HomeMy WebLinkAbout03-07-2018 Agenda BackupCITY OF SAN BERNARDINO
AGENDA
FOR THE
JOINT REGULAR MEETING OF THE MAYOR AND CITY COUNCIL
OF THE CITY OF SAN BERNARDINO, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS
THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND
CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE HOUSING AUTHORITY, AND THE MAYOR AND
CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SAN BERNARDINO JOINT POWERS FINANCING
AUTHORITY
WEDNESDAY, MARCH 7, 2018
4:00 PM – CLOSED SESSION 5:00 PM – OPEN SESSION
COUNCIL CHAMBER • 201 NORTH "E" STREET • SAN BERNARDINO, CA 92401 • WWW.SBCITY.ORG
Virginia Marquez R. Carey Davis James Mulvihill
COUNCIL MEMBER, W ARD 1 MAYOR COUNCIL MEMBER, WARD 7
Benito Barrios
Andrea M. Miller
COUNCIL MEMBER, W ARD 2 CITY MANAGER
John Valdivia Gary D. Saenz
COUNCIL MEMBER, W ARD 3 CITY ATTORNEY
Fred Shorett Georgeann “Gigi” Hanna
COUNCIL MEMBER, W ARD 4 CITY CLERK
Henry Nickel David Kennedy
COUNCIL MEMBER, W ARD 5 CITY TREASURER
Bessine L. Richard
COUNCIL MEMBER, W ARD 6
Welcome to a meeting of the Mayor and City Council of the City of San Bernardino.
o Anyone who wishes to speak during public comment or on a particular item will be required to fill out a
speaker slip. Speaker slips must be turned in to the City Clerk by 5:00 pm the day of the meeting.
o You may email your request to speak to publiccomments@sbcity.org if you cannot turn it in in person
prior to 5:00 pm. Each request will cover one speaker. Those who wish to speak must submit their
own request to be called on by the Mayor.
o Public comments for agenda items that are not public hearings will be limited to three minutes.
o There is a 6-minute-per-person time limit for all comments, excluding public hearings.
o All who wish to speak, including Council members and staff, need to be recognized by the Mayor or
Mayor Pro Tempore before speaking.
o Please contact the City Clerk’s Office (384-5002) two working days prior to the meeting for any
requests for reasonable accommodation to include interpreters.
o All documents for public review are on file with the City Clerk’s Office or may be accessed online by
going to www.sbcity.org.
o Please turn off or mute your cell phone while the meeting is in session.
Joint Regular Meeting Agenda March 7, 2018
Mayor and City Council of the City of San Bernardino Page 2 Printed 3/6/2018
Call to Order
Attendee Name Present Absent Late Arrived
Council Member, Ward 1 Virginia Marquez
Council Member, Ward 2 Benito Barrios
Council Member, Ward 3 John Valdivia
Council Member, Ward 4 Fred Shorett
Council Member, Ward 5 Henry Nickel
Council Member, Ward 6 Bessine L. Richard
Council Member, Ward 7 James Mulvihill
Mayor R. Carey Davis
City Clerk Georgeann "Gigi" Hanna
City Attorney Gary D. Saenz
City Manager Andrea M. Miller
CLOSED SESSION
PUBLIC COMMENTS ON CLOSED SESSION ITEMS
A three-minute limitation shall apply to each member of the public who wishes to
address the Mayor and City Council and the Mayor and City Council Acting as the
Successor Agency to the Redevelopment Agency. No member of the public shall
be permitted to “share” his/her three minutes with any other member of the public.
A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Pursuant
to Government Code Section 54956.9(a) and (d)(1):
In re: City of San Bernardino, U.S. Bankruptcy Court Case No. 6:12-bk-28006 MJ
C. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION
Initiation of litigation – Pursuant to Government Code Section 54956.9(d)(4):
City v. JP Morgan Chase
INVOCATION AND PLEDGE OF ALLEGIANCE
CLOSED SESSION REPORT
PRESENTATIONS
1. Proclamation Designating March as Women’s History Month – Mayor R.
Carey Davis, Council Member Virginia Marquez, and Council Member
Bessine L. Richard
2. Chamber of Commerce & Local Elected Officials Announcements
Joint Regular Meeting Agenda March 7, 2018
Mayor and City Council of the City of San Bernardino Page 3 Printed 3/6/2018
PUBLIC COMMENTS FOR ITEMS LISTED ON THIS AGENDA
A three-minute limitation shall apply to each member of the public who wishes to address
the Mayor and City Council on any item listed on the agenda, excluding public hearings.
There is no limit to the number of items that may be discussed within the three-minute time
limit. To be called on by the Mayor, please turn in individual speaker slips to the City Clerk
by 5:00 p.m. the day of the meeting. If you wish, you may email your speaking request to
publiccomments@sbcity.org prior to the beginning of the meeting. Emailed requests to
speak will not be accepted from anyone but the person requesting to speak.
CONSENT CALENDAR
There will be no separate discussion of Consent Calendar items unless a Council
member requests that the item be considered in its normal sequence on the agenda.
Public comment on Consent Calendar items is limited to three minutes total per
person. There is no limit on the items that can be discussed within that time.
3. Waive Full Reading of Resolutions and Ordinances
Recommendation: Waive full reading of resolutions and ordinances on
the agenda dated March 7, 2018.
4. City Council Approval of Minutes
Recommendation: Approve the minutes of the Mayor and City Council
Regular Meeting of February 7, 2018.
5. City Council Approval of Commercial and Payroll Checks
Recommendation: Approve the commercial and payroll checks for
February 2018.
6. Agreement with USA Shade for the design, engineering and installation of
the CBDG-funded Shade Structure at the Jerry Lewis Family Swim Center
Recommendation: Adopt Resolution No. 2018-52, a Resolution of the
Mayor and City Council of the City of San Bernardino,
California, authorizing the City Manager to execute a
Vendor Service Agreement with USA Shade for the
design, engineering, and installation of a shade
structure at the Jerry Lewis Family Swim Center.
7. Agreement with Graves & King for Hearing Officer Services
Recommendation: Adopt Resolution No. 2018-53, a Resolution of the
Mayor and City Council of the City of San Bernardino,
California, authorizing a Professional Services
Agreement between the City of San Bernardino and
Graves & King, LLC for Hearing Officer Services.
Joint Regular Meeting Agenda March 7, 2018
Mayor and City Council of the City of San Bernardino Page 4 Printed 3/6/2018
8. Establishing Salaries for Police Safety
Recommendation: Adopt Resolution No. 2018-54, a Resolution of the
Mayor and City Council of the City of San Bernardino,
California, establishing salaries for Police Department
ranges P-1 (Police Officer), P-2 (Detective/Corporal),
P-3 (Sergeant), and Law Enforcement Trainee,
effective August 1, 2017.
9. Establish Salaries for Police Management
Recommendation: Adopt Resolution No. 2018-55, a Resolution of the
Mayor and City Council of the City of San Bernardino,
California, establishing salaries for Police Department
ranges P-4 (Lieutenant), P-5 (Captain), P-6 (Assistant
Chief of Police), and P-7 (Chief of Police) effective
August 1, 2017.
10. Establishing a Basic Compensation Plan for Employees of the San
Bernardino Police Department
Recommendation: Adopt Resolution No. 2018-56, a Resolution of the
Mayor and City Council of the City of San Bernardino,
California, establishing a basic compensation plan for
employees of the San Bernardino Police Department.
11. Establishing a Basic Compensation Plan for Temporary or Part Time
Employees of the San Bernardino Police Department
Recommendation: Adopt Resolution No. 2018-57, a Resolution of the
Mayor and City Council of the City of San Bernardino,
California, establishing a basic compensation plan for
Temporary/Part-Time Officers and/or employees of
the City of San Bernardino, California.
12. Establishing Public Official Bond Requirements and Amending Municipal
Code Chapter 2.62
Recommendation: 1. Adopt Resolution No. 2018-58, a Resolution of the
Mayor and City Council of the City of San
Bernardino, California, establishing official bond
requirements for the positions of City Attorney,
City Clerk, City Manager, Director of Finance,
General Manager of the City of San Bernardino’s
Municipal Water Department, and Finance
Director of the City of San Bernardino’s Municipal
Water Department and fixing the amount and
terms of those official bonds.
Joint Regular Meeting Agenda March 7, 2018
Mayor and City Council of the City of San Bernardino Page 5 Printed 3/6/2018
2. Introduce for first reading Ordinance No. MC-
1467, an Ordinance of the Mayor and City Council
of the City of San Bernardino, California, repealing
Chapter 2.62 of the San Bernardino Municipal
Code related to the filing of official bonds.
13. Issuance of a Purchase Order to United Rentals, Inc., for Multiquip Roller
Equipment to Repair City Streets
Recommendation: Adopt Resolution No. 2018-59, a Resolution of the
Mayor and City Council of the City of San Bernardino,
California, authorizing and directing the Director of
Finance to issue a Purchase Order to in the amount
of $16,901.46 to United Rentals, Inc. for the purchase
of a Multiquip Roller AR14H.
14. Authorization to issue a Purchase Order to Aardvark for the Purchase of
SWAT Tactical Vests
Recommendation: Adopt Resolution No. 2018-60, a Resolution of the
Mayor and City Council of the City of San Bernardino,
California, authorizing the Director of Finance to issue
a Purchase Order to Aardvark in the amount of
$92,232.00 for the purchase of SWAT Tactical Vests.
15. Final Reading – Development Code Amendment 18-02 Chapter 5.10,
Chapter 8.97 and Chapter 8.99
Recommendation: 1. Accept for final reading and adopt Ordinance No.
MC-1464, an Ordinance of the Mayor and City
Council of the City of San Bernardino, California,
approving Commercial Cannabis Activity (Chapter
5.10 – Development Code Amendment 18-02A).
2. Accept for final reading and adopt Ordinance No.
MC-1465, an Ordinance of the Mayor and City
Council of the City of San Bernardino, California,
approving Smoking Cannabis in Public Places
(Chapter 8.97 – Development Amendment 18-02B).
3. Accept for final reading and adopt Ordinance No.
MC-1466, an Ordinance of the Mayor and City
Council of the City of San Bernardino, California,
approving Personal Cultivation in Private
Residences (Chapter 8.99 – Development Code
Amendment 18-02C).
Joint Regular Meeting Agenda March 7, 2018
Mayor and City Council of the City of San Bernardino Page 6 Printed 3/6/2018
16. Issuance of a Purchase Order to Industrial Video & Control for Solar
Powered Public Safety Camera System Trailers
Recommendation: Adopt Resolution No. 2018-61, a Resolution of the
Mayor and City Council of the City of San Bernardino,
California, authorizing the Director of Finance to issue
a Purchase Order to Industrial Video & Control for two
solar powered public safety camera system trailers.
17. Authorize the City Manager to Approve and Execute Agreements Related to
Programs and Services Approved in the Substantial Amendment to HUD
Fiscal Year 2017-18 Action Plan
Recommendation: Adopt Resolution No. 2018-62, a Resolution of the
Mayor and City Council of the City of San Bernardino,
California, approving agreements related to programs
and services approved in the Substantial Amendment
to the HUD Fiscal Year 2017-2018 Action Plan and
authorizing the City Manager to execute the
agreements.
18. Accept Emergency Management Performance Grant and Expenditures
Recommendation: Adopt Resolution No. 2018-63, a Resolution of the
Mayor and City Council of the City of San Bernardino,
California, authorizing the receipt, obligation, and
expenditure of the FY 2017 Emergency Management
Performance Grant, authorizing the City Manager to
execute Vendor Service Agreements with Vector USA
and Tyco Integrated Security, and authorizing the
Director of Finance to amend the Adopted FY 2017/18
Budget and issue Purchase Orders to Vector USA,
Tyco Integrated Security, and GovConnection, Inc.
19. Charter Implementation – Changes to the City of San Bernardino’s Boards,
Commissions and Citizen Advisory Committees Part III – FINAL READING
Recommendation: 1. Accept for final reading and adopt Ordinance No.
MC-1468, an Ordinance of the Mayor and City
Council of the City of San Bernardino, California,
repealing Chapter 2.26 of the San Bernardino
Municipal Code related to the Animal Control
Commission.
2. Accept for final reading and adopt Ordinance No.
MC-1469, an Ordinance of the Mayor and City
Council of the City of San Bernardino, California,
amending Chapter 6.14 of the San Bernardino
Municipal Code related to Administrative Citations.
Joint Regular Meeting Agenda March 7, 2018
Mayor and City Council of the City of San Bernardino Page 7 Printed 3/6/2018
3. Accept for final reading and adopt Ordinance No.
MC-1470, an Ordinance of the Mayor and City
Council of the City of San Bernardino, California,
amending Chapter 6.09 of the San Bernardino
Municipal Code related to Vicious and Potentially
Dangerous Dogs.
4. Accept for final reading and adopt Ordinance No.
MC-1471, an Ordinance of the Mayor and City
Council of the City of San Bernardino, California,
repealing Chapter 2.34 and Chapter 2.39 of the
San Bernardino Municipal Code related to the
Board of Police Commissioners and the Human
Relations Commission.
5. Accept for final reading and adopt Ordinance No.
MC-1472, an Ordinance of the Mayor and City
Council of the City of San Bernardino, California,
amending and renaming Chapter 5.82 of the San
Bernardino Municipal Code related to “Operator
Permit Regulations.”
6. Accept for final reading and adopt Ordinance No.
MC-1473, an Ordinance of the Mayor and City
Council of the City of San Bernardino, California,
amending Chapter 2.22 of the San Bernardino
Municipal Code related to the “Planning
Commission.”
7. Accept for final reading and adopt Ordinance No.
MC-1474, an Ordinance of the Mayor and City
Council of the City of San Bernardino, California,
amending Chapter 2.45 of the San Bernardino
Municipal Code to create the “Building and
Accessibility Appeals Board” and repealing
Resolution No. 94-254.
20. Charter Implementation – Personnel System and Business Registration and
Treasury Division Transfer Part I – FINAL READING
Recommendation: 1. Accept for final reading and adopt Ordinance No.
MC-1475, an Ordinance of the Mayor and City
Council of the City of San Bernardino, California,
repealing and replacing Chapter 2.04 of the San
Bernardino Municipal Code related to the “Human
Resources Department” to establish a Personnel
System.
Joint Regular Meeting Agenda March 7, 2018
Mayor and City Council of the City of San Bernardino Page 8 Printed 3/6/2018
2. Accept for final reading and adopt Ordinance No.
MC-1476, an Ordinance of the Mayor and City
Council of the City of San Bernardino, California,
repealing and replacing Chapter 2.08 of the San
Bernardino Municipal Code related to City
Treasurer.
3. Accept for final reading and adopt Ordinance No.
MC-1477, an Ordinance of the Mayor and City
Council of the City of San Bernardino, California,
amending Chapter 2.10 of the San Bernardino
Municipal Code related to the Department of
Finance.
STAFF REPORTS
21. Mid-Year Financial Review – Fiscal Year 2017/18
Recommendation: Adopt Resolution No. 2018-64, a Resolution of the
Mayor and City Council of the City of San Bernardino,
California, approving and adopting the City of San
Bernardino’s Fiscal Year 2017/18 Budget Update and
related budget amendment action.
22. Comprehensive Annual Financial Report of the City of San Bernardino
Municipal Water Department for the Fiscal Year ended June 30, 2017
Recommendation: Receive and file the audited Comprehensive Annual
Financial Report of the Water Department’s Water,
Sewer, and Sewer Collection Utilities for the Fiscal
Year ended June 30, 2017.
23. Amendment to Tow Service Agreement to Include One Additional Tow
Carrier to City’s Tow Rotation
Recommendation: Adopt Resolution No. 2018-65, a Resolution of the
Mayor and City Council of the City of San Bernardino,
California, directing the City Manager to initiate action
to establish an additional tow carrier to the City’s tow
carrier rotation.
24. Status of Bills of Interest to Southern California Association of
Governments Update
Recommendation: Receive an oral report by Council Member Mulvihill.
Joint Regular Meeting Agenda March 7, 2018
Mayor and City Council of the City of San Bernardino Page 9 Printed 3/6/2018
PUBLIC HEARINGS
25. Parking Lease Agreement for the Andreson Building located at 320 N. “E”
Street
Recommendation: Adopt Resolution No. 2018-66, a Resolution of the
Mayor and City Council of the City of San Bernardino,
California, approving a Parking Agreement between
the City and 320 N. E Street, LLC for the use of 125
unreserved parking stalls in the City Hall parking
structure.
26. Formation of Assessment District No. 1056 for the cost of landscape
maintenance in the Magnolia Avenue and Garfield Street Area relative to
Tentative Tract No. 16502
Recommendation: Conduct a Public Hearing on the proposed formation of
a special assessment district, to be known as
Assessment District No. 1056, located in the Magnolia
Avenue and Garfield Street Area and adopt Resolution
No. 2018-67, a Resolution of the Mayor and City
Council of the City of San Bernardino, California,
determining the existence of less than a majority
protest, that ballots submitted in favor of the
assessment exceed the ballots submitted in opposition
to the assessment and that Public Convenience and
Necessity require the maintenance of landscaping and
a detention basin located in the Magnolia Avenue and
Garfield Street area, approving the final Engineer’s
Report, creating an assessment district to cover the
cost of said maintenance, known as Assessment
District No. 1056, ordering the work, confirming the
2018-2019 Assessment Roll, and determining that the
Special Assessment Investigation, Limitation, and
Majority Protest Act of 1931 shall not apply.
27. Appeal of Denial of Tow Carrier--Pepe’s Towing
Recommendation: By mutual agreement of the parties, continue to
March 21, 2018.
28. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
29. ITEMS TO BE REFERRED TO CITY COUNCIL COMMITTEES
30. ANNOUNCEMENTS BY MAYOR, CITY COUNCIL AND EXECUTIVE STAFF
Joint Regular Meeting Agenda March 7, 2018
Mayor and City Council of the City of San Bernardino Page 10 Printed 3/6/2018
31. ADJOURNMENT
The next joint regular meeting of the Mayor and City Council and the Mayor and
City Council Acting as the Successor Agency to the Redevelopment Agency will
be held on Wednesday, March 21, 2018 in the Council Chamber located at
201 North E Street, San Bernardino, California 92401. Closed Session will begin
at 4:00 p.m. and Open Session will begin at 5:00 p.m.
CERTIFICATION OF POSTING AGENDA
I, Georgeann “Gigi” Hanna, CMC, City Clerk for the City of San Bernard ino, California, hereby
certify that the agenda for the March 7, 2018 regular meeting of the Mayor and City Council and
the Mayor and City Council acting as the Successor Agency to the Redevelopment Agency was
posted on the City’s bulletin board located in the breezeway of City Hall, 300 North “D” Street,
San Bernardino, California, at the San Bernardino Public Library, and on the City’s website
www.ci.san-bernardino.ca.us on Friday, March 2, 2018.
I declare under the penalty of perjury that the foregoing is true and correct.
Georgeann “Gigi” Hanna, CMC, City Clerk
NOTICE: Any member of the public may address this meeting of the Mayor and City Council and
the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency on
any item appearing on the agenda by approaching the microphone in the Council Chamber when
the item about which the member desires to speak is called and by asking to be recognized.
Any member of the public desiring to speak to the Mayor and City Council and the Mayor and
City Council Acting as the Successor Agency to the Redevelopment Agency concerning any
matter not on the agenda but which is within the subject matter jurisdiction of the Mayor and City
Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment
Agency may address the body at the end of the meeting, during the period reserved for public
comments. Said total period for public comments shall not exceed 60 minutes, unless
such time limit is extended by the Mayor and City Council and the Mayor and City
Council Acting as the Successor Agency to the Redevelopment Agency. A three minute
limitation shall apply to each member of the public, unless such time limit is extended by the
Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the
Redevelopment Agency. No member of the public shall be permitted to “share” his/her three
minutes with any other member of the public.
Speakers who wish to present documents to the governing body may hand the documents to
the City Clerk at the time the request to speak is made.
The Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to
the Redevelopment Agency may refer any item raised by the public to staff, or to any
commission, board, bureau, or committee for appropriate action or have the item placed on the
next agenda of the Mayor and City Council and the Mayor and City Council Acting as the
Successor Agency to the Redevelopment Agency. However, no other action shall be taken nor
discussion held by the Mayor and City Council and the Mayor and City Council Acting as the
Successor Agency to the Redevelopment Agency on any item which does not appear on the
agenda unless the action is otherwise authorized in accordance with the provisions of
subdivision (b) of Section 54954.2 of the Government Code.
Public comments will not be received on any item on the agenda when a public hearing has
been conducted and closed.
Consent Calendar
City of San Bernardino
Request for Council Action
\
Date: March 7, 2018
To: Honorable Mayor and City Council Members
From: Gigi Hanna, City Clerk
Subject: Waive Full Reading of Resolutions and Ordinances
Recommendation:
Waive full reading of Resolutions and Ordinances on the agenda dated March 7, 2018.
3.a
Packet Pg. 11 Attachment: Waive Reading.Report_March 7 (5403 : Waive Full Reading of Resolutions and Ordinances)
Consent Calendar
City of San Bernardino
Request for Council Action
\
Date: March 7, 2018
To: Honorable Mayor and City Council Members
From: Gigi Hanna, City Clerk
Subject: Draft Minutes
Recommendation
Approve the minutes for the Mayor and City Council meeting of February 7, 2018.
4.a
Packet Pg. 12 Attachment: Minutes_February 7 (5404 : City Council Approval of Minutes)
City of San Bernardino
300 North "D" Street
San Bernardino, CA 92418
http://www.sbcity.org
Mayor and City Council of the City of San Bernardino Page 1 Printed 2/8/2018
DRAFT
MINUTES
FOR THE
JOINT REGULAR MEETING OF THE MAYOR AND CITY COUNCIL
OF THE CITY OF SAN BERNARDINO, MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR
AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING
AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO ACTING AS THE HOUSING AUTHORITY, AND THE MAYOR AND CITY COUNCIL OF
THE CITY OF SAN BERNARDINO ACTING AS THE SAN BERNARDINO JOINT POWERS FINANCING
AUTHORITY
WEDNESDAY, FEBRUARY 7, 2018
4:00 PM – CLOSED SESSION 5:00 PM – OPEN SESSION
The Joint Regular Meeting of the Mayor and City Council of the City of San Bernardino
was called to order by Mayor R. Carey Davis at 4:04 PM, Wednesday, February 7,
2018, in the Board Room, 201 North "E" Street, San Bernardino, CA.
Call to Order
Attendee Name Title Status Arrived
Virginia Marquez Council Member, Ward 1 Present 4:00 PM
Benito J. Barrios Council Member, Ward 2 Present 4:00 PM
John Valdivia Council Member, Ward 3 Present 4:00 PM
Fred Shorett Council Member, W ard 4 Absent -----------
Henry Nickel Council Member, Ward 5 Present 4:06 PM
Bessine L. Richard Council Member, Ward 6 Present 4:00 PM
James Mulvihill Council Member, Ward 7 Present 4:00 PM
R. Carey Davis Mayor Present 4:00 PM
Georgeann "Gigi" Hanna City Clerk Present 4:00 PM
Gary D. Saenz City Attorney Present 4:00 PM
Mayor R. Carey Davis
Council Members
Virginia Marquez
Benito Barrios
John Valdivia
Fred Shorett
Henry Nickel
Bessine Richard
Jim Mulvihill
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Joint Regular Meeting Minutes February 7, 2018
Mayor and City Council of the City of San Bernardino Page 2 Printed 2/8/2018
Closed Session
A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Pursuant
to Government Code Section 54956.9(a) and (d)(1):
In re: City of San Bernardino, U.S. Bankruptcy Court Case No. 6:12-bk-28006 MJ
Glen Aire Mobilehome Park Corp., et al v. City of San Bernardino, et al, San
Bernardino County Superior Court Case No. CIVDS 1114110
Quibillah J. Rasheed, et al, v. City of San Bernardino, et al, U.S. District Court
Case No. CV14-00586 DMG (MRWx)
Kiritkumar Patel, et al, v. Mark Scott, et al, San Bernardino County Superior
Court Case No. CIVDS1609316
B. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION
Significant exposure to litigation – Government Code Section 54956.9(d)(2):
Pepe's Towing v. City of San Bernardino
Deputy City Attorney Steven Graham said one item had arisen after the posting
of the agenda and would need to be added to the Close Session agenda.
Approved
Motion: Find that the item arose after the posting of the agenda
and add it to the closed session agenda as “one item.”
RESULT: ADOPTED [5-0]
MOVER: Jim Mulvihill, Council Member, Ward 7
SECONDER: Virginia Marquez, Council Member, Ward 1
AYES: Marquez, Barrios, Valdivia, Richard, Mulvihill
ABSENT: Shorett, Nickel
INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation was led by Chaplain Ray Miller of the San Bernardino Police Department
Chaplain Corps. Kyle Ngo, 6th grade student from Monterey Elementary School, led the
Pledge of Allegiance.
CLOSED SESSION REPORT
City Attorney Saenz reported the following actions took place in Closed Session:
In the matter of Quibillah J. Rasheed, et al, v. City of San Bernardino, et al, U.S.
District Court Case No. CV14-00586 DMG (MRWx, the Council gave settlement
directive by a vote of 6-0, with Councilmember Shorett absent.
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Joint Regular Meeting Minutes February 7, 2018
Mayor and City Council of the City of San Bernardino Page 3 Printed 2/8/2018
In the matter of Kiritkumar Patel, et al, v. Mark Scott, et al, San Bernardino
County Superior Court Case No. CIVDS1609316, the Council gave settlement
directive by a vote of 6-0, with Councilmember Shorett absent.
APPOINTMENTS
1. Appointment of Jodi Buckley – Animal Control Commission – Council
Member John Valdivia
Approved
Motion: Appoint Jodi Buckley to the Animal Control Commission.
RESULT: ADOPTED [6-0]
MOVER: John Valdivia, Council Member, Ward 3
SECONDER: Jim Mulvihill, Council Member, Ward 7
AYES: Marquez, Barrios, Valdivia, Nickel, Richard, Mulvihill
ABSENT: Shorett
2. Appointment of Brenda Bell – Parks and Recreation Commission – Council
Member John Valdivia
Approved
Motion: Appoint Jodi Buckley to the Animal Control Commission.
RESULT: ADOPTED [6-0]
MOVER: John Valdivia, Council Member, Ward 3
SECONDER: Jim Mulvihill, Council Member, Ward 7
AYES: Marquez, Barrios, Valdivia, Nickel, Richard, Mulvihill
ABSENT: Shorett
2A. Election of Mayor Pro Tempore
Mayor Davis asked that the election of Mayor Pro-tem be considered at this point
in the meeting.
RESULT: ADOPTED [6-0]
MOVER: John Valdivia, Council Member, Ward 3
SECONDER: Virginia Marquez, Council Member, Ward 1
AYES: Marquez, Barrios, Valdivia, Nickel, Richard, Mulvihill
ABSENT: Shorett
Approved
Motion: Elect Henry Nickel as Mayor Pro Tem.
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Joint Regular Meeting Minutes February 7, 2018
Mayor and City Council of the City of San Bernardino Page 4 Printed 2/8/2018
RESULT: ADOPTED [6-0]
MOVER: Jim Mulvihill, Council Member, Ward 7
SECONDER: Virginia Marquez, Council Member, Ward 1
AYES: Marquez, Barrios, Valdivia, Nickel, Richard, Mulvihill
ABSENT: Shorett
PRESENTATIONS
3. Certificates of Recognition – Cajon High School Football Team – CIF
Regional Champions (88 certificates) – Council Members Henry Nickel and
Bessine Richard
The Cajon High School Football team received certificates of recognition for
being CIP Regional Champions.
4. Chamber of Commerce & Local Elected Officials Announcements
Colin Strange announced the 110th installation of Chamber of Commerce officers
later in the week and Roxanna Gracia of Assemblywoman Eloise Reyes’ office
spoke about the dedication of the Rosa Park Statue and an upcoming workshop
on statewide commission appointments.
Consent Calendar
Council Member Nickel pulled item 13 and 23. The City Manager asked that Item 14 not
be considered at this meeting, and that Item 20 be continued to February 21.
City Attorney Saenz announced that the minutes for the February Special Meeting had
been updated.
RESULT: ADOPTED [6-0]
MOVER: Jim Mulvihill, Council Member, Ward 3
SECONDER: Henry Nickel, Council Member, Ward 5
AYES: Marquez, Barrios, Valdivia, Nickel, Richard, Mulvihill
ABSENT: Shorett
5. Waive Full Reading of Resolutions and Ordinances
Approved
Motion: Waive full reading of resolutions and ordinances on the
agenda dated February 7, 2018.
RESULT: ADOPTED [6-0]
MOVER: Jim Mulvihill, Council Member, Ward 3
SECONDER: Henry Nickel, Council Member, Ward 5
AYES: Marquez, Barrios, Valdivia, Nickel, Richard, Mulvihill
ABSENT: Shorett
4.b
Packet Pg. 16 Attachment: 02-07-18_Jt_Reg_gh_working2 (5404 : City Council Approval of Minutes)
Joint Regular Meeting Minutes February 7, 2018
Mayor and City Council of the City of San Bernardino Page 5 Printed 2/8/2018
6. City Council Approval of Commercial and Payroll Checks
Approved
Motion: Approve the commercial and payroll checks for
January 2017.
RESULT: ADOPTED [6-0]
MOVER: Jim Mulvihill, Council Member, Ward 3
SECONDER: Henry Nickel, Council Member, Ward 5
AYES: Marquez, Barrios, Valdivia, Nickel, Richard, Mulvihill
ABSENT: Shorett
7. City Council Approval of Draft Minutes
City Attorney Saenz announced that the minutes for February 2, 2018 Special
Meeting had been updated to indicate that Gem Montes supported the item and
that Council Member Valdivia had been present.
Approved
Motion: Approve the minutes of the Mayor and City Council
meetings of January 17, 2018, and Special Meetings
of January 22, 2018 and February 1, 2018.
RESULT: ADOPTED [6-0]
MOVER: Jim Mulvihill, Council Member, Ward 3
SECONDER: Henry Nickel, Council Member, Ward 5
AYES: Marquez, Barrios, Valdivia, Nickel, Richard, Mulvihill
ABSENT: Shorett
8. Amendment No. 1 Change Order to the Jerry Lewis Family Swim Center
Filtration Systems Replacement Project
Approved
Motion: Adopt the resolution.
Reso. 2018-23 Resolution of the Mayor and City Council of the City
of San Bernardino, California, authorizing the City
Manager to execute Amendment Number One to the
existing Vendor Services Agreement with Commercial
Aquatic Services, Inc. for the Jerry Lewis Pool
filtration systems replacement at Perris Hill Park.
4.b
Packet Pg. 17 Attachment: 02-07-18_Jt_Reg_gh_working2 (5404 : City Council Approval of Minutes)
Joint Regular Meeting Minutes February 7, 2018
Mayor and City Council of the City of San Bernardino Page 6 Printed 2/8/2018
RESULT: ADOPTED [6-0]
MOVER: Jim Mulvihill, Council Member, Ward 3
SECONDER: Henry Nickel, Council Member, Ward 5
AYES: Marquez, Barrios, Valdivia, Nickel, Richard, Mulvihill
ABSENT: Shorett
9. Agreement with Condor, Inc. for city-wide CDBG-funded Pool Plastering
and Related Renovations at Various Recreational Facilities
Approved
Motion: Adopt the resolutions.
Reso. 2018 -24 Resolution of the Mayor and City Council of the City
of San Bernardino, California, authorizing the City
Manager to execute a Vendor Service Agreement
with Condor, Inc. for pool re-plastering and related
renovations at various facilities.
RESULT: ADOPTED [6-0]
MOVER: Jim Mulvihill, Council Member, Ward 3
SECONDER: Henry Nickel, Council Member, Ward 5
AYES: Marquez, Barrios, Valdivia, Nickel, Richard, Mulvihill
ABSENT: Shorett
10. Nunez Park Pool Filtration Replacement
Approved
Motion: Adopt the resolution.
Reso. 2018 -25 Resolution of the Mayor and City Council of the City
of San Bernardino, California authorizing the City
Manager to execute a contract between the City of
San Bernardino and California Waters Development
Inc. for the Nunez Park Pool Filtration Replacement.
RESULT: ADOPTED [6-0]
MOVER: Jim Mulvihill, Council Member, Ward 3
SECONDER: Henry Nickel, Council Member, Ward 5
AYES: Marquez, Barrios, Valdivia, Nickel, Richard, Mulvihill
ABSENT: Shorett
4.b
Packet Pg. 18 Attachment: 02-07-18_Jt_Reg_gh_working2 (5404 : City Council Approval of Minutes)
Joint Regular Meeting Minutes February 7, 2018
Mayor and City Council of the City of San Bernardino Page 7 Printed 2/8/2018
11. Allocation of Un-Appropriated Senior Services Trust Account Revenue
(Donations/Fundraisers) to the General Fund Expenditure Accounts for
Senior Services
Approved
Motion: Adopt the resolution.
Reso. 2018 -26 Resolution of the Mayor and City Council of City of
San Bernardino, California, authorizing the Finance
Director to allocate un-appropriated senior services
trust account revenue from Donations and
Fundraisers to the Parks, Recreation, and Community
Services Department General Fund expenditure
accounts for Senior Services in the amount of $9,900.
RESULT: ADOPTED [6-0]
MOVER: Jim Mulvihill, Council Member, Ward 3
SECONDER: Henry Nickel, Council Member, Ward 5
AYES: Marquez, Barrios, Valdivia, Nickel, Richard, Mulvihill
ABSENT: Shorett
12. Annual Purchase Order for Daniels Tire Service
Approved
Motion: Adopt the resolution.
Reso. 2018 -27 Resolution of the Mayor and City Council of the City
of San Bernardino, California, authorizing the
execution of an Agreement and issuance of a
Purchase Order with two single year renewal options
to Daniels Tire Service for procurement of lights,
heavy tires, and service by the Public Works
Department Fleet Division.
RESULT: ADOPTED [6-0]
MOVER: Jim Mulvihill, Council Member, Ward 3
SECONDER: Henry Nickel, Council Member, Ward 5
AYES: Marquez, Barrios, Valdivia, Nickel, Richard, Mulvihill
ABSENT: Shorett
13. Purchase Order increase for City Wide Median Maintenance
Approved
Motion: Adopt the resolution.
Reso. 2018 -28 Resolution of the Mayor and City Council of the City
of San Bernardino, California, authorizing and
4.b
Packet Pg. 19 Attachment: 02-07-18_Jt_Reg_gh_working2 (5404 : City Council Approval of Minutes)
Joint Regular Meeting Minutes February 7, 2018
Mayor and City Council of the City of San Bernardino Page 8 Printed 2/8/2018
directing the Director of Finance to increase R P
Landscape & Irrigation Purchase Order 2018-294,
from a total of $45,760 to $77,798 for City Wide
Median Maintenance.
RESULT: ADOPTED [6-0]
MOVER: Henry Nickel, Council Member, Ward 5
SECONDER: John Valdivia, Council Member, Ward 3
AYES: Marquez, Barrios, Valdivia, Nickel, Richard, Mulvihill
ABSENT: Shorett
14. BNSF Agreement related to the Mount Vernon Avenue Viaduct Replacement
Project over the BNSF Railway Intermodal Yard
This item was removed and not considered, at the request of the City Manager.
15. Amendment No. 4 to the Agreement with AECOM Technical Services, Inc.
for Design of the Mt. Vernon Avenue Overhead Replacement Project
Speaker
Karmel Roe
Approved
Motion: Adopt the resolution.
Reso. 2018 -30 Resolution of the Mayor and City Council of the City
of San Bernardino, California, approving Amendment
No. 4 to an Agreement for Professional Services with
AECOM Technical Services, Inc. for design of the Mt.
Vernon Avenue Overhead Replacement Project,
Bridge No. 54C-0066 and amending the FY 17/18
Budget.
RESULT: ADOPTED [6-0]
MOVER: Jim Mulvihill, Council Member, Ward 7
SECONDER: Henry Nickel, Council Member, Ward 5
AYES: Marquez, Barrios, Valdivia, Nickel, Richard, Mulvihill
ABSENT: Shorett
16. Five-Year Capital Project Needs Analysis (2018/2019 through 2022/2023) for
Measure "I" 2010-2040 Expenditures
Approved
Motion: Adopt the resolution.
Reso. 2018 -31 Resolution of the Mayor and City Council of the City
4.b
Packet Pg. 20 Attachment: 02-07-18_Jt_Reg_gh_working2 (5404 : City Council Approval of Minutes)
Joint Regular Meeting Minutes February 7, 2018
Mayor and City Council of the City of San Bernardino Page 9 Printed 2/8/2018
of San Bernardino, California, adopting the Five-Year
Capital Project Needs Analysis (2018/2019 through
2022/2023) for Measure I 2010-2040 Expenditures.
RESULT: ADOPTED [6-0]
MOVER: Jim Mulvihill, Council Member, Ward 3
SECONDER: Henry Nickel, Council Member, Ward 5
AYES: Marquez, Barrios, Valdivia, Nickel, Richard, Mulvihill
ABSENT: Shorett
17. Five-Year Capital Improvement Program (FY 2017-2022) for Measure I Local
Expenditures
Approved
Motion: Adopt the resolution.
Reso. 2018 -32 Resolution of the Mayor and City Council of the City
of San Bernardino, California, adopting the Five-Year
Measure I Capital Improvement Program (FY 2017-
2022) for Measure I 2010-2040 Expenditures.
RESULT: ADOPTED [6-0]
MOVER: Jim Mulvihill, Council Member, Ward 3
SECONDER: Henry Nickel, Council Member, Ward 5
AYES: Marquez, Barrios, Valdivia, Nickel, Richard, Mulvihill
ABSENT: Shorett
18. Amendment No. 1 to the Memorandum of Understanding with the San
Bernardino County Transportation Authority establishing a Quiet Zone
Approved
Motion: Adopt the resolution.
Reso. 2018 -33 Resolution of the Mayor and City Council of City of
San Bernardino, California, approving Amendment
No. 1 to Memorandum of Understanding No. 17 -
1001586 between the San Bernardino County
Transportation Authority and the City of San
Bernardino for the implementation of a quiet zone on
the Shortway Subdivision.
RESULT: ADOPTED [6-0]
MOVER: Jim Mulvihill, Council Member, Ward 3
SECONDER: Henry Nickel, Council Member, Ward 5
AYES: Marquez, Barrios, Valdivia, Nickel, Richard, Mulvihill
ABSENT: Shorett
4.b
Packet Pg. 21 Attachment: 02-07-18_Jt_Reg_gh_working2 (5404 : City Council Approval of Minutes)
Joint Regular Meeting Minutes February 7, 2018
Mayor and City Council of the City of San Bernardino Page 10 Printed 2/8/2018
19. Street Light Program Update and Sixth Amendment to the Vendor Services
Agreement with Quality Light and Electrical
Mayor Davis announced he had received campaign contributions from this entity,
recused himself and left the dais.
Approved
Motion: Adopt the resolution.
Reso. 2018 -34 Resolution of the Mayor and City Council of the City
of San Bernardino, California, authorizing the
execution of the Sixth Amendment to the Vendor
Services Agreement with Quality Light and Electrical
for street light repair services.
RESULT: ADOPTED [6-0]
MOVER: Jim Mulvihill, Council Member, Ward 3
SECONDER: Henry Nickel, Council Member, Ward 5
AYES: Marquez, Barrios, Valdivia, Nickel, Richard, Mulvihill
ABSENT: Shorett
20. Final Reading – General Plan Amendment 14-09 and Development Code
Amendment (Zoning Map Amendment) 14-18
This item was continued to the February 21, 2018 meeting.
RESULT: ADOPTED [6-0]
MOVER: Jim Mulvihill, Council Member, Ward 3
SECONDER: Henry Nickel, Council Member, Ward 5
AYES: Marquez, Barrios, Valdivia, Nickel, Richard, Mulvihill
ABSENT: Shorett
21. Establish the Pool Maintenance Coordinator Classification and Job
Description
Approved
Motion: Adopt the resolution.
Reso. 2018 -35 Resolution of the Mayor and City Council of the City
of San Bernardino, California, establishing the
classification and approving the job description for
Pool Maintenance Coordinator.
RESULT: ADOPTED [6-0]
MOVER: Jim Mulvihill, Council Member, Ward 3
SECONDER: Henry Nickel, Council Member, Ward 5
AYES: Marquez, Barrios, Valdivia, Nickel, Richard, Mulvihill
ABSENT: Shorett
4.b
Packet Pg. 22 Attachment: 02-07-18_Jt_Reg_gh_working2 (5404 : City Council Approval of Minutes)
Joint Regular Meeting Minutes February 7, 2018
Mayor and City Council of the City of San Bernardino Page 11 Printed 2/8/2018
22. Authorization to Purchase Dell VxRail Server Equipment in an Amount Not
to Exceed $650,000
Approved
Motion: Adopt the resolution.
Reso. 2018 -36 Resolution of the Mayor and City Council of the City
of San Bernardino, California, authorizing the City
Manager to execute an agreement with Dell/EMC,
Inc. for the purchase of data center hardware and
VMware software in an amount not to exceed
$650,000.
RESULT: ADOPTED [6-0]
MOVER: Jim Mulvihill, Council Member, Ward 3
SECONDER: Henry Nickel, Council Member, Ward 5
AYES: Marquez, Barrios, Valdivia, Nickel, Richard, Mulvihill
ABSENT: Shorett
23. Charter Implementation – Ordinances Repealing and Replacing Municipal
Code Chapter 2.17 General Provisions for Boards,
Commissions and Citizen Advisory Committees and 2.76 City
Council Sub-Committees – Final Reading and Adoption
Speaker
Gil Botello
Karmel Roe
Barbara Babcock
Approved
Motion: Adopt the ordinances.
MC-1454 Ordinance of the Mayor and City Council of the City of
San Bernardino, California, amending Chapter 2.17 of
the San Bernardino Municipal Code related to
“Boards, Commissions, and Citizen Advisory
Committees – General.”
MC-1455 Ordinance of the Mayor and City Council of the City of
San Bernardino, California, amending Chapter 2.76 of
the San Bernardino Municipal Code related to “City
Council Sub-Committees.”
RESULT: ADOPTED [6-0]
MOVER: Jim Mulvihill, Council Member, Ward 3
SECONDER: Henry Nickel, Council Member, Ward 5
AYES: Marquez, Barrios, Valdivia, Nickel, Richard, Mulvihill
ABSENT: Shorett
4.b
Packet Pg. 23 Attachment: 02-07-18_Jt_Reg_gh_working2 (5404 : City Council Approval of Minutes)
Joint Regular Meeting Minutes February 7, 2018
Mayor and City Council of the City of San Bernardino Page 12 Printed 2/8/2018
STAFF REPORTS
24. Draft Cannabis Regulations
Speakers
Chris Egger
Aaron Cox
Ivory Skidmore
Mike Edwards
Majid Seraj
Bob Jenkins
Eric Ewell
John Lundt
Deannie Gallaher
Joe Doyle
Mark Estermyer
Karmel Roe
Magie Noir
No action was taken on this item. The council gave directions to staff regarding
draft cannabis regulations.
25. Charter Implementation - Changes to the City of San Bernardino's Boards,
Commissions and Citizen Advisory Committees
Speakers
Suzie Earp
Margaret Worsley
Dorothy Garcia
Robert Porter
Michelle Tacchia
Jim Smith
Deannie Gallaher
Approved
Motion: Introduce for first reading ordinances MC-1458, MC-
1459, MC-1460, MC-1462, and MC-1463; and adopt
the resolutions.
Reso. 2018-37 Resolution of the Mayor and City Council of the City of
San Bernardino, California, establishing the Parks,
Recreation, and Community Services Commission.
Reso, 2018-38 Resolution of the Mayor and City Council of the City
of San Bernardino, California, repealing Resolution
No. 2000-364 establishing the Food Policy Council.
4.b
Packet Pg. 24 Attachment: 02-07-18_Jt_Reg_gh_working2 (5404 : City Council Approval of Minutes)
Joint Regular Meeting Minutes February 7, 2018
Mayor and City Council of the City of San Bernardino Page 13 Printed 2/8/2018
RESULT: ADOPTED [4-2]
MOVER: Henry Nickel, Council Member, Ward 5
SECONDER: Jim Mulvihill, Council Member, Ward 7
AYES: Marquez, Nickel, Richard, Mulvihill
NOES: Barrios, Valdivia
ABSENT: Shorett
26. Election of Mayor Pro Tempore
This item was hear under Appointments, but is listed here to be consistent with
the numbering system on the published agenda.
Approved
Motion: Elect Henry Nickel as Mayor Pro Tem.
RESULT: ADOPTED [6-0]
MOVER: Jim Mulvihill, Council Member, Ward 7
SECONDER: Virginia Marquez, Council Member, Ward 1
AYES: Marquez, Barrios, Valdivia, Nickel, Richard, Mulvihill
ABSENT: Shorett
27. U.S. Conference of Mayors
Mayor Davis gave a report about his attendance t the U.S. Conference of
Mayors.
PUBLIC HEARING
28. U.S. Veterans Social Service Housing Facility – Appeal 17-01 for
Conditional Use Permit 17-14 and Minor Exception 17-06
The public hearing of Appeal 17-01, the Planning Commission’s denial of
Conditional Use Permit 17-14 and Minor Exception 17-06, was continued to
February 21, 2018.
29. Public Comments for Items Not on the Agenda
Susan Longville, San Bernardino, thanked the Council, on behalf of San
Bernardino Valley Municipal Water District for approving the settlement for the
Sterling Natural Resources Center and Clean Water Factory. She thanked the
City Manager for her guest editorial about how local governments should work
together.
Jack Freeman, San Bernardino, spoke about a community social and religious
celebration at Glen Helen Amphitheater the following week.
30. Items to be Referred to CITY Council Committees
31. Announcements by Mayor, CITY Council and Executive Staff
4.b
Packet Pg. 25 Attachment: 02-07-18_Jt_Reg_gh_working2 (5404 : City Council Approval of Minutes)
Joint Regular Meeting Minutes February 7, 2018
Mayor and City Council of the City of San Bernardino Page 14 Printed 2/8/2018
32. Adjournment
The meeting adjourned at 10:36 p.m. The next joint regular meeting of the Mayor
and City Council and the Mayor and City Council Acting as the Successor
Agency to the Redevelopment Agency will be held on Wednesday, February 21,
2018 in the Council Chamber located at 201 North E Street, San Bernardino,
California 92401. Closed Session will begin
The next joint regular meeting of the Mayor and City Council and the Mayor and
City Council Acting as the Successor Agency to the Redevelopment Agency will
be held on Wednesday, February 21, 2018 at 4:00 p.m. in the Council
Chamber located at 201 N. E Street, San Bernardino, California 92401. Closed
Session will begin at 4:00 p.m. and Open Session will begin at 5:00 p.m.
By: __________________________
Georgeann “Gigi” Hanna, CMC
City Clerk
4.b
Packet Pg. 26 Attachment: 02-07-18_Jt_Reg_gh_working2 (5404 : City Council Approval of Minutes)
Consent Calendar
City of San Bernardino
Request for Council Action
Date: March 7, 2018
To: Honorable Mayor and City Council Members
From: Andrea M. Miller, City Manager
By: Brent A. Mason, Finance Director
Subject: Approval of Commercial and Payroll Checks
Recommendation
Approve the commercial and payroll checks for February 2018.
Background
Completed commercial and payroll check registers are submitted to the Mayor and City
Council for approval. This happens on a regular basis, typically every meeting for the
most recently completed check registers.
The detailed warrant registers are available on the City Website, and are updated
weekly by Accounts Payable. The registers may be accessed by copying the following
link into an internet browser: http://sbcity.org/cityhall/finance/warrant_register.asp
Discussion
The following check registers are being presented for approval:
January 31, 2018 2017/18 (Register #36) $2,995.14
January 31, 2018
February 01, 2018
February 08, 2018
February 15, 2018
2017/18 (Register #37)
2017/18 (Register #38)
2017/18 (Register #39)
2017/18 (Register #40)
15,826.00
860,688.70
1,463,470.81
1,206,016.70
Total commercial check demands: $3,548,997.35
Gross Payroll
Bi-Weekly for 2/8/18 $2,260,597.09
Monthly for 2/15/18 8,150.00
Total Payroll Demands: $2,268,747.09
5.a
Packet Pg. 27 Attachment: Finance.Commercial Checks Payroll Report -Mar 07, 2018 (5405 : City Council Approval of Commercial and Payroll Checks)
Fiscal Impact
Amounts noted in the check registers have no further fiscal impact. Amounts were paid
consistent with existing budget authorization and no further budgetary impact is
required.
Conclusion
It is recommended that the attached check registers be approved by the Mayor and City
Council.
Attachments
Attachment 1 – Commercial checks for (Register #36)
Attachment 2 – Commercial checks for (Register #37)
Attachment 3 – Commercial checks for (Register #38)
Attachment 4 – Commercial checks for (Register #39)
Attachment 5 – Commercial checks for (Register #40)
Attachment 6 – Payroll checks for February 2018
Ward:
Synopsis of Previous Council Actions:
5.a
Packet Pg. 28 Attachment: Finance.Commercial Checks Payroll Report -Mar 07, 2018 (5405 : City Council Approval of Commercial and Payroll Checks)
5.b
Packet Pg. 29 Attachment: Finance.Commercial Checks & Payroll. Register #36 (5405 : City Council Approval of Commercial and Payroll Checks)
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Consent Calendar
City of San Bernardino
Request for Council Action
Date: March 7, 2018
To: Honorable Mayor and City Council Members
From: Andrea Miller, City Manager
By: Jim Tickemyer, Director
Mitch Assumma, Community Recreation Manager
Subject: Agreement with USA Shade for the design, engineering and
installation of the CBDG-funded Shade Structure at the Jerry
Lewis Family Swim Center
Recommendation
Adopt a Resolution of the Mayor and City Council of the City of San Bernardino,
California, authorizing the City Manager to execute a Vendor Service Agreement with
USA Shade, for the design, engineering and installation of a Shade Structure at the
Jerry Lewis Family Swim Center.
Background
The Parks, Recreation and Community Services Department operates the Jerry Lewis
Family Swim Center. This diverse aquatic facility has a waterslide, rain forest, wading
pool, and main pool. Due in part to the multiple water features offered, Jerry Lewis
Family Swim Center is consistently the most highly attended aquatics facility in the city.
The pool deck located behind the main pool offers no protection from the damaging UV
rays for patrons wishing to utilize the facility. At the present time, there is no shade
coverage available to the patrons utilizing the facility. Conceptual plans of the Center’s
renovation in 1993 included a large area of shade protection, although the intent was
never realized.
Building a shade structure on the pool deck will offer patrons outside of the water, relief
and protection from the direct sun. Such amenities are commonplace features at
waterpark environments. With temperatures in the Southern California summer months
that well exceed the 100-degree mark and the growth in sun-related skin cancers and
blemishes, the installation of these covers are long overdue.
Discussion
On January 2, 2018, a formal bid process was initiated to solicit bids for the design,
engineering and installation of a Shade Structure at Jerry Lewis Family Swim Center
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Project on Request for Quote No. F-17-40. Notices were posted on the City’s website
and printed in the San Bernardino County Sun Newspaper.
A mandatory pre-proposal and job walk was held on January 9, 2018 at 10:00 a.m., at
the Jerry Lewis Family Swim Center, 831 E. Highland Ave., San Bernardino, CA 92404.
Five (5) vendors attended the job walk. Vendors were encouraged to submit up to two
(2) designs. There were two (2) vendor bid responses that provided two distinct
proposals each, and none were located within the City of San Bernardino. Bids were
opened publicly on January 31, 2018 at 3:00 p.m.
The results of the bid opening are as follows:
NAME OF BIDDER CITY BID AMOUNT DESIGN
USA Shade Orange, CA $135,119.60 2
USA Shade Orange, CA $190,688.00 1
Ortco, Inc. Orange, CA $192,650.00 1
Ortco, Inc. Orange, CA $194,560.00 2
After a complete review of the four (4) sealed competitive bids and verification of
mathematical calculations and certifications; along with performance history, staff has
determined that USA Shade design option #2, is the lowest and best bid which meets
the minimum requirements of the bid specifications and guidelines. Staff recommends
that the contract be awarded to USA Shade.
Environmental Impact
The National Environmental Policy Act (NEPA) and California Environmental Quality Act
(CEQA) requirements will be addressed prior to the release of funds for the projects and
programs to be funded.
Fiscal Impact
The total cost to complete the Shade Structure at Jerry Lewis Family Swim Center
Project is $148,631.56, which includes a 10% contingency amount of $13,511.96.
Funds for this activity (Shade Structure at Jerry Lewis Family Swim Center) in the
amount of $195,000.00 are provided by the U.S. Department of Housing and Urban
Development through the City’s CDBG Program and were approved by the City Council
at the January 17, 2018 Mayor and City Council Meeting through adoption of the FY
2017/18 Substantial Amendment. The Parks, Recreation and Community Services
Department have sufficient funding in the FY 2017/18 CDBG budget for this project.
Conclusion
Adopt a Resolution of the Mayor and City Council of the City of San Bernardino,
California, authorizing the City Manager execute a Vendor Service Agreement with USA
Shade, for the design, engineering and installation of a Shade Structure at the Jerry
Lewis Family Swim Center.
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Attachments
Attachment 1 – Resolution – Shade Structure at Jerry Lewis Family Swim Center;
Exhibit “A” Vendor Service Agreement – USA Shade
Attachment 2 – Bid Documents – RFQ F-17-40 – Shade Structure at Jerry Lewis Family
Swim Center.
Ward: 2
Synopsis of Previous Council Actions:
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RESOLUTION NO._______
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING THE CITY MANAGER TO EXECUTE A VENDOR
SERVICE AGREEMENT WITH USA SHADE FOR THE DESIGN, ENGINEERING
AND INSTALLATON OF A SHADE STRUCTURE AT THE JERRY LEWIS FAMILY
SWIM CENTER
WHEREAS, on January 17, 2018, $195,000.00 in Community Development Block
Grant (CDBG) funding was awarded to the Parks, Recreation and Community Services
Department for the design, engineering and installation of a Shade Structure at the Jerry Lewis
Family Swim Center, through the approval of the substantial amendment of the FY 2017/18
HUD Annual Action Plan; and,
WHEREAS, on January 2, 2018, a formal bid was solicited by Parks, Recreation and
Community Services Department and notices were posted on the City’s website and printed in
the San Bernardino County Sun Newspaper; and,
WHEREAS, the bids were opened publicly on January 31, 2018 at 3:00 p.m.; and,
WHEREAS, USA Shade located at 1085 N. Main Street, Suite C, Orange, California
92867, was determined to have submitted the lowest and most responsive bid for the design,
engineering and installation of a Shade Structure at the Jerry Lewis Family Swim Center
pursuant to RFQ F-17-40.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. A contract is hereby awarded to USA Shade in an amount not to exceed
$148,631.56, which includes a 10% contingency amount of $13,511.96.
SECTION 2. All other bids, therefore, are hereby rejected.
SECTION 3. The City Manager, or her designee, is hereby authorized and directed to
execute a Vendor Service Agreement with USA Shade, a copy of which is attached hereto and
incorporated herein by reference as though set forth at length and marked as Exhibit “A”.
SECTION 4. The Director of Finance, or his designee, is directed to issue a Purchase
order to USA Shade for a total amount not to exceed $148,631.56, which includes a
contingency amount of $13,511.96. The Purchase Order shall reference this Resolution, state
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that it is for the design, engineering and installation of a Shade Structure at the Jerry Lewis
Family Swim Center, and incorporate the terms and conditions of the Agreement.
SECTION 5. This contract and any amendment or modifications thereto shall not
take effect or become operative until fully signed and executed by the parties and no party
shall be obligated hereunder until the time of such full execution. No oral agreements,
amendments, modifications, or waivers are intended or authorized and shall not be implied
from any course of conduct of any party.
SECTION 6. The authorization to execute this contract is rescinded if the parties to
the contract fail to execute it within sixty (60) days of passage of this Resolution.
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING THE CITY MANAGER TO EXECUTE A VENDOR
SERVICE AGREEMENT WITH USA SHADE FOR THE DESIGN, ENGINEERING
AND INSTALLATON OF A SHADE STRUCTURE AT THE JERRY LEWIS FAMILY
SWIM CENTER
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
and City Council of the City of San Bernardino at a ______________________________
meeting thereof, held on the _____ day of ________________, 2018, by the following vote,
to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, CMC, City Clerk
The foregoing Resolution is hereby approved this _____ day of ________________, 2018.
R. Carey Davis, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz, City Attorney
By:
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VENDOR SERVICE AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO,
CALIFORNIA AND USA SHADE FOR THE DESIGN, ENGINEERING AND INSTALLATION
OF A SHADE STRUCTURE AT THE JERRY LEWIS FAMILY SWIM CENTER
This Vendor Service agreement is entered into this ____ day of ______, 2018 (“Effective
Date”), by and between USA Shade (“VENDOR”) and the City of San Bernardino, a charter city
and municipal corporation (“CITY”).
WITNESSETH:
WHEREAS, the City operates an aquatics facility at Perris Hill Park, also known as the Jerry
Lewis Family Swim Center, located at 831 E. Highland Ave, San Bernardino, California 92404 (hereafter
referred to as “the Swim Center”); and
WHEREAS, the Swim Center is in need of a shade structure, and the Mayor and City Council of
the CITY have determined that it is advantageous and in the best interest of the City to contract for the
construction of the shade structure at the Swim Center; and
WHEREAS, after soliciting the formal bid process for the design, engineering and installation of
the shade structure from available vendors, CITY has determined that VENDOR can best meet CITY’s
needs; and
WHEREAS, no official or employee of the CITY has a financial interest, within the provision of
California Government Code § 1090-1092, in the subject matter of this Agreement.
NOW, THEREFORE, the parties hereto agree as follows:
1. SCOPE OF SERVICES.
For the remuneration stipulated, City hereby engages the services of Vendor to construct
a shade structure at the Swim Center as set forth in CITY’s RFQ F-17-40 (dated January 2, 2018),
attached hereto, and incorporated herein as Exhibit “B” (“Services”). Services will not be deemed
complete until CITY confirms, in writing, that all products and services are in place. VENDOR shall
remove and dispose of all rubbish, debris, waste, dust, or surplus materials that accumulate through
the course of this Agreement. CITY may elect if required, upon written notice to VENDOR, to
perform cleanup, the cost for which will be deducted from the Agreement amount.
2. COMPENSATION AND EXPENSES.
2.1 For the services delineated above, the CITY, upon presentation of an invoice, shall pay
VENDOR an amount of $135,119.60, pursuant to the rates set forth in VENDOR’s
response to RFQ 17-40, attached hereto and incorporated herein as Exhibit “B”.
2.2 No other expenditures made by VENDOR shall be reimbursed by CITY.
3. TERM; TERMINATION.
The Term of this Agreement shall begin on the Effective Date through December 31,
2018, or the completion of the Services defined in Section 1 of this Agreement. Services pursuant to
this Agreement shall begin upon execution of the Agreement, and must be fully completed within 120
days, but no later than December 31, 2018. This Agreement may be terminated at any time by thirty
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(30) days’ written notice by either party. The terms of this Agreement shall remain in force unless
amended by written agreement of the parties prior to the expiration of the Agreement.
4. INDEMNITY.
To the fullest extent permitted by law, VENDOR, shall defend (with legal counsel
reasonably acceptable to CITY), indemnify, protect, and hold harmless CITY and its elected officials,
officers, employees, agents, and representatives (Indemnified Parties) from and against any and all
claims, losses, costs, damages, injuries including, without limitation, injury to or death of an
employee of VENDOR or its subcontractors), expense, and liability of every kind, nature and
description (including, without limitation, incidental and consequential damages, court costs, and
litigation expenses and fees of expert consultants or expert witnesses incurred in connection therewith
and cost of investigation) that arise out of, pertain to, or relate to, directly or indirectly, in whole or in
part, any goods provided or performance of services under this Agreement by VENDOR, any
subcontractor, anyone directly or indirectly employed by either of them, or anyone that either of them
control. VENDOR’s duties to defend, indemnify, protect, and hold harmless shall not include any
claims or liabilities arising from the sole negligence or willful misconduct of the Indemnified Parties.
The VENDOR’s indemnification obligation applies to the CITY’s “active” as well as “passive”
negligence, but does not apply to the CITY’s “sole negligence” or “willful misconduct” within the
meaning of Civil Code Section 2782.
5. INSURANCE.
VENDOR shall maintain in effect policies of comprehensive public general, and
automobile liability insurance, in the amount of $1,000,000.00 combined single limit, and statutory
worker’s compensation coverage, and shall file copies of said policies with the CITY’s Risk Manager
prior to commencing the Services provided by this Agreement. City shall be set forth as an additional
named insured in each policy of insurance provided hereunder. The Certificate of Insurance furnished
to the CITY shall require the insurer to notify CITY of any change or termination in the policy.
5.1 Minimum Scope and Limits of Insurance. VENDOR shall obtain and maintain during the
term of this Agreement all of the following insurance coverages:
(a) Commercial general liability, including premises-operations, products/completed
operations, broad form property damage, blanket contractual liability, independent
contractors, personal injury with a policy limit of not less than One Million Dollars
($1,000,000.00), combines single limits, per occurrence and aggregate
(b) Automobile Liability for owned vehicles, hired, and non-owned vehicles, with a
policy limit of not less than One Million Dollars ($1,000,000.00) combined single
limits, per occurrence and aggregate.
(c) Workers compensation insurance as required by the State of California.
5.2 Certificates of Insurance. VENDOR shall provide to CITY certificates of insurance
showing the insurance coverages and required endorsements described above, in a form
and content approved by the CITY, prior to performing any services under this
Agreement.
5.3 Non-Limiting. Nothing in this Section shall be construed as limiting in any way, the
indemnification provision contained in this Agreement, or the extent to which VENDOR
may be held responsible for payments of damages to persons or property.
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6. INCONSISTENT OR CONFLICTING TERMS.
This scope of the entire agreement between the parties is described in the agreement
Documents. The Agreement Documents are comprised of the RFQ F-17-40 and any other solicitation
document (Solicitation); the successful bid or proposal; the letter awarding the Agreement to
VENDOR; the CITY’s written acceptance of exceptions or clarifications to the Solicitation, if any;
and this Agreement including any exhibits hereto. In resolving conflicts resulting from errors or
discrepancies in any of the Agreement Documents, the terms of this Agreement shall prevail over any
inconsistent or conflicting provision in any other Agreement Document, including exhibits to this
Agreement.
7. NON-DISCRIMINATION.
In the performance of this Agreement and in the hiring and recruitment of employees,
VENDOR shall not engage in, nor permit its officers, employees or agents to engage in,
discrimination in employment of persons because of their race, religion, color, national origin,
ancestry, age, mental or physical disability, medical condition, marital status, sexual gender or sexual
orientation, or any other status protected by law.
8. INDEPENDENT CONTRACTOR.
VENDOR, its officers, agents, and employees, while performing Services pursuant to this
Agreement will be acting as independent contractors and not agents or employees of the CITY.
VENDOR is responsible for and must secure, at its own expense, any and all payment of Income Tax,
Social Security, State Disability Insurance Compensation, Unemployment Compensation, and other
payroll deductions for VENDOR and its officers, agents, and employees, and a business license, if
any are required, in connection with the services to be performed hereunder. This Agreement does not
create an agency, employee partnership, or joint venture between the CITY and VENDOR.
9. BUSINESS REGISTRATION CERTIFICATE AND OTHER REQUIREMENTS.
Any company doing business within the CITY is required to obtain a Business
Registration Certificate pursuant to Title 5 of the Municipal Code and must provide a copy of its
Business Registration Certificate to the CITY before commencing the Services to be provided by this
Agreement. VENDOR warrants that it possesses or shall obtain, and maintain a Business
Registration and any other licenses, permits, qualifications, insurance, or any other requirement
legally required of VENDOR to conduct its business in the CITY.
10. PREVAILING WAGE AND LABOR CODE REQUIREMENTS.
VENDOR is aware of the requirements of California Labor Code Section 1720, et seq.,
and 1770, et seq., as well as California code of Regulations, Title 8, Section 16000, et seq.,
(Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of
other requirements on certain “public works” and maintenance” projects. If the Services under this
Agreement are performed as part of an applicable “public works” or “maintenance” project, as
defined by the Prevailing Wage Laws, and if the total compensation is $ 1,000 or more, VENDOR
agrees to comply fully with such prevailing Wage Laws.
11. NOTICES.
Any notices to be given pursuant to this Agreement shall be deposited with the United
States Postal Service, postage prepaid, and addressed as follows:
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TO THE CITY: TO THE VENDOR:
Parks, Recreation & Community USA Shade
Services Department 1085 N. Main St., Suite C
290 N. D Street Orange, CA 92867
San Bernardino, CA 92401 Telephone: (949) 470-0152
Telephone: (909) 384-5233
12. ATTORNEYS’ FEES.
In the event that litigation is brought by any party in connection with this Agreement, the
prevailing party shall be entitled to recover from the opposing party all costs and expenses, including
reasonable attorney’s fees, incurred by prevailing party in the exercise of any of its rights or remedies
hereunder or the enforcement of any of the terms, conditions, or provisions hereof the costs, salary,
and expenses of the City Attorney and members of his office in enforcing this Agreement on behalf of
the LICENSEE shall be considered as “attorneys’ fees” for the purposes of this Agreement.
13. NO THIRD PARTY BENEFICIARIES.
Except as may be specifically set forth in this Agreement, none of the provisions of this
Agreements are intended to benefit any third party not specifically referenced herein. No party other
than CITY and VENDOR shall have the right to enforce any of the provisions of this Agreement.
14. ASSIGNMENT.
VENDOR shall not voluntarily or by operation of law assign, transfer, sublet, or
encumber all or any part of the VENDOR’s interest in this Agreement with CITY’s prior written
consent. Any attempted assignment, transfer, subletting, or encumbrance shall be void and shall
constitute a breach of this Agreement and cause for the termination of this Agreement. Regardless of
City’s consent, no subletting or assignment shall release VENDOR of VENDOR’s obligation to
perform all other obligations to be performed by VENDOR hereunder for the term of this Agreement.
15. VENUE.
The venue for any suit concerning solicitations or the Agreement, the interpretation of
application of any of its terms and conditions, or any related disputes shall be in the Superior Court
for the State of California, County of San Bernardino. The aforementioned choice of venue is
intended by the parties to be mandatory and not permissive in nature.
16. SUCCESSORS AND ASSIGNS.
This Agreement and all rights and obligations created by this Agreement shall be in force
and effect whether or not any parties to the Agreement have been succeeded by another entity, and all
rights and obligations created by this Agreement shall be vested and binding on any party’s successor
in interest.
17. HEADINGS.
The subject headings of the sections of this Agreement are included for the purposes of
convenience only and shall not affect the construction or the interpretation of any of its provisions.
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18. SEVERABILITY.
The unenforceability, invalidity, or illegality of any provision of this Agreement shall not
render any other provision of this Agreement unenforceable, invalid, or illegal.
19. WAIVER.
No failure of either CITY or VENDOR to insist upon the strict performance by the other
of any covenant, term or condition of this Agreement, nor any failure to exercise any right or remedy
consequent upon a breach of such covenant, term, or condition of this Agreement, shall constitute a
waiver of any such breach of such covenant, term, or condition. No waiver of any breach shall affect
or alter this Agreement, and each and every covenant, term, or condition. No waiver of any breach
shall affect or alter this Agreement, and each and every covenant, condition, and term hereof shall
continue in full force and effect without respect to any existing or subsequent breach.
20. PUBLIC RECORDS DISCLOSURE; CONFIDENTIALITY
20.1 All information received by the CITY from the VENDOR or any source concerning this
Agreement, including the Agreement itself, may be treated by the CITY as public information
subject to disclosure under the provisions of the California Public Records Act, Government
Code Section 6250 et seq. (the “Public Records Act”). VENDOR understands that although all
materials received by the CITY in connection with this Agreement are intended for the exclusive
use of the CITY, they are potentially subject to disclosure under the provisions of the Public
Records Act. In the event a request for disclosure of any, part, or all of any information with the
VENDOR has reasonably requested CITY to hold in confidence is made to the CITY, the CITY
shall notify the VENDOR of the request and shall thereafter disclose the requested information
unless the VENDOR within five (5) days of receiving notice of the disclosure request, requests
nondisclosure, provides CITY a legally sound basis for the nondisclosure, and agrees to
indemnify, defend, and hold the CITY harmless in any/all actions brought to require disclosure.
VENDOR waives any and all claims for damages, lost profits, or other injuries of any and all
kinds in the event CITY fails to notify VENDOR of any such disclosure request and/or release
any information concerning this Agreement received from the VENDOR or any other source.
20.2 Confidentiality. VENDOR acknowledges that the premises will be used by CITY for the
processing and storage of confidential information protected from unlawful access and disclosure
by federal, state, and local laws. CITY and its officers, agents, volunteers, and employees agree to
comply with relevant federal, state, and local laws pertaining to the security and protection of
such confidential information while on the premises. VENDOR agrees that it will prevent any
unlawful access to or disclosure of the confidential information by VENDOR, its officers, agents,
volunteers, employees, and contractors. VENDOR agrees that all entities with which VENDOR
contracts to provide services on the premises will prevent any unlawful access or disclosure of the
confidential information, and that said entities will agree to the same in writing. VENDOR
acknowledges that any unlawful access to or disclosure of confidential information may result in
the imposition of civil and criminal sanctions.
21. ENTIRE AGREEMENT; MODIFICATION.
This Agreement contains all the agreements of the parties hereto with respect to any
matter covered in this Agreement, and no prior agreement or understanding pertaining to such matter
shall be effective for any purpose. This Agreement specifically supersedes any prior agreement
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between the parties related to the Property or Premises and the Parties hereby release each other from
any and all claims or obligations arising thereunder. This Agreement may be modified or amended
only by a written instrument executed by all parties to this Agreement.
IN WITNESS THEREOF, the parties hereto have executed this Agreement on the day and date
set forth below.
CITY OF SAN BERNARDINO VENDOR:
By: ____________________________ by: ___________________________
Andrea M. Miller, City Manager (Name)
Date: __________________________ Title: __________________________
Date: __________________________
Approved as to Legal Form:
GARY D. SAENZ, City Attorney
City of San Bernardino
By: ______________________________
Date: ____________________________
ATTEST:
By: ______________________________
Georgeann Hanna, CMC, City Clerk
6.c
Packet Pg. 132 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.AGREEMENT (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 133 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 134 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 135 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 136 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 137 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 138 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 139 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 140 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 141 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 142 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 143 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 144 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 145 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 146 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 147 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 148 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 149 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 150 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 151 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 152 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 153 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 154 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 155 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 156 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 157 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 158 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 159 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 160 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 161 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 162 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 163 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 164 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 165 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 166 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 167 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 168 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 169 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 170 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 171 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 172 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 173 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 174 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 175 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 176 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 177 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 178 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 179 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 180 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 181 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 182 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 183 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 184 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 185 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 186 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 187 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 188 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 189 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 190 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 191 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 192 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 193 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 194 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 195 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 196 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 197 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 198 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 199 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 200 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 201 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 202 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 203 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 204 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 205 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 206 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 207 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 208 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 209 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 210 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 211 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 212 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 213 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 214 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 215 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 216 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 217 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 218 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 219 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 220 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 221 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 222 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 223 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 224 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 225 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 226 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 227 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 228 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 229 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 230 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 231 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 232 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 233 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 234 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 235 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 236 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 237 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 238 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 239 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 240 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 241 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 242 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 243 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 244 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 245 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 246 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 247 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 248 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 249 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 250 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 251 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 252 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 253 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 254 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 255 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 256 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 257 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 258 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 259 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 260 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 261 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 262 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 263 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 264 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 265 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 266 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 267 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 268 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 269 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 270 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 271 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 272 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 273 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 274 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 275 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 276 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 277 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 278 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 279 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 280 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 281 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 282 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 283 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 284 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 285 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 286 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 287 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 288 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
6.d
Packet Pg. 289 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
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Packet Pg. 290 Attachment: PR.Agreement with USA Shade for Jerry Lewis Swim Center.ATTACHMENT 2 BID DOCS (5406 : Agreement with USA Shade for a Shade
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Consent Calendar
City of San Bernardino
Request for Council Action
Date: March 7, 2018
To: Honorable Mayor and City Council Members
From: Andrea M. Miller, City Manager
By: Equino M. Thomas
Subject: Agreement with Graves & King LLP for Hearing Officer
Services
Recommendation
Resolution of the Mayor and City Council of the City of San Bernardino, California,
authorizing the City Manager to execute a Professional Services Agreement between
the City of San Bernardino and Graves & King LLP for Hearing Officer Services.
Background
The City maintains a rotation of independent hearing officers qualified to hear
Administrative Citation cases and Administrative Civil Penalties (ACP) to address
violations of the San Bernardino Municipal Code (SBMC). Jones and Mayer and a State
appointed hearing officer have been hearing cases for San Bernardino for the last three
years. State hearing officers have been hearing cases for San Bernardino since mid-
2017 and due to State Hearing Officers not having sufficient time, a backlog of cases
has developed.
To be in compliance with SBMC Section 9.93.090 and the 2002 California Supreme
Court decision (Haas v. County of San Bernardino, 27 Cal. 4th 1017), it is necessary for
the City to retain new hearing officer services to allow for the rotation of hearing officers.
Pursuant to the California Supreme Court decision in Haas, the City has determined
that the term of an Administrative Hearing Officer should be three years with the inability
to be hired until there has been a one year break between agreements. As such, a
Request for Proposals (RFP) for Hearing Officer services was advertised in the San
Bernardino Sun newspaper, on the City’s website, SB Connect, and with the San
Bernardino Area Chamber of Commers. Notice was also sent to 30 local attorneys.
The City received five qualified proposals from professional law firms. The written
proposals were evaluated by a selection committee comprised of City staff representing
the Police Department and City Manager’s Office and then follow-up interviews were
held with the top three proposers. Graves & King LLP was selected as the top
candidate by the selection committee. The law firm is experienced in municipal law
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and are willing to conduct fair and impartial hearings on behalf of the City. Additionally,
Graves & King have previous experience providing Hearing Officer services to the City
of San Bernardino.
Fiscal Impact
Compensation at the rate of One Hundred Ninety Five Dollars ($195.00) per hour until
such time as the Agreement terminates. In no event shall the City pay more than
$600,000 over the three year period of the agreement without further authorization from
the City Council. The actual cost to the City each year depends on the number of hours
hearing officer services are provided. Sufficient funds have been budgeted for the
remainder of FY 2017/18.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, adopt
the Resolution, authorizing the execution of an Agreement with Graves & King LLP for
Hearing Officer Services.
Attachments
Attachment 1 – Resolution
Attachment 2 - Exhibit A- Hearing Officer Services Agreement
Ward: All
Synopsis of Previous Council Actions:
December 07, 2015 - - the Mayor and City Council adopted Resolution No. 2015-262 authorizing
Amendment No. 1 to the agreement with Jones and Mayer for Hearing Officer Services
On August 3, 2015 - the Mayor and City Council adopted Resolution No. 2015-160 authorizing an
agreement with Jones and Mayer for Hearing Officer Services.
On July 2, 2012 the Mayor and City Council adopted Resolution No. 2012-187 authorizing an agreement
with Graves & King LLP for Hearing Officer Services.
On December 19, 2007 - the Mayor and City Council adopted Resolution No. 2007-475 authorizing an
agreement with William Holt for Hearing Officer services.
September 6, 2006 - the Mayor and City Council adopted Resolution No. 2006-304 authorizing an
agreement with Mandel E Himelstein for Hearing Officer services.
November 7, 2005 - the Mayor and City Council adopted Resolution No. 2006-304 authorizing an
agreement with William Holt for Hearing Officer services.
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RESOLUTION NO.______
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE
A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN
BERNARDINO AND GRAVES & KING LLP FOR HEARING OFFICER SERVICES
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
SECTION 1. That the City Manager is hereby authorized and directed to execute on
behalf of the City of San Bernardino, an Agreement between Graves & King LLP and the City of
San Bernardino, for hearing officer and administrative law officer services under the San
Bernardino Municipal Code. A copy of the Agreement is attached hereto marked Exhibit “A”
and incorporated herein by reference as fully as though set forth at length.
SECTION 2. The authorization to execute the above-referenced Agreement is hereby
rescinded if both parties fail to execute it within sixty (60) days of the passage of this Resolution.
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE
A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN
BERNARDINO AND GRAVES & KING LLP FOR HEARING OFFICER SERVICES
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
City Council of the City of San Bernardino at a ____________ meeting thereof, held on the
_______ day of __________________, 2018, by the following vote, to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, City Clerk
The foregoing Resolution is hereby approved this ________ day of ______________, 2018.
R. Carey Davis, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz, City Attorney
By: _________________________
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HEARING OFFICER SERVICES AGREEMENT BETWEEN
THE CITY OF SAN BERNARDINO AND
GRAVES AND KING LLP
This Hearing Officer Services Agreement (the “Agreement”) is entered into this 15th day of
March, 2018 (“EFFECTIVE DATE”), BY AND BETWEEN:
the City of San Bernardino, a Charter City organized under the laws of the State of
California, with an address of 290 N. “D” Street, San Bernardino, California (the
“CITY”);
AND,
Graves & King LLP, a law firm in the State of California with an address of 3610
Fourteenth Street, Second Floor in Riverside, California (the “HEARING OFFICER”)
(individually CITY or HEARING OFFICER may be referred to as a “PARTY” and
collectively CITY and HEARING OFFICER may be referred to as the “PARTIES”).
WITNESSETH:
WHEREAS, the Mayor and City Council of CITY have determined that it is advantageous and
in the best interest of the CITY to contract for Hearing Officer Services; and,
WHEREAS, CITY and HEARING OFFICER desire to contract for Hearing Officer Services
and desire to set forth their rights, duties, and liabilities in connection with their performance;
and,
WHEREAS, HEARING OFFICER is a law firm experienced in municipal law and presiding
over administrative hearings, and is qualified and willing to conduct fair and impartial hearings
on behalf of CITY.
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions
contained herein, the PARTIES hereby agree as follows:
1. SCOPE OF SERVICES.
The HEARING OFFICER shall perform the duties of the Administrative Hearing Officer as
described in the San Bernardino Municipal Code, including acting as a hearing officer to conduct
evidentiary hearings, preparing findings, and preparing final decisions on behalf of CITY for
Administrative Civil Penalties, Administrative Citations, Nuisance Abatement, and other
hearings as necessary. The HEARING OFFICER shall voluntarily disqualify himself from any
case in which the HEARING OFFICER cannot accord a fair and impartial hearing or
consideration. The HEARING OFFICER’s authority to hear and consider the matters before the
HEARING OFFICER shall be limited only to those matters within the HEARING OFFICER’S
subject matter jurisdiction. The HEARING OFFICER shall conduct the hearings and consider
the evidence independently, and shall not be under the authority, director, or discretion of any
HEARING OFFICER SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND
GRAVES & KING LLP
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officer or employee of CITY who has served as an investigator, prosecutor, or advocate in the
proceeding or its preadjudicative stage. The HEARING OFFICER shall perform all services
provided pursuant to this Agreement in a professional, timely, and ethical manner. The
HEARING OFFICER agrees to hold hearings once per week in the City Council chambers. The
hearings shall be held on days that City Hall is open to the public and at times specified by
CITY, unless changed by mutual agreement of the PARTIES. The HEARING OFFICER will be
available for a full day of hearings on days scheduled for a hearing.
2. COMPENSATION AND EXPENSES.
2.1 Compensation. CITY agrees to pay, and HEARING OFFICER agrees to accept,
as full compensation for the HEARING OFFICER’s services, compensation at the
rate of One Hundred Ninety Five Dollars ($195.00) per hour until such time as the
Agreement terminates. In no event shall the CITY pay more than Six Hundred
Thousand Dollars ($600,000.00) under this Agreement without further written
authorization from the Mayor and City Council.
2.2 No other expenditures made by HEARING OFFICER shall be reimbursed by the
CITY. The hourly rate includes overhead expenses such as telephone, copy,
postage, mileage, and related costs.
2.3 HEARING OFFICER shall submit, per hearing, monthly, or quarterly, an
itemized invoice, which details the hours worked and any supporting
documentation.
2.4 Support staff for hearings shall be provided by CITY. All hearings shall be held in
the City Council chambers.
3. TERM; TERMINATION.
The term of this Agreement shall be from the EFFECTIVE DATE until March 15, 2021,
inclusive.
This Agreement may be terminated at any time upon thirty (30) days written notice by either
PARTY. The terms of this Agreement shall remain in force unless mutually amended in writing.
At the conclusion of the term of this Agreement, HEARING OFFICER shall not be eligible to be
retained or employed by the City in any capacity for a period of twelve (12) months.
4. INDEMNITY.
HEARING OFFICER agrees to and shall indemnify and hold the CITY, its elected officials,
employees, agents, or representatives, free and harmless from all claims, actions, damages and
liabilities of any kind and nature arising from bodily injury, including death, or property damage,
HEARING OFFICER SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND
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based or asserted upon any actual or alleged act or omission of HEARING OFFICER, its
employees, agents, or subcontractors, relating to or in any way connected with the
accomplishment of the work or performance of services under this Agreement, unless the bodily
injury or property damage was actually caused by the sole negligence of the CITY, its elected
officials, employees, agents or representatives. As part of the foregoing indemnity, HEARING
OFFICER agrees to protect and defend at its own expense, including attorney’s fees, the CITY,
its elected officials, employees, agents or representatives from any and all legal actions based
upon such actual or alleged acts or omissions. HEARING OFFICER hereby waives any and all
rights to any types of express or implied indemnity against the CITY, its elected officials,
employees, agents or representatives, with respect to third party claims against the HEARING
OFFICER relating to or in any way connected with the accomplishment of the work or
performance of services under this Agreement.
5. INSURANCE.
5.1 Minimum Scope and Limits of Insurance. HEARING OFFICER shall obtain and
maintain during the life of this Agreement all of the following insurance
coverage:
(a) Comprehensive general liability, including premises-operations,
products/completed operations, broad form property damage, blanket
contractual liability, personal injury with a policy limit of not less than One
Million Dollars ($1,000,000.00), combined singles limits, per occurrence and
aggregate.
(b) Automobile liability for owned vehicles, hired, and non-owned vehicles, with
a policy limit of not less than One Million Dollars ($1,000,000.00), combined
single limits, per occurrence and aggregate.
(c) Worker’s compensation insurance as required by the State of California.
5.2 Endorsements. The comprehensive general liability insurance policy shall contain
or be endorsed to contain the following provisions:
(a) Additional insureds: “The City of San Bernardino and its elected and
appointed boards, officers, agents, and employees are additional insureds with
respect to this subject project and contract with City.”
(b) Notice: “Said policy shall not terminate, nor shall it be cancelled, nor the
coverage reduced, until thirty (30) days after written notice is given to City.”
(c) Other insurance: “Any other insurance maintained by the City of San
Bernardino shall be excess and not contributing with the insurance provided
by this policy.”
HEARING OFFICER SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND
GRAVES & KING LLP
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5.3 Certificates of Insurance. HEARING OFFICER shall provide to CITY certificates
of insurance showing the insurance coverages and required endorsements
described above, in a form and content approved by CITY, prior to performing
any services under this Agreement.
5.4 Non-limiting. Nothing in this Section shall be construed as limiting in any way,
the indemnification provision contained within this Agreement, or the extent to
which HEARING OFFICER may be held responsible for payments of damages to
persons or property.
6. NON-DISCRIMINATION.
In the performance of this Agreement and in the hiring and recruitment of employees,
HEARING OFFICER shall not engage in, nor permit its officers, employees or agents to engage
in, discrimination in employment of persons because of their race, religion, color, national origin,
ancestry, age, mental or physical disability, medical condition, marital status, sexual gender or
sexual orientation, or any other status protected by law.
7. INDEPENDENT CONTRACTOR.
HEARING OFFICER shall perform work tasks provided by this Agreement, but for all intents
and purposes HEARING OFFICER shall be an independent contractor and not an agent or
employee of the CITY. HEARING OFFICER shall secure, at its expense, and be responsible for
any and all payment of Income Tax, Social Security, State Disability Insurance Compensation,
Unemployment Compensation, and other payroll deductions for HEARING OFFICER and its
officers, agents, and employees, and all business license, if any are required, in connection with
the services to be performed hereunder.
8. BUSINESS REGISTRATION CERTIFICATE AND OTHER REQUIREMENTS.
HEARING OFFICER warrants that it possesses or shall obtain prior to execution of this
Agreement, and maintain, a business registration certificate pursuant to Chapter 5 of the
Municipal Code, and any other licenses, permits, qualifications, insurance and approval of
whatever nature that are legally required of HEARING OFFICER to practice its business or
profession.
9. NOTICES.
Any notices, documents, correspondence, or other communication concerning this Agreement or
the services provided hereunder may be provided by personal delivery or U.S. Mail. If personally
delivered the notice shall be deemed delivered at the time of the personal delivery. If sent by
U.S. Mail the notice shall be deemed delivered forty-eight (48) hours after deposit in the U.S.
Mail as reflected by the official U.S. postmark.
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TO THE CITY: TO THE HEARING OFFICER:
City of San Bernardino Harvey W. Wimer III
290 N. “D” Street, 3rd Floor J.E. Holmes III
San Bernardino, CA 92418 Graves & King LLP
Telephone: (909) 384-5122 P.O. Box 1548
Attention: City Manager’s Office 3610 Fourteenth Street, 2nd Floor
Riverside, CA 92501
Phone: (951) 680-0100
Either PARTY may change the address for delivery of notices by sending notice of the change to
the other PARTY in conformity with this Section.
10. ATTORNEYS’ FEES
In the event that litigation is brought by any PARTY in connection with this Agreement, the
prevailing party shall be entitled to recover from the opposing party all costs and expenses,
including reasonable attorneys’ fees, incurred by the prevailing party in the exercise of any of its
rights or remedies hereunder or the enforcement of any of the terms, conditions or provisions
hereof. The costs, salary and expenses of the City Attorney and members of his/her office in
enforcing this Agreement on behalf of the CITY shall be considered as “attorneys’ fees” for the
purposes of this paragraph.
11. ASSIGNMENT.
HEARING OFFICER shall not voluntarily or by operation of law assign, transfer, sublet or
encumber all or any part of the HEARING OFFICER’s interest in this Agreement without
CITY’s prior written consent. Any attempted assignment, transfer, subletting or encumbrance
shall be void and shall constitute a breach of this Agreement and cause for the termination of this
Agreement. Regardless of CITY’s consent, no subletting or assignment shall release HEARING
OFFICER of HEARING OFFICER’s obligation to perform all other obligations to be performed
by HEARING OFFICER hereunder for the term of this Agreement.
12. VENUE.
The parties hereto agree that all actions or proceedings arising in connection with this Agreement
shall be tried and litigated either in the Superior Court of the State of California for the County of
San Bernardino or the United States District Court for the Central District of California,
Riverside Division. The aforementioned choice of venue is intended by the parties to be
mandatory and not permissive in nature.
13. GOVERNING LAW.
This Agreement shall be governed and construed under the laws of the State of California
without giving effect to that body of laws pertaining to conflict of laws.
HEARING OFFICER SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND
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14. SUCCESSORS AND ASSIGNS.
This Agreement shall be binding on and inure to the benefit of the PARTIES to this Agreement
and their respective heirs, representatives, successors, and assigns.
15. HEADINGS.
The subject headings of the sections of this Agreement are included for the purposes of
convenience only and shall not affect the construction or the interpretation of any of its
provisions.
16. SEVERABILITY.
If any provision of this Agreement is determined by a court of competent jurisdiction to be
invalid or unenforceable for any reason, such determination shall not affect the validity or
enforceability of the remaining terms and provisions hereof or of the offending provision in any
other circumstance, and the remaining provisions of this Agreement shall remain in full force
and effect.
17. REMEDIES; WAIVER.
All remedies available to either PARTY for one or more breaches by the other PARTY are and
shall be deemed cumulative and may be exercised separately or concurrently without waiver of
any other remedies.
The delay or failure of either PARTY to require performance or compliance of the other of any
of its obligations under this Agreement shall in no way be deemed a waiver of those rights to
require such performance or compliance. No waiver of any provision of this Agreement shall be
effective unless made in writing and signed by a duly authorized representative of the PARTY
against whom it is sought. The waiver of any right or remedy with respect to any occurrence or
event shall not be deemed a waiver of such right or remedy with respect to any future
occurrences or events and shall not be deemed a continuing waiver.
18. ENTIRE AGREEMENT.
This Agreement constitutes the entire agreement and the understanding between the PARTIES,
and supersedes any prior agreements and understandings relating to the subject matter of this
Agreement.
19. COUNTERPARTS.
This Agreement may be executed in counterparts, each of which shall be deemed to be an
original, but all of which, taken together, shall constitute one and the same agreement. In the
event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf”
format data file, such signature shall create a valid and binding obligation of the PARTY
HEARING OFFICER SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND
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executing (or on whose behalf such signature is execute) with the same force and effect as if
such facsimile or “.pdf” signature page were an original thereof.
20. AMENDMENT.
No amendment to this Agreement will be effective unless it is in writing and signed by both
PARTIES.
21. CORPORATE AUTHORITY.
Each person executing this Agreement on behalf of the PARTIES hereto warrant that they are
duly authorized to execute this Agreement on behalf of said PARTIES and that by doing so, the
PARTIES hereto are formally bound to the provisions of this Agreement.
22. COMPLIANCE WITH LAW
HEARING OFFICER agrees to abide by all federal, state, and local laws, ordinances and
regulations.
23. FORCE MAJEURE.
A PARTY shall not be liable for any failure or delay in the performance of this Agreement for
the period that such failure or delay is due to causes beyond its reasonable control, including but
not limited to acts of God, war, strikes or labor disputes, embargoes, governmental orders or any
other force majeure event.
24. RESPONSIBILITY FOR ERRORS.
HEARING OFFICER shall be responsible for its work and results under this Agreement.
HEARING OFFICER, when requested by CITY, shall furnish clarification and/or explanation as
may be required by CITY’s representative, regarding any services rendered under this
Agreement at no additional cost to CITY. In the event that an error or omission attributable to
HEARING OFFICER occurs, then HEARING OFFICER shall, at no cost to CITY, provide all
necessary services to rectify and correct the matter to the sole satisfaction of CITY and to
participate in any meeting required with regard to the correction.
25. ORDER OF PRECEDENCE.
In the event of any inconsistency or conflict in this Agreement and any of the attached Exhibits
or Attachments, the terms set forth in this Agreement shall prevail.
26. CONSTRUCTION.
The PARTIES have participated jointly in the negotiation and drafting of this Agreement. In the
event an ambiguity or question of intent or interpretation arises with respect to this Agreement,
this Agreement shall be construed as if drafted jointly by the PARTIES and in accordance with
HEARING OFFICER SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND
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its fair meaning. There shall be no presumption or burden of proof favoring or disfavoring any
Party by virtue of authorship of any of the provisions of this Agreement.
IN WITNESS THEREOF, the parties hereto have executed this Agreement on the day
and date set forth below.
Dated: ____________, 2018 Graves & King LLP
By: ___________________________
Its: ___________________________
Dated ____________, 2018 CITY OF SAN BERNARDINO
By:___________________________
Andrea M. Miller, City Manager
APPROVED AS TO FORM:
Gary D. Saenz, City Attorney
By:___________________________
HEARING OFFICER SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND
GRAVES & KING LLP
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Consent Calendar
City of San Bernardino
Request for Council Action
Date: March 7, 2018
To: Honorable Mayor and City Council Members
From: Andrea M. Miller, City Manager
By: Helen Tran, Director of Human Resources
Subject: Establish Salaries for Police Safety
Recommendation
Adopt a Resolution of the Mayor and City Council of the City of San Bernardino,
California, establishing salaries for the Police Department Ranges P-1 (Police Officer),
P-2 (Detective/Corporal), P-3 (Sergeant) and Law Enforcement Trainee effective August
1, 2017.
Background
The current Memorandum of Understanding (MOU) provides that the 186 salary survey
shall be conducted in accordance with former Charter Section 186 and consistent with
the interpretation and methodology currently utilized by the City for establishing a
formula setting salaries for local safety members, effective August 1st of each year. The
San Bernardino Police Officer Association (SBPOA) MOU provides that as of August 1st
of each year the Agreement is in effect, salaries shall be increased by a minimum of
3.5%. In the event that the annual Charter 186 salary adjustment for each classification
surveyed exceeds 3.5% the difference in higher amount shall determine the salary for
the classification.
City staff and SBPOA met and conferred a total of three (3) times (8/14/17, 10/11/17
and 10/19/17). On October 19, 2017 Human Resources Department met and completed
the salary survey with SBPOA. The outcome of the survey resulted in no further salary
increases for SBPOA as the results for each classification came in lower than the
current negotiated MOU amount of 3.5%. A total of (57) cities were surveyed and the
(10) middle cities were agreed upon by coin toss.
On December 11, 2018, Human Resources received notification from SBPOA that they
would like for the City to reevaluate how the survey was processed. Further review by
the City Manager was completed and it was determined that the process of the 186
survey is consistent with the MOU and the San Bernardino Municipal Code. At this
moment there continues to be a disagreement with the results between the City and
SBPOA.
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It is the staff’s recommendation to move forward with the adoption of the Police Safety
salary schedule due to the fact that the City completed the 186 salary survey process in
October 11, 2017 and responded in January 29, 2018 denying SBPOA’s request for
reconsideration.
The 10 cities selected include:
• Orange • Daly City
• Vallejo • Inglewood
• Downey • Burbank
• Fontana • Pomona
• Garden Grove • Oceanside
Results from the Survey
Range % Change
Monthly
Dollar
Adjustment
P-1/Police Officer 0.68 $56.85
P-2/Detective/Corporal 1.46 $139.33
P-3/Sergeant 3.08 $332.07
Discussion
AUGUST 1, 2016 MONTHLY SALARY RANGES
Range Step 1 Step 2 Step 3 Step 4 Step 5
P-1/Police Officer $6,272.14 $6,798.11 $7,324.09 $7,850.07 $8,376.04
P-2/Detective/Corporal $7,283.15 $7,816.03 $8,348.90 $8,929.05 $9,551.66
P-3/Sergeant $8,241.86 $8,843.77 $9,445.68 $10,102.36 $10,792.82
EFFECTIVE AUGUST 1, 2017 MONTHLY SALARY RANGES
Range Step 1 Step 2 Step 3 Step 4 Step 5
P-1/Police Officer $6,491.66 $7,036.04 $7,580.43 $8,124.82 $8,669.20
P-2/Detective/Corporal $7,538.06 $8,089.59 $8,641.11 $9,241.57 $9,885.97
P-3/Sergeant $8,530.33 $9,153.30 $9,776.28 $10,445.94 $11,170.57
The Law Enforcement Trainee salary will be at $5,193.33 per month ($29.9615 per
hour), which is 80% of Step 1 for the Police Officer (P-1) salary.
Fiscal Impact
The adopted FY 2017/18 budget reflects a 3.5% salary increase and since the salary
survey did not result in an increase above the 3.5%, there is no additional salary
increase impact.
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Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, adopt
the Resolution, establishing salaries for the Police Department Ranges P-1 (Police
Officer), P-2 (Detective/Corporal), P-3 (Sergeant) and Law Enforcement Trainee
effective August 1, 2017.
Attachments
Attachment 1 – Resolution
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Packet Pg. 308 Attachment: HR.POA Safety Salaries Staff Report (5408 : Establishing Salaries for Police Safety)
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ESTABLISHING SALARIES FOR POLICE DEPARTMENT RANGES P-1 (POLICE OFFICER), P-2 (DETECTIVE/CORPORAL), P-3 (SERGEANT) AND LAW ENFORCEMENT TRAINEE, EFFECTIVE AUGUST 1, 2017.
WHEREAS, The current Memorandum of Understanding (MOU) with the San
Bernardino Police Officer Association (SBPOA) provides for an annual salary survey to
be performed pursuant to former Charter Section 186; and
WHEREAS, the SBPO) MOU also provides that as of August 1st of each year the
Agreement is in effect, salaries shall be increased by a minimum of 3.5%. In the event
that the annual salary adjustment for each classification surveyed exceeds 3.5%, the
higher amount shall be used to determine the salary for the classification; and
WHEREAS, the salary survey conducted in 2017 did not result in an increase of
more than 3.5%.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1: Salaries for Police Department Ranges P-1 (Police Officer),
$6,491.66 - $8,669.20 per month; P-2 (Detective/Corporal), $7,538.06 - $9,885.97 per
month; P-3 (Sergeant), $8,530.33 - $11,170.57 per month; and Law Enforcement
Trainee, $5,193.33 per month ($29.9615/hour); is hereby established, effective August
1, 2017.
SECTION 2: The Director of Human Resources is authorized to amend
Resolution No. 6429 to reflect this action.
SECTION 3: The Director of Finance is authorized to amend the FY 2017/18
budget and take necessary steps to reflect this action and implement this survey
retroactive to August 1, 2017.
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Packet Pg. 309 Attachment: HR.POA Safety Salaries- Attachment 1- Resolution (5408 : Establishing Salaries for Police Safety)
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, ESTABLISHING SALARIES FOR POLICE
DEPARTMENT RANGES P-1 (POLICE OFFICER), P-2 (DETECTIVE/CORPORAL), P-
3 (SERGEANT) AND LAW ENFORCEMENT TRAINEE, EFFECTIVE AUGUST 1,
2017.
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
Mayor and City Council of the City of San Bernardino at a __________________
meeting thereof, held on the day of , 2018, by the
following vote, to wit:
COUNCILMEMBERS: AYES NAYES ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, City Clerk
The foregoing Resolution is hereby approved this __________ day of __________,
2018.
R. Carey Davis, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz,City Attorney
By: ____________________________________
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8.b
Packet Pg. 310 Attachment: HR.POA Safety Salaries- Attachment 1- Resolution (5408 : Establishing Salaries for Police Safety)
Consent Calendar
City of San Bernardino
Request for Council Action
Date: March 7, 2018
To: Honorable Mayor and City Council Members
From: Andrea M. Miller, City Manager
By: Helen Tran, Director of Human Resources
Subject: Establish Salaries for Police Management
Recommendation
Adopt a Resolution of the Mayor and City Council of City of San Bernardino, California,
establishing salaries for the Police Department Ranges P-4 (Lieutenant), P-5 (Captain),
P-6 (Assistant Chief of Police) and P-7 (Chief of Police) effective August 1, 2017.
Background
The current Memorandum of Understanding (MOU) with San Bernardino Police
Management Association (SBPMA) provides that a salary survey shall be conducted in
accordance with former Charter Section 186 and consistent with the interpretation and
methodology historically utilized by the City for establishing a formula setting salaries for
local safety members, effective August 1st of each year. The San Bernardino PMA
Agreement Resolution No. 2015-173, provides that as of August 1st of each year the
agreement is in effect, salaries shall be increased by a minimum of 3.5%. In the event
that the annual Charter 186 salary adjustment for each classification surveyed exceeds
3.5% the difference, the higher amount shall determine the salary for the classification.
City staff and San Bernardino Police Management Association (SBPMA) met and
conferred a total of one (1) time (02/01/2018). On February 1, 2018 Human Resources
Department met and completed the salary survey with SBPMA and the coin toss for
final numbers was completed on February 14, 2018. The outcome of the survey
resulted in no further salary increases for PMA as the results for each classification
came in lower than the current negotiated MOU amount of 3.5%. A total of (57) cities
were surveyed and the (10) middle cities were agreed upon by coin toss.
The 10 cities selected included:
• Daly City • Pasadena
• Glendale • Fullerton
• Santa Rosa • Hayward
• Orange • San Buena Ventura
• Fairfield • Vallego
9.a
Packet Pg. 311 Attachment: HR.PMA Safety Management Staff Report (5410 : Establish Salaries for Police Management)
Results from the Survey
Range % Change
Monthly
Dollar
Adjustment
P-4/Lieutenant 3.24% $431.21
P-5/Captain 2.60% $407.40
P-6/Assistant Chief 0.48% $81.31
P-7/Chief 0.09% $17.79
Discussion
AUGUST 1, 2016 MONTHLY SALARY RANGES
Range Monthly
P-4/Lieutenant $13,296.51
P-5/Captain $15,649.06
P-6/Assistant Chief $17,022.91
P-7/Chief $18,831.95
EFFECTIVE AUGUST 1, 2017 MONTHLY SALARY RANGES
Range Monthly
P-4/Lieutenant $13,761.89
P-5/Captain $16,196.78
P-6/Assistant Chief $17,618.71
P-7/Chief $19,491.07
Fiscal Impact
The adopted FY 2017/18 budget reflects a 3.5% salary increase and since the salary
survey did not result in an increase above the 3.5%, there is no additional salary
increase impact.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, adopt
the Resolution, establishing salaries for the Police Department Ranges P-4
(Lieutenant), P-5 (Captain), P-6 (Assistant Chief of Police) and P-7 (Chief of Police).
Attachments
Attachment 1 – Resolution
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Packet Pg. 312 Attachment: HR.PMA Safety Management Staff Report (5410 : Establish Salaries for Police Management)
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ESTABLISHING SALARIES FOR POLICE DEPARTMENT RANGES P-4 (LIEUTENANT), P-5 (CAPTAIN), P-6 (ASSISTANT CHIEF OF POLICE) AND P-7 (CHIEF OF POLICE) EFFECTIVE AUGUST 1, 2017.
WHEREAS, the San Bernardino Police Management Association (SBPMA)
Agreement approved by Resolution No. 2015-173 provides for an annual salary survey
to be performed pursuant to former Charter Section 186; and
WHEREAS, the SBPMA Agreement Resolution No. 2015-173, provides that as
of August 1st of each year the Agreement is in effect, salaries shall be increased by a
minimum of 3.5%. In the event that the annual salary adjustment for each classification
surveyed exceeds 3.5%, the higher amount shall be used to determine the salary for the
classification; and
WHEREAS, the salary survey conducted in 2017 did not result in an increase of
more than 3.5%.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL
OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1: Salaries for Police Department Ranges P-4 (Lieutenant),
$13,761.89; P-5 (Captain), $16,196.78; P-6 (Assistant Chief of Police), $17,618.71; and
P-7 (Chief of Police), $19,491.07; are hereby established, effective August 1, 2017.
SECTION 2: The Director of Human Resources is authorized to amend
Resolution No. 6429 to reflect this action.
SECTION 3: The Director of Finance is authorized to amend the FY 2017/18
budget and take necessary steps to reflect this action and implement this survey
retroactive to August 1, 2017.
/ / /
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Packet Pg. 313 Attachment: HR.PMA Safety Management- Attachment 1- Resolution (5410 : Establish Salaries for Police Management)
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ESTABLISHING SALARIES FOR POLICE DEPARTMENT RANGES P-4 (LIEUTENANT), P-5 (CAPTAIN), P-6 (ASSISTANT CHIEF OF POLICE) AND P-7 (CHIEF OF POLICE) EFFECTIVE AUGUST 1, 2017.
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
Mayor and Common Council of the City of San Bernardino at a _______________
meeting thereof, held on the day of , 2018, by the
following vote, to wit:
COUNCILMEMBERS: AYES NAYES ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, City Clerk
The foregoing Resolution is hereby approved this __________ day of __________,
2018.
R. Carey Davis, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz, City Attorney
By: ____________________________________
2
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Packet Pg. 314 Attachment: HR.PMA Safety Management- Attachment 1- Resolution (5410 : Establish Salaries for Police Management)
Consent Calendar
City of San Bernardino
Request for Council Action
Date: March 7, 2018
To: Honorable Mayor and City Council Members
From: Andrea M. Miller, City Manager
By: Helen Tran, Director of Human Resources
Subject: Establishing a Basic Compensation Plan for Employees of the
San Bernardino Police Department
Recommendation
Adopt a Resolution of the Mayor and City Council of the City of San Bernardino,
California, establishing a basic compensation plan for employees of the San Bernardino
Police Department.
Background
On November 21, 2016, the Mayor and City Council adopted Resolution No. 2016-242,
amending Resolution No. 6429 and established a basic compensation plan for officer
and/or employees of the Police and Fire Departments of the City of San Bernardino.
Discussion
As in previous years, section three of Resolution No. 6429 needs to be amended to
reflect the Mayor and City Council actions. The proposed Resolution will amend
Resolution No. 6429 to incorporate the current safety salaries as follows:
Monthly salaries effective August 1, 2017:
POLICE DEPARTMENT
First 6 Following Third Fourth Fifth & Sub-
JOB Months 18 Months Year Year sequent Yrs
TITLE Service Service Service Service Service
Police Officer $6,491.66 $7,036.04 $7,580.43 $8,124.82 $8,669.20
P-1
Detective/Corporal $7,538.06 $8,089.59 $8,641.11 $9,241.57 $9,885.97
P-2
10.a
Packet Pg. 315 Attachment: HR.Safety Comp Plan Staff Report (5411 : Establishing a Basic Compensation Plan for Employees of the San Bernardino Police
Sergeant $8,530.33 $9,153.30 $9,776.28 $10,445.94 $11,170.57
P-3
Lieutenant -- -- -- -- $13,761.89
P-4
Captain -- -- -- -- $16,196.78
P-5
Assistant Chief -- -- -- -- $17,618.71
P-6
Chief -- -- -- -- $19,491.07
P-7
Fiscal Impact
No fiscal impact to the adopted FY 2017/18 Budget.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, adopt
the Resolution establishing a basic compensation plan for officers and/or employees of
San Bernardino Police Department.
Attachments
Attachment 1 – Resolution
Ward: None
Synopsis of Previous Council Actions: None
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Packet Pg. 316 Attachment: HR.Safety Comp Plan Staff Report (5411 : Establishing a Basic Compensation Plan for Employees of the San Bernardino Police
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, ESTABLISHING A BASIC COMPENSATION PLAN
FOR EMPLOYEES OF THE SAN BERNARDINO POLICE DEPARTMENT
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
Resolution No. 6429, Section Three, is hereby amended to read as follows:
POLICE DEPARTMENT
First 6 Following Third Fourth Fifth & Sub-
JOB Months 18 Months Year Year sequent Yrs
TITLE Service Service Service Service Service
Below are the monthly salaries effective August 1, 2017:
Police Officer $6,491.66 $7,036.04 $7,580.43 $8,124.82 $8,669.20
P-1
Detective/Corporal $7,538.06 $8,089.59 $8,641.11 $9,241.57 $9,885.97
P-2
Sergeant $8,530.33 $9,153.30 $9,776.28 $10,445.94 $11,170.57
P-3
Lieutenant -- -- -- -- $13,761.89
P-4
Captain -- -- -- -- $16,196.78
P-5
Assistant Chief -- -- -- -- $17,618.71
P-6
Chief -- -- -- -- $19,491.07
P-7
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA ESTABLISHING A BASIC COMPENSATION PLAN
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Packet Pg. 317 Attachment: HR.Safety Comp Plan- Attachment 1- Resolution (5411 : Establishing a Basic Compensation Plan for Employees of the San
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FOR OFFICERS AND/OR EMPLOYEES OF THE POLICE DEPARTMENT OF THE
CITY
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
Common Council of the City of San Bernardino at a meeting thereof, held on the
day of , 2018, by the following vote, to wit:
COUNCILMEMBERS: AYES NAYES ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, City Clerk
The foregoing Resolution is hereby approved this __________ day of __________,
2018.
R. Carey Davis, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz,
City Attorney
By: ____________________________________
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Packet Pg. 318 Attachment: HR.Safety Comp Plan- Attachment 1- Resolution (5411 : Establishing a Basic Compensation Plan for Employees of the San
Consent Calendar
City of San Bernardino
Request for Council Action
Date: March 7, 2018
To: Honorable Mayor and City Council Members
From: Andrea M. Miller, City Manager
By: Helen Tran, Director of Human Resources
Subject: Establishing a Basic Compensation Plan for Temporary or Part
Time Employees of the San Bernardino
Recommendation
Adopt a Resolution of the Mayor and City Council of the City of San Bernardino,
California, establishing a basic compensation plan for Temporary/Part-Time Officers
and/or employees of the City of San Bernardino, California.
Background
On March 20, 2017, the Mayor and City Council adopted Resolution No. 2017-61, a
Resolution of the City of San Bernardino amending Resolution 6413, Section 13,
Temporary/Part-Time Employees.
Discussion
On April 4, 2016, Senate Bill 3 was signed into law. This new legislation amended
Section 1182.12 of the California Labor Code and requires any employer who employs
26 or more employees to implement new minimum wages pursuant to the following
schedule:
January 1, 2017 – December 31, 2017 = $10.50/hour
January 1, 2018 – December 31, 2018 = $11.00/hour
January 1, 2019 – December 31, 2019 = $12.00/hour
January 1, 2020 – December 31, 2020 = $13.00/hour
January 1, 2021 – December 31, 2021 = $14.00/hour
January 1, 2022 – until adjusted pursuant to statute = $15.00/hour
As a Charter City, San Bernardino may establish compensation rates that are not
controlled by the state legislature. However, not adhering to the state-wide standards for
minimum wage would likely create difficulties associated with recruiting and retaining a
competent workforce.
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Packet Pg. 319 Attachment: HR.PT-Temp Salaries Staff Report (5413 : Establishing a Basic Compensation Plan for Temporary or Part Time Employees of the
The proposed resolution would incorporate the minimum wage increase effective
January 1, 2018, and codify prior Council actions. Additionally, increases have been
proposed for positions that will be affected by compaction due to the implementation of
the minimum wage increase. Part-time positions with full-time equivalent classifications
are no longer tied to the full-time salary resolution. Temporary, part-time and seasonal
employment is restricted to 1,000 hours within a fiscal year (July 1st to June 30th) and
employees in these positions do not qualify to receive City benefits, except those
required by law. Further restrictions apply to CalPERS retired annuitants. California
Labor Code Section 245.5 excludes recipients of retirement allowances and employed
without reinstatement from the paid sick leave requirements. The City does not belong
to the Social Security system. However, enrollment by temporary, part-time, and
seasonal employees in the City’s deferred compensation plan is mandatory, which
requires an employee contribution of 7.5% of their salary per pay period.
An additional amendment will occur for upcoming mandated minimum wage increase
effective January 1, 2019, and annually thereafter until January 1, 2022.
The following information summarizes the changes that are proposed:
Classification Title Range Action
Administrative Assistant (PT) $17.73 -$21.56
Administrative Claims
Specialist (PT)
$19.99 - $24.30
Apprentice $11.00 - $21.00 Minimum Wage Increase
Assistant Literacy Program
Coordinator (PT)
$17.38 - $21.13
Business Registration
Representative (PT)
$17.73 - $21.56
Business Registration
Inspector (PT)
$21.65 - $26.32
Development Services
Technician
$21.01 - $25.54
Electrician I/II (FLEX)(PT) $20.60 - $28.22
Equipment Mechanic I/II
(FLEX)(PT)
$19.99 - $24.30
Executive Assistant (PT) $21.01 - $25.54
Executive Assistant to
Director (PT)
$23.22 - $28.22
$10.50 DELETED
Food Service Program
Specialist
$10.50- $11.58 DELETED
Grounds Worker $10.50 DELETED
Student Intern (PT) $11.00 - $21.00 Minimum Wage Increase
Kitchen Helper $10.50 DELETED
Law Enforcement Trainee $29.96 Eff. 8/1/17 per 186 Salary Survey
Library Assistant $14.53- $17.66
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Packet Pg. 320 Attachment: HR.PT-Temp Salaries Staff Report (5413 : Establishing a Basic Compensation Plan for Temporary or Part Time Employees of the
Library Page $11.00- $11.54 Minimum Wage Increase
Parks Maintenance Worker
I/II (FLEX)(PT)
$17.73- $21.56
Police Cadet (PT) $14.50- $16.50
Senior Library Tech (PT) $21.65- $26.32
Senior Recreation Leader $12.25- $13.51
Summer Lunch Monitor $10.50 DELETE
Recreation Aide $11.00- $12.13 Minimum Wage Increase
Recreation Leader $11.50- $12.68 Wage Compaction
Recreation Specialist $14.10- $15.55 Minimum Wage Increase
Recreation Supervisor
(Aquatics)
$24.16- $29.37 Wage Compaction
Senior Recreation Leader $12.75 - $14.06 Minimum Wage Increase
Work Experience Participant $10.00 DELETED
Fiscal Impact
The additional cost in compensation is for the period from January 1, 2018, which is the
date the minimum wage change occurred, to June 30, 2018, is approximately $32,500.
This fiscal impact will be absorbed in the annual operating budget, for each department,
and the proposed fiscal year 2018-2019 will include the increased cost.
Conclusion
Adopt the Resolution updating the compensation for Temporary/Part-Time officers
and/or employees.
Attachments
Attachment 1 – Resolution
Ward: N/A
Synopsis of Previous Council Actions:
April 21, 2017 - The Mayor and City Council approved Resolution 2017-61, establishing hourly
rates for temporary/part-time officers and/or employees of the City of San Bernardino.
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, ESTABLISHING A BASIC COMPENSATION PLAN
FOR TEMPORARY/ PART-TIME OFFICERS AND/OR EMPLOYEES OF THE CITY
OF SAN BERNARDINO, CALIFORNIA
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
SECTION 1. The following classes of temporary/part-time employment shall be
paid at a flat rate in accordance with the following schedule, effective January 1, 2018:
CLASSIFICATION TITLE HOURLY RANGE
Accounting Manager (PT) $40.59-$49.34
Administrative Assistant (PT) $17.73-$21.56
Administrative Assistant to City Council (U) (PT) $22.76 - $27.66
Administrative Claims Specialist (PT) $19.99-$24.30
Animal License Checker $12.00
Animal Shelter Attendant (PT) $15.27-$18.56
Apprentice $11.00-$21.00
Assistant Literacy Program Coordinator (PT) $17.38- $21.13
Background Investigator (PT) $30.00-$35.00
Business Registration Inspector (PT) $21.65-$26.32
Business Registration Representative (PT) $17.73-$21.56
Business Registration Inspector (PT) $21.65-$26.32
Code Enforcement Officer II (PT) $25.15- $30.57
Community Development Block Grant
(CDBG) Program Assistant (PT) $16.88-$20.51
Coordinator of Volunteers (PT) $13.15- $15.98
Crime Data Technician $15.42-$18.75
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Custodial Aide $12.25
Customer Service Representative (PT) $15.27-$18.56
Development Services Technician $21.01-$25.54
Electrician I/II (FLEX) (PT) $20.60-$28.22
Equipment Mechanic I/II (Flex)(PT) $19.99-$24.30
Executive Assistant (PT) $21.01-$25.54
Executive Assistant to Director (PT) $23.22 - $28.22
Extra Relief Heavy Laborer $12.25
Police Dispatcher I (PT) $19.60- $23.82
Police Dispatcher II (PT) $21.65- $26.32
Food Service Supervisor I $12.00
Food Service Supervisor II $23.93- $29.08
IEMG/CATV Programming/Traffic Assist $12.83 - $15.59
Student Intern $11.00-$21.00
Law Enforcement Trainee $29.96
Library Assistant (PT) $14.53- $17.66
Library Technician I $16.05- $19.51
Maintenance Worker I/II (Flex)(PT) $15.58- $21.99
Office Assistant- (PT) $13.82- $16.80
Parking Enforcement Officer- (PT) $16.05- $19.51
Parks Maintenance Worker I/II(Flex )(PT) $17.73 - $21.56
Police Cadet $14.50 - $16.50
Recreation Supervisor (Aquatics) - (PT) $24.16 - $29.37
SB Direct Call Taker Bilingual- (PT) $20.60- $25.04
Security Guard $12.00
Security Officer $18.00
Security Officer II $20.00
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Packet Pg. 323 Attachment: HR.PT-Temp Salaries - Attachment 1 - Resolution. (5413 : Establishing a Basic Compensation Plan for Temporary or Part Time
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Senior Librarian- PT $27.78- $33.77
Senior Library Tech- PT $21.65- $26.32
Summer Youth Specialist $11.50
HOURLY RATES FROM DATE OF HIRE
The rate increases are to be processed by Department based on employee’s years of
service.
CLASSIFICATION TITLE STEP 1 6 MO. 1.5 YRS 2.5 YRS 3.5 YRS
Library Page $11.00 $11.13 $11.27 $11.40 $11.54
ANNUAL STEP INCREASE
CLASSIFICATION TITLE STEP 1 STEP 2 STEP 3
Lifeguard $12.05 $12.65 $13.29
Senior Lifeguard $13.70 $14.38 $15.10
Pool Manager I $15.15 $15.91 $16.70
Pool Manager II $16.40 $17.22 $18.08
Recreation Aide $11.00 $11.55 $12.13
Recreation Leader $11.50 $12.08 $12.68
Senior Recreation Leader $12.75 $13.39 $14.06
Recreation Specialist $14.10 $14.81 $15.55
Food Service Program Specialist $11.00 $11.55 $12.13
SECTION 2. Temporary, part-time and seasonal employment is restricted to
1,000 hours within a fiscal year and employees in these positions do not qualify to
receive benefits, except those required by law. Further restrictions apply to CalPERS
retired annuitants. Recipients of retirement allowances and employed without
reinstatement are excluded from the paid sick leave requirements.
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, ESTABLISHING A BASIC COMPENSATION PLAN
FOR TEMPORARY/ PART-TIME OFFICERS AND/OR EMPLOYEES OF THE CITY
OF SAN BERNARDINO, CALIFORNIA
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
Mayor and the City Council of the City of San Bernardino at _____________ meeting
thereof, held on ______ day of ____________, 2018, by the following vote, to wit:
COUNCILMEMBERS: AYES NAYES ABSTAIN ABSENT
MARQUEZ _____ _____ _____ _____
BARRIOS _____ _____ _____ _____
VALDIVIA _____ _____ _____ _____
SHORETT _____ _____ _____ _____
NICKEL _____ _____ _____ _____
RICHARD _____ _____ _____ _____
MULVIHILL _____ _____ _____ _____
____________________________
Georgeann Hanna, City Clerk
The forgoing Resolution is hereby approved this _________ day of
______________, 2018.
____________________________
R. Carey Davis, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz, City Attorney
By: _________________________
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Consent Calendar
City of San Bernardino
Request for Council Action
Date: March 7, 2018
To: Honorable Mayor and City Council Members
From: Andrea M. Miller, City Manager
By: Helen Tran, Director of Human Resources
Subject: Establishing Public Official Bond Requirements and Amending
Municipal Code Chapter 2.62
Recommendation
Adopt a Resolution of the Mayor and City Council of the City of San Bernardino,
California, establishing Official Bond Requirements for the positions of City Attorney,
City Clerk, City Manager, Finance Director, General Manager of the City of San
Bernardino’s Municipal Water Department, and Finance Director of the City of San
Bernardino’s Municipal Water Department; and fixing the Amount and Terms of Those
Official Bonds.
Approve an Ordinance Repealing Chapter 2.62 of the San Bernardino Municipal Code
Related to the Filing of Official Bonds.
Background
A public official bond is a type of surety bond that allows public officials to assure the
faithful performance of their duties. Public official bonds are required by Municipal Code
Chapter 2.62 for the purpose of protecting the City in the event that unethical services
are provided by executive staff.
A public official bond guarantees that an individual will perform an obligation in
accordance with the terms of an agreement between an executive incumbent and the
City. When an incumbent and City enter into a contractual agreement, whereby the
incumbent agrees to perform an obligation as required under the contract, the City
requires the work to be adequately performed according to certain standards. However,
the City has no guarantee that the incumbent will perform the duties as required by the
terms of the contract. Therefore, the public official bond provides a financial credit to the
City in the event the executive incumbent breaches the contractual obligations.
If the incumbent does not perform the work as required by agreement between the
incumbent and the City, the City may pursue a legal claim against the incumbent’s
public official bond. Likewise, if the City's claim is successful, the City may obtain an
amount limited to the dollar amount of the bond.
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The City of San Bernardino’s current public official bonds have been surveyed against
other Charter Cities and coverages were found to be too inclusive of positions when
compared to the industry standard. In addition, the current bond limit amounts lack the
monetary coverage the City may need in the event that a claim is made against the
bond.
Discussion
A survey of similar bond requirements in other Charter Cities was conducted and the
level of coverage requirements was compared to the City’s existing public official bond
policy. The “Exhibit A” bond schedule has been established based on this analysis.
Based on the survey results, bonding the City Attorney, City Clerk, City Manager,
Finance Director, General Manager of the City of San Bernardino’s Municipal Water
Department, and Finance Director of the City of San Bernardino’s Municipal Water
Department by a public official bond will benefit the City as the bond guarantees that the
City will be covered financially in the event that an executive incumbent does not
perform their duties of office faithfully and honestly. An incumbent is obligated to act in
the public’s best interest and they will be held accountable for the duties of that position.
Increasing the bond policy amount to $1,000,000 per position will adequately and
effectively insure the City against an incumbent’s insufficient performance. The amount
of the bond will help off-set the financial impact associated with an incumbent’s poor
conduct, thereby, acceptably mitigating the potential risk.
After the transition to bond only the City Attorney, City Clerk, City Manager, Finance
Director, General Manager of the City of San Bernardino’s Municipal Water Department,
and Finance Director of the City of San Bernardino’s Municipal Water Department, all
other positions referenced in Municipal Code Chapter 2.62 in addition to all other
employees, will be covered under the City’s current crime policy. This type of insurance
is a fidelity insurance which protects the City from possible acts of fraud rendered by
City employees. Crime insurance covers many different types of frauds pertaining to
theft, embezzlement and dishonest conduct. By transitioning the rest of the employee
population to be covered under this type of policy, we better classify them and properly
protect the City from possible fraudulent acts.
The approval of this Resolution will amend Municipal Code Chapter 2.62 by bonding the
City Attorney, City Clerk, City Manager, Finance Director, General Manager of the City
of San Bernardino’s Municipal Water Department, and Finance Director of the City of
San Bernardino’s Municipal Water Department in the amount of $1,000,000.00 each,
meeting the industry standard practice use of public official bonds.
Fiscal Impact
Bonding the City Attorney, City Clerk, City Manager, Finance Director, General Manager
of the City of San Bernardino’s Municipal Water Department, and Finance Director of
the City of San Bernardino’s Municipal Water Department for $1,000,000.00 each would
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Packet Pg. 327 Attachment: HR.Amendment to the Municipal Code Chapter 2.62 - Staff Report (5415 : Establishing Public Official Bond Requirements and
have an estimated annual cost of $10,872.00. The Hartford, the City’s current public
official bond administrator, will be utilized in obtaining the new proposed bonds. The
Fiscal Year 2017-18 Operating Budget includes funding for insurance premiums
covering this amount. The cost is budgeted within the Liability Insurance Fund.
Conclusion
Adopt a Resolution of the Mayor and City Council of the City of San Bernardino,
California, Establishing Official Bond Requirements for the Positions of City Attorney,
City Clerk, City Manager, Finance Director, General Manager of the City of San
Bernardino’s Municipal Water Department, and Finance Director of the City of San
Bernardino’s Municipal Water Department; and Fixing the Amount and Terms of Those
Official Bonds.
Approve an Ordinance Repealing Chapter 2.62 of the San Bernardino Municipal Code
Related to the Filing of Official Bonds.
Attachments
Attachment 1 – Resolution
Attachment 2 – Ordinance
Ward:
Synopsis of Previous Council Actions:
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RESOLUTION NO. _________
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, ESTABLISHING OFFICIAL BOND REQUIREMENTS
FOR THE POSITIONS OF CITY ATTORNEY, CITY CLERK, CITY MANAGER,
DIRECTOR OF FINANCE, GENERAL MANAGER OF THE CITY OF SAN
BERNARDINO’S MUNICIPAL WATER DEPARTMENT, AND FINANCE DIRECTOR
OF THE CITY OF SAN BERNARDINO’S MUNICIPAL WATER DEPARTMENT; AND
FIXING THE AMOUNT AND TERMS OF THOSE OFFICIAL BONDS.
WHEREAS, the People of the City of San Bernardino adopted a new Charter at the
November 8, 2016 municipal election; and
WHEREAS, the new Charter was filed with the California Secretary of State on January
31, 2017 and became effective on that date; and
WHEREAS, Section 509 of the new City Charter provides that the Council shall fix by
Resolution the amounts and terms of the official bonds of all officers or employees who are
required by the Council to acquire such bonds; and
WHEREAS, prior to the effective date of the new City Charter, the filing of official bonds
was controlled by Chapter 2.62 of the San Bernardino Municipal Code, which established a
certain schedule for public officials and a blanket position bond; and
WHEREAS, Section 103 of the new City Charter provides that all Ordinances shall
continue in force until they shall have been duly repealed, amended, changed, or superseded by
proper authority as provided by the new Charter; and
WHEREAS, City staff have reviewed the City’s current official bond requirements and
determined those requirements to be over inclusive of positions when compared to the industry
standard. Additionally, the current amounts do not provide sufficient monetary coverage to
adequately and effectively insure the City against the nonperformance or malperformance of those
designated public officials and thereby, do not acceptably mitigate potential risks; and
WHEREAS, City staff have determined that it is necessary to recommend the
establishment of certain requirements and to increase the bond amounts to $1,000,000.00 each for
the classifications of City Attorney, City Clerk, City Manager, Director of Finance, General
Manager of the City of San Bernardino’s Municipal Water Department, and the Director of
Finance of the City of San Bernardino’s Municipal Water Department.
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NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL
OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1: The following officers or employees of the City of San Bernardino shall be
required to acquire official bonds in the following amounts:
SECTION 2: The official bonds of those officers or employees required to acquire official
bonds pursuant to the City Charter and this resolution shall include the following terms:
a. Every official bond shall be filed in the Office of the City Clerk within the time
prescribed for filing the oath.
b. Official bonds shall be recorded in a book kept for that purpose entitled “Record of
Official Bonds.”
c. The City Clerk shall carefully keep and preserve the bonds. He/she shall give certified
copies thereof to any person demanding copies, upon being paid the same fees as are
allowed by law for certified copies of papers in other cases.
d. The City Clerk shall keep the bond on file for one year following the expiration of the
term of the office for which the bond was issued at which time said bond may be
destroyed or otherwise disposed of.
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Officer / Employee: Amount:
City Attorney $1,000,000.00
City Clerk $1,000,000.00
City Manager $1,000,000.00
Director of Finance $1,000,000.00
General Manager of the City of San
Bernardino’s Municipal Water
Department
$1,000,000.00
Director of Finance of the City of San
Bernardino’s Municipal Water
Department
$1,000,000.00
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e. Any person appointed to fill a vacancy shall give a bond, corresponding in substance
and form with the bond required of the officer originally appointed, before entering
upon the duties of the office.
f. The official bonds required by the Charter and this Resolution shall inure to the benefit
of the City of San Bernardino as well as the officer under whom the officer or
employee serves.
g. Each such bond may contain a provision authorizing the Mayor and City Council to
cancel the bond or the contract of coverage of any officer or employee covered
thereunder.
h. All official bonds shall be made payable to the City of San Bernardino in such penalty
and with such conditions as required by this Resolution, or the law creating or
regulating the duties of the office.
i. The condition of an official bond shall be that the officer or employee will well, truly,
and faithfully perform all official duties then required of him/her by law, and also all
such additional duties as may be imposed on him/her by any existing law of the State
or law enacted subsequently to the execution of the bond.
j. Every official bond executed by any officer pursuant to this Resolution is in force and
obligatory upon the employee or officer and sureties therein for any and all breaches of
the conditions thereof committed during the time such employee or officer continues to
discharge any of the duties of or hold the office; and for the faithful discharge of all
duties which may be required of such employee or officer by any law enacted
subsequently to the execution of the bond. There shall be no personal liability upon, or
any right to recover against, a superior officer, or his or her bond, for any wrongful act
or omission of his or her subordinate, unless such superior officer was a party to, or
conspired in, such wrongful act or omission.
k. All bonds required pursuant to the City Charter and this Resolution shall be executed
by a responsible corporate surety, shall be approved as to form by the City Attorney,
and shall be filed with the City Clerk. Premiums on official bonds shall be paid by the
City.
l. Whenever, except in criminal prosecutions, any special penalty, forfeiture, or liability
is imposed on any officer or employee for the nonperformance or malperformance of
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official duties, the liability therefor attaches to the official bond of the officer, and to
the principal and sureties thereon.
m. No premium or charge paid by the City of San Bernardino shall exceed one-half of 1
percent per annum on the amount of the bond, but a minimum premium or charge of
twenty-five dollars ($25) per annum may be imposed.
SECTION 3: This Resolution shall become effective thirty-one (31) days after the final
reading of the ordinance repealing San Bernardino Municipal Code Chapter 2.62.
SECTION 4. Funding for this amendment to the City’s current public official bond
schedule is included in the FY 2017/2018 adopted budget within the Liability Insurance Fund.
Funding for future payments of the official bond premiums shall be budgeted under the Liability
Insurance Fund.
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, ESTABLISHING OFFICIAL BOND REQUIREMENTS
FOR THE POSITIONS OF CITY ATTORNEY, CITY CLERK, CITY MANAGER,
DIRECTOR OF FINANCE, GENERAL MANAGER OF THE CITY OF SAN
BERNARDINO’S MUNICIPAL WATER DEPARTMENT, AND FINANCE DIRECTOR
OF THE CITY OF SAN BERNARDINO’S MUNICIPAL WATER DEPARTMENT; AND
FIXING THE AMOUNT AND TERMS OF THOSE OFFICIAL BONDS.
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and City
Council of the City of San Bernardino at a _____________________ meeting thereof, held on the
____ day of ___________, 2018, by the following vote, to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, City Clerk
The foregoing Resolution is hereby approved this __________ day of __________, 2018.
R. Carey Davis, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz,
City Attorney
By:____________________
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Packet Pg. 333 Attachment: HR.Amendment to the Municipal Code Chapter 2.62 - Attachment 1.Resolution (5415 : Establishing Public Official Bond
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ORDINANCE NO. _______
ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, REPEALING CHAPTER 2.62 OF THE SAN
BERNARDINO MUNICIPAL CODE RELATED TO THE FILING OF OFFICIAL
BONDS
WHEREAS, the People of the City of San Bernardino adopted a new Charter at the
November 8, 2016 municipal election; and
WHEREAS, the new Charter was filed with the California Secretary of State on
January 31, 2017 and became effective on that date; and
WHEREAS, Ssection 509 of the new City Charter provides that the Council shall fix
by resolution the amounts and terms of the official bonds of all officers or employees who are
required by the Council to acquire such bonds; and
WHEREAS, prior to the effective date of the new City Charter, the filing of official
bonds was controlled by Chapter 2.62 of the San Bernardino Municipal Code, which
established a certain schedule for public officials and a blanket position bond; and
WHEREAS, City staff have reviewed the City’s current official bond requirements
and determined those requirements to be over inclusive of positions when compared to the
industry standard. Additionally, the current amounts do not provide sufficient monetary
coverage to adequately and effectively insure the City against the nonperformance or
malperformance of those designated public officials and thereby, do not acceptably mitigate
potential risks; and
WHEREAS, City staff have determined that it is necessary to recommend the
establishment of certain requirements and to increase the bond amounts to $1,000,000.00 each
for the classifications of City Attorney, City Clerk, City Manager, Director of Finance,
General Manager of the City of San Bernardino’s Municipal Water Department, and the
Director of Finance of the City of San Bernardino’s Municipal Water Department; and
WHEREAS, City staff have prepared and delivered to the Mayor and City Council a
proposed Resolution establishing official bond requirements for the positions of City
Attorney, City Clerk, City Manager, Director of Finance, General Manager of the City of San
Bernardino’s Municipal Water Department, and the Director of Finance of the City of San
Bernardino’s Municipal Water Department; and
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Packet Pg. 334 Attachment: HR.Amendment to the Municipal Code Chapter 2.62 - Attachment 1.Ordinance (5415 : Establishing Public Official Bond
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WHEREAS, Chapter 2.62 of the San Bernardino Municipal Code is inconsistent with
the terms of the Resolution being proposed by City staff; and
WHEREAS, Section 103 of the City Charter provides that all ordinances shall
continue in force until they shall have been duly repealed, amended, changed, or superseded
by proper authority as provided by the new Charter.
NOW, THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO DO ORDAIN AS FOLLOWS:
SECTION 1. Chapter 2.62 of the San Bernardino Municipal Code – Filing of
Official Bonds is hereby repealed.
SECTION 2. INCONSISTENCIES. Any provision of the San Bernardino Municipal
Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of
such inconsistencies, is hereby repealed or modified to the extent necessary to effect the
provisions of this Ordinance.
SECTION 3. SEVERABILITY. If any section, subsection, subdivision, sentence,
clause, phrase, or word in this Ordinance or any part thereof is for any reason held to be
unconstitutional, invalid or ineffective by any court of competent jurisdiction, such decision
shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any
part thereof. The Mayor and City Council hereby declares that it would have adopted each
section irrespective of the fact that any one or more subsections, subdivisions, sentences,
clauses, phrases, or words be declared unconstitutional, invalid, or ineffective.
SECTION 4. PUBLICATION. This Ordinance shall take effect and be in full force
thirty (30) days from and after the passage thereof, and prior to the expiration of fifteen (15) days
from its passage shall be published once in a newspaper of general circulation, printed and
published in the City of San Bernardino or, in the alternative, the City Clerk may cause to be
published a summary of this Ordinance and a certified copy of the text of this Ordinance shall be
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posted in the office of the City Clerk five (5) days prior to the date of adoption of this Ordinance,
and within fifteen (15) days after adoption, the City Clerk shall cause to be published the
aforementioned summary and shall post in the office of the City Clerk a certified copy of this
Ordinance together with the names of the members of the City Council voting for and against
the same.
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ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, REPEALING CHAPTER 2.62 OF THE SAN
BERNARDINO MUNICIPAL CODE RELATED TO THE FILING OF OFFICIAL
BONDS
I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor
and City Council of the City of San Bernardino at a _______________________ meeting
thereof, held on the _____ day of ______________, 2018, by the following vote, to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, CMC, City Clerk
The foregoing Ordinance is hereby approved this _____ day of __________________, 2018.
R. Carey Davis, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz, City Attorney
By:____________________
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Packet Pg. 337 Attachment: HR.Amendment to the Municipal Code Chapter 2.62 - Attachment 1.Ordinance (5415 : Establishing Public Official Bond
Consent Calendar
City of San Bernardino
Request for Council Action
Date: March 7, 2018
To: Honorable Mayor and City Council Members
From: Andrea M. Miller, City Manager
By: Trish Rhay, Director of Public Works
Rick Moreno, Facilities & Fleet Division Manager
Subject: Issuance of a Purchase Order to United Rentals, Inc., for
Multiquip Roller Equipment to Repair City Streets
Recommendation
Adopt a Resolution of the Mayor and City Council of the City of San Bernardino,
California, authorizing the Director of Finance to issue a Purchase Order to United
Rentals, Inc. for the purchase of one Multiquip Roller AR14H in the amount of
$16,901.46.
Background
The City currently rents equipment for street repairs throughout the City. Rental of
equipment is often more expensive than purchasing and maintaining our own
equipment.
The purchase of the Multiquip Roller AR14H will be a significant resource to the Public
Works Department and will allow staff to address asphalt related issues more effectively
and maintain safety and aesthetics throughout the City.
The equipment will assist the Public Works Department to enhance our service, and
promote a safer and more favorable aspect of our streets.
Discussion
City of San Bernardino Municipal Code Section 3.04010(B)(3) allows for purchases
authorized by the Mayor and City Council to proceed as an exemption to the City’s
normal purchasing process.
The contract with United Rentals was competitively bid by National Joints Power
Alliance (NJPA) and awarded to United Rentals. The Contract is included as
Attachment 2. Staff recommends accepting the contract for the City’s Mulitquip Roller
purchase.
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Packet Pg. 338 Attachment: PW.United Rentals Inc. STAFF REPORT (5416 : Issuance of a Purchase Order to United Rentals, Inc., for Multiquip Roller
Fiscal Impact
The total cost of the equipment is $16,901.46. City funds budgeted in the current year
under account number 001-400-0001*5704 Miscellaneous Equipment is available in the
Public Works Department.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino,
authorize the Director of Finance to issue a Purchase Order to United Rentals Inc. in the
amount of $16,901.46.
Attachments
Attachment 1 - Resolution; Exhibit A- NJPA Awarded Contract to United Rentals, Inc.
Attachment 2 - Exhibit B; United Rentals Quote
Ward: None
Synopsis of Previous Council Actions: None
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Packet Pg. 339 Attachment: PW.United Rentals Inc. STAFF REPORT (5416 : Issuance of a Purchase Order to United Rentals, Inc., for Multiquip Roller
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RESOLUTION NO._______
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AUTHORIZING AND DIRECTING THE
DIRECTOR OF FINANCE TO ISSUE A PURCHASE ORDER IN THE AMOUNT OF
$16,901.46 TO UNITED RENTALS, INC. FOR THE PURCHASE OF A MULTIQUIP
ROLLER AR14H
WHEREAS, the City requires equipment to perform general maintenance services
throughout City streets;
WHEREAS, the National Joints Power Alliance conducted a competitive bidding
process for similar equipment and awarded the contract to United Rentals, Inc. hereby
attached as Exhibit A;
WHEREAS, United Rentals, Inc. honored the same pricing for the City. The quote is
attached as Exhibit B.
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The Mayor and City Council of the City of San Bernardino hereby
authorizes and directs the Director of Finance to issue a Purchase Order to United Rentals,
Inc. in the amount of $16,091.46.
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AUTHORIZING AND DIRECTING THE
DIRECTOR OF FINANCE TO ISSUE A PURCHASE ORDER IN THE AMOUNT OF
$16,901.46 TO UNITED RENTALS, INC. FOR THE PURCHASE OF A MULTIQUIP
ROLLER AR14H
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
and City Council of the City of San Bernardino at a ______________________________
meeting thereof, held on the _____ day of ________________, 2018, by the following vote,
to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, CMC, City Clerk
The foregoing Resolution is hereby approved this _____ day of ________________, 2018.
Approved as to form: R. Carey Davis, Mayor
Gary D. Saenz, City Attorney City of San Bernardino
By:
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EXHIBIT A 13.b
Packet Pg. 342 Attachment: PW.United Rentals Inc. RESOLUTION (5416 : Issuance of a Purchase Order to United Rentals, Inc., for Multiquip Roller Equipment)
EXHIBIT B 13.b
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EXHIBIT B 13.b
Packet Pg. 344 Attachment: PW.United Rentals Inc. RESOLUTION (5416 : Issuance of a Purchase Order to United Rentals, Inc., for Multiquip Roller Equipment)
EXHIBIT B 13.b
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EXHIBIT B 13.b
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EXHIBIT B 13.b
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EXHIBIT B 13.b
Packet Pg. 348 Attachment: PW.United Rentals Inc. RESOLUTION (5416 : Issuance of a Purchase Order to United Rentals, Inc., for Multiquip Roller Equipment)
Consent Calendar
City of San Bernardino
Request for Council Action
Date: March 7, 2017
To: Honorable Mayor and City Council Members
From: Andrea M. Miller, City Manager
By: Jarrod Burguan, Chief of Police
Ron Maass, Captain
Subject: Authorization to issue a Purchase Order to Aardvark for the
Purchase of SWAT Tactical Vests
Recommendation
Adopt a Resolution of the Mayor and City Council of the City of San Bernardino,
California, authorizing the issuance of a Purchase Order to Aardvark in the amount of
$92,232.00 for the purchase of SWAT tactical vests.
Background
The SBPD SWAT Team consists of 22 officers and tactical medics. Due to the
enhanced nature of the risk associated with SWAT operations, all officers are equipped
with tactical ballistic vests designed to defeat high velocity rifle rounds to include those
frequently encountered. The majority of the current inventory of vests have exceeded
their 5 year manufacturer’s guarantee, which expired in 2017. While there are six vests
that have from 2-3 years remaining, the department has chosen to transition to navy
blue colored vest systems, from the current military colored, tan multi-cam pattern. This
is intended to minimize the public perception that the SWAT team is a quasi-military
unit, as opposed to a unit focused on public safety and law enforcement. Due to the
construction of the remaining vests, it is not possible to simply change the color.
Discussion
Request for Quotes were sent through the formal bid process under RFQ F-17-42 on
November 27, 2017, attached hereto as Attachment 2. Quotes were submitted by one
vendor; Aardvark the selected vendor. Staff requests a Purchase Order for the full
amount of the bid.
Fiscal Impact
Sufficient funding is available in the Adopted FY2017/2018 budget; Police General
Fund.
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Conclusion
Adopt Resolution authorizing the Director of Finance to issue a Purchase Order to
Aardvark in the amount of $92,232.00.
Attachments
Attachment 1 – Resolution
Attachment 2 – RFP F-17-42
Ward:
Synopsis of Previous Council Actions:
Insert information in list form if applicable.
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AUTHORIZING THE DIRECTOR OF FINANCE TO
ISSUE A PURCHASE ORDER TO AARDVARK IN THE AMOUNT OF $92,232.00 FOR
THE PURCHASE OF SWAT TACTICAL VESTS
WHEREAS, a request for quotes was sent out on November 27, 2017 as RFQ F-17-42;
and
WHEREAS, Aarvark was selected as the lowest responsible bidder.
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AS FOLLOWS:
SECTION 1. The Director of Finance is hereby authorized to issue an annual Purchase
Order to Aardvark in the amount of $92,232.00, for the purchase of 25 SWAT vests.
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AUTHORIZING THE DIRECTOR OF FINANCE TO
ISSUE A PURCHASE ORDER TO AARDVARK IN THE AMOUNT OF $92,232.00 FOR
THE PURCHASE OF SWAT TACTICAL VESTS
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
City Council of the City of San Bernardino at a meeting thereof, held
on the day of , 2018, by the following vote, to wit:
COUNCILMEMBERS: AYES NAYS ABSTAIN ABSENT
MARQUEZ ______ ______ ______ ______
BARRIOS ______ ______ ______ ______
VALDIVIA ______ ______ ______ ______
SHORETT ______ ______ ______ ______
NICKEL ______ ______ ______ ______
RICHARD ______ ______ ______ ______
MULVIHILL ______ ______ ______ ______
___________________________
Georgeann Hanna, City Clerk
The foregoing Resolution is hereby approved this of __ , 2018.
___________________________
R. Carey Davis, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz, City Attorney
By: ____________________________________
2
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RFQ F-17-42 12/14/2017 3:00 P.M., PST
ITEMS/CATEGORY
DESCRIPTION 1 2 3 4
Aardvark BPS Tactical, Inc.
Swat Vests
Item #LaVerne, Ca Mentone, Ca
1
Project 7 Tactical Armor Carrier
System (QTY 25)85,400.00 No Bid
2 Shipping -
8.0% Sales Tax $6,832.00
Local Vendor ? N
1% local vendor preference
GRAND TOTAL 92,232.00$ No Bid -$ -$
Opened and announced by Vanessa Slouka Recorded by Art Torres
BID SUMMARY SHEET
Vendors
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BID DATA SHEET
Department: Police Department
RFP / RFQ # F-17-42 Description: Swat Vests
Bid Issue (advertisement) Date: 11/27/17 Bid Due Date: 12/14/17
Methods of Public Advertisement:
The SB County Sun
SB Area Chamber of Commerce (SBACC)
City of SB Website & SB Connect
“Notice Inviting Bids / Proposals” sent by Purchasing:
Fax
Email
US Postal Service – Certified Mail
Local Vendors (within SB City Limits): 10
Non-Local Vendors: 00
Total Vendors 10
Number of Bids / Proposals Received:
Local Vendors (within SB City Limits): 00
Non-Local Vendors: 01
Total Bid Packages Received: 01
# of Vendors who declined to bid (No Bid): 01
Prepared by: Vanessa Slouka Date: 12/14/17
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Consent Calendar
City of San Bernardino
Request for Council Action
Date: March 7, 2018
To: Honorable Mayor and City Council Members
From: Andrea M. Miller, City Manager
By: Mark Persico, AICP, Community Development Director
Subject: Final Reading – Development Code Amendment 18-02
Chapter 5.10, Chapter 8.97 and Chapter 8.99
Recommendation
Accept for final reading and adopt the following:
1. Ordinance MC-1464 approving Commercial Cannabis Activity (Chapter 5.10 –
Development Code Amendment 18-02A);
2. Ordinance MC-1465 approving Smoking Cannabis in Public Places (Chapter
8.97 – Development Amendment 18-02B); and
3. Ordinance MC-1466 approving Personal Cultivation in Private Residences
(Chapter 8.99 – Development Code Amendment 18-02C).
Background
On February 21, 2018, the Mayor and City Council conducted a public hearing on
Development Code Amendments 18-02A, 18-02B and 18-02C and introduced
Ordinances MC-1464, MC-1465, and MC-1466, subject to the changes outlined below
for first reading. The changes have been made in a redline/strike-out format to track the
exact changes for ease of reference.
Commercial Cannabis Activity – Chapter 5.10
• 5.10.090 (d) – insert the word “initial”
• 5.10.110 and 5.10.180 – change the timeframe from “36” months to “12” months
• 5.10.370 (a) – insert “subject to approval of the Mayor and City Council”
Smoking Cannabis in Public Places – Chapter 8.97
• 8.97.070 (A) – increase from “25” feet to “50” feet
Personal Cultivation in Private Residences – Chapter 8.99
• 8.99.040(A)(2) – insert text indicating that cultivating more than six plants is
considered commercial cannabis activity
• 8.99.040 (C) – requires registration for individuals involved with personal
cultivation
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Discussion/Next Steps
The next steps in the process include adoption of a fee resolution to recover the cost of
processing permits, establishing expectations related to the review process for
commercial cannabis permits, discussion of a potential tax measure for the November
ballot and the self-certification process for personal cultivation. Staff is currently working
on all of these items.
Financial Analysis
Staff is currently working to develop fees related to the provision of services
contemplated in the three Ordinances. A staff report and resolution will be presented for
Mayor and City Council consideration on March 21, 2018.
Conclusion
Final reading of the Ordinances will allow the City to move forward and issue permits
under the new structure.
Attachments
Attachment 1 Ordinance MC-1464 (Chapter 5.10 of the San Bernardino Municipal
Code – Commercial Cannabis Activity)
Attachment 2 Ordinance MC-1465 (Chapter 8.97 of the San Bernardino Municipal
Code – Smoking Cannabis in Public Places)
Attachment 3 Ordinance MC-1466 (Chapter 8.99 of the San Bernardino Municipal
Code – Personal Cultivation)
Ward: Citywide
Synopsis of Previous Council Actions:
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ORDINANCE NO. MC-1464
ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, ADOPTING CHAPTER 5.10 OF THE SAN
BERNARDINO MUNICIPAL CODE RELATED TO REGULATION OF
COMMERCIAL CANNABIS ACTIVITIES (DEVELOPMENT CODE AMENDMENT
NO. 18-02A)
WHEREAS, the City of San Bernardino, California (“City”) is a municipal
corporation, duly organized under the Charter of the City of San Bernardino and the
Constitution and laws of the State of California; and,
WHEREAS, at the General Election held on November 5, 1996, California voters
approved Proposition 215, commonly known as the “Compassionate Use Act of 1996”
(“CUA”) with the purpose of allowing medical patients to cultivate and use cannabis without
fear of State prosecution; and,
WHEREAS, on January 1, 2004, Senate Bill 420 (codified as Health and Safety Code
Sections 11362.7, et seq., entitled the “Medical Marijuana Program Act” (“MMPA”) went
into effect and was enacted to clarify the scope of the CUA and to allow cities and counties to
adopt and enforce regulations consistent with the CUA and MMPA; and,
WHEREAS, on October 9, 2015, Governor Brown approved a series of bills
commonly known as the “Medical Cannabis Regulation and Safety Act” (“MCRSA”)
establishing a comprehensive State licensing and regulatory framework for the cultivation,
manufacture, transportation, storage, distribution, and sale of medical cannabis; and which
recognizes the authority of local jurisdictions to either impose additional restrictions or
prohibit certain activities related to the cultivation, manufacture, transportation, storage,
distribution, delivery, and sale of medical cannabis; and,
WHEREAS, at the General Election held on November 8, 2016, California voters
approved Proposition 64, commonly known as the “Control, Regulate and Tax Adult Use of
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Marijuana Act” (“AUMA”), establishing a comprehensive State licensing and regulatory
framework for the cultivation, manufacture, transportation, storage, distribution, and sale of
recreational cannabis, and which recognizes the authority of local jurisdictions to either
impose additional restrictions or prohibit certain activities related to the cultivation,
manufacture, transportation, storage, distribution, delivery, and sale of recreational cannabis;
and,
WHEREAS, on June 27, 2017, Governor Brown approved Senate Bill 94, commonly
known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”)
harmonizing MCRSA and AUMA into a single comprehensive State licensing and regulatory
framework for both medical and recreational cannabis activities; and
WHEREAS, at the General Election held on November 8, 2016, San Bernardino
voters approved Measure O with 26,037 votes and 55.12% approval, and defeated competing
Measures N and P, with the intent on establishing a comprehensive local licensing and
regulatory framework for the cultivation, manufacture, transportation, storage, distribution,
and sale of medical and recreational cannabis in the City of San Bernardino; and
WHEREAS, the Superior Court for the State of California has rendered a Final
Statement of Decision determining that Measure O is invalid in the following cases: Kush
Concepts, et al., v. City of San Bernardino, Superior Court Case No. CIVDS 1702131;
Quiang Ye, et al., v. City of San Bernardino, et al., Superior Court Case No. CIVDS 1704276;
Karmel Roe v. City of San Bernardino, et al., Superior Court Case No. CIVDS 1712424; and,
WHEREAS, the City will submit a proposed judgment finalizing the Court’s decision
in the above cases; and
WHEREAS, on December 20, 2017, the Mayor and City Council, anticipating
Measure O being invalidated, and seeking to protect the City’s authority to regulate
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commercial medical and recreational cannabis activities, adopted Ordinance No. MC-1452,
establishing a moratorium prohibiting all land use entitlements, building permits, business
licenses and any other applicable approval or decisions for unregulated commercial marijuana
activities that would take effect upon Measure O’s invalidation; and,
WHEREAS, on January 22, 2018, the Mayor and City Council opened a duly noticed
public hearing on an extension of the moratorium; and,
WHEREAS, on January 22, 2018, the Mayor and City Council continued the public
hearing to February 1, 2018 to have additional time for public comment; and,
WHEREAS, on February 1, 2018, the Mayor and City Council by a vote of 7-0 voted
to extend the moratorium 10 months and 15 days to December 18, 2018; and,
WHEREAS, on February 1, 2018, the Mayor and City Council directed City staff to
expeditiously prepare regulations for commercial cannabis activities within the City of San
Bernardino; and,
WHEREAS, commercial cannabis businesses that have operated unpermitted within
the City and elsewhere have caused significant public safety problems, including but not
limited to: burglaries and takeover robberies of cannabis businesses, robberies of customers
leaving cannabis businesses, increases in crime (especially theft and robberies) in the vicinity
of cannabis businesses, offensive odors, illegal re-selling of cannabis obtained from cannabis
businesses, physicians issuing apparently fraudulent recommendations for the use of cannabis,
cannabis businesses staff selling cannabis to customers with obviously counterfeit patient
identification cards, street dealers attempting to sell cannabis to cannabis businesses
customers, cannabis businesses customers using cannabis and then driving under the influence
of cannabis, the sale of illegal drugs other than cannabis in the cannabis businesses, sales of
cannabis to minors, illegal firearms possessed by felons within cannabis businesses, health
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and safety violations within cannabis businesses related to the City’s Fire and Building Codes;
and,
WHEREAS, there is a need to adopt health, safety and welfare regulations to avoid
adverse impacts on the City’s residents and businesses that may arise from commercial
cannabis activities; and,
WHEREAS, an effective regulatory system governing commercial cannabis activities
in the City of San Bernardino, as provided in this Ordinance, will address potential adverse
impacts to the public health, welfare, and safety, thereby allowing commercial cannabis
activities in a manner consistent with State law; and,
WHEREAS, the Mayor and City Council desire to promote a successful business
environment in the City for commercial cannabis businesses and their neighboring non-
cannabis businesses; and,
WHEREAS, the Mayor and City Council desire to ensure workers for commercial
cannabis businesses are treated and paid fairly; and,
WHEREAS, the Mayor and City Council desire to protect the environment within the
City by promoting beneficial uses of water and protecting clean air; and,
WHEREAS, the reliability of the electricity system within the City is stressed during
peak usage times, especially during the summer months, impacting the health, safety, and
welfare of the residents that may not have adequate access to cooling; and,
WHEREAS, commercial cannabis activities, especially cultivation, require significant
amounts of water and electricity, and have the potential to negatively affect air quality; and,
WHEREAS, local regulation on commercial cannabis activity requires the balancing
of numerous competing interests, including: the interests of the industry in have a favorable
business and investment environment; the interests of business and property owners in
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protecting their property values; the interests of the residents in neighborhoods with high
quality of life; the interests of workers in their working conditions; the interests of patients in
access to cannabis for medical reasons; the interests in protecting vulnerable populations such
as seniors; the interest in protecting the environment and scarce resources and the interests in
law enforcement in protecting the public safety of our City; and,
WHEREAS, the Mayor and City Council, through committees, workshops, and public
hearings have attempted to consider and weigh these competing interests to develop an
Ordinance that best serves the public interest; and,
WHEREAS, the City will need to consider adoption of necessary fees to raise
sufficient revenue to enforce the provisions of this Ordinance; and,
WHEREAS, on February 7, 2018, the Mayor and City Council directed that this
Ordinance be submitted to the Planning Commission in conformity with the San Bernardino
Municipal Code and State law; and,
WHEREAS, the Planning Division of the Community Development Department of
the City of San Bernardino has reviewed this Ordinance for consistency with the City of San
Bernardino General Plan and compliance with the San Bernardino Municipal Code; and,
WHEREAS, on February 3, 2018, pursuant to the requirements of the San Bernardino
Municipal Code, the City gave public notice by advertising in the San Bernardino Sun, a
newspaper of general circulation within the City of San Bernardino of the holding of a public
hearing at which this Ordinance would be considered by the Planning Commission; and,
WHEREAS, on February 13, 2018, pursuant to the requirements of the San
Bernardino Municipal Code, the Planning Commission held the duly noticed public hearing at
which interested persons had an opportunity to testify in support of, or opposition to this
Ordinance; and,
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WHEREAS, pursuant to the San Bernardino Municipal Code, the Planning
Commission has the authority to recommend to the Mayor and City Council the approval of
the Ordinance; and,
WHEREAS, on February 13, 2018, by a vote of 7-0, the Planning Commission
recommends approval of the Ordinance and made the findings contained in Resolution No.
2018 -014 PC, attached hereto and incorporated herein by this reference as through set forth in
full; and,
WHEREAS, federal law, codified at 21 U.S.C. Sections 801 et seq., entitled the
“Controlled Substances Act” (“CSA”) makes it unlawful to manufacture, distribute, or possess
any controlled substances, including cannabis, which has, as a Schedule I drug under the
CSA, been determined by the federal government to have a high potential for abuse and no
accepted medical value in treatment; and,
WHEREAS, nothing in this Ordinance is intended to authorize the possession, use, or
provision of cannabis for purposes that violate federal law.
NOW, THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO DO ORDAIN AS FOLLOWS:
SECTION 1. INCORPORATION OF RECITALS
The foregoing recitals set forth above are true and correct and are a substantive part of
this Ordinance.
SECTION 2. AUTHORITY
Pursuant to Sections 5 and 7 of Article XI of the California Constitution, the Charter
of the City of San Bernardino, and State law, the City of San Bernardino is authorized to
adopt ordinances that protect the health, safety and welfare of its residents and businesses.
The adoption of zoning regulations is a permissible exercise of this authority.
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SECTION 3. ADOPTION OF ORDINANCE
Chapter 10, entitled “Commercial Cannabis Activities”, of Title 5 “Business
Registration and Regulations” of the San Bernardino Municipal Code is approved and shall be
added to the San Bernardino Municipal Code as follows:
Chapter 5.10
COMMERCIAL CANNABIS ACTIVITIES
Sections:
5.10.010 Purpose and Intent
5.10.020 Legal Authority
5.10.030 Commercial Cannabis Activities Prohibited Unless Specifically
Authorized by this Chapter
5.10.040 Compliance with Laws
5.10.050 Definitions
5.10.060 Commercial Cannabis Business Permit Required to Engage in
Commercial Cannabis Business
5.10.070 Cannabis Employee Requirements
5.10.080 Maximum Number and Type of Authorized Commercial Cannabis
Businesses Permitted
5.10.090 Initial Application Procedure
5.10.100 Persons Prohibited from Holding a Commercial Cannabis Business
Permit or Being Employed by a Commercial Cannabis Business
5.10.110 Expiration of Commercial Cannabis Business Permits
5.10.120 Revocation of Permits
5.10.130 Renewal Applications
5.10.140 Effect of State License Suspension, Revocation, or Termination
5.10.150 Appeals
5.10.160 Written Request for Appeal
5.10.170 Appeal Hearing
5.10.180 Commercial Cannabis Business Permittee Selection Process
5.10.190 Updated Information
5.10.200 Change in Ownership or Location
5.10.210 City Business Registration Certificate
5.10.220 Building Permits and Inspection
5.10.230 Certification from the Community Development Director
5.10.240 Right to Occupy and to Use Property
5.10.250 Location and Design of Cannabis Businesses
5.10.260 Limitations on City’s Liability
5.10.270 Records and Recordkeeping
5.10.280 Security Measures
5.10.290 Restriction on Alcohol & Tobacco Sales
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5.10.300 Fees and Charges
5.10.310 Miscellaneous Operating Requirements
5.10.320 Other Operational Requirements
5.10.330 Operating Requirements for Retailer Facilities; Delivery
5.10.340 Operating Requirements for Commercial Cultivation Facilities
5.10.350 Operating Requirements for Testing Labs
5.10.360 Cannabis Manufacturing: Edibles and Other Cannabis Products; Sale or
Distribution of Edible and Other Cannabis Products
5.10.370 Promulgation of Regulations, Standards and Other Legal Duties
5.10.380 Community Relations
5.10.390 Fees Deemed Debt to the City of San Bernardino
5.10.400 Permittee Responsible for Violations
5.10.410 Inspection and Enforcement
5.10.420 Compliance with State Regulation
5.10.430 Violations Declared a Public Nuisance
5.10.440 Each Violation a Separate Offense
5.10.450 Criminal Penalties
5.10.460 Remedies Cumulative and Not Exclusive
5.10.010 Purpose and Intent
It is the purpose and intent of this Chapter to implement the provisions of the Medicinal and
Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”) to accommodate the needs of
medically-ill persons and provide access to cannabis for medicinal purposes as recommended
by their health care provider(s), and to provide access to adult-use for persons over the age of
21 as authorized by the Control, Tax & Regulate the Adult Use Cannabis Act (“AUMA” or
“Proposition 64” passed by California voters in 2016), while imposing sensible regulations on
the use of land to protect the City’s residents, neighborhoods, and businesses from
disproportionate and potentially deleterious negative impacts. As such, it is the purpose and
intent of this Chapter to regulate the cultivation, processing, manufacturing, testing, sale,
delivery, distribution and transportation of medicinal and adult-use cannabis and cannabis
products in a responsible manner to protect the health, safety, and welfare of the residents of
the City of San Bernardino and to enforce rules and regulations consistent with State law. It is
the further purpose and intent of this Chapter to require all commercial cannabis operators to
obtain and renew, annually, a permit to operate within the City of San Bernardino. Nothing in
this Chapter is intended to authorize the possession, use, or provision of cannabis for
purposes, or in any manner, that violates state or federal law. The provisions of this Chapter
are in addition to any other permits, licenses and approvals which may be required to conduct
business in the City, and are in addition to any permits, licenses and approval required under
State, City, or other law.
5.10.020 Legal Authority
Pursuant to Sections 5 and 7 of Article XI of the California Constitution, the provisions of
MAUCRSA, any subsequent State legislation and/or regulations regarding same, the City of
San Bernardino is authorized to adopt ordinances that establish standards, requirements and
regulations for the licensing and permitting of commercial medicinal and adult-use cannabis
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activity. Any standards, requirements, and regulations regarding health and safety, security,
reporting and worker protections established by the State of California, or any of its
departments or divisions, shall be the minimum standards applicable in the City of San
Bernardino to all commercial cannabis activity.
5.10.030 Commercial Cannabis Activities Prohibited Unless Specifically
Authorized by this Chapter
Except as specifically authorized in this Chapter, the commercial cultivation, manufacture,
processing, storing, laboratory testing, labeling, sale, delivery, distribution or transportation
(other than as provided under Section 26090(e) of the Business and Professions Code), of
cannabis or cannabis product is expressly prohibited in the City of San Bernardino.
5.10.040 Compliance with Laws
Nothing in this Chapter shall be construed as authorizing any actions that violate federal, State
or local law with respect to the operation of a commercial cannabis business. It shall be the
responsibility of the owners, the operators, and the employees of the commercial cannabis
business to ensure that the commercial cannabis business is, at all times, operating in a
manner compliant with all applicable federal, State and local laws, including for as long as
applicable, the Compassionate Use Act (“Prop. 215”), the Medical Marijuana Program Act
(“MMPA”) and the 2008 Attorney General Guidelines for the Security and Non-Diversion of
Cannabis for Medical Purposes (“AG Guidelines”) (collectively “the Medical Cannabis
Collective Laws”), any subsequently enacted State law or regulatory, licensing, or
certification requirements, and any specific, additional operating procedures or requirements
which may be imposed as conditions of approval of the commercial cannabis business permit.
5.10.050 Definitions
When used in this Chapter, the following words shall have the meanings ascribed to them as
set forth herein. Any reference to California statutes includes any regulations promulgated
thereunder, and is deemed to include any successor or amended version of the referenced
statute or regulatory provision.
(a) “A-license” means a state license issued under Division 10 of the Business and Professions
Code for cannabis or cannabis products that are intended for adults 21 years of age and over
and who do not possess physician’s recommendations.
(b) “A-licensee” means any person holding a license under Division 10 of the Business and
Professions Code for cannabis or cannabis products that are intended for adults 21 years of
age and over and who do not possess physician’s recommendations.
(c) “Applicant” means a person applying for a permit pursuant to this Chapter.
(d) “Harvest batch” means a specifically identified quantity of dried flower or trim, leaves,
and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if
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applicable, cultivated using the same pesticides and other agricultural chemicals, and
harvested at the same time.
(e) “Bureau” means the Bureau of Cannabis Control within the Department of Consumer
Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis
Regulation, and the Bureau of Medical Marijuana Regulation.
(f) “Cannabis” means all parts of the Cannabis sativa Linnaeus, Cannabis indica, or Cannabis
ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified,
extracted from any part of the plant; and every compound, manufacture, salt, derivative,
mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated
resin, whether crude or purified, obtained from cannabis. “Cannabis” does not include the
mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of
the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the
mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of
the plant which is incapable of germination. For the purpose of this division, “cannabis” does
not mean “industrial hemp” as defined by Section 11018.5 of the Health and Safety Code.
(g) “Cannabis concentrate” means cannabis that has undergone a process to concentrate one or
more active cannabinoids, thereby increasing the product’s potency. Resin from granular
trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis
concentrate is not considered food, as defined by Section 109935 of the Health and Safety
Code, or drug, as defined by Section 109925 of the Health and Safety Code.
(h) “Cannabis product” means a product containing cannabis, including, but not limited to,
manufactured cannabis, - intended to be sold for use by cannabis patients in California
pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5
of the California Health and Safety Code (as the same may be amended from time-to-time) or
pursuant to the Adult Use of Cannabis Act. For purposes of this Chapter, “cannabis” does not
include industrial hemp as defined by Section 81000 of the California Food and Agricultural
Code or Section 11018.5 of the California Health and Safety Code.
(i) “Canopy” means the designated area(s) at a premises, except nurseries, that will contain
mature plants at any point in time. (1) Canopy shall be calculated in square feet and measured
using clearly identifiable boundaries of all areas(s) that will contain mature plants at any point
in time, including all of the space(s) within the boundaries; (2) Canopy may be noncontiguous
but each unique area included in the total canopy calculation shall be separated by an
identifiable boundary which includes, but is not limited to: interior walls, shelves, greenhouse
walls, hoop house walls, garden benches, hedgerows, fencing, garden beds or garden plots;
and if mature plants are being cultivated using a shelving system, the surface area of each
level shall be included in the total canopy calculation.
(j) “Caregiver” or “primary caregiver” has the same meaning as that term is defined in Section
11362.7 of the California Health and Safety Code.
(k) “City” means the City of San Bernardino, a California Charter City.
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(l) “Commercial cannabis activity” includes the cultivation, possession, manufacture,
distribution, processing, storing, laboratory testing, packaging, labeling, transportation,
delivery or sale of cannabis and cannabis products as provided for in this Chapter.
(m) “Commercial cannabis business” means any person which engages in commercial
cannabis activity.
(n) “Commercial cannabis business permit” means a regulatory permit issued by the City of
San Bernardino pursuant to this Chapter to a commercial cannabis business, and is required
before any commercial cannabis activity may be conducted in the City. The initial permit and
annual renewal of a commercial cannabis business permit is made expressly contingent upon
the business’ ongoing compliance with all of the requirements of this Chapter and any
regulations adopted by the City governing the commercial cannabis activity at issue.
(o) “Cultivation” means any activity involving the planting, growing, harvesting, drying,
curing, grading, or trimming of cannabis.
(p) “Cultivation site” means a location where cannabis is planted, grown, harvested, dried,
cured, graded, or trimmed, or a location where any combination of those activities occurs.
(q) “Customer” means a natural person 21 year of age or over or a natural person 18 year of
age or older who possesses a physician’s recommendation.
(r) “Day care center” has the same meaning as in Section 1596.76 of the Health and Safety
Code.
(s) “Delivery” means the commercial transfer of cannabis or cannabis products to a customer.
“Delivery” also includes the use by a retailer of any technology platform owned and
controlled by the retailer.
(t) “Dispensing” means any activity involving the retail sale of cannabis or cannabis products
from a retailer.
(u) “Distribution” means the procurement, sale, and transport of cannabis and cannabis
products between licensees.
(v) “Distributor” means a person holding a valid commercial cannabis business permit issued
by the City of San Bernardino, and, a valid state license for distribution, required by state law
to engage in the business of purchasing cannabis from a licensed cultivator, or cannabis
products from a licensed manufacturer, for sale to a licensed retailer.
(w) “Dried flower” means all dead cannabis that has been harvested, dried, cured, or
otherwise processed, excluding leaves and stems.
(x) "Employee" means any natural person who is employed or retained as an independent
contractor by any permittee in consideration for direct or indirect monetary wages or profit, or
any natural person who volunteers his or her services for an employer.
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(y) “Fire Department” has the same meaning as in Section 2.12.020 of this Code.
(z) “Labeling” means any label or other written, printed, or graphic matter upon a cannabis
product, upon its container.
(aa) “License” means a permit or license issued by the State of California, or one of its
departments or divisions, under Division 10 of the Business and Professions Code to engage
in commercial cannabis activity, including both an A-license and an M-license, as well as a
testing laboratory license.
(ab) “Licensee” means any person holding a state license under Division 10 of the Business
and Professions Code, regardless of whether the license held is an A-license or an M-license,
and includes the holder of a testing laboratory license.
(ac) “Licensing authority” means the state agency responsible for the issuance, renewal, or
reinstatement of the license, or the state agency authorized to take disciplinary action against
the licensee.
(ad) “Live plants” means living cannabis flowers and plants, including seeds, immature plants,
and vegetative stage plants.
(ae) “M-license” means a state license issued for commercial cannabis activity involving
medicinal cannabis.
(af) “M-licensee” means any person holding a license for commercial cannabis activity
involving medicinal cannabis.
(ag) “Manufacture” means to compound, blend, extract, infuse, or otherwise make or prepare
a cannabis product.
(ah) “Manufactured cannabis” means raw cannabis that has undergone a process whereby the
raw agricultural product has been transformed into a concentrate, extraction or other
manufactured product intended for internal consumption through inhalation or oral ingestion
or for topical application.
(ai) “Manufacturer” means a person issued a valid commercial cannabis business permit by
the City of San Bernardino and, a valid state license as required, that conducts the production,
preparation, propagation, or compounding of cannabis or cannabis products either directly or
indirectly or by extraction methods, or independently by means of chemical synthesis, or by
a combination of extraction and chemical synthesis at a fixed location that packages or
repackages cannabis or cannabis products or labels or container.
(aj) “Medicinal cannabis” or “medicinal cannabis product” means cannabis or a cannabis
product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of
1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a
medicinal cannabis patient in California who possesses a physician’s recommendation.
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(ak) “Nonvolatile solvent” means any solvent used in the extraction process that is not a
volatile solvent. For purposes of this Chapter, a nonvolatile solvent includes carbon dioxide
(CO2) used for extraction and ethanol used for extraction or post-extraction processing.
(al) “Nursery” means a person issued a valid commercial cannabis business permit from the
City of San Bernardino and, a valid state license as required that produces only clones,
immature plants, seeds, and other agricultural products used specifically, for the propagation
and cultivation of cannabis.
(am) “Operation” means any act for which a commercial cannabis business permit is required
under the provisions of this Chapter, or any commercial transfer of cannabis or cannabis
products.
(an) “Owner” means any of the following:
(1) A person with an aggregate ownership interest of 20 percent or more in the person
applying for a license or a licensee, unless the interest is solely a security, lien, or
encumbrance.
(2) The Executive Director of a nonprofit or other entity.
(3) A member of the board of directors of a nonprofit.
(4) An individual who will be participating in the direction, control, or management
of the person applying for a commercial cannabis business permit or who has a financial
interest in the commercial cannabis business other than a fixed lease of real property
(ao) “Package” means any container or receptacle used for holding cannabis or cannabis
products.
(ap) “Patient” or “qualified patient” shall have the same definition as California Health and
Safety Code Section 11362.7 et seq., as it may be amended, and which means a person who is
entitled to the protections of California Health & Safety Code Section 11362.5.
(aq) “Permit” means a commercial cannabis business permit issued by the City of San
Bernardino under this Chapter.
(ar) “Permittee” means any person holding a permit under this Chapter.
(as) “Person” includes any individual, firm, partnership, joint venture, association,
corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any
other group or combination acting as a unit, and the plural as well as the singular.
(at) “Physician’s recommendation” means a recommendation by a physician and surgeon that
a patient use cannabis provided in accordance with the Compassionate Use Act of 1996
(Proposition 215), found at Section 11362.5 of the Health and Safety Code.
(au) “Premises” means the designated structure or structures and land specified in the
application that is owned, leased, or otherwise held under the control of the applicant or
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permittee where the commercial cannabis activity will be or is conducted. The premises shall
be a contiguous area and shall only be occupied by one permittee.
(av) “Purchaser” means the customer who is engaged in a transaction with a permittee for
purposes of obtaining cannabis or cannabis products.
(aw) “Retailer” means a commercial cannabis business that offers cannabis, cannabis
products, or devices for the use of cannabis or cannabis products, either individually or in any
combination, for retail sale, including an establishment (whether fixed or mobile) that
delivers, pursuant to express authorization, cannabis and cannabis products as part of a retail
sale, and where the operator holds a valid commercial cannabis business permit from the City
of San Bernardino authorizing the operation of a retailer, and a valid state license as required
by state law to operate a retailer.
(ax) “Sell,” “sale,” and “to sell” include any transaction whereby, for any consideration, title
to cannabis or cannabis products are transferred from one person to another, and includes the
delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the
same and soliciting or receiving an order for the same, but does not include the return by the
original purchaser to the location where the product was purchased.
(ay) “Testing laboratory” means a laboratory, facility, or entity in the state that offers or
performs tests of cannabis or cannabis products and that is both of the following:
(1) Accredited by an accrediting body that is independent from all other persons
involved in commercial cannabis activity in the State; and
(2) Holds a valid commercial cannabis business permit from the City and a state
license as required.
(az) “Transport” means the transfer of cannabis products from the permitted business location
of one licensee to the permitted business location of another licensee, for the purposes of
conducting commercial cannabis activity.
(ba) “Youth center” has the same meaning as in Section 11353.1 of the Health and Safety
Code.
(bb) “Volatile solvent” means any solvent that is or produces a flammable gas or vapor that,
when present in the air in sufficient quantities, will create explosive or ignitable mixtures.
Examples of volatile solvents include, but are not limited to, butane, hexane, and propane.
5.10.060 Commercial Cannabis Business Permit Required to Engage in
Commercial Cannabis Business
(a) No person may engage in any commercial cannabis business or in any commercial
cannabis activity within the City of San Bernardino including cultivation, manufacture,
processing, laboratory testing, transporting, dispensing, special events, distribution, or sale of
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cannabis or a cannabis product unless the person (1) has a valid commercial cannabis business
permit from the City of San Bernardino; (2) has a valid State Seller’s Permit; and (3) is
currently in compliance with all applicable state and local laws and regulations pertaining to
the commercial cannabis business and the commercial cannabis activities, including the duty
to obtain a City business registration certificate and any required state licenses. Engaging in a
commercial cannabis business or in any commercial cannabis activity includes establishing,
owning, managing, conducting, leasing to, operating, causing, permitting, aiding, abetting,
suffering or concealing the fact of such an act.
(b) Until Health & Safety Code Section 11362.775, subdivision (a), is repealed, the City
intends that person’s eligible to operate collectives or cooperatives under that subdivision
shall be eligible to apply for a City conditional permit to conduct commercial cannabis
activities, but only to the degree those activities are authorized under state law for collectives
and cooperatives. When the Health & Safety Code Section 11362.775, subdivision (a), is
repealed, or as soon as collectives and cooperatives are no longer permitted to engage in
commercial cannabis activity without a state license under state law, any conditional permit
issued to a commercial cannabis business that has not obtained a state license for the
commercial cannabis activities shall expire and shall be null and void. Such businesses shall
no longer be authorized to engage in any commercial cannabis activities in the City until they
obtain both a City issued commercial cannabis business permit and a state license for that
commercial cannabis activity.
(c) No temporary events shall be permitted at a state designated fair, as that term is
defined in Business and Professions Code Section 19418, subdivision (a), unless the state
designated fair has complied with the requirements of subsection (a) above and the temporary
event is authorized pursuant to a Development Agreement with the City of San Bernardino
approved in accordance with Chapter 19.40 of this Code. Temporary events are prohibited
Citywide except at a state designated fair.
5.10.070 Cannabis Employee Requirements
(a) Any person who is an employee within a commercial cannabis business must be
legally authorized to do so under applicable state law.
(b) A commercial cannabis business shall keep the following records of each of its
employees on file at the premises of the business:
(1) Name, address, and phone number of the employee;
(2) Age and verification of employee. A copy of a birth certificate, driver’s
license, government issued identification card, passport or other proof that the
applicant is at least twenty-one (21) years of age must be on file with the
business;
(3) A list of any crimes enumerated in California Business and Professions Code
Section 26057(b)(4) for which the employee has been convicted;
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(4) Name, address, and contact person for all previous employers of the employee
for the last ten (10) years, including, but not limited to, all employers from
which the applicant was fired, resigned, or asked to leave and the reasons for
such dismissal or firing;
(5) The fingerprints and a recent photograph of the employee;
(6) If applicable, verification that the employee is a qualified patient or primary
caregiver;
(d) The permittee shall provide to the Chief of Police or his/her designee, upon request,
the records described above in subsection (b). The Chief of Police of his/her designee may
review the records and may conduct a background check to determine whether the employee
has been convicted of a crime that shows the employee:
(1) Is dishonest; or
(2) Has committed a felony or misdemeanor involving fraud, deceit,
embezzlement; or
(3) Was convicted of a violent felony, a crime of moral turpitude; or
(4) The illegal use, possession, transportation, distribution or similar activities
related to controlled substances, as defined in the Federal Controlled
Substances Act, except for cannabis related offenses for which the conviction
occurred after the passage of the Compassionate Use Act of 1996.
5.10.080 Maximum Number and Type of Authorized Commercial Cannabis
Businesses Permitted
The number of each type of commercial cannabis business that shall be permitted to operate in
the City shall be established by Resolution of the Mayor and City Council but at no time shall
the total number of permits for all license types exceed one (1) permit per twelve thousand
five hundred (12,500) residents of the City as determined by the most recent Population
Estimates for Cities, Counties and the State Report generated by the State Department of
Finance for the most recent year.
(a) This Chapter is only intended to create a maximum number of commercial cannabis
businesses that may be issued permits to operate in the City. Nothing in this Chapter creates a
mandate that the Mayor and City Council must issue any or all of the commercial cannabis
business permits if it is determined that the applicants do not meet the standards which are
established in the application requirements or further amendments to the application process
or that the Mayor and City Council, upon further deliberation, determines that the issuance of
any or all commercial cannabis business permits will impact the public safety, welfare or
other policy concerns which may be detrimental in the issuance of these permits.
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(b) Each year following the Mayor and City Council’s initial award of permits, if any, or
at any time in the Mayor and City Council’s discretion, the Mayor and City Council may
reassess the number of commercial cannabis business permits which are authorized for
issuance. The Mayor and City Council, in its discretion, may determine by Resolution that
the number of commercial cannabis permits should be reduced, stay the same, or be expanded.
5.10.090 Initial Application Procedure
(a) The Mayor and City Council shall adopt by Resolution the procedures to govern the
application process, and the manner in which the decision will ultimately be made regarding
the issuance of any commercial cannabis business permit(s), which Resolution shall include or
require the City Manager to provide detailed objective review criteria to be evaluated on a
point system or equivalent quantitative evaluation scale tied to each set of review criteria
(“Review Criteria”), which shall require any applicable environmental review pursuant to
Division 13 (commencing with Section 21000) of the Public Resources Code as contemplated
by Business and Professions Code Section 26055, subdivision (h). The Resolution shall
authorize the City Manager or his/her designee(s) to prepare the necessary forms, adopt any
necessary rules to the application, regulations and processes, solicit applications, conduct
initial evaluations of the applicants, and to ultimately provide a final recommendation to the
Mayor and City Council.
(b) At the time of filing, each applicant shall pay an application fee established by
Resolution of the Mayor and City Council, to cover all costs incurred by the City in the
application process.
(c) After the initial review, ranking, and scoring under the Review Criteria, the City
Manager or his/her designee(s) will make a recommendation to the Mayor and City Council,
and the Mayor and City Council shall make a final determination in accordance with Section
5.10.180.
(d) THE CITY 'S RESERVATION OF RIGHTS:
The City reserves the right to reject any or all initial applications. Prior to permit issuance, the
City may also modify, postpone, or cancel any request for applications, or the entire program
under this Chapter, at any time without liability, obligation, or commitment to any party, firm,
or organization, to the extent permitted by law. Persons submitting applications assume the
risk that all or any part of the program, or any particular category of permit potentially
authorized under this Chapter, may be cancelled at any time prior to permit issuance. The
City further reserves the right to request and obtain additional information from any candidate
submitting an application. In addition to any other justification provided, including a failure to
comply with other requirements in this Chapter, an application RISKS BEING REJECTED
for any of the following reasons:
(1) The application was received after the designated time and date;
(2) The application did not contain the required elements, exhibits, nor organized
in the required format; or
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(3) The application was not considered fully responsive to the request for permit
application.
5.10.100 Persons Prohibited from Holding a Commercial Cannabis Business
Permit or Being Employed by a Commercial Cannabis Business
(a) Any person for which any of the following actions or notices have been issued in non-
compliance shall be prohibited from holding a cannabis commercial business permit or being
employed by a commercial cannabis business in the City of San Bernardino.
(1) The applicant, permittee, or employee has been denied a license or has had a
license suspended or revoked by any city, county, city and county or any state
cannabis licensing authority;
(2) The applicant, permittee, or employee was either convicted, pled guilty or nolo
contendere, or was found by the City’s Hearing Officer pursuant to Chapters
9.92 or 9.93, of conducting commercial cannabis activity in non-compliance
with Title 19 or other City of San Bernardino ordinances, codes and
requirements in which they failed to discontinue operating in a timely manner;
(3) Evidence that the applicant, permittee, or employee was in non-compliance of
properly paying federal, state or local taxes and/or fees when notified by the
appropriate agencies;
(4) The applicant, permittee, employee, or the owner of the property upon which
the proposed commercial cannabis activity is to occur, have conducted
commercial cannabis activity in the City of San Bernardino in violation of
local and state law or failed to report income from such activities to the federal,
state, or local government in violation of federal, state, or local law.
5.10.110 Expiration of Commercial Cannabis Business Permits
Each commercial cannabis business permit issued pursuant to this Chapter shall expire thirty
six (36)twelve (12) months after the date of its issuance. Commercial cannabis business
permits may be renewed as provided in this Chapter.
5.10.120 Revocation of Permits
Commercial cannabis business permits may be suspended or revoked by the City Manager or
his/her designee for any violation of any law and/or any rule, regulation and/or standard
adopted pursuant to this Chapter.
5.10.130 Renewal Applications
(a) An application for renewal of a commercial cannabis business permit shall be filed at
least sixty (60) calendar days prior to the expiration date of the current permit.
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(b) The renewal application shall contain all the information required for new
applications.
(c) The applicant shall pay a fee in an amount to be set by Resolution of the Mayor and
City Council to cover the costs of processing the renewal permit application, together with
any costs incurred by the City to administer the program created under this Chapter.
(d) An application for renewal of a commercial cannabis business permit shall be rejected
if any of the following exists:
(1) The application for renewal is filed less than sixty (60) days before the
expiration of the commercial cannabis business permit.
(2) The commercial cannabis business permit is suspended or revoked at the time
of the application.
(3) The commercial cannabis business has not been in regular and continuous
operation in the four (4) months prior to the renewal application.
(4) The commercial cannabis business has failed to conform to the requirements of
this Chapter, or of any regulations adopted pursuant to this Chapter.
(5) The permittee fails or is unable to renew its State of California license.
(6) If the City has determined, based on substantial evidence, that the permittee or
applicant is in violation of the requirements of this Chapter, of the San
Bernardino Municipal Code, or of the state rules and regulations, and the City
or state has determined that the violation is grounds for termination or
revocation of the commercial cannabis business permit.
(e) The Community Development Director or his/her designee(s) is authorized to make all
decisions concerning the issuance of a renewal permit. In making the decision, the
Community Development Director or his/her designee(s) is authorized to impose additional
conditions to a renewal permit, if it is determined to be necessary to ensure compliance with
state or local laws and regulations or to preserve the public health, safety or welfare. Appeals
from the decision of the Community Development Director or his/her designee(s) shall be
handled pursuant to Sections 5.10.150, 5.10.160, and 5.10.170.
(f) If a renewal application is rejected, a person may file a new application pursuant to
this Chapter no sooner than one (1) year from the date of the rejection.
5.10.140 Effect of State License Suspension, Revocation, or Termination
Suspension of a license issued by the State of California, or by any of its departments or
divisions, shall immediately suspend the ability of a commercial cannabis business to operate
within the City, until the State of California, or its respective department or division, reinstates
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or reissues the State license. Should the State of California, or any of its departments or
divisions, revoke or terminate the license of a commercial cannabis business, such revocation
or termination shall also revoke or terminate the ability of a commercial cannabis business to
operate within the City of San Bernardino.
5.10.150 Appeals
Unless specifically provided elsewhere to the contrary, any determination of the Chief of
Police or Community Development Director, or the designees of either of them, may only be
appealed to the City Manager, which decision shall be final. The City Manager may delegate
the appeal to the City’s Administrative Law Officer (“Hearing Officer”) appointed in
conformity with Chapter 9.92 of this Code, in which case, the decision of the Hearing Officer
shall be final. All decisions of the Mayor and City Council, City Manager or Hearing Officer
under this Chapter shall be final. All appeals shall be conducted as prescribed in this Section,
Section 5.10.160 and Section 5.10.170.
5.10.160 Written Request for Appeal
(a) Within ten (10) calendar days after the date of the determination, an aggrieved party
may appeal such determination by filing a written appeal with the City Clerk setting forth the
reasons why the determination was not proper. If no appeal of a determination is made within
ten (10) days of the date of the determination, the determination shall be final.
(b) At the time of filing the appellant shall pay the designated appeal fee, established by
Resolution of the Mayor and City Council from time to time.
5.10.170 Appeal Hearing
(a) Upon receipt of the written appeal, the City Clerk shall set the matter for a hearing
before the City Manager, or if the appeal has been delegated to the Hearing Officer, before the
Hearing Officer. The City Manager or Hearing Officer shall hear the matter de novo, and shall
conduct the hearing pursuant to the procedures set forth by the City.
(b) The appeal shall be held within a reasonable time after the filing the appeal, but in no
event later than ninety (90) calendar days from the date of such filing. The City shall notify
the appellant of the time and location at least ten (10) calendar days prior to the date of the
hearing.
(c) At the hearing, the appellant may present any information they deem relevant to the
determination appealed. The formal rules of evidence and procedure applicable in a court of
law shall not apply to the hearing.
(d) At the conclusion of the hearing the City Manager or Hearing Officer may affirm,
reverse or modify the decision appealed.
5.10.180 Commercial Cannabis Business Permittee Selection Process
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(a) The Mayor and City Council shall adopt by Resolution, a procedure guideline and
Review Criteria by which the top applicants in each category of each commercial cannabis
business will be presented to the Mayor and City Council for a final determination at a public
hearing.
(b) The top final applicants for each category may be invited to attend the Mayor and City
Council meeting, only if requested by the City Manager or his/her designee where they may
be expected to make a public presentation introducing their team and providing an overview
of their proposal. In order to provide adequate time, presentations may be divided over more
than one meeting over multiple days as determined to be necessary.
(c) At least ten (10) calendar days prior to the hearing, notice of the hearing shall be sent
to all property owners located within six hundred (600) feet of the proposed business locations
of each of the finalists to be considered by the Mayor and City Council.
(d) The Mayor and City Council shall either deny or approve the final candidates and shall
select the top candidates in each category of the commercial cannabis businesses. The Mayor
and City Council’s decision as to the selection of the prevailing candidates shall be final.
(e) Official issuance of the commercial cannabis business permit(s), however, is
conditioned upon the prevailing applicant(s) obtaining all required land use approvals.
Following the Mayor and City Council’s selection, the prevailing applicnant(s) shall apply to
the City’s Community Development Department to obtain any required land use approvals or
entitlements for the permittee’s location, if any. Land use approvals shall include compliance
with all applicable provisions of CEQA. The City Manager or his/her designee(s) shall
formally issue the commercial cannabis business permit(s) once the Community Development
Director or his/her designee(s) affirms that all of the required land use approvals have been
obtained.
(f) Issuance of a commercial cannabis business permit does not create a land use
entitlement or serve as a building permit. The commercial cannabis business permit shall only
be for a term of thirty six (36)twelve (12) months, and shall expire at the end of the thirty six
(36)twelve (12) month period unless it is renewed as provided herein. Furthermore, no
permittee may begin operations, notwithstanding the issuance of a permit, unless all of the
state and local laws and regulations, including but not limited to the requirements of this
Chapter, applicable building permits, and conditions of the commercial cannabis business
permit, have been complied with. Until a state license is available and obtained by the
permittee, this means compliance with all provisions of the Medical Cannabis Collective
Laws as set forth at Section 5.10.060.
(g) Notwithstanding anything in this Chapter to the contrary, the Mayor and City Council
reserves the right to reject any or all applications if it determines it would be in the best
interest of the City, taking into account any health, safety and welfare impacts on the
community. Applicants shall have no right to a commercial cannabis business permit until a
permit is actually issued, and then only for the duration of the permit term. Each applicant
assumes the risk that, at any time prior to the issuance of a permit, the Mayor and City
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Council may terminate or delay the program created under this Chapter or otherwise revise,
amend, or repeal this Chapter.
(h) If an application is denied, a new application may not be filed for one (1) year from
the date of the denial.
(i) Each person granted a commercial cannabis business permit shall be required to pay
the permit fee established by resolution of the Mayor and City Council, to cover the costs of
administering the commercial cannabis business permit program created in this Chapter.
5.10.190 Updated Information
Within fifteen (15) calendar days of any other change in the information provided in the
application form or any change in status of compliance with the provisions of this Chapter,
including any change in the commercial cannabis business location or ownership or
management members, the applicant shall file an updated application form with the City
Manager or his/her designee(s) for review along with an application amendment fee, as set
forth in section 5.10.090 and 5.10.130.
5.10.200 Change in Ownership or Location
(a) The person granted a commercial cannabis business permit shall not transfer
ownership or control of the permit to another person unless and until the transferee obtains an
amendment to the permit from the City Manager or his/her designee stating that the transferee
is now the permittee. Such an amendment may be obtained only if the transferee files an
application with the City Manager or his/her designee in accordance with all provisions of this
Chapter (as though the transferee were applying for an original commercial cannabis business
permit) accompanied by a transfer fee in an amount set by Resolution of the Mayor and City
Council (or if not set, shall be the same amount as the application fee), and the City Manager
or his/her designee determines, after hearing, in accordance with this Chapter that the
transferee passed the background check required for permittees and meets all other
requirements of this Chapter. No transfer of ownership may occur within five (5) years of the
date the commercial cannabis business permit is originally issued.
(b) Commercial cannabis business permits issued through the grant of a transfer by the
City Manager or his/her designee shall be valid for a period of one year beginning on the day
the City Manager or his/her designee approves the transfer of the permit. Before the
transferee’s permit expires, the transferee shall apply for a renewal permit in the manner
required by this Chapter.
(c) Changes in ownership of a permittee’s business structure or a substantial change in the
ownership of a permittee business entity (changes that result in a change of more than 51% of
the original ownership), must be approved by the City Manager or his/her designee through
the transfer process contained in subsection (a). Failure to comply with this provision is
grounds for permit revocation.
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(d) A permittee may change the form of business entity without applying to the City
Manager or his/her designee for a transfer of permit, provided that either:
(1) The membership of the new business entity is substantially similar to the
original permit holder business entity (at least 51% of the membership is
identical), or
(2) If the original permittee is an unincorporated association, mutual or public
benefit corporation, agricultural or consumer cooperative corporation and
subsequently transitions to or forms a new business entity as allowed under the
MAUCRSA and to comply with Section 5.10.060, subdivision (b), provided
that the Board of Directors (or in the case of an unincorporated association, the
individual(s) listed on the City permit application) of the original permittee
entity are the same as the new business entity.
Although a transfer is not required in these two circumstances, the permit holder is required to
notify the City Manager in writing of the change within ten (10) calendar days of the change.
Failure to comply with this provision is grounds for permit revocation.
(e) No commercial cannabis business permit may be transferred when the City Manager
or his/her designee has notified the permittee that the permit has been or may be suspended or
revoked.
(f) Any attempt to transfer a commercial cannabis business permit either directly or
indirectly in violation of this section is hereby declared void, and such a purported transfer
shall be deemed a ground for revocation of the permit.
(g) The location specified in the commercial cannabis business permit may not change
without an amendment to the permit, processed in the same manner as an initial permit
pursuant to the process and fees set forth in Section 5.10.090.
5.10.210 City Business Registration Certificate
Prior to commencing operations, and at all times thereafter, a commercial cannabis business
shall maintain a valid City of San Bernardino business registration certificate.
5.10.220 Building Permits and Inspection
Prior to commencing operations, and at all times thereafter, a commercial cannabis business
shall be subject to a mandatory building inspection, and must obtain all required permits and
approvals which would otherwise be required for any business of the same size and intensity
operating in that zone. This includes but is not limited to obtaining any required building
permit(s), Fire Department approvals, Health Department approvals and other zoning and land
use permit(s) and approvals. No modifications to the structure of the premises shall be made
without required approvals listed above.
5.10.230 Certification from the Community Development Director
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Prior to commencing operations, a commercial cannabis business must obtain a certification
from the Community Development Director or his/her designee(s) certifying that the business
is located on a site that meets all of the requirements of Title 19of this Code.
5.10.240 Right to Occupy and to Use Property
As a condition precedent to the City’s issuance of a commercial cannabis business permit
pursuant to this Chapter, any person intending to open and to operate a commercial cannabis
business shall provide sufficient evidence, which sufficiency shall be determined in the
reasonable discretion of the Mayor and City Council, of the legal right to occupy and to use
the proposed location for the proposed commercial cannabis activity. In the event the
proposed location will be leased from another person, the applicant shall be required to
provide a signed and notarized statement from all owners of the property, acknowledging that
the property owners have read this Chapter and consent to the operation of the commercial
cannabis business on the owner’s property.
5.10.250 Location and Design of Cannabis Businesses
Commercial cannabis businesses are permitted to engage in commercial cannabis activities
subject to the following zoning and locational requirements:
(a) The commercial cannabis business must be located on property zoned CG
(Commercial General), CG -2 (Commercial General-2), CG-3 (Commercial General -3), CR-
2 (Commercial Regional-Downtown), CR-3 (Commercial-Tri-City-Club), CCS-1 (Central
City South), CCS-2 (Central City), CH (Commercial Heavy), IL (Industrial Light), IH
(Industrial Heavy), OIP (Office Industrial Park) and must meet all of the requirements for
development in these zones; and
(b) The property on which the cannabis business is located must also meet all of the
distance requirements listed below in subsections (b)(1)-(3). All distances shall be the
horizontal distance measured in a straight line from exterior parcel line to exterior parcel line
without regard to intervening structures, except as listed in subsection (b)(4).
(1) The parcel shall be no closer than six hundred (600) feet of any residentially
zoned or residentially used parcel in the City, the City’s sphere of influence, a
neighboring incorporated city, or unincorporated county.
(2) The parcel shall be no closer than six hundred (600) feet from any parcel in the
City, the City’s sphere of influence, a neighboring incorporated city, or
unincorporated county containing any of the following:
A. A school providing instruction in kindergarten or any grades 1 through
12, (whether public, private, or charter, including pre-school,
transitional kindergarten, and K-12) that is in existence at the time the
permit is issued;
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B. A commercial daycare center licensed by the City, another city, or
County that is in existence at the time the permit is issued;
C. A youth center that is in existence at the time the permit is issued; or
D. A park that is in existence at the time the permit is issued.
(3) The City shall consider the proximity of the proposed commercial cannabis
business to religious facilities and libraries in existence at the time the permit is
granted when determining whether the issue the permit and any conditions
thereto.
(4) For the purposes of this subsection (b), the distance measurement shall be
without regard to intervening structures, with the exception of the following:
A. Freeways;
B. Flood control channels;
C. Railroads;
D. The Santa Ana River.
(c) Each proposed cannabis business project shall:
(1) Conform with the City’s general plan, any applicable specific plans, master plans,
and design requirements;
(2) Comply with all applicable zoning and related development standards;
(3) Be constructed in a manner that minimizes odors to surrounding uses, and
promotes quality design and construction, and consistency with the surrounding
properties;
(4) Be adequate in size and shape to accommodate the yards, walls, fences, parking
and loading facilities, landscaping and all items required for the development;
(5) Be served by highways adequate in width and improved as necessary to carry the
kind and quantity of traffic such use will generate; and
(6) Be provided with adequate electricity, sewage, disposal, water, fire protection and
storm drain facilities for the intended purpose.
5.10.260 Limitations on City’s Liability
To the fullest extent permitted by law, the City of San Bernardino shall not assume any
liability whatsoever with respect to having issued a commercial cannabis business permit
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pursuant to this Chapter or otherwise approving the operation of any commercial cannabis
business. As a condition to the approval of any commercial cannabis business permit, the
applicant shall be required to meet all of the following conditions before they can receive the
commercial cannabis business permit:
(a) They must execute an agreement, in a form approved by the City Attorney, agreeing to
indemnify, defend (at applicant’s sole cost and expense), and hold the City of San Bernardino,
and its elected officials, officers, employees, representatives, and agents, harmless, from any
and all claims, losses, damages, injuries, liabilities or losses which arise out of, or which are in
any way related to, the City’s issuance of the commercial cannabis business permit, the City’s
decision to approve the operation of the commercial cannabis business or activity, to the
process used by the City in making its decision, or the alleged violation of any federal, state
or local laws by the commercial cannabis business or any of its officers, employees or agents.
(b) Maintain insurance at coverage limits, and with conditions thereon determined
necessary and appropriate from time to time by the City Manager or his/her designee.
(c) Reimburse the City of San Bernardino for all costs and expenses, including but not
limited to legal fees and costs and court costs, which the City of San Bernardino may be
required to pay as a result of any legal challenge related to the City’s approval of the
applicant’s commercial cannabis business permit, or related to the City’s approval of a
commercial cannabis activity. The City of San Bernardino may, at its sole discretion,
participate at its own expense in the defense of any such action, but such participation shall
not relieve any of the obligations imposed hereunder.
5.10.270 Records and Recordkeeping
(a) Each person granted a commercial cannabis business shall maintain accurate books
and records in an electronic format, detailing all of the revenues and expenses of the business,
and all of its assets and liabilities. On no less than an annual basis (at or before the time of the
renewal of a commercial cannabis business permit issued pursuant to this Chapter), or at any
time upon reasonable request of the City Manager or his/her designee, each commercial
cannabis business shall file a sworn statement detailing the number of sales by the commercial
cannabis business during the previous twelve-month period (or shorter period based upon the
timing of the request), provided on a per-month basis. The statement shall also include gross
sales for each month, and all applicable taxes paid or due to be paid, including, but not limited
to, employee withholdings. On an annual basis, each permittee shall submit to the City a
financial audit of the business’s operations conducted by an independent certified public
accountant. At the request of the City Manager, or his/her designee, the each permittee shall
provide copies of the last three (3) years of their local, state and federal tax returns so that the
City may verify the information provided above. Each permittee shall be subject to a
regulatory compliance review and financial audit as determined by the City Manager or
his/her designee(s).
(b) Each person granted a commercial cannabis business shall maintain a current register
of the names and the contact information (including the name, address, and telephone number)
of anyone owning or holding an interest in the commercial cannabis business, and separately
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of all the officers, managers, employees, and agents currently employed or otherwise engaged
by the commercial cannabis business. The register required by this paragraph shall be
provided to the City Manager or his/her designee(s) upon a reasonable request.
(c) Prior to state licensing, each commercial cannabis business shall maintain a record of
all persons, patients, collectives and primary caregivers served by the commercial cannabis
business, for a period of no less than four (4) years. Once a state license is obtained, the
commercial cannabis business must maintain such records only to the extent permitted or
required by the MAUCRSA.
(d) All commercial cannabis businesses shall maintain an inventory control and reporting
system that accurately documents the present location, amounts, and descriptions of all
cannabis and cannabis products for all stages of the growing and production or manufacturing,
laboratory testing and distribution processes until purchase as set forth MAUCRSA.
Additionally, all commercial cannabis businesses shall maintain records that identify the
source of all products (company name, location, license numbers etc.).
(e) Subject to any restrictions under the Health Insurance Portability and Accountability
Act (HIPPA) regulations, each commercial cannabis business shall allow the City of San
Bernardino officials to have access to the business’s books, records, accounts, together with
any other data or documents relevant to its permitted commercial cannabis activities, for the
purpose of conducting an audit or examination. Books, records, accounts, and any and all
relevant data or documents will be produced no later than twenty-four (24) hours after receipt
of the City’s request, unless otherwise stipulated by the City. The City may require the
materials to be submitted in an electronic format that is compatible with the City’s software
and hardware.
5.10.280 Security Measures
(a) A commercial cannabis business shall implement sufficient security measures to deter
and prevent the unauthorized entrance into areas containing cannabis or cannabis products,
and to deter and prevent the theft of cannabis or cannabis products at the commercial cannabis
business. Except as may otherwise be determined by the City Manager or his/her designee(s),
these security measures shall include, but shall not be limited to, all of the following:
(1) Preventing individuals from remaining on the premises of the commercial
cannabis business if they are not engaging in an activity directly related to the
permitted operations of the commercial cannabis business.
(2) Establishing limited access areas accessible only to authorized commercial
cannabis business personnel.
(3) Except for live growing plants which are being cultivated at a cultivation
facility, all cannabis and cannabis products shall be stored in a secured and
locked room, safe, or vault. All cannabis and cannabis products, including live
plants that are being cultivated, shall be kept in a manner as to prevent
diversion, theft, and loss,
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(4) Installing 24-hour security surveillance cameras of at least HD-quality to
monitor all entrances and exits to and from the premises, all interior spaces
within the commercial cannabis business which are open and accessible to the
public, all interior spaces where cannabis, cash or currency, is being stored for
any period of time on a regular basis and all interior spaces where diversion of
cannabis could reasonably occur. Cameras shall clearly show each point of sale
location, register with a time/date stamp. The commercial cannabis business
shall be responsible for ensuring that the security surveillance camera’s footage
is remotely accessible by the City Manager or his/her designee(s), and that it is
compatible with the City’s software and hardware. In addition, remote and
real-time, live access to the video footage from the cameras shall be provided
to the City Manager or his/her designee(s). Video recordings shall be
maintained for a minimum of one hundred twenty (120) days, and shall be
made available to the City Manager or his/her designee(s) upon request. Video
shall be of sufficient quality for effective prosecution of any crime found to
have occurred on the site of the commercial cannabis business.
(5) Sensors shall be installed to detect entry and exit from all secure areas.
(6) Panic buttons shall be installed in all commercial cannabis businesses.
(7) Having a professionally installed, maintained, and monitored alarm system.
The owner and operator shall be subject to the City’s security alarm systems
requirements of Chapter 8.81 of this Code.
(8) Any bars installed on the windows or the doors of the commercial cannabis
business shall be installed only on the interior of the building as approved by
the Community Development Department and Fire Department.
(9) Security personnel shall be on-site 24 hours a day or alternative security as
authorized by the City Manager or his/her designee(s). Security personnel must
be licensed by the State of California Bureau of Security and Investigative
Services personnel and shall be subject to the prior review and approval of the
City Manager or his/her designee(s), with such approval not to be unreasonably
withheld.
(10) Each commercial cannabis business shall have the capability to remain secure
during a power outage and shall ensure that all access doors are not solely
controlled by an electronic access panel to ensure that locks are not released
during a power outage.
(b) Each commercial cannabis business shall identify a designated security
representative/liaison to the City of San Bernardino, who shall be reasonably available to meet
with the City Manager or his/her designee(s) regarding any security related measures or and
operational issues. The commercial cannabis business shall notify the City Manager or his/her
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designee within twenty four (24) hours of a change in designated security
representative/liaison.
(c) As part of the application and permitting process each commercial cannabis business
shall have a storage and transportation plan, which describes in detail the procedures for
safely and securely storing and transporting all cannabis, cannabis products, and any currency.
(d) The commercial cannabis business shall cooperate with the City whenever the City
Manager or his/her designee(s) makes a request, upon reasonable notice to the commercial
cannabis business, to inspect or audit the effectiveness of any security plan or of any other
requirement of this Chapter.
(e) A commercial cannabis business shall notify the City Manager or his/her designee(s)
within twenty-four (24) hours after discovering any of the following:
(1) Significant discrepancies identified during inventory. The level of significance
shall be determined by the regulations promulgated by the City Manager or
his/her designee(s).
(2) Diversion, theft, loss, or any criminal activity involving the commercial
cannabis business or any agent or employee of the commercial cannabis
business.
(3) The loss or unauthorized alteration of records related to cannabis, registering
qualifying patients, primary caregivers, or employees or agents of the
commercial cannabis business.
(4) Any other breach of security.
5.10.290 Restriction on Alcohol & Tobacco Sales
(a) No person shall cause or permit the sale, dispensing, or consumption of alcoholic
beverages to any person, including minors, on or about the property occupied by the
commercial cannabis business.
(b) No person shall cause or permit the sale of tobacco products to any person, including
minors, on or about the property occupied by the commercial cannabis business.
5.10.300 Fees and Charges
(a) No person may commence or continue any commercial cannabis activity in the City,
without timely paying in full all fees and charges required for the operation of a commercial
cannabis activity. Fees and charges associated with the operation of a commercial cannabis
activity shall be established by Resolution of the Mayor and City Council which may be
amended from time to time. Such fees and charges may include, but are not limited to, a
regulatory fee imposed for the reasonable regulatory costs to the City for issuing licenses and
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permits, performing investigations, inspections, and audits, and the administrative and
criminal enforcement and adjudication thereof.
(b) All commercial cannabis businesses authorized to operate under this Chapter shall pay
all sales, use, business, employment and other applicable taxes, and all license, registration,
and other fees required under federal, state and local law. Each commercial cannabis business
shall cooperate with City with respect to any reasonable request to audit the commercial
cannabis business’ books and records for the purpose of verifying compliance with this
section, including but not limited to a verification of the amount of taxes required to be paid
during any period.
5.10.310 Miscellaneous Operating Requirements
(a) Commercial cannabis businesses may operate only during the hours specified in the
commercial cannabis business permit issued by the City.
(b) On-site consumption of cannabis is prohibited at all times by all individuals on the
property.
(c) No cannabis or cannabis products or graphics depicting cannabis or cannabis products
shall be visible from the exterior of any property issued a commercial cannabis business
permit, or on any of the vehicles owned or used as part of the commercial cannabis business.
No outdoor storage of cannabis or cannabis products is permitted at any time.
(d) Reporting and Tracking of Product and of Gross Sales. Each commercial cannabis
business shall have in place a point-of-sale or management inventory tracking system to track
and report on all aspects of the commercial cannabis business including, but not limited to,
such matters as cannabis tracking, inventory data, gross sales (by weight and by sale), time
and date of each sale and other information which may be deemed necessary by the City. The
commercial cannabis business shall ensure that such information is compatible with the City’s
record-keeping systems. In addition, the system must have the capability to produce historical
transactional data for review. Furthermore, any system selected must be approved and
authorized by the City Manager or his/her designee(s) prior to being used by the permittee.
(e) All cannabis and cannabis products sold, distributed or manufactured shall be
cultivated, manufactured, and transported by licensed facilities that maintain operations in full
conformance with the State and local regulations. No cannabis or cannabis products may be
sold, distributed, or transferred out of the State.
(f) There shall not be a physician located in or around any commercial cannabis business
at any time for the purpose of evaluating patients for the issuance of a cannabis
recommendation or card where applicable.
(g) Prior to dispensing medicinal cannabis or medicinal cannabis products where
applicable to any person, the commercial medicinal cannabis business shall obtain verification
from the recommending physician that the person requesting medicinal cannabis or medicinal
cannabis products is a qualified patient.
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(h) Emergency Contact. Each commercial cannabis business shall provide the City
Manager or his/her designee(s) with the name, telephone number (both land line and mobile,
if available) of an on-site employee or owner to whom emergency notice can be provided at
any hour of the day. The commercial cannabis business shall notify the City Manager or
his/her designee within twenty four (24) hours of a change in the emergency contact.
(i) Signage and Notices.
(1) In addition to the requirements otherwise set forth in this section, business
identification signage for a commercial cannabis business shall conform to the
requirements of Chapter 19.22 of this Code, including, but not limited to,
seeking the issuance of a City sign permit.
(2) No signs placed on the premises of a commercial cannabis business shall
obstruct any entrance or exit to the building or any window.
(3) Each entrance to a commercial cannabis business shall be visibly posted with a
clear and legible notice indicating that smoking, ingesting, or otherwise
consuming cannabis on the premises or in the areas adjacent to the commercial
cannabis business is prohibited.
(4) Business identification signage shall be limited to that needed for identification
only and shall not contain any logos or information that identifies, advertises,
or lists the services or the products offered. No commercial cannabis business
shall advertise by having a person holding a sign and advertising the business
to passersby, whether such person is on the premises of the commercial
cannabis business or elsewhere including, but not limited to, the public right-
of-way.
(5) Signage shall not be directly illuminated, internally or externally. No banners,
flags, billboards or other prohibited signs may be used at any time.
(6) In accordance with state law and regulations or as stipulated in the City of San
Bernardino commercial cannabis business permit, holders of a commercial
cannabis business permit shall agree that, as an express and ongoing condition
of permit issuance and subsequent renewal, the holder of the permit shall be
prohibited from advertising any commercial cannabis business located in the
City of San Bernardino utilizing a billboard (fixed or mobile), bus shelter,
placard, aircraft, or other similar forms of advertising, anywhere in the state.
This paragraph is not intended to place limitations on the ability of a
commercial cannabis business to advertise in other legally authorized forms,
including on the internet, in magazines, or in other similar ways.
(j) Minors.
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(1) Persons under the age of twenty-one (21) years shall not be allowed on the
premises of a commercial cannabis business and shall not be allowed to serve
as a driver for a mobile delivery service. It shall be unlawful and a violation of
this Chapter for any person to employ any person at a commercial cannabis
business who is not at least twenty-one (21) years of age. Except as provided
for under section 5.10.330 (c ).
(2) The entrance to the commercial cannabis business shall be clearly and legibly
posted with a notice that no person under the age of twenty-one (21) years of
age is permitted to enter upon the premises of the commercial cannabis
business. Except as provided for under section 5.10.330 (c ).
(k) Odor Control. Odor control devices and techniques shall be incorporated in all
commercial cannabis businesses to ensure that odors from cannabis are not detectable off-site.
Commercial cannabis businesses shall provide a sufficient odor absorbing ventilation and
exhaust system so that odor generated inside the commercial cannabis business that is
distinctive to its operation is not detected outside of the facility, anywhere on adjacent
property or public rights-of-way, on or about the exterior or interior common area walkways,
hallways, breezeways, foyers, lobby areas, or any other areas available for use by common
tenants or the visiting public, or within any other unit located inside the same building as the
commercial cannabis business. As such, commercial cannabis businesses must install and
maintain the following equipment, or any other equipment which the Community
Development Director or his/her designee(s) determine is a more effective method or
technology:
(1) An exhaust air filtration system with odor control that prevents internal odors
from being emitted externally;
(2) An air system that creates negative air pressure between the commercial
cannabis business’s interior and exterior, so that the odors generated inside the
commercial cannabis business are not detectable on the outside of the
commercial cannabis business.
(l) Display of Permit and City Business License. The original copy of the commercial
cannabis business permit issued by the City pursuant to this Chapter and the City issued
business license shall be posted inside the commercial cannabis business in a location readily-
visible to the public.
(m) Background Check. Every person listed as an owner, manager, or supervisor of the
commercial cannabis business must submit fingerprints and other information deemed
necessary by the Chief of Police or his/her designee(s) for a background check by the City of
San Bernardino’s Police Department pursuant to California Penal Code Sections 11105(b)(11)
and 13300(b)(11), which authorizes City authorities to access state and local summary
criminal history information for employment, licensing, or certification purposes; and
authorizes access to federal level criminal history information by transmitting fingerprint
images and related information to the Department of Justice to be transmitted to the Federal
Bureau of Investigation. Pursuant to California Penal Sections 11105(b)(11) and
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13300(b)(11), which requires that there be a requirement or exclusion from employment,
licensing or certification based on specific criminal conduct on the part of the subject of the
record, no person shall be issued a permit to operate a commercial cannabis business unless
they have first cleared the background check, as determined by the Chief of Police or his/her
designee(s). A fee for the cost of the background investigation, which shall be the actual cost
to the City of San Bernardino to conduct the background investigation as it deems necessary
and appropriate, shall be paid at the time the application for a commercial cannabis business
permit is submitted.
(n) Loitering. The owner and/or operator of a commercial cannabis business shall prohibit
loitering by persons outside the facility both on the premises and within fifty (50) feet of the
premises.
(o) Permits and other Approvals. Prior to the establishment of any commercial cannabis
business or the operation of any such business, the person intending to establish a commercial
cannabis business must first obtain all applicable planning, zoning, building, and other
applicable permits from the relevant governmental agency which may be applicable to such
commercial cannabis business.
(p) If the commercial cannabis business permittee is operating as a collective or
cooperative under Health and Safety Code Section 11362.775, subdivision (a), the
commercial cannabis business shall terminate the membership of any member violating any of
the provisions of this Chapter.
(q) The interior and exterior of the premises of the commercial cannabis business shall be
well lit at all times. The windows of the building shall provide an unobstructed view into the
interior.
5.10.320 Other Operational Requirements
The City Manager or his/her designee may develop other commercial cannabis business
operational requirements or regulations as are determined to be necessary to protect the public
health, safety and welfare.
5.10.330 Operating Requirements for Retailer Facilities; Delivery
(a) No more than the number of retailers adopted by resolution may operate within the
City of San Bernardino at any one time and no more than that number adopted by resolution
shall be issued a permit by the City of San Bernardino to operate a retailer at one time. Both
retailers offering storefront purchase (customers purchase and obtain cannabis onsite) and
retailers offering delivery only shall be permitted. Each shall be required to maintain a
physical location from which commercial cannabis activities are conducted that are permitted
under this Chapter.
(b) Retailers may only deliver to customers within a county or city that does not expressly
prohibit delivery by ordinance. Retailers may only deliver to customers within the City of San
Bernardino after obtaining a commercial cannabis business permit issued under the Chapter.
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Security plans developed pursuant to this chapter shall include provisions relating to vehicle
security and the protection of employees and product during loading and in transit.
(c) M-licensee retailers must verify the age and all necessary documentation of each
customer to ensure the customer is not under the age of eighteen (18) years and that the
potential customer has a valid doctor's recommendation. A-licensee retailers must verify the
age of customers to ensure persons under the age of twenty-one (21) are not permitted.
(d) Entrances into the retailer shall be locked at all times with entry strictly controlled. A
"buzz-in" electronic/mechanical entry system shall be utilized to limit access to and entry to
the retailer to separate it from the reception/lobby area.
(e) Uniformed licensed security personnel shall be employed to monitor site activity,
control loitering and site access, and to serve as a visual deterrent to unlawful activities.
(f) Retailers may have only that quantity of cannabis and cannabis products reasonably
anticipated to meet the daily demand readily available for sale on-site in the publically
accessible retail sales area of the retailer.
(g) All restroom facilities shall remain locked and under the control of management.
5.10.340 Operating Requirements for Commercial Cultivation Facilities
(a) All outdoor (i.e. open air) cultivation is prohibited. The cultivation of all cannabis
must occur indoors or within mixed light structures.
(b) In no case, shall cannabis plants be discernable from a public or private road,
sidewalk, park or any common public viewing area.
(c) A permittee permitted to engage in commercial cannabis cultivation in the City of San
Bernardino shall only be allowed to cultivate the square feet of canopy space permitted by
state law.
(d) Cannabis cultivation shall be conducted in accordance with state and local laws related
to land conversion, grading, electricity, water usage, water quality, woodland and riparian
habitat protection, agricultural discharges, and similar matters.
(e) Pesticides and fertilizers shall be properly labeled and stored to avoid contamination
through erosion, leakage or inadvertent damage from pests, rodents or other wildlife.
(f) The cultivation of cannabis shall at all times be operated in such a way as to ensure the
health, safety, and welfare of the public, the employees working at the commercial cannabis
business, visitors to the area, neighboring properties, and the end users of the cannabis being
cultivated, to protect the environment from harm to streams, fish, and wildlife; to ensure the
security of the cannabis being cultivated; and to safeguard against the diversion of cannabis.
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(g) All applicants for a cannabis cultivation permit shall submit the following in addition
to the information generally otherwise required for a commercial cannabis business:
(1) A cultivation and operations plan that meets or exceeds minimum legal
standards for water usage, conservation and use; drainage, runoff, and erosion
control; watershed and habitat protection; and proper storage of fertilizers,
pesticides, and other regulated products to be used on the parcel, and a
description of the cultivation activities (indoor, mixed-light) and schedule of
activities during each month of growing and harvesting, or explanation of
growth cycles and anticipated harvesting schedules for all-season harvesting
(indoor, mixed-light).
(2) A description of a legal water source, irrigation plan, and projected water use.
(3) Identification of the source of electrical power and plan for compliance with
applicable Building Codes and related codes.
(4) Plan for addressing odor and other public nuisances that may derive from the
cultivation site.
5.10.350 Operating Requirements for Testing Labs
(a) Testing Labs shall be required to conduct all testing in a manner pursuant to Business
and Professions Code Section 26100, et seq., and shall be subject to state and local law. Each
Testing Lab shall be subject to additional regulations as determined from time to time as more
regulations are developed under this Chapter and any subsequent State of California
legislation regarding the same.
(b) Testing Labs shall conduct all testing in a manner consistent with general requirements
for the competence of testing and calibrations activities, including sampling using verified
methods.
(c) Testing Labs shall obtain and maintain ISO/IEC 17025 accreditation as required by the
bureau.
(d) Testing Labs shall destroy any harvest batch whose testing sample indicates
noncompliance with health and safety standards required by the bureau unless remedial
measures can bring the cannabis or cannabis products into compliance with quality standards
as specified by law and implemented by the bureau.
(e) Each operator of a Testing Lab shall ensure that any Testing Lab employee takes the
sample of cannabis or cannabis products from the distributor’s premises for testing as required
by state law and that the Testing Lab employee transports the sample to the Testing Lab.
(f) Except as provided by state law, a Testing Lab shall not acquire or receive cannabis or
cannabis products except from a licensee in accordance with state law, and shall not
distribute, sell, or dispense cannabis, or cannabis products, from the licensed premises from
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which the cannabis or cannabis products were acquired or received. All transfer or
transportation shall be performed pursuant to a specified chain of custody protocol.
(g) A Testing Lab may receive and test samples of cannabis or cannabis products from a
qualified patient or primary caregiver only if the qualified patient or primary caregiver
presents the qualified patient’s valid physician’s recommendation for cannabis for medicinal
purpose. A Testing Lab shall not certify samples from a qualified patient or primary caregiver
for resale or transfer to another party or licensee. All tests performed by a Testing Lab for a
qualified patient or primary caregiver shall be recorded with the name of the qualified patient
or primary caregiver and the amount of the cannabis or cannabis products received.
5.10.360 Cannabis Manufacturing: Edibles and Other Cannabis Products; Sale or
Distribution of Edible and Other Cannabis Products
(a) In addition to any locational restrictions contained within this Chapter, manufacturers
requiring a Type-6, or Type-7 or any subsequent created manufacturing state license (using
non-volatile and volatile solvents) as defined in MAUCRSA, may only be permitted to
operate within those zone districts as similar manufacturing activities under Title 19 of this
Code.
(b) Any compressed gases used in the manufacturing process shall not be stored on any
property within the City of San Bernardino in containers that exceeds the amount which is
approved by Fire Department and authorized by the commercial cannabis business permit.
Each site or parcel subject to a commercial cannabis business permit shall be limited to a total
number of tanks as authorized by the Fire Department on the property at any time.
(c) Manufacturers may use the hydrocarbons N-butane, isobutane, propane, or heptane or
other solvents or gases exhibiting low to minimal potential human-related toxicity approved
by both the Community Development Department and Fire Department. These solvents must
be of at least ninety-nine percent purity and any extraction process must use them in a
professional grade closed loop extraction system designed to recover the solvents and work in
an environment with proper ventilation, controlling all sources of ignition where a flammable
atmosphere is or may be present.
(d) If an extraction process uses a professional grade closed loop CO₂ gas extraction
system every vessel must be certified by the manufacturer for its safe use as referenced in
5.10.360 (f). The CO₂ must be of at least ninety-nine percent purity.
(e) Closed loop systems for compressed gas extraction systems must be commercially
manufactured and bear a permanently affixed and visible serial number.
(f) Certification from an engineer licensed by the State of California must be provided to
the Community Development Department for a professional grade closed loop system used by
any commercial cannabis manufacturing manufacturer to certify that the system was
commercially manufactured, is safe for its intended use, and was built to codes of recognized
and generally accepted good engineering practices, including but not limited to:
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(1) The American Society of Mechanical Engineers (ASME);
(2) American National Standards Institute (ANSI);
(3) Underwriters Laboratories (UL); or
(4) The American Society for Testing and Materials (ASTM).
(g) The certification document must contain the signature and stamp of the professional
engineer and serial number of the extraction unit being certified.
(h) Professional closed loop systems, other equipment used, the extraction operation, and
facilities must be approved for their use by the Fire Department and meet any required fire,
safety, and building code requirements specified in the California Building Reference Codes.
(i) Manufacturers may use heat, screens, presses, steam distillation, ice water, and other
methods without employing solvents or gases to create keef, hashish, bubble hash, or infused
dairy butter, or oils or fats derived from natural sources, and other extracts.
(j) Manufacturers may use food grade glycerin, ethanol, and propylene glycol solvents to
create or refine extracts. Ethanol should be removed from the extract in a manner to recapture
the solvent and ensure that it is not vented into the atmosphere.
(k) Manufacturers creating cannabis extracts must develop standard operating procedures,
good manufacturing practices, and a training plan prior to producing extracts for the
marketplace.
(l) Any person using solvents or gases in a closed looped system to create cannabis
extracts must be fully trained on how to use the system, have direct access to applicable
material safety data sheets and handle and store solvents and gases safely.
(m) Parts per million for one gram of finished extract cannot exceed state standards for any
residual solvent or gas when quality assurance tested.
5.10.370 Promulgation of Regulations, Standards and Other Legal Duties
(a) In addition to any regulations adopted by the Mayor and City Council, the City
Manager or his/her designee is authorized to establish, subject to approval by the Mayor and
City Council, any additional rules, regulations and standards governing the issuance, denial or
renewal of commercial cannabis business permits, the ongoing operation of commercial
cannabis businesses and the City's oversight, or concerning any other subject determined to be
necessary to carry out the purposes of this Chapter.
(b) Regulations shall be published on the City’s website.
(c) Regulations promulgated by the City Manager or his/her designee shall become
effective upon date of publication. Commercial cannabis businesses shall be required to
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comply with all state and local laws and regulations, including but not limited to any rules,
regulations or standards adopted by the City Manager or his/her designee.
(d) Testing Labs and Distribution facilities shall be subject to state law and shall be
subject to additional regulations as determined from time to time as more regulations are
developed under Section 5.10.350 (a) of this Chapter and any subsequent State of California
legislation regarding the same.
5.10.380 Community Relations
(a) Each commercial cannabis business shall provide the name, telephone number, and
email address of a community relations contact to whom notice of problems associated with
the commercial cannabis business can be provided. Each commercial cannabis business shall
also provide the above information to all businesses and residences located within one
hundred (100) feet of the commercial cannabis business. The commercial cannabis business
shall notify the City Manager or his/her designee within twenty four (24) hours of a change in
community relations contact.
(b) During the first year of operation pursuant to this Chapter, the owner, manager, and
community relations representative from each commercial cannabis business holding a permit
issued pursuant to this Chapter shall attend meetings with the City Manager or his/her
designee(s), and other interested parties as deemed appropriate by the City Manager or his/her
designee(s), to discuss costs, benefits, and other community issues arising as a result of
implementation of this Chapter. After the first year of operation, the owner, manager, and
community relations representative from each such commercial cannabis business shall meet
with the City Manager or his/her designee(s) when and as requested by the City Manager or
his/her designee(s).
(c) Commercial cannabis businesses to which a permit is issued pursuant to this Chapter
shall develop a City approved public outreach and educational program for youth
organizations and educational institutions that outlines the risks of youth addiction to
cannabis, and that identifies resources available to youth related to drugs and drug addiction.
5.10.390 Fees Deemed Debt to the City of San Bernardino
The amount of any fee, cost or charge imposed pursuant to this Chapter shall be deemed a
debt to the City of San Bernardino that is recoverable via an authorized administrative process
as set forth by ordinance, or in any court of competent jurisdiction.
5.10.400 Permittee Responsible for Violations
The person to whom a permit is issued pursuant to this Chapter shall be responsible for all
violations of the laws of the State of California or of the regulations and/or the ordinances of
the City of San Bernardino, whether committed by the permittee or any employee or agent of
the permittee, which violations occur in or about the premises of the commercial cannabis
business whether or not said violations occur within the permittee’s presence.
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5.10.410 Inspection and Enforcement
(a) The City Manager, Chief of Police or designee of either of them charged with
enforcing the provisions of this Chapter, or any provision thereof, may enter the location of a
commercial cannabis business at any time, without notice, and inspect the location of any
commercial cannabis business as well as any recordings and records required to be maintained
pursuant to this Chapter or under applicable provisions of State law.
(b) It is unlawful for any person having responsibility over the operation of a commercial
cannabis business, to impede, obstruct, interfere with, or otherwise not to allow, the City to
conduct an inspection, review or copy records, recordings or other documents required to be
maintained by a commercial cannabis business under this Chapter or under state or local law.
It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records,
recordings or other documents required to be maintained by a commercial cannabis business
under this Chapter or under state or local law.
(c) The City Manager, Chief of Police or designee of either of them charged with
enforcing the provisions of this Chapter may enter the location of a commercial cannabis
business at any time during the hours of operation and without notice to obtain samples of the
cannabis to test for public safety purposes. Any samples obtained by the City of San
Bernardino shall be logged, recorded, and maintained in accordance with established
procedures by the San Bernardino Police Department or regulations adopted pursuant to the
authority of this Chapter.
5.10.420 Compliance with State Regulation
It is the stated intent of this Chapter to regulate commercial cannabis activity in the City of
San Bernardino in compliance with all provisions MAUCRSA and any subsequent state
legislation.
5.10.430 Violations declared a public nuisance
Each and every violation of the provisions of this Chapter is hereby deemed unlawful and a
public nuisance and may be summarily abated by the City Manager, Chief of Police, or
designee of either of them. The City may recover any nuisance abatement costs and/or
administrative fines relating to such violations in accordance with Government Code Sections
38773.1 and 38773.5 in accordance with Chapter 8.30 of this Code.
5.10.440 Each violation a separate offense
Each and every violation of this Chapter shall constitute a separate violation and shall be
subject to all remedies and enforcement measures authorized by the City of San Bernardino.
Additionally, as a nuisance per se, any violation of this Chapter shall be subject to injunctive
relief, any permit issued pursuant to this Chapter being deemed null and void, disgorgement
and payment to the City for any monies unlawfully obtained, costs of abatement, costs of
investigation, attorney fees, and any other relief or remedy available at law or in equity. The
City of San Bernardino may also pursue any and all remedies and actions available and
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applicable under state and local laws for any violations committed by the commercial
cannabis business or persons related to, or associated with, the commercial cannabis activity.
Additionally, when there is determined to be an imminent threat to public health, safety or
welfare, the City Manager, Chief of Police or designee of either of them, may take immediate
action to temporarily suspend a commercial cannabis business permit issued by the City,
pending a hearing before the City Manager, or his/her designee(s).
5.10.450 Criminal Penalties
Any person causing, permitting, aiding, abetting, suffering or concealing a violation of this
Chapter shall be guilty of a misdemeanor, and may, in the discretion of the City Attorney, be
prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed one
thousand dollars ($1,000) or imprisonment in the city or county jail for a period of not more
than six (6) months, or by both such fine and imprisonment. The City Attorney, in his or her
sound discretion, may prosecute a violation of this Chapter as an infraction, rather than a
misdemeanor, or reduce or agree to the reduction of a previously filed misdemeanor to an
infraction. Any person convicted of an infraction under this provisions of this Chapter shall be
punished by a fine not exceeding one hundred dollars ($100) for the first violation, a fine not
exceeding two hundred dollars ($200) for a second violation within one year, and a fine not
exceeding five hundred dollars ($500) for a third violation within one year. A fourth violation
of this Chapter within one year shall be charged as a misdemeanor and may not be reduced to
an infraction. Each day a violation is committed or permitted to continue shall constitute a
separate offense.
5.10.460 Remedies cumulative and not exclusive
The remedies provided herein are not to be construed as exclusive remedies. The City is
authorized to pursue any proceedings or remedies provided by law.
SECTION 4. REPEAL OF ORDINANCES
All Ordinances related to the establishment and operation of commercial cannabis activities
within the City of San Bernardino are hereby repealed and shall be of no further effect from
the effective date of this Ordinance.
SECTION 5. DEVELOPMENT CODE AMENDMENT FINDINGS
5.1 GENERAL PLAN
The Ordinance is consistent with the General Plan. The Ordinance proposes a comprehensive
regulatory system for commercial cannabis activities. The regulations include numerical,
locational, design, operating, security and sensitive-use distance regulations on commercial
cannabis activities. The Ordinance includes review and recommendations of applications for
commercial cannabis activities, which will be overseen by the City Manager, and will include
the Police Department and Planning Division of the Community Development Department.
The Ordinance is also consistent with the following General Plan goals and policies:
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Policy 2.2.8 requires the City to control the location and
number of community-sensitive uses, such as alcohol sales,
adult bookstores and businesses, game arcades, and similar
uses based on proximity to residences, schools, religious
facilities, and parks.
The Ordinance establishes a maximum number of permitted commercial
cannabis activities within the City. The Ordinance also establishes locational
restrictions, including zoning and distance restrictions. The Ordinance
establishes a distance buffer between commercial cannabis activities and
residential zones and uses. The Ordinance establishes a distance buffer
between commercial cannabis activities and schools, daycare centers, youth
centers, and parks. The discretionary approval process within the Ordinance
allows the City to consider the proximity of a proposed location to other
community-sensitive uses such as religious facilities and libraries when
determining whether to approve an application for a permit under the
Ordinance.
Policy 2.2.9 requires the Police Department review uses that
may be characterized by high levels of noise, nighttime
patronage, and/or rates of crime; providing for the conditioning
or control of use to prevent adverse impacts on adjacent
residences, schools, religious facilities, and similar “sensitive”
uses.
The Police Department has been involved in the development of the Ordinance
to ensure that the Ordinance contains adequate regulations that prevent adverse
impacts on adjacent “sensitive” uses. The Ordinance contains regulations
mandating minimum security measures, including security cameras, panic
buttons, monitored alarm systems, and on site security guards. The application
process adopted by the Mayor and City Council pursuant to the Ordinance will
allow for the Police Department to review applications and provide
recommendations to the City Manager. The Police Department’s review will be
incorporated into the City Manager’s final recommendation to the Mayor and
City Council on whether to approve a permit application. The Mayor and City
Council has reserved to itself the right to reject any application that it
determines rejection would be in the best interests of the City, taking into
account any health, safety and welfare impacts on the community.
Policy 2.2.10 requires the City to protect the quality of life
during the review of projects. The City is required to use its
discretion to deny or requirement mitigation of projects that
result in impacts that outweigh the benefits to the public.
The Mayor and City Council has reserved to itself the right to reject any
application that it determines rejection would be in the best interests of the
City, taking into account any health, safety and welfare impacts on the
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community. Additionally, as a discretionary approval, the Ordinance authorizes
the Mayor and City Council to condition its approval of a permit to mitigate
the negative effects of a commercial cannabis activity.
5.2 PUBLIC HEALTH, SAFETY AND WELFARE
The Ordinance is not detrimental to the public interest, health, safety, convenience, or
welfare. There are a high number of unpermitted commercial cannabis businesses currently
operating in the City of San Bernardino. The unpermitted commercial cannabis businesses
have caused significant public health, safety and welfare concerns as discussed in the recitals
above. The Ordinance addresses those public health, safety and welfare concerns by limiting
the number and location of the commercial cannabis activities and imposing operating
conditions that will ensure that qualified patients and persons over 21 years of age have safe
access to cannabis while maintaining the quality of life for the City’s residents. The Ordinance
is not detrimental to the public interest, health, safety, convenience, or welfare.
5.3 BALANCE OF LAND USES
The Ordinance would maintain the appropriate balance of land uses within the City. The
Ordinance limits the location of commercial cannabis activities to specified zones within the
City and establishes distance buffers from sensitive-uses. The Ordinance includes numerical
restrictions on the total number of permitted commercial cannabis activities to ensure that the
land uses in the City remain balanced. The Ordinance includes discretionary approval which
allows the Mayor and City Council to consider the balance of land uses when considering the
approval of an application.
5.4 SUITABILITY
The subject parcel(s) are physically suitable (including, but not limited to, access, provision
of utilities, compatibility with adjoining land uses, and absence of physical constraints) for
the requested land use designation(s) and the anticipated land use development(s). The
Ordinance includes discretionary approval which allows the Mayor and City Council to
consider the suitability of the property proposed in each application for the proposed
commercial cannabis activity. The zoning restrictions included within the Ordinance were
selected because those zones are the most likely to contain suitable properties for the
establishment of commercial cannabis activities.
SECTION 6. ENVIRONMENTAL DETERMINATION
The Mayor and City Council of the City of San Bernardino, California, hereby find and
determine that this Ordinance is not subject to environmental review under the California
Environmental Quality Act pursuant to Title 14 of the California Code of Regulations Section
15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical
change in the environment); Section 15060(c)(3) (the activity is not a project as defined in
Section 15378) because it has no potential for resulting in a physical change of the
environment, directly or indirectly; and Business and Professions Code Section 26055(h)
because the Ordinance requires the discretionary review of permits to include any applicable
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environmental review pursuant to Division 13 (commencing with Section 21000) of the
Public Resources Code.
SECTION 7. EFFECTIVE DATE
This Ordinance shall be effective upon the thirty-first (31st) day following its final passage by
a majority vote of the Mayor and City Council.
SECTION 8. SEVERABILITY
While it is the intent of the Mayor and City Council to adopt a comprehensive regulatory
system for commercial cannabis activities within the City of San Bernardino, if any provision
of this Ordinance or the application thereof to any person or circumstances is held invalid,
such invalidity shall not affect other provisions or applications of this Ordinance which can be
given effect without the invalid provision or application, and to this end, the provisions of this
Ordinance are severable. The Mayor and City Council declare that they would have adopted
this Ordinance irrespective of the invalidity of any particular portion thereof.
SECTION 9. PUBLICATION
The City Clerk shall certify to the adoption of this Ordinance and shall cause this Ordinance
to published as provided by State law.
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ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, ADOPTING CHAPTER 5.10 OF THE SAN
BERNARDINO MUNICIPAL CODE RELATED TO REGULATION OF
COMMERCIAL CANNABIS ACTIVITIES (DEVELOPMENT CODE AMENDMENT
18-02A)
I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor
and City Council of the City of San Bernardino at a _______________________ meeting
thereof, held on the _____ day of ______________, 2018, by the following vote, to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, CMC, City Clerk
The foregoing Ordinance is hereby approved this _____ day of __________________, 2018.
R. Carey Davis, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz, City Attorney
By:____________________
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ORDINANCE NO. MC-1465
ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, ADDING CHAPTER 8.97 TO THE SAN
BERNARDINO MUNICIPAL CODE ESTABLISHING REGULATIONS FOR THE
SMOKING OF CANNABIS IN PUBLIC PLACES (DEVELOPMENT CODE
AMENDMENT 18-02B)
WHEREAS, the City of San Bernardino, California (“City”) is a municipal
corporation, duly organized under the Charter of the City of San Bernardino and the
Constitution and laws of the State of California; and,
WHEREAS, at the General Election held on November 8, 2016, California voters
approved Proposition 64, commonly known as the “Control, Regulate and Tax Adult Use of
Marijuana Act” (“AUMA”), making it unlawful to “…smoke or ingest cannabis or cannabis
products in a public place…” (Health & Saf. Code, § 11362.3(a)(1)); and,
WHEREAS, on October 18, 2017, by Resolution No. 2017-211 the Mayor and City
Council directed the Citizen’s Advisory Committee on Marijuana (“CAC”) to discuss the
issue of public consumption of cannabis and, working with City staff and the City’s consultant
HdL, report back to the Mayor and City Council on December 20, 2017; and,
WHEREAS, the Mayor and City Council received the report from the CAC at its
regular meeting on December 20, 2017, and determined there was a need for further time to
adequately consider regulations on public consumption of cannabis; and,
WHEREAS, on January 22, 2018, the Mayor and City Council held a public
workshop to discuss, among other topics, public consumption of cannabis; and,
WHEREAS, on February 1, 2018, the Mayor and City Council directed City staff to
expeditiously prepare regulations for public consumption of cannabis within the City of San
Bernardino; and
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WHEREAS, the Mayor and City Council specifically finds that:
1. Secondhand cannabis smoke has been repeatedly identified as a health hazard;
2. There is no constitutional right to smoke cannabis in public;
3. The U.S. Surgeon General found there is no risk-free level of exposure to secondhand
cannabis smoke. Separating cannabis smokers from non-cannabis smokers, cleaning
the air, and ventilating buildings cannot eliminate exposure of non-cannabis smokers
to secondhand cannabis smoke;
4. The California Air Resources Board placed secondhand smoke in the same category as
the most toxic automotive and industrial air pollutants by categorizing it as a toxic air
contaminant for which there is no safe level of exposure;
5. The California Environmental Protection Agency included secondhand smoke on the
Proposition 65 list of chemicals known to the State of California to cause cancer, birth
defects, and other reproductive harm;
6. Exposure to secondhand cannabis smoke anywhere has negative health impacts, and
exposure to secondhand cannabis smoke occurs at significant levels outdoors, as
evidenced by the following:
a. Levels of secondhand cannabis smoke exposure outdoors can reach levels
attained indoors depending on the direction and amount of wind and number
and proximity of cannabis smokers;
b. Cannabis smoking near building entryways can increase air pollution levels by
more than two times as compared with background levels, with maximum
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levels reaching the "hazardous" range on the U.S. Environmental Protection
Agency Air Quality Index; and
c. A person may have to move nearly 23 feet away from the source of the
cannabis smoke to be completely free from exposure to secondhand cannabis
smoke in outdoor places.
7. Cannabis has been found to be toxic. In addition, cannabis exposure during fetal
development, a critical window for brain development, has lasting adverse
consequences. Cannabis adversely affects maternal and fetal health during pregnancy,
contributing to multiple adverse outcomes such as preterm delivery and stillbirth. In
addition, cannabis exposure during adolescence, also a critical window for brain
development, may have lasting adverse consequences;
8. Cannabis packaging is a major and persistent source of litter, and in most cases, does
not biodegrade, and are often cast onto sidewalks and streets, frequently ending up in
storm drains that flow into creeks, rivers, and ultimately the ocean;
9. Studies on electronic cigarettes' vapor emissions and cartridge contents have found a
number of dangerous substances including chemicals known to the State of California
to cause cancer, such as formaldehyde, acetaldehyde, lead, nickel, and chromium;
10. Several studies have concluded that vapor from electronic cigarettes may cause
passive or secondhand inhalation of vapor by nearby people;
11. There are no studies proving that inhalation of vapor from electronic cigarettes is not
harmful to health, and the long-term health risks of the use of electronic cigarettes on
device users and nearby people remain unknown;
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12. Secondhand cannabis smoke contains many of the same chemicals and carcinogens as
secondhand tobacco smoke. Results from laboratory testing under standard conditions
found that secondhand cannabis smoke contained more than twice as much tar and
ammonia as tobacco smoke and more than eight times as much hydrogen cyanide; and,
WHEREAS, there is a need to adopt health, safety and welfare regulations to avoid
adverse impacts on the City’s residents that may arise from public consumption of cannabis;
and,
WHEREAS, the Mayor and City Council have considered the report of the CAC, City
staff recommendations, the report of the City’s consultant, HdL, on cannabis issues, the
viewpoints of stakeholders and extensive public comment to craft this Ordinance, which
provides an effective regulatory system for public consumption of cannabis in the City, and
will address potential adverse impacts to the public health, welfare, and safety, while allowing
residents to consume cannabis in a manner consistent with State law; and
WHEREAS, federal law, codified at 21 U.S.C. Sections 801 et seq., entitled the
“Controlled Substances Act” (“CSA”) makes it unlawful to possess any controlled substances,
including cannabis, which has, as a Schedule I drug under the CSA, been determined by the
federal government to have a high potential for abuse and no accepted medical value in
treatment; and
WHEREAS, nothing in this Ordinance is intended to authorize the possession, use, or
provision of cannabis for purposes that violate federal law.
NOW, THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO DO ORDAIN AS FOLLOWS:
SECTION 1. INCORPORATION OF RECITALS
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The foregoing recitals set forth above are true and correct and are a substantive part of
this Ordinance.
SECTION 2. AUTHORITY
Pursuant to Sections 5 and 7 of Article XI of the California Constitution, the Charter
of the City of San Bernardino, and State law, including Health and Safety Code Section
11362.3(a)(1) and Business and Professions Code Section 26200, the City of San Bernardino
is authorized to adopt ordinances that protect the health, safety and welfare of its residents and
businesses. The adoption of reasonable regulations on public consumption of cannabis is a
permissible exercise of this authority.
SECTION 3. ADOPTION OF ORDINANCE
Chapter 8.97 entitled “Smoking Cannabis in Public Places”, of Title 8 “Health and
Safety” of the San Bernardino Municipal Code is approved and shall be added to the San
Bernardino Municipal Code as follows:
Chapter 8.97
SMOKING CANNABIS IN PUBLIC PLACES
8.97.010 Purpose and Intent
8.97.020 Applicability
8.97.030 Definitions
8.97.040 Prohibition of Smoking and Inhaling in Enclosed Places
8.97.050 Prohibition of Smoking and Inhaling in Unenclosed Areas
8.97.060 Prohibition of Smoking and Inhaling in City Vehicles and on City
Campuses
8.97.070 Smoking Distance Required
8.97.080 Additional Smoking –Related Restrictions
8.97.090 Other Requirements and Prohibitions
8.97.100 Posting of Signs
8.97.110 Interpretation
8.97.120 Other Laws
8.97.130 Violations Declared a Public Nuisance
8.97.140 Each Violation a Separate Offense
8.97.150 Criminal Penalties
8.97.160 Remedies Cumulative and Not Exclusive
8.97.010 Purpose and Intent
The purpose of this Chapter is to protect the good health and well-being of the
residents of the City of San Bernardino from the documented negative effects of secondhand
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cannabis smoke. Smoke-free air is an important component of a healthy community. The
Mayor and City Council intend to protect the public health, safety, and welfare by providing a
secondhand cannabis smoke-free environment in public and private places where non-
cannabis smokers may be exposed to secondhand cannabis smoke. The Mayor and City
Council further intend to promote secondhand cannabis smoke-free air, recognizing the need
to breathe smoke-free air has a priority over the desire to smoke cannabis. This Chapter is not
intended to interfere with a patient’s right to use medicinal cannabis pursuant to State law, as
may be amended, nor does it criminalize cannabis possession or use otherwise authorized by
State law.
8.97.020 Applicability
Nothing in this Chapter shall be construed to allow any conduct or activity relating to
the cultivation, distribution, dispensing, sale, or consumption of cannabis that is otherwise
illegal under local or State law. No provision of this title shall be deemed a defense or
immunity to any action brought against any person by the San Bernardino County District
Attorney’s office, the Attorney General of the State of California or the United States of
America. This Chapter shall be applicable in the incorporated areas of the City of San
Bernardino and in all City buildings, whether owned, leased, or controlled by the City, and on
all City campuses.
8.97.030 Definitions
A. "Business" means any sole proprietorship, partnership, limited liability company, joint
venture, corporation, association, or other entity formed for profit-making purposes
or for nonprofit charitable, religious, philanthropic, educational, political, social, or
similar purposes. A government agency is not a business within the meaning of this
chapter.
B. “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or
Cannabis ruderalis, or any other strain or varietal of the genus Cannabis that may exist
or be discovered, or developed, that has psychoactive or medical properties, whether
growing or not, including but not limited to the seeds thereof; the resin, whether crude
or purified, extracted from any part of the plant; and every compound, manufacture,
salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis”
also means the separated resin, whether crude or purified, obtained from cannabis.
“Cannabis” also means marijuana as defined by California Health and Safety Code
section 11018 and Business and Professions Code section 26001(f), as both may be
amended from time to time. Any reference to cannabis or cannabis products shall
include medical and nonmedical cannabis and medical and nonmedical cannabis
products, unless otherwise specified. Cannabis or cannabis product does not mean
industrial hemp as defined by Health and Safety Code section 11018.5, or the weight
of any other ingredient combined with cannabis to prepare topical or oral
administrations, food, drink, or other product. Cannabis does not include the mature
stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of
the plant, any other compound, manufacture, salt, derivative, mixture, or preparation
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of the mature stalks (except the resin extracted therefrom), fiber, oil or cake, or the
sterilized seed of the plant which is incapable of germination.
C. "City" means the City of San Bernardino, a Charter City in the State of California.
D. "City campus" means enclosed areas and unenclosed areas under the legal control of
the City, including property that is owned, leased, or maintained by the City or
governed by the Mayor and City Council.
E. "Prohibited smoking area" means a designated portion of an unenclosed area where
cannabis smoking is prohibited.
1. Cannabis smoking shall be prohibited within one thousand (1,000) feet of any
of the following:
i. Any school (k-12) regardless if it is a public, private or charter school;
ii. Day care center as defined in Section 1596.76 of the Health and Safety
Code;
iii. Youth center as defined in Section 11353.1 of the Health and Safety
Code;
iv. Any library, park, bicycle paths or area in which the primary purpose is
used for minors; and
v. Any alcohol rehabilitation center or substance abuse facility.
F. "Dining area" means any area which is available to or customarily used by the general
public or an employee and which is designed, established, or regularly used for
consuming food or drink.
G. "Electronic smoking device" means an electronic device that can be used to deliver an
inhaled dose of cannabis, cannabis oils or other substances, including any component,
part, or accessory of such a device, whether or not sold separately. "Electronic
smoking device" includes any such device, whether manufactured, distributed,
marketed, or sold as an electronic cigarette, an electronic cigar, an electronic cigarillo,
an electronic pipe, an electronic hookah, vaping pens or any other product name or
descriptor.
H. "Employee" means any natural person who is employed or retained as an independent
contractor by any employer in consideration for direct or indirect monetary wages or
profit, or any natural person who volunteers his or her services for an employer.
I. "Employer" means any business with one or more employees.
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J. "Enclosed area" means an area in which outside air cannot circulate freely to all parts
of the area, and includes an area that has:
1. Any type of overhead cover and at least three walls or other vertical constraint
to airflow; or
2. Four walls or other vertical constraints to airflow.
K. "Person" means any natural person, business, personal representative, receiver, trustee,
assignee, or any other legal entity.
L. "Place of employment" means any area under the legal or de facto control of an
employer that an employee or the general public may have cause to enter in the normal
course of operations, regardless of the hours of operation.
M. "Public place" means any place, publicly or privately owned, when being used for a
public event, including but not limited to a farmers' market, parade, craft fair, festival,
or any other event open to the general public.
N. "Recreational area" means any area that is owned, controlled, or used by the City and
open to the general public for recreational purposes, regardless of any fee or age
requirement. "Recreational area" includes, but is not limited to, parks, picnic areas,
playgrounds, sports fields, walking paths, gardens, hiking trails, bike paths, riding
trails, swimming pools, skateboard parks, and amusement parks. "Recreational area"
does not include golf courses.
O. "Service area" means any publicly or privately-owned area designed to be used or is
regularly used by one or more persons to receive a service, wait to receive a service, or
to make a transaction, whether or not such service or transaction includes the exchange
of money. "Service area" includes, but is not limited to, areas including or adjacent to
information kiosks, automatic teller machines, ticket lines, bus stops or shelters,
mobile vendor lines, or cab stands.
P. "Smoke" means the gases, oils, particles, or vapors released into the air as a result of
combustion, electrical ignition, or vaporization, when the apparent or usual purpose of
the combustion, electrical ignition, or vaporization is human inhalation of the
byproducts, except when the combusting or vaporizing material contains no tobacco,
cannabis, cannabis oils, or nicotine and the purpose of inhalation is solely olfactory,
such as smoke from incense. "Smoke" includes, but is not limited to, tobacco smoke,
electronic smoking device vapors, and cannabis smoke.
Q. "Smoking" means inhaling, exhaling, burning, or carrying any ignited, heated, or
activated cigar, cigarette, cigarillo, pipe, hookah, electronic smoking device, or any
plant product intended for human inhalation including, but not limited to, cannabis or
cannabis products.
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R. “Cannabis concentrate” means cannabis that has undergone a process to concentrate
one or more active cannabinoids, thereby increasing the product’s potency. Resin from
granular trichomes from a cannabis plant is a concentrate for purposes of this Chapter.
A cannabis concentrate is not considered food, as defined by Section 109935 of the
Health and Safety Code, or drug, as defined by Section 109925 of the Health and
Safety Code.
S. "Cannabis paraphernalia" means any item designed for the consumption, use, or
preparation of cannabis or cannabis product.
T. “Cannabis product” means:
1. Any product containing, made, or derived from cannabis or cannabis products
that is intended for human consumption, whether smoked, heated, absorbed,
dissolved, inhaled, snorted, sniffed, or ingested by any other means, including,
but not limited to, cigarettes, cigars, bongs, blunts, pipes; and
2. Any electronic smoking device. Notwithstanding any provision of
subparagraphs (1) and (2) to the contrary, ”cannabis products” includes any
component, part, or accessory of a cannabis product, whether or not sold
separately.
U. "Unenclosed area" means any area that is not an enclosed area.
8.97.040 Prohibition of Smoking and Inhaling in Enclosed Places
The City shall enforce the California smoke-free workplace law (Labor Code Section
6404.5), which prohibits smoking in enclosed places of employment, in all areas subject to
this Chapter. In addition, all cannabis smoking and the inhaling of cannabis products are
prohibited in the enclosed areas of the following places:
A. All businesses that are not places of employment and which have a common or shared
air space with an enclosed area, such as, without limitation, openings, cracks, air
ventilation systems, doorways, hallways, and stairways, in which smoking is
prohibited by law. Notwithstanding any other provision of this chapter, the fact that
cannabis smoke enters one enclosed area from another enclosed area is conclusive
proof that the areas share a common or shared air space;
B. Public places as defined in section 8.97.030(M); and
C. Any area within 50 feet of any door, window, opening, or vent, into a public place,
dining area, service area, or recreational area except for such areas on private
residential property.
8.97.050 Prohibition of Smoking and Inhaling in Unenclosed Areas
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Smoking and inhaling of cannabis products are prohibited in the unenclosed areas of the
following places as defined in Section 8.97.030 above:
A. Dining areas;
B. Public places;
C. Recreational areas;
D. Service areas; and
E. Places of employment.
8.97.060 Prohibition of Smoking and Inhaling in City Vehicles and on City
Campuses
A. Smoking and inhaling of cannabis products are prohibited in all vehicles leased,
owned, or operated by the City or any district governed by the City.
B. Smoking and the use of cannabis or cannabis products are prohibited in all enclosed
areas and unenclosed areas of a City campus.
8.97.070 Smoking Distance Required
A. Smoking and inhaling of cannabis in all unenclosed areas is prohibited within 25 50
feet from any enclosed or unenclosed areas in which smoking is prohibited.
B. A private property or business owner may authorize a Designated Smoking Area in an
unenclosed area of his or her private property.
8.97.080 Additional Smoking-Related Restrictions
A. A person who owns, manages, operates, or otherwise controls the use of any place
where cannabis smoking is prohibited by this Chapter may not knowingly or
intentionally permit cannabis smoking in those places. For purposes of this section, a
person has acted knowingly or intentionally if the person has not taken the following
actions to prevent cannabis smoking by another person:
1. Requested that a person who is smoking refrain from cannabis smoking in the
prohibited place; and
2. Requested that a person who is smoking cannabis leave the prohibited place if
the person refuses to stop smoking in the prohibited place after being asked to
stop. This Section does not require physically ejecting a person from a place or
taking steps to prevent smoking under circumstances that would involve risk of
physical harm.
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B. No person shall intimidate, harass, or otherwise retaliate against any person who seeks
compliance with this Section. Moreover, no person shall intentionally or recklessly
expose another person to cannabis smoke in response to that person's effort to achieve
compliance with this Section.
8.97.090 Other Requirements and Prohibitions
A. No employer or business doing business with the City and within the City of San
Bernardino shall knowingly or intentionally permit cannabis smoking or inhaling in an
area which is under the employer's or business's control and in which cannabis
smoking is prohibited.
B. No person shall litter or dispose of cannabis packaging or cannabis products waste
within the boundaries of an area in which cannabis smoking or cannabis products is
prohibited except into a waste receptacle or ash can.
C. No person, employer, or business shall intimidate or threaten or effect any reprisal
against another person for the purpose of retaliating against that person for seeking to
obtain compliance with this chapter.
8.97.100 Posting of Signs
A person, employer, or business that has legal or de facto control of an area in which
cannabis smoking, or the use of cannabis products is prohibited by this chapter shall post a
clear, conspicuous and unambiguous "No Smoking and No Vaping" or "Smoke-Free" sign at
each point of ingress to the area, and in at least one other conspicuous point within the area.
The signs will have letters of no less than one inch in height and shall include the international
"No Smoking and No Vaping" symbol (consisting of a pictorial representation of a burning
cigarette, cannabis leaf and e-cigarette enclosed in a red circle with a red bar across it). Signs
posted on the exterior of buildings to comply with this section shall include the reasonable
distance requirement set forth in section 8.97.070. At least one sign with a City phone number
(to be determined by the director of Community Development and made available on the
department's website which complaints can be directed must be placed conspicuously in each
place in which cannabis smoking is prohibited. The Community Development Department
shall be responsible for providing appropriate signs in public facilities controlled by the City.
Notwithstanding this section, the presence or absence of signs shall not be a defense to a
charge of cannabis smoking or the use of cannabis products in violation of any other provision
of this chapter.
8.97.110 Interpretation
This chapter shall not be interpreted or construed to permit cannabis smoking where it is
otherwise restricted by other applicable laws.
8.97.120 Other Laws
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It is not the intention of this chapter to regulate any conduct where the regulation of such
conduct has been preempted by the State of California.
8.97.130 Violations Declared a Public Nuisance
Each and every violation of the provisions of this Chapter is hereby deemed unlawful and a
public nuisance.
8.97.140 Each Violation a Separate Offense
Each and every violation of this Chapter shall constitute a separate violation and shall be
subject to all remedies and enforcement measures authorized by the City of San Bernardino.
8.97.150 Criminal Penalties
Any person causing, permitting, aiding, abetting, suffering or concealing a violation of this
Chapter shall be guilty of a misdemeanor, and may, in the discretion of the City Attorney, be
prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed one
thousand dollars ($1,000) or imprisonment in the city or county jail for a period of not more
than six (6) months, or by both such fine and imprisonment. The City Attorney, in his or her
sound discretion, may prosecute a violation of this Chapter as an infraction, rather than a
misdemeanor, or reduce or agree to the reduction of a previously filed misdemeanor to an
infraction. Any person convicted of an infraction under this provisions of this Chapter shall be
punished by a fine not exceeding one hundred dollars ($100) for the first violation, a fine not
exceeding two hundred dollars ($200) for a second violation within one year, and a fine not
exceeding five hundred dollars ($500) for a third and subsequent violations within one year. A
fourth violation of this Chapter within one year shall be charged as a misdemeanor and may
not be reduced to an infraction.
8.97.160 Remedies Cumulative and Not Exclusive
The remedies provided herein are not to be construed as exclusive remedies. The City is
authorized to pursue any proceedings or remedies provided by law or equity.
SECTION 4. REPEAL OF ORDINANCES
All ordinances related to personal cultivation within the City of San Bernardino are hereby
repealed and shall be of no further effect from the effective date of this Ordinance.
SECTION 5. SPECIFIC FINDINGS
The Mayor and City Council, after considering the extensive meetings of the CAC, the
Planning Commission, City staff reports, reports from the City’s cannabis consultant HdL,
testimony from stakeholders, and public comment, make the following specific findings:
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(A) The Ordinance is consistent with the General Plan;
(B) The Ordinance is not detrimental to the public interest, health, safety,
convenience, or welfare;
(C) The Ordinance would maintain the appropriate balance of land uses within the
City; and
(D) The subject parcel(s) are physically suitable (including, but not limited to,
access, provision of utilities, compatibility with adjoining land uses, and
absence of physical constraints) for the requested land use designation(s) and
the anticipated land use development(s).
SECTION 6. ENVIRONMENTAL DETERMINATION
The Mayor and City Council of the City of San Bernardino, California, hereby find and
determine that this Ordinance is not subject to environmental review under the California
Environmental Quality Act pursuant to Title 14 of the California Code of Regulations Section
15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical
change in the environment) and Section 15060(c)(3) (the activity is not a project as defined in
Section 15378) because it has no potential for resulting in a physical change of the
environment, directly or indirectly.
SECTION 7. EFFECTIVE DATE
This Ordinance shall be effective upon the thirty-first (31st) day following its final passage by
a majority vote of the Mayor and City Council.
SECTION 8. SEVERABILITY
While it is the intent of the Mayor and City Council to adopt a comprehensive regulatory
system regarding public consumption of cannabis within the City of San Bernardino, if any
provision of this Ordinance or the application thereof to any person or circumstances is held
invalid, such invalidity shall not affect other provisions or applications of this Ordinance
which can be given effect without the invalid provision or application, and to this end, the
provisions of this Ordinance are severable. The Mayor and City Council declare that they
would have adopted this Ordinance irrespective of the invalidity of any particular portion
thereof.
SECTION 9. PUBLICATION
The City Clerk shall certify to the adoption of this Ordinance and shall cause this Ordinance
to published as provided by State law.
///
///
///
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ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, ADDING CHAPTER 8.97 TO THE SAN
BERNARDINO MUNICIPAL CODE ESTABLISHING REGULATIONS FOR THE
SMOKING OF CANNABIS IN PUBLIC PLACES (DEVELOPMENT CODE
AMENDMENT NO. 18-02B)
I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor
and City Council of the City of San Bernardino at a _______________________ meeting
thereof, held on the _____ day of ______________, 2018, by the following vote, to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, CMC, City Clerk
The foregoing Ordinance is hereby approved this _____ day of __________________, 2018.
R. Carey Davis, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz, City Attorney
By:____________________
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ORDINANCE NO. MC-1466
ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, ADDING CHAPTER 8.99 TO THE SAN
BERNARDINO MUNICIPAL CODE ESTABLISHING REGULATIONS FOR THE
PERSONAL CULTIVATION OF CANNABIS WITHIN PRIVATE RESIDENCES
(DEVELOPMENT CODE AMENDMENT 18-02C)
WHEREAS, the City of San Bernardino, California (“City”) is a municipal
corporation, duly organized under the Charter of the City of San Bernardino and the
Constitution and laws of the State of California; and,
WHEREAS, at the General Election held on November 5, 1996, California voters
approved Proposition 215, commonly known as the “Compassionate Use Act of 1996”
(“CUA”) with the purpose of allowing medical patients to cultivate and use cannabis without
fear of State prosecution; and,
WHEREAS, on January 1, 2004, Senate Bill 420 (codified as Health and Safety Code
Sections 11362.7, et seq., entitled the “Medical Marijuana Program Act” (“MMPA”) went
into effect with the purpose of clarifying the scope of the CUA allowing cities and counties to
adopt and enforce regulations consistent with the CUA and MMPA; and,
WHEREAS, at the General Election held on November 8, 2016, California voters
approved Proposition 64, commonly known as the “Control, Regulate and Tax Adult Use of
Marijuana Act” (“AUMA”), making it lawful for persons “…21 years of age or older
to…possess, plant, cultivate, harvest, dry, or process not more than six living marijuana plants
and possess the marijuana produced by the plants” (Health & Saf. Code, § 11362.1(a)) subject
to “reasonable regulations” enacted and enforced by the City. (Health & Saf. Code, §
11362.2(b)(1)); and,
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WHEREAS, on October 18, 2017, by Resolution No. 2017-211 the Mayor and City
Council directed the Citizen’s Advisory Committee on Marijuana (“CAC”) to discuss the
issue of personal cultivation in residential zones and, working with City staff and the City’s
consultant HdL, report back to the Mayor and City Council on December 20, 2017; and,
WHEREAS, the Mayor and City Council received the report from the CAC at its
regular meeting on December 20, 2017, and determined there was a need for further time to
adequately consider regulations on personal cultivation of cannabis; and,
WHEREAS, on December 20, 2017, the Mayor and City Council, seeking to protect
the City’s authority to regulate personal cultivation, adopted Ordinance No. MC-1452,
establishing a moratorium prohibiting all land use entitlements, building permits, business
licenses and any other applicable approval or decisions for outdoor personal cultivation and
reserving the right to pass regulations for indoor personal cultivation; and,
WHEREAS, on January 22, 2018, the Mayor and City Council held a public
workshop to discuss, among other topics, personal cultivation of cannabis; and,
WHEREAS, on January 22, 2018, the Mayor and City Council opened a duly noticed
public hearing on an extension of the moratorium; and,
WHEREAS, on January 22, 2018, the Mayor and City Council continued the public
hearing to February 1, 2018 to have additional time for public comment on the moratorium;
and
WHEREAS, on February 1, 2018, the Mayor and City Council by a vote of 7-0 voted
to extend the moratorium 10 months and 15 days to December 18, 2018 to allow further
consideration of regulations on personal cultivation; and,
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WHEREAS, on February 1, 2018, the Mayor and City Council directed City staff to
expeditiously prepare regulations for personal cultivation within the City of San Bernardino;
and,
WHEREAS, personal cultivation within residential zones has caused adverse effects
to the health, safety, and welfare of the City’s residents, including violations of the City’s Fire
and Building Codes; and,
WHEREAS, there is a need to adopt health, safety and welfare regulations to avoid
adverse impacts on the City’s residents that may arise from personal cultivation; and,
WHEREAS, the Mayor and City Council have considered the report of the CAC, City
staff recommendations, the report of the City’s consultant, HdL, on cannabis issues, the
viewpoints of stakeholders such as Inland Empire NORML, and extensive public comment to
craft this Ordinance; and,
WHEREAS, this Ordinance provides an effective regulatory system for personal
cultivation in the City, and will address potential adverse impacts to the public health, welfare,
and safety, while allowing residents to engage in personal cultivation in a manner consistent
with State law; and
WHEREAS, this Ordinance would allow for indoor cultivation of cannabis in a
private residence or accessory structure in a manner that will ensure any cultivation is safe,
secure, and does not create a public nuisance to others living in the City; and,
WHEREAS, federal law, codified at 21 U.S.C. Sections 801 et seq., entitled the
“Controlled Substances Act” (“CSA”) makes it unlawful to possess any controlled substances,
including cannabis, which has, as a Schedule I drug under the CSA, been determined by the
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federal government to have a high potential for abuse and no accepted medical value in
treatment; and,
WHEREAS, nothing in this Ordinance is intended to authorize the possession, use, or
provision of cannabis for purposes that violate federal law.
NOW, THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO DO ORDAIN AS FOLLOWS:
SECTION 1. INCORPORATION OF RECITALS
The foregoing recitals set forth above are true and correct and are a substantive part of
this Ordinance.
SECTION 2. AUTHORITY
Pursuant to Sections 5 and 7 of Article XI of the California Constitution, the Charter
of the City of San Bernardino, and State law, including Health and Safety Code Section
11362.2(b)(1), the City of San Bernardino is authorized to adopt ordinances that protect the
health, safety and welfare of its residents and businesses. The adoption of reasonable
regulations on indoor personal cultivation and prohibition on outdoor personal cultivation is a
permissible exercise of this authority.
SECTION 3. ADOPTION OF ORDINANCE
Chapter 8.99, entitled “Personal Cultivation of Cannabis”, of Title 8 “Health and
Safety” of the San Bernardino Municipal Code is approved and shall be added to the San
Bernardino Municipal Code as follows:
Chapter 8.99
PERSONAL CULTIVATION OF CANNABIS
8.99.010 Purpose and Intent
8.99.020 Applicability
8.99.030 Definitions
8.99.040 Personal Cultivation of Cannabis
8.99.050 Violations Declared a Public Nuisance
8.99.060 Each Violation a Separate Offense
8.99.070 Criminal Penalties
8.99.080 Remedies Cumulative and Not Exclusive
8.99.010 Purpose and Intent
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The purpose of this Chapter is to impose reasonable regulatory restrictions on the
personal cultivation of cannabis pursuant to State law. This Chapter is not intended to
interfere with a patient’s right to use medicinal cannabis pursuant to State law, as may be
amended, nor does it criminalize cannabis possession or cultivation otherwise authorized by
State law. This Chapter is not intended to give any person or entity independent legal
authority to engage in commercial cannabis activity, as it is intended simply to impose
regulatory restrictions regarding personal cultivation of cannabis in the City pursuant to this
Code and State law.
8.99.020 Applicability
Nothing in this title shall be construed to allow any conduct or activity relating to the
cultivation, distribution, dispensing, sale, or consumption of cannabis that is otherwise illegal
under local or state law. Nor shall it be construed, to exempt any activity related to the
cultivation of cannabis from any applicable electrical, plumbing, land use or other building or
land use standards or permitting requirements. No provision of this Chapter shall be deemed a
defense or immunity to any action brought against any person by the San Bernardino County
District Attorney’s office, the Attorney General of the State of California or the United States
of America.
8.99.030 Definitions
A. "City" means the City of San Bernardino, California.
B. “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or
Cannabis ruderalis, or any other strain or varietal of the genus Cannabis that may exist
or be discovered, or developed, that has psychoactive or medical properties, whether
growing or not, including but not limited to the seeds thereof; the resin, whether crude
or purified, extracted from any part of the plant; and every compound, manufacture,
salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis”
also means the separated resin, whether crude or purified, obtained from cannabis.
“Cannabis” also means marijuana as defined by California Health and Safety Code
section 11018 and Business and Professions Code section 26001(f), as both may be
amended from time to time. Any reference to cannabis or cannabis products shall
include medical and nonmedical cannabis and medical and nonmedical cannabis
products, unless otherwise specified. Cannabis or cannabis product does not mean
industrial hemp as defined by Health and Safety Code section 11018.5, or the weight
of any other ingredient combined with cannabis to prepare topical or oral
administrations, food, drink, or other product. Cannabis does not include the mature
stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of
the plant, any other compound, manufacture, salt, derivative, mixture, or preparation
of the mature stalks (except the resin extracted therefrom), fiber, oil or cake, or the
sterilized seed of the plant which is incapable of germination.
C. “Cannabis Concentrate” means manufactured cannabis that has undergone a process to
concentrate the cannabinoid active ingredient, thereby increasing the product’s
potency.
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D. "Commercial cannabis activity" includes the cultivation, possession, manufacture,
distribution, processing, storing, laboratory testing, labeling, transportation,
distribution, or sale of cannabis and cannabis products.
E. "Fully Enclosed and Secure Structure" means within a fully enclosed and secure
structure that complies with the California Building Code, as adopted in the City of
San Bernardino, or, if exempt from permit requirements, that has a complete roof
enclosure supported by connecting walls extended from the ground to the roof, a
foundation, slab or equivalent base to which the floor is secured by bolts or similar
attachments, is secure against unauthorized entry, and is accessible only through one
or more lockable doors and accessible only to the owner or tenant. Walls and roofs
must be constructed of sold materials that cannot be easily broken through such as two
inches by four inch or thicker studs overlaid with 3/8-inch or thicker plywood or the
equivalent. Plastic sheeting, regardless of gauge, or similar products do not satisfy this
requirement. If indoor grow lights or air filtration systems are used, they must comply
with the California Building, Electrical and Fire Codes as adopted by the City of City
of San Bernardino.
F. “Cannabis cultivation” means any activity involving the planting, growing, harvesting,
drying, curing, grading, or trimming of cannabis, including nurseries.
G. “Personal cultivation” means cannabis cultivation conducted by an individual strictly
for that individual’s personal use, possession, processing, transporting, or giving away
without any compensation whatsoever in accordance with this Code and state law,
including but not limited to Health and Safety Code Sections 11362.1 and 11362.2, as
may be amended. Personal cultivation also means and includes cultivation of medical
cannabis conducted by a qualified patient exclusively for his or her personal medical
use, and cultivation conducted by a primary caregiver for the personal medical
purposes of no more than five specified qualified patients for whom he or she is the
primary caregiver, in accordance with state law, including Health and Safety Code
Sections 11362.7 and 11362.765, as may be amended. Except as herein defined,
personal cultivation does not include, and shall not authorize, any cultivation
conducted as part of a business or commercial activity, including cultivation for
compensation or retail or wholesale sales of cannabis.
H. “Indoor cannabis cultivation” means cultivation of cannabis using exclusively artificial
lighting.
I. “Mixed-light cannabis cultivation” means cultivation of cannabis using any
combination of natural and supplemental artificial lighting. Greenhouses, hoop
houses, hot houses and similar structures, or light deprivation systems are included in
this category.
J. “Outdoor cannabis cultivation” means cultivation of cannabis in the open air using no
artificial lighting conducted in the ground or in containers outdoors with no covering.
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Outdoor cultivation does not include greenhouses, hoop houses, hot houses or similar
structures.
K. “Primary caregiver” shall have the same meaning as set forth in Health and Safety
Code Section 11362.7, as the same may be amended from time to time.
L. “Qualifying patient” or “qualified patient” shall have the same meaning as set forth in
Health and Safety Code Section 11362.7, as the same may be amended from time to
time.
M. “Medical cannabis” or “medicinal cannabis” means cannabis that is intended to be
used for medical cannabis purposes in accordance with the Compassionate Use Act
(“CUA,” Health and Safety Code section 11362.7 et seq.), the Medical Marijuana
Program Act (“MMPA,” Health and Safety Code section 11362.7 et seq.) and the
Medicinal Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA,” Division
10 of the Business and Professions Code).
N. “Private Residence" or "Residence" means a house, apartment unit, mobile home or
other similar dwelling which is permitted by the City.
8.99.040 Personal Cultivation of Cannabis
A. Indoor cannabis cultivation and mixed-light cannabis cultivation for personal use is
permitted within all private residential dwellings and accessory structures to all private
residential dwellings within all zoning districts, subject to all of the following
minimum standards:
1. All indoor cannabis cultivation and mixed-light cannabis cultivation for
personal use, including by a qualified patient or primary caregiver, shall occur
in a private residential dwelling or accessory structure to a private residential
dwelling, as those terms are defined in Chapter 19.02 of this Code.
2. No more than six (6) cannabis plants may be cultivated by either a qualified
patient, primary caregiver, or an individual over twenty-one (21) years old at
each private residential dwelling or accessory structure regardless of the
number of qualified patients or adults twenty-one (21) and older who reside at
such private residential dwelling. Cultivation of more than six (6) plants per
residential dwelling or accessory structure shall be considered commercial
cannabis activity, not personal cultivation, and shall be subject to all the
requirements for commercial cannabis activity within this Code.
3. Medical cannabis shall only be cultivated by:
i. A qualified patient exclusively for his or her own personal medical use
but who does not provide, donate, sell, or distribute medical cannabis to
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any other person and who can provide a written doctor’s
recommendation to the City upon request; or
ii. A primary caregiver who cultivates, possesses, stores, manufactures,
transports, donates, or provides medical cannabis exclusively for the
personal medical purposes of no more than five specified qualified
patients for whom he or she is the primary caregiver, but who does not
receive remuneration for these activities except for compensation in full
compliance with California Health and Safety Code Section
11362.765(c).
4. For persons other than qualified patients or primary caregivers, all personal
cultivation shall be conducted by persons twenty-one (21) years of age or
older. The cumulative total of cannabis plants on the property shall not exceed
six (6) cannabis plants, regardless of the number of persons residing at the
private residential dwelling.
5. Written consent from all owners of the property to cultivate cannabis within
the residential dwelling or in a fully enclosed and secure accessory structure
shall be obtained and shall be kept on the property, and available for inspection
by the Chief of Police or his/her designee upon request. The written consent
shall only be valid for twelve (12) months from the signing of the consent.
6. Cannabis cultivation of medical and nonmedical cannabis for personal use may
occur inside a private residential dwelling and/or an accessory building or
structure on the same parcel, subject to the following restrictions:
i. Structures and equipment used for indoor cannabis cultivation and/or
mixed-light cannabis cultivation, such as indoor grow lights, shall
comply with all applicable zoning, building, electrical and fire code
regulations as adopted by the City.
ii. All accessory buildings and structures used for indoor cannabis
cultivation and/or mixed-light cannabis cultivation shall comply with
the locational and other requirements set forth in Title 19 of this Code.
iii. Personal cultivation of cannabis shall not interfere with the primary
occupancy of the building or structure, including regular use of
kitchen(s) or bathroom(s).
iv. The use of generators to power any cultivation equipment is prohibited.
v. All property improvements, if any, shall comply with the California
Building, Electrical and Fire Codes as adopted by the City.
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vi. Any fully enclosed and secure structure or residence used for cannabis
cultivation shall have a ventilation and filtration system installed that
shall prevent cannabis plant odors from exiting the interior of the
structure and that shall comply with the Building Code adopted by the
City.
vii. No exterior evidence of cannabis cultivation occurring at the property
shall be discernable from the public right-of-way.
viii. Nothing in this section is intended, nor shall it be construed, to preclude
any landlord from limiting or prohibiting personal cultivation of
cannabis by tenants.
ix. Nothing in this section is intended, nor shall it be construed, to
authorize commercial cultivation of cannabis.
x. Nothing in this section is intended, nor shall it be construed, to
authorize any public or private nuisance as specified in this Code.
xi. The cultivation area shall be in a locked space inaccessible to minors,
visitors, vandals, or anyone not authorized to possess cannabis.
7. The area of cultivation shall not adversely affect the health or safety of the
occupants of the private residence or the parcel or any other property by
creating dust, glare, heat, noise, noxious gasses, odor, smoke, traffic, vibration,
mold, or other impacts, and shall not be maintained as to constitute a hazard
due to use or storage of materials, processes, products or wastes.
8. Cultivation shall not occur within any private residential dwelling containing a
day care center, as defined in Chapter 5.10 of this Code.
B. Outdoor cannabis cultivation (i.e. in the open air) is prohibited within all zoning
districts.
B.C. It shall be unlawful for any person to engage in personal cultivation without
registering with the City of San Bernardino. The registration shall require the person
engaging in personal cultivation to provide their name, address, telephone number, and
any other information determined necessary to protect the health, safety, and welfare
of the residents and businesses of the City by the City Manager or his/her designee.
The registration may require the payment of a fee as set by Resolution of the Mayor
and City Council.
8.99.050 Violations Declared a Public Nuisance
Each and every violation of the provisions of this Chapter is hereby deemed unlawful
and a public nuisance and may be summarily abated by the City Manager, Chief of Police, or
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designee of either of them. The City may recover any nuisance abatement costs and/or
administrative fines relating to such violations in accordance with Government Code Sections
38773.1 and 38773.5 in accordance with Chapter 8.30 of this Code.
8.99.060 Each Violation a Separate Offense
Each and every violation of this Chapter shall constitute a separate violation and shall
be subject to all remedies and enforcement measures authorized by the City of San
Bernardino. Additionally, as a nuisance per se, any violation of this Chapter shall be subject to
injunctive relief, disgorgement and payment to the City for any monies unlawfully obtained,
costs of abatement, costs of investigation, attorney fees, and any other relief or remedy
available at law or in equity.
8.99.070 Criminal Penalties
Any person causing, permitting, aiding, abetting, suffering or concealing a violation of
this Chapter shall be guilty of a misdemeanor, and may, in the discretion of the City Attorney,
be prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed one
thousand dollars ($1,000) or imprisonment in the city or county jail for a period of not more
than six (6) months, or by both such fine and imprisonment. Each day a violation is
committed or permitted to continue shall constitute a separate offense. The City Attorney, in
his or her sound discretion, may prosecute a violation of this Chapter as an infraction, rather
than a misdemeanor, or reduce or agree to the reduction of a previously filed misdemeanor to
an infraction. Any person convicted of an infraction under this provisions of this Chapter shall
be punished by a fine not exceeding one hundred dollars ($100) for the first violation, a fine
not exceeding two hundred dollars ($200) for a second violation within one year, and a fine
not exceeding five hundred dollars ($500) for a third violation within one year. A fourth
violation of this Chapter within one year shall be charged as a misdemeanor and may not be
reduced to an infraction.
8.99.080 Remedies Cumulative and Not Exclusive
The remedies provided herein are not to be construed as exclusive remedies. The City
is authorized to pursue any proceedings or remedies provided by law.
SECTION 4. REPEAL OF ORDINANCES
All ordinances related to personal cultivation within the City of San Bernardino are
hereby repealed and shall be of no further effect from the effective date of this Ordinance.
SECTION 5. SPECIFIC FINDINGS
The Mayor and City Council, after considering the extensive meetings of the CAC, the
Planning Commission, City staff reports, reports from the City’s cannabis consultant HdL,
testimony from stakeholders, and public comment, make the following specific findings:
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(A) The Ordinance is consistent with the General Plan;
(B) The Ordinance is not detrimental to the public interest, health, safety,
convenience, or welfare;
(C) The Ordinance would maintain the appropriate balance of land uses within the
City; and
(D) The subject parcel(s) are physically suitable (including, but not limited to,
access, provision of utilities, compatibility with adjoining land uses, and
absence of physical constraints) for the requested land use designation(s) and
the anticipated land use development(s).
SECTION 6. ENVIRONMENTAL DETERMINATION
The Mayor and City Council of the City of San Bernardino, California, hereby find
and determine that this Ordinance is not subject to environmental review under the California
Environmental Quality Act pursuant to Title 14 of the California Code of Regulations Section
15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical
change in the environment) and Section 15060(c)(3) (the activity is not a project as defined in
Section 15378) because it has no potential for resulting in a physical change of the
environment, directly or indirectly.
SECTION 7. EFFECTIVE DATE
This Ordinance shall be effective upon the thirty-first (31st) day following its final
passage by a majority vote of the Mayor and City Council.
SECTION 8. SEVERABILITY
While it is the intent of the Mayor and City Council to adopt a regulatory system for
personal cultivation of cannabis within the City of San Bernardino, if any provision of this
Ordinance or the application thereof to any person or circumstances is held invalid, such
invalidity shall not affect other provisions or applications of this Ordinance which can be
given effect without the invalid provision or application, and to this end, the provisions of this
Ordinance are severable. The Mayor and City Council declare that they would have adopted
this Ordinance irrespective of the invalidity of any particular portion thereof.
SECTION 9. PUBLICATION
The City Clerk shall certify to the adoption of this Ordinance and shall cause this Ordinance
to published as provided by State law.
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ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, ADDING CHAPTER 8.99 TO THE SAN
BERNARDINO MUNICIPAL CODE ESTABLISHING REGULATIONS FOR THE
PERSONAL CULTIVATION OF CANNABIS WITHIN PRIVATE RESIDENCES
(DEVELOPMENT CODE AMENDMENT NO. 18-02C)
I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor
and City Council of the City of San Bernardino at a _______________________ meeting
thereof, held on the _____ day of ______________, 2018, by the following vote, to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, CMC, City Clerk
The foregoing Ordinance is hereby approved this _____ day of __________________, 2018.
R. Carey Davis, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz, City Attorney
By:____________________
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Consent Calendar
City of San Bernardino
Request for Council Action
Date: March 7, 2018
To: Honorable Mayor and City Council Members
From: Andrea M. Miller, City Manager
By: Jarrod Burguan, Chief of Police
Shauna Gates, Police Lieutenant
Jennifer Kohrell, Police Sergeant
Subject: Issuance of a Purchase Order to Industrial Video & Control for
Solar Powered Public Safety Camera System Trailers
Recommendation
Adopt a Resolution of the Mayor and City Council of the City of San Bernardino,
California, authorizing the Director of Finance to issue a Purchase Order to Industrial
Video & Control for two solar powered public safety camera trailers.
Background
The Department of Homeland Security (DHS) designated the City of San Bernardino as
a high-threat urban area. In 2008, the City of San Bernardino became a member of the
Riverside Area UASI in cooperation with the cities of Riverside and Ontario. The intent
of the UASI program is to enhance regional preparedness and collaboration.
On November 18, 2015, the City of Riverside Office of Emergency Management notified
the City of San Bernardino that the final modifications for the 2015 UASI grant funding
cycle were approved and expenditures against the 2015 grant were authorized. The
2015 UASI grant provided funding in the amount of $100,000 to the Police Department
to purchase a specialized mobile observation safety tower. It also provided funding in
the amount of $60,000 to the Police Department for two solar powered portable Public
Safety Camera System trailers. In July 2016, the Mayor and City Council approved the
issuance of a purchase order for the purchase of a mobile observation safety tower from
FLIR Detection Inc. of Stillwater, Oklahoma. This purchase, once approved, will
complete our grant plan for the 2015 Riverside UASI operational period.
Discussion
Historically, the City has received funding from UASI for both Police and Fire programs.
In 2008, UASI funds were approved for the purchase of the Police Bearcat vehicle and
to conduct regional Active Shooter Training. The 2009 UASI grant provided funding for
the Fire Department’s CERT program, the Police Department’s all-terrain rescue
vehicle, and additional Active Shooter Training. In 2011, the UASI award of $440,000
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was used to install and implement the first stage of the City’s Downtown Camera
Protection Zone installing 11 security cameras throughout downtown San Bernardino.
Our FY2015 Project Proposal for funds was approved by UASI on November 16, 2015.
A portion of the approved project will add regionally deployable and sharable assets to
the San Bernardino Downtown Camera Protection Zone allowing the City of San
Bernardino and partner agencies to use self-sustaining (solar powered) mobile camera
equipment that can be deployed over extended periods of time allowing command
managers to have aerial views from strategic locations. The plan allotted $60,000 for
these two trailers.
The San Bernardino Police Department, originally attempted to locate a vendor for
these trailers through our open competitive Public Safety Camera Enhancement bid (F-
17-09 April 2017). The successful vendor for that project did not have a solution for this
purchase. Through additional research, the Police Department located a vendor in
Sacramento, California that provides a solar powered 30-foot tall, portable camera
trailer on a valid active GSA Schedule. The Police Department moved forward with a
RFCA package in September 2017 intending to purchase this equipment. Training from
the Riverside Area UASI in September 2017 suggested that a GSA purchase was not
acceptable thus the purchase was stopped.
In February 2018, the City Finance Department released an open public competitive bid
(F-18-05) for these trailers. Industrial Video & Control of Greenville, SC was the only
vendor to bid. This Request for Council Action seeks permission to move forward with
the purchase of two IV & C camera trailers as outlined in Industrial Video & Control
February 23, 2018 quote.
Based on the fact that Industrial Video & Control provided the lowest qualifying bid in
response to Bid F-18-05 an open competitive bid process, it is recommended pursuant
to San Bernardino Municipal Code 3.04.010(b)(2), that the Mayor and Common Council
approve an award from bid for the purchase of these specific trailers from Industrial
Video & Control, of Greenville, SC.
Environmental Impact
There are no known National Environmental Policy Act (NEPA) or California
Environmental Quality Act (CEQA) actions that need to be addressed prior to release of
funds for this project to be funded.
Fiscal Impact
Sufficient funding is available in the Adopted FY2017/18 budget. Police grants, UASI:
$68,000.00. This expense is reimbursable through City of Riverside Fire, the
administrator of the 2015 UASI Grant funds.
Conclusion
Adopt Resolution authorizing the Director of Finance to issue a Purchase Order to
Industrial Video & Control in an amount not to exceed $ 59,050.00
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Attachments
Attachment 1 – Resolution, Exhibit A- Quote from Bid F-18-05
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Ward: Citywide
Synopsis of Previous Council Actions:
7/05/2016 Resolution #2016-4429 adopted authorized the purchase of a UASI
funded Mobile Observation Safety Tower from FLIR Systems, of
Stillwater, OK.
3/07/2016 Resolution #2016-37 adopted authorized a Memorandum of
Understanding between the City of Riverside Office of Emergency
Management and the City of San Bernardino for the purpose of
accepting and administering the 2015 Urban Area Security Initiative
(UASI) Grant.
7/18/2011 Resolution # 2011-230 adopted authorizing an MOU with the City of
Riverside Office of Emergency Management to accept and administer
the 2010 UASI Grant
9/20/2010 Resolution #2010-324 adopted authorizing an MOU with the City of
Riverside Office of Emergency Management to accept and administer
the 2009 UASI Grant
4/6/2009 Resolution #2009-75 adopted authorizing an MOU with the City of
Riverside Office of Emergency Management and the obligation and
expenditure of UASI grant funds.
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RESOLUTION NO._______
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AUTHORIZING THE DIRECTOR OF FINANCE TO
ISSUE A PURCHASE ORDER TO INDUSTRIAL VIDEO AND CONTROL FOR
TWO SOLAR POWERED PUBLIC SAFETY CAMERA SYSTEM TRAILERS
WHEREAS, the City of San Bernardino established a Downtown Camera Protection
Zone project to deploy safety cameras in the downtown area in 2011 and has since that time
expanded the project to become a citywide Public Safety Camera Project; and
WHEREAS, the City of San Bernardino participates in the Riverside/San Bernardino
County Urban Area Security Initiative (UASI) Program; and
WHEREAS, Industrial Video & Control was selected as the lowest bidder from
formal bid F-18-05 on February 23, 2018.
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The Director of Finance, or his designee, is hereby authorized to issue
a Purchase Order to Industrial Video and Control in an amount not to exceed $59,050.00 for
equipment outlined in their written quote dated February 23, 2018.
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AUTHORIZING THE ISSUANCE OF A PURCHASE
ORDER TO INDUSTRIAL VIDEO AND CONTROL FOR TWO SOLAR POWERED
PUBLIC SAFETY CAMERA SYSTEM TRAILERS.
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
and City Council of the City of San Bernardino at a ______________________________
meeting thereof, held on the _____ day of ________________, 2018, by the following vote,
to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, CMC, City Clerk
The foregoing Resolution is hereby approved this _____ day of ________________, 2018.
R. Carey Davis, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz, City Attorney
By:
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RFQ F-18-05 2/23/2018 3:00 P.M., PST
ITEMS/CATEGORY Vendors
DESCRIPTION 1 2 3
Industrial Video
& Control
Item #Greenville, Sc
1 Camera Trailer-01
Cost of trailer with all equipment 25,480.00$
shipping costs to police department 2,000.00$
california sales tax 2,038.40$
Total Cost: Sub- Camera Trailer-01 29,518.40$
2 Camera Trailer-02
Cost of trailer with all equipment 25,480.00$
shipping costs to police department 2,000.00$
california sales tax 2,038.40$
Total Cost: Sub- Camera Trailer-02 29,518.40$
Local Vendor ? N
1% local vendor preference -$
GRAND TOTAL 59,036.80$
Announced by Vanesssa Slouka Recorded by Art Torres
BID SUMMARY SHEET
Public Safety Camera Trailers
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03/09/10 drm
DEPARTMENT
AWARD
CHECKLIST
BID #_RFQ F-18-05 Description: Public Safety Camera Trailers
Vendor Debarment Verification (Grants only) (1)
Local Vendor Verification - within SB City limits (1)
Local Vendor Preference (LVP) given? (1)(Companies within our City limits; for comparison
purposes only: 1% credit for goods or materials, or 5% for services* must be reflected on bid/quote sheet)
City of San Bernardino Business License Verification(2)
W-9 Form (2)
Faithful Performance/Bid Bond Required? (1) Yes No
Contractor’s License (where applicable)(1)
$1,000,000 Insurance Policy (1) Comprehensive, public, general & auto liability
Worker’s Compensation Insurance (1)
Vendor / Consultant Agreement Required? (2) Yes No
1) Must be obtained prior to Council award
2) Must be obtained prior to issuance of a purchase order, commencement of service, or receipt of goods,
supplies, materials, and payment of invoices.
This checklist may not be reflective of all documents necessary for submittal.
All insurance certificates must be approved by Risk Management
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M E M O R A N D U M
DATE: February 26, 2018
TO: Sue Stevens, Police Department
FROM: Vanessa Slouka, Accounting Assistant
SUBJECT: RFQ F-18-05 Public Safety Camera Trailers
Attached, please find the proposed schedule and final draft for the subject
RFQ. Please review these documents as a whole, and forward your
signature, concurrence/comments no later than 12:00 PM, Monday
February 12, 2018. Please email or call me with any questions at ext. 5346.
________________________________________________________________
1. Issue RFQ February 12, 2018
2. Advertise in Sun February 15, 2018
3. Pre-Proposal Mtg & Job Walk N/A
4. Written Questions from Vendors due February 20, 2018
5. Responses Due from City February 21, 2018
6. Proposals Due February 23, 2018 @ 3:00 PM, PST
7. RFQ Evaluation and Negotiations To Be Determined
8. Vendor Selection To Be Determined
9. Request for Council Action Due To Be Determined
10. Council Approval To Be Determined
11. Vendor Award To Be Determined
---------------------------------------------------------------------------------------------------------
I concur with the RFQ as written / with the attached comments
(circle one).
X
Signature Date Signed
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February 12, 2018
SUBJECT: NOTICE INVITING BIDS (RFQ) F-18-05
The City of San Bernardino (City) invites bids from qualified vendors for:
Public Safety Camera Trailers
Parties interested in obtaining a copy of this RFQ F-18-05 may do so by accessing the
City of San Bernardino Web Page at www.sbcity.org > How Do I > Request> for Bids
> City Finance Department-Purchasing beginning February 12, 2018 or by faxing
their request to (909) 384-5043, attention Vanessa Slouka, Accounting Assistant.
Please include the following information in your request: name and address of firm;
name, telephone and facsimile number of contact person; specify RFQ F-18-05.
Copies of the RFQ May also be obtained by calling Vanessa Slouka at (909) 384-5346
or in person at Vanir Tower, 290 N. "D" St., 3rd floor, Purchasing Division, San
Bernardino, CA 92401.
From the issuance date of this Request for Proposal until a Vendor is selected and the
selection is announced, Proposers are not permitted to communicate with any City staff
or officials regarding this procurement, other than during interviews, demonstrations,
and/or site visits, except at the direction of Vanessa Slouka, Accounting Assistant the
designated representative of the City of San Bernardino. Contact with anyone not
designated will result in elimination from the bid process.
Closing Date: Bids must be submitted before 3:00 PM, PST, February 23, 2018 at
290 North “D” Street, 3rd Floor, San Bernardino CA 92401.
Issuance of this RFQ and/or receipt of bids do not commit City to award a contract.
Sincerely,
Vanessa Slouka
Accounting Assistant
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SECTION I.
INSTRUCTIONS TO BIDDERS
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City of San Bernardino, Finance Department
Purchasing Division
Bid Documents to Be Returned by Bidder
RFQ F-18-05
PUBLIC SAFETY CAMERA TRAILERS
Copy of Contractor License (if applicable)III Bid Content and Forms, General Specification #35,
Instructions to Offeror(s) / Bidders
Bidder Experience, Competency, Qualification and Profile (Vendor Document) III
Proposal / Bid Content Forms
Non-Collusion Declaration (City Form) Instructions to Offeror(s) / Bidders
Listing of Proposed Subcontractor (City Form) III Proposal / Bid Content and Forms
Cost / Price Form (City Form) Instructions to Bidders, III Bid Content and Forms
Authorized Signatures Instructions to Bidders
Bidder Identification III Bid Content and Forms
Addendum Received (City Form) III Bid Content and Forms
120 Day Bid Validity Statement III Bid Content and Forms
Authorized Signatures (City Form) III Bid Content and Forms
References III Bid Content and Forms
Proper Identification and Submittal of Proposal/Bid Package, and Price Form
Instructions to Bidders
Proof of Insurance
Copy of Manufacturer’s and/or dealer warranty and/or guarantee (if applicable) General
Specifications #10
Copy of Contractor License or other appropriate Licenses where applicable General
Specifications #35
Bidders are requested to submit this checklist completed with all bid documents.
This list may not be reflective of all documents necessary for submittal.
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I. INSTRUCTIONS TO BIDDERS
A. Mandatory Pre-Bid Conference/Job Walk
N/A
B. Examination of Bid Documents
1. By submitting a bid, the Bidder represents that it has thoroughly examined
and become familiar with the items required under this RFQ and that it is
capable of quality performance to achieve the City's objectives.
2. The City reserves the right to remove from its mailing list for future RFQs,
for an undetermined period of time, the name of any Bidder for failure to
accept a contract, failure to respond to two (2) consecutive RFQs and/or
unsatisfactory performance. Please note that a “No Bid” is considered a
response.
C. Addenda
Any City changes to the requirements will be made by written addendum to this
RFQ. Any written addenda issued pertaining to this RFQ shall be incorporated
into the terms and conditions of any resulting Purchase Order. The City will not
be bound to any modifications to or deviations from the requirements set forth in
this RFQ as the result of oral instruction.
2. Submitting Requests
a. All questions, clarifications or comments shall be put in writing and
must be received by the City no later than 3:00 PM, February 20,
2018 and be addressed as follows:
City of San Bernardino
Vanir Tower
290 North "D" Street
3rd floor, Attn: Vanessa Slouka
San Bernardino, CA 92401
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b. The exterior envelope or email Subject line of all requests for
clarifications, questions and comments must be clearly labeled,
“Not an Offer.” The City is not responsible for failure to respond
to a request that has not been labeled as such.
The City will also accept questions sent by facsimile machines or
email, however, all faxed or emailed questions must be received by
the City no later than 3:00 PM, PST, February 20, 2018. Send
facsimile transmissions to (909) 384-5043, attention Vanessa
Slouka, and emails to: slouka_va@sbcity.org.
c. Inquiries received after 3:00 PM February 20, 2018 will not be
accepted.
3. City Responses
Responses from the City will be communicated in writi ng to all recipients
of this RFQ, by a posting to our website, www.sbcity.org by the close of
business February 21, 2018.
For automatic electronic notifications, please visit our Homepage and
register for SB Connect. If you are not registered for SB Connect, you
may view or download any Addenda at www.sbcity.org > How Do I >
Request> for Bids > City Finance Department-Purchasing.
D. Submission of Bids
1. Date and Time
All bids are to be submitted to the City of San Bernardino, Attention:
Vanessa Slouka, Accounting Assistant, BEFORE 3:00 PM, PST,
February 23, 2018, bids received at or after 3:00 PM will be rejected by
the City as non-responsive.
2. Address
Bids shall be addressed as follows:
City of San Bernardino
Vanir Tower
Finance Department
290 N. "D" Street, 3rd Floor
San Bernardino, CA 92401
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Bids may be delivered in person to the 1st floor, Information Center, at the
above address.
3. Identification of Bids
Bidder shall submit a SEALED bid package consisting of:
a) one (1) signed original of Quote and Price Form
b) two (2) copies of each
The bid package shall be addressed as shown above, bearing the
Bidder’s name and address and clearly marked as follows:
RFQ F-18-05:
“Public Safety Camera Trailers”
4. Acceptance of Bids
a. The City reserves the right to accept or reject any and all bids, or
any item or part thereof, or to waive any informalities or
irregularities in bids.
b. The City reserves the right to withdraw this RFQ at any time without
prior notice and the City makes no representations that a ny
contract will be awarded to any Bidder responding to this RFQ.
c. The City reserves the right to postpone bid opening for its own
convenience.
E. Pre-Contractual Expenses
Pre-contractual expenses are defined as expenses incurred by the Bidder in:
1. preparing its bid in response to this RFQ;
2. submitting that bid to City;
3. negotiating with City any matter related to this bid; or
4. any other expenses incurred by the Bidder prior to date of award, if any of
the Agreement.
The City shall not, in any event, be liable for any pre-contractual expenses
incurred by Bidder in the preparation of its bid. Bidder shall not include any such
expenses as part of its bid.
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F. Contract Award
Issuance of this RFQ and receipt of bids does not commit the Cit y to award a
Purchase Order. The City reserves the right to postpone bid opening for its own
convenience, to accept or reject any or all bids received in response to this RFQ,
and to negotiate with other than the selected Bidder(s) should negotiations with
the selected Bidder(s) be terminated. The City also reserves the right to
apportion the award among two or more Bidders.
G. Acceptance of Order
The successful Bidder will be required to accept a Purchase Order in accordance
with and including as a part thereof the published Notice Inviting Bids, and the
RFQ documents including all requirements, conditions and specifications
contained therein, with no exceptions other than those specifically listed in the
written purchase order.
H. Business License
The City’s Business Ordinance requires that a Business doing business
with the City, obtain and maintain a valid City Business Registration Certificate
during the terms of the Agreement. Bidder agrees to obtain such Certificate prior
to undertaking any work under this Agreement.
I. Local Vendor Preference
The City of San Bernardino gives any formal or informal bid submitted by a local
bidder a one percent (1%) credit for goods and materials, where labor and/or
installation is incidental; and a five percent (5%) credit on Contractual services,
for comparison purposes with other bidders, as authorized in the San Bernardino
Municipal Code Section 3.04.125, and Executive Order 2003 -1, respectively.
For the purposes of this section, “local bidders” shall be bidders for which the point
of sale of the goods, materials or services shall be within the limits of the City of
San Bernardino.
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SECTION II.
TECHNICAL SPECIFICATIONS
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City of San Bernardino
TECHNICAL SPECIFICATIONS
Public Safety Camera Trailers
NOTICE : “SPECIAL INSTRUCTIONS TO THE BIDDER”
Services:
Bidder shall complete right hand column indicating brief reasoning for exceptions to
requirements when not acceptable. State the word “Acceptable” in the right hand column with
the initials of the respondent if the requirements are agreeable as set forth on left hand column.
Equipment:
Bidder shall complete right hand column indicating specific size and/or make and model of all
components when not exactly as specified. State the words “As Specified” if item is exactly as
set forth in the left hand column.
Summary of Project:
The San Bernardino Police Department operates a small digital safety camera system within the
confines of the City of San Bernardino. This system provides infrastructure protection and street
level safety monitoring services. Cameras provide observation of City owned structures, parks,
and public roadways (usually at intersections).
The existing system uses digital IP based network cameras. An existing server is in place to
store video data and serve video files to users. This existing system uses Genetec OmniCast
Camera software and licenses. Workstations monitor cameras using Genetec’s Security Center
software.
This project seeks to add two solar powered, portable, light-weight camera trailers to the system.
The two trailer units must be identical units. They will be used out in the community, to include
other municipalities in our region, to provide remote camera video (no sound) access to the
existing Genetec camera system. Camera video data will be sent back to the Police Department
by a cellular modem. This project calls for the vendor to provide a Sierra Wireless cellular
FX/GL series modem with each trailer. A cellular SIM card for each trailer will be provided by
the Police Department upon delivery. It is expected that the camera will connect to this modem
with a standard Ethernet cable.
The trailers must be lightweight, easy to deploy, and capable of sustained operation with power
provided by the included solar panels. Each trailer must have one Pan-Tilt-Zoom camera that
can be controlled by the Genetec Security Center software suite.
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Each trailer must have the ability to retain video data at the local end of the connection (at the
trailer). Retention of video data can be done by collecting data on a 512GB SDXC Smart Media
Card or by providing a local Network Video Recorder (NVR) onboard with at least the same
amount of storage. Typically, the Police Department views a reduced size image at the Dispatch
Center and stores video at the camera end. As needed camera video is downloaded to the Police
Department for archive and research. In the case of these camera trailers, the media card may be
removed and uploaded manually at the Police Department.
This project has short completion deadlines. There are no extensions possible. The trailers must
be delivered to the Police Department by Thursday, April 12, 2018. Invoicing materials for final
payment must be delivered with the equipment.
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COMMON PROJECT-WIDE SPECIFICATIONS
FAILURE TO COMPLETE RIGHT HAND COLUMN WILL INVALIDATE BID
Issue or Specification Bidder’s Acknowledgement
Issue 01
Materials and Supplies – Turnkey Delivery
For each trailer in this technical bid specification
package, the bidder is expected to deliver the trailer
assembled and ready for use (The City will
coordinate with the successful vendor to ship the
City provided cellular SIM card to the vendor or
arrange to make it available to the vendor upon
delivery/arrival at the City’s Police Department
headquarters).
Issue 02
California Street Legal Trailer Configuration
and Vehicle Registration
For each trailer in this technical bid specification
package, the bidder is expected to provide a fully
street legal trailer with lighting and other necessary
items to meet the requirements of day and night
operations on public roadways as provided by the
California Vehicle Code. The City of San
Bernardino will handle all Department of Motor
Vehicles registration tasks for the two trailers.
(California requires fenders)
Issue 03
Maximum 9900 Pound GVWR
For each trailer in this technical bid specification
package, the bidder is expected to provide a trailer
that does not exceed a 9900 pound (US) Gross
Vehicle Weight Rating (GVWR). Light weight ease
of operation is an essential characteristic of the
successful product for this bid.
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Issue 04
One Person Deployable – 15 Minutes
For each trailer in this technical bid specification
package, the bidder must verify that the solution can
be successfully deployed by one person, without the
assistance of others, within 15 minutes.
Issue 05
Lockable – Theft Prevention
For each trailer in this technical bid specification
package, the bidder must verify that the solution can
be locked at a deployment site to prevent theft of the
trailer. Additionally, each cabinet, storage bay
and/or compartment must have its own lock. All
cabinet locks must use the same key. At least two
keys shall be provided for each trailer.
Issue 06
Stability and Safety
For each trailer in this technical bid specification
package, the bidder must verify that the solution can
be successfully stabilized with at least three hand-
operated leveling jacks. These jacks must provide
enough stabilization to allow the camera to be
deployed to its maximum height.
Issue 07
30 Foot Galvanized, Telescoping, Rotating Mast
For each trailer in this technical bid specification
package, the bidder must verify that the solution
includes a galvanized (to protect from rust),
telescoping mast that can be manually rotated 360
degrees. The mast should include a manual hand
operated lift mechanism that one person can operate
without the assistance of others. There must be a
method of securement to allow the mast to be
secured in the down-and-stored position for safe and
legal transport.
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Issue 08
Tilt-and-Rotate Solar Panels
For each trailer in this technical bid specification
package, the bidder must verify that the solution
includes solar panels and can tilt and rotate to
maximize solar recharging. Remote sustainability
while out on deployment is critical to this project.
Vendors should maximize solar power production in
their proposals.
Issue 09
Axis P5624-E MKII PTZ Camera
The San Bernardino Police Department’s existing
remote camera system has had success with Axis
pan-tilt-zoom cameras. For each trailer in this
technical bid specification package, the bidder must
verify that the solution includes an Axis camera at
least matching the specifications for the P5624-E
MKII PTZ camera.
Specifically, the camera must be rated for rugged
outdoor climate use (IP66). It must allow
continuous 360 degree pan.
The camera must support a SanDisk 512GB SDXC
storage card.
Issue 10
4-Channel 1TB NVR
As an option, the trailer may use a 4-channel 512B to
1TB NVR to record camera video data if that is a
design feature in the existing product.
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Issue 11
Cellular Modem
For each trailer in this technical bid specification
package, the bidder must verify that the solution
includes a cellular modem to transmit video data
from the camera or from the NVR to the Police
Department’s Genetec camera system.
The Police Department has operated a variety of
Sierra Wireless cellular modems similar to the Sierra
Wireless GL series with great success. A cellular
SIM card for each trailer will be provided by the
City.
Our Crime Camera system requires static IP
addresses. In order to reserve new IP addresses, your
company will need to convert to the Persistent Prefix
IPv6 requirements and implement new Verizon-
certified IPv6 devices. Persistent Prefix IPv6 has
128-bit addressing scheme, which aligns to current
international agreements and standards. Persistent
Prefix IPv6 will provide the device with an IP
address unique to that device that will remain with
that device until the address is relinquished by the
user (i.e., when the user moves the device off the
Verizon Wireless network). IPv4-only devices are
not compatible with Persistent Prefix IPv6 addresses.
Issue 12
Warranty and Onsite Service
Identify all warranty periods for equipment
associated with this proposal. Identify the period of
onsite warranty service provided in your response.
Item 13
Product Fact Sheets and Photographs
Furnish product fact sheets for each camera, power
system and trailer that vendor will be providing in
this response. The proposal must include
photographs showing the entire trailer that is
specifically proposed in a stored (ready for travel)
and deployed (set up of use) position/configuration.
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Item 14
Product Power – Period of Operation - Fact Sheet
Furnish a product fact sheet or statement that
explains the power consumption for the entire
solution as proposed. Provide a product fact sheet or
statement that explains the capacity of onboard
batteries provided with each trailer. Provide a
product fact sheet or statement that explains the
amount of power created by the solar panels
included with each trailer.
Show through these fact sheets/statements how long
the trailer can operate at a remote location on its
own.
Issue 15
Cost Summary Sheets
Responses are considered non-compliant and
incomplete if vendor fails to complete the enclosed
Proposal Cost Summary Sheet with their response.
This project has a cost cap of $30,000.00 per trailer.
The entire cost of the equipment, all delivery fees,
state and local taxes, along with all other associated
costs must remain within the per-trailer cost ceiling.
Issue 16
Statement of Work and Timeline
Furnish a proposed Statement of Work with the
response that outlines the work to be done as part of
this project and an estimated timeline for task work
in the Statement of Work.
It is expected that this project will be completed,
with the product on-site and functional by April 12,
2018.
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Issue 17
Local Delivery
The San Bernardino Police Department’s
headquarters is located at 710 North D Street, San
Bernardino, CA. 92401. This facility does not have
a commercial trailer height loading dock to receive
equipment. If shipping will require a trailer height
loading dock, vendors should calculate shipping
costs to San Bernardino International Airport (Police
Security Detachment) 295 North Leland Norton
Drive, San Bernardino, CA. 92407.
Issue 18
Milestone Based Payments
Funding for this camera system project includes
federal grant funds. As such, the project is subject to
federal audit. The successful vendor agrees to
The Police Department will approve invoices for
payment after the successful delivery and activation
of both trailers.
The Police Department expects the successful
vendor will deliver a final invoice upon delivery. It
will be acceptable for the vendor to deliver the final
invoice in advance of final delivery; however, no
action will be taken to complete payment until after
successful delivery and activation.
Issue 19
California Sales Tax
The City of San Bernardino is not exempt from
California Sales Tax. The California Sales Tax rate
for the City of San Bernardino is 8.00%.
California Sales Tax must be included in the final
price in the proposal.
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Issue 20
Federal GSA or GSA-Advantage Contracts
If this product is offered on a Federal GSA schedule
or a GSA-Advantage schedule, please indicate so
and include the contract number. Please confirm
that pricing is equal to, or discounted from that
contract.
Issue 21
No Mandatory Bidder’s Conference
There will not be a mandatory bidder’s conference
for this project. Pre-bid questions will be managed
by the City of San Bernardino’s Finance Department.
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SECTION III.
BID CONTENT AND FORMS
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A. BID FORMAT AND CONTENT
1. Presentation
Bids should not include any unnecessarily elaborate or promotional
material. Information should be presented in the order in which it is
requested. Lengthy narrative is discouraged, and presentations should be
brief and concise. Bids shall contain the following:
a. identification of Bidder, including name, address and telephone;
b. proposed working relationship between Bidder and subcontractors,
if applicable;
c. acknowledgment of receipt of all RFQ addenda, if any;
d. name, title, address and telephone number of contact person
during period of bid evaluation;
e. a statement to the effect that the bid shall remain valid for a period
of not less than 120 days from the date of submittal; and
f. signature of a person authorized to bind Bidder to the terms of the
bid.
Bidder may also propose enhancement or procedural or technical
innovations to the Technical Specifications which do not materially
deviate from the objectives or required content of the project.
2. Exceptions/Deviations
State any exceptions to or deviations from the requirements of this RFQ,
stating “technical” exceptions on the Technical Specifications form, and
“contractual” exceptions on a separate sheet of paper. Where Bidder
wishes to propose alternative approaches to meeting the City’s technical
or contractual requirements, these should be thoroughly explained.
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3. Qualifications, Related Experience and References of Bidder
This section of the bid should establish the ability of Bidder to satisfactorily
perform the required work by reasons of experience in performing work of
a similar nature; demonstrated competence in the services to be provided;
strength and stability of the firm; staffing capability; work load; record of
meeting schedules on similar projects; and supportive client reference.
Bidder shall:
a. provide a brief profile of the firm, including the types of services
offered; the year founded; form of the organization (corporation,
partnership, sole proprietorship); number, size and location of
offices; number of employees;
b. describe the firm's experience in performing work of a similar
nature to that solicited in this RFQ:
c. provide, as a minimum, three (3) references from current
customers of a similar size as the City as related experience;
reference shall furnish the name, title, address and telephone
number of the person(s) a the client organization who is most
knowledgeable about the work performed.
4. Appendices
Information considered by Bidder to be pertinent to this RFQ and which
has not been specifically solicited in any of the aforementioned sections
may be placed in a separate appendix section. Bidders are cautioned,
however, that this does not constitute an invitation to submit large
amounts of extraneous materials; appendices should be relevant and
brief.
B. LICENSING AND CERTIFICATION REQUIREMENTS
By submitting a bid, bidder warrants that any and all licenses and/or certifications
required by law, statute, code or ordinance in performing under the scope and
specifications of this RFQ are currently held by bidder, and are valid and in full
force and effect. Copies or legitimate proof of such licensure and/or certification
shall be included in bidder's response. Bids lacking copies and/or proof of
said licenses and/or certifications may be deemed non-responsive and may
be rejected.
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C. COST AND PRICE FORMS
Bidder shall complete the Cost/Price Form in its entirety including: 1) all items
listed and total price; 2) all additional costs associated with performance of
specifications; and 3) Bidder’s identification information including a binding
signature.
Bidder shall state cash discounts offered. Unless discount payment terms are
offered, payment terms shall be “Net 30 Days”. Payment due dates, including
discount period, will be computed from date of City acceptance of the required
services or of a correct and complete invoice, whichever is later, to the date
City’s check is mailed. Any discounts taken will be taken on full amount of
invoice, unless other charges are itemized and discount thereon is disallowed.
Freight terms shall be F.O.B. Destination, Full Freight Allowed, unless otherwise
specified on price form.
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PRICE FORM
REQUEST FOR RFQ: RFQ F-18-05
DESCRIPTION OF RFQ: Public Safety Camera Trailers
BUSINESS NAME/ADDRESS:
NAME
AUTHORIZED REPRESENTATIVE
TELEPHONE: _____________________________________
EMAIL: _____________________________________
FAX: _____________________________________
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Price list
(continued)
Project Overall Cost Summary
Citywide Crime Camera Trailer Project
FAILURE TO COMPLETE ALL COST SHEETS WILL INVALIDATE BID
This overall cost summary contains totals from the two trailer cost sheets. Bidders may provide
cost documents inside their proposals; however, these cost summary sheets must be completed
and will be used by the City’s grading committee.
Camera Trailer-01
Cost of Trailer with All Equipment ____________________________
Shipping Costs to Police Department ____________________________
California Sales Tax ____________________________
Total Cost: Camera Trailer-01 ____________________________
Camera Trailer-02
Cost of Trailer with All Equipment ____________________________
Shipping Costs to Police Department ____________________________
California Sales Tax ____________________________
Total Cost: Camera Trailer-02 ____________________________
Total Cost: ____________________________
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PRICE LIST (continued)
Are there any other additional or incidental costs, which will be required by your firm in
order to meet the requirements of the Technical Specifications? Yes / No .
(circle one). If you answered “Yes”, please provide detail of said additi onal costs:
Please indicate any elements of the Technical Specifications that cannot be met by your
firm.
___________
___________
___________
Have you included in your bid all informational items and forms as requested? Yes /
No (circle one). If you answered “No”, please explain:
_________________
_________________
This offer shall remain firm for 120 days from RFQ close date.
Terms and conditions as set forth in this RFQ apply to this bid.
Cash discount allowable % days; unless otherwise stated, payment terms
are: Net thirty (30) days.
In signing this bid, Bidder warrants that all certifications and documents requested
herein are attached and properly completed and signed.
From time to time, the City may issue one or more addenda to this RFQ. Below,
please indicate all Addenda to this RFQ received by your firm , and the date said
Addenda was/were received.
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PRICE LIST (continued)
Verification of Addenda Received
Addenda No: __________ Received on: _________
Addenda No: __________ Received on: _________
Addenda No: __________ Received on: _________
This bid has been reviewed and found to be correct and final. The undersigned
is authorized to providing pricing:
AUTHORIZED SIGNATURE: ________________________________
PRINT SIGNER’S NAME AND TITLE: _______________________________
_______________________________
DATE SIGNED: ________________________________
COMPANY NAME & ADDRESS: ________________________________
________________________________
PHONE: FAX:
EMAIL:_______________ Web Address:__________________
IF SUBMITTING A "NO BID", PLEASE STATE REASON(S) BELOW:
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SUBCONTRACTOR’S LIST
As required by California State Law, the General Contractor bidding will
hereinafter state the subcontractor who will be the subcontractor on the job for
each particular trade or subdivision of the work in an amount in excess of one -
half of one percent of the General Contractor’s total bid and will state the firm
name and principal location of the mill, shop, or office of each. If a General
Contractor fails to specify a subcontractor, or if he specifies more than one
subcontractor for the same portion of work to be performed under the contract in
excess of one-half of one percent, he agrees that he is fully qualified to perform
that portion himself and that he shall perform that portion himself.
DIVISION OF
WORK OR
TRADE
NAME OF FIRM OR
CONTRACTOR
LOCATION
CITY
______________________ ________________________
Print Name Signature of Bidder
Company Name: __________________________________________
Address: __________________________________________
REJECTION OF BIDS
The undersigned agrees that the City of San Bernardino reserves the right to reject any
or all bids, and reserves the right to waive informalities in a bid or bids not affected by
law, if to do seems to best serve the public interest.
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NON - COLLUSION DECLARATION
TO: THE COMMON COUNCIL, CITY OF SAN BERNARDINO
In accordance with Title 23, United States Code, Section 112, the undersigned
hereby states, under penalty of perjury:
That he/she has not, either directly or indirectly, entered into any agreement,
participated in any collusion, or otherwise taken action in restraint of free
competitive bidding in connection with RFQ F-18-05.
Business Name____________________________________
Business Address__________________________________
Signature of bidder X_______________________________
______________________________
Place of Residence
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SECTION IV.
GENERAL SPECIFICATIONS
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IV. GENERAL SPECIFICATIONS
1. Each bid shall be in accordance with Request for Quotes (RFQ) Number F-18-05.
All specifications are minimum. Bidders are expected to meet or exceed these
specifications as written. Bidder shall attach to their bid a complete detailed
itemization and explanation for each and every deviation or variation from the RFQ
specifications and requirements. Conditional bids, or those that take exception to
the RFQ specifications and requirements, may be considered non-responsive and
may be rejected.
2. The City reserves the right to accept or reject any and all bids and to award a
contract to the bidder whom best meets the City's requirements. This may include
waiver of minor irregularities or discrepancies, or nonconformity to specifications in
appropriate circumstances. Purchase shall be on a best buy basis after due
consideration of all relevant factors, including but not limited to, workmanship,
accessibility of parts and service, known evidence of manufacturer’s responsibility
and record, durability and known operational record of product and suitability as well
as conformity to City needs and requirements. In all cases the best interest of the
City shall prevail in all contract awards.
3. The City of San Bernardino reserves the right to purchase more or less than the
quantities specified at unit prices bid.
4. Bids shall be firm offers, subject to acce ptance or rejection within 120 days of the
opening thereof.
5. Regular dealer. No bidder shall be acceptable who is not a reputable manufacturer
or dealer of such items as submitted for bid consideration.
6. All materials, workmanship and finish entering into the construction of the equipment
must be of the best of these respective kinds and must conform to the character of
the equipment and the service for which it is intended to be used and shall be
produced by use of the current manufacturing processes. “Secon ds”, factory rejects,
and substandard goods are not acceptable.
7. Each bidder shall submit with their bid a copy of the proposed product
specifications, complete detailed drawings, and other descriptive matter in sufficient
detail to clearly describe the equipment, materials and parts offered.
8. Manufacturer and/or Contractor shall defend any and all suits and assume all liability
for any and all claims made against the City of San Bernardino or any of its officials
or agents for the use of any patented process, device or article forming a part of
equipment or any item furnished under the contract.
9. Each bidder must state in their bid the guaranteed delivery date of product and/or
services in number of calendar days from the date of contract execution by the City
of San Bernardino, time is of the essence relative to this contract. Contractor shall
prosecute the work continuously and diligently and shall deliver the items at the
earliest possible date following the award of the contract.
10. Each bidder shall list in their bid all factory, manufacturer’s and/or dealer’s warranty
and/or guarantee coverage and shall submit such written documents evidencing the
same attached to the bid.
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11. Successful bidder(s) (Contractor) shall furnish and deliver to the City complete
equipment as bid and awarded, ready for installation and fully equipped as detailed
in these specifications.
12. Price shall be quoted F.O.B. San Bernardino (all transportation charges shall be
fully prepaid), and shall include all discounts. Bid shall include Calif ornia sales tax,
where applicable, (effective October 1, 2017) computed at the rate of 8.0%, (this
will normally be shown as a separate line item on the price form).
13. City shall make payment within thirty (30) days after the complete delivery and
acceptance of the specified items by the City of San Bernardino and receipt of the
Contractor's priced invoice.
14. All “standard equipment” is included in any bid. Bidders furnishing bids under these
specifications shall supply all items advertised as “standard” equipm ent even if such
items are not stipulated in the specifications, unless otherwise clearly accepted in
the bid.
15. The items which the bidder proposes to furnish the City must comply in all respects
with the appropriate safety regulations of all regulatory com missions of the Federal
Government and the State of California, whether such safety features and/or items
have been specifically outlined in these specifications or not.
16. Contractor delivering equipment pursuant to these RFQ specifications shall
guarantee that equipment meets specifications as set forth herein. If it is found that
equipment delivered does not meet requirements of these specifications the
Contractor shall be required to correct the same at their own expense.
17. By submitting a bid, each bidder agrees that in the event complete delivery is not
made within the time or times set forth pursuant to this specification, damage will be
sustained by the City, and that it is, and will be impractical and extremely difficult to,
ascertain the actual damage which the City will sustain in the event of and by reason
of such delay.
18. In case the delivery of the items under this contract is delayed due to strikes,
injunctions, government controls, or by reason of any cause or circumstance beyond
the control of the Contractor, the time for delivery may be extended (in the City’s
sole discretion) by a number of days to be determined in each instance by mutual
written agreement between the Contractor and the Purchasing Manager of the City
of San Bernardino. The City shall not unreasonably refuse such extension.
19. Contract. Each bid shall be submitted and received with the understanding that
acceptance by the City of San Bernardino of bid in response to this solicitation shall
constitute a contract between the Contractor a nd the City. This shall bind the
Contractor to furnish and deliver at the price bid and in complete accordance with all
provisions of RFQ No. F-18-05. In most cases the basis of award will be the City’s
standard purchase order that may or may not incorporate this solicitation by
reference.
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20. Prohibited interest. No member, officer, or employee of the City or of any agency of
the City during his tenure or for one year thereafter shall have any interest, direct or
indirect in this contract or the proceeds thereof. Furthermore, the parties hereto
covenant and agree that to their knowledge no board member, officer or employee
of the City has any interest, whether contractual, non-contractual, financial or
otherwise, in this transaction, or in the business of the contracting party other than
the City, and that if any such interest comes to the knowledge of either party at any
time, a full and complete disclosure of all such information will be made in writing to
the other party or parties, even if such interest would not be considered a conflict of
interest under Article 4(commencing with Section 1090) or Article 4.6 (commencing
with Section 1120) of Division 4 of Title I of the Government Code of the State of
California.
21. One Document. These specifications, the notice inviting bids, RFQ F-18-05, the
Contractor’s bid, any written agreement executed by the parties, the purchase order
and all documents referred to in the complete specifications and purchase order,
and all written modifications of said documents s hall be construed together as one
document. Anything called for in any one of said documents shall be deemed to be
required equally as if called for in all. Anything necessary to complete the work
properly shall be performed by the contractor, whether spe cifically set out in the
contract or not. All sections of the specifications shall be read as constituting a
whole and not as an aggregation of individual parts, and whatever is specified in one
section shall be construed as applying to all sections.
22. The City of San Bernardino reserves the right to accept or reject any and all bids.
23. Prompt payment. Each bidder may stipulate in their bid a percentage prompt
payment discount to be taken by the City in the event the City makes payment to the
Contractor within ten (10) working days of receipt of material and approval of
invoice. For the purpose of this provision, payment is deemed to be made on the
date of mailing of the City check. NOTE: prompt payment discounts will only be
used during bid evaluation in the case of ties.
24. Inquiries. Direct all inquiries to Vanessa Slouka at 909-384-5346. Technical
questions may be sent via fax to 909-384-5043. The answers to material questions
will be provided to all potential bidders.
25. Bid/Price forms. No bid will be acceptable unless prices are submitted on the
pricing forms furnished herein, and all required forms are completed and included
with bid. Deliver all bids, SIGNED and SEALED, to the Purchasing Di vision, Finance
Department at 290 North “D” Street, 3rd Floor, Vanir Tower, San Bernardino,
California 92401. CLEARLY MARK THE RFQ SPECIFICATION TITLE: PUBLIC
SAFETY CAMERA TRAILERS and Number F-18-05 ON THE OUTSIDE OF THE
ENVELOPE.
26. Time. All bids must be received in the Purchasing Division no later than 3:00 PM,
PST, February 23, 2018, where at such time and said place bids will be publicly
opened, examined and declared. Any bid may be withdrawn by bidder prior to the
above scheduled time for the opening of bids. Any bid received after that time and
date specified shall NOT be considered.
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27. The City of San Bernardino reserves the right at its own discretion to award
separate contracts for each category, or to award multiple contracts, or to award one
contract for furnishing and delivering of all equipment and/or services in all
categories.
28. Equipment. In the purchase of equipment, Contractor shall be required to furnish
one (1) OPERATORS MANUAL and one (1) PARTS MANUAL for all equipment bid.
29. In submitting a bid to a public purchasing body, the bidder offers and agrees that if
the bid is accepted, it will assign to the purchasing body all rights, title, and interest
in and to all causes of action it may have under Section 4 of the Clayton Act (U.S.C.
Sec 15) or under the Cartwright Act (Chapter 2, commencing with Section 1670 0 of
Part 2 of Division 7 of the Business and Professions Code), arising from purchases
of goods, materials, or services by the bidder for sale to the purchasing body
pursuant to the bid. Such assignment shall be made and become effective at the
time the purchasing body tenders final payment to the bidder.
30. Contractor shall indemnify, defend and hold City, its officers, employees and agents
harmless from any claim, demand, liability, suit, judgment or expense (including,
without limitation, reasonable costs of defense) arising out of or related to
Contractor’s performance of this agreement, except that such duty to indemnify,
defend and hold harmless shall not apply where injury to person or property is
caused by City’s willful misconduct or sole negligence. The costs, salary and
expenses of the City Attorney and members of his office in enforcing this Agreement
on behalf of the City shall be considered as "attorney's fees" for the purposes of this
paragraph.
31. While not restricting or limiting the foregoing, during the term of this Agreement,
Contractor shall maintain in effect policies of comprehensive public, general, and
automobile liability insurance, in the amount of $1,000,000 combined single limit,
and statutory worker’s compensation coverage, and shall file copies of said policies
with the City’s Risk Manager prior to undertaking any work under this Agreement.
The policies shall name the City as an additional insured and shall provide for ten
(10) day notification to the City if said policies are terminat ed or materially altered.
32. FAITHFUL PERFORMANCE BOND/BID BOND. The Contractor will be required to
furnish a cashier’s check, certified check or faithful performance bond / bid bond
made payable to the City of San Bernardino in an amount equal to 100% / 10% of
the bid price to insure the contractor’s faithful performance of this contract. Said
surety shall be subject to the approval of the City of San Bernardino, bonds shall be
in accordance with Ordinance No. 821, Section 2400, and the corporation issuing
said bond shall have a rating in Best’s most recent insurance guide of “A” or better.
33. Written contract documents, duly authorized and signed by the appropriate
authority, constitute the complete and entire agreement(s) that may result from the
RFQ.
34. City may, at its discretion, exercise option year renewals for up to three (3) years, in
one-year increments.
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35. By submitting a bid, bidder warrants that any and all licenses and/or certifications
required by law, statute, code or ordinance in performing under th e scope and
specifications of this RFQ are currently held by bidder, and are valid and in full force
and effect. Copies or legitimate proof of such licensure and/or certification shall be
included in bidder's response. Bids lacking copies and/or proof of said licenses
and/or certifications may be deemed non-responsive and may be rejected.
36. Once the award has been made and prior to the commencement of the job, the
City’s Municipal Code (M.C. 5.04.005) requires that a Business doing business with
the City, obtain and maintain a valid City Business Registration Certificate during
the term of the Agreement.
37. Vendor (Contractor)/ Consultant services agreement(s) (VSA/CSA). A signed
vendor/Consultant service agreement may be required between both parties prior to
commencement of the job.
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Consent Calendar
City of San Bernardino
Request for Council Action
Date: March 7, 2018
To: Honorable Mayor and City Council Members
From: Andrea M. Miller, City Manager
By: Kathy Brann, Director
Gretel Noble, Housing Manager
Subject: Adopt Resolution Authorizing The City Manager to Approve
and Execute Agreements Related to Programs and Services
Approved in the Substantial Amendment to HUD Fiscal Year
2017-18 Action Plan
Recommendation(s)
Adopt a Resolution of the Mayor and City Council of the City of San Bernardino,
California, approving agreements related to programs and services approved in the
substantial amendment to the HUD Fiscal Year 2017-18 Action Plan, and authorizing
the City Manager to execute the agreements.
Background
On January 17, 2018 the Mayor and City Council adopted Resolution 2018-21
approving the Substantial Amendment to the Fiscal Year 2017-2018 Action Plan. The
Resolution authorized allocation of CDBG, NSP and ESG funds to various programs
and services, which the City has determined may be provided by the Housing Authority
of the County of San Bernardino and Step Up on Second.
Discussion
As a direct recipient of the federal funds, the City has the responsibility to ensure that
the funds are used on a timely basis and used to support the City’s Consolidated Plan
goals and objectives. Periodically, the City will amend its annual action plan to ensure
that these federal dollars are used effectively and efficiently to improve our community,
especially for persons and families with low or moderate incomes.
Execution of the agreements with HACSB and Step Up on Second will allow the
activities these organizations will carry out on behalf of the City to proceed in a timely
manner.
Fiscal Impact
There is no fiscal impact to the City’s General Fund. All funding utilized to support
these activities was previously allocated by the Mayor and City Council and will come
from the U.S. Department of Housing and Urban Development.
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Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino adopt
the resolution submitted with this staff report to authorize the City Manager or her
designee to execute the Agreements with HACSB and Step Up on Second.
Attachments
Attachment 1 - Resolution
Exhibit A - Contract Between the City of San Bernardino and the Housing Authority of
the County of San Bernardino
Exhibit B - Subgrant Agreement for the Conduct of an Emergency Solutions Project
Ward:
Synopsis of Previous Council Actions:
January 17, 2018 - Substantial Amendment to the FY 2017-2018 Action Plan
May 15, 2017 – Resolution approved, adopting the Fiscal Year (FY) 2017-2018 United States
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RESOLUTION NO.______
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, APPROVING AGREEMENTS RELATED TO
PROGRAMS AND SERVICES APPROVED IN THE SUBSTANTIAL AMENDMENT
TO THE HUD FISCAL YEAR 2017-2018 ACTION PLAN AND AUTHORIZING THE
CITY MANAGER TO EXECUTE THE AGREEMENTS
WHEREAS, the City of San Bernardino participates in the United States Department
of Housing and Urban Development’s (HUD) Community Development Block Grant
(CDBG), Neighborhood Stabilization Program (NSP) and Emergency Solutions Grant (ESG)
Programs; and
WHEREAS, the City’s Annual Action Plan serves as the City’s one-year business
plan and identifies activities the City will implement within the fiscal year (FY) that will
contribute to meeting the goals and objectives listed in the City’s 5-year Consolidated Plan;
and
WHEREAS, on January 17, 2018, the Mayor and City Council adopted Resolution
No. 2018-21, approving a substantial amendment to the City’s 2017-2018 Annual Action Plan
to allocate approximately $3,920,077 in uncommitted/unspent CDBG, NSP, and ESG funds to
various eligible activities listed in Exhibit A to Resolution No. 2018-21, entitled “Fiscal Year
2017-2018 Annual Action Plan Substantial Amendment;” and
WHEREAS, Resolution No. 2018-21 did not include specific language authorizing
the City Manager or designee to enter into written agreements with outside entities for the
performance of the activities for which federal funds were allocated in the Substantial
Amendment that was approved in Resolution No. 2018-21; and
WHEREAS, the Mayor and City Council now desire to authorize the City Manager or
designee to execute on behalf of the City a Subgrant Agreement, in an amount not to exceed
$900,000 in Community Development Block Grant funds with the Housing Authority of the
County of San Bernardino for the demolition of vacant structures, in support of the
redevelopment of Arrowhead Grove, which activity was approved in Resolution No. 2018-21;
and
WHEREAS, the Mayor and City Council further desire to authorize the City Manager
or designee to execute on behalf of the City a Subgrant Agreement, in an amount not to
exceed $205,000 in Emergency Solutions Grant funds with Step Up on Second Street, Inc. for
an Emergency Solutions Grant Project for the provision of services to residents of the City of
San Bernardino who are experiencing chronic homelessness and related conditions, which
activity also was approved in Resolution No. 2018-21.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
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SECTION 1. The City Manager or designee is hereby authorized to execute on behalf
of the City a Subgrant Agreement, which is attached hereto and incorporated herein as Exhibit
A, in an amount not to exceed $900,000 in Community Development Block Grant funds, with
the Housing Authority of the County of San Bernardino for the demolition of vacant
structures, in support of the redevelopment of Arrowhead Grove, and to take all other actions
necessary and appropriate to effectuate said agreement.
SECTION 2. The City Manager or designee is hereby authorized to execute on behalf
of the City a Subgrant Agreement, which is attached hereto and incorporated herein as Exhibit
B, in an amount not to exceed $205,000 in Emergency Solutions Grant funds, with Step Up on
Second Street, Inc. for an Emergency Solutions Grant Project for the provision of services to
residents of the City of San Bernardino who are experiencing chronic homelessness and
related conditions, and to take all other actions necessary and appropriate to effectuate said
agreement.
SECTION 3. Resolution No. 2018-21 shall remain in full force and effect.
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, APPROVING AGREEMENTS RELATED TO
PROGRAMS AND SERVICES APPROVED IN THE SUBSTANTIAL AMENDMENT
TO THE HUD FISCAL YEAR 2017-2018 ACTION PLAN AND AUTHORIZING THE
CITY MANAGER TO EXECUTE THE AGREEMENTS
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and City
Council of the City of San Bernardino at a _____________________ meeting thereof, held on
the ____ day of ___________, 2018, by the following vote, to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna. City Clerk
The foregoing Resolution is hereby approved this __________ day of __________, 2018.
R. Carey Davis, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz, City Attorney
By: ____________________
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EXHIBIT A
CONTRACT
This Contract is made and entered into this ____ day of March 2018, by and between the City of
San Bernardino, hereinafter referred to as "CITY", and the Housing Authority of the County of San
Bernardino, hereinafter referred to as “HACSB.”
WITNESSETH
WHEREAS, the CITY has applied for and received funds from the U.S. Department of Housing
and Urban Development (HUD), under Title 1 of the Housing and Community Development Act of 1974,
as amended (HCD Act), Public Law 93-383 hereinafter referred to as the "ACT"; and,
WHEREAS, CITY Economic Development and Housing Department, hereinafter referred to as
"EDH", is authorized to act on behalf of CITY in administering the CITY CDBG program; and,
WHEREAS, HACSB desires to participate in the CITY CDBG program and is qualified by reason
of experience to manage and carry out a CDBG eligible activity; and,
WHEREAS, all activities funded with CDBG funds must meet one of the CDBG program’s
National Objectives, CITY recognizes the public benefit in providing a program of low and moderate
income housing; and,
WHEREAS, on December 19, 2016 the Mayor and City Council approved a substantial
amendment to the 2015-2019 fiscal year Consolidated Plan; and,
WHEREAS, on January 17, 2018 the Mayor and City Council adopted Resolution No. 2018-21
amending the 2017-2018 fiscal year Annual Action Plan, and as part of that amendment allocated
$900,000 of CDBG funds for the demolition of vacant housing units are Arrowhead Grove.;
NOW THEREFORE, in consideration of the mutual covenants herein set forth and the mutual
benefits to be derived therefrom, the parties agree as follows:
1. SCOPE OF SERVICES
HACSB will manage and carry out the demolition of vacant housing units located on HACSB
property known as Arrowhead Grove (formerly Waterman Gardens).
A full description of the services provided in this Contract is contained in Exhibit 1 of 5
PROJECT/ACTIVITY DESCRIPTION.
Unless specified otherwise, EDH shall have the authority to represent CITY regarding the terms
and conditions of this Contract and the administration thereof.
2. TERM OF CONTRACT
The term of this Contract is from April 18, 2018 through April 17, 2018.
Page 1 of 15
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3. COMPENSATION AND METHOD OF PAYMENT
For performance of such services, CITY shall provide CDBG funds not to exceed $900,000. This
payment shall constitute full and complete compensation for services provided under this Contract
by HACSB. For the purpose of this Contract, CITY shall disburse compensation and monitor
HACSB’s performance in satisfying the scope of work obligations under the terms of this Contract.
Disbursement of payments to HACSB shall be made by monthly reimbursements, contingent
upon CITY’s receipt of a monthly summary statement for each previous month’s expenditures
which conforms to the BUDGET SUMMARY, attached hereto as Exhibit 2 of 5. Monthly
expenditure reports shall be documented with "audit ready" supportive evidence for each
expenditure and proof of payment, in accordance with HUD regulations. The monthly
expenditure report submitted by HACSB must list the "Other Sources" that are co-funding budget
line items and personnel as stated in Exhibits 3 of 5, BUDGET JUSTIFICATION.
Reimbursements shall be limited to the total of approved and properly documented expenditures.
All reimbursement requests must be submitted no later than 60 days after the expiration of this
Contract. Requests received after said 60-day period shall be considered non-compliant and not
eligible for reimbursement under the terms of this Contract.
HACSB must submit said monthly expenditure reports by the 10th day of every calendar month
regardless of expenditure amount. After receipt by CITY of each properly documented
expenditure report, CITY will draw a warrant in favor of HACSB for the approved expenditure
amount.
HACSB shall accept all payments from CITY via electronic funds transfer (EFT) directly deposited
into HACSB’s designated checking or other bank account. HACSB shall promptly comply with
directions and accurately complete forms provided by CITY required to process EFT payments.
4. BUDGET SECTION
No more than the amounts specified in the BUDGET SUMMARY, attached hereto as Exhibit 2 of
5, may be spent for the separate cost categories specified in the Budget Summary without prior
written approval of CITY. Contract Exhibit 3 of 5, BUDGET JUSTIFICATION will note the basis of
valuation for each cost category shown on the BUDGET SUMMARY.
5. USE OF FUNDS
Funds allocated pursuant to this Contract shall be used exclusively for costs included in HACSB’s
project budget. Contract funds shall not be used as security or to guarantee payments for any
non-program obligations, or as loans for non-program activities.
6. BUDGET MODIFICATIONS
EDH Director may grant budget modifications to this Contract for the movement of funds within
the budget categories identified in Exhibit 2 of 5, BUDGET SUMMARY, when such modifications:
a. Do not exceed $10,000 per budget cost category;
b. Are specifically requested by HACSB;
c. Do not alter the amount of compensation under this Contract;
d. Will not change the project goals or scope of services;
e. Are in the best interests of CITY and HACSB in performing said services.
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7. CHANGES IN GRANT ALLOCATION
CITY reserves the right to reduce the grant allocation when CITY’s fiscal monitoring indicates that
HACSB’s rate of expenditure will result in unspent funds at the end of the program year.
Changes in the grant allocation will be made after consultation with HACSB. Such changes shall
be incorporated into this Contract by written amendments.
8. REVENUE DISCLOSURE REQUIREMENT
By its execution of this Contract, HACSB certifies that it has previously filed with EDH, a written
statement listing all revenue received, or expected to be received, by HACSB from federal, state,
county or CITY sources, or other governmental or private agencies, and applied or expected to
offset in whole or in part any of the costs incurred by HACSB in conduct of current project, which
is the subject of this Contract. HACSB shall make available for inspection and audit to CITY
representatives, upon request, at any time during the duration of this Contract and during a period
of five years thereafter, all of its books and records relating to the operation of project which is
subject to this Contract. All such books and records shall be maintained by HACSB at a location
in San Bernardino County. Failure of HACSB to comply with the requirements of this section of
the Contract shall constitute a material breach of Contract upon which CITY may cancel,
terminate, or suspend this Contract.
9. JOINT FUNDING
For programs in which there are sources of funds in addition to CDBG funds, HACSB shall
provide proof of such funding. CITY shall not pay for any services provided by HACSB, which are
funded by other sources. All restrictions and/or requirements provided in this Contract relative to
accounting, budgeting, and reporting applies to the total program regardless of funding sources.
10. FISCAL LIMITATIONS
While not presently anticipated, HUD may, in the future, place programmatic or fiscal limitation(s)
on CITY CDBG funds. Accordingly, CITY reserves the right to revise this Contract in order to
take account of actions affecting HUD program funding. In the event of funding reduction, CITY
may reduce the budget of this Contract as a whole or as to cost category, may limit the rate of
HACSB’s authority to commit and spend funds, or may restrict HACSB’s use of both its
uncommitted and its unspent funds. Where HUD has directed or requested CITY to implement a
reduction in funding, in whole or as to cost category, with respect to funding for this Contract,
EDH may act for CITY in implementing and effecting such a reduction and in revising the
Contract for such purpose. Where CITY has reasonable grounds to question the fiscal
accountability, financial soundness, or compliance with this Contract of HACSB, CITY may act to
suspend the operation of this Contract for up to 60 days upon three days notice to HACSB of its
intention to so act, pending an audit or other resolution of such questions. In no event, however,
shall any revision made by CITY affect expenditures and legally binding commitments made by
HACSB before it receives notice of such revision, provided that such amounts have been
committed in good faith and are otherwise allowable and that such commitments are consistent
with HUD cash withdrawal guidelines.
11. USE OF FUNDS FOR ENTERTAINMENT, GIFTS, OR FUND RAISING ACTIVITIES
HACSB certifies and agrees that it will not use funds provided through this Contract to pay for
entertainment, gifts, or fund raising activities.
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12. MONITORING
EDH staff will conduct periodic monitoring and project progress reviews. These reviews will focus
on the extent to which the planned program has been implemented and measurable goals
attained, and effectiveness of project management. Authorized representatives of CITY and HUD
shall have the right of access to all files, records, and other documents related to the performance
of this Contract. HACSB will permit on-site inspection by CITY, and HUD representatives when
requested.
13. PROJECT REPORTING AND RETENTION OF RECORDS
HACSB agrees to prepare and submit financial, project progress, and other reports as required
by HUD or CITY directives. HACSB shall maintain such project, property, personnel, financial,
statistical and other records, supporting documents, and accounts as are considered necessary
by HUD or CITY to assure proper accounting for all Contract funds. Said records, documents
and accounts are to be retained by HACSB for a minimum of five years. The retention period
starts from the date the CITY submits its annual performance and evaluation report, as
prescribed in 24 CFR 91.520, in which the service under the terms of this contract is reported on
for the final time. Said CITY submission will follow HACSB’s final submission to CITY of reports
identified under this paragraph. Records and accounts subject to litigation or audit must be
maintained for five years or until the issue is resolved, whichever is longer. Records that pertain
to real estate transactions must be maintained for five years or the number of years there is an
outstanding obligation, whichever is longer. The starting date for retention of records on CDBG-
purchased equipment begins at the end of the equipment’s use, when it is disposed of or
transferred. The retention period for records relating to program income begins on the last date
of CITY fiscal year in which the income is earned. All HACSB’s records, with the exception of
confidential client information, shall be made available to representatives of CITY and the
appropriate federal agencies. HACSB is required to submit data necessary to complete the
Annual Grantee Performance Report in accordance with HUD regulations in the format and at the
time designated by the EDH Director. By the 10th day of each month, HACSB shall submit a
completed MONTHLY PROJECT PROGRESS REPORT, Exhibit 5 of 5, for the month being
reported.
14. ACCOUNTING
HACSB must establish and maintain on a current basis an adequate accounting system in
accordance with HUD directives and Generally Accepted Accounting Principles.
15. AUDITS
HACSB is required to arrange for an independent financial audit performed within the direction of
Generally Accepted Auditing Standards and Government Auditing Standards. Said audit shall be
conducted for the term of this Contract. When HACSB receives $500,000 or more in federal
funds from all funding sources within a fiscal year, the required audit must be performed in
compliance with OMB Circular A-133, Subpart B Section 200(a) Audit Requirements.
HACSB shall submit a copy of the audit report to CITY within nine months after the end of the
audit period. Within 30 days of the submittal of said audit report, HACSB shall provide to CITY a
written response to any concerns or findings identified in said audit report. The response must
examine each concern or finding and explain a proposed resolution, including a schedule for
correcting any deficiency. All actions to correct said conditions or findings shall be taken within
six months after receipt of the audit report.
CITY, or any state or federal agency, may make additional audits or reviews, as necessary, to
carry out the responsibilities of HACSB under CITY, state or federal laws and regulations.
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HACSB agrees to cooperate fully with all persons conducting said additional audits or reviews.
CITY and its authorized representatives shall, at all times, have access for the purpose of audit or
inspection, to any and all books, documents, papers, records and premises of HACSB. If
indications of misappropriation or misapplication of the funds of this Contract cause CITY to
require an additional audit, the cost of the audit will be encumbered and deducted from this
Contract budget.
Should CITY subsequently determine that the additional audit was not warranted, the amount
encumbered will be restored to the Contract budget. HACSB shall reimburse all misappropriation
or misapplication of funds to CITY. In the event CITY uses the judicial system to recover
misappropriated or misapplied funds, HACSB shall reimburse CITY legal fees and court costs in
addition to awards.
16. ASSIGNMENT
This Contract is not assignable by HACSB without the express written consent of CITY. Any
attempt by HACSB to assign any performance of the terms of this Contract shall be null and void
and shall constitute a material breach of this Contract.
17. SUSPENSION OR TERMINATION
This Contract may be terminated in whole or in part at any time by either party upon giving a 30-
day notice in writing to the other party. CITY may pursue such remedies as are available to it in
accordance with 24 CFR 85.43, including but not limited to suspension or termination of this
Contract, if HACSB materially fails to comply with any terms or conditions of this Contract, which
include, but are not limited to, the following:
A. Failure to comply with any of the rules, regulations or provisions referred to herein, or such
statutes, regulations, executive orders, and HUD guidelines, policies or directives as may
become applicable at any time;
B. Failure, for any reason, of HACSB to fulfill in a timely and proper manner its obligations under
this Contract;
C. Ineffective or improper use of funds provided under this Contract;
D. Submission by HACSB to CITY reports that are incorrect or incomplete in any material
respect; or
E. Failure to take satisfactory corrective action as directed by the CITY.
In accordance with 24 CFR 85.44, this Contract may also be terminated for convenience by either
the CITY or HACSB, in whole or in part, by setting forth the reasons for such termination, the
effective date, and, in the case of partial termination, the portion to be terminated. If, in the case
of a partial termination, however, the CITY determines that the remaining portion of the award will
not accomplish the purpose for which the award was made, the CITY may terminate the award in
its entirety. Agreement must be reached by both parties as to reasons and conditions for
termination in compliance with the provisions of federal regulations at 24 CFR Part 84.61,
Termination for Convenience. EDH is hereby empowered to give said notice subject to
ratification by the Mayor and City Council.
CITY may immediately terminate this Contract upon the termination, suspension, discontinuation
or substantial reduction in CDBG funding for the Contract activity or if for any reason the timely
completion of the work under this Contract is rendered improbable, infeasible or impossible. If
HACSB materially fails to comply with any term of this Contract, CITY may take one or more of
the actions provided under federal regulation at 24 CFR Part 84.62, Enforcement, which includes
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temporarily withholding cash, disallowing non-compliant costs, wholly or partly suspending or
terminating the award, withholding further awards, and other remedies that are legally available.
In such an event, HACSB shall be compensated for all services rendered and all necessarily
incurred costs performed in good faith in accordance with the terms of this Contract that have not
been previously reimbursed, to the date of said termination to the extent that CDBG funds are
available from HUD.
18. REVERSION OF ASSETS
Upon Contract termination, HACSB shall transfer to CITY all CDBG funds on hand at the time of
expiration and any accounts receivable attributable to the use of CDBG funds.
19. TIME OF PERFORMANCE MODIFICATIONS
EDH Director may grant time of performance modifications to this Contract when such
modifications:
a. In aggregate do not exceed 6 calendar months;
b. Are specifically requested by HACSB;
c. Will not change the project goals or scope of services;
d. Are in the best interests of CITY and HACSB in performing the scope of services
under this Contract; and
e. Do not alter the amount of compensation under this Contract.
20. INDEPENDENT CONTRACTOR
All parties hereto in the performance of this Contract will be acting in independent capacities and
not as agents, employees, partners, joint venturers, or associates of one another. The
employees or agents of one party shall not be deemed or construed to be the agents or
employees of the other party for any purpose whatsoever.
21. CONTRACT COMPLIANCE
HACSB shall make every effort to ensure that all projects funded wholly or in part by CDBG funds
shall provide equal employment and career advancement opportunities for minorities and women.
In addition, HACSB shall make every effort to employ residents of the area and shall keep a
record of the positions that have been created directly or as a result of this program.
HACSB shall comply with Executive Orders 11246, as amended by Executive Orders 11375,
11478, 12086, and 12107, (Equal Employment Opportunity), Executive Orders 11625, 12138,
12432, 12250, and Executive Order 13279 (Equal Protection of the Laws for Faith-Based and
Community Organizations), Title VII of the Civil Rights Act of 1964, the California Fair Housing
and Employment Act, and other applicable federal, state and CITY laws, regulations and policies
relating to equal employment and contracting opportunities, including laws and regulations
hereafter enacted.
22. DISCRIMINATION
HACSB agrees to comply with the nondiscrimination in employment and contracting opportunities
laws, regulations, and executive orders referenced in 24 CFR 570.607, as revised by Executive
Order 13279. The applicable nondiscrimination provisions in Section 109 of the HCDA are still
applicable, which stipulates that no person in the United States shall on the grounds of race,
color, national origin or sex be excluded from participation in, be denied the benefits of, or be
subjected to discrimination under any program or activity funded in whole or in part pursuant to
agreement.
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Additionally, HACSB shall not, on the grounds of race, color, sex/gender, sexual orientation,
familial status, religion, national origin, creed, ancestry, marital status, age or disability or
handicap:
A. Deny a qualified individual any facilities, financial aid, services or other benefits
provided under this Contract;
B. Provide any facilities, financial aid, services or other benefits which are different, or
are provided in a different manner, from those provided to others under this Contract;
C. Subject an individual to segregated or separate treatment in any facility, or in any
matter if process related to receipt of any service or benefit under this Contract;
D. Restrict an individual’s access to or enjoyment of any advantage or privilege enjoyed
by others in connection with any service or benefit under this Contract;
E. Treat anyone differently from others in determining if they satisfy any admission,
enrollment, eligibility, membership or other requirement or condition which the
individual must meet to be provided a service or a benefit under this Contract;.
F. Deny anyone an opportunity to participate in any program or activity as an employee
that is different from that afforded others under this Contract.
23. RELIGIOUS PROSELYTIZING OR POLITICAL ACTIVITIES
HACSB agrees that it will not engage in inherently religious activities, such as worship, religious
instruction or proselytizing, as part of the activities funded under this Contract. Further, HACSB
agrees that it will not perform or permit political activities in connection with the performance of
this Contract. Funds made available under this Contract will be used exclusively for performance
of the work required under this Contract and no funds made available under this Contract shall be
used to promote any religious or political activities.
24. WOMEN AND MINORITY-OWNED BUSINESS (W/MBE)
HACSB will use its best efforts to afford small businesses, minority business enterprises, and
women’s business enterprises the maximum practicable opportunity to participate in the
performance of this Contract. As used in this Contract, the terms “small business” means a
business that meet the criteria set forth in Section 3(a) of the Small Business Act, as amended
(15 U.S.C. 632) and “minority and women’s business enterprises” means a business at least fifty-
one (51%) percent owned and controlled by minority group members or women. For the purpose
of this definition “minority group members” are Afro-American, Spanish-speaking, Spanish
surnamed or Spanish-heritage Americans, Asian-Americans, and American Indians. HACSB
may rely on written representation by businesses regarding their status as minority and female
business enterprises in lieu of an independent investigation.
25. CONFLICT OF INTEREST
HACSB shall comply with all applicable federal and state laws, regulations and policies governing
conflict of interest, including State Conflict of Interest Regulations found in California Government
Code Sections 1090, 1126, 87100 et seq., Federal Conflict of Interest Regulations found in 24
CFR 570.611, 85.36, and 84.42, and any other applicable policies, rules and regulations related
to conflict of interest.
Any person who is an employee, agent, consultant, officer, elected or appointed official of
HACSB, who exercises any functions or responsibilities with respect to CDBG-funded activities
identified in this Contract and who is in a position to participate in a decision making process or
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gain inside information with regard to activities identified in this Contract, may not obtain a
financial interest or benefit from the CDBG-assisted activities identified in this Contract or any
related contract, subcontract, or agreement, either for themselves, an immediate family member
or business partner, during his/her tenure. HACSB shall maintain written standards of conduct
governing the performance of their employees engaged in the award and administration of
contracts.
26. FORMER CITY OFFICIALS
HACSB agrees to provide or has already provided information on former CITY Administrative
Officials (as defined below) who are employed by or represent HACSB on this project. The
information required includes a list of former CITY Administrative Officials, who terminated CITY
employment within the last five years and are now officers, principals, partners, associates, or
members of the business. The information also includes the employment with or representation
of HACSB. For purposes of this provision, "CITY Administrative Official" is defined as a member
of the City Council or such Council Member’s staff, City Administrative Officer or member of such
Officer's staff, City Department Head, Assistant Department Head, or any employee in the,
Management Unit.
27. INDEMNIFICATION
HACSB agrees to indemnify, defend (with counsel reasonably approved by CITY) and hold harmless
the CITY and its authorized officers, employees, agents and volunteers from any and all claims,
actions, losses, damages, and/or liability arising out of this contract from any cause whatsoever,
including the acts, errors or omissions of any person and for any costs or expenses incurred by the
CITY on account of any claim except where such indemnification is prohibited by law. This
indemnification provision shall apply regardless of the existence or degree of fault of indemnitees.
HACSB's indemnification obligation applies to the CITY's "active" as well as "passive" negligence but
does not apply to the CITY's "sole negligence" or "willful misconduct" within the meaning of Civil
Code Section 2782. This provision shall survive the termination of this Contract.
28. INSURANCE REQUIREMENTS
HACSB agrees to provide insurance set forth in accordance with the requirements herein. If HACSB
uses existing coverage to comply with these requirements and that coverage does not meet the
specified requirements, HACSB agrees to amend, supplement or endorse the existing coverage to do
so. The type(s) of insurance required is determined by the scope of the contract services.
Without in anyway affecting the indemnity herein provided and in addition thereto, HACSB shall
secure and maintain throughout the contract term the following types of insurance with limits as
shown:
- Workers' Compensation/Employers Liability - A program of Workers' Compensation
insurance or a state-approved, self-insurance program in an amount and form to meet all
applicable requirements of the Labor Code of the State of California, including Employer's
Liability with $250,000 limits covering all persons including volunteers providing services on
behalf of HACSB and all risks to such persons under this contract.
With respect to contractors that are non-profit corporations organized under California or
federal law, volunteers for such entities are required to be covered by Workers'
Compensation Insurance.
- Commercial/General Liability Insurance - HACSB shall carry General Liability Insurance
covering all operations performed by or on behalf of HACSB providing coverage for bodily
injury and property damage with a combined single limit of not less than one million dollars
($1,000,000), per occurrence. The policy coverage shall include:
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(a) Premises operations and mobile equipment.
(b) Products and completed operations.
(c) Broad form property damage (including completed operations).
(d) Explosion, collapse and underground hazards.
(e) Personal injury.
(f) Contractual liability.
(g) $2,000,000 general aggregate limit.
- Automobile Liability Insurance - Primary insurance coverage shall be written on ISO
Business Auto coverage form for all owned, hired and non-owned automobiles or symbol 1
(any auto). The policy shall have a combined single limit of not less than one million dollars
($1,000,000) for bodily injury and property damage, per occurrence.
If HACSB is transporting one or more non-employee passengers in performance of contract
services, the automobile liability policy shall have a combined single limit of two million dollars
($2,000,000) for bodily injury and property damage per occurrence.
If HACSB owns no autos, a non-owned auto endorsement to the General Liability policy
described above is acceptable.
- Additional Insured - All policies, except for the Workers' Compensation, Errors and Omissions
and Professional Liability policies, shall contain endorsements naming the CITY and its
officers, employees, agents and volunteers as additional insureds with respect to liabilities
arising out of the performance of services hereunder. The additional insured endorsements
shall not limit the scope of coverage for the CITY to vicarious liability but shall allow coverage
for the CITY to the full extent provided by the policy. Such additional insured coverage shall
be at least as broad as Additional Insured (Form B) endorsement form ISO, CG 2010.11 85.
- Waiver of Subrogation Riqhts - HACSB shall require the carriers of required coverages to
waive all rights of subrogation against the CITY, its officers, employees, agents, volunteers,
contractors and subcontractors. All general or auto, liability insurance coverage provided
shall not prohibit HACSB and HACSB's employees or agents from waiving the right of
subrogation prior to a loss or claim. HACSB hereby waives all rights of subrogation against
the CITY.
- Policies Primary and Non-Contributory - All policies required herein are to be primary and
non-contributory with any insurance or self-insurance programs carried or administered by
the CITY.
- Severability of Interests - HACSB agrees to ensure that coverage provided to meet these
requirements is applicable separately to each insured and there will be no cross liability
exclusions that preclude coverage for suits between HACSB and the CITY or between the
CITY and any other insured or additional insured under the policy.
- Acceptability of Insurance Carrier - Unless otherwise approved by Risk Management,
insurance shall be written by insurers authorized to do business in the State of California and
with a minimum "Best" Insurance Guide rating of "A-VII".
- Deductibles and Self-Insured Retention - Any and all deductibles or self-insured retentions in
excess of $10,000 shall be declared to and approved by CITY.
29. PROOF OF COVERAGE
HACSB shall furnish Certificates of Insurance to the EDH evidencing the insurance coverage,
including endorsements, as required, prior to the commencement of performance of services
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hereunder, which certificates shall provide that such insurance shall not be terminated or expire
without thirty (30) days written notice to the Department, and HACSB shall maintain such insurance
from the time HACSB commences performance of services hereunder until the completion of such
services. Within fifteen (15) days of the commencement of this contract, HACSB shall furnish a copy
of the Declaration page for all applicable policies and will provide complete certified copies of the
policies and endorsements immediately upon request.
30. COMPLIANCE WITH LAWS
All parties agree to be bound by applicable federal, state, and local laws, ordinances, regulations,
and directives as they pertain to the performance of this Contract. This Contract is subject to and
incorporates the terms of the ACT; 24 Code of Federal Regulations, Part 570 and Part 84; and
U.S. Office of Management and Budget Circulars A-122, and A-133.
31. SUSPENSION AND DEBARMENT
By entering this Contract, HACSB certifies that HACSB, including its principals, is not suspended
or debarred from participating in federally funded contracts and sub-awards.
32. AMENDMENTS: VARIATIONS
This writing with exhibits/attachments embodies the whole of this Contract of the parties hereto.
There are no oral agreements contained herein. Except as herein provided, additions or
variations of the terms of this Contract shall not be valid unless made in the form of a written
amendment to this Contract formally approved and executed by both parties.
33. NOTICES
All notices shall be served in writing. The notices shall be sent to the following addresses:
City of San Bernardino HACSB
Economic Development and 715 E Brier Drive
Housing Department San Bernardino, CA 92408
290 North D Street Attn: Judy David
San Bernardino, CA 92401
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34. COUNTERPART EXECUTION
This Contract may be executed in counterparts. When executed, each counterpart shall be
deemed an original irrespective of date of execution. Said counterparts shall together constitute
one and the same Contract.
IN WITNESS WHEREOF, the parties have caused this Contract to be executed as of the day and
year written above.
CITY OF SAN BERNARDINO HACSB
A California Municipal Corporation
Andrea M. Miller, City Manager Maria Razo, Executive Director
Dated: Dated:
ATTEST
City of San Bernardino
Georgeann Hanna, City Clerk
Approved as to form:
City Attorney
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EXHIBIT 1 of 4
CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AND HOUSING DEPARTMENT
Project/Activity Title: Arrowhead Grove Demolition City Project Number:
Name/Address of Contractor Agency: Date of Issue:
HACSB
715 E. Brier Drive
San Bernardino, CA 92408
Original: Beginning
Amendment No.
PROJECT/ACTIVITY DESCRIPTION
ACTIVITY:
To demolish 92 units, in 41 buildings, to support the ongoing revitalization of Arrowhead Grove (formerly
Waterman Gardens) affordable housing development, in the City of San Bernardino.
MEASURABLE UNITS: 92 vacant units in 41 buildings.
PROGRAM PARTICIPANT PERFORMANCE STANDARDS:
- CDBG Activity: Low Moderate Income (LMA)
- Measurable Outcome: CONTRACTOR AGENCY will provide measurable, quantified outcome
results for the period of this contract. The measurable outcome will be the demolition of 92 vacant
housing units at Arrowhead Grove.
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EXHIBIT 2 of 4
CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AND HOUSING DEPARTMENT
Project/Activity Title: Arrowhead Grove Demolition
Name/Address of Contractor Agency:
HACSB
715 E. Brier Drive
San Bernardino, CA 92408
X Original: Beginning 4/18/2018
Amendment No.
BUDGET SUMMARY
COST CATEGORY CDBG SHARE $ OTHER SOURCES $* TOTAL COST $
1) Architectural &
Engineering: $70,000 N/A $70,000
2) Permits/Local
Review Application:
$15,000
N/A
$15,000
3) Construction: $675,000 $350,000
HACSB
$1,025,000
4 Environmental
Report & Contingency:
$140,000 N/A $140,000
TOTALS $900,000 $350,000 $1,250,000
*If costs are to be shared by other sources of funding, identify the source by name/agency
and amount.
SUMMARY – OTHER SOURCES OF FUNDING:
1. HACSB $ 350,000
2. $
3. $
TOTAL: $ 350,000
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EXHIBIT 3 of 4
CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AND HOUSING DEPARTMENT
Project/Activity Title: Arrowhead Grove Demolition
Name/Address of Contractor Agency:
HACSB
715 E. Brier Drive
San Bernardino, CA 92408
X Original: Beginning 4/18/2018
Amendment No.
INSURANCE INVENTORY
WORKERS’ COMPENSATION/EMPLOYERS’ LIABILITY INSURANCE
Name of Insurance Company:
Effective Dates:
Employer’s Liability Limit $
Certificate of Insurance Attached Yes No: On File w/ EDH
COMPREHENSIVE GENERAL AND AUTOMOBILE LIABILITY INSURANCE
Name of Contractor's General Insurance Company:
Limits of Liability Effective Dates:
Per Occurrence $ Additional Insured Endorsement Attached Yes No: On File w/ EDH
Annual Aggregate $ Certificate of Insurance Attached Yes No: On File w/ EDH
Name of Contractor's Automobile Liability Insurance Company:
Limits of Liability Effective Dates:
Per Person $ Per Accident $ Damage Liability $ Combined Single Limit $
ERRORS AND OMISSIONS LIABILITY INSURANCE
Name of Contractor's Insurance Company:
Limits of Liability Effective Dates:
Per Occurrence $ Additional Insured Endorsement Attached Yes No: On File w/ EDH
Annual Aggregate $ Certificate of Insurance Attached Yes No: On File w/ EDH
PROFESSIONAL LIABILITY INSURANCE
Name of Contractor's Insurance Company:
Limits of Liability Effective Dates:
Per Occurrence $ Additional Insured Endorsement Attached Yes No: On File w/ EDH
Annual Aggregate $ Certificate of Insurance Attached Yes No: On File w/ EDH
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EXHIBIT 4 of 4
CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AND HOUSING DEPARTMENT
Project/Activity Title: Arrowhead Grove Demolition
Name/Address of Contractor Agency:
HACSB
715 E. Brier Drive
San Bernardino, CA 92408
X Original: Beginning 4/18/2018
Amendment No.
MONTHLY PROGRAM PROGRESS AND DIRECT BENEFIT REPORT For the Month of , 201
PART I: MONTHLY PROGRAM PROGRESS REPORT
A. Units of Service Provided and Description
On the lines provided under each type of service listed below, summarize what your program has accomplished during this
month. Include location, number of persons served, services/benefits provided, and a description of the clients served. Also
report the number of “Units of Service” provided, as defined in the Project/Activity Description (Exhibit 1 of the agreement).
Attach additional pages if needed.
Type of Service: Anticipated Units of Service:
1. : Goal/mo.: Actual/mo.:
2. : Goal/mo.: Actual/mo.:
3. : Goal/mo.: Actual/mo.:
Signed Title Date
Printed Name Telephone No./Ext.
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EXHIBIT B
SUBGRANT AGREEMENT FOR THE CONDUCT OF AN EMERGENCY
SOLUTIONS GRANT PROJECT (OR PROJECTS)
between
THE CITY OF SAN BERNARDINO
And
STEP UP ON SECOND STREET, INC.
GENERAL PROVISIONS
THIS SUBGRANT AGREEMENT is entered into and shall be effective as of the ____ day of
_________________ by and between the City of San Bernardino, a California municipal
corporation, (the "CITY"), and Step Up on Second Street, Inc., a private nonprofit
corporation licensed to do business in the State of California, 141 N. Arrowhead Ave., San
Bernardino, California, 92408 (the "SUBRECIPIENT"), DUNS Number 362990244.
RECITALS:
A. The CITY has entered into a grant agreement with the United States Department of
Housing and Urban Development ("HUD") for financial assistance to conduct an
Emergency Solutions Grant Program (the "ESG Program") pursuant to Subtitle B of
Title IV of the McKinney-Vento Homeless Assistance Act, 42 U.S.C. §§ 11371-
11378, as amended, and the Rules and Regulations promulgated by HUD governing
the conduct of ESG programs, found at Title 24 of the Code of Federal Regulations
("CFR") Part 576, as amended, (the "Rules and Regulations");
B. As provided in the Rules and Regulations, the CITY is authorized to contract by
subgrant agreement with private non-profit entities for qualified activities and projects;
and
C. Under this subgrant agreement the SUBRECIPIENT will be a subrecipient of ESG
program funds from the CITY.
THEREFORE, in consideration of the mutual promises, payments and other provisions hereof,
the CITY and the SUBRECIPIENT agree as follows:
1. Content of this Agreement. This agreement consists of this Part, "General
Provisions", and the following listed attachments:
Attachment I - Statement of Work
Attachment II - Budget
Attachment III - Reimbursement Invoice
2. Project Responsibility. The City Manager, or his or her designee, is hereby
designated as the representative of the CITY regarding all ESG Program matters and
shall be responsible for the overall administration and management of that program and
the manner in which the activities or projects described herein are conducted. The CITY
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will monitor the performance of the SUBRECIPIENT against goals and performance
standards set forth in Attachment I - Statement of Work. Substandard performance as
determined by the CITY will constitute non-compliance with this subgrant agreement. If
within a reasonable period of time after being notified by the CITY, the SUBRECIPIENT
does not take action to correct such substandard performance, the CITY may initiate
termination or suspension of this agreement, which may result in termination or
suspension of funding, as set forth in Paragraphs 16 and 17 respectively.
3. Project(s) or Activities. The activities or projects to be conducted hereunder are
generally described as follows and referred to hereinafter as the "Project":
CONTRACT NUMBER: ESG
PROJECT TITLE: Homeless Services Coordination
PROJECT TOTAL COSTS: $204,889
4. Statement of Work. The SUBRECIPIENT shall perform or cause to be
performed all work required for the Project(s) described generally in Attachment I and
Paragraph 3 above and, in that performance, shall be responsible for conducting all
personnel staffing and contracting, providing all services, and furnishing all related real
and personal property required. The Project(s) shall be performed in a manner satisfactory
to the CITY and in accordance with the provisions of this agreement. The more detailed
statement of work contained in Attachment I is not intended to limit the scope of that
work.
5. Project Budget.
A. A budget must be prepared for each of the Projects listed in Paragraph 3
above and submitted to the Economic and Housing Development Department for review
and approval prior to the execution of this agreement. Budget(s) shall be prepared in the
format shown in Attachment II or another format acceptable to the CITY . Budgets shall
list the major cost elements of the Project and show the estimated cost of each of those
elements equaling in sum total the fixed total Project cost to be reimbursed to the
SUBRECIPIENT for that Project, as provided in Paragraph 3 above.
B. All changes within the budget(s) shall be reported in a timely manner for
acceptance and approval by the CITY. All proposed changes in the total amount of any of
the budget(s) under this agreement which would increase or decrease the total amount of
funding specified in Paragraph 8.A below or result in a change in the scope, location or
beneficiaries of the Project shall be submitted to the CITY for prior approval and must be
formally authorized by a written amendment to this agreement in accordance with the
provisions of Paragraph 10 below.
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6. Period of Performance.
A. The period of performance of this agreement shall be 12 months which
period shall begin on ___________and end on _______________. All costs which are
incurred on the Project by the SUBRECIPIENT after the effective date of this agreement
and which have been determined by the CITY to be appropriate and allowable costs of the
Project shall be eligible for reimbursement and payment hereunder.
B. All performance of this agreement shall be undertaken and completed by
the SUBRECIPIENT in an expeditious manner and shall not extend beyond the end of the
Period of Performance specified in Paragraph 6.A. All amendments of this agreement,
including extensions of the time for performance, shall be made in writing and in
accordance with all requirements of Paragraph 10.
C. All adjustments to or extensions of time proposed for the performance of
this agreement shall be requested in writing by the SUBRECIPIENT and be submitted to
the CITY for processing. Upon approval of the request by the City Manager or designee,
a written amendment to this agreement shall be prepared and executed in accordance with
Paragraph 10 setting forth the adjustment or extension of time agreed upon.
7. Matching Funds. The SUBRECIPIENT shall match the funds provided under
this agreement as may be required by 24 CFR § 576.201. Eligibility of matching fund
sources shall be subject to review and approval by the CITY. In the event the CITY
determines that the SUBRECIPIENT's match funds are not in compliance with HUD
regulations, policies, or directives, the CITY may, in its sole discretion, either: i)
suspend this agreement as provided in Paragraph 17 below; or ii) reduce the total
funding amount set forth in Paragraph 8 below in an amount proportionate to the
ineligible match funds.
8. Funding Amount.
A. Subject to the requirements of this agreement, the CITY will fund to
the SUBRECIPIENT for the full performance of this agreement and the actual
conduct of the Project(s) specified herein a total sub-grant amount of Two Hundred
Four Thousand Eight Hundred Eighty-Nine ($204,889) dollars for all Projects
undertaken by the SUBRECIPIENT. The above stated fixed ceiling amount is a "not-
to-exceed" amount and shall not be considered an "estimate-of-cost", "percentage-of-
cost" or any kind of "cost-plus" sum, price or amount. Also, as used in this agreement,
unless the context indicates otherwise, the words "expend", "expended" and
"expenditure" shall include all amounts obligated or committed by the
SUBRECIPIENT by written agreement (including unilateral purchase orders) for
expenditure on the Project.
B. The SUBRECIPIENT must make a concerted, good-faith effort to expend
the total funding amount specified above within the Period of Performance stated in
Paragraph 6. The SUBRECIPIENT's costs and expenditures, however, shall not
exceed the total funding amount. The CITY shall not be liable for or reimburse the
SUBRECIPIENT for any extra costs or overruns on the Project, or any additional funding
in excess of the total amount stated above, without a prior written amendment of this
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agreement in accordance with Paragraph 10 below.
C. In the event the full funding amount to be reimbursed hereunder by the
CITY is not expended by the SUBRECIPIENT for Project costs as specified in
Attachment II by the end of the Period of Performance hereof, as that period may have
been extended or otherwise changed, the SUBRECIPIENT shall release any unexpended
amount back to the CITY within 30 days after the end of the Period of Performance. Any
Project funds held by the CITY at the end of the Period of Performance shall be
reallocated by the CITY. The SUBRECIPIENT shall be eligible to re-apply for these
funds but shall have no greater priority than any other applicant. In the event of
congressional action, HUD rules and regulations, or other lawful directive modifying or
reducing the funds and/or services obligated under this agreement, the SUBRECIPIENT
shall, upon notice from the CITY, immediately modify, reduce the scope of, or cease
expenditures as directed. The SUBRECIPIENT further agrees to utilize funds available
under this agreement to supplement rather than supplant other funds available to the
SUBRECIPIENT.
9. Methods of Disbursement.
A. The SUBRECIPIENT shall request payment from the CITY by
submitting monthly Requests for Reimbursement in the form of Attachment III,
which shall be submitted to the CITY within 10 days after the month's end (i.e., July's
Request for Reimbursement must be submitted to the CITY by August 10th).
B. The City shall review each Request for Reimbursement and determine
eligibility for payment. Upon approval by the CITY, the Economic and Housing
Development Department will submit the request to the appropriate City offices and
divisions for processing and payment. Requests for Reimbursement shall be supported and
documented as required by the CITY on the basis of costs actually incurred by the
SUBRECIPIENT on the Project during the period for which reimbursement is requested.
C. Expenditures under this agreement determined by the CITY or HUD to be
ineligible for reimbursement, and those expenditures which are inadequately documented,
will not be reimbursed.
D. No requests for reimbursement or other payments under this agreement
which are due to cost overruns of any kind on the Project shall be approved, allowed or
paid by the CITY unless the amount requested has been approved by a written
amendment in accordance with the provisions of Paragraph 10.
10. Amendments.
A. Either of the parties hereto may request amendments to any of the
provisions of this agreement at any time but except as stated in Paragraph 10.B, no
amendment shall be made or performed until it has been mutually agreed to by the parties.
All amendments shall be in writing and shall be executed prior to any work being done
pursuant thereto.
B. The CITY may, in its discretion, unilaterally amend this agreement as
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required to conform to applicable federal, state or local governmental requirements,
guidelines, policies or available funding amounts. However, if such amendments result in
a change in the purpose, the scope of services, the location, or the beneficiaries of the
Project to be undertaken under this agreement, the amendments shall be made only by
written amendment signed by both the CITY and the SUBRECIPIENT.
11. ESG Program Compliance. The SUBRECIPIENT shall become familiar with
and agrees to comply with the ESG program regulations set forth at 24 CFR Part 576 and
applicable related federal regulations, including but not limited to 24 CFR Part 5, 24 CFR
Part 84, and 24 CFR Part 85, and applicable Office of Management and Budget (OMB)
Circulars referenced in the regulations. The SUBRECIPIENT also agrees to comply with
all other applicable federal, state and local laws, regulations, and policies governing the
use of the funds provided under this Agreement, including without limitation:
A. The nondiscrimination and equal opportunity requirements at 24 CFR
5.105(a).
B. The housing counseling requirements at 24 CFR 5.111.
C. Section 3 of the Housing and Urban Development Act of 1968, 12 U.S.C.
1701u, and implementing regulations at 24 CFR part 135, except that homeless
individuals have priority over other Section 3 residents in accordance with § 576.405(c).
D. The affirmative outreach requirements at 24 CFR 576.407(b).
E. The requirements of 2 CFR part 200.
F. Requirements relating to environmental review by HUD under 24 CFR
part 50.
G. The Solid Waste Disposal Act, as amended by the Resource Conservation
and Recovery Act of 1976, 42 U.S.C. 6901 et seq., and later enactments, and the
guidelines of the Environmental Protection Agency at 40 CFR part 247.
12. Consultation and Technical Assistance. The CITY will be available to provide
technical assistance upon written request of the SUBRECIPIENT or as the CITY deems
necessary for improved program operation.
13. Independent Contractor. The relationship between the CITY and
SUBRECIPIENT under this Agreement shall be that of an independent contractor. Each
party shall have the entire responsibility to discharge all of the obligations of an
independent contractor under federal, state and local law, including but not limited to
those obligations relating to employee supervision, benefits and wages; taxes;
unemployment compensation and insurance; social security; workers’ compensation; and
disability pensions and tax withholdings, including the filing of all returns and reports and
the payment of all taxes, assessments and contributions and other sums required of an
independent contractor. Nothing contained in this agreement shall be construed to create
the relationship between CITY and SUBRECIPIENT of employer and employee, partners,
or joint venturers.
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The parties agree that SUBRECIPIENT's obligations under this Agreement are solely
to the CITY. This Agreement shall not confer any rights on third parties unless
otherwise expressly provided for under this Agreement.
14. Indemnification. The SUBRECIPIENT agrees to defend (with counsel
reasonably approved by the CITY) and hold the CITY, its officers, officials, attorneys,
agents, employees, volunteers and independent contractors free and harmless from any
claims, actions, losses, damages and/or liability whatsoever, including wrongful death,
based upon or arising out of any act or omission of the SUBRECIPIENT, its officers,
agents, employees, or independent contractors. This indemnification provision shall apply
regardless of the existence or degree of fault of the indemnitees. The specific insurance
coverage required in Paragraph 15 shall in no way limit or circumscribe the
SUBRECIPIENT’S obligation to indemnify and hold the CITY harmless as set forth in
this Paragraph 14.
15. Insurance.
A. The SUBRECIPIENT shall during the term of this agreement:
(i) Procure and maintain Workers’ Compensation Insurance as
prescribed by the laws of the State of California.
(ii) Procure and maintain commercial general and automobile
liability insurance that shall protect the SUBRECIPIENT from
claims for damages for personal injury, including accidental and
wrongful death, as well as from claims for property damage, which
may arise from activities or programs under this Agreement, whether
such activities or programs are conducted by the SUBRECIPIENT,
by any subcontractor, or by any officer, employee or agent of either
of them.
B. Liability insurance shall name the CITY, its officers, officials, attorneys,
agents, employees, volunteers and independent contractors as additional insureds with
respect to liabilities arising out of the performance of this agreement and the obligations
of the SUBRECIPIENT hereunder. Such insurance shall provide for combined coverage
limits of not less than $1,000,000 per occurrence and shall be written on an occurrence
basis and not on a claims-made basis. Insurance shall be written by insurers authorized to
do business in the State of California and with a minimum Best’s Insurance Guide
“General Policyholders Rating” of “A(v).”
C. The SUBRECIPIENT shall furnish the CITY with policies of insurance
prior to the execution of this agreement showing that such insurance is in full force and
effect, and that the CITY is named as an additional insured as to the liability policies with
respect to this agreement and the obligations of the SUBRECIPIENT hereunder. All
policies shall contain a waiver of subrogation as against the CITY and of any intra-insured
exclusion, and the covenant of the insurance carrier that thirty (30) days’ written notice
will be given to the CITY prior to modification, cancellation, or reduction in coverage of
such insurance.
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D. No site proposed on which renovation, major rehabilitation, or
conversion of a building is to be assisted under this agreement, other than by grant
amounts allocated to the state, may be located in an area that has been identified by the
Federal Emergency Management Agency as having special flood hazards, unless the
community in which the area is situated is participating in the National Flood Insurance
Program and the regulations issued thereunder (44 CFR, Parts 59-80) or less than a
year has passed since the Federal Emergency Management Agency notification
regarding such hazards, and the SUBRECIPIENT will ensure that flood insurance on
the structure is obtained in compliance with Section 102(a) of the Flood Disaster
Protection Act of 1973 (42 U.S.C. Section 4001 et. seq.).
16. Termination. Either party may terminate this agreement at any time by
giving notice in writing to the other party of such termination and specifying the effective
date thereof at least 30 days before the effective date of such termination. Partial
terminations of the Project described in Paragraph 3 above may only be undertaken with
the prior approval of the CITY. In the event of any termination for convenience, all
finished or unfinished documents, data, studies, surveys, maps, models, photographs,
reports, or other materials prepared by the SUBRECIPIENT under this agreement shall, at
the option of the CITY, become the property of the CITY, and the SUBRECIPIENT shall
be entitled to receive just and equitable compensation for any satisfactory work completed
on such documents or materials prior to the termination.
17. Suspension. The CITY may suspend this agreement, in whole or in part, if the
SUBRECIPIENT materially fails to comply with any term of this agreement, or with any
of the rules, regulations or provisions referred to herein; and the CITY may declare the
SUBRECIPIENT ineligible for any further participation in the CITY’s contracts or
programs, in addition to other remedies as provided by law.
18. Records. The SUBRECIPIENT shall maintain accurate financial and service
delivery records pertinent to the activities to be funded under this agreement. Records
shall be maintained for a period of five (5) years or such longer periods as set forth at 24
CFR § 576.500(y).
19. Coordination with Other Targeted Homeless Services.
The SUBRECIPIENT shall coordinate and integrate, to the maximum extent
practicable, ESG-funded activities with other programs targeted to homeless people in
the area covered by the Continuum of Care or area over which the services are
coordinated to provide a strategic, community-wide system to prevent and end
homelessness for the area as set forth at 24 CFR § 576.400(b).
20. System and Program Coordination with Mainstream Resources.
The SUBRECIPIENT shall coordinate and integrate, to the maximum extent practicable,
ESG-funded activities with mainstream housing, health, social services, employment,
education, and youth programs for which families and individuals at risk of homelessness
and homeless individuals and families may be eligible as set forth at 24 CFR §
576.400(c).
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21. Client Evaluation. The SUBRECIPIENT shall conduct an initial evaluation to
determine the eligibility of each individual or family for ESG assistance and the amount
and types of assistance the individual or family needs to regain stability in permanent
housing. These evaluations must be conducted in accordance with the centralized or
coordinated assessment requirements set forth under 24 CFR § 576.400(d) and the written
standards established under 24 CFR § 576.400(e).
22. Re-Evaluations for Homelessness Prevention and Rapid Re-Housing Assistance. The
SUBRECIPIENT must re-evaluate the program participant's eligibility and the types and amounts
of assistance the program participant needs not less than once every 3 months for program
participants receiving homelessness prevention assistance, and not less than once annually for
program participants receiving rapid re-housing assistance as outlined in 24 CFR § 576.401(b).
23. Annual Income. When determining the annual income of an individual or family,
the SUBRECIPIENT must use the standard for calculating annual income under 24 CFR §
5.609 as outlined in 24 CFR § 576.401(c).
24. Connecting Program Participants to Mainstream and other Resources. The
SUBRECIPIENT must assist each program participant, as needed, in obtaining
appropriate supportive services as outlined in 24 CFR § 576.401(d).
25. Housing Stability Case Management. The SUBRECIPIENT must follow the
requirements for housing stability case management outlined in 24 CFR § 576.401(e).
26. Terminating Assistance. If a program participant violates program requirements,
the SUBRECIPIENT may terminate the assistance in accordance with a formal process
established by the SUBRECIPIENT that recognizes the rights of individuals affected. The
SUBRECIPIENT shall exercise judgment and examine all extenuating circumstances in
determining when violations warrant termination, so that a program participant's
assistance is terminated only in the most severe cases as outlined in 24 CFR § 576.402.
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27. Shelter and Housing Standards.
A. Lead-based Paint Remediation and Disclosure. The Lead-Based Paint
Poisoning Prevention Act (42 U.S.C 4821 et seq.), the residential lead-Based Paint Hazard
Reduction Act of 2993 (42 U.S.C. 4851-4856), and implementing regulations at 24 CFR
Part 35, subparts A, B, H, J, K, M and R apply to all shelters assisted under the ESG
Program and all housing occupied by program participants.
B. Minimum Standards for Emergency Shelters. Any building for which
Emergency Solutions Grant funds are used for conversion, major rehabilitation, or other
renovation, must meet state and local government safety and sanitation standards, as
applicable, and the minimum safety, sanitation and privacy standards listed in 24 CFR §
576.403(b)(1-11).
C. Minimum Standards for Permanent Housing. The SUBRECIPIENT
shall not use ESG funds to help a program participant remain or move into housing that
does not meet the minimum habitability standards set forth in 24 CFR § 576.403(c)(l-10).
28. Conflicts of Interest.
A. Organizational Conflicts of Interest. The provision of any type or
amount of ESG assistance may not be conditioned on an individual's or family's
acceptance or occupancy of emergency shelter or housing owned by the SUBRECIPIENT
or a parent or subsidiary of the SUBRECIPIENT. The SUBRECIPIENT may not, with
respect to individuals or families occupying housing owned by the SUBRECIPIENT, or
any parent or subsidiary of the SUBRECIPIENT, carry out the initial evaluation required
under 24 CFR § 576.401 or administer homelessness prevention assistance under 24 CFR
§ 576.103.
B. Individual Conflicts of Interest. For the procurement of goods and
services, the SUBRECIPIENT must comply with the general procurement standards and
conflict of interest provisions contained in 2 CFR § 200.318. For all other transactions and
activities the SUBRECIPIENT must follow the restrictions listed in 24 CFR § 576.404.
All contractors of the SUBRECIPIENT must comply with the requirements of this
Paragraph.
29. Participation of Homeless Persons in Policy-Making and Operations. The
SUBRECIPIENT understands it is required to involve not less than one homeless
individual or formerly homeless individual on the board of directors or other equivalent
policymaking entity of the subrecipient, to the extent that the entity considers and makes
policies and decisions regarding any facilities, services, or other assistance that receive
funding under the ESG Program. The SUBRECIPIENT also agrees that to the maximum
extent practicable, it will involve, through employment, volunteer services, or otherwise,
homeless individuals and families in constructing, renovating, maintaining, and operating
facilities assisted under this agreement and in providing services for occupants of facilities
assisted under this agreement, as required by 24 CFR § 576.405 in accordance with 42
U.S.C. 11375 (d) and 42 U.S.C. 11375 (c) (7).
30. Primarily Religious Organization. If the SUBRECIPIENT is a primarily
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religious or faith-based organization, funds provided under this agreement are subject to
the provisions of 24 CFR § 576.406.
31. Displacement, Relocation and Acquisition. Consistent with the other goals and
objectives of the ESG Program, the SUBRECIPIENT agrees to assure that it has taken all
reasonable steps to minimize the displacement of persons (families, individuals,
businesses, nonprofit organizations, and farms) as a result of a project assisted under this
program. The SUBRECIPIENT shall comply with all requirements regarding
displacement relocation and acquisition set forth in 24 CFR §576.408.
32. Recordkeeping and Reporting Requirements. The SUBRECIPIENT shall have
written policies and procedures to ensure the requirements of the ESG Program are met
and shall maintain sufficient records to document homeless status, at risk of homelessness
status, determination of eligibility or ineligibility, and annual income. The
SUBRECIPIENT shall maintain program records documenting eligible status of
participants, evidence of the use of the centralized or coordinated assessment systems and
procedures, rental assistance agreements and payments, monthly allowance for utilities
used to determine compliance with rent restrictions, compliance with shelter and housing
standards, records of emergency shelter facilities assisted, services and assistance
provided for each type of service, coordination with Continuum of Care and other
programs, participation in HMIS, matching contributions for the matching requirement
in 24 CFR §576.201, and all other requirements set forth in 24 CFR Part 570. Such
information shall be made available to the CITY for monitoring purposes upon request.
33. Confidentiality. The SUBRECIPIENT understands and agrees that client
information collected under this agreement is private and the use or disclosure of such
information, when not directly connected with the administration of the CITY's or
SUBRECIPIENT's responsibilities with respect to services provided under this
agreement, is prohibited without lawful court order unless written consent is obtained
from the client and, in the case of a minor, that of a responsible parent/guardian. The
SUBRECIPIENT shall ensure the confidentiality of client data pertaining to the
provision of family violence prevention or treatment services as required by 24 CFR
576.500(x).
34. Close-Out Requirements. The SUBRECIPIENT's obligations to the CITY
under this agreement shall not end until all close-out requirements are completed.
Close-out requirements shall include, but are not limited to: making final payments,
disposing of program assets (including the return of all unused materials, equipment,
unspent cash advances, program income balances, and accounts receivable to the
CITY), and determining the custodianship of records.
35. Audits & Inspections. All SUBRECIPIENT records with respect to any matters
covered by this agreement shall be made available to the CITY, grantor agency, their
designees or the federal government at any time during normal business hours, as often as
the CITY or grantor agency deems necessary, to audit, examine, and make excerpts or
transcripts of all relevant data. Any deficiencies noted in audit reports must be fully
cleared by the SUBRECIPIENT within a time period agreed upon by the CITY and the
SUBRECIPIENT after receipt of notice of deficiency by the SUBRECIPIENT. Failure of
the SUBRECIPIENT to comply with the above audit requirements will constitute a
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violation of this agreement and may result in the withholding of future payments or
refunding of payments to the CITY. The SUBRECIPIENT hereby agrees to have an
annual agency audit conducted in accordance with current CITY policy concerning
SUBRECIPIEN T audits, and, as applicable, OMB Circular A-133.
36. Progress Reports. Every three months or when specifically requested by the
CITY and during the actual conduct of the Project, the SUBRECIPIENT shall prepare and
submit to the CITY a Quarterly Performance Report (QPR) from the HMIS System
through the State of California for the Project. In addition, the SUBRECIPIENT will
provide monthly information of the costs charged and contractual commitments incurred
in performing the Project up to the date of each report.
37. Other Federal Requirements.
A. Prohibited Activities. The SUBRECIPIENT is prohibited from using
funds provided herein or personnel employed in the administration of the Project for
political activities, sectarian or religious activities, lobbying, political patronage, or
nepotism.
B. Non-discrimination and Equal Opportunity. The SUBRECIPIENT and
all persons acting on its behalf shall comply with the non-discrimination and equal
opportunity requirements set forth in 24 CFR § 5.105(a) and with all federal, state and
City laws governing discrimination, and shall not discriminate in the application,
screening, employment, participation, or any other involvement of any person in relation
to any phase of the Project.
D. "Section 3" Compliance. The SUBRECIPIENT and its subrecipients and
subcontractors shall comply with the provisions of Section 3 of the Housing and
Urban Development Act, 12 U.S.C. § 1701u(b), as implemented by the regulations
contained in 24 CFR Part 135. The SUBRECIPIENT certifies and agrees that no
contractual or other disability exists which would prevent compliance with these
requirements. The SUBRECIPIENT will include this Section 3 clause in every
subcontract and will take appropriate action pursuant to the subcontract upon a
finding that the subcontractor is in violation of regulations issued by the grantor
agency. The SUBRECIPIENT will not subcontract with any entity where it has
notice or knowledge that the latter has been found in violation of regulations under
24 CFR Part 135 and will not let any subcontract unless the entity has first provided it
with a preliminary statement of ability to comply with the requirements of those
regulations.
D. Affirmative Outreach. The SUBRECIPIENT must make known that the
facilities, assistance, and services provided pursuant to this agreement are available to all
on a nondiscriminatory basis. If it is unlikely that the procedures used to make known the
availability of the facilities, assistance, and services will reach persons of any particular
race, color, religion, sex, age, national origin, familial status, or disability who may
qualify for those facilities, assistance, and services, the SUBRECIPIENT must establish
additional procedures that ensure that those persons are made aware of the facilities,
assistance, and services. The SUBRECIPIENT and its subcontractors and subrecipients
must take appropriate steps to ensure effective communication with persons with
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disabilities including, but not limited to, adopting procedures that will make available to
interested persons information concerning the location of assistance, services, and
facilities that are accessible to persons with disabilities. Consistent with Title VI of the
Civil Rights Act of 1964 and Executive Order 13166, recipients and subrecipients are also
required to take reasonable steps to ensure meaningful access to programs and activities
for limited English proficiency (LEP) persons.
E. Uniform Administrative Requirements. The requirements of 24 CFR
Part 85 apply to recipients and subrecipients under this agreement that are units of
general purpose local government. The requirements of 24 CFR Part 84 apply to
subrecipients that are private nonprofit organizations. These regulations include
allowable costs and non-Federal audit requirements.
F. Environmental Review Responsibilities. The SUBRECIPIENT shall not
be required to assume the environmental responsibilities described at 24 CFR Part 50 or
the review process under 24 CFR Part 52. The CITY will be responsible for
environmental review compliance.
G. Davis-Bacon Act. As per 24 CFR § 576.407(e), the provisions of the
Davis-Bacon Act (40 U.S.C. 3141 et seq.) do not apply to the ESG Program.
H. Procurement of Recovered Materials. The SUBRECIPIENT must
comply with Section 6002 of the Solid Waste Disposal Act as required by 24 CPR
576.407(f).
I. Hatch Act. The SUBRECIPIENT agrees that no funds provided or
personnel employed under this Agreement shall be used for or engage in the conduct of
political activities in violation of Chapter 15 of Title 5 United States Code.
38. Lobbying. The SUBRECIPIENT agrees and certifies that:
A. No federally appropriated funds have been paid or will be paid by or on
behalf of the SUBRECIPIENT to any person for influencing or attempting to influence
an officer or employee of any agency, a member of Congress, an officer or employee of
Congress, or an employee of a member of Congress in connection with the awarding of
any federal contract, the making of any federal grant, the making of any federal loan, the
entering into of any cooperative agreement, or the extension, continuation, renewal,
amendment, or modification of any federal contract, grant, loan or cooperative
agreement.
B. If any funds other than federally appropriated funds have been paid or will
be paid to any person for influencing or attempting to influence an officer or employee of
any agency, a member of Congress, an officer or employee of Congress, or an employee
of a member of Congress in connection with this federal contact, grant, loan, or
cooperative agreement, the SUBRECIPIENT will complete and submit Standard Form-
LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions.
C. The SUBRECIPIENT will require that the language of this certification be
included in the award documents for all subawards at all tiers (including subcontracts,
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subgrants, and contracts under grants, loans, and cooperative agreements) and that all
subawardees shall certify and disclose accordingly.
D. This certification is a material representation of fact upon which
reliance was placed when this transaction was made or entered into. Submission of
this certification is a prerequisite for making or entering into this transaction under
Section 1352, Title 31, United States Code. Any person who fails to file the required
certification shall be subject to a civil penalty of not less than $10,000 and not more
than $100,000 for each such failure.
39. Assignments and Contracting. The responsibility for the performance of this
agreement shall not be assigned, transferred or contracted out by the SUBRECIPIENT
without the prior written consent of the CITY. Contracts or purchase orders by the
SUBRECIPIENT for the acquisition of equipment, materials, supplies or services for the
Project do not require the consent of the CITY but shall be entered into in accordance
with the competitive bidding requirements of this agreement and any applicable state laws
and local government ordinances.
40. Subcontracts. The SUBRECIPIENT shall not enter into any subcontracts with
any agency or individual in the performance of this Agreement without the consent of the
CITY prior to the execution of such subcontract. The SUBRECIPIENT will monitor all
subcontracted services on a regular basis to assure contract compliance. Results of
monitoring efforts shall be summarized in written reports and supported with documented
evidence of follow-up actions taken to correct areas of noncompliance. The
SUBRECIPIENT shall cause all of the provisions of this agreement in its entirety to be
included in and made a part of any subcontract executed in the performance of this
agreement. The SUBRECIPIENT shall undertake to insure that all subcontracts let in the
performance of this agreement shall be awarded on a fair and open competitive basis.
Executed copies of all subcontracts shall be forwarded to the CITY along with
documentation concerning the selection process.
41. Ethical Standards. The SUBRECIPIENT represents that it has not: (a)
provided an illegal gift or payoff to any City officer or employee, or former City officer
or employee, or to any relative or business entity of a City officer or employee, or relative
or business entity of a former City officer or employee; (b) retained any person to solicit
or secure this contract upon an agreement or understanding for a commission, percentage,
brokerage or contingent fee, other than bona fide employees of bona fide commercial
agencies established for the purpose of securing business; (c) breached any of the ethical
standards set forth in any State statute; or (d) knowingly influenced, and hereby promises
that it will not knowingly influence, any City officer or employee or former City officer or
employee to breach any of the ethical standards set forth in any State statute.
42. Campaign Contributions. The SUBRECIPIENT acknowledges the limits on
campaign contributions to City candidates by contractors of the CITY. The
SUBRECIPIENT further acknowledges that violating campaign contribution limitations
may result in criminal sanctions as well as termination of this Agreement. The
SUBRECIPIENT represents, by executing this Agreement, that the SUBRECIPIENT has
not made or caused others to make any campaign contribution to any City candidate.
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43. Public Funds and Public Monies.
A. Definitions. "Public funds" and "public monies" mean monies, funds, and
accounts, regardless of the source from which they are derived, that are owned, held, or
administered by the State or any of its boards, commissions, institutions, departments,
divisions, agencies, bureaus, laboratories, or other similar instrumentalities, or any city,
school district, political subdivision, or other public body. The terms also include monies,
funds or accounts that have been transferred by any of the aforementioned public entities
to a private contract provider for public programs or services. Said funds shall remain
"public funds" while in the SUBRECIPIENT's possession.
B. SUBRECIPIENT's Obligation. The SUBRECIPIENT, as a recipient of
"public funds" and "public monies" pursuant to this and other contracts related hereto,
expressly understands that it and its officers and employees are obligated to receive, keep
safe, transfer, disburse and use these "public funds" and "public monies" as authorized by
law and by this agreement for the provision of services to the CITY. The
SUBRECIPIENT understands that it and its officers and employees may be criminally
liable for misuse of public funds or monies. The SUBRECIPIENT expressly understands
that the CITY may monitor the expenditure of public funds by the SUBRECIPIENT. The
SUBRECIPIENT expressly understands that the CITY may withhold funds or require
repayment of funds from the SUBRECIPIENT for contract noncompliance, failure to
comply with directives regarding the use of public funds, or for misuse of public funds or
monies.
44. Survival of Provisions. The parties to this agreement specifically agree that all
the paragraphs, terms, conditions and other provisions of this agreement that require some
action to be taken by either or both of the parties upon or after the expiration or termination
of this agreement shall survive the expiration or termination of this agreement and shall be
completed, taken or performed as provided herein or as may be required under the
circumstances at that time.
45. Debarment. The SUBRECIPIENT certifies by the execution of this agreement
that neither it nor its principals is presently debarred, suspended, proposed for debarment,
declared ineligible, or voluntarily excluded from participation in this transaction by any
Federal department or agency.
IN WITNESS WHEREOF, each of the parties has caused this Agreement to be approved by
its governing body or board and to be duly executed as follows:
CITY OF SAN BERNARDINO
A California Municipal Corporation
___________________________
Andrea M. Miller, City Manager
Date:
ATTEST:
City of San Bernardino
___________________________
Georgeann Hanna, City Clerk
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APPROVED AS TO FORM:
Gary D. Saenz, City Attorney
By: _________________________
STEP UP ON SECOND STREET, INC.
A California Nonprofit Corporation
__________________________________
Barbara Bloom, Chief Operations Officer
Date: _____________________________
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ATTACHMENT I
to
The City of San Bernardino Contract Number ESG
SUBRECIPIENT: Step Up on Second Street, Inc.
PROJECT: Homeless Services Coordination
PROJECT STATEMENT OF WORK
This attachment is a supplement to the Statement of Work contained in Paragraphs 3 and 4
of the foregoing agreement. Therefore, in addition to the general work required to be done
under those paragraphs, which apply to all projects to be conducted under the agreement, the
particular work to be performed for this project is as follows:
Program Activity and Reference: IDIS Matrix Code: 03T
CPD Outcome Performance Measurement Information
Objective: Decent Housing Outcome: Availability/Accessibility
National Objective: Low/Mod Clientele Benefit
NATURE AND SCOPE OF PROJECT
The goal of the proposed program is to enhance the quality of life of residents of the City by
meeting the social service needs of residents within City borders who are experiencing chronic
homelessness and/or a mental health issue and/or chronic medical conditions. ESG funds will be
used to pay for Street Outreach and Homeless Prevention. During the term of the Agreement,
Step up on Second Street, Inc. street outreach workers will make contact with 200 homeless
individuals/households. Of those 200 it is anticipated that 75 will engage with outreach workers
to receive a variety of services that could range from getting a social security card or
identification to medical services. It is anticipated that of the 75 homeless individuals/households
that receive service referrals and assistance, 20 will transition into permanent supportive housing
with Step Up on Second Street, Inc.’s case management.
Contact: 200 homeless individuals/households
Engagement: 75 individuals/households to provide assistance in obtaining mainstream benefits,
linking them to service providers, enrolling them in the Coordinated Entry System (CES).
Permanent Supportive Housing: 20 homeless individuals/families.
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ATTACHMENT II
to
The City of San Bernardino Contract Number ESG
SUBRECIPIENT: Step Up On Second Street, Inc.
PROJECT: Homeless Services Coordination
PROJECT BUDGET
I. Estimated Total Project Cost ................................................................................. $204,889
Budgeted ESG Expenditures:
a. Supportive Services/Outreach............................................................$156,672
b. Operating Cost .................................................................................$ 32,550
c. Administrative ………………………………………………………...$ 15,667
TOTAL ESG EXPENDITURES: ............................................................................$204,889
Source of Matching Funds as May be Required:
a. Mental Health Services ……………………………………………… $122,933
b. Continuum of Care / Department of Housing and Urban Development… $ 81,956
TOTAL MATCHING FUNDS:..................................................................................$204,889
In no case will reimbursement exceed SUBRECIPIENT's actual costs. SUBRECIPIENT will
maintain records necessary for justification and verification of such costs. Failure to submit
supporting documentation for costs will result in the reimbursement request being sent back to
SUBRECIPIENT for completion. SUBRECIPIENT will have 15 days to correct request for
reimbursement.
FINAL REIMBURSEMENT REQUESTS ARE DUE TO THE CITY 15 DAYS AFTER THE
END OF THE FISCAL YEAR, OR JULY 15, 2019.
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City of San Bernardino
Page 1
Month of
Name:
Address:
Phone
Number:
Agency Information
Should there be any questions regarding this invoice
Contact Person:
Phone Number:
Email Address:
The undersigned hereby certifies that the expenditures identified on the attached "budget
breakdown form" (totaled below as "Amount Requested") are true and correct, and that said
expenditures were incurred and paid within the MONTH OF__________ for the current
program year, in accordance with the agreement identified herein. Evidence of all payments
(bills and/or receipts and check copies) for each of the expenditures listed is attached hereto.
The total of eligible expenditures for the aforementioned month is $_____________.
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City of San Bernardino
Page 2
Monthly Budget Breakdown for
Month of ________
Approved by: Date:
2)
3)
4)
10) Rent
13) Office Supplies
14) HMIS
16)
17)
19) Food Vouchers
20) Motel Vouchers
Budgeted
Expenditure
Year-to-Date
Expenditures
9) Life/Health/Dental Insurance
Budgeted
Expenditure
Year-to-Date
Expenditures
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City of San Bernardino
Page 3
Monthly Budget Breakdown for _____________
Month of ________
What was your program goal when you submitted your application for
How many clients did you plan to serve this month?
How many new clients have you served this program year?
Number of unduplicated beneficiaries (people) served this month:
Number of NEW unduplicated beneficiaries (people) served this month:
Number of unduplicated adults served:
Number of unduplicated children served:
Number of individual households:
Number of food vouchers distributed:
Number of motel vouchers (nights) distributed:
Number of shelter beds available:
Number of shelter beds used:
Number of people placed in Rapid Rehousing (RRH):
Number of homeless preventions (HPP):
Chronically Homeless (EMERGENCY SHELTER ONLY)
Severely Mentally Ill
Chronic Substance Abuse
Other Disability
Veterans
Persons with HIV/AIDS
Victims of Domestic Violence
Elderly
New Hispanic
White
African American
Asian
American Indian/Alaskan Native
Native Hawaiian/Other Pacific Islander
American Indian/Alaskan Native & White
Asian & White
African American & White
American Indian/Alaskan Native & African
Other Multi-Racial
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City of San Bernardino
Page 4
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City of San Bernardino
Page 5
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City of San Bernardino
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Consent Calendar
City of San Bernardino
Request for Council Action
Date: March 7, 2017
To: Honorable Mayor and City Council Members
From: Andrea M. Miller, City Manager
By: Jarrod Burguan, Chief of Police
Eric Fyvie, Sergeant
Subject: Accept Emergency Management Performance Grant and
Expenditures
Recommendation
Adopt a Resolution of the Mayor and City Council of the City of San Bernardino ,
California, authorizing the Receipt, Obligation, and Expenditure of the FY2017
Emergency Management Performance Grant, authorizing the City Manager to Execute
Vendor Service Agreements with Vector USA and Tyco Integrated Security, and
authorizing the Director of Finance to amend the Adopted FY2017/18 Budget and to
issue Purchase Orders to Vector USA, Tyco Integrated Security, and GovConnection,
Inc.
Background
During reorganization of the Fire Department in 2011, primary responsibility for
Emergency Management was transferred to the Police Department. Upon assuming
those responsibilities, the Police Department initiated a renovation project on the
Emergency Operations Center (EOC) in order to improve our readiness capabilities. To
qualify for Federal disaster reimbursement, the City of San Bernardino is required by
FEMA and the California Office of Emergency Services to have an approved
Emergency Operations Plan (EOP) and Local Hazard Mitigation Plan (LHMP). Both of
these plans were adopted October 17, 2016. Additionally, the City is required to follow
both the national incident management system (NIMS) and California standardized
emergency management system (SEMS) protocols in times of disaster. An EOC is the
command and control facility by which entities accomplish this task.
The EOC allows for the sharing of information and improves the ability to prevent, plan,
respond, and recover from any emergency. Utilizing NIMS, first responders and other
vital members of the response team can work cooperatively in a properly equipped and
functioning EOC. The EOC improves our City’s ability t o operate during emergencies.
The facility is designed around the NIMS and SEMS management hierarchy and
provides the work stations and technology necessary to accommodate pre -designated
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management roles and tasks. The City of San Bernardino’s EOC was buil t and
furnished in 1995. The furniture, computers, printers, cabling and TV display monitors
had fallen into disrepair.
There has been a cooperative effort to restore the function of the City’s EOC utilizing
Homeland Security Grant Program (HSGP) and Emergency Management Performance
Grant (EMPG) funds. EMPG fund were utilized for a personnel accountability system,
audio system, computer workstations, chairs, office desk, monitor mounts and
installation materials (EMPG 2016).
This project will complete the EOC with secured access card readers on each door. The
EOC conference room will have a d isplay added that is capable of displaying
information from the video wall system. Computer systems will be purchased for several
of the work stations. These items are essential to the basic functions of the various EOC
positions and operations.
Discussion
The City of San Bernardino is a sub-recipient of the Emergency Management
Performance Grant (EMPG), a Federal grant administered through the County of San
Bernardino Fire Protection District. This grant is a non-competitive allocation available to
the City each year. The FY2017 EMPG grant allocation amount is $30,928 with a dollar
for dollar match of $30,928. The cash match will be met using the salary and benefits
for time spent as the Grant Project Manager by one Police Sergeant. Grant award letter
attached hereto as Attachment 2.
Mallory Safety & Supply Project#2 - 60" LED back light display Conference Room
The contractor (VectorUSA) will install and reconfigure wiring and/or cabling to (1) 60"
LED back light display. This display will connect to a 32x32 A/V Matrix Switcher using
UTP HDbaseT technology implemented for the EOC. The Matrix function will be able to
select any source attached to Matrix Switcher and display content to the wall mounted
display in the EOC Conference Room. Special programming, configuration and
commands will be inputted to the display. Audio sound will distribute through the ceiling
mounted speakers. System Controls will be a repurposed Extron control processor
which will be reprogrammed to perform all necessary controls for all related A/V
devices. All custom programming will be designed and programmed to department
approval and system abilities. This is a continuing project with a vetted vendor. Pursuant
to San Bernardino Municipal Code 3.04.101(b) (3) the Mayor and City Council approve
a selected source justification for this purchase. Cost $12,399. Quote attached hereto
as Exhibit B.
Tyco Integrated Security – Access Card Reader EOC
The contractor (Tyco Integrated Security) will install 3 access card readers, these
readers assist in securing the EOC. The contactor will install additional hardware on
each door to function via the reader interface. This includes installation and wiring the
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surface mounted box to the existing reader interface board. Cost $9,122 . Quote
attached hereto as Exhibit C.
GovConnection, Inc.- Computer(s) Purchase
Purchase (7) desk top computer systems, (7) wireless keyboard/mouse combos, and
(9) Display monitors. These computer systems will be placed at work stations in the
EOC. Cost $7,885. Quote attached hereto as Exhibit D.
Fiscal Impact
Acceptance of the EMPG FY2017 grant in the amount of $30,928 is an addition to the
Adopted FY 17/18 budget. Expenditures made for the eligible projects discussed above
will be reimbursed after the project completion date. A local match of $30,928 is
required and will be met with the salary of the Police Sergeant in charge of Emergency
Management during the grant period. The fiscal year 2017/18 operating budget needs
to be amended by the grant funds of $30,928, as well as the related revenue budget.
The attached resolution seeks that authorization.
Conclusion
Authorize the Receipt, Obligation, and Expenditure of the FY2017 Emergency
Management Performance Grant, authorize the City Manager to Execute Vendor
Service Agreements with Vector USA and Tyco Integrated Security, and authorize the
Director of Finance to amend the Adopted FY2017/18 Budget and to issue Purchase
Orders to Mallory Safety & Supply, Tyco Integrated Security, and GovConnection, Inc.
Attachments
Attachment 1 – Resolution, Exhibit B–Vector USA, Exhibit C–Tyco Integrated Security
Attachment 2 – EMPG FY2017 Project Approval Notification Letter
Attachment 3 – Cal OES Select Source approval
Ward:
Synopsis of Previous Council Actions:
1/13/17 - Resolution 2017-02 adopted approving the receipt, obligation, and expenditure
of the FY2016 EMPG grant of $38,549.00
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AUTHORIZING THE RECEIPT, OBLIGATION, AND
EXPENDITURE OF THE FY2017 EMERGENCY MANAGEMENT PERFORMANCE
GRANT, AUTHORIZING THE CITY MANAGER TO EXECUTE VENDOR SERVICE
AGREEMENTS WITH VECTOR USA AND TYCO INTEGRATED SECURITY AND
AUTHORIZING THE DIRECTOR OF FINANCE TO AMEND THE ADOPTED
FY2017/18 BUDGET AND TO ISSUE PURCHASE ORDERS TO VECTOR USA, TYCO
INTEGRATED SECURITY AND GOVCONNECTION, INC.
WHEREAS, The City of San Bernardino, California has been awarded the FY2017
Emergency Management Performance Grant in the amount of $30,928.00.
WHEREAS, Cal OES has approved the Select Source purchase with FY17 EMPG funds.
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AS FOLLOWS:
SECTION 1. The City Manager is hereby authorized to accept the FY2017 Emergency
Management Performance Grant in the amount of $30,928.00 for technology upgrades in the
Emergency Operations Center.
SECTION 2. The City Manager is hereby authorized to execute a Vendor Service
Agreement between the City of San Bernardino and Vector USA attached hereto as Exhibit “B”
and incorporated herein by this reference.
SECTION 3. The City Manager is hereby authorized to execute a Vendor Service
Agreement between the City of San Bernardino and Tyco Integrated Security attached hereto as
Exhibit “C” and incorporated herein by this reference.
SECTION 4. The Director of Finance is hereby authorized to amend the Adopted
FY2017/18 budget increasing the estimated revenues and expenditures by $30,928.00.
SECTION 5. The Director of Finance is hereby authorized to issue Purchase Orders to
Vector USA in the amount not to exceed $12,399.00, Tyco Integrated Security in the amount not
to exceed $9,122.00, and to GovConnection, Inc. in the amount not to exceed $9,407.00 pursuant
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to San Bernardino Municipal Code 3.04.101(b)(3), the Mayor and City Council approve a
selected source justification for this purchase.
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AUTHORIZING THE RECEIPT, OBLIGATION, AND
EXPENDITURE OF THE FY2017 EMERGENCY MANAGEMENT PERFORMANCE
GRANT, AUTHORIZING THE CITY MANAGER TO EXECUTE VENDOR SERVICE
AGREEMENTS WITH VECTOR USA AND TYCO INTEGRATED AND
AUTHORIZING THE DIRECTOR OF FINANCE TO AMEND THE ADOPTED
FY2017/18 BUDGET AND TO ISSUE PURCHASE ORDERS TO VECTOR USA, TYCO
INTEGRATED SECURITY AND GOVCONNECTION, INC.
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
City Council of the City of San Bernardino at a meeting thereof, held
on the day of , 2018, by the following vote, to wit:
COUNCILMEMBERS: AYES NAYS ABSTAIN ABSENT
MARQUEZ ______ ______ ______ ______
BARRIOS ______ ______ ______ ______
VALDIVIA ______ ______ ______ ______
SHORETT ______ ______ ______ ______
NICKEL ______ ______ ______ ______
RICHARD ______ ______ ______ ______
MULVIHILL ______ ______ ______ ______
___________________________
Georgeann Hanna, City Clerk
The foregoing Resolution is hereby approved this of __ , 2018.
___________________________
R. Carey Davis, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz, City Attorney
By: ____________________________________
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VENDOR SERVICES AGREEMENT THE CITY OF SAN BERNARDINO AND TYCO
INTEGRATED SECURITY FOR ACCESS CONTROL SYSTEM UPGRADES FOR THE
SAN BERNARDINO POLICE DEPARTMENT.
This Vendor Services Agreement is entered into this __ day of _ by and
between Tyco Integrated Security (“VENDOR”) and the City of San Bernardino
(“CITY” or “San Bernardino”).
WHEREAS, the City of San Bernardino has determined that it is advantageous and in
the best interest of the City to contract with the Vendor for access control upgrades; and
WHEREAS, the City did solicit and accept quotes from available vendors for access
control systems upgrade.
NOW, THEREFORE, the parties hereto agree as follows:
1. SCOPE OF SERVICES.
For the remuneration stipulated, CITY hereby engages the services of VENDOR to
provide access control system upgrades as requested by the Police Department.
2. COMPENSATION AND EXPENSES. a. For the services delineated above, the CITY, upon presentation of an invoice, shall
pay the VENDOR up to the amount of $ 9,122.00 for access control system
upgrades.
b. No other expenditures made by VENDOR shall be reimbursed by CITY.
3. TERM; TERMINATION.
The term of this Agreement shall be for a period of one year.
This Agreement may be terminated at any time by thirty (30) days’ written notice by
either party. The terms of this Agreement shall remain in force unless mutually amended. The
duration of this Agreement may be extended with the written consent of both parties.
4. INDEMNITY.
Vendor agrees to and shall indemnify and hold the City, its elected officials, employees,
agents or representatives, free and harmless from all claims, actions, damages and liabilities of
any kind and nature arising from bodily injury, including death, or property damage, based or
asserted upon any actual or alleged act or omission of Vendor, its employees, agents, or
subcontractors, relating to or in any way connected with the accomplishment of the work or
performance of services under this Agreement, unless the bodily injury or property damage was
actually caused by the sole negligence of the City, its elected officials, employees, agents or
representatives. As part of the foregoing indemnity, Vendor agrees to protect and defend at its
own expense, including attorney’s fees, the City, its elected officials, employees, agents or
representatives from any and all legal actions based upon such actual or alleged acts or
omissions. Vendor hereby waives any and all rights to any types of express or implied
indemnity against the City, its elected officials, employees, agents or representatives, with
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respect to third party claims against the Vendor relating to or in any way connected with the
accomplishment of the work or performance of services under this Agreement.
5. INSURANCE.
While not restricting or limiting the foregoing, during the term of this Agreement,
VENDOR shall maintain in effect policies of comprehensive public, general and automobile
liability insurance, in the amount of $1,000,000.00 combined single limit, and statutory worker’s
compensation coverage, and shall file copies of said policies with the CITY’s Risk Manager
prior to undertaking any work under this Agreement. CITY shall be set forth as an additional
named insured in each policy of insurance provided hereunder. The Certificate of Insurance
furnished to the CITY shall require the insurer to notify CITY at least 30 days prior to any
change in or termination of the policy.
6. NON-DISCRIMINATION.
In the performance of this Agreement and in the hiring and recruitment of employees,
VENDOR shall not engage in, nor permit its officers, employees or agents to engage in,
discrimination in employment of persons because of their race, religion, color, national origin,
ancestry, age, mental or physical disability, medical condition, marital status, sexual gender or
sexual orientation, or any other status protected by law.
7. INDEPENDENT CONTRACTOR.
VENDOR shall perform work tasks provided by this Agreement, but for all intents and
purposes VENDOR shall be an independent contractor and not an agent or employee of the
CITY. VENDOR shall secure, at its expense, and be responsible for any and all payment of
Income Tax, Social Security, State Disability Insurance Compensation, Unemployment
Compensation, and other payroll deductions for VENDOR and its officers, agents, and
employees, and all business license, if any are required, in connection with the services to be
performed hereunder.
8. BUSINESS REGISTRATION CERTIFICATE AND OTHER REQUIREMENTS.
VENDOR warrants that it possesses or shall obtain prior to execution of this Agreement,
and maintain a business registration certificate pursuant to Chapter 5 of the Municipal Code, and
any other licenses, permits, qualifications, insurance and approval of whatever nature that are
legally required of VENDOR to practice its business or profession.
9. NOTICES.
Any notices to be given pursuant to this Agreement shall be deposited with the United
States Postal Service, postage prepaid and addressed as follows:
TO THE CITY: TO THE VENDOR:
Andrea M. Miller Tyco Integrated Security, LLC
City Manager, City of San Bernardino 11801 Pierce Street
290 North “D” Street Riverside, CA 92505-4400
San Bernardino, CA 92418
Telephone: (909) 384-5122
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10. ATTORNEYS’ FEES
In the event that litigation is brought by any party in connection with this Agreement, the
prevailing party shall be entitled to recover from the opposing party all costs and expenses,
including reasonable attorneys’ fees, incurred by the prevailing party in the exercise of any of its
rights or remedies hereunder or the enforcement of any of the terms, conditions or provisions
hereof. The costs, salary and expenses of the City Attorney and members of his office in
enforcing this Agreement on behalf of the CITY shall be considered as “attorneys’ fees” for the
purposes of this paragraph.
11. ASSIGNMENT.
VENDOR shall not voluntarily or by operation of law assign, transfer, sublet or
encumber all or any part of the VENDOR’s interest in this Agreement without CITY’s prior
written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void
and shall constitute a breach of this Agreement and cause for the termination of this Agreement.
Regardless of CITY’s consent, no subletting or assignment shall release VENDOR of
VENDOR’s obligation to perform all other obligations to be performed by VENDOR hereunder
for the term of this Agreement.
12. VENUE.
The parties hereto agree that all actions or proceedings arising in connection with this
Agreement shall be tried and litigated either in the State courts located in the County of San
Bernardino, State of California or the U.S. District Court for the Central District of California,
Riverside Division. The aforementioned choice of venue is intended by the parties to be
mandatory and not permissive in nature.
13. GOVERNING LAW.
This Agreement shall be governed by the laws of the State of California.
14. SUCCESSORS AND ASSIGNS.
This Agreement shall be binding on and inure to the benefit of the parties to this
Agreement and their respective heirs, representatives, successors, and assigns.
15. HEADINGS.
The subject headings of the sections of this Agreement are included for the purposes of
convenience only and shall not affect the construction or the interpretation of any of its
provisions.
16. SEVERABILITY.
If any provision of this Agreement is determined by a court of competent jurisdiction to
be invalid or unenforceable for any reason, such determination shall not affect the validity or
enforceability of the remaining terms and provisions hereof or of the offending provision in any
other circumstance, and the remaining provisions of this Agreement shall remain in full force
and effect.
3
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17. REMEDIES; WAIVER.
All remedies available to either party for one or more breaches by the other party are and
shall be deemed cumulative and may be exercised separately or concurrently without waiver of
any other remedies. The failure of either party to act in the event of a breach of this Agreement
by the other shall not be deemed a waiver of such breach or a waiver of future breaches, unless
such waiver shall be in writing and signed by the party against whom enforcement is sought.
18. ENTIRE AGREEMENT; MODIFICATION.
This Agreement constitutes the entire agreement and the understanding between the
parties, and supersedes any prior agreements and understandings relating to the subject matter of
this Agreement. This Agreement may be modified or amended only by a written instrument
executed by all parties to this Agreement.
IN WITNESS THEREOF, the parties hereto have executed this Agreement on the day
and date set forth below.
Dated: ____________, 2018 VENDOR.
By: ___________________________
Its: ___________________________
Dated ____________, 2018 CITY OF SAN BERNARDINO
By:___________________________
Andrea M. Miller, City Manager
Approved as to Form:
Gary D. Saenz, City Attorney
By: ______________________
4
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VENDOR SERVICES AGREEMENT THE CITY OF SAN BERNARDINO AND
VECTOR RESOURCES, INC FOR TECHNOLOGY UPGRADES FOR THE SAN
BERNARDINO POLICE DEPARTMENT.
This Vendor Services Agreement is entered into this __ day of _ by and
between Vector Resources, Inc (“VENDOR”) and the City of San Bernardino (“CITY”
or “San Bernardino”).
WHEREAS, the City of San Bernardino has determined that it is advantageous and in
the best interest of the City to contract with the Vendor for technology upgrades; and
WHEREAS, the City did obtain quote number VRN-084208-001.
NOW, THEREFORE, the parties hereto agree as follows:
1. SCOPE OF SERVICES.
For the remuneration stipulated, CITY hereby engages the services of VENDOR to
provide the technology upgrades detailed in the quote attached hereto as Attachment “1.”
2. COMPENSATION AND EXPENSES. a. For the services delineated above, the CITY, upon presentation of an invoice, shall
pay the VENDOR up to the amount of $ 12,399.00 for technology upgrades.
b. No other expenditures made by VENDOR shall be reimbursed by CITY.
3. TERM; TERMINATION.
The term of this Agreement shall be for a period of one year.
This Agreement may be terminated at any time by thirty (30) days’ written notice by
either party. The terms of this Agreement shall remain in force unless mutually amended. The
duration of this Agreement may be extended with the written consent of both parties.
4. INDEMNITY.
Vendor agrees to and shall indemnify and hold the City, its elected officials, employees,
agents or representatives, free and harmless from all claims, actions, damages and liabilities of
any kind and nature arising from bodily injury, including death, or property damage, based or
asserted upon any actual or alleged act or omission of Vendor, its employees, agents, or
subcontractors, relating to or in any way connected with the accomplishment of the work or
performance of services under this Agreement, unless the bodily injury or property damage was
actually caused by the sole negligence of the City, its elected officials, employees, agents or
representatives. As part of the foregoing indemnity, Vendor agrees to protect and defend at its
own expense, including attorney’s fees, the City, its elected officials, employees, agents or
representatives from any and all legal actions based upon such actual or alleged acts or
omissions. Vendor hereby waives any and all rights to any types of express or implied
indemnity against the City, its elected officials, employees, agents or representatives, with
respect to third party claims against the Vendor relating to or in any way connected with the
accomplishment of the work or performance of services under this Agreement.
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5. INSURANCE.
While not restricting or limiting the foregoing, during the term of this Agreement,
VENDOR shall maintain in effect policies of comprehensive public, general and automobile
liability insurance, in the amount of $1,000,000.00 combined single limit, and statutory worker’s
compensation coverage, and shall file copies of said policies with the CITY’s Risk Manager
prior to undertaking any work under this Agreement. CITY shall be set forth as an additional
named insured in each policy of insurance provided hereunder. The Certificate of Insurance
furnished to the CITY shall require the insurer to notify CITY at least 30 days prior to any
change in or termination of the policy.
6. NON-DISCRIMINATION.
In the performance of this Agreement and in the hiring and recruitment of employees,
VENDOR shall not engage in, nor permit its officers, employees or agents to engage in,
discrimination in employment of persons because of their race, religion, color, national origin,
ancestry, age, mental or physical disability, medical condition, marital status, sexual gender or
sexual orientation, or any other status protected by law.
7. INDEPENDENT CONTRACTOR.
VENDOR shall perform work tasks provided by this Agreement, but for all intents and
purposes VENDOR shall be an independent contractor and not an agent or employee of the
CITY. VENDOR shall secure, at its expense, and be responsible for any and all payment of
Income Tax, Social Security, State Disability Insurance Compensation, Unemployment
Compensation, and other payroll deductions for VENDOR and its officers, agents, and
employees, and all business license, if any are required, in connection with the services to be
performed hereunder.
8. BUSINESS REGISTRATION CERTIFICATE AND OTHER REQUIREMENTS.
VENDOR warrants that it possesses or shall obtain prior to execution of this Agreement,
and maintain a business registration certificate pursuant to Chapter 5 of the Municipal Code, and
any other licenses, permits, qualifications, insurance and approval of whatever nature that are
legally required of VENDOR to practice its business or profession.
9. NOTICES.
Any notices to be given pursuant to this Agreement shall be deposited with the United
States Postal Service, postage prepaid and addressed as follows:
TO THE CITY: TO THE VENDOR:
Andrea M. Miller Vector Resources, Inc.
City Manager, City of San Bernardino dba: VectorUSA
290 North “D” Street 8647 Ninth Street
San Bernardino, CA 92418 Rancho Cucamonga, CA 91730
Telephone: (909) 384-5122 (909) 931-1022
2
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10. ATTORNEYS’ FEES
In the event that litigation is brought by any party in connection with this Agreement, the
prevailing party shall be entitled to recover from the opposing party all costs and expenses,
including reasonable attorneys’ fees, incurred by the prevailing party in the exercise of any of its
rights or remedies hereunder or the enforcement of any of the terms, conditions or provisions
hereof. The costs, salary and expenses of the City Attorney and members of his office in
enforcing this Agreement on behalf of the CITY shall be considered as “attorneys’ fees” for the
purposes of this paragraph.
11. ASSIGNMENT.
VENDOR shall not voluntarily or by operation of law assign, transfer, sublet or
encumber all or any part of the VENDOR’s interest in this Agreement without CITY’s prior
written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void
and shall constitute a breach of this Agreement and cause for the termination of this Agreement.
Regardless of CITY’s consent, no subletting or assignment shall release VENDOR of
VENDOR’s obligation to perform all other obligations to be performed by VENDOR hereunder
for the term of this Agreement.
12. VENUE.
The parties hereto agree that all actions or proceedings arising in connection with this
Agreement shall be tried and litigated either in the State courts located in the County of San
Bernardino, State of California or the U.S. District Court for the Central District of California,
Riverside Division. The aforementioned choice of venue is intended by the parties to be
mandatory and not permissive in nature.
13. GOVERNING LAW.
This Agreement shall be governed by the laws of the State of California.
14. SUCCESSORS AND ASSIGNS.
This Agreement shall be binding on and inure to the benefit of the parties to this
Agreement and their respective heirs, representatives, successors, and assigns.
15. HEADINGS.
The subject headings of the sections of this Agreement are included for the purposes of
convenience only and shall not affect the construction or the interpretation of any of its
provisions.
16. SEVERABILITY.
If any provision of this Agreement is determined by a court of competent jurisdiction to
be invalid or unenforceable for any reason, such determination shall not affect the validity or
enforceability of the remaining terms and provisions hereof or of the offending provision in any
3
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other circumstance, and the remaining provisions of this Agreement shall remain in full force
and effect.
17. REMEDIES; WAIVER.
All remedies available to either party for one or more breaches by the other party are and
shall be deemed cumulative and may be exercised separately or concurrently without waiver of
any other remedies. The failure of either party to act in the event of a breach of this Agreement
by the other shall not be deemed a waiver of such breach or a waiver of future breaches, unless
such waiver shall be in writing and signed by the party against whom enforcement is sought.
18. ENTIRE AGREEMENT; MODIFICATION.
This Agreement constitutes the entire agreement and the understanding between the
parties, and supersedes any prior agreements and understandings relating to the subject matter of
this Agreement. This Agreement may be modified or amended only by a written instrument
executed by all parties to this Agreement.
IN WITNESS THEREOF, the parties hereto have executed this Agreement on the day
and date set forth below.
Dated: ____________, 2018 VENDOR.
By: ___________________________
Its: ___________________________
Dated ____________, 2018 CITY OF SAN BERNARDINO
By:___________________________
Andrea M. Miller, City Manager
Approved as to Form:
Gary D. Saenz, City Attorney
By: ______________________
4
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VRN-084208-001
September 7, 2017
Vector Resources, Inc.
dba VectorUSA
8647 Ninth Street
Rancho Cucamonga, CA
91730
P: (909) 931 1022
City of San Bernardino Police Department
710 North D Street
San Bernardino, CA 92401
Project
Video Wall Expansion - Add Display to Lt. Office (Conference Room)
Proposal 1, Rev1
Prepared For
City of San Bernardino Police Department
Prepared By
VectorUSA
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VRN-084208-001
September 7, 2017
TABLE OF CONTENTS
1.0 Vector USA
2.0 Codes and Standards
3.0 Audio Visual
4.0 Project Parameters
Detailed Pricing
Terms and Conditions of Contract
(SignatureRequired)
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Vector Resources, Inc. dba VectorUSA
California State License No. 654046
8647 Ninth Street, Rancho Cucamonga, CA 91730
(909) 931 1022
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VRN-084208-001
September 7, 2017
Vector USA1.0
1.1 Company Overview
VectorUSA (“Vector”) is a leading audio-visual and enterprise network systems integration
firm committed to delivering innovation and quality. With over 20 years of experience, we are
a turnkey systems provider, specializing in the design and implementation of high
performance communication solutions. We offer a wide range of services in the areas of
audio visual, structured communications cabling, wireless, surveillance, access control, Voice
over Internet Protocol (VoIP), network security, and remote monitoring.
Recognized widely for our engineering capabilities and management excellence, Vector’s team
consists of the 4 original partners and over 350 employees, including engineers, technical
personnel, business development and customer service agents. Vector is headquartered in
Torrance, California, with additional offices in San Diego, Rancho Cucamonga, and Tempe,
Arizona.
Vector’s certifications and partnerships allow us to serve as a full-service technology solution
provider. We maintain a C7 (low voltage), C10 (electrical), and a General Contractor “B”
license. Our business partners include Crestron, Christie Digital, AMP (one of the largest
ND&I contractor in the country), Extron, Avaya, Cisco, HP Networking, Hirsch, and other
world class solution vendors.
Codes and Standards2.0
2.1 Cost and Standards
VectorUSA will establish a project team comprised of individuals with knowledge and
experience relevant to this project. An experienced project manager or project coordinator
will head the project team to ensure that the project is on schedule and within budget
VectorUSA is also associated with InfoComm International, the association representing the
best practices of professional audiovisual and information communications industries
worldwide. Vector’s InfoComm certified individuals adhere to the CTS Code of Ethics and
Conduct with maintaining their status through continued manufacture education classes. In
addition, our audio visual technicians are certified and trained in the following equipment and
systems: Polycom, Cisco (Tandberg), Extron EAVA, Extron ECA, Extron XTP-E, Crestron DMC-
D, and Crestron DMC-E.
Page 3 of 12
Vector Resources, Inc. dba VectorUSA
California State License No. 654046
8647 Ninth Street, Rancho Cucamonga, CA 91730
(909) 931 1022
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VRN-084208-001
September 7, 2017
Audio Visual3.0
3.1 Scope of Work
VectorUSA is pleased to present the following proposal to San Bernardino Police Department,
located in San Bernardino, California.
The proposed scope of work (SOW) is based on client information gathered from
conversations, Onsite Meeting our experience with similar types of projects. The Lt. Office will
be designed to accommodate and provide the requested audio visual equipment needs.
The proposal includes the furnishing of all misc. materials, labor, transportation, tools,
permits, fees, utilities and incidentals necessary for the complete installation of all work
specified within this document.
Please note that the necessary onsite Audio Visual training will be held after the complete
installation of equipment and programming. The training will cover any areas of concern,
system functionality and standard use.
3.2
DISPLAY:
The Lt. Office will be outfitted with one (1) new wall mounted 1080p 60"display, The EOC
images and one (1) assigned cable TV feed will be shared with this office. The New Display
will use existing wall mount already on site.
System Elements
1 (1) 55" LED/LCD Display.
2 (1) Existing mount to be repurposed (already on site)
Page 4 of 12
Vector Resources, Inc. dba VectorUSA
California State License No. 654046
8647 Ninth Street, Rancho Cucamonga, CA 91730
(909) 931 1022
4.00
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VRN-084208-001
September 7, 2017
3.3
SOURCES:
Eight (8) Existing Video feeds from the EOC and one (1) OFE cable box will be available for
selection from the shared Matrix switcher from the EOC, which will repurposed for Switching
video and audio to the Lt. Office. The current Audio Visual (A/V) input and output will be used
for this area. Vector will provide one (1) HDMI Receiver to connect to the existing matrix
switcher to the display. One (1) extra input will be provide in the Lt office to display content
through the new 60" wall mounted display.
Video selections:
8 EOC Feeds
1 Cable TV
1 LT office PC feed
System Elements
1 (1) Existing XTP Output board (2 ports open)
2 (1) HDMI Receiver
3 (1) HDMI Transmitter
4 (1) Existing 32x32 will be repurposed.
3.4
AUDIO:
Audio sound will distribute through one (1) new ceiling mounted speakers and one (1) new
70Volt power amplifiers.
System Elements
1 (1) Ceiling mounted 70V ceiling speakers
2 (1) 70 Volt Audio Amplifier
Page 5 of 12
Vector Resources, Inc. dba VectorUSA
California State License No. 654046
8647 Ninth Street, Rancho Cucamonga, CA 91730
(909) 931 1022
4.00
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VRN-084208-001
September 7, 2017
3.5
CONTROLS:
One (1) existing Extron control processor will be used from the EOC and EOC Training room.
The EOC Office will accommodate one (1) existing 10” table top color touch panel, which will
be the main universal controller for this area only (location TBD). All custom programming
will be added to the existing design to accommodate simple and easy uses of controls for this
area only.
System Elements
1 (1) Existing 10” table top touch panel
2 (1) Existing Control processor to be repurposed (located in the EOC Rack)
Programming features will include:
1 Source switching/routing to 60” displays (noted video selection above)
2 Office System Power (w/Confirmation pages)
3 Office Audio Volume up/down
4 To include up to 2-3 Pages of Touch panel of GUI Design
3.6
RACK:
All new A/V equipment will be consolidated and housed in one (1) existing/shared wall Floor
standing equipment rack within the EOC.
System Elements
1. (1) GFE Floor Standing Rack
2. Rack Accessories
3.7 Existing Items
Vector assumes that others are responsible for any and all audio/visual Existing items are in
working condition and have the necessary connection points to accommodate new
functionality for the Audio System.
3.8 Lead Times
Audio Visual Equipment Standard lead time is 3-4 weeks after receipt of the purchase order.
Audio Visual Furniture lead time is 4-6 weeks after receipt of the purchase order
Page 6 of 12
Vector Resources, Inc. dba VectorUSA
California State License No. 654046
8647 Ninth Street, Rancho Cucamonga, CA 91730
(909) 931 1022
4.00
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VRN-084208-001
September 7, 2017
Project Parameters4.0
4.1 Workmanship Warranty
VectorUSA will ensure that all work is to be completed in a workmanlike manner according to
standard practices, and manufacture installation guidelines. The installation will be free from
defects in workmanship (except for those inherent in the quality of work the contract
documents require or permit) for a period of one (1) year (“Warranty Period”). This
workmanship warranty covers all workmanship defects related to installed work only. This
Workmanship Warranty does not apply to defects in goods or materials, any alterations or
deviations from the original installation by any party other than VectorUSA, defects caused by
negligence or lack of maintenance by any other party than VectorUSA, or any conditions
covered under Force Majeure.
4.2 Product Warranty
THIS AGREEMENT DOES NOT INCLUDE THE REPAIR OR REPLACEMENT OF ANY MATERIALS
OR GOODS FOR ANY REASON. Warranty for materials or goods, where applicable, are
provided directly by the manufacturer. It is the Customer responsibility to maintain the
materials or goods to manufacturer specifications to meet product warranty requirements.
4.3 Post-Installation Support
VectorUSA offers a range of cost-effective support options to assure that installed systems
are maintained once their system is operational. Options range from periodic onsite audits
and maintenance to comprehensive managed services. The Customer is encouraged to
contact their VectorUSA Account Executive to plan post-installation support.
4.4 Software and Operating System Errors
It is the responsibility of the Customer to ensure that all of its files are adequately backed up
and that all necessary materials are available, including manufacturer recovery media for
software and other software to be reloaded. In no way is VectorUSA liable for defects or
“bugs” in software, or for correcting errors introduced into the data, programs, or any other
software due to hardware failure, or for any cost of reconstructing software or lost data. Any
technical support required to restore data integrity or to make the system function, such as,
but not limited to, rebuilding corrupted records, examining files, re-installation of O/S or
Software, or re-indexing databases, will be billed separately on a Time and Materials basis.
VECTOR USA MAKES NO OTHER WARRANTIES, WHETHER WRITTEN, ORAL, OR IMPLIED,
INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE.
Page 7 of 12
Vector Resources, Inc. dba VectorUSA
California State License No. 654046
8647 Ninth Street, Rancho Cucamonga, CA 91730
(909) 931 1022
4.00
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VRN-084208-001
September 7, 2017
4.5 Force Majeure
VectorUSA shall not be liable for any failure or delay in furnishing goods, materials, analysis,
data, programs and services hereunder resulting from fire, explosion, flood, storm, Act of
God, governmental acts, orders or regulations, hostilities, civil disturbances, strikes, labor
difficulties, difficulty in obtaining parts, supplies, or shipping facilities, inability to obtain or
delays in obtaining suitable material or facilities required for performance, temporary
unavailability of qualified personnel, or any other causes beyond VectorUSA’s reasonable
control.
4.6 Access
Vector has access to all areas required to perform the proposed scope of work in a timely
manner.
4.7 Change Order
Any work that is added to or deleted from the original scope of this proposal and which alters
the original costs or completion date must be agreed upon by both parties in the form of a
written change order.
4.8 Electrical (Not Providing)
Vector assumes that others are responsible for all audio/visual (A/V) Electrical requirements.
The project manager will coordinate with the client/contractor prior to installation with the
electrical positioning, location and requirements for all AV needs.
4.9 Structural Support
Vector assumes that the current Structure is capable of supporting the weight of any of the
new devices that will be mounted to the wall or ceiling. If not structurally sound, the Client
will be responsible for any additional support necessary.
4.10 Delays
The client must provide five working days’ advance notice of any factor that will delay this
project or Vector will issue a work stoppage change order. Additionally, idle time incurred by
Vector due to the absence of required escorts, clearance, permits, inability to enter the work
place, delays by other trades or other factors beyond Vector’s control will be addressed with a
written change order.
4.11 Work Days/Overtime
This work will be performed during Vector's regular standard business hours of 7:00 a.m. to
5:00 p.m. Pacific Standard Time, Monday through Friday, except holidays. Work outside of
regular business hours is available, but requires a written change order.
Page 8 of 12
Vector Resources, Inc. dba VectorUSA
California State License No. 654046
8647 Ninth Street, Rancho Cucamonga, CA 91730
(909) 931 1022
4.00
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VRN-084208-001
September 7, 2017
4.12 Schedule
Vector plans to implement this project in a continuous fashion. If any additional mobilization
is required, as a result of a change in the project schedule, not caused by Vector, it will be
addressed with a written change order.
4.13 Asbestos/Hazardous Materials
Vector assumes that the installation teams will be working in areas that will not contain
asbestos or any other hazardous material that would require additional time or alternative
installation procedures.
It is the responsibility of the client to give written notification to Vector, prior to the start of a
project, of any asbestos contained material (ACMs) in or around the area of the project. In
the event that ACMs are present prior to job commencement or if ACMs are encountered
during the project, additional cost, damages and/or delays attributed to necessary procedures
for working in this environment will be the responsibility of the client.
4.14 Adequate Room
The client must provide adequate room for the installation of the proposed termination
hardwired at the station and in the communications closets.
4.15 Storage Area
The client will provide a secured storage area inside the building for Vector's materials and
tools.
4.16 Office Furniture
Vector will not be responsible for disassembling or moving desks or other office furniture to
gain proper access to perform installation tasks.
4.17 Ceiling Tile
Vector exercises care in the removal, storage and reinstallation of existing (used) ceiling tiles;
however, Vector accepts no liability for any incidental damages that may result from the
handling of ceiling tiles.
4.18 Existing Pathways
The client is responsible for ensuring that the existing conduit/pathway is free and clear from
defects. If the conduit/pathway is not free and clear from defects, the client will be
responsible for making it free and clear.
Vector can assist with making the existing conduit/pathway free and clear if requested by the
client in the form of a written change order.
Page 9 of 12
Vector Resources, Inc. dba VectorUSA
California State License No. 654046
8647 Ninth Street, Rancho Cucamonga, CA 91730
(909) 931 1022
4.00
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VRN-084208-001
September 7, 2017
4.19 Add & Delete
This proposal is not to be used as an "Add & Delete" schedule; it only applies to the work
specified in the original RFP. Any additional work requested will be considered as separate
work and addressed with a written change order.
4.20 Defective Materials
If there is a delay and/or Vector is unable to perform its scope of work, due to problems with
the existing hardware and/or materials provided by the client or other third parties, it will be
addressed with a written change order.
4.21 Extraordinary Service
Certain additional charges related to extraordinary levels of support or out-of-pocket costs
incurred by Vector, through no fault of its own, will be reimbursable by the client under this
agreement.
Examples of costs reimbursable under this section include, but are not limited to 1) shipping
expenses related to unusual site handling expenses (e.g. extra distance, no loading dock,
extra stairs, extra demurrage charges), 2) storage or special handling expenses incurred if an
installation site is not able to accept delivery as scheduled, 3) expenses incurred by Vector to
resolve network compatibility issues caused by a client’s election to substitute non-Vector
provided equipment or services, and 4) expenses incurred by Vector for additional installation
time and/or materials caused by a site not being prepared as called for in this proposal.
Vector shall promptly notify the client in writing of such charges. Notification will be
provided, when feasible, prior to the incurrence of such charges, unless circumstances
preclude such prior written notification (by way of example, but not limited to, unusual site
handling charges). Provided the incurrence of such charges is not due to Vector’s fault or
negligence, Vector shall be entitled to an equitable adjustment in the prices herein, the
delivery schedule, or both to reflect such charges and any related delay.
4.22 Proprietary Information
The information contained in this document is proprietary to Vector and intended to be used
as evaluative and/or bidding information only. No part of this document may be disclosed,
reproduced and/or distributed to anyone except the listed recipients within this package
without written permission from Vector.
Page 10 of 12
Vector Resources, Inc. dba VectorUSA
California State License No. 654046
8647 Ninth Street, Rancho Cucamonga, CA 91730
(909) 931 1022
4.00
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VRN-084208-001
September 7, 2017
DETAILED PRICING
60" Flat Pane 1080p LED/LCDl Display Sharp 1,232.20 1,232.20 90.00 1,322.20
EOC OFFICE
Manufacturer Unit Cost Material Labor Total
1
Quantity
XTP R HDMI XTP HDMI Receiver Extron 542.90 542.90 90.00 632.901
2-Way Ceiling Speakers w/8" Back Can (1 Pair)Extron 256.20 256.20 90.00 346.201
Mono 70/100 V Power Amplifier-40Watts Extron 274.50 274.50 90.00 364.501
XTP T HDMI XTP HDMI Transmitter Extron 725.90 725.90 90.00 815.90
Sub-Total 3,031.70 450.00 3,481.70
1
2 In J Hook W/ Multifunction Clip Erico 3.75 18.75 52.50 71.25
MISC. INSTALLATION MATERIALS
CEILING AREA Manufacturer Unit Cost Material Labor Total
5
Quantity
8 In Black Tie Wrap - 100 Pack Zack Electronics 4.88 4.88 15.00 19.88
ZIPTIES
Sub-Total 23.63 67.50 91.13
1
Shielded twisted pair cable for XTP Systems and Extron 1.47 294.00 420.00 714.00
CABLES, WIRES & CONNECTORS
CATE CABLE Manufacturer Unit Cost Material Labor Total
200
Quantity
Shielded RJ-45 Plug Kit for Extron XTP DTP 24 Extron 30.50 30.50 90.00 120.501
Cat5e Shielded Blue Cable-Plenum Covid 0.48 48.00 210.00 258.00100
Cat5 Shielded 8P8C Connector Liberty AV 1.21 4.84 60.00 64.844
18/2 Cable Speaker Cable Non Plenum Covid 0.14 7.00 105.00 112.00
AUDIO
50
HDMI Cable, high Speed with Ethernet, 6ft Covid 7.45 7.45 10.50 17.95
VGA & HDMI CABLES
1
HDMI Cable, high Speed with Ethernet,15ft Covid 16.26 32.52 21.00 53.52
Sub-Total 424.31 916.50 1,340.81
2
Freight Freight 237.90 237.90 0.00 237.90
FREIGHT
Manufacturer Unit Cost Material Labor Total
Sub-Total 237.90 0.00 237.90
1
Quantity
Design & Engineering Labor 0.00 0.00 960.00 960.00
LABOR
Manufacturer Unit Cost Material Labor Total
1
Quantity
Documentation Labor 0.00 0.00 880.00 880.001
Project Management Labor 0.00 0.00 880.00 880.001
Programming Labor 0.00 0.00 3,000.00 3,000.001
Systems Commissioning Labor 0.00 0.00 840.00 840.001
Training Labor 0.00 0.00 210.00 210.001
Mobilization Labor 0.00 0.00 180.00 180.00
Sub-Total 0.00 6,950.00 6,950.00
Project Sub-Total 3,717.54 8,384.00 12,101.54
Sales Tax 297.40
Project Total 12,398.94
1
Page 11 of 12
Vector Resources, Inc. dba VectorUSA
California State License No. 654046
8647 Ninth Street, Rancho Cucamonga, CA 91730
(909) 931 1022
5.00
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VRN-084208-001
September 7, 2017
TERMS AND CONDITIONS OF CONTRACT
All work is to be completed in a workmanlike manner according to standard practices. All material is to
be as specified. Any alterations or deviation from above specifications involving extra costs will be
executed only upon written orders, and will become an extra charge over the estimate. All agreements
contingent upon strikes, accidents or delays beyond our control will be settled in a formal agreement.
Owner is responsible to carry fire, tornado and other necessary insurance. Our workers are fully covered
by Workman's Compensation Insurance.
TERMS AND CONDITIONS
This proposal pricing is only valid for 30 days. Upon acceptance a purchase order is required and due
prior to commencement of work. Monthly progress invoices will be generated based on percentage of
completion and due Net 30. Balance will be invoiced upon substantial completion and due Net 30.
PAYMENT REQUIREMENTS
City of San Bernardino Police Department
710 North D Street
San Bernardino, CA 92401
The prices, specifications and conditions are satisfactory and are hereby accepted. You are authorized to
do the work as specified. Payment will be made as outlined above.
ACCEPTANCE OF PROPOSAL
Vector Resources, Inc. dba VectorUSA Authorized Signature Date
Authorized Signature Date
Print Name
$12,398.94Job Total
Page 12 of 12
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Consent Calendar
City of San Bernardino
Request for Council Action
Date: March 7, 2018
To: Honorable Mayor and City Council Members
From: Andrea M. Miller, City Manager
By: Teri Ledoux, Assistant City Manager
Rebekah Kramer, Administrative Services Officer
Subject: Charter Implementation – Changes to the City of San
Bernardino’s Boards, Commissions and Citizen Advisory
Committees Part III – FINAL READING
Recommendation
1. Accept for final reading and adopt Ordinance No. MC-1468, an Ordinance of the
Mayor and City Council of the City of San Bernardino, California, repealing
Chapter 2.26 of the San Bernardino Municipal Code related to the Animal Control
Commission.
2. Accept for final reading and adopt Ordinance No. MC-1469, an Ordinance of the
Mayor and City Council of the City of San Bernardino, California, amending
Chapter 6.14 of the San Bernardino Municipal Code related to Administrative
Citations.
3. Accept for final reading and adopt Ordinance No. MC-1470, an Ordinance of the
Mayor and City Council of the City of San Bernardino, California, amending
Chapter 6.09 of the San Bernardino Municipal Code related to Vicious and
Potentially Dangerous Dogs.
4. Accept for final reading and adopt Ordinance No. MC-1471, an Ordinance of the
Mayor and City Council of the City of San Bernardino, California, repealing
Chapter 2.34 and Chapter 2.39 of the San Bernardino Municipal Code related to
the Board of Police Commissioners and the Human Relations Commission.
5. Accept for final reading and adopt Ordinance No. MC-1472, an Ordinance of the
Mayor and City Council of the City of San Bernardino, California, amending and
renaming Chapter 5.82 of the San Bernardino Municipal Code related to
“Operator Permit Regulations.”
6. Accept for final reading and adopt Ordinance No. MC-1473, an Ordinance of the
Mayor and City Council of the City of San Bernardino, California, amending
Chapter 2.22 of the San Bernardino Municipal Code related to the “Planning
Commission.”
7. Accept for final reading and adopt Ordinance No. MC-1474, an Ordinance of the
Mayor and City Council of the City of San Bernardino, California, amending
Municipal Code Chapter 2.45 Building and Accessibility Appeals Board and
repealing Resolution No.94-254.
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Background
On February 21, 2018, the Mayor and City Council accepted for first reading the
following Municipal Code Changes:
1. An Ordinance repealing Municipal Code Chapter 2.26 Animal Control
Commission.
2. An Ordinance amending Chapter 6.14 Administrative Citations.
3. An Ordinance amending Chapter 6.09 Vicious and Potentially Dangerous Dogs.
4. An Ordinance repealing Municipal Code Chapters 2.34 Board of Police
Commissioners and 2.39 Human Relations Commission.
5. An Ordinance amending Municipal Code Chapter 5.82 Operator Permit
Regulations.
6. An Ordinance amending Municipal Code Chapter 2.22 Planning Commission.
7. An Ordinance amending Municipal Code Chapter 2.45 Building and Accessibility
Appeals Board and repealing Resolution No.94-254.
The Mayor and City Council also approved Resolutions establishing the following
Commissions:
1. Animal Control Commission
2. Parks, Recreation and Community Services Commission
3. Public Safety and Human Relations Commission
Discussion
Implementation of the new Charter requires changes to the Municipal Code provisions
related to the boards, commissions, and committees. This presents an opportunity for
the Mayor and City Council to review the existing advisory body system and make
changes that ensure continued public involvement in the decision-making process by
enhancing the experience and creating meaningful opportunities.
This review process was initiated during the strategic planning workshop held in
November 2017. Given the resources required to effectively support each citizen
advisory body, direction was provided by the Mayor and City Council to reexamine the
responsibility of each of our City’s advisory groups, reduce the number of advisory
bodies and consolidate the areas of responsibility for each advisory body to ensure that
we focus our efforts and are able to continue to provide meaningful opportunities for
citizen participation and input in the City’s policy decisions. These changes started with
the ordinance presented to the Mayor and City Council on January 17, 2018 updating
the general provisions for Boards, Commissions and Citizen Advisory Committees
contained in Municipal Code Chapter 2.17. The proposed changes to specific boards,
commissions and committees began on February 7, and February 21, 2018 at which
time the Mayor and City Council directed staff to move forward with the following:
1. Establishment of the Elected Official Compensation Advisory Commission;
2. Dissolution of the Relocation Appeals Board;
3. Dissolution of the Food Policy Council;
4. Dissolution of the Disaster Council;
5. Dissolution of the Community Development Commission;
6. Consolidation of the Senior Affairs and Parks and Recreation Commissions
under the Parks, Recreation and Community Services Commission;
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Packet Pg. 619 Attachment: CM.Charter Implementation - FINAL READING - Changes to City Boards, Commissions & Citizen Advisory Committees Staff Report
7. Consolidation of the Historical Preservation and Fine Arts Commissions under an
Arts & Cultural Heritage Commission;
8. Consolidation of the Board of Building Commissioners and the Handicap
Accessibility Appeals Board under the Building & Accessibility Appeals Board;
9. Consolidation of the Human Relations Commission and the Board of Police
Commissioners under the Public Safety and Human Relations Commission;
10. Update of Municipal Code Chapter 5.82 pertaining to Operator Permits to
eliminate permit requirements for services monitored or governed by other
regulatory agencies or other portions of the Municipal Code. Operator permit
appeals under this section of the Municipal Code will be referred to the City
Manager;
11. Change in the scope of responsibility assigned to the Animal Control Commission to
focus on animal shelter service and refer appeals associated with administrative
citations and dangerous animals to a Hearing Officer; and
12. Establishment of operating guidelines for the Planning Commission requiring that
recommendations for approval of General Plan amendments or amendments to
the Municipal Code be made by an affirmative vote of not less than a majority of
the total membership of the commission.
Fiscal Impact
The costs related to the Charter implementation services were approved by the Mayor
and City Council at the February 23, 2017, meeting.
Conclusion
1. Accept for final reading Ordinance No. MC-1468, an Ordinance of the Mayor and
City Council of the City of San Bernardino, California repealing Municipal Code
Chapter 2.26 Animal Control Commission.
2. Accept for final reading Ordinance No. MC-1469, an Ordinance of the Mayor and
City Council of the City of San Bernardino, California amending Chapter 6.14
Administrative Citations.
3. Accept for final reading Ordinance No. MC-1470, an Ordinance of the Mayor and
City Council of the City of San Bernardino, California amending Chapter 6.09
Vicious and Potentially Dangerous Dogs.
4. Accept for final reading Ordinance No. MC-1471, an Ordinance of the Mayor and
City Council of the City of San Bernardino, California repealing Municipal Code
Chapters 2.34 Board of Police Commissioners and 2.39 Human Relations
Commission.
5. Accept for final reading Ordinance No. MC-1472, an Ordinance of the Mayor and
City Council of the City of San Bernardino, California amending Municipal Code
Chapter 5.82 Operator Permit Regulations.
6. Accept for final reading Ordinance No. MC-1473, an Ordinance of the Mayor and
City Council of the City of San Bernardino, California amending Municipal Code
Chapter 2.22 Planning Commission.
7. Accept for final reading Ordinance No. MC-1474, an Ordinance of the Mayor and
City Council of the City of San Bernardino, California amending Municipal Code
Chapter 2.45 Building and Accessibility Appeals Board and repealing Resolution
No.94-254.
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Attachments
Attachment 1 – Ordinance No. MC-1468 repealing Municipal Code Chapter 2.26
Animal Control Commission
Attachment 2 – Ordinance No. MC-1469 amending Chapter 6.14 Administrative
Citations
Attachment 3 – Ordinance No. MC-1470 amending Chapter 6.09 Vicious and
Potentially Dangerous Dogs
Attachment 4 - Ordinance No. MC-1471 repealing Municipal Code Chapters 2.34
Board of Police Commissioners and 2.39 Human Relations Commission
Attachment 5 - Ordinance No. MC-1472 amending Municipal Code Chapter 5.82
Operator Permit Regulations
Attachment 6 - Ordinance No. MC 1473 amending Municipal Code Chapter 2.22
Planning Commission
Attachment 7 - Ordinance No. MC-1474 amending Municipal Code Chapter 2.45
Building and Accessibility Appeals Board and repealing Resolution 94-254
Synopsis of Previous Council Actions:
1. 6/7/17 - Ordinance MC-144 adopted - Chapter 2.50 Personnel Commission
2. 12/6/17 - Resolution No. 2017-239 adopted dissolving the Community Development
Citizen Advisory Committee
3. 1/17/18 - First reading of Ordinances repealing and replacing Municipal Code Chapters
2.17 Boards, Commissions and Citizen Advisory Committees and 2.75 City Council Sub-
Committees
4. 2/7/18 –
a. Resolution No. 2018-38 adopted dissolving the Food Policy Council
b. Final reading and adoption of Ordinances amending Municipal Code Chapters 2.17
Boards, Commissions and Citizen Advisory Committees and 2.75 City Council Sub-
Committees:
i. Ordinance No. MC-1454, amending Municipal Code Chapter 2.17, Boards,
Commissions and Citizen Advisory Committees – General
ii. Ordinance No. MC-1455, amending Municipal Code Chapter 2.76, City
Council Sub-Committees
c. First reading of Ordinances amending or repealing and replacing Municipal Code
Chapters pertaining to the following Boards and Commissions:
i. Ordinance No. MC-1458, repealing Municipal Code Chapters 2.18 Parks,
Recreation and Community Services Department, 2.30 Fine Arts
Commission and 2.49 Senior Affairs Commission.
ii. Ordinance No. MC-1459, repealing Municipal Code Chapters 2.31
Relocation Appeals Board; 2.40 Community Development Commission;
and 2.46 Disaster Council.
iii. Ordinance No. MC-1460, repealing Municipal Code Chapter 2.23 Historical
Preservation Commission.
iv. Ordinance No. MC-1463, amending Municipal Code Chapter 2.19
establishing an Elected Official Compensation Advisory Commission.
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Synopsis of Previous Council Actions Continued:
1. 2/21/18 –
a. Resolution No. 2018-45 adopted establishing the Animal Control Commission.
b. Resolution No. 2018-46 adopted establishing the Public Safety and Human
Relations Commission
c. Resolution No. 2018-47 adopted establishing the Parks, Recreation and
Community Services Commission
d. Final reading and adoption of Ordinances repealing and replacing Municipal Code
Chapters pertaining to the following Boards, Commissions and Citizen Advisory
Committees :
i. Ordinance No. MC-1458, repealing Municipal Code Chapters 2.18 Parks,
Recreation and Community Services Department, 2.30 Fine Arts
Commission and 2.49 Senior Affairs Commission.
ii. Ordinance No. MC-1459, repealing Municipal Code Chapters 2.31
Relocation Appeals Board; 2.40 Community Development Commission;
and 2.46 Disaster Council.
iii. Ordinance No. MC-1460, repealing Municipal Code Chapter 2.23 Historical
Preservation Commission.
iv. Ordinance No. MC-1463, amending Municipal Code Chapter 2.19
establishing an Elected Official Compensation Advisory Commission.
e. First reading of Ordinances amending or repealing and replacing Municipal Code
Chapters pertaining to the following Boards and Commissions:
i. Ordinance No. MC-1468 repealing Municipal Code Chapter 2.26 Animal
Control Commission
ii. Ordinance No. MC-1469 amending Chapter 6.14 Administrative Citations
iii. Ordinance No. MC-1470 amending Chapter 6.09 Vicious and Potentially
Dangerous Dogs
iv. Ordinance No. MC-1471 repealing Municipal Code Chapters 2.34 Board of
Police Commissioners and 2.39 Human Relations Commission
v. Ordinance No. MC-1472 amending Municipal Code Chapter 5.82 Operator
Permit Regulations
vi. Ordinance No. MC 1473 amending Municipal Code Chapter 2.22 Planning
Commission
vii. Ordinance No. MC-1474 amending Municipal Code Chapter 2.45 Building
and Accessibility Appeals Board and repealing Resolution 94-254
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ORDINANCE NO. ---
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ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA AMENDING CHAPTER 2.45 OF THE SAN
BERNARDINO MUNICIPAL CODE TO CREATE THE "BUILDING AND
ACCESSIBILITY APPEALS BOARD" AND REPEALING RESOLUTION NO. 94-254
WHEREAS, the People of the City of San Bernardino adopted a new Charter at the
November 8, 2016 municipal election; and
WHEREAS, the new Charter was filed with the California Secretary of State on
January 31, 2017 and became effective on that date; and
WHEREAS, the City Council in implementing the new Charter provisions has 9 evaluated the community's need for various committees and commissions and desires to
10 eliminate some bodies and consolidate others to increase efficiency and preserve scarce
resources; and 11
WHEREAS, the City Council has determined that the functions of the Board of 12 Building Commissioners and the Handicap Accessibility Appeals Board ( established by
13 Resolution No. 94-254) should be combined and performed by a single body to be called the
Building and Accessibility Appeals Board; and 14
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WHEREAS, the City Council desires to amend Chapter 2.45 to effectuate this
consolidation and otherwise make the Chapter consistent with the new Charter.
NOW, THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO DO ORDAIN AS FOLLOWS:
SECTION 1. Chapter 2.45 of the San Bernardino Municipal Code is hereby
amended to read in its entirety as follows:
Chapter 2.45
BUILDING AND ACCESSIBLITY APPEALS BOARD
Sections:
2.45.010 Members-Appointment
2.45.020 Terms of Office
2.45.030 Duties
2.45.040 Judicial Review
2.45.050 Oath of Office
2.45.060 Chair-Meetings-Absences
2.45.070 Quorum
2.45.010 Members -Appointment
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Consent Calendar
City of San Bernardino
Request for Council Action
Date: March 7, 2018
To: Honorable Mayor and City Council Members
From: Andrea M. Miller, City Manager
By: Teri Ledoux, Assistant City Manager
Rebekah Kramer, Administrative Services Officer
Subject: Charter Implementation – Personnel System and Business
Registration and Treasury Division Transfer Part I – FINAL
READING
Recommendation
1. Accept for final reading and adopt Ordinance No. MC-1475, an Ordinance of the
Mayor and City Council of the City of San Bernardino, California, repealing and
replacing Municipal Code Chapter 2.04 related to the Human Resources
Department to establish a Personnel System.
2. Accept for final reading and adopt Ordinance No. MC-1476, an Ordinance of the
Mayor and City Council of the City of San Bernardino, California, repealing and
replacing Chapter 2.08 of the San Bernardino Municipal Code related to City
Treasurer.
3. Accept for final reading and adopt Ordinance No. MC-1477, an Ordinance of the
Mayor and City Council of the City of San Bernardino, California, amending
Chapter 2.10 of the San Bernardino Municipal Code related to the Department of
Finance.
Background
On February 21, 2018, the Mayor and City Council accepted for first reading the
following Municipal Code changes:
1. An Ordinance repealing and replacing Municipal Code Chapter 2.04 Personnel
System.
2. An Ordinance amending Municipal Code Chapter 2.08 Treasurer.
3. An Ordinance amending Municipal Code Chapter 2.10 Department of Finance.
Discussion
Personnel System
The proposed amendment to Municipal Code Chapter 2.04 provides a definition for
those employees serving in classified and unclassified service within the City in keeping
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with the provisions held within the former City Charter (Article XII, Section 248). Under
the proposed amendment to Chapter 2.04 classified service includes all regular full-time
employees not specifically identified in the unclassified service. Unclassified service
includes those positions associated with part-time, temporary and seasonal employment
as well as the following City officers and employees:
1. Elected officials;
2. Any position appointed by the Mayor and City Council including the
City Manager, City Clerk and City Attorney;
3. Any persons appointed as deputies or assistants of elected or
appointed officers, regardless of job title or to whom they report;
4. Any persons appointed as Assistant City Manager, Deputies or other
Assistants of the City Manager;
5. Any persons appointed as heads of departments or heads of
department divisions;
6. One assistant for each department and one assistant for the City
Manager;
7. Any persons appointed to a board or commission.
Treasury and Business Registration Division Transfer
The new City Charter eliminates the position of elected City Treasurer and assigns to
the City Clerk a limited scope of responsibility which does not include the functions of
the Business Registration Division. For this reason, the Treasury and Business
Registration Divisions are being transferred to the Finance Department as the functions
of the Department align with the services provided by each of these Divisions. The
changes in the scope of responsibly assigned to the Finance Department are reflected
in the proposed amendments to Municipal Code Chapters 2.08 Treasurer and 2.10
Department of Finance.
Fiscal Impact
The costs related to the Charter implementation services were approved by the Mayor
and City Council at the February 23, 2017 City Council meeting.
Conclusion
1. Accept for final reading Ordinance No. MC-1475, an Ordinance of the Mayor and
City Council of the City of San Bernardino, California repealing and replacing
Municipal Code Chapter 2.04 Personnel System;
2. Accept for final reading Ordinance No. MC-1476, an Ordinance of the Mayor and
City Council of the City of San Bernardino, California repealing and replacing
Municipal Code Chapter 2.08 Treasurer; and
3. Accept for final reading Ordinance No. MC-1477, an Ordinance of the Mayor and
City Council of the City of San Bernardino, California amending Municipal Code
Chapter 2.10 Department of Finance.
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Attachments
Attachment 1 – Ordinance No. MC-1475 repealing and replacing Municipal Code
Chapter 2.04 Personnel System
Attachment 2 – Ordinance No. MC-1476 repealing and replacing Municipal Code
Chapter 2.08 Treasurer
Attachment 3 – Ordinance No. MC-1477 amending Municipal Code Chapter 2.10
Department of Finance
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Staff Report
City of San Bernardino
Request for Council Action
Date: March 7, 2018
To: Honorable Mayor and City Council Members
From: Andrea M. Miller, City Manager
By: Brent A. Mason, Director of Finance
Subject: MID-YEAR FINANCIAL REVIEW – FISCAL YEAR 2017/18
Recommendation
Adopt Resolution of the Mayor and City Council of the City of San Bernardino approving
and adopting the City of San Bernardino’s Fiscal Year 2017/18 Budget Update and
related budget amendment action.
Background
The Mayor and City Council adopted the budget for fiscal year 2017/18 in June 2017.
For the General Fund, it was balanced with a minor surplus. All other funds were either
balanced with revenues being generated in 2017/18 or by utilizing funds on hand from
previous years. The Mayor and City Council typically receive a mid-year update report
projecting how the current fiscal year is anticipated to end in relation to the adopted
budget. The mid-year report is also an opportunity to make budgetary adjustments
necessitated by either the current year’s actual financial needs or to adjust budgetary
items not handled during the original budget development and approval.
Discussion
General Fund – Revenues and Expenditures
As noted above, the General Fund budget was adopted as balanced, with a minor
surplus of $108,000. The adopted budget reflected estimated Available Reserves of
$25,000,000 and those were not anticipated to be required to execute the operations of
the City of San Bernardino for fiscal year 2017/18. Note that the total Available Reserve
was estimated at $31,000,000, which includes $6,000,000 that is set aside to cover
ongoing bankruptcy related costs for settlements and administrative expenditures.
During the year, the budget was amended by the Mayor and City Council which has
increased both budgeted revenues and expenditures. The increases to the expenditure
budget were greater than those for revenue, causing the amended budget to reflect a
deficit position of $1,400,000. This means that the amended budget intends to make a
draw on the Available Reserve by that amount.
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Staff has reviewed all General Fund revenues and interacted with the City departments
relative to their expenditure budgets to form this forecast for the presentation to the
Mayor and City Council. That forecast projects revenues for fiscal year 2017/18 ending
the year at $3,689,000 better than currently budgeted. Further, the forecast of
expenditures by City departments projects spending of approximately $4,800,000 less
than the current amended budget. Together, these two items eliminate the planned
$1,400,000 draw on reserves and anticipate growing the level of Available Reserves by
$7,100,000 to more than $32,000,000.
Positive revenue variances are being experienced in most categories, but the most
significant items are in Utility Users’ Tax ($400,000), Licenses and Permits ($335,000),
Transient Occupancy Tax ($400,000) and Other Taxes ($349,000), made up of a variety
of smaller items, but primarilty Tow Fees and Property Transfer Taxes. Two other
significant positive variances are in Rental/Investment Income ($748,000) and
Transfers-In ($590,000). Rental and Investment Income reflets an upswing in interest
rates and a more accurate reflection of the rental income being generated by the former
EDA assets now being managed by the City. Offsetting that increase are the
expenditures associated with owning and managing those assets. The Transfers-In line
reflects a one-time reimbursement of expenditures incurred in the prior year (Fiscal
Year 2016/17) for which bond proceeds exist to reimburse the General Fund.
Similarly, most City departments are participating in the expenditure savings being
experienced this fiscal year. The Police Department, representing 61% of the General
Fund, accounts for nearly $3,000,000 of the expenditure savings. Other significant
positive variances are in the General Government department and in Debt Service. The
attachment includes detailed footnotes explaining these variances, but generally, salary
savings continue to be the most significant savings item as the City makes consistent,
but gradual progress toward filling vacant positions on a net basis.
Other Funds
Most budgetary attention typically falls to the General Fund during fiscal reviews as it is
the most significant portion of the budget. However, it is also important to review the
other funds that make up the complete picture of the City’s operations. Exhibit A to this
report includes a summary of the opening financial position, projected revenues and
expenditures, and finally a projection of what that fund’s ending financial position will be
at June 30, 2018. This includes the following funds:
• Gas Tax Fund
• Measure I Fund
• Animal Control Fund
• General Liability Fund
• Workers’ Compensation Fund
• Fleet Services Fund
• Information Technology Fund
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No budgetary amendments are proposed associated with these funds and their fiscal
positions for the current year.
Capital Funds
In recent years, the City’s capital expenditure programs have been lightly expended as
it has navigated the Chapter IX bankruptcy proceedings. However, funds have
continued to be collected in these funds and are available for projects. The Capital
Funds page of Attachment 2 is intended to share with the Mayor and City Council,
projected balances at June 30, 2018 for several of it’s capital funds. Collectively there
is more than $32 million available to help address City needs as projects move through
the planning stages and ultimately to construction.
Finance Department staff will make a detailed presentation of this information to the
Mayor and City Council. Exhibit A, which is Attachment 2 to this report, provides
detailed information relative to the current year’s revenues and expenditures, as well as
net financial position (Available Reserves). A presentation of this information will be
given at the City Council meeting.
Fiscal Impact
This report communicates to the Mayor and City Council that the City’s General Fund
anticipates adding more than $7 million to its Available Reserves by June 30, 2018.
That forecast anticipates three budget adjustments necessary to resolve situations not
occurring as planned in the Fiscal Year 2017/18 Adopted Budget as approved by the
Mayor and City Council. Those items are:
Economic Develoment and Housing - $300,000 budget add
• At the time the FY 2017/18 budget was developed, staff estimated the costs for this
new City department at $450,000. However, when the Mayor and City Council
approved the reorganization and related budget transfers, staff identified other costs
and related revenues that needed to also be accounted for in the budget. This
request asks for $300,000 of additional funding to augment this department’s budget
for the balance of fiscal year 2017/18. Note also, there is corresponding revenue
added to the revenue projections associated with rental income generated by the
former EDA properties..
City Clerk - $100,000 budget add
• The June 2018 election was not budgeted for in the development of the Fiscal Year
2017/18 operating budget. The Clerk has recently received the cost estimate from
the County Clerk, and while that cost will not be paid until the next fiscal year, it will
be a cost attributed to the current fiscal year based on accounting rules, and thus
needs to be budget for in this fiscal year.
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Public Works - $400,000 budget transfer
• The department budgeted $400,000 in the Street Maintenance Division that can be
used for two more immediately pressing needs and the department is requesting
these funds to be reprogrammed for the projects noted below:
o $200,000 to Tree Maintenance
o $200,000 to Concrete Maintenance
Conclusion
It is recommended that the City Council adopt the Resolution authorizing amendments
to the Adopted 2017/18 Operating Budget as noted within this report.
Attachments
Attachment 1 – Resolution
Attachment 2 – Exhibit A
Ward: All Wards
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RESOLUTION NO. 1
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN 2 BERNARDINO, CALIFORNIA, APPROVING AND ADOPTING THE CITY OF SAN
3 BERNARDINO’S FISCAL YEAR 2017/18 BUDGET UPDATE AND RELATED BUDGET
AMENDMENT ACTION 4
WHEREAS, the FY 2017/18 Budget Update provides for service levels necessary to 5
6 provide a m yriad of municipal services, including the abilit y to respond to protect the health,
7 safet y and welfare of the community, qualit y of life services, administrative services and others
8 which are deemed appropriate by the Mayor and City Council, and concurrentl y provides a work
9 force to accomplish them; and
10 WHEREAS, the City Council intends to use the FY 2017/18 Budget Update document 11
12 as a guide for determining the allocation of resources to meet these various City priorities.
13 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
14 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
15 Section 1. That the certain document entitled “City of San Bernardino Fiscal Year
16 2017/18 Budget Update and Related Budget Amendment Action”, as attached hereto and 17
incorporated herein as Exhibit “A” is hereby approved and adopted as the FY 2017/18 Budget 18
19 Update and Related Budget Amendment Action document of the City of San Bernardino.
20 Section 2. That the budget amendment as documented in the attached Exhibit “A” is
21 hereb y approved and the Director of Finance is authorized to amend the FY 2017/18 Budget to
22 include this Amendment. 23
Section 3. This Resolution shall take effect upon the date of its adoption. 24
25 ///
26 ///
27 ///
28 ///
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN 1 BERNARDINO, CALIFORNIA, APPROVING AND ADOPTING THE CITY OF SAN
BERNARDINO’S FISCAL YEAR 2017/18 BUDGET UPDATE AND RELATED BUDGET 2 AMENDMENT ACTION
3
4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
5 City Council of the City of San Bernardino at a meeting thereof, held on the
day of
6 , 2018, by the following vote, to wit:
7 Council Members: AYES NAYS ABSTAIN ABSENT 8
9 MARQUEZ
10 BARRIOS
11 VALDIVIA
12 SHORETT
13 NICKEL 14
RICHARD 15
16 MULVIHILL
17
18 Georgeann Hanna, CMC, City Clerk
19 The foregoing Resolution is hereb y approved this 20
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Approved as to form: 24 Gary D. Saenz, City Attorney
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26 By:
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2
day of
R. Carey Davis, Mayor
City of San Bernardino
, 2018.
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Staff Report
City of San Bernardino
Request for Council Action
Date: March 7, 2018
To: Honorable Mayor and City Council Members
From: Andrea M. Miller, City Manager
By: Robin Ohama, Acting General Manager, Water Department
Terri Willoughby, Water Department Director of Finance
Subject: Comprehensive Annual Financial Report of the City of San
Bernardino Municipal Water Department for the Fiscal Year
ended June 30, 2017.
Recommendation
Receive and file the audited Comprehensive Annual Financial Report of the Water
Department’s Water, Sewer, and Sewer Collection Utilities for the Fiscal Year ended
June 30, 2017.
Background
Section 603 (e) of the City of San Bernardino Charter requires that the Board of Water
Commissioners are to provide for an “annual, independent audit of all water and
wastewater accounts" and that copies of all auditors’ reports shall be on file with the City
Clerk and Council.
The audit firm of Davis Farr, LLP completed the Department’s audit on December 21,
2017 and presented a report to the Board of Water Commissioners at their January 9,
2018 meeting. Attached for your information is the Department’s Comprehensive
Annual Financial Report (CAFR) for the Fiscal Year ended June 30, 2017. This report
includes the financial statements, the Independent Auditor’s Report, Management’s
Discussion and Analysis, as well as a statistical section containing historical information
and data. The 2017 CAFR includes activities related to the Sewer Collection Utility
which was transferred to the Department on May 1, 2017.
The Department’s CAFR received the Government Finance Officers Association
Certificate of Achievement for Excellence in Financial Report for the first time for its
2016 report. The Certificate of Achievement is the highest form of recognition in
governmental accounting and financial reporting, and its attainment represents a
significant accomplishment for the Department.
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Fiscal Impact
None.
Conclusion
Receive and file.
Attachments
Attachment 1 – Comprehensive Annual Financial Report of the City of San Bernardino
Municipal Water Department, a Department of the City of San Bernardino, California.
Ward:
Synopsis of Previous Council Actions:
Similar action taken each year following completion of the annual audit.
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CITY OF SAN BERNARDINO
MUNICIPAL WATER DEPARTMENT,
A DEPARTMENT OF THE CITY OF
SAN BERNARDINO
Comprehensive
Annual
Financial
Report
For The Fiscal Year Ended June 30, 2017
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CITY OF SAN BERNARDINO
MUNICIPAL WATER DEPARTMENT
Comprehensive Annual Financial Report
For year ending June 30, 2017
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City of San Bernardino Municipal Water Department
Comprehensive Annual Financial Report
Fiscal Year Ending June 30, 2017
Table of Contents
Page No.
Introductory Section:
Letter of Transmittal i
GFOA Certificate of Achievement vi
Organizational Chart vii
List of Elected and Appointed Officials viii
Financial Section:
Independent Auditor’s Report 1
Management’s Discussion and Analysis 5-12
Basic Financial Statements:
Statement of Net Position 14-15
Statement of Revenues, Expenses and Changes in Net Position 16
Statement of Cash Flows 17-18
Notes to the Basic Financial Statements 19-45
Required Supplementary Information:
Schedule of Changes in Net Position Liability and Related Ratios 47
Schedule of Plan Contributions 48
Statistical Section:
Changes in Net Position – Combined Funds 52
Changes in Net Position – Water Fund 53
Changes in Net Position – Sewer Fund 54
Changes in Net Position – Sewer Collection Fund 55
Net Position by Component – Combined 56
Net Position by Component – Water Fund 57
Net Position by Component – Sewer Fund 58
Net Position by Component – Sewer Collection Fund 59
Water Fund Revenue by Type 60
Sewer Fund Revenue by Type 61
Sewer Collection Fund Revenue by Type 62
Water Fund Expenses by Type 63
Sewer Fund Expenses by Type 64
Sewer Collection Fund Expense by Type 65
Water Fund Debt Service Coverage 67
Sewer Fund Debt Service Coverage 68
Ratios of Outstanding Debt by Type 69
Demographic Statistics 71
Major Employers 72
Authorized Positions History 73
Water Rates: Minimum Monthly Charge 75
Water Connections and Revenues by User Types 76
Water Rates – Elevation Charges per HCF 77
Top Ten Water Consumers 78
Sewage Treatment Rate History 79
Sewage Treatment Connections and Revenue by User Type 80
Top Ten Sewage Treatment Customers 81
Sewer Collection Rate History 82
Sewer Collection Connections and Revenue by User Type 83
Top Ten Sewer Collection Customers 84
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viii
City of San Bernardino Municipal Water Department
Mayor of the City of San Bernardino
R. Carey Davis
Board of Water Commissioners
Toni Callicott, President
David E. Mlynarski, Commissioner
Dr. Louis A. Fernandez, Commissioner
Wayne Hendrix, Commissioner
Dr. Judith Valles, Commissioner
Administration
Robin L. Ohama, General Manager
Miguel Guerrero, Director of Water Utilities
Kevin Stewart, Director of Water Reclamation
Terri Willoughby, Director of Finance
Jennifer Shepardson, Director of Environmental and Regulatory
Compliance
Mission Statement
To meet our customer's needs by providing high-quality service in water
supply, water reclamation and geothermal heating in the most professional
and cost-effective manner possible.
Organization
The City of San Bernardino Municipal Water Department was formed in 1905
under the Charter of the City of San Bernardino. The Department is
governed by the Board of Water Commissioners who are appointed by the
Mayor of the City of San Bernardino. The Charter gives the Board of Water
Commissioners semi-autonomous authority to govern the Department
independent of the City Council. The Department operates two enterprise
funds: the Water Utility Enterprise Fund and the Sewer Utility Enterprise
Fund. Water service encompasses the City, with the exception of the east
end, which is served by the East Valley Water District. Sewer service
encompasses all of the City of San Bernardino, the City of Loma Linda, the
former Norton Air Force Base, Patton State Hospital and portions of the
areas serviced by East Valley Water District.
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1
Board of Water Commissioners
Municipal Water Department of the City of San Bernardino
San Bernardino, California
Independent Auditor’s Report
Report on the Financial Statements
We have audited the accompanying financial statements of each major fund of the Municipal Water
Department of the City of San Bernardino, California (“Department”), as of and for the year ended June
30, 2017, and the related notes to the financial statements, which collectively comprise the Department’s
basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
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Board of Water Commissioners
Municipal Water Department of the City of
San Bernardino, California
Page 2 of 3
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of each major fund of the Municipal Water Department of the City of San
Bernardino, California, as of June 30, 2017, and the changes in its financial position and its cash flows
for the year then ended in accordance with accounting principles generally accepted in the United States
of America.
Emphasis of Matters
As discussed in Note 1, the financial statements of the Municipal Water Department of the City of San
Bernardino (“Department”) are intended to present the financial position, the changes in financial position
and cash flows of only that portion of each major fund of the City of San Bernardino, California that are
attributable to the transactions of the Department. They do not purport to, and do not, present fairly the
financial position of the City of San Bernardino as of June 30, 2017, the changes in its financial position,
or its cash flows for the year then ended in conformity with accounting principles generally accepted in
the United States of America. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, the schedule of changes in net pension liability, and the schedule of plan
contributions be presented to supplement the basic financial statements. Such information, although not
a part of the basic financial statements, is required by the Governmental Accounting Standards Board
who considers it to be an essential part of financial reporting for placing the basic financial statements in
an appropriate operational, economic, or historical context. We have applied certain limited procedures
to the required supplementary information in accordance with auditing standards generally accepted in
the United States of America, which consisted of inquiries of management about the methods of preparing
the information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because
the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Department’s basic financial statements. The introductory section and the statistical section
are presented for purposes of additional analysis and are not a required part of the basic financial
statements. The introductory and the statistical sections have not been subjected to the auditing
procedures applied in the audit of the basic financial statements, and accordingly, we do not express an
opinion or provide any assurance on it.
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Board of Water Commissioners
Municipal Water Department of the City of
San Bernardino, California
Page 3 of 3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 21,
2017 on our consideration of the Department’s internal control over financial reporting and on our tests
of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the Department’s internal control over
financial reporting and compliance.
Irvine, California
December 21, 2017
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PAGE INTENTIONALLY LEFT BLANK
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MANAGEMENT’S DISCUSSION AND ANALYSIS
The City of San Bernardino’s Municipal Water Department (Department) is a water, sewer treatment
and sewer collections utility responsible for delivering high quality, economically priced water, sewer
treatment and sewer collections services to a quarter of a million customers in and around the City of
San Bernardino, California. This section of the Department’s annual financial report presents
management’s analysis of the Department’s financial performance during the fiscal year that ended on
June 30, 2017. Please read it in conjunction with the basic financial statements, which follow this
section. All amounts in the Management’s Discussion and Analysis within text areas are in
thousands unless otherwise noted.
Financial Highlights
Other highlights:
• The Department’s overall net position increased by $33 million.
• Operating revenues increased $9.1 million, or more than 16% from the prior year, primarily due
to the addition of the Sewer Collection Utility as well as Water Utility rate increases approved
and implemented within the fiscal year.
• Operating expenses increased $8.3 million from the prior fiscal year. Of this total, $1 can be
attributed to the addition of the Sewer Collection Utility during the fiscal year, with the balance
made up of increases of $2.2 million in the Water Utility Fund and $5.4 million in the Sewer
Utility.
• Net income/loss before capital contributions increased by $7.1 million, primarily due to the
addition of the Sewer Collection Utility.
• The Department’s current ratio (the ability to pay short-term obligations) was 3.9, increased from
the prior year’s ratio of 3.6.
• Cash available (the ability to cover current expenses with cash) was 868 days.
Overview of the Financial Statements
The discussion and analysis are intended to serve as an introduction to the Department’s basic
financial statements. The Department’s basic financial statements are comprised of two components:
the Financial Statements and the Notes to the Basic Financial Statements. This report also contains
other supplementary information in addition to the basic financial statements themselves. Information
providing citywide financial results is available in the City’s Comprehensive Annual Financial Report.
Required Financial Statements
The financial statements of the Department report information about the Department using accounting
methods similar to those used by private sector companies. These statements offer short-term and
long-term financial information about its activities. The Statement of Net Position (pages 12-13)
includes all of the Department’s investments in resources (assets) and the obligations to creditors
(liabilities). It also provides the basis for evaluating the capital structure of the Department and
assessing the liquidity and financial flexibility of the Department. All of the current year’s revenues and
expenses are accounted for in the Statement of Revenues, Expenses and Changes in Net Position.
(page 14) This statement measures the success of the Department’s operations over the past year and
can be used to determine whether the Department has successfully recovered all its costs through its
user fees and other charges, profitability, and credit worthiness. The final required financial statement
is the Statement of Cash Flows (pages 15-16). The primary purpose of this statement is to provide
information about the Department’s cash receipts and cash payments during the reporting period. The
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statement reports cash receipts, cash payments, and net changes in cash resulting from operations,
investing, and financing activities and provides answers to such questions as where did cash come
from, what was cash used for, and what was the change in cash balance during the reporting period.
Financial Analysis of the Department
Our analysis of the Department begins on page 12 of the financial statements. One of the most
important questions to ask about the Department’s finances is “Whether the Department, as a whole, is
better off or worse off as a result of the year’s activities?” The Statement of Net Position, and the
Statement of Revenues, Expenses and Changes in Net Position report information about the
Department’s activities in a way that will help answer this question. These two statements report the net
position of the Department and changes in them. Measuring the change in the Department’s net
position - the difference between assets and liabilities - is one way to measure financial health or
financial position. Over time, increases or decreases in the Department’s net assets are indications of
whether its financial health is improving or deteriorating. However, one will need to consider other non-
financial factors such as changes in economic conditions, population growth, and zoning and new or
changed government legislation.
Water Utility Fund
To begin our analysis, a summary of the Water Utility Fund’s Statement of Net Position is presented in
Table A-1.
As can be seen from the table above, the Water Utility net position decreased 1.36% or $2,067 to
$150,005 in fiscal year 2017. The net investment in capital assets decreased .10% during fiscal year
2017 due to normal depreciation of assets.
2017 2016 $ Change % Change
Current and noncurrent assets 100,759$ 69,427$ 31,332$ 45.13%
Capital assets 191,404 189,100 2,304 1.22%
Total assets 292,163 258,527 33,636 13.01%
Deferred outflows of resources 6,252 2,057 4,195
Current liabilities 11,462 8,345 3,117 37.35%
Noncurrent liabilities 135,789 97,828 37,961 38.80%
Total liabilities 147,251 106,173 41,078 38.69%
Deferred inflows of resources 1,159 2,338 (1,179)
Net investment in capital assets 169,570 169,731 (161) -0.09%
Restricted - - - 0.00%
Unrestricted (19,565) (17,658) (1,907) 10.80%
Total net position 150,005$ 152,073$ (2,068)$ -1.36%
TABLE A-1
Condensed Statement of Net Position - Water Utility
(amounts expressed in thousands of dollars)
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Total revenues increased by 8%, or $2.9 million, primarily due to a rate increase approved by the Board
of Water Commissioners and implemented during the fiscal year. Total expenses decreased 15%
primarily due to costs associated with the issuance of the 2016 Water Bonds, as well as an increase in
the purchase and usage of supplemental water to replenish the groundwater basin.
Total capital assets increased by $2.3 million in fiscal year 2017. Approximately $6.3 million in
construction in progress was completed and placed in service during the fiscal year. Major project
completions include the Customer Service Relocation Building project, the 1720 East 16” Transmission
Main and the Belleview and Vine Streets Alley Replacement Projects. Additional information on capital
assets is presented in Note 4 of the Notes to the Basic Financial Statements.
2017 2016 $ Change % Change
Operating revenue 33,359$ 30,002$ 3,357$ 11.19%
Capital contributions 2,194 2,812 (618) -21.98%
Other nonoperating revenue 2,584 2,390 194 8.12%
Total revenues 38,137 35,204 2,933 8.33%
Operating expenses 37,075$ 34,834$ 2,241 6.43%
Nonoperating expenses 3,130 107 3,023 2825.23%
Total expenses 40,205 34,941 5,264 15.07%
Change in net position (2,068) 263 (2,331) -886.31%
Net position, beginning balance 152,073 151,810 263 0.17%
Prior period adjustment - - - N/A
Total net position 150,005$ 152,073$ (2,068)$ -1.36%
TABLE A-2
Condensed Statement of Revenues, Expenses and Changes in Net Position - Water Utility
(amounts expressed in thousands of dollars)
2017 2016 $ Change % Change
Land and easements 6,014$ 5,654$ 360$ 6.36%
Construction in progress 2,774 3,932 (1,158) -29.45%
Wells and pumping 100,323 99,444 879 0.88%
Distribution 156,449 151,104 5,345 3.54%
Plant and facilities 6,380 3,648 2,732 74.89%
Other capital assets 14,985 15,636 (651) -4.17%
Total capital assets 286,925 279,418 7,507 2.69%
Less: accumulated depreciation (95,520) (90,319) (5,201) 5.76%
Total capital assets, net 191,405$ 189,099$ 2,306$ 1.22%
TABLE A-3
Capital Assets - Water Utility
(amounts expressed in thousands of dollars)
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During the year, the Water Utility’s long-term debt increased by $33 million which can be attributed to
the issuance of $48 million in revenue bonds in November 2016, as well as the defeasance of the
outstanding notes payable. Additional information on long-term debt is presented in Note 6 of the
Notes to Basic Financial Statements.
Sewer Utility Fund
As can be seen from the table above, the Sewer Utility net position increased $2.2 million to $101,504
in fiscal year 2017. The primary result of this increase was an increase in capital assets...
2017 2016 $ Change % Change
Notes payable -$ 19,369$ (19,369)$ -100.00%
Bonds Payable 47,455 47,455
Bond Premium 5,600 5,600
Compensated absences 183 904 (721) -79.71%
Total long-term debt 53,238$ 20,273$ 32,965$ 162.61%
TABLE A-4
Long-term Debt - Water Utility
(amounts expressed in thousands of dollars)
2017 2016 $ Change % Change
Current and noncurrent assets 95,435$ 57,331$ 38,104$ 66.46%
Capital assets 64,933 67,139 (2,206) -3.29%
Total assets 160,368 124,470 35,898 28.84%
Deferred outflow of resources 4,951 1,551 3,401 219%
Current liabilities 4,393 4,430 (37) -0.83%
Noncurrent liabilities 58,504 20,527 37,977 185.01%
Total liabilities 62,897 24,957 37,939 152.02%
Deferred inflow of resources 918 1,763 (844) -48%
Net investment in capital assets 62,634 65,939 (3,305) -5.01%
Restricted 7,945 7,814 131 1.68%
Unrestricted 30,925 25,548 5,377 21.05%
Total net position 101,504$ 99,301$ 2,203$ 2.22%
TABLE B-1
Condensed Statement of Net Position - Sewer Utility
(amounts expressed in thousands of dollars)
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During Fiscal Year 2017, total revenues for the Sewer Utility increased 7.4% from the prior year,
primarily due to the implementation of the second year of a scheduled three tier rate increase. Total
expenses increased 38.91% during the same time period, from a combination of one-time costs
associated with the issuance of the 2016 Sewer Revenue Bonds as well as increased legal costs due
to pending litigation. Another factor was an increase in pension expense associated with the changes
in the pension liability attributed to this fund.
Total capital assets decreased by $3 million in fiscal year 2017, with approximately $12.6 million in
construction in progress completed and placed in service. Major project completions include the
Overhaul of the Unit 1 Primary Clarifier/Aeration System Upgrade as well as the Arrowhead Pump
Station Electrical Upgrade project. More information relating to capital assets can be found in Note 4
of the Notes to the Basic Financial Statements.
2017 2016 $ Change % Change
Operating revenue 28,612$ 25,411$ 3,201$ 12.60%
Capital contributions 1,356 1,459 (103) -7.07%
Other nonoperating revenue 39 1,060 (1,021) -96.32%
Total revenues 30,007 27,930 2,077 7.44%
Operating expenses 24,140 18,731 5,409 28.87%
Nonoperating expenses 3,664 1,284 2,380 185.39%
Total expenses 27,804 20,015 7,789 38.91%
Change in net position 2,203 7,914 (5,711) -72.16%
Net position, beginning balance 99,301 91,387 7,914 8.66%
Prior period adjustment - - -
Total net position 101,504$ 99,301$ 2,203$ 2.22%
TABLE B-2
Condensed Statement of Revenues, Expenses and Changes in Net Position - Sewer Utility
(amounts expressed in thousands of dollars)
2017 2016 $ Change % Change
Land and easements 11,755$ 11,755$ -$ 0.00%
Construction in progress 6,734 16,808 (10,074) -59.94%
Pumping 3,622 3,622 - 0.00%
Buildings, plants and stores 139,013 131,033 7,980 6.09%
Field and office equipment 4,729 5,921 (1,192) -20.13%
Total capital assets 165,853 169,139 (3,286) -1.94%
Less: accumulated depreciation (100,920) (101,999) 1,079 -1.06%
Total net assets 64,933$ 67,140$ (2,207)$ -3.29%
TABLE B-3
Capital Assets - Sewer Utility
(amounts expressed in thousands of dollars)
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During the year, the Sewer Utility’s long-term debt increased $34 million which can be attributed to the
issuance of the 2016 Sewer Revenue Bonds in December 2016. Additional information on long-term
debt is presented in Note 6 of the Notes to Basic Financial Statements.
Sewer Collections Utility
In May of 2017, management and operations of the Sewer Collections Utility was transferred to the City
of San Bernardino Water Department from the City of San Bernardino Public Works Department. The
above data represents net position as of June 30, 2017, and prior year data is unavailable.
2017 2016 $ Change % Change
Notes payable 900$ 1,200$ (300)$ -25.00%
Bonds Payable 34,445 - 34,445
Bond Premium 188 188
Compensated absences 318 328 (10) -3.00%
Total long-term debt 35,851$ 1,528$ 34,323$ 2246.55%
TABLE B-4
Long-term Debt - Sewer Utility
(amounts expressed in thousands of dollars)
2017 2016 $ Change % Change
Current and noncurrent assets 15,271$ 15,271$
Capital assets 18,196 18,196
Total assets 33,467 - 33,467
Deferred outflow of resources 62 62
Current liabilities 334 - 334
Noncurrent liabilities 299 - 299
Total liabilities 633 - 633
Deferred inflow of resources 11 - 11
Net investment in capital assets 18,196 - 18,196
Restricted - - -
Unrestricted 14,688 - 14,688
Total net position 32,884$ -$ 32,884$
TABLE C-1
Condensed Statement of Net Position - Sewer Collections Utility
(amounts expressed in thousands of dollars)
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The statement above represents activity from May 1, 2017 through June 30, 2017.
The statement above represents the assets transferred from the City of San Bernardino Public Works
Department. The Sewer Collections Utility does not have any outstanding debt.
Management Challenges and Opportunities
Economics
While the local economy of the Service Area (Service Area) served by the Department had been greatly
affected by the last recession, the Service Area is seeing signs of improvement. The Department has
experienced a great increase in development in 2017, with approximately a 600% increase from 2016.
In addition, the City’s unemployment rate continues to decline as the economy continues to improve.
The current unemployment rate for the City of San Bernardino is 5.8%, down from an average
unemployment rate of 7.3% in 2016. Job growth in the Inland Empire remains strong, second in
2017 2016 $ Change % Change
Operating revenue 2,891$ -$ 2,891$
Capital contributions 18,445 - 18,445
Other nonoperating revenue 12,609 - 12,609
Total revenues 33,945 - 33,945
Operating expenses 1,055 - 1,055
Nonoperating expenses 7 - 7
Total expenses 1,062 - 1,062
Change in net position 32,883 - 32,883
Net position, beginning balance - - -
Prior period adjustment - - -
Total net position 32,883$ -$ 32,883$
TABLE C-2
Condensed Statement of Revenues, Expenses and Changes in Net Position - Sewer Collections Utility
(amounts expressed in thousands of dollars)
2017 2016 $ Change % Change
Buildings, plants and stores 17,211$ -$ 17,211$
Field and office equipment 2,693 - 2,693
Sewer Pipelines 19,139 - 19,139
Total capital assets 39,043 - 39,043
Less: accumulated depreciation (20,848) - (20,848)
Total net assets 18,195$ -$ 18,195$
TABLE C-3
Capital Assets - Sewer Collections Utility
(amounts expressed in thousands of dollars)
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California in year over year growth as of August 2017. The largest industries for job growth remain
health services, retail trade, leisure & hospitality and government with new growth areas in goods
movement and manufacturing. Local economists also project continued growth in both the State and
the Inland Empire, with job gains across a wide variety of industries. These factors combine to an
improved outlook for the Service Area which will translate into improved economic conditions for
Department customers.
Capital Construction and Upcoming Projects
The Water Utility continues to concentrate on seismically retrofitting and upgrading existing reservoirs
to meet current design standards, as well as replacing aging pipelines, wells and plant facilities. The
Sewer Utility faces an extensive list of compliance-related construction requirements over the next
several years, and is also rehabilitating facilities and designing/constructing Primary Influent Flow
Equalization. The operations of the Sewer Collections system were recently absorbed by the
Department and the Department faces many years of rehabilitating and updating an aging system. The
Sewer Collections system Master Plan is being updated for the first time since 2002 and is expected to
identify and prioritize projects for a Capital Improvement Program.
.
Rates
A three-part water utility rate increase was presented to the Board of Water Commissioners in
September 2016 consisting of increases implemented on October 1, 2016, July 1, 2017 and July 1,
2018. A three-phase sewer treatment rate increase was approved in September 2015 consisting of
increases of 8.5% implemented on October 1, 2015 and July 1, 2016 with an additional 3.25% to be
implemented on July 1, 2017. A three-phase sewer collections rate increase was approved by the City
Council in September 2015 consisting of increases implemented on October 1, 2015, July 1, 2016 and
July 1, 2017. The Department continues to review revenue and expense levels to determine when rate
increases will be necessary.
Joint Partnership with East Valley Water District
The Department’s Sewer Utility has historically operated its Water Reclamation Plant (WRP) through a
joint partnership agreement with East Valley Water District (EVWD) and the City of Loma Linda and has
treated the sewage of these entities under this agreement. EVWD is currently working towards
completion of a wastewater treatment plant, which would mean that they would terminate their interest
in the joint partnership agreement. The Department recently settled a lawsuit with EVWD that supports
EVWD’s proposed wastewater treatment plant, which will decrease wastewater flow to the
Department’s Water Reclamation Plant (WRP) by approximately 6 million gallons per day (27% of
current flows). The Department will also no longer receive the pertaining revenue. The settlement
includes operational and financial measures that will aid the Department in adjusting to EVWD’s
departure, which will likely occur in three to four years. The Department will immediately begin
planning and implementing operational measures to prepare for the decrease in flow and ensure a
smooth transition.
Contacting the Department’s Director of Finance
This financial report is designed to provide our customers and creditors with a general overview of the
Department’s finances and to demonstrate the Department’s accountability for the money it receives. If
you have questions about this report or need additional financial information, please contact the
Department’s Director of Finance at (909) 453-6010. For information on the City of San Bernardino’s
financial statements, please contact the City’s finance department at (909) 384-5242.
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BASIC FINANCIAL STATEMENTS
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CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Statement of Net Position
June 30, 2017
Water Sewer Sewer
Utility Utility Collection Utility Total
ASSETS
Current assets:
Cash and investments (note 3) 11,011,219$ 23,616,860 13,379,346 48,007,425
Accounts receivable, net 5,665,511 4,076,113 692,906 10,434,530
Interest receivable 9,960 73,453 21,456 104,869
Due from other entities 84,583 371,028 1,175,818 1,631,429
Inventory 1,737,782 - - 1,737,782
Current portion of prepaid expenses 1,127,223 - 1,082 1,128,305
Total current assets 19,636,278 28,137,454 15,270,608 63,044,340
Noncurrent assets:
Prepaid expenses - 691,880 - 691,880
Investment in joint venture - RIX (note 9) - 25,427,063 - 25,427,063
Restricted assets:
Cash and cash equivalents (note 3):
Restricted for capital 32,187,716 41,178,358 - 73,366,074
Investments (note 3):
Restricted for consent decree (note 3) 22,221,820 - - 22,221,820
Interest receivable - consent decree 93,473 - - 93,473
Prepaid insurance - consent decree 26,619,499 - - 26,619,499
Capital assets (note 4):
Non-depreciable assets 8,787,415 18,489,279 - 27,276,694
Depreciable assets 278,137,114 147,364,284 39,043,703 464,545,101
Less: accumulated depreciation and amortization (95,520,113) (100,920,020) (20,847,751) (217,287,884)
Total capital assets (net) 191,404,416 64,933,543 18,195,952 274,533,911
Total noncurrent assets 272,526,924 132,230,844 18,195,952 422,953,720
Total assets 292,163,202 160,368,298 33,466,560 485,998,060
DEFERRED OUTFLOW OF RESOURCES
Deferred outflows - pension related (note 7) 6,251,850 4,950,791 61,955 11,264,596
Total deferred outflow of resources 6,251,850 4,950,791 61,955 11,264,596
(continued on next page)
See accompanying independent auditor's report and notes to the basic financial statements.
14
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CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Statement of Net Position, continued
June 30, 2017
Water Sewer Sewer
Utility Utility Collection Utility Total
LIABILITIES
Current liabilities:
Accounts payable 1,775,183 1,264,032 126,234 3,165,449
Related parties payable 4,185,924 129,750 - 4,315,674
Accrued compensation 757,861 564,836 47,548 1,370,245
Claims payable (note 10)1,609,803 706,077 144,723 2,460,603
Consumer deposits 508,857 - - 508,857
Current portion of compensated absences (note 6) 730,060 254,682 15,624 1,000,366
Current portion of notes payable (note 6) - 300,000 - 300,000
Current portion of bonds payable (note 6) 967,638 596,403 - 1,564,041
Accrued interest payable 926,599 577,294 - 1,503,893
Total current liabilities 11,461,925 4,393,074 334,129 16,189,128
Noncurrent liabilities:
Consumer deposits 2,999,743 - - 2,999,743
Compensated absences (note 6) 182,515 63,670 3,906 250,091
Unearned revenue - consent decree (note 13) 48,934,792 - - 48,934,792
Notes payable (note 6)- 600,000 - 600,000
Bonds payable (note 6)53,054,748 34,036,957 - 87,091,705
OPEB obligation (note 8)840,385 223,394 - 1,063,779
Net pension liabilities (note 7) 29,776,980 23,580,149 295,087 53,652,216
Total noncurrent liabilities 135,789,163 58,504,170 298,993 194,592,326
Total liabilities 147,251,088 62,897,244 633,122 210,781,454
DEFERRED INFLOW OF RESOURCES
Deferred inflows - pension related (note 7) 1,158,682 917,551 11,482 2,087,715
Total deferred inflow of resources 1,158,682 917,551 11,482 2,087,715
NET POSITION
Net investment in capital assets (note 14) 169,569,746 62,633,783 18,195,952 250,399,481
Restricted for capital (note 14)- 7,944,758 - 7,944,758
Unrestricted (note 14)(19,564,464) 30,925,753 14,687,959 26,049,248
Total net position 150,005,282$ 101,504,294 32,883,911 284,393,487
See accompanying independent auditor's report and notes to the basic financial statements.
15
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CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Statement of Revenues, Expenses and Changes in Net Position
For the year ended June 30, 2017
Water Sewer Sewer Interfund
Utility Utility Collection Utility Eliminations Total
Operating revenues:
Charges for services 32,883,423$ 28,022,259 2,860,627 (7,290) 63,759,019
Other operating revenues 475,484 589,760 30,576 (366,252) 729,568
Total operating revenues 33,358,907 28,612,019 2,891,203 (373,542) 64,488,587
Operating expenses
Administration and customer service 7,019,760 2,534,186 - (366,252) 9,187,694
Utility administration 514,654 719,134 - - 1,233,788
Plant operations 8,145,504 8,898,743 - - 17,044,247
Maintenance 1,859,871 3,135,686 - (7,290) 4,988,267
Environmental control - 721,896 492,675 - 1,214,571
Distribution 4,290,997 - - - 4,290,997
Engineering and water quality control 2,329,142 480,951 - - 2,810,093
General, administration and overhead 6,436,692 3,546,319 314,265 - 10,297,276
Depreciation and amortization 6,478,050 4,102,963 247,926 - 10,828,939
Total operating expenses 37,074,670 24,139,878 1,054,866 (373,542) 61,895,872
Operating income (loss) (3,715,763) 4,472,141 1,836,337 - 2,592,715
Nonoperating revenues (expenses)
Investment income 31,504 23,391 28,315 - 83,210
Rental income 203,186 15,908 - - 219,094
Noncapital grant funds 2,047,946 - - - 2,047,946
Share of joint venture income (loss) - (1,198,293) - - (1,198,293)
Interest expense and fiscal charges (3,130,749) (1,300,263) - - (4,431,012)
Contribution from City (note 14) - - 12,580,781 - 12,580,781
Loss on disposal of assets - (1,123,192) (1,123,192)
Other 301,833 (42,209) (6,951) - 252,673
Total nonoperating revenues (expenses) (546,280) (3,624,658) 12,602,145 - 8,431,207
Net income (loss) before capital contributions (4,262,043) 847,483 14,438,482 - 11,023,922
Capital contributions:
Acquisition fees 1,072,120 - - - 1,072,120
Capacity fees 889,475 1,008,533 1,551 - 1,899,559
EPA grants 232,498 - - - 232,498
Other capital - 346,961 - - 346,961
Capital contributions from City (note 14) - - 18,443,878 - 18,443,878
Total capital contributions 2,194,093 1,355,494 18,445,429 - 21,995,016
Change in net position (2,067,950) 2,202,977 32,883,911 - 33,018,938
Net position, beginning of year 152,073,232 99,301,317 - - 251,374,549
Net position, end of year 150,005,282$ 101,504,294 32,883,911 - 284,393,487
See accompanying independent auditor's report and notes to the basic financial statements.
16
22.b
Packet Pg. 716 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Statement of Cash Flows
For the year ended June 30, 2017
Water Sewer Sewer Collection
Utility Utility Utility Total
Cash flow from operating activities:
Cash received from customers 33,476,924$ 27,780,062 2,198,297 63,455,283
Rental income 203,186 15,908 - 219,094
Nonoperating miscellaneous revenue (expenses) 318,768 (42,209) (6,951) 269,608
Cash paid to employees for services (15,642,766) (8,407,958) (99,047) (24,149,771)
Cash paid to suppliers of goods and services (13,345,751) (10,251,928) (126,326) (23,724,005)
Cash paid to RIX joint venture operations - (2,191,077) - (2,191,077)
Net cash provided by operating activities 5,010,361 6,902,798 1,965,973 13,879,132
Cash flow from noncapital financing activities:
Cash paid to RIX joint venture (capital)- (5,571,862) - (5,571,862)
Cash received from City - - 11,404,963 11,404,963
Consent Decree insurance drawdowns 2,047,946 - - 2,047,946
Net cash provided by noncapital financing activities 2,047,946 (5,571,862) 11,404,963 7,881,047
Cash flow from capital and related financing activities:
Capital fees received 1,961,595 1,355,494 1,551 3,318,640
Cash paid to acquire capital assets (8,799,741) (3,025,576) - (11,825,317)
Issuance of debt 54,154,145 34,637,095 - 88,791,240
Principal paid on capital-related debt (19,368,662) (300,000) - (19,668,662)
Interest paid on capital-related debt (2,558,709) (725,222) - (3,283,931)
Grant proceeds 232,498 - - 232,498
Net cash provided by (used for) capital and related
financing activities 25,621,126 31,941,791 1,551 57,564,468
Cash flow from investing activities:
Purchase of investments (12,904,783) (72,371) (11,694,636) (24,671,790)
Sales and maturities of investments 12,910,338 524,033 4,704,474 18,138,845
Interest received 26,908 9,335 13,512 49,755
Net cash provided by investing activities 32,463 460,997 (6,976,650) (6,483,190)
Net increase (decrease) in cash 32,711,896 33,733,724 6,395,837 72,841,457
Cash and cash equivalents at beginning of year 6,410,504 10,374,932 - 16,785,436
Cash and cash equivalents at end of year 39,122,400$ 44,108,656 6,395,837 89,626,893
Reconciliation of cash and cash equivalents to amounts
reported on the statement of net position:
Cash and investments 11,011,219$ 23,616,860 13,379,346 48,007,425
Restricted cash and cash equivalents:
Restricted for capital 32,187,716 41,178,358 - 73,366,074
Less those not meeting the definition of a cash equivalent (4,076,535) (20,686,562) (6,983,509) (31,746,606)
Cash and cash equivalents at end of year 39,122,400$ 44,108,656 6,395,837 89,626,893
(continued on next page)
See accompanying independent auditor's report and notes to the basic financial statements.
17
22.b
Packet Pg. 717 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Statement of Cash Flows, continued
For the year ended June 30, 2017
Water Sewer Sewer Collection
Utility Utility Utility Total
Reconciliation of operating income to net cash
provided by (used for) operating activities:
Operating income (loss)(3,715,763)$ 4,472,141 1,836,337 2,592,715
Depreciation and amortization 6,478,050 4,102,963 247,926 10,828,939
Nonoperating miscellaneous revenue (expenses) 318,768 (42,210) (6,951) 269,607
Rental income 203,186 15,908 - 219,094
Adjustments:
(Increase) decrease in accounts receivable 192,268 (897,454) (692,906) (1,398,092)
(Increase) decrease in due from other entities (54,654) 65,498 - 10,844
(Increase) decrease in inventory 57,101 - - 57,101
(Increase) decrease in prepaid expenses (397,332) 37,784 (1,082) (360,630)
(Increase) decrease in deferred outflows - pension related (4,195,318) (3,399,372) (61,955) (7,656,645)
Increase (decrease) in accounts payable 308,553 (1,106,556) 126,234 (671,769)
Increase (decrease) in related parties payable 2,615,013 (591,761) - 2,023,252
Increase (decrease) in accrued compensation (2,458) 39,137 47,548 84,227
Increase (decrease) in compensated absences 8,114 (9,467) 19,530 18,177
Increase (decrease) in claims payable 311,477 459,897 144,723 916,097
Increase (decrease) in consumer deposits (19,597) - - (19,597)
Increase (decrease) in OPEB obligation (92,091) (23,220) - (115,311)
Increase (decrease) in net pension liability 4,173,798 4,265,468 295,087 8,734,353
Increase (decrease) in deferred inflows - pension related (1,178,754) (845,778) 11,482 (2,013,050)
Net cash provided by operating activities 5,010,361$ 6,902,798$ 1,965,973 13,879,132
Noncash investing, capital and financing activities:
Capital contribution from City -$ - 18,443,878 18,443,878
See accompanying independent auditor's report and notes to the basic financial statements.
18
22.b
Packet Pg. 718 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2017
19
(1) Reporting Entity and Summary of Significant Accounting Policies
A. Organization and Operations of the Reporting Entity
The San Bernardino Municipal Water Department (Department) is governed under the Charter of the City
of San Bernardino (City). A Board of Water Commissioners (BOWC) appointed by the Mayor and
approved by City Council, has Charter defined powers, with full authority for administration of the water
utility and delegated authority for the sewer treatment utility. The Department has served the community
since 1905.
B. Basis of Accounting and Measurement Focus
The Department reports its activities as enterprise funds, which are used to account for operations that
are financed and operated in a manner similar to a private business enterprise, where the intent of the
Department is that the costs (including depreciation) of providing goods or services to the general public
on a continuing basis be financed or recovered primarily through user charges. Revenues and expenses
are recognized on the accrual basis. Revenues are recognized in the accounting period in which they
are earned and expenses are recognized in the period incurred, regardless of when the related cash flow
takes place.
Operating revenues, such as charges for services (water sales, sewer services and water services) result
from exchange transactions associated with the principal activity of the Department. Exchange
transactions are those in which each party receives and gives up essentially equal values. Nonoperating
revenues, such as property taxes and investment income, result from nonexchange transactions or
ancillary activities in which the Department gives (receives) value without directly receiving (giving) equal
value in exchange.
When both restricted and unrestricted resources are available for use, the Department uses restricted
resources and then unrestricted resources.
The major funds of the Department are described below:
Water Utility Fund – The Water Utility Enterprise Fund (Water Utility) is used to account for the
operations of the Department’s water system and related revenues.
Sewer Utility Fund – The Sewer Utility Enterprise Fund (Sewer Utility) is used to account for the
operations of the City’s wastewater treatment system and related revenues. The Sewer conveyance
system is under the direction of the City’s Public Works Department.
Sewer Collection Fund – The Sewer Collection Enterprise Fund (Sewer Collection) is used to
account for the operations of the City’s sewer collection system and related revenues.
Administrative and engineering services are provided by the Water Utility to the Sewer Utility. Electrical
services are provided by the Sewer Utility to the Water Utility.
C. Financial Reporting
The Department’s basic financial statements are presented in conformance with the provisions of
Governmental Accounting Standards Board (GASB) Statement No. 34, “Basic Financial Statements –
and Management’s Discussion and Analysis – for State and Local Governments” (GASB No. 34). This
statement established revised financial reporting requirements for state and local governments
throughout the United States for the purpose of enhancing the understandability and usefulness of
financial reports.
22.b
Packet Pg. 719 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements, continued
For the Year Ended June 30, 2017
20
(1) Reporting Entity and Summary of Significant Accounting Policies
C. Financial Reporting, continued
GASB No. 34 and its related GASB pronouncements provide for a revised view of financial information
and restructure the format of financial information provided prior to its adoption. A statement of net
position replaces the balance sheet and reports assets, liabilities, and the difference between them as
net position, not equity. A statement of revenues, expenses and changes in net position replaces both
the income statement and the statement of changes in retained earnings and contributed capital. GASB
No. 34 also requires that the statement of cash flows be prepared using the direct method. Under the
direct method, cash flows from operating activities are presented by major categories.
D. Assets, Liabilities and Net Position
1. Use of Estimates
The preparation of the basic financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported amounts
of assets, liabilities, and disclosures of contingent assets and liabilities at the date of the financial
statements, and the reported changes in net position during the reporting period. Actual results could
differ from those estimates.
2. Cash and Investments
For the purpose of the statement of cash flows, cash and cash equivalents include highly liquid
investments (including restricted assets) with a maturity of three months or less when purchased.
Investments are reported in the accompanying balance sheet at fair value, except for certain
certificates of deposit and investment contracts that are reported at cost as they are not transferable
and have terms that are not affected by changes in market interest rates.
Changes in fair value that occur during a fiscal year are recognized as investment income reported
for that fiscal year. Investment income includes interest earnings, changes in fair value and any gains
or losses realized upon the liquidation of investments.
Fair Value Measurements
Certain assets and liabilities are required to be reported at fair value. The fair value framework
provides a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical
assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level
3 measurements). The three levels of fair value hierarchy are described as follows:
Level 1 - Inputs to the valuation methodology are unadjusted quoted prices for identical assets or
liabilities in active markets.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset
or liability, either directly or indirectly and fair value is determined through the use of models or
other valuation methodologies including:
• Quoted prices for similar assets or liabilities in active markets;
• Quoted prices for identical or similar assets or liabilities in markets that are inactive;
• Inputs other than quoted prices that are observable for the asset or liability;
• Inputs that are derived principally from or corroborated by observable market data by
correlation or other means.
22.b
Packet Pg. 720 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements, continued
For the Year Ended June 30, 2017
21
(1) Reporting Entity and Summary of Significant Accounting Policies, continued
D. Assets, Liabilities and Net Position, continued
Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value
measurement. These unobservable input reflect the Department’s own assumptions about the
inputs market participants would use in pricing the asset or liability (including assumptions about
risk). These unobservable inputs are developed based on the best information available in the
circumstances and may include the Department’s own data.
3. Accounts Receivable
Customer or trade receivables are shown net of an allowance for uncollectible accounts based on
historical and management estimates. Transactions between funds that are representative of lending
or borrowing arrangements outstanding at the end of the fiscal year are referred to as “interfund
receivables / payables” or “advances to/from” other funds. All interfund transactions are eliminated
for financial reporting.
4. Inventory
Materials and supplies inventory consists primarily of water meters, pipe and pipefittings for
construction and repair to the Department’s water transmission and distribution system and items
necessary for maintenance at the sewer treatment facilities. Inventory is valued at cost using a
weighted average method. Inventory items are charged to expense at the time that individual items
are withdrawn from inventory or consumed.
Water inventory is stated at its purchase cost using the first in, first out method. Inventory is recorded
when purchased and expensed at the time the inventory is consumed.
5. Prepaid Expense and Deposit
Certain payments to vendors reflect costs or deposits applicable to future accounting periods and are
recorded as prepaid items in the basic financial statements.
6. Capital Assets
Capital assets acquired or constructed are capitalized at historic cost. Department policy has set the
capitalization threshold for reporting capital assets at $5,000 and a life expectancy of at least 3 years.
Overhead is capitalized at the rate of 28.9% of labor and benefits, 10% of material and supplies and
2% of significant contracts. Depreciation is recorded on a straight-line basis over the estimated useful
lives of the assets as follows:
• Source of supply plant 8 to 50 years
• Disposal plant and interceptor lines 35 to 50 years
• Other facilities (shops, leasehold & yards) 5 to 25 years
• Tools, office equipment & communications 4 to 20 years
• Computer equipment 3 to 5 years
• Automotive and fleet equipment 3 to 15 years
7. Compensated Absences
Department policy is to permit employees to accumulate a limited amount of earned vacation and
sick leave. Various negotiation groups have different sell-back and cash out options. Additionally,
cash out options upon retirement or death of the employee vary based on the negotiation group.
Employees’ vacation and sick leave benefits are recognized as a liability of the Department.
22.b
Packet Pg. 721 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements, continued
For the Year Ended June 30, 2017
22
(1) Reporting Entity and Summary of Significant Accounting Policies, continued
D. Assets, Liabilities and Net Position, continued
8. Restricted Assets and Amounts Payable from Restricted Assets
Amounts shown as restricted assets have been restricted by bond indentures or are to be used for
specified purposes based on contract provisions, such as bonded debt service. Certain liabilities
which are currently payable have been classified as current liabilities payable from restricted assets
since assets have been restricted for their payment.
9. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred
inflows of resources related to pensions, and pension expense, information about the fiduciary net
position and additions to/deductions from the fiduciary net position have been determined on the
same basis as they are reported by the Department. For this purpose, benefit payments (including
refunds of employee contributions) are recognized when currently due and payable in accordance
with the benefit terms. Investments are reported at fair value.
GASB 68 requires that the reported results must pertain to liability and asset information within
certain defined timeframes. For this report, the following timeframes are used:
Valuation Date (VD) June 30, 2015
Measurement Date (MD) June 30, 2016
Measurement Period (MP) June 30, 2015 to June 30, 2016
10. Deferred Outflows/Inflows
In addition to assets, the Statement of Net Position will sometimes report a separate section of
deferred outflows of resources. This separate financial statement element, deferred outflows of
resources, represents consumption of net position that applies to a future period and so will not be
recognized as an outflow of resources (expenses/expenditures) until then. The Department has one
item that qualifies for reporting in this category: the deferred outflows related to pensions.
In addition to liabilities, the statement of financial position will sometimes report a separate section
for deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of net position that applies to a future period and will not be
recognized as inflow of resources (revenue) until that time. The District has one item that qualifies
for reporting in this category, deferred inflows related to pensions.
11. Interfund Eliminations
The interfund eliminations column represents entries made to eliminate interfund income and
expenditure transactions between the water utility fund and the sewer utility fund for the purposes of
consolidated financial statements.
12. Net Position
The financial statements utilize a net position presentation. Net position is categorized as follows:
• Net Investment in Capital Assets – This component of net position consists of capital assets,
net of accumulated depreciation and reduced by any debt outstanding against the acquisition,
construction or improvement of those assets.
• Restricted Net Position – This component of net position consists of constraints placed on
net position use through external constraints imposed by creditors, grantors, contributors, or
laws or regulations of other governments or constraints imposed by law through constitutional
provisions or enabling legislation.
22.b
Packet Pg. 722 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements, continued
For the Year Ended June 30, 2017
23
(1) Reporting Entity and Summary of Significant Accounting Policies, continued
D. Assets, Liabilities and Net Position, continued
• Unrestricted Net Position – This component of net position consists of net position that does
not meet the definition of restricted or net investment in capital assets.
13. Capital Contributions
Contributions in aid of construction represent cash and utility plant additions contributed to the
Department by property owners or developers desiring services that require capital expenditures or
capacity commitment. In accordance with Governmental Accounting Standards Board Statement No.
33, the capital contributions are recorded on the Statement of Revenues, Expenses and Changes in
Net position.
14. Budgetary Policies
The Department adopts an annual budget for planning, control, and evaluation purposes. Budgetary
control and evaluation are affected by comparisons of actual revenues and expenses with planned
revenues and expenses for the period. Encumbrance accounting is not used to account for
commitments related to outstanding contracts for construction and services.
(2) City of San Bernardino Bankruptcy
Without reserves and facing a $45.8 million budget deficit, in July of 2012, the City determined that it was
no longer able to meet its contractual obligations and declared a fiscal emergency. On August 1, 2012,
the City filed a petition under Chapter 9 of the United States Bankruptcy Code in Riverside seeking to
adjust its debts. The City has since proposed a Chapter 9 plan of adjustment, and that plan of adjustment
was confirmed on February 7, 2017. The City’s plan of adjustment became effective on June 15, 2017.
No revenues of the Department were used to pay general claims during the pendency of the City’s
bankruptcy case or pursuant to its confirmed plan. In addition, no general claims of the City were
successfully asserted against the Department or its revenues during the pendency of the City’s
bankruptcy case. The plan of adjustment does not impair or affect the revenues of the Department. The
Department continues to hold its revenues in segregated accounts and uses them only for the purposes
provided for under state law and the City Charter.
22.b
Packet Pg. 723 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements, continued
For the Year Ended June 30, 2017
24
(3) Cash and Investments
Cash and investments are reported in the accompanying statement of net position as follows:
Cash and investments at June 30, 2017 consisted of the following:
Investments Authorized by the California Government Code and the Department’s Investment
Policy
The table below identifies the investment types that are authorized by the Department and Consent
Decree (see note 13) in accordance with the California Government Code (or the City’s investment
policy, where more restrictive). The table also identifies certain provisions of the California Government
Code (or the City’s investment policy, where more restrictive) that addresses interest rate risk, credit
risk, and concentration of credit risk. Due to its long-term nature, the Consent Decree has been explicitly
exempted from maximum maturity requirements of the California Government Code, which limits
maturity of most investments to five years. All other aspects of the Consent Decree investment policy
are consistent with the City’s investment policy.
Water Sewer Sewer Collection
Utility Utility Utility Total
Cash and investments 11,011,219$ 23,616,860 13,379,346 48,007,425
Restricted cash and cash equivalents:
Restricted for Capital 32,187,716 41,178,358 - 73,366,074
Restricted investments:
Restricted for Consent Decree 22,221,820 - - 22,221,820
Total Cash and Investments 65,420,755$ 64,795,218 13,379,346 143,595,319
Water Sewer Sewer Collection
Utility Utility Utility Total
Cash on Hand 7,000$ 200 - 7,200
Deposits with Financial Institutions 6,927,684 10,874,856 6,395,837 24,198,377
Investments 58,486,071 53,920,162 6,983,509 119,389,742
Total Cash and Investments 65,420,755$ 64,795,218 13,379,346 143,595,319
Department
Consent
Decree
Maximum %
of Portfolio
Maximum %
of Portfolio
US treasury 5 years None None None
US agency 5 years None None None
Bankers acceptances 180 days 180 days 40% 40%
Commercial paper 270 days 270 days 25% 25%
Negotiable CDs 5 years None 30% 30%
Medium-term notes 5 years None 30% 30%
Money market mutual funds N/A N/A 30% 30%
Mortgage pass through 5 years None 20% 20%
Local Agency Investment Fund N/A N/A 40,000,000 40,000,000
Guaranteed investment N/A N/A None None
Investment Type*
Maximum Maturity
22.b
Packet Pg. 724 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements, continued
For the Year Ended June 30, 2017
25
(3) Cash and Investments, continued
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements,
rather than the general provisions of the California Government Code or the City’s investment policy.
Investments authorized for funds held by bond trustee include, U.S. Treasury Obligations, U.S.
Government Sponsored Enterprise Securities, the California Local Agency Investment Fund, Guaranteed
Investment Contracts, Commercial Paper, Local Agency Bonds, Banker’s Acceptance and Money Market
Mutual Funds. There are no limitations on the maximum amount that can be invested in one issuer,
maximum percentage allowed or the maximum maturity of an investment, except for the maturity of
Banker’s Acceptance which are limited to one year.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial
institution, a government will not be able to recover its deposits or will not be able to recover collateral
securities that are in the possession of an outside party. The custodial credit risk for investments is the
risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to
recover the value of its investment or collateral securities that are in the possession of another party. The
California Government Code requires that a financial institution secure deposits made by a state or local
governmental units by pledging securities in an undivided collateral pool held by a depository regulated
under state law.
The market value of the pledged securities in the collateral pool must equal at least 110% of the total
amount deposited by the public agencies. California law also allows financial institutions to secure the
Department’s deposits by pledging first trust deed mortgage notes having a value of 150% of the secured
public deposits.
For investment identified herein as held by bond trustee, the bond trustee selects the investment under
the terms of the applicable trust agreement, acquires the investment, and holds the investment on behalf
of the reporting government.
Investment in State Investment Pool
The Department is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated
by the California Government Code under the oversight of the Treasurer of the State of California. The
fair value of the Department’s investment in this pool is reported in the accompanying financial statements
at amounts based upon the Department’s pro-rata share of the fair value provided by LAIF for the entire
LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is
based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.
LAIF is not rated by a nationally recognized statistical rating organization, but, as stated previously, it is
regulated by the California Government Code, and is therefore exempt from rating requirements.
22.b
Packet Pg. 725 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements, continued
For the Year Ended June 30, 2017
26
(3) Cash and Investments, continued
Interest Rate Risk
Interest rate risk is the possibility that fluctuations in market interest rates will adversely affect the fair
value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of
its fair value will be to changes in market interest rates. One method that the Department uses to manage
its exposure to interest rate risk is by purchasing a combination of shorter term and longer term
investments and by timing cash flows from maturities so that a portion of the portfolio matures or comes
close to maturity evenly over time as necessary to provide requirements for cash flow and liquidity needed
for operations.
Information about the sensitivity of the fair values of the Department’s investments to market interest rate
fluctuations is provided by the following table that shows the distribution of the Department’s investments
by maturity date:
Less than 12
months
13-24
months
25-60
months
More than
60 months Total
U.S. Agency Securities 3,870,421$ 2,565,036 7,791,091 - 14,226,548
U.S. Treasuries 198,938 1,704,449 7,239,208 - 9,142,595
Medium Term Corporate Notes 308,876 467,529 1,758,815 - 2,535,220
Asset Backed Securities 49,569 649,295 489,524 - 1,188,388
Commercial Paper 418,320 - - - 418,320
Money Market Funds 458,105 - - - 458,105
Local Agency Investment Fund 3,776,431 - - - 3,776,431
Consent Decree:
U.S. Treasuries - - 10,120,754 - 10,120,754
U.S. Agency Mortgage Backed Securities - - 89,889 1,164,562 1,254,451
U.S Agency Collateralized Mortgage
Obligations 93,856 - 568,958 396,879 1,059,693
U.S. Agency Securities - - 596,451 - 596,451
Commercial Paper 847,890 - - - 847,890
Corporate Notes 960,117 - 1,978,408 - 2,938,525
Certificates of Deposit 1,651,530 1,706,651 - - 3,358,181
274,796 - 1,679,951 - 1,954,747
Money Market Funds 92,127 - - - 92,127
Investments with fiscal agent
Money Market Funds 65,421,316 - - - 65,421,316
Total Investments 78,422,292$ 7,092,960 32,313,049 1,561,441 119,389,742
Investment Type
Maturities
Asset Back Securities/Collateralized
Mortgage Obligations
22.b
Packet Pg. 726 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements, continued
For the Year Ended June 30, 2017
27
(3) Cash and Investments, continued
Credit Risk
Generally, credit risk is the possibility that an issuer of an investment will not fulfill its obligation to the
holder of the investment. This is measured by the assignment of a rating by a nationally recognized
statistical rating organization. Presented below is the minimum rating required by (where applicable) the
California Government Code, the Department’s investment policy, or debt agreements, and the actual
rating as of year-end for each investment type.
Minimum
Legal Rating Rating Total
U.S. Agency Securities None AA+ 14,226,548$
U.S. Treasuries Exempt Exempt 9,142,594
Medium Term Corporate Notes AA- AAA 2,535,221
Asset Backed Securities AA AAA 1,188,388
Commercial Paper A-1 A-1 418,320
Money Market Funds AA+ AAA 458,105
Local Agency Investment Fund None not rated 3,776,431
Consent Decree:
U.S. Treasuries None Exempt 10,120,754
U.S. Agency Mortgage Backed Securities None AA+ 1,254,451
U.S. Agency Securities None AA+ 596,451
U.S. Agency Collateralized Mortgage
Obligation AA AA 1,059,693
Corporate Notes A AAA 2,938,525
Commercial Paper A-1 A-1 847,890
Certificates of Deposit A A-1+ 3,358,181
Asset Backed Secuirites/Collateralized
Mortgage Obligation AA AAA 1,954,747
Money Market Funds AA+ AA+ 92,127
Investments with fiscal agent
Money Market Funds AA+ AA+ 65,421,316
Total Investments 119,389,742$
Investment Type
22.b
Packet Pg. 727 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements, continued
For the Year Ended June 30, 2017
28
(3) Cash and Investments, continued
Fair Value Measurement
The Department categorizes its fair value investments within the fair value hierarchy established by
generally accepted accounting principles. The Department has the following recurring fair value
measurements as of June 30, 2017:
Level 1 Level 2 Level 3 Total
U.S. Agency Securities -$ 14,822,999$ -$ 14,822,999
U.S. Treasuries 19,263,348 - - 19,263,348
Medium Term Corporate Notes - 2,535,220 - 2,535,220
Asset Backed Securities - 1,188,388 - 1,188,388
Commercial Paper - 1,266,211 - 1,266,211
U.S. Agency Mortgage Backed Securities - 1,254,451 - 1,254,451
U.S. Agency Collateralized Mortgage Obligations - 1,059,693 - 1,059,693
Corporate Notes - 2,938,525 - 2,938,525
Asset Backed Securities/Collateralized
Mortgage Obligations - 1,954,747 - 1,954,747
Total investments 19,263,348 27,020,234 - 46,283,582
Investments not subject to fair value 73,106,160
Total 119,389,742$
Fair Value Hierarchy
22.b
Packet Pg. 728 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements, continued
For the Year Ended June 30, 2017
29
(4) Capital Assets
Capital asset activity for the water utility for the fiscal year ended June 30, 2017:
Balance Balance
July 1, 2016 Additions Deletions June 30, 2017
Non-depreciable assets:
Land and easements 5,654,389$ 359,127 - 6,013,516
Construction in progress 3,932,034 5,370,737 (6,528,872) 2,773,899
Total non-depreciable assets 9,586,423 5,729,864 (6,528,872) 8,787,415
Depreciable assets:
Water rights, wells and pumping 99,443,953 907,158 (27,834) 100,323,277
Distribution system 151,104,109 5,424,451 (79,414) 156,449,146
Buildings, plants, and stores 3,647,690 2,759,459 (27,116) 6,380,033
Field and office equipment 15,636,421 507,680 (1,159,443) 14,984,658
Total depreciable assets 269,832,173 9,598,748 (1,293,807) 278,137,114
Less: accumulated depreciation
Water rights, wells and pumping (35,574,853) (2,353,785) 27,832 (37,900,806)
Distribution system (40,457,847) (3,061,366) 64,088 (43,455,125)
Buildings, plants, and stores (1,916,842) (153,613) 27,116 (2,043,339)
Field and office equipment (12,369,393) (909,286) 1,157,836 (12,120,843)
Total accumulated depreciation (90,318,935) (6,478,050) 1,276,872 (95,520,113)
Total depreciable assets, net 179,513,238 3,120,698 (16,935) 182,617,001
Total capital assets, net 189,099,661$ 8,850,562 (6,545,807) 191,404,416
22.b
Packet Pg. 729 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements, continued
For the Year Ended June 30, 2017
30
(4) Capital Assets, continued
Capital asset activity for the sewer utility for the fiscal year ended June 30, 2017:
Capital asset activity for the sewer collection utility for the fiscal year ended June 30, 2017:
Balance Balance
July 1, 2016 Additions Deletions June 30, 2017
Non-depreciable assets:
Land and easements 11,755,173$ - - 11,755,173
Construction in progress 16,807,795 2,527,008 (12,600,697) 6,734,106
Total non-depreciable assets 28,562,968 2,527,008 (12,600,697) 18,489,279
Depreciable assets:
Pumping 3,622,018 - - 3,622,018
Buildings, plants, and stores 131,032,610 13,060,987 (5,080,783) 139,012,814
Field and office equipment 5,920,643 38,274 (1,229,465) 4,729,452
Total depreciable assets 140,575,271 13,099,261 (6,310,248) 147,364,284
Less: accumulated depreciation
Water rights, wells and pumping (2,610,029) (48,246) - (2,658,275)
Buildings, plants, and stores (94,100,662) (3,904,828) 3,952,644 (94,052,846)
Field and office equipment (5,288,471) (149,889) 1,229,461 (4,208,899)
Total accumulated depreciation (101,999,162) (4,102,963) 5,182,105 (100,920,020)
Total depreciable assets, net 38,576,109 8,996,298 (1,128,143) 46,444,264
Total capital assets, net 67,139,077$ 11,523,306 (13,728,840) 64,933,543
Balance Transfer Balance
July 1, 2016 from City Additions Deletions June 30, 2017
Depreciable assets:
Buildings, plants, store yards -$ 17,211,082 - - 17,211,082
Field and office equipment - 2,693,353 - - 2,693,353
Sewer Pipelines - 19,139,268 - - 19,139,268
Total depreciable assets - 39,043,703 - - 39,043,703
Less: accumulated depreciation
Buildings, plants, store yards - (11,244,841) (127,434) - (11,372,275)
Field and office equipment - (1,734,271) (39,047) - (1,773,318)
Sewer Pipelines - (7,620,713) (81,445) - (7,702,158)
Total accumulated depreciation - (20,599,825) (247,926) - (20,847,751)
Total depreciable assets, net - 18,443,878 (247,926) - 18,195,952
Total capital assets, net -$ 18,443,878 (247,926) - 18,195,952
22.b
Packet Pg. 730 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements, continued
For the Year Ended June 30, 2017
31
(5) Operating Leases
Effective December 15, 2008, the Department took possession of leased space for administrative office
and warehouse space for a term of ten years. As of October 29, 2015, the lease ownership transferred
from Superior Homes LLC to Woo Sung Lim. The following is a schedule of minimum lease payments
as of June 30, 2017:
(6) Long-term Liabilities
Water Utility Fund
Changes in long-term liabilities in the water utility fund for the year ended June 30, 2017 are as follows:
2016 Water Revenue Bonds
On November 3, 2016, the water utility issued $48,225,000 Water Revenue Bonds to finance the
acquisition and construction of certain water system capital improvements and to refund outstanding
obligations. The Water Revenue Bonds have interest rates ranging from 3% to 5% with maturities
through August 2036.
Debt service requirements on the 2016 Water Revenue Bond are as follows:
Water Sewer
Sewer
Year Utility Utility Collection Total
2018 212,839$ 33,743 12,978.00 259,560
Balance Balance Current Long-term
July 1, 2016 Additions Reductions June 30, 2017 Portion Portion
Notes Payables:
2002 CIEB 4,007,580$ - (4,007,580) - - -
2007 CIEB 6,386,614 - (6,386,614) - - -
2012 CIEB 8,727,581 - (8,727,581) - - -
SBVMWD Note 246,887 - (246,887) - - -
Total Notes Payable 19,368,662 - (19,368,662) - - -
2016 Water Revenue Bond - 48,225,000 - 48,225,000 770,000 47,455,000
Bond Premium - 5,929,145 (131,759) 5,797,386 197,638 5,599,748
Compensated Absences 904,461 979,772 (971,658) 912,575 730,060 182,515
Total long term-debt, Water fund 20,273,123$ 55,133,917 (20,472,079) 54,934,961 1,697,698 53,237,263
Year Principal Interest Total
2018 770,000$ 2,223,838 2,993,838
2019 795,000 2,196,388 2,991,388
2020 830,000 2,163,888 2,993,888
2021 860,000 2,130,088 2,990,088
2022 900,000 2,090,388 2,990,388
2023-2027 5,255,000 9,708,813 14,963,813
2028-2032 6,695,000 8,260,813 14,955,813
2033-2037 8,265,000 6,694,281 14,959,281
2038-2042 10,500,000 4,451,875 14,951,875
2043-2047 13,355,000 1,601,638 14,956,638
48,225,000$ 41,522,010 89,747,010
22.b
Packet Pg. 731 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements, continued
For the Year Ended June 30, 2017
32
(6) Long-term Liabilities, continued
Debt Service Coverage
The Water Utility Fund is required to maintain net revenues adequate to cover 110% of annual debt
service. Gross revenue is defined as Operating Revenue combined with non-operating revenue. Debt
service coverage for the Water Utility Fund for the year ended June 30, 2017 was as follows:
Sewer Utility Fund
Changes in long-term liabilities in the sewer utility fund for the year ended June 30, 2017 are as follows:
2016 Sewer Revenue Bonds
On December 8, 2016, the sewer utility issued $34,445,000 of Sewer Treatment Revenue Bonds to
finance the acquisition and construction of additional capital improvements to the sewer utility. The Sewer
Treatment Revenue Bonds have interest rates ranging from 3% to 5% with maturities through August
2033.
Debt service requirements on the 2016 Sewer Revenue Bond are as follows:
Balance Balance Current Long-term
July 1, 2016 Additions Reductions June 30, 2017 Portion Portion
2016 Sewer Revenue Bonds -$ 34,445,000 - 34,445,000 590,000 33,855,000
Bond Premium - 192,095 (3,735) 188,360 6,403 181,957
SBVMWD Loan 1,200,000 - (300,000) 900,000 300,000 600,000
Compensated Absences 327,819 610,745 (620,212) 318,352 254,682 63,670
Total long term-debt, Sewer fund 1,527,819$ 35,247,840 (923,947) 35,851,712 1,151,085 34,700,627
Gross revenue 33,358,907$
Operating expenses 37,074,670
Less: depreciation expense (6,478,050)
Net operating expenses 30,596,620
Net Non-Operating Income 2,584,468
Net revenues 5,346,755$
Annual debt service 465,706$
Actual coverage ratio 11.48
Year Principal Interest Total
2018 590,000$ 1,377,175 1,967,175
2019 610,000 1,356,125 1,966,125
2020 635,000 1,331,225 1,966,225
2021 665,000 1,301,900 1,966,900
2022 700,000 1,267,775 1,967,775
2023-2027 4,065,000 5,763,500 9,828,500
2028-2032 4,990,000 4,846,022 9,836,022
2033-2037 5,980,000 3,852,016 9,832,016
2038-2042 7,295,000 2,535,900 9,830,900
2043-2047 8,915,000 919,900 9,834,900
34,445,000$ 24,551,538 58,996,538
22.b
Packet Pg. 732 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements, continued
For the Year Ended June 30, 2017
33
(6) Long-term Liabilities, continued
SBVMWD Loan
In December 2015, the Department entered into an agreement loan of $1,200,000 with the San
Bernardino Valley Municipal Water District (SBVMWD) for UV System Rehabilitation project
improvements to the Rapid Infiltration and Extraction (RIX) facility owned by the City of Colton and the
Department. The principal amount of the loan bears interest at a monthly variable rate equate to the rate
in effect by the State of California Local Agency Investment Fund (LAIF). Payment of principal exclusive
of interest shall be paid in four equal installments of $300,000 due and payable on November 1, 2016
with remaining installments due annual thereafter on each November 1 until 2019.
The Sewer Utility Fund is required to maintain net revenues adequate to cover 110% of annual debt
service. Gross revenue is defined as Operating Revenue combined with non-operating revenue. Debt
service coverage for the Sewer Utility Fund for the year ended June 30, 2017 was as follows:
Sewer Collection Fund
Changes in long-term liabilities in the sewer collection fund for the year ended June 30, 2017 are as
follows:
Gross revenue 28,612,019$
Operating expenses 24,139,879
Less: depreciation expense (4,102,963)
Net operating expenses 20,036,916
Net Non-Operating Income 39,299
Net revenues 8,614,402$
Annual debt service 432,659$
Actual coverage ratio 19.91
Balance Balance Current Long-term
July 1, 2016 Additions Reductions June 30, 2017 Portion Portion
Compensated Absences -$ 44,698 (25,168) 19,530 15,624 3,906
Total long term-debt, Sewer collection fund -$ 44,698 (25,168) 19,530 15,624 3,906
22.b
Packet Pg. 733 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements, continued
For the Year Ended June 30, 2017
34
(7) Pension Plan
The Department is considered to be part of the City of San Bernardino PERS pension plan, therefore all
related information included in this note refers to the City as a whole unless specifically indicating
otherwise. All qualified permanent and probationary employees are eligible to participate in the
Department’s Miscellaneous Plan, an agent multiple-employer defined benefit pension plan administered
by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment
and administrative agent for its participating member employers. Benefit provisions under the Plan are
established by State statute and Local Government resolution. CalPERS issues publicly available reports
that include a full description of the pension plans regarding benefit provisions, assumptions and
membership information that can be found on the CalPERS website. Additional disclosures and required
supplementary information regarding the City’s plan can be found in the City’s audited financial
statements.
Benefits provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death
benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years
of credited service, equal to one year of full time employment. The Plans’ provisions and benefits in effect
at June 30, 2017, are summarized as follows:
Employees Covered
As of June 30, 2016, the following employees were covered by the benefit terms of the Plan:
City-wide Department
Inactive employees or beneficiaries currently
receiving benefits 1,336 124
Inactive employees entitled to but not yet receiving
benefits 876 -
Active employees 768 239
Total 2,924 369
Contribution Description
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer
contribution rates for all public employers be determined on an annual basis by the actuary and shall be
effective on the July 1 following notice of a change in the rate. The total plan contributions are determined
through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated
amount necessary to finance the costs of benefits earned by employees during the year, with an
additional amount to finance any unfunded accrued liability. The employer is required to
Hire date Prior to January 1,
2013
On or after January
1, 2013
Benefit formula 2.7% @ 55 2% @ 60
Benefit vesting schedule 5 years service 5 years of service
Benefit payments monthly for life monthly for life
Retirement age 50-55 52-67
Monthly benefits, as a % of eligible
compensation 2.0% to 2.7% 1.0% to 2.5%
Required employee contribution rates 8% 8%
Required employer contribution rates 22.024% 22.024%
Miscellaneous
22.b
Packet Pg. 734 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements, continued
For the Year Ended June 30, 2017
35
(7) Pension Plan, continued
contribute the difference between the actuarially determined rate and the contribution rate of employees.
Employer contribution rates may change if plan contracts are amended. Payments made by the employer
to satisfy contribution requirements that are identified by the pension plan terms as plan member
contribution requirements are classified as plan member contributions.
Actuarial Methods and Assumptions used to determine Total Pension Liability
For the measurement period ended June 30, 2016 (the measurement date), the total pension liability was
determined by rolling forward the June 30, 2015 total pension liability determined in the June 30, 2015
valuation. The June 30, 2016 total pension liabilities were based on the following actuarial methods and
assumptions:
Actuarial Cost Method Entry Age Normal in accordance with the requirements
of GASB Statement No. 68
Actuarial Assumptions
Discount Rate 7.65%
Inflation 2.75%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table1 Derived using CalPERS’ Membership Data for all funds
Post Retirement Benefit Increase Contract COLA up to 2.75% until Purchasing Power
Protection Allowance Floor on Purchasing Power
applies, 2.75% thereafter
1 The mortality table used was developed based on CalPERS’ specific data. The table includes 20 years
of mortality improvements using Society of Actuaries Scale BB. For more details on this table, please
refer to the 2014 experience study report.
All other actuarial assumptions used in the June 30, 2015 valuation were based on the results of an
actuarial experience study for the period from 1997 to 2011, including updates to salary increase,
mortality and retirement rates. The Experience Study report can be obtained at the CalPERS website
under Forms and Publications.
Changes of Assumptions
There were no changes of assumptions.
Discount Rate
The discount rate used to measure the total pension liability was 7.65 percent. To determine whether the
municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress
tested plans that would most likely result in a discount rate that would be different from the actuarially
assumed discount rate. Based on the testing of the plans, the test revealed that the assets would not run
out. Therefore, the current 7.65 percent discount rate is appropriate and the use of the municipal bond
rate calculation is not deemed necessary. The long-term expected discount rate of 7.65 percent is applied
to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed
report called “GASB Crossover Testing Report” that can be obtained on CalPERS’ website under the
GASB 68 section.
The long-term expected rate of return on pension plan investments was determined using a building-
block method in which best-estimate ranges of expected future real rates of return (expected returns, net
of pension plan investment expense and inflation) are developed for each major asset class.
22.b
Packet Pg. 735 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements, continued
For the Year Ended June 30, 2017
36
(7) Pension Plan, continued
In determining the long-term expected rate of return, staff took into account both short-term and long-
term market return expectations as well as the expected pension fund cash flows. Such cash flows were
developed assuming that both members and employers will make their required contributions on time
and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected
compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-
60 years) using a building-block approach. Using the expected nominal returns for both short-term and
long-term, the present value of benefits was calculated for each fund. The expected rate of return was
set by calculating the single equivalent expected return that arrived at the same present value of benefits
for cash flows as the one calculated using both short-term and long-term returns. The expected rate of
return was then set equivalent to the single equivalent rate calculated above and rounded down to the
nearest one quarter of one percent.
The table below reflects long-term expected real rate of return by asset class. The rate of return was
calculated using the capital market assumptions applied to determine the discount rate and asset
allocation. The target allocation shown was adopted by the Board effective on July 1, 2015.
Asset Class Current Target
Allocation
Real Return
Years 1 - 101
Real Return
Years 11+2
Global Equity 51.0% 5.25% 5.71%
Global Fixed Income 20.0 0.99 2.43
Inflation Sensitive 6.0 0.45 3.36
Private Equity 10.0 6.83 6.95
Real Estate 10.0 4.50 5.13
Infrastructure and Forestland 2.0 4.50 5.09
Liquidity 1.0 (0.55) (1.05)
1An expected inflation of 2.5% used for this period
2An expected inflation of 3.0% used for this period
Pension Plan Fiduciary Net Position
The plan fiduciary net position disclosed in the GASB 68 accounting valuation report may differ from the
plan assets reported in the funding actuarial valuation report due to several reasons. First, for the
accounting valuations, CalPERS must keep items such as deficiency reserves, fiduciary self-insurance
and OPEB expense included as assets. These amounts are excluded for rate setting purposes in the
funding actuarial valuation. In addition, differences may result from early Comprehensive Annual
Financial Report closing and final reconciled reserves.
22.b
Packet Pg. 736 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements, continued
For the Year Ended June 30, 2017
37
(7) Pension Plan, continued
Changes in Net Pension Liability
The following table shows the Plan’s proportionate share of the net pension liability of the City’s plan over
the measurement period:
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (c) = (a) - (b)
Balance at: 6/30/2015 (VD) $ 184,064,118 $ 139,146,255 $ 44,917,863
Balance at: 6/30/2016 (MD) 188,352,453 134,700,237 53,652,216
Net Changes during 2015-16 4,288,335 (4,446,018) 8,734,353
The net pension liability of the plan is measured as of June 30, 2016, and the total pension liability for
the plan used to calculate the net pension liability was determined by an actuarial valuation of June 30,
2016 rolled forward to June 30, 2017 using standard update procedures. The proportion of the net
pension lability was based on a projection of the Department’s long term share of contributions to the
pension plan relative to the projected contributions of all participating employers, actuarially determined.
The Department’s proportionate share of the net pension lability for the plan as of June 30, 2016 and
2017 was as follows:
Miscellaneous
Plan
Proportion – June 30, 2016 36%
Proportion – June 30, 2017 36%
Change – Increase (Decrease)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the Plan as of the Measurement Date, calculated using
the discount rate of 7.65 percent, as well as what the net pension liability would be if it were calculated
using a discount rate that is 1 percentage-point lower (6.65 percent) or 1 percentage-point higher (8.65
percent) than the current rate:
Discount Rate –
1% (6.65%)
Current Discount
Rate (7.65%)
Discount Rate +
1% (8.65%)
Plan’s Net Pension
Liability – Department
Allocation (36%) $ 77,760,937 $ 53,652,216 $ 33,712,624
Subsequent Events
In December 2016, the CalPERS Board of Administration voted to lower the discount rate from 7.65% to
7.15% effective next fiscal year.
22.b
Packet Pg. 737 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements, continued
For the Year Ended June 30, 2017
38
(7) Pension Plan, continued
Recognition of Gains and Losses
Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position
are recognized in pension expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The
remaining amounts are categorized as deferred outflows and deferred inflows of resources related to
pensions and are to be recognized in future pension expense.
The amortization period differs depending on the source of the gain or loss:
Difference between projected and
actual earnings
5 year straight-line amortization
All other amounts Straight-line amortization over the
expected remaining service lives of all
members that are provided with benefits
(active, inactive, and retired) as of the
beginning of the measurement period.
The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service
years by the total number of plan participants (active, inactive, and retired).
The EARSL for the Plan for the measurement period ending June 30, 2016 is 2.4 years, which was
obtained by dividing the total service years of 7,025 (the sum of remaining service lifetimes of the active
employees) by 2,980 (the total number of participants: active, inactive, and retired). Note that inactive
employees and retirees have remaining service lifetimes equal to 0. Also note that total future service is
based on the members’ probability of decrementing due to an event other than receiving a cash refund.
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
For the measurement period ending June 30, 2016 (the measurement date), the Department recognized
a pension expense of $2,951,544 for the Plan.
As of June 30, 2017, the Department reports other amounts for the Plan as deferred outflow and deferred
inflow of resources related to pensions as follows:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contributions subsequent to
measurement date $3,886,888 $0
Differences between Expected and
Actual Experience 0 (1,560,343)
Changes of Assumptions 0 (527,372)
Net Difference between Projected and
Actual Earnings on Pension Plan
Investments 7,377,708 0
Total $11,264,596 $(2,087,715)
22.b
Packet Pg. 738 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements, continued
For the Year Ended June 30, 2017
39
(7) Pension Plan, continued
The amounts above are net inflows and outflows recognized in the 2015-16 measurement period
expense.
$3,886,888 reported as deferred outflows of resources related to employer contributions subsequent
to the measurement date will be recognized as a reduction of the net pension liability in the year ended
June 30, 2018. That and other amounts reported as deferred outflows of resources and deferred
inflows of resources related to pensions will be recognized as pension expense as follows:
Measurement period
Ended June 30:
Deferred
Outflows/(Inflows)
of Resources
2017 $ (711,008)
2018 643,773
2019 3,423,044
2020 1,934,184
2021 0
Thereafter 0
(8) Other Post-Employment Benefits
Plan Description
The Department provides health benefits to all qualifying retirees and their spouses in accordance with
Memorandums of Understanding under various labor agreements.
Eligibility
Employees are eligible for retiree health benefits if they retire from the Department on or after age 50
with at least 10, 12 or 15 years of service, depending on bargaining unit, and are eligible for a PERS
pension. The latest actuarial valuation of the plan occurred June 30, 2016. Membership consists of the
following:
Funding Policy
The contribution requirements of plan members and the Department are established and may be
amended by the Board. The required contribution is based on projected pay-as-you-go financing
requirements, with an additional amount to prefund benefits as may be determined annually by the Board.
The Department has established an irrevocable trust to which pre-funding contributions are made. For
fiscal year 2017, the Department has funded $2,602,311 for the current year. The Department pays up
to the entire cost of health benefits for eligible retirees and their spouses, subject to the City's vesting
schedule.
Retirees and beneficiaries receiving benefits 134
Active plan members 232
Total plan members 366
22.b
Packet Pg. 739 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements, continued
For the Year Ended June 30, 2017
40
(8) Other Post-Employment Benefits, continued
Annual OPEB Cost and Net OPEB Obligation
The Department’s annual other post-employment benefit (OPEB) cost (expense) is calculated based on
the annual required contribution of the employer (ARC), an amount actuarially determined in accordance
with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities
(or funding excess) over a period not to exceed thirty years. The following table shows the components
of the Department’s annual OPEB cost for the year, the amount actually contributed to the plan, and
changes in the Department’s net OPEB obligation:
The Department's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and
the net OPEB obligation for 2014 and the two preceding years were as follows:
Funded Status and Funding Progress
As of June 30, 2016, the most recent actuarial valuation date, the plan was 50.6% funded. The actuarial
accrued liability for benefits was $36,665,000, the actuarial value of assets was $18,565,000 and the
unfunded actuarial accrued liability (UAAL) was $18,100,100. The covered payroll (annual payroll of
active employees covered by the plan) was $15,647,000 and the ratio of the UAAL to the covered payroll
was 115.7%.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are subject
to continual revision as actual results are compared with past expectations and new estimates are made
about the future. The schedule of funding progress presents multi-year trend information about whether
the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued
liabilities for benefits.
Actual required contribution (ARC) 2,516,000$
Interest on new OPEB obligation 74,000
Amortization of net OPEB obligation (103,000)
Annual OPEB cost (expense) 2,487,000
Contributions made (2,602,311)
Increase (decrease) in net OPEB obligation (115,311)
Net OPEB obligation - beginning of year 1,179,090
Net OPEB obligation - end of year 1,063,779$
Percentage of
Year Annual Paid Annual OPEB OPEB
Ended OPEB Cost Contribution Cost Contibuted Obligation
6/30/2015 2,699,032$ 2,256,321 84% 795,221
6/30/2016 2,785,000 2,401,131 86% 1,179,090
6/30/2017 2,487,000 2,602,311 105% 1,063,779
22.b
Packet Pg. 740 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements, continued
For the Year Ended June 30, 2017
41
(8) Other Post-Employment Benefits, continued
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and the plan members) and include the types of benefits provided at the
time of each valuation and the historical pattern of sharing of benefit costs between the employer and
plan members to that point. The actuarial methods and assumptions used include techniques that are
designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value
of assets, consistent with the long-term perspective of the calculations.
In the June 30, 2016 actuarial valuation, the entry age actuarial cost method was used. The actuarial
assumptions included a rate of return of 6.25% and annual healthcare cost trend rates of 7.5% initially,
reduced by increments to an ultimate rate of 6.10% in 2022. Both rates included a 2.75% inflation
assumption. The actuarial value of assets was determined using techniques that spread the effects of
short-term volatility in the market value of investments over a five-year period. The UAAL is being
amortized as a level percentage of projected payroll on a closed basis. The remaining amortization period
at June 30, 2016 was 17 years.
Schedule of Funding Progress
(9) Joint Ventures
Colton / San Bernardino Regional Tertiary Treatment and Water Reclamation Authority
On August 2, 1994, the City of San Bernardino, through the Department formed a joint powers authority
with the City of Colton to construct, operate, use and maintain tertiary wastewater treatment, disposal
and water reclamations systems, including the Regional Rapid Infiltration and Extraction Facility (RIX).
This authority is governed by a separate board consisting of four members; two appointed by the City of
San Bernardino through the Department’s BOWC and two appointed by the City Council of the City of
Colton. Construction of RIX was administered by the Santa Ana Watershed Project Authority and was
substantially completed during 1996. Administration and operation was turned over at that time. The
cities of San Bernardino and Colton each have a measurable equity interest in the net position of RIX in
proportion to its contributions, which are based on an 80% / 20% split, respectively. Substantially all of
the assets of RIX are in the form of capital assets. Annual revenues (in the form of contributions from
the two member cities) are equal to annual expenses. The Department's equity interest in this joint
venture has been reported as an investment in joint venture in the accompanying statement of net
position. The RIX complete financial statements may be obtained at City of San Bernardino Municipal
Water Department at 444 W. Rialto Avenue San Bernardino, CA 92418.
Actuarial UAAL as a
Actuarial Actuarial Accrued Unfunded % of Covered
Valuation Value of Liability AAL Funded Ratio Covered Payroll
Date Assets (a) (AAL) (b) (UAAL) (b-a) (a/b) Payroll (c)(b-a)/c
6/30/2012 8,556,000$ 28,831,000$ 20,275,000$ 29.7% 14,765,000$ 137.3%
6/30/2014 13,380,000 35,012,000 21,632,000 38.2% 15,531,000 139.3%
6/30/2016 18,565,000 36,665,000 18,100,000 50.6% 15,647,000 115.7%
22.b
Packet Pg. 741 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements, continued
For the Year Ended June 30, 2017
42
(9) Joint Ventures, continued
San Bernardino Public Safety Authority
On April 1, 1968, the City of San Bernardino and the County of San Bernardino formed the San
Bernardino Public Safety Authority (PSA), a joint powers authority, as a financing vehicle to construct
public safety buildings and improvements to the wastewater treatment plant. In accordance with the
terms of an installment purchase agreement, title to the capital assets financed through the PSA were
recognized as capital assets of the City at the inception of the installment purchase agreement between
the City and the PSA. The City's remaining interest in the joint venture is in the form of cash and
investments held by the PSA for debt service related activity. The Department's equity interest in these
assets has been recognized in the accompanying statement of net position as an investment in joint
venture. The governing board authorized the dissolution of the Authority on January 12, 2017.
West End Water Development, Treatment and Conservation Joint Powers Authority
On August 15, 1990, the City of San Bernardino joined the West End Water Development, Treatment
and Conservation Joint Powers Authority (WEJPA) as a financing vehicle for construction of water
facilities. A three-member board consisting of one representative from each agency’s governing body
governs the WEJPA. This joint venture was formed to provide a financing vehicle for the three member
agencies. This joint venture is currently inactive.
(10) Commitments and Contingencies
Risk Management
Risk management activities are recorded in all utility funds. Significant losses are covered by insurance
for all major events except workers’ compensation, for which the Department retains risk of loss in
conjunction with the City of San Bernardino’s risk management program for workers compensation.
Settlement amounts have not exceeded insurance coverage for the current year or the prior three years.
Insurance coverage has been increased over the past several years.
The Department records an estimated liability for workers’ compensation. Claims liabilities are based on
estimates of the ultimate cost of reported claims and an estimate for claims incurred but not reported
based upon historical experience. Workers’ compensation claims liability is not discounted.
The following are the changes in approximate aggregate liabilities for the year ended June 30, 2016 and
June 30, 2017. During the past three fiscal (claims) years, the Department had no settlements or
judgments that exceeded pooled or insured coverage. There was also no significant reductions in pooled
or insured liability coverage in fiscal year 2017.
Water Sewer Sewer
Utility Utility Collection Total
Balance, June 30, 2015 1,213,539$ 239,673 - 1,453,212
Claims and changes in estimates 119,427 81,607 - 201,034
Claims payments (284,640) (75,100) - (359,740)
Balance, June 30, 2016 1,048,326 246,180 - 1,294,506
Claims and changes in estimates 800,557 435,394 173,347 1,409,298
Claims payments (239,080) (25,497) (28,624) (293,201)
Balance, June 30, 2017 1,609,803$ 656,077 144,723 2,410,603
Claims Liabilities
22.b
Packet Pg. 742 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements, continued
For the Year Ended June 30, 2017
43
(10) Commitments and Contingencies, continued
Litigation
In the ordinary course of operations, the Department is subject to claims and litigation from outside
parties. After consultation with legal counsel, the Department believes the ultimate outcome of such
matters, if any, will not materially affect its financial condition.
(11) Federal and State Grants
Grant funds received by the Department are subject to audit by the grantor agencies. Such audit could
lead to requests for reimbursements to the grantor agencies for expenditures disallowed under terms of
the grant. Management of the Department believes that such disallowances, if any, would not be
significant. The Department produces a Single Audit that details the use of grant and Consent Decree
funds (see note 13 for information on the Consent Decree).
(12) Consent Decree
In 1996, the City of San Bernardino filed a complaint against the United States of America, Department
of the Army to recover damages, response costs and other available remedies relating to contamination
alleged to have originated at a World War II army installation known as Camp Ono. In March 2005, the
United States District Court, Central Division entered judgment, in the form of a consent decree, in the
matter of City of San Bernardino v. United States of America. The Consent Decree settles the City’s and
the State’s claims arising from the groundwater contamination allegedly caused by the Army. The
Consent Decree contains a number of provisions obligating the City (through the Department) to operate
and maintain the Newmark Groundwater Superfund Site (Site). The Site consists of two operable units,
the Newmark Operable Unit and the Muscoy Operable Unit. The Newmark Operable Unit was declared
operational and functional in 1998. The Muscoy Operable unit was declared operational and functional
in 2007.
The Consent Decree provided for a payment of $69 million from the Army to the City for performance of
the work outlined in the Consent Decree. Upon acceptance of the Consent Decree, the Department
received title to all facilities constructed by the United States Environmental Protection Agency (EPA) of
the Site and agreed to operate and maintain the groundwater extraction and treatment system for a period
of 50 years. The $69 million payment consisted of $59 million for operations and maintenance
and $10 million for the construction of certain capital facilities that would be required in the future; the
funds are subject to strict limitations, contained in the Consent Decree, as to how the money may be
spent.
Pursuant to the Consent Decree, $10 million, including interest earned, has been set aside to be used
only for (i) funding construction of treatment and directly related transmission systems that expand the
Department’s capacity to deliver potable water and (ii) funding work performed by the Department to
complete construction of the Muscoy Operable Unit extraction system. These capital facility funds may
not be used for costs incurred to operate, maintain, repair or retrofit components of the site extraction of
treatment systems constructed by EPA.
In March 2006, the Department entered into a Guaranteed Investment Contract with AIG Match Funding
Corporation. The Department invested $16,482,039 of excess Consent Decree funds into an interest
bearing Escrow Fund investment with an interest rate of 4.95% per annum. These funds were invested
to pay costs associated with the water facilities defined in the Consent Decree for years 2035-2056. An
additional $50 million was used to purchase a blended insurance policy to provide a financial vehicle that
provides cost gap coverage for the first 30 years of expenses.
22.b
Packet Pg. 743 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements, continued
For the Year Ended June 30, 2017
44
(12) Consent Decree, continued
The terms of the Guaranteed Investment Contract only provided the Department with the position of a
secured creditor with respect to an AIG bankruptcy. As concerns arose regarding AIG’s financial
credibility, in October 2009, the Department negotiated and accepted a “payout” in the amount of
$18,661,876 which represented the principal and accrued interest as of that date. These funds are
currently invested in a diversified portfolio managed by PFM Asset Management and present in more
detail in note 3.
(13) Transfer of Operations
On November 18, 2016, the City charter approved by voters assigned responsibility for the sewer r
collection system to the San Bernardino Municipal W ater Department under the direction of the Water
Board of Commissioners. As a result, the City transferred operational management and the related
assets of the sewer collection system to the Department.
(14) Net Position
Net position at June 30, 2017, consisted of the following:
Water Sewer Sewer Collection
Utility Utility Utility Total
Net investment in capital assets:
Non-depreciable assets 8,787,415$ 18,489,279 - 27,276,694
Depreciable assets 278,137,114 147,364,284 39,043,703 464,545,101
Accumulated Depreciation and amortization (95,520,113) (100,920,020) (20,847,751) (217,287,884)
Less: related debt
Notes payable, current portion - (300,000) - (300,000)
Bonds payable, current portion (967,638) (596,403) - (1,564,041)
Notes payable, noncurrent portion - (600,000) - (600,000)
Bonds payable, noncurrent portion (53,054,748) (34,036,957) - (87,091,705)
Unspent bond prceeds 32,187,716 33,233,600 - 65,421,316
Total net investment in capital assets 169,569,746 62,633,783 18,195,952 250,399,481
Restricted for capital:
Cash and cash equivalents, restricted for capital - 7,944,758 - 7,944,758
Unrestricted:
Designated for operating reserve - 2,976,149 - 2,976,149
Designated for rate stabilization reserve - 2,802,226 - 2,802,226
Designated for emergency replacement reserve - 4,217,258 - 4,217,258
Designated for capital replacement reserve - 20,000,000 - 20,000,000
Undesignated (19,564,464) 930,120 14,687,959 (3,946,385)
Total unrestricted (19,564,464) 30,925,753 14,687,959 26,049,248
Total net position 150,005,282$ 101,504,294$ 32,883,911$ 284,393,487$
22.b
Packet Pg. 744 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements, continued
For the Year Ended June 30, 2017
45
(15) Subsequent Events
The Department’s Sewer Utility has historically operated its Water Reclamation Plant (WRP) through a
joint partnership agreement with East Valley Water District (EVWD) and the City of Loma Linda and has
treated the sewage of these entities under this agreement. EVWD is currently working towards
completion of a wastewater treatment plant, which would mean that they would terminate their interest in
the joint partnership agreement. The Department recently settled a lawsuit with EVWD that supports
EVWD’s proposed wastewater treatment plant, which will decrease wastewater flow to the Department’s
Water Reclamation Plant (WRP) by approximately 6 million gallons per day (27% of current flows). The
Department will also no longer receive the pertaining revenue. The settlement includes operational and
financial measures that will aid the Department in adjusting to EVWD’s departure, which will likely occur
in three to four years.
22.b
Packet Pg. 745 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
46
REQUIRED SUPPLEMENTARY INFORMATION
22.b
Packet Pg. 746 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
San Bernardino Municipal Water Department
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios
Last 10 Years*
Measurement Period 2015-16 2014-15 2013-14
Department's proportion of the net pension liability 36% 36% 36%
Department's proportionate share of the net pension liability 53,652,216 44,917,863 40,932,398
Department's covered payroll 14,177,779 14,087,004 14,017,065
Department's proportionate share of the net pension liability as a
percentage of its covered payroll 378% 319% 292%
Plan fiduciary net position as a percentage of the total pension
liability 134,700,237 139,146,255 141,121,803
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:
Benefits changes: The figures do not include any liability impact that may have resulted from plan changes which
occurred after the June 30, 2015 valuation date. This applies for voluntary benefit changes as well as any offers of
Two Years Additional Service Credit (a.k.a. Golden Handshakes)
Changes in Assumptions: In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the
discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan
administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.
* Fiscal Year 2015 was the 1st year of implementation, therefore, only three years are shown.
47
22.b
Packet Pg. 747 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
San Bernardino Municipal Water Department
Required Supplementary Information
Schedule of Plan Contributions
Last 10 Years*
Fiscal Year
2016-17
Fiscal Year
2015-16
Fiscal Year
2014-15
Actuarially Determined Contribution 3,886,888 3,607,950 2,979,160
(3,886,888) (3,607,950) (2,979,160)
Contribution Deficiency (Excess)-$ - -
Covered Payroll 14,876,739$ 14,177,779 14,087,004
Contributions as a Percentage of Covered-Employee Payroll 26.13% 25.45% 21.15%
Actuarial Cost Method
Amortization Method/Period
Asset Valuation Method
Inflation
Salary Increases
Payroll Growth
Investment Rate of Return
Retirement Age
Mortality
Other Information:
For changes to previous year's information, refer to past GASB 68 reports.
The probabilities of Retirement are based on the 2010 CalPERS Experience
The probabilities of mortality are based on the 2010 CalPERS Experience Study
*Fiscal year 2016-17 was the 3rd year of implementation, therefore, only three years are shown.
Notes to Schedule of Plan Contributions:
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2016-
17 were derived from the June 30, 2014 funding valuation report.
Entry Age Normal
For details, see June 30, 2013 Funding Valuation Report.
Market Value of Assets. For details, see June 30, 2013 Funding Valuation
Contributions in Relation to the Actuarially Determined
Contribution
2.75%
Varies by Entry Age and Service
3.00%
7.50% Net of Pension Plan Investment and Administrative Expenses; includes
48
22.b
Packet Pg. 748 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
49
PAGE INTENTIONALLY LEFT BLANK
22.b
Packet Pg. 749 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
STATISTICAL SECTION
(Unaudited)
50
22.b
Packet Pg. 750 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
FINANCIAL TRENDS
These schedules contain trend informaton to help the
reader understand how the Department's financial performance
and well-being have changed over time.
51
22.b
Packet Pg. 751 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year
Ended
Total
Operating
Revenue
Total
Operating
Expense
Operating
Income
Total Non-
Operating
Income
(Expense)
Total
Contributed
Capital
Changes in Net
Position
6/30/2008 46,757,411 54,172,974 (7,415,563) 3,838,588 13,263,336 9,686,361
6/30/2009 47,171,798 54,044,608 (6,872,810) 2,717,707 5,197,854 1,042,751
6/30/2010 47,808,997 57,965,395 (10,156,398) 1,375,536 7,510,777 (1,270,085)
6/30/2011 54,280,835 56,328,523 (2,047,688) 1,408,498 4,390,162 3,750,972
6/30/2012 60,756,697 58,971,535 1,785,162 1,974,266 3,055,921 6,815,349
6/30/2013 61,883,615 57,327,537 4,556,078 1,861,758 4,896,921 11,314,757
6/30/2014 62,292,428 57,965,395 4,327,033 1,375,536 7,510,777 13,213,346
6/30/2015 57,805,304 55,074,661 2,730,643 3,801,830 4,977,945 11,510,418
6/30/2016 55,376,650 53,529,824 1,846,826 2,059,111 4,271,325 8,177,262
6/30/2017 64,488,587 61,895,872 2,592,715 8,431,207 21,995,016 33,018,938
Source: Department's annual reports
* Fiscal Year 2007-2016 contain only the Sewer Treatment and Water Utility Funds. The Sewer Collections Fund was
transferred to the Department on May 1, 2017.
(5,000)
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017ThousandsChanges in Net Position- Combined Funds
Changes in Net Position
52
22.b
Packet Pg. 752 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Water Fund
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year
Ended
Total
Operating
Revenue
Total
Operating
Expense
Operating
Income
Total Non-
Operating
Income
(Expense)
Total
Contributed
Capital
Changes in Net
Position
6/30/2008 27,337,093 32,453,101 (5,116,008) 3,479,605 11,397,947 9,761,544
6/30/2009 27,258,954 32,934,974 (5,676,020) 2,853,518 3,919,197 1,096,695
6/30/2010 27,688,694 31,953,080 (4,264,386) 2,101,540 5,829,803 3,666,957
6/30/2011 33,027,707 35,811,915 (2,784,208) 2,025,029 2,782,168 2,022,989
6/30/2012 37,106,217 39,155,830 (2,049,613) 2,436,449 2,384,710 2,771,546
6/30/2013 37,868,846 37,430,224 438,622 2,492,448 3,421,521 6,352,591
6/30/2014 36,671,903 36,041,616 630,287 2,504,705 6,521,601 9,656,593
6/30/2015 33,121,128 35,504,582 (2,383,454) 2,702,953 3,905,104 4,224,603
6/30/2016 30,001,871 34,834,362 (4,832,491) 2,283,230 2,812,192 262,931
6/30/2017 33,358,907 37,074,670 (3,715,763) (546,280) 2,194,093 (2,067,950)
Source: Department's annual reports
(4,000)
(2,000)
-
2,000
4,000
6,000
8,000
10,000
12,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017ThousandsChanges in Net Position-Water Fund
Changes in Net Position
53
22.b
Packet Pg. 753 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Sewer Fund
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year
Ended
Total
Operating
Revenue
Total
Operating
Expense
Operating
Income
Total Non-
Operating
Income
(Expense)
Total
Contributed
Capital
Changes in Net
Position
6/30/2008 20,847,984 23,147,539 (2,299,555) 358,983 1,865,389 (75,183)
6/30/2009 21,208,021 22,404,811 (1,196,790) (135,811) 1,278,657 (53,944)
6/30/2010 22,424,943 24,474,747 (2,049,804) (19,598) 495,768 (1,573,634)
6/30/2011 23,433,833 22,697,313 736,520 (616,531) 1,607,994 1,727,983
6/30/2012 25,888,729 22,053,954 3,834,775 (462,183) 671,211 4,043,803
6/30/2013 26,414,653 22,297,197 4,117,456 (630,690) 1,475,400 4,962,166
6/30/2014 25,670,774 21,974,028 3,696,746 (1,129,169) 989,176 3,556,753
6/30/2015 24,734,425 19,620,328 5,114,097 1,098,877 1,072,841 7,285,815
6/30/2016 25,410,740 18,731,423 6,679,317 (224,119) 1,459,133 7,914,331
6/30/2017 28,612,019 24,139,878 4,472,141 (3,624,658) 1,355,494 2,202,977
Source: Department's annual reports
(4,000)
(2,000)
-
2,000
4,000
6,000
8,000
10,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017ThousandsChanges in Net Position-Sewer Fund
Changes in Net Position
54
22.b
Packet Pg. 754 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Sewer Collection Fund
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year
Ended
Total
Operating
Revenue
Total
Operating
Expense
Operating
Income
Total Non-
Operating
Income
(Expense)
Total
Contributed
Capital
Changes in Net
Position
6/30/2008 n/a n/a n/a n/a n/a n/a
6/30/2009 n/a n/a n/a n/a n/a n/a
6/30/2010 n/a n/a n/a n/a n/a n/a
6/30/2011 n/a n/a n/a n/a n/a n/a
6/30/2012 n/a n/a n/a n/a n/a n/a
6/30/2013 n/a n/a n/a n/a n/a n/a
6/30/2014 n/a n/a n/a n/a n/a n/a
6/30/2015 n/a n/a n/a n/a n/a n/a
6/30/2016 n/a n/a n/a n/a n/a n/a
6/30/2017 *2,891,203 1,054,866 1,836,337 12,602,145 18,445,429 32,883,911
* The Sewer Collection Utility was transferred to the Water Department on May 1, 2017 so prior year data is unavailable.
Source: Department's annual reports
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017ThousandsChanges in Net Position-Sewer Collection Fund
Changes in Net Position
55
22.b
Packet Pg. 755 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Net Position By Component
Last Ten Fiscal Years
Fiscal Year
Ended
Net Investment
in Capital Assets
Restricted Net
Position
Unrestricted
Net Position
Total Net
Position
6/30/2008 196,892,664 24,205,033 26,955,942 248,053,639
6/30/2009 199,628,149 19,831,726 29,636,515 249,096,390
6/30/2010 204,066,502 11,992,059 35,131,152 251,189,713
6/30/2011 206,520,977 8,276,462 40,143,246 254,940,685
6/30/2012 212,490,593 7,389,246 43,545,621 263,425,460
6/30/2013 200,072,942 7,799,773 69,315,171 277,187,886
6/30/2014 206,663,567 7,515,658 66,524,589 280,703,814
6/30/2015 223,053,269 7,633,049 12,510,969 243,197,287
-
6/30/2016 235,670,073 7,814,086 7,890,390 251,374,549
6/30/2017*250,399,481 7,944,758 26,049,248 284,393,487
Source: Department's annual reports
* Fiscal Year 2007-2016 contain only Sewer Treatment and Water Utility Funds. The Sewer Collections Fund
was transferred to the Department on May 1, 2017.
-
50,000
100,000
150,000
200,000
250,000
300,000
ThousandsNet Position by Component:
Combined (in 1000s)
Unrestricted Net Position
Restricted Net Position
Net Investment in Capital
Assets
56
22.b
Packet Pg. 756 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Net Position By Component-Water Fund
Last Ten Fiscal Years
Fiscal Year
Ended
Net
Investment in
Capital Assets
Restricted Net
Position
Unrestricted
Net Position
Total Net
Position
6/30/2008 130,610,364 8,406,696 9,047,256 148,064,316
6/30/2009 133,834,066 6,328,449 8,998,496 149,161,011
6/30/2010 139,688,690 1,528,434 11,610,844 152,827,968
6/30/2011 140,912,873 - 13,938,084 154,850,957
6/30/2012 148,063,104 41,320 13,658,195 161,762,619
6/30/2013 156,758,127 - 12,133,904 168,892,031
6/30/2014 163,797,283 - 11,728,071 175,525,354
6/30/2015 166,963,238 - (15,152,937) 151,810,301
6/30/2016 169,730,998 - (17,657,766) 152,073,232
6/30/2017 169,569,746 - (19,564,464) 150,005,282
Source: Department's annual reports
(50,000)
-
50,000
100,000
150,000
200,000
2008200920102011201220132014201520162017ThousandsNet Position by Component:
Water Fund (in 1000s)
Unrestricted Net Position
Restricted Net Position
Net Investment in Capital
Assets
57
22.b
Packet Pg. 757 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Net Position By Component-Sewer Fund
Last Ten Fiscal Years
Fiscal Year
Ended
Net
Investment in
Capital Assets
Restricted Net
Position
Unrestricted
Net Position
Total Net
Position
6/30/2008 66,282,300 15,798,337 17,908,686 99,989,323
6/30/2009 65,794,083 13,503,277 20,638,019 99,935,379
6/30/2010 64,377,812 10,463,625 23,520,308 98,361,745
6/30/2011 65,608,104 8,276,462 26,205,162 100,089,728
6/30/2012 64,427,489 7,347,926 29,887,426 101,662,841
6/30/2013 43,314,815 7,799,733 57,181,267 108,295,815
6/30/2014 42,866,284 7,515,658 54,796,518 105,178,460
6/30/2015 56,090,031 7,633,049 27,663,906 91,386,986
6/30/2016 65,939,075 7,814,086 25,548,156 99,301,317
6/30/2017 62,633,783 7,944,758 30,925,753 101,504,294
Source: Department's annual reports
-
20,000
40,000
60,000
80,000
100,000
120,000
ThousandsNet Position by Component: Sewer Fund
(in 1000s)
Unrestricted Net Position
Restricted Net Position
Net Investment in Capital
Assets
58
22.b
Packet Pg. 758 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Net Position By Component-Sewer Collection Fund
Last Ten Fiscal Years
Fiscal Year
Ended
Net
Investment in
Capital Assets
Restricted Net
Position
Unrestricted
Net Position
Total Net
Position
6/30/2008 n/a n/a n/a n/a
6/30/2009 n/a n/a n/a n/a
6/30/2010 n/a n/a n/a n/a
6/30/2011 n/a n/a n/a n/a
6/30/2012 n/a n/a n/a n/a
6/30/2013 n/a n/a n/a n/a
6/30/2014 n/a n/a n/a n/a
6/30/2015 n/a n/a n/a n/a
6/30/2016 n/a n/a n/a n/a
6/30/2017*18,195,952 - 14,687,959 32,883,911
Source: Department's annual reports
* The Sewer Collection Utility was transferred to the Water Department on May 1, 2017 so prior year data is
unavailable.
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
ThousandsNet Position by Component: Sewer Collection Fund
(in 1000s)
Unrestricted Net Position
Restricted Net Position
Net Investment in Capital Assets
59
22.b
Packet Pg. 759 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Water Fund Revenue by Type
Last Ten Fiscal Years
Fiscal Year
Ended Water Sales Service
Charges/Fees
Other
Services
Total Operating
Revenue
Interest
Income
Rental
Income
Other
Income
Gain on
asset
disposition
Noncapital
grant funds
Total Non
Operating
Income
6/30/2008 24,194,275 3,005,938 136,880 27,337,093 1,613,192 95,818 178,348 - 2,715,957 4,603,315
6/30/2009 24,147,627 2,991,468 119,859 27,258,954 1,008,607 101,130 - 309,708 2,043,889 3,463,334
6/30/2010 24,436,854 3,118,571 133,269 27,688,694 578,912 98,638 175,782 8,988 1,894,624 2,756,944
6/30/2011 29,782,786 3,101,431 143,489 33,027,707 451,927 117,454 59,960 - 1,928,999 2,558,340
6/30/2012 33,315,084 3,665,354 125,779 37,106,217 219,027 133,400 1,041,667 - 1,838,223 3,232,317
6/30/2013 34,252,357 3,476,061 140,429 37,868,846 - 122,826 211,032 - 3,110,201 3,444,059
6/30/2014 34,777,112 1,754,614 140,176 36,671,903 93,428 160,089 478,512 4,446 2,030,066 2,766,541
6/30/2015 31,217,534 1,789,654 113,940 33,121,128 54,786 181,809 545,840 - 2,089,637 2,872,072
6/30/2016 28,293,790 1,604,472 103,609 30,001,871 63,566 134,845 495,298 - 1,696,219 2,389,928
6/30/2017 31,893,209 1,347,993 117,705 33,358,907 31,504 203,186 301,833 - 2,047,946 2,584,469
Source: Department's annual reports
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
ThousandsOperating Revenue by Type-Water Fund
Other Services
Service Charges/Fees
Water Sales
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
ThousandsNon-Operating Revenue by Type: Water Fund
Noncapital grant funds
Gain on asset disposition
Other Income
Rental Income
Interest Income
60
22.b
Packet Pg. 760 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Sewer Fund Revenue by Type
Last Ten Fiscal Years
Fiscal Year
Ended
Sewer
Treatment
Revenue
Industrial
Waste
Other
Operating
Revenue
Total Operating
Revenue
Interest
Income
Rental
Income
Other
Income
Gain on
Asset
Disposition
/Joint
Venture
Total Non
Operating
Income
6/30/2008 20,009,959 372,631 465,394 20,847,984 2,319,570 29,425 - - 2,348,995
6/30/2009 20,124,192 406,686 677,142 21,208,021 1,652,562 26,826 - - 1,679,388
6/30/2010 20,771,749 431,300 1,221,894 22,424,942 1,603,840 26,303 - - 1,630,143
6/30/2011 21,833,085 379,316 1,221,431 23,433,833 817,740 23,517 - 41,609 882,866
6/30/2012 24,250,417 376,550 1,261,762 25,888,729 812,885 21,907 - - 834,792
6/30/2013 25,261,792 296,153 856,708 26,414,654 340,689 22,574 - - 363,263
6/30/2014 25,350,988 319,786 - 25,670,774 443,836 20,669 202,078 - 666,583
6/30/2015 24,399,415 335,010 - 24,734,425 481,211 700 498,247 345,884 1,326,042
6/30/2016 25,030,569 380,171 - 25,410,740 658,456 41,498 359,800 - 1,059,754
6/30/2017 28,022,259 589,760 - 28,612,019 23,391 15,908 - - 39,299
Source: Department's annual reports
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
ThousandsOperating Revenue by Type-Sewer Fund
Other Operating Revenue
Industrial Waste
Sewer Treatment Revenue
-
500
1,000
1,500
2,000
2,500
ThousandsNon-Operating Revenue by Type - Sewer Treatment Fund
Gain on Asset Disposition /Joint Venture
Other Income
Rental Income
Interest Income
61
22.b
Packet Pg. 761 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Sewer Collection Fund Revenue by Type
Last Ten Fiscal Years
Fiscal Year
Ended
Sewer
Treatment
Revenue
Service
Charges/Fees
Other
Operating
Revenue
Total Operating
Revenue
Interest
Income
Rental
Income
Other
Income
Gain on asset
disposition/Co
ntribution
from City
Total Non
Operating
Income
6/30/2008 n/a n/a n/a n/a n/a n/a n/a n/a n/a
6/30/2009 n/a n/a n/a n/a n/a n/a n/a n/a n/a
6/30/2010 n/a n/a n/a n/a n/a n/a n/a n/a n/a
6/30/2011 n/a n/a n/a n/a n/a n/a n/a n/a n/a
6/30/2012 n/a n/a n/a n/a n/a n/a n/a n/a n/a
6/30/2013 n/a n/a n/a n/a n/a n/a n/a n/a n/a
6/30/2014 n/a n/a n/a n/a n/a n/a n/a n/a n/a
6/30/2015 n/a n/a n/a n/a n/a n/a n/a n/a n/a
6/30/2016 n/a n/a n/a n/a n/a n/a n/a n/a n/a
6/30/2017 2,860,627 30,576 - 2,891,203 28,315 - - 12,580,781 12,609,096
Source: Department's annual reports
* The Sewer Collection Utility was transferred to the Water Department on May 1, 2017 so prior year
data is unavailable.
-
500
1,000
1,500
2,000
2,500
3,000
3,500
ThousandsOperating Revenue by Type-Sewer Collection
Fund
Other Operating Revenue
Service Charges/Fees
Sewer Treatment Revenue
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
ThousandsNon-Operating Revenue by Type - Sewer Collections Fund
Gain on asset disposition/Contribution
from City
Other Income
Rental Income
Interest Income
62
22.b
Packet Pg. 762 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Water Fund Expenses by Type
Last Ten Fiscal Years
Fiscal Year
Ended
Administration &
Customer Service
Plant
Operations
and
Distribution
Engineering Maintenance
Depreciation
and
Amortization
Total
Operating
Expense
Interest
Expense
Loss on asset
disposition
Other Non-
operating
expense
Total Non-
Operating
Expense
6/30/2008 12,493,276 11,250,830 2,405,221 1,813,310 4,490,464 32,453,101 592,182 531,528 - 1,123,710
6/30/2009 11,901,700 10,908,332 3,046,765 1,853,244 5,224,933 32,934,974 601,795 - 8,021 609,816
6/30/2010 11,552,062 11,209,298 2,204,374 1,577,642 5,409,704 31,953,080 175,782 8,988 1,894,624 2,079,394
6/30/2011 15,489,152 10,440,753 2,220,956 1,634,919 5,396,135 35,181,915 531,839 1,472 - 533,311
6/30/2012 16,304,830 12,959,507 2,492,056 1,628,764 5,770,673 39,155,830 526,915 268,953 - 795,868
6/30/2013 16,149,788 11,073,338 2,813,459 1,888,236 5,505,403 37,430,224 689,665 261,946 - 951,611
6/30/2014 14,410,400 11,395,305 2,426,717 1,837,556 5,971,638 36,041,616 261,836 - - 261,836
6/30/2015 13,244,552 12,467,017 2,439,170 1,988,719 5,365,124 35,504,582 169,119 - - 169,119
6/30/2016 13,313,085 11,406,861 2,326,551 1,978,534 5,809,331 34,834,362 106,698 - - 106,698
6/30/2017 13,971,106 12,436,501 2,329,142 1,859,871 6,478,050 37,074,670 3,130,749 - - 3,130,749
Source: Department's annual reports
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
ThousandsOperating Expenses by Type-Water Fund
Depreciation and Amortization
Maintenance
Engineering
Plant Operations and Distribution
Administration & Customer Service
-
500
1,000
1,500
2,000
2,500
3,000
3,500
ThousandsNon-Operating Expense by Type: Water Fund
Other Non-operating expense
Loss on asset disposition
Interest Expense
63
22.b
Packet Pg. 763 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Sewer Fund Expenses by Type
Last Ten Fiscal Years
Fiscal Year
Ended
Administration
& Customer
Service
Plant
Operations Engineering Maintenance
Depreciation
and
Amortization
Total Operating
Expense
Interest
Expense
Loss on
Asset
Disposition
/Joint
Venture
Other Non-
operating
expense
Total Non-
Operating
Expense
6/30/2008 4,318,939 10,293,707 32,336 3,138,509 5,364,048 23,147,539 1,868,033 3,784 118,195 1,990,012
6/30/2009 3,334,540 10,237,490 16,278 2,928,189 5,888,314 22,404,811 1,701,371 3,736 110,092 1,815,199
6/30/2010 5,807,692 10,170,647 - 3,059,780 5,436,628 24,474,747 1,529,650 2,142 117,949 1,649,741
6/30/2011 3,989,616 10,627,225 - 3,108,701 4,971,771 22,697,313 1,343,649 - 155,748 1,499,397
6/30/2012 3,823,627 10,328,073 - 3,257,127 4,645,127 22,053,954 1,147,810 34,114 118,051 1,299,975
6/30/2013 4,454,713 10,040,895 - 3,392,868 4,408,721 22,297,197 828,129 11,644 154,180 993,953
6/30/2014 5,345,726 9,528,218 527,294 3,146,275 3,426,515 21,974,028 557,049 16,244 1,238,703 1,811,996
6/30/2015 4,016,198 9,292,501 534,226 2,906,853 2,870,550 19,620,328 227,165 - - 227,165
6/30/2016 4,299,808 9,800,283 464,554 2,874,352 1,292,426 18,731,423 167,795 1,116,078 - 1,283,873
6/30/2017 6,799,639 9,620,639 480,951 3,135,686 4,102,963 24,139,878 1,300,263 2,321,485 42,209 3,663,957
Source: Department's annual reports
-
5,000
10,000
15,000
20,000
25,000
30,000
ThousandsOperating Expenses by Type-Sewer Fund
Depreciation and Amortization
Maintenance
Engineering
Plant Operations
Administration & Customer Service
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
ThousandsNon-Operating Expense by Type: Sewer Fund
Other Non-operating expense
Loss on Asset Disposition /Joint
Venture
Interest Expense
64
22.b
Packet Pg. 764 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Sewer Collection Fund Expenses by Type
Last Ten Fiscal Years
Fiscal Year
Ended
Administration
& Customer
Service
Plant
Operations Engineering Maintenance
Depreciation
and
Amortization
Total Operating
Expense
Interest
Expense
Loss on
Asset
Disposition
Other Non-
operating
expense
Total Non-
Operating
Expense
6/30/2008 - -
6/30/2009 - -
6/30/2010 - -
6/30/2011 - -
6/30/2012 - -
6/30/2013 - -
6/30/2014 - -
6/30/2015 - -
6/30/2016 - -
6/30/2017 314,265 492,675 - - 247,926 1,054,866 - - 6,951 6,951
Source: Department's annual reports
* The Sewer Collection Utility was transferred to the Water Department on May 1, 2017 so prior year data
is unavailable.
-
50
100
150
200
250
300
ThousandsOperating Expenses by Type-Sewer Collection Fund
Depreciation and Amortization
Maintenance
Engineering
Plant Operations
Administration & Customer Service
-
1
2
3
4
5
6
7
8
ThousandsNon-Operating Expense by Type: Sewer Collection Fund
Other Non-operating expense
Loss on Asset Disposition
Interest Expense
65
22.b
Packet Pg. 765 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
DEBT CAPACITY INFORMATION
These schedules contain information to help the reader assess
the affordability of the Department's current level of
outstanding debt and ability to issue debt in the future.
66
22.b
Packet Pg. 766 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Water Fund Debt Service Coverage
Last Ten Fiscal Years
Fiscal Year
Ended
Total
Operating
Revenue
Net Operating
Expenses
(Excluding)
Depreciation
Net
Operating
Income (Loss)
Net Non-
Operating
Income/
(Expense)
Amount
Available for
Debt Service Principal Interest
Debt Per
Capital
Coverage
Ratio
6/30/2008 27,337,093 27,962,637 (625,544) 3,479,605 2,854,061 541,079 485,626 1,026,705 2.78
6/30/2009 27,258,954 27,710,041 (451,087) 2,853,518 2,402,431 559,106 603,368 1,162,474 2.07
6/30/2010 27,688,694 26,543,376 1,145,318 2,101,540 3,246,858 956,106 667,146 1,623,252 2.00
6/30/2011 33,027,707 29,785,780 3,241,927 2,025,029 5,266,956 1,352,148 548,318 1,900,466 2.77
6/30/2012 37,106,217 33,385,157 3,721,060 2,436,449 6,157,509 974,027 505,819 1,479,846 4.16
6/30/2013 37,868,846 31,924,821 5,944,025 2,492,448 8,436,473 1,227,491 547,616 1,775,107 4.75
6/30/2014 36,671,903 30,069,978 6,601,925 2,504,705 9,106,630 1,658,265 660,854 2,319,119 3.93
6/30/2015 33,121,128 30,139,458 2,981,670 2,702,953 5,684,623 1,748,054 570,434 2,318,488 2.45
6/30/2016 30,001,871 29,025,031 976,840 2,283,230 3,260,070 1,813,594 523,274 2,336,868 1.40
6/30/2017 33,358,907 30,596,620 2,762,287 2,584,469 5,346,756 246,887 467,149 714,036 7.49
Source: Department's annual reports
67
22.b
Packet Pg. 767 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Sewer Fund Debt Service Coverage
Last Ten Fiscal Years
Fiscal Year
Ended
Total
Operating
Revenue
Net Operating
Expenses
(Excluding)
Depreciation
Net
Operating
Income (Loss)
Net Non-
Operating
Income/
(Expense)
Amount
Available for
Debt Service Principal Interest
Debt Per
Capital
Coverage
Ratio
6/30/2008 20,847,984 17,783,491 3,064,493 358,983 3,423,476 3,823,275 1,855,515 5,678,790 0.60
6/30/2009 21,208,021 16,516,497 4,691,524 (135,811) 4,555,713 4,197,317 1,687,518 5,884,835 0.77
6/30/2010 22,424,942 19,038,119 3,386,823 (19,598) 3,367,225 4,181,342 1,635,707 5,817,049 0.58
6/30/2011 23,433,833 17,725,542 5,708,291 (616,531) 5,091,760 2,130,378 3,706,195 5,836,573 0.87
6/30/2012 25,888,729 17,408,827 8,479,902 (462,183) 8,017,719 4,417,731 1,166,496 5,584,227 1.44
6/30/2013 26,414,654 17,888,476 8,526,178 (630,690) 7,895,488 4,724,227 757,010 5,481,237 1.44
6/30/2014 25,670,774 18,547,513 7,123,261 (1,129,169) 5,994,092 4,424,090 747,460 5,171,550 1.16
6/30/2015 24,734,425 16,749,778 7,984,647 1,098,877 9,083,524 4,629,425 568,888 5,198,313 1.75
6/30/2016 25,410,740 17,438,997 7,971,743 (224,119) 7,747,624 300,000 - 300,000 25.83
6/30/2017 28,612,019 20,036,915 8,575,104 39,299 8,614,403 300,000 132,660 432,660 19.91
Source: Department's annual reports
68
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Packet Pg. 768 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Ratios of Outstanding Debt by Type (in thousands of dollars)
Last Ten Fiscal Years
Fiscal Year
Ended
Revenue
Bonds Bonds
Notes/Loans
Payable
Certificates of
Participation
Capital
Leases Total
Percentage
of Personal
Income
Debt Per
Capital
6/30/2008 - 55 33,253 24,035 96 57,439 0.9% 0.28
6/30/2009 - 45 30,895 21,910 20 52,870 0.9% 0.25
6/30/2010 - 35 27,913 19,670 - 47,618 0.8% 0.23
6/30/2011 - 25 24,440 17,305 - 41,770 0.6% 0.20
6/30/2012 - 15 31,547 14,795 - 46,357 0.7% 0.22
6/30/2013 - - 29,452 12,145 - 41,597 0.6% 0.20
6/30/2014 - - 26,174 9,340 - 35,514 0.5% 0.17
6/30/2015 - - 22,826 6,375 - 29,201 0.4% 0.14
6/30/2016 - - 20,569 - - 20,569 0.3% 0.10
6/30/2017 82,670 - 900 - - 83,570 1.0% 0.39
Source: Department's annual reports
69
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Packet Pg. 769 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
DEMOGRAPHIC AND ECONOMIC INFORMATION
These schedules offer demographic and economic indicators
to help the reader understand the environment within which
the Department's financial activities take place.
70
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Packet Pg. 770 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Demographic Statistics
Last Ten Fiscal Years
Fiscal Year
Ended
Estimated
Population
(1)
Personal
Income (In
Thousands)
(2)
Per Capita
Personal
Income (2)
Unemployment
Rate (3)
6/30/2008 205,493 6,318,704 30,749 8.30%
6/30/2009 208,318 6,198,919 29,757 12.90%
6/30/2010 209,924 6,256,785 29,805 13.70%
6/30/2011 210,108 6,559,152 31,218 13.00%
6/30/2012 210,753 6,807,533 32,301 11.50%
6/30/2013 211,994 7,001,102 33,025 9.80%
6/30/2014 212,584 7,070,119 33,258 10.10%
6/30/2015 213,933 7,645,879 35,740 6.80%
6/30/2016 215,491 7,931,577 36,807 6.30%
6/30/2017 216,972 8,459,304 38,988 5.50%
(1) California Department of Finance
(2) U.S. Department of Commerce, Bureau of Economic Analys for 2006-2013 (Riverside-San Bernardino MSA)
(3) State of California, Economic Development Department; City of San Bernardino Economic Development Dept
198,000
200,000
202,000
204,000
206,000
208,000
210,000
212,000
214,000
216,000
218,000
Population
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
Personal Income
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
Per Capita Personal Income
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
Unemployment
71
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Packet Pg. 771 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Major Employers
Current Year and Ten Years Ago
Fiscal Year 2017 Fiscal Year 2008*
Employer Ranking Number of Employees Ranking Number of Employees
County of San Bernardino 1 22,719 9 1000+
Stater Brothers 2 18,000
San Bernardino City Unified School Disrict 3 6,400 5 1000+
BNSF Railway Co.4 1,000-4,999
California State University, San Bernardino*5 1,000-4,999 1 1000+
Saint Bernardine Medical Center*6 1,000-4,999 10 1000+
Community Hospital of San Bernardino*7 1,000-4,999 4 1000+
State of California, Department of Transportation 8 1,000-4,999 2 1000+
San Bernardino County Sheriff 9 1,000-4,999 6 1000+
City of San Bernardino 10 750 3 1000+
San Bernardino County Superintendent of Schools 7 1000+
San Manuel Band of Mission Indians 8 1000+
* Actual employment figures not available
Source: Economic Development Department Labor Market Information, Agency Websites and City's Annual Financial Report.
72
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Packet Pg. 772 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Authorized Positions History
Last Ten Fiscal Years
Year End Water Fund
Sewer
Treatment
Fund
Sewer
Collections
Fund Total
2008 194.0 79.0 273.0
2009 183.0 78.0 261.0
2010 167.0 84.0 251.0
2011 163.5 78.0 241.5
2012 173.5 82.0 255.5
2013 173.5 82.0 255.5
2014 185.5 72.5 258.0
2015 183.5 74.5 258.0
2016 188.5 83.5 272.0
2017 188.5 82.3 13.0 283.8
Source: Department's records
Note: The Sewer Collection Utility was transferred to the Department on May 1, 2017. Prior year data is
unavaiable.
0.0
50.0
100.0
150.0
200.0
250.0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Authorized Position History
Water Fund
Sewer Treatment Fund
Sewer Collections Fund
73
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Packet Pg. 773 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
REVENUE CAPACITY
These schedules contain information to help the reader assess
the Department's significant revenue sources.
74
22.b
Packet Pg. 774 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Water Rates: Minimum Monthly Charge
Last Ten Fiscal Years
Effective
Date 1/2"5/8"3/4"1"1-1/2"2"3"4"6"8"10"12"
7/1/2007 *8.59 11.47 13.71 24.6 34.36 58.43 99.19 178.57 267.84 334.8 401.82
7/1/2008 *8.88 11.84 14.16 25.41 35.49 60.35 102.46 184.47 276.67 345.84 415.08
7/1/2009 *8.88 11.84 14.16 25.41 35.49 60.35 102.46 184.47 276.67 345.84 415.08
2/1/2010 10.55 10.55 13.00 17.90 30.15 44.85 79.15 128.15 250.70 397.75 569.30 *
1/1/2011 12.20 12.20 15.15 21.00 35.75 53.45 94.75 153.70 301.15 478.10 684.55 *
1/1/2012 12.90 12.90 16.15 22.60 38.80 58.20 103.50 168.20 330.00 524.15 750.65 *
7/1/2013 12.90 12.90 16.15 22.60 38.80 58.20 103.50 168.20 330.00 524.15 750.65 *
7/1/2014 12.90 12.90 16.15 22.60 38.80 58.20 103.50 168.20 330.00 524.15 750.65 *
7/1/2015 12.90 12.90 16.15 22.60 38.80 58.20 103.50 168.20 330.00 524.15 750.65 *
10/1/2016 16.09 16.09 20.15 28.19 48.40 72.60 129.12 197.36 411.68 653.88 936.44 *
*
Source: Department's Records
All water usage, except municipal, will be billed at the rate of $0.94 and $0.97 per 100 cubic feet effective July 1, 2007 and July 1, 2008, respectively,
with no minimum allowance.
($/month)
* Information not reported
75
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Packet Pg. 775 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Water Connections and Revenues by User Type
Last Ten Fiscal Years
User Type Connections Revenue Connections Revenue Connections Revenue Connections Revenue
Single family 35,825 17,346,414$ 35,729 15,688,749$ 35,695 16,775,834$ 35,012 18,583,708$
Multiple family 2,899 4,449,204 2,873 4,225,832 2,869 4,349,601 2,824 4,591,290
Commercial 3,131 5,750,672 3,092 4,913,942 3,097 6,332,882 3,085 6,566,344
Landscape 1,121 3,789,527 1,129 3,203,907 1,130 3,079,610 1,140 3,616,135
Other 1,956 557,392 1,905 677,180 1,791 679,606 1,703 913,810
Total all users 44,932 31,893,209$ 44,728 28,709,610$ 44,582 31,217,533$ 43,764 34,271,287$
Connections Revenue Connections Revenue Connections Revenue Connections Revenue
Single family 34,913 18,741,773$ 34,716 18,094,052$ 34,695 15,665,580$ 34,542 13,899,599$
Multiple family 2,820 4,704,384 2,801 4,510,962 2,806 4,025,079 2,799 3,442,271
Commercial 3,082 6,800,310 3,117 5,790,427 3,117 4,678,003 3,127 3,826,613
Landscape 1,104 3,591,678 1,151 3,321,846 1,149 2,745,990 1,158 2,367,514
Other 1,663 599,210 1,626 1,597,791 1,571 701,296 1,553 900,840
Total all users 43,582 34,437,355$ 43,411 33,315,078$ 43,338 27,815,948$ 43,179 24,436,837$
Connections Revenue Connections Revenue
Single family 34,418 13,943,441$ 34,316 13,419,093$
Multiple family 2,801 3,547,811 2,834 3,419,696
Commercial 3,126 3,867,923 4,003 5,765,993
Landscape 1,173 2,454,044 - -
Other 1,545 1,094,364 1,820 1,518,693
Total all users 43,063 24,907,583$ 42,973 24,123,475$
Source: Department's records
2017
2010
2015 20142016
2013 2012 2011
20082009
76
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Packet Pg. 776 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Water Rates: Elevation Charges $ per HCF
Last Ten Fiscal Years
Effective Date Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 Zone 6
07/01/07 0.00 0.06 0.14 0.21 0.12 0.12
07/01/08 0.00 0.06 0.15 0.21 0.13 0.13
07/01/09 0.00 0.06 0.15 0.21 0.13 0.13
07/01/10 0.09 0.17 0.15 0.12 0.21 0.21
07/01/11 0.10 0.18 0.16 0.13 0.22 0.22
07/01/12 0.11 0.19 0.17 0.14 0.23 0.23
07/01/13 0.11 0.19 0.17 0.14 0.23 0.23
07/01/14 0.11 0.19 0.17 0.14 0.23 0.23
07/01/15 0.11 0.19 0.17 0.14 0.23 0.23
10/01/16 0.11 0.19 0.17 0.14 0.23 0.23
Source: Department's records
77
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Packet Pg. 777 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Top Ten Water Customers
Fiscal Year 2017
SBCUSD 875,740$
City of San Bernardino 872,042
San Bernardino Community College District 635,667
WWTP 362,971
Cott Beverages 307,570
Housing Authority 241,875
California State University, San Bernardino 216,548
W. Dean Weidner 136,144
Hines 131,483
County of San Bernardino 129,431
Top Ten Customers Total 3,909,471$
Total Water Revenue 31,893,209$
Top Ten Customers Percent of Total 12.26%
Note: Data not available for the fiscal period ended
nine years prior.
Customer-2017
78
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Packet Pg. 778 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Sewage Treatment Rate History
Fiscal Years 1996 through 2017
1996-2004 7/1/2004 1/1/2009 1/1/2010 2/1/2011 1/1/2012 10/1/2015 7/1/2016
Residential (monthly per EDU)no change 14.50 15.25 16.00 17.00 18.50 20.65 22.38
Commercial:
Commodity Charge (per HCF):
Multi-family, mobile home parks no change 0.83 0.90 0.95 1.10 1.25 1.36 1.48
Retail, commercial, light industrial no change 1.70 1.80 1.90 2.00 2.10 2.28 2.47
Auto repair, car wash no change 1.17 1.25 1.30 1.30 1.30 1.41 1.53
Offices, motels (w/o restaurants)no change 1.32 1.40 1.50 1.50 1.50 1.63 1.77
Restaurants, hotels no change 1.84 1.90 2.00 2.35 2.70 2.93 3.18
Laundromats no change 1.15 1.25 1.30 1.40 1.50 1.63 1.77
Hospitals, convalescent homes no change 0.84 0.90 0.95 1.15 1.35 1.46 1.58
Schools, churches, nursery schools no change 0.62 0.65 0.70 0.90 1.10 1.19 1.29
Industrial:
Discharge Flow (per million gallons)no change 816.10 860.00 900.00 900.00 900.00 977.00 1,060.00
Biological Oxygen demand (per 1,000 lbs)no change 264.91 280.00 292.00 330.00 360.00 391.00 424.00
Suspended Solids (per 1,000 lbs)no change 577.41 610.00 640.00 640.00 640.00 694.00 753.00
Source: Department's records
79
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Packet Pg. 779 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Sewage Treatment Connections and Revenue by User Type
Last Ten Fiscal Years
User Type Connections Revenue Connections Revenue Connections Revenue Connections Revenue
San Bernardino Residential 32,960 $9,756,592 32,889 $8,746,617 32,874 $8,056,827 32,537 $8,111,634
San Bernardino Nonresidential 5,471 8,010,240 5,377 7,125,053 5,344 7,240,533 5,410 8,033,072
East Valley Residential 18,477 4,622,944 18,477 4,008,039 18,480 4,093,625 18,404 4,149,836
East Valley Nonresidential 1,050 3,083,475 1,060 2,825,971 1,051 2,571,813 1,115 2,725,075
Loma Linda Residential 4,723 1,107,201 5,948 1,008,071 5,040 997,242 4,656 991,387
Loma Linda Nonresidential 593 1,441,807 591 1,308,474 588 1,294,612 592 1,330,102
Total all users 63,274 $28,022,259 64,342 $25,022,225 63,377 $24,254,651 62,714 $25,341,106
Connections Revenue Connections Revenue Connections Revenue Connections Revenue
San Bernardino Residential 32,563 $7,922,936 32,571 $7,650,142 32,447 $7,053,263 32,307 $6,670,859
San Bernardino Nonresidential 5,447 8,332,214 5,412 7,877,416 5,416 7,131,988 5,196 6,699,228
East Valley Residential 18,925 4,188,434 18,813 4,019,127 18,700 3,645,721 18,157 3,348,238
East Valley Nonresidential 1,126 2,434,118 1,128 2,492,375 1,138 2,070,233 1,132 2,185,072
Loma Linda Residential 4,663 1,063,124 4,443 933,648 4,648 870,734 4,688 839,451
Loma Linda Nonresidential 585 1,549,643 589 1,258,747 584 1,048,402 588 1,016,088
Total all users 63,309 $25,490,469 62,956 $24,231,455 62,933 $21,820,341 62,068 $20,758,936
Connections Revenue Connections Revenue Connections Revenue
San Bernardino Residential 32,050 $6,288,804 32,058 $6,197,816 32,367 $6,238,570
San Bernardino Nonresidential 5,434 6,625,012 5,491 6,570,125 5,528 6,654,231
East Valley Residential 17,986 3,285,452 17,956 3,221,455 18,085 3,231,282
East Valley Nonresidential 1,146 2,139,543 1,159 2,213,946 1,160 2,252,260
Loma Linda Residential 4,692 781,159 4,407 767,075 4,567 728,111
Loma Linda Nonresidential 559 984,117 576 1,011,795 584 950,227
Total all users 61,867 $20,104,087 61,647 $19,982,212 62,291 $20,054,681
Source: Department's records
2017
2012
20082009
20102011
2007
2015 2014
2013
2016
80
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Packet Pg. 780 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Top Ten Sewage Treatment Customers
Fiscal Year 2017
San Bernardino Community College District 421,671$
SBCUSD 214,899
Housing Authority 185,069
County of San Bernardino 161,157
St. Bernardine Hospital 111,463
Pama Management Company 102,887
City of San Bernardino 65,538
243 North Meridian LLC 62,721
Strata Serrano, LLC 58,737
Stater Brothers 58,626
Top Ten Customers Total 1,442,768$
Total Sewer Revenue 28,022,259$
Top Ten Customers Percent of Total 5.15%
Source: Department's records
Note: Data not available for the fiscal period ended
nine years prior.
Customers -2017
81
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Packet Pg. 781 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Sewer Collection Rate History
Fiscal Years 1996 through 2017
1/1/1999 7/1/2004 1/1/2009 1/1/2010 10/1/2015 7/1/2016
Residential (monthly per EDU)1.35 3.45 3.75 4.00 9.00 9.45
Multi-Family
Multi-family, 2 units n/a n/a n/a 8.00 18.00 18.9
Multi-family, 3 units n/a n/a n/a 12.00 27.00 28.35
Multi-family, 4 or more units, Non-res.
Monthly Charge n/a n/a n/a 1.25 2.81 2.95
Usage Charge (per HCF)n/a n/a n/a 0.35 0.79 0.83
* The Sewer Collection Utility was transferred to the Water Department on May 1, 2017 so details for prior years is unavailable.
Source: Department's records
82
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Packet Pg. 782 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Sewer Collection
Connections and Revenue by User Type
Last Ten Fiscal Years
User Type Connections Consumption Revenue Connections Consumption Revenue Connections Consumption Revenue Connections Consumption Revenue
Residential-Single Family 32,899 $3,719,798
Residential-Multi Family 1,609 405,007
Residential- Multi Family 4 Units + 15 45,146 41,351
Comm/Land/Lt. Industrial/Non-Res. 3,204 2,626,645 2,467,470
Education-Public 27 29,586 27,420
Education-Private 150 61,381 61,779
Hospital/Convalescent Homes 35 175,241 161,182
Office/Motel-No Restaurant 96 71,092 58,587
Restaurant/ Hotel w/ Restaurant 37 34,788 32,509
Auto Repair/Car Wash 229 73,436 75,421
Laundromat 5 24,091 21,824
CS Irrigation 46 503,780 158,834
Totals IVDA 51 54,874
Total all users 38,402 3,700,060 7,231,183$ 0 0 -$ 0 0 -$ 0 0 -$
HCF
Connections Consumption Revenue Connections Consumption Revenue Connections Consumption Revenue Connections Consumption Revenue
Residential-Single Family
Residential-Multi Family
Residential- Multi Family 4 Units +
Comm/Land/Lt. Industrial/Non-Res.
Education-Public
Education-Private
Hospital/Convalescent Homes
Office/Motel-No Restaurant
Restaurant/ Hotel w/ Restaurant
Auto Repair/Car Wash
Laundromat
CS Irrigation
Totals IVDA
Total all users 0 0 0 0 0 $0 0 $0 0 0 $0
Connections Consumption Revenue Connections Consumption Revenue Connections Consumption Revenue Connections Consumption Revenue
Residential-Single Family
Residential-Multi Family
Residential- Multi Family 4 Units +
Comm/Land/Lt. Industrial/Non-Res.
Education-Public
Education-Private
Hospital/Convalescent Homes
Office/Motel-No Restaurant
Restaurant/ Hotel w/ Restaurant
Auto Repair/Car Wash
Laundromat
CS Irrigation
Totals IVDA
Total all users 0 $0 0 $0 0 $0
Source: Department's records
2014
2013 2012 2011 2010
2009 2008 2007
* The Sewer Collection Utility was transferred to the Water Department on May 1, 2017 so prior year data is unavailable. Data provided for 2017
represents the entire year.
2017 2016 2015
83
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Packet Pg. 783 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
City of San Bernardino Municipal Water Department
Top Ten Sewer Collection Customers
Fiscal Year 2017
SB Community College District 269,648.91$
SBCUSD 140,897
Housing Authority of San Bernardino County 90,210
County of San Bernardino 74,250
St. Bernardine's Hospital 58,694
PAMA Management Company 56,552
243 North Meridian LLC 35,323
City of San Bernardino 34,282
Strata Serrano, LLC 33,064
Crest Haven Apartment 30,502
Top Ten Customers Total 823,422$
Total Sewer Collections Revenue*7,231,183$
Top Ten Customers Percent of Total 11.39%
Source: Department's records
Note: Data not available for the fiscal period ended
nine years prior.
Customers -2017
* Revenue reflects total billed for Fiscal Year 2016-17. The Sewer Collection Utility was transferred to
the Department on May 1, 2017 and only that portion of the year's revenue is reflected on our
financial statements.
84
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Packet Pg. 784 Attachment: Water. SBMWD CAFR FY Ending June 30 2017 (5421 : Comprehensive Annual Financial Report of the City of San Bernardino
Staff Report
City of San Bernardino
Request for Council Action
Date: March 7, 2018
To: Honorable Mayor and City Council Members
From: Andrea M. Miller, City Manager
By: Jarrod Burguan, Chief of Police
Vicki Cervantes, Lieutenant
Subject: Amendment to Tow Service Agreement to Include One
Additional Tow Carrier to City’s Tow Rotation
Recommendation
Adopt a Resolution of the Mayor and City Council of the City of San Bernardino,
California, directing the City Manager to initiate action to establish an additional tow
carrier to the City’s tow carrier rotation.
Background
The City is currently working under a Tow Service Agreement (TSA) with six local tow
carriers. Our current Agreement, Resolution No. 2011-80, provides for one tow carrier
per 35,000 residents of the City. The population of the City as of 2016 has increased to
216,239 which allows for the addition of one tow carrier to the City’s rotation.
Discussion
The Police Department is recommending that the City initiate action to establish an
additional tow carrier to the City’s tow carrier rotation. This additional tow carrier will be
selected in accordance with the requirements and guidelines as outlined in the existing
TSA. The seventh tow carrier will have an agreement that will terminate on the same
date as the existing tow carriers currently on the rotation.
In order to increase the number of tow carriers on our rotation we will submit a request
for proposals. It is anticipated that we will open this for proposals no later than March
22, 2018. Following proposals being received, we will submit a recommendation and
seek Council approval.
Fiscal Impact
There is no fiscal impact.
23.a
Packet Pg. 785 Attachment: PD.TSA Amendment adding tow carrier - Staff Report (5420 : Amendment to Tow Service Agreement to Include One Additional
Conclusion
It is recommended that the Mayor and City Council direct the City Manager to initiate
action to establish an additional tow carrier to the City’s tow carrier rotation.
Attachments
Attachment 1 – Resolution
Attachment 2 – Resolution No. 2005-286
Attachment 3 – Resolution No. 208-347
Attachment 4 – Resolution No. 2011-80
Ward: All
Synopsis of Previous Council Actions:
08-15-2005 Resolution No. 2005-286 Adopted establishing standard towing criteria for six tow
carriers on the City’s tow rotation.
09-08-2008 Resolution No. 2008-347 Adopted amending the franchise fees to be paid by the tow
carriers.
04-04-2011 Resolution No. 2011-80 Adopted authorizing the execution of tow services
agreements with six tow carriers.
04-04-2016 Resolution No. 2016-73 Adopted extending two services agreements for five years and
updating franchise fees to be paid by the tow carriers.
23.a
Packet Pg. 786 Attachment: PD.TSA Amendment adding tow carrier - Staff Report (5420 : Amendment to Tow Service Agreement to Include One Additional
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RESOLUTION NO.______
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO DIRECTING THE CITY MANAGER TO INITIATE ACTION TO
ESTABLISH AN ADDITIONAL TOW CARRIER TO THE CITY’S TOW CARRIER
ROTATION.
WHEREAS, on August 15,2005, the Mayor and City Council passed Resolution No.
2005-286 establishing standard towing criteria for six tow carriers on the City’s tow rotation; and
WHEREAS, on September 8, 2008, the Mayor and City Council passed Resolution No.
2008-347 amending the franchise fees to be paid by the tow carriers; and
WHEREAS, on April 4, 2011, the Mayor and City Council passed Resolution No. 2011-
80 authorizing the execution of tow services agreements with six tow carriers; and
WHEREAS, on April 4, 2016, the Mayor and City Council passed Resolution No. 2016-
73 extending the two services agreements for five years and updating franchise fees to be paid by
the tow carriers; and
WHEREAS, Resolution No. 2011-80 provides for one tow carrier per 35,000 residents
of the City; and
WHEREAS, the City’s population as of 2016 is 216,239 people; and
WHEREAS, the Mayor and City Council desire to add a seventh tow carrier to the City’s
rotation. The seventh tow carrier will have an agreement that will terminate on the same date as
the existing tow carriers currently on the rotation.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The City Manager is hereby directed to initiate the process for adding a
seventh tow carrier to the City’s tow rotation list.
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO DIRECTING THE CITY MANAGER TO INITIATE ACTION TO
ESTABLISH AN ADDITIONAL TOW CARRIER TO THE CITY’S TOW CARRIER
ROTATION.
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
City Council of the City of San Bernardino at a ____________ meeting thereof, held on the
_______ day of __________________, 2018, by the following vote, to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, City Clerk
The foregoing Resolution is hereby approved this ________ day of ______________, 2018.
R. Carey Davis, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz, City Attorney
By: _________________________
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Staff Report
City of San Bernardino
Request for Council Action
Date: March 7, 2018
To: Honorable Mayor and City Council Members
From: Jim Mulvihill, 7th Ward Council Member
By: Renee Brizuela, Administrative Assistant to City Council
Subject: Status of Bills of Interest to Southern California Association of
Governments Update
Recommendation
Receive an oral report by Council Member Mulvihill.
Background
Council Member Mulvihill has been attending the SCAG Regional Council Meetings.
These meetings are held in Los Angeles, CA. Council Member Mulvihill will provide an
oral update at this evening’s meeting.
Attachment
Attachment 1 – Status of Bills of Interest to Southern California Association of
Governments
Motion
Receive and File.
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Public Hearing
City of San Bernardino
Request for Council Action
Date: March 7, 2018
To: Honorable Mayor and City Council Members
From: Andrea M. Miller, City Manager
By: Mark Persico, AICP, Community Development Director
Subject: Parking Lease Agreement for the Andreson Building located at
320 N. “E” Street
Recommendation
Adopt a Resolution of the Mayor and City Council of the City of San Bernardino,
California, approving a Parking Lease Agreement for the Andreson Building located at
320 N. “E” Street with Enterprise Technology Alliance.
Background
On January 23, 2017, the Mayor and City Council unanimously adopted Resolution
2017-013 approving the same parking agreement. The Agreement, however, could not
be executed within the required 60 days due to unforeseen delays in the escrow
process. There have been no changes in terms since it was originally approved in
January 2017.
In November 2017, escrow finally closed on the Andreson and Alan Stanly took
possession of the building. He is the founder and owner of Enterprise Technology
Alliance, Inc. (ETA) and he has already started reinvesting in the building. Progress has
been slow and steady. The building has been largely vacant over the past fifteen years
and unfortunately has been vandalized.
ETA is a technology company currently based in San Marcos. According to the
Company’s website, ETA’s focus is on Enterprise Resource Planning (ERP) software
for transportation and logistics companies. The Company has installations covering all
50 states and over 25 countries internationally. Primary industries served include
pharma, big box retail, Hawaiian Island forwarding, heavy equipment hauling, air and
ocean forwarding, expedited, import/export and critical time sensitive freight.
ETA’s major customers include 4 of the top 10 logistics companies in the world. The
ERP software platform has over 50,000 users online, moves over 10 billion pounds of
freight and processes over 1 million orders annually.
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Packet Pg. 879 Attachment: CD.Andreson.Report (5414 : Parking Lease Agreement for the Andreson Building Located at 320 N. “E” Street)
Analysis
The Andreson Building was built in 1927 and totals approximately 62,411 square feet of
office space. In 1999, the former RDA entered into a Parking Agreement with the then
owner for use of 133 parking stalls on the third floor of the Carousel Mall parking
structure. That Agreement has since expired and the building currently has no parking
available. Under the current code, the building is required to have 125 parking stalls.
ETA is the type of company that is needed in the City. Given the City’s strong
performance in the logistics industry and the high pay of technology jobs, having ETA in
the City is a natural fit. Nevertheless, ETA is a relatively young company and is seeking
support from the City. Without redevelopment funding, there are limited options
available that do not involve a direct cost to the general fund. The City does, however,
have excess parking available in the City Hall structure. Under certain circumstances,
use of this parking could be granted to companies or industries located in downtown, at
no direct cost to the City. Staff acknowledges that while there is no direct cost, there is
an opportunity cost of forgone revenue if the parking were leased. There is also the cost
of maintaining the parking structure, which the City currently incurs.
In 1999, parking was leased for $24 per space per month, which generated a maximum
of $38,304 annually ($24 X 12 months X 133 spaces). Lease rates under the new
Agreement will be set based upon a parking study that the City will commission as part
of the overall downtown revitalization efforts. As a business incentive to this particular
start-up, staff is proposing that up to 125 parking spaces be made available for use by
ETA or other tenants of the building for five years at no charge. Payments will start in
the sixth year of the Agreement based upon an agreed upon rate. While there is a
potential opportunity cost to the City – in the form of lost parking revenue for the first five
years – staff believes the long-term benefit of having a high tech, logistics firm in the
City outweighs the opportunity costs.
In meetings with Alan Stanly, their vision for the Andreson Building is to build a secure,
modern, high tech, Class - A office environment catering to legal, professional services,
startups and specifically women and veteran owned businesses. ETA plans on installing
full fiber optic internet service, VOIP phone capabilities, on-site technical services, on-
site management, conference / meeting rooms on every floor, with on-site amenities on
the first floor and basement. Plans are to incentivize complimentary professional
services to foster and support the entrepreneurial incubator environment to encourage
startups and youth oriented business activities. If fully realized, ETA’s vision would be a
significant benefit to the City.
ETA currently has 20 employees with expansion plans of up to 100 additional
employees. They currently have customers in the Inland Empire. They anticipate using
approximately 1/3 of the floor area and leasing the balance of the building to start-up
technology firms and other professional office tenants. Based upon the new repair
schedule, ETA anticipates moving professional staff into the building in late summer
2018.
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Packet Pg. 880 Attachment: CD.Andreson.Report (5414 : Parking Lease Agreement for the Andreson Building Located at 320 N. “E” Street)
In order to comply with Government Code Section 53083, which went into effect
January 1, 2014, the City must disclose an economic development subsidy granted for
projects. Staff has quantified the benefits granted to ETA during the first five years of
the Parking Agreement, based upon 1999 lease rates, as a maximum of $38,000
annually (Attachment 3). However, the actual opportunity cost is hard to quantify
because there are currently no parking charges in downtown and we cannot determine
if a business would be willing to pay for parking. Staff believes the benefits of having 20-
40 full-time employees working for a technology company focused on the logistics
industry is a natural fit for the City of San Bernardino. While the City will realize no new
tax revenue from this subsidy, having a technology company in a renovated historic
structure in the City is a benefit that will help start the revitalization of the downtown
core. These benefits override the opportunity cost of potentially renting the parking
spaces for the next five years.
Fiscal Impact
There are no fiscal impacts for the initial five-year period. Starting in year six, the
general fund will receive revenue based upon the negotiated lease rates. The marginal
cost to maintain the parking structure for ETA during the initial five years is minimal
because the City is already maintaining the structure for general public use.
Conclusion
ETA is ideally positioned to be a true asset for the City. While there is a measurable
opportunity cost by not charging for leased parking, staff supports the Parking
Agreement as a method of jumpstarting downtown development. This Agreement is
specific to ETA and 320 N. E Street, LLC.
Attachments
Attachment 1 Resolution; Exhibit A – Parking Lease Agreement
Attachment 2 Resolution 2017-013 (approved January 23, 2017)
Attachment 3 Economic Subsidy Report (Government Code Section 53083)
Ward: 1
Synopsis of Previous Council Actions: Resolution 2017-013 adopted
January 23, 2017
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Packet Pg. 881 Attachment: CD.Andreson.Report (5414 : Parking Lease Agreement for the Andreson Building Located at 320 N. “E” Street)
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RESOLUTION NO._______
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, APPROVING A PARKING AGREEMENT
BEWTEEN THE CITY AND 320 N. E STREET, LLC FOR USE OF 125
UNRESERVED PARKING STALLS IN THE CITY HALL PARKING STRUCTURE
WHEREAS, Enterprise Technology Alliance, Inc. (ETA) wishes to relocate to the
City of San Bernardino; and
WHEREAS, Alan Stanly, founder and President of ETA and the sole shareholder of
320 N. E Street, LLC, recently acquired the Andreson Building located at 320 N. “E” Street;
and
WHEREAS, Through the purchase of the Andreson Building, ETA and 320 N. E
Street, LLC have plans to refurbish the historic structure and make the building a Class A
professional office building; and
WHEREAS, ETA is a start-up technology firm currently doing business in the Inland
Empire and is focused on the logistics industry; and
WHEREAS, ETA is a good fit for the City based upon our strong performance in the
logistics sector and the high wages of technology firms; and
WHEREAS, the City Hall parking structure is underutilized and has excess parking
capacity currently and into the future.
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF
THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The Mayor and City Council hereby approve the Parking Lease
Agreement with 320 N. E Street, LLC (Exhibit A), and authorize and direct the City Manager
to take such steps as are necessary to execute the Agreement, including but not limited to the
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making of clerical or non-substantive revisions to the Agreement as may be necessary to
effectuate its intent.
SECTION 2. In order to comply with Government Code Section 53083, the City
Council finds that ETA located at 320 N. E Street, San Bernardino, California, 92418 will
benefit from the five year free parking that commences on the effective date of the Parking
Agreement and ending five years thereafter. The subsidy is in the form of free parking
representing an opportunity cost to the City, which based upon 1999 lease rates, is a
maximum of $38,000 annually. However, the actual opportunity cost is hard to quantify
because there are no parking charges in downtown and the City cannot determine if a business
would be willing to pay for parking. The benefits of having 20-40 full-time employees
working for a technology company focused on the logistics industry is a natural fit for the
City of San Bernardino. While the City will realize no new tax revenue from this subsidy,
having a technology company in a renovated historic structure in the City is a benefit that will
help start the revitalization of the downtown core. These benefits override the opportunity cost
of potentially renting the parking spaces for the next five years.
SECTION 3. Approval of the Parking Lease Agreement is not considered a project
under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines
Section 15378(a).
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, APPROVING A PARKING AGREEMENT
BEWTEEN THE CITY AND 320 N. E STREET, LLC FOR USE OF 125
UNRESERVED PARKING STALLS IN THE CITY HALL PARKING STRUCTURE
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
and City Council of the City of San Bernardino at a regular meeting thereof, held on the
_____ day of ________________, 2018, by the following vote, to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, CMC, City Clerk
The foregoing Resolution is hereby approved this _____ day of ________________, 2018.
R. Carey Davis, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz, City Attorney
By:
3
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Packet Pg. 884 Attachment: CD.Andreson.A1.Resolution (5414 : Parking Lease Agreement for the Andreson Building Located at 320 N. “E” Street)
(EXHIBIT A – Resolution No. 2018-XXX)
PARKING LICENSE AGREEMENT
(ANDRESON BUILDING)
This Parking License Agreement (“Agreement”) is made on ____________, 2018
(“Effective Date”), by and between the City of San Bernardino (“City”) and 320 N. E Street,
LLC (“Licensee”). The parties to this Agreement are collectively referred to herein as the
“Parties” and individually as a “Party.” This Agreement is made with respect to the facts set
forth in the Recitals below:
– RECITALS –
A. The City owns a three-level parking structure located at property in the City
known as the Carousel Mall (“Mall Structure”) and a five-level parking structure located to
the south of City Hall (“City Hall Structure”).
B. Licensee owns a 62,411 square foot commercial office building located at 320
North “E” Street in the City, referred to as the Andreson Building. The Andreson Building
has no or virtually no on-site parking. However, the Andreson Building is adjacent to the
Mall Structure and within walking distance of the City Hall Structure.
C. Licensee wishes to secure parking for occupants and invitees of the Andreson
Building within the Mall Structure to the extent available, and to the extent not available,
within the City Hall Structure.
D. The City’s Development Code (“Code”) requires that new and expanded land
uses in the land use zone and transit overlay district in which the Andreson Building is
located provide one on-site parking space for every 500 square feet of floor area. Code
Section 19.62.030 provides that a nonconforming use which lawfully existed prior to the
effective date of the Code, but which is no longer permitted in the zone in which it is located,
may continue subject to certain requirements. These requirements include that additional
development of the property shall require that new uses conform to the Code, and that a
nonconforming once converted to a conforming use may not be resumed. As a legal
nonconforming use, the Andreson Building may continue to operate without providing on-
1
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Packet Pg. 885 Attachment: CD.Andreson.A1.Resolution (5414 : Parking Lease Agreement for the Andreson Building Located at 320 N. “E” Street)
site parking as would otherwise be required, subject to the Code requirements for a legal
nonconforming use.
– AGREEMENT –
1. License of Parking Spaces.
Commencing on the Effective Date of this Agreement, Licensee shall be
licensed on a non-exclusive basis to use the number of undesignated, non-reserved parking
spaces specified in Section 2(c) in the Mall Structure and, to the extent that number of
spaces are or may become unavailable at the Mall Structure, a sufficient number of such
spaces at the City Hall Structure to provide Licensee with a total of the number of spaces
specified in said Section. The spaces provided may be at one structure, or the other, or
divided among the two. The terms “non-exclusive,” “undesignated,” and “non-reserved”
mean that the City will not, while this Agreement is in effect, assign to or reserve for third
parties, on an exclusive basis, a number of spaces at the two structures that would result in
fewer than the number of spaces specified in Section 2(c) remaining unassigned among the
two structures, but do not mean that the City warrants or guarantees that said number of
spaces will remain free of vehicles and available to occupants and business invitees of the
Andreson Building at any given time. Licensee acknowledges and understands that the
undesignated, non-reserved spaces at the Mall Structure and City Hall Structure are
currently and may continue to be open for use by the general public, and that demand for
those spaces may exceed the number of spaces available at any given time.
2. Term of Agreement and Number of Spaces.
(a) The initial term of this Agreement shall be five years following the
Effective Date of this Agreement (“Initial Term”).
(b) After the Initial Term, Licensee may, with the consent of the City, opt
to extend the term of this Agreement for up to four additional five-year periods, for a total
maximum term of 25 years counting the Initial Term and all optional extensions. Licensee
shall notify the City in writing of Licensee’s exercise of each option to extend not later than
180 days before the expiration of the then current term of this Agreement.
(c) At the time of the exercise by Licensee of the first of its options to
extend under Section 2 (b), Licensee shall specify the number of spaces it wishes to be
licensed to use for the twelve (12) months beginning with the first day of the extended term,
up to a maximum of 125. Licensee shall follow the same procedure at the end of said twelve
2
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Packet Pg. 886 Attachment: CD.Andreson.A1.Resolution (5414 : Parking Lease Agreement for the Andreson Building Located at 320 N. “E” Street)
(12) months period, and at the end of each ensuing twelve (12) months for the term of this
Agreement. At the time Licensee makes such specification of the number of spaces
requested, the Parties shall agree upon the amount to be paid by Licensee for the use of the
spaces, as set forth in Section 3(b).
(d) The City’s consent to extension and its agreement to license to
Licensee the number of spaces requested by Licensee shall not be unreasonably withheld,
but may be withheld if the City determines the number of spaces requested will not be
available during the period for which the spaces are requested.
3. Payment.
(a) For the Initial Term, Licensee shall be licensed to use 125 spaces, on
the terms set forth in Section 1, at no cost. The City’s agreement to this provision is in
consideration of the current occupancy level of the Andreson Building, Licensee’s intent to
relocate the business operations of itself and/or its affiliate(s) to downtown San Bernardino,
and the anticipated economic benefit to the City and its residents of such relocation.
Licensee therefore agrees that the City shall have no obligation to extend the no-cost
parking provision of this Section 3(a) to any transferee of the Andreson Building, and that
any such transferee who wishes to be licensed to use parking spaces in the Mall Structure or
City Hall Structure will be required to comply with Section 3(b) of this Agreement,
beginning immediately upon the transfer of title. Licensee further agrees to advise any such
transferee of the provisions of this Section 3(a) in advance of such transfer.
(b) Following the Initial Term, Licensee shall pay the City a monthly fee
for the use of the number of parking spaces which it is licensed to use under this Agreement.
The monthly fee shall be agreed upon by the Parties at the time of the exercise by Licensee
of the first of its options to extend under Section 2 (b) and every twelve (12) months
thereafter for the term of this Agreement. The fee shall be negotiated in good faith so as to
be substantially equivalent to the prevailing market rate, based upon a parking study
performed by the City. At the end of the initial 12 months following the Initial Term, and
every 12 months thereafter, the monthly fee shall be adjusted by the percentage increase or
decrease in the Consumer Price Index for Los Angeles-Riverside-Orange Counties, CA
during the preceding 12 months, as published by the U. S. Department of Labor, Bureau of
Labor Statistics.
3
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Packet Pg. 887 Attachment: CD.Andreson.A1.Resolution (5414 : Parking Lease Agreement for the Andreson Building Located at 320 N. “E” Street)
(c) Payment shall be remitted on the first business day of each month to
the City at the address set forth later in this Agreement or at such other address as may later
be designated by the City.
(d) Where payment is required under this Agreement, Licensee shall pay
for the number of spaces it is licensed to use each year, whether or not Licensee actually
needs or uses that number of spaces.
4. Licensee’s Right of Assignment. Licensee may assign to occupants of the
Andreson Building and their business invitees the right to use any of the parking spaces
licensed to Licensee under this Agreement. With the consent of the City, which shall not be
unreasonably withheld, Licensee may assign any or all of its rights under this Agreement to
a purchaser of the Andreson Building, except the right to be licensed to use spaces at no cost
during the Initial Term, as stated in Section 3(a). All persons using parking spaces licensed
to Licensee under this agreement must agree in writing to comply with all terms of this
Agreement and with all applicable rules, regulations, City of San Bernardino Municipal
Code provisions, and other provisions of law governing the use of the spaces.
5. Limitation on Duration of Parking. Licensee shall not allow any parking
space licensed to Licensee under this agreement to be used by the same vehicle for more
than 72 consecutive hours.
6. Nonexclusive Right. Licensee’s right to use parking spaces in the Mall
Structure and City Hall Structure shall be on a non-exclusive basis. Nothing in this
Agreement precludes the City from licensing such spaces to third parties, so long as at least
the number of spaces licensed to Licensee remain unassigned among the two structures, or
from designating any such spaces for use by the public.
7. Closure of Facilities. The City shall have the right, on 30 days’ notice, to
close the Mall Structure or City Hall Structure, or both, temporarily to make necessary
repairs or modifications or for such other purposes as may be reasonably required. Closure
may be on less notice in the event of emergency or other non-foreseeable need for repair. In
addition, Licensee acknowledges and understands that the City is in the process of
redevelopment of the Carousel Mall and that such redevelopment may cause the permanent
closure of the Mall Structure. Permanent closure of both the Mall Structure and the City
Hall Structure for any reason shall terminate this Agreement.
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Packet Pg. 888 Attachment: CD.Andreson.A1.Resolution (5414 : Parking Lease Agreement for the Andreson Building Located at 320 N. “E” Street)
8. Eminent Domain. If any part of the Mall Structure or the City Hall
Structure is taken by eminent domain, the compensation for such taking shall belong to the
City, except for relocation expenses paid or awarded to Licensee.
9. Loss or Destruction. Loss or destruction of any of the parking spaces
licensed to Licensee under this Agreement shall terminate this Agreement as to those
spaces, without liability on the part of either of the Parties.
10. Possessory Interest Tax. The property interest created by this Agreement
may be subject to property taxation, and Licensee may be subject to the payment of property
taxes levied on the interest. Licensee agrees to pay when due any possessory interest tax
that is levied on Licensee’s right to the use of parking spaces under this Agreement.
11. Indemnity. Licensee agrees to defend, indemnify and hold harmless the
City against all claims and any loss, liability, or damage of whatever nature arising out of or
in any way relating to Licensee’s use or occupancy of parking spaces pursuant to this
Agreement.
12. Insurance. Licensee shall maintain the following policies of insurance
throughout the term of this Agreement:
(a) Commercial general liability coverage, including coverage for assumed
contractual liability under this Agreement, of at least $2 million aggregate per occurrence.
The City and its elected officials, officers, employees, and agents must be named as
additional insureds. Coverage must protect against claims for bodily injury, personal injury
and property loss or damage based upon, involving or arising out of the use or occupancy of
any of the parking spaces licensed to Licensee under this Agreement. Coverage shall be on
an occurrence basis. The policy shall not contain any intrainsured exclusions as between
insured persons and organizations, and the insurer shall waive subrogation as against the
City. Coverage shall be primary to and not contributory to any insurance carried by the City.
Any and all City insurance shall be considered excess insurance only. Coverage shall not be
subject to cancellation or modification except on at least 30 days’ notice to the City.
(b) If and to the extent required by law, Licensee shall maintain workers’
compensation or similar insurance in the form and amounts required by law.
Insurers providing coverage shall be qualified to do business in California and shall
maintain during the term of the policy an A.M. Best Financial Strength Rating of at least A
and a Financial Size Category designation of at least V. Satisfactory evidence of coverage
must be provided to the City before this Agreement will become effective.
5
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Packet Pg. 889 Attachment: CD.Andreson.A1.Resolution (5414 : Parking Lease Agreement for the Andreson Building Located at 320 N. “E” Street)
13. Default and Cure. Failure to perform, or material delay in performing, any
material term of this Agreement shall constitute a default. The defaulting Party shall have
thirty (30) days after notice of default to cure the default and pay any consequential
damages to the Party damaged by the default. If the default is not timely cured, the non-
defaulting Party may, at its option, terminate the Agreement and seek all available legal
remedies.
14. No Waiver. Delay by a Party in asserting or failure to assert any right or
remedy under this Agreement or provided by law shall not constitute a waiver of said right
or remedy.
15. Entire Agreement. This Agreement is the entire agreement of the Parties
concerning the matters addressed herein and supersedes all prior and contemporaneous
expressions, discussions, negotiations, or agreements with respect to those matters.
16. Approvals. This Agreement shall not be signed on behalf of the City, and
shall not be effective, until the City Council of the City (“Council”) has approved the
Agreement on behalf of the City.
17. Modification. This Agreement can only be modified in a writing signed by
all Parties. Any modifications must be approved in writing by the Council.
18. Choice of Law; Venue. This Agreement and its interpretation shall be
governed by the law of the State of California including, as applicable, the City of San
Bernardino Municipal Code. Venue for any legal action arising out of this Agreement shall
be in the Superior Court of the State of California for the County of San Bernardino.
19. Interpretation. Neither of the Parties shall be considered to have drafted
this Agreement, for purposes of the rule that ambiguity in an agreement shall be construed
against the drafting party.
20. Severability. If any provision of this Agreement is declared by a court or
other entity of competent jurisdiction to be invalid or otherwise unenforceable, all
remaining provisions not affected by said declaration of invalidity or unenforceability shall
be fully enforceable.
21. Additional Documents. The Parties agree to execute such additional
documents as may be required to effectuate the provisions of this Agreement.
22. Authorization. Each of the Parties certifies that the individual executing
this Agreement on its behalf has the authority to do so.
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Packet Pg. 890 Attachment: CD.Andreson.A1.Resolution (5414 : Parking Lease Agreement for the Andreson Building Located at 320 N. “E” Street)
23. Notices. Notices or other communications under this Agreement shall be in
writing and shall be deemed to have been properly given on the day delivered in person, or
seven (7) days after deposit in the United States Mail, postage prepaid, certified with return
receipt requested. Notices shall be given at the following addresses:
City:
City of San Bernardino
Office of the City Manager
290 North ‘D’ Street, Third Floor
San Bernardino, CA 92401
Attn: City Manager
Licensee:
320 N. E Street, LLC
C/O Dillon Gerardi Hershberger Miller & Ahuja, LLP
5872 Owens Avenue, Suite 200
Carlsbad, California 92008
Either Party may change its address for purposes of notice under the Agreement by giving
notice to the other Party in accordance with this Section 23.
24. Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed to be an original.
7
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Packet Pg. 891 Attachment: CD.Andreson.A1.Resolution (5414 : Parking Lease Agreement for the Andreson Building Located at 320 N. “E” Street)
CITY OF SAN BERNARDINO
By:___________________________ Date:__________________, 2018
Title:__________________________
320 N. E STREET, LLC
By:___________________________ Date:__________________, 2018
Title:__________________________
APPROVED AS TO FORM:
Gary D. Saenz, City Attorney
By:___________________________
8
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Packet Pg. 892 Attachment: CD.Andreson.A1.Resolution (5414 : Parking Lease Agreement for the Andreson Building Located at 320 N. “E” Street)
1 RESOLUTION NO. 2017-13
2 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
3 BERNARDINO APPROVING A PARKING AGREEMENT BETWEEN THE CITY
AND 320 N. E STREET, LLC FOR USE OF 125 UNRESERVED PARKING STALLS
4 IN THE CITY HALL PARKING STRUCTURE
5
6 WHEREAS, Enterprise Technology Alliance, Inc. (ETA) is wishing to relocate to the
7 City of San Bernardino; and
8 WHEREAS, Alan Stanly is founder and President of ETA and the sole shareholder of
9
320 N. E Street, LLC, which is currently in escrow to purchase the Andreson Building located
10
11
at 320 N. "E" Street; and
12 WHEREAS, Through the purchase of the Andreson Building, ETA and 320 N. E
13 Street, LLC have plans to refurbish the historic structure and make the building a Class A
14 professional office building; and
15
WHEREAS, ETA is a start-up technology firm currently doing business in the Inland
16
17
Empire and is focused on the logistics industry; and
18 WHEREAS, ETA is a good fit for the City based upon our strong performance in the
19 logistics sector and the high wages of technology firms; and
20 WHEREAS, the City Hall parking structure is underutilized and has excess parking
21 capacity currently and into the future.
22
23 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF
24
THE CITY OF SAN BERNARDINO AS FOLLOWS:
25
SECTION 1. The Mayor and City Council hereby approve the Parking Lease
26
27
Agreement with 320 N. E Street, LLC, and authorize and direct the City Manager to take such
28
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Packet Pg. 893 Attachment: CD.Andreson.A2.Resolution 2017-013 (5414 : Parking Lease Agreement for the Andreson Building Located at 320 N. “E” Street)
1 steps necessary to execute the Agreement, including but not limited to the making of clerical
2 or non-substantive revisions to the Agreement as may be necessary to effectuate its intent.
3 SECTION 2. In order to comply with Government Code Section 53083, the Mayor
4 and City Council finds that ETA located at 320 N. E Street, San Bernardino, California, 92418
5
will benefit from the five years of free parking that commences on the effective date of the
6
7
Parking Agreement and ending five years thereafter. The subsidy is in the form of free
8 parking representing an opportunity cost to the City, which based upon 1999 lease rates, is a
9 maximum of $38,000 annually. However, the actual opportunity cost is hard to quantify
10 because there are no parking charges in downtown and the City cannot determine if a business
11
would be willing to pay for parking. The benefits of having 20-40 full-time employees
12
13
working for a technology company focused on the logistics industry is a natural fit for the
14 City of San Bernardino. While the City will realize no new tax revenue from this subsidy,
15 having a technology company in a renovated historic structure in the City is a benefit that will
16 help start the revitalization of the downtown core. These benefits override the opportunity cost
17
of potentially renting the parking spaces for the next five years.
18
SECTION 3. Approval of the Parking Lease Agreement is not considered a project
19
20
under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines
21 Section 15378(a).
22 SECTION 4. If any section, subsection, subdivision, sentence, or clause or phrase in
23 this Resolution or any part thereof is for any reason held to be unconstitutional, invalid or
24
ineffective by any court of competent jurisdiction, such decision shall not affect the validity or
25
26
effectiveness of the remaining portions of this Resolution or any part thereof. The Mayor and
27 Common Council hereby declares that it would have adopted each section irrespective of the
28
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Packet Pg. 894 Attachment: CD.Andreson.A2.Resolution 2017-013 (5414 : Parking Lease Agreement for the Andreson Building Located at 320 N. “E” Street)
1 fact that any one or more subsections, subdivisions, sentences, clauses, or phrases be declared
2 unconstitutional, invalid, or ineffective.
3
4
5
6
8
9
10
11
12
13
14
15 ///
16
17
18
19
20
21 ///
22
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27 ///
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Packet Pg. 895 Attachment: CD.Andreson.A2.Resolution 2017-013 (5414 : Parking Lease Agreement for the Andreson Building Located at 320 N. “E” Street)
1 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO APPROVING A PARKING AGREEMENT BETWEEN THE CITY
2 AND 320 N. E STREET, LLC FOR USE OF 125 UNRESERVED PARKING STALLS
IN THE CITY HALL PARKING STRUCTURE
3
4
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
5
6 and City Council of the City of San Bernardino at a joint regular meeting thereof, held on the
7
23rd day of January, 2017, by the following vote, to wit:
8
Council Members: AYES NAYS ABSTAIN ABSENT
9
MARQUEZ X
10
11
BARRIOS X
12 VALDIVIA X
13 SHORETT X
14 NICKEL X
15
RICHARD X
16
17
MULVIHILL X
18
19 Georgeann tanna, CM ,City Clerk
20
21 The foregoing Resolution is hereby a pp roved this yY of January, 2017.
22
23
24
R. Carey Da
ernardino'
s, Mayor
City of San
25 Approved as to form:
26 Gary D. Saenz, City Attorney
27
28
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Packet Pg. 896 Attachment: CD.Andreson.A2.Resolution 2017-013 (5414 : Parking Lease Agreement for the Andreson Building Located at 320 N. “E” Street)
2017-13
PARKING LICENSE AGREEMENT
ANDRESON BUILDING)
This Parking License Agreement ("Agreement") is made on January 73 , 2017
Effective Date"),by and between the City of San Bernardino ("City") and 32o N. E Street,
LLC ("Licensee"). The parties to this Agreement are collectively referred to herein as the
Parties" and individually as a"Party." This Agreement is made with respect to the facts set
forth in the Recitals below:
RECITALS —
A. The City owns a three-level parking structure located at property in the City
known as the Carousel Mall ("Mall Structure") and a five-level parking structure located to
the south of City Hall ("City Hall Structure").
B. Licensee owns or is in escrow to acquire a 62,411 square foot commercial
office building located at 32o North "E" Street in the City, referred to as the Andreson
Building. The Andreson Building has no or virtually no on-site parking. However, the
Andreson Building is adjacent to the Mall Structure and within walking distance of the City
Hall Structure.
C. Licensee wishes to secure parking for occupants and invitees of the Andreson
Building within the Mall Structure to the extent available, and to the extent not available,
within the City Hall Structure.
D. The City's Development Code ("Code") requires that new and expanded land
uses in the land use zone and transit overlay district in which the Andreson Building is
located provide one on-site parking space for every 500 square feet of floor area. Code
Section 19.62.030 provides that a nonconforming use which lawfully existed prior to the
effective date of the Code,but which is no longer permitted in the zone in which it is located,
may continue subject to certain requirements. These requirements include that additional
development of the property shall require that new uses conform to the Code, and that a
nonconforming once converted to a conforming use may not be resumed. As a legal
nonconforming use, the Andreson Building may continue to operate without providing on-
1
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Packet Pg. 897 Attachment: CD.Andreson.A2.Resolution 2017-013 (5414 : Parking Lease Agreement for the Andreson Building Located at 320 N. “E” Street)
2017-13
site parking as would otherwise be required, subject to the Code requirements for a legal
nonconforming use.
AGREEMENT-
1. License of Parking Spaces.
Commencing on the Effective Date of this Agreement, Licensee shall be
licensed on a non-exclusive basis to use the number of undesignated, non-reserved parking
spaces specified in Section 2(c) in the Mall Structure and, to the extent that number of
spaces are or may become unavailable at the Mall Structure, a sufficient number of such
spaces at the City Hall Structure to provide Licensee with a total of the number of spaces
specified in said Section. The spaces provided may be at one structure, or the other, or
divided among the two. The terms "non-exclusive," "undesignated," and"non-reserved"
mean that the City will not, while this Agreement is in effect, assign to or reserve for third
parties, on an exclusive basis, a number of spaces at the two structures that would result in
fewer than the number of spaces specified in Section 2(c) remaining unassigned among the
two structures,but do not mean that the City warrants or guarantees that said number of
spaces will remain free of vehicles and available to occupants and business invitees of the
Andreson Building at any given time. Licensee acknowledges and understands that the
undesignated, non-reserved spaces at the Mall Structure and City Hall Structure are
currently and may continue to be open for use by the general public, and that demand for
those spaces may exceed the number of spaces available at any given time.
2. Term of Agreement and Number of Spaces.
a) The initial term of this Agreement shall be five years following the
Effective Date of this Agreement ("Initial Term").
b) After the Initial Term, Licensee may, with the consent of the City, opt
to extend the term of this Agreement for up to four additional five-year periods, for a total
maximum term of 25 years counting the Initial Term and all optional extensions. Licensee
shall notify the City in writing of Licensee's exercise of each option to extend not later than
18o days before the expiration of the then current term of this Agreement.
c) At the time of the exercise by Licensee of the first of its options to
extend under Section 2 (b), Licensee shall specify the number of spaces it wishes to be
licensed to use for the twelve (12) months beginning with the first day of the extended term,
up to a maximum of 125. Licensee shall follow the same procedure at the end of said twelve
2
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Packet Pg. 898 Attachment: CD.Andreson.A2.Resolution 2017-013 (5414 : Parking Lease Agreement for the Andreson Building Located at 320 N. “E” Street)
2017-13
12) months period, and at the end of each ensuing twelve (12) months for the term of this
Agreement. At the time Licensee makes such specification of the number of spaces
requested,the Parties shall agree upon the amount to be paid by Licensee for the use of the
spaces, as set forth in Section 3(b).
d) The City's consent to extension and its agreement to license to
Licensee the number of spaces requested by Licensee shall not be unreasonably withheld,
but may be withheld if the City determines the number of spaces requested will not be
available during the period for which the spaces are requested.
3. Payment.
a) For the Initial Term, Licensee shall be licensed to use 125 spaces, on
the terms set forth in Section 1, at no cost. The City's agreement to this provision is in
consideration of the current occupancy level of the Andreson Building, Licensee's intent to
relocate the business operations of itself and/or its affiliate(s) to downtown San Bernardino,
and the anticipated economic benefit to the City and its residents of such relocation.
Licensee therefore agrees that the City shall have no obligation to extend the no-cost
parking provision of this Section 3(a) to any transferee of the Andreson Building, and that
any such transferee who wishes to be licensed to use parking spaces in the Mall Structure or
City Hall Structure will be required to comply with Section 3(b) of this Agreement,
beginning immediately upon the transfer of title. Licensee further agrees to advise any such
transferee of the provisions of this Section 3(a) in advance of such transfer.
b) Following the Initial Term, Licensee shall pay the City a monthly fee
for the use of the number of parking spaces which it is licensed to use under this Agreement.
The monthly fee shall be agreed upon by the Parties at the time of the exercise by Licensee
of the first of its options to extend under Section 2 (b) and every twelve (12) months
thereafter for the term of this Agreement. The fee shall be negotiated in good faith so as to
be substantially equivalent to the prevailing market rate,based upon a parking study
performed by the City. At the end of the initial 12 months following the Initial Term, and
every 12 months thereafter, the monthly fee shall be adjusted by the percentage increase or
decrease in the Consumer Price Index for Los Angeles-Riverside-Orange Counties, CA
during the preceding 12 months, as published by the U. S. Department of Labor, Bureau of
Labor Statistics.
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Packet Pg. 899 Attachment: CD.Andreson.A2.Resolution 2017-013 (5414 : Parking Lease Agreement for the Andreson Building Located at 320 N. “E” Street)
2017-13
c) Payment shall be remitted on the first business day of each month to
the City at the address set forth later in this Agreement or at such other address as may later
be designated by the City.
d) Where payment is required under this Agreement, Licensee shall pay
for the number of spaces it is licensed to use each year,whether or not Licensee actually
needs or uses that number of spaces.
4. Licensee's Right of Assignment. Licensee may assign to occupants of the
Andreson Building and their business invitees the right to use any of the parking spaces
licensed to Licensee under this Agreement. With the consent of the City,which shall not be
unreasonably withheld, Licensee may assign any or all of its rights under this Agreement to
a purchaser of the Andreson Building, except the right to be licensed to use spaces at no cost
during the Initial Term, as stated in Section 3(a). All persons using parking spaces licensed
to Licensee under this agreement must agree in writing to comply with all terms of this
Agreement and with all applicable rules, regulations, City of San Bernardino Municipal
Code provisions, and other provisions of law governing the use of the spaces.
5. Limitation on Duration of Parking. Licensee shall not allow any parking
space licensed to Licensee under this agreement to be used by the same vehicle for more
than 72 consecutive hours.
6. Nonexclusive Right. Licensee's right to use parking spaces in the Mall
Structure and City Hall Structure shall be on a non-exclusive basis. Nothing in this
Agreement precludes the City from licensing such spaces to third parties, so long as at least
the number of spaces licensed to Licensee remain unassigned among the two structures, or
from designating any such spaces for use by the public.
7. Closure of Facilities. The City shall have the right, on 3o days'notice, to
close the Mall Structure or City Hall Structure, or both,temporarily to make necessary
repairs or modifications or for such other purposes as may be reasonably required. Closure
may be on less notice in the event of emergency or other non-foreseeable need for repair. In
addition, Licensee acknowledges and understands that the City is in the process of
redevelopment of the Carousel Mall and that such redevelopment may cause the permanent
closure of the Mall Structure. Permanent closure of both the Mall Structure and the City
Hall Structure for any reason shall terminate this Agreement.
4
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Packet Pg. 900 Attachment: CD.Andreson.A2.Resolution 2017-013 (5414 : Parking Lease Agreement for the Andreson Building Located at 320 N. “E” Street)
2017-13
8. Eminent Domain. If any part of the Mall Structure or the City Hall
Structure is taken by eminent domain,the compensation for such taking shall belong to the
City, except for relocation expenses paid or awarded to Licensee.
9. Loss or Destruction. Loss or destruction of any of the parking spaces
licensed to Licensee under this Agreement shall terminate this Agreement as to those
spaces,without liability on the part of either of the Parties.
1O. Possessory Interest Tax. The property interest created by this Agreement
may be subject to property taxation, and Licensee may be subject to the payment of property
taxes levied on the interest. Licensee agrees to pay when due any possessory interest tax
that is levied on Licensee's right to the use of parking spaces under this Agreement.
11. Indemnity. Licensee agrees to defend, indemnify and hold harmless the
City against all claims and any loss, liability, or damage of whatever nature arising out of or
in any way relating to Licensee's use or occupancy of parking spaces pursuant to this
Agreement.
12. Insurance. Licensee shall maintain the following policies of insurance
throughout the term of this Agreement:
a) Commercial general liability coverage, including coverage for assumed
contractual liability under this Agreement, of at least $2 million aggregate per occurrence.
The City and its elected officials, officers, employees, and agents must be named as
additional insureds. Coverage must protect against claims for bodily injury, personal injury
and property loss or damage based upon, involving or arising out of the use or occupancy of
any of the parking spaces licensed to Licensee under this Agreement. Coverage shall be on
an occurrence basis. The policy shall not contain any intrainsured exclusions as between
insured persons and organizations, and the insurer shall waive subrogation as against the
City. Coverage shall be primary to and not contributory to any insurance carried by the City.
Any and all City insurance shall be considered excess insurance only. Coverage shall not be
subject to cancellation or modification except on at least 3o days' notice to the City.
b) If and to the extent required by law, Licensee shall maintain workers'
compensation or similar insurance in the form and amounts required by law.
Insurers providing coverage shall be qualified to do business in California and shall
maintain during the term of the policy an A.M. Best Financial Strength Rating of at least A
and a Financial Size Category designation of at least V. Satisfactory evidence of coverage
must be provided to the City before this Agreement will become effective.
5
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Packet Pg. 901 Attachment: CD.Andreson.A2.Resolution 2017-013 (5414 : Parking Lease Agreement for the Andreson Building Located at 320 N. “E” Street)
2017-13
13. Default and Cure. Failure to perform, or material delay in performing, any
material term of this Agreement shall constitute a default. The defaulting Party shall have
thirty(30) days after notice of default to cure the default and pay any consequential
damages to the Party damaged by the default. If the default is not timely cured, the non-
defaulting Party may, at its option,terminate the Agreement and seek all available legal
remedies.
14. No Waiver. Delay by a Party in asserting or failure to assert any right or
remedy under this Agreement or provided by law shall not constitute a waiver of said right
or remedy.
15. Entire Agreement. This Agreement is the entire agreement of the Parties
concerning the matters addressed herein and supersedes all prior and contemporaneous
expressions, discussions, negotiations, or agreements with respect to those matters.
16. Approvals. This Agreement shall not be signed on behalf of the City, and
shall not be effective, until the City Council of the City, also referred to as the Common
Council ("Council")has approved the Agreement on behalf of the City.
17. Modification. This Agreement can only be modified in a writing signed by
all Parties. Any modifications must be approved in writing by the Council.
18. Choice of Law; Venue. This Agreement and its interpretation shall be
governed by the law of the State of California including, as applicable, the City of San
Bernardino Municipal Code. Venue for any legal action arising out of this Agreement shall
be in the Superior Court of the State of California for the County of San Bernardino.
19. Interpretation. Neither of the Parties shall be considered to have drafted
this Agreement,for purposes of the rule that ambiguity in an agreement shall be construed
against the drafting party.
20. Severability. If any provision of this Agreement is declared by a court or
other entity of competent jurisdiction to be invalid or otherwise unenforceable, all
remaining provisions not affected by said declaration of invalidity or unenforceability shall
be fully enforceable.
21. Additional Documents. The Parties agree to execute such additional
documents as may be required to effectuate the provisions of this Agreement.
22. Authorization. Each of the Parties certifies that the individual executing
this Agreement on its behalf has the authority to do so.
6
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Packet Pg. 902 Attachment: CD.Andreson.A2.Resolution 2017-013 (5414 : Parking Lease Agreement for the Andreson Building Located at 320 N. “E” Street)
2017-13
23. Notices. Notices or other communications under this Agreement shall be in
writing and shall be deemed to have been properly given on the day delivered in person, or
seven (7) days after deposit in the United States Mail, postage prepaid, certified with return
receipt requested. Notices shall be given at the following addresses:
City:
City of San Bernardino
Office of the City Manager
30o North`D' Street, Sixth Floor
San Bernardino, CA 92418
Attn: City Manager
Licensee:
32o N. E Street, LLC
Dillon Gerardi Hershberger Miller&Ahuja, LLP
5872 Owens Avenue, Suite 200
Carlsbad, California 92008
Either Party may change its address for purposes of notice under the Agreement by giving
notice to the other Party in accordance with this Section 23.
24. Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed to be an original.
CITY OF SAN BERNARDINO
By: Date: 72017
Title:
7
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Packet Pg. 903 Attachment: CD.Andreson.A2.Resolution 2017-013 (5414 : Parking Lease Agreement for the Andreson Building Located at 320 N. “E” Street)
2017-13
32o N. E STREET, LLC
By: Date: 2017
Title:
APPROVED AS TO FORM:
Gary D. Saenz, City Attorney
By.
8
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Packet Pg. 904 Attachment: CD.Andreson.A2.Resolution 2017-013 (5414 : Parking Lease Agreement for the Andreson Building Located at 320 N. “E” Street)
ECONOMIC DEVELOPMENT SUBSIDY REPORT
PURSUANT TO GOVERNMENT CODE SECTION 53083
FOR A PARKING LEASE AGREEMENT BY AND
BETWEEN CITY OF SAN BERNARDINO AND
320 NORTH “E” STREET, LLC.
Pursuant to Government Code Section 53083, the City Council of the City of San Bernardino,
California, must hold a noticed public hearing and, prior to the public hearing, provide all of
the following information in written form and available to the public and through the City’s
website, regarding a proposed economic development subsidy to be provided by the City.
Notice was published in the local newspaper for a public hearing to be held on March 7, 2018.
The purpose of this report is to provide the information required pursuant to Government Code
Section 53083 in regards to the Agreement. This report shall remain available to the public and
posted on the City’s website until the end date of the economic development subsidy, as
further described in number 2 below.
1. The name and address of all corporations or any other business entities, except for
sole proprietorships, that are the beneficiary of the economic development subsidy.
The Agreement is with 320 North E Street LLC, which recently purchased and operates
an existing 62,411 square foot office building and will benefit from the parking
subsidy.
2. The start and end dates and schedule, if applicable, for the economic development
subsidy.
If the Agreement is approved by the City Council, the start date of the economic
development subsidy will be on or around March 15, 2018, and the end date will be no
after than 5 (five) years after the state date, on or around March 15, 2023.
3. A description of the economic development subsidy, including the estimated total
amount of the expenditure of public funds by, or of revenue lost to, the local
agency as a result of the economic development subsidy.
The economic development subsidy is a maximum of $38,000 annually for five years
($190,000 total) in lost revenue to the City, assuming another tenant would pay the
City for use of the parking spaces.
4. A statement of the public purposes for the economic development subsidy.
The City has a vested interest in bringing new non-government office tenants to
downtown that will stimulate the revitalization of the downtown core. The Andreson
Building will be occupied by professional office workers that will eat meals and shop
in downtown. This is the first significant new office invest by a private owner in
downtown in many years.
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Packet Pg. 905 Attachment: CD.Andreson.A3.Subsidy Report (5414 : Parking Lease Agreement for the Andreson Building Located at 320 N. “E” Street)
5. The projected tax revenue to the local agency as a result of the economic
development subsidy.
The City anticipates that the occupancy of the Andreson Building by tenants will result
in additional business license revenue and additional spending by employees of an
unknown amount. Given the building has been largely vacant for more than ten years,
estimating the increase in economic activity is hard to accurately quantify.
6. The estimated number of jobs created by the economic development subsidy,
broken down by full-time, part-time, and temporary positions.
The new tenants of the Andreson Building will add approximately 50 full-time jobs to
the downtown over the five year term of the Parking Agreement.
25.d
Packet Pg. 906 Attachment: CD.Andreson.A3.Subsidy Report (5414 : Parking Lease Agreement for the Andreson Building Located at 320 N. “E” Street)
Public Hearing
City of San Bernardino
Request for Council Action
Date: March 7, 2018
To: Honorable Mayor and City Council Members
From: Andrea M. Miller, City Manager
By: Trish Rhay, Director of Public Works
Ryan Aschenbrenner, Real Property Specialist
Subject: Formation of Assessment District No. 1056 for the Cost of
Landscape Maintenance in the Magnolia Avenue and Garfield
Street Area relative to Tentative Tract No. 16502
Recommendation
Conduct a Public Hearing on the proposed formation of a special assessment district, to
be known as Assessment District No. 1056, located in the Magnolia Avenue and
Garfield Street Area.
Adopt a Resolution of the Mayor and City Council of the City of San Bernardino,
California, determining the existence of less than a majority protest, that ballots
submitted in favor of the assessment exceed the ballots submitted in opposition to the
assessment and that Public Convenience and Necessity require the maintenance of
landscaping and a detention basin located in the Magnolia Avenue and Garfield Street
Area, approving the final Engineer’s Report, creating an assessment district to cover the
cost of said maintenance, known as Assessment District No. 1056, ordering the work,
confirming the 2018-2019 Assessment Roll, and determining that the Special
Assessment Investigation, Limitation and Majority Protest Act of 1931 shall not apply.
Background
On November 18, 2003, the Planning Commission approved Tentative Tract Map No.
16502, located to the north of Ohio Avenue and west of Magnolia Avenue. On August
15, 2017, Beazer Homes, the developer of this property, submitted a petition for the
formation of a landscape maintenance assessment district, as required by the
conditions of approval for the development of this site. The formation of this District will
assess the special benefit costs of maintaining the landscaping and appurtenances to
the owners of the properties benefiting from the maintenance area. The areas to be
maintained by the District will be landscaping and all appurtenances within slopes along
portions of the northerly side of Ohio Avenue and within slopes along portions of the
westerly side of Magnolia Avenue and within the detention basin situated within Lot A
and Lot B of Tract 16502. The developer has paid the required $5,900 formation fee.
26.a
Packet Pg. 907 Attachment: PW.AD 1056 - Staff Report (5412 : Formation of Assessment District No. 1056 for the Cost of Landscape Maintenance in the
Tract No. 16502 consists of 38 single-family lots. The annual cost of maintenance and
incidentals will be spread across these 38 lots. Part of the formation proceedings
includes the preparation of an Engineer’s Report (Attachment 1), which details the costs
necessary to carry out the ongoing maintenance of landscaping and is attached for your
review. As required by law, only special benefit may be assessed to properties within
an assessment district. Any benefit found to be a general benefit may not be assessed
to the District. As set forth in the Engineer's Report, portions of the landscaping along
both Ohio Avenue and Magnolia Avenue has been deemed to be of a general benefit.
The general benefit portion of the annual cost of maintenance is estimated to be
$385.48, and cannot be assessed to the District. This amount will need to be paid from
the general fund or other non-district fund source. The special benefit portion of the
annual cost of maintenance, including all incidental expenses, is estimated to be
$18,134.74. This amount will be spread across the 38 lots within the District and the
annual maintenance cost per lot will be $477.23. The Engineer’s Report allows for
annual increases of CPI (Consumer Price Index), or 5%, whichever is less, to cover
increases in maintenance costs. Increases over this amount will either need to be
approved by the property owners within the District, or be paid for by the City.
Discussion
On January 17, 2018 the Mayor and City Council adopted Resolution 2018-16, which
set a public hearing for March 7, 2018, and preliminarily approved the Engineer's
Report. Approval of this District will be subject to an assessment ballot process, which
requires a majority approval by the property owners within the proposed District
boundary. Ballots are weighted proportionally to the amount of the proposed
assessment for each parcel. Notice of the public hearing and assessment ballots were
mailed to the owner of record, Beazer Homes, on January 18, 2018, pursuant to
Government Code section 53753. Since all of the properties within the District are
currently under the ownership of Beazer Homes, who petitioned the City to form this
district, no protest is anticipated. Once the district has been formed, the developer is
required to disclose the existence of the assessment district to property owners who
purchase units from the developer subject to assessment; the City also files a Notice of
Assessment with the County Recorder pursuant to Street and Highways Code (SCH)
section 3114.
The formation of the proposed assessment district is a condition for recordation of Tract
Map 16502. If the assessment district is not formed then the Tract Map for this
development will not be allowed to record unless the condition is waived. In this case,
the City would forego reimbursement for the majority of the cost of the maintenance of
the landscaping and all appurtenances within slopes along portions of the northerly side
of Ohio Avenue and within slopes along portions of the westerly side of Magnolia
Avenue and within the detention basin situated within Lot A and Lot B of Tract 16502.
On January 23, 2018, the Assessment District Boundary map was filed in the office of
the City Clerk as well as the preliminarily approved Engineers Report.
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Packet Pg. 908 Attachment: PW.AD 1056 - Staff Report (5412 : Formation of Assessment District No. 1056 for the Cost of Landscape Maintenance in the
On January 30, 2018, the Assessment Boundary Map was recorded with the County
Recorder’s office pursuant to SHC section 3111, which requires that said boundary map
be filed within 15 days of the resolution of intention but no later than 15 days prior to the
noticed public hearing.
On February 10, 2018, Resolution 2018-16, was published in the San Bernardino Sun
Newspaper, pursuant to City Municipal Code, Chapter 12.90, Section 12.90.040,
Subsection “C”. Pursuant to the same, notice of the adoption of Resolution 2018-16
was posted on the west side of Magnolia Avenue within the proposed district
boundaries.
The City Municipal Code, Chapter 12.90 “Establishment, Financing and Operation of
Assessment Districts”, specifies that the resolutions forming assessment districts
pursuant to Chapter 12.90 state that the Mayor and City Council does so without
compliance with the Special Assessment Investigation, Limitation and Majority Protest
Act of 1931. The proceedings however are in compliance with the Proposition 218
Omnibus Implementation Act which supersedes the Special Assessment Investigation,
Limitation and Majority Protest Act of 1931.
Pursuant to Government Code(GOV) section 53753, at the conclusion of the public
hearing, an impartial person designated by the City who does not have a vested
interested in the outcome of the proposed assessment shall tabulate the assessment
ballots submitted, and not withdrawn, in support of or opposition to the proposed
assessment. The ballots shall remain sealed until such time, to be unsealed and
tabulated in public view.
If after the tabulation no majority protest exists, the Mayor and City Council may adopt a
resolution determining the existence of less than a majority protest, that the public
convenience and necessity require the work, approving the final Engineer’s Report,
creating Assessment District No. 1056 to cover the cost of said maintenance, confirming
the first year’s assessment roll within the district, determining that the Special
Assessment Investigation, Limitation and Majority Protest Act of 1931 shall not apply,
and determining that the formation of the assessment district is categorically exempt
from the California Environmental Quality Act.
If after the tabulation a majority protest exists then, pursuant to GOV section 53753, the
assessment shall not be imposed. In such an event, a Resolution of Abandonment will
need to be filed with the County Recorder’s office referencing the Resolution of Intention
and the Assessment District Boundary map, pursuant to Street and Highways Code
section 3117.
Fiscal Impact
Applicant has paid the $5,900 processing fee to cover the costs of the formation
proceedings. Once formed the estimated costs of annual maintenance in the amount of
$18,134.74, deemed to be a special benefit, will be assessed to property owners within
the Assessment District, whereas the estimated annual cost of maintenance in the
26.a
Packet Pg. 909 Attachment: PW.AD 1056 - Staff Report (5412 : Formation of Assessment District No. 1056 for the Cost of Landscape Maintenance in the
amount of $385.48, deemed to be a general benefit, will be an annual liability to the
General Fund.
Conclusion
If no majority protest exists, and if the ballots submitted in favor exceed those submitted
in opposition, then staff recommends that the Mayor and City Council proceed with the
formation of Landscape Maintenance Assessment District in the Magnolia Avenue and
Garfield Street Area known as Assessment District No. 1056 (Tract No. 16502), and
that the attached Resolution Ordering Work be adopted.
Attachments
Attachment 1 – Engineer’s Report for Assessment District No. 1056
Attachment 2 – Resolution
Wards: 5
Synopsis of Previous Council Actions:
• January 17, 2018 – Mayor and City Council adopted Resolution 2018-16, preliminarily
determining that Public Convenience and Necessity require the formation of a landscape
maintenance assessment district located in the Magnolia Avenue and Garfield Street Area
without compliance with the Special Assessment Investigation, Limitation and Majority
Protest Act of 1931; re-declaring its intention to proceed to order work within the district,
to be known as Assessment District No. 1056; preliminarily approving the Engineer’s
Report and giving Notice of a Public Hearing.
• January 17, 2018 – Mayor and City Council adopted Resolution 2018-15, rescinding
Resolution 2017-246
• December 20, 2017 – Mayor and City Council adopted Resolution 2017-246, preliminarily
determining that Public Convenience and Necessity require the formation of a landscape
maintenance assessment district located in the Magnolia Avenue and Garfield Street Area
without compliance with the Special Assessment Investigation, Limitation and Majority
Protest Act of 1931; declaring its intention to proceed to order work within the district, to
be known as Assessment District No. 1056; preliminarily approving the Engineer’s Report
and giving Notice of a Public Hearing.
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Packet Pg. 910 Attachment: PW.AD 1056 - Staff Report (5412 : Formation of Assessment District No. 1056 for the Cost of Landscape Maintenance in the
1
ENGINEER'S REPORT
for
ASSESSMENT DISTRICT NO. 1056
(Magnolia Avenue and Garfield Street Area Landscape Maintenance Assessment District)
In the
CITY OF SAN BERNARDINO
COUNTY OF SAN BERNARDINO
STATE OF CALIFORNIA
File No. 14.40-147
CITY OF SAN BERNARDINO
DEPARTMENT OF DEVELOPMENT SERVICES
PUBLIC WORKS DIVISION
Prepared 10/09/2017
PUBLIC WORKS COPY
26.b
Packet Pg. 911 Attachment: PW.AD 1056 - Attachment 1 - Engineer's Report for Assessment District No. 1056 (5412 : Formation of Assessment District No.
Engineers Report – AD 1056
2
ENGINEER’S REPORT
for
ASSESSMENT DISTRICT NO. 1056
FILED in the office of the City Clerk of the City of San Bernardino on the_____ day of __________________,
.
CITY CLERK
City of San Bernardino
PRELIMINARY approval by the Mayor and Common Council of the City of San Bernardino, County of San
Bernardino, State of California on the_____ day of __________________, .
CITY CLERK
City of San Bernardino
FINAL approval by the Mayor and Common Council of the City of San Bernardino, County of San Bernardino,
State of California on the______ day of _______________________, _______________.
CITY CLERK
City of San Bernardino
I HEREBY CERTIFY that the foregoing assessments, together with the Diagram of Assessment District No. 1056,
were approved and confirmed by the Mayor and Common Council of the City of San Bernardino, County of San
Bernardino, State of California on the _____ day of ______________, .
CITY CLERK
City of San Bernardino
26.b
Packet Pg. 912 Attachment: PW.AD 1056 - Attachment 1 - Engineer's Report for Assessment District No. 1056 (5412 : Formation of Assessment District No.
Engineers Report – AD 1056
3
CITY OF SAN BERNARDINO
DEPARTMENT OF DEVELOPMENT SERVICES
PUBLIC WORKS DIVISION
ENGINEER'S REPORT
ASSESSMENT DISTRICT NO. 1056
(Magnolia Avenue and Garfield Street Area Landscape Maintenance Assessment District)
PETITION -- On August 15, 2017, a petition was received from the owner or the developer
representing the owner of property within the proposed assessment district for the establishment of an
assessment district for the maintenance of landscaping and hardscaped areas. These improvements are relative
to the proposed development within Tentative Tract No. 16502. The signatures on the petition represent 100%
of the property owners of the parcels within the proposed boundaries of the district. This petition was the result
of a requirement placed upon the developer of Tentative Tract No. 16502 by the City to relieve the City from
having to maintain the areas of landscaping.
AUTHORIZATION -- On , 20____, by action of the Mayor and City Council of
the City of San Bernardino of San Bernardino, the Director of Public Works and City Clerk were authorized to
initiate proceedings for the formation of Assessment District No. 1056 (Magnolia Avenue and Garfield Street
Area Landscape Maintenance Assessment District) pursuant to the provisions of San Bernardino City
Municipal Code Chapter 12.90 and this Report has been prepared and is hereby submitted pursuant to said
provisions and in accordance with Resolution of Intention No. adopted by the Mayor and
Common Council of the City of San Bernardino on the _____day of _____________, _______.
ADVANCE OF ESTIMATED COSTS OF PROCEEDINGS -- On July 27, 2016, pursuant to Section
12.94.030 of the Municipal Code, the developer deposited $5,900 with the City to cover the estimated cost of
proceedings. At the conclusion of the proceedings and after confirmation of all costs, any amounts remaining will be
returned to the developer. If actual costs are more than the deposit, then the remainder can either be paid in a lump
sum by the developer or assessed against the properties involved.
EASEMENTS – All areas to be maintained will be within City owned property, dedicated right of way, or
within easements granted to the City for maintenance purposes and no maintenance will be carried out on private
property.
DESCRIPTION OF IMPROVEMENTS -- The areas to be maintained by the District will be landscaping
within slopes along portions of the northerly side of Ohio Avenue, landscaping within slopes along portions of the
westerly side of Magnolia Avenue and landscaping within a detention basin situated upon lots “A” and “B”, all
within Tract 16502, as well as a 150’ wide temporary fuel modification area located outside of Tract 16502 along
the northwesterly boundary of Tract 16502.
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Packet Pg. 913 Attachment: PW.AD 1056 - Attachment 1 - Engineer's Report for Assessment District No. 1056 (5412 : Formation of Assessment District No.
Engineers Report – AD 1056
4
PLANS AND SPECIFICATIONS --Plans and Specifications for the landscaping have been prepared by the
developer according to the standards of the City and is subject to final approval by the City prior to the installation
of any landscaping.
DESCRIPTION OF BOUNDARIES -- The boundaries of the proposed district are shown on the
Assessment Boundary Map of Assessment District No. 1056 and are generally described as follows:
The centerline of Ohio Avenue on the south; the westerly boundary of Tentative Tract No. 16502 on
the west; the centerline of Verdemont Drive on the north, and the centerline of Magnolia Avenue on
the east, in perpetuity; together with a temporary fuel modification easement area granted to the City
of San Bernardino in Document No. 2007-0443229, recorded 7/30/2007 in Official Records of the
County of San Bernardino, until such time that said easement has been extinguished.
VICINITY MAP -- A vicinity map showing the general location of the proposed Assessment District is
attached as Exhibit “1”.
DISTRICT BOUNDARY MAP -- A proposed District Boundary Map has been prepared and is on file in the
office of the City Clerk. A reduced copy of the District Boundary Map is attached as Exhibit “2”.
DISTRICT DIAGRAM -- A proposed Diagram of the Assessment District has been prepared and will be
filed with the City Clerk after preliminary approval of this Report and will be filed with the County Recorder and
recorded in the office of the City Engineer after final approval of this Report, confirmation of the Assessment Roll
and Resolution Ordering Work. A reduced copy of the Assessment District Diagram is attached as Exhibit “3”.
NOTICE OF EXEMPTION -- A "Notice of Exemption" declaring a Categorical Exemption was prepared
and will be filed with the Clerk of the Board of Supervisors of San Bernardino County upon formation of the
District. No further environmental proceedings will be necessary. A copy of the Notice of Exemption is attached as
Exhibit “4”.
METHOD OF ASSESSMENT AND DETERMINATION OF BENEFIT -- Landscaping and its proper
maintenance enhances the esthetics of any given area and the benefit received by the owners of properties in the area
is determined to be equal to the number of residential units that utilize the landscaped areas either as ingress and
egress or by actual physical use of the land as in the cases of large open areas. The boundaries of the proposed
district are drawn with this in mind and the Resolution of Intention delineates the specific areas of maintenance,
which will benefit all of the properties within the boundaries. Thus, each residential lot or unit, be it a single-family
lot, a condominium or an apartment will be assessed an equal share in the cost of maintenance (1 residential lot or
unit = 1 Assessment Unit). Vacant lots will be assessed a prorated share of the cost maintenance equivalent to the
number of residential lots that could be built, based on the minimum lot size of 10,800 square feet as set forth in the
City’s General Plan for Residential Low Zone. Thus, each vacant lot or parcel area (in square feet) is divided by
10,800 to determine its assigned assessment unit or portion thereof. (10,800 Square Feet = 1 Assessment Unit)
Based upon the single-family parcels proposed to be developed, the total assessment units for the district will
be 38.
26.b
Packet Pg. 914 Attachment: PW.AD 1056 - Attachment 1 - Engineer's Report for Assessment District No. 1056 (5412 : Formation of Assessment District No.
Engineers Report – AD 1056
5
The benefit received by the parcels within the boundaries of the district is determined to be of more than
ordinary public benefit, thus each parcel within the district being assessed receives a special benefit from the
improvements. If property not within the boundaries of a district also receives some benefit from the improvements,
consideration must then be given to a general benefit given by the improvements, which may not be assessed to the
parcels within the district. Since the installation and maintenance of the landscaping and establishment of an
assessment district for the maintenance of the landscaping is specific and incidental to this development, it is further
determined that the improvements to be maintained by the assessment district are of special benefit to the district
only and are 100% assessable to the parcels within the boundaries of the assessment district, except as follows:
1. Areas of maintenance that front on major arterial streets, as determined by the Circulation Plan of
the City’s General Plan, are determined to be 15% general benefit and the proportional costs thereof
are not assessable to the District.
2. Areas of maintenance that front on secondary arterial streets, as determined by the Circulation Plan
of the City’s General Plan, are determined to be 10% general benefit and the proportional costs
thereof are not assessable to the District.
3. Areas of maintenance that front on collector streets, as determined by the Circulation Plan of the
City’s General Plan, are determined to be 5% general benefit and the proportional costs thereof are
not assessable to the District.
4. Areas that front on local streets are determined to be 100% special benefit and are 100% assessable
to the District.
These percentages are based on the traffic circulation for the various street classifications.
Based on the City of San Bernardino’s current circulation element of its General Plan, the portions of Ohio
Avenue and Magnolia Avenue are designated as collector streets. Thus 5% of the cost of landscaping maintenance
and appurtenances along Ohio Avenue and Magnolia Avenue, are deemed to be of general benefit and not
assessable to the lots within the Assessment District.
Publicly owned lands within the Assessment District, if any, are subject to assessments, unless they receive
no benefit with the exception of public right of way, which is not subject to assessments.
METHOD OF FINANCING -- The estimated cost of the first year's maintenance shall be assessed against
the properties involved within the current fiscal year or the fiscal year following the establishment of the district.
Depending upon when the costs are assessed and when the actual maintenance is assumed by the City, this assessed
amount can be used as a source of pre-funding the first year's maintenance contract and incidental costs. Once the
City has assumed the responsibility for the maintenance, the properties may be assessed in advance each year
thereafter to establish a source of pre-funding each year's costs, or may be assessed for the actual contract and
incidental costs plus interest. Interest will be included in the assessment costs for any amounts or portions not pre-
funded through previous assessments. If there is a surplus from the estimated assessment in the event costs are pre-
funded through previous assessments, any such surplus shall be applied as a credit to the following year's assessment
26.b
Packet Pg. 915 Attachment: PW.AD 1056 - Attachment 1 - Engineer's Report for Assessment District No. 1056 (5412 : Formation of Assessment District No.
Engineers Report – AD 1056
6
or placed in a reserve fund to cover future increases or maintenance until such reserves are depleted. The
assessment, whether pre-funded or not, shall be levied, collected and enforced in the same manner, at the same time,
and with the same penalties and interest as in the case of taxes levied for property taxes. Table 1 sets forth the
estimated costs of the first year's maintenance. No Bonds will be sold relative to this Assessment District.
ASSESSMENT SPREAD -- The amount of each Assessment Unit is determined by dividing the total
maintenance costs, including all incidentals, by the total number of assessment units, as determined by the above
Method of Assessment. Each parcel in the district is then assessed based upon the total number of Assessment Units
calculated for that parcel.
ASSESSMENT ROLL -- There will be 38 single family parcels within Tract No. 16502, once the final map
is recorded, with each parcel representing 1 assessment unit as described under Method of Assessment, and
assessments are spread accordingly. No further subdivision of the parcels is anticipated. An Assessment Roll
representing the estimated first year’s maintenance costs has been prepared for the 38 parcels within Tract No.
16502 and is shown as Exhibit “5”. Any parcels remaining vacant, or not being subdivided, will be assessed based
on the number of single family lots that could be built pursuant to the City’s existing General Plan.
FUTURE APPORTIONMENTS -- In the event that the assessment units, as determined under Method of
Assessment, change for any parcel(s) during the term of the Assessment District, the assessment amount for that
parcel(s) will change accordingly. Any increases based solely on change in parcel size, land use or density, which
would result in an increase of assessment units, will not be subject to a public hearing as long as the formula for
determining the assessments as described is applied. Pursuant to Chapter 12.90 of the San Bernardino Municipal
Code, such reapportionments do not require the recording of an amended Diagram Map.
FUTURE INCREASES -- Due to the nature of landscape maintenance; it is anticipated that there will be
future increases in assessments as contract, labor, water and energy costs are all subject to future increases. Annual
increases may be increased without further notice or public hearing by a percentage equal to the increase in the
Consumer Price Index (CPI) for all Urban Consumers in the Los Angeles-Riverside-Orange County area, published
by the United States Department of Labor, Bureau of Labor Statistics over the previous year, or 5%, whichever is
less. The CPI is typically used for maintenance districts. The rate varies from year to year, but in no event will an
increase, if needed, exceed 5% without a majority approval of property owners in the district.
26.b
Packet Pg. 916 Attachment: PW.AD 1056 - Attachment 1 - Engineer's Report for Assessment District No. 1056 (5412 : Formation of Assessment District No.
Engineers Report – AD 1056
7
TABLE 1
ESTIMATED FIRST YEAR’S COST SUMMARY
Assessment District No. 1056
ASSESSMENT ROLL There will be 38 single family parcels within Tract No. 16502, once the final map is
recorded,(Magnolia Avenue and Garfield Street Area Landscape Maintenance Assessment District)
ASSESSMENT CALCULATION -- Applying the Method of Assessment and Assessment Spread described above,
the following formula is used to determine the assessment amount per Assessment Unit:
Total Costs ÷ Total Assessment Units = Cost per Assessment Unit
Thus
$18,134.74 ÷ 38 = $477.23 per Assessment Unit per year.
Description of Costs Quantity Unit Cost/Unit Annual Cost
A Maintenance of Turf / Irrigation - Sq.Ft.0.20 -$
B Maintenance of Groundcover /Shrubs/Irrigation 18,212 Sq.Ft.0.20 3,642.40$
C Maintenance of Trees / Irrigation 79 Ea.50.00 3,950.00$
D Landscape Area Subtotal 18,212 Sq. Ft.
E Maintenance of Detention Basin:
Maintenance of Turf / Hydroseed / Irrigartion 3,767 Sq.Ft.0.25 941.75$
Maintenance of Groundcover / Shrubs / Irrigartion 16,320 Sq.Ft.0.20 3,264.00$
Maintenance of Access Road / Trunaround 3,026 Sq.Ft.0.03 90.78$
Detention Basin Area Subtotal 23,113 Sq.Ft.
F Irrigation Costs (water and energy)38,299 Sq.Ft.0.10 3,829.90$
G Total maintenance area 41,325
H Weekly Inspection (labor,overhead) (Total Annual Hrs)26 Hours 30.00 780.00$
I Annual Assmt. Engineering (labor+overhead)5 Hours 33.00 165.00$
J Contract Adminstration (labor+overhead)15 Hours 22.00 330.00$
K Incidentals (materials, supplies, other costs)1 L.S.100.00 100.00$
L Outside Department Services (labor+overhead)1 L.S.400.00 400.00$
M Subtotal (A thru L)17,493.83$
N General Benefit Calculations:
O Area of General Benefit 18,212 Sq.Ft.
P Percent of Total Area (O / G)44.07%
Q Subtotal (M * P)7,710$
R General Benefit Percentage 5%
S General Benefit Amount Not Assessable (Q * R)385.48$ (385.48)$
T Subtotal (M+S) 17,108.35$
U Estimated Interest for non-prefunded amounts*6%1,026.50$
V Subtotal (T+U)18,134.85$
W Adjustment (Rounding for Assessment Roll)(0.11)$
TOTAL FIRST YEAR'S ESTIMATED COSTS (W + V)18,134.74$
26.b
Packet Pg. 917 Attachment: PW.AD 1056 - Attachment 1 - Engineer's Report for Assessment District No. 1056 (5412 : Formation of Assessment District No.
Engineers Report – AD 1056
8
ENGINEER'S STATEMENT
This Report, together with the Assessment District Boundary Map, Assessment Diagram and Proposed
Assessment Roll has been prepared and is being filed pursuant to and in compliance with Chapter 12.90 of the
San Bernardino Municipal Code and also in compliance with the requirements set forth in Article XIIID of the
California Constitution for the establishment of Assessment District No. 1056. (Magnolia Avenue and
Garfield Street Area Landscape Maintenance Assessment District)
____________________________ ______________________________________
Date Saba Engineer, Acting City Engineer
26.b
Packet Pg. 918 Attachment: PW.AD 1056 - Attachment 1 - Engineer's Report for Assessment District No. 1056 (5412 : Formation of Assessment District No.
Engineers Report – AD 1056
9
List of Exhibits
1. Vicinity Map..................................................... Exhibit "1"
2. Reduced copy of Boundary Map....................... Exhibit "2"
3. Reduced copy of Assessment District Diagram Exhibit “3”
4. Copy of "Notice of Exemption"......................... Exhibit "4"
5. Proposed Assessment Roll (FY 2017/2018)...... Exhibit "5"
26.b
Packet Pg. 919 Attachment: PW.AD 1056 - Attachment 1 - Engineer's Report for Assessment District No. 1056 (5412 : Formation of Assessment District No.
26.b
Packet Pg. 920 Attachment: PW.AD 1056 - Attachment 1 - Engineer's Report for Assessment District No. 1056 (5412 : Formation of Assessment District No.
26.b
Packet Pg. 921 Attachment: PW.AD 1056 - Attachment 1 - Engineer's Report for Assessment District No. 1056 (5412 : Formation of Assessment District No. 1056 for the Cost of Landscape Maintenance in the Magnolia Aven)
26.b
Packet Pg. 922 Attachment: PW.AD 1056 - Attachment 1 - Engineer's Report for Assessment District No. 1056 (5412 : Formation of Assessment District No. 1056 for the Cost of Landscape Maintenance in the Magnolia Aven)
CITY OF SAN BERNARDINO PUBLIC WORKS DEPARTMENT
NOTICE OF EXEMPTION
FROM: CITY OF SAN BERNARDINO, TO: OFFICE OF PLANNING AND RESEARCH
PUBLIC WORKS DEPARTMENT 1400 TENTH STREET, ROOM 121
290 N. “D” STREET SACRAMENTO, CA 95814
SAN BERNARDINO, CA 92401
X COUNTY CLERK
COUNTY OF SAN BERNARDINO
385 NORTH ARROWHEAD AVENUE
SAN BERNARDINO, CA 92415
Project Title:
Project Location-Specific:
Project Location-City: SAN BERNARDINO Project Location – County: SAN BERNARDINO
Description of project: SBMC 12.90 PROCEEDINGS FOR THE ESTABLISHMENT OF A LANDSCAPE
MAINTENANCE ASSESSMENT DISTRICT
Name of Public Agency Approving Project: CITY OF SAN BERNARDINO
Name of Person or Agency Carrying out Project: CITY OF SAN BERNARDINO
Exempt Status: (check one)
Ministerial (Sec. 21080(b)(1); 15268);
Declared Emergency (Sec. 21080(b)(3); 15269(a));
Emergency Project (Sec. 21080(b)(4); 15269(b)(c));
Categorical Exemption. State type and section number: Class 1 Sec: 15301(c)
Statutory Exemptions. State code number:
Reason why project is exempt: ESTABLISHMENT PROCEEDINGS FOR ASSESSMENT DISTRICT TO
PROVIDE FUNDING SOURCE FOR MAINTENANCE OF LANDSCAPING
Lead Agency
Contact Person: Area Code/Telephone/Extension: (909) 384-5126
If filed by applicant:
1. Attach certified document of exemption finding.
2. Has a notice of exemption been filed by the public agency approving the project? Yes No
Signature: Date: Title:
Signed by Lead Agency Signed by Applicant Date received for filing at OPR:
PLAN10.05 (5-90) Rev ENG (5-97) Page 1 of 1
ASSESSMENT DISTRICT NO. 1056
TRACT No. 16502 – – MAGNOLIA AVENUE AND GARFIELD STREET
LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT
Real Property Specialist
EXHIBIT "4"
RYAN ASCHENBRENNER
X
X
26.b
Packet Pg. 923 Attachment: PW.AD 1056 - Attachment 1 - Engineer's Report for Assessment District No. 1056 (5412 : Formation of Assessment District No.
CITY OF SAN BERNARDINO
2018 / 2019 ASSESSMENT ROLL - AD 1056
MAGNOLIA AVE. & GARFIELD ST. AREA LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT
Assessment No. Parcel No. Assessment Amt. 1 0261-031-01 $1,595.97
2 0261-031-02 $12,147.83
3 0261-031-09 $4,390.94
TOTALS: 3 Parcels $18,134.74
1056 / 2017 Page 1 of 1
26.b
Packet Pg. 924 Attachment: PW.AD 1056 - Attachment 1 - Engineer's Report for Assessment District No. 1056 (5412 : Formation of Assessment District No.
CITY OF SAN BERNARDINO
FUTURE ASSESSMENT ROLL - AD 1056
MAGNOLIA AVE. & GARFIELD ST. AREA LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT
Assessment No. Parcel No. Assessment Amt. 1 TR. 16502 Lot-01 $477.23
2 TR. 16502 Lot-02 $477.23
3 TR. 16502 Lot-03 $477.23
4 TR. 16502 Lot-04 $477.23
5 TR. 16502 Lot-05 $477.23
6 TR. 16502 Lot-06 $477.23
7 TR. 16502 Lot-07 $477.23
8 TR. 16502 Lot-08 $477.23
9 TR. 16502 Lot-09 $477.23
10 TR. 16502 Lot-10 $477.23
11 TR. 16502 Lot-11 $477.23
12 TR. 16502 Lot-12 $477.23
13 TR. 16502 Lot-13 $477.23
14 TR. 16502 Lot-14 $477.23
15 TR. 16502 Lot-15 $477.23
16 TR. 16502 Lot-16 $477.23
17 TR. 16502 Lot-17 $477.23
18 TR. 16502 Lot-18 $477.23
19 TR. 16502 Lot-19 $477.23
20 TR. 16502 Lot-20 $477.23
21 TR. 16502 Lot-21 $477.23
22 TR. 16502 Lot-22 $477.23
23 TR. 16502 Lot-23 $477.23
24 TR. 16502 Lot-24 $477.23
25 TR. 16502 Lot-25 $477.23
26 TR. 16502 Lot-26 $477.23
27 TR. 16502 Lot-27 $477.23
28 TR. 16502 Lot-28 $477.23
29 TR. 16502 Lot-29 $477.23
30 TR. 16502 Lot-30 $477.23
31 TR. 16502 Lot-31 $477.23
32 TR. 16502 Lot-32 $477.23
33 TR. 16502 Lot-33 $477.23
34 TR. 16502 Lot-34 $477.23
35 TR. 16502 Lot-35 $477.23
36 TR. 16502 Lot-36 $477.23
37 TR. 16502 Lot-37 $477.23
38 TR. 16502 Lot-38 $477.23
TOTALS: 38 Parcels $18,134.74
1056 / Future Page 1 of 1
26.b
Packet Pg. 925 Attachment: PW.AD 1056 - Attachment 1 - Engineer's Report for Assessment District No. 1056 (5412 : Formation of Assessment District No.
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RESOLUTION NO. __________
RESOLUTION OF THE CITY OF SAN BERNARDINO, CALIFORNIA,
DETERMINING THE EXISTENCE OF LESS THAN A MAJORITY PROTEST,
THAT BALLOTS SUBMITTED IN FAVOR OF THE ASSESSMENT EXCEED THE
BALLOTS SUBMITTED IN OPPOSITION TO THE ASSESSMENT AND THAT THE
PUBLIC CONVENIENCE AND NECESSITY REQUIRE THE MAINTENANCE OF
LANDSCAPING AND A DETENTION BASIN LOCATED IN THE MAGNOLIA
AVENUE AND GARFIELD STREET AREA; APPROVING THE FINAL
ENGINEER’S REPORT, CREATING AN ASSESSMENT DISTRICT TO COVER
THE COST OF SAID MAINTENANCE, KNOWN AS ASSESSMENT DISTRICT NO.
1056; ORDERING THE WORK, CONFIRMING THE 2018-2019 ASSESSMENT
ROLL, AND DETERMINING THAT THE SPECIAL ASSESSMENT
INVESTIGATION, LIMITATION AND MAJORITY PROTEST ACT OF 1931
SHALL NOT APPLY
WHEREAS, pursuant to Chapter 12.90 of the San Bernardino Municipal Code, the
Mayor and City Council of the City of San Bernardino have preliminarily found that the
public interest, convenience, and necessity require the maintenance of landscaping in a
portion of the City, as more fully hereinafter described, and the appurtenances and
appurtenant work and incidental costs and expenses in connection therewith, that the project is
feasible, and that the lands to be assessed will be able to carry the burden of the proposed
assessments to pay the costs and expenses thereof; and
WHEREAS, on January 17, 2018, the Mayor and Common City of the City of San
Bernardino preliminarily approved the Engineer's Report relative to the formation of
Assessment District No. 1056, which is on file in the office of the City Clerk, and adopted
Resolution No. 2018-16, which duly and legally was published and notice given of a Public
Hearing in the manner required by law, and pursuant to Section 4 of Article XIIID of the
California Constitution, all property owners given notice were also given an Assessment
Ballot to indicate support or opposition to the proposed assessment, and written objections
and protests, if any, to the formation of the proposed district, the work to be done or the extent
of the district to be assessed were heard and considered; and
WHEREAS, a Diagram of the Assessment District has been prepared and is on file in
the Office of the City Clerk; and
1
26.c
Packet Pg. 926 Attachment: PW.AD 1056 - Attachment 2 - Resolution (5412 : Formation of Assessment District No. 1056 for the Cost of Landscape
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WHEREAS, an Assessment Roll has been prepared totaling $18,134.74, which sets
forth the individual assessments to be levied on each of the parcels of land with in Assessment
District No. 1056, for the Fiscal Year 2018-2019, as set forth in the Engineer’s Report, as now
submitted, on file in the Office of the City Clerk.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. That a Public Hearing having been held March 7, 2018, the Mayor and
City Council, having heard and considered any and all comments received thereon and being
fully advised, hereby determine that any and all protests received represent less than a
Majority Protest, as represented by the assessment units assessable on the properties
represented by said protests.
SECTION 2. That the ballot having been received and considered, it is hereby
determined that the ballots submitted in favor of the assessment exceed the ballots submitted
in opposition to the assessment.
SECTION 3. That it is hereby determined that all properties, parcels and lots within
the boundaries of the Assessment District receive a local and direct benefit for the works of
improvement as proposed for said Assessment District, except for portions determined to be
of a general benefit as set forth in said Engineer’s Report, and it is hereby further determined
and declared that all assessable costs and expenses have been apportioned and spread over the
properties within the boundaries of the Assessment District in direct proportion to the benefits
received thereby.
SECTION 4. That the public convenience and necessity require the proposed
maintenance and the Mayor and City Council hereby order, by an affirmative vote of not less
than 4/5ths of its members present and voting, the formation of Assessment District No. 1056,
along with the work and appurtenances described in said Resolution No. 2018-16 and said
Engineer’s Report as herein approved and that the Special Assessment Investigation,
Limitation and Majority Protest Act of 1931 shall not apply.
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26.c
Packet Pg. 927 Attachment: PW.AD 1056 - Attachment 2 - Resolution (5412 : Formation of Assessment District No. 1056 for the Cost of Landscape
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SECTION 5. That the Engineer’s Report relative to the formation of Assessment
District No. 1056 as now submitted, together with a Diagram of the Assessment District, both
on file in the office of the City Clerk, are hereby accepted and approved and that said
Engineer’s Report shall stand as the Report for all future proceedings for this Assessment
District.
SECTION 6. That the Mayor and City Council do hereby find and determine that the
proportionate costs to be levied against the parcels of land within Assessment District No.
1056 are correctly set forth on Assessment Roll No. 1056 for the fiscal year 2018-2019, as set
forth in said Engineer’s Report, as now approved, and on file in the Office of the City Clerk
and do hereby confirm said assessments.
SECTION 7. That the City Clerk is hereby directed and authorized to publish a
Notice Inviting Bids for performing the work ordered, in the San Bernardino County Sun, a
newspaper published and circulated in said City, according to the specifications prepared or as
will be prepared by the City Engineer and on f the City Engineer, at such time when the
installation of the landscaping and appurtenances has been accepted by the City. The contract
will be awarded pursuant to standards used by the City in the award of Public Works
contracts.
SECTION 8. It is here by determined that the formation of the Assessment District is
categorically exempt from the requirements of the California Environmental Quality Act
(CEQA), pursuant to Class 1, Section 15301(c).
SECTION 9. Reference is hereby made to Resolution No. 2018-16 and said
Engineer’s Report for a description of the work, the extent of the Assessment District, the
financing alternatives and for further particulars.
SECTION 10. The City Clerk is directed to cause a copy of this Resolution to be
transmitted to the office of the Auditor-Controller for the County of San Bernardino with the
request that the individual assessments as shown on Assessment Roll No. 1056 be placed on
the subject 2018-2019 property tax bills for collection together with all other property taxes.
///
3
26.c
Packet Pg. 928 Attachment: PW.AD 1056 - Attachment 2 - Resolution (5412 : Formation of Assessment District No. 1056 for the Cost of Landscape
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RESOLUTION OF THE CITY OF SAN BERNARDINO, CALIFORNIA,
DETERMINING THE EXISTENCE OF LESS THAN A MAJORITY PROTEST,
THAT BALLOTS SUBMITTED IN FAVOR OF THE ASSESSMENT EXCEED THE
BALLOTS SUBMITTED IN OPPOSITION TO THE ASSESSMENT AND THAT THE
PUBLIC CONVENIENCE AND NECESSITY REQUIRE THE MAINTENANCE OF
LANDSCAPING AND A DETENTION BASIN LOCATED IN THE MAGNOLIA
AVENUE AND GARFIELD STREET AREA; APPROVING THE FINAL
ENGINEER’S REPORT, CREATING AN ASSESSMENT DISTRICT TO COVER
THE COST OF SAID MAINTENANCE, KNOWN AS ASSESSMENT DISTRICT NO.
1056; ORDERING THE WORK, CONFIRMING THE 2018-2019 ASSESSMENT
ROLL, AND DETERMINING THAT THE SPECIAL ASSESSMENT
INVESTIGATION, LIMITATION AND MAJORITY PROTEST ACT OF 1931
SHALL NOT APPLY
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
and City Council of the City of San Bernardino at a ______________________________
meeting thereof, held on the _____ day of ________________, 2018, by the following vote,
to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, CMC, City Clerk
The foregoing Resolution is hereby approved this _____ day of ________________, 2018.
R. Carey Davis, Mayor
City of San Bernardino
By:
Approved as to form:
Gary D. Saenz, City Attorney
4
26.c
Packet Pg. 929 Attachment: PW.AD 1056 - Attachment 2 - Resolution (5412 : Formation of Assessment District No. 1056 for the Cost of Landscape
Public Hearing
City of San Bernardino
Request for Council Action
Date: March 07, 2018
To: Honorable Mayor and City Council Members
From: Andrea M. Miller, City Manager
By: Jolena Grider, Chief Assistant City Attorney
Subject: Continue Public Hearing - Appeal of Pepe’s Towing
Recommendation
By mutual agreement of the parties, continue to March 21, 2018
Background
At the Mayor and City Council meeting on February 21, 2018, the motion was approved
to continue the hearing to March 7, 2018.
Discussion
Pepe’s Towing filed an appeal to the Mayor and City Council under San Bernardino
Municipal Code Section 2.64.050 on November 10, 2017 and filed an amended appeal
on November 27, 2017.
Fiscal Impact
None.
Conclusion
It is recommended that the Mayor and City Council continue the Public Hearing to
March 21, 2018.
Attachments
None.
27.a
Packet Pg. 930 Attachment: Attorney.Appeal of Pepes Tow.report cont item to 3-21 (5409 : Appeal of Denial of Tow Carrier--Pepe’s Towing)