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CC SR 20181016 02 - PB Deed Restriction Covenant Agreement01203.0001/507564.1 RANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 10/16/2018 AGENDA REPORT AGENDA HEADING: Regular Business AGENDA DESCRIPTION: Consideration and possible action to approve the recordation of a Use Covenant and Restriction Running with the Land (i.e. deed restriction) on certain open space properties within the Palos Verdes Nature Preserve that were fully or partially acquired utilizing Proposition A (AKA Measure A) grant funds, as required by the Los Angeles County Regional Park and Open Space District RECOMMENDED COUNCIL ACTION: (1) Authorize the Mayor and the City Clerk to execute the Use Covenant and Restriction Running with the Land for open space properties within the Palos Verdes Nature Preserve that were fully or partially acquired utilizing the Proposition A (AKA Measure A) Grant Funds. FISCAL IMPACT: There is no fiscal impact associated with the recordation of the deed restriction. Upon recordation of the deed restriction, the County will close out the grant and the City would receive the remaining grant retention of $5,000. Amount Budgeted: $0 Additional Appropriation: None Account Number(s): None ORIGINATED BY: Lauren Ramezani, Senior Administrative Analyst REVIEWED BY: Elias Sassoon, Director of Public Works APPROVED BY: Doug Willmore, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Section of 1996 Proposition A (AKA Measure A) Bond, Providing for Allocation of $4,000,000 to the City in Grant Funds (page A-1) B. Sections of Proposition A and Grant Agreement Related to Public Access, Facility Usage, Nondiscrimination (page B-1) C. Map of 17-acre Donation (Hon) Property (page C-1) D. Map of 29-acre Donation Filiorum (York) Property (page D-1) E. List of Five Properties and all Grant Funding Sources (page E-1) F. Use Covenant and Restriction Running with the Land for PB Open Space properties, with the exception of two donation parcels (page F-1) 1 01203.0001/507564.1 EXECUTIVE SUMMARY: Approval and recordation of the attached proposed “Use Covenant and Restriction Running with the Land” (the “Covenant Agreement”) (Attachment F) would impose a deed restriction on title to the Palos Verdes Nature Preserve properties that were acquired, wholly or partially, utilizing certain grant funds, requiring the properties to be used and maintained as open space. Doing so would fulfill the City’s legal obligations pursuant to the underlying grant and would thereby allow for the grant to be “closed out” by the entity that issued it, the Los Angeles County Regional Park and Open Space District (“District”). This would enable the City to retain approximately $4,000,000 in grant funds previously received, and receive the remaining grant retention of $5,000 from the District. This report details the acquired properties and the necessary deed restrictions. BACKGROUND AND DISCUSSION: Grant Overview ($4,000,000): The County’s 1996 Proposition A (also known as “Measure A,” and hereinafter referred to as “Prop A”) earmarked $4,000,000 in available grant funding intended to facilitate the City’s acquisition of certain land located in the City for preservation as open space for habitat and wildlife conservation (Attachment A). In 2001, the District granted the $4,000,000 (“Grant Funds”) to the City pursuant to Prop A. As intended, the funds were used by the City to acquire the 3 Sisters Property (“3 Sisters”), formerly known as the Barkentine property. As a condition of receiving the Grant Funds, the City was required to execute a contract (the “Grant Agreement”) whereby it agreed to certain restrictions upon the use of the acquired land. Specifically, among other things, the City agreed: (1) to use the property acquired using Grant Funds only for the purpose for which it requested the Grant (i.e., open space), and not to permit any other use of the area; (2) to maintain and operate the property subject to the provisions of Prop A; and (3) to provide for reasonable public access to the property, except where that access may interfere with resource protection. The Grant Agreement does not expressly require that the properties acquired with Grant Funds be encumbered by a recorded deed restriction such as the Covenant Agreement. However, recordation of such a deed restriction is the only practical way to impose the restrictions, and was likely intended by the 1996 Proposition A and the Grant Agreement although not expressly stated. Thus, while the City may have a legal argument that recordation of the proposed covenant agreement is not required in this instance, recordation of such deed restrictions is a uniform practice for all grants received under 1996 Proposition A, and the District likely will not agree to close out the Grant, and allow the City to retain the grant funds unless and until the covenant agreement is approved and recorded. Acquired Properties: In 2001, the City used $3,844,087 of the $4,000,000 in Grant Funds to acquire the 3 Sisters Property, a 98-acre undeveloped open space parcel. Additionally, through the 1992 and 1996 Bond Acts, the City began accumulating 2 01203.0001/507564.1 maintenance and servicing funds (“Maintenance Funds”) for any Prop A-funded acquisitions and/or projects. These Maintenance Funds help offset the City’s expenditures related to the acquired properties and/or projects. Subsequently, the City Council approved the use of the remaining $155,913 of Grant Funds to offset the acquisition and related administration costs (such as survey, legal, environmental and/or appraisal fees) related to four (4) other open space properties in the City: Portuguese Bend Reserve, Filiorum Reserve, and Malaga Canyon North and Malaga Canyon South (collectively the “Additional Properties”). The remaining grant funds of $155,913 were spread among the Additional Properties to assure that all of the properties could be eligible for Maintenance Funds. This has helped offset some of the City’s General Fund expenditures related to open space maintenance (Attachment E). The Additional Properties have been enrolled in the City’s Palos Verdes Nature Preserve. The property acquisitions, which spanned 15 years, involved five properties from different buyers. However, the District has informed staff that it considers all five (5) properties (the 3 Sisters Property and the Additional Properties) to be subject to the Grant, such that it will not close out the Grant unless all the properties that received Grant Funds are made subject to the aforementioned restrictions. The Grant Funds were used as follows: Preservation Properties Acquired with Grant Funds Grant Funds City Council Review/Approved Acquisition Date(s) Year Acquired 3 Sisters (former Barkentine Property) $3,844,087 February 2001 Aug. 2001 Portuguese Bend Reserve (former Hon Property) $ 140,000 July 2005 and October 2005 Dec. 2005 Filiorum (former York/Upper Filiorum Property) $ 10,913 September 2009 Dec. 2009 Malaga Canyon North (former Angeles Property) $ 2,500* September, November and December 2013 Feb. 2014 Malaga Canyon South (former May Property) $ 2,500* September, November and December 2013 Feb. 2014 Grant Total $4,000,000 *No payment has been received to-date. This amount is held by the District as grant retention and will be released when Council approves the attached deed restriction document for recordation. Grant Closeout: Staff has been working closely with District staff to close out the Grant Agreement. However, during a visit and informal audit by the District staff of the City’s Grant files, it was determined that the earlier acquisitions were missing recorded deed 3 01203.0001/507564.1 restrictions and, therefore, contrary to previous understanding, the requirements of the Grant Agreement had not been satisfied and the Grant could not be closed out. The District and the City Attorney’s Office have mutually agreed that the form of the use restriction shall be that of the Covenant Agreement (Attachment F). The City Council’s approval of the Covenant Agreement would enable Staff to close out the City’s obligations under the Grant Agreement. NCCP and Conservation Deed Restrictions: The aforementioned open space acquisitions were approved by the City Council for the purpose of open space preservation and are part of the City’s 1,400-acre Palos Verdes Nature Preserve (“Preserve”). As such, they are also subject to the City’s Natural Communities Conservation Plan/Habitat Conservation Plan (“NCCP/HCP”). Four (4) of the five (5) properties listed above already have been made subject to recorded deed restrictions by other agencies that have encumbered these properties with conservation restrictions, thereby limiting the use of the properties. These deed restrictions were imposed for open space, public access and habitat protection purposes by the various federal, state and local agencies that provided the bulk of the funds used for the acquisitions thereof. 3 Sisters is the only parcel that currently is not subject to any deed restriction, but since it is part of the Preserve, it will eventually have a conservation easement placed upon it once the final NCCP/HCP is adopted by the City Council, which is anticipated to occur in Spring 2019. 3 Sisters was acquired with 100% Grant Funds and the District, therefore, requires the Covenant Agreement be recorded against it. Prior City Council Discussions and Concerns: Approval of prior versions of the Covenant Agreement has previously been presented to the City Council. However, City Council raised some concerns, and directed Staff to take the following actions to address them before returning to the City Council: A) Donation Properties/Parcels: At the September 1, 2015, City Council meeting, a question arose regarding the public donations involved in the Portuguese Bend Reserve (Hon) property acquisition. The City Council directed Staff to investigate the donated acreage, obtain clarification and report back. The Community Development Department provided the following information regarding the property: • In 2004, the City Council approved the City’s Draft NCCP/HCP. The Wildlife Agencies agreed that one of the last steps in finalizing the NCCP/HCP would be to record updated Conservation Easements on all of the Preserve properties. The proposed Preserve design excluded an approximately 25- acre “Active Recreation Area” from the Preserve. • In 2005, the City acquired the 424-acre Portuguese Bend property from Barry Hon, including the site of the 25-acre “Active Recreation Area”. Because the “Active Recreation Area” identified in the NCCP/HCP was part of the Portuguese Bend parcel, it became necessary to define and separate 4 01203.0001/507564.1 the area from the rest of the Preserve for Palos Verdes Peninsula Land Conservancy (PVPLC) management purposes. • The “Active Recreation Area” later became known as “Gateway Park” and was reduced in size to 17 acres in 2014. The 17-acre area is no longer referred to as “Gateway Park” as it is now simply City-owned open space, similar to the City’s Archery Range property on the south side of Palos Verdes Drive South. In January 2017, the City commissioned a surveyor to prepare a legal description of the land encompassing the Portuguese Bend Reserve, less the 17 acres of the former “Active Recreation Area”, which will be subject to the deed restriction and the NCCP/HCP conservation easement (Attachment C). During the investigation process, Staff also identified that the 29.4-acre parcel known as the Filiorum Reserve, donated to the City for the Preserve by Jim York, would be encumbered with the NCCP/HCP-required conservation easement. (Attachment D). Thus, the City’s surveyor prepared an exhibit identifying the property boundaries of this donation parcel as well. As directed by the City Council, and with the assistance of the surveyor, Staff has been able to exclude both of the aforementioned donation parcels from the attached draft Covenant Agreement. However, since the properties are part of the Preserve (Filiorum and Portuguese Bend reserves), conservation easements will be recorded as described above. B) Open Space Parking and Neighborhood Impact Issues: The City Council directed Staff to investigate whether the Grant Agreement contained provisions regarding parking and fees, operating hours/days, charging entrance fees to the preserve, etc. (Attachment B). Staff has received the following clarifications: ● Public Access/Operating Hours: Section 13 of Prop A requires “reasonable public access” to lands acquired with Grant Funds “except where that access may interfere with resource protection.” There is no specific number of hours or days that the Preserve must remain open to the public, and therefore closing the Preserve at night for security purposes likely does not violate the “reasonable public access requirement.” Additionally, closing a portion of the Preserve on certain days or times for purposes such as habitat restoration and maintenance is acceptable, as long as the City allows “reasonable public access” when that access does not interfere with resource protection. • Preferential Treatment: Section 10(c) of Prop A requires that properties acquired with Grant Funds be: “open and accessible to the public without discrimination as to race, color, sex, physical or medical handicap . . . or place of residence, to the extent consistent with Section 13. The recipient shall not discriminate against or grant preferential treatment to, any person or organization seeking to use such facility based upon the place of residence of such person or the members of such organization.” This means that City residents should be treated equally to non- 5 01203.0001/507564.1 residents, and cannot be accorded preferential treatment regarding entry fees, entry hours, or parking fees. • Parking/Public Restrooms: There is no specific number of required parking spots or public restrooms, or geographic radius of the parking areas or restrooms stipulated in the agreement or Section 13 of Prop A. The City could charge a parking fee, but it would have to be the same fee for everyone (i.e., no discounts or waivers to residents versus non-residents). It also is acceptable to provide public parking at another park (e.g., Hesse Park or City Hall) and then shuttle the public to Preserve areas. The shuttle could be free or could have a charge. However, any shuttle fee would have to be the same for both City residents and non-residents. • Entry Fees: There is no restriction on charging a fee to enter the acquired properties in the Preserve areas. However, if there is an entrance charge, the amount has to be the same for everyone (i.e., no discounts or waivers to residents as opposed to non-residents). C) Portuguese Bend Landslide/Land Flow Mitigation Efforts: The City has embarked upon Portuguese Bend land flow mitigation efforts and is pursuing options and a course of action(s) to reduce the land movement in that area. During the May 16, 2017, City Council meeting, a Council Member expressed concern that the deed restriction may have stipulations that could delay or restrict the City’s current or future planned mitigation activities or projects. To address this concern, the City Attorney’s office drafted a provision that is now included in the Covenant Agreement (Attachment F, Section 4). The District’s legal counsel reviewed and approved of the provision. The Public Works Department has also reviewed the provision and feels that it adequately addresses the above-referenced concern. RECOMMENDATION: Based on the foregoing, Staff recommends that the City Council authorize the Mayor to execute the attached Covenant Agreement for recordation with Los Angeles County Recorder’s Office. Doing so will enable the Grant to be “closed out,” satisfying a legal obligation of the City that has existed since 2001, and will enable the City to retain approximately $4,000,000 in grant funds, and to receive the outstanding Grant retention of $5,000. ALTERNATIVES: In addition to the Staff recommendation, the following alternative actions are available for the City Council’s consideration: 1. Do not approve the Covenant Agreement, and either: (i) return $4,000,000 to the District to satisfy the legal obligation; (ii) direct the City Attorney’s office to dispute the legal obligation with the District based on the lack of an express requirement for recordation of the deed restriction in the Grant Agreement; or (iii) do nothing and acquiesce to being subject to an 6 01203.0001/507564.1 ongoing legal obligation to approve the Covenant Agreement in the future. Staff does not recommend these alternatives, particularly as it pertains to 3 Sisters, as the Grant was specifically intended for its acquisition, and $3,844,087 was used for that purpose. Additionally, since recordation of the Covenant Agreement does not have any real adverse impact on the City, it is not worthwhile to dispute the legal obligation. 2. Approve the Covenant Agreement for all properties other than the two (2) Malaga Canyon properties, since no Grant Funds have been received to date with respect to those two (2) properties. Direct Staff to request closeout of the Grant, remove the Malaga Canyon legal descriptions from the attached Covenant Agreement, and forego the remaining $5,000 in Grant Funds. Staff does not recommend this alternative, as the Malaga Canyon properties are already subject to other recorded deed restrictions, so this Covenant Agreement is simply another layer of similar restrictions. 3. Approve the Covenant Agreement for only 3 Sisters, the acquisition of which was funded entirely with Grant Funds (unlike the Additional Properties) at a price of $3,844,087. By excluding the Additional Properties, the City would be obligated to return only $150,913 in Grant Funds: $10,913 for the Filiorum Property, and $140,000 for the Portuguese Bend Reserve property. Direct Staff to remove the legal descriptions of the Additional Properties from the attached Covenant Agreement and request closeout of the Grant. Staff does not recommend this alternative. The Additional Properties already are subject to recorded deed restrictions required by other grant agencies, so this Covenant Agreement is simply another layer of similar restrictions. 4. Take other action as deemed appropriate by the City Council. 7 B-1 B-2 B-3 B-4 B-5 Map of Hon Property (with Donation Parcel Outlined Within) C-1 C-1 Enlarged Map of Donation Parcel C-2 C-2 C-3 C-4 C-5 List of Five Acquired Properties and Funding Sources W:\LAUREN\STAFFRPT\GRANTS\measureA\2018\PB Acquisition\Attach E list of parcels and grants for SR 2018 r.docx 10/8/2018 1) 3 Sisters: Funding Sources Amount Proposition A (Measure A) $ 3,844,087 City General Funds $ 43,067 Total Project Costs: $ 3,887,154 2) Portuguese Bend: Funding Sources Amount Palos Verdes Peninsula Land Conservancy $ 3,774,801 Ca Dept. of Parks and Recreation – Proposition 12-RZH Grant $ 130,878 Ca Dept. of Parks and Recreation – Proposition 40-RZH Grant $ 85,209 Ca Dept. of Parks and Recreation – Proposition 12-Per Capita $ 47,970 Ca Dept. of Parks and Recreation – Proposition 40-Per Capita $ 220,000 Ca Dept. of Parks and Recreation – Proposition 40-Per Capita (Via PVPLC) $ 5,199 LA County Grant Excess Funds - (Via PVP Land Conservancy) $ 1,000,000 Wildlife Conservation Board (WCB) $10,000,000 Cal State Dominguez Hills $ 120,000 CA Coastal Conservancy $ 1,550,000 Proposition A (Measure A) $ 140,000 Total Project Costs: $17,074.057 3) Filiorum: Funding Sources Amount CA Coastal Conservancy $5,500,000 Ca Dept. of Parks and Recreation - Proposition 40-Per Capita $ 220,000 Private donations (via PVP Land Conservancy) $ 400,000 Proposition A (Measure A) $ 10,913 City –CIP Reserve $ 375,454 Total Project Costs: $6,506,367 E-1 List of Five Acquired Properties and Funding Sources W:\LAUREN\STAFFRPT\GRANTS\measureA\2018\PB Acquisition\Attach E list of parcels and grants for SR 2018 r.docx 10/8/2018 4) Malaga Canyon North: Funding Sources Amount Ca Wildlife Conservation Board (WCB) $ 330,555 US Fish and Wildlife Service (USFWS) $ 329,750 Total Project Costs: $ 660,305 Proposition A (Measure A) *Amount held as Retention $ 2,500* 5) Malaga Canyon South: Funding Sources Amount Ca Wildlife Conservation Board (WCB) $ 228,075 US Fish and Wildlife Service (USFWS) $ 227,500 Total Project Costs: $ 455,575 Proposition A (Measure A) *Amount held as Retention $ 2,500* E-2 01203.0001/458945.5 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Los Angeles County Regional Park and Open Space District 1000 S. Fremont Ave., Unit #40 Building A-9 East, Ground Floor Alhambra, CA 91803 Attention: Administration Section WITH A COPY TO: City of Rancho Palos Verdes 30940 Hawthorne Boulevard Rancho Palos Verdes, CA 90275 Attention: City Clerk SPACE ABOVE FOR RECORDER’S USE ONLY] SPACE ABOVE FOR RECORDER’S USE ONLY] Exempt from filing/recording fees per Govt. Code §27383 USE COVENANT AND RESTRICTION RUNNING WITH THE LAND Use Covenant Agreement F-1 01203.0001/458945.5 - 1 - RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: Los Angeles County Regional Park and Open Space District 1000 S. Fremont Ave., Unit #40 Building A-9 East, Ground Floor Alhambra, CA 91803 Attention: Administration Section WITH A COPY TO: City of Rancho Palos Verdes 30940 Hawthorne Boulevard Rancho Palos Verdes, CA 90275 Attention: City Clerk ___________________________________________________________________ SPACE ABOVE FOR RECORDER’S USE ONLY] Exempt from filing/recording fees per Govt. Code §27383 USE COVENANT AND RESTRICTION RUNNING WITH THE LAND This Use Covenant and Restriction Running with the Land (“Covenant Agreement”) is made this ____ day of ___________, 2018 (“Agreement Date”) by and between the City of Rancho Palos Verdes, a municipal corporation (“City”) and the Los Angeles County Regional Park and Open Space District, a public agency of the County of Los Angeles created and existing under the authority of Section s 5506.9 et seq. of the California Public Resources Code (“District”). RECITALS: A. City owns that certain real property located in the City of Rancho Palos Verdes, County of Los Angeles, State of California, as summarized in Exhibit A attached hereto and incorporated herein by reference, and as legally described in Exhibits A-1 through A-5 attached hereto and incorporated herein by reference (“Preservation Properties”). B. The Preservation Properties are located on an active landslide that causes constant land movement. Homes and minor and major roads are located on the landslide. The land movement affects the surfaces of improvements located on the Preservation Properties, requiring frequent repair work. C. The City is in the process of conducting a landslide mitigation feasibility study. The City intends to implement, where and if possible, remediation measures to reduce or slow down the landslide movement. Such future activities include but are not limited to the use of equipment, drilling, testing, and the installation of devices to gather and divert water. Use Covenant Agreement F-2 01203.0001/458945.5 - 2 - D. In February 2001, City applied to District for grant funds available pursuant to the Los Angeles County Safe Neighborhood Parks Proposition of 1996 approved by the voters on November 5, 1996 (“1996 Proposition A”). E. On April 17, 2001, District awarded Grant No. 58H4-01-1284 to the City, pursuant to Section 3(c)(2)(SS) of 1996 Proposition A, in the amount of Four Million Dollars ($4,000,000) for the acquisition of approximately ninety-eight (98) acres of land constituting the Preservation Properties (“Grant”) for open space purposes. The Grant was amended a number of times, including being extended through 2017 by Project Agreement V-16 dated March 1, 2017 between the City and District (“Grant Agreement”). The Grant Agreement is incorporated herein by reference, and a copy is available upon request at both the City’s offices and the District’s offices. F. As a condition for providing grant funds, 1996 Proposition A requires certain restrictions be imposed on the Preservation Properties pursuant to this Covenant Agreement. But for the imposition of the restrictions in this Covenant Agreement, the Grant would not be consistent with the public purposes of 1996 Proposition A, and the Grant funds would not have been granted. G. City has elected to enter into this Covenant Agreement consistent with its obligations under the Grant Agreement and to be able to receive the Grant and acquire the Preservation Properties. NOW, THEREFORE, in inconsideration of the award of the Grant by District, City irrevocably covenants with District to use the Preservation Properties in compliance with the terms of this Covenant Agreement, which shall constitute covenants, conditions, and restrictions which shall run with the land. 1. GRANT. City has and shall use the Grant funds to acquire the Preservation Properties in accordance with the Grant Agreement. 2. USE. City covenants and agrees to use and maintain the Preservation Properties solely as open space in accordance with the Grant Agreement for the period specified in Section 3. 3. DURATION. This Covenant Agreement shall remain in full force and effect and shall bind City, its assigns, and successors-in-interest in perpetuity except as otherwise provided by 1996 Proposition A and the Grant Agreement. 4. REMEDIATION. Nothing in this Covenant Agreement shall restrict City from the use of any remediation activities to remediate or slow down any natural disaster, land movement, or any natural event that requires the use of remediation activities, which include but are not limited to the use of equipment, drilling, testing, and the installation of devices to gather and divert water. Prior to each remediation project, City shall provide District with written information consisting of the timeframe, acreage, and map location of the remediation project. The project shall not begin without permission from District, and such permission shall not be unreasonably withheld, conditioned or delayed. If District does not respond to City within ten (10) Use Covenant Agreement F-3 01203.0001/458945.5 - 3 - days of submission of the written information specified in this section, District’s permission shall be deemed granted and the City may begin the remediation project without further delay. Notwithstanding the foregoing, no permission from District shall be required for remediation projects necessitated by natural disasters (e.g., fire, flood, earthquake, landslide, etc.) or for other immediate health and safety purposes. 5. TAXES AND ASSESSMENTS. This Covenant Agreement is irrevocable and shall constitute an enforceable restriction within the meaning of: (a) Article XIII, Section 8 of the California Constitution; and (b) Section 402(i) of the California Revenue and Taxation Code or successor statute. Furthermore, this Covenant Agreement shall be deemed to constitute a servitude upon and burden to the Preservation Properties within the meaning of Section 3712(d) of the California Revenue and Taxation Code, or successor statute, which survives a sale of tax-deeded property. 6. RIGHT OF ENTRY. Employees or agents of District may enter onto the Property at reasonable times after written notice to City to ascertain compliance with this Covenant Agreement. 7. REMEDIES. Any act, conveyance, contract, or authorization by City whether written or oral which uses or would cause to be used or would permit use of the Preservation Properties contrary to the terms of this Covenant Agreement will be deemed a violation and a breach of this Covenant Agreement. District may pursue any and all available legal and/or equitable remedies to enforce the terms and conditions of this Covenant Agreement. In the event of a breach, any forbearance on the part of District to enforce the terms and provisions hereof shall not be deemed a waiver of enforcement rights regarding any subsequent breach. 8. NOTICE. Any notice, demand, request, consent, approval or communication that either City or District gives pursuant to this Covenant Agreement shall be in writing and either served personally or sent by prepaid, first-class mail, in the case of the City, to the Director of Public Works (with his/her name and City title), City of Rancho Palos Verdes, 30940 Hawthorne Blvd., Rancho Palos Verdes, CA 90275, and in the case of District, to Director of Parks, Los Angeles County Regional Park and Open Space District, 1000 S. Fremont Ave., Unit #40, Building A -9 East, Ground Floor, Alhambra, CA 91803. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or seventy-two (72) hours from the time of mailing if mailed as provided in this section. 9. SEVERABILITY. If any covenant in this Covenant Agreement is held to be invalid, or for any reason becomes unenforceable, no other provision shall be affected or impaired. 10. INTERPRETATION; GOVERNING LAW. This Covenant Agreement shall be construed according to its fair meaning and as if prepared by both parties. This Use Covenant Agreement F-4 01203.0001/458945.5 - 4 - Covenant Agreement shall be construed in accordance with the laws of the State of California in effect at the time of the Agreement Date. [signatures on following page] Use Covenant Agreement F-5 01203.0001/458945.5 - 5 - IN WITNESS WHEREOF, the parties have caused this Covenant Agreement to be executed on their behalf by their officers as of the Agreement Date. DISTRICT: CITY: LOS ANGELES COUNTY REGIONAL PARK AND OPEN SPACE DISTRICT, a public agency of the County of Los Angeles By: _____________________________ Director of Parks CITY OF RANCHO PALOS VERDES, a municipal corporation By: _______________________________ City Manager ATTEST: ______________________________ City Clerk APPROVED AS TO FORM: ALESHIRE & WYNDER, LLP By: ________________________ City Attorney Use Covenant Agreement F-6 01203.0001/458945.5 - 6 - A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) ) ss. COUNTY OF LOS ANGELES ) On _________________, 2018, before me, ___________________________, a notary public, personally appeared _____________________________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. _________________________________________ Notary Public SEAL: Use Covenant Agreement F-7 01203.0001/458945.5 - 7 - A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) ) ss. COUNTY OF LOS ANGELES ) On _________________, 2018, before me, ___________________________, a notary public, personally appeared _____________________________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. _________________________________________ Notary Public SEAL: Use Covenant Agreement F-8 01203.0001/458945.5 EXHIBIT A Legal Descriptions of Preservation Properties Summary: Preservation Properties Legal Description Proposition A Funds Used Year Acquired 3 Sisters (former Barkentine Property) Exhibit A-1 $3,844,087 Aug. 2001 Portuguese Bend Preserve (former Hon Property) Exhibit A-2 $ 140,000 Dec. 2005 Filiorum (former York Property) Exhibit A-3 $ 10,913 Dec. 2009 Malaga Canyon North (former Angeles Property) Exhibit A-4 $ 2,500 Feb. 2014 Malaga Canyon South (former May Property) Exhibit A-5 $ 2,500 Feb. 2014 Grant Total $4,000,000 Use Covenant Agreement F-9 01203.0001/458945.5 EXHIBIT A-1 Legal Description 3 Sisters (former Barkentine Property) Original APN#: 7581-023-021 Revised APN #:7581-023-900 Original APN#: 7573-003-017 Revised APN#: 7573-003-900 Use Covenant Agreement F-10 01203.0001/458945.5 Use Covenant Agreement F-11 01203.0001/458945.5 Use Covenant Agreement F-12 01203.0001/458945.5 EXHIBIT A-2 Legal Description Portuguese Bend Reserve (former Hon Property)1 Original APN#: 7564-005-001 Revised APN #:7564-001-900 Original APN#: 7572-001-001 Revised APN #:7572-001-900 (portion) Original APN#: 7572-001-002 Revised APN#: 7572-001-901 Original APN#: 7572-001-003 Revised APN#: 7572-001-902 Original APN: 7572-001-004 Revised APN#: 7572-001-903 Original APN: 7572-001-006 Revised APN#: 7572-001-904 Original APN: 7572-001-007 Revised APN#: 7572-001-905 (portion) Original APN: 7581-023-011 Revised APN#: 7581-023-901 1 Property does not include Agua Amarga Canyon and donated parcels. Use Covenant Agreement F-13 01203.0001/458945.5 Property Description of Portuguese Bend Reserve (with the Exception of the Donation Parcel) That Real Property in the City of Rancho Palos Verdes, County of Los Angeles, State of California, more particularly described as follows: Those portions of Parcels 72, 73, 74, 88, 89 and 90 of Los Angeles County Assessor’s Map No. 51, in the City of Rancho Palos Verdes, as per map Recorded in Book 1 Page 1 of Assessor’s Maps, in the Office of the County Recorder of said County, also being a portion of Parcel 1 in Document No. 05-3157966 recorded December 22, 2005 Los Angeles County Records more particularly described as follows: Beginning at the intersection of the northerly line of Palos Verdes Drive South, 80 feet wide, as shown on said map, with the westerly boundary line of Tract 22835, in said city, as per map recorded in Book 603 Pages 62 to 65 inclusive of Maps, in the Office of the County Recorder of said County; Thence northerly, northwesterly along the westerly and southwesterly lines of Lots 1, 29, 30, 31, 32 and 33 of said Tract 22835 to the mo st westerly corner of Lot 33; Thence northeasterly along the northwesterly boundary lines of Lots 33, 34 and 35 of said Tract 22835 to the southeasterly line of said Parcel 89; Thence northerly along the general southeasterly line of said Parcel 89 to that certain course in the northeasterly boundary line of said Parcel 89, shown as having a bearing of North 41° 27’ 50" West and a length of 285.46 feet; Thence along said northeasterly boundary line, North 41 ° 27’ 50" West to a point distant thereon South 41° 27’ 50" East 60.00 feet from the northwesterly terminus of said certain course; Thence South 43° 24’ 56" West 1007.13 feet; Thence North 57° 01’ 22" West 235.00 feet; Thence North 18° 36’ 00" West 130.53 feet; Thence North 28° 58’ 52" West 522.07 feet; Thence North 10° 33’ 20" West 510.00 feet; Thence North 41° 38’ 00" East 240.83 feet; Thence North 21° 57’ 50" East 338.18 feet to the most westerly corner of Lot 24 of Record of Survey, filed in Book 57 Pages 4 to 8 inclusive of Records of Surveys, Records of said County; Thence northeasterly along the northwesterly boundary line of said Record of Survey to the southwesterly boundary line of Record of Survey filed in book 57 pages 35 and 36 of Records of Survey, Records of said County; Use Covenant Agreement F-14 01203.0001/458945.5 Thence in a general northerly direction along the general westerly line of said last mentioned Record of Survey to the southwesterly line of the land described as Parcel 1 in deed to Julius B. Hanover and wife, Recorded on September 17, 1947 as Documen t No. 1467, in Book 25140 Page 419, Official Records; Thence northwesterly along said southwesterly line to the southeasterly boundary line of Tract 24817, in said City, as per map Recorded in Book 661 pages 79 to 81 inclusive of Maps, in the Office of the County Recorder of said County; Thence southwesterly and northwesterly along the general southeasterly and southwesterly boundary lines of said Tract 24817, through its various courses, to the northeasterly prolongation of the southeasterly line of the land described in deed to Filiorum Corporation, recorded on July 9, 1953 as Document No. 3122 in Book 42176 Page 310, Official Records; Thence southwesterly along said northeasterly prolongation and said last mentioned southeasterly line to the northwesterly boundary line of said Parcel 74; Thence southerly along the northwesterly boundary line of said Parcel 74 to and along the northwesterly boundary line of said Parcel 73 to the easterly line of the land described as Parcel 4 of deed Recorded on August 1, 1945 as Document No. 967 in Book 22193 Page 227, Official Records; Thence southerly along said last mentioned easterly line, through its various courses to the boundary line of the land described as Parcel 1 in the deed to Homer W. Bale and wife, Recorded on March 12, 1957 as Document No. 1841 in Book 53890 page 167, Official Records; Thence easterly and southerly along said last mentioned boundary line to the easterly boundary line of the land described as Parcel 1 in the deed to Homer W. Bale a nd wife, Recorded on December 11, 1958 as Document No. 447 in Book d301 page 719, Official Records; Thence southerly along said last mentioned boundary line to the northerly boundary line of Parcel 2 of deed Recorded on august 2, 1945 as Document No. 967 in Book 22193 page 227, Official Records; Thence easterly and southerly along the northerly and easterly boundary lines of Parcels 2 and 1 (respectively) of said deed recorded in Book 22193 page 227, Official Records, to the northerly line of Lot 3 of Tract 14118, as per map recorded in Book 306 Pages 34 and 35 of Maps, in the Office of the County Recorder of said County; Thence in general easterly and southerly direction along the general northerly and easterly boundary line of said Tract 14118 to the northerly line of Palos Verdes Drive South, 80.00 feet wide, as shown on said map; Use Covenant Agreement F-15 01203.0001/458945.5 Thence in a general easterly direction along the northerly line of said Palos Verdes Drive South to the Point of Beginning. Except therefrom that portion of said land described as Parcel 1 of the deed to Palos Verdes Water Company, a Corporation, recorded on September 4, 1947 as Document No. 773 in Book 25061 Page 65, Official Records. Excepting therefrom that portion known as the Donation Parcel described as follows: Commencing at a punched spike marking the intersection of the centerline of Admirable Drive (60 feet wide) with Schooner Drive (60 feet wide) as shown on Tract Number 22835 recorded in Book 603 of Maps Page 62 Los Angeles County Records; Thence S 35° 43' 43" W a distance of 280.963 feet (Record= S 35° 36’ 48” W 281.00 feet) along the center line of Schooner Drive to a punched spike marking the centerline intersection of the Palos Verdes Drive South frontage road (52 feet wide) with the centerline of Schooner Drive; Thence continuing along the center line of Schooner Drive, S 35° 43' 43" W a distance of 71.006 feet (Record= S 35° 36’ 48” W 71.00 feet) to the centerline of Palos Verdes Drive South (80 feet wide) being a point on a curve concave to the northeast from which the radius point bears N 35° 43' 43" E a distance of 2000.142 feet (Record= N 35° 36’ 48” E 2000.00 feet); Thence northwesterly along the centerline of said Palos Verdes Drive South, along said curve through and angle of 17° 33’ 22” an arc distance of 612.882 feet to the end of said curve; Thence N 36° 42' 55" W a distance of 691.069 feet (Record= N 36° 49’ 50” W 691.02 feet) along said centerline of Palos Verdes Drive South; Thence leaving said centerline, N 20° 18' 01" E a distance of 47.693 feet (Record= N 20° 11’ 06” E 47.69 feet) to the intersection of the north line of Palos Verdes Drive South with the westerly line of said Tract Number 22835 and the Point of Beginning of the Parcel to be herein described; Thence continuing along the boundary of said Parcel and along the westerly line of said Tract along the west line of Lot 1, N 20° 18' 01" E a distance of 184.173 feet (Record= N 20° 11’ 06” E 184.16 feet) to the westerly corner of said Lot 1; Thence N 33° 23' 03" W a distance of 166.702 feet (Record= N 33° 29’ 58” W 166.69 feet) along the southwest line of Lots 29, 30 and 31 to an angle point in the southwest line of said Lot 31; Thence N 63° 07' 33" W a distance of 264.329 feet (Record= N 63° 14’ 28” W 264.31 feet) along the south line of Lots 31 and 32 to the most westerly corner of said lot 32; Use Covenant Agreement F-16 01203.0001/458945.5 Thence N 32° 00' 35" W a distance of 50.774 feet (Record= N 32° 07’ 30” W 50.77 feet) along the southwest line if Lot 33 to the most westerly corner of Lot 33 and Tract 22835; Thence leaving said Tract and continuing along the boundary of said Parcel, N 31° 55' 25" W a distance of 251.811 feet; Thence N 57° 10' 52" E a distance of 120.000 feet; Thence N 57° 10' 52" E a distance of 53.780 feet; Thence N 63° 13' 53" E a distance of 63.348 feet; Thence N 72° 14' 30" E a distance of 69.576 feet; Thence N 29° 00' 30" E a distance of 97.863 feet; Thence N 27° 55' 57" W a distance of 8.000 feet; Thence S 72° 04' 03" W a distance of 52.323 feet; Thence S 82° 41' 24" W a distance of 85.212 feet; Thence S 75° 25' 58" W a distance of 134.142 feet; Thence S 83° 13' 30" W a distance of 44.579 feet; Thence N 82° 19' 02" W a distance of 51.411 feet; Thence N 58° 01' 44" W a distance of 48.877 feet; Thence N 29° 45' 57" W a distance of 42.900 feet; Thence N 04° 36' 31" W a distance of 71.665 feet; Thence N 17° 49' 55" W a distance of 44.683 feet; Thence N 32° 57' 47" W a distance of 81.106 feet; Thence N 38° 28' 26" W a distance of 72.398 feet; Thence N 72° 28' 05" W a distance of 39.089 feet; Thence N 87° 56' 05" W a distance of 30.940 feet; Thence N 73° 06' 48" W a distance of 149.924 feet; Thence N 10° 01' 59" E a distance of 133.215 feet; Thence N 07° 43' 18" E a distance of 135.091 feet; Thence N 01° 57' 43" E a distance of 55.0 85 feet; Thence N 19° 20' 13" E a distance of 125.841 feet; Thence N 03° 59' 46" W a distance of 71.950 feet; Thence N 00° 45' 52" W a distance of 145.920 feet; Thence N 08° 56' 01" E a distance of 117.381 feet; Thence N 78° 17' 18" W a distance of 7.050 feet; Thence S 11° 42' 37" W a distance of 59.800 feet; Thence S 39° 12' 00" W a distance of 67.696 feet; Thence S 74° 54' 15" W a distance of 64.930 feet; Thence S 66° 35' 11" W a distance of 146.792 feet; Thence S 55° 45' 51" W a distance of 104.945 feet; Thence S 51° 40' 39" W a distance of 154.897 feet; Thence S 51° 16' 22" W a distance of 45.069 feet; Thence S 52° 07' 15" W a distance of 218.161 feet; Thence S 47° 42' 52" W a distance of 66.277 feet; Thence S 41° 33' 00" W a distance of 66.847 feet; Thence S 48° 25' 58" W a distance of 30.870 feet; Use Covenant Agreement F-17 01203.0001/458945.5 Thence N 66° 53' 10" W a distance of 28.304 feet; Thence S 47° 54' 54" W a distance of 222.088 feet; Thence S 43° 59' 51" W a distance of 90.593 feet to the north line of Palos Verdes Drive South (80 feet wide) as described in Book 15417 Page 201 Official Records, recorded November 22, 1937 and shown on Assessor’s Map No. 51, recorded in Book 1 Page 1 of Assessor’s Maps, all in the Office of the County Recorder of Los Angeles County; Thence S 80° 57' 44" E a distance of 438.984 feet along said north line of Palos Verdes Drive South to the beginning of a curve concave to the southwest having a record radius of 1540 feet; Thence southeasterly along the north line of Palos Verdes Drive South along said curve 1191 feet more or less to the end of curve; Thence southeasterly along the north line of Palos Verdes Drive South a distance of 600 feet more or less to the Point of Beginning. Use Covenant Agreement F-18 01203.0001/458945.5 EXHIBIT A-3 Legal Description Filiorum Open Space (former York Property) This is the “Purchase Property” Parcel described in the Grant Deed Recorded December 30, 2009 as Document No. 20091982485 Los Angeles County Records and shown as a solid line on Exhibit “A” attached hereto. The “Donation Property” Parcel described in said Grant Deed is not included here. Original APN#: 7581-023-029 Revised APN#: 7581-023-903 (three separate parts) Original APN#: 7581-023-034 (portion) Revised APN#: 7581-023-902 (portion) Use Covenant Agreement F-19 01203.0001/458945.5 Property Description of Filiorum Open Space PARCEL A OF LOT LINE ADJUSTMENT NO. SUB2004-00001, RECORDED JANUARY 27, 2005, AS INSTRUMENT NO. 05-0200143 OF OFFICIAL RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY EXCEPTING THEREFROM THAT PORTION OF SAID PARCEL A, LYING EASTERLY AND SOUTHEASTERLY OF THE FOLLOWING DESCRIBED LINE: BEGINNING AT THE WESTERLY TERMINUS OF A LINE SHOWN AS " N90°00' 00" EAST 434.31 " ON THE SOUTHERLY BOUNDARY OF PARCEL 2 OF CERTIFICATE OF COMPLIANCE NO. SUB2004-00005, RECORDED AUGUST 09, 2004 AS INSTRUMENT NO. 04-2035439 OF SAID OFFICIAL RECORDS; THENCE ALONG THE WESTERLY PROLONGATION OF SAID LINE, SOUTH 90°00' 00" WEST 547.99 FEET; THENCE SOUTH 63° 37' 37" WEST 1826.30 FEET TO A POINT LYING 165.00 FEET FROM THE NORTHERLY TERMINUS, ALONG THE NORTHERLY PROLONGATION OF A LINE SHOWN AS " N09°54' 54" W 990.00' ON THE NORTHEASTERLY BOUNDARY OF PARCEL 1 OF CERTIFICATE OF COMPLIANCE NO. SUB2004-00004, RECORDED AUGUST 09, 2004 AS INSTRUMENT NO. 04-2035438 OF SAID OFFICIAL RECORDS; THENCE ALONG SAID PROLONGATION, SOUTH 09°54' 54" EAST 165.00 FEET TO SAID NORTHERLY TERMINUS. CONTAINING AN AREA OF 160.5 ACRES, MORE OR LESS. Use Covenant Agreement F-20 01203.0001/458945.5 Use Covenant Agreement F-21 01203.0001/458945.5 EXHIBIT A-4 Legal Description Malaga Canyon North (former Angeles Property) Northern Parcel: Original APN#: 7546-022-022 Revised APN #:7546-022-900 Southern Parcel: Original APN#: 7578-002-009 (portion) Revised APN #:7578-002-900 (portion) Original APN#: 7578-002-009 (portion) Revised APN #:7578-002-900 (portion) Original APN#: 7578-003-001 Revised APN #:7578-003-900 Original APN#: 7578-002-009 (portion) Revised APN #:7578-002-900 (portion) Original APN#: 7578-002-009 (portion) Revised APN #:7578-002-900 (portion) And all of Original APN#: 7578-002-010 Revised APN #: 7578-002-901 Mossbank Drive Parcel: Original APN#: 7578-003-006 (portion) Revised APN #: 7578-003-901 (portion) Original APN#: 7578-003-006 (portion) Revised APN #: 7578-003-901 (portion) Original APN#: 7578-003-006 (portion) Revised APN #: 7578-003-901 (portion) Use Covenant Agreement F-22 01203.0001/458945.5 Use Covenant Agreement F-23 01203.0001/458945.5 Use Covenant Agreement F-24 01203.0001/458945.5 Use Covenant Agreement F-25 01203.0001/458945.5 Use Covenant Agreement F-26 01203.0001/458945.5 Use Covenant Agreement F-27 01203.0001/458945.5 Use Covenant Agreement F-28 01203.0001/458945.5 Use Covenant Agreement F-29 01203.0001/458945.5 Use Covenant Agreement F-30 01203.0001/458945.5 Use Covenant Agreement F-31 01203.0001/458945.5 Use Covenant Agreement F-32 01203.0001/458945.5 Use Covenant Agreement F-33 01203.0001/458945.5 Use Covenant Agreement F-34 01203.0001/458945.5 EXHIBIT A-5 Legal Description Malaga Canyon South (former May Property)2 Original APN#: 7578-003-004 Revised APN #:7578-003-903 Original APN#: 7578-003-007 Revised APN#: 7578-003-902 2 Legal Description does not include easements. It does not include Parcel 2. Use Covenant Agreement F-35 01203.0001/458945.5 Use Covenant Agreement F-36 01203.0001/458945.5 Use Covenant Agreement F-37 01203.0001/458945.5 Use Covenant Agreement F-38