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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 Packet Pg. 45 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 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 Packet Pg. 46 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 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 Packet Pg. 47 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 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 Packet Pg. 48 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 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 Packet Pg. 49 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 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 Packet Pg. 50 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 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. 5.b Packet Pg. 51 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 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 Packet Pg. 52 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 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. 5.b Packet Pg. 53 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 13 Printed 7/18/2018 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. 5.b Packet Pg. 54 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 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 Packet Pg. 55 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 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 5.b Packet Pg. 56 Attachment: 07-18-18_Jt_Reg_gh_draft (5666 : City Council Approval of Draft Minutes) 6.a 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 Packet Pg. 58 Attachment: CM.Trans America Auto Logistics LLC Lease Staff Report (5667 : Commercial Lease with Trans America Auto Logistics, LLC for a 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. 6.a Packet Pg. 59 Attachment: CM.Trans America Auto Logistics LLC Lease Staff Report (5667 : Commercial Lease with Trans America Auto Logistics, LLC for a 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 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 6.b Packet Pg. 60 Attachment: CM.Trans America Auto Logistics LLC.Resolution (5667 : Commercial Lease with Trans America Auto Logistics, LLC for a Portion 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2 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 6.b Packet Pg. 61 Attachment: CM.Trans America Auto Logistics LLC.Resolution (5667 : Commercial Lease with Trans America Auto Logistics, LLC for a Portion 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3 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. 6.b Packet Pg. 62 Attachment: CM.Trans America Auto Logistics LLC.Resolution (5667 : Commercial Lease with Trans America Auto Logistics, LLC for a Portion 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4 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. / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / 6.b Packet Pg. 63 Attachment: CM.Trans America Auto Logistics LLC.Resolution (5667 : Commercial Lease with Trans America Auto Logistics, LLC for a Portion 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5 / / / / / / / / / 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 6.b Packet Pg. 64 Attachment: CM.Trans America Auto Logistics LLC.Resolution (5667 : Commercial Lease with Trans America Auto Logistics, LLC for a Portion 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6 By: 6.b Packet Pg. 65 Attachment: CM.Trans America Auto Logistics LLC.Resolution (5667 : Commercial Lease with Trans America Auto Logistics, LLC for a Portion 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 7 EXHIBIT “A” Commercial Lease With Trans America Auto Logistics, LLC (See Attachment) 6.b Packet Pg. 66 Attachment: CM.Trans America Auto Logistics LLC.Resolution (5667 : Commercial Lease with Trans America Auto Logistics, LLC for a Portion EXHIBIT A __________ __________ INITIALS Page 1 of 18 __________ __________ INITIALS 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. 6.c Packet Pg. 67 Attachment: CM.Trans_America_Auto_Logistics.Lease Agreement (5667 : Commercial Lease with Trans America Auto Logistics, LLC for a __________ __________ INITIALS Page 2 of 14 __________ __________ INITIALS 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 6.c Packet Pg. 68 Attachment: CM.Trans_America_Auto_Logistics.Lease Agreement (5667 : Commercial Lease with Trans America Auto Logistics, LLC for a __________ __________ INITIALS Page 3 of 14 __________ __________ INITIALS 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 6.c Packet Pg. 69 Attachment: CM.Trans_America_Auto_Logistics.Lease Agreement (5667 : Commercial Lease with Trans America Auto Logistics, LLC for a __________ __________ INITIALS Page 4 of 14 __________ __________ INITIALS 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 6.c Packet Pg. 70 Attachment: CM.Trans_America_Auto_Logistics.Lease Agreement (5667 : Commercial Lease with Trans America Auto Logistics, LLC for a __________ __________ INITIALS Page 5 of 14 __________ __________ INITIALS 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. 6.c Packet Pg. 71 Attachment: CM.Trans_America_Auto_Logistics.Lease Agreement (5667 : Commercial Lease with Trans America Auto Logistics, LLC for a __________ __________ INITIALS Page 6 of 14 __________ __________ INITIALS (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. 6.c Packet Pg. 72 Attachment: CM.Trans_America_Auto_Logistics.Lease Agreement (5667 : Commercial Lease with Trans America Auto Logistics, LLC for a __________ __________ INITIALS Page 7 of 14 __________ __________ INITIALS 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. 6.c Packet Pg. 73 Attachment: CM.Trans_America_Auto_Logistics.Lease Agreement (5667 : Commercial Lease with Trans America Auto Logistics, LLC for a __________ __________ INITIALS Page 8 of 14 __________ __________ INITIALS 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. 6.c Packet Pg. 74 Attachment: CM.Trans_America_Auto_Logistics.Lease Agreement (5667 : Commercial Lease with Trans America Auto Logistics, LLC for a __________ __________ INITIALS Page 9 of 14 __________ __________ INITIALS 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: 6.c Packet Pg. 75 Attachment: CM.Trans_America_Auto_Logistics.Lease Agreement (5667 : Commercial Lease with Trans America Auto Logistics, LLC for a __________ __________ INITIALS Page 10 of 14 __________ __________ INITIALS (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].. 6.c Packet Pg. 76 Attachment: CM.Trans_America_Auto_Logistics.Lease Agreement (5667 : Commercial Lease with Trans America Auto Logistics, LLC for a __________ __________ INITIALS Page 11 of 14 __________ __________ INITIALS 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. 6.c Packet Pg. 77 Attachment: CM.Trans_America_Auto_Logistics.Lease Agreement (5667 : Commercial Lease with Trans America Auto Logistics, LLC for a __________ __________ INITIALS Page 12 of 14 __________ __________ INITIALS (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 6.c Packet Pg. 78 Attachment: CM.Trans_America_Auto_Logistics.Lease Agreement (5667 : Commercial Lease with Trans America Auto Logistics, LLC for a __________ __________ INITIALS Page 13 of 14 __________ __________ INITIALS 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. 6.c Packet Pg. 79 Attachment: CM.Trans_America_Auto_Logistics.Lease Agreement (5667 : Commercial Lease with Trans America Auto Logistics, LLC for a __________ __________ INITIALS Page 14 of 14 __________ __________ INITIALS 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) 6.c Packet Pg. 80 Attachment: CM.Trans_America_Auto_Logistics.Lease Agreement (5667 : Commercial Lease with Trans America Auto Logistics, LLC for a __________ __________ INITIALS Page 15 of 14 __________ __________ INITIALS 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] 6.c Packet Pg. 81 Attachment: CM.Trans_America_Auto_Logistics.Lease Agreement (5667 : Commercial Lease with Trans America Auto Logistics, LLC for a EXHIBIT A __________ __________ INITIALS EXHIBIT A Page 1 of 1 __________ __________ INITIALS EXHIBIT A MAP OF PREMISES 6.c Packet Pg. 82 Attachment: CM.Trans_America_Auto_Logistics.Lease Agreement (5667 : Commercial Lease with Trans __________ __________ INITIALS Page 2 of 14 __________ __________ INITIALS 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. 6.c Packet Pg. 83 Attachment: CM.Trans_America_Auto_Logistics.Lease Agreement (5667 : Commercial Lease with Trans __________ __________ INITIALS Page 3 of 14 __________ __________ INITIALS 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. 6.c Packet Pg. 84 Attachment: CM.Trans_America_Auto_Logistics.Lease Agreement (5667 : Commercial Lease with Trans 7.a 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 7.a 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 7.a 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 7.a Packet Pg. 88 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations Award.REPORT (5668 : Award of Construction Contract for Pavement 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 7.b Packet Pg. 89 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations Award.RESOLUTION-Attachment 1 (5668 : Award of Construction Contract for 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// 7.b Packet Pg. 90 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations Award.RESOLUTION-Attachment 1 (5668 : Award of Construction Contract for 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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: 7.b Packet Pg. 91 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations Award.RESOLUTION-Attachment 1 (5668 : Award of Construction Contract for 7.c Packet Pg. 92 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations. Bid Tabulation- Attachment 2 (5668 : Award of Construction Contract for 7.c Packet Pg. 93 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations. Bid Tabulation- Attachment 2 (5668 : Award of Construction Contract for 7.c Packet Pg. 94 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations. Bid Tabulation- Attachment 2 (5668 : Award of Construction Contract for 7.c Packet Pg. 95 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations. Bid Tabulation- Attachment 2 (5668 : Award of Construction Contract for 7.c Packet Pg. 96 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations. Bid Tabulation- Attachment 2 (5668 : Award of Construction Contract for 7.c Packet Pg. 97 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations. Bid Tabulation- Attachment 2 (5668 : Award of Construction Contract for 7.c Packet Pg. 98 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations. Bid Tabulation- Attachment 2 (5668 : Award of Construction Contract for 7.c Packet Pg. 99 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations. Bid Tabulation- Attachment 2 (5668 : Award of Construction Contract for 7.c Packet Pg. 100 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations. Bid Tabulation- Attachment 2 (5668 : Award of Construction Contract for 7.c Packet Pg. 101 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations. Bid Tabulation- Attachment 2 (5668 : Award of Construction Contract for 7.c Packet Pg. 102 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations. Bid Tabulation- Attachment 2 (5668 : Award of Construction Contract for 7.c Packet Pg. 103 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations. Bid Tabulation- Attachment 2 (5668 : Award of Construction Contract for 7.d Packet Pg. 104 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Bid Form-Attachment 3 (5668 : Award of Construction Contract for Pavement 7.d Packet Pg. 105 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Bid Form-Attachment 3 (5668 : Award of Construction Contract for Pavement 7.d Packet Pg. 106 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Bid Form-Attachment 3 (5668 : Award of Construction Contract for Pavement 7.d Packet Pg. 107 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Bid Form-Attachment 3 (5668 : Award of Construction Contract for Pavement 7.d Packet Pg. 108 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Bid Form-Attachment 3 (5668 : Award of Construction Contract for Pavement 7.d Packet Pg. 109 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Bid Form-Attachment 3 (5668 : Award of Construction Contract for Pavement 7.d Packet Pg. 110 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Bid Form-Attachment 3 (5668 : Award of Construction Contract for Pavement 7.d Packet Pg. 111 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Bid Form-Attachment 3 (5668 : Award of Construction Contract for Pavement 7.d Packet Pg. 112 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Bid Form-Attachment 3 (5668 : Award of Construction Contract for Pavement 7.d Packet Pg. 113 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Bid Form-Attachment 3 (5668 : Award of Construction Contract for Pavement 7.d Packet Pg. 114 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Bid Form-Attachment 3 (5668 : Award of Construction Contract for Pavement 7.d Packet Pg. 115 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Bid Form-Attachment 3 (5668 : Award of Construction Contract for Pavement 7.d Packet Pg. 116 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Bid Form-Attachment 3 (5668 : Award of Construction Contract for Pavement 7.d Packet Pg. 117 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Bid Form-Attachment 3 (5668 : Award of Construction Contract for Pavement 7.d Packet Pg. 118 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Bid Form-Attachment 3 (5668 : Award of Construction Contract for Pavement 7.d Packet Pg. 119 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Bid Form-Attachment 3 (5668 : Award of Construction Contract for Pavement 7.d Packet Pg. 120 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Bid Form-Attachment 3 (5668 : Award of Construction Contract for Pavement 7.d Packet Pg. 121 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Bid Form-Attachment 3 (5668 : Award of Construction Contract for Pavement 7.d Packet Pg. 122 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Bid Form-Attachment 3 (5668 : Award of Construction Contract for Pavement 7.d Packet Pg. 123 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Bid Form-Attachment 3 (5668 : Award of Construction Contract for Pavement 7.d Packet Pg. 124 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Bid Form-Attachment 3 (5668 : Award of Construction Contract for Pavement 7.d Packet Pg. 125 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Bid Form-Attachment 3 (5668 : Award of Construction Contract for Pavement 7.d Packet Pg. 126 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Bid Form-Attachment 3 (5668 : Award of Construction Contract for Pavement 7.d Packet Pg. 127 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Bid Form-Attachment 3 (5668 : Award of Construction Contract for Pavement 7.d Packet Pg. 128 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Bid Form-Attachment 3 (5668 : Award of Construction Contract for Pavement 7.d Packet Pg. 129 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Bid Form-Attachment 3 (5668 : Award of Construction Contract for Pavement 7.d Packet Pg. 130 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Bid Form-Attachment 3 (5668 : Award of Construction Contract for Pavement 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 7.e Packet Pg. 131 Attachment: PW.Matich.Pavement Rehabilitation Pavement Rehabilitation Locations- attachment 4 (5668 : Award of Construction Contract for 7.f Packet Pg. 132 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Agreement-Attachment 5 (5668 : Award of Construction Contract for 7.f Packet Pg. 133 Attachment: PW.Matich.Pavement Rehabilitation at 10 Locations.Agreement-Attachment 5 (5668 : Award of Construction Contract for 8.a 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 8.a Packet Pg. 135 Attachment: PW.Co-op Agreem - County for Street Rehabilitation.REPORT (5669 : Cooperative Agreement with the County of San Bernardino 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. /// /// /// /// /// /// /// /// /// /// /// 1 8.b Packet Pg. 136 Attachment: PW.Co-op Agreem - County for Street Rehabilitation.RESOLUTION (5669 : Cooperative Agreement with the County of San 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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: _________________________ 2 8.b 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 8.c Packet Pg. 138 Attachment: PW.Co-op Agreem - County for Street Rehabilitation.EXHIBIT A AGREEMENT (5669 : Cooperative Agreement with the County of 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 Revised 10/18/17 Page 2 of 7 8.c Packet Pg. 139 Attachment: PW.Co-op Agreem - County for Street Rehabilitation.EXHIBIT A AGREEMENT (5669 : Cooperative Agreement with the County of 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 Revised 10/18/17 Page 3 of 7 8.c Packet Pg. 140 Attachment: PW.Co-op Agreem - County for Street Rehabilitation.EXHIBIT A AGREEMENT (5669 : Cooperative Agreement with the County of 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. Revised 10/18/17 Page 4 of 7 8.c Packet Pg. 141 Attachment: PW.Co-op Agreem - County for Street Rehabilitation.EXHIBIT A AGREEMENT (5669 : Cooperative Agreement with the County of 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 8.c Packet Pg. 142 Attachment: PW.Co-op Agreem - County for Street Rehabilitation.EXHIBIT A AGREEMENT (5669 : Cooperative Agreement with the County of 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 8.c Packet Pg. 143 Attachment: PW.Co-op Agreem - County for Street Rehabilitation.EXHIBIT A AGREEMENT (5669 : Cooperative Agreement with the County of 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 8.c Packet Pg. 144 Attachment: PW.Co-op Agreem - County for Street Rehabilitation.EXHIBIT A AGREEMENT (5669 : Cooperative Agreement with the County of 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 8.dPacket Pg. 145Attachment: PW.Co-op Agreem - County for Street Rehabilitation.Attach A (5669 : Cooperative Agreement with the County of San Bernardino 9.a Packet Pg. 146 Attachment: PW. Consultant Service Agreement with H&FH Consulting LLC.REPORT (5670 : First Amendment to the HF&H Consulting, LLC 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 9.a Packet Pg. 147 Attachment: PW. Consultant Service Agreement with H&FH Consulting LLC.REPORT (5670 : First Amendment to the HF&H Consulting, LLC 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 9.b Packet Pg. 148 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Amendment.EXHIBIT A (5670 : First Amendment to the HF&H 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 9.b Packet Pg. 149 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Amendment.EXHIBIT A (5670 : First Amendment to the HF&H 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 9.b Packet Pg. 150 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Amendment.EXHIBIT A (5670 : First Amendment to the HF&H 9.c Packet Pg. 151 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 9.c Packet Pg. 152 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 9.c Packet Pg. 153 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 9.c Packet Pg. 154 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 9.c Packet Pg. 155 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 9.c Packet Pg. 156 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 9.c Packet Pg. 157 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 9.c Packet Pg. 158 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 9.c Packet Pg. 159 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 9.c Packet Pg. 160 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 9.c Packet Pg. 161 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 9.c Packet Pg. 162 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 9.c Packet Pg. 163 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 9.c Packet Pg. 164 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 9.c Packet Pg. 165 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 9.c Packet Pg. 166 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 9.c Packet Pg. 167 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 9.c Packet Pg. 168 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 9.c Packet Pg. 169 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 9.c Packet Pg. 170 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 9.c Packet Pg. 171 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 9.c Packet Pg. 172 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 9.c Packet Pg. 173 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 9.c Packet Pg. 174 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 9.c Packet Pg. 175 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 9.c Packet Pg. 176 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 9.c Packet Pg. 177 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 9.c Packet Pg. 178 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC Original.EXHIBIT B (5670 : First Amendment to the HF&H 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 9.d Packet Pg. 179 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC.RESOLUTION.doc (5670 : First Amendment to the HF&H 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 9.d Packet Pg. 180 Attachment: PW. Consultant Service Agreement with HF&H Consulting LLC.RESOLUTION.doc (5670 : First Amendment to the HF&H 10.a 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 10.a Packet Pg. 182 Attachment: PW.Co-op Agreem - Highland for Street Rehabilitation.REPORT (5671 : Cooperative Agreement with the City of Highland for Six 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 10.a Packet Pg. 183 Attachment: PW.Co-op Agreem - Highland for Street Rehabilitation.REPORT (5671 : Cooperative Agreement with the City of Highland for Six 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. /// /// /// /// /// /// /// 1 10.b Packet Pg. 184 Attachment: PW.Co-op Agreem - Highland for Street Rehabilitation.RESOLUTION (5671 : Cooperative Agreement with the City of Highland for 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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: _________________________ 2 10.b Packet Pg. 185 Attachment: PW.Co-op Agreem - Highland for Street Rehabilitation.RESOLUTION (5671 : Cooperative Agreement with the City of Highland for 1 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 10.c Packet Pg. 186 Attachment: PW.Co-op Agreem - Highland for Street Rehabilitation.AGREEMENT (5671 : Cooperative Agreement with the City of Highland for 2 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; 10.c Packet Pg. 187 Attachment: PW.Co-op Agreem - Highland for Street Rehabilitation.AGREEMENT (5671 : Cooperative Agreement with the City of Highland for 3 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; 10.c Packet Pg. 188 Attachment: PW.Co-op Agreem - Highland for Street Rehabilitation.AGREEMENT (5671 : Cooperative Agreement with the City of Highland for 4 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: 10.c Packet Pg. 189 Attachment: PW.Co-op Agreem - Highland for Street Rehabilitation.AGREEMENT (5671 : Cooperative Agreement with the City of Highland for 5 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: 10.c Packet Pg. 190 Attachment: PW.Co-op Agreem - Highland for Street Rehabilitation.AGREEMENT (5671 : Cooperative Agreement with the City of Highland for 6 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. 10.c Packet Pg. 191 Attachment: PW.Co-op Agreem - Highland for Street Rehabilitation.AGREEMENT (5671 : Cooperative Agreement with the City of Highland for 7 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. 10.c Packet Pg. 192 Attachment: PW.Co-op Agreem - Highland for Street Rehabilitation.AGREEMENT (5671 : Cooperative Agreement with the City of Highland for 8 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 10.c Packet Pg. 193 Attachment: PW.Co-op Agreem - Highland for Street Rehabilitation.AGREEMENT (5671 : Cooperative Agreement with the City of Highland for 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. 10.d Packet Pg. 194 Attachment: PW.Co-op Agreem - Highland for Street Rehabilitation.EXHIBIT A (5671 : Cooperative Agreement with the City of Highland for Six 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. 10.d Packet Pg. 195 Attachment: PW.Co-op Agreem - Highland for Street Rehabilitation.EXHIBIT A (5671 : Cooperative Agreement with the City of Highland for Six 10.e Packet Pg. 196 Attachment: PW.Co-op Agreem - Highland for Street Rehabilitation.EXHIBIT B (5671 : Cooperative Agreement with the City of Highland for Six 10.e Packet Pg. 197 Attachment: PW.Co-op Agreem - Highland for Street Rehabilitation.EXHIBIT B (5671 : Cooperative Agreement with the City of Highland for Six 10.e Packet Pg. 198 Attachment: PW.Co-op Agreem - Highland for Street Rehabilitation.EXHIBIT B (5671 : Cooperative Agreement with the City of Highland for Six 10.e Packet Pg. 199 Attachment: PW.Co-op Agreem - Highland for Street Rehabilitation.EXHIBIT B (5671 : Cooperative Agreement with the City of Highland for Six 10.e Packet Pg. 200 Attachment: PW.Co-op Agreem - Highland for Street Rehabilitation.EXHIBIT B (5671 : Cooperative Agreement with the City of Highland for Six 10.e Packet Pg. 201 Attachment: PW.Co-op Agreem - Highland for Street Rehabilitation.EXHIBIT B (5671 : Cooperative Agreement with the City of Highland for Six 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 11.a Packet Pg. 203 Attachment: IT.services agreement NPA-staff report (5672 : Authorize the Execution of a Vendor Services Agreement and Issue a Purchase 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 11.a Packet Pg. 204 Attachment: IT.services agreement NPA-staff report (5672 : Authorize the Execution of a Vendor Services Agreement and Issue a Purchase 11.b Packet Pg. 205 Attachment: IT.services agreement NPA-Response (5672 : Authorize the Execution of a Vendor Services Agreement and Issue a Purchase 11.b Packet Pg. 206 Attachment: IT.services agreement NPA-Response (5672 : Authorize the Execution of a Vendor Services Agreement and Issue a Purchase 11.b Packet Pg. 207 Attachment: IT.services agreement NPA-Response (5672 : Authorize the Execution of a Vendor Services Agreement and Issue a Purchase 11.b Packet Pg. 208 Attachment: IT.services agreement NPA-Response (5672 : Authorize the Execution of a Vendor Services Agreement and Issue a Purchase 11.b Packet Pg. 209 Attachment: IT.services agreement NPA-Response (5672 : Authorize the Execution of a Vendor Services Agreement and Issue a Purchase 11.b Packet Pg. 210 Attachment: IT.services agreement NPA-Response (5672 : Authorize the Execution of a Vendor Services Agreement and Issue a Purchase 11.b Packet Pg. 211 Attachment: IT.services agreement NPA-Response (5672 : Authorize the Execution of a Vendor Services Agreement and Issue a Purchase 11.b Packet Pg. 212 Attachment: IT.services agreement NPA-Response (5672 : Authorize the Execution of a Vendor Services Agreement and Issue a Purchase 11.b Packet Pg. 213 Attachment: IT.services agreement NPA-Response (5672 : Authorize the Execution of a Vendor Services Agreement and Issue a Purchase 11.b Packet Pg. 214 Attachment: IT.services agreement NPA-Response (5672 : Authorize the Execution of a Vendor Services Agreement and Issue a Purchase 11.b Packet Pg. 215 Attachment: IT.services agreement NPA-Response (5672 : Authorize the Execution of a Vendor Services Agreement and Issue a Purchase 11.b Packet Pg. 216 Attachment: IT.services agreement NPA-Response (5672 : Authorize the Execution 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Purchase 11.b Packet Pg. 243 Attachment: IT.services agreement NPA-Response (5672 : Authorize the Execution of a Vendor Services Agreement and Issue a Purchase 11.b Packet Pg. 244 Attachment: IT.services agreement NPA-Response (5672 : Authorize the Execution of a Vendor Services Agreement and Issue a Purchase 11.b Packet Pg. 245 Attachment: IT.services agreement NPA-Response (5672 : Authorize the Execution of a Vendor Services Agreement and Issue a Purchase 11.b Packet Pg. 246 Attachment: IT.services agreement NPA-Response (5672 : Authorize the Execution of a Vendor Services Agreement and Issue a Purchase 11.b Packet Pg. 247 Attachment: IT.services agreement NPA-Response (5672 : Authorize the Execution of a Vendor Services Agreement and Issue a Purchase 11.b Packet Pg. 248 Attachment: IT.services agreement NPA-Response (5672 : Authorize the Execution of a Vendor Services Agreement and Issue a Purchase 11.b Packet Pg. 249 Attachment: IT.services agreement NPA-Response (5672 : Authorize the Execution of a Vendor Services Agreement and Issue a Purchase 11.b Packet Pg. 250 Attachment: IT.services agreement NPA-Response (5672 : Authorize the Execution of a Vendor Services Agreement and Issue a Purchase 11.b Packet Pg. 251 Attachment: IT.services agreement NPA-Response (5672 : Authorize the Execution of a Vendor Services Agreement and Issue a Purchase 11.b Packet Pg. 252 Attachment: IT.services agreement NPA-Response (5672 : Authorize the Execution of a Vendor Services Agreement and Issue a Purchase 11.b Packet Pg. 253 Attachment: IT.services agreement NPA-Response (5672 : Authorize the Execution of a Vendor Services Agreement and Issue a Purchase 11.b Packet Pg. 254 Attachment: IT.services agreement NPA-Response (5672 : Authorize the Execution of a Vendor Services Agreement and Issue a Purchase 11.b Packet Pg. 255 Attachment: IT.services agreement NPA-Response (5672 : Authorize the Execution of a Vendor Services Agreement and Issue a Purchase 11.b Packet Pg. 256 Attachment: IT.services agreement NPA-Response (5672 : Authorize the Execution of a Vendor Services Agreement and Issue a Purchase Attachment 2 TITLE: Vendors Services Agreement 11.c Packet Pg. 257 Attachment: IT.services agreement NPA-Vendor Service Agreement (5672 : Authorize the Execution of a Vendor Services Agreement and Issue 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 11.c Packet Pg. 258 Attachment: IT.services agreement NPA-Vendor Service Agreement (5672 : Authorize the Execution of a Vendor Services Agreement and Issue 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 11.c Packet Pg. 259 Attachment: IT.services agreement NPA-Vendor Service Agreement (5672 : Authorize the Execution of a Vendor Services Agreement and Issue 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 11.c Packet Pg. 260 Attachment: IT.services agreement NPA-Vendor Service Agreement (5672 : Authorize the Execution of a Vendor Services Agreement and Issue 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 11.c Packet Pg. 261 Attachment: IT.services agreement NPA-Vendor Service Agreement (5672 : Authorize the Execution of a Vendor Services Agreement and Issue 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 11.c Packet Pg. 262 Attachment: IT.services agreement NPA-Vendor Service Agreement (5672 : Authorize the Execution of a Vendor Services Agreement and Issue 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. 11.c Packet Pg. 263 Attachment: IT.services agreement NPA-Vendor Service Agreement (5672 : Authorize the Execution of a Vendor Services Agreement and Issue 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: 11.c Packet Pg. 264 Attachment: IT.services agreement NPA-Vendor Service Agreement (5672 : Authorize the Execution of a Vendor Services Agreement and Issue 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 11.c Packet Pg. 265 Attachment: IT.services agreement NPA-Vendor Service Agreement (5672 : Authorize the Execution of a Vendor Services Agreement and Issue 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 11.c Packet Pg. 266 Attachment: IT.services agreement NPA-Vendor Service Agreement (5672 : Authorize the Execution of a Vendor Services Agreement and Issue 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 11.c 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. /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// 11.c Packet Pg. 268 Attachment: IT.services agreement NPA-Vendor Service Agreement (5672 : Authorize the Execution of a Vendor Services Agreement and Issue 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: 11.c Packet Pg. 269 Attachment: IT.services agreement NPA-Vendor Service Agreement (5672 : Authorize the Execution of a Vendor Services Agreement and Issue 12.a 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 12.a Packet Pg. 271 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.REPORT (5673 : FY 2018/19 Senior Companion Program Grant Funding 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. / / / 12.b Packet Pg. 272 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.RESOLUTION (5673 : FY 2018/19 Senior Companion Program Grant 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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: 12.b Packet Pg. 273 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.RESOLUTION (5673 : FY 2018/19 Senior Companion Program Grant 12.c Packet Pg. 274 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.ATTACHMENT 1. EXHIBIT A SCP 2018-2021 Application For Federal 12.c Packet Pg. 275 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.ATTACHMENT 1. EXHIBIT A SCP 2018-2021 Application For Federal 12.c Packet Pg. 276 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.ATTACHMENT 1. EXHIBIT A SCP 2018-2021 Application For Federal 12.c Packet Pg. 277 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.ATTACHMENT 1. EXHIBIT A SCP 2018-2021 Application For Federal 12.c Packet Pg. 278 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.ATTACHMENT 1. EXHIBIT A SCP 2018-2021 Application For Federal 12.c Packet Pg. 279 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.ATTACHMENT 1. EXHIBIT A SCP 2018-2021 Application For Federal 12.c Packet Pg. 280 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.ATTACHMENT 1. EXHIBIT A SCP 2018-2021 Application For Federal 12.c Packet Pg. 281 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.ATTACHMENT 1. EXHIBIT A SCP 2018-2021 Application For Federal 12.c Packet Pg. 282 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.ATTACHMENT 1. EXHIBIT A SCP 2018-2021 Application For Federal 12.c Packet Pg. 283 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.ATTACHMENT 1. EXHIBIT A SCP 2018-2021 Application For Federal 12.c Packet Pg. 284 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.ATTACHMENT 1. EXHIBIT A SCP 2018-2021 Application For Federal 12.c Packet Pg. 285 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.ATTACHMENT 1. EXHIBIT A SCP 2018-2021 Application For Federal 12.c Packet Pg. 286 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.ATTACHMENT 1. EXHIBIT A SCP 2018-2021 Application For Federal 12.c Packet Pg. 287 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.ATTACHMENT 1. EXHIBIT A SCP 2018-2021 Application For Federal 12.c Packet Pg. 288 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.ATTACHMENT 1. EXHIBIT A SCP 2018-2021 Application For Federal 12.c Packet Pg. 289 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.ATTACHMENT 1. EXHIBIT A SCP 2018-2021 Application For Federal 12.d Packet Pg. 290 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.ATTACHMENT 2. SCP FY2018-2019 Grant Budget & Budget Narrative 12.d Packet Pg. 291 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.ATTACHMENT 2. SCP FY2018-2019 Grant Budget & Budget Narrative 12.d Packet Pg. 292 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.ATTACHMENT 2. SCP FY2018-2019 Grant Budget & Budget Narrative 12.d Packet Pg. 293 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.ATTACHMENT 2. SCP FY2018-2019 Grant Budget & Budget Narrative 12.d Packet Pg. 294 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.ATTACHMENT 2. SCP FY2018-2019 Grant Budget & Budget Narrative 12.e Packet Pg. 295 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.ATTACHMENT 3. SCP FY2018-2019 Notice of Grant Award (5673 : FY 12.e Packet Pg. 296 Attachment: PR.2018-19 Senior Companion Program Grant Allocation.ATTACHMENT 3. SCP FY2018-2019 Notice of Grant Award (5673 : FY -•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 - 13.a Packet Pg. 297 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.REPORT (5674 : FY 2018/19 Senior Nutrition Program Grant Funding – Third Year 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 13.a 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 13.a Packet Pg. 299 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.REPORT (5674 : FY 2018/19 Senior Nutrition Program Grant Funding – Third Year 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 13.b Packet Pg. 300 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.RESOLUTION (5674 : FY 2018/19 Senior Nutrition Program Grant Funding – Third 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// 13.b Packet Pg. 301 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.RESOLUTION (5674 : FY 2018/19 Senior Nutrition Program Grant Funding – Third 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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: 13.b Packet Pg. 302 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.RESOLUTION (5674 : FY 2018/19 Senior Nutrition Program Grant Funding – Third 13.c Packet Pg. 303 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 304 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 305 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 306 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 307 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 308 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 309 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 310 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 311 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 312 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 313 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 314 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 315 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 316 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 317 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 318 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 319 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 320 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 321 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 322 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 323 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 324 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 325 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 326 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 327 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 328 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 329 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 330 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 331 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 332 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 333 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 334 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 335 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 336 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 337 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 338 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 339 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 340 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 341 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 342 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 343 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 344 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 345 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 346 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 347 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 348 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 349 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 350 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 351 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 352 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 353 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 354 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 355 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 356 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 357 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 358 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 359 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 360 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 361 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 362 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 363 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 364 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 365 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 366 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 367 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 368 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 13.c Packet Pg. 369 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 1 EXHIBIT A. County Contract 16-389 (5674 : FY 2018/19 Senior 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14''. 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 13.e Packet Pg. 371 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 3- Reso. No. 2017-151 (5674 : FY 2018/19 Senior Nutrition Program 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 111 2 13.e Packet Pg. 372 Attachment: PR.Senior Nutrition Program 3rd Year Renewal.ATTACHMENT 3- Reso. No. 2017-151 (5674 : FY 2018/19 Senior Nutrition Program 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 13.e 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. /// /// /// /// /// /// /// 1 14.c Packet Pg. 377 Attachment: PD-WestCoastLightsSirens reso (5675 : Authorize Execution of Vendor Services Agreement and Purchase Order to West Coast 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 14.c 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 14.e 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// 2 15.b Packet Pg. 403 Attachment: PD. Imposing Liens to Recover Costs for Code Enforcement-Resolution (5676 : Imposing Liens to Recover Costs for Code 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2 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) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3 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. / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / 16.b Packet Pg. 410 Attachment: HR.Health Benefits Plan Year 2019 - Attachment 1 - Resolution (5677 : Health Benefits Plan Year 2019) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4 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) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 1 17.b Packet Pg. 414 Attachment: CD.DCA 17-09 Final Reading.A1.Ordinance (5678 : Development Code Amendment/Zoning Map Amendment 17-09) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 2 17.b Packet Pg. 415 Attachment: CD.DCA 17-09 Final Reading.A1.Ordinance (5678 : Development Code Amendment/Zoning Map Amendment 17-09) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. /// /// /// /// /// /// /// /// /// /// /// /// /// 3 17.b Packet Pg. 416 Attachment: CD.DCA 17-09 Final Reading.A1.Ordinance (5678 : Development Code Amendment/Zoning Map Amendment 17-09) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. /// /// /// /// /// /// /// /// /// /// /// /// /// /// 19.b Packet Pg. 438 Attachment: FN-Agreement Franchise Tax Board for Reciprocal Data Sharing.Resolution (5680 : Agreement with the Franchise Tax Board for 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 19.c 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. 19.c 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. 19.c 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 19.c 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. 19.c 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. 7/26/2018 12:55 PM 22.a Packet Pg. 469 Attachment: CM.City Attorney Services Ad Hoc Recommendations Report.Final (5683 : Municipal Legal Services) 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: 7/26/2018 12:55 PM 22.a Packet Pg. 470 Attachment: CM.City Attorney Services Ad Hoc Recommendations Report.Final (5683 : Municipal Legal Services) 22.b Packet Pg. 471 Attachment: CM.City Attorney Services Proposal.Attachment.docx (5683 : Municipal Legal Services) 22.b Packet Pg. 472 Attachment: CM.City Attorney Services Proposal.Attachment.docx (5683 : Municipal Legal Services) 22.b Packet Pg. 473 Attachment: CM.City Attorney Services Proposal.Attachment.docx (5683 : Municipal Legal Services) 22.b Packet Pg. 474 Attachment: CM.City Attorney Services Proposal.Attachment.docx (5683 : Municipal Legal Services) 22.b Packet Pg. 475 Attachment: CM.City Attorney Services Proposal.Attachment.docx (5683 : Municipal Legal Services) 22.b Packet Pg. 476 Attachment: CM.City Attorney Services Proposal.Attachment.docx (5683 : Municipal Legal Services) 22.b Packet Pg. 477 Attachment: CM.City Attorney Services Proposal.Attachment.docx (5683 : Municipal Legal Services) 22.b Packet Pg. 478 Attachment: CM.City Attorney Services Proposal.Attachment.docx (5683 : Municipal Legal Services) 22.b Packet Pg. 479 Attachment: CM.City Attorney Services Proposal.Attachment.docx (5683 : Municipal Legal Services) 22.b Packet Pg. 480 Attachment: CM.City Attorney Services Proposal.Attachment.docx (5683 : Municipal Legal Services) 22.b Packet Pg. 481 Attachment: CM.City Attorney Services Proposal.Attachment.docx (5683 : Municipal Legal Services) 22.b Packet Pg. 482 Attachment: CM.City Attorney Services Proposal.Attachment.docx (5683 : Municipal Legal Services) 22.b Packet Pg. 483 Attachment: CM.City Attorney Services Proposal.Attachment.docx (5683 : Municipal Legal Services) 22.b Packet Pg. 484 Attachment: CM.City Attorney Services Proposal.Attachment.docx (5683 : Municipal Legal Services) 22.b Packet Pg. 485 Attachment: CM.City Attorney Services Proposal.Attachment.docx (5683 : Municipal Legal Services) 22.b Packet Pg. 486 Attachment: CM.City Attorney Services Proposal.Attachment.docx (5683 : Municipal Legal Services) 22.b Packet Pg. 487 Attachment: CM.City Attorney Services Proposal.Attachment.docx (5683 : Municipal Legal Services) 22.b Packet Pg. 488 Attachment: CM.City Attorney Services Proposal.Attachment.docx (5683 : Municipal Legal Services) 22.b Packet Pg. 489 Attachment: CM.City Attorney Services Proposal.Attachment.docx (5683 : Municipal Legal Services) 22.b Packet Pg. 490 Attachment: CM.City Attorney Services Proposal.Attachment.docx (5683 : Municipal Legal Services) 22.b Packet Pg. 491 Attachment: CM.City Attorney Services Proposal.Attachment.docx (5683 : Municipal Legal Services) 22.b Packet Pg. 492 Attachment: CM.City Attorney Services Proposal.Attachment.docx (5683 : Municipal Legal Services) 22.b Packet Pg. 493 Attachment: CM.City Attorney Services Proposal.Attachment.docx (5683 : Municipal Legal Services) 22.b Packet Pg. 494 Attachment: CM.City Attorney Services Proposal.Attachment.docx (5683 : Municipal Legal Services) 22.b Packet Pg. 495 Attachment: CM.City Attorney Services Proposal.Attachment.docx (5683 : Municipal Legal Services) 22.b Packet Pg. 496 Attachment: CM.City Attorney Services Proposal.Attachment.docx (5683 : Municipal Legal Services) 22.b Packet Pg. 497 Attachment: CM.City Attorney Services Proposal.Attachment.docx (5683 : Municipal Legal Services) 23.a Packet Pg. 498 Attachment: CD.Cannabis.1.StaffReport (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 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 7/25/2018 9:57 AM 23.a Packet Pg. 499 Attachment: CD.Cannabis.1.StaffReport (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 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 7/25/2018 9:57 AM 23.a Packet Pg. 500 Attachment: CD.Cannabis.1.StaffReport (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 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. 7/25/2018 9:57 AM 23.a Packet Pg. 501 Attachment: CD.Cannabis.1.StaffReport (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 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. 7/25/2018 9:57 AM 23.a Packet Pg. 502 Attachment: CD.Cannabis.1.StaffReport (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis  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, 7/25/2018 9:57 AM 23.a Packet Pg. 503 Attachment: CD.Cannabis.1.StaffReport (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 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: 7/25/2018 9:57 AM 23.a Packet Pg. 504 Attachment: CD.Cannabis.1.StaffReport (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 00060302.1 Page 1 of 9 23.b Packet Pg. 505 Attachment: CD.Cannabis.2.Reg.Reso2018-227 (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 00060302.1 Page 2 of 9 23.b Packet Pg. 506 Attachment: CD.Cannabis.2.Reg.Reso2018-227 (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 00060302.1 Page 3 of 9 23.b Packet Pg. 507 Attachment: CD.Cannabis.2.Reg.Reso2018-227 (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 00060302.1 Page 4 of 9 23.b Packet Pg. 508 Attachment: CD.Cannabis.2.Reg.Reso2018-227 (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 00060302.1 Page 5 of 9 23.b Packet Pg. 509 Attachment: CD.Cannabis.2.Reg.Reso2018-227 (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 00060302.1 Page 6 of 9 23.b Packet Pg. 510 Attachment: CD.Cannabis.2.Reg.Reso2018-227 (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 00060302.1 Page 7 of 9 23.b Packet Pg. 511 Attachment: CD.Cannabis.2.Reg.Reso2018-227 (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. /// /// /// /// /// /// /// /// /// /// /// /// /// 00060302.1 Page 8 of 9 23.b Packet Pg. 512 Attachment: CD.Cannabis.2.Reg.Reso2018-227 (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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: _________________________ 00060302.1 Page 9 of 9 23.b Packet Pg. 513 Attachment: CD.Cannabis.2.Reg.Reso2018-227 (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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) Page 1 23.c Packet Pg. 514 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 ¶ Page 2 23.c Packet Pg. 515 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 Page 3 23.c Packet Pg. 516 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 Page 4 23.c Packet Pg. 517 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 Page 5 23.c Packet Pg. 518 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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: ¶ Page 6 23.c Packet Pg. 519 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 Page 7 23.c Packet Pg. 520 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 “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: ¶ ¶ Deleted: s Deleted: 5 and 7 Deleted: X Deleted: is authorized Deleted: ¶ Page 8 23.c Packet Pg. 521 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. Page 9 23.c Packet Pg. 522 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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. Page 10 23.c Packet Pg. 523 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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. Page 11 23.c Packet Pg. 524 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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. Page 12 23.c Packet Pg. 525 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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. Page 13 23.c Packet Pg. 526 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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 Page 14 23.c Packet Pg. 527 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 Page 15 23.c Packet Pg. 528 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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: . Page 16 23.c Packet Pg. 529 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 Page 17 23.c Packet Pg. 530 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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" Page 18 23.c Packet Pg. 531 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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. Page 19 23.c Packet Pg. 532 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. Page 20 23.c Packet Pg. 533 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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 Page 21 23.c Packet Pg. 534 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. Page 22 23.c Packet Pg. 535 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 Page 23 23.c Packet Pg. 536 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. Page 24 23.c Packet Pg. 537 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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 Page 25 23.c Packet Pg. 538 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. Page 26 23.c Packet Pg. 539 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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 Page 27 23.c Packet Pg. 540 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. Page 28 23.c Packet Pg. 541 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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. Page 29 23.c Packet Pg. 542 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 Page 30 23.c Packet Pg. 543 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 ). Page 31 23.c Packet Pg. 544 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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. Page 32 23.c Packet Pg. 545 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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. Page 33 23.c Packet Pg. 546 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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. Page 34 23.c Packet Pg. 547 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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. Page 35 23.c Packet Pg. 548 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. Page 36 23.c Packet Pg. 549 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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. Page 37 23.c Packet Pg. 550 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. Page 38 23.c Packet Pg. 551 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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). Page 39 23.c Packet Pg. 552 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 Deleted: L OF ORDINANCES Deleted: O Deleted: activities Formatted: Font: Not Bold Formatted: Font: Not Bold Formatted: Font: Not Bold Deleted: are Deleted: . ¶ Deleted: DEVELOPMENT CODE AMENDMENT FINDINGS Page 40 23.c Packet Pg. 553 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 Deleted: has reserved to itself the right to Deleted: that Deleted: has reserved to itself the right to Page 41 23.c Packet Pg. 554 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 Page 42 23.c Packet Pg. 555 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. /// /// /// 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 Deleted: Mayor and City Council Formatted: Font: Not Bold Formatted: Body Text Indent Deleted: ¶ ¶ ///¶ ¶ ///¶ ¶ ///¶ ¶ ///¶ ¶ ///¶ ¶ ///¶ ¶ ///¶ ¶ ///¶ ¶ /// Page 43 23.c Packet Pg. 556 Attachment: CD.Cannabis.3.Reg.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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, 23.d Packet Pg. 557 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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, 23.d Packet Pg. 558 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 23.d Packet Pg. 559 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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, 23.d Packet Pg. 560 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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, 23.d Packet Pg. 561 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 23.d Packet Pg. 562 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 23.d Packet Pg. 563 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 23.d Packet Pg. 564 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 23.d Packet Pg. 565 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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, 23.d Packet Pg. 566 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 23.d Packet Pg. 567 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 23.d Packet Pg. 568 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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, 23.d Packet Pg. 569 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 23.d Packet Pg. 570 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 23.d Packet Pg. 571 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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; 23.d Packet Pg. 572 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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. 23.d Packet Pg. 573 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 23.d Packet Pg. 574 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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 23.d Packet Pg. 575 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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 23.d Packet Pg. 576 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 23.d Packet Pg. 577 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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 23.d Packet Pg. 578 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 23.d Packet Pg. 579 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 23.d Packet Pg. 580 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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: 23.d Packet Pg. 581 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 26 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 23.d Packet Pg. 582 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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 23.d Packet Pg. 583 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 23.d Packet Pg. 584 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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 23.d Packet Pg. 585 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 23.d Packet Pg. 586 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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. 23.d Packet Pg. 587 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 32 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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, 23.d Packet Pg. 588 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 33 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 23.d Packet Pg. 589 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 34 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 23.d Packet Pg. 590 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 35 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 23.d Packet Pg. 591 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 36 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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. 23.d Packet Pg. 592 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 37 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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. 23.d Packet Pg. 593 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 38 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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 23.d Packet Pg. 594 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 39 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 23.d Packet Pg. 595 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 40 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 23.d Packet Pg. 596 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 41 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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, 23.d Packet Pg. 597 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 42 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 23.d Packet Pg. 598 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 43 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 23.d Packet Pg. 599 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 44 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 23.d Packet Pg. 600 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 45 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. /// /// /// /// /// /// /// /// /// /// /// 23.d Packet Pg. 601 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Page 46 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 /// 23.d Packet Pg. 602 Attachment: CD.Cannabis.4.Reg.Ord (redline) (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 Page 1 of 10 23.e Packet Pg. 603 Attachment: CD.Cannabis.5.Tax.Reso2018-228 (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. Page 2 of 10 23.e Packet Pg. 604 Attachment: CD.Cannabis.5.Tax.Reso2018-228 (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 Page 3 of 10 23.e Packet Pg. 605 Attachment: CD.Cannabis.5.Tax.Reso2018-228 (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 Page 4 of 10 23.e Packet Pg. 606 Attachment: CD.Cannabis.5.Tax.Reso2018-228 (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 Page 5 of 10 23.e Packet Pg. 607 Attachment: CD.Cannabis.5.Tax.Reso2018-228 (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 Page 6 of 10 23.e Packet Pg. 608 Attachment: CD.Cannabis.5.Tax.Reso2018-228 (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. Page 7 of 10 23.e Packet Pg. 609 Attachment: CD.Cannabis.5.Tax.Reso2018-228 (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. Page 8 of 10 23.e Packet Pg. 610 Attachment: CD.Cannabis.5.Tax.Reso2018-228 (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 /// /// 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 Page 9 of 10 23.e Packet Pg. 611 Attachment: CD.Cannabis.5.Tax.Reso2018-228 (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 By: _________________________ Page 10 of 10 23.e Packet Pg. 612 Attachment: CD.Cannabis.5.Tax.Reso2018-228 (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 00060325.1 Page 1 23.f Packet Pg. 613 Attachment: CD.Cannabis.6.Tax.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 00060325.1 Page 2 23.f Packet Pg. 614 Attachment: CD.Cannabis.6.Tax.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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; 00060325.1 Page 3 23.f Packet Pg. 615 Attachment: CD.Cannabis.6.Tax.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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; 00060325.1 Page 4 23.f Packet Pg. 616 Attachment: CD.Cannabis.6.Tax.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 00060325.1 Page 5 23.f Packet Pg. 617 Attachment: CD.Cannabis.6.Tax.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 00060325.1 Page 6 23.f Packet Pg. 618 Attachment: CD.Cannabis.6.Tax.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 00060325.1 Page 7 23.f Packet Pg. 619 Attachment: CD.Cannabis.6.Tax.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 00060325.1 Page 8 23.f Packet Pg. 620 Attachment: CD.Cannabis.6.Tax.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 00060325.1 Page 9 23.f Packet Pg. 621 Attachment: CD.Cannabis.6.Tax.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 23.f Packet Pg. 622 Attachment: CD.Cannabis.6.Tax.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 00060325.1 Page 11 23.f Packet Pg. 623 Attachment: CD.Cannabis.6.Tax.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 23.f Packet Pg. 624 Attachment: CD.Cannabis.6.Tax.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 23.f Packet Pg. 625 Attachment: CD.Cannabis.6.Tax.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 00060325.1 Page 14 23.f Packet Pg. 626 Attachment: CD.Cannabis.6.Tax.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 00060325.1 Page 15 23.f Packet Pg. 627 Attachment: CD.Cannabis.6.Tax.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 23.f Packet Pg. 628 Attachment: CD.Cannabis.6.Tax.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 23.f Packet Pg. 629 Attachment: CD.Cannabis.6.Tax.Ord (5684 : Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// 00060325.1 Page 18 23.f 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 24.a Packet Pg. 631 Attachment: Council.2018 City-County Conference - June 27-28 2018 - Fred Shorett (5687 : 2018 City County Conference Update – June 27-28, 24.b Packet Pg. 632 Attachment: Council.CCC § 532323- Government Code on Reporting Trips(Attachment 1) (5687 : 2018 City County Conference Update – June 24.c 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) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 1 25.b Packet Pg. 639 Attachment: FN-Business Registration Liens.Resolution (5685 : Business Registration Liens) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 25.b 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 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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 26.a 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 26.b 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 26.b Packet Pg. 653 Attachment: PD.Pepes Towing.Attach 1.Memo -20180723133044 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 26.c Packet Pg. 654 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 655 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 656 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 657 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 658 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 659 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 660 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 661 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 662 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 663 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 664 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 665 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 666 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 667 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 668 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 669 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 670 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 671 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 672 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 673 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 674 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 675 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 676 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 677 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 678 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 679 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 680 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 681 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 682 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 683 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 684 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 685 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 686 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 687 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 688 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 689 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 690 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.c Packet Pg. 691 Attachment: PD.Pepes Towing.Attach 2.Reso 2011-80 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.d Packet Pg. 692 Attachment: PD.Pepes Towing.Attach 3.Reso 2011-91 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.d Packet Pg. 693 Attachment: PD.Pepes Towing.Attach 3.Reso 2011-91 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.d Packet Pg. 694 Attachment: PD.Pepes Towing.Attach 3.Reso 2011-91 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.d Packet Pg. 695 Attachment: PD.Pepes Towing.Attach 3.Reso 2011-91 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.d Packet Pg. 696 Attachment: PD.Pepes Towing.Attach 3.Reso 2011-91 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.d Packet Pg. 697 Attachment: PD.Pepes Towing.Attach 3.Reso 2011-91 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.d Packet Pg. 698 Attachment: PD.Pepes Towing.Attach 3.Reso 2011-91 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.d Packet Pg. 699 Attachment: PD.Pepes Towing.Attach 3.Reso 2011-91 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.d Packet Pg. 700 Attachment: PD.Pepes Towing.Attach 3.Reso 2011-91 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.d Packet Pg. 701 Attachment: PD.Pepes Towing.Attach 3.Reso 2011-91 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.d Packet Pg. 702 Attachment: PD.Pepes Towing.Attach 3.Reso 2011-91 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.d Packet Pg. 703 Attachment: PD.Pepes Towing.Attach 3.Reso 2011-91 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.d Packet Pg. 704 Attachment: PD.Pepes Towing.Attach 3.Reso 2011-91 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.d Packet Pg. 705 Attachment: PD.Pepes Towing.Attach 3.Reso 2011-91 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.d Packet Pg. 706 Attachment: PD.Pepes Towing.Attach 3.Reso 2011-91 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.d Packet Pg. 707 Attachment: PD.Pepes Towing.Attach 3.Reso 2011-91 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.d Packet Pg. 708 Attachment: PD.Pepes Towing.Attach 3.Reso 2011-91 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.d Packet Pg. 709 Attachment: PD.Pepes Towing.Attach 3.Reso 2011-91 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.d Packet Pg. 710 Attachment: PD.Pepes Towing.Attach 3.Reso 2011-91 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.d Packet Pg. 711 Attachment: PD.Pepes Towing.Attach 3.Reso 2011-91 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.d Packet Pg. 712 Attachment: PD.Pepes Towing.Attach 3.Reso 2011-91 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.d Packet Pg. 713 Attachment: PD.Pepes Towing.Attach 3.Reso 2011-91 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.d Packet Pg. 714 Attachment: PD.Pepes Towing.Attach 3.Reso 2011-91 (5686 : Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to 26.e Packet Pg. 715 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. 716 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. 717 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. 718 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. 719 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. 720 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. 721 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. 722 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. 723 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. 724 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. 725 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. 726 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. 727 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. 728 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. 729 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. 730 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. 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