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HomeMy WebLinkAbout2008-09-09 - AGENDA REPORTS - SCRDA LOAN HIDAWAY (2)Agenda Item: (�A _p* 2 CITY OF SANTA CLARITA JOINT CITY COUNCIL / REDEVELOPMENT AGENCY AGENDA REPORT ; City Manager Approval: NEW BUSINESS Item to be presented by: Erin Moore -Lay DATE: September 9, 2008 SUBJECT: APPROVE LOAN OF SANTA CLARITA REDEVELOPMENT AGENCY LOW/MOD SET-ASIDE FUNDS AND AFFORDABLE HOUSING DEVELOPER FEE FUNDS TO MERCY HOUSING CALIFORNIA FOR THE AQUISITION AND REHABILITATION OF HIDAWAY APARTMENTS. DEPARTMENT: Community Development RECOMMENDED ACTION City Council: • Adopt a Resolution that the use of housing developer fee funds for the acquisition and rehabilitation of Hidaway Apartments, which is outside the RDA project area, benefits the Redevelopment Agency per Health and Safety Code 33334.2(g) and 3334.30). • Approve the loan of $670,331 in developer fees to Mercy Housing California, subject to the attached Terms and Conditions, to assist in the acquisition and rehabilitation of Hidaway Apartments. • Appropriate $670,331 from Developer Fee Fund Balance (Fund 306) to account 13002-5161.001. • Authorize the City Manager and City Attorney to draft and execute loan documents and other related agreements as needed based on the attached Resolution and Project Description. Redevelopment Agency: Adopt a Resolution that the use of the Santa Clarita Redevelopment Agency (RDA) low/mod housing funds for the acquisition and rehabilitation of Hidaway Apartments, which is outside the RDA project area, benefits the Redevelopment Agency per Health and Safety Code 33334.2(g). ISP � � Od�D Adopted:° -�4 • Approve the loan of $2,079,255 in Redevelopment Agency low/mod housing funds to Mercy Housing California, subject to the attached Terms and Conditions, to assist in the acquisition and rehabilitation of Hidaway Apartments. • Appropriate $2,079,255 from CRA-Low/Moderate Housing Fund Balance (Fund 391) to account 13401-5161.001. • Authorize the City Manager and City Attorney to draft and execute loan documents and other related agreements as needed based on the attached Resolution and Project Description. BACKGROUND Hidaway Apartments is a 67 -unit apartment building in Canyon Country that currently has 14 units available at affordable rents. The affordability agreement governing the 14 units is with the County of Los Angeles, which was entered into when the building was built in 1986. The remaining 53 units are currently at market -rate. The building is structurally sound, but suffers from significant deferred -maintenance issues, including peeling paint, broken bathroom and kitchen cabinetry, damaged sinks, bathtubs, toilets, and counter tops, buckled concrete walkways, and damaged garage doors. Mercy Housing California (Mercy) has proposed to purchase and rehabilitate the Hidaway Apartments and convert 100% of the units to affordable rental rates for families earning at or below 50% and 60% of Area Median Income (AMI). Mercy has requested a loan from the City and the Redevelopment Agency as part of the financing for the aquisition and rehabilitation. Other funding sources include a re -issue of the existing Los Angeles County loan, a California Housing Finance Authority (Ca1HFA) low-interest first mortgage loan, and Low Income Housing Tax Credits (LIHTC). Specifics of the rehabilitation plan, project costs, and the financing plan are contained in an attachment to this Agenda Report. Mercy Housing California is a national non-profit affordable housing developer. They own and operate 220 properties nationwide, with 7,000 units in California. An additional 5,404 units in California are in the predevelopment stages. All Mercy projects in California are managed by the John Stewart Management Company. Community Development staff have toured several of the Mercy rental projects which are managed by the John Stewart Company and have found them to be well-managed and well-maintained. Staff have evaluated the proforma for this project and are satisfied that sufficient financial reserves will be set aside to keep the project in excellent condition for the 55 year term of affordability. Staff have also reviewed the John Stewart Company tenant selection process and building rules and regulations and believe that they will ensure a building that will be operated in a manner that will make it an asset to the community. In addition to providing 66 units of much-needed affordable" housing for Santa Clarita residents, the structure of the loans to Mercy will give the Redevelopment Agency 33 affordable units to be used as credit against future affordable housing unit production obligation, which is incurred when market -rate development takes place in the RDA project area. These units also count toward the affordable housing goals in the Regional Housing Needs Assessment (RHNA) and the Housing Element of the City's General Plan. The Hidaway Apartments are across the street from the Canyon Village Condominiums on Hidaway Avenue. Mercy representatives have met with Canyon Village residents and the Canyon Village Homeowners Association Board to explain the project and address their concerns. Community Development management has met with representatives from the Canyon Country Advisory Committee and provided an overview of the project as well. The $670,331 in Affordable Housing Developer fees has an expenditure deadline of August 2009. If these funds are not committed to affordable housing by that time, they must be repaid to the developer. The $2,079,255 in RDA low/mod housing funds has multiple expenditure deadlines over the coming three years, the earliest of which is June 2009. Missing expenditure deadlines for RDA low/mod housing funds can result in the forfeiture of RDA low/mod housing funds to the Housing Authority of the County of Los Angeles, ALTERNATIVE ACTIONS Not approve the loans for Mercy Housing. Other actions as directed by the City Councilor the Redevelopment Agency. FISCAL IMPACT Appropriate $670,331 from Developer Fee Fund Balance (Fund 306) to account 13002-5161.001. Appropriate $2,079,255 from CRA-Low/Moderate Housing Fund Balance (Fund 391) to account 13401-5161.001. ATTACHMENTS Overview Terms and Conditions Resolution - City Council Resolution - Redevelopment Agency Request for Acquisition and Rehabilitation Loan from Mercy Housing California Fact Sheet OVERVIEW Mercy Housing California requests a loan of Affordable Housing Developer funds and Redevelopment Agency low/mod housing funds to assist in the acquisition and rehabilitation of Hidaway Apartments in Canyon Country. ❑ Loan of $2,749,586 — 3% interest — 30 year term — paid back from residual receipts ❑ Complete interior and exterior rehabilitation of project ❑ Convert from 14 affordable units to 66 affordable units (and one manager unit) ❑ Affordability maintained for 55 years ❑ The Agency will gain 33 affordable units to use as credit against RDA production requirements through 2017. PROPOSED PROJECT Current Status of Hidaway Apartments ❑ Privately owned — offered for sale ❑ $1,600,000 County loan at construction — currently in default ❑ 67 -unit building (66 rentals and 1 manager unit), all 2 & 3 bedroom units ❑ Primarily town home style, pool, jacuzzi, small play areas, laundry rooms ❑ 14 units currently affordable at 80% AMI Rehabilitation Plan ❑ Acquisition/Rehabilitation by Mercy Housing California ❑ Interior rehabilitation of all units o Replace all bathroom vanities/countertops, kitchen cabinet doors, HVAC units, dishwashers, kitchen faucets, DR ceiling light/fan, entry locks, garage doors, electrical switches/receptacles/plates o Replace most refrigerators, ranges/hoods, bathroom faucets, toilets, showerheads, bathroom lights/heating units o Repair/Replace many bathtubs, kitchen cabinets/countertops, kitchen sinks, waste disposers, entry doors, carpet/vinyl o Misc. — interior paint, smoke alarms ❑ Exterior rehabilitation of entire project o Replace all wood fencing (with vinyl), wrought iron handrails and fencing o `Paint all buildings o Remodel swimming pool and spa o Repair broken sidewalks o Repair light poles, light fixtures, sub -panels o Repair irrigation system o Install controlled gate to trail system and accessibility ramps ❑ Convert to 100% affordability for 55 years o 23 two-bedroom units @ 50% AMI o 24 two-bedroom units @ 60% AMI o 7 three-bedroom units @ 50% AMI o 12 three-bedroom units @ 60% AMI ❑ Professional management by The John Stewart Management Company Resident Status/Relocation ❑ Household income survey indicates that 31 units would need relocation assistance ❑ All relocated residents are eligible for 42 months of relocation assistance ❑ Professional relocation consultant — Overland, Pacific & Cutler Co. FINANCING PLAN Costs Building Purchase $7,846,250 Construction/Rehabilitation/Const. fees $2,314,671 Survey/Engineering $40,000 Financing Costs $459,931 Attorney Fees/Appraisal $63,000 Developer Fee & Costs $1,295,300 Reserves $212,982 Contingency $104,650 Relocation Costs/Misc. $1,245,379 TOTAL COSTS $13,582,163 Funding Sources Ca1HFA Permanent Financing $4,221,582 (low-interest first mortgage) County of Los Angeles $1,600,000 (residual receipts loan) Ca1HFA Housing Assistance Trust — HAT $700,000 (functions as a forgivable loan) 4% Low Income Housing Tax Credits $3,403,132 City/Redevelopment Agency Loan $2,749,586 (residual receipts loan) Seller Credit on Sale $100,000 Deferred Developer Fee $643,300 Ihcome from Operations $164,563 TOTAL FUNDING SOURCES $13,582,163 City Resources ❑ Centex developer funds available for this project - $670,331 ❑ Total RDA low/mod funds available (non -bond proceeds) - $2,148,350 S ms/grants/hud/consolid/afJ`ordablehousmg/Mercy/Overview Terms & Conditions Mercy Housing California/Hidaway Development 1. THE PROJECT: The project sponsor will be a California limited partnership of which an affiliate of Mercy Housing California will be the managing General Partner. At the point of selecting a tax credit investor, the tax credit investor will be the limited partner of the Limited Partnership. The partnership will acquire, rehabilitate, and record affordability covenants on the 67 -unit apartment community known as Hidaway Apartments located on Soledad Canyon Road at the southern end of Hidaway Avenue. The partnership will rehabilitate all of the units and common areas and make improvements and upgrades to the grounds, but will not alter the structure, physical design, or unit count of the property, which is comprised of one level of surface parking and a series of two (2) story buildings. There are currently fourteen (14) units that have affordability covenants. At the end of the phased rehabilitation process, fifty two (52) of the fifty three (53) remaining units will be converted from market rate to covenant -restricted affordable units. The one (1) remaining unit shall be set aside as a manager's unit. 14 existing affordable units + 52 market rate units converted to affordable units + 1 manager's unit = 67 total units 2. TERMS OF AFFORDABILITY COVENANTS: Sixty six (66) of the sixty seven (67) units will be deemed affordable via covenant restrictions for a period of fifty five (55) years. The one (1) unit that will not receive an affordability covenant will be reserved as a manager's unit. As outlined in the Allowable Rents section, the rent on the manager's unit shall be determined by Mercy Housing California. 3. ALLOWABLE RENTS: Because Agency funding is involved in this project, as well as other funding sources that have separate allowable rent schedules, allowable rents for this project will be determined by utilizing the following rent table: Type of Unit 4 Bg1R;;'3,BR POW Total Units 48 19 Lesser of RDA 50% or CALHFA 50% 10 4 Lesser of RDA 50% or TCAC 50% 13 3 Lesser of RDA 80% or TCAC 60% 24 12 Manager's Unit 1 4. AGENCY AND CITY FINANCIAL CONTRIBUTION: Santa Clarita Redevelopment Agency (Agency) and City financial support for this project will be capped at $2,749,586. Approximately $670,331 (24%) of this amount will come -from the City Affordable Housing Developer Fees, and approximately $2,079,255 (76%) of this amount will come from the Agency's Low/Mod Housing Fund. General project savings realized by the partnership, as outlined in the General Project Savings section may decrease this total amount, savings realized from lower than expected relocation costs as outlined in the Relocation Savings section, and the availability of Affordable Housing Program funds, as outlined in the Affordable Housing Program Savings section. The form of this financial support will come via a loan from the Agency to the partnership which will be secured by a 4th Trust Deed and from the City as a 5th Trust Deed from the Agency on the property being -acquired and rehabilitated by Mercy Housing California (Assessor's Parcel Number 2803-030-071). Repayment of this loan will equal the principal plus annually accrued simple interest of three percent (3%). The schedule of repayment, plus additional information relating to the Agency's recovery of their loan is outlined in Distribution of Residual Receipts section. The exact details of the sources of funds and methodologies of reimbursement shall be spelled out in the loan documents. 5. DISTRIBUTION OF RESIDUAL RECEIPTS: Residual receipts derived from this project shall be distributed to the various parties with a financial interest in this project. Residual Receipts shall be calculated after Mercy has received their Deferred Developer Fee ($643,300 of the total of $1,295,300 in developer fees deferred until such time that funds are available for Mercy to be repaid). CalHFA will receive 40% of the Residual Receipts realized annually, prior to any other distribution of Residual Receipts. After CalHFA has received their share of Residual Receipts, the County of Los Angeles, Agency, and City shall receive their share on a pro rata basis, based on their contribution to the project, as illustrated in the table below: County of Los Angeles $1,600,000 37% Redevelopment Agency $2,079,255 48% City of Santa Clarita $670,331 15% TOTAL $4,349,586 It is the responsibility of Mercy Housing California to ensure that the distribution of residual receipts payments to the Agency, City, CALHFA, and the County of Los Angeles is made as indicated above. 6. PARTNER ASSET MANAGEMENT FEE: In negotiations with the County, the County has stipulated that the Partner Asset Management Fee shall be capped at $15,000 in year one. In subsequent years, this amount shall be increased by maximum 3.5%. The Partner Asset Management Fee shall be a "cost" for purposes of calculating Residual Receipts. 7. GENERAL PROJECT SAVINGS: Any final net project savings shall be determined by subtracting the total development costs, including any required capitalized reserves, as shown on the cost audit prepared for the California Tax Credit Allocation Committee, from the sum of all permanent sources of funds, including all investor capital contributions. Net project savings shall be applied to additional project rehabilitation work and the Deferred Developer Fee and/or distributed to the City and/or other lenders as agreed upon by all the project lenders. 8. RELOCATION SAVINGS: Based on changing trends in the rental market and other varying factors directly related to calculating the total cost of relocation, it is somewhat difficult to determine the exact amount of these costs at this time. For this reason, the Agency/City is requiring a total relocation budget of $953,116 to ensure that adequate funds will be available for the project. The total amount of $953,116 will be contributed to the project from the Agency funds. These funds are specifically marked for relocation expenses only and shall be placed in a separate holding account. It is recognized that residents have twelve (12) months from' the date of notice that relocation will be required to file for relocation benefits and eighteen (18) months to file an appeal. After this time period has expired and all relocations have officially been closed, all funds remaining in the account from the total budget of $953,116 shall be returned to the Agency on a dollar for dollar basis. 9. AFFORDABLE HOUSING PROGRAM (AHP) SAVINGS: Late in the negotiation process, Mercy Housing California removed funding from the AHP from their list of funding so&ces due to the competitive nature of these funds. Mercy Housing California will be required to apply for these funds within 90 days of City/Agency approval. Should Mercy Housing California receive any AHP funds, then the total amount of those funds shall be reduced from the total amount of Agency and City assistance on a dollar for dollar basis and this amount shall be returned. The exact details and methodologies of reimbursement shall be described to the Agency/City in the loan documents. 10. RELOCATION PLAN: As required by the California Relocation Assistance Law (California Government code Section 7260 et seq) and the California Relocation Assistance Real Property Acquisition Guidelines (California Code of Regulations, Title 25 Chapter 6), public projects involving significant residential displacement require the preparation of a relocation plan subject to public review and the approval of the legislative body prior to the undertaking of any displacing activity. Mercy Housing California, or its designee, shall prepare the relocation plan for Agency review. 11. ANNUAL INSPECTIONS: The Agency and City shall reserve the right to inspect the grounds, residential buildings, and other facilities of this project on a yearly basis. This monitoring program shall begin within twelve (12) months of project stabilization. The purpose of these inspections shall focus on building and facility maintenance, landscaping and other external appearance components, as well as items relating directly to health and safety enforcement. Upon completion of the inspection, the Agency/City shall prepare a written report and provide copies to Mercy Housing California. The report will outline in detail any violations or maintenance that requires immediate attention. Mercy Housing California shall have thirty (30) days to respond in writing to the items outlined in the Agency/City report. If no response from Mercy Housing California is received by the Agency/City within thirty (30) days, then it shall be determined that every item outlined in the Agency/City report shall be remediated within sixty (60) days after the original thirty (30) day period to respond in writing to the original report has expired. If after ninety (90) days from the date of the Agency/City report and remediation efforts have not been completed to the satisfaction of the Agency, then the Agency/City shall have a variety of tools at its disposal to address the problems outlined in the report, including the removal of the management company and new management appointed with joint consent from Mercy Housing California. 12. AFFORDABILITY MONITORING: The Agency/City shall retain the right to request and have the authority to review all relevant documents pertaining to maintaining the affordability of the project. These documents shall include but not be limited to income certification documents, the waiting list for units, the current rent roll, and any other documentation provided to other funding sources for purposes of verify the ongoing affordability of the project. The City and Agency are not asking for a separate report, only to furnish to the Agency/City any copies of reports provided to other funding sources. 13. AFFORDABILITY COMPLIANCE: When initially renting the units to new tenants, Mercy Housing California will verify that all tenants are eligible and meet all affordability requirements before entering into a lease agreement. Furthermore, before extending any lease with any existing tenants in the future, Mercy Housing California will recertify that the tenant still meets all affordability requirements. 'If the tenant no longer meets the affordability requirements, then Mercy Housing California shall not extend the lease and the lease shall effectively terminate at the end of the lease period. In order to enforce the ongoing affordability of this project, the Agency/City shall retain all rights afforded to them including but not limited to accelerating the City and/or Agency loan. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA APPROVING THE USE OF AFFORDABLE HOUSING DEVELOPER FEES FOR THE ACQUISITION AND REHABILITATION OF HIDAWAY APARTMENTS AT 27077 HIDAWAY AVENUE, SANTA CLARITA SECTION 1. RECITALS WHEREAS, Mercy Housing California (the "Sponsor") wishes to acquire and rehabilitate the apartment building known as the Hidaway Apartments, located at 27077 Hidaway Avenue, Santa Clarita (the "Property") and record, an affordability covenant to provide 66 units of family affordable housing; and WHEREAS, the City finds that there is a need for affordable family housing within the City of Santa Clarita; and WHEREAS, the City further finds that the Property as it currently exists is blighted due to its deteriorated condition—which deteriorated condition predates the acquisition of the Property by the Sponsor; and WHEREAS, Sponsor has explored the possibility of conventional financing for the renovation, and has determined that only limited financing would be available due to the limited income which would be generated from rental revenue if the Property was operated as an affordable family project; and ' WHEREAS, after exploring all other public funding options, Sponsor has determined that additional funds are need to complete the acquisition and rehabilitation of the Property; and WHEREAS, the City has received Affordable Housing Developer fees as a result of another market -rate development, which fees must committed to an affordable housing project by August 2009; and WHEREAS, the Affordable Housing Developer fees will be used to provide a below-market rate loan to the Sponsor for the creation of affordable housing in which occupancy of more than 40% of the units will be restricted to families earning not more than 80% of Area Median Income; and WHEREAS, the City wishes to assist in the acquisition and renovation in exchange for operation of the Property as an affordable family project for not less than 55 years. NOW THEREFORE, THE SANTA CLARITA CITY COUNCIL DOES HEREBY RESOLVE AS FOLLOWS: SECTION 2. Based upon the recitals herein, the staff report, the written materials and proposed Terms and Condition presented with the staff report, and information presented orally to the City Council, the City Council does hereby determine, pursuant to Health and Safety Code Section 33334.2(g), that the use of Agency low/mod set-aside funds outside of the Project Area, as contemplated by the acquisition and rehabilitation of the Property is of benefit to the Redevelopment Agency Project Area by virtue of the creation of affordable housing and the elimination of a blighted property within the City of Santa Clarita. Renovation of the Property will increase the City's overall stock of affordable housing SECTION 3. The City Council further finds, pursuant to Health and Safety Code Section 33334.30) that the Sponsor has made good faith efforts to obtain private or commercial financing for purposes of acquiring and renovating the Property, but is unable to obtain such financing to maintain the level of affordability'and quantity of units contemplated herein. SECTION 4. The City Council finds that pursuant to Labor Code 1720 (c)(6)(E) that the funds will be used to provide a below-market rate loan to create housing in which more than 40% of the units are available to families earning at or below 80% of Area Median Income. SECTION 5. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED this day of 11: ATTEST: CITY CLERK 2 MAYOR STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA) I, Sharon L. Dawson, MMC, City Clerk of the City_ of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the day of , 2008, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: ' COUNCILMEMBERS: CITY CLERK STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) CERTIFICATION OF CITY COUNCIL RESOLUTION I, Sharon L. Dawson, City Clerk of the City of Santa Clarita, do hereby certify that this is a true and correct copy of the original Resolution 08- , adopted by the City Council of the City of Santa Clarita, California on 1 , 2008, which is now on file in my office. Witness my hand and seal of the City of Santa Clarita, California, this day of 12008. Sharon L. Dawson, MMC City Clerk By Susan Caputo, CMC Deputy City Clerk 0 RESOLUTION NO. A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SANTA CLARITA APPROVING THE USE OF AGENCY LOW/MOD FUNDS FOR THE ACQUISITION AND REHABILITATION OF HIDAWAY APARTMENTS AT 27077 HIDAWAY AVENUE, SANTA CLARITA SECTION 1. RECITALS WHEREAS, Mercy Housing California (the "Sponsor") wishes to acquire and rehabilitate the apartment building known as the Hidaway Apartments, located at 27077 Hidaway Avenue, Santa Clarita (the "Property") and record an affordability covenant to provide 66 units of family affordable housing; and WHEREAS, the Agency finds that there is a need for affordable family housing within the City of Santa Clarita; and WHEREAS, the Agency further finds that the Property as it currently exists is blighted due to its deteriorated condition—which deteriorated condition predates the acquisition of the Property by the Sponsor; and WHEREAS, Sponsor has explored the possibility of conventional financing for the renovation, and has determined that only limited financing would be available due to the limited income which would be generated from rental revenue if the Property was operated as an affordable family project; and WHEREAS, after exploring all other public funding options, Sponsor has determined that additional, funds are need to complete the acquisition and rehabilitation of the Property; and WHEREAS, the Agency wishes to assist in the acquisition and renovation in exchange for operation of the Property as an affordable family project for not less than 55 years. NOW THEREFORE, THE SANTA CLARITA REDEVELOPMENT AGENCY BOARD DOES HEREBY RESOLVE AS FOLLOWS: SECTION 2. Based upon the recitals herein, the staff report, the written materials and proposed Terms and Conditions presented with the staff report, and information presented orally to the Agency Board, the Agency Board does hereby determine, pursuant to Health and Safety Code Section 33334.2(g), that the use of Agency low/mod set-aside funds outside of the Project Area, as contemplated by the acquisition and rehabilitation of the Property is of benefit to the Project Area by virtue of the creation of affordable housing and the elimination of a blighted property within the City of Santa Clarita. Renovation of the Property will increase the City's overall stock of affordable housing SECTION 3. The Agency Board further finds, pursuant to Health and Safety Code Section 33334.30) that the Sponsor has made good faith efforts to obtain private or commercial financing for purposes of acquiring and renovating the Property, but is unable to obtain such financing to maintain the level of affordability and quantity of units contemplated herein. SECTION 4. The Secretary shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED this day of 11: ATTEST: SECRETARY 2 CHAIR STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA) I, Sharon L. Dawson, MMC, Secretary of the Santa Clarita Redevelopment Agency, do hereby certify that the foregoing Resolution was duly adopted by the Santa Clarita Redevelopment Agency at a regular meeting thereof, held on the day of , 2008, by the following vote: AYES: AGENCYMEMBERS: NOES: AGENCYMEMBERS: ABSENT: AGENCYMEMBERS: SECRETARY 3 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) CERTIFICATION OF CITY COUNCIL RESOLUTION I, Sharon L. Dawson, City Clerk of the City of Santa Clarita, do hereby certify that this is a true and correct copy of the original Resolution 08- adopted by the City Council of the City of Santa Clarita, California on , 2008, which is now on file in my office. Witness my hand and seal of the City of Santa Clarita, California, this day of 52008. Sharon L. Dawson, MMC City Clerk By Susan Caputo, CMC Deputy City Clerk 4 0