Oliver v. City of Indio First Amended Consent Decree Fairness Hearing

    cr
Bill Lann Lee 
Constance L. Rice Kevin S. Reed 
NAACP LEGAL DEFENSE AND 
EDUCATIONAL FUND, INC. 
315 West Ninth St., Ste. Los Angeles, CA 90015 
(213) 624-2405

208

Kevin H. 
Gregory LBrogan ERTo-,~ „ \ S r / ^

'• Evans ' . ' 1 r -Kendall H.MacVeyHILL, FARRER & BURRILLr^JI P~ P . H. W . F . Pearcj445 South Figueroa Strfeeti I_I I J BEST n5Ti
Los Angeles, CA 9 0071 ri-6-6-6-------- . 3 75rdYlJmItfi¥SB(213) 620-0460

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I R i v e r s  i d e T T T r  (714) 686-1450

Ste. 400

CLERK,CENTH/8L U S. DISTRICT COURT 
JISTRICT OF CA! IFOR.. 'S> MA AiMa CrFiuc f j

— -i4  .....yk'
EARLINE OLIVER, et al.15

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CLtHN, U S. DISTRICT CO'uWCEN)RAU>«STRiCTOFCAjjFD̂ tttorneys for Defendants ^A^AANAOmOE
UTED STATES DISTRICT COURT 

CENTRAL DISTRICT OF CALIFORNIA

Plaintiffs, 
vs.

CITY OF INDIO, et al. , 
Defendants,

PASEO GROUP,
Intervenor-Defendant.

No. SA CV 90-0097 AHS (RWRx)
FIRST AMENDED CONSENT 
DECREE IN SETTLEMENT OF 
CLASS ACTION LAWSUIT
Fairness Hearing;
Date: May 24, 1993
Time: 11:00 a.m.
Place: Courtroom of the

Honorable Alicemarie H. Stotler

* • \ /«* ORIGINAL



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TABLE OF CONTENTS

Page(
I. INTRODUCTION ......................
II. DEFINITIONS ..........................
HI. SCOPE AND EFFECT OF THE DECREE ..................
IV. RIGHTS RESERVED BY THE AGENCY FOR FUTURE REDEVELOPMENT
V . HOMEOWNERS ..............................
VI. ISSUES AFFECTING NOBLE'S RANCH RESIDENTS RENTING ORLEASING LOW AND MODERATE INCOME HOUSING ..............
VII. ISSUES AFFECTING INTERVENOR CHURCHES ..................
VIII. ARBITRATION ..............................
IX. COMMUNITY RECOGNITION ....................
X. OTHER RELIEF ............................
XI. IMPLEMENTATION OF DECREE ......................
XII. COSTS AND FEES ..........

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Plaintiffs Earline Oliver, Elvella Davis, Quillar K.
Hampton, the estate of Linard McGaha, the estate of Cora L.
McGaha, Reverend Lester Riles, Genevieve Riles, Freddie Mitchell, 
Bobby Cotton, Fay Cotton, and Minnie Polk (collectively 
"plaintiffs"), are residents of an area located in the City of 
Indio known as Noble's Ranch. On February 14, 1990, plaintiffs 
filed this action on behalf of themselves and a proposed class of 
Noble's Ranch residents and landowners.

By this action, plaintiffs allege that acquisition and 
demolition activities in Noble's Ranch for the purpose of 
expanding the Indio Fashion Mall and undertaken by the City of 
Indio ("City"), the Redevelopment Agency of the City of Indio 
("Agency"), Indio City Council, and council members Darwin 
Oakley, Jeff Holt, James Fitzhenry, Thomas Hunt and Marcos Lopez 
(collectively "defendants") violate Title VIII of the Fair 
Housing Act of 1968, 42 U.S.C. § 3604; the Civil Rights Act of 
1866, 42 U.S.C. § 1982; Title VI of the Civil Rights Act of 1964, 
42 U.S.C. § 2000(d); the equal protection and due process clauses 
of the 14th Amendment to United States Constitution and 
Article I, § 7 of the California Constitution; the Civil Rights 
Act of 1871, 42 U.S.C. § 1983; and California Government Code 
§ 65008. Defendants' answer and amended answer denied each and 
every one of plaintiffs' allegations.

I . INTRODUCTION

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The Court permitted the Paseo Group, ("defendant- 
intervenor") owner or affiliate of the owner of the Indio Fashion 
Mall, to intervene as a defendant on May 1, 1990. The defendant- 
intervenor is not a participating party in this Consent Decree 
("Decree"). The defendant -intervenor has been given the 
opportunity to participate in this settlement and to comment.

On July 20, 1990, the Court issued an order certifying this 
action as a class action under Rule 23(a) and (b)(2) of the 
Federal Rules of Civil Procedure. The Court defined the class as 
"[a]11 present residents of Noble's Ranch who will suffer immi­
nent displacement as a result of the pending condemnation 
activity." Residents of the Magnolia Court Housing Project shall 
be considered members of this class for purposes of this Decree.

Two churches also located in Noble's Ranch - First African 
Methodist Episcopal Church of Indio ("First AME") and Lily of the 
Valley Christ Sanctified Church ("Christ Sanctified Church") 
(collectively, "intervenor churches") - have stated their desire 
to intervene because this Decree may substantially affect their 
respective interests.

Council members Darwin Oakley, Jeff Holt, James Fitzhenry, 
Thomas Hunt and Marcos Lopez shall not be subject to any 
individual or personal liability under this Decree. They have 
been named solely in their official capacity as council members 
and shall, within ten (10) days of Court approval of‘this Decree, 
be dismissed from this lawsuit with prejudice.

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The Court has jurisdiction over the parties and the subject 
matter of this action and shall retain jurisdiction over its 
enforcement.

Defendants contend that they are and have been in full 
compliance with the provisions of all applicable laws and 
constitutional provisions. By entering this Decree, defendants 
do not admit that defendants are, or ever have been, in violation 
of any law or constitutional provision. Although the parties 
enter this Decree, the Court has not made any determination that 
the defendants committed any violation of law or of any provision 
of either the Constitution of the State of California or the 
Constitution of the United States of America. All parties to 
this Decree enter into it in the spirit of compromise and to 
avoid the further delay, expense, inconvenience and the 
distraction of further litigation.

The Agency has pending in state court eminent domain 
proceedings in which plaintiffs or various members of the class 
are parties. At the inception of negotiations, it was agreed by 
counsel for the parties (including defendant -intervenor) that 
those eminent domain proceedings, including enforcement of orders 
of possession affecting any named plaintiff, members of the 
class, or intervening churches, would be stayed pending 
negotiation and approval of this Decree.

This Decree shall not constitute a waiver or relief of any 
claims or rights that the plaintiffs or defendants may have

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against defendant -intervenor or any of its principals, 
representatives, successors, or assigns. To the contrary, both 
plaintiffs and defendants expressly reserve the right to assert 
any and all legally cognizable claims against the defendant - 
intervenor and its principals, representatives, successors, or 
assigns.

Consistent with the foregoing and pursuant to the agreement 
of the parties, and the Court having been fully apprised:

NOW, THEREFORE, IT IS ORDERED, ADJUDGED AND DECREED AS 
FOLLOWS:

II. DEFINITIONS

This Decree is to be read and interpreted using the follow­
ing specific word and phrase definitions:

• "Project" means the Indio Fashion Mall Expan­
sion Project.

• "City" means the City of Indio and, insofar 
as the term is used in any discharge and 
release provision of this Decree, 
specifically includes each and every past and 
present City Council member, and the City's 
past and present staff, agents, employees and 
attorneys.

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"Agency" means the Redevelopment Agency of 
the City of Indio and, insofar as the term is 
used in any discharge and release provision 
of this Decree, specifically includes each 
and every past or present member of the 
Agency board, and the Agency's past and 
present staff, agents, employees and 
attorneys.

"Plaintiffs" means each and every named 
"Plaintiff" in this action and each and every 
individual or entity determined by the Court 
in its July 20, 1990 class certification 
order to be a member of the plaintiff class, 
expressly excluding: (a) any individual or
entity that has entered into a separate 
settlement with the City or Agency prior to 
Court approval of this Decree; and (b) any 
individual or entity not fitting within the 
class as defined by the Court in its class 
certification order of July 20, 1990.

"McGaha Estate" refers to the combined 
estates of (1) plaintiff Linard McGaha, 
deceased; and (2) plaintiff Cora McGaha, 
deceased.

"Blazer" means Blazer Enterprises, Inc.

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"El Cid I" means the first completed phase of 
the El Cid subdivision located in Indio, 
California, and constructed by Blazer.

"Earline Oliver" means plaintiff Earline 
Oliver solely in her capacity as the legal 
representative of the Estate of James J.
White (a former resident of the City of 
Indio), except that to the extent that 
"Earline Oliver" is referred to as releasing 
certain claims herein, "Earline Oliver" shall 
include plaintiff Earline Oliver in her 
individual capacity and as the representative 
of the Estate of James J. White.

"Housing Authority" means the Housing 
Authority of the County of Riverside.

"Noble's Ranch" means that 25.4 acre geographical 
area of the City of Indio bounded on the North by 
the southerly most boundary of the Indio Fashion 
Mall, the South by Date Avenue, and by Marigold 
Street and Monroe Street on the East and West, 
respectively.

"Homeowners" refers to the following 
individuals only: Charles Makes, Quillar ~
Hampton, Earline Oliver, Josephine Williams,

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Lester and Genevieve Riles, Liza B. McCoy and 
the McGaha Estate.

• "Renters" means each and every plaintiff who 
rented a home in Noble's Ranch.

• "Relocated Renters" means each and every 
individual who rented a home in Noble's Ranch 
and subsequently entered into a comprehensive 
settlement with the Agency prior to Court 
approval of this Decree.

• "Magnolia Court Housing Project" refers to 
the 20-unit public housing project located at 
Magnolia Court in Noble's Ranch owned by the 
Housing Authority of the County of Riverside.

H I - SCOPE AND EFFECT OF THE DECREE

The Court finds the class of persons to be covered by this 
Decree and on whose behalf this action is certified under Federal 
Rules of Civil Procedure 23(a) and (b)(2) to be as follows:

"All present residents of Noble's Ranch who 
will suffer imminent displacement as a result 
of the pending condemnation activity."

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The Court dismisses the claims of those named plaintiffs who 
do not fall within the definition of the class set forth in the 
Court's July 20, 1990 class certification order, including those 
of Spencer Hinchen, R. Gene Wilson, J. M. Dickey, Monte Fay 
Dickey, Curtis Gantt, and Ruby Lee Gantt.

By this Decree, the parties stipulate and the Court finds, 
that the First AME Church and the Christ Sanctified Church shall 
be permitted to intervene as interested third parties for 
purposes of settlement only and that the Decree shall govern all 
issues concerning the intervenor churches' relocation and related 
compensation. This shall not constitute an acknowledgment by 
defendants that the intervenor churches are members of the class, 
have any legally cognizable grievances or are entitled to any 
relief under the claims set forth in the complaint.

The parties have engaged in extensive discovery and settle­
ment negotiations. They have now resolved in this Decree, all 
issues among the plaintiffs, intervenor churches and the defen­
dants (except those matters specified herein), relating to the 
alleged acts, practices and omissions of defendants, including 
any future effects of such alleged acts, practices and omissions, 
which were or could have been raised in the Complaint. This 
Decree bars any claims and future claims, in law or in equity, or 
administrative, statutory and/or constitutional claims, by any of 
plaintiffs, or intervenor churches, including claims that any of 
them may have, may have had, or in the future may have, against 
defendants, their affiliates, agents, heirs, successors, assigns,

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or transferees arising prior to the final approval and entry of 
this Decree regarding alleged discrimination or other alleged 
unlawful conduct directly or indirectly relating to all aspects 
of the Project, including all eminent domain or other public pro­
ceedings, whether pre-construction or otherwise.

The parties acknowledge and agree that had they not settled 
this action pursuant to this Decree, and had the City and Agency 
simply abandoned the Project in an attempt to mitigate its 
damages or exposure to the plaintiffs, plaintiffs would have 
amended their complaint in this action to include, in addition to 
injunctive relief, one or more claims for compensatory and 
punitive damages resulting from the acquisition and demolition 
activities conducted by the City, the Agency and defendant- 
intervenor prior to such abandonment.

This Decree is final and binding among the signatories, 
their heirs, assigns and successors - in-interest and is final and 
binding on all persons to whom the Court determines this Decree 
is applicable, including the class of plaintiffs. Intervenor 
Churches, and each and every Homeowner, including the authorized 
agent, representative, executor or executrix of the McGaha 
Estate, shall be required, within the thirty (30) days of court 
approval of this Decree, to execute individual releases in the 
form attached as Exhibit "A." The defendants obligations to any 
one plaintiff or intervenor under this Decree are expressly 
conditioned upon the execution of these releases by that 
plaintiff or intervenor.

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The parties intend and agree that this Decree will act to 
forever bar all those bound by it from challenging any aspect of 
the Project now or, to the extent that the Agency or City are 
required to implement this Decree, in the future.

This Decree shall not apply to any person who has entered 
into an agreement with an intent fully to settle that person's 
claim with either the City or the Agency concerning any property 
or cental unit in Noble's Ranch as of the date of the signing of 
the submission of the Decree by the parties, except as specified 
herein.

By entering into this Decree and by signing the individual 
plaintiffs and intervenors do not waive their rights to 

claim any ownership interest they may have in two water wells in 
Noble's Ranch. Similarly, by entering into this Decree the 
defendants do not concede that plaintiffs or any of them, have 
any ownership interests or rights in the two water wells in 
Noble's Ranch.

The parties intend and agree that this Decree shall not 
define, create or otherwise obligate either the City or the 
Agency to proceed with any aspect of the Project. The parties 
acknowledge and agree that this Decree shall not be interpreted 
to require the City or the Agency to continue with any currently 
pending eminent domain proceedings, or to file or otherwise 
commence eminent domain proceedings with respect to any parcel of 
property in Noble's Ranch.

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The preceding paragraph notwithstanding, the parties 
acknowledge and agree that, unless specified herein, this Decree 
is intended to bar any past, present or future challenges under 
any basis by plaintiffs, intervenor churches and their respective 
agents, employees, principals, heirs and assigns to eminent 
domain proceedings currently pending or which may be filed in the 
future in the State of California relating to the Project.

IV- RIGHTS RESERVED BY THE AGENCY FOR FUTURE REDEVELOPMENT

By virtue of this Decree, the City and/or Agency reserves 
the right, upon terms and conditions specified herein, to acquire 
sufficient land in Noble's Ranch to proceed with general 
redevelopment. The City's and/or Agency's rights reserved to 
acquire the Transfer Properties (as defined below) hereunder 
shall persist for a period of five (5) years from the date of 
Court approval of this Decree. The specific rights reserved by 
the City and/or Agency and the correlative duties and obligations 
of the City and/or Agency are set forth below:

• "Replacement Obligation"

A. The "Replacement Obligation" refers to the right and 
option of the City and/or Agency to acquire the property of the 
intervenor churches and/or the Magnolia Court Housing Project 
(hereinafter sometimes referred to collectively as the "Transfer 
Properties") without challenge or objection by plainbiff and 
intervenor churches as hereinafter described. For a period of

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five years following the Court's approval of this Decree, the 
City and/or Agency shall, at their election, be entitled to the 
transfer of unencumbered fee title to the intervenor churches 
and/or the Magnolia Court Housing Project from the owners thereof 
provided that the City and/or Agency fulfill their obligation to 
replace the churches and/or the Magnolia Court Housing Project, 
or any of them as the case may be, as provided in section VI, 
subsection B, and section VII of this Decree. Any notification 
of the election to acquire all or any one of the Transfer 
Properties shall be given by the City and/or Agency in writing to 
the authorized representatives of the intervenor churches, the 
NAACP Legal Defense and Educational Fund, the Riverside County 
Housing Authority and current residents of the Magnolia Court 
Housing Project as of the date of the City's and/or Agency's 
notification within said five year period.

B. The City and/or Agency shall have an obligation to 
acquire the unencumbered fee title only to the Transfer 
Properties and fulfill their obligations as provided in section 
VI, subsection B, and section VII of this Decree without 
challenge by plaintiffs and plaintiff -intervenor churches if, 
during the five years following the Court's approval of this 
Decree, the City and/or Agency undertakes substantial commercial 
development throughout Noble's Ranch. "Substantial commercial 
development" shall mean any simultaneous commercial development 
done by the Agency and/or the City, including development by a 
developer pursuant to an agreement with the City and/or Agency, 
which involves both the construction on, and utilization of, at

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least 90-o of total acreage of Noble's Ranch for commercial 
purposes. The parties' obligations under this paragraph shall 
commence at such time as a developer or developers obtain 
building permits for the construction of the "substantial 
commercial development."

• "Community Facility Obligation"

C. The "Community Facility Obligation" refers to the 
obligation of the City and/or Agency to transfer certain property 
and funds for the purpose of constructing the Noble's Ranch 
Community Center as hereinafter described. Such obligation shall 
arise if, during the five years following the Court's approval of 
this Consent Decree, the City and/or Agency undertakes 
substantial commercial development (see above definition) 
throughout at least 75% of that portion of Noble's Ranch lying 
westerly of Larkspur Street, excluding for purposes of such 
computation APN 614-100-001 (the Meza/Mitchell property), 
provided, however, such substantial commercial development shall 
not also trigger the Replacement Obligation defined in this 
Decree.

Upon triggering of the Community Facility Obligation as 
hereinabove described, the Agency shall set aside the cash sum of 
Ni-nsty Thousand Dollars ($90,000) and a deed conveying 
unencumbered fee title to either APN 614-101-035 or APN 614-101- 
010. Such funds and deed shall be held in trust by bhe Agency 
until the expiration of the five year Replacement Obligation

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period. Upon the expiration of the five year Replacement 
Obligation period, without exercise or trigger of the Replacement 
Obligation, the deed and funds will be transferred by the Agency 
to First AME in trust for the sole purpose of constructing the 
Noble's Ranch Community Center for the benefit of the plaintiffs. 
However, in the event of the exercise or trigger of the 
Replacement Obligation as described in this Decree, the Agency 
shall be relieved of any obligation to transfer the deed or any 
funds under the Community Facility Obligation to First AME or 
otherwise.

The existence of the Replacement Obligation and the 
Community Facility Obligation does not affect the City's and/or 
Agency's rights to abandon the Project or abandon the acquisition 
of any properties at any time. The Church Replacement Obligation 
and the Community Facility Obligation shall remain in effect 
until exercised or triggered or until the passage of five years 
without exercise or trigger at which time it shall terminate 
automatically.

V. HOMEOWNERS

A. The Agency will transfer ownership and possession 
(pursuant to paragraph 1, immediately below) of the following 
houses located in the El Cid I subdivision to the Homeowners as 
set forth below:

Earline Oliver: Lot 11

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Quillar Hampton: Lot 10
McGaha Estate: Lot 6
Lester and Genevieve Riles: Lot 15
Josephine Williams: Lot 16
Lizzie B. McCoy: Lot 12
Charles Makes: Lot 8

1. Within thirty (30) days of approval by the Court 
of the Decree, the Agency will transfer to each Homeowner 
ownership of one house, as specified above. Title to each house 
shall be transferred by grant deed, with no covenants or 
restrictions except those which encumbered title upon defendants' 
acquiring same, or those that are required by California Health 
and Safety Code sections 33435 and 33436. The parties hereby 
a9ree to prepare and execute all documents necessary to 
effectuate this provision. The City and/or Agency shall pay all 
transaction costs incidental to this transfer.

2. At the time the Homeowners take title to their 
replacement houses, they shall concurrently transfer title to 
their existing houses to the Agency. The equivalent 
indebtedness, if any, on the original property as of the date of 
Court approval of this Decree, as well as the monthly mortgage 
obligation, shall be carried over to the new property at no cost 
to the Homeowners. No Homeowner shall be required to incur any 
additional debt as a result of the relocation. Any refinanced 
obligations shall be at the same or at a better interest rate.
If, in order to fulfill the requirements of this provision, the

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Agency or City becomes the new lender, neither the Agency nor the 
City shall be required to pay property taxes or insurance on 
behalf of the Homeowner/borrower (whether through impound 
accounts or otherwise) -- such obligations shall be the 
responsibility of the Homeowner/borrower alone. The Agency shall 
lease back these houses to the Homeowners for a sum of one dollar 
on a "net lease" basis (with utilities, maintenance and repair to 
be the obligation of the tenant) for a term that will end at the 
time their replacement units are ready for occupancy or the 
expiration of 150 days, whichever is sooner. The parties hereby 
agree to prepare and execute all documents necessary to 
effectuate this provision.

3. Within thirty (30) days of the Court's approval of 
this Decree, the Agency shall pay $58,600.00 in total to plain-

fs ' counsel (for the benefit of the Homeowners) for modifica­
tions to the existing structures attached hereto as Exhibits "B" 
(Makes), "C" (McCoy), "D" (Hampton, Riles, Oliver and Williams)
and "E" (McGaha Estate).

4. To meet the requirements of paragraph 3, above, 
plaintiffs have selected and will contract with Blazer for 
modification of the existing homes in El Cid I.

5. Additionally, the Agency shall pay to plaintiffs' 
counsel the sum of $4,000.00 for plaintiffs to retain the
services of a construction inspector to advise plaintiffs 
throughout the process of modifying the El Cid I homes and'

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inspecting the workmanship of Blazer prior to the remittance of 
payments to Blazer, under the contract described in paragraph 4, 
above. Such sum shall be remitted to plaintiffs' counsel within 
thirty (30) days of the courts approval of this decree.

6. The Agency shall pay each Homeowner the reasonable 
moving expenses equal to either (1) the actual charges of a 
moving company if the Homeowner engages the services of a 
licensed mover or (2) a fixed moving payment determined from the 
following schedule:

Rooms ofFurniture Amount Paid
One $ 250
Two $ 400

Three $ 550
Four $ 650
Five $ 750
Six $ 850

Seven $ 950
Eiqht $1, 050

Each Addtn'l $ 100Room

B. The sum of $35,000 shall be set aside by the Agency in 
a financial institution to be agreed upon by parties for the 
purpose of compensating Homeowners Earline Oliver, Quillar 
Hampton, Lester and Genevieve Riles, Josephine Williams, Lizzie 
McCoy and Charles Makes (but not the McGaha Estate) for the 
difference between property tax assessments on the replacement 
housing and the tax assessments each Homeowner would have paid on

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the original house. The parties acknowledge and agree that 
Elvella Davis, a member of the plaintiff class, shall also be 
entitled the relief specified in this paragraph, and for purposes 
of paragraph 1 through 3 below should be deemed a Homeowner 
(although not a Homeowner, as defined herein).

1. Each Homeowner is entitled to payments only during 
the time the Homeowner owns the replacement house, and entitle­
ment shall end upon the sale of the Homeowner's entire interest 
in the house or the death of both the Homeowner and his or her 
surviving spouse, if any.

2. Payments shall be made by the financial institu­
tion within thirty (30) days of presentation of a tax bill by the 
Homeowner.

3. The precise amount to be paid by the Agency shall 
be determined according to the schedule set forth as Exhibit "F" 
hereto. The sums indicated in this chart represent the "base 
tax" currently paid by each of these Homeowners and the 
statutorily calculated (2% per annum) increase in that tax. The 
amount of withdrawal from this fund to which these Homeowners are 
entitled is to be calculated by comparing this figure to the 
property tax (not including additional assessments) assessed on 
the replacement homes. Payments shall be made to the Homeowners 
and their surviving spouses so long as the funds deposited into 
this account remain or the last of them dies. Any sum remaining

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after the death of the last of the Homeowners or their surviving 
spouses shall revert back to the Agency.

4. Within 60 days of the date when their replacement 
homes are ready, all Homeowners, including the McGaha Estate, 
shall be entitled to withdraw from this fund a sum sufficient to 
compensate that Homeowner for the necessary incidental costs of 
connecting utilities at the new home, up to a total cost of no 
more than $200.00 per Homeowner.

C. The Agency will provide Homeowners Quillar Hampton, 
Earline Oliver, and Lester and Genevieve Riles the following 
relief with respect to their rental property in Noble's Ranch:

1. Within thirty days of the Court's approval of this 
Consent Decree, the Agency shall pay Homeowner Quillar Hampton 
$110,000 in exchange for and concurrent with her conveying the 
entirety of her interest in her rental property located at 46-201 
Larkspur St.., Assessor's Parcel Number 614-100-011, to the Agency 
free and clear of all liens and other encumbrances. All costs 
and fees associated with the transfer of title shall be borne by 
the defendants.

2. The Agency shall convey to Homeowner Earline 
Oliver $170,000 in cash, in addition to the consideration 
described above, in exchange for and concurrent with her 
conveying the entirety of her interest in her property at

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Assessors' Parcel No. 614-10-006 to the Agency, free and clear of 
all liens and other encumbrances.

3. The Agency shall pay over to Homeowners Lester and 
Genevieve Riles $56,000 in cash, in addition to the compensation 
described above, in exchange for and concurrent with their 
conveying to the Agency their interests in their property at 
Assessors Parcel No. 614-100-013, free and clear of all liens and 
other encumbrances.

4. Within thirty (30) days of the Agency taking title 
to a parcel on which such rental units are situated, the Agency 
shall pay the following amounts as compensation for lost rental 
income as a result of relocation activity:

a. Homeowner Quillar Hampton: $16,525.00, plus
a maximum of $730 for each month after June, 1992 and before the 
Agency takes title to the rental property -- (portions of months 
to be prorated).

b. Homeowner Earline Oliver: $12,000.00, plus a
maximum of $500 each month after June 1, 1992 and before 
defendants pay to Ms. Oliver the sum indicated in section C .2 

above -- (portions of months to be prorated.)

c. Homeowners Lester and Genevieve Riles: 
$9,200.00, plus a maximum of $400 each month after June 1, 1992

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and before defendants pay to the Riles the sum indicated in 
section C.3 above -- (portions of months to be prorated.)

5. The amounts paid to Homeowners Quillar Hampton, 
Earline Oliver and Lester and Genevieve Riles, respectively, 
pursuant to paragraphs 1 through 4 above, shall constitute full 
and complete resolution of their respective claims for 
compensation involving loss of income generated by rental prop­
erties in Noble's Ranch.

vi- ISSUES AFFECTING NOBLE'S RANCH RESIDENTS RENTING OR LEASING 
LOW AND MODERATE INCOME HOUSING

A. Within thirty (30) days of the Court's approval of this 
Decree the Agency shall take the following steps:

1. Pay $18,500 to plaintiffs' counsel for the benefit 
of plaintiffs residing in the Magnolia Court Housing Project 
("Magnolia Court") to be used by plaintiffs' counsel only for the 
installation of flood lighting on residential units within 
Magnolia Court, the replacement of the fence surrounding the 
housing project and to make any repairs that the Magnolia Court 
residents deem necessary.

2. Within thirty (30) days of the time in which the 
housing on APN Nos. 614-100-006, 614-100-007, and 614-100-008 
within Noble's Ranch is acquired by the Agency and becomes 
vacant, the Agency shall cause to be constructed a chain-link

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fence that will stretch contiguously from the fence that 
currently borders the back yards of the easterly units of 
Magnolia Court to Date Avenue as shown on Exhibit "G." This 
fence shall be at least five feet high and shall be maintained by 
the Agency until such time as new construction, if any, is 
completed on the property now designated as APN Nos. 614-100-006, 
614-100-007, and 614-100-008 in the Riverside County Assessors 
records.

B. If any development activity gives rise to the 
Replacement Obligation, the Agency shall diligently commence or 
cause to commence the construction of replacement units for 
Magnolia Court.

1. For the purpose of replacing Magnolia Court, the 
Agency shall make diligent efforts to acquire, as a site for this 
housing, the northern two-thirds, more or less, of lot #613-600- 
049 located at the corner of Aladdin Avenue and Avenue 46 in 
Indio, identified as Parcel 2 in the Exhibit "H," attached 
hereto. If the Agency is unable to acquire said site, a 
reasonable alternative site, acceptable to plaintiffs' counsel, 
HUD and the Housing Authority, will be selected using the 
procedure set forth below:

a.
to locate a suitable 
2.75 acres within a 
Project.

The Agency shall first use its best efforts 
alternative site with a minimum lot size of 
one (1) mile radius from the existing

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b. If no reasonable alternative site is located 
within a one (1) mile radius, the Agency shall use its best 
efforts to locate another alternative site with the same lot size 
requirements within a two (2) mile radius of the original site.

c. If necessary, the Agency shall extend its 
search of a reasonable alternative site of the same lot size to a 
three (3) mile radius from the existing site. If no reasonable 
alternative site can be located within the three (3) mile radius 
the Agency will select a reasonable alternative site (with 
different site characteristics). In any event, the site selected 
shall be adequate for the construction of a housing complex with 
at least as many units and bedrooms as the existing Magnolia 
Court. Any dispute between the plaintiffs and the City and/or 
Agency over this site will be resolved through binding 
arbitration, using the mechanism set forth in section VIII, 
below.

2. The replacement housing units constructed pursuant 
to this section shall conform substantially to the floor plans 
set forth in Exhibit "I" hereto. To the extent a change in the 
site of the new units necessitates a deviation from these plans, 
the numbers of units or bedrooms in the replacement units shall 
not be lowered.

The Agency and City shall use their best efforts 
to ensure that, insofar as is reasonably possible, the

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replacement units shall be ready for occupancy within twelve (12) 
months of the commencement of construction.

4. The replacement units shall be made available to 
the persons residing in Magnolia Court units at the time the 
replacement units are ready for occupancy, as defined in 
subsection 12, below. They shall be leased to those occupants 
under leases which contain terms and conditions identical or 
which are as close as reasonably possible to those in effect at 
Magnolia Court at the time of the move.

5. To the extent legally and practically tenable, 
families shall be assigned to units in the replacement public 
housing in a configuration and in a manner designed to preserve 
existing relationships between neighbors.

6. The replacement housing units shall have installed 
new, operative, evaporative coolers with 3/4 horsepower and two- 
speed motors. These evaporative coolers shall be made a part of 
an air distribution system which system is comprised of ducting 
providing adequate, direct and separate air flow into each bed­
room, living area and kitchen.

7. Residents of each new unit may elect to receive a 
new operable washer and dryer to be placed in their dwelling 
unit. If accepted, such appliances are to become the personal 
property of the resident. Each resident must inform'the Agency 
aiid the Housing Authority whether they wish to receive the

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washers and dryers in writing and at least thirty (30) days 
before the move to the replacement public housing.

8. The Agency shall place electrical outlets in each 
bedroom and position such outlet near a window.

9. All replacement housing units shall have floor 
coverings such as linoleum, tile or carpet.

10. To enhance security, lighting shall be provided in 
all outdoor areas, particularly the community area in the center 
of the dwelling complex. Such lighting need not be sufficient 
for outdoor athletic activity.

11. Retractable clothes lines will be placed in a 
suitable and convenient area on an exterior wall of each dwelling 
unit.

12. The replacement project shall be deemed ready for 
occupancy when (1) all applicable building, health and safety 
requirements are met as determined by a building inspector of the 
City of Indio; and (2) when the project is approved for occupancy 
by the Housing Authority.

C. All Renters who resided in Noble's Ranch as of February 
14, 1990, except those renters who reside in Magnolia Court, 
shall receive either one (but not both) of the following 
alternative forms of compensation set forth in subparagraphs 1

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and 2, below in full settlement of each Renter's relocation 
entitlement under state law.

EITHER l. Renters otherwise eligible to participate in the 
federal Section 8 housing subsidy program, pursuant to 42 U.S.C.
§ 1437(f) but unable to receive immediate assistance under such 
program because of the unavailability of Section 8 housing, 
certificates or vouchers, may elect to participate in a temporary 
housing subsidy program established by the Agency and admin­
istered by the Housing Authority until such Renters actually 
receive housing assistance pursuant to the federal Section 8 
program. This housing subsidy program shall ensure that Renter's 
monthly housing costs (rent plus utilities) do not exceed 30% of 
the household income as that income is measured under federal 
regulations.

OR 2. Alternatively, any Renter in Noble's Ranch may
elect the option of a relocation benefit lump sum payment 
pursuant to Chapter 16 (commencing with section 7260) of Division 
7 of Title 1 of the California Government Code and Title 25 of 
the California Code of Regulations, up to the maximum provided 
for by the state statute and regulations. Additionally, the 
Agency shall make available special compensation for Bobby 
Cotton. Such special compensation shall be paid in a lump sum 
and shall be calculated as the greater of: $5,250 plus moving
costs; or the difference between the rent Bobby Cotton pays as of 
the date of Court approval of this Decree and the rent charged in 
a comparable unit (as determined under California Health & Safety

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Code § 33411.1) within the City over a twenty-four month period, 
plus moving costs.

D. Up to 74 residential units in Noble's Ranch may be 
demolished pursuant to the Project, noninclusive of the 20 
Magnolia Court units which could be demolished pursuant to this 
Decree. The Agency shall replace, or cause to be replaced, those 
units within four years of their demolition according to the 
following schedule:

• 45 of those units shall be affordable to very 
low income households

• 8 of those units shall be affordable to lower 
income households

• The remaining 21 units shall at least be 
affordable to moderate income households.

The terms "low income" and "very low income" and "moderate 
income" households are defined by California Health & Safety Code 
§ 50093.

a. Defendants shall construct or cause to be 
constructed at least nineteen of these 74 units prior to June, 
1994.

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b. Any Renter or Relocated Renter eligible to 
participate in the federal Section 8 housing program shall have 
first priority for placement in one of 74 above-described units 
of affordable housing. The Agency shall cause notice to be given 
to all eligible Renters and Relocated Renters listed in 
Exhibit "J" hereto, before these units are offered for rent to 
the general public.

1. All Renters and Relocated Renters listed on 
Exhibit "J" shall receive notice from the Agency of the existence 
of a vacant rental unit for which they are entitled to a priority 
on a waiting list in the following manner:

a. Written notification by certified letter 
return receipt requested from the Agency to the Renter's last 
known address; and

b. Publication for three weekdays and two 
consecutive Sundays in the Riverside Press - Enterprise or The 
Desert Sun newspapers, using the notice attached as Exhibit "K."

2. Any Renter residing in Noble's Ranch who has not 
already reached an agreement with the Agency or the City and who 
is moving as a direct result of Agency activity shall be eligible 
to receive reasonable moving expenses equal to either (1) the
actual charges of a moving company if the homeowner engages the
services of a licensed mover, or (2) a 
determined from the following schedule:

fixed moving payment

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Rooms of 
Furniture Amount Paid

One $ 250

Two $ 400

Three $ 550

Four $ 650

Five $ 750

Six $ 850

Seven $ 950

Eight $1, 050

Each Addtn'1 
Room $ 100

VII - ISSUES AFFECTING INTERVKNOR CHURCHES

First AME

A. Within thirty (30) days of the Court's approval of this 
Decree, the Agency shall transfer to the First AME title to the 
house located in the El Cid I subdivision at Lot 19 for use as 
the church parsonage. The Agency shall transfer this title via 
grant deed, with no covenants or restrictions except those which 
encumbered title upon defendants' acquiring same, or those that 
might be required by California Health and Safety Code sections 
33435 and 33436.

B. Within thirty (30) days of the Court's approval of this
Decree, the Agency shall pay First AME $6,050 to allow the church 
to contract for the following: -

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1. Installation of outdoor flood lighting sufficient 
to illuminate all sides of the church structure;

2. Replacement of all exterior doors, door frames and 
door locks.

C. Upon the court's approval of this Decree, the Agency 
shall begin paying and shall continue to pay in a timely fashion, 
all monthly installments of principal and interest owing on a 
trust deed held by the Bank of America, loan number 0791-999- 
9122036. The Agency shall continue to pay such installments 
until the church is replaced or at the expiration of five years 
following the Court's approval of this Decree, whichever is the 
earlier. To the extent the Agency is required to pay any 
arrearages and applicable penalties any such amounts shall be 
deducted from the sum to be received by First AME as specified in 
paragraph B, above. First AME represents that as of the date of 
approval of this Decree such arrearages and/or penalties, if any, 
separately or combined, do not exceed the sum of the amount 
specified in paragraph B, above.

REPLACEMENT FACILITY FOR FIRST AME

D. If development activity gives rise to the Replacement 
Obligation, the Agency shall, within sixty (60) days of the time 
the obligation arises, make available a sum sufficient to allow 

AME to contract for the design and construction of a 
replacement church complex that includes a church, a day care

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facility and a community center. This funding must be sufficient 
to cover the reasonable costs of the design and construction of 
the church complex, including, but not limited to, the costs of 
full architectural services, engineering, site improvement (to 
meet all city, county, and state requirements for soil 
compaction, on site/off site drainage, and contaminated soils 
testing and removal as may be required by any governmental body, 
construction, and landscaping, as well as the costs of all 
permits, bonds, fees and other reasonable charges and costs, 
including the costs of any on or off-site improvements required 
by land-use laws and/or regulatory agencies. This funding may be 
made in installments and pursuant to reasonable mechanisms for 
the timely transfer of funds.

E. If development activity gives rise to the Replacement 
Obligation, First AME shall deposit a grant deed conveying fee 
title to Assessor's Parcel Nos. 614-101-012 and 614-101-013 into 
escrow within sixty (60) days of the time at which the Replace­
ment Obligation. Escrow shall close and fee title to these 
parcels shall pass to the Agency upon the filing of notice of 
completion for construction areas for the replacement church.

F. First AME shall be prohibited by this Decree from 
encumbering or otherwise transferring or conveying away any 
portion of its title to or interest in the property or take any 
other action that would jeopardize or interfere with the Agency's 
rights pursuant to the Church Replacement Obligationt A summary 
of these provisions of the Decree, as they affect title, may be

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recorded with the County of Riverside after approval of this 
Decree, using the document attached as Exhibit "L" hereto. 
Notwithstanding the provisions of this paragraph, First AME shall 
not be prohibited from executing a trust deed on the'existing 
church, provided such trust deed shall be subordinate to the 
City's and Agency's rights under the Replacement Obligation.

G. Site Selection

The Agency shall make diligent efforts to acquire as a site 
for the replacement church the lot identified as Assessor's 
Parcel No. #608-230-003 (as described in the public records of 
the County Recorder's Office for the County of Riverside).

1. If the Agency is able to acquire title to 
Assessor's Parcel No. #608-230-003, the Agency shall convey to 
the First AME the southern one third of that parcel, more or 
less, described as "Parcel 1" in Exhibit "I" attached hereto.
The conveyance to First AME shall be via grant deed, with no 
encumbrances other than those which existed upon the Agency's 
acquisition of title to the property, or those required by 
California Health and Safety Code §§ 33435 and 33436.

2. If, after exercising due diligence, the Agency is 
unable to acquire Assessor's Parcel No. #608-230-003, it shall 
purchase and convey to First AME a parcel of land for the 
construction of the church complex, cleared of all improvements,

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of a minimum size of 0.75 acres and in a suitable location within 
the City using the following procedure:

a. The Agency shall first use its best efforts 
to locate a suitable alternative site of a minimum size of 0.75 
acres within a one (1) mile radius from the existing church site.

b. If no reasonable alternative site is located 
within a one (1) mile radius, the Agency shall use its best 
efforts to locate another alternative site with the same lot size 
requirements within a two (2) mile radius of the original site.

c. If necessary, the Agency shall extend its 
search for a reasonable alternative site of the same minimum lot 
size to a three (3) mile radius from the existing site. If no 
reasonable alternative site can be located within a three (3) 
mile radius, the Agency will select a reasonable alternative site 
elsewhere in the City or with different characteristics.

3. The site selected for the church complex shall be 
the subject of a soils analysis and geological survey to 
determine its suitability for a building with a footprint of
4,700 square feet prior to the conveyance of the property to 
First AME.

Within a reasonable time after the selection of a 
suitable site for the replacement church, the defendants shall 
cause title to the site to be conveyed to First AME.

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5. The Trustees of First AME shall have the right to 
approve any site that is selected. The Trustees shall approve or 
disapprove of the site selected prior to the soils and 
contaminants tests required by this Decree. The Trustees' 
approval shall not be unreasonably withheld. Any dispute between 
the parties over the site will be resolved through binding 
arbitration pursuant to section VIII, below.

H. Replacement Facility, General Principles

1. The parties agree that the replacement First AME 
church complex, if built, shall be substantially equivalent to 
the complex depicted in the floor plans and elevations contained 
in Exhibit "M," utilizing the construction methods and materials 
described in Exhibit "N," or their substantial equivalents. The 
parties recognize, however, that without a site certain for the 
replacement church, it is impractical to agree as to the exact 
costs or the total design of the church. In building any such 
replacement church, the parties agree to follow the principles 
set forth below insofar as possible. Any dispute between First 
AME and the Agency regarding the design and/or construction of 
the replacement facility shall be submitted to binding 
arbitration pursuant to section VIII, below.

2. Design

Within sixty (60) days of the time of which the Church 
Replacement Obligation arises, defendants shall pay to tfie~Fdn~st

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AME a sum sufficient to retain an architect who is fully licensed 
by the California State Board of Architectural Examiners. The 
defendants shall pay to First AME a sum sufficient to compensate 
this architect at a reasonable rate to perform services as listed 
in the model Owner/Architect Agreement attached hereto as 
Exhibit "0." The rate to be paid this architect shall be 
commensurate with the rates prevailing in the community for the 
design of similar structures. The parties agree that the 
Owner/Architect Agreement executed between First AME and the 
architect need not be identical to this model.

3. Site Improvements

a. If required by any branch or agency of 
government, the site shall be the subject of testing for sub 
soils contaminants.

b. The Agency shall make available to First AME 
funds sufficient to allow it to contract for site improvements 
necessary for the construction of a building with a footprint of 
4,700 square feet and a parking lot of 22,000 square feet. These 
site improvements shall be commensurate with standards prevailing 
for construction in the area for the improvement of building 
sites to prevent undue or uneven settling, to allow for adequate 
water drainage and to eliminate or satisfactorily mitigate any 
sub soils contaminants. If deemed necessary by prevailing 
standards for construction in the area, or if required by any 
branch or agency of government, the site improvements shall

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include, but not be limited to, sub-excavation and soils removal, 
importation of soils, compaction of soils, grading, and the 
installation of dry wells.

c. The complex shall have parking for at least 
25 cars. The parking lot will be of asphalt and shall have posts 
and backboards for a high school size basketball court.

d. The site shall be improved with aesthetically 
appropriate landscaping and signage.

4. Structure

a. The design and construction of the church 
complex shall comply with all current and applicable editions of 
all state, local and uniform building codes as well as all 
directives issued by any governmental agency. It shall comply, 
as far as is reasonably possible, with the plans and description 
attached hereto as Exhibit "M."

b. Whenever possible, the building shall utilize 
the materials identified in Exhibit "N," or materials of like 
quality and value.

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5. Financing

a. First AME shall contract directly for all 
design, engineering and construction services necessary to build 
a replacement facility.

b. The Agency shall provide to First AME funds 
sufficient to cover all costs of design and construction, 
including, but not limited to the costs of architectural and 
engineering services, site analyses, site preparation, 
construction services, project management, fees, permits, bonds, 
and escrow and other transactional costs. Neither the City 
and/or Agency shall be liable to indemnify plaintiffs or First 
AME for attorneys' fees and other costs incurred by plaintiffs 
and/or First AME in the prosecution, defense of or participation 
in any lawsuit or other legal proceeding arising out of the 
future design and/or construction of the replacement church.

c. The Agency shall provide First AME with funds 
suffi-cient to purchase a performance bond provided purchase of 
such bond does not exceed three percent (3%) of the total 
construction cost.

d. The City or Agency shall have the right to 
review and approve all contracts valued at $1,000 or more, 
including the agreement for architectural and design services, 
which First AME enters into for the design and construction of 
the replacement church complex and shall have the right to review

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and approve the design of the church complex before any binding 
contract for construction is executed. The Agency shall not 
withhold its approval of the design or any contract absent a good 
faith belief that the design or contract violates the terms of 
this Decree. In the event the parties are unable to resolve a 
dispute regarding the design or any contract, such dispute shall 
be submitted to binding arbitration pursuant to section VIII, 
below. If defendants do not exercise the above-described right 
of approval within a reasonable time after notification by First 
AME or its representative of the work or contract that is 
proposed, defendants shall be deemed to have approved the 
proposed work or contract. "Reasonable time" for the purposes of 
this paragraph is defined as twenty (20) days in situations 
involving contracts valued at $10,000 or less and forty (40) days 
for contracts valued in excess of $10,000.

e. The parties agree that First AME will assume 
a trust deed indebtedness on the replacement church complex 
equivalent to the indebtedness extant on the existing church at 
the time the defendants take title to the existing church. The 
Agency will pay Bank of America the balance of the amount owing 
on any note secured by a trust deed on the existing church 
property. First AME will execute a note secured by a trust deed 
on the replacement complex in an amount equal to the amount paid 
by the Agency to extinguish the previous note and trust deed and 
on the same terms as the previous note and trust deed.

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f- The parties agree that the funds for 
construction provided by the Agency shall be reduced by whatever 
amounts are paid by the Agency towards reducing the indebtedness 
incurred by First AME to the Bank of America on loan no. 0791- 
999-9122036.

g. The Agency shall pay to First AME $15,000.00 
cash sixty (60) days prior to the date on which the architect 
estimates the notice of completion will be final. This cash is 
to be used for the purchase of furniture and equipment for the 
day care and community centers.

6. Permits and Approvals

a. The Agency and, where necessary, the City 
shall take all steps consistent with their obligations under 
local, state and federal law to facilitate the granting of all 
permits and approvals necessary for the construction of the 
replacement church.

Christ Sanctified Church

I. Within 30 days of the court's approval of this Decree, 
the City or the Agency shall make available to Christ Sanctified 
Holy Church a cash sum not to exceed $6,050 to allow it to 
contract for the following:

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1. Installation of bright outdoor flood lighting 
outside of the Church structure sufficient to illuminate all 
sides of the building.

2. Replacement of all exterior doors, door frames and 
door locks.

REPLACEMENT FACILITY FOR CHRIST SANCTIFIED CHURCH

J. If development activity causes the Replacement 
Obligation to arise, the Agency shall, within sixty (60) days of 
the time the Replacement Obligation arises, make available a sum 
sufficient to allow Christ Sanctified Church to enter into 
contracts for the design and construction of a replacement 
church. This funding must be sufficient to cover the reasonable 
costs of the design and construction of the church, including, 
but not limited to, the costs of full architectural services, 
engineering, site improvement (to meet all city, county, and 
state requirements for soil compaction, on site/off site 
drainage, contaminated soils testing and removal as may be 
required by governmental agencies) construction, and landscaping, 
as well as the costs of all permits, bonds, fees and other 
incidental charges, including the costs of any on- or off-site 
improvements required by land-use laws and/or regulatory 
agencies. This funding may be made in installments and pursuant 
to reasonable mechanisms for the timely transfer of funds.

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K. If development activity gives rise to the Replacement 
Obligation arises, the Christ Sanctified Church of Indio shall 
deposit a grant deed conveying fee title to Assessor's Parcel No. 
614-101-037 into escrow within sixty (60) days of the' time at 
which the Replacement Obligation arises. Escrow shall close and 
fee title to pass to the Agency upon filing of the notice of 
completion for the replacement church.

L. Site Selection

1. The Agency shall make diligent efforts to acquire 
as a site for the replacement church the lot identified as 
Assessors Parcel No. 614-130-014 located on Daisy Street south of 
Garden Avenue. Upon acquiring title to this property, if title 
is so acquired, the Agency shall deed it to the Christ Sanctified 
Church by grant deed, with no encumbrances other than those which 
existed at the time of the Agency's acquisition of title to the 
original facility, other than those required by California Health 
& Safety Code §§ 33435 and 33436.

2. If, after exercising due diligence, the Agency is 
unable to acquire Assessor's Parcel No. 614-130-014, it shall 
purchase and convey to the Christ Sanctified Church a parcel of 
land for the construction of the church, cleared of all 
improvements, of a minimum size of 0.40 acres and in a suitable 
location within the City using the following procedure:

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a. The Agency shall first use its best efforts 
to locate a suitable alternative site of a minimum size of 0.40 
acres within a one (1) mile radius from the existing church site.

b. If no reasonable alternative site is located 
within a one (1) mile radius, the Agency shall use its best 
efforts to locate another alternative site with the same lot size 
requirements within a two (2) mile radius of the original site.

c. If necessary, the Agency shall extend its 
search for a reasonable alternative site of the same minimum lot 
size to a three (3) mile radius from the existing site. If no 
reasonable alternative site can be located within a three (3) 
mile radius, the Agency will select a reasonable alternative site 
elsewhere in the City or with different characteristics.

3. The site selected for the church complex shall be 
the subject of a soils analysis and geological survey to 
determine its suitability for a building with a footprint of 
2,700 square feet prior to the conveyance of the property to the 
Christ Sanctified Church.

Within a reasonable time after the selection of a 
suitable site for the replacement church, the defendants shall
cause title to the site to be conveyed to the Christ Sanctified 
Church.

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5. The Christ Sanctified Church shall have the right 
to approve any site that is selected. The Christ Sanctified 
Church shall approve or disapprove of the site selected prior to 
the soils and contaminants tests required by this Decree. The 
Christ Sanctified Church's approval shall not be unreasonably 
withheld. Any dispute between the parties over the site will be 
resolved through binding arbitration pursuant to section VIII, 
below.

M. Replacement Facility, General Principles

1. The parties agree that the replacement church, if 
built, substantially equivalent to the complex depicted in 
Exhibit "P", utilizing the construction methods and materials 
described in Exhibit "Q", or their substantial equivalents. The 
parties recognize, however, that without a site certain for the 
replacement church, it is impossible to agree as to the exact 
costs or even the total design of the church. The parties agree, 
however, to the following principles and further agree to submit 
any disputes regarding the design or costs for construction to 
binding arbitration, pursuant to section VIII, below.

Within sixty (60) days of the time at which the 
Replacement Obligation arises, defendants shall pay to Christ 
Sanctified Church a sum sufficient to retain an architect who is 
fully licensed by the California State Board of Architectural 
Examiners. The defendants shall pay to Christ Sanctified Church 
a sum sufficient to compensate this architect at a reasonable

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rate to perform services as listed in the model Owner/Architect 
Agreement attached hereto as Exhibit "N". The rate to be paid 
this architect shall be commensurate with the rates prevailing in 
the community for the design of similar structures. The parties 
agree that the Owner/Architect Agreement executed between Christ
Sanctified Church and the architect need not be identical to this 
model.

3. The replacement church shall incorporate the 
following site improvements:

a. If required by any branch or agency of 
government, the site selected for the replacement church shall be 
the subject of testing for sub soil contaminants.

b. The Agency shall make available to Christ 
Sanctified Church funds sufficient to allow it to contract for 
site improvements necessary for the construction of a building 
with a footprint of 2,700 square feet and a parking lot 
sufficient for the parking of 20 vehicles. These site 
improvements shall be commensurate with standards prevailing for 
construction in the area for the improvement of building sites to 
prevent undue or uneven settling, to allow for adequate water 
drainage and to eliminate or satisfactorily mitigate any sub 
soils contaminants. If deemed necessary by prevailing standards 
for construction in the area, or if required by any branch or 
agency of government, the site improvements shall include, but 
not be limited to, sub-excavation and soils removal, importation

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of soils, compaction of soils, grading, and the installation of 
dry wells.

c. The site shall be improved with aesthetically 
appropriate landscaping and signage.

d. If the church is to be built on the Daisy 
Street site, Assessors Parcel No. 614-130-014, a wall of up to 10 
feet shall be built on the western property line and landscaping 
shall be designed to mitigate noise pollution from the pumping 
station located on Assessors Parcel No. 614-130-004. Such 
landscaping may utilize mature trees.

4. Structure

a. The design and construction of the 
replacement church shall comply with all current and applicable 
editions of all state, local and uniform building codes. It 
shall comply, as far as is reasonably possible, with the plans 
and description attached hereto as Exhibit "P."

b. Whenever applicable, the building shall 
utilize the materials identified in Exhibit "Q," or materials of 
like quality and value.

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5. Financing

The Christ Sanctified Church shall contract
directly for all design, engineering and construction services 
necessary to build a replacement facility.

The Agency shall provide to Christ Sanctified
Church funds sufficient to cover all costs of design and 
construction, including, but not limited to the costs of 
architectural and engineering services, site analyses, site 
preparation, construction services, project management, fees, 
permits, bonds, and escrow and other transactional costs.
Neither the City nor the Agency shall be liable to indemnify 
plaintiffs and/or by Christ Sanctified Church for attorney's fees 
and other costs incurred by plaintiffs and/or Christ Sanctified 
Church as a result of the prosecution, defense of or participa­
tion in any legal proceeding arising out of the future design 
and/or construction of the replacement church.

Church funds sufficient to purchase a performance bond provided 
purchase of such bond does not exceed three percent (3%) of the 
total construction cost.

review and approve all contracts valued at $1,000 or more the 
Christ Sanctified Church enters into for the design and
construction of the replacement church complex, including^ the

c. The Agency shall provide Christ Sanctified

d. The City or Agency shall have the right to

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agreement for architectural and design services, and shall have 
the right to review and approve the design of the church complex 
before any binding contract for construction is executed. The 
Agency shall not withhold its approval of the design'or any 
contract absent a good faith belief that the design or contract 
violates the terms of this Decree. In the event the parties are 
unable to resolve a dispute regarding the design or any contract, 
such dispute shall be submitted to binding arbitration, pursuant 
to section VIII, below. If defendants do not exercise the above- 
described right of approval within a reasonable time after 
notification by Christ Sanctified Church or its representative of 
the work or contract that is proposed, defendants shall be deemed 
to have approved the proposed work or contract. "Reasonable 
time" for the purposes of this paragraph is defined as twenty 
(20) days in situations involving contracts valued at $10,000.00
or less and forty (40) days for contracts valued in excess of
$10,000.

6. Approvals and Permits

a. The Agency and, to the extent applicable, the 
City shall take all steps consistent with their obligations under 
local, state and federal law to facilitate the granting of all 
permits and approvals necessary for the construction of the 
replacement church.

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VIII. ARBITRATION

The parties to this Decree acknowledge that, while the 
United States District Court retains jurisdiction over the 
enforcement and general interpretation of the Decree, certain of 

terms, conditions and other provisions contained in the 
Decree specifically reference the resolution of disputes relating 
thereto through binding arbitration. In such cases, arbitration I 
will take place in the manner set forth below.

Selection of Arbitrator. All arbitrations shall take 
place before the Honorable Paul Egley (retired). If Judge Egley 
is unavailable to act as an arbitrator in relation to any dispute 
regarding this Decree, the parties shall instead select a judge 
listed with the Judicial Arbitration and Mediation Service 
( JAMS ) to act as an arbitrator, or may select any other 
mutually agreeable arbitrator or process of arbitration.

Election to Arbitrate. Arbitration pursuant to this 
Decree must be specifically requested by the party seeking 
arbitration pursuant to this paragraph. Such an election to 
arbitrate a dispute can be made by a party only by formally 
notifying all other parties to this Decree of an election to 
arbitrate in relation to a particular dispute. Such a notice 
must be sent to all parties within a reasonable time after the 
dispute first arose and the notice shall contain, at a minimum, a 
detailed description of the subject dispute and a statement that 
the party is electing arbitration pursuant to this paragraph.

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Timing—of_Arbitration. Arbitrations pursuant to this
P̂ -̂ Ŝ̂ -̂Ph must take place within sixty (60) days from the date 
the election to arbitrate pursuant to subparagraph 2, above, is 
made.

D * Conduct of the Arbitration. The manner in which 
arbitrations under this paragraph shall be conducted is to be 
left to the sole discretion of the selected arbitrator. All 
parties to this Decree represent and warrant that they shall 
cooperate in providing the selected arbitrator with all 
documents, materials and any information necessary to assist the 
selected arbitrator in the performance of his or her role.

E - Costs of Arbitration. To the extent that any party to 
this Decree incurs attorney's fees and other costs in connection 
with the arbitration, those fees and costs shall be the responsi- 
bilitY that party alone. The fees and costs incurred by the 
selected arbitrator in the performance of his or her role pursu­
ant to this paragraph shall be paid by the City and/or Agency and 
the plaintiffs jointly, with the City and/or Agency paying 75% of 
said fees and costs, and the plaintiffs paying 25% of said fees 
and costs.

F- Decision of Selected Arbitrator. The selected 
arbitrator may render his or her decision orally or in writing. 
Such a decision is binding on all parties.

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IX. COMMUNITY RECOGNITION

A. The defendants shall cause the name of Date Avenue, 
between Monroe and Arabian, to be renamed John Nobles' Avenue.

B. Within ninety (90) days after approval by the Court of 
this Decree, the Agency shall pay $56,700.00 to plaintiffs' 
counsel to be held in trust for plaintiffs for the charitable 
purpose of commemorating Noble's Ranch. Plaintiffs shall give 
thirty (30) days advance notice to the City and Agency regarding 
any use of the funds.

X. OTHER REUTER

A. The Agency shall pay plaintiffs $15,000.00 to reimburse 
plaintiffs for all fees and expenses paid to plaintiffs' 
architect to develop plans for this Decree. This amount is to be 
paid within thirty (30) days of approval by the Court of the 
Decree.

XI. IMPLEMENTATION OF DECREE

A. In the event that any dispute or controversy arises 
concerning the interpretation, application, or enforcement of the 
Decree, the parties reserve the right to select a third party to 
mediate or arbitrate the controversy or dispute on terms to be 
agreed upon at that time.

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B. The parties reserve the right to petition or apply to 
this Court for modification of this Decree for any purposeany purpose
whatsoever.

C. The parties agree to prepare and provide documents and
relevant information, reasonably necessary to effectuate the 

terms of this Decree.

XII. COSTS AND FEES

Jurisdiction over the issue of costs attorneys' fees as 
provided for under 42 U.S.C.A. § 1988 is reserved to this Court.

HILL, FARRER & BURRILL

NAACP LEGAL DEFENSE AND EDUCATIONAL FUND, INC.

DATED: 1993 By:
oui nann nee 
Kevin S. Reed 
Attorneys for Plaintiffs

BEST, BEST & KRIEGER

Kendall H. MacVey 7 
Patrick H.W.F. Pearce' 
Attorneys for Defendants

It is sc ordered