Form found in each of the APPLICATIONS submitted pursuant to this grant. 7. The term “GUIDES” means (1) the document identified as the “Grant Administration Guide for California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access For All Act of 2018 Competitive Grant Programs Capital Improvement Projects” and (2) The Application Guide that established the competitive procedures and policies for the selection of projects. B. Project Execution 1. Subject to the availability of GRANT MONIES in the act, the STATE hereby grants to the GRANTEE a sum of money not to exceed the amount stated in Section I of this CONTRACT, in consideration of, and on condition that, the sum be expended in carrying out the purposes as set forth in the scope described in the enabling legislation and referenced in the APPLICATION, Section I of this CONTRACT, and under the terms and conditions set forth in this CONTRACT. The GRANTEE shall assume any obligation to furnish any additional funds that may be necessary to complete the GRANT SCOPE(S). The GRANTEE agrees to submit any change or alteration from the original GRANT SCOPE(S) in writing to the STATE for prior approval. This applies to any and all changes that occur after STATE has approved the APPLICATION. Changes in the GRANT SCOPE(S) must be approved in writing by the STATE. 29  2. The GRANTEE shall complete the GRANT SCOPE(S) in accordance with the time of the Performance Period set forth in Section I of this CONTRACT, and under the terms and conditions of this contract. To maintain the integrity of the competitive grant program, the GRANTEE agrees that any other project changes or alterations which deviate from the intent of the project selection criteria provided by the GRANTEE in the original competitive APPLICATION must be submitted in writing to the STATE for prior approval. 3. The GRANTEE shall comply with the California Environmental Quality Act (Public Resources Code, §21000, et seq., Title 14, California Code of Regulations, §15000 et seq.). 4. The GRANTEE shall comply with all applicable current laws and regulations affecting DEVELOPMENT projects, including, but not limited to, legal requirements for construction contracts, building codes, health and safety codes, and laws and codes pertaining to individuals with disabilities, including but not limited to the Americans With Disabilities Act of 1990 (42 U.S.C. §12101 et seq.) and the California Unruh Act (California Civil Code §51 et seq.) C. Procedural Guide 1. GRANTEE agrees to abide by the GUIDES. 2. GRANTEE acknowledges that STATE may make reasonable changes to its procedures as set forth in the GUIDES. If STATE makes any changes to its procedures and guidelines, STATE agrees to notify GRANTEE within a reasonable time. D. Project Administration 1. If GRANT MONIES are advanced for DEVELOPMENT projects, the advanced funds shall be placed in an interest bearing account until expended. Interest earned on the advanced funds shall be used on the project as approved by the STATE. If grant monies are advanced and not expended, the unused portion of the grant and any interest earned shall be returned to the STATE within 60 days after project completion or end of the grant performance period, whichever is earlier. 2. The GRANTEE shall submit written project status reports within 30 calendar days after the STATE has made such a request. In any event, the GRANTEE shall provide the STATE a report showing total final project expenditures within 60 days of project completion or the end of the grant performance period, whichever is earlier. The grant performance period is identified in Section I of this CONTRACT. 3. The GRANTEE shall make property or facilities acquired and/or developed pursuant to this contract available for inspection upon request by the STATE. E. Project Termination 1. Project Termination refers to the non-completion of a GRANT SCOPE. Any grant funds that have not been expended by the GRANTEE shall revert to the STATE. 2. The GRANTEE may unilaterally rescind this CONTRACT at any time prior to the commencement of the project. The commencement of the project means the date of the letter notifying GRANTEE of the award or when the funds are appropriated, whichever is later. After project commencement, this CONTRACT may be rescinded, modified or amended only by mutual agreement in writing between the GRANTEE and the STATE, unless the provisions of this contract provide that mutual agreement is not required. 30  3. Failure by the GRANTEE to comply with the terms of the (a) GUIDES, (b) any legislation applicable to the ACT, (c) this CONTRACT as well as any other grant contracts, specified or general, that GRANTEE has entered into with STATE, may be cause for suspension of all obligations of the STATE unless the STATE determines that such failure was due to no fault of the GRANTEE. In such case, STATE may reimburse GRANTEE for eligible costs properly incurred in performance of this CONTRACT despite non-performance of the GRANTEE. To qualify for such reimbursement, GRANTEE agrees to mitigate its losses to the best of its ability. 4. Any breach of any term, provision, obligation or requirement of this CONTRACT by the GRANTEE shall be a default of this CONTRACT. In the case of any default by GRANTEE, STATE shall be entitled to all remedies available under law and equity, including but not limited to: a) Specific Performance; b) Return of all GRANT MONIES; c) Payment to the STATE of the fair market value of the project property or the actual sales price, whichever is higher; and d) Payment to the STATE of the costs of enforcement of this CONTRACT, including but not limited to court and arbitration costs, fees, expenses of litigation, and reasonable attorney fees. 5. The GRANTEE and the STATE agree that if the GRANT SCOPE includes DEVELOPMENT, final payment may not be made until the work described in the GRANT SCOPE is complete and the GRANT PROJECT is open to the public. F. Budget Contingency Clause If funding for any fiscal year is reduced or deleted by the budget act for purposes of this program, the STATE shall have the option to either cancel this contract with no liability occurring to the STATE, or offer a CONTRACT amendment to GRANTEE to reflect the reduced grant amount. This Paragraph shall not require the mutual agreement as addressed in Paragraph E, provision 2, of this CONTRACT. G. Hold Harmless 1. The GRANTEE shall waive all claims and recourse against the STATE including the right to contribution for loss or damage to persons or property arising from, growing out of or in any way connected with or incident to this CONTRACT except claims arising from the concurrent or sole negligence of the STATE, its officers, agents, and employees. 2. The GRANTEE shall indemnify, hold harmless and defend the STATE, its officers, agents and employees against any and all claims, demands, damages, costs, expenses or liability costs arising out of the ACQUISITION, DEVELOPMENT, construction, operation or maintenance of the property described as the project which claims, demands or causes of action arise under California Government Code Section 895.2 or otherwise except for liability arising out of the concurrent or sole negligence of the STATE, its officers, agents, or employees. 3. The GRANTEE agrees that in the event the STATE is named as codefendant under the provisions of California Government Code Section 895 et seq., the GRANTEE shall notify the STATE of such fact and shall represent the STATE in the legal action unless the STATE undertakes to represent itself as codefendant in such legal action in which event the GRANTEE agrees to pay the STATE’s litigation costs, expenses, and reasonable attorney fees. 4. The GRANTEE and the STATE agree that in the event of judgment entered against the STATE and the GRANTEE because of the concurrent negligence of the STATE and the GRANTEE, their officers, agents, or employees, an apportionment of liability to pay such judgment shall be made by a court of competent jurisdiction. Neither party shall request a jury apportionment. 5. The GRANTEE shall indemnify, hold harmless and defend the STATE, its officers, agents and employees against any and all claims, demands, costs, expenses or liability costs arising out of 31  legal actions pursuant to items to which the GRANTEE has certified. The GRANTEE acknowledges that it is solely responsible for compliance with items to which it has certified. H. Financial Records 1. The GRANTEE shall maintain satisfactory financial accounts, documents, including loan documents, and all other records for the project and to make them available to the STATE for auditing at reasonable times. The GRANTEE also agrees to retain such financial accounts, documents and records for five years following project termination or issuance of final payment, whichever is later. The GRANTEE shall keep such records as the STATE shall prescribe, including records which fully disclose (a) the disposition of the proceeds of STATE funding assistance, (b) the total cost of the project in connection with such assistance that is given or used, (c) the amount and nature of that portion of the project cost supplied by other sources, and (d) any other such records that will facilitate an effective audit. 3. The GRANTEE agrees that the STATE shall have the right to inspect and make copies of any books, records or reports pertaining to this CONTRACT or matters related thereto during regular office hours. The GRANTEE shall maintain and make available for inspection by the STATE accurate records of all of its costs, disbursements and receipts with respect to its activities under this CONTRACT. Such accounts, documents, and records shall be retained by the GRANTEE for at least five years following project termination or issuance of final payment, whichever is later. 4. The GRANTEE shall use a generally accepted accounting system. I. Use of Facilities 1. The GRANTEE agrees that the GRANTEE shall operate and maintain the property acquired or developed with the GRANT MONIES, for the duration of the Contract Performance Period. 2. The GRANTEE agrees that, during the Contract Performance Period, the GRANTEE shall use the property acquired or developed with GRANT MONIES under this contract only for the purposes of this grant and no other use, sale, or other disposition or change of the use of the property to one not consistent with its purpose shall be permitted except as authorized by the STATE and the property shall be replaced with property of equivalent value and usefulness as determined by the STATE. 2. The property acquired or developed may be transferred to another entity if the successor entity assumes the obligations imposed under this CONTRACT and with the approval of STATE. 3. Any real Property (including any portion of it or any interest in it) may not be used as security for any debt or mitigation, without the written approval of the STATE provided that such approval shall not be unreasonably withheld as long as the purposes for which the Grant was awarded are maintained. Any such permission that is granted does not make the STATE a guarantor or a surety for any debt or mitigation, nor does it waive the STATE’S rights to enforce performance under the Grant CONTRACT. 4. All real property, or rights thereto, acquired with GRANT MONIES shall be subject to an appropriate form of restrictive title, rights, or covenants approved by the STATE. If the project property is taken by use of eminent domain, GRANTEE shall reimburse STATE an amount at least equal to the amount of GRANT MONIES received from STATE or the pro-rated full market value of the real property, including improvements, at the time of sale, whichever is higher. 32  5. If eminent domain proceedings are initiated against GRANTEE, GRANTEE shall notify STATE within 10 days of receiving the complaint. J. Nondiscrimination 1. The GRANTEE shall not discriminate against any person on the basis of sex, race, color, national origin, age, religion, ancestry, sexual orientation, or disability in the use of any property or facility developed pursuant to this contract. 2. The GRANTEE shall not discriminate against any person on the basis of residence except to the extent that reasonable differences in admission or other fees may be maintained on the basis of residence and pursuant to law. 3. All facilities shall be open to members of the public generally, except as noted under the special provisions of this project CONTRACT or under provisions of the enabling legislation and/or grant program. K. Severability If any provision of this CONTRACT or the application thereof is held invalid, that invalidity shall not affect other provisions or applications of the CONTRACT which can be given effect without the invalid provision or application, and to this end the provisions of this CONTRACT are severable. L. Liability 1. STATE assumes no responsibility for assuring the safety or standards of construction, site improvements or programs related to the GRANT SCOPE. The STATE’S rights under this CONTRACT to review, inspect and approve the GRANT SCOPE and any final plans of implementation shall not give rise to any warranty or representation that the GRANT SCOPE and any plans or improvements are free from hazards or defects. 2. GRANTEE will secure adequate liability insurance, performance bond, and/or other security necessary to protect the GRANTEE’s and STATE’S interest against poor workmanship, fraud, or other potential loss associated with completion of the grant project. M. Assignability Without the written consent of the STATE, the GRANTEE’S interest in and responsibilities under this CONTRACT shall not be assignable by the GRANTEE either in whole or in part. N. Use of Grant Monies GRANTEE shall not use any grant funds (including any portion thereof) for the purpose of making any leverage loan, pledge, promissory note or similar financial device or transaction, without: 1) the prior written approval of the STATE; and 2) any financial or legal interests created by any such leverage loan, pledge, promissory note or similar financial device or transaction in the project property shall be completely subordinated to this CONTRACT through a Subordination Agreement provided and approved by the STATE, signed by all parties involved in the transaction, and recorded in the County Records against the fee title of the project property. 33 O. Section Headings The headings and captions of the various sections of this CONTRACT have been inserted only for the purpose of convenience and are not a part of this CONTRACT and shall not be deemed in any manner to modify, explain, or restrict any of the provisions of this CONTRACT. P. Waiver Any failure by a party to enforce its rights under this CONTRACT, in the event of a breach, shall not be construed as a waiver of said rights; and the waiver of any breach under this CONTRACT shall not be construed as a waiver of any subsequent breach. GRANTEE AUTHORIZED REPRESENTATIVE Signature Date Print Name and Title STATE OF CALIFORNIA DEPARTMENT OF PARKS AND RECREATION AUTHORIZED REPRESENTATIVE Signature Date Print Name and Title 34