HomeMy WebLinkAbout08-01-2018 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, AUGUST 1, 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. You may email your request to speak
to publiccomments@sbcity.org prior to 4 p.m. Each request will cover one speaker. Those who wish
to speak must submit their own request to be called on by the Mayor.
o There is a 3-minute-per-person time limit for all comments, excluding public or quasi-judicial
hearings.
o Written comment on any item may also be submitted to the City Clerk to be included in the meeting
record. It will not be read aloud by the City Clerk.
o Those who wish to speak on public or quasi-judicial hearing items will have three minutes for each item.
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 August 1, 2018
Mayor and City Council of the City of San Bernardino Page 2 Printed 7/27/2018
o
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
Redevelopment Agency of the City of San Bernardino v. DMC Investment
Holdings, LLC, Los Angeles County Superior Court Case No. BC465755, and
Placo San Bernardino, LLC v. City of San Bernardino, et al., Los Angeles County
Superior Court Case No. 468955
Committee for Safer Neighborhoods and Schools v. City of San Bernardino, et
al., San Bernardino County Superior Court Case No. CIVDS 1819250
B. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION
Initiation of litigation – Pursuant to Government Code Section 54956.9(d)(4):
City v. Rainbow Investment, Inc.
City v. US Bank NA
C. PUBLIC EMPLOYEE APPOINTMENT (Pursuant to Government Code
Section 54957):
City Attorney
INVOCATION AND PLEDGE OF ALLEGIANCE
Joint Regular Meeting Agenda August 1, 2018
Mayor and City Council of the City of San Bernardino Page 3 Printed 7/27/2018
CLOSED SESSION REPORT
PRESENTATIONS
1. Special Recognition – Mayor’s Youth Academy Internship Recipients
2. Chamber of Commerce & Local Elected Officials Announcements
PUBLIC COMMENTS FOR ITEMS LISTED AND NOT LISTED ON THE 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 on the agenda. 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 August 1, 2018.
4. City Council Approval of Commercial and Payroll Checks
Recommendation: Approve the commercial and payroll checks for July
2018.
5. City Council Approval of Draft Minutes
Recommendation: Approve the minutes of the Mayor and City Council
Regular Meeting of July 18, 2018.
6. Commercial Lease with Trans America Auto Logistics, LLC for a Portion of
the Parking Area at the Carousel Mall
Recommendation: Adopt Resolution No. 2018-211 of the Mayor and City
Council of the City of San Bernardino, California,
approving a Commercial Lease with Trans America
Auto Logistics, LLC for an approximately 15.4-acre
portion of the western side of the surface parking area
of the Carousel Mall Site and authorizing certain
related actions.
Joint Regular Meeting Agenda August 1, 2018
Mayor and City Council of the City of San Bernardino Page 4 Printed 07/25/2018
7. Award of Construction Contract for Pavement Rehabilitation at Ten
Locations to Matich Corporation
Recommendation: Adopt Resolution No. 2018-199 of the Mayor and City
Council of the City of San Bernardino, California,
approving a construction contract with Matich
Corporation, in the amount of $2,479,000 and
authorizing a construction contingency in the amount
of $247,000, for a total contract amount not to exceed
$2,726,000; authorizing the Finance Director to
amend the FY 2018/19 adopted budget to allocate
Measure I Funds to the project; authorizing the City
Manager or designee to sign all necessary
documents; and authorizing the City Manager to
expend the contingency fund, if necessary, to
complete the project.
8. Cooperative Agreement with the County of San Bernardino for Rehabilitation
of Sterling Avenue and Base Line Street
Recommendation: Adopt Resolution No. 2018-217 of the Mayor and City
Council of the City of San Bernardino, California,
approving a Cooperative Agreement with the County
of San Bernardino for Rehabilitation of Sterling
Avenue and Base Line Street.
9. First Amendment to the HF&H Consulting, LLC Agreement
Recommendation: Adopt Resolution No. 2018-218 of the Mayor and City
Council of the City of San Bernardino, California,
authorizing and directing the City Manager to execute
the First Amendment to the Consultant Services
Agreement with HF&H Consulting, LLC for as-needed
consulting services related to solid waste collection
service rates.
10. Cooperative Agreement with the City of Highland for Six Joint Projects
Recommendation: Adopt Resolution No. 2018-201 of the Mayor and City
Council of the City of San Bernardino, California,
approving a Cooperative Agreement with the City of
Highland for Six Joint Projects.
Joint Regular Meeting Agenda August 1, 2018
Mayor and City Council of the City of San Bernardino Page 5 Printed 7/27/2018
11. Authorize the Execution of a Vendor Services Agreement and Issue a
Purchase Order to NPA Computers, Inc. for System Maintenance Services
in an Amount Not to Exceed $108,108
Recommendation: Authorize the City Manager or her designee to
execute a Vendor Services Agreement and issue a
Purchase Order for system maintenance services with
NPA Computers, Inc. in an amount not to exceed
$108,108.
12. FY 2018/19 Senior Companion Program Grant Funding Appropriation
Recommendation: Adopt Resolution No. 2018-219 of the Mayor and City
Council of the City of San Bernardino, California,
ratifying the grant application submittal, accepting the
grant award of $287,788, appropriating grant revenue
expenditures, and allocating grant match
expenditures for the Senior Companion Program
(SCP) for the period of July 1, 2018 through June 30,
2019.
13. FY 2018/19 Senior Nutrition Program Grant Funding – Third Year of a Three
Year Grant Award
Recommendation: Adopt Resolution No. 2018-220 of the Mayor and City
Council of the City of San Bernardino, California,
ratifying the execution of the third year of a three-year
Grant Allocation on County Contract 16-389 with the
County of San Bernardino, Department of Aging and
Adult Services (DAAS); accepting the grant amount of
up to $335,000; appropriating grant expenditures;
issuing annual food services and consumable product
purchase orders to Sysco Foods, Merit Day, and
Smith Distribution; and issuing an annual purchase
order to Consulting Health & Nutrition Services for the
period of July 1, 2018 through June 30, 2019 for the
Senior Nutrition Program.
14. Authorize Execution of Vendor Services Agreement and Purchase Order to
West Coast Lights & Sirens for Police Vehicle Equipment
Recommendation: Adopt Resolution No. 2018-221 of the Mayor and City
Council of the City of San Bernardino, California,
authorizing the execution of a Vendor Services
Agreement between the City of San Bernardino and
West Coast Lights & Sirens and the issuance of a
Purchase Order in the amount of $253,280.
Joint Regular Meeting Agenda August 1, 2018
Mayor and City Council of the City of San Bernardino Page 6 Printed 7/27/2018
15. Imposing Liens to Recover Costs for Code Enforcement Abatement
Recommendation: Adopt Resolution No. 2018-222 of the Mayor and City
Council of the City of San Bernardino, California,
imposing liens on certain real property located within
the City of San Bernardino for the costs of public
nuisance abatements.
16. Health Benefits Plan Year 2019
Recommendation: Adopt Resolution No. 2018-223 of the Mayor and City
Council of the City of San Bernardino, California,
approving employer-paid health benefits contributions
for benefit plan year 2019 and election of Mayor and
City Council to receive the same benefit plan as the
Management/Confidential bargaining unit.
17. Development Code Amendment/Zoning Map Amendment 17-09
Recommendation: Accept for final reading and adopt Ordinance No. MC-
1500 of the Mayor and City Council of the City of San
Bernardino, California, approving Development Code
Amendment (Zoning Map Amendment) 17-09 to
change the Zoning District Classification from Office
Industrial Park (OIP) to Industrial Light (IL) of two (2)
parcels (APNs: 0280-142-25 and 36) containing a total
of approximately 1.4 acres.
STAFF REPORTS
18. Boys and Girls Club of San Bernardino – Charter Status
Recommendation: Discuss and provide direction related to the current
status of the charter for the Boys and Girls Club of
San Bernardino.
19. Agreement with the Franchise Tax Board for Reciprocal Data Sharing
Recommendation: Adopt Resolution No. 2018-225 of the Mayor and City
Council of the City of San Bernardino, California,
authorizing and directing the Director of Finance to
execute a reciprocal data sharing agreement with the
Franchise Tax Board.
Joint Regular Meeting Agenda August 1, 2018
Mayor and City Council of the City of San Bernardino Page 7 Printed 7/27/2018
20. Request to add CMFA Joint Powers Authority as a City of San Bernardino
provider under the Property Assessed Clean Energy (PACE) Program
Recommendation: Discuss and provide direction to staff concerning the
request to add CMFA Joint Powers Authority as a
provider under the City of San Bernardino’s PACE
Program.
21. League of CA Cities Mayors & Council Members Executive Forum and
Advanced Leadership Workshops – June 27-29, 2018
Recommendation: Receive an oral report from Council Members Barrios,
Nickel, and Mulvihill.
22. Municipal Legal Services
Recommendation: 1) Receive a presentation from the members of the
Ad Hoc Committee on the review, analysis, and
consideration of the proposals received from law
firms in response to the Request for Proposals for
municipal legal services;
2) Concur with the Ad Hoc Committee’s
recommendation that Best Best & Kreiger be
retained by the City of San Bernardino to provide
municipal legal services; and
3) Adopt Resolution No. 2018-224 of the Mayor and
City Council of the City of San Bernardino,
California, authorizing the City Manager to execute
an Agreement with BB&K for municipal legal
services and city attorney services.
23. Submission of Two Ballot Measures to the Voters on the Regulation and
Taxation of Cannabis Businesses
Recommendation: 1) Adopt Resolution No. 2018-227 of the Mayor and
City Council of the City of San Bernardino,
California, calling a general municipal election to
be held in the City of San Bernardino on
November 6, 2018 for the purpose of submitting to
the voters an ordinance regulating commercial
cannabis activities; requesting that the San
Bernardino County Board of Supervisors
consolidate said election with the State General
Election to be conducted the same date and to
permit the Registrar of Voters to provide election
services; and setting rules for arguments and
rebuttals for and against said measure.
Joint Regular Meeting Agenda August 1, 2018
Mayor and City Council of the City of San Bernardino Page 8 Printed 7/27/2018
2) Adopt Resolution No. 2018-228 of the Mayor and
City Council of the City of San Bernardino,
California, calling a general municipal election to
be held in the City of San Bernardino on
November 6, 2018 for the purpose of submitting to
the voters a general tax measure to establish a
cannabis business tax; requesting that the San
Bernardino County Board of Supervisors
consolidate said election with the State General
Election to be conducted on the same date and to
permit the Registrar of Voters to provide election
services; and setting rules for arguments and
rebuttals for and against said measure.
24. 2018 City County Conference Update – June 27-28, 2018
Recommendation: Receive an oral report from Council Member Shorett.
PUBLIC HEARING
25. Business Registration Liens
Recommendation: Conduct a public hearing to receive public comments on
the matter, direct the Director of Finance to remove any
properties from the Business Registration Liens List
which are resolved prior to the hearing, and adopt
Resolution No. 2018-226 of the Mayor and City Council
of the City of San Bernardino, California, imposing liens
on certain properties for unpaid business registration
taxes and penalties.
QUASI-JUDICIAL HEARING
26. Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to
Municipal Code Section 2.64
Recommendation: Consider all evidence presented at the public hearing
and the information provided in this report and either
grant or deny Pepe’s Towing Services appeal.
27. 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 wi ll
be held on Wednesday, August 15, 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.
Joint Regular Meeting Agenda August 1, 2018
Mayor and City Council of the City of San Bernardino Page 9 Printed 7/27/2018
CERTIFICATION OF POSTING AGENDA
I, Georgeann “Gigi” Hanna, CMC, City Clerk for the City of San Bernardino, California, hereby
certify that the agenda for the August 1, 2018 regular meeting of the Mayor and City Council
and the Mayor and City Council acting as the Successor Agency to the Redevelopm ent 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 Thursday, July 26, 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: August 1, 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 August 1, 2018.
3.a
Packet Pg. 10 Attachment: Waive Reading.Report_August 1 (5664 : Waive Full Reading of Resolutions and Ordinances)
4.a
Packet Pg. 11 Attachment: FN-Commercial Checks Payroll Report Aug 1, 2018 (5665 : City Council Approval of Commercial and Payroll Checks)
2018-2019 Goals and Objectives
Approval of the noted check registers for commercial and payroll checks align with Goal
No. 6: Operate in a Fiscally Responsible and Business-Like Manner. The Mayor and
City Council’s approval of the City’s weekly remittances to third parties promotes
transparency of City business with the public.
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 #1
Attachment 2 – Commercial checks for Register #2
Attachment 3 – Commercial checks for Register #3
Attachment 4 – Payroll checks for July 2018
Ward:
Synopsis of Previous Council Actions:
4.a
Packet Pg. 12 Attachment: FN-Commercial Checks Payroll Report Aug 1, 2018 (5665 : City Council Approval of Commercial and Payroll Checks)
4.bPacket Pg. 13Attachment: FN-Commercial Checks & Payroll. Register #1 (5665 : City Council Approval of Commercial and Payroll Checks)
4.bPacket Pg. 14Attachment: FN-Commercial Checks & Payroll. Register #1 (5665 : City Council Approval of Commercial and Payroll Checks)
4.cPacket Pg. 15Attachment: FN-Commercial Checks Payroll. Register #2 (5665 : City Council Approval of Commercial and Payroll Checks)
4.cPacket Pg. 16Attachment: FN-Commercial Checks Payroll. Register #2 (5665 : City Council Approval of Commercial and Payroll Checks)
4.cPacket Pg. 17Attachment: FN-Commercial Checks Payroll. Register #2 (5665 : City Council Approval of Commercial and Payroll Checks)
4.cPacket Pg. 18Attachment: FN-Commercial Checks Payroll. Register #2 (5665 : City Council Approval of Commercial and Payroll Checks)
4.cPacket Pg. 19Attachment: FN-Commercial Checks Payroll. Register #2 (5665 : City Council Approval of Commercial and Payroll Checks)
4.cPacket Pg. 20Attachment: FN-Commercial Checks Payroll. Register #2 (5665 : City Council Approval of Commercial and Payroll Checks)
4.cPacket Pg. 21Attachment: FN-Commercial Checks Payroll. Register #2 (5665 : City Council Approval of Commercial and Payroll Checks)
4.cPacket Pg. 22Attachment: FN-Commercial Checks Payroll. Register #2 (5665 : City Council Approval of Commercial and Payroll Checks)
4.cPacket Pg. 23Attachment: FN-Commercial Checks Payroll. Register #2 (5665 : City Council Approval of Commercial and Payroll Checks)
4.cPacket Pg. 24Attachment: FN-Commercial Checks Payroll. Register #2 (5665 : City Council Approval of Commercial and Payroll Checks)
4.cPacket Pg. 25Attachment: FN-Commercial Checks Payroll. Register #2 (5665 : City Council Approval of Commercial and Payroll Checks)
4.cPacket Pg. 26Attachment: FN-Commercial Checks Payroll. Register #2 (5665 : City Council Approval of Commercial and Payroll Checks)
4.cPacket Pg. 27Attachment: FN-Commercial Checks Payroll. Register #2 (5665 : City Council Approval of Commercial and Payroll Checks)
4.cPacket Pg. 28Attachment: FN-Commercial Checks Payroll. Register #2 (5665 : City Council Approval of Commercial and Payroll Checks)
4.cPacket Pg. 29Attachment: FN-Commercial Checks Payroll. Register #2 (5665 : City Council Approval of Commercial and Payroll Checks)
4.cPacket Pg. 30Attachment: FN-Commercial Checks Payroll. Register #2 (5665 : City Council Approval of Commercial and Payroll Checks)
4.dPacket Pg. 31Attachment: FN-Commercial Checks Payroll. Register #3 (5665 : City Council Approval of Commercial and Payroll Checks)
4.dPacket Pg. 32Attachment: FN-Commercial Checks Payroll. Register #3 (5665 : City Council Approval of Commercial and Payroll Checks)
4.dPacket Pg. 33Attachment: FN-Commercial Checks Payroll. Register #3 (5665 : City Council Approval of Commercial and Payroll Checks)
4.dPacket Pg. 34Attachment: FN-Commercial Checks Payroll. Register #3 (5665 : City Council Approval of Commercial and Payroll Checks)
4.dPacket Pg. 35Attachment: FN-Commercial Checks Payroll. Register #3 (5665 : City Council Approval of Commercial and Payroll Checks)
4.dPacket Pg. 36Attachment: FN-Commercial Checks Payroll. Register #3 (5665 : City Council Approval of Commercial and Payroll Checks)
4.dPacket Pg. 37Attachment: FN-Commercial Checks Payroll. Register #3 (5665 : City Council Approval of Commercial and Payroll Checks)
4.dPacket Pg. 38Attachment: FN-Commercial Checks Payroll. Register #3 (5665 : City Council Approval of Commercial and Payroll Checks)
4.e
Packet Pg. 39 Attachment: FN-Payroll Summary Reports BW-13 (5665 : City Council Approval of Commercial and Payroll Checks)
4.f
Packet Pg. 40 Attachment: FN-Payroll Summary Reports M (5665 : City Council Approval of Commercial and Payroll Checks)
Consent Calendar
City of San Bernardino
Request for Council Action
\
Date: August 1, 2018
To: Honorable Mayor and City Council Members
From: Gigi Hanna, City Clerk
Subject: Draft Minutes
Recommendation
Approve the minutes of the Mayor and City Council Regular Meeting of July 18, 2018.
5.a
Packet Pg. 41 Attachment: Minutes_August 1 (5666 : City Council Approval of Draft Minutes)
City of San Bernardino
290 North E Street
San Bernardino, CA 92401
http://www.sbcity.org
Mayor and City Council of the City of San Bernardino Page 1 Printed 7/18/2018
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
The Joint Regular Meeting of the Mayor and City Council of the City of San Bernardino
was called to order by Mayor Davis at 4:02 PM, Wednesday, July 18, 2018, in the
Council Chamber, 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 Late 5:00 PM
John Valdivia Council Member, Ward 3 Late 4:12 PM
Fred Shorett Council Member, Ward 4 Present 4:00 PM
Henry Nickel Council Member, Ward 5 Present 4:00 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
Andrea Miller City Manager Present 4:00 PM
Mayor R. Carey Davis
Council Members
Virginia Marquez
Benito J. Barrios
John Valdivia
Fred Shorett
Henry Nickel
Bessine L. Richard
Jim Mulvihill
5.b
Packet Pg. 42 Attachment: 07-18-18_Jt_Reg_gh_draft (5666 : City Council Approval of Draft Minutes)
Joint Regular Meeting Draft Minutes July 18, 2018
Mayor and City Council of the City of San Bernardino Page 2 Printed 7/18/2018
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
People of the State of California, by and through the City Attorney for the City of
San Bernardino, et al. v. Carlie Jo Eaton, et al., San Bernardino County Superior
Court Case No. CIVDS1614663
City of San Bernardino v. Oscar Munoz, et al., San Bernardino County Superior
Court Case No. CIVDS1809982
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
C. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION
Initiation of litigation – Pursuant to Government Code Section 54956.9(d)(4):
City v. Rainbow Investment, Inc.
D. CONFERENCE WITH REAL PROPERTY NEGOTIATORS – Pursuant to
Government Code Section 54956.8:
Property: A portion of the surface parking lot area of the former
Carousel Mall property, generally located between
West 4th Street on the north, North “G” Street on the
west, West 2nd Street on south and North “E” Street
on the east.
(APNs 0134-221-31 & 45)
Negotiators: Andrea Miller, City Manager, and Trans America Auto
Logistics, LLC
Under Negotiation: Price and Terms of Lease
INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation was led by Chaplain Vince Ortega of Victory Outreach in San
Bernardino. The Pledge of Allegiance was led by Meadow Adame, daughter of Water
Department employee Ashleigh Adame.
5.b
Packet Pg. 43 Attachment: 07-18-18_Jt_Reg_gh_draft (5666 : City Council Approval of Draft Minutes)
Joint Regular Meeting Draft Minutes July 18, 2018
Mayor and City Council of the City of San Bernardino Page 3 Printed 7/18/2018
CLOSED SESSION REPORT
Jolena Grider reported the following actions took place in Closed Session:
In re: People of the State of California, by and through the City Attorney for the
City of San Bernardino, et al. v. Carlie Jo Eaton, et al., San Bernardino County
Superior Court Case No. CIVDS1614663, the Council voted 5-0 to give
negotiation settlement direction, with Council Member Barrios absent and
Council Member Valdivia abstaining.
In re: City of San Bernardino v. Oscar Munoz, et al., San Bernardino County
Superior Court Case No. CIVDS1809982, the Council voted 6-0 to give
settlement direction, with Council Member Barrios absent.
In re: City v. Rainbow Investment, Inc., the Council voted 6-0 to give settlement
direction, with Council Member Barrios absent.
APPOINTMENT
A. Elected Official Compensation Commission Appointment
Approved
Motion: Appoint Christina Roman to the Elected Official
Compensation Commission.
RESULT: ADOPTED [UNANIMOUS]
MOVER: Fred Shorett, Council Member, Ward 4
SECONDER: Henry Nickel, Council Member, Ward 5
AYES: Marquez, Barrios, Valdivia, Shorett, Nickel, Richard, Mulvihill
PRESENTATIONS
1. Proclamation in honor of the Santa Fe Depot’s 100th Anniversary
Mayor Davis announced that the Proclamation would be presented at the
anniversary event on Saturday, July 21, 2018.
2. Citizen of the Month – Carlos Tehran by Council Member Bessine Richard
Council Member Richard honored Carlos Tehran for his many years of service in
the community.
3. Special Recognition – 2018-2019 Mr. Cardinal & Court by Mayor R. Carey
Davis: Alfonso Sanchez – Mr. Cardinal; Anthony Valencia - 1st Runner-up;
Omar Santana - 2nd Runner-up; and Bryan Rosales - Mr. Cardinal
Ambassador
Mayor Davis honored Alfonso Sanchez – Mr. Cardinal; Anthony Valencia - 1st
Runner-up; Omar Santana - 2nd Runner-up; and Bryan Rosales - Mr. Cardinal
Ambassador. Darrell Frye, field representative for Assemblywoman Eloise
Reyes’ office also honored the young men, as well as Jamie Rios, who is in
charge of the Mr. and Ms. Cardinal program.
5.b
Packet Pg. 44 Attachment: 07-18-18_Jt_Reg_gh_draft (5666 : City Council Approval of Draft Minutes)
Joint Regular Meeting Draft Minutes July 18, 2018
Mayor and City Council of the City of San Bernardino Page 4 Printed 7/18/2018
4. Chamber of Commerce & Local Elected Officials Announcements
Lesley Stevens gave the announcements for the Chamber of Commerce.
Public Comments for Items Listed and Not Listed on the Agenda
Deanna Adams, San Bernardino, spoke about Stephens and Bobbitt Mortuary being
nominated for the California Register of Historical Resources.
Scott and Melodie Stevenson, representing Teamsters Local 1932, spoke about ways
to recognize public employees for their work.
Ken Owens, spoke about a lien placed on his property and asked who he needs to talk
to work with him on the issue.
Izra Renée and Asia Richmond, San Bernardino, spoke about the need for people of
color to find safe places to speak and said it is awesome that the City is working to
become better.
James Penman, thanked the Mayor and City Manager for the choice of Cota Cole and
Huber law firm for City Attorney services.
Robert Porter, San Bernardino, spoke about cannabis delivery services and asked that
the Mayor fix the situation so that the City can get revenue from it.
Luis Ojeda, San Bernardino, said he is surprised about the number of people who care
about San Bernardino but that it is not showing on the street. He said he had helped
clean up 42 sites, hauling away 21 tons of trash and that there were larger issues in the
City than the choice of federal judge. He said he would be on Evans Streets from 7 a.m.
to 10 a.m.
CONSENT CALENDAR
Council Members Valdivia and Nickel pulled Item 12 so that it could be discussed with
Item 20. The remaining items on the Consent Calendar were voted on as a single item.
RESULT: ADOPTED [UNANIMOUS]
MOVER: Jim Mulvihill, Council Member, Ward 7
SECONDER: John Valdivia, Council Member, Ward 3
AYES: Marquez, Barrios, Valdivia, Shorett, Nickel, Richard, Mulvihill
5. Waive Full Reading of Resolutions and Ordinances
Approved
Motion: Waive full reading of Resolutions and Ordinances on the
agenda dated July 18, 2018.
RESULT: ADOPTED [UNANIMOUS]
MOVER: Jim Mulvihill, Council Member, Ward 7
SECONDER: John Valdivia, Council Member, Ward 3
AYES: Marquez, Barrios, Valdivia, Shorett, Nickel, Richard, Mulvihill
5.b
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Joint Regular Meeting Draft Minutes July 18, 2018
Mayor and City Council of the City of San Bernardino Page 5 Printed 7/18/2018
6. City Council Approval of Commercial and Payroll Checks
Approved
Motion: Approve the commercial and payroll checks for June 2018.
RESULT: ADOPTED [UNANIMOUS]
MOVER: Jim Mulvihill, Council Member, Ward 7
SECONDER: John Valdivia, Council Member, Ward 3
AYES: Marquez, Barrios, Valdivia, Shorett, Nickel, Richard, Mulvihill
7. City Council Approval of Draft Minutes
Approved
Motion: Approve the minutes of the Mayor and City Council Regular
Meeting of June 20, 2018.
RESULT: ADOPTED [UNANIMOUS]
MOVER: Jim Mulvihill, Council Member, Ward 7
SECONDER: John Valdivia, Council Member, Ward 3
AYES: Marquez, Barrios, Valdivia, Shorett, Nickel, Richard, Mulvihill
8. Vendor Services Agreement with Dr. William Soltz, Ph. D., Inc., for Pre -
Employment and Fitness for Duty Psychological Evaluations for Police
Safety Officers
Approved
Motion: Adopt the resolution.
Reso. 2018-197 Resolution of the Mayor and City Council of the City of San
Bernardino, California, authorizing the execution of a Vendor
Services Agreement between Dr. William Soltz, Ph.D., Inc.,
and the City of San Bernardino for pre-employment and
fitness for duty psychological evaluations for police safety
officers.
RESULT: ADOPTED [UNANIMOUS]
MOVER: Jim Mulvihill, Council Member, Ward 7
SECONDER: John Valdivia, Council Member, Ward 3
AYES: Marquez, Barrios, Valdivia, Shorett, Nickel, Richard, Mulvihill
5.b
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Joint Regular Meeting Draft Minutes July 18, 2018
Mayor and City Council of the City of San Bernardino Page 6 Printed 7/18/2018
9. Authorize Issuance of a Purchase Order to BMW Motorcycle s Riverside for
Two Motorcycles
Approved
Motion: Adopt the resolution.
Reso. 2018-198 Resolution of the Mayor and City Council of the City of San
Bernardino, California, authorizing the issuance of a
Purchase Order to BMW Motorcycles of Riverside in an
amount not to exceed $60,000.
RESULT: ADOPTED [UNANIMOUS]
MOVER: Jim Mulvihill, Council Member, Ward 7
SECONDER: John Valdivia, Council Member, Ward 3
AYES: Marquez, Barrios, Valdivia, Shorett, Nickel, Richard, Mulvihill
10. License Agreement with RG-Tippecanoe LLC for a Permanent
Encroachment at 1385 S. Tippecanoe Avenue
Approved
Motion: Adopt the resolution.
Reso. 2018-200 Resolution of the Mayor and City Council of the City of San
Bernardino, California, authorizing the execution of a
License Agreement with RG-Tippecanoe LLC, for the
encroachment of a wrought iron fence at 1385 S.
Tippecanoe Avenue.
RESULT: ADOPTED [UNANIMOUS]
MOVER: Jim Mulvihill, Council Member, Ward 7
SECONDER: John Valdivia, Council Member, Ward 3
AYES: Marquez, Barrios, Valdivia, Shorett, Nickel, Richard, Mulvihill
11. City of San Bernardino, Highway Safety Improvement Program (HSIP) Cycle
9 Grant Application
Approved
Motion: Adopt the resolution.
Reso. 2018-202 Resolution of the Mayor and City Council of the City of San
Bernardino, California, approving a list of projects eligible for
the Highway Safety Improvement Program (HSIP) Cycle 9
grant application; authorizing the execution of the co -
operative agreement with the City of Highland to submit a
combined HSIP application; and authorizing the City
Manager or designee to sign all necessary documents.
5.b
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Joint Regular Meeting Draft Minutes July 18, 2018
Mayor and City Council of the City of San Bernardino Page 7 Printed 7/18/2018
RESULT: ADOPTED [UNANIMOUS]
MOVER: Jim Mulvihill, Council Member, Ward 7
SECONDER: John Valdivia, Council Member, Ward 3
AYES: Marquez, Barrios, Valdivia, Shorett, Nickel, Richard, Mulvihill
12. Award of Construction Contract for ADA Access Ramps & Sidewalk
Improvements at Various Locations to S&H Civil Works
Approved
Motion: Adopt the resolution.
Reso. 2018-203 Resolution of the Mayor and City Council of the City of San
Bernardino, California, approving a construction contract
with S&H Civil Works in the amount of $661,100 and
authorizing a construction contingency in the amount of
$66,100, for a total contract amount of $727,200; authorizing
the Finance Director to amend FY 2018/19 budget to
allocate Measure I Funds to the project; authorizing the City
Manager or designee to sign all necessary documents; and
authorizing the City Manager to expend the contingency
fund, if necessary, to complete the project.
RESULT: ADOPTED [UNANIMOUS]
MOVER: Fred Shorett, Council Member, Ward 3
SECONDER: Jim Mulvihill, Council Member, Ward 7
AYES: Marquez, Barrios, Valdivia, Shorett, Nickel, Richard, Mulvihill
13. License Agreement with AOP Development for a Permanent Encroach ment
at 1895 N. Del Rosa Avenue
Approved
Motion: Adopt the resolution.
Reso. 2018-204 Resolution of the Mayor and City Council of the City of San
Bernardino, California, authorizing the execution of a License
Agreement with AOP Development, LLC for the
encroachment of a wrought iron fence at 1895 N. Del Rosa
Avenue.
RESULT: ADOPTED [UNANIMOUS]
MOVER: Jim Mulvihill, Council Member, Ward 7
SECONDER: John Valdivia, Council Member, Ward 3
AYES: Marquez, Barrios, Valdivia, Shorett, Nickel, Richard, Mulvihill
5.b
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Joint Regular Meeting Draft Minutes July 18, 2018
Mayor and City Council of the City of San Bernardino Page 8 Printed 7/18/2018
14. First Amendment of the Professional Services Agreement with California
Consulting LLC for Grant-Writing Services
Approved
Motion: Adopt the resolution.
Reso. 2018-205 Resolution of the Mayor and City Council of the City of San
Bernardino, California, authorizing the City Manager to
execute a First Amendment to the Professional Services
Agreement for grant-writing services with California
Consulting LLC, increasing the total amount of the
agreement by $31,500 and authorizing the Director of
Finance to increase the Purchase Order for a total amount
not to exceed $94,500.
RESULT: ADOPTED [UNANIMOUS]
MOVER: Jim Mulvihill, Council Member, Ward 7
SECONDER: John Valdivia, Council Member, Ward 3
AYES: Marquez, Barrios, Valdivia, Shorett, Nickel, Richard, Mulvihill
15. Consultant Services Agreement with ProStaff LLC and the City of San
Bernardino
Approved
Motion: Adopt the resolution.
Reso. 2018-206 Resolution of the Mayor and City Council of the City of San
Bernardino, California, authorizing the execution of a
Consultant Services Agreement between ProStaff LLC and
the City of San Bernardino for municipal consulting services
not to exceed $24,000.
RESULT: ADOPTED [UNANIMOUS]
MOVER: Jim Mulvihill, Council Member, Ward 7
SECONDER: John Valdivia, Council Member, Ward 3
AYES: Marquez, Barrios, Valdivia, Shorett, Nickel, Richard, Mulvihill
16. Issuance of Purchase Orders to Renew Annual Software and Hardware
Maintenance Service Agreements for FY 2018-2019
Approved
Motion: Authorize the City Manager or her designee to issue
Purchase Orders for annual software and hardware support
for the Fiscal Year 2018-2019 with Accela Corporation,
CelPlan, Dell/EMC, Earth Science Research Institute (ESRI),
and Konica Minolta.
5.b
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Joint Regular Meeting Draft Minutes July 18, 2018
Mayor and City Council of the City of San Bernardino Page 9 Printed 7/18/2018
RESULT: ADOPTED [UNANIMOUS]
MOVER: Jim Mulvihill, Council Member, Ward 7
SECONDER: John Valdivia, Council Member, Ward 3
AYES: Marquez, Barrios, Valdivia, Shorett, Nickel, Richard, Mulvihill
17. Agreement with New Hope Missionary Baptist Church for the New Hope
Summer Youth Work Program
Approved
Motion: Adopt the resolution.
Reso. 2018-209 Resolution of the Mayor and City Council of the City of San
Bernardino, California, authorizing the City Manager to
execute a Volunteer Services Agreement between the City
of San Bernardino and the New Hope Missionary Baptist
Church for the New Hope Summer Youth Work Program
from June 2018 through July 2021, to commence for one (1)
year with two (2) one-year options.
RESULT: ADOPTED [UNANIMOUS]
MOVER: Jim Mulvihill, Council Member, Ward 7
SECONDER: John Valdivia, Council Member, Ward 3
AYES: Marquez, Barrios, Valdivia, Shorett, Nickel, Richard, Mulvihill
18. First Amendment to the Agreement with Liebert Cassidy Whitmore to
Provide Legal Services Pertaining to Employment Relations and Personnel
Matters
Approved
Motion: Adopt the resolution.
Reso. 2018-210 Resolution of the Mayor and City Council of the City of San
Bernardino, California, authorizing the City Manager to
execute the First Amendment to the agreement between the
City of San Bernardino and Liebert Cassidy Whitmore to
provide legal services pertaining to employment relations
and personnel disciplinary matters and increasing the
purchase order by $150,000 for a total amount not to exceed
$225,000.
RESULT: ADOPTED [UNANIMOUS]
MOVER: Jim Mulvihill, Council Member, Ward 7
SECONDER: John Valdivia, Council Member, Ward 3
AYES: Marquez, Barrios, Valdivia, Shorett, Nickel, Richard, Mulvihill
5.b
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Joint Regular Meeting Draft Minutes July 18, 2018
Mayor and City Council of the City of San Bernardino Page 10 Printed 7/18/2018
19. Property Exchange Agreement Between the City, City Water Department,
City of Riverside, and GSW #4, LLC
Approved
Motion: Adopt the resolution.
Reso. 2018-212 Resolution of the Mayor and City Council of the City of San
Bernardino, California, approving the Property Exchange
Agreement between the City, City Water Department, City of
Riverside, and GSW #4, LLC.
RESULT: ADOPTED [UNANIMOUS]
MOVER: Jim Mulvihill, Council Member, Ward 7
SECONDER: John Valdivia, Council Member, Ward 3
AYES: Marquez, Barrios, Valdivia, Shorett, Nickel, Richard, Mulvihill
Staff Reports
20. Capital Improvement Work Plan for FY 2018/19
Public Works Director Trish Rhey and City Engineer Alex Qishta discussed the
CIP. No vote was taken on this item.
21. Transportation, Communication & Public Works Policy Committee Update –
June 7, 2018
Council Member Nickel gave a report on the June 7, 2018 League of California
Cities Transportation, Communication & Public Works Policy Committee. No vote
was taken on this item.
22. NALEO 35Th Annual Conference Update – June 21-23, 2018
Council Member Barrios gave a report on the NALEO 35Th Annual Conference.
No vote was taken on this item.
23. BIA Housing Policy Conference Update – “The Future of Housing in
California” - June 15, 2018
Council Member Mulvihill gave a report on the June 15, 2018 BIA Housing Policy
Conference. No vote was taken on this item.
24. Housing, Community & Economic Development Policy Committee Update –
June 8, 2018
Council Member Valdivia gave a report on the League of California Cities
Housing, Community & Economic Development Policy Committee. No vote was
taken on this item.
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Mayor and City Council of the City of San Bernardino Page 11 Printed 7/18/2018
25. City of San Bernardino, Mobile Source Air Pollution Reduction Review
Committee (MSRC) Local Government Partnership Program Grant
Application
Approved
Motion: Adopt the resolution.
Reso. 2018-216 Resolution of the Mayor and City Council of the City of San
Bernardino, California, approving a project eligible for Mobile
Source Air Pollution Reduction Review Committee (MSRC)
Local Government Partnership Program grant application;
and authorizing the City Manager or designee to sign all
necessary documents.
RESULT: ADOPTED [UNANIMOUS]
MOVER: John Valdivia, Council Member, Ward 3
SECONDER: Jim Mulvihill, Council Member, Ward 7
AYES: Marquez, Barrios, Valdivia, Shorett, Nickel, Richard, Mulvihill
26. Request for Support
Speakers
Stacey Ramos
Ana Gonzalez
Leticia Chavez
Tim Prince
Ruthee Goldkom
Dorothy Garcia
Shirley Harlan
Michael Townsend on behalf of Senator Connie Leyva
Darrel Frye, on behalf of Assemblywoman Eloise Reyes
Robert Porter
Approved
Motion: Do nothing regarding a support letter.
RESULT: ADOPTED [UNANIMOUS]
MOVER: Fred Shorett, Council Member, Ward 4
SECONDER: Jim Mulvihill, Council Member, Ward 7
AYES: Marquez, Barrios, Valdivia, Shorett, Nickel, Richard, Mulvihill
5.b
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Mayor and City Council of the City of San Bernardino Page 12 Printed 7/18/2018
27. City Policies and Procedures
Approved
Motion: Direct the City Manager to survey other jurisdictions about
how they handle council member violations of codes of
conduct, and investigate their policies about how items are
agendized, how council members get on committees beyond
the dais and represent the city on any committee; and to
discuss options at the upcoming workshop.
RESULT: ADOPTED [5-2]
MOVER: Jim Mulvihill, Council Member, Ward 7
SECONDER: Virginia Marquez, Council Member, Ward 1
AYES: Marquez, Shorett, Nickel, Richard, Mulvihill
NOES: Barrios, Valdivia
Quasi-Judicial Hearing
28. Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to
Municipal Code Section 2.64
Speakers
Ray Hassan Wilson Towing, oppose
Clay Wooster, Tri-City Towing, oppose
Jim Smith, San Bernardino, support
Robert Ring, San Bernardino Police Towers, oppose
Brent Anderson, City Towing, oppose
Michael Armada, Armada Towing, oppose
Mike Hayes, Hayes Towing, oppose
Robert Newman, support
Jim Penman, applicant attorney, support
Misti Lair, oppose
Mayor Davis opened the public hearing and City Clerk Hanna swore in those who
wished to speak on the matter.
Council Member Richard said she had discussions with Pepe’s Towing. She said
she could set those discussions aside, listen to the testimony, and make a fair
decision.
Council Member Nickel said he had numerous discussions about the issue, had
been attacked, intimidated, and threatened over the past four years. He said he
could set those aside, listen to the testimony, and make a fair decision.
Council Member Mulvihill said the Legislative Review Committee had discussed
the issue.
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Council Member Shorett said he had general conversations about the issue with
parties. He said it would not impact how he would vote on the item.
Council Member Valdivia said he’d had interactions and discussions with multiple
carriers in the community, including Pepe’s Towing. He said he could listen to the
testimony and make a fair decision.
Council Member Barrios said he had conversations with the parties. He said he
could listen to the testimony and make a fair decision.
Mayor Davis said he had communications with tow drivers on each side and said
he would be objective and that the communications would not sway any decision
he would make in that regard.
San Bernardino Police Department Captain Paul Williams read a history of the
issue.
Michael Schaefer spoke on behalf of the appellant, Pepe’s Towing, requesting
that the City eliminate the 65,000 square foot requirement and reconsider their
proposal to provide tow services.
Approved
Motion: Continue the item to the next meeting to allow the City
Attorney to review the impacts of a decision.
RESULT: ADOPTED [6-1]
MOVER: John Valdivia, Council Member, Ward 1
SECONDER: Jim Mulvihill, Council Member, Ward 7
AYES: Barrios, Valdivia Shorett, Nickel, Richard, Mulvihill
NOES: Marquez
Public Hearings
29. Solid Waste Account Liens
Mayor Davis opened the public hearing and City Clerk Hanna swore in those who
wished to speak on the matter.
Approved
Motion: Close the public hearing and adopt the Resolution.
Reso. 2018-213 Resolution of the Mayor and City Council of the City of San
Bernardino, California, making determinations and
confirming assessments and proceedings for unpaid solid
waste collection services.
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Mayor and City Council of the City of San Bernardino Page 14 Printed 7/18/2018
RESULT: ADOPTED [UNANIMOUS]
MOVER: John Valdivia, Council Member, Ward 3
SECONDER: Jim Mulvihill, Council Member, Ward 7
AYES: Marquez, Barrios, Valdivia, Shorett, Nickel, Richard, Mulvihill
30. Development Code Amendment (Zoning Map Amendment) 17-09,
Conditional Use Permit 17-29 and Public Convenience or Necessity Letter
18-03
Speakers
Jose Cortez
Angie Grendahl
Approved
Motion: Introduce Ordinance No. MC 1500; Schedule the final
reading of the Ordinance at the regularly scheduled meeting
of the Mayor and City Council on August 1, 2018; and adopt
the resolution.
MC-1500 Ordinance of the Mayor and City Council of the City of San
Bernardino, California, approving Development Code
Amendment (Zoning Map Amendment) 17-09 to change the
Zoning District Classification from Office Industrial Park
(OIP) to Industrial Light (IL) of two (2) parcels (APNs: 0280 -
142-25 and 36) containing a total of approximately 1.4 acres;
Reso. 2018-215 Resolution of the Mayor and City Council of the City of San
Bernardino, California, adopting the Categorical Exemption,
and approving Conditional Use Permit 17-29 and Public
Convenience or Necessity Letter 18-03 to allow the
development of a service station and convenience store with
an Alcoholic Beverage Control Type-20 (Off-Sale Beer &
Wine) License on two (2) parcels containing a total of
approximately 1.4 acres located at 1195 S. Waterman
Avenue (APNs: 0280-142-25 and 36) within the Industrial
Light (IL) Zone (Attachment 2).
RESULT: ADOPTED [UNANIMOUS]
MOVER: John Valdivia, Council Member, Ward 3
SECONDER: Henry Nickel, Council Member, Ward 5
AYES: Marquez, Barrios, Valdivia, Shorett, Nickel, Richard, Mulvihill
5.b
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Mayor and City Council of the City of San Bernardino Page 15 Printed 7/18/2018
31. Adjournment
The meeting adjourned at 9:53 p.m.
The next joint regular meeting of the Mayor and City Council is scheduled for 4:00
p.m., Wednesday, August 1, 2018, in the Council Chamber, 201 North “E” Street,
San Bernardino, California.
By: __________________________
Georgeann “Gigi” Hanna, CMC
City Clerk
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Packet Pg. 57 Attachment: CM.Trans America Auto Logistics LLC Lease Staff Report (5667 : Commercial Lease with Trans America Auto Logistics, LLC for a
shall govern, and supersede all other provisions relating to, the disposition and use of
all the real property assets of the former redevelopment agency.
The LRPMP includes 230 parcels of land grouped into forty-six (46) separate sites,
seven (7) of which are designated for future development use by the City, which
includes the former “Carousel Mall Site”, which is designated as Site No. 20. In its letter
dated May 17, 2016, the DOF directed the Successor Agency to transfer all of its
LRPMP-designated future development use sites to the City. On August 1, 2016, the
City Council approved its Resolution No. 2016 -165, which authorized the City to accept
title to the seven (7) future development-designated real property sites specified within
the LRPMP, subject to the City implementing the provisions of the LRPMP with respect
to such properties. On August 16, 2016, the Successor Agency transferred the seven
(7) future development-designated real property sites specified within the LRPMP to the
City at no cost via quitclaim deed.
Discussion
Staff has estimated that as much as two more years of predevelopment planning and
site preparation work is a prerequisite to the ultimate demolition and reuse of the former
Carousel Mall site. During this interim planning and preparation period, the City is
incurring certain costs to keep the former Carousel Mall Site safe and clean.
On February 21, 2018, the City received a proposal from Daum Commercial Real
Estate Services, on behalf of its client Trans America Auto Logistics, LLC, a Rancho
Cucamonga-based entity managed by Mr. Michael Schaefer, to lease a portion of the
surface parking area on the western side of the former Carousel Mall for a short-term
period for the delivery, inspection, storage and shipping of new automobiles. Staff has
subsequently negotiated the attached 19-month Commercial Lease (the “Commercial
Lease”) with Trans America Auto Logistics, LLC that includes two (2) six-month
extensions at a monthly rental rate of $40,541 for a total of $729,738 for 18 months or
$1,216,230 if the two extensions are applied. During the month of August 2018, Trans
America will have access the site without a rental charge to install or construct certain
improvements required for its business operations that are described within the
Commercial Lease; the 18-month rental period will begin during September 2018.
Section 1.3 (Term) of the lease provides that the City may cancel with six months’
notice to the Lessee; however, the lessee shall be entitled to the 18 months due to the
initial investment required on the premises.
Adoption of the attached Resolution will approve a Commercial Lease with Trans
America Auto Logistics, LLC, a copy of which is included as Exhibit “A” to th e
Resolution, for an approximately 15.4-acre portion of the western side of the surface
parking area and the former JC Penney tire, battery and accessory building of the
former Carousel Mall Site and authorize certain related actions.
The attached Resolution has been reviewed with respect to applicability of the California
Environmental Quality Act (the “CEQA”), the State CEQA Guidelines (California Code of
Regulations, Title 14, § 15000 et seq., hereafter the “CEQA Guidelines”), and the City’s
6.a
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environmental guidelines. The Resolution does not constitute a “project” for purposes
of CEQA, as that term is defined by CEQA Guidelines § 15378, because the Resolution
is an organizational or administrative activity that will not result in a direct or indir ect
physical change in the environment, per § 15378 (b) (5) of the CEQA Guidelines.
2018-2019 Goals and Objectives
Approval of the lease with Trans America Auto Logistics, LLC is consistent with Goal
No. 3: Create, Maintain and Grow Jobs and Economic Value in the City and Goal No. 4:
Ensure Development of a Well-Planned, Balanced, and Sustainable City. The activity
involves the winding-down of the former redevelopment agency, which will result in the
transfer of real property assets to third parties to pla ce them into highest and best
economic uses, consistent with the City’s General Plan and Zoning Ordinance, that will
create economic activities, create job opportunities, remove blight, improve
neighborhoods, create affordable housing and increase tax-ratables.
Fiscal Impact
During the initial 18-month rental period of the Commercial Lease, the monthly rental
rate will be $40,541, which in total will generate $729,738 or $1,216,230 if the two
extensions are applied. If the lease is approved; i) it is intended that the rental income
received will be held in trust to cover expenses related to the reuse for the former
Carousel Mall Site; and ii) it will not interrupt the City’s predevelopment planning and
site preparation work that is prerequisite to the ultimate demolition and reuse of the
former Carousel Mall Site.
Conclusion
Based on the foregoing, staff recommends th at the that the Mayor and City Council,
adopt the attached Resolution approving a Commercial Lease with Trans America Auto
Logistics, LLC for an approximately 14.5-acre portion of the western side of the surface
parking area and the former JC Penney tire, battery and accessory building of the
former Carousel Mall Site and authorize certain related actions.
Attachment
Resolution No. 2018-211; Exhibit A - Commercial Lease
Ward: 1
Synopsis of Previous Council Actions:
October 1, 2016: On August 1, 2016, the City Council approved its Resolution No.
2016-165, which authorized the City to accept title to the seven (7)
future development-designated real property sites specified within the
LRPMP, including the former Carousel Mall Site.
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RESOLUTION NO. 2018-211
RESOLUTION OF MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO APPROVING A COMMERCIAL LEASE WITH TRANS
AMERICA AUTO LOGISTICS, LLC FOR AN APPROXIMATELY 14.5-
ACRE PORTION OF THE WESTERN SIDE OF THE SURFACE PARKING
AREA AND THE FORMER JC PENNEY TIRE, BATTERY AND
ACCESSORY BUILDING OF THE FORMER CAROUSEL MALL SITE AND
AUTHORIZE CERTAIN RELATED ACTIONS
WHEREAS, pursuant to Health and Safety Code (the “HSC”) § 34172 (a) (1), the
Redevelopment Agency of the City of San Bernardino was dissolved on February 1, 2012; and
WHEREAS, consistent with the provisions of the HSC, the Mayor and City Council of the
City of San Bernardino previously elected to serve in the capacity of the Successor Agency to the
Redevelopment Agency of the City of San Bernardino (the “Successor Agency”); and
WHEREAS, the Oversight Board to the Successor Agency (the “Oversight Board”) has
been established pursuant to HSC § 34179 to assist in the wind-down of the dissolved
redevelopment agency; and
WHEREAS, on December 22, 2015, the Successor Agency received its Finding of
Completion (the “FOC”) from the California Department of Finance (the "DOF") pursuant to HSC
§ 34179.7; and
WHEREAS, after receiving an FOC, HSC § 34191.5 requires the Successor Agency to
prepare a Long-Range Property Management Plan (the “LRPMP”) to address the disposition and
use of the real property assets held by the Successor Agency; and
WHEREAS, pursuant to HSC § 34191.5 (c), the Successor Agency prepared and filed with
the DOF its Oversight Board-approved Long-Range Property Management Plan; and
WHEREAS, in its December 31, 2015 letter, the DOF formally approved the Successor
Agency’s LRPMP and notified the Successor Agency that pursuant to HSC § 34191.3, the approved
LRPMP shall govern, and supersede all other provisions relating to, the disposition and use of all
the real property assets of the former redevelopment agency; and
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WHEREAS, the LRPMP includes 230 parcels of land grouped into forty-six (46) separate
sites, seven (7) of which are designated for future development use by the City, which includes the
former “Carousel Mall Site”, which is designated as Site No. 20; and
WHEREAS, in its letter dated May 17, 2016, the DOF directed the Successor Agency to
transfer all of its LRPMP-designated future development use sites to the City; and
WHEREAS, on August 1, 2016, the City Council approved its Resolution No. 2016-165,
which authorized the City to accept title to the seven (7) future development -designated real
property sites specified within the LRPMP, subject to the City implementing the provisions of the
LRPMP with respect to such properties; and
WHEREAS, on August 16, 2016, the Successor Agency transferred the seven (7) future
development-designated real property sites specified within the LRPMP to the City at no cost via
quitclaim deed; and
WHEREAS, staff has estimated that as much two more years of predevelopment planning
and site preparation work is prerequisite to the ultimate demolition and reuse of the former Carousel
Mall Site; and
WHEREAS, during this interim planning and preparation period, the City in incurring
certain costs to keep the former Carousel Mall Site safe and clean; and
WHEREAS, on February 21, 2018, the City received a proposal from Daum Commercial
Real Estate Services, on behalf of its client Trans America Auto Logistics, LLC, a Rancho
Cucamonga-based entity managed by Mr. Michael Schaefer, to lease a portion of the surface
parking area on the western side of the former Carousel Mall Site for a short-term period for the
delivery, storage, preparation and shipping of new automobiles; and
WHEREAS, staff has subsequently negotiated the attached 19-month Commercial Lease
(the “Commercial Lease”) with Trans America Auto Logistics, LLC that includes two (2) six -month
extensions at a monthly rental rate of $40,541 for a total of $729,738 for 18 months; and
WHEREAS, during the month of August 2018, Trans America will have access the site
without a rental charge to install or construct certain improvements required for its business
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operations that are described within the Commercial Lease; the 18-month rental period will begin
during September 2018; and
WHEREAS, if the lease is approved; i) it is intended that the rental income received will
be held in trust to cover expenses related to the reuse for the former Carousel Mall Site; and ii) it
will not interrupt the City’s predevelopment planning and site preparation work that is prerequisite
to the ultimate demolition and reuse of the former Carousel Mall Site; and
WHEREAS, adoption of this Resolution will approve a Commercial Lease with Trans
America Auto Logistics, LLC, a copy of which is included as Exhibit “A” to this Resolution, for an
approximately 14.5-acre portion of the western side of the surface parking area of the former
Carousel Mall Site and authorize certain related actions; and
WHEREAS, this Resolution has been reviewed with respect to applicability of the
California Environmental Quality Act (the “CEQA”), the State CEQA Guidelines (California Code
of Regulations, Title 14, § 15000 et seq., hereafter the “CEQA Guidelines”), and the City’s
environmental guidelines; and
WHEREAS, this Resolution does not constitute a “project” for purposes of CEQA, as that
term is defined by CEQA Guidelines § 15378, because this Resolution is an organizational or
administrative activity that will not result in a direct or indirect physical change in the environment,
per § 15378 (b) (5) of the CEQA Guidelines; and
WHEREAS, all of the prerequisites with respect to the approval of this Resolut ion have
been met.
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO, AS FOLLOWS:
Section 1. The foregoing recitals are true and correct and are a substantive part of this
Resolution.
Section 2. The Commercial Lease with Trans America Auto Logistics, LLC for a
portion of the former Carousel Mall Site, attached hereto as Exhibit “A”, is
approved.
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Section 3. The City Manager, or designee, is authorized and directed to execute the
Lease, in the form of which is attached to this Resolution, and to take such
other actions and execute such other documents as are necessary to effectuate
the Lease and as may otherwise be required to fulfill the intent of this
Resolution.
Section 4. This Resolution is not a “project” for purposes of CEQA, as that term is
defined by Guidelines § 15378, because this Resolution is an organizational
or administrative activity that will not result in a direct or indirect physical
change in the environment, per § 15378 (b) (5) of the Guidelines.
Section 5. This resolution shall take effect upon its adoption and execution in the
manner as required by the City’s Municipal Code.
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/ / /
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RESOLUTION OF MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO APPROVING A COMMERCIAL LEASE WITH TRANS
AMERICA AUTO LOGISTICS, LLC FOR AN APPROXIMATELY 14.5-
ACRE PORTION OF THE WESTERN SIDE OF THE SURFACE PARKING
AREA AND THE FORMER JC PENNEY TIRE, BATTERY AND
ACCESSORY BUILDING OF THE FORMER CAROUSEL MALL SITE AND
AUTHORIZE CERTAIN RELATED ACTIONS
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, General Counsel
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By:
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EXHIBIT “A”
Commercial Lease
With
Trans America Auto Logistics, LLC
(See Attachment)
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EXHIBIT A
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COMMERCIAL LEASE
1. Basic Provisions ("Basic Provisions").
1.1 Parties: This Lease ("Lease"), dated for reference purposes only August 1, 2018, is made by and between the City of San
Bernardino ("Lessor") and Trans America Auto Logistics, LLC ("Lessee"), (collectively the "Parties," or individually a "Party").
1.2 Premises: That certain real property, including all improvements therein or to be provided by Lessor under the terms of this Lease,
commonly known as approximately 15.4 acres (670,824 sq. ft.) of parking lot on the western side of the Carousel Mall, located in the County of San
Bernardino, State of California, Carousel Mall including a 15,072 building (the “Building”) as shown on the map attached hereto as Exhibit A and
incorporated herein ("Premises"). (See also, Paragraph 2)
1.3 Term: 19 months ("Original Term") commencing August 2, 2018 ("Commencement Date") and ending February 2, 2020
("Expiration Date"), with two (2) six (6) month extensions (“Extended Term”) but cancellable by Lessor with six months' notice during the Extended
Term. If the Original Term is extended the date of expiration is referred to herein as the “Expiration Date, as Extended.” (See also, Paragraph 2.)
Notwithstanding the foregoing, Lessee, subject to otherwise complying with all other requirements of the Lease, shall have access to the Premises
without rent for the period of August 2, 2018 through September 1, 2018 for the purposes of preparing the Premises for the Agreed Use (See also
Section 1.6) including, but not limited to, the installation of the perimeter fencing and gates, maintenance and/or repairs to the pavement and
appurtenant hard-scape and improvements/repairs to the Building needed to conduct the Agreed Use (the “Premises Preparation Period”) or to cause
any other related improvement agreed to by the Parties. Prior to conducting any such work on the Premises, Lessee shall seek Lessor’s authorization
and/or permit through the Lessor’s City Manager, or designee.
1.4 Base Rent: $40,541.20 per month ("Base Rent"), payable on the 2nd business day of each month commencing August 2, 2018.
(See also Paragraph 4). However, the obligation to pay rent will not be applicable during Premises Preparation Period.
1.5 Base Rent and Other Monies Paid Upon Execution:
(a) Base Rent: $40,541.20 for the first month.
(b) Security Deposit: $40,541.20 ("Security Deposit"). (See also Paragraph 5)
(c) Total Due Upon Execution of this Lease: $81,082.40.
1.6 Agreed Use: Delivery, inspection, storage and distribution of new automobiles. The Premises will be used as an Inland Empire
hub for the distribution of new motor vehicles. The Building will only be used to check in newly arriving vehicles t o verify each unit, confirm any damage,
and confirm that the vehicles are complete (i.e., no missing parts). Once checked -in, the vehicles will be stored on site until they are shipped to the
intended retailer. The Lessee may not use any of Lessor’s property that is adjacent to the Premises, or any public street or right-of-way for any of it
business operations, with the only exception of incidental access for delivery and shipping of automobiles. Specifically, the staging, loading and
unloading of any trucks or similar vehicles used to deliver and/or ship automobiles to and from the Premises associated with Lessee’s business
operations shall only occur within the boundaries of the Premises. Lessee’s failure to conform with the herein defined Agreed Use limitations shall be
considered a Default under this Lease. (See also Paragraph 6)
1.7 Real Estate Brokers: (See also Paragraph 15 and 25)
(a) Representation: Daum Commercial Real Estate Services, 3595 E. Inland Empire Building, Building 5, Ontario, CA
91764 represents Lessee exclusively (“Lessee’s Broker”). Lessee is solely responsible for brokers and/or finders, if any, claiming through it including
without limitation, Lessee’s Broker (collectively, the “Broker(s)”).
(b) Payment to Brokers: Upon execution and delivery of this Lease by both Parties, Lessee shall pay to Lessee’s Broker
the brokerage fee agreed to in a separate written agreement to which Lessor is not a party.
1.8 Attachments. Attached hereto are the following which constitute a part of this Lease:
(a) A map depicting Premises.
(b) Details of the fencing required to be installed around the Premises.
2. Premises.
2.1 Letting. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the Premises, for the term, at the rental, and
upon all of the terms, covenants and conditions set forth in this Lease. While the approximate square footage of the Premises may have been used in
the marketing of the Premises for purposes of comparison, the Base Rent stated herein is NOT tied to square footage and is no t subject to adjustment
should the actual size be determined to be different.
2.2 Condition. Lessor shall deliver the Premises to Lessee, “as is” on the Commencement Date. Lessor does not warrant or represent
and specifically disclaims any such representation or warranty with respect to the condition or suitability of the Premises for the Agreed Uses with
respect to the following: i) the parking lot pavement, the improvements that are appurtenant to the parking lot including, without any limitation, curb,
gutter, sidewalks, planter boxes or areas, and landscaping; ii) the Building, including without limitation, electrical, plumbing, fire sprinklers, lighting,
heating, ventilating and air conditioning systems ("HVAC"), loading doors, sump pumps, the surface and structural elements of the roof, bearing walls
and foundation; iii) the presence or absence of Hazardous Substances; iv) compliance with the building codes, applicable laws, covenants or restrictions
of record, regulations, and ordinances that were in effect at the time that the improvements, building and improvements were constructed or as of the
date hereof, and v) compliance with the Americans with Disabilities Act or any similar laws.
2.3 Acknowledgements. Lessee acknowledges that: (a) it has been given an opportunity to inspect and measure the Premises, (b) it
has been advised by Lessor and/or Brokers to satisfy itself with respect to the size and condition of the Premises (including but not limited to the
electrical, HVAC and fire sprinkler systems, security, environmental aspects, and compliance with applicable laws and the Americans with Disabilities
Act), and its suitability for Lessee's intended use, (c) Lessee has made such investigation as it deems necessary with reference to such matters and
assumes all responsibility therefor as the same relate to its occupancy of the Premises, (d ) it is not relying on any representation as to the size of the
Premises made by Brokers or Lessor, (e) the square footage of the Premises was not material to Lessee's decision to lease the Premises and pay the
Rent stated herein, and (f) neither Lessor, Lessor's agents, nor Brokers have made any oral or written representations or warranties with respect to said
matters other than as set forth in this Lease.
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3. Term.
3.1 Term. The Commencement Date, Premises Preparation Period, Expiration Date, as Extended, Expiration Date, Original Term, and
Extended Term of this Lease are as specified in Paragraph 1.3.
3.2 Delay In Possession. Lessor agrees to use its best commercially reasonable efforts to deliver possession of the Premises to
Lessee as of the Commencement Date. If, despite said efforts, Lessor is unable to deliver possession by such date, Lessor shall not be subject to any
liability therefor, nor shall such failure affect the validity of this Lease or change the Expiration Date . Lessee shall not, however, be obligated to pay Rent
or perform its other obligations until Lessor delivers possession of the Premises and any period of rent abatement that Lessee would othe rwise have
enjoyed shall run from the date of delivery of possession and continue for a period equal to what Lessee would otherwise have enjoyed under the terms
hereof, but minus any days of delay caused by the acts or omissions of Lessee. If possession is not delivered within 60 days after the Commencement
Date, either party may, at such party’s option, by notice in writing within 10 days after the end of such 60-day period, cancel this Lease, in which event
the Parties shall be discharged from all obligations hereunder. If such written notice is not received by the party within said 10-day period, the party’s
right to cancel shall terminate. If possession of the Premises is not delivered within 120 days after the Commencement Date, this Lease shall terminate
unless other agreements are reached between Lessor and Lessee, in writing.
3.3 Lessee Compliance. Lessor shall not be required to tender possession of the Premises to Lessee until Lessee complies with its
obligation to provide evidence of insurance (Paragraph 8.5). Pending delivery of such evidence, Lessee shall be required to perform all of its obligations
under this Lease from and after the Commencement Date, including the payment of Rent, notwithstanding Lessor's election to withhold possession
pending receipt of such evidence of insurance.
4. Rent.
4.1 Rent Defined. All monetary obligations of Lessee to Lessor under the terms of th is Lease (except for the Security Deposit unless
applied as rent) are deemed to be rent ("Rent").
4.2 Payment. Lessee shall cause payment of Rent to be received by Lessor in lawful money of the United States, without offset or
deduction (except as specifically permitted in this Lease), on or before the day on which it is due. All monetary amounts shall be rounded to the nearest
whole dollar. In the event that any invoice prepared by Lessor is inaccurate such inaccuracy shall not constitute a waiver and Lesse e shall be obligated
to pay the amount set forth in this Lease. Rent for any period during the term hereof which is for less than one full calendar month shall be prorated
based upon the actual number of days of said month. Payment of Rent shall be made to Lessor at its address stated herein or to such other persons or
place as Lessor may from time to time designate in writing. Acceptance of a payment which is less than the amount then due shall not be a waiver of
Lessor's rights to the balance of such Rent, regardless of Lessor's endorsement of any check so stating. In the event that any check, draft, or other
instrument of payment given by Lessee to Lessor is dishonored for any reason, then Lessee agrees to pay to Lessor the sum of $250 in addition to any
Late Charge and Lessor, at its option, may require all future payments to be made by Lessee to be by cashier's check. Payments will be applied first to
accrued late charges and attorney's fees, second to accrued interest, then to Base Rent, Insurance and Real Property Taxes, and any remaining
amount to any other outstanding charges or costs.
5. Security Deposit. Lessee shall deposit with Lessor upon execution hereof the Security Deposit as security for Lessee 's faithful performance
of its obligations under this Lease. If Lessee fails to pay Rent, or otherwise Defaults under this Lease, Lessor may use, apply or retain all or any portion
of said Security Deposit for the payment of any amount already due Lessor, for Rents which will be due in the future, and/ or to reimburse or
compensate Lessor for any liability, expense, loss or damage which Lessor may suffer or incur by reason thereof . If Lessor uses or applies all or any
portion of the Security Deposit, Lessee shall within 10 days after written request therefor deposit monies with Lessor sufficient to restore said Security
Deposit to the full amount required by this Lease. If a change in control of Lessee occurs during this Lease and following such change the financial
condition of Lessee is, in Lessor's reasonable judgment, significantly reduced, Lessee shall deposit such additional monies with Lessor as shall be
sufficient to cause the Security Deposit to be at a commercially reasonable level based on such change in financial condition . Lessor shall not be
required to keep the Security Deposit separate from its general accounts . Within 90 days after the expiration or termination of this Lease, Lessor shall
return that portion of the Security Deposit not used or applied by Lessor. Lessor shall upon written request provide Lessee with an accounting showing
how that portion of the Security Deposit that was not returned was applied . No part of the Security Deposit shall be considered to be held in trust, to
bear interest or to be prepayment for any monies to be paid by Lessee under this Lease. THE SECURITY DEPOSIT SHALL NOT BE USED BY
LESSEE IN LIEU OF PAYMENT OF THE LAST MONTH'S RENT.
6. Use.
6.1 Use. Lessee shall use and occupy the Premises only for the Agreed Use and for no other purpose. Lessee shall not use or permit
the use of the Premises in a manner that is unlawful, creates damage, waste or a nuisance, or that disturbs occupants of or c auses damage to
neighboring premises or properties.
6.2 Hazardous Substances.
(a) Reportable Uses Require Consent. The term "Hazardous Substance" as used in this Lease shall mean any product,
substance, or waste whose presence, use, manufacture, disposal, transportation, or release, either by itself or in combinatio n with other materials
expected to be on the Premises, is either: (i) potentially injurious to the public health, safety or welfare, the environment or the Premises, (ii) regulated or
monitored by any governmental authority, or (iii) a basis for potential liability of Lessor to any governmental agency or third party under any applicable
statute or common law theory. Hazardous Substances shall include, but not be limited to, hydrocarbons, petroleum, gasoline, and/or crude oil or any
products, by-products or fractions thereof. Lessee shall not engage in any activity in or on the Premises which constitutes a Reportable Use of
Hazardous Substances without the express prior written consent of Lessor and timely compliance (at Lessee's expense) with all applicable laws.
"Reportable Use" shall mean (i) the installation or use of any above or below ground storage tank, (ii) the generation, possession, storage, use,
transportation, or disposal of a Hazardous Substance that requires a permit from, or with respect to which a report, notice, registration or business plan
is required to be filed with, any governmental authority, and/or (iii) the presence at the Premises of a Hazardous Substance with respect to which any
applicable laws require that a notice be given to persons entering or occupying the Premises or neighboring properties. Notwithstanding the foregoing,
Lessee may use any ordinary and customary materials reasonably required to be used in the normal course of the Agreed Use, or dinary office supplies
(copier toner, liquid paper, glue, etc.) and common household cleaning materials, so long as such use is in compliance with all applicable laws, is not a
Reportable Use, and does not expose the Premises or neighboring property to any meaningful risk of contamination or damage or expose Lessor to any
liability therefor. In addition, Lessor may condition its consent to any Reportable Use upon receiving such additional assurances as Lessor reaso nably
deems necessary to protect itself, the public, the Premises and/or the environment against damage, contaminati on, injury and/or liability, including, but
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not limited to, the installation (and removal on or before Lease expiration or termination) of protective modifications (such as concrete encasements)
and/or increasing the Security Deposit.
(b) Duty to Inform Lessor. If Lessee knows, or has reasonable cause to believe, that a Hazardous Substance has come to
be located in, on, under or about the Premises, other than as previously consented to by Lessor, Lessee shall immediately giv e written notice of such
fact to Lessor, and provide Lessor with a copy of any report, notice, claim or other documentation which it has concerning the presence of such
Hazardous Substance.
(c) Lessee Remediation. Lessee shall not cause or permit any Hazardous Substance to be spilled or released in, on, under,
or about the Premises (including through the plumbing or sanitary sewer system) and shall promptly, at Lessee 's expense, comply with all applicable
laws and take all investigatory and/or remedial action reasonably recommended, whether or n ot formally ordered or required, for the cleanup of any
contamination of, and for the maintenance, security and/or monitoring of the Premises or neighboring properties, that was cau sed or materially
contributed to by Lessee, or pertaining to or involving any Hazardous Substance brought onto the Premises during the term of this Lease, by or for
Lessee, or any third party.
(d) Lessee Indemnification. Lessee shall indemnify, defend and hold Lessor, its agents, employees, lenders and ground
lessor, if any, harmless from and against any and all loss of rents and/or damages, liabilities, judgments, claims, expenses, penalties, and attorneys' and
consultants' fees arising out of or involving any Hazardous Substance brought onto the Premises by or for Lessee, or any th ird party (provided, however,
that Lessee shall have no liability under this Lease with respect to underground migration of any Hazardous Substance under t he Premises from
adjacent properties not caused or contributed to by Lessee). Lessee's obligations shall include, but not be limited to, the effects of any contamination or
injury to person, property or the environment created or suffered by Lessee, and the cost of investigation, removal, remediat ion, restoration and/or
abatement, and shall survive the expiration or termination of this Lease. No termination, cancellation or release agreement entered into by Lessor
and Lessee shall release Lessee from its obligations under this Lease with respect to Hazardous Substances, unless specifical ly so agreed
by Lessor in writing at the time of such agreement.
(e) Lessor Indemnification. Except as otherwise provided in paragraph 8.7, Lessor and its successors and assigns shall
indemnify, defend, reimburse and hold Lessee, its employees and lenders, harmless from and a gainst any and all environmental damages, including the
cost of remediation, which result from Hazardous Substances which existed on the Premises prior to Lessee's occupancy or which are caused by the
gross negligence or willful misconduct of Lessor, its agents or employees. Lessor's obligations, as and when required by applicable laws, shall include,
but not be limited to, the cost of investigation, removal, remediation, restoration and/or abatement, and shall survive the e xpiration or termination of this
Lease.
(f) Investigations and Remediations. Lessor shall retain the responsibility and pay for any investigations or remediation
measures required by governmental entities having jurisdiction with respect to the existence of Hazardous Substances on the Premises prior to Lessee's
occupancy, unless such remediation measure is required as a result of Lessee's use (including "Alterations", as defined in paragraph 7.3(a) below) of
the Premises, in which event Lessee shall be responsible for such payment. In addition to and more specifically, Lessor anticipates that Phase I and
possible Phase II Environmental Sites Assessments will be conducted by Lessor’s agents during the Term of this Lease. Lessee shall cooperate fully in
any such activities at the request of Lessor, including allowing Lessor and Lessor's agents to have reasonable access to the Premises at reasonable
times in order to carry out Lessor's investigative and remedial responsibilities.
(g) Lessor Termination Option. If a Hazardous Substance Condition (see Paragraph 9.1(e)) occurs during the term of this
Lease, unless Lessee is legally responsible therefor (in which case Lessee shall make the investigation and remediation there of required by the
applicable laws and this Lease shall continue in full force and effect, but subject to Lessor's rights under Paragraph 6.2(d) and Paragraph 13), Lessor
may, at Lessor's option, either (i) investigate and remediate such Hazardous Substance Condition, if required, as soon as reasonably possible at
Lessor's expense, in which event this Lease shall continue in full force and effect, or (ii) if the estimated cost to remediate such condition exceeds
$100,000, give written notice to Lessee, within 30 days after receipt by Lessor of knowledge of the occurrence of su ch Hazardous Substance Condition,
of Lessor's desire to terminate this Lease as of the date 60 days following the date of such notice. In the event Lessor elects to give a termination
notice, Lessee may, within 10 days thereafter, give written notice to Lessor of Lessee's commitment to pay the amount by which the cost of the
remediation of such Hazardous Substance Condition exceeds $100,000. Lessee shall provide Lessor with said funds or satisfactory assurance thereof
within 30 days following such commitm ent. In such event, this Lease shall continue in full force and effect, and Lessor shall proceed to make such
remediation as soon as reasonably possible after the required funds are available. If Lessee does not give such notice and provide the required funds or
assurance thereof within the time provided, this Lease shall terminate as of the date specified in Lessor's notice of termination.
6.3 Lessee's Compliance with Applicable Laws. Lessee shall, at Lessee's sole expense, fully, diligently and in a timely manner,
materially comply with all applicable laws, the requirements of any applicable fire insurance underwriter or rating bureau, and the recommendations of
Lessor's engineers and/or consultants which relate in any manner to the Premises, without regard to whether said applicable laws are now in effect or
become effective after the Commencement Date. Lessee shall, within 10 days after receipt of Lessor’s written request, provide Lessor with copies of all
permits and other documents, and other information evidencing Lessee's compliance with any applicable laws specified by Lessor, and shall
immediately upon receipt, notify Lessor in writing (with copies of any documents involved) of any threatened or actual claim, notice, citation, warning,
complaint or report pertaining to or involving the failure of Lessee or the Premises to comply with any applicable laws. Likewise, Lessee shall
immediately give written notice to Lessor of: (i) any water damage to the Premises and any suspected seepage, pooling, dampness or other condition
conducive to the production of mold; or (ii) any mustiness or other odors that might indicate the presence of mold in the Premises. In addition, Lessee
shall provide Lessor with copies of its business license, certificate of occupancy and/or any similar document within 10 days of the receipt of a written
request therefor.
6.4 Inspection; Compliance. Lessor and Lessor’s "Lender" (as defined in Paragraph 30) and consultants authorized by Lessor shall
have the right to enter into Premises at any time, in the case of an emergency, and otherwise at reasonable times after reasonable notice, for the
purpose of inspecting and/or testing the condition of the Premises and/or for verifying compliance by Lessee with this Lease . The cost of any such
inspections shall be paid by Lessor, unless a violation of applicable laws, or a Hazardous Substance Condition (see paragraph 9.1) is found to exist or
be imminent, or the inspection is requested or ordered by a governmental authority. In such case, Lessee shall upon request reimburse Lessor for the
cost of such inspection, so long as such inspection is reasonably related to the violation or contamination . In addition, Lessee shall provide copies of all
relevant material safety data sheets (MSDS) to Lessor within 10 days of the receipt of a written request therefor. Lessee acknowledges that any failure
on its part to allow such inspections or testing will expose Lessor to risks and potentially cause Lessor to incur costs not contemplated by this Lease, the
extent of which will be extremely difficult to ascertain. Accordingly, should the Lessee fail to allow such inspections and/or testing in a timely fashion the
Base Rent shall be automatically increased, without any requirement for notice to Lessee, by an amount equal to 10% of the then existing Base Rent for
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the remainder to the Lease. The Parties agree that such increase in Base Rent represents fair and reasonable compensation for the additional
risk/costs that Lessor will incur by reason of Lessee's failure to allow such inspection and/or testing. Such increase in Base Rent shall in no event
constitute a waiver of Lessee's Default or Breach with respect to such failure nor prevent the exercise of any of the other rights and remedies granted
hereunder.
7. Maintenance; Repairs, Utility Installations; Trade Fixtures and Alterations.
7.1 Lessee's Obligations.
(a) In General. Subject to the provisions of Paragraph 2.2 (Condition), 2.3 (Compliance), 6.3 (Lessee's Compliance with
Applicable Laws), 7.2 (Lessor's Obligations), 9 (Damage or Destruction), and 14 (Condemnation), Lessee shall, at Lessee's sole expense, keep the
Premises, Utility Installations (intended for Lessee's exclusive use, no matter where located), lighting, and Alterations in good order, condition and repair
(whether or not the portion of the Premises requiring repairs, or the means of repairing the same, are reasonably or readily accessible to Lessee, and
whether or not the need for such repairs occurs as a result of Lessee 's use, any prior use, the elements or the age of such portion of the Premises),
including, but not limited to, landscaping, driveways, parking lots, fences, retaining walls, signs, sidewalks and parkways l ocated in, on, or adjacent to
the Premises. Lessee is also responsible for keeping the roof and roof drainage clean and free of debris. Lessor shall keep the surface and structural
elements of the roof, foundations, and bearing walls in good repair (see paragraph 7.2). Lessee, in keeping the Premises in good order, condition and
repair, shall exercise and perform good maintenance practices, specifically including the procurement and maintenance of the service contracts required
by Paragraph 7.1(b) below. Lessee's obligations shall include restorations, replacements or renewals when necessary to keep the Premises and all
improvements thereon or a part thereof in good order, condition and state of repair . Lessee shall, during the term of this Lease, keep the exterior
appearance of the Building in a first-class condition (including, e.g. graffiti removal) consistent with the exterior appearance of other similar facilities of
comparable age and size in the vicinity, including, when necessary, the exterior repainting of the Building.
(b) Service Contracts. Lessee shall, at Lessee's sole expense, procure and maintain contracts, with copies to Lessor, in
customary form and substance for, and with contractors specializing and experienced in the maintenance of equipment located on the Premises,
including without limitation, fencing and lighting.
(c) Failure to Perform. If Lessee fails to perform Lessee's obligations under this Paragraph 7.1, Lessor may enter upon the
Premises after 10 days' prior written notice to Lessee (except in the case of an emergency, in which case no notice sha ll be required), perform such
obligations on Lessee's behalf, and put the Premises in good order, condition and repair, and Lessee shall promptly pay to Lessor a sum equal to 11 5%
of the cost thereof.
7.2 Lessor's Obligations. Subject to the provisions of Paragraphs 2.2 (Condition), 2.3 (Compliance), 9 (Damage or Destruction) and
14 (Condemnation), it is intended by the Parties hereto that Lessor have no obligation, in any manner whatsoever, to repair a nd maintain the Premises,
or the equipment therein, all of which obligations are intended to be that of the Lessee. It is the intention of the Parties that the terms of this Lease
govern the respective obligations of the Parties as to maintenance and repair of the Premises.
7.3 Utility Installations; Trade Fixtures; Alterations.
(a) Definitions. The term "Utility Installations" refers to all floor and window coverings, air and/or vacuum lines, power
panels, electrical distribution, security and fire protection systems, communication cabling, lighting fixtures, HVAC equi pment, plumbing, and fencing in
or on the Premises. The term "Trade Fixtures" shall mean Lessee's machinery and equipment that can be removed without doing material damage to
the Premises. The term "Alterations" shall mean any modification of the improvements, other than Utility Installations or Trade Fixtures, whether by
addition or deletion. "Lessee Owned Alterations and/or Utility Installations" are defined as Alterations and/or Utility Installations made by Lessee
that are not yet owned by Lessor pursuant to Paragraph 7.4(a).
(b) Consent. Lessee shall not make any Alterations or Utility Installations to the Premises without Lessor's prior written
consent; provided, however Lessee shall, at Lessee’s sole cost and expense: i) designate and install appropriate signage for the access point(s) and
ingress and egress routes for the delivery and shipping of stored automobiles on the Premises in accordance with Exhibit B; and ii) install opaque
security fencing and gates across the Premises in accordance with Exhibit C. Lessee may, however, make non-structural Alterations or Utility
Installations to the interior of the Premises (excluding the roof) without such consent but upon notice to Lessor, as long as they are not visible from the
outside, do not involve puncturing, relocating or removing the roof or any existing walls, will not affect the electrical, plumbing, HVAC, and/or life s afety
systems, do not trigger the requirement for additional modifications and/or improvements to the Premises resulting from applicable laws, such as
compliance with Title 24, and the cumulative cost thereof during this Lease as extended does not exceed a sum equal to 3 mont h's Base Rent in the
aggregate or a sum equal to one month's Base Rent in any one year. Notwithstanding the foregoing, Lessee shall not make or permit any roof
penetrations and/or install anything on the roof without the prior written approval of Lessor. Lessor may, as a precondition to granting such approval,
require Lessee to utilize a contractor chosen and/or approved by Lessor. Any Alterations or Utility Installations that Lessee shall desire to make and
which require the consent of the Lessor shall be presented to Lessor in written form with detailed plans . Consent shall be deemed conditioned upon
Lessee's: (i) acquiring all applicable governmental permits, (ii) furnishing Lessor with copies of both the permits and the plans and specifications prior to
commencement of the work, and (iii) compliance with all conditions of said permits and other applicable laws in a prompt and expeditious manner. Any
Alterations or Utility Installations shall be performed in a workmanlike manner with good and sufficient materials . Lessee shall promptly upon completion
furnish Lessor with as-built plans and specifications. For work which costs an amount more than one month's Base Rent, Lessor may condition its
consent upon Lessee providing a lien and completion bond in an amount equal to 150% of the estimated cost of such Alteration or Utility Installation
and/or upon Lessee's posting an additional Security Deposit with Lessor.
(c) Liens; Bonds. Lessee shall pay, when due, all claims for labor or materials furnished or alleged to have been furnished
to or for Lessee at or for use on the Premises, which claims are or may be secured by any mechanic's or materialmen's lien against the Premises or any
interest therein. Lessee shall give Lessor not less than 10 days’ notice prior to the commencement of any work in, on or about the Premises, and Lessor
shall have the right to post notices of non-responsibility. If Lessee shall contest the validity of any such lien, claim or demand, then Lessee shall, at its
sole expense defend and protect itself, Lessor and the Premises against the same and shall pay and satisfy any such adverse j udgment that may be
rendered thereon before the enforcement thereof. If Lessor shall require, Lessee shall furnish a surety bond in an amount equal to 150% of the amount
of such contested lien, claim or demand, indemnifying Lessor against liability for the s ame. If Lessor elects to participate in any such action, Lessee
shall pay Lessor's attorneys' fees and costs.
7.4 Ownership; Removal; Surrender; and Restoration.
(a) Ownership. Subject to Lessor's right to require removal or elect ownership as hereinafter provided, all Alterations and
Utility Installations made by Lessee shall be the property of Lessee, [but] considered a part of the Premises. Lessor may, at any time, elect in writing to
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be the owner of all or any specified part of the Lessee Owned Alterations a nd Utility Installations. Unless otherwise instructed per paragraph 7.4(b)
hereof, all Lessee Owned Alterations and Utility Installations shall, at the expiration or termination of this Lease, become the property of Lessor and be
surrendered by Lessee with the Premises.
(b) Removal. By delivery to Lessee of written notice from Lessor not earlier than 90 and not later than 30 days prior to the
end of the Original Term or Extended Term, as applicable, Lessor may require that any or all Lessee Owned Alterations or Utility Installations be
removed by the expiration or termination of this Lease. Lessor may require the removal at any time of all or any part of any Lessee Owned Alterations or
Utility Installations made without the required consent.
(c) Surrender; Restoration. Lessee shall surrender the Premises by the Expiration Date or any earlier termination date,
with all of the improvements, parts and surfaces thereof broom clean and free of debris, and in good operating order, conditi on and state of repair,
ordinary wear and tear excepted. "Ordinary wear and tear" shall not include any damage or deterioration that would have been prevented by good
maintenance practice. Notwithstanding the foregoing, if the Lessee occupies the Premises for 12 months or less, then L essee shall surrender the
Premises in the same condition as delivered to Lessee on the Commencement Date with NO allowance for ordinary wear and tear. Lessee shall repair
any damage occasioned by the installation, maintenance or removal of Trade Fixtures, Lessee owned Alterations and/or Utility Installations, furnishings,
and equipment as well as the removal of any storage tank installed by or for Lessee . Lessee shall remove from the Premises any and all Hazardous
Substances brought onto the Premises by or for Lessee, or any third party (except Hazardous Substances which were deposited v ia underground
migration from areas outside of the Premises) to the level specified in applicable laws. Trade Fixtures shall remain the property of Lessee and shall be
removed by Lessee. Any personal property of Lessee not removed on or before the Expiration Date , as Extended, or any earlier termination date shall
be deemed to have been abandoned by Lessee and may be disposed of or retained by Lessor as Lessor may desire . The failure by Lessee to timely
vacate the Premises pursuant to this Paragraph 7.4(c) without the express written consent of Lessor shall constitute a hol dover under the provisions of
Paragraph 26 below.
8. Insurance; Indemnity.
8.1 Obligation to Maintain Insurance.
(a) During the Term, and as may be applicable, the Extended Term, Lessee shall procure and maintain insurance against
claims for injuries to persons or damages to property which may arise from or in connection with the Lessee’s operation and use of the Premises. The
cost of all insurance required by the Lease shall be borne by the Lessee.
8.2 Liability Insurance Carried by Lessee. Lessee shall obtain and keep in force a Commercial General Liability policy of insurance
protecting Lessee and Lessor as an additional insured against claims for bodily injury, personal injury and property damage b ased upon or arising out of
the ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto. Such insurance shall be on an occurrence basis
providing single limit coverage in an amount not less than $1,000,000 per occurrence with an annual aggregate of not less tha n $2,000,000. Lessee
shall add Lessor as an additional insured by means of an endorsement at least as broad as the Insurance Service Organization 's "Additional Insured-
Managers or Lessors of Premises" Endorsement. The policy shall not contain any intra-insured exclusions as between insured persons or organizations
and shall include coverage for liability assumed under this Lease as an "insured contract" for the performance of Lessee's indemnity obligations under
this Lease. The limits of said insurance shall not, however, limit the liability of Lessee nor relieve Lessee of any obligation hereunder. Lessee shall
provide an endorsement on its liability policy(ies) which provides that its insurance shall be primary to and not contributor y with any similar insurance
carried by Lessor, whose insurance shall be considered excess insurance only.
8.3 Property Insurance - Building, Improvements and Rental Value.
(a) Building and Improvements. The Lessee shall obtain and keep in force a policy or policies in the name of Lessor, with
loss payable to Lessor. The amount of such insurance shall be equal to the full insurable replacement cost of the Premises, as the same shall exist f rom
time to time, or the amount required by any Lender, but in no event more than the commercially reasonable and available insurable value thereof.
Lessee Owned Alterations and Utility Installations, Trade Fixtures, and Lessee's personal property shall be insured by Lessee not by Lessor. If the
coverage is available and commercially appropriate, such policy or policies shal l insure against all risks of direct physical loss or damage (except the
perils of flood and/or earthquake unless required by a Lender or included in the Base Premium), including coverage for debris removal and the
enforcement of any applicable laws requiring the upgrading, demolition, reconstruction or replacement of any portion of the Premises as the result of a
covered loss. Said policy or policies shall also contain an agreed valuation provision in lieu of any coinsurance clause, waiver of subrogation, and
inflation guard protection causing an increase in the annual property insurance coverage amount by a factor of not less than the adjusted U.S.
Department of Labor Consumer Price Index for All Urban Consumers applicable to the City of San Bernardino, California. If such insurance coverage
has a deductible clause, the deductible amount shall not exceed $5,000 per occurrence, and Lessee shall be liable for such de ductible amount in the
event of an Insured Loss.
(b) Rental Value. The Lessee shall obtain and keep in force a policy or policies in the name of Lessor with loss payable to
Lessor and any Lender, insuring the loss of the full Rent during the Term, and as may be applicable, the Extended Term, ("Rental Value insurance").
Said insurance shall contain an agreed valuation provision in lieu of any coinsurance clause, and the amount of coverage shall be adjusted annually to
reflect the projected Rent otherwise payable by Lessee pursuant to the Lease. Lessee shall be liable for any deductible amount in the event of such
loss.
(c) Auto Liability. Lessee shall obtain and maintain automobile liability insurance with minimum combined single limit of
$1,000,000 and an additional insured enforcement page.
8.4 Lessee's Property; Business Interruption Insurance; Worker's Compensation Insurance.
(a) Property Damage. Lessee shall obtain and maintain insurance coverage on all of Lessee's personal property, Trade
Fixtures, and Lessee Owned Alterations and Utility Installations. Such insurance shall be full replacement cost coverage with a deductible of not to
exceed $1,000 per occurrence. The proceeds from any such insurance shall be used by Lessee for the replacement of personal property, Trade
Fixtures and Lessee Owned Alterations and Utility Installations.
(b) Business Interruption. Lessee shall obtain and maintain loss of income and extra expense insurance in amounts as will
reimburse Lessee for direct or indirect loss of earnings attributable to all perils commonly insured against by prudent lesse es in the business of Lessee
or attributable to prevention of access to the Premises as a result of such perils.
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(c) Worker's Compensation Insurance. Lessee shall obtain and maintain Worker's Compensation Insurance with no less
than $1,000,000 per accident for bodily injury or disease. Such policy shall include a 'Waiver of Subrogation' endorsement. Lessee shall provide Lessor
with a copy of such endorsement along with the certificate of insurance or copy of the policy required by paragraph 8.5.
(d) No Representation of Adequate Coverage. Lessor makes no representation that the limits or forms of coverage of
insurance specified herein are adequate to cover Lessee's property, business operations or obligations under this Lease.
8.5 Insurance Policies. Insurance required herein shall be by companies maintaining during the policy term a "General Policyholders
Rating" of at least A-, VII, as set forth in the most current issue of "Best's Insurance Guide", or such other rating as may be required by a Lender.
Lessee shall not do or permit to be done anything which invalidates the required insurance policies. Lessee shall, prior to the Commencement Date,
deliver to Lessor certified copies of policies of such insurance or certificates with copies of the required endorsements evi dencing the existence and
amounts of the required insurance. No such policy shall be cancelable or subject to modification except after 30 days prior written notice to Lessor .
Lessee shall, at least 10 days prior to the expiration of such policies, furnish Lessor with evidence of renewals or "insurance binders" evidencing renewal
thereof, or Lessor may increase his liability insurance coverage and charge the cost thereof to Lessee, which amount shall be payable by Lessee to
Lessor upon demand. Such policies shall be for a term of at least one year, or the length of the remaining term of this Lease, whichever is less. If either
Party shall fail to procure and maintain the insurance required to be carried by it, the other Party may, but shall not be required to, procure and maintain
the same.
8.6 Waiver of Subrogation. To the extent permitted by law, the Lessee hereby releases the City of San Bernardino its elected and
appointed officials, employees and volunteers and others working on behalf of the City of San Bernardino fr om any and all liability or responsibility to the
Lessee or anyone claiming through or under the Lessee by way of subrogation or otherwise, for any loss or damage to property caused by fire or any
other casualty, even if such fire or other casualty shall have been caused by the fault or negligence of the City of San Bernardino its elected or appointed
officials, employees or volunteers or others working on behalf of the City of San Bernardino. This provision shall be applic able and in full force and effect
only with respect to loss of damage occurring during the time of the lessee’s occupancy or use, and lessee’s policies of insu rance shall contain a clause
or endorsement to the effect that such release shall not adversely affect or impair such policies or prejudice the right of the lessee to recover thereunder.
The lessee agrees that its policies will include such a clause or endorsement.
8.7 Indemnity. Except for Lessor's gross negligence or willful misconduct, Lessee shall indemnify, protect, defend and hold harmless
the Premises, Lessor and its agents, Lessor's master or ground lessor, partners and Lenders, from and against any and all claims, loss of rents and/or
damages, liens, judgments, penalties, attorneys' and consultants' fees, expenses and/or liabilities arising out of, involving, or in connection with, the use
and/or occupancy of the Premises by Lessee. If any action or proceeding is brought against Lessor by reason of any of the foregoing matters, Lessee
shall upon notice defend the same at Lessee's expense by counsel reasonably satisfactory to Lessor and Lessor shall cooperate with Lessee in such
defense. Lessor need not have first paid any such claim in order to be defended or indemnified.
8.8 Exemption of Lessor and its Agents from Liability. Notwithstanding the negligence or breach of this Lease by Lessor or its
agents, neither Lessor nor its agents shall be liable under any circumstances for : (i) injury or damage to the person or goods, wares, merchandise or
other property of Lessee, Lessee's employees, contractors, invitees, customers, or any other person in or about the Premises, whether such damage or
injury is caused by or results from fire, steam, electricity, gas, water or rain, indoor air quality, the presence of mold or from the breakage, leakage,
obstruction or other defects of pipes, fire sprinklers, wires, appliances, plumbing, HVAC or lighting fixtures, or from any o ther cause, whether the said
injury or damage results from conditions arising upon the Premises or upon other portions of the building of which the Premises are a part, or from other
sources or places, (ii) any damages arising from any act or neglect of any other tenant of Lessor or from the failure of Lessor or its agents to enforce the
provisions of any other lease in the Project, or (iii) injury to Lessee's business or for any loss of income or profit therefrom. Instead, it is intended that
Lessee's sole recourse in the event of such damages or injury be to file a claim on the insurance policy(ies) that Lessee is required to maintain pursuant
to the provisions of paragraph 8.
8.9 Failure to Provide Insurance. Lessee acknowledges that any failure on its part to obtain or maintain the insurance required herein
will expose Lessor to risks and potentially cause Lessor to incu r costs not contemplated by this Lease, the extent of which will be extremely difficult to
ascertain. Accordingly, for any month or portion thereof that Lessee does not maintain the required insurance and/or does not provide Le ssor with the
required binders or certificates evidencing the existence of the required insurance, the Base Rent shall be automatically increased, withou t any
requirement for notice to Lessee, by an amount equal to 10% of the then existing Base Rent. The parties agree that such increase in Base Rent
represents fair and reasonable compensation for the additional risk/costs that Lessor will incur by reason of Lessee 's failure to maintain the required
insurance. Such increase in Base Rent shall in no event constitute a waiver of Lessee's Default or Breach with respect to the failure to maintain such
insurance, prevent the exercise of any of the other rights and remedies granted hereunder, nor relieve Lessee of its obligati on to maintain the insurance
specified in this Lease.
9. Damage or Destruction.
9.1 Definitions.
(a) "Premises Partial Damage" shall mean damage or destruction to the improvements on the Premises, other than Lessee
Owned Alterations and Utility Installations, which can reasonably be repaired in thirty (30) days or less from the date of the damage or destruction.
Lessee shall notify Lessor in writing within ten (10) days from the date of the damage or destruction as to whether or not the damage is Partial or Total.
(b) "Premises Total Destruction" shall mean damage or destruction to the Premises, other than Lessee Owned Alterations
and Utility Installations and Trade Fixtures, which cannot reasonably be repaired in thirty (30) days or less from the date of the damage or destruction.
Lessor shall notify Lessee in writing within ten (10) days from the date of the damage or destruction as to whether or not the damage is Partial or Total.
(c) "Insured Loss" shall mean damage or destruction to improvements on the Premises, other than Lessee Owned
Alterations and Utility Installations and Trade Fixtures, which was caused by an event required to be covered by the insurance described in Paragraph
8.3(a), irrespective of any deductible amounts or coverage limits involved.
(d) "Replacement Cost" shall mean the cost to repair or rebuild the improvements owned by Lessor at the time of the
occurrence to their condition existing immediately prior thereto, including demolition, debris removal and upgrading required by the operation of
applicable laws, and without deduction for depreciation.
(e) "Hazardous Substance Condition" shall mean the occurrence or discovery of a condition involving the presence of, or a
contamination by, a Hazardous Substance, in, on, or under the Premises which requires restoration.
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9.2 Partial Damage - Insured Loss. If a Premises Partial Damage that is an Insured Loss occurs, then Lessee shall, at Lessee's
expense, repair such damage as soon as reasonably possible and this Lease shall continue in full force and effect . In such event, Lessor shall make
any applicable insurance proceeds, if any, available to Lessee on a reasonable basis for that purpose. Lessee shall not be entitled to reimbursement of
any funds contributed by Lessee to repair any such damage or destruction. Premises Partial Damage due to flood or earthquake shall be subject to
Paragraph 9.3, notwithstanding that there may be some insurance coverage, but the net proceeds of any such insurance shall be made available for the
repairs if made by either Party.
9.3 Partial Damage - Uninsured Loss. If a Premises Partial Damage that is not an Insured Loss occurs, unless caused by a negligent
or willful act of Lessee (in which event Lessee shall make the repairs at Lessee 's expense), Lessor may either: (i) repair such damage as soon as
reasonably possible at Lessor's expense, in which event this Lease shall continue in full force and effect, or (ii ) terminate this Lease by giving written
notice to Lessee within 30 days after receipt by Lessor of knowledge of the occurrence of such damage . Such termination shall be effective 60 days
following the date of such notice. In the event Lessor elects to terminate this Lease, Lessee shall have the right within 10 days after receipt of the
termination notice to give written notice to Lessor of Lessee's commitment to pay for the repair of such damage without reimbursement from Lessor.
Lessee shall provide Lessor with said funds or satisfactory assurance thereof within 30 days after making such commitment . In such event this Lease
shall continue in full force and effect, and Lessor shall proceed to m ake such repairs as soon as reasonably possible after the required funds are
available. If Lessee does not make the required commitment, this Lease shall terminate as of the date specified in the termination notic e.
9.4 Total Destruction. Notwithstanding any other provision hereof, if a Premises Total Destruction occurs, this Lease shall terminate
60 days following such Destruction. If the damage or destruction was caused by the gross negligence or willful misconduct of Lessee, Lessor shall have
the right to recover Lessor's damages from Lessee, except as provided in Paragraph 8.6.
9.5 Damage Near End of Term. If at any time during the last 6 months of this Lease there is damage for which the cost to repair
exceeds one month's Base Rent, whether or not an Insured Loss, Lessor may terminate this Lease effective 60 days following the date of occurrence of
such damage by giving a written termination notice to Lessee within 30 days after the date of occurrence of such damage. Notwithstanding the
foregoing, if Lessee at that time has an exercisable option to extend this Lease or to purchase the Premises, then Lessee may preserve this Lease by,
(a) exercising such option and (b) providing Lessor with any shortage in insurance proceeds (or adequate assurance thereof) needed to make the
repairs on or before the earlier of (i) the date which is 10 days after Lessee's receipt of Lessor's written notice purporting to terminate this Lease, or
(ii) the day prior to the date upon which such option expires. If Lessee duly exercises such option during such period and provides Lessor with funds (or
adequate assurance thereof) to cover any shortage in insurance proceeds, Lessor shall, at Lessor 's commercially reasonable expense, repair such
damage as soon as reasonably possible and this Lease shall continue in full force and effect. If Lessee fails to exercise such option and provide such
funds or assurance during such period, then this Lease shall terminate on the date specified in the termination notice and Le ssee's option shall be
extinguished.
9.6 Abatement of Rent; Lessee's Remedies.
(a) Abatement. In the event of Premises Partial Damage or Premises Total Destruction or a Hazardous Substance
Condition for which Lessee is not responsible under this Lease, the Rent payable by Less ee for the period required for the repair, remediation or
restoration of such damage shall be abated in proportion to the degree to which Lessee 's use of the Premises is impaired, but not to exceed the
proceeds received from the Rental Value insurance. All other obligations of Lessee hereunder shall be performed by Lessee, and Lessor shall have no
liability for any such damage, destruction, remediation, repair or restoration except as provided herein.
(b) Remedies. Under no circumstances is Lessor obligated to repair or restore the Premises.
9.7 Termination; Advance Payments. Upon termination of this Lease pursuant to Paragraph 6.2(g) or Paragraph 9, an equitable
adjustment shall be made concerning advance Base Rent and any other advance payments made by Lessee to Lessor. Lessor shall, in addition, return
to Lessee so much of Lessee's Security Deposit as has not been, or is not then required to be, used by Lessor.
10. Real Property Taxes.
10.1 Definition. As used herein, the term "Real Property Taxes" shall include any form of assessment; real estate, general, special,
ordinary or extraordinary, or rental levy or tax (other than inheritance, personal income or estate taxes); improvement bond; and/or license fee imposed
upon or levied against any legal or equitable interest of Lessor in the Premises or the Project, Lessor's right to other income therefrom, and/or Lessor's
business of leasing, by any authority having the direct or indirect power to tax and where the funds are generated with reference to the Building address.
Real Property Taxes shall also include any tax, fee, levy, assessment or charge, or any increase therein: (i) imposed by reason of events occurring
during the term of this Lease, including but not limited to, a change in the ownership of the Premises, a nd (ii) levied or assessed on machinery or
equipment provided by Lessor to Lessee pursuant to this Lease.
10.2 Payment of Taxes. Lessor shall pay the Real Property Taxes applicable to the Premises provided, however, that Lessee shall pay
to Lessor the amount, if any, by which Real Property Taxes applicable to the Premises increase over the fiscal tax year during which the
Commencement Date Occurs ("Tax Increase"). Payment of any such Tax Increase shall be made by Lessee to Lessor within 30 days after receipt o f
Lessor's written statement setting forth the amount due and computation thereof. If any such taxes shall cover any period of time prior to or after the
expiration or termination of this Lease, Lessee's share of such taxes shall be prorated to cover only that portion of the tax bill applicable to the period
that this Lease is in effect. In the event Lessee incurs a late charge on any Rent payment, Lessor may estimate the current Real Property Taxes, and
require that the Tax Increase be paid in advance to Lessor by Lessee monthly in advance with the payment of the Base Rent. Such monthly payment
shall be an amount equal to the amount of the estimated installment of the Tax Increase divided by the number of months remai ning before the month in
which said installment becomes delinquent. When the actual amount of the applicable Tax Increase is known, the amount of such equal monthly
advance payments shall be adjusted as required to provide the funds needed to pay the applicable Tax Increase . If the amount collected by Lessor is
insufficient to pay the Tax Increase when due, Lessee shall pay Lessor, upon demand, such additional sums as are necessary to pay such obl igations.
Advance payments may be intermingled with other moneys of Lessor and shall not bear i nterest. In the event of a Breach by Lessee in the performance
of its obligations under this Lease, then any such advance payments may be treated by Lessor as an additional Security Deposit.
10.3 Additional Improvements. Notwithstanding anything to the contrary in this Paragraph 10.2, Lessee shall pay to Lessor upon
demand therefor the entirety of any increase in Real Property Taxes assessed by reason of this Lease, Alterations, or Utility Installations placed upon
the Premises by Lessee or at Lessee's request or by reason of any alterations or improvements to the Premises made by Lessor subsequent to the
execution of this Lease by the Parties.
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10.4 Joint Assessment. If the Premises are not separately assessed, Lessee's liability shall be an equitable proportion of the Tax
Increase for all of the land and improvements included within the tax parcel assessed, such proportion to be conclusively det ermined by Lessor from the
respective valuations assigned in the assessor's work sheets or such other information as may be reasonably available.
10.5 Personal Property Taxes. Lessee shall pay, prior to delinquency, all taxes assessed against and levied upon Lessee Owned
Alterations, Utility Installations, Trade Fixtures, furnishings, equipment and all personal property of Lessee . When possible, Lessee shall cause its
Lessee Owned Alterations and Utility Installations, Trade Fixtures, furnishings, equipment and all other personal property to be assessed and billed
separately from the real property of Lessor. If any of Lessee's said property shall be assessed with Lessor's real property, Lessee shall pay Lessor the
taxes attributable to Lessee's property within 10 days after receipt of a written statement setting forth the taxes applicable to Lessee 's property.
11. Utilities and Services. Lessee shall pay for all water, gas, heat, light, power, telephone, trash disposal and other utilities and services
supplied to the Premises, together with any taxes thereon. If any such services are not separately metered or billed to Lessee, Lessee shall pay a
reasonable proportion, to be determined by Lessor, of all charges jointly metered or billed. There shall be no abatement of rent and Lessor shall not be
liable in any respect whatsoever for the inadequacy, stoppage, interruption or discontinuance of any utility or service due to riot, strike, labor dispute,
breakdown, accident, repair or other cause beyond Lessor's reasonable control or in cooperation with governmental request or directions.
12. Assignment and Subletting.
12.1 Lessor's Consent Required.
(a) Lessee shall not voluntarily or by operation of law assign, transfer, mortgage or encumber (collectively, "assign or
assignment") or sublet all or any part of Lessee's interest in this Lease or in the Premises without Lessor's prior written consent. Any assignee or
sublessee shall be required to execute in form acceptable to Lessor a waiver of relocation benefits and for any loss of goodwill as generally provided in
Section 47 hereof. Consent to any sublet or assignment may be granted, conditionally granted, or refused at the sole and absolute discretion of Lessor.
(b) A change in the control of Lessee shall constitute an assignment requiring consent. The transfer, on a cumulative basis,
of 25% or more of the voting control of Lessee shall constitute a change in control for this purpose.
(c) The involvement of Lessee or its assets in any transaction, or series of transactions (by way of merger, sale, acquisition,
financing, transfer, leveraged buy-out or otherwise), whether or not a formal assignment or hypothecation of this Lease or Lessee's assets occurs, which
results or will result in a reduction of the Net Worth of Lessee by an amount greater than 25% of such Net Worth as it was re presented at the time of the
execution of this Lease or at the time of the most recent assignment to which Lessor has consented, or as it exists immediately prior to said transactio n
or transactions constituting such reduction, whichever was or is greater, shall be considered an assignment of this Lease to which Lessor may withhold
its consent. "Net Worth of Lessee" shall mean the net worth of Lessee (excluding any guarantors) established under generally accepted accounting
principles.
(d) An assignment or subletting without consent shall, at Lessor's option, be a Default curable after notice per Paragraph
13.1(d), or a noncurable Breach without the necessity of any notice and grace period. If Lessor elects to treat such unapproved assignment or subletting
as a noncurable Breach, Lessor may either: (i) terminate this Lease, or (ii) upon 30 days written notice, increase the monthly Base Rent to 110% of the
Base Rent then in effect. Further, in the event of such Breach and rental adjustment, (i) the purchase price of any option to purchase the Premises held
by Lessee shall be subject to similar adjustment to 110% of the price previously in effect, and (ii ) all fixed and non-fixed rental adjustments scheduled
during the remainder of the Lease term shall be increased to 110% of the scheduled adjusted rent.
(e) Lessee's remedy for any breach of Paragraph 12.1 by Lessor shall be limited to compensatory damages and/or injunctive
relief.
(f) Lessor may reasonably withhold consent to a proposed assignment or subletting if Lessee is in Default at the time
consent is requested.
(g) Notwithstanding the foregoing, allowing a de minimis portion of the Premises, i.e. 20 square feet or less, to be used by a
third-party vendor in connection with the installation of a vending machine or payphone shall not constitute a subletting.
12.2 Terms and Conditions Applicable to Assignment and Subletting.
(a) Regardless of Lessor's consent, no assignment or subletting shall: (i) be effective without the express written assumption
by such assignee or sublessee of the obligations of Lessee under this Lease, (ii) release Lessee of any obligations hereunder, or (iii) alter the primary
liability of Lessee for the payment of Rent or for the performance of any other obligations to be performed by Lessee.
(b) Lessor may accept Rent or performance of Lessee's obligations from any person other than Lessee pending approval or
disapproval of an assignment. Neither a delay in the approval or disapproval of such assignment nor the acceptance of Rent or performance shall
constitute a waiver or estoppel of Lessor's right to exercise its remedies for Lessee's Default or Breach.
(c) Lessor's consent to any assignment or subletting shall not constitute a consent to any subsequent assignment or
subletting.
(d) In the event of any Default or Breach by Lessee, Lessor may proceed directly against Lessee, any Guarantors or anyone
else responsible for the performance of Lessee's obligations under this Lease, including any assignee or sublessee, without first exhausting Lessor's
remedies against any other person or entity responsible therefor to Lessor, or any security held by Lessor.
(e) Each request for consent to an assignment or subletting shall be in writing, accompanied by information relevant to
Lessor's determination as to the financial and operational responsibility and appropriateness of the prop osed assignee or sublessee, including but not
limited to the intended use and/or required modification of the Premises, if any, together with a fee of $500 as consideratio n for Lessor's considering and
processing said request. Lessee agrees to provide Lessor with such other or additional information and/or documentation as may be reasonably
requested. (See also Paragraph 36)
(f) Any assignee of, or sublessee under, this Lease shall, by reason of accepting such assignment, entering into such
sublease, or entering into possession of the Premises or any portion thereof, be deemed to have assumed and agreed to conform and comply with each
and every term, covenant, condition and obligation herein to be observed or performed by Lessee during the term of said assig nment or sublease, other
than such obligations as are contrary to or inconsistent with provisions of an assignment or sublease to which Lessor has spe cifically consented to in
writing.
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12.3 Additional Terms and Conditions Applicable to Subletting. The following terms and conditions shall apply to any subletting by
Lessee of all or any part of the Premises and shall be deemed included in all subleases under this Lease whether or not expre ssly incorporated therein:
(a) Lessee hereby assigns and transfers to Lessor all of Lessee's interest in all Rent payable on any sublease, and Lessor
may collect such Rent and apply same toward Lessee's obligations under this Lease; provided, however, that until a Breach shall occur in the
performance of Lessee's obligations, Lessee may collect said Rent. In the event that the amount collected by Lessor exceeds Lessee's then
outstanding obligations any such excess shall be refunded to Lessee. Lessor shall not, by reason of the foregoing or any assignment of such sublease,
nor by reason of the collection of Rent, be deemed liable to the sublessee for any failure of Lessee to perform and comply with any of Le ssee's
obligations to such sublessee. Lessee hereby irrevocably authorizes and directs any such sublessee, upon receipt of a writt en notice from Lessor
stating that a Breach exists in the performance of Lessee's obligations under this Lease, to pay to Lessor all Rent due and to become due under the
sublease. Sublessee shall rely upon any such notice from Lessor and shall pay all Rents to Lessor without any obligation or right to inquire as to
whether such Breach exists, notwithstanding any claim from Lessee to the contrary.
(b) In the event of a Breach by Lessee, Lessor may, at its option, require sublessee to attorn to Lessor, in which event Lessor
shall undertake the obligations of the sublessor under such sublease from the time of the exercise of said option to the expi ration of such sublease;
provided, however, Lessor shall not be liable for any prepaid rents or security deposit paid by such sublessee to such sublessor or for any prior Defaults
or Breaches of such sublessor.
(c) Any matter requiring the consent of the sublessor under a sublease shall also require the consent of Lessor.
(d) No sublessee shall further assign or sublet all or any part of the Premises without Lessor's prior written consent.
(e) Lessor shall deliver a copy of any notice of Default or Breach by Lessee to the sublessee, who shall have the right to cure
the Default of Lessee within the grace period, if any, specified in such notice. The sublessee shall have a right to reimbursement and offset from and
against Lessee for any such Defaults cured by the sublessee.
13. Default; Breach; Remedies.
13.1 Default; Breach. A "Default" is defined as a failure by the Lessee to comply with or perform any of the terms, covenants,
conditions or Rules and Regulations under this Lease. A "Breach" is defined as the occurrence of one or more of the following Defaults, and the failure
of Lessee to cure such Default within any applicable grace period:
(a) The abandonment of the Premises; or the vacating of the Premises without providing a commercially reasonable level of
security, or where the coverage of the property insurance described in Paragraph 8.3 is jeopardized as a result thereof, or w ithout providing reasonable
assurances to minimize potential vandalism.
(b) The failure of Lessee to make any payment of Rent or any Security Deposit required to be made by Lessee hereunder,
whether to Lessor or to a third party, when due, to provide reasonable evidence o f insurance or surety bond, or to fulfill any obligation under this Lease
which endangers or threatens life or property, where such failure continues for a period of 3 business days following written notice to Lessee. THE
ACCEPTANCE BY LESSOR OF A PARTIAL PAYMENT OF RENT OR SECURITY DEPOSIT SHALL NOT CONSTITUTE A WAIVER OF ANY OF
LESSOR'S RIGHTS, INCLUDING LESSOR'S RIGHT TO RECOVER POSSESSION OF THE PREMISES.
(c) The failure of Lessee to allow Lessor and/or its agents access to the Premises or the commission o f waste, act or acts
constituting public or private nuisance, and/or an illegal activity on the Premises by Lessee, where such actions continue fo r a period of 3 business days
following written notice to Lessee. [In the event that] Lessee commits waste, a nuisance or an illegal activity a second time, then the Lessor may elect to
treat such conduct as a non-curable Breach rather than a Default.
(d) The failure by Lessee to provide (i) reasonable written evidence of compliance with applicable laws, (ii) the rescission of
an unauthorized assignment or subletting, (iii) an Estoppel Certificate or financial statements, (iv) a requested subordination, (v) any document
requested under Paragraph 42, (vi) material safety data sheets (MSDS), or (vii) any other documentation or information which Lessor may reasonably
require of Lessee under the terms of this Lease, where any such failure continues for a period of 10 days following written n otice to Lessee.
(e) A Default by Lessee as to the terms, covenants, conditions or provisions of this Lease, or of the rules adopted under
Paragraph 40 hereof, other than those described in subparagraphs 13.1(a), (b), (c) or (d), above, where such Default continues for a pe riod of 30 days
after written notice; provided, however, that if the nature of Lessee's Default is such that more than 30 days are reasonably required for its cure, then it
shall not be deemed to be a Breach if Lessee commences such cure within said 30 day period and thereafter diligently prosecut es such cure to
completion.
(f) The occurrence of any of the following events: (i) the making of any general arrangement or assignment for the benefit of
creditors; (ii) becoming a "debtor" as defined in 11 U.S.C. §101 or any successor statute thereto (unless, in the case of a petition filed against Lessee,
the same is dismissed within 60 days); (iii) the appointment of a trustee or receiver to take possession of substantially all of Lessee's assets located at
the Premises or of Lessee's interest in this Lease, where possession is not restored to Lessee within 30 days; or (iv) the attachment, execution or other
judicial seizure of substantially all of Lessee's assets located at the Premises or of Lessee's interest in this Lease, where such seizure is not discharged
within 30 days; provided, however, in the event that any provision of this subparagraph is contrary to any applicable law, such provision shall be of no
force or effect, and not affect the validity of the remaining provisions.
(g) The discovery that any financial statement of Lessee given to Lessor was materially false.
(h) If the performance of Lessee's obligations under this Lease is guaranteed: (i) the death of a Guarantor, (ii) the termination
of a Guarantor's liability with respect to this Lease other than in accordance with the terms of such guaranty, (iii) a Guarantor's becoming insolvent or the
subject of a bankruptcy filing, (iv) a Guarantor's refusal to honor the guaranty, or (v) a Guarantor's breach of its guaranty obligation on an anticipatory
basis, and Lessee's failure, within 60 days following written notice of any such event, to provide written alternative assurance or security, which, when
coupled with the then existing resources of Lessee, equals or exceeds the combined financial resources of Lessee and the Guar antors that existed at
the time of execution of this Lease.
13.2 Remedies. If Lessee fails to perform any of its affirmative duties or obligations, within 10 days after written notice (or in case of a n
emergency, without notice), Lessor may, at its option, perform such duty or obligation on Lessee's behalf, including but not limited to the obtaining of
reasonably required bonds, insurance policies, or governmental licenses, permits or approvals. Lessee shall pay to Lessor an amount equal to 115% of
the costs and expenses incurred by Lessor in such performance upon receipt of an invoice therefor. In the event of a Breach, Lessor may, with or
without further notice or demand, and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of such Breach:
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(a) Terminate Lessee's right to possession of the Premises by any lawful means, in which case this Lease shall terminate,
and Lessee shall immediately surrender possession to Lessor. In such event Lessor shall be entitled to recover from Lessee: (i) the unpaid Rent which
had been earned at the time of termination; (ii) the worth at the time of award of the amount by which the unpaid rent which would have been earned
after termination until the time of award exceeds the amount of such rent al loss that the Lessee proves could have been reasonably avoided; (iii) the
worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental
loss that the Lessee proves could be reasonably avoided; and (iv) any other amount necessary to compensate Lessor for all the detriment proximately
caused by the Lessee's failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom,
including but not limited to the cost of recovering possession of the Premises, expenses of reletting, including necessary re novation and alteration of the
Premises, reasonable attorneys' fees, and that portion of any leasing commission paid by Lessor in connection with this Lease applicable to the
unexpired term of this Lease. The worth at the time of award of the amount referred to in provision (iii) of the immediately preceding sentence shall be
computed by discounting such amount at the discount rate of the Federal Reserve Bank of the District within which the Premises are located at the time
of award plus one percent. Efforts by Lessor to mitigate damages caused by Lessee's Breach of this Lease shall not waive Lessor's right to recover any
damages to which Lessor is otherwise entitled. If termination of this Lease is obtained through the provisional remedy of unlawful detainer, Lessor shall
have the right to recover in such proceeding any unpaid Rent and damages as are recoverable t herein, or Lessor may reserve the right to recover all or
any part thereof in a separate suit. If a notice and grace period required under Paragraph 13.1 was not previously given, a notice to pay rent or quit, or
to perform or quit given to Lessee under the unlawful detainer statute shall also constitute the notice required by Paragraph 13.1 . In such case, the
applicable grace period required by Paragraph 13.1 and the unlawful detainer statute shall run concurrently, and the failure of Lessee to cure the Default
within the greater of the two such grace periods shall constitute both an unlawful detainer and a Breach of this Lease entitl ing Lessor to the remedies
provided for in this Lease and/or by said statute.
(b) Continue the Lease and Lessee's right to possession and recover the Rent as it becomes due, in which event Lessee
may sublet or assign, subject only to reasonable limitations. Acts of maintenance, efforts to relet, and/or the appointment of a receiver to protect the
Lessor's interests, shall not constitute a termination of the Lessee's right to possession.
(c) Pursue any other remedy now or hereafter available under the laws or judicial decisions of the state wherein the Premises
are located. The expiration or termination of this Lease and/or the termination of Lessee's right to possession shall not relieve Lessee from liability
under any indemnity provisions of this Lease as to matters occurring or accruing during the term hereof or by reason of Lesse e's occupancy of the
Premises.
13.3 [INTENTIONALLY LEFT BLANK].
13.4 Late Charges. Lessee hereby acknowledges that late payment by Lessee of Rent will cause Lessor to incur costs not
contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain . Such costs include, but are not limited to, processing and
accounting charges, and late charges which may be imposed upon Lessor by any Lender. Accordingly, if any Rent shall not be received by Lessor
within 5 days after such amount shall be due, then, without any requirement for notice to Lessee, Lessee shall immediately pay to Lessor a one-time late
charge equal to 10% of each such overdue amount or $100, whichever is greater. The Parties hereby agree that such late charge represents a fair and
reasonable estimate of the costs Lessor will incur by reason of such late payment. Acceptance of such late charge by Lessor shall in no event constitute
a waiver of Lessee's Default or Breach with respect to such overdue amount, nor prevent the exercise of any of the other rights and remedies g ranted
hereunder. If a late charge is payable hereunder, whether or not collected, for 3 consecutive installments of Base Rent, then notwithstandi ng any
provision of this Lease to the contrary, Base Rent shall, at Lessor's option, become due and payable quarterly in advance.
13.5 Interest. Any monetary payment due Lessor hereunder, other than late charges, not received by Lessor, when due shall bear
interest from the 31st day after it was due. The interest ("Interest") charged shall be computed at the rate of 10% per annum but shall not exceed the
maximum rate allowed by law. Interest is payable in addition to the potential late charge provided for in Paragraph 13.4.
13.6 Breach by Lessor.
(a) Notice of Breach. Lessor shall not be deemed in breach of this Lease unless Lessor fails within a reasonable time to
perform an obligation required to be performed by Lessor. For purposes of this Paragraph, a reasonable time shall in no event be less than 30 days
after receipt by Lessor, and any Lender whose name and address shall have been furnished Lessee in writing for such purpose, of written notice
specifying wherein such obligation of Lessor has not been performed; provided, however, that if the nature of Lessor 's obligation is such that more than
30 days are reasonably required for its performance, then Lessor shall not be in breach if performance is commenced within such 30 day period and
thereafter diligently pursued to completion.
(b) Performance by Lessee on Behalf of Lessor. In the event that neither Lessor nor Lender cures said breach within 30
days after receipt of said notice, or if having commenced said cure they do not diligently pursue it to completion, then Less ee may elect to cure said
breach at Lessee's expense and offset from Rent the actual and reasonable cost to perform such cure, provided, however, that such offset shall not
exceed an amount equal to the greater of one month's Base Rent or the Security Deposit, reserving Lessee's right to seek reimbursement from Lessor
for any such expense in excess of such offset. Lessee shall document the cost of said cure and supply said documentation to Lessor.
14. Condemnation. If the Premises or any portion thereof are taken under the power of eminent domain or sold under the threat of the exercise
of said power (collectively "Condemnation"), this Lease shall terminate as to the part taken as of the date the condemning authority takes title or
possession, whichever first occurs. If more than 10% of the Building, or more than 25% of that portion of the Premises not occupied by any building, is
taken by Condemnation, Lessee may, at Lessee's option, to be exercised in writing within 10 days after Lessor shall have given Lessee written notice of
such taking (or in the absence of such notice, within 10 days after the condemning authority shall have taken possession) terminate this Lease as of the
date the condemning authority takes such possession. If Lessee does not terminate this Lease in accordance with the foregoing, this Lease shall
remain in full force and effect as to the portion of the Premises remaining, except that the Base Rent shall be reduced in proportion to the reduction in
utility of the Premises caused by such Condemnation. Condemnation awards and/or payments shall be the property of Lessor, whether such award
shall be made as compensation for diminution in value of the leasehold, the value of the part taken, or for severance damages; provided, however, that
Lessee shall be entitled to any compensation paid by the condemnor for Lessee's relocation expenses, loss of business goodwill and/or Trade Fixtures,
without regard to whether or not this Lease is terminated pursuant to the provisions of this Paragraph . All Alterations and Utility Installations made to the
Premises by Lessee, for purposes of Condemnation only, shall be considered the property of the Lessee and Lessee shall be entitled to any and all
compensation which is payable therefor. If this Lease is not terminated by reason of the Condemnation, then Lessor shall repair any damage to the
Premises caused by such Condemnation.
15. [INTENTIONALLY LEFT BLANK]..
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16. Estoppel Certificates.
(a) Each Party (as "Responding Party") shall within 10 days after written notice from the other Party (the "Requesting
Party") execute, acknowledge and deliver to the Requesting Party a statement in writing in form similar to the then most current "Estoppel Certificate"
form published by the AIR CRE, plus such additional information, confirmation and/or statements as may be reasonably requeste d by the Requesting
Party.
(b) If the Responding Party shall fail to execute or deliver the Estoppel Certificate within such 10-day period, the Requesting
Party may execute an Estoppel Certificate stating that: (i) the Lease is in full force and effect without modification except as may be represented by the
Requesting Party, (ii) there are no uncured defaults in the Requesting Party's performance, and (iii) if Lessor is the Requesting Party, not more than one
month's rent has been paid in advance. Prospective purchasers and encumbrancers may rely upon the Requesting Party's Estoppel Certificate, and the
Responding Party shall be estopped from denying the truth of the facts contained in said Certificate . In addition, Lessee acknowledges that any failure
on its part to provide such an Estoppel Certificate will expose Lessor to risks and potentially cause Lessor to incur costs not contemplated by this Lease,
the extent of which will be extremely difficult to ascertain. Accordingly, should the Lessee fail to execute and/or deliver a requested Estoppel Certificate
in a timely fashion the monthly Base Rent shall be automatically increased, without any requirement for notice to Lessee, by an amount equal to 10% of
the then existing Base Rent for remainder of the Lease. The Parties agree that such increase in Base Rent represents fair and reasonable
compensation for the additional risk/costs that Lessor will incur by reason of Lessee 's failure to provide the Estoppel Certificate. Such increase in Base
Rent shall in no event constitute a waiver of Lessee's Default or Breach with respect to the failure to provide the Estoppel Certificate nor prevent the
exercise of any of the other rights and remedies granted hereunder.
(c) If Lessor desires to finance, refinance, or sell the Premises, or any part thereof, Lessee and all Guarantors shall within 10
days after written notice from Lessor deliver to any potential lender or purchaser designated by Lessor such financial statem ents as may be reasonably
required by such lender or purchaser, including but not limited to Lessee 's financial statements for the past 3 years. All such financial statements shall
be received by Lessor and such lender or purchaser in confidence and shall be used only for the purposes herein set forth.
17. Definition of Lessor. The term "Lessor" as used herein shall mean the owner or owners at the time in question of the fee title to the
Premises, or, if this is a sublease, of the Lessee's interest in the prior lease. In the event of a transfer of Lessor's title or interest in the Premises or this
Lease, Lessor shall deliver to the transferee or assignee (in cash or by credit) any unused Security Deposit held by Lessor . Upon such transfer or
assignment and delivery of the Security Deposit, as aforesaid, the prior Lessor shall be relieved of all liability with respect to the obligations and/or
covenants under this Lease thereafter to be performed by the Lessor. Subject to the foregoing, the obligations and/or covenants in this Lease to be
performed by the Lessor shall be binding only upon the Lessor as hereinabove defined.
18. Severability. The invalidity of any provision of this Lease, as determined by a court of competent jurisdiction, shall in no way affect the validity
of any other provision hereof.
19. Days. Unless otherwise specifically indicated to the contrary, the word "days" as used in this Lease shall mean and refer to calendar days.
20. Limitation on Liability. The obligations of Lessor under this Lease shall not constitute personal obligations of Lessor or its partners,
members, directors, officers or shareholders, and Lessee shall look to the Premises, and to no other assets of Lessor, for the satisfaction of any liability
of Lessor with respect to this Lease, and shall not seek recourse against Lessor 's partners, members, directors, officers or shareholders, or any of their
personal assets for such satisfaction.
21. Time of Essence. Time is of the essence with respect to the performance of all obligations to be performed or observed by the Parties under
this Lease.
22. No Prior or Other Agreements; Broker Disclaimer. This Lease contains all agreements between the Parties with respect to any matter
mentioned herein, and no other prior or contemporaneous agreement or understanding shall be effective. Lessor and Lessee each represents and
warrants to the Brokers that it has made, and is relying solely upon, its own investigation as to the nature, quality, character and financial responsibility of
the other Party to this Lease and as to the use, nature, quality and character of the Premises. Brokers have no responsibility with respect thereto or with
respect to any default or breach hereof by either Party.
23. Notices.
23.1 Notice Requirements. All notices required or permitted by this Lease or applicable law shall be in writing and may be delivered in
person (by hand or by courier) or may be sent by regular, certified or registered mail or U.S. Postal Service Express Mail, with postage prepaid, or by
facsimile transmission, or by email, and shall be deemed sufficiently given if served in a manner specified in this Paragrap h 23. The addresses noted
adjacent to a Party's signature on this Lease shall be that Party's address for delivery or mailing of notices. Either Party may by written notice to the
other specify a different address for notice, except that upon Lessee's taking possession of the Premises, the Premises shall constitute Lessee's
address for notice. A copy of all notices to Lessor shall be concurrently transmitted to such party or parties at such addresses as Lessor may fr om time
to time hereafter designate in writing.
23.2 Date of Notice. Any notice sent by registered or certified mail, return receipt requested, shall be deemed given on the date of
delivery shown on the receipt card, or if no delivery date is shown, the postmark thereon. If sent by regular mail the notice shall be deemed given 72
hours after the same is addressed as required herein and mailed with postage prepaid. Notices delivered by United States Express Mail or overnight
courier that guarantees next day delivery shall be deemed given 24 hours after delivery of the same to the Postal Service or courier. Notices delivered
by hand or transmitted by facsimile transmission or by email shall be deemed delivered upon actual receipt. If notice is received on a Saturday, Sunday
or legal holiday, it shall be deemed received on the next business day.
24. Waivers.
(a) No waiver by Lessor of the Default or Breach of any term, covenant or condition hereof by Lessee, shall be deemed a
waiver of any other term, covenant or condition hereof, or of any subsequent Default or Breach by Lessee of the same or of any other term, covenant or
condition hereof. Lessor's consent to, or approval of, any act shall not be deemed to render unnecessary the obtaining of Lessor 's consent to, or
approval of, any subsequent or similar act by Lessee, or be construed as the basis of an estoppel to enforce the provision or provisions of this Lease
requiring such consent
(b) The acceptance of Rent by Lessor shall not be a waiver of any Default or Breach by Lessee . Any payment by Lessee
may be accepted by Lessor on account of moneys or damages due Lessor, notwithstanding any qualifying statements or conditions made b y Lessee in
connection therewith, which such statements and/or conditions shall be of no force or effect whatsoever unless specific ally agreed to in writing by Lessor
at or before the time of deposit of such payment.
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(c) THE PARTIES AGREE THAT THE TERMS OF THIS LEASE SHALL GOVERN WITH REGARD TO ALL MATTERS
RELATED THERETO AND HEREBY WAIVE THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE TO THE EXTENT THAT SUCH
STATUTE IS INCONSISTENT WITH THIS LEASE.
25. [INTENTIONALLY LEFT BLANK]..
26. No Right To Holdover. Lessee has no right to retain possession of the Premises or any part thereof beyond the expiration or termination of
this Lease. If Lessee holds over, then the Base Rent shall be increased to 150% of the Base Rent applicable immediately preceding the expira tion or
termination. Holdover Base Rent shall be calculated on monthly basis. Nothing contained herein shall be construed as consent by Lessor to any
holding over by Lessee.
27. Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all
other remedies at law or in equity.
28. Covenants and Conditions; Construction of Agreement. All provisions of this Lease to be observed or performed by Lessee are both
covenants and conditions. In construing this Lease, all headings and titles are for the convenience of the Parties only and shall not be considered a p art
of this Lease. Whenever required by the context, the singular shall include the plural and vice versa . This Lease shall not be construed as if prepared
by one of the Parties, but rather according to its fair meaning as a whole, as if both Parties had prepared it.
29. Binding Effect; Choice of Law. This Lease shall be binding upon the Parties, their personal representatives, successors and assigns and be
governed by the laws of the State in which the Premises are located. Any litigation between the Parties hereto concerning this Lease shall be initiated in
the county in which the Premises are located.
30. Subordination; Attornment; Non-Disturbance.
30.1 Subordination. This Lease shall be subject and subordinate to any CC&Rs, ground lease, mortgage, deed of trust, or other
hypothecation or security device (collectively, "Security Device"), now or hereafter placed upon the Premises, to any and all advances made on the
security thereof, and to all renewals, modifications, and extensions thereof. Lessee agrees that the holders of any such Security Devices (in this Lease
together referred to as "Lender") shall have no liability or obligation to perform any of the obligations of Lessor under this Lease. Any Lender may elect
to have this Lease and/or any Option granted hereby superior to the lien of its Security Device by giving written notice thereof to Lessee, whereupon this
Lease and such Options shall be deemed prior to such Security Device, notwithstanding the relative dates of the documentation or recordation thereof.
30.2 Attornment. In the event that Lessor transfers title to the Premises, or the Premises are acquired by another upon the foreclosure
or termination of a Security Device to which this Lease is subordinated (i ) Lessee shall, subject to the non-disturbance provisions of Paragraph 30.3,
attorn to such new owner, and upon request, enter into a new lease, containing all of the terms and provisions of this Lease, with such new owner for the
remainder of the term hereof, or, at the election of the new owner, this Lease will a utomatically become a new lease between Lessee and such new
owner, and (ii) Lessor shall thereafter be relieved of any further obligations hereunder and such new owner shall assume all of Lessor 's obligations,
except that such new owner shall not: (a) be liable for any act or omission of any prior lessor or with respect to events occurring prior to acquisition of
ownership; (b) be subject to any offsets or defenses which Lessee might have against any prior lessor, (c) be bound by prepayment of more than one
month's rent, or (d) be liable for the return of any security deposit paid to any prior lessor which was not paid or credited to such new owner.
30.3 Non-Disturbance. With respect to Security Devices entered into by Lessor after the execution of this Lease, Lessee's
subordination of this Lease shall be subject to receiving a commercially reasonable non-disturbance agreement (a "Non-Disturbance Agreement")
from the Lender which Non-Disturbance Agreement provides that Lessee's possession of the Premises, and this Lease, including any options to extend
the term hereof, will not be disturbed so long as Lessee is not in Breach hereof and attorns to the record owner of the Premi ses. Further, within 60 days
after the execution of this Lease, Lessor shall, if requested by Lessee, use its commercially reasonable efforts to obtain a Non-Disturbance Agreement
from the holder of any pre-existing Security Device which is secured by the Premises. In the event that Lessor is unable to provide the Non-Disturbance
Agreement within said 60 days, then Lessee may, at Lessee's option, directly contact Lender and attempt to negotiate for the execution and delivery of a
Non-Disturbance Agreement.
30.4 Self-Executing. The agreements contained in this Paragraph 30 shall be effective without the execution of any further documents;
provided, however, that, upon written request from Lessor or a Lender in connection with a sale, financing or refinancing of the Premises, Lessee and
Lessor shall execute such further writings as may be reasonably required to separately document any subordination, attornment and/or Non-Disturbance
Agreement provided for herein.
31. Attorneys' Fees. If any Party or Broker brings an action or proceeding involving the Premises whether founded in tort, contract or equity, or
to declare rights hereunder, the Prevailing Party (as hereafter defined) in any such proceeding, action, or appeal thereon, s hall be entitled to reasonable
attorneys' fees. Such fees may be awarded in the same suit or recovered in a separate suit, whe ther or not such action or proceeding is pursued to
decision or judgment. The term, "Prevailing Party" shall include, without limitation, a Party or Broker who substantially obtains or defeats the relief
sought, as the case may be, whether by compromise, settlement, judgment, or the abandonment by the other Party or Broker of its claim or defense.
The attorneys' fees award shall not be computed in accordance with any court fee schedule, but shall be such as to fully reimburse all attor neys' fees
reasonably incurred. In addition, Lessor shall be entitled to attorneys' fees, costs and expenses incurred in the preparation and service of notices of
Default and consultations in connection therewith, whether or not a legal action is subsequently commenced in co nnection with such Default or resulting
Breach ($200 is a reasonable minimum per occurrence for such services and consultation).
32. Lessor's Access; Showing Premises; Repairs. Lessor and Lessor's agents shall have the right to enter the Premises at any time, in the
case of an emergency, and otherwise at reasonable times after reasonable prior notice for the purpose of showing the same to prospective purchasers,
lenders, or tenants, and making such alterations, repairs, improvements or additions to the Premise s as Lessor may deem necessary or desirable and
the erecting, using and maintaining of utilities, services, pipes and conduits through the Premises and/or other premises as long as there is no material
adverse effect on Lessee's use of the Premises. All such activities shall be without abatement of rent or liability to Lessee.
33. Auctions. Lessee shall not conduct, nor permit to be conducted, any auction upon the Premises.
34. Signs. Lessor may place on the Premises ordinary "For Sale" signs at any time and ordinary "For Lease" signs during the last 6 months of
the term hereof. Except for ordinary "for sublease", signs Lessee shall not place any sign upon the Premises without Lessor's prior written consent. All
signs must comply with all applicable laws.
35. Termination; Merger. Unless specifically stated otherwise in writing by Lessor, the voluntary or other surrender of this Lease by Lessee, the
mutual termination or cancellation hereof, or a termination hereof by Lessor for Breach by Lessee, shall automatically terminate any sublease or lesser
estate in the Premises; provided, however, that Lessor may elect to continue any one or all existing subtenancies . Lessor's failure within 10 days
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following any such event to elect to the contrary by written notice to the holder of any such lesser interest, shall constitute Lessor's election to have such
event constitute the termination of such interest.
36. Consents. All requests for consent shall be in writing. Except as otherwise provided herein, wherever in this Lease the consent of a Party is
required to an act by or for the other Party, such consent shall not be unreasonably withheld or delayed . Lessor's actual reasonable costs and expenses
(including but not limited to architects', attorneys', engineers' and other consultants' fees) incurred in the consideration of, or response to, a request by
Lessee for any Lessor consent, including but not limited to consents to an assignment, a subletting or the presence or use of a Hazardous Substance,
shall be paid by Lessee upon receipt of an invoice and supporting documentation therefor. Lessor's consent to any act, assignment or subletting shall
not constitute an acknowledgment that no Default or Breach by Lessee of this Lease exists, nor shall such consent be deemed a waiver of any then
existing Default or Breach, except as may be otherwise specifically stated in writing by Lessor at the time of such consent . The failure to specify herein
any particular condition to Lessor's consent shall not preclude the imposition by Lessor at the time of consent of such further or other conditions as are
then reasonable with reference to the particular matter for which consent is being given . [In the event that] either Party disagrees with any determination
made by the other hereunder and reasonably requests the reasons for such determination, the determining party shall furnish its reasons in writing and
in reasonable detail within 10 business days following such request.
37. [INTENTIONALLY LEFT BLANK].
38. Quiet Possession. Subject to payment by Lessee of the Rent and performance of all of the covenants, conditions and provisions on
Lessee's part to be observed and performed under this Lease, Lessee shall have quiet possession and quiet enjoyment of the Premises during the term
hereof.
39. Security Measures. Lessee hereby acknowledges that the Rent payable to Lessor hereunder does not include the cost of guard service or
other security measures, and that Lessor shall have no obligation whatsoever to provide same. Lessee assumes all responsibility for the protection of
the Premises, Lessee, its agents and invitees and their property from the acts of third parties.
40. Reservations. Lessor reserves to itself the right, from time to time, to grant, without the consent or joinder of Lessee, such easements, rights
and dedications that Lessor deems necessary, and to cause the recordation of parcel maps and restrictions, so long as such ea sements, rights,
dedications, maps and restrictions do not unreasonably interfere with the use of the Premises by Lessee . Lessee agrees to sign any documents
reasonably requested by Lessor to effectuate any such easement rights, dedication, map or restrictions.
41. Performance Under Protest. If at any time a dispute shall arise as to any amount or sum of money to be paid by one P arty to the other
under the provisions hereof, the Party against whom the obligation to pay the money is asserted shall have the right to make payment "under protest"
and such payment shall not be regarded as a voluntary payment and there shall survive the right on the part of said Party to institute suit for recovery of
such sum. If it shall be adjudged that there was no legal obligation on the part of said Party to pay such sum or any part thereof, sai d Party shall be
entitled to recover such sum or so much thereof as it was not legally required to pay. A Party who does not initiate suit for the recovery of sums paid
"under protest" within 6 months shall be deemed to have waived its right to protest such payment.
42. Authority; Multiple Parties; Execution.
(a) If either Party hereto is a corporation, trust, limited liability company, partnership, or similar entity, each individual
executing this Lease on behalf of such entity represents and warrants that he or she is duly authorized to execute and delive r this Lease on its behalf.
Each Party shall, within 30 days after request, deliver to the other Party satisfactory evidence of such authority.
(b) If this Lease is executed by more than one person or entity as "Lessee", each such person or entity shall be jointly and
severally liable hereunder. It is agreed that any one of the named Lessees shall be empowered to execute any amendment to this Lease, or other
document ancillary thereto and bind all of the named Lessees, and Lessor may rely on the same as if all of the named Lessees had executed such
document.
(c) This Lease may be executed by the Parties in counterparts, each of which shall be deemed an original and all of which
together shall constitute one and the same instrument.
43. Conflict. Any conflict between the printed provisions of this Lease and the typewritten or handwritten provisions shall be controlled by the
typewritten or handwritten provisions.
44. Offer. Preparation of this Lease by either Party or their agent and submission of same to the other Party shall not be deemed an offer to lease
to the other Party. This Lease is not intended to be binding until executed and delivered by all Parties hereto.
45. Amendments. This Lease may be modified only in writing, signed by the Parties in interest at the time of the modification. As long as they do
not materially change Lessee's obligations hereunder.
46. Waiver of Jury Trial. THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO TRIAL BY JURY IN ANY ACTION OR
PROCEEDING INVOLVING THE PROPERTY OR ARISING OUT OF THIS AGREEMENT.
47. No Relocation Benefits; No Payments Re Loss of Goodwill. The parties desire to confirm that Lessee will begin the tenancy and rent the
Premises after the date City acquired the Premises and that Lessee’s occupancy of the Premises is, will be, and shall remain as a “post-acquisition”
occupant pursuant to applicable laws and regulations, including without limitation, [the Uniform Location Assistance and Real Property Acquisition
Policies Act of 1970 (“URA”), 42 U.S.C. 4601–4655, and the implementing regulations thereto set forth in 49 CFR Part 24, (ii) the California Relocation
Assistance Act, Government Code Section 7260, et seq. and the implementing regulations thereto set forth in Title 25, Section 6000, et seq. of the
California Code of Regulations, and (iii) any other benefits, or compensation for moving and for property interests (including without limitation goodw ill
and furnishings, fixtures and equipment, and moving expenses) (together, “Relocation Law”)]. Lessee agrees and acknowledges that, without regard to
the time or circumstances associated with the cessation of the Term or the use of the Premises by Lessee, Lessee shall have no right to relocation
assistance or benefits arising from the dispossession of the Lessee or such person or persons regardless of the circumstances thereof (including without
limitation with respect to any improvements made to the Premises) pursuant to the relocation law or other review. Lessee waives any rights to relocation
benefits and/or relocation advisory assistance in connection with the use of the Premises or the cessation of use of the Premises. The provisions of this
Section 47 are a material part of this Lease and, but for such provisions, Landlord would not have entered into this Lease. Lessee further agrees that,
without regard to whether the possession of the Lessee under this Lease is terminated at any time hereunder, Lessee shall not be entitled to receive any
compensation for loss of goodwill; Lessee waives any rights to such remuneration.
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LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND
BY THE EXECUTION OF THIS LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT,
AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT
AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE PREMISES.
(Signatures on Following Page)
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The parties hereto have executed this Lease as of the Commencement Date.
“PARTIES”
CITY OF SAN BERNARDINO, a municipal corporation
and charter
By:
Andrea M. Miller
City Manger
ATTEST:
City Clerk
TRANS AMERICA AUTO LOGISTICS, LLC, a California
limited liability company
By:
Name:
Its:
[intentionally left blank]
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EXHIBIT A
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EXHIBIT A
Page 1 of 1
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EXHIBIT A
MAP OF PREMISES
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EXHIBIT B
DESCRIPTION OF INGRESS AND EGRESS ROUTES
FOR DELIVERY AND SHIPPING OF STORED AUTOMOBILES
The Lessee may only use the Premises for any of it business operations, with the only exception of incidental access for deli very
and distribution of automobiles. Specifically, the staging, loading and unloading of any trucks or similar vehicles used to d eliver
and/or ship automobiles to and from the Premises associated with Tenant’s business operations shall only occur within the
boundaries of the Premises and shall not occur on any of Lessor’s property that is adjacent to the Premises, or any public st reet
or right-of-way. Lessee’s access points to the Premises are limited to three (3) currently existing signalized intersections
providing access to the former Carousel Mall surface parking area located at: i) “G” Street near the Fairview Ford dealership on
the west; ii) the intersection of 4th and “G” Streets on the north; and iii) the intersection of 2nd and “F” Streets on the south. No
other entry points are permitted.
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EXHIBIT C
PLAN FOR SECURITY FENCING AND ACCESS GATES FOR THE PREMISES
Lessee’s perimeter security fencing and access gate program shall comply with all applicable Fire Department standards
including, but not limited to, a Knox-style rapid access system. Lessee’s plan for installation of security fencing and gates must
be approved by the City prior to installation.
Lessee shall maintain the security fencing and access gates in a good commercially reasonable condition throughout the Term.
Any graffiti or vandalism that may occur during the Term shall be removed and/or repai red within one business day of its
occurrence or notice by the City.
Lessee shall install and maintain in a good commercially reasonable condition an opaque fence blocking system similar to the
“100 Series Trutech Fabric” on all of the perimeter security fencing and access gates
(http://www.fencescreen.com/Products/100-Series-FenceBlock.aspx). The type and color of the fence blocking system shall be
approved by the City prior to installation.
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Packet Pg. 85 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations Award.REPORT (5668 : Award of Construction Contract for Pavement
This project is the first of three street rehabilitation projects for FY 2017/18. It originally
consisted of eleven street segments, but had to be reduced to ten street segments as
follows:
Street Segment
1. Sterling Avenue between Date Place and Marshall Blvd.
2. California Street between Highland Avenue and Porter Street
3. Tippecanoe Avenue between Vine Street and 9th Street
4. Irvington Avenue between Chestnut Avenue and Palm Avenue
5. Baseline Street between Canyon Road to Conejo Drive
6. Highland Avenue between SR 259 and H Street
7. Highland Avenue between "H" Street and "G" Street
8. Park Drive between Morgan Road and Loyola Drive
9. Highland Avenue between Sterling Avenue and Guthrie Avenue
10. Windsor Drive between Park Drive and Morgan Road
Magnolia Drive between 48th Street and Reservoir Street was removed from the project
because the street is in such a poor condition that it requires complete removal and
replacement. The east half is located within County boundaries and the County has not
agreed to participate in a cooperative project to remove and replace this street. Staff is
studying alternative means of repairing this street and may seek participation from the
County in a future project.
Project 13194 was advertised for public bidding on May 25, 2018, and May 30, 2018, in
the San Bernardino County Sun Newspaper, F. W. Dodge, Construction Bid Board,
High Desert Plan Room, San Diego Daily Transcript, Sub-Hub Online Plan Room, Reed
Construction Data, Bid America Online, Construction Bid Source, Bid Ocean, the City’s
web sites, and the San Bernardino Area Chamber of Commerce.
Sealed bids were received and opened on June 14, 2018; the City received two bids as
follows:
Bidder Total
Matich Corporation $2,479,000.00
All American Asphalt $2,677,700.00
The lowest apparent bidder is Matich Corporation of San Bernardino, California, with a
base bid of $2,479,000. The City has reviewed the two bid packages and confirmed
Matich Corporation is the lowest responsible and responsive bidder. If awarded by the
City Council, construction is anticipated to begin in November 2018, and to be
substantially complete by January 2018.
7/25/2018 3:14 PM
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Packet Pg. 86 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations Award.REPORT (5668 : Award of Construction Contract for Pavement
2018-2019 Goals and Objectives
This project is consistent with Goal No 4: Ensure Development of a Well-Planned
Balanced and Sustainable City. This project will contribute to well-maintained streets for
sustained economic growth.
Fiscal Impact
The estimated project costs and available funding in the FY 2018/19 Capital Projects
Budget are summarized in the table below:
Estimated Project Cost
Base Bid Amount $2,479,000
Construction Contingency $ 247,000
Engineering and Inspections $ 174,000
Total Contract Work $2,900,000
Funding
Fund 129 – Measure I $2,100,000
Budget needs to be amended to appropriate
funds from Measure I to the project. $ 800,000
Total Project Funding $2,900,000
Based on the above, staff is requesting that the Mayor and City Council authorize and
amendment the FY 2018/19 budget in the amount of $800,000 from the Measure I
Fund. The balance of needed funds has been appropriated with the FY 2018/19 budget
and the additional amount is required to award the full project amount. Sufficient
resources exist in the Measure I Fund to make this award.
Also on this evening’s agenda are two (2) cooperative agreements with the City of
Highland and the County of San Bernardino. On street segments for Sterling Avenue,
Tippecanoe Avenue, and Baseline Street, the City of San Bernardino has a joint right-
of-way with the County of San Bernardino and the City of Highland. After the
completion of the project, they will reimburse the City its fair share. The City of
Highland’s share is $110,805 and the County of San Bernardino’s share is $390,000 for
a total of $500,805, which will be reimbursed to the City after project completion and
credited back to the Measure I Fund.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino,
California, approve Resolution No. 2018-199 awarding a construction contract to Matich
Corporation in the amount of $2,479,000 and authorizing a construction contingency in
the amount of $247,000 for a total contract amount of $2,726,000; authorizing the
7/25/2018 3:14 PM
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Packet Pg. 87 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations Award.REPORT (5668 : Award of Construction Contract for Pavement
Finance Director to amend FY 2018/19 budget to allocate Measure I Funds to the
project; authorizing the City Manager or designee to sign all necessary documents; and
authorizing the City Manager to expend the contingency fund, if necessary, to complete
the project.
Attachments
Attachment 1 Resolution awarding Contract for Pavement Rehabilitation at Ten
Locations
Attachment 2 Bid Opening Report & Bid Tabulation for Pavement Rehabilitation
at Ten Locations
Attachment 3 Lowest Bid Form Matich Corporation
Attachment 4 Pavement Rehabilitation Locations
Attachment 5 Agreement
Ward: All
Synopsis of Previous Council Actions:
Synopsis of Previous Council Actions:
06- 21-2017 Resolution No. 2017- 118 adopted the City’s final budget document for Fiscal Year 2017/2018.
7/25/2018 3:14 PM
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Packet Pg. 88 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations Award.REPORT (5668 : Award of Construction Contract for Pavement
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RESOLUTION NO.2018-199
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, APPROVING A CONSTRUCTION CONTRACT
WITH MATICH CORPORATION, IN THE AMOUNT OF $2,479,000 AND
AUTHORIZING A CONSTRUCTION CONTINGENCY IN THE AMOUNT OF
$247,000 FOR A TOTAL CONTRACT AMOUNT NOT TO EXCEED $2,726,000;
AUTHORIZING THE FINANCE DIRECTOR TO AMEND THE FY 2018/19
ADOPTED BUDGET TO ALLOCATE MEASURE I FUNDS TO THE PROJECT;
AUTHORIZING THE CITY MANAGER OR DESIGNEE TO SIGN ALL
NECESSARY DOCUMENTS; AND AUTHORIZING THE CITY MANAGER TO
EXPEND THE CONTINGENCY FUND, IF NECESSARY, TO COMPLETE THE
PROJECT
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. Matich Corporation, 1596 Harry Sheppard Boulevard, San Bernardino,
California 92408 is the lowest responsive responsible bidder for Pavement Rehabilitation at
Ten Locations per Plan No. 13194. A contract is awarded to said bidder in a total amount of
$2,479,000.00 with a contingency amount of $247,900.00 but such contract shall be effective
only upon being fully executed by both parties. All other bids, therefore, are hereby rejected.
The City Manager or designee is hereby authorized and directed to execute said contract on
behalf of the City. The City Manager or designee is hereby authorized and directed to execute
said contingency not to exceed $247,900.00 on behalf of the City. A copy of the contract is
on file in the office of the City Clerk and incorporated herein by reference as though fully set
forth at length.
SECTION 2. The Director of Finance is authorized to amend FY 2018/19 Budget to
allocate Measure I Funds to the project.
SECTION 3. The Director of Finance is authorized and directed to issue a Purchase
Order in the amount of $2,479,000 to Matich Corporation for this work.
SECTION 4. 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
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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 act or
course The authorization to execute this contract is rescinded if the parties to the contract fail
to execute it and return the fully executed contract to the Office of the City Clerk 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, CALIFORNIA, APPROVING A CONSTRUCTION CONTRACT
WITH MATICH CORPORATION, IN THE AMOUNT OF $2,479,000 AND
AUTHORIZING A CONSTRUCTION CONTINGENCY IN THE AMOUNT OF
$247,000 FOR A TOTAL CONTRACT AMOUNT NOT TO EXCEED $2,726,000;
AUTHORIZING THE FINANCE DIRECTOR TO AMEND THE FY 2018/19
ADOPTED BUDGET TO ALLOCATE MEASURE I FUNDS TO THE PROJECT;
AUTHORIZING THE CITY MANAGER OR DESIGNEE TO SIGN ALL
NECESSARY DOCUMENTS; AND AUTHORIZING THE CITY MANAGER TO
EXPEND THE CONTINGENCY FUND, IF NECESSARY, TO COMPLETE THE
PROJECT
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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Pavement Rehabilitation Locations
Sterling Ave btw Highland Ave and Date Place
California St btw Highland Avee and Porter St
Tippecanoe Ave between Vine St and 9th St
Irvington Ave btw Chestnut Ave to Palm Ave
Baseline St btw Canyon Rd to Conejo Dr
Highland Ave btw SR 259 and H St
Highland Ave between "H" Stand "G" St
Magnolia Dr btw 48th St to Reservoir St
Park Dr between Morgan Rd to Loyola Dr
Highland Ave btw Sterling Ave to Guthrie Ave
Windsor Dr between Park Dr to Morgan Rd
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Packet Pg. 134 Attachment: PW.Co-op Agreem - County for Street Rehabilitation.REPORT (5669 : Cooperative Agreement with the County of San Bernardino
Discussion
City staff met with County staff to discuss terms of a cooperative project to share the
cost of rehabilitation of the two street segments. County staff concurred with the City’s
project and agreed to prepare the cooperative agreement.
In general the cooperative project consists of:
1. Rehabilitation of the pavement on Sterling Avenue between Date Place and
Marshall Boulevard and installation of access ramps to meet the current
standards of the Americans with Disabilities Act (ADA).
2. Rehabilitation of the pavement on Baseline Street between Canyon Road and
Conejo Drive and installation of access ramps to meet the current standards
of the ADA.
A detailed description of work to be done on each project is included in Exhibit A,
attached to the Cooperative Agreement. Maps showing the location of each project are
attached as Exhibit B. San Bernardino’s cost share and the fiscal year of
implementation are shown in Exhibit C.
2018-2019 Goals and Objectives
This project is consistent with Goal No. 4: Ensure Development of a Well-Planned
Balanced and Sustainable City. This project will contribute to well-maintained streets for
sustained economic growth.
Fiscal Impact
The cost to the City of San Bernardino for these two street segments in FY 2018/19 is
estimated to be approximately $1,390,000; however, the County will reimburse
approximately $390,000 of that amount upon completion of the project. In addition, the
City of Highland will reimburse $110,805 as its share of the cost of the rehabilitation of
Tippecanoe Avenue. Sufficient funds from the Measure I (129) account have been
allocated in the FY 2018/19 budget (as amended) to cover the cost of this Cooperative
Agreement for FY 2018/19. See Attachment A for a cost and budget summary.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino,
California, adopt the Resolution No. 2018-216 approving a Cooperative Agreement with
the County of San Bernardino for Rehabilitation of Sterling Avenue and Base Line
Street.
Attachments
Attachment 1 Cost and Budget Summary
Attachment 2 Resolution; Exhibit A - Cooperative Agreement for Rehabilitation of
Sterling Avenue and Base Line Street
Ward: 1, 2, 4, 7
Synopsis of Previous Council Actions: None
July 25, 2018 3:11 PM
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RESOLUTION NO. 2018-216
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, APPROVING A COOPERATIVE AGREEMENT WITH
THE COUNTY OF SAN BERNARDINO FOR REHABILITATION OF STERLING
AVENUE AND BASE LINE STREET
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
SECTION 1. The City Manager or designee is hereby authorized and directed to execute
on behalf of the City a Cooperative Agreement with the County of San Bernardino for
Rehabilitation of Sterling Avenue and Base Line Street attached hereto as Exhibit A and made a
part hereof.
SECTION 2. The authorization to execute the above-referenced Agreement is rescinded
if it is not executed by all parties and returned to the office of the City Clerk within ninety (90)
days of the passage of this Resolution.
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Packet Pg. 136 Attachment: PW.Co-op Agreem - County for Street Rehabilitation.RESOLUTION (5669 : Cooperative Agreement with the County of San
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, APPROVING A COOPERATIVE AGREEMENT WITH
THE COUNTY OF SAN BERNARDINO FOR REHABILITATION OF STERLING
AVENUE AND BASE LINE STREET
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. 137 Attachment: PW.Co-op Agreem - County for Street Rehabilitation.RESOLUTION (5669 : Cooperative Agreement with the County of San
EXHIBIT A
Public Works
Department Contract Representative Sundaramoorthy (Sri) Srirajan,
P.E., Chief - Transportation
Planning Division
Telephone Number (909) 387-8166
Contractor City of San Bernardino
Contractor Representative Alex Qishta, P.E.
Telephone Number (909) 384-5019
Contract Term 7/24/2018 – 12/31/2019
Original Contract Amount $390,000
Amendment Amount
Total Contract Amount $390,000
Cost Center 6650002000
IT IS HEREBY AGREED AS FOLLOWS:
WHEREAS, the County of San Bernardino (COUNTY) and the City of San Bernardino (CITY)
(COUNTY and CITY are also each referred to herein as “Party” and collectively referred to herein as “Parties”)
desire to cooperate and jointly participate in pavement rehabilitation and an American with Disabilities Act
(ADA) curb ramp and other related improvements project on Sterling Avenue and Baseline Street as
described in Exhibit “A”, which is attached hereto and incorporated herein by this reference (PROJECT); and
WHEREAS, the PROJECT is located in the unincorporated area of the COUNTY and the incorporated
area of the CITY; and
WHEREAS, California Streets and Highways Code section 1710 authorizes COUNTY to contract with
CITY for CITY’s maintenance, construction or repair of COUNTY highways, the cost being paid by COUNTY;
and
WHEREAS, COUNTY determines that it is necessary for the more efficient maintenance, construction,
or repair of the COUNTY roads identified herein to contract with CITY for the PROJECT; and
WHEREAS, it is anticipated that the funding for the design and construction phase of the PROJECT will
be from COUNTY’s Gas Tax funds and CITY Measure I funds; and
WHEREAS, the total estimated cost for the PROJECT is $1,390,000; and
Contract Number
SAP Number
Standard Contract Page 1 of 7
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WHEREAS, COUNTY’s share of cost is estimated at $390,000 (28.06% of PROJECT) and CITY’s
share of cost is estimated at $1,000,000 (71.94 % of PROJECT) as set forth in Exhibit “A”, attached hereto
and incorporated herein by this reference; and
WHEREAS, the above-described costs are proportioned based on work done in each Party’s
jurisdiction; and
WHEREAS, COUNTY and CITY desire to set forth responsibilities and obligations of each as they
pertain to such participation and to the design, construction, and funding of the PROJECT.
NOW, THEREFORE, IT IS MUTUALLY AGREED as follows:
1.0 CITY AGREES TO:
1.1 Act as the Lead Agency in the design, construction, construction engineering, inspection and
California Environmental Quality Act (CEQA) compliance (Public Resources Code section
21000 et seq.) of the PROJECT. Right-of-way activities are not anticipated for the PROJECT
and therefore are not part of this Agreement.
1.2 Provide plans and specifications and all necessary construction engineering for the PROJECT
to COUNTY, for COUNTY's prior review and approval pursuant to paragraph 2.3, below.
1.3 Construct the PROJECT by contract in accordance with the plans and specifications of CITY,
which have been reviewed and approved by COUNTY pursuant to paragraphs 1.2 and 2.3, to
the satisfaction of and subject to concurrence of COUNTY.
1.4 Arrange for relocation of all utilities which interfere with construction of the PROJECT within the
entire PROJECT limits, pursuant to paragraph 3.9 below.
1.5 Obtain a no-cost permit from COUNTY for work within the COUNTY’s right-of -way, which permit
approval shall not be unreasonably withheld, delayed or conditioned.
1.6 Advertise, award, administer, and initially fund the construction of the PROJECT, in accordance
with the provisions of California Public Contract Code applicable to cities and require, as well as
reasonably enforce, CITY’s contractors to comply with all applicable laws and regulations,
including Labor Code sections 1720 et seq. and 1770 et seq. that concern the payment of
prevailing wages. CITY shall indemnify, defend (with counsel reasonably approved by
COUNTY), and hold harmless COUNTY and its officers, employees, volunteers, and agents as
provided in paragraphs 3.2 and 3.4, below.
1.7 CITY shall require all contractors and vendors working on the PROJECT to have appropriate
and adequate insurance coverage for the mutual protection and benefit of the Parties. Except
for Workers' Compensation, Errors and Omissions and Professional Liability policies, CITY shall
require and ensure that all CITY contractors/subcontractors for the PROJECT shall have
insurance policies that contain endorsements naming the COUNTY 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 COUNTY to vicarious liability but shall allow coverage for the
COUNTY 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.
1.8 Reserved.
1.9 Provide adequate inspection of all items of work performed under the construction contract(s)
with CITY's contractors or subcontractors for the PROJECT and maintain adequate records of
inspection and materials testing for review by COUNTY. CITY shall provide copies of any
records of inspection and materials testing to COUNTY within ten (10) business days of CITY's
receipt of written demand from COUNTY for such records. This shall be included as a
PROJECT cost.
1.10 Be responsible for its proportionate share of the costs of the PROJECT. The full cost of the
PROJECT shall include the cost of design, construction, construction engineering, inspection
and CEQA compliance for the PROJECT. CITY’s proportionate share of cost for the PROJECT
is estimated at $1,000,000 (71.94 % of PROJECT, see Exhibit A). CITY shall be responsible for
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the sum of $1,000,000, plus its share of any PROJECT cost increases pursuant to paragraphs
3.7, 3.9 and 3.11 below.
1.11 Upon CITY’s and COUNTY’s acceptance of the PROJECT, submit to the COUNTY an itemized
accounting of actual PROJECT costs incurred by CITY and statement for COUNTY’s
proportionate share of PROJECT costs, as provided herein. Costs shall be amended following
CITY and COUNTY acceptance of the final construction cost accounting. In no event shall
COUNTY’s proportionate share of cost of PROJECT exceed $487,500 (which is COUNTY’s
estimated share of cost for PROJECT plus twenty-five percent) absent a written amendment to
this Agreement approved pursuant to paragraph 3.16.
1.12 Include compliance with any applicable requirements of CEQA, as well as completing the
required CEQA documentation.
1.13 Accept all payments from COUNTY via electronic funds transfer (EFT) directly deposited into
the CITY’s designated checking or other bank account. The CITY shall promptly comply with
directions and accurately complete forms provided by COUNTY required to process EFT
payments.
2.0 COUNTY AGREES TO:
2.1 Pay to the CITY its proportionate share of the cost of the PROJECT. The full cost of the
PROJECT shall include the cost of PROJECT design, construction, construction engineering,
inspection and CEQA compliance. COUNTY’s proportionate share of costs for the PROJECT is
estimated at $390,000 (28.06% of PROJECT, see Exhibit A).
2.2 Pay to CITY, on a reimbursement basis, its proportionate share of PROJECT costs, including its
jurisdictional share of any PROJECT cost increases pursuant to paragraphs 3.7, 3.9 and 3.11
below, within ninety (90) calendar days after receipt of an itemized statement as set forth in
paragraph 1.11 of this Agreement, setting forth all actual PROJECT costs incurred by CITY,
together with adequate documentation of said expenditures. In no event shall COUNTY’s
proportionate share of cost of PROJECT exceed $487,500 (which is COUNTY’s estimated
share of cost for the PROJECT plus twenty-five percent) absent a written amendment to this
Agreement approved pursuant to Paragraph 3.16.
2.3 Provide a no-cost permit to the CITY for its work in COUNTY’s right-of-way, which permit
approval shall not be unreasonably withheld, delayed or conditioned.
2.4 Review and approve the plans and specifications of the PROJECT pursuant to paragraph 2.3,
above, which review and approval shall not be unreasonably withheld, delayed or conditioned.
3.0 IT IS MUTUALLY AGREED:
3.1 After CITY’s and COUNTY’s acceptance of completed PROJECT, the COUNTY shall be
responsible for performing any maintenance for the PROJECT that is in the County Maintained
Road System and within the COUNTY’s jurisdictional territory that is not incorporated into the
CITY and the CITY shall be responsible for performing any maintenance for the PROJECT that
is in the CITY’s incorporated area.
3.2 CITY agrees to indemnify, defend (with counsel approved by COUNTY) and hold harmless the
COUNTY, its officers, employees, agents, and volunteers from any and all claims, actions, or
losses, damages, and/or liability resulting from CITY’s negligent acts or omissions that arise
from CITY’s performance of its obligations under this Agreement.
3.3 COUNTY agrees to indemnify and hold harmless the CITY, its officers, employees, agents, and
volunteers from any and all claims, actions, or losses, damages, and/or liability resulting from
COUNTY’s negligent acts or omissions which arise from COUNTY’s performance of its
obligations under this Agreement.
3.4 In the event the CITY and/or the COUNTY is found to be comparatively at fault for any claim,
action, loss or damage which results from their respective obligations under the Agreement, the
CITY and/or COUNTY shall indemnify the other to the extent of its comparative fault.
3.5 In the event of litigation arising from this Agreement, each Party to the Agreement shall bear its
own costs, including attorney(s) fees. This paragraph shall not apply to the costs or attorney(s)
fees relative to paragraphs 3.2, 3.3 and 3.4.
3.6 CITY and COUNTY are authorized self-insured public entities for purposes of Professional
Liability, Automobile Liability, General Liability, and Workers’ Compensation and warrant that
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through their programs of self-insurance, they have adequate coverage or resources to protect
against liabilities arising out of the performance of the terms, conditions or obligations of this
Agreement.
3.7 The Parties acknowledge that final PROJECT costs may ultimately exceed current estimate of
PROJECT costs. Any additional PROJECT costs resulting from increased bid prices, change
orders, or arising from unforeseen site conditions, including Utility relocation (but not from
requested additional work by the COUNTY or CITY, which is addressed in paragraph 3.8 below)
over the estimated total of PROJECT cost of $1,390,000 (which is the sum of $1,000,000 from
CITY and $390,000 from COUNTY), shall be borne by each Party in proportion to where the
work actually lies (based on jurisdiction), as part of the Parties' respective obligations to pay the
cost for the PROJECT.
3.8 If either CITY or COUNTY requests additional work that is beyond the scope of the original
PROJECT, and not considered by all parties to be a necessary part of the PROJECT, said
work, if approved by all parties, will be paid solely by the agency requesting the work.
3.9 In the case where one of the Parties owns a utility that needs to be relocated for a PROJECT
and that Party does not have prior rights for that utility, it will be the sole responsibility of that
Party to relocate the utility at that Party’s cost. This shall not be included as a PROJECT cost.
In the case that a utility relocation is determined to be a PROJECT cost based on that utility
having prior rights, the relocation of the utility will be included as a project cost for which the
COUNTY and CITY will be responsible for funding within their jurisdictional boundaries.
3.10 CITY shall notify COUNTY of the bids received and the amounts thereof. Within ten (10)
business days thereafter, CITY and COUNTY shall determine the cost of the PROJECT. In the
event that either Party intends to cancel this Agreement based upon the bids or amount thereof,
said Party shall notify the other Party prior to the awarding of a contract so as to avoid
detrimental reliance by any Party, contractor or potential contractor.
3.11 If after opening bids for the PROJECT, it is found that a cost overrun of 25% or less of the
estimated PROJECT costs will occur, CITY may award the contract.
3.12 If, upon opening of bids, it is found that a cost overrun exceeding 25% of the estimated
PROJECT costs will occur, CITY shall not award any contracts for the PROJECT. Rather CITY
and COUNTY shall endeavor to agree upon an alternative course of action, including re-bidding
of the PROJECT. If, after thirty (30) calendar days, an alternative course of action is not
mutually agreed upon in writing, this Agreement shall be deemed to be terminated by mutual
consent.
3.13 In the event that change orders are required during the course of the PROJECT, said change
orders must be in form and substance as set forth in attached Exhibit “B” of this Agreement and
approved by both CITY and COUNTY. Contract change order forms will be delivered by fax
and must be returned within fifteen (15) business days. The COUNTY shall not unreasonably
withhold, delay or condition approval of change orders. If a COUNTY disapproved or modified
change order is later found to be a cost of the PROJECT, then the COUNTY shall be
responsible for any costs, awards, judgments or settlements associated with the disapproval or
modified change order. For COUNTY, contract change orders (Exhibit B) must be approved by
COUNTY in accordance with paragraph 2.3, above.
3.14 This Agreement may be cancelled upon thirty (30) calendar days advance written notice of
either Party, provided however, that neither Party may cancel this Agreement after CITY awards
a contract to construct the PROJECT. In the event of cancellation as provided herein, including
termination pursuant to paragraph 3.10 or 3.12 above, all PROJECT costs required to be paid
by the Parties prior to the effective date of cancellation shall be paid by the Parties in the same
proportion to their contribution for the PROJECT. The Parties recognize and agree that the
provisions governing utility relocation and construction are dependent upon the Parties first
satisfying CEQA. As provided in this paragraph, the Agreement may be cancelled with or
without cause, before, during or after CEQA review/approval.
3.15 Except as provided in Paragraph 3.14, and except for the Parties' operation, maintenance and
indemnification obligations contained herein (which shall survive Agreement termination), this
Agreement shall terminate upon completion of the PROJECT and payment of final billing by the
COUNTY for its proportional share of the PROJECT costs.
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3.16 This Agreement contains the entire agreement of the Parties with respect to subject matter
hereof, and supersedes all prior negotiations, understandings, or agreements. No supplement,
modification, or amendment of this Agreement shall be binding unless executed in writing and
signed by both Parties.
3.17 This Agreement shall be governed by the laws of the State of California. Any action or
proceeding between CITY and COUNTY concerning the interpretation or enforcement of this
Agreement, or which arises out of or is in any way connected with this Agreement or the
PROJECT, shall be instituted and tried in the appropriate state court, located in the County of
San Bernardino, California.
3.18 Time is of the essence for each and every provision of this Agreement.
3.19 Since the Parties or their agents have participated fully in the preparation of this Agreement, the
language of this Agreement shall be construed simply, according to its fair meaning, and not
strictly for any or against any party. Any term referencing business days shall be deemed
COUNTY business days. The captions of the various articles and paragraphs are for
convenience and ease or reference only, and do not define, limit, augment, or describe the
scope, content, or intent of this Agreement.
3.20 No waiver of any default shall constitute a waiver of any other default or breach, whether of the
same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given
or performed by a party shall give the other party any contractual rights by custom, estoppel, or
otherwise.
3.21 If a court of competent jurisdiction declares any portion of this Agreement invalid, illegal, or
otherwise unenforceable, the remaining provisions shall continue in full force and effect, unless
the purpose of this agreement is frustrated.
3.22 This Agreement may be signed in counterparts, each of which shall constitute an original.
3.23 This Agreement will be effective on the date it is signed by both Parties and shall conclude upon
satisfaction of the terms identified in paragraph 3.15 or December 31, 2019 (whichever occurs
first).
3.24 The Recitals are incorporated into the body of this Agreement.
THIS AGREEMENT shall inure to the benefit of and be binding upon the successors and assigns of both
Parties.
IN WITNESS WHEREOF, the Parties to these presents have hereunto set their hands.
FOR COUNTY USE ONLY
Approved as to Legal Form Reviewed for Contract Compliance Reviewed/Approved by Department
Scott M. Runyan, Deputy County Counsel Mohammad Ali, P.E., Chief Kevin Blakeslee, Department Head
COUNTY OF SAN BERNARDINO (Print or type name of corporation, company, contractor, etc.)
By
Robert A. Lovingood, Chairman, Board of Supervisors (Authorized signature - sign in blue ink)
Dated:
Name Andrea M. Miller
SIGNED AND CERTIFIED THAT A COPY OF THIS (Print or type name of person signing contract)
DOCUMENT HAS BEEN DELIVERED TO THE
CHAIRMAN OF THE BOARD Title City Manager
Laura H. Welch
Clerk of the Board of Supervisors
of the County of San Bernardino
(Print or Type)
By Dated:
Deputy Address 290 North D Street
San Bernardino, CA 92401
Revised 10/18/17 Page 5 of 7
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Date Date Date
EXHIBIT A
ESTIMATE OF PROJECT COSTS
FOR CITY OF SAN BERNARDINO/COUNTY OF SAN BERNARDINO
FOR THE PAVEMENT RECONSTRUCTION
IN THE SAN BERNARDINO AREA
DESCRIPTION LIMITS
TOTAL
COST OF
PROJECT
COUNTY OF
SAN
BERNARDINO
SHARE
% OF
PROJECT
COUNTY
CITY OF SAN
BERNARDINO
% OF
PROJECT
CITY
Mill and
Overlay
Sterling Avenue
(Date Place north to
Marshall Boulevard)
$740,000 $320,000 43.24% $420,000 56.76 %
Mill and
Overlay
Baseline Street
(Canyon Road east
to Conejo Drive)
$650,000 $70,000 10.77% $580,000 89.23%
TOTAL $1,390,000 $390,000 28.06% $1,000,000 71.94%
Revised 10/18/17 Page 6 of 7
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EXHIBIT B
CONTRACT CHANGE ORDER REVIEW/APPROVAL
PROJECT: STERLING AVENUE (FROM DATE PLACE NORTH TO MARSHALL BOULEVARD) AND
BASELINE STREET (FROM CANYON ROAD EAST TO CONEJO DRIVE)
CITY OF SAN BERNARDINO CONTRACT #
File: XXXXX
Proposed Contract Change Order No. has been reviewed in accordance with the existing agreements with the City
of San Bernardino and County of San Bernardino for the above project and the following shall apply:
DATE OF CITY OF SAN BERNARDINO ACTION: ____/____/____
APPROVED for Implementation with 100% Participation by COUNTY OF SAN BERNARDINO
APPROVED Subject to Comments/Revisions Accompanying This Document
APPROVED With Limited Funding Participation by COUNTY OF SAN BERNARDINO
______% of Actual Cost to be Funded by COUNTY OF SAN BERNARDINO
COUNTY OF SAN BERNARDINO Participation Not to Exceed $ _________________________
DISAPPROVED -Not Acceptable to COUNTY OF SAN BERNARDINO
Note: Approval under any of the above conditions shall in no case be construed as agreement to increase the
total financial participation beyond that prescribed in the existing CITY OF SAN BERNARDINO and COUNTY
agreement without a separate amendment to said agreement. Net increases in costs deriving from this and
previously approved Contract Change Orders shall not cause the total construction costs to exceed the sum of
the authorized contract total and contingency amounts.
Comments, as follows and/or attached, are conditions of the above action? YES NO
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
SIGNED: _______________________________________________
TITLE: _________________________________________________
Distribution:
Signed Original Returned to CITY OF SAN BERNARDINO
Signed Original for COUNTY OF SAN BERNARDINO File
Revised 10/18/17 Page 7 of 7
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SS18-001 11 PAVEMENT REHABILITATION STREET SEGMENTS-ONWARD
CONSTRUCTION COST BREAKDOWN
ATTACHMENT A
Construction Contingencies Project Total
Segment Account Bid 10%Mgmt.Cost
SS12-010 Sterling Ave btw Highland Ave and Date Place 129-160-8619-5504 $526,143.00 $52,423.28 $36,929.76 $615,496.05
SS15-005 California St btw Highland Ave and Porter St 129-160-8019-5504 $191,360.00 $19,066.53 $13,431.48 $223,858.01
SS15-006 Tippecanoe Ave between Vine St and 9th St 129-160-8020-5504 $151,470.00 $15,092.01 $10,631.62 $177,193.63
SS15-008 Irvington Ave btw Chestnut Ave to Palm Ave 129-160-8021-5504 $228,550.00 $22,772.03 $16,041.83 $267,363.86
SS15-009 Baseline St btw Canyon Rd to Conejo Dr 129-160-8022-5504 $502,042.00 $50,021.93 $35,238.12 $587,302.06
SS15-048 Highland Ave btw SR 259 and H St 129-160-8027-5504 $103,570.00 $10,319.40 $7,269.54 $121,158.94
SS15-019 Highland Ave between "H" Stand "G" St 129-160-8023-5504 $135,760.00 $13,526.71 $9,528.94 $158,815.65
SS15-021 Park Dr between Morgan Rd to Loyola Dr 129-160-8025-5504 $266,630.00 $26,566.20 $18,714.65 $311,910.85
SS15-022 Highland Ave btw Sterling Ave to Guthrie Ave 129-160-8026-5504 $183,125.00 $18,246.02 $12,853.47 $214,224.49
SS14-033 Windsor Dr between Park Dr to Morgan Rd 129-160-8018-5504 $190,350.00 $18,965.89 $13,360.59 $222,676.48
$2,479,000.00 $247,000.00 $174,000.00 $2,900,000.00
Net
FY 18/19 *Budget Revised County Highland SbCity
Segment Account Budget Adjustment Budget Share Share Cost
SS12-010 Sterling Ave btw Highland Ave and Date Place 129-160-8619-5504 $566,347.43 $169,792.01 $736,139.44 -$318,556.00 $417,583.44
SS15-005 California St btw Highland Ave and Porter St 129-160-8019-5504 $180,824.20 $61,753.93 $242,578.13 $242,578.13
SS15-006 Tippecanoe Ave between Vine St and 9th St 129-160-8020-5504 $139,519.43 $48,881.00 $188,400.43 -$110,805.00 $77,595.43
SS15-008 Irvington Ave btw Chestnut Ave to Palm Ave 129-160-8021-5504 $132,111.23 $73,755.55 $205,866.77 $205,866.77
SS15-009 Baseline St btw Canyon Rd to Conejo Dr 129-160-8022-5504 $366,971.33 $162,014.36 $528,985.69 -$69,940.00 $459,045.69
SS15-048 Highland Ave btw SR 259 and H St 129-160-8027-5504 $65,467.13 $33,423.15 $98,890.28 $98,890.28
SS15-019 Highland Ave between "H" Stand "G" St 129-160-8023-5504 $97,980.53 $43,811.21 $141,791.74 $141,791.74
SS15-021 Park Dr between Morgan Rd to Loyola Dr 129-160-8025-5504 $127,823.03 $86,044.37 $213,867.40 $213,867.40
SS15-022 Highland Ave btw Sterling Ave to Guthrie Ave 129-160-8026-5504 $230,769.23 $59,096.41 $289,865.64 $289,865.64
SS14-033 Windsor Dr between Park Dr to Morgan Rd 129-160-8018-5504 $141,582.83 $61,428.00 $203,010.82 $203,010.82
$2,049,396.34 $800,000.00 $2,849,396.34 -$388,496.00 -$110,805.00 $2,350,095.34
* Budget adjusted per Council Action on 7/18/18.
SS18-001 11 PAVEMENT REHABILITATION STREET SEGMENTS-ONWARD
BUDGET SUMMARY
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by $120,000 not to exceed the amount of $169,000. This will allow the Solid Waste
division to continue to utilize HF&H Consulting, LLC for the review of issues related to
the solid waste collection service contract and rate adjustments.
Fiscal Impact
Sufficient funding is included and available in the Adopted FY 2018/19 Budget in the
following account: 527-400-0001-5502.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino adopt
Resolution 2018-218 authorizing the first amendment to the Consultant Service
Agreement with HF&H Consulting, LLC, and authorizing the Director of Finance to
increase the Purchase Order No. 2018-987 by $120,000.
Attachments
Attachment 1 – First Amendment to Consultant Services Agreement; Exhibit “A”
Attachment 2 – Original Consultant Services Agreement
Attachment 3 – Resolution
Ward: All
Synopsis of Previous Council Actions:
• None
7/25/2018 1:08 PM
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AMENDMENT NUMBER ONE
TO THE CONTRACTOR SERVICES AGREEMENT
City of San Bernardino and HF&H Consultants, LLC CITY: CITY OF SAN BERNARDINO 290 North “D” Street, 3rd Floor San Bernardino, California 92401 CONTRACTOR: HF&H Consultants, LLC 19200 Von Karman Avenue, Suite 360 Irvine, CA 92314 SERVICES: Solid Waste Consulting Services To be performed by: Laith B. Ezzet, Robert Hilton, John Farnkopf AMOUNT: $169,000 (as amended) EXPIRATION DATE: December 31, 2018 MANAGING DEPARTMENT: Public Works Form Services Agreement Amendment: Rev. 2018-07-16
00060097.1
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AMENDMENT NO. [NUMBER] TO [NAME OF AGREEMENT] Amendment No. One to the Consultant Services, dated as of February 5, 2018 (the “Amendment”), between the City of San Bernardino, a charter city and municipal corporation organized under the Constitution of the State of California (“City”), and HF&H Consultants, LLC, (“Contractor,” and together with City, the “Parties,” and each, a “Party”). WHEREAS, the Parties have entered into an Agreement, dated as of February 5, 2018, to provide Solid Waste Consulting Services (the “Existing Agreement”); and WHEREAS, the Parties hereto desire to amend the Existing Agreement to increase the contract amount on the terms and subject to the conditions set forth herein; and WHEREAS, pursuant to Section 12.12 of the Existing Agreement, the amendment contemplated by the Parties must be contained in a written agreement. NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. Definitions. Capitalized terms used and not defined in this Amendment have the respective meanings assigned to them in the Existing Agreement. 2. Amendments to the Existing Agreement. As of the Effective Date (defined below), the Existing Agreement is hereby amended or modified as follows: Section 4.3 Amount of Compensation is amended to replace the term “FORTY NINE THOUSAND DOLLARS ($49,000)” with “ONE HUNDRED SIXTY NINE THOUSAND DOLLARS ($169,000).” 3. Date of Effectiveness; Limited Effect. This Amendment will become effective as of the date fully executed by the Parties (the “Effective Date”). Except as expressly provided in this Amendment, all of the terms and provisions of the Existing Agreement are and will remain in full force and effect and are hereby ratified and confirmed by the Parties. Without limiting the generality of the foregoing, the amendments contained herein will not be construed as an amendment to or waiver of any other provision of the Existing Agreement or as a waiver of or consent to any further or future action on the part of either Party that would require the waiver or consent of the other Party. On and after the Effective Date, each reference in the Existing Agreement to “this Agreement,” “the Agreement,” “hereunder,” “hereof,” “herein,” or words of like import will mean and be a reference to the Existing Agreement as amended by this Amendment. [Signature Page Follows]
00060097.1 pg. 1 Amendment No. One to Consultant Services Agreement with HF&H Consulting
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IN WITNESS WHEREOF, this Agreement is executed by City and Contractor acting by and through their authorized officers. CITY OF SAN BERNARDINO: HF&H Consulting: Date: _____ / _____ / 2018 Date: _____ / _____ / 2018 _________________________________ By: ________________________________ Andrea M. Miller, City Manager Its: ________________________________ APPROVED AS TO FORM: Gary D. Saenz, City Attorney By: ______________________________
00060097.1 pg. 1 Amendment No. One to Consultant Services Agreement with HF&H Consulting
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RESOLUTION NO. 2018-218
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AUTHORIZING AND DIRECTING THE CITY
MANAGER TO EXECUTE THE FIRST AMENDMENT TO THE
CONSULTANT SERVICES AGREEMENT WITH HF&H CONSULTING, LLC
FOR AS-NEEDED CONSULTING SERVICES RELATED TO SOLID WASTE
COLLECTIONS SERVICE RATES
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
SECTION 1. The City Manager is hereby authorized and directed to execute the First
Amendment to the Consulting Services Agreement with HF&H Consulting, LLC, attached
hereto as Exhibit “A,” and incorporated herein by this reference, increasing the contract by
$120,000, for a contract amount not to exceed $169,000.
SECTION 2. The Director of Finance or his designee, is hereby authorized and directed
to increase the Purchase Order for HF&H Consulting, LLC by $120,000, for a total amount not
to exceed $169,000.
SECTION 3. The authorization to execute the above-referenced Amendment is
rescinded if the Amendment is not fully executed by all parties and returned to the Office of the
City Clerk within sixty (60) days following the effective date of this Resolution.
/ / / / / /
/ / /
/ / /
/ / /
/ / /
/ / /
00060083.1 1
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AUTHORIZING AND DIRECTING THE CITY
MANAGER TO EXECUTE THE FIRST AMENDMENT TO THE CONSULTANT
SERVICES AGREEMENT WITH HF&H CONSULTING, LLC FOR AS-
NEEDED CONSULTING SERVICES RELATED TO SOLID WASTE COLLECTIONS
SERVICE RATES
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
B y: _________________________
00060083.1 2
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Packet Pg. 181 Attachment: PW.Co-op Agreem - Highland for Street Rehabilitation.REPORT (5671 : Cooperative Agreement with the City of Highland for Six
i. Rockford Avenue from Western Avenue to northerly terminus – Slurry Seal
j. Mansfield Street from 200’ west of Central Avenue to Central Avenue – Slurry
Seal
k. Central Avenue from 75’ south of Fisher Street north of Mansfield Street –Slurry
Seal
l. Orange Street from Clifton Avenue to Pacific Street – Slurry Seal
m. Pacific Street from Buckeye Street to Boulder Avenue – Remove & Replace
n. Atlantic Avenue from Palm Avenue to City Limits east of Seine Avenue – 2” AC
Cap
2. Pacific Street Pavement Rehabilitation from Victoria Avenue to Palm Avenue
3. Pacific Street Pavement Rehabilitation from Palm Avenue to Church Avenue
4. Pacific Street Bikeway Improvements from Guthrie Street to Church Avenue
5. Tippecanoe Avenue Improvements from 9th Street to Vine Street
6. Maintenance of Street Light Improvements on 3rd Street near Palm Avenue
Detailed descriptions of the work to be done on each project are included in Exhibit A
attached to the Cooperative Agreement. Maps showing the location of each project are
attached as Exhibit B. San Bernardino’s cost share and the fiscal year of
implementation are shown in Exhibit C.
Projects 1, 2, 3 and 4 will be managed by the City of Highland. The City of San
Bernardino will pay its fair share based on the actual cost of work in San Bernardino.
Project 5 (Tippecanoe Avenue Improvements from 9th Street to Vine Street) is being
managed by the City of San Bernardino. Bids were received on June 14, 2018 and
construction is expected to start in early August 2018. Upon completion, Highland will
reimburse approximately $110,000 as its share of the project cost. These
improvements are included in the proposed agreement with Matich Corporation which is
also on this evening’s agenda.
Project 6 consists of street lights installed on 3rd Street near Palm Avenue by Highland
at no cost to the City of San Bernardino; however, under terms of the Cooperative
Agreement, San Bernardino agrees to accept ownership and assume responsibility for
the cost of electricity and maintenance of the new street lights within its jurisdiction.
2018-19 Goals and Objectives
This project is consistent with Goal No. 4: Ensure Development of a Well-Planned
Balanced and Sustainable City. This Project will contribute to well-maintained streets for
sustained economic growth.
7/25/2018 3:11 PM
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Fiscal Impact
Sufficient funds from the Measure I (129) account have been recommended in the FY
2018/19 Adopted Budget to cover the cost of this Cooperative Agreement for FY
2018/19. Sufficient funding will be recommended in future fiscal years through FY
2020/21 to cover the on-going cost of the Agreement.
The estimated funding needs for the current and future fiscal years are as follows:
FY 2018/19 - $815,000
FY 2019/20 - $728,011
FY 2020/21 – $688,386
The City of Highland will reimburse approximately $110,000 as its share of cost for
Project 5 (Pavement rehabilitation on Tippecanoe Avenue from 9th Street to Vine Street)
which is being managed by the City of San Bernardino.
Conclusion
Staff recommends that the Mayor and City Council of the City of San Bernardino,
California, adopt Resolution No. 2018-201, approving a Cooperative Agreement with the
City of Highland for Six Joint Projects.
Attachments
Attachment 1 Resolution; Cooperative Agreement for Six Joint Projects; Exhibit
A- (Description of Projects), Exhibit B (Map), and Exhibit C (Cost
Summary).
Ward: 1, 4 & 7
Synopsis of Previous Council Actions:
None.
7/25/2018 3:11 PM
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RESOLUTION NO. 2018-201
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, APPROVING A COOPERATIVE AGREEMENT WITH
THE CITY OF HIGHLAND FOR SIX JOINT PROJECTS
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
SECTION 1. The City Manager or designee is hereby authorized and directed to execute
on behalf of the City a Cooperative Agreement with the City of Highland for Six Joint Projects in
accordance with Exhibit A, attached hereto and made a part hereof.
SECTION 2. The Director of Finance or designee is hereby authorized and directed to
issue a Purchase Order to the City of Highland in the amount of $660,038 for the work involved
in the fiscal year 2018/19 component of this project and is further authorized and directed to
issue Purchase Orders in future fiscal years to cover the cost of this project as indicated in
Exhibit C attached to the Cooperative Agreement.
SECTION 3. The authorization to execute the above-referenced Agreement is rescinded
if it is not executed by all parties and returned to the office of the City Clerk within ninety (90)
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, APPROVING A COOPERATIVE AGREEMENT WITH
THE CITY OF HIGHLAND FOR SIX JOINT PROJECTS
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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COOPERATIVE AGREEMENT
FOR
SIX JOINT PROJECTS
THIS CONTRACT is entered into in the State of California by and between:
Name
CITY OF HIGHLAND hereinafter called: HIGHLAND
Address
27215 BASE LINE
HIGHLAND, CA 92346
Telephone Federal ID No. or Social Security No.
(909) 864-6861 33-0270638
and
Name
CITY OF SAN BERNARDINO hereinafter called: SAN BERNARDINO
Address
290 N. D STREET
SAN BERNARDINO, CA 92401
Telephone Federal ID No. or Social Security No.
(909) 384-5179 95-6000772
IT IS HEREBY AGREED AS FOLLOWS:
W I T N E S S E T H
WHEREAS, the CITY OF HIGHLAND (HIGHLAND) and the CITY OF SAN BERNARDINO
(SAN BERNARDINO) desire to cooperate and jointly participate in the following individual street
improvement projects, hereinafter collectively referred to as “PROJECT”;
1. Pavement Preventive Maintenance and Rehabilitation for Various Streets
2. Pacific Street Pavement Rehabilitation from Victoria Avenue to Palm Avenue
3. Pacific Street Pavement Rehabilitation from Palm Avenue to Church Avenue
4. Pacific Street Bikeway Improvements from Guthrie Street to Church Avenue
5. Tippecanoe Avenue Improvements from 9th Street to Vine Street
6. Maintenance of Street Light Improvements on 3rd Street near Palm Avenue
WHEREAS, the scope of street improvements and the location of each of the individual projects are
shown in Exhibits “A” and “B”;
WHEREAS, the PROJECT is located partially within the incorporated area of HIGHLAND, and
partially within the incorporated area of SAN BERNARDINO, and will be of mutual benefit to both Cities;
WHEREAS, HIGHLAND has secured approval of a state grant promoting the use rubberized
asphalt hot mix for pavement rehabilitation, hereafter CalRecycling grant, in the amount of $463,896, to
pay for a portion of cost for Projects 1, 2, 3 as follows:
Project 1 - $420,862
Project 2 - $ 35,276
Project 3 - $ 7,758
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WHEREAS, the above grant amounts will be used to proportionally reduce the two Cities’ cost
share of the above three individual projects;
WHEREAS, the scope of work covered under this Agreement for each of the individual projects
are as follows:
Projects 1, 2, 4 and 5: Environmental, design, construction and construction engineering
Project 3: Design, construction and construction engineering
Project 6: Maintenance upon completion of improvements
WHEREAS, HIGHLAND and SAN BERNARDINO will proceed with environmental, design and
construction of individual Project 1 to construct pavement preventive maintenance and rehabilitation
improvements for various streets;
WHEREAS, HIGHLAND and SAN BERNARDINO will proceed with environmental, design and
construction of Projects 2 and 4, and design and construction of Project 3 through a normal course of
progression unless, at the appropriate time, HIGHLAND and SAN BERNARDINO are successful in
obtaining grant funds to pay for construction items of Projects 2, 3 and 4 through joint application for
future “Calls for Projects” by various grant funding programs f or which these types of improvements are
eligible including, but not limited to, the federal Highway Safety Improvement Program (HSIP) and the
federal or state Active Transportation Program (ATP). Said joint application shall also seek grant funds
to pay for completion of ultimate design and construction of other improvements of Project No. 6
entitled “Palm Avenue and Pacific Street Improvements” included in the Cooperative Agreement
between HIGHLAND and SAN BERNARDINO dated May 10, 2016. In this case, HIGHLAND and SAN
BERNARDINO agree to implement Projects 2, 3 and 4 as part of a larger project that will include
Project Palm Avenue and Pacific Street Improvements stated above and amend this agreement to
include updated project costs at that time;
WHEREAS, SAN BERNARDINO and HIGHLAND will proceed with environmental, design and
construction of Project 5 to construct pavement improvements on Tippecanoe Avenue from 9th Street to
Vine Street;
WHEREAS, HIGHLAND and SAN BERNARDINO will proceed with construction of Project 6, whereby
HIGHLAND will pay for cost of improving street lights located within SAN BERNARDINO boundaries at the
southwest corner of 3rd Street and Palm Avenue, which will be City of San Bernardino-owned street light
system (LS-2); HIGHLAND will also obtain separate permit from SAN BERNARDINO for installation and
removal of street lights per approved plans; and SAN BERNARDINO will accept the new street lights and pay
for the energy cost of this LS-2 street light system. The new street lights within SAN BERNARDINO jurisdiction
will match other street lights constructed to maintain uniformity. These lights are also equivalent to the SAN
BERNARDINO Street Light Standard SL-1.
WHEREAS, where applicable grant amounts will be used to proportionally reduce the two Cities’
cost share of project;
WHEREAS, HIGHLAND has commenced the environmental and design, and will construct
improvements for Sectors A, B and C of Project 1, and SAN BERNARDINO is willing to reimburse
HIGHLAND for SAN BERNARDINO’S share of the environmental, design and construction costs for
this project in fiscal year 2018-19;
WHEREAS, the total cost for Project 1, Sectors A, B and C is estimated to be $5,830,687 with
HIGHLAND’s share estimated at $5,170,649 and SAN BERNARDINO’s share estimated at $660,038
which will be reduced proportionally when CalRecycle grant funding is taken into consideration;
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WHEREAS, after reimbursement by CalRecycling grant, the net total cost for Project 1, Sectors
A, B and C is estimated to be $5,594,082, with HIGHLAND’s share estimated at $4,956,559 and SAN
BERNARDINO’s share estimated at $637,523;
WHEREAS, HIGHLAND will commence the environmental, design and construct improvements
for Sector D of Project 1, and SAN BERNARDINO is willing to reimburse HIGHLAND for SAN
BERNARDINO’S share of the environmental, design and construction costs for this project in fiscal year
2019-20;
WHEREAS, the total cost for Project 1, Sector D is estimated to be $2,637,134 with
HIGHLAND’s share estimated at $2,176,619 and SAN BERNARDINO’s share estimated at $460,515,
which will be reduced proportionally when CalRecycling grant funding is taken into consideration;
WHEREAS, after reimbursement by CalRecycling grant, the net total cost for Project 1, Sector
D is estimated to be $2,452,877, with HIGHLAND’s share estimated at $2,014,519 and SAN
BERNARDINO’s share estimated at $438,358;
WHEREAS, HIGHLAND will commence the environmental, design and construct improvements
for Project 2, and SAN BERNARDINO is willing to reimburse HIGHLAND for SAN BERNARDINO’S
share of the environmental, design and construction costs for this project in fiscal year 2020-21;
WHEREAS, the total cost for Project 2 is estimated to be $1,174,607, with HIGHLAND’s share
estimated at $472,114 and SAN BERNARDINO’s share estimated at $702,493, which will be reduced
proportionally when CalRecycling grant funding is taken into consideration;
WHEREAS, after reimbursement by CalRecycling grant, the net total cost for Project 2 is
estimated to be $1,139,331, with HIGHLAND’s share estimated at $450,945 and SAN BERNARDINO’s
share estimated at $688,386;
WHEREAS, HIGHLAND will commence the design and construct improvements for Project 3,
and SAN BERNARDINO is willing to reimburse HIGHLAND for SAN BERNARDINO’S share of t he
design and construction costs for this project in fiscal year 2019-20;
WHEREAS, the total cost for Project 3 is estimated to be $386,312, with HIGHLAND’s share
estimated at $193,156 and SAN BERNARDINO’s share estimated at $193,156, which will be reduced
proportionally when CalRecycling grant funding is taken into consideration;
WHEREAS, after reimbursement by CalRecycling grant, the net total cost for Projects 3 is
estimated to be $378,554, with HIGHLAND’s share estimated at $189,277 and SAN BERNARDINO’s
share estimated at $189,277;
WHEREAS, HIGHLAND will commence the environmental, design and construct improvements
for Project 4, and SAN BERNARDINO is willing to reimburse HIGHLAND for SAN BERNARDINO’S
share of the environmental, design and construction costs for this project in fiscal year 2019-20;
WHEREAS, the total cost for Project 4 is estimated to be $66,800, with HIGHLAND’s share
estimated at $37,809 and SAN BERNARDINO’s share estimated at $28,991;
WHEREAS, SAN BERNARDINO has commenced the environmental and design, and will
construct improvements for Project 5, and HIGHLAND is willing to reimburse SAN BERNARDINO for
HIGHLAND’s share of the environmental, design and construction costs for this project in fiscal year
2018-19;
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WHEREAS, the total cost for Project 5 is estimated to be $217,610, with HIGHLAND’s share estimated
at $110,805 and SAN BERNARDINO’s share estimated at $106,805;
WHEREAS, the installation cost of street lights in Project 6 will be 100% paid by HIGHLAND,
and the maintenance and energy costs will be 100% paid by SAN BERNARDINO;
WHEREAS, the estimated cost shares for HIGHLAND and SAN BERNARDINO for each
individual projects are shown in Exhibit ‘C”;
WHEREAS, HIGHLAND and SAN BERNARDINO desire to set forth responsibilities and
obligations of each as they pertain to the design, construction, funding and maintenance of the
proposed PROJECT.
NOW, THEREFORE, IT IS MUTUALLY AGREED as follows:
A. PROJECTS 1, 2, 3, 4 AND 6 (PROJECT SET 1)
1.0 HIGHLAND AGREES TO:
1.1 Act as the Lead Agency in the design and/or construction.
1.2 Provide plans, specifications, and an itemized cost estimates for the PROJECT SET 1 for SAN
BERNARDINO’s review and comments. The itemized PROJECT SET 1 cost estimates shall be
listed for each agency.
1.3 Construct Projects 1, 2, 3, and 4 contracts in accordance with the plans and specifications
prepared by HIGHLAND, subject to concurrence of SAN BERNARDINO.
1.4 Obtain no-cost permits from SAN BERNARDINO for construction work within SAN
BERNARDINO’s right-of-way.
1.5 Advertise, award, administer, and initially fund the construction in accordance with the California
Public Contract Code applicable to cities and require, as well as enforce, HIGHLAND’s
contractors to comply with all applicable laws and regulations, including Labor Code sections
1720 et seq. and 1770 et seq. that concern the payment of prevailing wages.
1.6 Require all contractors and vendors working on the PROJECT SET 1 to have appropriate and
adequate insurance coverage for the mutual protection and benefit of HIGHLAND and SAN
BERNARDINO.
1.7 Provide adequate inspection of all items of work performed under the construction contract(s)
with HIGHLAND's contractors or subcontractors and maintain adequate records of inspection
and materials testing for review by SAN BERNARDINO. HIGHLAND shall provide copies of any
records of inspection and materials testing to SAN BERNARDINO within ten (10) days of
HIGHLAND's receipt of written demand from SAN BERNARDINO for such records.
1.8 Pay its share of PROJECT SET 1 costs proportionate to the cost of improvements constructed
within its jurisdictional boundaries pursuant to Paragraph 3.6 below, plus its proportionate share
of any PROJECT SET 1 cost increases pursuant to Paragraph 3.7 below.
1.9 Submit an invoice to SAN BERNARDINO along with an itemized accounting of SAN
BERNARDINO’s proportionate share of actual final PROJECT SET 1 costs, minus the portion of
state grants allocated to improvements constructed within SAN BERNARDINO’s jurisdictional
boundaries, where applicale.
1.10 Comply with any applicable requirements of the California Environmental Quality Act (CEQA),
California Public Resources Code section 21000 et. seq, and complete the required CEQA
documentation.
1.11 Operate and maintain those portions of the PROJECT SET 1 located within the incorporated
area of HIGHLAND, in accordance with HIGHLAND’s regulations, policies and procedures, after
SAN BERNARDINO and HIGHLAND have accepted the construction contract work.
2.0 SAN BERNARDINO AGREES TO:
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2.1 Pay its share of the PROJECT SET 1 costs to HIGHLAND proportionate to the actual final cost
of improvements constructed within its jurisdictional boundaries pursuant to Paragraph 3.6
below, which may be different from the estimated cost share amounts shown on Exhibit “C”,
plus its proportionate share of any PROJECT SET 1 cost increases pursuant to Paragraph 3.7
below. The PROJECT SET 1 costs shall include the cost for environmental, design,
construction, construction engineering and/or maintenance incurred by HIGHLAND applicable to
each of the individual projects.
2.2 Reimburse HIGHLAND within thirty (30) days after receipt of an invoice and supporting
documentation from HIGHLAND, which set forth all actual PROJECT SET 1 costs incurred by
HIGHLAND that have not already been paid by SAN BERNARDINO,
2.3 Provide no-cost permits to HIGHLAND for its work within SAN BERNARDINO’s right-of-way.
2.4 Operate and maintain those portions of PROJECT SET 1 constructed by HIGHLAND within the
incorporated area of SAN BERNARDINO, in accordance with SAN BERNARDINO’s regulations,
policies and procedures after HIGHLAND and SAN BERNARDINO have accepted the
construction contract work.
B. PROJECT 5 (PROJECT SET 2)
1.0 SAN BERNARDINO AGREES TO:
1.1 Act as the Lead Agency in the design and construction.
1.2 Provide plans, specifications, and an itemized cost estimates for the PROJECT SET 2 for
HIGHLAND’s review and comments. The itemized PROJECT SET 2 cost estimates shall be
listed for each agency.
1.3 Construct PROJECT SET 2 contract in accordance with the plans and specifications prepared
by SAN BERNARDINO, subject to concurrence of HIGHLAND.
1.4 Obtain no-cost permits from HIGHLAND for construction work within HIGHLAND’s right-of-way.
1.5 Advertise, award, administer, and initially fund the construction in accordance with the California
Public Contract Code applicable to cities and require, as well as enforce, SAN BERNARDINO’s
contractors to comply with all applicable laws and regulations, including Labor Code sections
1720 et seq. and 1770 et seq. that concern the payment of prevailing wages.
1.6 Require all contractors and vendors working on the PROJECT SET 2 to have appropriate and
adequate insurance coverage for the mutual protection and benefit of SAN BERNARDINO and
HIGHLAND.
1.7 Provide adequate inspection of all items of work performed under the construction contract(s)
with SAN BERNARDINO's contractors or subcontractors and maintain adequate records of
inspection and materials testing for review by HIGHLAND. SAN BERNARDINO shall provide
copies of any records of inspection and materials testing to HIGHLAND within ten (10) days of
SAN BERNARDINO's receipt of written demand from HIGHLAND for such records.
1.8 Pay its share of PROJECT SET 2 costs proportionate to the cost of improvements constructed
within its jurisdictional boundaries pursuant to Paragraph 3.6 below, plus its proportionate share
of any PROJECT SET 2 cost increases pursuant to Paragraph 3.7 below.
1.9 Submit an invoice to HIGHLAND along with an itemized accounting of HIGHLAND’s
proportionate share of actual final PROJECT SET 2 costs.
1.10 Comply with any applicable requirements of the California Environmental Quality Act (CEQA),
California Public Resources Code section 21000 et. seq, and complete the required CEQA
documentation.
1.11 Operate and maintain those portions of the PROJECT SET 2 located within the incorporated
area of SAN BERNARDINO, in accordance with HIGHLAND’s regulations, policies and
procedures, after HIGHLAND and SAN BERNARDINO have accepted the construction contract
work.
2.0 HIGHLAND AGREES TO:
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2.1 Pay its share of the PROJECT SET 2 costs to SAN BERNARDINO proportionate to the actual
final cost of improvements constructed within its jurisdictional boundaries pursuant to Paragraph
3.6 below, which may be different from the estimated cost share amounts shown on Exhibit “C”,
plus its proportionate share of any PROJECT SET 2 cost increases pursuant to Paragraph 3.7
below. The PROJECT SET 2 costs shall include the cost for environmental, design,
construction, construction engineering and/or maintenance incurred by SAN BERNARDINO
applicable to this individual project.
2.2 Reimburse SAN BERNARDINO within thirty (30) days after receipt of an invoice and supporting
documentation from SAN BERNARDINO, which set forth all actual PROJECT SET 2 costs
incurred by SAN BERNARDINO that have not already been paid by HIGHLAND,
2.3 Provide no-cost permits to SAN BERNARDINO for its work within HIGHLAND’s right-of-way.
2.4 Operate and maintain those portions of PROJECT SET 2 constructed by SAN BERNARDINO
within the incorporated area of HIGHLAND, in accordance with HIGHLAND’s regulations,
policies and procedures after SAN BERNARDINO and HIGHLAND have accepted the
construction contract work.
3.0 IT IS MUTUALLY AGREED:
3.1 HIGHLAND agrees to indemnify, defend (with counsel approved by SAN BERNARDINO) and
hold harmless SAN BERNARDINO, their officers, agents, volunteers from any and all claims,
actions or losses, damages, and/or liability resulting from HIGHLAND’s negligent acts or
omissions which arise from HIGHLAND’s performance of its obligations under the Agreement.
3.2 SAN BERNARDINO agrees to indemnify, defend (with counsel approved by HIGHLAND) and
hold harmless HIGHLAND, their officers, agents, volunteers from any and all claims, actions or
losses, damages, and/or liability resulting from SAN BERNARDINO’s negligent acts or
omissions which arise from SAN BERNARDINO’s performance of its obligations under the
Agreement.
3.3 In the event HIGHLAND and/or SAN BERNARDINO is found to be comparatively at fault for any
claim, action, loss or damage which results from their respective obligations under the
Agreement, HIGHLAND and/or SAN BERNARDINO shall indemnify the other to the extent of its
comparative fault. This shall have no application to any pending suit that may exist at the time
of the execution of this Agreement. Furthermore, if HIGHLAND or SAN BERNARDINO
attempts to seek recovery from the other for Workers’ Compensation benefits paid to an
employee, HIGHLAND or SAN BERNARDINO agree that any alleged negligence of the
employee shall not be construed against the employer of that employee.
3.4 In the event of litigation arising from this Agreement, each Party to the Agreement shall bear its
own costs, including attorney fees. This paragraph does not apply to costs or attorney fees
relative to paragraphs 3.1, 3.2, and 3.3 relating to indemnification.
3.5 HIGHLAND and SAN BERNARDINO are wholly or partially self-insured public entities for
purposes of Professional Liability, Automobile Liability, General Liability, and Workers’
Compensation and warrant that through their programs of self-insurance, they have adequate
coverage or resources to protect against liabilities arising out of HIGHLAND’s and SAN
BERNARDINO’s performance of this Agreement.
3.6 The parties acknowledge that final PROJECT costs for Projects 1, 2, 3, 4 and 5 may ultimately
exceed current estimates of PROJECT costs. Any additional PROJECT costs resulting from
increased bid prices, change orders, or arising from unforeseen site conditions, including utility
relocation (but not from requested additional work by HIGHLAND or SAN BERNARDINO, which
is addressed in paragraph 4.8 below) over the estimated total of PROJECT cost of $10,313,150
(which is the sum of $8,161,152 from HIGHLAND and $2,151,998 from SAN BERNARDINO),
shall be borne by each party in proportion to where the work actually lies (based on jurisdictional
boundaries), as part of the parties' respective obligations to pay the cost for the PROJECT.
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3.7 If HIGHLAND or SAN BERNARDINO requests additional work that is beyond the scope of the
original PROJECT, said work will be paid solely by the agency requesting the work at the
construction contract unit costs.
3.8 HIGHLAND shall notify SAN BERNARDINO of the bids received and the amounts thereof.
Within ten (10) days thereafter, HIGHLAND and SAN BERNARDINO shall determine the cost of
the PROJECT. In the event that either party intends to cancel this Agreement based upon the
bids or amount thereof, said party shall notify the other parties prior to the awarding of a
contract so as to avoid detrimental reliance by any potential contractor.
3.9 If, upon opening of bids, it is found that a cost overrun exceeding 25% of the estimate d
PROJECT costs shown on Exhibit “C” will occur, HIGHLAND shall not award any contracts for
the PROJECT. Rather HIGHLAND and SAN BERNARDINO shall endeavor to agree upon an
alternative course of action, including re-bidding of the PROJECT. If, after thirty (30) days, an
alternative course of action is not mutually agreed upon in writing, this Agreement shall be
deemed to be terminated by mutual consent.
3.10 HIGHLAND and SAN BERNARDINO shall provide a qualified representative, who shall have
the authority to discuss and resolve issues concerning the PROJECT. Said representative must
be able to resolve issues in a timely manner.
3.11 This Agreement may be cancelled upon thirty (30) days written notice of any party, provided
however, none of the parties may cancel this Agreement after HIGHLAND or SAN
BERNARDINO awards a contract to construct the PROJECT. In the event of cancellation as
provided herein, all PROJECT costs required to be paid by the parties prior to the effective date
of cancellation shall be paid by the parties based on actual work performed within each party’s
jurisdiction.
3.12 Except with respect to the parties' operation, maintenance and indemnification obligations
contained herein, this Agreement shall terminate upon completion of the PROJECT and
payment by each Party for its share of the PROJECT.
3.13 This Agreement contains the entire agreement of the parties with respect to subject matter
hereof, and supersedes all prior negotiations, understandings, or agreements. No supplement,
modification, or amendment of this Agreement shall be binding unless executed in writing and
signed by all parties.
3.14 This Agreement shall be governed by the laws of the State of California. Any action or
proceeding between SAN BERNARDINO and HIGHLAND concerning the interpretation or
enforcement of this Agreement, or which arises out of, or is in any way connected with, this
Agreement or the PROJECT, shall be instituted and tried in the appropriate state court in the
County of San Bernardino, California.
3.15 Time is of the essence for each and every provision of this Agreement.
3.16 Since the parties or their agents have participated fully in the preparation of this Agreement, the
language of this Agreement shall be construed simply, according to its fair meaning, and not
strictly for any or against any party. Any term referencing time, days or period for performance
shall be deemed work days. The captions of the various articles and paragraphs are for
convenience and ease or reference only, and do not define, limit, augment, or describe the
scope, content, or intent of this Agreement.
3.17 No waiver of any default shall constitute a waiver of any other default or breach, whether of the
same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given
or performed by a party shall give the other party any contractual rights by custom, estoppel, or
otherwise.
3.18 If a court of competent jurisdiction declares any portion of this Agreement invalid, illegal, or
otherwise unenforceable, the remaining provisions shall continue in full force and effect, unless
the purpose of this Agreement is frustrated.
3.19 This Agreement may be signed in counterparts, each of which shall constitute an original.
3.20 This Agreement will be effective on the date it is signed by all parties.
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THIS AGREEMENT shall inure to the benefit of and be binding upon the successors and assigns of all parties.
WITNESS WHEREOF, the parties to these presents have hereunto set their hands.
CITY OF HIGHLAND CITY OF HIGHLAND
(Print or type name of corporation, company, contractor, etc.)
Approved as to form:
Craig Steele By
City Attorney (Authorized signature - sign in blue ink)
Name Larry McCallon
By: ___________________________________ (Print or type name of person signing contract)
Title Mayor
Dated:
Address: 27215 Base Line, Highland, CA 92346
CITY OF SAN BERNARDINO CITY OF SAN BERNARDINO
(Print or type name of corporation, company, contractor, etc.)
Approved as to form:
Gary D. Saenz By
City Attorney (Authorized signature - sign in blue ink)
Name Andrea M. Miller
By: ___________________________________ (Print or type name of person signing contract)
Title City Manager
Dated:
Address: 290 N. “D” Street, San Bernardino, CA 92401
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EXHIBIT “A”
PROJECT DESCRIPTIONS
PROJECT NO. 1
Pavement Preventive Maintenance and Rehabilitation for Various Streets
This project includes design and construction of preventive maintenance, such as crack
seal and/or slurry seal, and pavement rehabilitation on various streets located in the
cities of Highland and San Bernardino. Highland has fronted the environmental and
design costs for San Bernardino’s improvements in Sectors A, B and C. San Bernardino
is to program pavement improvement for its streets located in Sectors A, B and C in FY
2018-19 Budget and Sector D in FY 2019-20 Budget.
PROJECT NO. 2
Pacific Street Pavement Rehabilitation from Victoria Avenue to Palm Avenue
This project includes design and construction of pavement rehabilitation on Pacific
Street from Victoria Avenue to Palm Avenue.
PROJECT NO. 3
Pacific Street Pavement Rehabilitation from Palm Avenue to Church Avenue
This project includes construction of pavement removal and replacement on Pacific
Street from Palm Avenue to Church Avenue. The existing pavement is beyond repairs
and will require a total reconstruction. A portion of the design is included in the
Cooperative Agreement dated May 10, 2016.
PROJECT NO. 4
Pacific Street Bikeway Improvements from Guthrie Street to Church Avenue
This project entails design and construction of signing and striping modifications on
Pacific Street from Guthrie Street to Church Avenue with new bike lanes in each
direction, to be achieved by reducing lane width and adding striping where none
currently exists. Prior to project advertisement, appropriate parking restrictions shall be
defined and legislated by each agency.
PROJECT NO. 5
Tippecanoe Avenue Pavement Improvements from 9th Street to Vine Street
This project entails design and construction of pavement rehabilitation on Tippecanoe
Avenue from 9th Street to Vine Street. San Bernardino is to front and pay for the design
and construction of Highland’s improvements. Highland is to program the cost of its
share for this project in FY 2018-19 Budget.
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PROJECT NO.6
Street Light Improvements on 3rd Street near Palm Avenue (Maintenance only)
Through a joint project with Inland Valley Development Agency (IVDA), the City of
Highland will pay for construction of a number of street lights located within the City of
San Bernardino city limits at the southwest corner of 3rd Street and Palm Avenue. These
street lights will be constructed and classified as LS-2 street lights. Upon their
completion, City of San Bernardino will take over their maintenance and pay for the
energy cost.
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PROJECT PROGRAMING AND EXPENDITURE SUMMARY
6.20.2018
EXHIBIT C
PROJ.
NO.PROJECT DESCRIPTION FISCAL
YEAR TOTAL COST TOTAL NET
COST COST GRANT
SHARE NET COST COST GRANT
SHARE NET COST
SECT. A, B, C
FY 2018-19 $5,830,687 $5,594,082 $660,038 $22,515 $637,523 $5,170,649 $214,090 $4,956,559
SECTOR D
FY 2019-20 $2,637,134 $2,452,877 $460,515 $22,157 $438,358 $2,176,619 $162,100 $2,014,519
2 Pacific St. Pavement Rehab
(Victoria Ave.-Palm Ave.)FY 2020-21 $1,174,607 $1,139,331 $702,493 $14,107 $688,386 $472,114 $21,169 $450,945
4
Pacific St. Bikeway
Improvements (Guthrie St.-
Church Ave.)
FY 2019-20 $66,800 $66,800 $28,991 $0 $28,991 $37,809 $0 $37,809
5
Tippecanoe Ave.
Improvements (9th St. - Vine
St.)
FY 2018-19 $217,610 $217,610 $106,805 $0 $106,805 $110,805 $0 $110,805
3 Pacific St. Pavement Rehab
(Palm Ave.-Church Ave.)FY 2019-20 $386,312 $378,554 $193,156 $3,879 $189,277 $193,156 $3,879 $189,277
$10,313,150 $9,849,254 $2,151,998 $62,658 $2,089,340 $8,161,152 $401,238 $7,759,914
SHARE SHARE
6 100%0%
Costs for Sector A are actual costs based on design, construction and CM contracts
Street Light Improvements on 3rd Street
TOTAL
SAN BERNARDINO HIGHLANDPROJECT ENVIRONMENTAL, DESIGN AND CONST./CONST. ENG.
PROJECT DESIGN AND CONSTRUCTION/CONSTRUCTION ENG.
MAINTENANCE ONLY
1 Pavement Preventive
Maintenance and Rehab
10.fPacket Pg. 202Attachment: PW.Co-op Agreem - Highland for Street Rehabilitation.EXHIBIT C (5671 : Cooperative Agreement with the City of Highland for Six
Date:
To:
From:
Subject:
Recommendation
City of San Bernardino
Request for Council Action
August 1, 2018
Honorable Mayor and City C�uniMembers
Andrea M. Miller, City Manag��By: Mitch Cochran, IT Dir��r
Consent Calendar
Authorize the Execution of a Vendor Services Agreement and
Issue a Purchase Order to NPA Computers Inc. for System
Maintenance Services in an Amount Not to Exceed $108,108
Authorize the City Manager or her designee to execute a Vendor Services Agreementand issue a Purchase Order for system maintenance services with NPA computers inan amount not to exceed $108,108.
Background For over a decade the City IT Department has maintained a contract for miscellaneoussoftware and hardware. For the last eight years NPA Computers Inc has been thevendor, elected through a competitive bid process, to service this contract. In 2014,NPA was awarded a contract which included three one year optional extensions. Ineach of the last three years, NPA was awarded a one-year extension due to their goodservice.
Discussion In May of 2018, the Finance Department requested bids from three vendors to performthe services of this contract. The bid package was also downloaded by eight vendorsfrom the City website. NPA Computers Inc. was the only vendor to present a responseto the City. The current hardware inventory creates an estimated annual maintenanceexpenditure of $98,280. Staff is requesting that a 10% contingency of $9,828 be addedto the authorization amount for slight changes in the products or support functions whichmight occur during the fiscal year. The agreement includes three one-year optionalrenewals.
2018-19 Goals and Objectives The purchase of maintenance agreements support Goal No. 6: Operate in a FiscallyResponsible and Business-Like Manner. The annual support agreements ensure thatcritical hardware devices are supported and kept up to date.
7/19/2018 12:16 PM
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Fiscal Impact
The cost of the annual support agreement has been included it he FY 2018/19 budget in
account number 679-250-0060-5172.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino
authorize the City Manager or her designee to execute a Vendor Services Agreement
and issue a Purchase Order to NPA Computers for hardware maintenance services for
the FY 2018/19.
Attachments
Attachment 1 – Bid Response
Attachment 2 – Vendors Services Agreement
Ward: N/A
Synopsis of Previous Council Actions:
On June 16, 2014, the Mayor and City Council adopted Resolution No. 2014-164, Authorizing the
execution of a Vendor Services Agreement and issuance of a Purchase Order to NPA Computers
Inc. for Maintenance of the City’s computer and networking hardware and operating system.
The authorization included three one year optional renewals.
7/25/2018 12:55 PM
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Attachment 2
TITLE: Vendors Services Agreement
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SERVICES AGREEMENT
THIS AGREEMENT is made and entered into this 18th day of
July 2018, by and between the CITY OF SAN BERNARDINO, a charter city ("CITY"), and
NPA Computers Inc. (“VENDOR”).
WITNESSETH :
A. WHEREAS, CITY proposes to have VENDOR perform the services described
herein below; and
B. WHEREAS, VENDOR represents that it has that degree of specialized expertise
contemplated within California Government Code, Section 37103, and holds all necessary
licenses to practice and perform the services herein contemplated; and
C. WHEREAS, CITY and VENDOR desire to contract for professional services as
described in the Scope of Services, attached hereto as Exhibit "1"; and
D. WHEREAS, no official or employee of CITY has a financial interest, within the
provisions of California Government Code, Sections 10901092, in the subject matter of this
Agreement.
NOW, THEREFORE, for and in consideration of the mutual covenants and
conditions contained herein, the parties hereby agree as follows:
1.0. SERVICES PROVIDED BY VENDOR
1.1. Scope of Services. For the remuneration stipulated, VENDOR shall provide the
professional services described in the Scope of Services. If a conflict arises between the
Scope of Services document and this Professional Services Agreement (hereinafter
"Agreement"), the terms of the Agreement shall govern.
1.2. Professional Practices. All Services to be provided by VENDOR pursuant to this
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Agreement shall be provided by skilled personnel and in a manner consistent with the
standards of care, diligence and skill ordinarily exercised by professional VENDORs in
similar fields and circumstances in accordance with sound professional practices. VENDOR
also warrants that it is familiar with all laws that may affect its performance of this
Agreement and shall advise CITY of any changes in any laws that may affect VENDOR's
performance of this Agreement if the VENDOR has actual knowledge of such changes.
VENDOR and the CITY each represent that no CITY employee will provide any Services
under this Agreement.
1.3. Warranty. VENDOR warrants that it shall perform the Services required by this
Agreement in compliance with all applicable Federal and California employment laws
including, but not limited to, those laws related to minimum hours and wages; occupational
health and safety; fair employment and employment practices; workers' compensation
insurance and safety in employment; and all other Federal, State and local laws and
ordinances applicable to the services required under this Agreement. VENDOR shall
indemnify and hold harmless CITY from and against all claims, demands, payments, suits,
actions, proceedings, and judgments of every nature and description including reasonable
attorneys' fees and costs, or recovered against CITY to the extent arising from VENDOR’s
violation of any such applicable law.
1.4. Nondiscrimination. In performing this Agreement, 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,
except as permitted pursuant to Section 12940 of the Government Code. Violation of this
provision may result in the imposition of penalties referred to in Labor Code, Section 1735.
1.5 NonExclusive Agreement. VENDOR acknowledges that CITY may enter into
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agreements with other VENDORs for services similar to the Services that are subject to this
Agreement or may have its own employees perform services similar to those services
contemplated by this Agreement.
1.6. Delegation and Assignment. This is a personal service contract, and the duties set
forth herein shall not be delegated or assigned to any person or entity without the prior
written consent of CITY, which consent shall not be unreasonably withheld or delayed.
VENDOR may engage a subcontractor(s) as permitted by law and may employ other
personnel to perform services contemplated by this Agreement at VENDOR's sole cost and
expense.
1.7 Duty of Loyalty/Conflict of Interest. The VENDOR understands and agrees that
as the CITY’s VENDOR, VENDOR shall maintain a fiduciary duty and a duty of loyalty to
the CITY in performing VENDOR’s obligations under this Agreement. VENDOR, in
performing its obligations under this Agreement, is governed by California’s conflict of
interest laws, Government Code Section 87100 et seq., and Title 2, California Code of
Regulations, Section 18700 et seq.
1.8 CITY Business Certificate. VENDOR shall obtain and maintain during the term
of this Agreement, a valid CITY Business Registration Certificate pursuant to Title 5 of the
City of San Bernardino Municipal Code and any and all other licenses, permits,
qualifications, insurance and approvals of whatever nature that are legally required of
VENDOR to practice its profession, skill or business.
2.0. COMPENSATION AND BILLING
2.1. Compensation. Except as provided herein, VENDOR compensation shall be at
the rate of $98,920.00 per fiscal year.
2.2. Additional Services. VENDOR shall not receive compensation for any services
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provided outside the scope of services specified in Bid Response unless the CITY, prior to
VENDOR performing the additional services approves such additional services in writing. It
is specifically understood that oral requests and/or approvals of such additional services or
additional compensation shall be barred and are unenforceable.
2.3. Method of Billing. VENDOR shall submit invoices to CITY for approval. Said
invoice shall be based on the total of all VENDOR's services which have been performed in
accordance with the terms of this Agreement during the period covered by such invoice.
CITY shall pay VENDOR's invoice within thirty (30) days from the date CITY receives said
invoice. The invoice shall describe in detail the services performed and the associated time
for completion. Any additional services approved and performed pursuant to this Agreement
shall be designated as "Additional Services" and shall identify the number of the authorized
change order, where applicable, on all invoices.
2.4. Records and Audits. Records of VENDOR's Services directly relating to this
Agreement shall be maintained in accordance with generally recognized accounting
principles and shall be made available to CITY for inspection and/or audit at mutually
convenient times for a period of seven (7) years from the Effective Date. Any such inspection
shall be conducted at the CITY’s expense, during normal business hours and upon reasonable
prior written notice to VENDOR. Such audit shall also be subject to the execution of a
confidentiality agreement regarding inadvertent access to confidential information not related
to the CITY.
3.0. TERM AND NOTIFICATION.
3.1. Term. This Agreement shall commence on the Effective Date and continue for
one (1) year, with the City’s option to extend the agreement for a period of one year for each
of the following three years, unless the Agreement is previously terminated as provided for
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herein.
3.2 Termination. CITY or VENDOR may terminate the Services provided under
Section 1.1 of this Agreement upon thirty (30) days written notice to the other party. In the
event of termination, VENDOR shall be paid the reasonable value of Services rendered to
the date of termination.
3.3 Documents. In the event of an early termination of this Agreement, all documents
prepared by VENDOR in its performance of this Agreement including, but not limited to,
worker’s compensation medical bills, shall be delivered to the CITY within ten (10) days of
delivery of termination notice to VENDOR, at no cost to CITY. Any use of uncompleted
documents without specific written authorization from VENDOR shall be at CITY’s sole risk
and without liability of legal expense to VENDOR.
4.0. INSURANCE
4.1. 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 One Million Dollars
($1,000,000.00), combined single limits, per occurrence and aggregate.
(b) Automobile liability for owned vehicles, hired, and non-owned vehicles, with a
policy limit of 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.
4.2. Endorsements. The commercial general liability insurance policy shall contain or be
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endorsed, using general policy endorsements, to contain the following provisions:
(a) Additional insured’s: "The City of San Bernardino and its elected and appointed
boards, officers, and employees are additional insured’s with respect to their
vicarious liability arising out of VENDOR’s performance of the Services hereunder."
(b) 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 with
respect to claims arising solely and directly from VENDOR’s provision of the
Services."
4.3. Certificates of Insurance. VENDOR shall provide to CITY certificates of
insurance showing the insurance coverages and required endorsements described above, prior
to performing any services under this Agreement.
4.4. Nonlimiting. 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.
4.5 Notice of Cancellation: VENDOR shall provide the CITY thirty (30) days prior
written notice of cancellation of or a material change in any of the required coverages.
5.0. GENERAL PROVISIONS
5.1. Entire Agreement: This Agreement, together with Exhibit “1” attached hereto
constitutes the entire Agreement between the parties with respect to any matter referenced
herein and supersedes any and all other prior writings and oral negotiations. This Agreement
may be modified only in writing, and signed by the parties in interest at the time of such
modification. The terms of this Agreement shall prevail over any inconsistent provision in
any other contract document appurtenant hereto, including the exhibit to this Agreement.
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5.2. Notices. Any notices, documents, correspondence or other communications
concerning this Agreement or the work hereunder may be provided by personal delivery,
deemed served or delivered: a) at the time of delivery if such communications is sent by
personal delivery: b) at the time of transmission if such communication is sent by facsimile:
and c) 48 hours after deposit in the U.S. Mail as reflected by the official U.S. postmark if
such communications is sent through regular United States mail.
Mr. Peter Aroniadis Mr. Mitch Cochran
CEO of NPA Computers Inc. Information Technologies
NPA Computers Inc., Inc. City of San Bernardino
751 Coates Ave. 201 North “D” Street
Holbrook, NY. 11741 San Bernardino, Ca. 92418
Telephone (631) 467-2500 Telephone: (909) 384-5947
Fax: (909) 384-7236
5.3. 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 contract on behalf of the CITY shall be
considered as "attorneys' fees" for the purposes of this Agreement.
5.4. Governing Law. This Agreement shall be governed by and construed under the
laws of the State of California without giving effect to that body of laws pertaining to conflict
of laws. In the event of any legal action to enforce or interpret this Agreement, the parties
hereto agree that the sole and exclusive venue shall be a court of competent jurisdiction
located in San Bernardino County, California.
VENDOR: CITY:
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5.5. Assignment: VENDOR shall not voluntarily or by operation of law assign,
transfer, sublet or encumber all or any part of VENDOR's interest in this Agreement to an
unrelated third party without CITY's prior written consent, which consent shall not be
unreasonably withheld or delayed. Any attempted assignment, transfer, subletting or
encumbrance shall be void and shall constitute a breach of this Agreement and cause for
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.
5.6. Indemnification and Hold Harmless. VENDOR shall protect, defend, indemnify
and hold harmless CITY and its elected and appointed officials, boards, commissions,
officers and employees from any and all claims, losses, demands, suits, administrative
actions, penalties, liabilities and expenses, including reasonable attorneys’ fees, damage to
property or injuries to or death of any person or persons or damages of any nature including,
but not limited to, all civil claims or workers' compensation claims to the extent directly
arising from or in VENDOR's negligent or wrongful acts or omissions in connection with the
performance under this Agreement.
5.7. Independent Contractor. VENDOR, at all times while performing under this
Agreement, is and shall be acting as an independent contractor and not as an agent or
employee of CITY. VENDOR shall secure, at its expense, and be responsible for any and all
payment of wages, benefits and taxes including, but not limited to, 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
licenses, if any are required, in connection with the Services to be performed hereunder.
Neither VENDOR nor its officers, agents and employees shall be entitled to receive any
benefits which employees of CITY are entitled to receive and shall not be entitled to
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Workers' Compensation insurance, unemployment compensation, medical insurance, life
insurance, paid vacations, paid holidays, pension, profit sharing or Social Security on account
of VENDOR and its officers', agents' and employees' work for the CITY. This Agreement
does not create the relationship of agent, servant, employee partnership or joint venture
between the CITY and VENDOR.
5.8. Conflict of Interest Disclosure: VENDOR or its employees may be subject to the
provisions of the California Political Reform Act of 1974 (the "Act"), which (1) requires such
persons to disclose financial interests that may be materially affected by the work performed
under this Agreement, and (2) prohibits such persons from making or participating in making
decisions that will have a foreseeable financial effect on such interest.
VENDOR shall conform to all requirements of the Act. Failure to do so
constitutes a material breach and is grounds for termination of the Agreement by CITY.
5.9. Responsibility for Errors. VENDOR shall be responsible for its work and results
under this Agreement. VENDOR, when requested, shall furnish clarification and/or
explanation as may be required by the 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 VENDOR occurs, then VENDOR shall, at no cost to CITY, provide all other
VENDOR professional services necessary to rectify and correct the matter to the sole
satisfaction of CITY and to participate in any meetings required with regard to the correction.
VENDOR will assume the information supplied by the CITY, (or on its behalf by third
parties) is accurate and complete. VENDOR’s responsibilities (and associated compensation)
do not include independent verification of required information. Problems with information
quality and/or delays in providing such information may result in a delay in the performance
of the Services or an increase in fees.
5.10. Prohibited Employment. VENDOR shall not employ any current employee of
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CITY to perform the work under this Agreement while this Agreement is in effect.
5.11. Costs. Each party shall bear its own costs and fees incurred in the preparation
and negotiation of this Agreement and in the performance of its obligations hereunder except
as expressly provided herein.
5.12. No Third Party Beneficiary Rights. This Agreement is entered into for the sole
benefit of CITY and VENDOR and no other parties are intended to be direct or incidental
beneficiaries of this Agreement and no third party shall have any right in, under or to this
Agreement.
5.13. Headings Paragraphs and subparagraph headings contained in this Agreement
are included solely for convenience and are not intended to modify, explain or to be a full or
accurate description of the content thereof and shall not in any way affect the meaning or
interpretation of this Agreement.
5.14. Amendments. Only a writing executed by all of the parties hereto or their
respective successors and assigns may amend this Agreement.
5.15. Waiver. The delay or failure of either party at any time to require performance
or compliance by the other of any of its obligations or agreements 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 in writing and signed by a duly
authorized representative of the party against whom enforcement of a waiver is sought. The
waiver of any right or remedy with respect to any occurrence or event shall not be deemed a
waiver of any right or remedy with respect to any other occurrence or event, nor shall any
waiver constitute a continuing waiver.
5.16. 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
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Packet Pg. 267 Attachment: IT.services agreement NPA-Vendor Service Agreement (5672 : Authorize the Execution of a Vendor Services Agreement and Issue
offending provision in any other circumstance, and the remaining provisions of this
Agreement shall remain in full force and effect.
5.17. Counterparts: This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original. All counterparts shall be construed together and
shall constitute one agreement.
5.18. Corporate Authority. The persons 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.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and
date first above shown.
ATTEST: CITY OF SAN BERNARDINO
Municipal Corporation and
Charter City
__________________________ _____________________________
Gigi Hanna, City Clerk Andrea M Miller, City Manager
VENDOR:
By:____________________________
Approved as to form:
Gary D. Saenz,
Attorney
By:___________________________
HR/Agenda Items:
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Packet Pg. 270 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.REPORT (5673 : FY 2018/19 Senior Companion Program Grant Funding
submittal of the grant application, proposed budget, and narrative of proposed
administration and operation of the Senior Companion Program. A proposed budget is
attached to the grant, which specifies the City’s grant match obligation. The grant match
minimum requirement is 10% of the total grant, or $28,779. The City has included in its
FY 2018/19 adopted budget, a total contribution of $83,825, more than enough to meet
the grant match requirement. The total program cost is anticipated to be $371,613.
2018/19 Goals and Objectives
This grant submission for this program aligns with Goal No. 3: Create, Maintain and
Grow Jobs and Economic Value in the City; Goal No 6: Operate in a Fiscally
Responsible and Business-Like Manner; and Goal No 7: Pursue City Goals and
Objectives by Working with Other Agencies.
Fiscal Impact
The grant award amount is $287,788. The adopted FY 2018/19 budget includes City
funded program costs of $83,825 to meet the match to fund the program at the level it
has historically operated.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino,
California adopt Resolution No. 2018-219, ratifying the grant application submittal,
accepting the grant award of $287,788, appropriating grant revenue expenditures, and
allocating grant match expenditures for the Senior Companion Program (SCP) for the
period of July 1, 2018 through June 30, 2019.
Attachments
Attachment 1 Resolution, Exhibit “A” SCP 2018-2021 Application for Federal
Assistance
Attachment 2 SCP FY 2018/19 Grant Budget & Budget Narrative
Attachment 3 SCP FY 2018/19 Notice of Grant Award
Wards: All
Synopsis of Previous Council Actions:
On August 16, 2017, the Mayor and City Council approved Resolution No. 2017-152 ratifying the grant
application submittal accepting the grant award of $287,788, appropriate grant revenue expenditures, and
re-allocating grant match expenditures for the Senior Companion Program for the period of July 1, 2017
through June 30, 2018
On June 20th, 2016, the Mayor and Common Council approved Resolution No. 2016-120 ratifying the grant
application submittal, accept the grant award of $287,788 for Year Two of a 3-Year grant continuation and
appropriate grant expenditures with the Corporation for National Community Service for the Senior
Companion Program in the amount of $341,236 for the period of July 1, 2016 through June 30, 2017
On July 6th, 2015 the Mayor and Common Council approved Resolution No. 2015-142 ratifying the grant
application submittal, accepting the grant award for Year One of a 3-Year grant continuation and
appropriate grant expenditures from the Corporation for National and Community Service for the Senior
Companion Program in the amount of $287,788 for the period of July 1, 2015 through June 30, 2016
7/25/2018 3:36 PM
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RESOLUTION NO. 2018-219
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, RATIFYING THE GRANT APPLICATION
SUBMITTAL, ACCEPTING THE GRANT AWARD OF $287,788, APPROPRIATING
GRANT REVENUE EXPENDITURES, AND ALLOCATING GRANT MATCH
EXPENDITURES FOR THE SENIOR COMPANION PROGRAM (SCP) FOR THE
PERIOD OF JULY 1, 2018 THROUGH JUNE 30, 2019
WHEREAS, on May 5, 2018, the City submitted an application for federal assistance
requesting funding for Year One of a three (3) year Grant Allocation for the Senior
Companion Program; and
WHEREAS, on July 5, 2018, the Notice of Grant Award was received by the City for
the Senior Companion Program.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA AS FOLLOWS:
SECTION 1. The Mayor and City Council of the City of San Bernardino hereby
ratify the grant application submittal for Year One of the three (3) year Grant Allocation for
the Senior Companion Program (SCP), which is attached hereto, marked as Exhibit “A”, and
incorporated herein by reference.
SECTION 2. The Mayor and City Council hereby accept the grant award of
$287,788 to continue the administration and operation of the Senior Companion Program for
the period of July 1, 2018, through June 30, 2019, a copy of which is attached hereto, marked
as Attachment 4 and incorporated herein by reference.
SECTION 3. The Finance Director or designee is directed to appropriate the grant
award in the amount of $287,788 and make transfers within the existing FY 2018-19 budget
of $83,825 consistent with the staff report, together totaling $371,613, in the FY 2018/2019
Adopted Budget for the Senior Companion Program.
/ / /
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Packet Pg. 272 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.RESOLUTION (5673 : FY 2018/19 Senior Companion Program Grant
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, RATIFYING THE GRANT APPLICATION
SUBMITTAL, ACCEPTING THE GRANT AWARD OF $287,788, APPROPRIATING
GRANT REVENUE EXPENDITURES, AND ALLOCATING GRANT MATCH
EXPENDITURES FOR THE SENIOR COMPANION PROGRAM (SCP) FOR THE
PERIOD OF JULY 1, 2018 THROUGH JUNE 30, 2019
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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Packet Pg. 274 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.ATTACHMENT 1. EXHIBIT A SCP 2018-2021 Application For Federal
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-•A_ •�t, -. ' I I
Date:
To:
From:
Subject:
Recommendation
City of San Bernardino
Request for Council Action
August 1, 2018
Consent Calendar
Honorable Mayor and City Counci Members
Andrea M. Miller, City Manag��
By: Jim Tickemyer, Direct�f Parks, Recreation & Community
Services Department
Mitch Assumma, Community Recreation Manager
Barbara Sladek, Administrative Analyst 1
FY 2018/19 Senior Nutrition Program Grant Funding -Third
Year of a Three Year Grant Award
Adopt Resolution No. 2018-220 of the Mayor and City Council of the City of San
Bernardino, California, ratifying the execution of the third year of a three year Grant
Allocation, on County Contract 16-389 with the County of San Bernardino, Department
of Aging and Adult Services (DAAS); accepting the grant amount of up to $335,000;
appropriating the grant expenditures; issuing annual food services and consumable
product purchase orders to Sysco Foods, Merit Day, and Smith Distribution; and issuing
an annual nutrition purchase order to Consulting Health & Nutrition Services for the
period of July 1, 2018 through June 30, 2019 for the Senior Nutrition Program.
Background
The City of San Bernardino provides a senior nutrition program for seniors in the City,
60 years of age and older.
During FY 2017/18, the Senior Nutrition Program served 46,804 total meals for a daily
average of 250 individual clients at six (6) nutrition sites including the 5th Street Senior
Center, Perris Hill Senior Center, Hernandez Community Center, Lytle Creek
Community Center, New Hope Family Life Center, and Highland Senior Center.
Discussion
The program is supported by funding received from the County of San Bernardino,
Department of Adult and Aging Services. In FY 2016/17, the City was awarded funding
for three years and approved an agreement with the County, County Contract No. 16-
389. This is the third (3rd) year of the three year grant cycle with Fiscal Year beginning
July 1, 2018, through June 30, 2019. Attached is County Contract No. 16-389,
previously approved by the Mayor and City Council. The FY 2018/19 requested contract
7/24/2018 5:45 PM
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amount is not to exceed $335,000 with the program expecting to serve 51,145
congregate meals at six meal sites cumulatively.
The Department is also recommending to exercise the option to renew a Professional
Services Agreement with Consulting Health & Nutrition Services, Inc. for the Senior
Nutrition Program commencing July 1, 2018. The Senior Nutrition Program is mandated
by the Funder (USDA through DAAS), pursuant to Title 22, Division 1.8 of the California
Code Regulations, the California Retail Food Code, to ensure proper nutritional
guidelines are followed and to perform nutritional education and training for staff per
County Contract #16-389 (“Attachment A – Scope of Work, Section V., subsection C. –
Registered Dietician”). These contracted services involve nutrition education,
consultation, site monitoring, menu review, in-service employee training, and technical
assistance services and are fully covered within the grant award. The City does not
have a qualified staff member to perform those services. The 2018-2019 Agreement is
signed and executed by Maria Sauerwein, owner and licensed dietitian of Consulting &
Health Services, Inc. Ms. Sauerwein had worked as a County dietitian for several years
prior to becoming an independent consultant, assisting Senior Nutrition Grant
contractors such as the City of San Bernardino for over 26 years.
The grant requires a match of 11.11% of the Federal funded portion of the grant
revenue, or $24,587. The matching funds are included in the City’s FY 2018/19 Adopted
Budget as part of the Senior Nutrition Program budget in the Parks and Recreation
Department. The total City contribution to the program is $211,699, consistent with prior
years. Donations are also received and are expected to be $20,000 in FY 2018/19
based on previous experience and serve to offset the City’s total cost of the program.
In conformance with the provisions of the grant, the proposed action is to execute the
third (3rd) year of a three (3) year agreement and to issue annual purchase orders for
the food vendors of Sysco Foods, Merit Day, and Smith Distribution, Inc. and for the
nutrition services of a licensed dietician for the term of one year beginning July 1, 2018.
2018-19 Goals and Objectives
Ratification of the grant submission for the Senior Nutrition Program aligns with Goal No
3: Create, maintain and grow jobs and economic value in the City; Goal No 6: Operate
in a fiscally responsible and business-like manner; and Goal No 7: Pursue City goals
and objectives by working with other agencies.
Fiscal Impact
The amount of grant funding currently available to the City from the County for FY
2018/19 is $281,300. The contract may be increased to $335,000 should additional
funding be available after the program has begun for the year. The City’s contribution to
the program is budgeted at $211,699 for FY 2018/19 and consists of $49,807 in
volunteer labor, $98,325 in food purchases, and $63,567 in utility costs already being
funded for the facilities. The required matching Federal contribution requirement for FY
2018/19 is 11.11%, or $24,587. This is met through the contributions noted above. The
7/25/2018 1:07 PM
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Packet Pg. 298 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.REPORT (5674 : FY 2018/19 Senior Nutrition Program Grant Funding – Third Year
program’s revenue goal includes collecting $20,000 in donations, based on past
contributions, from participating senior-age clients.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino,
California adopt Resolution No. 2018-220, ratifying the execution of the third year of a
three (3) year Grant Allocation, on County Contract 16-389 with the County of San
Bernardino, Department of Aging and Adult Services (DAAS); accepting the grant
amount of up to $335,000; appropriating grant expenditures; issuing annual food
services and consumable product purchase orders to Sysco Foods, Merit Day, and
Smith Distribution; and issuing an annual nutrition purchase order to Consulting Health
& Nutrition Services for the period of July 1, 2018 through June 30, 2019 for the Senior
Nutrition Program.
Attachments
Attachment 1 Resolution, Exhibit “A”- County Contract No. 16-389
Attachment 2 FY 2018-19 Program Budget
Attachment 3 Resolution No. 2017-151
Ward: 1, 2, 3, 4, 5, 6
Synopsis of Previous Council Actions:
On July 19th, 2017 the Mayor and City Council approved Resolution No. 2017-151 ratifying the execution of
County Contract 16-389 with the County of San Bernardino Department of Aging and Adult Services,
accepting the grant amount of up to $335,000, appropriating grant revenue expenditures, reallocating grant
match expenditures, and issuing purchase orders to Sysco Foods, Merit Day, and Smith Distribution for the
period of July 1, 2017 through June 30, 2018 for the Senior Nutrition Program
7/25/2018 1:07 PM
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Packet Pg. 299 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.REPORT (5674 : FY 2018/19 Senior Nutrition Program Grant Funding – Third Year
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RESOLUTION NO. 2018-220
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF SAN BERNARDINO,
CALIFORNIA, RATIFYING THE EXECUTION OF THE THIRD YEAR OF A
THREE-YEAR GRANT ALLOCATION ON COUNTY CONTRACT 16-389 WITH
THE COUNTY OF SAN BERNARDINO, DEPARTMENT OF AGING AND ADULT
SERVICES (DAAS); ACCEPTING THE GRANT AMOUNT OF UP TO $335,000;
APPROPRIATING GRANT EXPENDITURES; ISSUING ANNUAL FOOD
SERVICES AND CONSUMABLE PRODUCT PURCHASE ORDERS TO SYSCO
FOODS, MERIT DAY, AND SMITH DISTRIBUTION; AND ISSUING AN ANNUAL
PURCHASE ORDER TO CONSULTING HEALTH & NUTRITION SERVICES FOR
THE PERIOD OF JULY 1, 2018 THROUGH JUNE 30, 2019 FOR THE SENIOR
NUTRITION PROGRAM
WHEREAS, the City of San Bernardino was awarded a three (3) year grant in the
amount of $1,005,000, whereas $335,000 will be awarded for each of the three (3) years; and
WHEREAS, the grant requires a City Match of 11.11%; and
WHEREAS, on August 16, 2017, the Mayor and City Council approved Year Two of
a three (3) year Grant Allocation from the County of San Bernardino, Department of Adult
and Aging Services (DAAS) for the Senior Nutrition Program pursuant to Resolution Number
2017-151; and
WHEREAS, the City of San Bernardino desires to provide nutrition services to the
senior community.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA AS FOLLOWS:
SECTION 1. The Mayor and City Council of the City of San Bernardino hereby
ratify year three (3) of a three (3) year Grant Allocation pursuant to the terms of the County
contract No. 16-389 with the County of San Bernardino to operate the Senior Nutrition
Program.
SECTION 2. The Mayor and City Council of the City of San Bernardino hereby
accept the grant award of up to $ 335,000 and authorize the Director of Finance, or designee,
to appropriate that amount for the continued operation of the Senior Nutrition Program
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pursuant to the Fiscal Year 2018-19 operating Budget and to issue annual purchase orders to
Sysco Foods, Merit Day, and Smith Distribution, Inc. for food services and consumable
supplies and to Consulting Health & Nutrition Services for nutrition and education services
for Fiscal Year 2018-19 per the third (3rd) year of a three (3) year grant allocation.
SECTION 3. The Director of Finance is directed to adjust the existing budget
appropriations amongst the Park & Recreation accounts to accurately reflect the grant match
budget consistent with this resolution.
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF SAN BERNARDINO,
CALIFORNIA, RATIFYING THE EXECUTION OF THE THIRD YEAR OF A
THREE YEAR GRANT ALLOCATION, ON COUNTY CONTRACT 16-389 WITH
THE COUNTY OF SAN BERNARDINO, DEPARTMENT OF AGING AND ADULT
SERVICES (DAAS); ACCEPTING THE GRANT AMOUNT OF UP TO $335,000;
APPROPRIATING GRANT EXPENDITURES; ISSUING ANNUAL FOOD
SERVICES AND CONSUMABLE PRODUCT PURCHASE ORDERS TO SYSCO
FOODS, MERIT DAY, AND SMITH DISTRIBUTION; AND ISSUING AN ANNUAL
NUTRITION PURCHASE ORDER TO CONSULTING HEALTH & NUTRITION
SERVICES FOR THE PERIOD OF JULY 1, 2018 THROUGH JUNE 30, 2019 FOR
THE SENIOR NUTRITION PROGRAM
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
and City Council of the City of San Bernardino at a ____________________ meeting thereof,
held on the _____ day of ________________, 2018, by the following vote, to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, CMC, City Clerk
The foregoing Resolution is hereby approved this _____ day of ________________, 2018.
R. Carey Davis, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz, City Attorney
By:
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PROGAM:lllC
Provider:City of San Bernardino Fiscal Year/Period:July 1, 2018 to June 30, 2019 Original x Amend
Match Requirement:
# of Days Served:
# of Meals-DAAS Funding # of Meals-DAAS Funding
SERVICE # of Meals-Total Funding # of Meals-Total Funding
1
2
3
4
5
6
7
8
a Supplies
b Insurance
c Repair & Maintenance
d Rent/Building Space
e
f
g
9
Total C1 Total C2
Submitted by:DAAS Approval:
Total DAAS Funding
Mitch Assumma
Signature Date
NSIP
State Special Nutrition Funds
Expenditure Category:
Personnel 212,000$ 49,807$ 261,807$
Non-Inventoriable Equipment -$
Consultants 12,325$ 13,825$
Staff Travel & Training -$
Equipment
COUNTY OF SAN BERNARDINO NUTRITION SERVICES
PROGRAM BUDGET
252
DAAS Funding
(Cash)Total
Program Income and In-
kind
DAAS Funding
(Cash)
Program Income and
In-kind
DAAS Funding
(Cash)
Program Income and
In-kind
51,710
90,625
-
-
-$
1,500$
Other Expenses:-$
12,000$ 12,000$
-$
Raw Food 35,175$ 98,325$ 133,500$
-$
Utilities 63,567$ 63,567$
-$
2,300$ 2,300$
Vehicle Operations -$
Miscellaneous 6,000$ 6,000$
Indirect Cost -$
Total Expenditures (add lines 1-7)279,800$ 211,699$ 492,999$
Revenue Sources:
Program Income and In-
kind Total
DAAS Funding
(Cash)
-$
Program Income and
In-kind
1,500$
DAAS Funding
(Cash)
-$
-$
Program Income 20,000$ 20,000$
Federal Funds 219,800$ 221,300$
State Funds 35,000$ 35,000$
1,500$
-$
25,000$
-$
25,000$ -$ -$
-$
Total Revenue 279,800$ 211,699$ 492,999$
Matching In-Kind 113,374$ 113,374$
Non-Match Cash -$
Non-Match In-Kind -$
1,500$ -$
Deferred Income -$
Matching Cash 78,325$ 78,325$
County Funds -$ -$
DAAS Funding
(Cash)
Program Income and
In-kind
-$ -$
-$
DAAS Funding
(Cash)
-$
DAAS Funding
(Cash)
Program Income and
In-kind
-$
-$
-$
-$ -$
-$
Program Income and
In-kind
-$
-$
-$
-$
-$
6/4/2018
492,999$
281,300$
24,586.43$
C-1 Meals C-1 Nutrition Education C-2 Meals C-2 Nutrition Education
Catered Food
13.dPacket Pg. 370Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 2. FY 18-19 Program Budget (5674 : FY 2018/19 Senior Nutrition
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RESOLUTION NO. 2017-151
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, RATIFYING THE EXECUTION OF COUNTY
CONTRACT 16-389 WITH THE COUNTY OF SAN BERNARDINO DEPARTMENT
OF AGING AND ADULT SERVICES (DAAS), ACCEPTING THE GRANT AMOUNT
OF UP TO $335,000, APPROPRIATING GRANT REVENUE EXPENDITURES, RE-
ALLOCATING GRANT MATCH EXPENDITURES, AND ISSUING PURCHASE
ORDERS TO SYSCO FOODS, MERIT DAY, AND SMITH DISTRIBUTION FOR
THE PERIOD OF JULY 1, 2017, THROUGH JUNE 30, 2018, FOR THE SENIOR
NUTRITION PROGRAM
WHEREAS, the City of San Bernardino was awarded a three (3) year grant in the
amount of $1,005,000, whereas $335,000 will be awarded for each of the three (3) years; and
WHEREAS, the grant requires a City Match is of a minimum of 10% and the match
is 11.1%; and
WHEREAS, on July 18, 2016, the Mayor and City Council approved Year One of a
three (3) year Grant Allocation from the County of San Bernardino, Department of Adult and
Aging Services (DAAS) for the Senior Nutrition Program pursuant to Resolution Number
2016-154; and
WHEREAS, the City of San Bernardino desires to continue to provide nutrition
services to the senior community.
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AS FOLLOWS:
SECTION 1. The Mayor and City Council of the City of San Bernardino hereby
ratify year two (2) of a three (3) year Grant Allocation pursuant to the terms of the County
contract No. 16-389 with the County of San Bernardino to operate the Senior Nutrition
Program.
SECTION 2. The Mayor and City Council hereby accept the grant award of up to
335,000 and authorize the Director of Finance, or designee, to appropriate that amount for
the continued operation of the Senior Nutrition Program pursuant to the Fiscal Year 2017-
2018 Adopted Budget and to issue annual purchase orders to Sysco Foods, Merit Day, and
1
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Packet Pg. 371 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 3- Reso. No. 2017-151 (5674 : FY 2018/19 Senior Nutrition Program
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Smith Distribution, Inc. for food services and consumable supplies for Fiscal Year 2017-2018
per the second (2"d) year of a three (3) year grant allocation.
SECTION 3. The Director of Finance is directed to transfer existing budget
appropriations to the appropriate accounts to accurately reflect where the costs and expenses
meeting the grant match will be incurred.
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, RATIFYING THE EXECUTION OF COUNTY
CONTRACT 16-389 WITH THE COUNTY OF SAN BERNARDINO DEPARTMENT
OF AGING AND ADULT SERVICES (DAAS), ACCEPTING THE GRANT AMOUNT
OF UP TO $ 335,000, APPROPRIATING GRANT REVENUE EXPENDITURES, RE-
ALLOCATING GRANT MATCH EXPENDITURES, AND ISSUING PURCHASE
ORDERS TO SYSCO FOODS, MERIT DAY, AND SMITH DISTRIBUTION FOR
THE PERIOD OF JULY 1, 2017, THROUGH JUNE 30, 2018, FOR THE SENIOR
NUTRITION PROGRAM
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
and City Council of the City of San Bernardino at a Joint Regular Meeting thereof, held on
the
16th day of August 2017, by the following vote, to wit:
Council Members:
MARQUEZ
BARRIOS
VALDIVIA
SHORETT
NICKEL
RICHARD
MULVIHILL
AYES NAYS
x
XM
X
x
X
X(S)
ABSTAIN ABSENT
x
George Hamra, C C, City Clerk
The foregoing Resolution is hereby approved this 16th day of Au/ st 2017
R. Carey Davi. Mayor
City of San B rnardino
Approved as to form:
Gary D. Saenz, City Attorney
By:
3
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Packet Pg. 373 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 3- Reso. No. 2017-151 (5674 : FY 2018/19 Senior Nutrition Program
14.a
Packet Pg. 374 Attachment: PD-WestCoastLightsSirens PO report (5675 : Authorize Execution of Vendor Services Agreement and Purchase Order to West
Discussion
West Coast Lights & Sirens is the second qualifying vendor on the bid. In June and July
of 2018, Police and Fleet Management staff met with the owner of West Coast Lights &
Sirens. It was determined that they could complete the vehicle builds on the remaining
22 police vehicles in less than 90 days. West Coast Lights & Sirens has agreed to
charge the amount quoted on their original bid, F-17-04, for the 2018 police vehicles.
Staff is requesting that the Vendor Services Agreement with Innovative Emergency
Equipment be terminated per Section 3 of the agreement and that a Vendor Services
Agreement be executed with West Coast Lights & Sirens and a Purchase Order be
issued to West Coast Lights & Sirens for the build of twenty-two 2018 Ford Police
vehicles.
Mayor and City Council and City Manager Goals and Objectives
Changing the vendor used to install police safety equipment on police vehicles aligns
with Goal No. 5: Improve City Government Operations: Evaluate operations and
performance through investment in the resources, technology and tools needed to
continually improve organizational efficiency and effectiveness.
Fiscal Impact
The FY 2017/18 Purchase Order issued to Innovative Emergency Equipment will be
closed and funds unencumbered. The unencumbered funds will be included in the
Police Department’s unencumbered carryover request for FY 2017/18. There is enough
funding in the Adopted FY 2018/19 budget to allow a new Purchase Order to be issued
to West Coast Lights & Sirens. The FY 2017/18 carryover of unencumbered funds will
restore the majority of the fund balance for new police vehicles to be purchased in FY
2018/19.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino adopt
Resolution No. 2018-221 approving the execution of a Vendor Services Agreement with
and Purchase Order to West Coast Lights & Sirens.
Attachments
Attachment 1 Resolution; Exhibit 1 – Vendor Services Agreement
Attachment 2 Bid Summary F-17-04
Ward: All
Synopsis of Previous Council Actions:
On 6/7/17, the Mayor and City Council adopted Resolution 2017-101 authorizing the issuance of a
Purchase Order to Innovative Emergency Equipment in the amount of $251,000 and the execution
of a Vendor Service Agreement for the purchase and installation of safety equipment on new police
vehicles.
On December 6, 2017, the Mayor and City Council adopted Resolution 2017-235 authorizing the
issuance of a Purchase Order to Innovative Emergency Equipment in the amount of $260,000 for
the purchase and installation of safety equipment on new 2018 police vehicles and removal of
equipment on decommissioned police vehicles. 7/25/2018 1:04 PM
14.a
Packet Pg. 375 Attachment: PD-WestCoastLightsSirens PO report (5675 : Authorize Execution of Vendor Services Agreement and Purchase Order to West
ATTACHMENT 1
TITLE: Resolution
14.b
Packet Pg. 376 Attachment: PD-WestCoastLightsSirens Attachment 1-Resolution (5675 : Authorize Execution of Vendor Services Agreement and Purchase
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RESOLUTION NO. 2018-221
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING THE EXECUTION OF A VENDOR SERVICE
AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND WEST COAST
LIGHTS & SIRENS AND THE ISSUANCE OF A PURCHASE ORDER IN THE
AMOUNT OF $253,280
WHEREAS, the Vendor Service Agreement and Purchase Order issued to Innovative
Emergency Equipment is being terminated; and
WHEREAS, West Coast Lights & Sirens was the second qualified bidder on RFQ F-17-
04;
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
SECTION 1. The City Manager is hereby authorized to execute a Vendor Service
Agreement between the City of San Bernardino and West Coast Lights & Sirens for the purchase
and installation of Police safety equipment on 22 new vehicles owned by the San Bernardino
Police Department.
SECTION 2. The Director of Finance is hereby authorized to issue a Purchase Order to
West Coast Lights and Sirens in an amount not to exceed $253,280.
///
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING THE EXECUTION OF A VENDOR SERVICE
AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND WEST COAST
LIGHTS & SIRENS AND THE ISSUANCE OF A PURCHASE ORDER IN THE
AMOUNT OF $253,280
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: _________________________
2
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Packet Pg. 378 Attachment: PD-WestCoastLightsSirens reso (5675 : Authorize Execution of Vendor Services Agreement and Purchase Order to West Coast
EXHIBIT 1
TITLE: Vendor Service Agreement
14.d
Packet Pg. 379 Attachment: PD-WestCoastLightsSirens Exhibit 1-VSA (5675 : Authorize Execution of Vendor Services Agreement and Purchase Order to West
VENDOR SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO
AND WEST COAST LIGHTS & SIRENS, INC., FOR PURCHASE AND
INSTALLATION OF SAFETY EQUIPMENT IN POLICE VEHICLES OWNED BY THE
SAN BERNARDINO POLICE DEPARTMENT
This Vendor Services Agreement is entered into this __ day of _ by and
between West Coast Lights & Sirens, Inc. (“VENDOR”) and the City of San Bernardino
(“CITY” or “San Bernardino”).
WITNESSETH:
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 the purchase and installation of Police
safety equipment in 22 Ford vehicles owned by the San Bernardino Police Department; and
WHEREAS, the City did solicit and accept quotes from available vendors in Request for
Quote F-17-04.
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 products and services as set forth in West Coast Lights & Sirens, Inc., proposal to
the CITY public bid F-17-04 (dated February 13, 2017).
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 $253,280.00
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 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
14.e
Packet Pg. 380 Attachment: PD-WestCoastLightsSirens VSA (5675 : Authorize Execution of Vendor Services Agreement and Purchase Order to West Coast
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.
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:
2
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Packet Pg. 381 Attachment: PD-WestCoastLightsSirens VSA (5675 : Authorize Execution of Vendor Services Agreement and Purchase Order to West Coast
Andrea M. Miller Danny Gonzalez
City Manager President
City of San Bernardino West Coast Lights & Sirens
290 North “D” Street 601 Columbia Ave., SteB
San Bernardino, CA 92418 Riverside, CA 92507
Telephone: (909) 384-5122 Telephone: (951) 779-9257
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.
3
14.e
Packet Pg. 382 Attachment: PD-WestCoastLightsSirens VSA (5675 : Authorize Execution of Vendor Services Agreement and Purchase Order to West Coast
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 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.
VENDOR SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO
AND WEST COAST LIGHTS & SIRENS, INC., FOR PURCHASE AND
INSTALLATION OF SAFETY EQUIPMENT IN POLICE VEHICLES OWNED BY THE
SAN BERNARDINO POLICE DEPARTMENT
IN WITNESS THEREOF, the parties hereto have executed this Agreement on the day
and date set forth below.
4
14.e
Packet Pg. 383 Attachment: PD-WestCoastLightsSirens VSA (5675 : Authorize Execution of Vendor Services Agreement and Purchase Order to West Coast
Dated: ____________, 2018 VENDOR.
By: ___________________________
Its: ___________________________
Dated ____________, 2018 CITY OF SAN BERNARDINO
By:___________________________
Andrea M. Miller, City Manager
Approved as to Form:
Gary Saenz, City Attorney
By: ______________________
5
14.e
Packet Pg. 384 Attachment: PD-WestCoastLightsSirens VSA (5675 : Authorize Execution of Vendor Services Agreement and Purchase Order to West Coast
ATTACHMENT 2
TITLE: F-17-04 Bid Summary
14.f
Packet Pg. 385 Attachment: PD-WestCoastLightsSirens Attachment 2-BidSummary (5675 : Authorize Execution of Vendor Services Agreement and Purchase
RFQ F-17-04 3/1/2017 3:00 P.M., PST
ITEMS/CATEGORY
DESCRIPTION 1 2 3 4
Airwave West Coast Lights &Innovative Emergency
Communications Ent.Sirens Inc.Equipment
City of Commerce, Ca.Riverside, Ca.Riverside, Ca
Item #
1 Equipment, Labor and Shipping 308,079.72 251,734.89 220,501.78
Shipping
8.25% Sales Tax 25,416.50 20,768.13 18,191.33
Local Vendor ? N N N
GRAND TOTAL 333,496.22$ 272,503.02$ 238,693.11$
Opened and announced by Vanessa Slouka Recorded by Art Torres
BID SUMMARY SHEET
Vendors
14.gPacket Pg. 386Attachment: PD-WestCoastLightsSiren Bid Summary Attach2 (5675 : Authorize Execution of Vendor Services Agreement and Purchase Order to
PROPOSAL
Date
6/27/2018
Estimate #
7714Name / Address
CITY OF SAN BERNARDINO
ACCOUNTS PAYABLE
OFFICE OF THE PURCHASING DIVISION
300 N. "D" ST.
SAN BERNARDINO,CA 92418
W EST CO AST LIGHTS & SIREN S, IN C.
601 COLUMBIA AVENUE
UNIT "B"
RIVERSIDE, CA 92507
Project
Phone # 9517799257
Fax # 951-779-9256
trish@wcls.us
WCLS.US
Total
Subtotal
Sales Tax (8.0%)
Item Description Qty Cost Total
INSTALLATION L... INSTALLATION LABOR FOR ODOMETER UNDER 500
MILES
30 70.00 2,100.00T
>>TO INSTALL EMERGENCY EQUIPMENT INTO A 2016
FORD SEDAN.
>>ALSO TO INSTALL CUSTOMER SUPPLIED CONSOLE W/
ARMREST, RADIO, MODEM W/ ANTENNA, DOCKING
STATION, AND KEYBOARD W/ MOUNT
>>W/ CODE-1/SECURE IDLE
VALR44S-SBAD 44" VALOR RED / BLUE FOR SAN BDINO PD 1 1,800.00 1,800.00T
SSP3000B SMART SIREN PLATINUM (OVERHEAD) 1 758.40 758.40T
>>SMART SIREN CONTROLLER MOUNTED ON
HEADLINER
MS4000U MS4000 UNDERCOVER, 100W AIR HORN WITH REMOTE
(DUAL TONE)
1 159.00 159.00T
ES100C ES100C SPEAKER W/O BRACKET (MOUNTED ON BUMPER)2 156.00 312.00T
ESB-U KIT, UNIVERSAL BAIL BRACKET , ALL VEHICLES 2 18.75 37.50T
SI240-T-IH SECURE IDLE FOR FORD SEDAN AND UTILITY 1 148.85 148.85T
5039 PUSH BUMPER FOR TAURUS INTERCEPTORS 1 211.16 211.16T
5039WHD FORD INTERCEPTOR SEDAN HEAVY DUTY WRAP, WILL
BOLT TO THE 5039
1 290.37 290.37T
SHIPPING SHIPPING 1 50.00 50.00
7189B 150 AMP BREAKER 1 23.98 23.98T
CBB-BK-S SEDAN CIRCUIT BREAKER BRACKET 1 12.00 12.00T
5028B FUSE BLOCK ST BLADE 6 CIRCUIT 1 17.71 17.71T
5026B FUSE BLOCK STBLADE 12 CIRC W/GND/CVR 1 28.73 28.73T
6001 250 AMP RELAY W/ BUILT IN POWER TAMER (TOP H.A.T.)1 125.13 125.13T
Page 1
14.g
Packet Pg. 387 Attachment: PD-WestCoastLightsSiren Bid Summary Attach2 (5675 : Authorize Execution of Vendor Services Agreement and Purchase Order
PROPOSAL
Date
6/27/2018
Estimate #
7714Name / Address
CITY OF SAN BERNARDINO
ACCOUNTS PAYABLE
OFFICE OF THE PURCHASING DIVISION
300 N. "D" ST.
SAN BERNARDINO,CA 92418
W EST CO AST LIGHTS & SIREN S, IN C.
601 COLUMBIA AVENUE
UNIT "B"
RIVERSIDE, CA 92507
Project
Phone # 9517799257
Fax # 951-779-9256
trish@wcls.us
WCLS.US
Total
Subtotal
Sales Tax (8.0%)
Item Description Qty Cost Total
FABRICATED FABRICATION-REAR FOLD DOWN TRAY W/
VENTILATION
1 150.00 150.00T
WG-FDPI-DS/PS WINDOW BARS FOR FORD INTERCEPTOR 1 186.03 186.03T
DP-FDPI-DS &PS REAR DOOR PANELS FOR FORD SEDAN 1 175.50 175.50T
TP-E-SL3-US-SS **REPLACES P/N: TP-US-SS-TROY3** RECESSED BACK
PANEL, 50% POLYCARB, 50% SQUARE-HOLE PUNCHED
DESIGN
1 544.05 544.05T
2-SAB-FDPI PARTITION MOUNTING KIT FOR FORD POLICE
INTERCEPTOR SEDAN
1 0.00 0.00T
KP-FDPIBF-SS 3-PC. KICK PANEL WITH BIG-FOOT POCKETS,
INTERCEPTOR SEDAN
1 108.81 108.81T
SHIPPING SHIPPING OF TROY PRODUCTS 1 100.00 100.00
S36INT13OSB CHARCOAL GREY ABS, STANDARD SEAT (FEATURES
STRAIGHT BACK) AND OUTBOARD SEAT BELTS
1 493.20 493.20T
SHIPPING SHIPPING OF PRO GARD PRODUCTS 1 139.92 139.92
416910-W SINGLE COLOR CORNER LED WITH IN LINE FLASHER
(HEADLIGHTS)
2 55.50 111.00T
416910-R SINGLE COLOR LED W/IN LINE FLASHER, RED (REVERSE
LIGHTS)
2 55.50 111.00T
MPS600U-BA 6-LED LIGHTHEAD, (BLUE/AMBER)MICROPULSE ULTRA
(FOR TRUNK LID)
2 60.00 120.00T
MPSM6-LB FEDERAL SIGNAL SINGLE L-BRACKETS 2 9.56 19.12T
MPS600U-BR 6-LED LIGHTHEAD, (BLUE/RED)MICROPULSE ULTRA (ON
MIRROR)
2 60.00 120.00T
MPSM6U-SPACRKT SPACER KIT FOR THE ULTRA MPS LIGHTS 2 13.73 27.46T
Page 2
14.g
Packet Pg. 388 Attachment: PD-WestCoastLightsSiren Bid Summary Attach2 (5675 : Authorize Execution of Vendor Services Agreement and Purchase Order
PROPOSAL
Date
6/27/2018
Estimate #
7714Name / Address
CITY OF SAN BERNARDINO
ACCOUNTS PAYABLE
OFFICE OF THE PURCHASING DIVISION
300 N. "D" ST.
SAN BERNARDINO,CA 92418
W EST CO AST LIGHTS & SIREN S, IN C.
601 COLUMBIA AVENUE
UNIT "B"
RIVERSIDE, CA 92507
Project
Phone # 9517799257
Fax # 951-779-9256
trish@wcls.us
WCLS.US
Total
Subtotal
Sales Tax (8.0%)
Item Description Qty Cost Total
FABRICATED FABRICATION-DUAL GUN RACK W/ ADJUSTABLE AR
LOCK
1 150.00 150.00T
SC-1 SANTA CRUZ GUN LOCK S-C1 W STANDARD KEY 1 65.63 65.63T
SC-6 XL HANDCUFF STYLE GUN LOCK 1 101.40 101.40T
OMWV002FB BUTT PLATE DUAL FOR WEAPON 2 9.78 19.56T
USGT GUN LOCK TIMER 1 36.34 36.34T
>>2 BUTTONS UNDER DRIVER AND PASSENGER DASH
FOR GUN RELEASE
LF12ERB LITLITE, 12" RHEO, END CHAS MAPLIGHT (DR. AND
PASS. FRONT A PILLARS)
2 38.00 76.00T
ANXMB8U 3/4" HOLE NMO STYLE BRASS MT W/17" RG58U & NO
CONNECTOR
1 10.47 10.47T
FABRICATED FABRICATION-FABRICATION-NARROW BOX TO HOLD
LOOSE ITEMS
1 215.00 215.00T
1011B 15 AMP 12VOLT DC SOCKET (2 ON BLANK FACEPLATE IN
CONSOLE)
2 3.65 7.30T
WCFEH FRONT END HARNESS, W/GXL & TXL WIRE 1 50.36 50.36T
327768 SAMLEX AMERICA-450 WATT AC INVERTER W/ USB
PORT, MODIFIED SINE WAVE
1 49.00 49.00T
FABRICATED FABRICATION-TO MODIFY CONSOLE TO MOUNT
INVERTER INSIDE
1 63.75 63.75T
FABRICATED FABRICATION-DOOR LOCK RODS (PAIR) 1 170.00 170.00T
JOB MATERIALS MISC. PARTS, WIRE, ZIP TIES, CLAMPS, FASTENERS,
RELAYS, ETC.
1 200.00 200.00T
Page 3
PROPOSAL IS VALID FOR 30 DAYS
CALIFORNIA CERTIFIED SMALL BUSINESS #49878
NOTE: SALES TAX WILL BE CHARGED ON ANY INSTALLATION LABOR ON A VEHICLE
WITH 500 MILES OR LESS PER NEW CALIFORNIA STATE BOE REGULATIONS.
$10,448.19
$9,695.73
$752.46
14.g
Packet Pg. 389 Attachment: PD-WestCoastLightsSiren Bid Summary Attach2 (5675 : Authorize Execution of Vendor Services Agreement and Purchase Order
PROPOSAL
Date
6/27/2018
Estimate #
7715Name / Address
CITY OF SAN BERNARDINO
ACCOUNTS PAYABLE
OFFICE OF THE PURCHASING DIVISION
300 N. "D" ST.
SAN BERNARDINO,CA 92418
W EST CO AST LIGHTS & SIREN S, IN C.
601 COLUMBIA AVENUE
UNIT "B"
RIVERSIDE, CA 92507
Project
Phone # 9517799257
Fax # 951-779-9256
trish@wcls.us
WCLS.US
Total
Subtotal
Sales Tax (8.0%)
Item Description Qty Cost Total
INSTALLATION L... INSTALLATION LABOR FOR ODOMETER UNDER 500
MILES
34 70.00 2,380.00T
>>TO INSTALL EMERGENCY EQUIPMENT INTO 2016 FORD
UTILITY.
>>ALSO TO INSTALL CUSTOMER SUPPLIED CONSOLE W/
ARMREST, RADIO, MODEM W/ ANTENNA, DOCKING
STATION, AND KEYBOARD W/ MOUNT
>>W/ CODE-1/SECURE IDLE
VALR44S-SBAD 44" VALOR RED / BLUE FOR SAN BDINO PD 1 1,800.00 1,800.00T
SSP3000B SMART SIREN PLATINUM (OVERHEAD) 1 758.40 758.40T
>>SMART SIREN CONTROLLER MOUNTED ON
HEADLINER
MS4000U MS4000 UNDERCOVER, 100W AIR HORN WITH REMOTE
(FOR DUAL TONE)
1 159.00 159.00T
ES100C ES100 SPEAKER W/O BRACKET (MOUNTED ON BUMPER)2 144.00 288.00T
ESB-U KIT, UNIVERSAL BAIL BRACKET , ALL VEHICLES 2 22.88 45.76T
SI240-T-IH SECURE IDLE FOR FORD SEDAN AND UTILITY 1 148.85 148.85T
5342 PUSH BUMPER FOR 2016 FORD UTILITY INTERCEPTOR
(NON-ECO-BOOST)
1 286.51 286.51T
5342WHD WRAP AROUND FOR 2016 FORD UTILITY INTERCEPTOR 1 281.90 281.90T
SHIPPING SHIPPING 1 50.00 50.00
7189B 150 AMP BREAKER 1 25.57 25.57T
CBB-BK CIRCUIT BREAKER BRACKET FOR UTILITY 1 12.00 12.00T
5028B FUSE BLOCK ST BLADE 6 CIRCUIT 1 17.71 17.71T
5026B FUSE BLOCK STBLADE 12 CIRC W/GND/CVR 1 28.73 28.73T
6001 250 AMP RELAY W/ BUILT IN POWER TAMER (TOP H.A.T.)1 125.13 125.13T
Page 1
14.g
Packet Pg. 390 Attachment: PD-WestCoastLightsSiren Bid Summary Attach2 (5675 : Authorize Execution of Vendor Services Agreement and Purchase Order
PROPOSAL
Date
6/27/2018
Estimate #
7715Name / Address
CITY OF SAN BERNARDINO
ACCOUNTS PAYABLE
OFFICE OF THE PURCHASING DIVISION
300 N. "D" ST.
SAN BERNARDINO,CA 92418
W EST CO AST LIGHTS & SIREN S, IN C.
601 COLUMBIA AVENUE
UNIT "B"
RIVERSIDE, CA 92507
Project
Phone # 9517799257
Fax # 951-779-9256
trish@wcls.us
WCLS.US
Total
Subtotal
Sales Tax (8.0%)
Item Description Qty Cost Total
CP-UV-CARGO-MNT TILT-UP CARGO MOUNT FOR FORD UTILITY 1 292.50 292.50T
FABRICATED FABRICATION- CUT DOWN CARGO MNT TO
ACCOMMODATE PRO-GARD TRANSPORT SEAT
1 47.50 47.50T
DP-FDUV-DS-PS DOOR PANELS FOR REAR OF SUV 1 155.25 155.25T
WG-FDUV-SET REAR WINDOW GUARDS FOR FORD UTILITY ( VERTICAL
)
1 158.63 158.63T
TP-E-SL3-US-SS **REPLACES P/N: TP-US-SS-TROY3** RECESSED BACK
PANEL, 50% POLYCARB, 50% SQUARE-HOLE PUNCHED
DESIGN
1 502.20 502.20T
2-SAB-FDUV-BB FORD UTILITY 'BIG-BOY' PARTITION MOUNTING KIT; W/
ADDED SEAT BACK RECLINE 2013-2017
1 0.00 0.00T
KP-UV-DAP-SS FLAT KICK PANEL FOR FRONT PARTITION 1 80.73 80.73T
SHIPPING SHIPPING OF TROY PRODUCTS 1 100.00 100.00
S4702UINT13OSB STANDARD TRANSPORT SEAT W/ POLY WINDOW
CARGO BARRIER, AND OUTBOARD SEAT BELTS, 2015-2016
FORD UTILITY
1 1,136.16 1,136.16T
SHIPPING SHIPPING OF PRO GARD PRODUCTS 1 139.92 139.92
FHL-CHG FLASHER, HEADLIGHT 1 51.60 51.60T
416900-RB DUAL CORNER LED LIGHT HEAD W/IN-LINE FLASHER ,
RED/BLUE
2 55.50 111.00T
416900-BA DUAL CORNER LED LIGHT HEAD W/IN-LINE FLASHER
(REVERSE LIGHTS)
2 55.50 111.00T
MPS600U-BA 6-LED LIGHTHEAD, (BLUE/AMBER) MICROPULSE ULTRA
(HATCH)
2 60.00 120.00T
>>W/ ON/OFF SWITCH
Page 2
14.g
Packet Pg. 391 Attachment: PD-WestCoastLightsSiren Bid Summary Attach2 (5675 : Authorize Execution of Vendor Services Agreement and Purchase Order
PROPOSAL
Date
6/27/2018
Estimate #
7715Name / Address
CITY OF SAN BERNARDINO
ACCOUNTS PAYABLE
OFFICE OF THE PURCHASING DIVISION
300 N. "D" ST.
SAN BERNARDINO,CA 92418
W EST CO AST LIGHTS & SIREN S, IN C.
601 COLUMBIA AVENUE
UNIT "B"
RIVERSIDE, CA 92507
Project
Phone # 9517799257
Fax # 951-779-9256
trish@wcls.us
WCLS.US
Total
Subtotal
Sales Tax (8.0%)
Item Description Qty Cost Total
MPS600U-BR 6-LED LIGHTHEAD, (BLUE/RED)MICROPULSE ULTRA
(SIDE MIRRORS)
2 60.00 120.00T
MPSM6U-SPACRKT SPACER KIT FOR THE ULTRA MPS LIGHTS 1 13.73 13.73T
FABRICATED FABRICATION-DUAL GUN RACK W/ ADJUSTABLE AR
LOCK
1 150.00 150.00T
SC-1 SANTA CRUZ GUN LOCK S-C1 W STANDARD KEY 1 64.67 64.67T
SC-6 XL HANDCUFF STYLE GUN LOCK 1 101.40 101.40T
OMWV002FB BUTT PLATE FOR WEAPON 2 9.78 19.56T
USGT GUN LOCK TIMER 1 35.50 35.50T
>>2 BUTTONS UNDER DRIVER AND PASSENGER FOR
RELEASE
LF12ERB LITLITE, 12" RHEO, END CHAS MAPLIGHT 2 38.00 76.00T
ANXMB8U 3/4" HOLE NMO STYLE BRASS MT W/17" RG58U & NO
CONNECTOR
1 10.47 10.47T
AC-UV-R-SET 2013-17 PI UTILITY DRIVER/PASSENGER SET OF CARGO
WINDOW SCREENS; SQUARE-HOLE PUNCHED
1 125.00 125.00T
AC-UV-HATCH FORD UTILITY HATCH WINDOW SCREEN 1 85.50 85.50T
FABRICATED FABRICATION-FABRICATION-NARROW BOX TO HOLD
LOOSE ITEMS
1 215.00 215.00T
1011B 15 AMP 12VOLT DC SOCKET (2 ON BLANK FACEPLATE IN
CONSOLE)
2 3.65 7.30T
WCFEH FRONT END HARNESS, W/GXL & TXL WIRE 1 50.36 50.36T
327768 SAMLEX AMERICA-450 WATT AC INVERTER W/ USB
PORT, MODIFIED SINE WAVE
1 49.00 49.00T
FABRICATED FABRICATION-TO MODIFY CONSOLE TO MOUNT
INVERTER INSIDE
1 63.75 63.75T
Page 3
14.g
Packet Pg. 392 Attachment: PD-WestCoastLightsSiren Bid Summary Attach2 (5675 : Authorize Execution of Vendor Services Agreement and Purchase Order
PROPOSAL
Date
6/27/2018
Estimate #
7715Name / Address
CITY OF SAN BERNARDINO
ACCOUNTS PAYABLE
OFFICE OF THE PURCHASING DIVISION
300 N. "D" ST.
SAN BERNARDINO,CA 92418
W EST CO AST LIGHTS & SIREN S, IN C.
601 COLUMBIA AVENUE
UNIT "B"
RIVERSIDE, CA 92507
Project
Phone # 9517799257
Fax # 951-779-9256
trish@wcls.us
WCLS.US
Total
Subtotal
Sales Tax (8.0%)
Item Description Qty Cost Total
FABRICATED FABRICATION-DOOR LOCK RODS (PAIR) 1 170.00 170.00T
JOB MATERIALS MISC. PARTS, WIRE, ZIP TIES, CLAMPS, FASTENERS,
RELAYS, ETC.
1 200.00 200.00T
Page 4
PROPOSAL IS VALID FOR 30 DAYS
CALIFORNIA CERTIFIED SMALL BUSINESS #49878
NOTE: SALES TAX WILL BE CHARGED ON ANY INSTALLATION LABOR ON A VEHICLE
WITH 500 MILES OR LESS PER NEW CALIFORNIA STATE BOE REGULATIONS.
$11,825.80
$10,971.29
$854.51
14.g
Packet Pg. 393 Attachment: PD-WestCoastLightsSiren Bid Summary Attach2 (5675 : Authorize Execution of Vendor Services Agreement and Purchase Order
PROPOSAL
Date
6/28/2018
Estimate #
7719Name / Address
CITY OF SAN BERNARDINO
ACCOUNTS PAYABLE
OFFICE OF THE PURCHASING DIVISION
300 N. "D" ST.
SAN BERNARDINO,CA 92418
W EST CO AST LIGHTS & SIREN S, IN C.
601 COLUMBIA AVENUE
UNIT "B"
RIVERSIDE, CA 92507
Project
Phone # 9517799257
Fax # 951-779-9256
trish@wcls.us
WCLS.US
Total
Subtotal
Sales Tax (8.0%)
Item Description Qty Cost Total
INSTALLATION L... INSTALLATION LABOR FOR ODOMETER UNDER 500
MILES (SUPERVISOR)
28 70.00 1,960.00T
>>TO INSTALL EMERGENCY EQUIPMENT INTO A 2016
FORD SEDAN.
>>ALSO TO INSTALL CUSTOMER SUPPLIED CONSOLE W/
ARMREST, RADIO, MODEM W/ ANTENNA, DOCKING
STATION, AND KEYBOARD W/ MOUNT
>>W/ CODE-1/SECURE IDLE
VALR44S-SBAD 44" VALOR RED / BLUE FOR SAN BERNARDINO PD 1 1,800.00 1,800.00T
SSP3000B SMART SIREN PLATINUM (OVERHEAD) 1 758.40 758.40T
>>SMART SIREN CONTROLLER MOUNTED ON
HEADLINER
MS4000U MS4000 UNDERCOVER, 100W AIR HORN WITH REMOTE
(DUAL TONE)
1 159.00 159.00T
ES100C ES100C SPEAKER W/O BRACKET (MOUNTED ON BUMPER)2 156.00 312.00T
ESB-U KIT, UNIVERSAL BAIL BRACKET , ALL VEHICLES 2 18.75 37.50T
SI240-T-IH SECURE IDLE FOR FORD SEDAN AND UTILITY 1 148.85 148.85T
5039 PUSH BUMPER FOR TAURUS INTERCEPTORS 1 211.16 211.16T
5039WHD FORD INTERCEPTOR SEDAN HEAVY DUTY WRAP, WILL
BOLT TO THE 5039
1 290.37 290.37T
SHIPPING SHIPPING 1 50.00 50.00
7189B 150 AMP BREAKER 1 23.98 23.98T
CBB-BK-S SEDAN CIRCUIT BREAKER BRACKET 1 12.00 12.00T
5028B FUSE BLOCK ST BLADE 6 CIRCUIT 1 17.71 17.71T
5026B FUSE BLOCK STBLADE 12 CIRC W/GND/CVR 1 28.73 28.73T
6001 250 AMP RELAY W/ BUILT IN POWER TAMER (TOP H.A.T.)1 125.13 125.13T
Page 1
14.g
Packet Pg. 394 Attachment: PD-WestCoastLightsSiren Bid Summary Attach2 (5675 : Authorize Execution of Vendor Services Agreement and Purchase Order
PROPOSAL
Date
6/28/2018
Estimate #
7719Name / Address
CITY OF SAN BERNARDINO
ACCOUNTS PAYABLE
OFFICE OF THE PURCHASING DIVISION
300 N. "D" ST.
SAN BERNARDINO,CA 92418
W EST CO AST LIGHTS & SIREN S, IN C.
601 COLUMBIA AVENUE
UNIT "B"
RIVERSIDE, CA 92507
Project
Phone # 9517799257
Fax # 951-779-9256
trish@wcls.us
WCLS.US
Total
Subtotal
Sales Tax (8.0%)
Item Description Qty Cost Total
FABRICATED FABRICATION-REAR FOLD DOWN TRAY W/
VENTILATION
1 150.00 150.00T
SHIPPING SHIPPING OF TROY PRODUCTS 1 100.00 100.00
416910-W SINGLE COLOR CORNER LED WITH IN LINE FLASHER
(HEADLIGHTS)
2 55.50 111.00T
416910-R SINGLE COLOR LED W/IN LINE FLASHER, RED (REVERSE
LIGHTS)
2 55.50 111.00T
MPS600U-BA 6-LED LIGHTHEAD, (BLUE/AMBER)MICROPULSE ULTRA
(FOR TRUNK LID)
2 60.00 120.00T
MPSM6-LB FEDERAL SIGNAL SINGLE L-BRACKETS 2 9.56 19.12T
MPS600U-BR 6-LED LIGHTHEAD, (BLUE/RED)MICROPULSE ULTRA (ON
MIRROR)
2 60.00 120.00T
MPSM6U-SPACRKT SPACER KIT FOR THE ULTRA MPS LIGHTS 2 13.73 27.46T
FABRICATED FABRICATION-FREESTANDING DUAL GUN RACK W/
ADJUSTABLE AR LOCK
1 325.00 325.00T
SC-1 SANTA CRUZ GUN LOCK S-C1 W STANDARD KEY 1 65.63 65.63T
SC-6 XL HANDCUFF STYLE GUN LOCK 1 101.40 101.40T
OMWV002FB BUTT PLATE DUAL FOR WEAPON 2 9.78 19.56T
USGT GUN LOCK TIMER 1 36.34 36.34T
>>2 BUTTONS UNDER DRIVER AND PASSENGER DASH
FOR GUN RELEASE
LF12ERB LITLITE, 12" RHEO, END CHAS MAPLIGHT (DR. AND
PASS. FRONT A PILLARS)
2 38.00 76.00T
ANXMB8U 3/4" HOLE NMO STYLE BRASS MT W/17" RG58U & NO
CONNECTOR
1 10.47 10.47T
Page 2
14.g
Packet Pg. 395 Attachment: PD-WestCoastLightsSiren Bid Summary Attach2 (5675 : Authorize Execution of Vendor Services Agreement and Purchase Order
PROPOSAL
Date
6/28/2018
Estimate #
7719Name / Address
CITY OF SAN BERNARDINO
ACCOUNTS PAYABLE
OFFICE OF THE PURCHASING DIVISION
300 N. "D" ST.
SAN BERNARDINO,CA 92418
W EST CO AST LIGHTS & SIREN S, IN C.
601 COLUMBIA AVENUE
UNIT "B"
RIVERSIDE, CA 92507
Project
Phone # 9517799257
Fax # 951-779-9256
trish@wcls.us
WCLS.US
Total
Subtotal
Sales Tax (8.0%)
Item Description Qty Cost Total
FABRICATED FABRICATION-FABRICATION-NARROW BOX TO HOLD
LOOSE ITEMS
1 215.00 215.00T
1011B 15 AMP 12VOLT DC SOCKET (2 ON BLANK FACEPLATE IN
CONSOLE)
2 3.65 7.30T
WCFEH FRONT END HARNESS, W/GXL & TXL WIRE 1 50.36 50.36T
327768 SAMLEX AMERICA-450 WATT AC INVERTER W/ USB
PORT, MODIFIED SINE WAVE
1 49.00 49.00T
FABRICATED FABRICATION-TO MODIFY CONSOLE TO MOUNT
INVERTER INSIDE
1 63.75 63.75T
JOB MATERIALS MISC. PARTS, WIRE, ZIP TIES, CLAMPS, FASTENERS,
RELAYS, ETC.
1 200.00 200.00T
Page 3
PROPOSAL IS VALID FOR 30 DAYS
CALIFORNIA CERTIFIED SMALL BUSINESS #49878
NOTE: SALES TAX WILL BE CHARGED ON ANY INSTALLATION LABOR ON A VEHICLE
WITH 500 MILES OR LESS PER NEW CALIFORNIA STATE BOE REGULATIONS.
$8,534.28
$7,913.22
$621.06
14.g
Packet Pg. 396 Attachment: PD-WestCoastLightsSiren Bid Summary Attach2 (5675 : Authorize Execution of Vendor Services Agreement and Purchase Order
PROPOSAL
Date
6/28/2018
Estimate #
7720Name / Address
CITY OF SAN BERNARDINO
ACCOUNTS PAYABLE
OFFICE OF THE PURCHASING DIVISION
300 N. "D" ST.
SAN BERNARDINO,CA 92418
W EST CO AST LIGHTS & SIREN S, IN C.
601 COLUMBIA AVENUE
UNIT "B"
RIVERSIDE, CA 92507
Project
Phone # 9517799257
Fax # 951-779-9256
trish@wcls.us
WCLS.US
Total
Subtotal
Sales Tax (8.0%)
Item Description Qty Cost Total
INSTALLATION L... INSTALLATION LABOR FOR ODOMETER UNDER 500
MILES (SUPERVISOR)
30 70.00 2,100.00T
>>TO INSTALL EMERGENCY EQUIPMENT INTO 2016 FORD
UTILITY.
>>ALSO TO INSTALL CUSTOMER SUPPLIED CONSOLE W/
ARMREST, RADIO, MODEM W/ ANTENNA, DOCKING
STATION, AND KEYBOARD W/ MOUNT
>>W/ CODE-1/SECURE IDLE
VALR44S-SBAD 44" VALOR RED / BLUE FOR SAN Bernardino PD 1 1,800.00 1,800.00T
SSP3000B SMART SIREN PLATINUM (OVERHEAD) 1 758.40 758.40T
>>SMART SIREN CONTROLLER MOUNTED ON
HEADLINER
MS4000U MS4000 UNDERCOVER, 100W AIR HORN WITH REMOTE
(FOR DUAL TONE)
1 159.00 159.00T
ES100C ES100 SPEAKER W/O BRACKET (MOUNTED ON BUMPER)2 144.00 288.00T
ESB-U KIT, UNIVERSAL BAIL BRACKET , ALL VEHICLES 2 22.88 45.76T
SI240-T-IH SECURE IDLE FOR FORD SEDAN AND UTILITY 1 148.85 148.85T
5342 PUSH BUMPER FOR 2016 FORD UTILITY INTERCEPTOR
(NON-ECO-BOOST)
1 286.51 286.51T
5342WHD WRAP AROUND FOR 2016 FORD UTILITY INTERCEPTOR 1 281.90 281.90T
SHIPPING SHIPPING 1 50.00 50.00
7189B 150 AMP BREAKER 1 25.57 25.57T
CBB-BK CIRCUIT BREAKER BRACKET FOR UTILITY 1 12.00 12.00T
5028B FUSE BLOCK ST BLADE 6 CIRCUIT 1 17.71 17.71T
5026B FUSE BLOCK STBLADE 12 CIRC W/GND/CVR 1 28.73 28.73T
6001 250 AMP RELAY W/ BUILT IN POWER TAMER (TOP H.A.T.)1 125.13 125.13T
Page 1
14.g
Packet Pg. 397 Attachment: PD-WestCoastLightsSiren Bid Summary Attach2 (5675 : Authorize Execution of Vendor Services Agreement and Purchase Order
PROPOSAL
Date
6/28/2018
Estimate #
7720Name / Address
CITY OF SAN BERNARDINO
ACCOUNTS PAYABLE
OFFICE OF THE PURCHASING DIVISION
300 N. "D" ST.
SAN BERNARDINO,CA 92418
W EST CO AST LIGHTS & SIREN S, IN C.
601 COLUMBIA AVENUE
UNIT "B"
RIVERSIDE, CA 92507
Project
Phone # 9517799257
Fax # 951-779-9256
trish@wcls.us
WCLS.US
Total
Subtotal
Sales Tax (8.0%)
Item Description Qty Cost Total
CP-UV-CARGO-MNT TILT-UP CARGO MOUNT FOR FORD UTILITY 1 292.50 292.50T
FHL-CHG FLASHER, HEADLIGHT 1 51.60 51.60T
416900-RB DUAL CORNER LED LIGHT HEAD W/IN-LINE FLASHER ,
RED/BLUE (NO OPTION 86P)
2 55.50 111.00T
416900-BA DUAL CORNER LED LIGHT HEAD W/IN-LINE FLASHER
(REVERSE LIGHTS)
2 55.50 111.00T
MPS600U-BA 6-LED LIGHTHEAD, (BLUE/AMBER) MICROPULSE ULTRA
(HATCH)
2 60.00 120.00T
>>W/ ON/OFF SWITCH
MPS600U-BR 6-LED LIGHTHEAD, (BLUE/RED)MICROPULSE ULTRA
(SIDE MIRRORS)
2 60.00 120.00T
MPSM6U-SPACRKT SPACER KIT FOR THE ULTRA MPS LIGHTS 1 13.73 13.73T
FABRICATED FABRICATION-DUAL GUN RACK W/ ADJUSTABLE AR
LOCK
1 325.00 325.00T
SC-1 SANTA CRUZ GUN LOCK S-C1 W STANDARD KEY 1 64.67 64.67T
SC-6 XL HANDCUFF STYLE GUN LOCK 1 101.40 101.40T
OMWV002FB BUTT PLATE FOR WEAPON 2 9.78 19.56T
USGT GUN LOCK TIMER 1 35.50 35.50T
>>2 BUTTONS UNDER DRIVER AND PASSENGER FOR
RELEASE
LF12ERB LITLITE, 12" RHEO, END CHAS MAPLIGHT 2 38.00 76.00T
ANXMB8U 3/4" HOLE NMO STYLE BRASS MT W/17" RG58U & NO
CONNECTOR
1 10.47 10.47T
TP-FDUV-RL REAR PARTITION, LEXAN WINDOW / SQUARE GRID
REAR SIDE WINDOWS
1 421.20 421.20T
AC-UV-HATCH FORD UTILITY HATCH WINDOW SCREEN 1 85.50 85.50T
Page 2
14.g
Packet Pg. 398 Attachment: PD-WestCoastLightsSiren Bid Summary Attach2 (5675 : Authorize Execution of Vendor Services Agreement and Purchase Order
PROPOSAL
Date
6/28/2018
Estimate #
7720Name / Address
CITY OF SAN BERNARDINO
ACCOUNTS PAYABLE
OFFICE OF THE PURCHASING DIVISION
300 N. "D" ST.
SAN BERNARDINO,CA 92418
W EST CO AST LIGHTS & SIREN S, IN C.
601 COLUMBIA AVENUE
UNIT "B"
RIVERSIDE, CA 92507
Project
Phone # 9517799257
Fax # 951-779-9256
trish@wcls.us
WCLS.US
Total
Subtotal
Sales Tax (8.0%)
Item Description Qty Cost Total
FABRICATED FABRICATION-NARROW BOX TO HOLD LOOSE ITEMS 1 215.00 215.00T
1011B 15 AMP 12VOLT DC SOCKET (2 ON BLANK FACEPLATE IN
CONSOLE)
2 3.65 7.30T
WCFEH FRONT END HARNESS, W/GXL & TXL WIRE 1 50.36 50.36T
327768 SAMLEX AMERICA-450 WATT AC INVERTER W/ USB
PORT, MODIFIED SINE WAVE
1 49.00 49.00T
FABRICATED FABRICATION-TO MODIFY CONSOLE TO MOUNT
INVERTER INSIDE
1 63.75 63.75T
JOB MATERIALS MISC. PARTS, WIRE, ZIP TIES, CLAMPS, FASTENERS,
RELAYS, ETC.
1 200.00 200.00T
Page 3
PROPOSAL IS VALID FOR 30 DAYS
CALIFORNIA CERTIFIED SMALL BUSINESS #49878
NOTE: SALES TAX WILL BE CHARGED ON ANY INSTALLATION LABOR ON A VEHICLE
WITH 500 MILES OR LESS PER NEW CALIFORNIA STATE BOE REGULATIONS.
$9,361.87
$8,672.10
$689.77
14.g
Packet Pg. 399 Attachment: PD-WestCoastLightsSiren Bid Summary Attach2 (5675 : Authorize Execution of Vendor Services Agreement and Purchase Order
15.a
Packet Pg. 400 Attachment: PD. Imposing Liens to Recover Costs for Code Enforcement-Staff Report (5676 : Imposing Liens to Recover Costs for Code
The owners of properties listed on the Abatement Assessments List have been notified
of this meeting and provided with an additional copy of the Statement of Costs. If
owners come forward to pay their costs prior to the public hearing, their properties will
be removed from Exhibit A.
2018-2019 Goals and Objectives
The request to impose liens to recover costs for Code Enforcement abatement aligns
with Goal No. 4: Ensure Development of a Well-Planned, Balanced, and Sustainable
City. Imposing liens to resolve public nuisances would ensure that the City is clean and
attractive.
Fiscal Impact
The anticipated amount to be collected is $11,602.99. The amount will be collected
incrementally as individual properties are sold and/or the liens are paid through the
escrow process.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino,
California adopt Resolution No. 2018-222, imposing liens to recover public nuisance
abatement costs.
Attachments
Attachment 1 Resolution; Exhibit A- Abatement Assessments List
Ward: All
Synopsis of Previous Council Actions:
On April 18, 2018, the Mayor and City Council adopted Resolution 2018-106, imposing liens on
certain real property located within the City of San Bernardino for the costs of public nuisance
abatements.
7/25/2018 1:03 PM
15.a
Packet Pg. 401 Attachment: PD. Imposing Liens to Recover Costs for Code Enforcement-Staff Report (5676 : Imposing Liens to Recover Costs for Code
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RESOLUTION NO. 2018-222
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, IMPOSING LIENS ON CERTAIN REAL PROPERTY
LOCATED WITHIN THE CITY OF SAN BERNARDINO FOR THE COSTS OF
PUBLIC NUISANCE ABATEMENTS
WHEREAS, the City of San Bernardino, pursuant to its authority under Chapter 8.30 of
the San Bernardino Municipal Code, did lawfully cause public nuisances to be abated on the
properties described in the Abatement Assessments List, a copy of which is attached hereto and
incorporated herein as Exhibit “A,” in this Resolution; and
WHEREAS, notice of the abatement costs was given to the owners of record of said
properties, and any timely requested hearing has heretofore been held to hear protests of the costs
of said abatement before the Administrative Hearing Officer, who determined the owner of
record is responsible for the costs.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. Said costs are found to have been incurred by the City pursuant to
proceedings under the San Bernardino Municipal Code, and the final statement of costs on file
with the City Clerk is hereby confirmed and adopted as special assessments against the properties
listed in Exhibit “A.”
SECTION 2. Said sum shall become a lien on said property pursuant to San Bernardino
Municipal Code 8.30.050 and shall be collected as a special assessment.
SECTION 3. The City Clerk is hereby directed to file a certified copy of this Resolution,
including Exhibit “A,” showing such sums as remain unpaid, to the Recorder and the Auditor of
the County of San Bernardino, State of California, directing that each sum be entered as a lien
1
15.b
Packet Pg. 402 Attachment: PD. Imposing Liens to Recover Costs for Code Enforcement-Resolution (5676 : Imposing Liens to Recover Costs for Code
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charged against the property as it appears on the current assessment rolls, to be collected at the
said time and in the same manner, subject to the same penalties and interest upon delinquencies,
as the general taxes for the City of San Bernardino are collected.
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15.b
Packet Pg. 403 Attachment: PD. Imposing Liens to Recover Costs for Code Enforcement-Resolution (5676 : Imposing Liens to Recover Costs for Code
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, IMPOSING LIENS ON CERTAIN REAL PROPERTY
LOCATED WITHIN THE CITY OF SAN BERNARDINO FOR THE COSTS OF
PUBLIC NUISANCE ABATEMENTS
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
City Council of the City of San Bernardino at a Joint 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
15.b
Packet Pg. 404 Attachment: PD. Imposing Liens to Recover Costs for Code Enforcement-Resolution (5676 : Imposing Liens to Recover Costs for Code
EXHIBIT "A"
ABATEMENT ASSESSMENTS
ADDRESS OWNER DATE ABATED WARD COST
478 W BASELINE ST GILDRED, EDWARD 1/19/2018 2 273.36$
330 N D ST OLVERA, JOSE LUIS 2/18/2018 1 941.86$
1689 W KENDALL DR ABDOIRAHMI, KAMALEDDIN 4/24/2018 5 601.82$
1595 N D ST DPND PROPERTY INVESTMENTS LLC 2/7/2018 2 173.42$
1677 W VINE ST GRANT, DANIELLE LATRICE 3/3/2018 1 334.96$
445 S ARROWHEAD AVE WADE, DONALD G & ZOWANNA S 2/24/2018 1 2,685.72$
1395 ROXBURY DR GUTIERREZ, JUAN M 2/28/2018 2 760.50$
3552 N ARROWHEAD AVE COLLINS, STEVE; COLLINS, VIVIAN 7 1,385.48$
2628 GOLDEN AVE OASIS INVESTMENT PROPERTIES 3/13/2018 7 4,445.87$
Total 11,602.99$ 15.cPacket Pg. 405Attachment: PD. Imposing Liens to Recover Costs for Code Enforcement Abatement-Exhibit A (5676 : Imposing Liens to Recover Costs for
• • I -•� ·►��-1�
, . '
I I
Date:
To:
From:
Subject:
Recommendation
City of San Bernardino
Request for Council Action
August 1, 2018
Consent Calendar
Honorable Mayor and City Coun�iMembers
Andrea M. Miller, City Manag�� By: Helen Tran, Director otidfuman Resources
Health Benefits Plan Year 2019
Adopt Resolution No. 2018-223 of the Mayor and City Council of the City of San Bernardino, California, approving employer-paid health benefits contributions for benefit plan year 2019 and election of Mayor and City Council to receive the same benefit plan as the Management/Confidential bargaining unit.
Background On August 16, 2017, the Mayor and City Council adopted Resolution No. 2017-161, approving the employer paid health benefit contributions for benefit plan year 2018 and authorizing the City Manager to execute a memorandum of understanding (MOU) between the City of San Bernardino and the California State Association of Counties Excess Insurance Authority (CSAC EIA) joint powers health program and the election of the Mayor and City Council to receive the same benefit plan as the management/confidential bargaining unit.
Discussion On July 3, 2018, the City's Human Resources staff and the City's Health Benefit Broker Alliant, met with the Health Benefits Committee, including representatives from the Management/Confidential Group, Middle Management Unit, General Unit, Police Management, and Police Safety regarding the health benefit renewals, health benefit contributions and other related health benefits information. The program renewal for the 2019 plan year is approximately 4.09% increase change from 2018 which is below standard market.
New program options will be offered for the new plan year include pet insurance via united pet care (voluntary benefit) and a pharmacy discount program for part-time employees.
The Employer contributions made available through the City are an option for employees to use towards the election of benefits including: medical, dental, and vision.
16.a
Packet Pg. 406 Attachment: HR.Health Benefits Plan Year 2019 - Report (5677 : Health Benefits Plan Year 2019)
The amount of the Employer contribution is based on the selection of the “Medical”
enrollment category. If an employee elects “employee only” medical coverage, then the
“employee only” allowance is given to the employee. Any contributions not utilized by an
employee shall revert to the City unless otherwise provided for in an agreement with a
bargaining unit. All health benefit contributions as set forth below are compliant with the
Affordable Care Act (ACA).
City Contributions for the below groups for plan year 2019 are determined by the
provisions in their respective MOUs.
Bargaining Unit
Employee
Only
Employee
+ One
Employee
+ Family
Management/Confidential $1,070.00 $1,195.00 $1,195.00
Middle Management $680.00 $955.00 $955.00
General $640.00 $805.00 $805.00
Police Safety $583.29 $992.74 $1,187.48
Police Management $999.00 $1,083.07 $1,294.26
2018-19 Goals and Objectives
Approving the proposed employer paid health benefits contributions aligns with Goal
No. 5: Improve City Government Operations.
Fiscal Impact
There is sufficient funding in the FY 2018/19 Adopted Budget.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino adopt
Resolution No. 2018-223 approving employer paid health benefits contributions for
benefit plan year 2018 and election of Mayor and City Council to receive the same
benefit plan as the Management/Confidential bargaining unit.
Attachments
Attachment 1 – Resolution
Ward:
Synopsis of Previous Council Actions: On August 16, 2017 the Mayor and City Council adopted
Resolution No. 2017-161, approving the employer paid health benefit contributions for benefit
plan year 2018 and authorizing the City Manager to execute a memorandum of understanding
(MOU) between the City of San Bernardino and the California State Association of Counties Excess
Insurance Authority (CSAC EIA) joint powers health program and the election of the Mayor and
City Council to receive the same benefit plan as the management/confidential bargaining unit.
16.a
Packet Pg. 407 Attachment: HR.Health Benefits Plan Year 2019 - Report (5677 : Health Benefits Plan Year 2019)
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1
RESOLUTION NO. 2018-223
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA APPROVING EMPLOYER-PAID HEALTH BENEFITS
CONTRIBUTIONS FOR BENEFIT PLAN YEAR 2019 AND ELECTION OF MAYOR
AND CITY COUNCIL TO RECEIVE THE SAME BENEFIT PLAN AS THE
MANAGEMENT/CONFIDENTIAL BARGAINING UNIT
WHEREAS, adoption of the Employer Paid Health Benefit contribution schedule for Plan
Year 2019 is necessary to implement the budget allocations for the City’s health benefit
contributions provided in the FY 2018-19 Adopted Budget; and,
WHEREAS, on July 3, 2018, the City’s Human Resources staff and the City’s Health
Benefit Broker Alliant, met with the Health Benefits Committee representing all bargaining
groups: [San Bernardino Confidential/Management Association (SBCMA), Middle Management
Employees’ Association, Teamsters Local 1932 (MMA), General Unit, International Union of
Operating Engineers Local 12 (IUOE), San Bernardino Police Management Association
(SBPMA), San Bernardino Police Officers’ Association (SBPOA)] and provided proposals,
financial and other information regarding the health plans and optional benefits; and,
WHEREAS, the City and SBCMA, MMA, IUOE, SBPOA, and SBPMA representatives
have reached an agreement on the City or Employer contributions towards the purchase of City-
sponsored health care premiums.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1: The following benefit changes for all bargaining groups are adopted for
implementation effective January 1, 2019:
1. Health Benefit Contributions: Employer contributions for insurance benefits available for
purchase by employees include medical, dental, vision, life and accidental death and
dismemberment, as made available through the City. The amount of the Employer
contribution is based on the selection of the “Medical” enrollment category. If an employee
elects “employee only” medical coverage, then the “employee only” allowance is given to
the employee. Any contributions not utilized by an employee shall revert to the City unless
otherwise provided for in an agreement with a bargaining unit. All health benefit
contributions as set forth below are compliant with the Affordable Care Act (ACA).
16.b
Packet Pg. 408 Attachment: HR.Health Benefits Plan Year 2019 - Attachment 1 - Resolution (5677 : Health Benefits Plan Year 2019)
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Bargaining Unit
Employee
Only
Employee
+ One
Employee
+ Family
Management/Confidential $1,070.00 $1,195.00 $1,195.00
Middle Management $680.00 $955.00 $955.00
General $640.00 $805.00 $805.00
Police Safety $583.29 $992.74 $1,187.48
Police Management $999.00 $1,083.07 $1,294.26
*City Contributions for the units are determined by the provisions in their respective
MOUs.
2. For Plan Year 2019 and forward, the City will continue to meet with the Health Benefits
Committee to review health plan options and may adjust the Employer contributions
toward medical, dental, vision, and other health benefits. Plan designs and contributions
shall be effective January 1st annually. The City shall reserve all rights to modify medical
plans and the amount of contributions paid by the City.
3. Health Insurance Waiver Stipend: Effective with health benefit plan year 2019, the
City of San Bernardino agrees to provide full-time eligible employees who waive health
benefits an annual “Health Insurance Waiver Stipend” on the first regular pay day in
December. The first payment would be December 12th of 2019. Such payment is not
considered compensation for purposes of CalPERS and is subject to state and federal taxes.
Employees electing to receive a “Health Insurance Waiver Stipend” must meet certain
requirements, including without limitation, must be a regular full-time and paid status for a
minimum of 21 hours per week; must provide satisfactory written proof of comparable
medical insurance coverage; and, must waive all medical, dental, vision, supplemental life,
and supplemental AD&D benefits. The Health Insurance Waiver Stipend Policy and
Waiver Form are available from the City’s Human Resources Department.
Bargaining Unit Stipend Amount
Management/Confidential $3,000.00
Middle Management $3,000.00
General $3,000.00
Police Safety $2,500.00
Police Management $2,500.00
16.b
Packet Pg. 409 Attachment: HR.Health Benefits Plan Year 2019 - Attachment 1 - Resolution (5677 : Health Benefits Plan Year 2019)
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4. Health Benefit Contributions for the Mayor and City Council: In addition to retirement
benefits under CalPERS, the Mayor and City Council Members are eligible to receive the
same health benefits that are provided to City employees and the City’s contributions to
such benefits shall be the same as is available to SBCMA members. In the event that the
Mayor and/or City Council members elect to receive the health insurance stipend as
described in paragraph 3 herein, the stipend must be contributed to the City’s established
deferred compensation plan.
5. Retirement Medical Benefits: The City and the Official Committee of Retired Employees
of the City of San Bernardino created as a result of the City’s filing of Chapter 9
Bankruptcy have entered into a Settlement Agreement, dated as of May 19, 2015 (a copy
of which can be found on the docket for the City’s Chapter 9 Bankruptcy case) setting
forth the City’s obligations for contributions to the retirees electing to participate in the
City’s health plan options for Plan Year 2019.
/ / /
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16.b
Packet Pg. 410 Attachment: HR.Health Benefits Plan Year 2019 - Attachment 1 - Resolution (5677 : Health Benefits Plan Year 2019)
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA APPROVING HEALTH BENEFITS CONTRIBUTIONS
FOR BENEFIT PLAN YEAR 2019 AND ELECTION OF MAYOR AND CITY COUNCIL
TO RECEIVE THE SAME BENEFIT PLAN AS THE MANAGEMENT/CONFIDENTIAL
BARGAINING UNIT
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:____________________
16.b
Packet Pg. 411 Attachment: HR.Health Benefits Plan Year 2019 - Attachment 1 - Resolution (5677 : Health Benefits Plan Year 2019)
Date:
To:
From:
Subject:
City of San Bernardino
Request for Council Action
August 1, 2018
Honorable Mayor and City Counc&\embers
Andrea M. Miller, City Manag�� By: Oliver Mujica, Plannin�vision Manager
Consent Calendar
Development Code Amendment/Zoning Map Amendment 17-09
Recommendation Accept for final reading and adopt Ordinance No. MC-1500 approving Development Code Amendment (Zoning Map Amendment) 17-09 to change the Zoning District Classification from Office Industrial Park (OIP) to Industrial Light (IL) of two (2) parcels (APNs: 0280-142-25 & 36) containing a total of approximately 1.4 acres (Attachment 1 ).
Background On July 18, 2018, the Mayor and City Council conducted a public hearing to change the zoning of two (2) parcels located on the northeast corner of Waterman Avenue and Orange Show Road for the construction of a service station and convenience store.
Ordinance No. MC-1500 approving the Development Code Amendment/Zoning Map Amendment 17-09 to change the Zoning District Classification from Office Industrial Park (OIP) to Industrial Light (IL) to two (2) parcels was introduced for first reading. Adoption of Ordinance No. MC-1500 is necessary to enable the proposed development to move forward.
2018-2019 Goals and Objectives The proposed amendment to the Development Code aligns with Goal No 3: Create, Maintain and Grow Jobs and Economic Value in the City as the construction of the gas station creates additional economic development opportunities and more jobs and Goal No 4: Ensure Development of a Well-Planned, Balanced, and Sustainable City as the addition of service station provides businesses, residents and visitors additional access to services.
Conclusion Final reading of the Ordinance will approve the Development Code Amendment (Zoning Map Amendment), which will become effective on August 31, 2018.
7/24/2018 6:18 PM
17.a
Packet Pg. 412 Attachment: CD.DCA 17-09 Final Reading.Report (5678 : Development Code Amendment/Zoning Map Amendment 17-09)
Attachments
Attachment 1 Ordinance No. MC 1500 Approving Development Code
Amendment/Zoning Map Amendment 17-09)
Attachment 2 Map
Ward: 3rd
Synopsis of Previous Council Actions: None
7/25/2018 9:58 AM
17.a
Packet Pg. 413 Attachment: CD.DCA 17-09 Final Reading.Report (5678 : Development Code Amendment/Zoning Map Amendment 17-09)
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ORDINANCE NO. MC-1500
ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, APPROVING DEVELOPMENT CODE
AMENDMENT (ZONING MAP AMENDMENT) 17-09 TO CHANGE THE ZONING
DISTRICT CLASSIFICATION FROM OFFICE INDUSTRIAL PARK (OIP) TO
INDUSTRIAL LIGHT (IL) OF TWO (2) PARCELS (APN: 0280-142-25 AND 36)
CONTAINING A TOTAL OF APPROXIMATELY 1.4 ACRES.
WHEREAS, the current City of San Bernardino Development Code was initially
implemented in 1991; and
WHEREAS, on June 12, 2018, the Planning Commission of the City of San
Bernardino held a duly noticed public hearing to consider public testimony and the staff
report, and adopted Resolution 2018-036 forwarding a recommendation to the Mayor and City
Council to approve Development Code Amendment (Zoning Map Amendment) 17-09; and
WHEREAS, notice of the public hearing for the Mayor and City Council's
consideration of the proposed Ordinance was published in The Sun newspaper on July 6,
2018.
NOW THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, DO ORDAIN AS FOLLOWS:
SECTION 1. The Mayor and City Council find that the above-stated Recitals are true
and hereby adopt and incorporate them herein.
SECTION 2. Finding of Facts – Development Code Amendment (Zoning Map
Amendment 17-09
Finding No. 1: The proposed amendment is consistent with the General Plan.
Finding of Fact: As stated in the City of San Bernardino General Plan, Industrial Light
designated land uses are intended to “retain, enhance, and intensify
existing uses and provide for the new development of lighter industrial
uses along major vehicular, rail, and air transportation routes serving
the City.” The proposed change of the Zoning District Classification
from Office Industrial Park (OIP) to Industrial Light (IL) will be
consistent with the General Plan Land Use designation in that most of
the activities associated with the project will offer service for industrial
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17.b
Packet Pg. 414 Attachment: CD.DCA 17-09 Final Reading.A1.Ordinance (5678 : Development Code Amendment/Zoning Map Amendment 17-09)
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vehicles (i.e. diesel trucks) and those patrons travelling along these
major arterials (S. Waterman Avenue and E. Orange Show Road).
Finding No. 2: The proposed amendment would not be detrimental to the public
interest, health, safety, convenience, or welfare of the City.
Finding of Fact: The project meets all development standards set forth in the City’s
Development Code, Commercial Development Design Guidelines, and
General Plan as related to service stations, convenience stores, and
alcohol sales. Therefore, there will not be a detrimental effect to the
public interest, health, safety, convenience, or welfare of the City.
SECTION 3. Compliance with the California Environmental Quality Act.
In accordance with §15060 (Preliminary Review) of the California Environmental
Quality Act (CEQA), the Planning Division conducted an environmental evaluation related to the
proposed Development Code Amendment (Zoning Map Amendment) 17-09, Conditional Use
Permit 17-29 and Public Convenience or Necessity Letter 18-03 and concluded that the proposed
project is found to be exempt under §15061(b)(2) (Review for Exemption) of CEQA. Pursuant to
§15332 (In-Fill Development Projects) of CEQA, a Class 32 Categorical Exemption consists of
projects characterized as in-fill development meeting the conditions contained within §15332 of
CEQA. The Planning Division staff has analyzed proposed Development Code Amendment
(Zoning Map Amendment) 17-09, Conditional Use Permit 17-29 and Public Convenience or
Necessity Letter 18-03 and has determined that it is Categorically Exempt from CEQA pursuant
to §15332 of the CEQA Guidelines due to the fact that: 1) the project is consistent the applicable
general plan designation and all applicable general plan policies as well as with applicable zoning
designation and regulations; 2) the proposed development is located within the City limits on less
than five (5) acres; 3) Conditions of Approval will be imposed to alleviate potential impacts; and,
4) there are no additional potential significant environmental impacts that may result from the
proposed development, establishment and operation of the proposed uses.
The Mayor and City Council having independently reviewed and analyzed the record
before it, written and oral testimony, and having exercised their independent judgment, find that
Development Code Amendment (Zoning Map Amendment) 17-09, is Categorically Exempt
pursuant to §15332 (In-Fill Development Projects) of CEQA as accepted by the Planning
Commission as to the effects of proposed Development Code Amendment (Zoning Map
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17.b
Packet Pg. 415 Attachment: CD.DCA 17-09 Final Reading.A1.Ordinance (5678 : Development Code Amendment/Zoning Map Amendment 17-09)
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Amendment) 17-09, has been completed in compliance with CEQA and is hereby adopted and
incorporated herein by reference.
SECTION 4. Development Code Amendment (Zoning Map Amendment) 17-09 to
change the Zoning District Classification from Office Industrial Park (OIP) to Industrial Light
(IL) of two (2) parcels (APN: 0280-142-25 and 36), is hereby approved and incorporated
herein by reference as Exhibit A.
SECTION 5. Notice of Determination: The Planning Division of the Community
Development Department is hereby directed to file a Notice of Determination with the County
Clerk of the County of San Bernardino within five (5) working days of final project approval
certifying the City’s compliance with the California Environmental Quality Act in adopting
the Categorical Exemptions.
SECTION 6. Severability: If any section, subsection, subdivision, sentence, or clause
or phrase 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, or phrases be
declared unconstitutional, invalid, or ineffective.
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17.b
Packet Pg. 416 Attachment: CD.DCA 17-09 Final Reading.A1.Ordinance (5678 : Development Code Amendment/Zoning Map Amendment 17-09)
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ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, APPROVING DEVELOPMENT CODE
AMENDMENT (ZONING MAP AMENDMENT) 17-09 TO CHANGE THE ZONING
DISTRICT CLASSIFICATION FROM OFFICE INDUSTRIAL PARK (OIP) TO
INDUSTRIAL LIGHT (IL) OF TWO (2) PARCELS (APN: 0280-142-25 AND 36)
CONTAINING A TOTAL OF APPROXIMATELY 1.4 ACRES.
I HEREBY CERTIFY that the foregoing ordinance 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 Ordinance is hereby adopted this _____day of ________, 2018.
________________________________
R. Carey Davis, Mayor
Approved as to form: City of San Bernardino
Gary D. Saenz, City Attorney
By:___________________________________
4
17.b
Packet Pg. 417 Attachment: CD.DCA 17-09 Final Reading.A1.Ordinance (5678 : Development Code Amendment/Zoning Map Amendment 17-09)
PROJECT: DCA (ZMA) 17-09
Change the Zoning District Classification from Office
Industrial Park (OIP) to Industrial Light (IL) for 1.4 acres
NORTH
EXHIBIT A
17.c
Packet Pg. 418 Attachment: CD.DCA 17-09 Final Reading.A1.Ordinance.Exhibit A (5678 : Development Code Amendment/Zoning Map Amendment 17-09)
PROJECT: DCA 17-09, CUP 17-29 & PCN 18-03
Change Zoning District from Office Industrial Park (OIP) to
Industrial Light (IL) for two (2) Parcels containing ± 1.4 acres
NORTH
ATTACHMENT 2 – AERIAL MAP
PROJECT SITE
17.d
Packet Pg. 419 Attachment: CD.DCA 17-09 Attachment 2 - Aerial Map (5678 : Development Code Amendment/Zoning Map Amendment 17-09)
18.a
Packet Pg. 420 Attachment: PR.Boys and Girls Club SB Staff Report (5679 : Boys and Girls Club of San Bernardino – Charter Status)
Since the early 1970’s, the Boys and Girls Club have provided educational and
recreational services to the community, and have partnered with multiple outside
organizations to work collaboratively to provide a variety of programs and services.
Additionally, the Boys and Girls Club of San Bernardino have performed building
renovations which include: interior/exterior paint, internet wiring, new flooring throughout
the building, electrical upgrades, irrigation system, landscaping, new plumbing, new
heater, re-plastering of the pool and the addition of a Teen Center with audio and video
production, recording studio, and dance studio.
Recently, the City was advised the charter of the BGCSB communicated that their
charter was revoked due to inadequate reporting of staff background checks. The CEO
of BGCSB has notified city staff of BGCSB’s intent to separate from the Boys and Girls
Club of America and become a standalone organization known as “The Center for
Youth Enrichment & Family Empowerment”.
The newly named organization intends to continue their partnership with the San
Bernardino City Unified School District to provide before and afterschool care through
(3) three before school programs and (13) thirteen afterschool programs, and continue
to collaborate with other organizations. They also intend to continue providing the same
level of service with the same staffing level of 120 individuals and desires to continue its
relationship with the City.
The City has reached out to both San Bernardino County and the San Bernardino City
Unified School district to discuss their plans for the continued partnership with the newly
named organization. The San Bernardino City Unified School District confirmed that the
relationship will remain unchanged for the duration of the existing agreement. San
Bernardino County will be consulting with their real property agent assigned to the lease
on July 30, 2018 and subsequently seek direction from their County Counsel.
Discussion
The City has recently developed relationships and entered into agreements with
nonprofit organizations to manage and program Anne Shirrels Community Center. The
agreements executed for management and programming at Anne Shirrels Community
Center have included a reasonable monthly facility rental fee. This model has proven to
be successful in providing essential services to the community and generating revenue
to offset the City’s facility maintenance costs. Staff is requesting the Mayor and City
Council review, discuss and provide direction related to the options listed below or other
options identified by the Mayor and City Council.
1. Explore possible assignment of the existing lease to The Center for Youth
Enrichment & Family Empowerment, upon verification of 501(c)(3) status and
staff background checks consistent with City requirements.
7/26/2018 12:32 PM
18.a
Packet Pg. 421 Attachment: PR.Boys and Girls Club SB Staff Report (5679 : Boys and Girls Club of San Bernardino – Charter Status)
2. Negotiate a new lease agreement with The Center for Youth Enrichment &
Family Empowerment, upon verification of 501(c)(3) status and staff background
checks consistent with City requirements.
3. Explore opportunities for comparable services to be provided by other
organizations.
4. Other alternative identified by the Mayor and City Council.
2018-19 Goals and Objectives
Discussion and direction related to the current status of the charter for the Boys and
Girls Club of San Bernardino aligns with Goal No. 6: Operate in a fiscally responsible
and business-like manner.
Fiscal Impact
Currently, the City provides facilities maintenance services in exchange for
programming of the site. Changes to the structure of the agreement with the former
BGCSB may result in a fiscal impact to the City.
Conclusion
Discuss and provide direction related to the current status of the charter for the Boys
and Girls Club of San Bernardino.
Attachments
Attachment 1 Resolution 81-542 – BGCSB Lease
Attachment 2 Boys and Girls Club SB Succession Letter
Attachment 3 Boys and Girls Club SB Transition Letter
Ward: 1
Synopsis of Previous Council Actions:
On January 5, 1969 the Mayor and City Council approved resolution No. 10087 executing a 50
year lease with the Boys and Girls Club of America.
On August 19, 1975 the Mayor and City Council approved resolution No. 12164 amending the
original lease agreement to address maintenance and custodial services to be provided by the City.
On May 22, 1979 the Mayor and City Council approved resolution No. 79-200 extending the
maintenance and custodial services agreement for a year.
On November 18, 1981 the Mayor and City Council approved resolution No. 81-542 executing a
lease with the Boys and Girls Club of San Bernardino relating to Encanto Community Center.
7/26/2018 12:32 PM
18.a
Packet Pg. 422 Attachment: PR.Boys and Girls Club SB Staff Report (5679 : Boys and Girls Club of San Bernardino – Charter Status)
18.b
Packet Pg. 423 Attachment: PR.Boys and Girls Club.Attachment 1 resolution 81-542 lease (5679 : Boys and Girls Club of San Bernardino – Charter Status)
18.b
Packet Pg. 424 Attachment: PR.Boys and Girls Club.Attachment 1 resolution 81-542 lease (5679 : Boys and Girls Club of San Bernardino – Charter Status)
18.b
Packet Pg. 425 Attachment: PR.Boys and Girls Club.Attachment 1 resolution 81-542 lease (5679 : Boys and Girls Club of San Bernardino – Charter Status)
18.b
Packet Pg. 426 Attachment: PR.Boys and Girls Club.Attachment 1 resolution 81-542 lease (5679 : Boys and Girls Club of San Bernardino – Charter Status)
18.b
Packet Pg. 427 Attachment: PR.Boys and Girls Club.Attachment 1 resolution 81-542 lease (5679 : Boys and Girls Club of San Bernardino – Charter Status)
18.b
Packet Pg. 428 Attachment: PR.Boys and Girls Club.Attachment 1 resolution 81-542 lease (5679 : Boys and Girls Club of San Bernardino – Charter Status)
18.b
Packet Pg. 429 Attachment: PR.Boys and Girls Club.Attachment 1 resolution 81-542 lease (5679 : Boys and Girls Club of San Bernardino – Charter Status)
18.b
Packet Pg. 430 Attachment: PR.Boys and Girls Club.Attachment 1 resolution 81-542 lease (5679 : Boys and Girls Club of San Bernardino – Charter Status)
18.b
Packet Pg. 431 Attachment: PR.Boys and Girls Club.Attachment 1 resolution 81-542 lease (5679 : Boys and Girls Club of San Bernardino – Charter Status)
18.c
Packet Pg. 432 Attachment: PR.Boys and Girls Club.Attachment 2 SB Succession Letter (5679 : Boys and Girls Club of San Bernardino – Charter Status)
18.c
Packet Pg. 433 Attachment: PR.Boys and Girls Club.Attachment 2 SB Succession Letter (5679 : Boys and Girls Club of San Bernardino – Charter Status)
June 5, 2018
Mr. Jim Tickemyer
Director, Parks, Recreation & Community Services
City of San Bernardino
290 North D Street
San Bernardino, CA 92401
Re: Transition from BGCA
BOARD OF DIRECTORS
Geneva Rodgers
Chair
Allison Bracy, Esq.
Vice-Chair
SaLisa Green
Secretary
Dion Whitehead
Treasurer
Noni Tate
Member-at-Large
Monica Forbes
Member-at-Large
Artist Gilbert
Member-at-Large
Linda Jackson
Member-at-Large
A. Majadi
President / CEO
TAX ID: 95-2508873
Dear Jim,
The Boys & Girls Club of San Bernardino has recently undergone an
Organizational Assessment conducted by a Senior Executive with Boys & Girls
Club of America. During that assessment, it was determined that we were in
violation of BGCA’S Background Check Policy, thus placing us in violation of
membership policy and consequently led to the revocation of our charter.
The National BGCA requires annual background checks of all employees and
volunteers. Although all our staff and volunteers have submitted to background
checks, and the service we use provides updates on any new occurrences for
previously screened individuals, our policy lacked in proactive regular interval
screenings. W e have since modified our policy and practices to include annual
background checks for all employees and volunteers. Unfortunately, our actions
came too late.
I can assure you that at no time have the youth and families we serve been
placed in danger resulting from failed screening as our service as mentioned
above has been very effective in notifying us of any employee or volunteer that
has a recorded arrest or conviction after the date of their Live Scan. We strongly
disagree with BGCA’s decision to revoke our charter on these grounds because
we see this as an easy fix to what appears to be semantics, however, we
respect their right to do so.
With regards to the “ongoing chronic non-compliance issues” identified by
BGCA, we agreed to a 90-day performance plan to address those issues, and
we did complete said plan before the scheduled deadline. We have addressed
the concerns regarding annual membership dues being paid timely as well as
our need for a dedicated CFO. We now have a full-time person dedicated to all
finance and reporting issues. In years past, because of financial obligations and
funding needs, these tasks were shared by administrative staff who were
committed to meeting compliance issues to the best of their relative abilities but,
none the less, inadequate. This led to delays in reporting and an inability to
meet certain financial obligations. W e no longer have those issues with which
to be concerned as our administrative capacity has been developed to meet the
everyday needs of our organization.
OF SAN BERNARDINO
18.d
Packet Pg. 434 Attachment: PR.Boys and Girls Club.Attachment 3 Transition letter (5679 : Boys and Girls Club of San Bernardino – Charter Status)
Page 2
Mr. Jim Tickemyer
I have requested a meeting with Mayor Carey Davis to discuss this
transition and am waiting on a date for such meeting. Should you have
any questions, at your convenience, I would be happy to meet with you.
Best regards,
A Majadi
A Majadi
18.d
Packet Pg. 435 Attachment: PR.Boys and Girls Club.Attachment 3 Transition letter (5679 : Boys and Girls Club of San Bernardino – Charter Status)
19.a
Packet Pg. 436 Attachment: FN-Agreement Franchise Tax Board for Reciprocal Data Sharing.Report (5680 : Agreement with the Franchise Tax Board for
7/25/2018 5:44 PM
Fiscal Impact
The fiscal impact is uncertain, but any additional business registrations generated will
result in greater revenue for the General Fund.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino,
California adopt Resolution No. 2018-225 authorizing the Director of Finance to execute
the information sharing agreement with the Franchise Tax Board.
Attachment
Attachment 1 – Resolution; Exhibit A - Agreement with Franchise Tax Board
Ward: All
Synopsis of Previous Council Actions: None
19.a
Packet Pg. 437 Attachment: FN-Agreement Franchise Tax Board for Reciprocal Data Sharing.Report (5680 : Agreement with the Franchise Tax Board for
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RESOLUTION NO. 2018-225
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AUTHORIZING AND DIRECTING THE DIRECTOR OF
FINANCE TO EXECUTE A RECIPROCAL DATA SHARING AGREEMENT WITH THE
FRANCHISE TAX BOARD
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 authorize and
direct the Director of Finance to execute an information sharing agreement with the Franchise Tax
Board, attached hereto and incorporated herein as Exhibit “A”.
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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19.b
Packet Pg. 438 Attachment: FN-Agreement Franchise Tax Board for Reciprocal Data Sharing.Resolution (5680 : Agreement with the Franchise Tax Board for
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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 EXECUTE A THREE-YEAR, NO-COST RECIPROCAL DATA SHARING
AGREEMENT WITH THE FRANCHISE TAX BOARD
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: _________________________
19.b
Packet Pg. 439 Attachment: FN-Agreement Franchise Tax Board for Reciprocal Data Sharing.Resolution (5680 : Agreement with the Franchise Tax Board for
STATE OF CALIFORNIA
STANDARD AGREEMENT
STD 213 (Rev 06/03)
AGREEMENT NUMBER
C1700198
REGISTRATION NUMBER
1. This Agreement is entered into between the State Agency and the Contractor named below:
STATE AGENCY'S NAME
Franchise Tax Board
CONTRACTOR'S NAME
City of San Bernardino
2. The term of this
Agreement is: June 1, 2018 or date of approval, whichever is later, through December 31, 2020
3. The maximum amount $ 0.00
of this Agreement is: NON-FINANCIAL AGREEMENT
4. The parties agree to comply with the terms and conditions of the following exhibits, which are by this reference made
a part of the Agreement.
Exhibit A – Scope of Work 3 pages
Exhibit C* – General Terms and Conditions GTC417
Exhibit D – Special Terms and Conditions
3 pages
Exhibit E – City/County Record Layout Specifications 2 pages
Exhibit F – FTB Record Layout Specifications 1 page
Exhibit G – Confidentiality Statement 1 page
Items shown with an Asterisk (*), are hereby incorporated by reference and made part of this agreement as if attached hereto.
These documents can be viewed at http://www.dgs.ca.gov/ols/Resources/StandardContractLanguage.aspx
IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto.
CONTRACTOR California Department of General
Services Use Only
CONTRACTOR’S NAME (if other than an individual, state whether a corporation, partnership, etc.)
City of San Bernardino
BY (Authorized Signature)
DATE SIGNED(Do not type)
PRINTED NAME AND TITLE OF PERSON SIGNING
ADDRESS
290 N D Street. San Bernardino, CA 92418
STATE OF CALIFORNIA
AGENCY NAME
Franchise Tax Board
BY (Authorized Signature)
DATE SIGNED(Do not type)
PRINTED NAME AND TITLE OF PERSON SIGNING Exempt per: SCM 1 - 4.04.A.2.
Michael A. Banuelos, Procurement and Contracting Officer or Designee
ADDRESS
P.O. Box 2086, Rancho Cordova, CA 95741-2086
19.c
Packet Pg. 440 Attachment: FN-Agreement Franchise Tax Board Information Sharing Agreement Contract.Exhibit A (5680 : Agreement with the Franchise Tax
City of San Bernardino
Agreement # C1700198
Page 2 of 11
EXHIBIT A
SCOPE OF WORK
This Agreement is entered into by and between the Franchise Tax Board, herein after referred to as
(FTB), and the City of San Bernardino, herein after referred to as the City.
Purpose:
This Agreement provides for the reciprocal exchange between FTB and the City tax data specific to
city business license information for tax administration purposes. By entering into a reciprocal
agreement, each party agrees to bear its own costs of providing the data, and the City is precluded
from obtaining reimbursement.
Both parties will abide by the legal and confidential provisions of this Agreement. Exhibits A, C, D, E,
F, and G, attached hereto and incorporated by reference herein, set forth additional terms to which
the parties agree to be bound.
No Federal Tax Information will be exchanged.
Legal Authority:
California Revenue and Taxation Code (R&TC) Section 19551.1 authorizes a reciprocal agreement
for the exchange of specified tax information between a City/County and FTB. R&TC
Section 19551.5 mandates cities/counties to provide city/county business licensing and tax
information to FTB upon request.
City Responsibilities:
1. The City agrees that the information provided by FTB will be used exclusively to administer the
City/County Business Tax Program.
2. The City agrees that information obtained under this Agreement will not be reproduced,
published, sold, or released in original or in any other form for any purpose; and will only be
accessed or used by City employees whose duties are to administer the City/County Business
Tax Program.
3. The City agrees to provide FTB with tax information pursuant to Format Specifications, Exhibit E,
which shall include, but not be limited to, the following:
Business or owner’s name
Business or residence address
Federal Employer Identification Number (FEIN) or Social Security Number (SSN)
Ownership type
North American Industry Classification Code or Standard Industry Classification Code
Business start and cessation dates
City Business Tax Number, to be assigned to the City by FTB
4. The City agrees to extract and provide city data to FTB annually in June for each tax year that
the Agreement is in place: June 2018, 2019, and 2020. If the Agreement is executed after June
30, 2018, the City will have 30 days after execution to provide FTB with the first year’s data.
19.c
Packet Pg. 441 Attachment: FN-Agreement Franchise Tax Board Information Sharing Agreement Contract.Exhibit A (5680 : Agreement with the Franchise Tax
City of San Bernardino
Agreement # C1700198
Page 3 of 11
EXHIBIT A
SCOPE OF WORK
5. The City agrees to submit the records to FTB electronically using FTB's Secure Web Internet File
Transfer (SWIFT) system.
6. The City agrees to submit the records to FTB in ASCII fixed-length format, .txt, per the Format
Specifications, Exhibit E.
7. The City agrees to resubmit data in the event data is initially submitted with errors. The
resubmission of data must be within 30 days of notification. If data is not submitted accurately
and timely, the City will forfeit its rights to FTB data for that year.
8. The City agrees that each City employee having access to FTB data shall sign a City/County
Business Tax Program Confidentiality Statement, Exhibit G, and FTB 712. The signed statement
is to be retained by the City and produced to FTB upon request.
9. The City agrees to submit to FTB a completed Safeguard Review Questionnaire prior to
receiving any FTB data. The Safeguard Review Questionnaire is valid for the duration of the
Agreement.
10. The City agrees to provide a copy of the resolution, order, minutes reflecting passage of a
motion, or ordinance of the local governing body authorizing the execution of the Agreement.
FTB Responsibilities:
1. FTB agrees that information provided by the City will be used for tax administration and non-tax
programs that FTB administers and may be shared with other state or federal agencies as
authorized by law.
2. FTB agrees that information obtained under this Agreement will not be reproduced, published,
sold, or released in original or in any other form for any purpose, except as provided in
paragraph 1 or otherwise authorized by law.
3. FTB agrees to provide the City with data extracted from the Taxpayer Information (TI) system
and Business Entities Tax System (BETS). FTB will provide the City with records for taxpayers
within the City’s jurisdiction who indicate a business on their personal or business entity income
tax return. The Record Layout, Exhibit F, FTB 909A shall include:
Taxpayer name
Taxpayer address
Taxpayer SSN or FEIN
Principal Business Activity code
4. FTB agrees to match the data provided by the City using the SSN or FEIN against FTB’s data
with a “Yes” or “No” indicator on the Record Layout, Exhibit F, FTB 909A. The first year’s data
match is at the discretion of FTB based on when the data is received from the City and
processed.
19.c
Packet Pg. 442 Attachment: FN-Agreement Franchise Tax Board Information Sharing Agreement Contract.Exhibit A (5680 : Agreement with the Franchise Tax
City of San Bernardino
Agreement # C1700198
Page 4 of 11
EXHIBIT A
SCOPE OF WORK
5. FTB agrees to provide the City with an annual data extract in December 2018 for tax year 2017,
in December 2019 for tax year 2018, and in December 2020 for tax year 2019 via SWIFT.
6. FTB agrees to register the City for a SWIFT account allowing for the secure electronic
transmission of data.
7. FTB agrees to provide the City with a unique City Business Tax Number to be used for reporting
purposes only.
8. FTB agrees to allow the City to resubmit data within 30 days of notification, in the event data is
initially submitted with errors.
Project Coordinators:
The project coordinators during the term of this Agreement will be:
Franchise Tax Board City of San Bernardino
Felicia Hicks Telicia Lopez
City/County Business Tax Program Manager Manager
Data Resources and Services Unit 290 N D Street
P.O. Box 1468, Mailstop A181 San Bernardino, CA 92418
Sacramento, CA 95812-1468 Phone: (909) 384-7272
Phone: (916) 845-6304 Email: lopez_te@sbcity.org
Email: FTB CCBT@ftb.ca.gov
Return executed agreement to:
Franchise Tax Board
Marisa Lai
Business Acquisitions Unit
P.O. Box 2086, Mailstop A-374
Rancho Cordova, CA 95741-2086
Phone: (916) 845-4518
Fax: (916) 843-2298
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Packet Pg. 443 Attachment: FN-Agreement Franchise Tax Board Information Sharing Agreement Contract.Exhibit A (5680 : Agreement with the Franchise Tax
City of San Bernardino
Agreement # C1700198
Page 5 of 11
EXHIBIT D
SPECIAL TERMS AND CONDITIONS
1. DATA OWNERSHIP: The confidential tax information or sensitive information being
provided under this Agreement remains the exclusive property of the FTB. Confidential tax
and sensitive data/information are not open to the public and require special precautions to
protect from loss and unauthorized use, disclosure, modification, or destruction. The City
(or County) shall have the right to use and process the disclosed information for the
purposes stated in the Scope of Work of Exhibit A of this Agreement, which right shall be
revoked and terminated immediately upon termination of this Agreement.
2. STATEMENT OF CONFIDENTIALITY: The FTB has tax returns and other confidential data
in its custody. Unauthorized inspection or disclosure of federal returns and other
confidential data is a misdemeanor or a felony (R&TC Sections 19542, 19542.1, 19542.3
and 19552 and Government Code Section 90005).
Upon the approval of this agreement and prior to any access to the confidential or sensitive
data of the FTB. Each City (or County) employee who may have access to the confidential
data of FTB will be required to sign a City/County Business Tax Program Confidentiality
Statement, Exhibit G, FTB 712, attesting to the fact that he/she is aware of the
confidentiality of the data and the penalties for unauthorized disclosure thereof under
applicable state and federal law. The signed statement(s) shall be retained by the City (or
County) and furnished to FTB upon request
3. USE OF INFORMATION: The City (or County) agrees that the information furnished or
secured pursuant to this Agreement shall be used solely for the purposes described in the
Scope of Work of Exhibit A. The City (or County) further agrees that information obtained
under this Agreement will not be reproduced, published, sold or released in original or in
any other form for any purpose other than as identified in this section.
4. EMPLOYEE ACCESS TO INFORMATION: Both FTB and the City (or County) receiving
data agree that the information obtained will be kept in the strictest confidence and shall
make information available to its own employees only on a “need to know” basis. The “need
to know” standard is met by authorized employees who need the information to perform
their official duties in connection with the uses of the information authorized by this
Agreement. Each party receiving data recognize(s) their responsibility to protect the
confidentiality of the information in its custody as provided by law and ensure that such
information is disclosed only to those individuals and for such purposes as authorized by
law and this Agreement.
5. PROTECTING CONFIDENTIAL INFORMATION/ INCIDENT REPORTING: Both agencies,
receiving data, in recognizing the confidentiality of the information to be exchanged,
pursuant to this agreement from unauthorized disclosure. Both agencies receiving data will
conduct oversight of its users with access to the confidential information provided under
this agreement and will immediately notify the FTB’s Information Security Audit Unit
(SecurityAuditMail@ftb.ca.gov) of any unauthorized or suspected unauthorized accesses,
uses and/or disclosures (incidents). For purposes of this section, immediately is defined as
within 24 hours of the discovery of the breach. The notification must describe the incident in
detail and identify responsible personnel (name, title, and contact information). The City (or
County) with an incident will comply with the incident reporting requirements in accordance
with R&TC Section 19542.1, Civil Code Section 1798.29, SAM Chapter 5300, and SAM
Section 20080 to facilitate or fulfill the required reporting to the taxpayers or state oversight
agencies.
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Packet Pg. 444 Attachment: FN-Agreement Franchise Tax Board Information Sharing Agreement Contract.Exhibit A (5680 : Agreement with the Franchise Tax
City of San Bernardino
Agreement # C1700198
Page 6 of 11
EXHIBIT D
SPECIAL TERMS AND CONDITIONS
6. INFORMATION SECURITY: Information security is defined as the preservation of the
confidentiality, integrity, and availability of information. A secure environment is required to
protect the confidential information obtained from FTB pursuant to this agreement. The City
(or County) receiving data will store information so that it is physically secure from
unauthorized access. The records received by the City (or County) will be securely
maintained and accessible only by employees of the City (or County) business license or
tax programs who are committed to protect the data from unauthorized access, use, or
disclosure. All FTB electronic data must be encrypted when in transit using FIPS 140-2
approved encryption technology and be password protected and secure at all times when
in storage. Confidential information obtained from the FTB must be secured in accordance
with the State Administrative Manual, Chapters 5100 (EDP Standards) and 5300
(Information Security); National Institute of Standards and Technology (NIST) Special
Publication 800-53 (moderate); and additional security requirements provided by FTB.
7. CLOUD COMPUTING ENVIRONMENT: A Cloud Computing Environment cannot be used
to receive, transmit, store or process FTB’s confidential data without prior written approval
from FTB’s Chief Security Officer.
8. DESTRUCTION OF RECORDS: All records received by the City (or County) y from FTB,
and any database(s) created, copies made, or files attributed to the records received, will
be returned or destroyed within three years of receipt or upon termination of the agreement
due to a breach of its terms, whichever occurs earlier. The records shall be destructed in a
manner to be deemed unusable or unreadable, and to the extent that an individual record
can no longer be reasonably ascertained. The City (or County) will notify FTB City/County
Business Tax program manager annually in writing at FTB CCBT@FTB.CA.GOV that
proper destruction methods have been applied. FTB will destroy city/county data in
accordance with the department’s data retention policies.
9. DISPUTE RESOLUTION: In the event of a dispute, the City (or County) shall file a “Notice
of Dispute” with the Chief Financial Officer of the FTB within ten (10) days of discovery of
the problem. Within ten (10) days, the Chief Financial Officer or his/her designee shall meet
with the City (or County) for purposes of resolving the dispute. The decision of the Chief
Financial Officer shall be final.
10. SAFEGUARD REVIEW QUESTIONNAIRE AND REVIEW: Prior to sending data to the City
(or County), FTB requires the City (or County) to submit a Safeguard Review Questionnaire
certifying the protection and confidentiality of FTB data. The City (or County) will be
provided a minimum of seven (7) days’ notice prior to an on-site safeguard review being
conducted by FTB. FTB retains the right to conduct on-site safeguard reviews of the City
(or County) use of FTB information and security controls established. The safeguard
reviews may include, but are not limited to an examination of the adequacy of information
security controls, “need to know,” and use justifications established by the City (or County)
to ensure compliance with the terms and conditions of this agreement. The City (or County)
will take appropriate disciplinary actions against any user determined to have violated
security or confidentiality requirements.
11. LIMITED WARRANTY: Neither party represents or warrants the accuracy or content of the
material available through this Agreement, nor each expressly disclaims any express or
implied warranty, including any implied warranty of fitness for a specific purpose.
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Packet Pg. 445 Attachment: FN-Agreement Franchise Tax Board Information Sharing Agreement Contract.Exhibit A (5680 : Agreement with the Franchise Tax
City of San Bernardino
Agreement # C1700198
Page 7 of 11
EXHIBIT D
SPECIAL TERMS AND CONDITIONS
12. CANCELLATION: Either party may terminate this Agreement, in writing for any reason,
upon thirty (30) days’ prior written notice. This Agreement may be terminated immediately
by either party in the event of any breach of the terms of this Agreement.
13. NO THIRD PARTY LIABILITY: Nothing contained in or related to this agreement shall
create any contractual relationship between either of the Parties and any other party,
except between FTB and the City (or County); and no other party shall relieve the City (or
County) or FTB of its responsibilities and obligations hereunder. Each of the parties agrees
to be fully responsible for the acts and omissions of its third party contractors and agents,
and of persons either directly or indirectly employed by the party. Neither of the parties
shall have any obligation to pay, or to see to the payment of, any monies to any party or
persons either directly or indirectly employed by the other.
19.c
Packet Pg. 446 Attachment: FN-Agreement Franchise Tax Board Information Sharing Agreement Contract.Exhibit A (5680 : Agreement with the Franchise Tax
City of San Bernardino
Agreement # C1700198
Page 8 of 11
EXHIBIT E
CITY AND COUNTY RECORD FORMAT SPECIFICATIONS (FTB 909)
Data Element Name Start
Pos.
End
Pos.
Field
Size
Usage Description
SOCIAL SECURITY NUMBER
(SSN)
1 9 9 AN Must be present unless FEIN is
provided. Fill unused field with
zeros.
FEDERAL EMPLOYER
ID NUMBER (FEIN)
10 18 9 AN Must be present unless SSN is
provided. Fill unused field with
zeros.
OWNERSHIP TYPE 19 19 1 AN Must be present:
S = Sole Proprietorship
P = Partnership
C = Corporation
T = Trust
L = Limited Liability Company
OWNER’S LAST NAME 20 34 15 AN Must be present if Ownership Type
in position 19 = S.
OWNER’S FIRST NAME 35 45 11 AN Must be present if Ownership Type
in position 19 = S.
OWNER’S MIDDLE INITIAL 46 46 1 AN May be left blank.
BUSINESS NAME 47 86 40 AN Enter if business is operating under
a fictitious name (Doing Business
As (DBA)).
BUSINESS ADDRESS
NUMBER AND STREET
87 126 40 AN Address of the business location or
the residence of the owner if sole
proprietorship.
CITY 127 166 40 A Must be present.
STATE 167 168 2 A Enter standard state abbreviation.
ZIP CODE 169 177 9 AN Enter the five- or nine-digit ZIP
Code assigned by the U.S. Postal
Service. If only the first five-digits
are known, left-justify information
and fill the unused fields with zeros.
BUSINESS START DATE 178 185 8 N Enter the eight-digit date
(MMDDYYYY). Zero fill if not
known.
BUSINESS CEASE DATE 186 193 8 N Enter the eight-digit date
(MMDDYYYY) if out of
business. Zero fill if unknown or still
in business.
19.c
Packet Pg. 447 Attachment: FN-Agreement Franchise Tax Board Information Sharing Agreement Contract.Exhibit A (5680 : Agreement with the Franchise Tax
City of San Bernardino
Agreement # C1700198
Page 9 of 11
EXHIBIT E
CITY AND COUNTY RECORD FORMAT SPECIFICATIONS (FTB 909)
Data Element Name Start
Pos.
End
Pos.
Field
Size
Usage Description
CITY BUSINESS TAX
NUMBER
194 196 3 N Enter three-digit number assigned
by FTB.
NORTH AMERICAN
INDUSTRY CLASSIFICATION
SYSTEM (NAICS)
197 202 6 N Enter the two- to six-digit NAICS
code. Left justify. (example 99 will
be 9900). Fill unused fields with
zeros.
STANDARD INDUSTRIAL
CLASSIFICATION (SIC)
203 206 4 N Enter the 2-4 digit SIC code. Left
justify (example 99 will be 9900).
Fill unused fields with zeros.
TOTAL RECORD LENGTH 206
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Packet Pg. 448 Attachment: FN-Agreement Franchise Tax Board Information Sharing Agreement Contract.Exhibit A (5680 : Agreement with the Franchise Tax
City of San Bernardino
Agreement # C1700198
Page 10 of 11
EXHIBIT F
FRANCHISE TAX BOARD RECORD LAYOUT SPECIFICATIONS (FTB 909A)
Field Name Length Start
Pos.
Description
ENTITY TYPE 1 1 “P” – personal income tax record;
“B” – business entity tax record.
SSN or FEIN 9 2 For “P” records, primary taxpayer’s social
security number; For “B” records, federal
employer identification number.
LAST NAME 40 11 For “P” records, the primary taxpayer’s last
name; For “B” records, business name.
FIRST NAME 11 51 For “P” records ONLY.
MIDDLE INITIAL 1 62 For “P” records ONLY.
SPOUSE SSN 9 63 For “P” records filed with a joint return.
SPOUSE LAST NAME 17 72 For “P” records filed with a joint return.
SPOUSE FIRST NAME 11 89 For “P” records filed with a joint return.
SPOUSE MIDDLE INITIAL 1 100 For “P” records filed with a joint return.
PBA CODE 6 101 Principal Business Activity code.
ADDRESS NUMBER 10 107
PRE-DIRECTIONAL DIRECTOR 2 117 Postal Service term (i.e., N, S, E, W, NE,
NW, SE, SW).
STREET NAME 28 119
STREET SUFFIX 4 147 e.g., ST, WAY, HWY, BLVD, etc.
POST-DIRECTIONAL INDICATOR 2 151 Postal Service term (i.e., N, S, E, W, NE,
NW, SE, SW).
STREET SUFFIX 2 4 153
APARTMENT/SUITE NUMBER 10 157 e.g., APT, UNIT, FL, etc.
CITY 13 167
STATE 2 180 Standard state abbreviation.
ZIP CODE 5 182 The five-digit ZIP Code assigned by the U.S.
Postal Service.
ZIP CODE SUFFIX 4 187 Provided if known.
CBT MATCH 1 191 “N” – No match per CBT data.
“Y” – Yes: CBT matched to state tax return
filed.
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Packet Pg. 449 Attachment: FN-Agreement Franchise Tax Board Information Sharing Agreement Contract.Exhibit A (5680 : Agreement with the Franchise Tax
City of San Bernardino
Agreement # C1700198
Page 11 of 11
EXHIBIT G
CONFIDENTIALITY STATEMENT (FTB 712)
State of California Franchise Tax Board
City/County Business Tax Program Confidentiality Statement
Confidential tax data is protected from disclosure by law, regulation, and policy. Information security is
strictly enforced; violators may be subject to disciplinary, civil, and/or criminal action. Protecting
confidential tax data is in the best interest of the city, county, and state.
As a city/county employee, you are required to protect all information received from the
Franchise Tax Board (FTB). To protect confidential tax data, you must:
Access or modify tax data solely to perform official duties.
Never access or inspect tax data for curiosity or personal reasons.
Never show or discuss confidential tax data with anyone who does not have a need
to know.
Never remove confidential tax data from your worksite without authorization.
Place confidential tax data in approved locations only.
Unauthorized inspection, access, use, or disclosure of confidential tax data is a crime under state laws
including, but not limited to, California Revenue and Taxation Code Sections 19542 and 19552 and
Penal Code Section 502. Unauthorized access, inspection, use, or disclosure may result in either or
both of the following:
State criminal action.
Taxpayer civil action.
I certify that I have read the confidentiality statement printed above. I further certify and
understand that unauthorized access, inspection, use, or disclosure of confidential information
may be punishable as a crime and may result in disciplinary and/or civil action against me.
Name (print)
Each city/county employee accessing FTB data must retain a signed copy of this form and provide it to
FTB upon request.
FTB 712 (REV 06-2016)
Signature Date
19.c
Packet Pg. 450 Attachment: FN-Agreement Franchise Tax Board Information Sharing Agreement Contract.Exhibit A (5680 : Agreement with the Franchise Tax
20.a
Packet Pg. 451 Attachment: CM.Pace Program Update.SR (5681 : Request to Add CMFA Joint Powers Authority as a City of San Bernardino Provider Under the
California Statewide Communities Development Authority (CSCDA) is a statewide JPA
formed by the California State Association of Counties (CSAC) and the League of
California Cities (LCC). CSCDA operates an Open PACE model established pursuant to
AB811 and AB474 with five different program providers. The program administrators
operating under the CSCDA Open PACE Program include:
• Renewable Funding LLC / CaliforniaFIRST - provides financing for residential
and commercial property owners.
• Alliance NRG - provides financing for energy efficiency and renewable energy
products for both residential and commercial property owners.
• PACE Funding- provides energy efficiency, water conservation and renewable
energy financing for residential customers.
• Spruce Finance, Inc. - provides financing for residential solar systems, water
conservation and energy efficiency upgrades.
• CleanFund Commercial PACE Capital - provides financing and is direct lender
focused exclusively on the commercial property sector.
California Enterprise Development Authority (CEDA) is a JPA established by the
California Association of Local Economic Developers (CALED) and operates a PACE
Program, which is administered by Figtree, using the AB 811 and AB 474 models.
• Figtree PACE- administered by Figtree Energy Financing and is only available to
commercial, industrial and multifamily property owners.
Golden State Finance Authority (GSFA), previously named California Home Finance
Authority (CHFA), is a statewide JPA formed in 1993 that operates a PACE Program
administered by Ygrene using both SB 555 (Mello-Roos CFD) and AB 811 (Assessment
District).
• Ygrene Energy Fund, LLC- serves as the program administrator and offers
financing for single family residential, multifamily and commercial property
owners to generate renewable energy or reduce their energy and water use.
Discussion
On May 15, 2017, the Mayor and City Council considered an item concerning SBCOG’s
decision to terminate the relationship with the HERO Program and Renovate America
due to concerns raised regarding unfair business practices. A class action lawsuit was
brought against Los Angeles County and Renovate America alleging the municipality
took part in a home improvement loan program that overcharged low- and middle-
income homeowners.
20.a
Packet Pg. 452 Attachment: CM.Pace Program Update.SR (5681 : Request to Add CMFA Joint Powers Authority as a City of San Bernardino Provider Under the
Some SBCOG Board members reported having received a number of complaints
concerning the use of false and deceptive means to carry out the program, including
imposing excessive fees and costs based on inflated interest rates. Board members
also reported having received complaints of homeowners and community members that
the program is predatory on senior citizens and the underprivileged who may not
understand the terms and conditions of the contract. Additional comments shared
during the meeting addressed the high interest rates and the lack of safeguards.
Following discussion, the Board declined to approve the extension of the agreement.
As such, the program ceased to exist as of June 30, 2017.
At that time, the Mayor and City Council were asked to consider the information and
provide staff direction related to all PACE Programs. The matter was tabled by the
Mayor and City Council and the current PACE Programs still exist.
A new request has been submitted to the City Manager’s Office to add CMFA Joint
Powers Authority to the list of City providers under the PACE Program and staff is
seeking direction from the City Council prior to conducting the research, legal review,
and document preparation necessary to effectuate the City Council agenda item.
Fiscal Impact
There is no financial impact to the City associated with the result of this action.
Conclusion
Staff recommends that the Mayor and City Council review, discuss, and provide
direction related to the request that CMFA Joint Powers Authority be added to the list of
City providers under the PACE Program.
Ward: All
Synopsis of Previous Council Actions:
In 1994 by Resolution 94-131 the City joined the CSCDA JPA.
On February 2013, the Mayor and City Council approved executing an MOU with SANBAG to offer the HERO Program in the
City.
On January 23, 2017, the Mayor and City Council approved a Resolution authorizing membership in the California Enterprise
Development Authority (CEDA), authorizing Figtree Pace Program and CEDA to offer Pace Programing within the City.
On April 3, 2017, the Mayor and City Council approved a Resolutions authorizing membership in the Golden State Finance
Authority (GSFA), authorizing Ygrene Energy Fund, LLC. to offer Pace Programing within the City.
On April 3, 2017, the Mayor and City Council approved a Resolution authorizing the City to participate in CSCDA’s Open PACE
Program, authorizing five different programs to operate within City boundaries: Renewable Funding LLC, Alliance NRG, PACE
Funding, Spruce Finance, Inc., and CleanFund Commercial Pace Capitol.
20.a
Packet Pg. 453 Attachment: CM.Pace Program Update.SR (5681 : Request to Add CMFA Joint Powers Authority as a City of San Bernardino Provider Under the
Staff Report
City of San Bernardino
Request for Council Action
Date: August 1, 2018
To: Honorable Mayor and City Council Members
From: Council Members Benito Barrios, Henry Nickel and Jim Mulvihill
By: Renee Brizuela, Administrative Assistant to City Council
Subject: League of CA Cities Mayors & Council Members Executive
Forum and Advanced Leadership Workshops – June 27-29,
2018
Recommendation
Receive an oral report from Council Members Barrios, Nickel, and Mulvihill.
Background
On June 27-29, 2018, Council Members Barrios, Nickel and Mulvihill attended the
League of CA Cities Mayors & Council Members Executive Forum and Advanced
Leadership Workshops in Monterey, CA.
Discussion
The Council Members will provide an oral report on the League of CA Cities Mayors &
Council Members Executive Forum and Advanced Leadership Workshops at this
evening’s meeting.
Mayor, City Council and City Manager Goals and Objectives
They attended the League of CA Cities Mayors & Council Members Executive Forum
and Advanced Leadership Workshops to gain knowledge for future policy making
decisions. It aligns with Goal Number 3 which is to Create, Maintain and Grow Jobs and
Economic Value in the City.
Fiscal Impact
Receipts totaling $4049.75 were submitted for various travel expenses by the three
council members attending the conference.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino receive
and file the oral report.
7/25/2018 12:39 PM
21.a
Packet Pg. 454 Attachment: Council.League of California Cities Mayors and Council Members Executive Forum and Advanced Leadership Workshops - June
Attachments
Attachment 1 – § 532323- Government Code on Reporting Trips
Attachment 2 - AB 1234 Report on Meetings Attended
Attachment 3 – League of CA Cities Mayors & Council Members Executive Forum and
Advanced Leadership Workshops agenda
7/25/2018 12:39 PM
21.a
Packet Pg. 455 Attachment: Council.League of California Cities Mayors and Council Members Executive Forum and Advanced Leadership Workshops - June
21.b
Packet Pg. 456 Attachment: council.league lccef § 532323- government code on reporting trips(attachment 1) (5682 : League of CA Cities Mayors & Council
21.c
Packet Pg. 457 Attachment: Council.League LCCEF AB1234 Report on Meeting (Attachment 2) (5682 : League of CA Cities Mayors & Council Members
21.d
Packet Pg. 458 Attachment: Council.League LCCEF Agenda (Attachment 3) (5682 : League of CA Cities Mayors & Council Members Executive Forum and
21.d
Packet Pg. 459 Attachment: Council.League LCCEF Agenda (Attachment 3) (5682 : League of CA Cities Mayors & Council Members Executive Forum and
21.d
Packet Pg. 460 Attachment: Council.League LCCEF Agenda (Attachment 3) (5682 : League of CA Cities Mayors & Council Members Executive Forum and
21.d
Packet Pg. 461 Attachment: Council.League LCCEF Agenda (Attachment 3) (5682 : League of CA Cities Mayors & Council Members Executive Forum and
21.d
Packet Pg. 462 Attachment: Council.League LCCEF Agenda (Attachment 3) (5682 : League of CA Cities Mayors & Council Members Executive Forum and
21.d
Packet Pg. 463 Attachment: Council.League LCCEF Agenda (Attachment 3) (5682 : League of CA Cities Mayors & Council Members Executive Forum and
21.d
Packet Pg. 464 Attachment: Council.League LCCEF Agenda (Attachment 3) (5682 : League of CA Cities Mayors & Council Members Executive Forum and
21.d
Packet Pg. 465 Attachment: Council.League LCCEF Agenda (Attachment 3) (5682 : League of CA Cities Mayors & Council Members Executive Forum and
21.d
Packet Pg. 466 Attachment: Council.League LCCEF Agenda (Attachment 3) (5682 : League of CA Cities Mayors & Council Members Executive Forum and
21.d
Packet Pg. 467 Attachment: Council.League LCCEF Agenda (Attachment 3) (5682 : League of CA Cities Mayors & Council Members Executive Forum and
Date:
To:
From:
Prepared by:
Subject:
City of San Bernardino
Request for Council Action
August 1, 2018
Honorable City Council Members
R.Carey Davis, Mayor
Staff Report
Council Member Fred Shorett, Council Member Bessine Richard,
and Council Member Jim Mulvihill
Andrea M. Miller, City ManageU./YVY',....
Municipal Legal Services
Recommendation
Receive a presentation from the members of the Ad Hoc Committee on the review,
analysis, and consideration of the proposals received from law firms in response to
the Request for Proposals for municipal legal services;
Concur with the Ad Hoc Committee's recommendation that Best Best & Krieger
LLP (BB&K) be retained by the City of San Bernardino to provide municipal legal
services and, ultimately, city attorney services; and
Adopt Resolution No. 2018-224 of the Mayor and City Council of the City of San
Bernardino, California, authorizing the City Manager to execute an Agreement with
BB&K for municipal legal services and city attorney services.
Background
At Special Meetings held on May 14, 2018 and May 29, 2018, the Mayor and City
Council expressed an interest in exploring opportunities to reduce costs and enhance
the efficiency and effectiveness of the City Attorney function during and following the
transition of the City Attorney position to an appointed position. The City Manager was
requested to issue a Request for Proposals (RFP) for general municipal legal services.
Proposals were solicited from twelve qualified law firms capable of providing the City
with professional services with a high level of regulatory and legal knowledge and
experience. Additionally, the RFP was published on the City's website.
Ten firms submitted proposals by the June 15, 2018 deadline.
This report was prepared by staff on behalf of the Ad Hoc Committee and reviewed and
approved by the Ad Hoc Committee prior to placement on the agenda.
7/26/201812:55 PM
22.a
Packet Pg. 468 Attachment: CM.City Attorney Services Ad Hoc Recommendations Report.Final (5683 : Municipal Legal Services)
Discussion
At the June 20, 2018 meeting, the Mayor and City Council received a report on the
status of the RFP and proposals received; directed the City Manager to prepare a
review and evaluation of the proposals to be presented to an Ad Hoc Committee; and
created the Ad Hoc Committee to review, compare and analyze the proposals and
information presented, interview prospective firms and make recommendations to the
Mayor and entire City Council at a subsequent meeting. Appointments were thereafter
made to the Ad Hoc Committee as provided for in Charter section 303(d).
The Ad Hoc Committee met on July 10, 2018 and reviewed the ten proposals, analyzing
each proposal thoroughly, and reviewing and discussing the strengths and potential
opportunities related to each firm. Following the discussion and based on the
professionalism, responsiveness and thoroughness of the proposals, the Committee
requested that staff invite four firms to interview with the Ad Hoc Committee on July 19,
2018. Firms invited included: Best Best & Krieger, Burke Williams Sorensen LLC ,
Jones & Mayer, and Richards Watson Gershon. Due to scheduling issues, Burke
Williams Sorensen LLC was not available until August 6, 2018,and given the need to
begin the process, the Committee proceeded with the interviews with the intent that, if
needed, additional interviews would be scheduled.
During the interviews, consistent questions were asked of each of the firms, and the
firms were provided an opportunity to add any additional information they believed
would be helpful to the Ad Hoc Committee in making its’ recommendation. Committee
members rated each of the firms on the responsiveness in addressing the questions
posed, professionalism and preparation for the interview demonstrated the firm, ability
to communicate clearly and effectively, enthusiasm and knowledge about the City.
Ratings and comments were recorded on a rating sheet, and Committee members used
a common standard, or point scale, to judge the qualifications of each of the firms.
Following the conclusion of the three interviews and discussion by the Committee
members, the Committee determined that additional interviews were not necessary and
requested that staff contact references for BB&K, which was the firm that unanimously
achieved the highest rating among the Committee members. Attachment 1 is the
proposal submitted to the City by BB&K.
The service model proposed by BB&K provides that one attorney, Sonia R. Carvalho,
would report to the Mayor and City Council and be designated as the Chief Assistant
City Attorney. Thomas A. Rice would be designated as the Assistant City Attorney. Ms.
Carvalho, Mr. Rice, and other attorneys from the firm assigned to particular matters
would collaborate on a day-to-day basis with the City Manager and executive staff,
ensure legal issues are addressed in a thorough and timely manner, and manage the
workload of the attorneys in the firm responsible for serving the City. The number of
attorneys assigned at a given time would depend on the current workload. Additionally,
Ms. Carvalho would collaborate with the elected City Attorney through the end of his
term in office, or March 2020.
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BB&K is prepared to immediately transition into the City, and as the City is currently
providing legal services through various interim agreements, it is recommended the
Mayor and City Council adopt the resolution authorizing the City Manager to execute
the Agreement for Municipal Legal Services and City Attorney Services Between City of
San Bernardino and Best Best & Krieger LLP, which is included as Exhibit A to the
Resolution.
2018-2019 Goals and Objectives
Considering alternative service delivery models aligns with Goal No. 1: Implement the
City Vision, Goal No. 5: Improve City Government Operation, and Goal No. 6: Operate
in a Fiscally Responsible and Business-Like Manner.
Fiscal Impact
BB&K is proposing hourly rates ranging from $150-275 per hour for basic legal services
and from $155-310 per hour for special legal services. The proposed agreement
provides for an annual review of the performance and compensation of BB&K. If
approved, an item will be prepared for the August 15, 2018 Mayor and City Council
Meeting that includes an analysis of projected expenditures (including special legal
services), savings from positions to be deleted and a plan for transition of staff. BB&K
has committed to remain flexible with billing arrangements in order to meet the City’s
goal of reducing the legal services budget, which was $3,272,903 for FY 2017/18.
Conclusion
Staff recommends that the Mayor and City Council Mayor and City Council adopt
Resolution No. 2018-224 authorizing the City Manager to execute the Agreement for
Municipal Legal Services and City Attorney Services Between City of San Bernardino
and Best Best & Krieger LLP.
Please note: Resolution 2018-224; Exhibit A – Agreement for Municipal Legal Services
and City Attorney Services Between City of San Bernardino and Best Best & Krieger
LLP will be distributed and published under separate cover on Monday, July 30, 2018.
Attachments
Attachment 1 – Municipal Legal Services Proposal submitted by BB&K June 15, 2018
Ward: All
Synopsis of Previous Council Actions:
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Bernardino, submit a proposed initiative measure to the voters of the City of San
Bernardino.
BALLOT MEASURE REGARDING COMMERCIAL CANNABIS ACTIVITIES (5.10)
Submitting Chapter 5.10 to the voters would have two significant potential effects. First,
the approval of Chapter 5.10 would likely render moot the existing litigation regarding
the validity of Measure O (and status of Measure N). While the City asserts that
Measure O is invalid, the approval of Chapter 5.10 by the voters could realize significant
litigation cost savings to the City by rendering the litigation moot. Second, the approval
of Chapter 5.10 could give businesses intending to enter the cannabis industry in the
City additional certainty that the local regulatory environment for cannabis is unlikely to
dramatically change in the future. This could encourage additional investment in those
businesses located within the City.
The ordinance attached to this report as Attachment 2 is an amended version of the
original ordinance that enacted Chapter 5.10. The included amendments are based on
direction City staff has received from the City Council, feedback from applicants, and
consultations with legal counsel. The amendments can be broken down into three
categories: necessary amendments, clarifying amendments, and amendments for
consideration.
The necessary amendments are required because the ordinance is being approved by
the voters, not by the City Council. These amendments include changes to the enacting
clause, effective date, and inclusion of the competing measures provision.
The clarifying amendments seek to clarify and correct sections that have caused
confusion among applicants for commercial cannabis business permits. These
amendments are not intended to change the meaning or effect of Chapter 5.10, but are
intended merely to restate the sections in a manner that assists City staff and the public
with implementing the law as originally intended. These changes include clarification for
the intervening structures exception and persons prohibited from holding permits.
The amendments for consideration would retain with the City Council a limited ability to
amend the ordinance going forward into the future. As a general rule, ordinances
approved by the voters cannot be repealed or amended by the City Council, unless the
ordinance specifically reserves that ability. The amendments for consideration would
retain the City Council’s ability to increase the number of available permits in the City
and lower the sensitive use buffer distances.
Listed below is a summary of the proposed amendments to the ordinance from the
original ordinance approved by the City Council. A redline version is also attached as
Attachment 3.
Necessary Amendments
The title of the ordinance has been amended to reflect that the ordinance is being
approved by the people of the City of San Bernardino rather than the Mayor and City
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Council. The reference Development Code Amendment No. 18-02A has been
removed.
The whereas clauses have been amended to reflect events that have occurred since
the ordinance was originally approved by the City Council and to reflect that the
ordinance is being approved by the people of the City of San Bernardino.
The enacting clause has been amended to comply with the language of Elections
Code Section 9224.
Section 2 of the ordinance and Section 5.10.020 regarding Authority have been
amended to reflect the separate authority under which the people of the City of San
Bernardino may consider and approve of ordinances.
Section 5 of the ordinance has been amended to reflect that the people of the City of
San Bernardino are making the land use findings.
Section 6 of the ordinance has been amended to reflect that the people of the City of
San Bernardino are making the findings under CEQA.
Section 7 of the ordinance has been amended to reflect that the effective date is 10
days after the vote is declared by the City Council.
Additional language has been added to the ordinance to handle the issue of
competing measures, total invalidity, and the repeal (if necessary) of previous
measures and laws.
Clarifying Amendments
Intervening Structures Measurements [Section 5.10.250(b)(4)]
Section 5.10.250 establishes sensitive use buffers around cannabis business
properties to ensure neighborhood compatibility between the commercial
cannabis activity and other uses that are likely to suffer detrimental effects. The
section also preserves quality of life in residential neighborhoods by setting
minimum distances between residential zones and residential uses and cannabis
businesses. The distances established by Section 5.10.250 are generally
measured parcel to parcel, without regard to intervening structures. The City
Council created an exception to this rule that requires staff to consider the
following intervening structures when measuring the distances: freeways; flood
control channels; railroads; and the Santa Ana River. City staff, applying the
exception, has measured the parcel to parcel distance without regard to
intervening structures except when the straight line would pass through one of
the listed exceptions. In those cases, City staff measure the shortest distance
between the two parcels that does not pass through the intervening structure,
usually along public rights-of-way.
Additionally, for schools, state law allows local government to establish sensitive
use buffer distances of less than 600 feet, but prescribes the method of
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measurement as parcel to parcel without regard to intervening structures. The
amended language would clarify that the exception created by Section
5.10.250(b)(4) is solely for measuring sensitive uses under Section 5.10.250(b)
and is not intended to create a lesser distance for state law purposes or
modifying the method of measurement required by state law.
Persons Prohibited from Holding a Permit or Being Employed [Section 5.10.100]
Section 5.10.100 establishes prohibitions for certain individuals from holding
commercial cannabis business permits or being employed by a commercial
cannabis business. The purpose of the section is to prohibit those that have been
found to have violated local or state cannabis laws, or local, state, or federal tax
laws, from holding a commercial cannabis business permits or being employed at
commercial cannabis businesses. At least one applicant has questioned whether
the language would prohibit a person from applying for or holding a commercial
cannabis business permit without due process. The section was amended prior
to Council’s enactment to require an actual finding that a violation had occurred.
Nonetheless, a property owner has sued the City claiming the section violates its
due process rights, among other things. While the City asserts that the section is
constitutional as drafted and as is currently being applied, a clarifying
amendment to this section to reiterate the original intent of the section that only
those found to have violated such laws are prohibited would likely assist staff
with implementing the section and further assure applicants that their due
process rights are protected.
Amendments for Consideration
Number of Commercial Cannabis Business Permits [Section 5.10.080]
Section 5.10.080 establishes the maximum number of commercial cannabis
business permits as a ratio to the City’s population at one permit allowed per
12,500 in population. The City’s current population allows for a total of 17
permits. City staff is recommending that the City Council consider retaining the
authority to amend this section to increase the number of commercial cannabis
business permits available if the Council determines the need exists at some
future date.
Sensitive Use Buffer Distances [Section 5.10.250(b)]
Section 5.10.250 establishes sensitive use buffers around cannabis business
properties to ensure neighborhood compatibility between the commercial
cannabis activity and other uses that are likely to suffer detrimental effects. The
section also preserves quality of life in residential neighborhoods by setting
minimum distances between residential zones and residential uses and cannabis
businesses. City staff is recommending that the City Council consider retaining
the authority to establish lesser distances between sensitive uses if necessary to
protect public health and safety in the future.
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BALLOT MEASURE ESTABLISHING A CANNABIS TAX
At the June 20, 2018 meeting of the City Council, the City Council received a
presentation from City staff and the City’s cannabis consultants HdL, on the submission
of a tax measure to the voters of the City of San Bernardino. At that meeting, the City
Council directed City staff to amend the draft ordinance in the following ways:
Add a CPI adjustment to the cultivation space tax.
Section 5.18.050(D)(1)(b) reads: “On January 1, 2022 and on each January 1
thereafter, the maximum annual tax rate per square foot of each type of canopy
space shall increase by the percentage change between January of the calendar
year prior to such increase and January of the calendar year of the increase in
the Consumer Price Index (“CPI”) for all urban consumers in the Riverside-San
Bernardino-Ontario area as published by the United States Government Bureau
of Labor Statistics. However, no CPI adjustment resulting in a decrease of any
tax imposed by this subsection shall be made.”
Clarify that microbusinesses are also subject to the cultivation space tax.
Section 5.18.050(D)(5) now reads: “For every person who engages in a cannabis
manufacturing, processing, or microbusiness (non-retail activity) or any other
type of cannabis business not described in Section (D) (1), (2), (3) or (4), the
maximum tax rate shall not exceed four percent (4%) of gross receipts. However,
cultivation for a microbusiness shall be tax at the rate established in
5.18.050(D)(1)(a)(i).”
Add tax rates for cultivation methods, even if they are not authorized by the current
regulatory ordinance, including outdoor, nursery and mixed light.
Tax rates for all types of cultivation, including those not authorized by the current
regulatory ordinance, are included in Section 5.18.050(D)(1)(a)(i)-(iv).
City staff prepared a resolution submitting a cannabis business tax ordinance to be
submitted to the voters with the following key provisions:
General Tax. Staff recommends the tax be a general tax which will allow the City
Council flexibility through budgeting discretion to use the revenue generated where it
is most needed in the community, including police services, road repairs, parks, and
libraries.
Cultivation by Gross Area. Staff recommends taxing cultivation businesses based
on the area devoted to the activity. Gross area taxes on cultivation provide the City
predictable and easily administered revenue and the taxes are less susceptible to
fraud.
Retail by Gross Receipts. Staff recommends, for all other activities, including retail,
distribution, testing and microbusiness, that the businesses be taxed based on gross
receipts to tax the businesses in proportion to revenue generated.
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Scalable Taxation Rates. Staff recommends that the City Council submit scalable
taxation rates that will allow the City Council to respond to community impacts.
While general law cities are required to approve the submission of tax measures to the
voters by a two-thirds vote (Gov. Code Section 53724(b)), this requirement is not
applicable to charter cities and therefore the resolution need only be approved by a
simple majority of the City Council pursuant to City Charter Section 304.
The imposition of a general tax requires the ballot measure receive majority approval
(50% + 1) of the local electorate that casts a ballot on this measure. City staff previously
brought to the City Council’s attention a proposed statewide initiative known as the Tax
Fairness, Transparency and Accountability Act of 2018 which would have retroactively
increased the approval required to two-thirds of the electorate. As of the drafting of this
staff report, the measure’s proponents have withdrawn the measure after negotiating
with the State legislature.
Based on City Council direction at the June 20, 2018 meeting, staff proposes the
following initial and maximum tax rates:
Cannabis Business
Activity
Initial Tax Rate Maximum Tax Rate
Indoor Cultivation $7.00 per square foot $10.00 per square foot*
Mixed-Light Cultivation $4.00 per square foot $7.00 per square foot*
Natural Light Cultivation $2.00 per square foot $4.00 per square foot*
Nursery $1.00 per square foot $2.00 per square foot*
Testing 1% of gross receipts 2.5% of gross receipts
Retail 4% of gross receipts 6% of gross receipts
Distribution 2% of gross receipts 3% of gross receipts
Manufacturing,
Processing,
Microbusiness, or any
other.
2.5% of gross receipts 4% of gross receipts
*Beginning January 1, 2022 and every year thereafter, the maximum tax rate for
cultivation activities shall increase by the Consumer Price Index (“CPI”) for all urban
consumers in the Riverside-San Bernardino-Ontario area as published by the United
States Government Bureau of Labor Statistics.
Based on the initial tax rates proposed above and estimates provided HdL, which takes
into account industry trends, the population of the City and surrounding areas, and
reports from other jurisdictions, adoption of a cannabis tax is anticipated to create
increased revenue, in the range of approximately $810,000 annually to $2,475,000
annually. It should be noted that there is a degree of uncertainty in the industry
regarding potential revenue. Considerable variation in forecasts may result from
changes in important assumptions, including: the number and type of commercial
cannabis business permits that are issued by the City, the variance in wholesale prices,
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and the productivity/yield of individual plants, changes in other jurisdictions’ approach to
cannabis businesses, and the amount sold through retailers in the City. It is anticipated
that the cannabis industry may need a few years to fully mature within the City and
generate tax revenue at the levels predicted. Additionally, if the market becomes
saturated, economics suggest that the price per pound of cannabis will drop, which
would have a proportional effect on tax revenue. Any tax measure proposed by the City
and approved by the voters would be in addition to State of California taxation
measures already in effect.
Financial Impact
The anticipated cost to file a ballot measure for the November 6, 2018 election is
$49,000 per measure. The amount of revenue generated for the General Fund is
approximately $810,000 annually to $2,475,000 per annum according to industry trends,
however, impacted by considerable variations including the number and types of issued
licenses, pricing, and productivity of operators. As a revenue raising measure, taxes
collected will be available to be used to fund general municipal expenses such as police
services, library services, recreation/parks and street improvements.
Conclusion
That the Mayor and City Council should adopt Resolution No. 2018-227 and Resolution
No. 2018-228 ordering the submission of proposed initiative measures to the electors of
the City of San Bernardino on November 6, 2018.
Attachments
Attachment 1 – Resolution No. 2018-227; Exhibit A - Regulatory Ordinance
Attachment 2 – Redline Comparing Regulatory Ordinance to MC-1464
Attachment 3 – Resolution No. 2018-228; Exhibit A - Tax Ordinance
Ward(s): All
Synopsis of Previous Council Actions:
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RESOLUTION NO. 2018-227
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, CALLING A GENERAL MUNICIPAL ELECTION TO
BE HELD IN THE CITY OF SAN BERNARDINO ON NOVEMBER 6, 2018 FOR THE
PURPOSE OF SUBMITTING TO THE VOTERS AN ORDINANCE REGULATING
COMERCIAL CANNABIS ACTIVITIES; REQUESTING THAT THE SAN
BERNARDINO COUNTY BOARD OF SUPERVISORS CONSOLIDATE SAID
ELECTION WITH THE STATEWIDE GENERAL ELECTION TO BE CONDUCTED
ON THE SAME DATE AND TO PERMIT THE REGISTRAR OF VOTERS TO
PROVIDE ELECTION SERVICES; AND SETTING RULES FOR ARGUMENTS AND
REBUTTALS FOR AND AGAINST SAID MEASURE
WHEREAS, the Mayor and City Council have identified seven goals and objectives for
the City of San Bernardino, including providing for the safety of City residents and businesses,
creating, maintaining, and growing jobs and economic value in the City, ensuring development of
a well-planned, balanced and sustainable City, improving City government operations, and
operating in a fiscally responsible and business-like manner; and
WHEREAS, voter-approved regulations on commercial cannabis activities will address
these goals by regulating an industry that has resulted in serious public health and safety issues in
the community, create new jobs, and lessen the strain on government operations caused by the
illicit cannabis industry; and
WHEREAS, pursuant to Section 9222 of the California Elections Code, the Mayor and
City Council have the authority to place propositions on the ballot at a general or special
municipal election; and
WHEREAS, the City Council would like to submit to the voters a measure amending
and reenacting Chapter 5.10 of the San Bernardino Municipal Code related to the regulation of
commercial cannabis activities; and
WHEREAS, pursuant to the Charter of the City of San Bernardino, §800, the next
regular election for the City of San Bernardino is the City’s general election set for the same day
as the State General Election, which is the first Tuesday after the first Monday in November of
each even-numbered year. Therefore, the next regularly scheduled general election for the City
will be held on Tuesday, November 6, 2018; and
WHEREAS, the Mayor and City Council desire to consolidate the election for the ballot
measure described herein with the Statewide General Election to be held on November 6, 2018;
and
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WHEREAS, pursuant to California Elections Code, the Mayor and City Council further
desire to establish rules and regulations for the preparation, submittal and printing of arguments
and rebuttals for and against the measure described herein; and
WHEREAS, the specific terms regulating commercial cannabis activities are contained
in the ordinance to be considered by the qualified voters, attached hereto as Exhibit “A” (the
“Ordinance”) and by this reference made an operative part hereof, and in accordance with all
applicable laws.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. Recitals. The Mayor and City Council hereby find and determine that the
foregoing recitals are true and correct, are incorporated herein and by this reference made an
operative part hereof.
SECTION 2. Submission of Ballot Measure. Pursuant to the Charter of the City of San
Bernardino §§300, 304, Section 9222 of the Elections Code, and any other applicable
requirements of the laws of the State of California relating to charter cities, the Mayor and City
Council, by a simple majority vote, hereby call and order to be held in the City of San Bernardino
on Tuesday, November 6, 2018, an election for the purpose of submitting the Ordinance attached
hereto as Exhibit “A” and incorporated herein by this reference to the qualified electors of the
City (the “Measure”) with said election to be held on the same day as the City’s general
municipal election and consolidated with the Statewide General Election on Tuesday, November
6, 2018.
SECTION 3. Ballot Measure. The Mayor and City Council, pursuant to their right and
authority, do hereby order that the Measure shall be presented and printed upon the ballot
submitted to the qualified voters in the manner and form set forth in this Section 3. On the ballot
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to be submitted to the qualified voters at the election to be held at the City’s general municipal
election to be consolidated with the Statewide General Election on Tuesday, November 6, 2018,
in addition to any other matters required by law, there shall be printed substantially the
following:
“Shall an ordinance amending and reenacting Chapter
5.10 of the San Bernardino Municipal Code, to
regulate commercial cannabis businesses, be
adopted?”
YES
NO
SECTION 4. Election Procedures.
A. The Mayor and City Council consent to the consolidation of the election on this
Measure with all other elections being held in the same territory on November 6, 2018, and to
hold and conduct the consolidated election in the manner prescribed in Elections Code Section
10400, et seq.
B. The ballots to be used at the election shall be in the form and content as required
by law.
C. In accordance with Section 10002 of the Elections Code, the Board of Supervisors
of San Bernardino County is hereby requested to consent to the consolidation of this election
with the Statewide General Election on the same date and have the Registrar of Voters render
such election services to the City of San Bernardino as may be requested by the City Clerk of
said City. The County of San Bernardino will be reimbursed in full for such services as are
performed.
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D. The election services which the City of San Bernardino requests the Registrar of
Voters, or such other official as may be appropriate, to perform and which such officer is hereby
authorized and directed to perform, if said Board of Supervisors consents, include: the
preparation, printing and mailing of sample ballots and polling place cards; the establishment or
appointment of precincts, polling places, and election officers, and making such publications as
are required by law in connection therewith; the furnishing of ballots, voting booths and other
necessary supplies or materials for polling places; the canvassing of the returns of the election
and the furnishing of the results of such canvassing to the City Clerk of the City of San
Bernardino; and the performance of such other election services as may be requested by the City
Clerk.
E. In all particulars not recited in this Resolution, the election shall be held and
conducted as provided by law for holding municipal elections in the City.
F. Notice of the time and place of holding the election is given and the City Clerk is
authorized, instructed and directed to give further or additional notice of the election, in time,
form, and manner as required by law.
G. All ballots shall be tallied at a central counting place and not at the precincts. Said
central counting place shall be at a County center as designated by the Registrar of Voters.
H. The San Bernardino County Registrar of Voters is hereby authorized to canvass
the returns of said election.
I. The City Clerk of the City of San Bernardino shall receive the canvass as it
pertains to the election on the measure, and shall certify the results to the Mayor and City
Council, as required by law.
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SECTION 5. Primary Arguments and Impartial Analysis.
A. Primary Arguments. The Mayor and City Council authorize (i) the Mayor and/or
any member(s) of the City Council, (ii) any individual voter eligible to vote on the above
measure, (iii) a bona fide association of such citizens or (iv) any combination of voters and
associations, to file a written argument in favor of or against the Measure, accompanied by the
printed name(s) and signature(s) of the author(s) submitting it, in accordance with Article 4,
Chapter 3, Division 9 of the Elections Code of the State of California, and to change the
argument until and including the date fixed by the City Clerk, after which no arguments for or
against the City measure may be submitted to the City Clerk.
B. The deadline to submit arguments for or against the Measure pursuant to this
Resolution is declared by the City Clerk to be Wednesday, August 23, 2018 at or before 5:00
p.m. at the Office of the City Clerk, 215 N. "D" Street, 3rd Floor, San Bernardino, California.
Each argument shall not exceed 300 words and shall be filed with the City Clerk, signed, and
include the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on
behalf of an organization, the name of the organization, and the printed name and signature of at
least one of its principal officers who is the author of the argument.
C. Pursuant to Section 9280 of the Elections Code, the City Council directs the City
Clerk to transmit a copy of the measure to the City Attorney. The City Attorney shall prepare an
impartial analysis of the measure, not to exceed 500 words in length, showing the effect of the
measure on the existing law and the operation of the measure. The City Attorney shall transmit
such impartial analysis to the City Clerk, who shall cause the analysis to be published in the
ballot pamphlet along with the ballot measure as provided by law. The Impartial Analysis shall
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be filed by Thursday, August 16, 2018 at or before 5:00 p.m. at the Office of the City Clerk, 215
N. "D" Street, 3rd Floor, San Bernardino, California. The impartial analysis shall include a
statement indicating that the measure was placed on the ballot by the Mayor and City Council. In
the event the entire text of the measure is not printed on the ballot, nor in the voter information
portion of the sample ballot, there shall be printed immediately below the impartial analysis, in
no less than 10-font bold type, the following: “The above statement is an impartial analysis of an
ordinance or measure. If you desire a copy of the Ordinance or Measure, please call the Office of
the City Clerk and a copy will be mailed at no cost to you.”
SECTION 6. Rebuttals.
A. Pursuant to Section 9285 of the Elections Code of the State of California, when
the Clerk has selected the arguments for and against the Measure which will be printed and
distributed to the voters, the Clerk shall send copies of the argument in favor of the Measure to
the authors of the argument against, and copies of the argument against to the authors of the
argument in favor. The authors or persons designated by them may prepare and submit rebuttal
arguments not exceeding 250 words. The rebuttal arguments shall be filed with the City Clerk
not later than Monday, August 27, 2018 at or before 5:00 p.m. at the Office of the City Clerk,
215 N. "D" Street, 3rd Floor, San Bernardino, California. Rebuttal arguments shall be printed in
the same manner as the direct arguments. Each rebuttal argument shall immediately follow the
direct argument which it seeks to rebut.
B. That all previous resolutions providing for the filing of rebuttal arguments for City
measures are repealed.
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C. That the provisions herein shall apply only to the election to be held on November
6, 2018, and shall then be repealed.
SECTION 7. Placement on the Ballot. The full text of the Ballot Ordinance shall be
printed in the voter pamphlet, and a statement shall be printed in the ballot pursuant to Section
9223 of the Elections Code advising voters that they may obtain a copy of this Resolution, the
Ordinance and/or Measure, at no cost, upon request made to the City Clerk.
SECTION 8. Delivery of Resolution to County. The City Clerk shall certify to the
passage and adoption of this Resolution. The Mayor and City Council direct the City Clerk to
deliver copies of this Resolution, including the Ordinance attached hereto as Exhibit “A”, to the
Clerk of the Board of Supervisors of San Bernardino County and to the Registrar of Voters of
San Bernardino County.
SECTION 9. CEQA. The Mayor and City Council of the City of San Bernardino,
California, hereby find and determine that this Resolution 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 being submitted to the voters requires the discretionary review of permits to
include any applicable environmental review pursuant to Division 13 (commencing with Section
21000) of the Public Resources Code.
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SECTION 10. Severability. If any provision of this Resolution or the application thereof
to any person or circumstance is held invalid, such invalidity shall not affect other provisions or
applications of the Resolution which can be given effect without the invalid provision or
application, and to this end the provisions of this Resolution are severable. The City Council
hereby declares that it would have adopted this Resolution irrespective of the invalidity of any
particular portion thereof.
SECTION 11. Effective Date of Resolution. This Resolution shall take effect
immediately upon its adoption.
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, CALLING A GENERAL MUNICIPAL ELECTION TO
BE HELD IN THE CITY OF SAN BERNARDINO ON NOVEMBER 6, 2018 FOR THE
PURPOSE OF SUBMITTING TO THE VOTERS AN ORDINANCE REGULATING
COMERCIAL CANNABIS ACTIVITIES; REQUESTING THAT THE SAN
BERNARDINO COUNTY BOARD OF SUPERVISORS CONSOLIDATE SAID
ELECTION WITH THE STATEWIDE GENERAL ELECTION TO BE CONDUCTED
ON THE SAME DATE AND TO PERMIT THE REGISTRAR OF VOTERS TO
PROVIDE ELECTION SERVICES; AND SETTING RULES FOR ARGUMENTS AND
REBUTTALS FOR AND AGAINST SAID MEASURE
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.
Approved as to form:
Gary D. Saenz, City Attorney
R. Carey Davis, Mayor
City of San Bernardino
By: _________________________
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ORDINANCE NO. MC-1499
AN ORDINANCE OF THE PEOPLE OF THE CITY OF SAN BERNARDINO,
CALIFORNIA, REENACTING AND AMENDING CHAPTER 5.10 OF THE SAN
BERNARDINO MUNICIPAL CODE RELATED TO REGULATION OF
COMMERCIAL CANNABIS ACTIVITIES
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
Deleted: MC-1464
Deleted: __________
Formatted: Title, Space Before: 6 pt
Deleted: MAYOR AND CITY COUNCIL
Formatted: All caps
Deleted: ADOPTING
Deleted: (DEVELOPMENT CODE
AMENDMENT NO. 18-02A)
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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
Judgement 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, on December 20, 2017, the Mayor and City Council, anticipating
Measure O being invalidated, and seeking to protect the City’s authority to regulate
commercial medical and recreational cannabis activities, adopted Ordinance No. MC-1452,
establishing a moratorium prohibiting all land use entitlements, building permits, business
Deleted: Statement of Decision
Deleted: ¶
WHEREAS, the City will submit a proposed
judgment finalizing the Court’s decision in the above
cases; and ¶
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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, on February 20, 2018, the Mayor and City Council introduced
Ordinance No. MC-1464 for first reading, which established a comprehensive regulatory
scheme for commercial cannabis activities; and,
WHEREAS, on March 7, 2018, the Mayor and City Council adopted Ordinance No.
MC-1464; 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
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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
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 people of the City of San Bernardino desire to promote a successful
business environment in the City for commercial cannabis businesses and their neighboring
non-cannabis businesses; and,
WHEREAS, the people of the City of San Bernardino desire to ensure workers for
commercial cannabis businesses are treated and paid fairly; and,
WHEREAS, the people of the City of San Bernardino 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,
Deleted: Mayor and City Council
Deleted: Mayor and City Council
Deleted: Mayor and City Council
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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
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 people of the City of San Bernardino have engaged with the elected
officials of the City Council through committees, workshops, and public hearings 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, 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.
Deleted: Mayor and City Council
Deleted: ,
Deleted: have attempted
Deleted: ¶
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,¶
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,
Formatted: Font: Bold
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NOW, THEREFORE, THE PEOPLE 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 Section 11 of Article II of the California Constitution, the Charter of the
City of San Bernardino, and State law, the people of the City of San Bernardino may exercise
the power to adopt ordinances by initiative.
SECTION 3. ADOPTION; REENACTMENT; AMENDMENT
This Ordinance amends and reenacts in its entirety Ordinance No. MC-1464, as
adopted by the Mayor and City Council on March 7, 2018. It is the intent of the people of the
City of San Bernardino that the amendments to Section 5.10.100 and 5.10.250 from the
original language of Ordinance No. MC-1464 be declaratory of existing law and a restatement
of the original terms. The language of those sections as originally adopted is unambiguous,
but, nonetheless, those sections resulted in controversy concerning the proper interpretation of
the statute soon after the ordinance’s adoption, and, therefore, the people of the City of San
Bernardino amend those sections with the intent and purpose of construing and clarifying the
prior language.
Chapter 10, entitled “Commercial Cannabis Activities”, of Title 5 “Business
Registration and Regulations” of the San Bernardino Municipal Code is approved and
reenacted 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
Deleted: ¶
¶
Formatted: Font: Bold
Deleted: MAYOR AND CITY COUNCIL
Formatted: Line spacing: single
Formatted: Indent: First line: 0.5"
Deleted: s
Deleted: 5 and 7
Deleted: X
Deleted: is
Deleted: authorized
Deleted: that protect the health, safety and welfare
of its residents and businesses
Deleted: The adoption of zoning regulations is a
permissible exercise of this authority. ¶
Deleted: OF ORDINANCE
Formatted: Line spacing: single
Deleted: and shall be added to the San Bernardino
Municipal Code
Deleted: ¶
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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
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
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“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 Section 11 of Article II of the California Constitution, the provisions of
MAUCRSA, any subsequent State legislation and/or regulations regarding same, and the City
Charter of the City of San Bernardino, the people of the City of San Bernardino may exercise
the power to adopt ordinances that establish standards, requirements and regulations for the
licensing and permitting of commercial medicinal and adult-use cannabis 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
Deleted: ¶
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Deleted: is authorized
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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
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.
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(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.
(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.
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(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.
(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.
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(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.
(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.
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(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
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.
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(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
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
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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;
(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
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(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, unless the Mayor and City Council adopt an ordinance
allowing for a greater number of total permits.
(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.
(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 to each business type. The Mayor and City Council, in its discretion, may determine
by Resolution that the number of each type 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
Deleted: .
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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
(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) No person may hold a commercial cannabis business permit, or be employed by a
commercial cannabis business, in the City of San Bernardino, if any of the following
conditions exist:
(1) The applicant, permittee, or employee has been denied a commercial cannabis
business permit, or similar license, or has had such a permit or license
suspended or revoked by any city, county, city and county or any state
cannabis licensing authority;
(2) The applicant, permittee, employee, or the owner of the property upon which
the proposed commercial cannabis activity is to occur, was either convicted of,
Deleted: A
Deleted: ny
Deleted: for which any of the following actions or
notices have been issued in non-compliance shall be
prohibited from
Deleted: ing
Deleted: cannabis
Deleted: ing
Deleted: .
Deleted: license
Deleted: a license
Deleted: or
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pled guilty or nolo contendere to, or has been found by the City’s Hearing
Officer pursuant to Chapters 9.92 or 9.93 to be responsible for, conducting
commercial cannabis activity in non-compliance with Title 19, other City of
San Bernardino ordinances, codes and requirements, or state law, and they
failed to discontinue operating in a timely manner; or
(3) The applicant, permittee, or employee, or the owner of the property upon
which the proposed commercial cannabis activity is to occur, was found by the
appropriate taxing agency to have been in non-compliance with federal, state
or local tax laws or failed to report income from commercial cannabis activities
to federal, state, or local government in violation of law.
5.10.110 Expiration of Commercial Cannabis Business Permits
Each commercial cannabis business permit issued pursuant to this Chapter shall expire 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.
(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.
Deleted: w
Deleted: of
Deleted: or
Deleted: in which
Deleted: Evidence that t
Deleted: was
Deleted: of properly paying
Deleted: es and/or fees when notified by the
appropriate agencies;
Deleted: ¶
(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. ¶
Formatted: Indent: Left: 0.5", Hanging: 0.5"
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(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
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.
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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
(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.
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(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 applicant(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 twelve (12) months, and shall expire at the end of the 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
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
Deleted: n
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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.
(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.
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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
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 19 of 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
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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), unless the Mayor and City
Council adopt an ordinance allowing for a lesser distance. 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;
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.
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(4) For the purposes of this subsection (b), the distance measurement shall be
without regard to intervening structures, with the exception of the following, in
which case the distance measurement shall be the shortest path of travel around
the listed intervening structures:
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
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
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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
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.
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(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,
(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
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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
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.
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(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
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.
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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.
(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
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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.
(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 ).
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(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
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.
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(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 S an 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.
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.
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(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.
(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.
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(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
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.
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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:
(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.
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(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
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.
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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.
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.
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(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
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).
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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
All previous ordinances related to the establishment and operation of commercial cannabis
activities within the City of San Bernardino, including, without limitation, and to the extent
that such ordinances may be in force before or at the time this Ordinance takes effect, the San
Bernardino Regulate Marijuana Act of 2016, commonly known as Measure O, which
appeared on the ballot in the City of San Bernardino at a Special Municipal Election held on
November 8, 2016, and the San Bernardino Medical Cannabis Restrictions and Limitations
Act, commonly known as Measure N, which appeared on the ballot in the City of San
Bernardino at a Special Municipal Election held on November 8, 2016, are hereby repealed
and shall be of no further effect from the effective date of this Ordinance.
SECTION 5. ADDITIONAL FINDINGS
5.1 GENERAL PLAN
The Ordinance is consistent with the General Plan. The people of the City of San Bernardino
find that 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:
Deleted: REPEA
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AMENDMENT FINDINGS
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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 people of the City of San Bernardino 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 may reject any application if 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 may reject any application that it determines
rejection would be in the best interests of the City, taking into account any
Deleted: Mayor and City Council
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Deleted: that
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health, safety and welfare impacts on the 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 people 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
Deleted: Mayor and City Council
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requires the discretionary review of permits to include any applicable environmental review
pursuant to Division 13 (commencing with Section 21000) of the Public Resources Code.
SECTION 7. MAJORITY VOTE REQUIRED; EFFECTIVE DATE; AMENDMENTS
If a majority of the voters voting on this Ordinance vote in its favor, then this Ordinance shall
become a valid and binding ordinance of the City of San Bernardino. The Ordinance shall be
considered as adopted upon the date that the vote is declared by the Mayor and City Council,
and shall go into effect 10 days after that date. The Ordinance may only be repealed or
amended by a vote of the people, except as stated in the Ordinance.
SECTION 8. SEVERABILITY
While it is the intent of people of the City of San Bernardino 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 people of the City of San Bernardino declare
that they would have adopted this Ordinance irrespective of the invalidity of any particular
portion thereof.
Further, the people of the City of San Bernardino declare that if this Ordinance is held invalid
in its entirety, that such invalidity shall not revive any other ordinance, including, without
limitation, and to the extent that such ordinances may be in force before or at the time this
Ordinance takes effect, the San Bernardino Regulate Marijuana Act of 2016, commonly
known as Measure O, which appeared on the ballot in the City of San Bernardino at a Special
Municipal Election held on November 8, 2016, and the San Bernardino Medical Cannabis
Restrictions and Limitations Act, commonly known as Measure N, which appeared on the
ballot in the City of San Bernardino at a Special Municipal Election held on November 8,
2016.
SECTION 9. COMPETING MEASURES
In the event that this measure and another measure or measures relating to the regulation of
commercial cannabis activities in the City of San Bernardino appear on the same ballot, the
provisions of the other measure or measures shall be deemed to be in conflict with this
measure. Should there be a measure or measures in conflict with this measure, the measure
receiving the greater number of affirmative votes required to pass shall prevail in its entirety
over the conflicting measure or measures, and the conflicting measure or measures shall be
null and void.
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Deleted: 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.
Deleted: ¶
Deleted: the Mayor and City Council
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ORDINANCE NO. MC-1464__________
AN ORDINANCE OF THE MAYOR AND CITY COUNCILPEOPLE OF THE CITY
OF SAN BERNARDINO, CALIFORNIA, REENACTING AND AMENDING
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,
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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”), 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 DecisionJudgement 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,
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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
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, on February 20, 2018, the Mayor and City Council introduced
Ordinance No. MC-1464 for first reading, which established a comprehensive regulatory
scheme for commercial cannabis activities; and,
WHEREAS, on March 7, 2018, the Mayor and City Council adopted Ordinance No.
MC-1464; and,
WHEREAS, commercial cannabis businesses that have operated unpermitted within
the City and elsewhere have caused significant public safety problems, including but not
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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
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 Councilpeople of the City of San Bernardino 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 Councilpeople of the City of San Bernardino desire
to ensure workers for commercial cannabis businesses are treated and paid fairly; and,
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WHEREAS, the Mayor and City Councilpeople of the City of San Bernardino 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
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 Councilpeople of the City of San Bernardino have
engaged with the elected officials of the 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,
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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,
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
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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 COUNCILPEOPLE 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 711 of Article XII of the California Constitution, the
Charter of the City of San Bernardino, and State law, the people of the City of San Bernardino
is may exercise the powerauthorized to adopt ordinances that protect the health, safety and
welfare of its residents and businessesby initiative.
The adoption of zoning regulations is a permissible exercise of this authority.
SECTION 3. ADOPTION; REENACTMENT; AMENDMENT OF
ORDINANCE
This Ordinance amends and reenacts in its entirety Ordinance No. MC-1464, as
adopted by the Mayor and City Council on March 7, 2018. It is the intent of the people of the
City of San Bernardino that the amendments to Section 5.10.100 and 5.10.250 from the
original language of Ordinance No. MC-1464 be declaratory of existing law and a restatement
of the original terms. The language of those sections as originally adopted is unambiguous,
but, nonetheless, those sections resulted in controversy concerning the proper interpretation of
the statute soon after the ordinance’s adoption, and, therefore, the people of the City of San
Bernardino amend those sections with the intent and purpose of construing and clarifying the
prior language.
Chapter 10, entitled “Commercial Cannabis Activities”, of Title 5 “Business
Registration and Regulations” of the San Bernardino Municipal Code is approved and
reenacted and shall be added to the San Bernardino Municipal Code as follows:
Chapter 5.10
COMMERCIAL CANNABIS ACTIVITIES
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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
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
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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 711 of Article XII of the California Constitution, the provisions of
MAUCRSA, any subsequent State legislation and/or regulations regarding same, and the City
Charter of the City of San Bernardino, the people of the City of San Bernardino may exercise
the power is authorized to adopt ordinances that establish standards, requirements and
regulations for the licensing and permitting of commercial medicinal and adult-use cannabis
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
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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
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,
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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.
(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
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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.
(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
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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.
(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,
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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
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
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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
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.
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(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;
(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;
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(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, unless the Mayor and City Council adopt an ordinance
allowing for a greater number of total permits..
(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.
(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 to each business type. The Mayor and City Council, in its discretion, may determine
by Resolution that the number of each type of commercial cannabis permits should be
reduced, stay the same, or be expanded.
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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
(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
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(a) ANony person for which any of the following actions or notices have been issued in
non-compliance shall be prohibited frommay holding a cannabis commercial cannabis
business permit, or being employed by a commercial cannabis business, in the City of San
Bernardino, if any of the following conditions exist.:
(1) The applicant, permittee, or employee has been denied a commercial cannabis
business license permit, or similar license, or has had such a permit or licensea
license suspended or revoked by any city, county, city and county or any state
cannabis licensing authority;
(2) The applicant, permittee, or employee, or the owner of the property upon
which the proposed commercial cannabis activity is to occur, was either
convicted of, pled guilty or nolo contendere to, or whas been found by the
City’s Hearing Officer pursuant to Chapters 9.92 or 9.93 to be responsible for,
of conducting commercial cannabis activity in non-compliance with Title 19,
or other City of San Bernardino ordinances, codes and requirements, or state
law, in which and they failed to discontinue operating in a timely manner; or
(3) Evidence that tThe applicant, permittee, or employee, or the owner of the
property upon which the proposed commercial cannabis activity is to occur,
was found by the appropriate taxing agency to have been was in non-
compliance of properly payingwith federal, state or local tax laws or failed to
report income from commercial cannabis activities to federal, state, or local
government in violation of lawes 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 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
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(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.
(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
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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
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.
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(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
(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 twelve (12) months, and shall expire at the end of the 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
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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
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
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the transfer process contained in subsection (a). Failure to comply with this provision is
grounds for permit revocation.
(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
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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
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 19 of 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), unless the Mayor and City
Council adopt an ordinance allowing for a lesser distance. 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:
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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;
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, in
which case the distance measurement shall be the shortest path of travel around
the listed intervening structures:
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
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(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
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
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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
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.
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(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,
(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
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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
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
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(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
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.
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(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.
(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,
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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.
(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
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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
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
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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.
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.
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(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.
(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.
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(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
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.
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(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:
(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
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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
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
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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.
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
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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
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. REPEAREPEALL OF ORDINANCES
All previous Oordinances related to the establishment and operation of commercial cannabis
activities activities within the City of San Bernardino, including, without limitation, and to the
extent that such ordinances may be in force before or at the time this Ordinance takes effect,
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the San Bernardino Regulate Marijuana Act of 2016, commonly known as Measure O, which
appeared on the ballot in the City of San Bernardino at a Special Municipal Election held on
November 8, 2016, and the San Bernardino Medical Cannabis Restrictions and Limitations
Act, commonly known as Measure N, which appeared on the ballot in the City of San
Bernardino at a Special Municipal Election held on November 8, 2016, are are hereby
repealed and shall be of no further effect from the effective date of this Ordinance.
.
SECTION 5. DEVELOPMENT CODE AMENDMENT FINDINGSADDITIONAL
FINDINGS
5.1 GENERAL PLAN
The Ordinance is consistent with the General Plan. The people of the City of San Bernardino
find that 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:
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
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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 Councilpeople of the City of San
Bernardino 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
tomay reject any application that if 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 tomay 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. 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
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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 Councilpeople 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
environmental review pursuant to Division 13 (commencing with Section 21000) of the
Public Resources Code.
SECTION 7. MAJORITY VOTE REQUIRED; EFFECTIVE DATE; AMENDMENTS
If a majority of the voters voting on this Ordinance vote in its favor, then this Ordinance shall
become a valid and binding ordinance of the City of San Bernardino. The Ordinance shall be
considered as adopted upon the date that the vote is declared by the Mayor and City Council,
and shall go into effect 10 days after that date. The Ordinance may onl y be repealed or
amended by a vote of the people, except as stated in the Ordinance.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 Councilpeople of the City of San Bernardino 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
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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 Councilpeople of the City of San Bernardino declare that they would have adopted this
Ordinance irrespective of the invalidity of any particular portion thereof.
Further, the people of the City of San Bernardino declare that if this Ordinance is held invalid
in its entirety, that such invalidity shall not revive any other ordinance, including, without
limitation, and to the extent that such ordinances may be in force before or at the time this
Ordinance takes effect, the San Bernardino Regulate Marijuana Act of 2016, commonly
known as Measure O, which appeared on the ballot in the City of San Bernardino at a Special
Municipal Election held on November 8, 2016, and the San Bernardino Medical Cannabis
Restrictions and Limitations Act, commonly known as Measure N, which appeared on the
ballot in the City of San Bernardino at a Special Municipal Election held on November 8,
2016.
SECTION 9. COMPETING MEASURES
In the event that this measure and another measure or measures relating to the regulation of
commercial cannabis activities in the City of San Bernardino appear on the same ballot, the
provisions of the other measure or measures shall be deemed to be in conflict with this
measure. Should there be a measure or measures in conflict with this measure, the measure
receiving the greater number of affirmative votes required to pass shall prevail in its entirety
over the conflicting measure or measures, and the conflicting measure or measures shall be
null and void.
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RESOLUTION NO. 2018-228
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, CALLING A GENERAL MUNICIPAL ELECTION TO
BE HELD IN THE CITY OF SAN BERNARDINO ON NOVEMBER 6, 2018 FOR THE
PURPOSE OF SUBMITTING TO THE VOTERS A GENERAL TAX MEASURE, TO
ESTABLISH A CANNABIS BUSINESS TAX; REQUESTING THAT THE SAN
BERNARDINO COUNTY BOARD OF SUPERVISORS CONSOLIDATE SAID
ELECTION WITH THE STATEWIDE GENERAL ELECTION TO BE CONDUCTED
ON THE SAME DATE AND TO PERMIT THE REGISTRAR OF VOTERS TO
PROVIDE ELECTION SERVICES; AND SETTING RULES FOR ARGUMENTS AND
REBUTTALS FOR AND AGAINST SAID MEASURE
WHEREAS, the Mayor and City Council have identified seven goals and objectives for
the City of San Bernardino, including providing for the safety of City residents and businesses,
creating, maintaining, and growing jobs and economic value in the City, ensuring development of
a well-planned, balanced and sustainable City, improving City government operations, and
operating in a fiscally responsible and business-like manner; and
WHEREAS, voter-approved funding will help to address City service needs that San
Bernardino residents have indicated are important, including fixing potholes and repairing
neighborhood and city streets, roads, and sidewalks and providing adequate police services; and
WHEREAS, the City of San Bernardino currently has more than $107 million dollars in
deferred street maintenance and over $182 million in deferred facilities maintenance, and
additional local funds could help ensure that the City can address critical maintenance needs now
before costing taxpayers millions more in the future; and
WHEREAS, on November 6, 1996, the voters of the State of California approved
Proposition 218 (California Constitution, Article XIIIC), an amendment to the State Constitution
which requires that all general taxes which are imposed, extended, or increased must be approved
by a majority vote of the voters; and
WHEREAS, the Mayor and City Council of the City of San Bernardino (“City”) are
authorized to levy a Cannabis Business Tax (“CBT”) for general purposes pursuant to the Charter
of the City of San Bernardino and Sections 37101 and 37100.5 of the Government Code, subject
to approval by a majority vote of the electorate; and
WHEREAS, the CBT is a general tax, the revenue of which is to be placed in the City’s
general fund and used to pay for important general City services; and
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WHEREAS, pursuant to Section 9222 of the California Elections Code, the Mayor and
City Council have authority to place propositions on the ballot to be considered at a Municipal
Election; and
WHEREAS, the City Council would like to submit to the voters a measure establishing a
permanent CBT; and
WHEREAS, pursuant to Proposition 218, any general tax measure submitted to the
voters must be consolidated with a regularly scheduled election for members of the Mayor and
City Council, unless the Mayor and City Council places it on a special election, by a unanimous
vote, and upon finding that there exists an emergency requiring an election to be conducted
earlier than the next regularly scheduled election at which Mayor and City Council members are
to be elected; and
WHEREAS, pursuant to the Charter of the City of San Bernardino, §800, the City’s
General Election is held on the same day as the State General Elections, which is the first
Tuesday after the first Monday in November of each even-numbered year. Therefore, the next
regularly scheduled General Municipal Election for the election of members of the Mayor and
City Council will be held on Tuesday, November 6, 2018; and
WHEREAS, the Mayor and City Council also desires to consolidate the election for the
ballot measure described herein with the Statewide General Election to be held on November 6,
2018; and
WHEREAS, pursuant to California Elections Code, the Mayor and City Council further
desire to establish rules and regulations for the preparation, submittal and printing of arguments
and rebuttals for and against the Measure described herein; and
WHEREAS, the specific terms relating to the CBT tax are provided for in the ordinance
to be considered by the qualified voters, attached hereto as Exhibit “A” (the “Ordinance”) and by
this reference made an operative part hereof, and in accordance with all applicable laws.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. Recitals. The Mayor and City Council hereby find and determine that the
foregoing recitals are true and correct, are incorporated herein and by this reference made an
operative part hereof.
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SECTION 2. Submission of Ballot Measure. Pursuant to the Charter of the City of San
Bernardino §§300, 304, Section 9222 of the Elections Code, and any other applicable
requirements of the laws of the State of California relating to charter cities, the Mayor and City
Council, by a simple majority vote, hereby call and order to be held in the City of San Bernardino
on Tuesday, November 6, 2018, an election for the purpose of submitting the Ordinance attached
hereto as Exhibit “A” and incorporated herein by this reference to the qualified electors of the
City (the “Measure”) with said election to be held on the same day as the City’s general
municipal election and consolidated with the Statewide General Election on Tuesday, November
6, 2018.
SECTION 3. Ballot Measure. The Mayor and City Council, pursuant to their right and
authority, do hereby order that the Measure shall be presented and printed upon the ballot
submitted to the qualified voters in the manner and form set forth in this Section 3. On the ballot
to be submitted to the qualified voters at the election to be held at the City’s general municipal
election to be consolidated with the Statewide General Election on Tuesday, November 6, 2018,
in addition to any other matters required by law, there shall be printed substantially the
following:
“Shall an ordinance imposing a Cannabis Business
Tax of up to $10.00 per square foot for cultivators and
up to 6% of gross receipts on other businesses
operating in the City of San Bernardino, estimated to
initially raise between $810,000 to $2,475,000
annually, with funds staying local for unrestricted
general revenue purposes, including but not limited to,
police services, street repairs, parks and library
services be adopted?”
YES
NO
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SECTION 4. Election Procedures.
A. The Mayor and City Council consent to the consolidation of the election on this
Measure with all other elections being held in the same territory on November 6, 2018, and to
hold and conduct the consolidated election in the manner prescribed in Elections Code Section
10400, et seq.
B. The ballots to be used at the election shall be in the form and content as required
by law.
C. In accordance with Section 10002 of the Elections Code, the Board of Supervisors
of San Bernardino County is hereby requested to consent to the consolidation of this election
with the Statewide General Election on the same date and have the Registrar of Voters render
such election services to the City of San Bernardino as may be requested by the City Clerk of
said City. The County of San Bernardino will be reimbursed in full for such services as are
performed.
D. The election services which the City of San Bernardino requests the Registrar of
Voters, or such other official as may be appropriate, to perform and which such officer is hereby
authorized and directed to perform, if said Board of Supervisors consents, include: the
preparation, printing and mailing of sample ballots and polling place cards; the establishment or
appointment of precincts, polling places, and election officers, and making such publications as
are required by law in connection therewith; the furnishing of ballots, voting booths and other
necessary supplies or materials for polling places; the canvassing of the returns of the election
and the furnishing of the results of such canvassing to the City Clerk of the City of San
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Bernardino; and the performance of such other election services as may be requested by the City
Clerk.
E. In all particulars not recited in this Resolution, the election shall be held and
conducted as provided by law for holding municipal elections in the City.
F. Notice of the time and place of holding the election is given and the City Clerk is
authorized, instructed and directed to give further or additional notice of the election, in time,
form, and manner as required by law.
G. All ballots shall be tallied at a central counting place and not at the precincts. Said
central counting place shall be at a County center as designated by the Registrar of Voters.
H. The San Bernardino County Registrar of Voters is hereby authorized to canvass
the returns of said election.
I. The City Clerk of the City of San Bernardino shall receive the canvass as it
pertains to the election on the measure, and shall certify the results to the Mayor and City
Council, as required by law.
SECTION 5. Primary Arguments and Impartial Analysis.
A. Primary Arguments. The Mayor and City Council authorize (i) the Mayor and/or
any member(s) of the City Council, (ii) any individual voter eligible to vote on the above
measure, (iii) a bona fide association of such citizens or (iv) any combination of voters and
associations, to file a written argument in favor of or against the Measure, accompanied by the
printed name(s) and signature(s) of the author(s) submitting it, in accordance with Article 4,
Chapter 3, Division 9 of the Elections Code of the State of California, and to change the
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argument until and including the date fixed by the City Clerk, after which no arguments for or
against the City measure may be submitted to the City Clerk.
B. The deadline to submit arguments for or against the Measure pursuant to this
Resolution is declared by the City Clerk to be Wednesday, August 23, 2018 at or before 5:00
p.m. at the Office of the City Clerk, 215 N. "D" Street, 3rd Floor, San Bernardino, California.
Each argument shall not exceed 300 words and shall be filed with the City Clerk, signed, and
include the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on
behalf of an organization, the name of the organization, and the printed name and signature of at
least one of its principal officers who is the author of the argument.
C. Pursuant to Section 9280 of the Elections Code, the City Council directs the City
Clerk to transmit a copy of the measure to the City Attorney. The City Attorney shall prepare an
impartial analysis of the measure, not to exceed 500 words in length, showing the effect of the
measure on the existing law and the operation of the measure. The City Attorney shall transmit
such impartial analysis to the City Clerk, who shall cause the analysis to be published in the
ballot pamphlet along with the ballot measure as provided by law. The Impartial Analysis shall
be filed by Thursday, August 16, 2018 at or before 5:00 p.m. at the Office of the City Clerk, 215
N. "D" Street, 3rd Floor, San Bernardino, California. The impartial analysis shall include a
statement indicating that the measure was placed on the ballot by the Mayor and City Council. In
the event the entire text of the measure is not printed on the ballot, nor in the voter information
portion of the sample ballot, there shall be printed immediately below the impartial analysis, in
no less than 10-font bold type, the following: “The above statement is an impartial analysis of an
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ordinance or measure. If you desire a copy of the Ordinance or Measure, please call the Office of
the City Clerk and a copy will be mailed at no cost to you.”
SECTION 6. Rebuttals.
A. Pursuant to Section 9285 of the Elections Code of the State of California, when
the Clerk has selected the arguments for and against the Measure which will be printed and
distributed to the voters, the Clerk shall send copies of the argument in favor of the Measure to
the authors of the argument against, and copies of the argument against to the authors of the
argument in favor. The authors or persons designated by them may prepare and submit rebuttal
arguments not exceeding 250 words. The rebuttal arguments shall be filed with the City Clerk
not later than Monday, August 27, 2018 at or before 5:00 p.m. at the Office of the City Clerk,
215 N. "D" Street, 3rd Floor, San Bernardino, California. Rebuttal arguments shall be printed in
the same manner as the direct arguments. Each rebuttal argument shall immediately follow the
direct argument which it seeks to rebut.
B. That all previous resolutions providing for the filing of rebuttal arguments for City
measures are repealed.
C. That the provisions herein shall apply only to the election to be held on November
6, 2018, and shall then be repealed.
SECTION 7. Placement on the Ballot. The full text of the Ballot Ordinance shall be
printed in the voter pamphlet, and a statement shall be printed in the ballot pursuant to Section
9223 of the Elections Code advising voters that they may obtain a copy of this Resolution, the
Ordinance and/or Measure, at no cost, upon request made to the City Clerk.
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SECTION 8. Delivery of Resolution to County. The City Clerk shall certify to the
passage and adoption of this Resolution. The Mayor and City Council direct the City Clerk to
deliver copies of this Resolution, including the Ordinance attached hereto as Exhibit “A”, to the
Clerk of the Board of Supervisors of San Bernardino County and to the Registrar of Voters of
San Bernardino County.
SECTION 9. CEQA. The Mayor and City Council finds the adoption of this Resolution
is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections
15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical
change in the environment), 15060(c)(3) (the activity is not a project as defined in Section 15378
because the activity relates to organizational or administrative activities of governments that will
not result in direct or indirect physical changes in the environment under Section 15378(b)(5)),
and 15061(b)(3) (the activity will not have an effect on the environment) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because this resolution has no
potential for resulting in physical change to the environment, directly or indirectly.
SECTION 10. Severability. If any provision of this Resolution or the application thereof
to any person or circumstance is held invalid, such invalidity shall not affect other provisions or
applications of the Resolution which can be given effect without the invalid provision or
application, and to this end the provisions of this Resolution are severable. The City Council
hereby declares that it would have adopted this Resolution irrespective of the invalidity of any
particular portion thereof.
SECTION 11. Effective Date of Resolution. This Resolution shall take effect
immediately upon its adoption.
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, CALLING A GENERAL MUNICIPAL ELECTION TO
BE HELD IN THE CITY OF SAN BERNARDINO ON NOVEMBER 6, 2018 FOR THE
PURPOSE OF SUBMITTING TO THE VOTERS A GENERAL TAX MEASURE, TO
ESTABLISH A CANNABIS BUSINESS TAX; REQUESTING THAT THE SAN
BERNARDINO COUNTY BOARD OF SUPERVISORS CONSOLIDATE SAID
ELECTION WITH THE STATEWIDE GENERAL ELECTION TO BE CONDUCTED
ON THE SAME DATE AND TO PERMIT THE REGISTRAR OF VOTERS TO
PROVIDE ELECTION SERVICES; AND SETTING RULES FOR ARGUMENTS AND
REBUTTALS FOR AND AGAINST SAID MEASURE
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.
Approved as to form:
Gary D. Saenz, City Attorney
R. Carey Davis, Mayor
City of San Bernardino
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By: _________________________
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ORDINANCE NO. MC-1501
AN ORDINANCE OF THE PEOPLE OF THE CITY OF SAN BERNARDINO,
CALIFORNIA, CITY OF SAN BERNARDINO, CALIFORNIA ADDING CHAPTER
5.18 (CANNABIS BUSINESS TAX) TO TITLE 5 OF THE SAN BERNARDINO
MUNICIPAL CODE
THE PEOPLE OF THE CITY OF SAN BERNARDINO DO ORDAIN AS
FOLLOWS:
SECTION 1. ADOPTION
Chapter 18, entitled “Cannabis Business Tax”, of Title 5 “Business Registration and
Regulations” of the San Bernardino Municipal Code is adopted as follows:
CHAPTER 5.18
CANNABIS BUSINESS TAX
Sections:
5.18.010 Title.
5.18.020 Authority and Purpose.
5.18.030 Intent.
5.18.040 Definitions.
5.18.050 Tax imposed.
5.18.060 Reporting and remittance of tax.
5.18.070 Payments and communications –timely remittance.
5.18.080 Payment – when taxes deemed delinquent.
5.18.090 Notice not required by City.
5.18.100 Penalties and interest.
5.18.110 Refunds and credits.
5.18.120 Refunds and procedures.
5.18.130 Personal cultivation not taxed.
5.18.140 Administration of the tax.
5.18.150 Appeal procedure.
5.18.160 Enforcement –action to collect.
5.18.170 Apportionment.
5.18.180 Constitutionality and legality.
5.18.190 Audit and examination of premises and records.
5.18.200 Other licenses, permits, taxes or charges.
5.18.210 Payment of tax does not authorize unlawful business.
5.18.220 Deficiency determinations.
5.18.230 Failure to report – nonpayment, fraud.
5.18.240 Tax assessment –notice requirements.
5.18.250 Tax assessment – hearing, application, and determination.
5.18.260 Relief from taxes-disaster relief.
5.18.270 Conviction for violation – taxes not waived.
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5.18.280 Violation deemed misdemeanor.
5.18.290 Severability.
5.18.300 Remedies cumulative.
5.18.310 Amendment or repeal.
5.18.010 Title.
This ordinance shall be known as the Cannabis Business Tax Ordinance.
5.18.020 Authority and Purpose.
The purpose of this Ordinance is to adopt a tax, for revenue purposes, pursuant to Sections
37101 and 37100.5 of the California Government Code, upon Cannabis Businesses that
engage in business in the City. The Cannabis Business Tax is levied based upon business
gross receipts and square footage of plant canopy. It is not a sales and use tax, a tax upon
income, or a tax upon real property.
The Cannabis Business Tax is a general tax enacted solely for general governmental purposes
of the City and not for specific purposes. All of the proceeds from the tax imposed by this
Chapter shall be placed in the City's general fund and be available for any legal municipal
purpose.
5.18.030 Intent.
The intent of this Ordinance is to levy a tax on all Cannabis Businesses that operate in the
City, regardless of whether such business would have been legal at the time this Ordinance
was adopted. Nothing in this Ordinance shall be interpreted to authorize or permit any
business activity that would not otherwise be legal or permissible under laws applicable to the
activity at the time the activity is undertaken.
5.18.040 Definitions.
The following words and phrases shall have the meanings set forth below when used in this
Chapter:
A. “Business” shall include all activities engaged in or caused to be engaged in
within the City, including any commercial or industrial enterprise, trade, profession,
occupation, vocation, calling, or livelihood, whether or not carried on for gain or profit, but
shall not include the services rendered by an employee to his or her employer.
B. “Cannabis” means all parts of the plant 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” also
means marijuana as defined by Section 11018 of the California Health and Safety Code and is
not limited to medical cannabis.
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C. “Cannabis product” means raw cannabis that has undergone a process whereby
the raw agricultural product has been transformed into a concentrate, an edible product, or a
topical product. “Cannabis product” also means marijuana products as defined by Section
11018.1 of the California Health and Safety Code and is not limited to medical cannabis
products.
D. “Canopy” means all areas occupied by any portion of a cannabis plant whether
contiguous or noncontiguous on any one site. When plants occupy multiple horizontal planes
(as when plants are placed on shelving above other plants) each plane shall be counted as a
separate canopy area.
E. “Cannabis business” means any business activity involving cannabis, including
but not limited to cultivating, transporting, distributing, manufacturing, compounding,
converting, processing, preparing, storing, packaging, delivering, testing, dispensing, retailing
and wholesaling of cannabis, of cannabis products or of ancillary products and accessories,
whether or not carried on for gain or profit.
F. “Cannabis business tax” or “business tax,” means the tax due pursuant to this
Chapter for engaging in cannabis business in the City.
G. “Commercial cannabis cultivation” means cultivation in the course of
conducting a cannabis business.
H. “City permit” means a permit issued by the City to a person to authorize that
person to operate or engage in a cannabis business.
I. “Cultivation” means any activity involving the planting, growing, harvesting,
drying, curing, grading, or trimming of cannabis and includes, but is not limited to, the
operation of a nursery.
J. “Employee” means each and every person engaged in the operation or conduct
of any business, whether as owner, member of the owner's family, partner, associate, agent,
manager or solicitor, and each and every other person employed or working in such business
for a wage, salary, commission, barter or any other form of compensation.
K. “Engaged in business as a cannabis business” means the commencing,
conducting, operating, managing or carrying on of a cannabis business, whether done as
owner, or by means of an officer, agent, manager, employee, or otherwise, whether operating
from a fixed location in the City or coming into the City from an outside location to engage in
such activities. A person shall be deemed engaged in business within the City if:
1. Such person or person’s employee maintains a fixed place of business
within the City for the benefit or partial benefit of such person;
2. Such person or person’s employee owns or leases real property within
the City for business purposes;
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3. Such person or person’s employee regularly maintains a stock of
tangible personal property in the City for sale in the ordinary course of business;
4. Such person or person’s employee regularly conducts solicitation of
business within the City; or
5. Such person or person’s employee performs work or renders services in
the City.
The foregoing specified activities shall not be a limitation on the meaning of “engaged
in business.”
L. “Evidence of doing business” means evidence such as, without limitation, use
of signs, circulars, cards or any other advertising media, including the use of internet or
telephone solicitation, or representation to a government agency or to the public that such
person is engaged in a cannabis business in the City.
M. “Calendar year” means January 1 through December 31 of the following
calendar year.
N. “Gross Receipts,” except as otherwise specifically provided, means, whether
designated a sales price, royalty, rent, commission, dividend, or other designation, the total
amount (including all receipts, cash, credits, services and property of any kind or nature)
received or payable for sales of goods, wares or merchandise or for the performance of any act
or service of any nature for which a charge is made or credit allowed (whether such service,
act or employment is done as part of or in connection with the sale of goods, wares,
merchandise or not), without any deduction therefrom on account of the cost of the property
sold, the cost of materials used, labor or service costs, interest paid or payable, losses or any
other expense whatsoever. However, the following shall be excluded from the definition of
Gross Receipts:
1. Cash discounts where allowed and taken on sales;
2. Any tax required by law to be included in or added to the purchase
price and collected from the consumer or purchaser;
3. Such part of the sale price of any property returned by purchasers to the
seller as refunded by the seller by way of cash or credit allowances or return of
refundable deposits previously included in gross receipts;
4. Receipts derived from the occasional sale of used, obsolete or surplus
trade fixtures, machinery or other equipment used by the taxpayer in the regular course
of the taxpayer's business;
5. Cash value of sales, trades or transactions between departments or units
of the same business;
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6. Whenever there are included within the gross receipts amounts which
reflect sales for which credit is extended and such amount proved uncollectible in a
subsequent year, those amounts may be excluded from the gross receipts in the year
they prove to be uncollectible; provided, however, if the whole or portion of such
amounts excluded as uncollectible are subsequently collected they shall be included in
the amount of gross receipts for the period when they are recovered;
7. Receipts of refundable deposits, except that such deposits when
forfeited and taken into income of the business shall not be excluded when in excess of
one dollar;
8. Amounts collected for others where the business is acting as an agent or
trustee and to the extent that such amounts are paid to those for whom collected.
These agents or trustees must provide the City’s finance department with the names
and the addresses of the others and the amounts paid to them. This exclusion shall not
apply to any fees, percentages, or other payments retained by the agent or trustees.
9. Retail sales of t-shirts, sweaters, hats, stickers, key chains, bags, books,
posters, rolling papers, cannabis accessories such as pipes, pipe screens, vape pen batteries
(without cannabis) or other personal tangible property which the Tax Administrator has
excluded in writing by issuing an administrative ruling per Section 5.18.140 shall not be
subject to the cannabis business tax under this chapter. However, any business activities not
subject to this Chapter as a result of the administrative ruling shall be subject to the
appropriate business tax provisions of Chapter 5.04 or any other Chapter or Title as
determined by the Tax Administrator.
O. “Lighting” means a source of light that is primarily used for promoting the
biological process of plant growth. Lighting does not include sources of light that primarily
exist for the safety or convenience of staff or visitors to the facility, such as emergency
lighting, walkway lighting, or light admitted via small skylights, windows or ventilation
openings.
P. “Nursery” means a facility or part of a facility that is used only for producing
clones, immature plants, seeds, and other agricultural products used specifically for the
planting, propagation, and cultivation of cannabis.
Q. “Person” means an 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, whether organized as a nonprofit or for-profit
entity, and includes the plural as well as the singular number.
R. “Sale” means and includes any sale, exchange, or barter.
S. “State” means the State of California.
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T. “State license,” “license,” or “registration” means a state license issued
pursuant to California Business & Professions Code Sections 26050, et seq. or other
applicable state law.
U. “Tax Administrator” means the Finance Director of the City of San Bernardino
or his or her designee.
V. “Testing Laboratory” means a cannabis business that (i) offers or performs
tests of cannabis or cannabis products, (ii) offers no service other than such tests, (iii) sells no
products, excepting only testing supplies and materials, (iv) is accredited by an accrediting
body that is independent from all other persons involved in the cannabis industry in the state
and (v) is registered with the Bureau of Cannabis Control.
5.18.050 Tax imposed.
A. Beginning January 1, 2019, there is imposed upon each person who is engaged
in business as a cannabis business a cannabis business tax. Such tax is payable
regardless of whether the business has been issued a cannabis business license
or permit to operate lawfully in the City or is operating unlawfully. The City’s
acceptance of a cannabis business tax payment from a cannabis business
operating illegally will not constitute the City’s approval or consent to such
illegal operations.
B. The initial rate of the cannabis business tax shall be as follows:
1. For every person who is engaged in commercial cannabis cultivation in the
City:
a. Seven dollars ($7.00) annually per square foot of canopy space in a
facility that uses exclusively artificial lighting.
b. Four dollars ($4.00) annually per square foot of canopy space in a
facility that uses a combination of natural and supplemental artificial
lighting.
c. Two dollars ($2.00) annually per square foot of canopy space in a
facility that uses no artificial lighting.
d. One dollar ($1.00) annually per square foot of canopy space for any
nursery.
For purposes of this subdivision (B), the square feet of canopy space for a business
shall be rebuttably presumed to be the maximum square footage of canopy allowed by the
business’s City permit for commercial cannabis cultivation, or, in the absence of a City
permit, the square footage shall be the maximum square footage of canopy for commercial
cannabis cultivation allowed by the state license type. Should a City permit be issued to a
business which cultivates only for certain months of the year, the City shall prorate the tax as
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to sufficiently reflect the period in which cultivation is occurring at the business. In no case
shall canopy square footage which is authorized by the City commercial cannabis permit but
not utilized for cultivation be deducted for the purpose of determining the tax for cultivation,
unless the Tax Administrator is informed in writing and authorizes such reduction for the
purpose of relief from the tax prior to the period for which the space will not be used, that
such space will not be used.
2. For every person who engages in the operation of a testing laboratory: one
percent (1%) of gross receipts.
3. For every person who engages in the retail sales of cannabis as a retailer
(dispensary) or non-store front retailer (delivery) or microbusiness (retail
sales): four percent (4%) of gross receipts.
4. For every person who engages in a cannabis distribution business: two
percent (2%) of gross receipts.
5. For every person who engages in a cannabis manufacturing, processing, or
microbusiness (non-retail), or any other type of cannabis business not
described in Section (B) (1), (2), (3) or (4): two and half percent (2.5%) of
gross receipts. However, cultivation for a microbusiness shall be taxed at
the rate established in 5.18.050(B)(1)(a).
C. The City Council may, by resolution or ordinance, adjust the rate of the
cannabis business tax. However, in no event may the City Council set any
adjusted rate that exceeds the maximum rate calculated pursuant to Subdivision
(D) of this Section for the date on which the adjusted rate will commence.
D. The maximum rate shall be calculated as follows:
1. For every person who is engaged in commercial cannabis cultivation in the
City:
a. Through January 1, 2021, the maximum rate shall be:
i. Ten dollars ($10.00) annually per square foot of canopy space in
a facility that uses exclusively artificial lighting.
ii. Seven dollars ($7.00) annually per square foot of canopy space
in a facility that uses a combination of natural and supplemental
artificial lighting.
iii. Four dollars ($4.00) annually per square foot of canopy space in
a facility that uses no artificial lighting.
iv. Two dollars ($2.00) annually per square foot of canopy space
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for any nursery.
b. On January 1, 2022 and on each January 1 thereafter, the maximum
annual tax rate per square foot of each type of canopy space shall
increase by the percentage change between January of the calendar year
prior to such increase and January of the calendar year of the increase
in the Consumer Price Index (“CPI”) for all urban consumers in the
Riverside-San Bernardino-Ontario area as published by the United
States Government Bureau of Labor Statistics. However, no CPI
adjustment resulting in a decrease of any tax imposed by this subsection
shall be made.
2. For every person who engages in the operation of a testing laboratory, the
maximum tax rate shall not exceed two and a half percent (2.5%) of gross
receipts.
3. For every person who engages in the retail sales of cannabis as a retailer
(dispensary) or non-store front retailer (delivery business), or
microbusiness (retail sales activity) the maximum tax rate shall not exceed
six percent (6%) of gross receipts.
4. For every person who engages in a cannabis distribution business, the
maximum tax rate shall not exceed three percent (3%) of gross receipts.
5. For every person who engages in a cannabis manufacturing, processing, or
microbusiness (non-retail activity) or any other type of cannabis business
not described in Section (D) (1), (2), (3) or (4), the maximum tax rate shall
not exceed four percent (4%) of gross receipts. However, the maximum tax
rate for cultivation for a microbusiness shall be the rate established in
5.18.050(D)(1)(a)(i), as may be increased from time to time by the
provisions of 5.18.050(D)(1)(b).
5.18.060 Reporting and remittance of tax.
A. The cannabis business tax imposed by this Chapter shall be paid, in arrears, on
a quarterly basis. For commercial cannabis cultivation, the tax due for each
calendar quarter shall be based on the square footage of the business’s canopy
space during the quarter and the rate shall be twenty-five percent (25%) of the
applicable annual rate. For all other cannabis businesses activities, the tax due
for each calendar quarter shall be based on the gross receipts for the quarter.
B. Each person owing cannabis business tax for a calendar quarter shall, no later
than the last day of the month following the close of the calendar quarter, file
with the Tax Administrator a statement of the tax owed for that calendar
quarter and the basis for calculating that tax. The Tax Administrator may
require that the statement be submitted on a form prescribed by the Tax
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Administrator. The tax for each calendar quarter shall be due and payable on
that same date that the statement for the calendar quarter is due.
C. Upon cessation of a cannabis business, tax statements and payments shall be
immediately due for all calendar quarters up to the calendar quarter during
which cessation occurred.
D. The Tax Administrator may, at his or her discretion, establish shorter report
and payment periods for any taxpayer as the Tax Administrator deems
necessary to ensure collection of the tax. The Tax Administrator may also
require that a deposit, to be applied against the taxes for a calendar quarter, be
made by a taxpayer at the beginning of that calendar quarter. In no event shall
the deposit required by the Tax Administrator exceed the tax amount he or she
projects will be owed by the taxpayer for the calendar quarter. The Tax
Administrator may require that a taxpayer make payments via a cashier’s
check, money order, wire transfer, or similar instrument.
E. For purposes of this section, the square feet of canopy space for a business
shall be rebuttably presumed to be no less than the maximum square footage of
canopy allowed by the business’s City permit for commercial cannabis
cultivation, or, in the absence of a City permit, the square footage shall be the
maximum square footage of canopy for commercial cannabis cultivation
allowed by the state license type. In no case shall canopy square footage which
is authorized by the permit or license but not utilized for cultivation be
excluded from taxation unless the Tax Administrator is informed in writing,
prior to the period for which the space will not be used, that such space will not
be used.
5.18.070 Payments and communications – timely remittance.
Whenever any payment, statement, report, request or other communication is due, it
must be received by the Tax Administrator on or before the final due date. A postmark will
not be accepted as timely remittance. If the due date would fall on a Saturday, Sunday or a
holiday observed by the City, the due date shall be the next regular business day on which the
City is open to the public.
5.18.080 Payment - when taxes deemed delinquent.
Unless otherwise specifically provided under other provisions of this Chapter, the
taxes required to be paid pursuant to this Chapter shall be deemed delinquent if not received
by the Tax Administrator on or before the due date as specified in Sections 5.18.060 and
5.18.070.
5.18.090 Notice not required by the City.
The City may as a courtesy send a tax notice to the business. However, the Tax
Administrator is not required to send a delinquency or other notice or bill to any person
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subject to the provisions of this Chapter. Failure to send such notice or bill shall not affect the
validity of any tax or penalty due under the provisions of this Chapter.
5.18.100 Penalties and interest.
A. Any person who fails or refuses to pay any cannabis business tax required to be
paid pursuant to this Chapter on or before the due date shall pay penalties and interest as
follows:
1. A penalty equal to ten percent (10%) of the amount of the tax, in
addition to the amount of the tax, plus interest on the unpaid tax calculated from the
due date of the tax at the rate of one percent (1.0%) per month.
2. If the tax remains unpaid for a period exceeding one calendar month
beyond the due date, an additional penalty equal to twenty-five percent (25%) of the
amount of the tax, plus interest at the rate of one percent (1.0%) per month on the
unpaid tax and on the unpaid penalties.
3. Interest shall be applied at the rate of one percent (1.0%) per month on
the first day of the month for the full month and will continue to accrue monthly on the
tax and penalty until the balance is paid in full.
B. Whenever a check or electronic payment is submitted in payment of a cannabis
business tax and the payment is subsequently returned unpaid by the bank for any reason, the
taxpayer will be liable for the tax amount due plus any fees, penalties and interest as provided
for in this Section, and any other amount allowed under state law.
5.18.110 Refunds and credits.
A. No refund shall be made of any tax collected pursuant to this Chapter, except
as provided in Section 5.18.120.
B. No refund of any tax collected pursuant to this Chapter shall be made because
of the discontinuation, dissolution, or other termination of a business.
5.18.120 Refunds and procedures.
A. Whenever the amount of any cannabis business tax, penalty or interest has
been overpaid, paid more than once, or has been erroneously collected or received by the City
under this Chapter, it may be refunded to the claimant who paid the tax provided that a written
claim for refund is filed with the Tax Administrator within one (1) year of the date the tax was
originally due and payable.
B. The Tax Administrator, his or her designee or any other City officer charged
with the administration of this Chapter shall have the right to examine and audit all the books
and business records of the claimant in order to determine the eligibility of the claimant to the
claimed refund. No claim for refund shall be allowed if the claimant refuses to allow such
00060325.1 Page 10
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examination of claimant's books and business records after request by the Tax Administrator
to do so.
C. In the event that the cannabis business tax was erroneously paid, and the error
is attributable to the City, the City shall refund the amount of tax erroneously paid up to one
(1) year from the date that the tax was paid.
5.18.130 Personal Cultivation Not Taxed.
The provisions of this Chapter shall not apply to personal cannabis cultivation as
defined in the “Medicinal and Adult Use Cannabis Regulation and Safety Act.” This Chapter
shall not apply to personal use of cannabis that is specifically exempted from City and state
licensing requirements, that meets the definition of personal use or equivalent terminology
under state law, and for which the individual receives no compensation whatsoever related to
that personal use.
5.18.140 Administration of the tax.
A. It shall be the duty of the Tax Administrator to collect the taxes, penalties, fees,
and perform the duties required by this Chapter.
B. For purposes of administration and enforcement of this Chapter generally, the
Tax Administrator may from time to time promulgate such administrative interpretations,
rules, and procedures consistent with the purpose, intent, and express terms of this Chapter as
he or she deems necessary to implement or clarify such provisions or aid in enforcement.
C. The Tax Administrator may take such administrative actions as needed to
administer the tax, including but not limited to:
1. Provide to all cannabis business taxpayers forms for the reporting of the
tax;
2. Provide information to any taxpayer concerning the provisions of this
Chapter;
3. Receive and record all taxes remitted to the City as provided in this
Chapter;
4. Maintain records of taxpayer reports and taxes collected pursuant to
this Chapter;
5. Assess penalties and interest to taxpayers pursuant to this Chapter;
6. Determine amounts owed and enforce collection pursuant to this
Chapter.
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5.18.150 Appeal procedure.
Any taxpayer aggrieved by any decision of the Tax Administrator with respect to the
amount of tax, interest, penalties and fees, if any, due under this Chapter may appeal to the
City Council by filing a notice of appeal with the City Clerk within thirty (30) calendar days
of the serving or mailing of the determination of tax due. The City Clerk, or his or her
designee, shall fix a time and place for hearing such appeal, and the City Clerk, or his or her
designee, shall give notice in writing to such operator at the last known place of address. The
finding of the City Council shall be final and conclusive and shall be served upon the
appellant in the manner prescribed by this Chapter for service of notice of hearing. Any
amount found to be due shall be immediately due and payable upon the service of the notice.
5.18.160 Enforcement - action to collect.
Any taxes, penalties and/or fees required to be paid under the provisions of this
Chapter shall be deemed a debt owed to the City. Any person owing money to the City under
the provisions of this Chapter shall be liable in an action brought in the name of the City for
the recovery of such debt. The provisions of this Section shall not be deemed a limitation
upon the right of the City to bring any other action including criminal, civil and equitable
actions, based upon the failure to pay the tax, penalties and/or fees imposed by this Chapter or
the failure to comply with any of the provisions of this Chapter.
5.18.170 Apportionment.
If a business subject to the tax is operating both within and outside the City, it is the
intent of the City to apply the cannabis business tax so that the measure of the tax fairly
reflects the proportion of the taxed activity actually carried on in the City. To the extent
federal or state law requires that any tax due from any taxpayer be apportioned, the taxpayer
may indicate said apportionment on his or her tax return. The Tax Administrator may
promulgate administrative procedures for apportionment as he or she finds useful or
necessary.
5.18.180 Constitutionality and legality.
This tax is intended to be applied in a manner consistent with the United States and
California Constitutions and state law. None of the tax provided for by this Chapter shall be
applied in a manner that causes an undue burden upon interstate commerce, a violation of the
equal protection or due process clauses of the Constitutions of the United States or the State of
California or a violation of any other provision of the California Constitution or state law. If a
person believes that the tax, as applied to him or her, is impermissible under applicable law,
he or she may request that the Tax Administrator release him or her from the obligation to pay
the impermissible portion of the tax.
5.18.190 Audit and examination of premises and records.
A. For the purpose of ascertaining the amount of cannabis business tax owed or
verifying any representations made by any taxpayer to the City in support of his or her tax
00060325.1 Page 12
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calculation, the Tax Administrator shall have the power to inspect any location where
commercial cannabis cultivation occurs and to audit and examine all books and records
(including, but not limited to bookkeeping records, state and federal income tax returns, and
other records relating to the gross receipts of the business) of persons engaged in cannabis
businesses. In conducting such investigation, the Tax Administrator shall have the power to
inspect any equipment, such as computers or point of sale machines, that may contain such
records.
B. It shall be the duty of every person liable for the collection and payment to the
City of any tax imposed by this Chapter to keep and preserve, for a period of at least three (3)
years, all records as may be necessary to determine the amount of such tax as he or she may
have been liable for the collection of and payment to the City, which records the Tax
Administrator or his/her designee shall have the right to inspect at all reasonable times.
5.18.200 Other licenses, permits, taxes, fees or charges.
A. Nothing contained in this Chapter shall be deemed to repeal, amend, be in lieu of,
replace or in any way affect any requirements for any City permit, permit or
license required by, under or by virtue of any provision of any other Chapter of
this Code or any other ordinance or resolution of the City, nor be deemed to repeal,
amend, be in lieu of, replace or in any way affect any tax, fee or other charge
imposed, assessed or required by, under or by virtue of any other Chapter of this
Code or any other ordinance or resolution of the City. Any references made or
contained in any other Chapter of this Code to any licenses, license taxes, fees, or
charges, or to any schedule of license fees, shall be deemed to refer to the licenses,
license taxes, fees or charges, or schedule of license fees, provided for in the other
Chapter of this Code.
B. Notwithstanding subdivision A of this Section a cannabis business shall not be
required to pay the license fee required by Chapter 5.04 of Title 5 of this Code so
long as all of business’s activities within the City that would require payment of a
license fee are activities subject to the cannabis business tax.
C. The Tax Administrator may revoke or refuse to renew the license required by
Chapter 5.04 of this Code for any business that is delinquent in the payment of any
tax due pursuant to this Chapter or that fails to make a deposit required by the Tax
Administrator pursuant to Section 5.18.060.
5.18.210 Payment of tax does not authorize unlawful business.
A. The payment of a cannabis business tax required by this Chapter, and its
acceptance by the City, shall not entitle any person to carry on any cannabis business unless
the person has complied with all of the requirements of this Code and all other applicable state
laws.
00060325.1 Page 13
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B. No tax paid under the provisions of this Chapter shall be construed as
authorizing the conduct or continuance of any illegal or unlawful business, or any business in
violation of any local or state law.
5.18.220 Deficiency determinations.
If the Tax Administrator is not satisfied that any statement filed as required under the
provisions of this Chapter is correct, or that the amount of tax is correctly computed, he or she
may compute and determine the amount to be paid and make a deficiency determination upon
the basis of the facts contained in the statement or upon the basis of any information in his or
her possession or that may come into his or her possession within three (3) years of the date
the tax was originally due and payable. One or more deficiency determinations of the amount
of tax due for a period or periods may be made. When a person discontinues engaging in a
business, a deficiency determination may be made at any time within three (3) years thereafter
as to any liability arising from engaging in such business whether or not a deficiency
determination is issued prior to the date the tax would otherwise be due. Whenever a
deficiency determination is made, a notice shall be given to the person concerned in the same
manner as notices of assessment are given under Section 5.18.240.
5.18.230 Failure to report—nonpayment, fraud.
A. Under any of the following circumstances, the Tax Administrator may make
and give notice of an assessment of the amount of tax owed by a person under this Chapter at
any time:
1. If the person has not filed a complete statement required under the
provisions of this Chapter;
2. If the person has not paid the tax due under the provisions of this
Chapter;
3. If the person has not, after demand by the Tax Administrator, filed a
corrected statement, or furnished to the Tax Administrator adequate substantiation of
the information contained in a statement already filed, or paid any additional amount
of tax due under the provisions of this Chapter; or
4. If the Tax Administrator determines that the nonpayment of any
business tax due under this Chapter is due to fraud, a penalty of twenty-five percent
(25%) of the amount of the tax shall be added thereto in addition to penalties and
interest otherwise stated in this Chapter and any other penalties allowed by law.
B. The notice of assessment shall separately set forth the amount of any tax
known by the Tax Administrator to be due or estimated by the Tax Administrator, after
consideration of all information within the Tax Administrator's knowledge concerning the
business and activities of the person assessed, to be due under each applicable section of this
Chapter, and shall include the amount of any penalties or interest accrued on each amount to
the date of the notice of assessment.
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5.18.240 Tax assessment - notice requirements.
The notice of assessment shall be served upon the person either by personal delivery,
by overnight delivery by a nationally-recognized courier service, or by a deposit of the notice
in the United States mail, postage prepaid thereon, addressed to the person at the address of
the location of the business or to such other address as he or she shall register with the Tax
Administrator for the purpose of receiving notices provided under this Chapter; or, should the
person have no address registered with the Tax Administrator for such purpose, then to such
person's last known address. For the purposes of this Section, a service by overnight delivery
shall be deemed to have occurred one (1) calendar day following deposit with a courier and
service by mail shall be deemed to have occurred three (3) days following deposit in the
United States mail.
5.18.250 Tax assessment - hearing, application and determination.
Within thirty (30) calendar days after the date of service the person may apply in
writing to the Tax Administrator for a hearing on the assessment. If application for a hearing
before the City is not made within the time herein prescribed, the tax assessed by the Tax
Administrator shall become final and conclusive. Within thirty (30) calendar days of the
receipt of any such application for hearing, the Tax Administrator shall cause the matter to be
set for hearing before him or her no later than thirty (30) calendar days after the receipt of the
application, unless a later date is agreed to by the Tax Administrator and the person requesting
the hearing. Notice of such hearing shall be given by the Tax Administrator to the person
requesting such hearing not later than five (5) calendar days prior to such hearing. At such
hearing said applicant may appear and offer evidence why the assessment as made by the Tax
Administrator should not be confirmed and fixed as the tax due. After such hearing the Tax
Administrator shall determine and reassess the proper tax to be charged and shall give written
notice to the person in the manner prescribed in Section 5.18.240 for giving notice of
assessment.
5.18.260 Relief from taxes -disaster relief.
A. If a business is unable to comply with any tax requirement due to a disaster, the
business may notify the Tax Administrator of this inability to comply and request relief from
the tax requirement. A request for relief must clearly indicate why relief is requested, the time
period for which the relief is requested, and the reason relief is needed for the specific amount
of time.
B. To obtain relief, the cannabis business must agree to grant the Tax Administrator or
his/her designee access to the location where the cannabis business has been impacted due to a
disaster.
C. The Tax Administrator, in his/her sole discretion, may provide relief from the cannabis
business tax requirement for businesses whose operations have been impacted by a disaster of
such tax liability does not exceed five thousand ($5,000) dollars. If such tax liability is five
thousand one ($5,001) dollars or more than such relief shall only be approved by the City
Council.
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D. Temporary relief from the cannabis tax may be granted for a reasonable amount of
time as determined by the Tax Administrator or the City Council, as applicable in order to
allow the cannabis business time to recover from the disaster.
E. The Tax Administrator or City Council, as applicable, may require that certain
conditions be followed in order for a cannabis business to receive temporary relief from the
cannabis business tax requirement.
F. For purposes of this section, “disaster” means fire, flood, storm, tidal wave,
earthquake, or similar public calamity, whether or not resulting from natural causes.
5.18.270 Conviction for violation - taxes not waived.
The conviction and punishment of any person for failure to pay the required tax shall
not excuse or exempt such person from any civil action for the tax debt unpaid at the time of
such conviction. No civil action shall prevent a criminal prosecution for any violation of the
provisions of this Chapter or of any state law requiring the payment of all taxes.
5.18.280 Violation deemed misdemeanor.
Any person violating any of the provisions of this Chapter shall be guilty of a
misdemeanor.
5.18.290 Severability.
If any provision of this Chapter, or its application to any person or circumstance, is
determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise
void, that determination shall have no effect on any other provision of this Chapter or the
application of this Chapter to any other person or circumstance and, to that end, the provisions
hereof are severable.
5.18.300 Remedies cumulative.
All remedies and penalties prescribed by this Chapter or which are available under any
other provision of the San Bernardino Municipal Code and any other provision of law or
equity are cumulative. The use of one or more remedies by the City shall not bar the use of
any other remedy for the purpose of enforcing the provisions of this Chapter.
5.18.310 Amendment or repeal.
This Chapter may be repealed or amended by the City Council without a vote of the
people to the extent allowed by law. However, as required by Article XIII C of the California
Constitution, voter approval is required for any amendment that would increase the rate of any
tax levied pursuant to this Chapter. The people of the City of San Bernardino affirm that the
following actions shall not constitute an increase of the rate of a tax:
00060325.1 Page 16
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A. The restoration or adjustment of the rate of the tax to a rate that is no higher
than that set by this Chapter, if the City Council has acted to reduce the rate of the tax or
incrementally implement an increase authorized by this Chapter;
B. An action that interprets or clarifies the methodology of the tax, or any
definition applicable to the tax, so long as interpretation or clarification (even if contrary to
some prior interpretation or clarification) is not inconsistent with the language of this Chapter;
or
C. The collection of the tax imposed by this Chapter even if the City had, for
some period of time, failed to collect the tax.
SECTION 2. ENVIRONMENTAL DETERMINATION
The people of the City of San Bernardino find the adoption of this Ordinance is not subject to
the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the
activity will not result in a direct or reasonably foreseeable indirect physical change in the
environment), 15060(c)(3) (the activity is not a project as defined in Section 15378 because
the activity relates to organizational or administrative activities of governments that will not
result in direct or indirect physical changes in the environment under Section 15378(b)(5)),
and 15061(b)(3) (the activity will not have an effect on the environment) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because this resolution has no
potential for resulting in physical change to the environment, directly or indirectly.
SECTION 3. MAJORITY VOTE REQUIRED; EFFECTIVE DATE; AMENDMENTS
If a majority of the voters voting on this Ordinance vote in its favor, then this Ordinance shall
become a valid and binding ordinance of the City of San Bernardino. The Ordinance shall be
considered as adopted upon the date that the vote is declared by the Mayor and City Council,
and shall go into effect 10 days after that date. The Ordinance may only be repealed or
amended by a vote of the people, except as stated in the Ordinance.
SECTION 4. SEVERABILITY
While it is the intent of people of the City of San Bernardino to adopt a comprehensive tax on
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 people of the City of San Bernardino declare that they would
have adopted this Ordinance irrespective of the invalidity of any particular portion thereof.
SECTION 5. COMPETING MEASURES
In the event that this measure and another measure or measures relating to the taxation of
commercial cannabis activities in the City of San Bernardino appear on the same ballot, the
provisions of the other measure or measures shall be deemed to be in conflict with this
00060325.1 Page 17
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measure. Should there be a measure or measures in conflict with this measure, the measure
receiving the greater number of affirmative votes required to pass shall prevail in its entirety
over the conflicting measure or measures, and the conflicting measure or measures shall be
null and void.
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Packet Pg. 630 Attachment: CD.Cannabis.6.Tax.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis
Staff Report
City of San Bernardino
Request for Council Action
Date: August 1, 2018
To: Honorable Mayor and City Council Members
From: Fred Shorett, Council Member Fourth Ward
By: Renee Brizuela, Administrative Assistant to City Council
Subject: 2018 City County Conference Update – June 27-28, 2018
Recommendation
Receive an oral report from Council Member Shorett.
Background
On June 27-28, 2018, Council Member Shorett attended the 2018 City-County
Conference in Lake Arrowhead, CA.
Discussion
The Council Member will provide an oral report on the 2018 City-County Conference at
this evening’s meeting.
Mayor, City Council and City Manager Goals and Objectives
He attended the 2018 City-County Conference to gain knowledge for future policy
making decisions. It aligns with Goal Number 3 which is to Create, Maintain and Grow
Jobs and Economic Value in the City.
Fiscal Impact
Receipts amounting to $347.15 were submitted and paid from the 4th Ward Meetings and
Conferences budget (001-020-0023-5145) for travel expenses.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino receive
and file the oral report.
Attachments
Attachment 1 § 532323- Government Code on Reporting Trips
Attachment 2 AB 1234 Report on Meetings Attended
Attachment 3 2018 City-County Conference draft agenda
7/25/2018 5:23 PM
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Packet Pg. 631 Attachment: Council.2018 City-County Conference - June 27-28 2018 - Fred Shorett (5687 : 2018 City County Conference Update – June 27-28,
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Packet Pg. 632 Attachment: Council.CCC § 532323- Government Code on Reporting Trips(Attachment 1) (5687 : 2018 City County Conference Update – June
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Packet Pg. 633 Attachment: Council.CCC AB1234 Report on Meeting (Attachment 2) (5687 : 2018 City County Conference Update – June 27-28, 2018)
24.d
Packet Pg. 634 Attachment: Council.CCC Draft Agenda (Attachment 3) (5687 : 2018 City County Conference Update – June 27-28, 2018)
24.d
Packet Pg. 635 Attachment: Council.CCC Draft Agenda (Attachment 3) (5687 : 2018 City County Conference Update – June 27-28, 2018)
24.d
Packet Pg. 636 Attachment: Council.CCC Draft Agenda (Attachment 3) (5687 : 2018 City County Conference Update – June 27-28, 2018)
25.a
Packet Pg. 637 Attachment: FN-Business Registration Liens.Report (5685 : Business Registration Liens)
If a response has not been received, a second letter is sent advising the owner to
comply with the registration requirement, or to contact the Business Registration office
to discuss the status of the property. If there is still no response after the second letter,
a certified letter is sent indicating the same information. If there is no response to the
certified letter, a lien hearing notice is mailed with a Business Registration application to
allow the owner to comply or close the account before proceeding into the lien process.
If letters are returned because the owner is unknown, the City will continue the same
process using the new address collected by the Post Office. If no forwarding address is
provided by the Post Office, the matter is dismissed.
Exhibit A to the Resolution (attached) represents accounts that are not in compliance as
of 5 p.m., July 12, 2018, when this report was submitted to the agenda process. Those
accounts that were addressed prior to August 1, 2018, and after July 12, 2018, will be
removed from the list that is forwarded to the County; liens will not be placed on those
properties.
2018-19 Goals and Objectives
The approval of the placement of liens on the subject properties for unpaid Business
Registrations taxes and penalties is consistent with Goal No. 6: Operate in a Fiscally
Responsible and Business-Like Manner. The program helps insure greater compliance
with the municipal code within the business community and will generate additional
revenue through this enhanced compliance effort by the Business Registration staff.
Fiscal Impact
The anticipated amount of additional revenue to be collected through the lien process
represents $47,000.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino,
California conduct the Public hearing, authorize the Direct of Finance to clear any lien
amounts resolved prior to the Public hearing, and adopt the Resolution imposing liens
on certain properties for unpaid business registration taxes and penalties.
Attachments
Attachment 1 Resolution; Exhibit A – Listing of Properties for Lien Assessment
Ward: All
Synopsis of Previous Council Actions: None
7/25/2018 12:40 PM
25.a
Packet Pg. 638 Attachment: FN-Business Registration Liens.Report (5685 : Business Registration Liens)
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RESOLUTION NO. 2018-226
RESOLUTION OF THE MAYOR AND THE CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, IMPOSING LIENS ON CERTAIN PROPERTIES FOR
UNPAID BUSINESS REGISTRATION TAXES AND PENALTIES
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
SECTION 1. The City of San Bernardino, pursuant to its authority under San
Bernardino Municipal Code Section 5.04.076 does hereby impose liens on the real property
described in Exhibit “A,” attached hereto and incorporated herein by reference, for uncollected
business registration fees and all future fees and penalties.
SECTION 2. The matter having now come before the Mayor and City Council for
confirmation of the imposition of the liens imposed, the fees set forth on Exhibit “A” are found
to have been uncollectible after proper notification to the property/business owner pursuant to
proceedings under Section 5.04.076 of the San Bernardino Municipal
Code.
SECTION 3.The statements of fees on file in the Finance Department are hereby
confirmed and adopted as special assessments against the properties listed on Exhibit “A”
hereto.
SECTION 4. Director of Finance is directed to remove paid liens and those addressed
prior to the meeting of August 1, 2018, from Exhibit “A” prior to forwarding the list to the
County.
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Packet Pg. 639 Attachment: FN-Business Registration Liens.Resolution (5685 : Business Registration Liens)
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RESOLUTION OF THE MAYOR AND THE CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, IMPOSING LIENS ON CERTAIN PROPERTIES FOR
UNPAID BUSINESS REGISTRATION TAXES AND PENALTIES
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: _________________________
2
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Packet Pg. 640 Attachment: FN-Business Registration Liens.Resolution (5685 : Business Registration Liens)
Exhibit A
FIRST NAME ADDRESS 1 CITY STATE POSTAL CODE ADDRESS2 ACCT#APN AMOUNT PRIORTOLIEN WARD
Ramiro Hernandez PO Box 2933 Chula Vista CA 91912-2933 154 E 3rd St 75188 0135 181 75 993 868 1
Jose Perez 1643 Pumalo St San Bernardino CA 92404-6502 1095 E 3rd St 75153 0279 301 50 513 388 1
Francisco Vargas Lopez 147 E 5th St San Bernardino CA 92410-4840 147 E 5th St 73989 0135 132 03 1029 904 1
Gonzalez Base Construction Inc 29500 Live Oak Canyon Rd Redlands CA 92373-8711 285 E 5th St 7616 0135 143 08 369 244 1
Adriana Alejandre 4694 N D St San Bernardino CA 92407-3614 1798 W 5th St 75074 0138 082 22 765 640 1
Dan A Bluff 370 W 6th St San Bernardino CA 92401-1175 370 W 6th St 27793 0135 011 19 549 424 1
California Inland Waterman LLC 5810 Etiwanda Ave Etiwanda CA 91739-9756 390 E 6th St 74480 0278 161 09 525 400 1
Robert E Grimes II PO Box 4079 Atlanta GA 30302-4079 1057 W 6th St 20859 0138 131 08 309 184 1
Jimmy L & Mary E Duran 16742 Ramona Ave Fontana CA 92336-2009 747 W 8th St 41902 0140 263 05 345 220 1
Leo Sanchez/Jennie Ramirez/Martha Morales 1549 Union St San Bernardino CA 92411-2544 1534 W 8th St 70687 0139 224 25 309 184 1
Michelle Webley 2387 Prince Albert Dr Riverside CA 92507-5733 124 E 10th St 940601 0140 112 37 333 208 1
Jovany & Gabriel Garcia/Guillermina Fuentes 18828 Malkoha St Lake Matthews CA 92570-6549 608 W 10th St 73592 0140 033 14 525 400 1
Tracey Kellstrom Trust 26266 Beecher Ln Newhall CA 91381-1410 936 W 11th St 960702 0139 091 23 753 628 1
RLF I-B SPE LLC 201 West St Ste 200 Annapolis MD 21401-3401 245 S Allen St 72159 0136 271 47 1155 1030 1
Arturo & Brenda Andrade 1865 N Willow Ave Rialto CA 92376-2772 247 Arrowhead Ave 57666 0136 043 03 285 160 1
Steaman Group LLC 14051 Paramount Blvd Ste C Paramount CA 90723-6153 505 N Arrowhead Ave 73105 0135 091 70 309 184 1
Maria Gomez 1123 Barton St San Bernardino CA 92410-3934 1123 Barton St 960635 0278 041 13 1005 880 1
Jose Perez Jr 1643 Pumalo St San Bernardino CA 92404-6502 1679 E Baseline St 956669 0278 081 01 357 232 1
Alfredo Santacruz 265 Bryant St Apt C San Bernardino CA 92408-1185 265 Bryant St 7604 0135 252 55 285 160 1
Ricardo Milian 16179 Banbridge Ave La Puente CA 91744-4502 987 E Central Ave 72093 0280 211 05 285 160 1
Alejandra Lopez-Pulido 1646 Cleveland St San Bernardino CA 92411-2461 1646 Cleveland St 61758 0139 273 23 285 160 1
David Donaldson 1071 N F St San Bernardino CA 92410-2827 1071 N F St 44272 0140 041 32 309 184 1
Henry Obinwanne 1479 Northstar St San Bernardino CA 92407-5051 752 N H St 66086 0140 261 15 765 640 1
Amalia Resendiz 16299 Foothill Blvd Fontana CA 92335-3357 735 N J St 61026 0139 311 03 1005 880 1
Norma Romero 2938 Muir Mountain Way San Bernardino CA 92707-5185 773 N K St 6012 0139 302 24 297 172 1
Adolfo Diaz 917 S Caldwell Ave Ontario CA 91761-3408 864 N K St 957592 0139 251 16 345 220 1
Jerry Gonzalez/Phoebe Favela 10803 Foothill Blvd Ste 212 Rancho Cucamonga CA 91730-7697 1307 N K St 75201 0144 212 13 261 136 1
Norma Romero 2938 Muir Mountain Way San Bernardino CA 92407-5185 215 E King St 7598 0135 302 02 297 172 1
Fernando & Marta Ramirez 1116 W King St San Bernardino CA 92410-1737 1116 W King St 40102 0138 302 15 297 172 1
Enrique Quezada 278 S Rancho Ave San Bernardino CA 92410-2123 1431 W Kingman St 52609 0138 182 04 765 640 1
Steven & Anthony Bowers 2606 Mira Monte Dr San Bernardino CA 92405-3042 715 E Mill St 75075 0280 061 08 285 160 1
Alejandro Garcia 945 S Idaho St Apt 138 La Habra CA 90631-6663 726 N Mountain View Ave 75113 0140 292 10 273 148 1
Ciro Hernandez PO Box 2241 San Bernardino CA 92402-0022 846 N Mountain View Ave 51399 0140 221 40 357 232 1
25.c
Packet Pg. 641 Attachment: FN-Business Registration Liens.Exhibit A (5685 : Business Registration Liens)
Exhibit A
Eric & Manuel Gonzales 9378 Felipe Ave Montclair CA 91763-1958 860 Perris St 73751 0139 252 16 1029 904 1
Jesus Davalos 6368 Cloverhill Dr Highland CA 92346-7761 479 E Rialto Ave 73994 0136 302 17 813 688 1
Raul Vanegas 1088 E Rialto Ave San Bernardino CA 92408-1222 1088 E Rialto Ave 69609 0279 311 34 429 304 1
Jose & Irma Gonzalez 32971 Wisconsin St Acton CA 93512-1744 130 E Temple St 61206 0140 171 37 233 108 1
Ying Huang 33 California St Ste D Arcadia CA 91006-3640 1025 N Tippecanoe Ave 74469 0278 072 33 285 160 1
Ying Huang 33 California St Ste D Arcadia CA 91006-3640 1025 N Tippecanoe Ave 74468 0278 073 39 273 148 1
Parshotam Savita LLC 2850 Whippoorwill Dr Rowland Heights CA 91748-4700 1025 N Tippecanoe Ave 73630 0278 073 48 309 184 1
Sandra Weaver 9201 Santiago Dr Huntington Beach CA 92646-6335 1025 N Tippecanoe Ave #107 9111 0278 072 07 333 208 1
Michael Barrera 565 Victoria St San Bernardino CA 92410-3023 565 Victoria St 73540 0134 023 03 525 400 1
Arnold Investments Inc 4603 Encinas Dr Flintridge CA 91011-2220 832 Victoria St 73995 0134 011 17 1144 1269 1
Guadalupe Castro 1265 Vine St San Bernardino CA 92411-2727 1265 Vine St 60973 0139 292 04 993 864 1
Roberto Martinez 1088 Ohio Ave Apt 1 Long Beach CA 90804-3662 357 W 10th St 75219 0140 152 03 261 136 2
Leonardo Aguilar 833 W 10th St Apt 1 San Bernardino CA 92410-2863 833 W 10th St 69279 0140 131 09 309 184 2
Star Family Trust 8630 Cavel St Downey CA 90242-2632 273 W 14th St 74036 0146 162 02 573 448 2
Pacific Trust 7211 Haven Ave Ste E340 Alta Loma CA 91701-6064 179 E 16th St 64364 0146 142 11 309 184 2
Jesus Arriaga 11713 Lemonwood Ct Fontana CA 92337-0567 537 W 16th St 74043 0145 124 17 573 444 2
Rogelio Cerda 1250 N Moraga St Anaheim CA 92801-1554 808 W 17th St 74473 0145 072 12 525 400 2
Reginald Ray 737 E Nutwood St Inglewood CA 90301-2815 851 W 17th St 67863 0145 101 05 329 204 2
CTR Partnership LP 905 Calle Amanecer Ste 300 San Clemente CA 92673-6277 266 E 18th St 74356 0146 091 32 309 184 2
David Owens 732 E 19th St San Bernardino CA 92404-4805 732 E 19th St 74139 0147 175 06 1053 928 2
Audrey Gonzalez 596 E 28th St San Bernardino CA 92404-3928 431 W 20th St 74472 0145 061 28 285 160 2
Yolanda Macias 426 W Baseline St San Bernardino CA 92410-3502 972 W 26th St 68367 0148 163 29 321 196 2
Anthony Alarcon 2321 E 4th St Ste C228 Santa Ana CA 92705-3861 1332 Acacia Ave 59524 0145 203 36 333 208 2
Luisana Lopez 982 N Arrowhead Ave San Bernardino CA 92410-3610 982 N Arrowhead Ave 75217 0140 153 07 261 136 2
Jennifer Crouch 5050 Palo Verde St Ste 217 Montclair CA 91763-2334 1065 N Arrowhead Ave 75107 0140 101 23 273 148 2
Alicia De Torres 9210 Pepper Ave Apt 7 Fontana CA 92335-5680 1503 Belle St 75114 0146 153 01 577 452 2
Adrian Miramontes 12864 N Rim Way Rancho Cucamonga CA 91739-2314 1567 Belle St 73581 0146 153 08 285 160 2
Katherine Milbourne 16520 Farmington St Hesperia CA 92345-8825 1989 Belle St 63064 0146 062 03 333 208 2
Leah & Svend Nilsen 9140 Carrari Ct Rancho Cucamonga CA 91737-1523 1912 Crestview Ave 64235 0147 025 16 309 184 2
Raul Mares 3724 W Valencia Dr Apt B Fullerton CA 92833-2888 2931 Davidson Ave 63231 0148 264 03 285 160 2
Manuel Acosta 561 E Merrill Ave Rialto CA 92376-6667 941 N E St 27599 0140 151 31 309 184 2
Dhakabang LLC 19721 E Country Hollow Dr City Industry CA 91789-5306 1251 N E St 72442 0145 241 09 325 200 2
Lupe Blanco 761 E 19th St San Bernardino CA 92404-4841 532 E Evans St 937957 0147 071 18 321 196 2
Assured Income LLC PO Box 1122 Fullerton CA 92836-8122 1418 N F St 952383 0145 172 22 309 184 2
25.c
Packet Pg. 642 Attachment: FN-Business Registration Liens.Exhibit A (5685 : Business Registration Liens)
Exhibit A
Brandon Dumaine 1837 Fremontia Dr San Bernardino CA 92404-4915 1837 Fremontia Dr 74136 0147 173 01 573 448 2
Stephanie Deza 45150 Via Vaquero Temecula CA 92590-3146 1331 N G St 72130 0145 201 46 273 148 2
Est of John D Hanna 1731 Garden Dr San Bernardino CA 92404-5503 1725 Garden Dr 49962 0147 222 18 297 172 2
Yao Hui Su 304 E Las Tunas Dr San Gabriel CA 91776-1502 1749 Genevieve St 75101 0146 078 05 993 868 2
Orange-Lemon Ltd Partnership PO Box 3007 Corona CA 92878-3007 2912 Herrington Ave 908139 0148 301 07 679 554 2
Richelle Perry 2924 Lincoln Dr San Bernardino CA 92405-2944 2924 Lincoln Dr 75132 0148 082 14 993 868 2
Rene Vazquez 1460 N Lugo Ave San Bernardino CA 92404-5231 1462 N Lugo Ave 74044 0146 171 20 525 400 2
Regina Rhymes 4360 Casa Grande Cir Apt 291 Cypress CA 90630-6107 587 Magnolia Ave 46580 0145 174 12 357 232 2
Benny Juarez PO Box 734 San Bernardino CA 92402-0734 933 N Mountain View Ave 61216 0140 162 24 321 196 2
Karmel Roe 325 W 6th St San Bernardino CA 92401-1101 1543 N Mountain View Ave 51821 0146 133 40 321 196 2
Regina Rhymes 4444 Casa Grande Cir Apt 61 Cypress CA 90630-2551 143 W Olive St 944132 0140 104 05 445 320 2
Nicolas Flores 138 W Orange St San Bernardino CA 92410-3628 138 W Orange St 75146 0140 073 14 993 868 2
Ted Tondera Dominguez 595 W Valley Blvd Colton CA 92324-2248 764 W Orange St 65877 0140 013 19 321 196 2
Raed Odeh 22366 Scarlet Sage Way Moreno Valley CA 92557-5917 1861 Parkside Dr 63530 0147 023 10 309 184 2
R & B Socal Properties LLC 6649 Amethyst Ave Unit 9472 Alta Loma CA 91701-1567 1240 Pepper Tree Ln 73886 147 134 11 585 460 2
Michael Jimenez 1325 Sepulveda Ave San Bernardino CA 92404-5216 1327 Sepulveda Ave 61868 0146 203 04 285 160 2
Lawrence & Christopher Dry 3350 Shelby St Ste 100 Ontario CA 91764-5581 2390 N Sierra Way 75199 0150 221 18 261 136 2
Diana Serrano 2381 W 1st St San Bernardino CA 92407-6133 749 W Trenton St 68599 0145 103 15 342 220 2
Lisa M Hodge 12405 Woodbriar Dr Moreno Valley CA 92555-1867 774 W Virginia St 48746 0145 163 14 513 388 2
Star Family Trust 8630 Cavel St Downey CA 90242-2632 2138 Wall Ave 70660 0146 023 21 333 208 2
San Bernardino Pacific LLC 240 Newport Center Dr Ste 105 Newport Beach CA 92660-7538 1666 N Waterman Ave 75125 0146 121 35 414 290 2
Maximiano Razon 2275 John Matich Dr Colton CA 92324-9513 2619 Annapolis Cir 51529 0141 493 10 285 160 3
441 INC 5305 Via Cervantes Yorba Linda CA 92887-3125 674 Birch Ct 50398 0136 162 42 765 640 3
Jeffrey-Hsiao & Lisa Yamasaki 829 N Landa Way Brea CA 92821-7425 673 Bunker Hill Dr 6923 0141 122 05 297 172 3
Antonio Quintero Jr 1584 N Euclid Ave Upland CA 91786-2303 799 Bunker Hill Dr 959580 0141 143 01 309 184 3
Varnavas Stavrou Living Trust 4793 E Pacific Coast Hwy Long Beach CA 90804-3242 391 E Caroline St 59461 0283 012 10 285 160 3
Varnavas Stavrou Living Trust 4793 E Pacific Coast Hwy Long Beach CA 90804-3242 403 E Caroline St 59460 0283 012 11 285 160 3
Robert Thong 1520 Coulston St Apt 33 San Bernardino CA 92408-3694 1520 Coulston St Apt 33 70701 0281 322 33 357 232 3
Maria Bermudez 271 S Dallas Ave San Bernardino CA 92410-1965 271 S Dallas Ave 75211 0142 571 04 981 856 3
Jose De Jesus Montes Madrigal PO Box 333 Loma Linda CA 92354-0333 1705 Davidson St 73438 0281 233 08 525 400 3
E Street Plaza LLC 168 S E St Ste A San Bernardino CA 92401-1900 168 S E St 201674 0136 111 02 661 536 3
Raul Romero Jr 4512 Workman Mill Rd Apt 133H Whittier CA 90601-4741 976 S Foisy St 46713 0280 131 34 309 184 3
441 INC 5305 Via Cervantes Yorba Linda CA 92887-3125 395 S G St 56763 0136 162 41 573 448 3
Jalisco Trust 5570 W Phillips Blvd Montclair CA 91762-4637 2216 Greenwood St 75093 0142 252 14 273 148 3
25.c
Packet Pg. 643 Attachment: FN-Business Registration Liens.Exhibit A (5685 : Business Registration Liens)
Exhibit A
Paul Rivas Revocable Trust PO Box 2202 Orange CA 92859-2002 1657 Hardt St 74455 0281 273 16 285 160 3
Felix & Socorro Jimenez 2883 Hollow Glen Cir Rialto CA 92376-7240 2883 Hollow Glen Cir 75150 0142 534 37 993 868 3
Raymond J Huerta 4595 David Way San Bernardino CA 92404-1417 1234 Huff St 20453 0141 031 36 311 186 3
Tim Nguyen 23285 Westwood St Grand Terrace CA 92313-5312 1894 S Jasmin Ct 74390 0281 391 42 549 424 3
Delia Fernanez 4175 Palm Dr Barstow FL 33830-9274 3114 Jefferson St 945530 0142 741 47 309 184 3
Marcos & Magdelena Luna 409 E Heather St Rialto CA 92376-2875 2252 W King St 66127 0142 265 10 297 172 3
Mallory Dawson 827 S Loretta St Rialto CA 92376-7233 827 S Loretta St 75149 0142 631 24 273 148 3
Singh Harpreet/Kanwaljeet Maken 5470 Camino Vis Yorba Linda CA 92887-4943 194 E Manchester Ln 75212 0141 511 20 261 136 3
Xue Chen/Chao Deng 13268 Roswell Ave Chino CA 91710-4771 540 W Mill St 75161 0136 171 40 993 864 3
Antonio Canul Jr 604 E Orange Show Rd San Bernardino CA 92408-2454 604 E Orange Show Rd 960964 0280 172 06 981 856 3
Luis & Loyda Leon 16090 Reiner Cir Riverside CA 92504-6142 161 N Plymouth Way 58483 0141 481 71 1077 852 3
John Vedin 15671 Lasselle St Ste 115 Moreno Valley CA 92551-4750 1446 Sycamore Ln 74397 0281 323 47 1029 904 3
Jeffrey Ly 11518 Lomello Way Alta Loma CA 91701-8525 1487 Sycamore Ln 69781 0281 321 72 333 208 3
424 E Vanderbilt Way LLC 6950 Londonderry Ct Etiwanda CA 91739-2514 424 E Vanderbilt Way 75167 0281 341 24 513 388 3
Palencia Trust PO Box 1583 Arrowbear Lake CA 92382-1583 3412 20th St 73298 1191 314 05 309 484 4
Ricardo Baca 568 9th St Imperial Beach CA 91932-1544 3478 21st St 67877 1191 301 15 309 184 4
Pacifico Investment LLC 534 N Orange Ave Apt C La Puente CA 91744-3476 224 E 40th St 75186 0154 252 16 273 148 4
Pooya Yermian Trust 1824 Loma Vista Dr Beverly Hills CA 90210-1929 144 W 42nd St 73315 0154 221 36 309 184 4
Orange-Lemon Ltd Partnership PO Box 3007 Corona CA 92878-3007 100-111 W 43rd St 20304 0154 221 35 1200 1075 4
Abelardo Rios Cuevas 25419 Edgemont Dr San Bernardino CA 92404-2813 219 E 45th St 70440 0154 202 25 561 436 4
Juan Lopez 289 E 47th St San Bernardino CA 92404-1252 289 E 47th St 74320 0154 184 25 549 424 4
Jesus Hernandez 1121 Reservoir Dr Apt A San Bernardino CA 92407-4970 475 W 49th St 75130 0154 402 23 273 148 4
Robert & Barbara Bolton PO Box 68 Glendora CA 91740-0068 228 E 50th St 46623 0154 102 15 321 196 4
Basilio Mondragon 2476 Baldridge Canyon Ct Highland CA 92346-7209 2476 Baldridge Canyon Ct 70730 0285 601 21 321 196 4
TAH 2015-1 Borrower LLC PO Box 15087 Santa Ana CA 92735-0087 3139 Belvedere Ave 74371 0285 662 07 1029 904 4
Cal Homes Group Inc 10641 Church St Rancho Cucamonga CA 91730-6862 5035 N Berkeley Ave 75095 0154 504 18 273 148 4
Tracie Sterling 2565 Orange St Highland CA 92346-1834 2265 Bradford Ave 72412 1199 161 38 309 184 4
Ileana Arroyo 27000 W Lugonia Ave Apt 12101 Redlands CA 92374-2097 3450 Camellia Dr 74384 0155 091 14 1029 904 4
Avector Inc PO Box 2513 Rancho Cucamonga CA 91729-2513 3456 Del Rosa Ave 21425 0155 094 14 333 208 4
Andres Rodriguez 4904 N Berkeley Ave San Bernardino CA 92407-3016 4456 N E St 949390 0154 133 18 309 184 4
Jerome Godinez PO Box 2140 Walnut CA 91788-2140 3902 Genevieve St 20824 0154 271 13 309 184 4
Kulwinder & Avtar Sandu 2909 N Waterman Ave San Bernardino CA 92404-3956 911 W Hill Dr 61785 0265 121 45 285 160 4
Louie & Elsa Morales 3811 Bedford Canyon Rd Ste 104 Corona CA 92883-0789 1470 Los Flores Dr 74381 0155 083 18 309 184 4
Michael Tamayo 7175 Green Glen Ct Etiwanda CA 91739-9661 4081 N Mountain View Ave 74295 0154 241 17 1041 916 4
25.c
Packet Pg. 644 Attachment: FN-Business Registration Liens.Exhibit A (5685 : Business Registration Liens)
Exhibit A
Boye Adenihun 5563 Sugar Maple Way Fontana CA 92336-5913 661 Northpark Blvd 75177 0154 593 14 993 868 4
Lisa Lobo 1140 E Lugonia Ave Apt D Redlands CA 92374-2635 3837 Orchid Dr 61955 1199 161 12 309 184 4
Maria Zurita 2169 Pepper Dr Highland CA 92346-2462 2169 Pepper Dr 8508 1191 282 38 261 136 4
Addison & Elizabeth Vaughn 3485 Rainbow Ln Highland CA 92346-2565 3485 Rainbow Ln 74318 1191 316 33 321 196 4
OSO Bernardino Properties LLC 772 Val Mar Dr San Bernardino CA 92404-2448 248 E Ralston Ave 74334 0154 392 05 1029 904 4
Jessica Beltran 26732 Union St Highland CA 92346-3564 912 Sequoia St 73706 0154 541 13 309 184 4
ARLP Trust 1661 Worthington Rd Haverhill FL 33409-6488 3827 N Sierra Way 70967 0154 283 04 573 448 4
Kevin Vance 1145 W J St Montclair CA 91762-2108 664 W 34th St 74206 0152 041 30 561 436 5
Jose Maldonado 5365 Whittier Blvd Commerce CA 90022-4033 247 E 41st St 70779 0154 252 09 357 232 5
Jaime Betancourt 294 E Alexander Ave San Bernardino CA 92404-3618 294 E Alexander Ave 74083 0150 151 21 813 688 5
Liberth Escobar 377 S Orange Ave Apt B Rialto CA 92376-6473 4838 Alta Dr 74287 0266 332 14 321 196 5
Matthew Orozco 4941 Alta Dr San Bernardino CA 92407-2983 4941 Alta Dr 74289 0266 332 04 1041 916 5
Raquel Ojeda Barbon 3205 Cricklewood St Torrance CA 90505-6604 4519 Brookfield St 69163 0266 621 16 309 184 5
Just Invest LLC 751 Crestview Dr Diamond Bar CA 91765-6105 1440 W Edgehill Rd 75087 0148 371 20 273 148 5
Just Invest LLC 751 Crestview Dr Diamond Bar CA 91765-6105 1440 W Edgehill Rd 75088 0148 371 26 273 148 5
Isabel Licea 12775 Mission St Hesperia CA 92344-8679 3632 N F St 75140 0152 011 38 993 868 5
Thomas Curtis 7652 Paseo Medio Highland CA 92346-5962 1419 Keystone Dr 74290 0266 541 21 1041 916 5
Dagmel Residential Properties 2724 N Waterman Ave Ste E San Bernardino CA 92404-3972 1443 Lake Placid Dr 67439 0266 501 25 273 148 5
Patrick Rogers 5172 Old Ranch Rd La Verne CA 91750-1532 4464 Lakewood Dr 75181 0266 271 24 993 868 5
Blue Arch Properties LLC 700 E Redlands Blvd #277 Redlands CA 92373-6109 3188 Little Mountain Dr Apt B 65892 0148 324 42 285 160 5
Si Woo Sung 10655 LemonAve Apt 2504 Rancho Cucamonga CA 91737-6961 1465 Northstar St 942678 0266 503 53 309 184 5
Anthony Hilla 6175 Patricia Ct San Bernardino CA 92407-2059 6175 Patricia Ct 56358 0261 311 36 273 148 5
Shawn Warner PO Box 90627 San Bernardino CA 92427-1627 5131 Revere Ave 7147 0266 471 80 285 160 5
Richard Douglas 13312 Ranchero Rd #18/187 Oak Hills CA 92344-4812 2504 Rosemary Ln 75184 0261 402 21 273 148 5
Betty Deloris Hendricks Fam Tr 7226 Quail Run Dr Highland CA 92346-5038 4305 Scripps Dr 75044 0266 351 13 1005 880 5
Martha &Ricardo Pineda 1048 Leslie Ct Colton CA 92324-6815 1490 Sheridan Rd 61702 0266 171 41 993 868 5
James Larson PO Box 6424 Bellevue WA 98008-0424 2805 Stephanie Ave 61588 0261 291 29 357 232 5
Nancy Cooper 3229 W Meyers Rd San Bernardino CA 92407-1959 2755 Washington Ave 934054 0261 291 39 273 148 5
Manuel Garcia 6483 N Walnut Ave San Bernardino CA 92407-4015 3192 Washington St 59912 0261 182 34 285 160 5
Antonio Contreras 1404 W 21st St San Bernardino CA 92411-1361 1124 W 11th St 65517 0139 073 19 285 160 6
Tong Wu/ Yao Li 3958 Bentley Ave Apt 2 Culver City CA 90232-3961 1679 W 28th St 69937 0268 314 04 309 184 6
Richard & Marian James 1690 Cabrera Ave San Bernardino CA 92411-1209 1690 Cabrera Ave 75064 0143 072 41 1005 880 6
Dorjil Estates PO Box 90430 San Bernardino CA 92427-1430 1823 California 20296 0269 361 44 639 514 6
Patricia Williams-Reed 1631 Clyde St San Bernardino CA 92411-0945 1631 Clyde St 69850 0269 371 69 309 184 6
25.c
Packet Pg. 645 Attachment: FN-Business Registration Liens.Exhibit A (5685 : Business Registration Liens)
Exhibit A
Victor Ruiz/Silvia Rodriguez 805 N Dallas Ave San Bernardino CA 92410-1007 805 N Dallas Ave 62859 0142 464 10 765 640 6
Benjamin Lopez 1046 Garner Ave San Bernardino CA 92411-2223 1046 Garner Ave 75220 0139 113 41 261 136 6
H Street Army LLC 15332 Antioch St #144 Pacific Palisades CA 90272-3628 342 N H St 74011 0134 161 34 321 196 6
MTV Holdings LLC 15332 Antioch St #144 Pacific Palisades CA 90272-3628 4330 Hallmark Pkwy 73288 0266 363 18 545 420 6
Yanlong Huang 8377 Thoroughbred St Alta Loma CA 91701-1967 1474 Hancock St 73617 0143 261 05 765 640 6
Gus Da Silva 320 W G St Ste 204 Montclair CA 91762-3235 554 N Lamarr St 74183 0142 502 05 297 172 6
Arthur, Robert, Sally Menor 1395 Magnolia Ave San Bernardino CA 92411-1725 1395 Magnolia Ave 75062 0143 126 12 1005 880 6
Antonio & Amalia Ecalante 9900 Lakewood Blvd Ste 217 Downey CA 90240-4040 1408 Magnolia Ave 67068 0143 122 13 309 184 6
Patrick Saunier 3923 W Meyers Rd San Bernardino CA 92407-1710 1490 Magnolia Ave 74035 0143 122 24 273 448 6
May Wong Cooper 250 N First St Unit 303 Burbank CA 91502-1870 2486 Maple St 45725 0269 381 15 1041 916 6
Priscilla Delgado 1656 Perris St San Bernardino CA 92411-1944 1656 Perris St 74116 0144 122 08 1053 928 6
Thomas Hernancez 1666 Porter St San Bernardino CA 92407-6742 1666 Porter St 69962 0268 314 37 220 345 6
Juan Ruiz 1092 Brentwood Ave Rialto CA 92376-2300 1681 Porter St 932824 0268 315 01 333 208 6
Ashley Harrison 2877 Portola St San Bernardino CA 92407-6933 2877 Portola St 75046 0262 281 78 525 400 6
Thomas & Rosetta Jackson PO Box 8124 La Verne CA 91750-8124 2375 Saint Elmo Dr 56742 0142 593 12 257 132 6
Kriss Merida 3693 N Mountain View Ave San Bernardino CA 92405-2209 1670 Turrill Ave 75202 0144 113 06 969 844 6
Nita Alexander 2909 N Palm Ave Rialto CA 92377-8108 2730 Victoria St 48625 0142 473 13 321 196 6
Jose Duenas 215 W 24th St San Bernardino CA 92405-3703 215 W 24th St 74072 0150 192 11 573 448 7
Nicholas Alaniz 460 W 25th St San Bernardino CA 92405-3728 460 W 25th St 70128 0149 161 10 333 208 7
Jamie Bernejo 581 W 25th St San Bernardino CA 92405-3601 581 W 25th St 70309 0149 175 02 357 232 7
Est of Alexander Quiroz 2564 Bonita Dr Highland CA 92346-2223 841 E 26th St 49755 0150 342 26 333 208 7
Harold Sharp 129 W 27th St San Bernardino CA 92405-3501 129 W 27th St 70898 0150 221 59 1053 928 7
Powerhouse Mgmt LLC 2617 Brynwood Pl West Covina CA 91792-1914 246 E 27th St 74071 0150 152 12 573 448 7
Laurie Fiscella 36398 Straightaway Dr Beaumont CA 92223-8146 555 W 28th St 69240 0149 116 11 273 148 7
Buffallo Nikkle LLC 1159 E 28th St San Bernardino CA 92404-4113 1159 E 28th St 74144 0150 381 10 573 448 7
Raul & Felicia Adame 264 W 34th St San Bernardino CA 92405-2550 264 W 34th St 75133 0152 091 13 993 868 7
Nadia Tedmori 1132 Wotkyns Dr Pasadena CA 91103-2838 538 W 34th St 74196 0152 053 11 561 436 7
Neil & Yolanda Hedtke PO Box 2241 West Covina CA 91793-2241 2838 Acacia Ave 74157 0149 072 59 1014 916 7
Carlos Marquez/Leticia Fernandez 3035 N Alameda Ave San Bernardino CA 92404-2560 3035 N Alameda Ave 75056 0153 293 67 285 160 7
Gudberto Velasco 3054 Belle St San Bernardino CA 92404-2205 3054 Belle St 75178 0153 131 46 517 392 7
Pat & Clayton Stephens Fam Tr 5633 Magnolia Ave Rialto CA 92377-3945 2829 Cedar St 71045 0150 352 04 357 232 7
Samuel Bernal 2708 N E St San Bernardino CA 92405-3402 2708 N E St 74166 0149 116 45 561 436 7
Kenneth Blume 3245 N F St San Bernardino CA 92405-2724 3245 N F St 66564 0152 131 18 297 172 7
Home Buyer LLC 6649 Amethyst Ave Unit 9472 Alta Loma CA 91701-1567 2733 Fremontia Dr 72456 0150 293 09 333 208 7
25.c
Packet Pg. 646 Attachment: FN-Business Registration Liens.Exhibit A (5685 : Business Registration Liens)
Exhibit A
Diahanne Mckinley 1010 Laguna Rd Pasadena CA 91105-2320 2786 Fremontia Dr 75024 0150 161 12 765 640 7
Anthony Gonzalez 2483 Genevieve St San Bernardino CA 92405-3509 2483 Genevieve St 74074 0150 221 72 573 448 7
Maria Benitez/Cristina Camacho 3552 Genevieve St San Bernardino CA 92405-2202 3552 Genevieve St 74175 0152 073 07 1041 916 7
Amado Eli Chavarria 11666 Goshen Ave Apt 101 Los Angeles CA 90049-6224 3478 N Golden Ave 948735 0153 334 11 333 208 7
Danyelle Rucker PO Box 94652 Pasadena CA 91109-4652 3797 N Golden Ave 74339 0153 326 09 561 436 7
Angela Flores 8373 Bermuda Ct Fontana CA 92335-7013 1363 Goodlett St 63101 0143 063 50 273 148 7
Noe Contreras 1456 Grand St San Bernardino CA 92411-1541 1456 Grand St 69772 0143 383 09 357 232 7
Leticia Clark 7332 Saddlewood Dr Fontana CA 92336-8002 1305 Holly Vista Blvd 75055 0155 192 12 1005 880 7
Robert Quevedo 5683 Leaning Oak Ave Las Vegas NV 89118-2081 2615 Lawrence Ave 75134 0150 332 11 993 868 7
Raed Odeh 22366 Scarlet Sage Way Moreno Valley CA 92557-5917 2380 N Mountain View Ave 932778 0150 192 12 333 208 7
Evan Winter 26034 Edgemont Dr San Bernardino CA 92404-3051 2878 N Mountain View Ave 75092 0150 042 18 517 392 7
Saiavoosh Shahriari 3577 N Arrowhead Ave San Bernardino CA 92405-2227 3292 Parkside Dr 74329 0153 102 19 801 676 7
Jose Calderon 240 Princeton Ave Claremont CA 91711-4840 3279 N Pershing Ave 74467 0152 152 20 285 160 7
April & Darrell Paramo 29524 Bright Spot Rd Highland CA 92346-5905 2733 San Gabriel St 69341 0150 172 03 309 184 7
Blanca Ramos/Ipolito Ramos Rojas 18166 Rose Ave Bloomington CA 92316-3029 2728 Sepulveda Ave 74465 0150 134 20 285 160 7
Kenneth Valmonte 1045 W Kenwood St Upland CA 91784-8715 2312 N Sierra Way 69264 0150 221 76 513 388 7
Nicolas Martinez 3823 American Elm Rd San Bernardino CA 92407-0414 2825 N Sierra Way 74079 0150 053 03 573 448 7
Wing Cheng 2839 N Stoddard Ave San Bernardino CA 92405-3441 2839 N Stoddard Ave 74167 0149 082 15 561 436 7
Living Stone Properties LLC 10722 Arrow Rte Ste 500 Rancho Cucamonga CA 91730-4840 3021 N Stoddard Ave 74172 0152 201 26 561 436 7
George Jrab 333 Linden Ave Long Beach CA 90802-2510 2169 Sunrise Ln 59555 1191 051 50 309 184 7
Platinum Property Holdings 1601 Dove St Ste 240 Newport Beach CA 92660-2411 3695 Wall Ave 75197 0153 013 12 261 136 7
25.c
Packet Pg. 647 Attachment: FN-Business Registration Liens.Exhibit A (5685 : Business Registration Liens)
Date:
To:
From:
Subject:
City of San Bernardino
Request for Council Action
August 1, 2018
Quasi-Judicial Hearing
Honorable Mayor and City Council Members
Andrea M. Miller, City Manager J\��By: Jarrod Burguan, Chief of �-
Paul Williams, Captain
Appeal filed by Pepe's Towing Services on November 13, 2017
Pursuant to Municipal Code Section 2.64.
Recommendation
Consider all evidence presented at the public hearing and the information provided in
this report and either grant or deny Pepe's Towing Services appeal.
Background
The City is currently working under a Tow Service Agreement (TSA) with six (6) local
tow carriers. The current Agreement, Resolution No. 2011-80, provides for one tow
carrier per 35,000 residents of the City. Resolution No. 2016-73 extended the term of
the TSA agreement for an additional five (5) years (April 2021). On March 7, 2018
Resolution No. 2018-65 was approved authorizing the City Manager to initiate action to
establish an additional Tow Carrier based on the city's increased population density. In
March of 2018, a formal bid process was opened seeking a seventh tow carrier. Pepe's
Towing Service applied for the seventh position, but did not meet the minimum
requirements as set forth in Appendix A to Resolution No. 2011-80.
Discussion
On August 23, 2017 Pepe's Towing Service sent a letter requesting to be added to the
Tow Service Agreement (TSA) and placed into the rotational tow services. This request
was denied by the City Manager as the TSA allowed for six (6) to carriers and a
vacancy was not present. Additionally, the appeal listed claims relating to the existing
tow carriers and non-compliance with the requirements set forth in Resolution No. 2011-
80 & 2016-73. On November 13, 2017 the City was served with a notice of appeal from
Pepe's Towing Service pursuant to Municipal Code Section 2.64.
On November 27, 2017 the City was served with a notice of amended appeal pursuant
to Municipal Code Section 2.64. The amended appeal expanded the first appeal to
July 25, 2018 12:29 PM
26.a
Packet Pg. 648 Attachment: PD.Pepes Towing Staff Report 8-1-18 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to Municipal
include the denial letter of from the City Attorney’s Office dated October 19, 2017. The
amended appeal argued the city refused to investigate claims that the tow carriers on
the TSA were non-compliant with the requirements of the contract and the city refused
to make the determination that a vacancy existed on the tow rotation.
The Police Department conducted inspections of all six (6) tow carriers. Requirements
of the TSA were documented and items that were non-compliant were presented to
each carrier with a timeframe for cure the items. The timeframe for cure of items
considered non-compliant is still active within the time granted. Several of the items are
cost neutral while others items carry a considerable cost. The TSA has disciplinary
actions available that will be used if compliance is not met.
On March 7, 2018 Resolution No. 2018-65 authorized the City Manager to initiate action
to establish an additional tow carrier to the Tow Service Agreement (TSA) based on
population density. The TSA allows for one carrier per 35,000 residents. The City of
San Bernardino population has grown to 216,239 as of 2016.
Following the adoption of Resolution No. 2018-65 a formal bid process was initiated and
completed. Two (2) Tow Carriers submitted bids including Pepe’s Towing Service. On
March 19, 2018 Pepe’s Towing signed as ‘acceptable’ the terms of requirement set forth
in the RFP. SBPD Traffic unit conducted an inspection at the Pepe’s Towing facility on
March 27 and 28, 2018. The lot size was found to be 39,834 square feet. This was
25,166 square feet below the requirement set forth in the RFP and TSA. The second
bidder did not meet the requirements and has not appealed its denial.
On April 11, 2018 Pepe’s Towing was contacted to determine if there were mitigating
and/or missing issues as to why the minimum requirements were not met. Pepe’s
Towing informed the City that they would seek a secondary lot to meet the requirement.
On April 13, 2018 Pepe’s Towing informed the City that they did not obtain a secondary
location.
On April 16, 2018 Pepe’s Towing was mailed a disqualification letter and provided five
(5) days to reply. On April 20, 2018, Captain Paul Williams received a call from Pepe’s
Towing regarding a secondary lot on Waterman Ave and a possible location on East 9th
Street. The Police Department conducted an inspection at the lot on East 9th Street and
found the lot size added to the main location was within the requirements of the RFP
and TSA. The lot would need added items to meet all the requirements.
On May 21, 2018 Pepe’s Towing informed the City that the secondary lot was not
obtained.
On May 1, 2018 the City was served with a notice of second amended appeal pursuant
to Municipal Code Section 2.64. The second amended appeal argued the appeals of
previous requests on the basis that the City Manager and/or City Attorney:
July 25, 2018 1:01 PM
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Packet Pg. 649 Attachment: PD.Pepes Towing Staff Report 8-1-18 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to Municipal
1. Refused to investigate the allegations submitted in the letter of October 20, 2017,
including each of the attachments thereto.
City Response: Inspections of each tow carrier have been conducted, non-
compliant items are being addressed (the timeframe given for correction is still
active) and disciplinary actions will be taken if needed.
2. Refused to make a determination that one or more vacancies exist on the TRL
(Page 3, second paragraph, October 20, 2017 letter from Milligan Beswick Levin
& Knox, LLP to City Manager, Andrea Travis-Miller, and to Chief Assistant City
Attorney, Jolena E. Grider).
City Response: An additional tow carrier position was recommended by City staff
and was approved through the adoption of Resolution No. 2018-65 on March 7,
2018. The requirements of the RFP and TSA were not met by any applicants;
therefore the seventh carrier position has not been filled.
3. Denied Pepe’s request to be placed on the TRL.
City Response: Pepe’s Tow did not meet the requirements of the RFP and TSA,
therefore their request was denied.
4. Denied Pepe’s request to be placed on the tow rotation a second time due to lack
of required square footage.
City’s Response: Pepe’s Tow did not meet the requirements of the RFP and TSA
(minimum 65,000 square foot of outside storage space) and failed to obtain a
second lot to meet the requirement.
5. The 65,000 square foot requirement.
City’s Response: The requirement of 65,000 square feet of outside storage
space was negotiated with the tow carriers in Resolution No. 2011-80 & 2016-65.
In order to change this requirement, the City would have to get the consent of
each of the six existing tow carriers. This binding contract terminates on April 4,
2021.
On July 18, 2018 the Mayor and City Council continued the public hearing to August 1,
2018 and directed the City Manager to initiate staff work for clarification of the minimum
required square footage of outdoor space required for current tow carriers.
2018-19 Goals and Objectives
The request for recommendation to grant or deny the Appeal presented by Pepe’s
Towing aligns with Goal No. 6: Operate in a fiscally responsible and business-like
manner. The City has six existing Tow Service Agreements that are valid until April 4,
2021.
July 25, 2018 1:01 PM
26.a
Packet Pg. 650 Attachment: PD.Pepes Towing Staff Report 8-1-18 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to Municipal
Fiscal Impact
There is no fiscal impact.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino either
grant or deny the Appeal presented by Pepe’s Towing after conducting a public hearing
and receiving and considering all evidence presented.
Attachments
Attachment 1 July 24, 2018 – Cota Cole & Huber Memorandum
Attachment 2 Resolution 2011-80
Attachment 3 Resolution 2011-91
Attachment 4 Resolution 2016-73
Attachment 5 Resolution 2018-65
Attachment 6 Inspection Analysis
Attachment 7 August 23, 2017 - Pepe’s Towing Service Letter Requesting to be
added to the City’s Tow Rotation List
Attachment 8 October 19, 2017 - City Attorney Letter re: Application of Pepe’s
Towing
Attachment 9 October 20, 2017 - Pepe’s Towing Letter clarifying the request to
be added to the City’s Tow Rotation List
Attachment 10 November 13, 2017 - City Attorney Letter re: October 20, 2017
clarification from Pepe’s Towing
Attachment 11 November 13, 2017 - Pepe’s Tow Service Appeal
Attachment 12 November 27, 2017 - Pepe’s Tow Service First Amendment to
Appeal
Attachment 13 May 1, 2018 - Pepe’s Tow Service Second Amendment to Appeal
Ward: All
Synopsis of Previous Council Actions:
March 7, 2018, Resolution #2018-65 authorized the City Manager to initiate action to
establish an additional Tow Carrier to the Tow Service Agreement based on population
density of one carrier per 35,000 residents (population in 2016 was 216,239).
April 4, 2016, Resolution #2016-73 authorized Amendment Number Two of the Tow
Services Agreement (Resolution 2011-80) to be amended and extended the term of the
agreement for an additional five (5) years and updating franchise fees.
April 4, 2011, Resolution #2011-80 authorized the City Manager to execute Tow Service
Agreements with six (6) tow carriers (City Towing, Hayes Towing, Danny’s Towing, Tri-City
Towing, Big ‘Z’ Auto Works, and Wilson Towing). Each tow carrier was participating in the
program and operating within the incorporated boundaries of the City of San Bernardino.
The term of the agreement was five (5) years.
July 25, 2018 1:01 PM
26.a
Packet Pg. 651 Attachment: PD.Pepes Towing Staff Report 8-1-18 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to Municipal
MEMORANDUM
Date: July 2 4, 2018
To: Andrea M. Miller, City Manager
From: Jolena E. Grider, Cota Cole & Huber
Re: Pepe’s Towing Appeal
On July 18, 2018 at the Mayor and City Council Meeting, the Pepe’s Towing Appeal
hearing was held. During the hearing, the appellant referred to Resolution No. 2011-91, which
deleted the grandfathering language in Resolution 2005-286. This memorandum will explore
and define the affect this Resolution has going forward.
Resolution 2005-286, attached hereto for your convenience, established standard criteria
for towing carriers to provide services to the City of San Bernardino. Resolution 2005-286
specifically established criteria for both existing tow carriers (which are listed by name on page 6
of the Resolution) and for new towing carriers. It is important to note that the criteria is different
for the two types of tow carriers. Existing tow carriers were only required to have minimum
storage space for 200 vehicles and new tow carriers were required to have minimum outside
storage of 65,000 square feet.
There is a “Grandfathering” clause on page 7 of Resolution 2005-286 which states in
part “The minimum requirements…shall apply only to any and all towing carriers joining the
tow rotation after the effective date of this Resolution…Once a tow business has been sold or
transferred to a new owner, by whatever means…, there is no basis for continuing to allow the
business to operate under the discounted requirements, and the grandfathered status of said
business shall terminate”
It appears that the “grandfathering” clause was added to the Resolution to clarify that new
carriers would not be grandfathered in under the existing tow carrier requirements. This clause
was not used to give existing tow carriers (as defined on page 6) grandfather status, it was to
explicitly take away any argument a new tow carrier would have for being subject to the existing
tow carrier requirements.
Resolution 2011-80, attached hereto, authorized the City Manager to execute Tow
Services Agreements with the existing six tow carriers. The Resolution states that Resolution
2005-286 continues to govern operations under the Tow Services Agreements. The approved
agreements all reference the standard criteria for existing tow carriers established under
Resolution 2005-286.
1
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Packet Pg. 652 Attachment: PD.Pepes Towing.Attach 1.Memo -20180723133044 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017
Resolution 2011-91, attached hereto, amended Resolution 2005-286 by, among other
items, deleting the “Grandfathering” clause on page 7. It did not eliminate the criteria for
existing nor new tow carriers. The only affect the removal of the “Grandfathering” clause has is
to prohibit new tow carriers from claiming that they have grandfather status and should be
subject to the criteria applicable to existing tow carriers.
In light of all of the Resolutions identified above, the criteria listed in 2005-286 for
existing and new tow carriers still governs all of the agreements going forward until 2021.
Therefore, existing carriers are required to have minimum storage space for 200 vehicles, with a
minimum of twelve inside spaces and new carriers are required to have a minimum outside
storage space of 65,000 square feet capable of storing at least 200 vehicles.
Pepe’s application to be added to the Tow Rotation list was properly denied by the Police
Department/City Manager since they do not meet the minimum requirement of having a
minimum storage space of 65,000 square feet.
2
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Packet Pg. 653 Attachment: PD.Pepes Towing.Attach 1.Memo -20180723133044 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017
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Packet Pg. 730 Attachment: PD.Pepes Towing.Attach 4.Reso 2016-73 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to
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Packet Pg. 731 Attachment: PD.Pepes Towing.Attach 4.Reso 2016-73 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to
26.e
Packet Pg. 732 Attachment: PD.Pepes Towing.Attach 4.Reso 2016-73 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to
26.e
Packet Pg. 733 Attachment: PD.Pepes Towing.Attach 4.Reso 2016-73 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to
26.e
Packet Pg. 734 Attachment: PD.Pepes Towing.Attach 4.Reso 2016-73 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to
26.e
Packet Pg. 735 Attachment: PD.Pepes Towing.Attach 4.Reso 2016-73 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to
26.e
Packet Pg. 736 Attachment: PD.Pepes Towing.Attach 4.Reso 2016-73 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to
26.e
Packet Pg. 737 Attachment: PD.Pepes Towing.Attach 4.Reso 2016-73 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to
26.e
Packet Pg. 738 Attachment: PD.Pepes Towing.Attach 4.Reso 2016-73 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to
26.e
Packet Pg. 739 Attachment: PD.Pepes Towing.Attach 4.Reso 2016-73 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to
26.e
Packet Pg. 740 Attachment: PD.Pepes Towing.Attach 4.Reso 2016-73 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to
26.f
Packet Pg. 741 Attachment: PD.Pepes Towing.Attach 5.Reso 2018-065 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to
26.f
Packet Pg. 742 Attachment: PD.Pepes Towing.Attach 5.Reso 2018-065 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to
PD Pepe’s Towing Appeal Inspection Analysis
Armada Towing (Big Z) City Towing Danny's Towing Hayes Towing Tri-City Towing Wilson Towing
Facility Inspection Complies Complies Complies Complies Complies Complies
Business Office and Storage
Facilities Located within the
City Limits of San Bernardino
YES YES YES YES YES YES
Minimum Outdoor Storage
Space - (At Least 200 Vehicles) YES YES YES YES YES YES
65,000 Square feet Outdoor
Storage Space
YES
74,817
NO
23,492
NO
34,800
NO
42,593
YES
70,338
NO
29,830
Minimum Indoor Storage
Space - (At Least 5 Vehicles),
2000 Square Feet
YES YES YES YES YES YES
Minimum Indoor or Outdoor
Waiting Area – At Least 100
Square Feet Required
YES YES YES YES YES YES
Adequate Lighting of Outdoor
Storage Area YES YES YES YES YES YES
Security / Fencing Adequate
to Protect Vehicles from Theft
and Vandalism
YES YES YES YES YES YES
Monitored Alarm System (At
Least for Indoor Storage Area) YES YES YES YES YES YES
Business Hours Clearly Posted
for Viewing by Public YES YES YES YES YES YES
Improved Parking Surface YES *NO *NO *NO YES *NO
26.g
Packet Pg. 743 Attachment: PD.Pepes Towing.Attach 6.Appeal Analysis word doc (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017
PD Pepe’s Towing Appeal Inspection Analysis
Staffing and Personnel Complies Complies Complies Complies Complies Complies
One Person “On-Call” 24
Hours a Day YES YES YES YES YES YES
Adequate Staffing to Perform
Normal Tasks During Business
Hours
YES YES YES YES YES YES
Equipment and Permits Complies Complies Complies Complies Complies Complies
At least 3 Operating, Class A,
CHP Certified Tow Trucks YES YES YES YES YES YES
Tow Truck Equipment,
available and operable, as
verified by CHP Inspection
lists
YES YES YES YES YES YES
San Bernardino City Business
License YES YES YES YES YES YES
Hazardous Material Handler’s
Permit YES YES YES YES YES YES
Pull Notices for Drivers
Available YES YES YES YES YES YES
Certificate of Occupancy YES YES YES YES YES YES
Insurance Coverage Complies Complies Complies Complies Complies Complies
Bodily Injury and Property
Damage Insurance YES YES YES YES YES YES
Uninsured Motorist Insurance YES YES YES YES YES YES
On-Hook / Cargo Insurance YES YES YES YES YES YES
Garage Liability / Garage
Keeper’s Liability YES YES YES YES YES YES
26.g
Packet Pg. 744 Attachment: PD.Pepes Towing.Attach 6.Appeal Analysis word doc (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017
PD Pepe’s Towing Appeal Inspection Analysis
PD Pepe’s Towing Appeal Pictures during 2018 inspections
Armada Towing (Big Z)
Surface cracks Lighting on 07/21/18
City Towing
Fencing / Surface
Lighting Lighting on 07/21/18
26.g
Packet Pg. 745 Attachment: PD.Pepes Towing.Attach 6.Appeal Analysis word doc (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017
PD Pepe’s Towing Appeal Inspection Analysis
Danny’s Towing
Lighting Surface
Lighting on 07/21/18
Hayes Towing
Surface Lighting on 07/21/18
26.g
Packet Pg. 746 Attachment: PD.Pepes Towing.Attach 6.Appeal Analysis word doc (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017
PD Pepe’s Towing Appeal Inspection Analysis
Tri-City Towing
Lighting on 07/21/18
Wilson Towing
Surface
Lighting on 07/28/18 (unable to use drone due to SBIA)
26.g
Packet Pg. 747 Attachment: PD.Pepes Towing.Attach 6.Appeal Analysis word doc (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017
26.h
Packet Pg. 748 Attachment: PD.Pepes Towing.Attach 7.MilliganBeswickLevineKnox.2017-08-23docx (5686 : Appeal Filed by Pepe’s Towing Services on
26.h
Packet Pg. 749 Attachment: PD.Pepes Towing.Attach 7.MilliganBeswickLevineKnox.2017-08-23docx (5686 : Appeal Filed by Pepe’s Towing Services on
26.h
Packet Pg. 750 Attachment: PD.Pepes Towing.Attach 7.MilliganBeswickLevineKnox.2017-08-23docx (5686 : Appeal Filed by Pepe’s Towing Services on
26.h
Packet Pg. 751 Attachment: PD.Pepes Towing.Attach 7.MilliganBeswickLevineKnox.2017-08-23docx (5686 : Appeal Filed by Pepe’s Towing Services on
26.i
Packet Pg. 752 Attachment: PD.Pepes Towing.Attach 8.CityLetter 2017-10-19 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant
26.i
Packet Pg. 753 Attachment: PD.Pepes Towing.Attach 8.CityLetter 2017-10-19 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant
26.j
Packet Pg. 754 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 755 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 756 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 757 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 758 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 759 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 760 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 761 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 762 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 763 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 764 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 765 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 766 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 767 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 768 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 769 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 770 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 771 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 772 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 773 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 774 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 775 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 776 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 777 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 778 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 779 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 780 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 781 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 782 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 783 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.j
Packet Pg. 784 Attachment: PD.Pepes Towing.Attach 9.MilliganBeswickLevineKnoxAppLtr 2017-10-20 (5686 : Appeal Filed by Pepe’s Towing Services on
26.kPacket Pg. 785Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 786Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 787Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 788Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 789Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 790Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 791Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 792Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 793Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 794Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 795Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 796Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 797Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 798Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 799Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 800Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 801Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 802Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 803Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 804Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 805Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 806Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 807Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 808Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 809Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 810Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 811Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 812Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 813Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 814Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 815Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 816Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 817Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 818Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 819Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.kPacket Pg. 820Attachment: PD.Pepes Towing.Attach 10.MilliganBeswickLevineKnox.Notice to Appeal.2017-11-13docx (5686 : Appeal Filed by Pepe’s Towing
26.l
Packet Pg. 821 Attachment: PD.Pepes Towing.Attach 11.Clarification from Pepes tow.cityletter 2017-11-13 (5686 : Appeal Filed by Pepe’s Towing Services on
26.mPacket Pg. 822Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 823Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 824Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 825Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 826Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 827Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 828Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 829Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 830Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 831Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 832Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 833Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 834Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 835Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 836Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 837Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 838Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 839Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 840Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 841Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 842Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 843Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 844Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 845Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 846Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 847Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 848Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 849Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 850Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 851Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 852Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 853Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 854Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 855Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 856Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 857Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 858Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 859Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 860Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 861Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 862Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 863Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 864Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 865Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 866Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 867Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 868Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 869Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 870Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 871Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 872Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 873Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 874Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 875Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 876Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 877Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 878Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 879Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 880Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 881Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 882Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 883Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 884Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 885Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 886Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 887Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 888Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 889Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 890Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.mPacket Pg. 891Attachment: PD.Pepes Towing.Attach 12.MilliganBeswickLevineKnox.Notice of Amended Appeal.2017-11-27docx (5686 : Appeal Filed by
26.nPacket Pg. 892Attachment: PD.Pepes Towing.Attach 13..MilliganBeswickLevineKnox.Notice of Second Amended Appeal.2018-05-01docx (5686 : Appeal Filed
26.nPacket Pg. 893Attachment: PD.Pepes Towing.Attach 13..MilliganBeswickLevineKnox.Notice of Second Amended Appeal.2018-05-01docx (5686 : Appeal Filed
26.nPacket Pg. 894Attachment: PD.Pepes Towing.Attach 13..MilliganBeswickLevineKnox.Notice of Second Amended Appeal.2018-05-01docx (5686 : Appeal Filed
26.nPacket Pg. 895Attachment: PD.Pepes Towing.Attach 13..MilliganBeswickLevineKnox.Notice of Second Amended Appeal.2018-05-01docx (5686 : Appeal Filed
26.nPacket Pg. 896Attachment: PD.Pepes Towing.Attach 13..MilliganBeswickLevineKnox.Notice of Second Amended Appeal.2018-05-01docx (5686 : Appeal Filed
26.nPacket Pg. 897Attachment: PD.Pepes Towing.Attach 13..MilliganBeswickLevineKnox.Notice of Second Amended Appeal.2018-05-01docx (5686 : Appeal Filed