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HomeMy WebLinkAboutagenda updatesItem 15: Revised Resolution RESOLUTION NO. RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING NOTICING A PUBLIC HEARING RELATIVE TO THE MODIFICATION OF UNDERGROUND UTILITY DISTRICT NO. 20 ALONG 40TH STREET BETWEEN ]KENDALL DRIVE AND PALM DRIVE. WHEREAS, on March 18, 1991, the Mayor and City Council adopted Resolution No. 1991-096 creating Underground Utility District No. 20 along 401i Street between Kendall Drive and Palm Drive; and WHEREAS, undergrounding of overhead lines has been completed throughout District 20, except for the reach between Johnson Street and Electric Avenue; and WHEREAS, utility companies are required by Rule 20 of the Public Utilities Commission to set aside a certain portion of their revenues in special accounts to finance the cost of undergrounding overhead facilities within districts established by local agencies. Each agency is allocated a certain amount of funds based upon the total number of overhead services within the agency's boundaries; and WHEREAS, Southern California Edison Company has advised the City by letter dated September 21, 2018, that sufficient funds are available in the City's Rule 20A account to fully fund the undergrounding of overhead lines along 401i Street between Johnson Street and Electric Avenue; and WHEREAS, Southern California Edison Company has advised the City that Resolution No. 1991-096 does not meet current requirements to allow them to proceed with undergrounding overhead lines through said reach; and WHEREAS, Southern California Edison has indicated that the City must approve a conforming Resolution in order to qualify for Rule 20A monies, and WHEREAS, Chapter 13.36 required that a public hearing be called to ascertain whether the public necessity, health, safety or welfare requires the removal of poles, overhead wires and associated overhead structure within designated areas of the City and the underground installation of wires and facilities for supplying electric, communication, or similar or associated service. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. That proceedings to modify Underground Utility District No. 20, under the terms of Chapter 13.36 of the City's Municipal Code are hereby initiated. Resolution No. SECTION 3. A Public Hearing before the Mayor and City Council is hereby set to be held on May 1, 2019, at the hour of 7:00 p.m., at the Council Chambers, 201 North "E" Street, San Bernardino, California, to determine whether the public necessity, health, safety or welfare requires the removal of poles, overhead wires and associated overhead structure within designated areas of the City and the underground installation of wires and facilities for supplying electric, communication, or similar or associated service. SECTION 4. In accordance with Chapter 13.36 of the Municipal Code, the City Clerk is hereby authorized and directed to notify all affected property owners as shown on the last equalized assessment roll and utilities concerned by mail of the time and place of such hearings at least ten days prior to the date thereof. SECTION 5. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 6. 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, and to this end the provisions of this Resolution are declared to be severable. SECTION 7. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this day of , 2019. John Valdivia, Mayor City of San Bernardino Attest: Georgeann Hanna, MMC, City Clerk Approved as to form: Gary D. Saenz, City Attorney Resolution No. CERTIFICATION STATE OF CALIFORNIA) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Georgeann Hanna, MMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. , adopted at a regular meeting held at the _ day of 2019 by the following vote: Council Members: SANCHEZ IBARRA VACANT SHORETT NICKEL RICHARD MULVIHILL AYES NAYS ABSTAIN ABSENT WITNESS my hand and official seal of the City of San Bernardino this _ day of 2019. Georgeann Hanna, MMC, City Clerk WAR City Council Memorandum V r x Date: March 20, 2019 To: Honorable Mayor and City Council Members From: Gigi Hanna, City Clerk Subject: Revised Item 20: Resolution to Approve Property Tax Exchange between the City of San Bernardino, County of San Bernardino, and the San Bernardino County Fire Protection District Resulting From LAFCO Annexation 3188A (Spring Trails Annexation) LAFCO informed us that the staff report and resolution for this item required some immediate changes. The revised staff report and resolution are included as an attachment to this memorandum and hard copies will be provided at the dais. Please feel free to contact City Clerk Gigi Hanna hanna i sbcit .or) or Chief Deputy City Clerk John Maier (maier ioasbcity.org) should you have any questions. This Page Is left Intentionally Blank City of San Bernardino Request for Council Action Date: March 20, 2019 To: Honorable Mayor and City Council Members From: Andrea M. Miller, City Manager By: Trish Rhay, Director of Public Works Lisa Sherrick, Senior Management Analyst Maya Lopez, Administrative Analyst II Staff Report Subject: Resolution to Approve Property Tax Exchange Between City of San Bernardino, County of San Bernardino and the San Bernardino County Fire Protection District Resulting From LAFCO 3188A (Spring Trails Annexation) Recommendation Adopt Resolution No. 2019-43 of the Mayor and City Council of the City of San Bernardino, California, determining the amount of property tax revenues to be exchanged between and among the City of San Bernardino, the County of San Bernardino, San Bernardino County Fire Protection District (County Fire District) and its Valley Service Zone and County Service Area 70, resulting from the jurisdiction change described by LAFCO3188A. Back -ground The Spring Trails Annexation application has been under consideration for several years. At present, the owner -initiated application is being processed by the Local Agency Formation Commission (LAFCO). A map, which depicts the proposed area to be annexed, is included in Attachment 2. As part of LAFCO's process, the affected governmental taxing jurisdictions (the County and the City) are required to consider a property tax sharing agreement. On May 2, 2017, the County made its original approval of a resolution accepting the proposed exchange. On May 15, 2017 the City Council considered the proposed exchange of property taxes but decided to not approve the resolution accepting the proposed exchange. The concern of City Council at that time was the uncertainty about the City's revenues associated with property taxes as the proposed exchange to transfer 100% of the City's Ad Valorem property taxes to the County Fire District should continue for "newly annexed" areas of the City as well. The City's May 15, 2017 "no vote" on the proposed resolution to approve the proposed exchange of property taxes initiated a dispute resolution process spelled out in the Revenue and Taxation Code Section 99. That process began with the County and the 3/19/2019 4:00 PM City mutually agreeing on a third -party (David Taussig and Associated, hereafter "Taussig") to perform a fiscal analysis to identify the cost associated with the relevant agencies' financial impact of the proposed annexation. That process took several months to get underway, but eventually a financial analyst was selected to do the study through a County RFP process. The study was completed but only evaluated the costs associated with the City and the County, and did not include the costs/revenues associated with the County Fire District, which was the primary basis of the questions raised by the City about the proposed tax exchange. However, during the period of time two things have occurred at the City that are causing staff to again bring forward what is essentially the same proposed property tax exchange put forward in May of 2017. Both items have the positive effect of improving the City's revenues and, as a result, better enable the City to fund operations associated with the new development. The first is the renegotiated sharing percentage with the County relative to the Vehicle License Fee In -Lieu (VLF) Property Tax revenue. The outcome of that negotiation process now generated an additional $1.8 million annually for the City's General Fund and the amount will grow as assessed value grows within the community. Additionally, the City has created a new Public Services CFD (2018-1) which places an annual special tax levy on all new development at the rate of $385 per single family residence. After a five-year rate lock, the annual levy grows at a 4% pace year to year. This too will generate a significant revenue stream that will help fund costs otherwise borne by the General Fund associated with new development. With these two significant changes in the revenue projections of the proposed annexation, the developer's fiscal analysis is much improved and no longer calls for an additional special tax on the property owners to make the development's revenues balance with anticipated expenditures. The new fiscal pro forma for the project enables the reconsideration of the proposed property tax exchange by the Mayor and City Council. Discussion In preparation for this item, staff has communicated with both the County and LAFCO about the preapproval process. LAFCO advised the County to generate a new property tax exchange calculation incorporating the latest assessed valuation numbers for the area proposed to be annexed. That has been completed with very modest changes to the numbers as the proposed annexation area is entirely undeveloped land at this time. The County requested that the City first approve the property tax exchange agreement, and then it would subsequently take it to their Board of Supervisors for approval if passed by City Council. The County's conclusion is the same with the updated proposal, which that all ad valorem related property taxes be transferred away from the City and then shared by the County Fire District and its Valley Service Zone and the County itself. The fiscal 3/19/2019 4:00 PM analysis generated by Tausig supported the proposed exchange demonstrating that the County had sufficient costs incurred to serve the proposed annexation area to justify their proposed share of the property tax allocation. The County Fire District only increased their revenue a minor amount consistent with what the City would have otherwise received if it still had the fire service function. It is worth noting as well, that the tax sharing proposal is calculated in the same manner as all other annexations have been prepared and it was only the City's unique circumstances that caused it to initially raise the questions about whether an alternative was appropriate for this instance. 2018/19 Goals and Objectives Approving the proposed property tax exchange agreement is consistent with Goal No. 4: Ensure Development of a Well -Planned, Balances, and Sustainable Cid and Goal No. 6: 'Operate in a Fiscally Responsible and Business -Like Manner. The approval of the proposed tax exchange agreement enables the continues development of property in the north end of town and the annexation of that property into the City of San Bernardino, providing additional new housing opportunities for the community. Fiscal Impact The actual property tax at issue today is very small, only $332 (Exhibit A) as calculated by the County. Total build out valuation is estimated at $110 million, and thus if the City were to receive its typical 17% share, that amount would be approximately $187,000 that was the subject of the discussion when first considered in May of 2017. As discussed earlier, the additional revenue generating solutions developed by the City are anticipated to result in the annexation being cost neutral to the City; at full 5 -year build out the Public Safety CFD will result in an additional $83,000 to increase at 4% annually. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution 2019-43 determining the amount of property tax revenues to be exchanged between and among the City of San Bernardino, the County of San Bernardino, San Bernardino County Fire Protection District and its Valley Service Zone and County Service Area 70, resulting from the jurisdictional change described by LAFCO 3188A. Attachments Attachment 1 Resolution Attachment 2 Map of Proposed Annexation Area Attachment 3 County Tax Exchange Proposal Attachment 4 LAFCO 3188A Plan for Service Hoffman Report Attachment 5 David Taussig and Associates Report Attachment 6 LAFCO Notification of Failure to Complete Property Tax Transfer Ward: All Synopsis of Previous Council Actions: • May 15, 2017 — Resolution to approve property tax exchange agreement with County of San Bernardino not approved by City Council. Resolution No. 2019-43 RESOLUTION NO. 2019-43 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, DETERMINING THE AMOUNT OF PROPERTY TAX REVENUES TO BE EXCHANGED BETWEEN AND AMOUNG THE CITY OF SAN BERNARDINO, THE COUNTY OF SAN BERNARDINO, SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT AND ITS VALLEY SERVICE ZONE AND COUNTY SERVICE AREA 70, RESULTING FROM THE JURISDICTION CHANGE DESCRIBED BY LAFCO 3188A WHEREAS The Cit Manager- is hereby the ea_and ,• T+ffy n . a Consulting cGTYipes-Zgrccici+ with cPiocr- .e dfi brr „Ythe owner initiated an an processed by Local Agency Formation Commission (LAFCO) proposing the area to be annexed therefore requiring the affected governmental taxing iurisdiction (the City and the County to consider the tax sharing agreement: and WHEREAS through Disoute Resolution spelled out in the Revenue and Taxation Code Section 99 fiscal analysis was rovided through a third -party identifvin the im act on relevant agencies, and since then there have been changes to Citv Vehicle License In -Lieu (VLF) revenue and the Citv's recent implementation of CFD's requiring the Count} to generate a new property tax exchange calculation WHEREAS the County requested that the City first approve the vroperty tax exchange agreement before the proposed annexation can move forward BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The Mayor and City Council hereby a1212rove the negotiated exchange of property tax revenue between the City of San Bernardino. the County of San Bernardino, the San Bernardino Count • Fire Protection District and its Valley Service Zone and County Service Area 70, attached hereto as Attachment 3 and incorporated herein by reference, resulting fro the above-described urisdictional Chane. SECTION 3. The annual tax increment generated in the area subject to the iurisdictional change and attributable to the local agencies whose service area or service responsibilities will be altered by the proposed jurisdictional change shall be allocated in future years pursuant to the provisions of Section 98 of the Revenue and Taxation Code. Resolution No. 2019-43 SECTION "4.The authorization to execute the above -referenced Agreement is rescinded if the Agreement 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. SECTION -35. The City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 46 _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, and to this end the provisions of this Resolution are declared to be severable. SECTION 5. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the Mayor and City Council and signed by the Mayor and attested by the City Clerk this day of 12019. John Valdivia, Mayor City of San Bernardino Attest: Georgeann Hanna, MMC, City Clerk Approved as to form: Gary D. Saenz, City Attorney Resolution No. 2019-43 CERTIFICATION STATE OF CALIFORNIA) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Georgeann Hanna, MMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. , adopted at a regular meeting held at the day of , 2019 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ BARRIOS VACANT SHORETT NICKEL RICHARD MULVIHILL WITNESS my hand and official seal of the City of San Bernardino this day of 2019. Georgeann Hanna, MMC, City Clerk Exhibit A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND ALLIANT INSURANCE SERVICES, INC. This Agreement ("Agreement") is made and entered into as of July 01, 2019 by and between the City of San Bernardino, a charter city and municipal corporation organized and operating under the laws of the State of California with its principal place of business at Vanir Tower, 290 North D Street, San Bernardino, CA 92401 ("City"), and Alliant Insurance Services, Inc., a Delaware corporation with its principal place of business at 1301 Dove Street, Suite 200, Newport Beach, CA 92660 (hereinafter referred to as "Consultant"). City and Consultant are hereinafter sometimes referred to individually as "Party" and collectively as the "Parties." RECITALS A. City is a public agency of the State of California and is in need of professional Employee Benefit Brokerage and Consulting services for their Health and Welfare Program. B. Consultant is duly licensed and has the necessary qualifications to provide such services. C. The Parties desire by this Agreement to establish the terms for City to retain Consultant to provide the services described herein. AGREEMENT NOW, THEREFORE, IT IS AGREED AS FOLLOWS: 1. Incorl-,oration of Recitals. The recitals above are true and correct and are hereby incorporated herein by this reference. 2. Services. Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibit "A." 3. Professional Practices. All professional services to be provided by Consultant pursuant to this Agreement shall be provided by personnel identified in their proposal. Consultant warrants that Consultant 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 Consultant's performance of this Agreement. Consultant further represents that it will not engage a City employee to provide any services listed in the Scope of Services. 4. Compensation. a. Subject to paragraph 4(b) below, the City shall pay Consultant a monthly consulting fee as outlined in the Schedule of Charges set forth in Exhibit `B." b. Except for the compensation described in paragraph 4(c) and 4(d), the total annual amount paid for services rendered by Consultant under this Agreement will not exceed the sum of $148,570. This amount is to cover all related costs, and the City will not pay any additional fees for printing expenses. Consultant may submit invoices to City for approval. Said invoice shall be based on the total of all Consultant's services which have been completed to City's sole satisfaction. City shall pay Consultant's invoice within forty-five (45) 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. C. In addition to the compensation described in paragraph 4(b), Consultant and/or its affiliates may receive compensation for underwriting, program administration, and other services that (i) Consultant provides to City and/or City's insurance carrier(s), and (ii) is outside the scope of services described in Exhibit "A." This additional compensation, if any, will be included in the cost of the premium City pays to the insurance carrier(s), and accordingly, will create no additional cost for City. d. Consultant may also receive compensation as a result of a contingent or supplemental income agreement with City's insurance carrier(s). City may opt -out of having its premiums included in the calculation of such indirect income by accessing the "opt -out" form from the link on Alliant's website: http://www.alliant.con/Legal-Notices/Pages/Disclosure- Policy.aspx. The Parties acknowledge that such indirect income, if any, will be determined by City's insurance carrier(s), and if City does not opt -out, it remains the insurance carriers' exclusive decision to include or exclude certain premiums in any indirect income calculation. The availability of information regarding the make-up of any indirect income payment is at the discretion of the insurance carrier(s). e. On the first day of January of each year, Consultant shall provide to the City a report disclosing all compensation received by it and its affiliates, directly or indirectly, from all parties relating to this Agreement, and as further described herein above in paragraphs 4(a) -(d) of this Agreement. 5. Additional Work. If changes in the work seem merited by Consultant or the City, and informal consultations with the other party indicate that a change is warranted, it shall be processed in the following manner: a letter outlining the changes shall be forwarded to the City by Consultant with a statement of estimated changes in fee or time schedule. An amendment to this Agreement shall be prepared by the City and executed by both Parties before performance of such services, or the City will not be required to pay for the changes in the scope of work. Such amendment shall not render ineffective or invalidate unaffected portions of this Agreement. 6. Term. This Agreement shall commence on the Effective Date and continue through the completion of services as set forth in Exhibit "A," unless the Agreement is previously terminated as provided for herein ("Term"). 7. Maintenance of Records: Audits. a. Records of Consultant's services 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 four (4) years from the Effective Date. b. Books, documents, papers, accounting records, and other evidence pertaining to costs incurred shall be maintained by Consultant and made available at all reasonable 2 times during the contract period and for four (4) years from the date of final payment under the contract for inspection by City. 8. Time of Performance. Consultant shall perform its services in a prompt and timely manner and shall commence performance upon receipt of written notice from the City to proceed. Consultant shall complete the services required hereunder within Term. 9. Delays in Performance. a. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non- performing Party. For purposes of this Agreement, such circumstances include but are not limited to, abnormal weather conditions; floods; earthquakes; fire; epidemics; war; riots and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage or judicial restraint. b. Should such circumstances occur, the non-performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. 10. Compliance with Law. a. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local government, including Cal/OSBA requirements. b. If required, Consultant shall assist the City, as requested, in obtaining and maintaining all permits required of Consultant by federal, state and local regulatory agencies. C. If applicable, Consultant is responsible for all costs of clean up and/ or removal of hazardous and toxic substances spilled as a direct result of his or her services or operations performed under this Agreement. 11. Standard of Care. Consultant's services will be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions. 12. Conflicts of Interest. During the term of this Agreement, Consultant shall at all times maintain a duty of loyalty and a fiduciary duty to the City and shall not accept payment from or employment with any person or entity which to Consultant's knowledge, and after reasonable investigation, will constitute a conflict of interest with the City. 13. Citv Business Certificate. Consultant shall, prior to execution of this Agreement, obtain and maintain during the term of this Agreement a valid business registration certificate from the City pursuant to Title 5 of the City's Municipal Code and any and all other licenses, permits, qualifications, insurance, and approvals of whatever nature that are legally required of Consultant to practice his/her profession, skill, or business. 14. Assignment and Subconsultant. Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. Nothing contained herein shall prevent Consultant from employing independent associates and subconsultants as Consultant may deem appropriate to assist in the performance of services hereunder. 15. Independent Consultant. Consultant is retained as an independent contractor and is not an employee of City. No employee or agent of Consultant shall become an employee of City. The work to be performed shall be in accordance with the work described in this Agreement, subject to such directions and amendments from City as herein provided. 16. Insurance. Consultant shall not commence work for the City until it has provided evidence satisfactory to the City it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section. a. Additional Insured The City of San Bernardino, its officials, officers, employees, agents, and volunteers shall be named as additional insureds on Consultant's and its subconsultants' policies of commercial general liability and automobile liability insurance using the endorsements and forms specified herein or exact equivalents. b. Commercial General Liabilitv (i) The Consultant shall take out and maintain, during the performance of all work under this Agreement, in amounts not less than specified herein, Commercial General Liability Insurance, in a form and with insurance companies acceptable to the City. (ii) Coverage for Commercial General Liability insurance shall be at least as broad as the following: Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 00 01) or exact equivalent. for the following: (iii) Commercial General Liability Insurance must include coverage (1) Bodily Injury and Property Damage (2) Personal Injury/Advertising Injury (3) Premises/Operations Liability (4) Products/Completed Operations Liability (5) Aggregate Limits that Apply per Project (6) Contractual Liability with respect to this Contract (7) Broad Form Property Damage (8) Independent Consultants Coverage n (iv) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; (3) products/completed operations liability; or (4) contain any other exclusion contrary to the Agreement. (v) The policy shall give City, its elected and appointed officials, officers, employees, agents, and City -designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage. (vi) The general liability program may utilize either deductibles or provide coverage excess of a self-insured retention, subject to written approval by the City, and provided that such deductibles shall not apply to the City as an additional insured. C. Automobile Liabilitv (i) At all times during the performance of the work under this Agreement, the Consultant shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non -owned and hired vehicles, in a form and with insurance companies acceptable to the City. (ii) Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto). (iii) The policy shall give City, its elected and appointed officials, officers, employees, agents and City designated volunteers additional insured status. (iv) Subject to written approval by the City, the automobile liability program may utilize deductibles, provided that such deductibles shall not apply to the City as an additional insured, but not a self-insured retention. d. Workers' Compensation/Emhlov er's Liability (i) Consultant certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this Agreement. (ii) To the extent Consultant has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, the Consultant shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this Agreement, all in accordance with the "Workers' Compensation and Insurance Act," Division IV of the Labor Code of the State of California and any acts amendatory thereof, and Employer's Liability Coverage in amounts indicated herein. Consultant shall require all subconsultants to obtain and maintain, for the period required by this Agreement, workers' compensation coverage of the same type and limits as specified in this section. 5 e. Professional Liability (Errors and Omissions F At all times during the performance of the work under this Agreement the Consultant shall maintain professional liability or Errors and Omissions insurance appropriate to its profession, in a form and with insurance companies acceptable to the City and in an amount indicated herein. This insurance shall be endorsed to include contractual liability applicable to this Agreement and shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant. "Covered Professional Services" as designated in the policy must specifically include work performed under this Agreement. The policy must "pay on behalf of" the insured and must include a provision establishing the insurer's duty to defend. f. Minimum Polic �, Limits Required (i) The following insurance limits are required for the Agreement: Combined_ Single Limit Commercial General Liability 51,000,000 per occurrence/ $2,000,000 aggregate for bodily injury, personal injury, and property damage Automobile Liability S1,000,000 per occurrence for bodily injury and property damage Employer's Liability $1,000,000 per occurrence Professional Liability $1,000,000 per claim and aggregate (errors and omissions) (ii) Defense costs shall be payable in addition to the limits. (iii) Requirements of specific coverage or limits contained in this section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. Any available coverage shall be provided to the parties required to be named as Additional Insured pursuant to this Agreement. g. Evidence Required Prior to execution of the Agreement, the Consultant shall file with the City evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer's equivalent) signed by the insurer's representative and Certificate of Insurance (Acord Form 25-S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional insureds, where appropriate, the type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance. h. Policy Provisions Reouired R (i) Consultant shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Consultant shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of the premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration. (ii) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Consultant's policy is primary insurance and that any insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss. (iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims -made policy with a retroactive date subsequent to the effective date of this Agreement. (iv) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to provide waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants. (v) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant's indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law. i. tt 7ualif\,in - Insurers (i) All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements: (1) Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than ANN and admitted to transact in the business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law. j. Additional Insurance Provisions 7 (i) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including, but not limited to, the provisions concerning indemnification. (ii) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments, provided that City shall give Consultant at least 10 days to cure any such noncompliance with the insurance requirements hereof after informing Consultant in writing of its intent to procure insurance on Consultant's behalf. In the alternative, City may cancel this Agreement. (iii) The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (iv) Neither the City nor the City Council, nor any member of the City Council, nor any of the officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement. k. Subconsultant Insurance Requirements. Consultant shall not allow any subcontractors or subconsultants to commence work on any subcontract until they have provided evidence satisfactory to the City that they have secured all insurance required under this section. Policies of commercial general liability insurance provided by such subcontractors or subconsultants shall be endorsed to name the City as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by Consultant, City may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants. 17. Indemnification. a. To the fullest extent permitted by law, Consultant shall defend (with counsel reasonably approved by the City), indemnify and hold the City, its elected and appointed officials, officers, employees, agents, and authorized volunteers free and harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, (collectively, "Claims") in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant's services, the Project, or this Agreement, including without limitation the payment of all consequential damages, reasonable expert witness fees and reasonable attorneys' fees and other related reasonable costs and expenses. Notwithstanding the foregoing, to the extent Consultant's services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to Claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, the City Council, members of the City Council, its employees, or authorized volunteers. b. Additional Indemnity Obligations. Consultant shall defend, with counsel of City's choosing and at Consultant's own cost, expense and risk, any and all Claims covered by this section that may be brought or instituted against the City, its elected and appointed officials, employees, agents, or authorized volunteers. Consultant shall pay and satisfy any judgment, award or decree that may be rendered against the City, its elected and appointed officials, employees, agents, or authorized volunteers as part of any such claim, suit, action or other proceeding. Consultant shall also reimburse City for the cost of any reasonable settlement paid by the City, its elected and appointed officials, employees, agents, or authorized volunteers as part of any such claim, suit, action or other proceeding. Such reimbursement shall include payment for the City's reasonable attorney's fees and costs, including expert witness fees. Consultant shall reimburse the City, its elected and appointed officials, employees, agents, or authorized volunteers, for any and all reasonable legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its elected and appointed officials, employees, agents, or authorized volunteers. 18. California Labor Code Requirements. Consultant is aware of the requirements of California Labor Code Sections 1720 et seg. and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on certain "public works" and "maintenance" projects. If the Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, Consultant agrees to My comply with such Prevailing Wage Laws, if applicable. Consultant shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Consultant and all subconsultants to comply with all California Labor Code provisions, which include but are not limited to prevailing wages, employment of apprentices, hours of labor and debarment of contractors and subcontractors. If the Services are being performed as part of an applicable "public works" or "maintenance" project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Consultant and all subconsultants performing such Services must be registered with the Department of Industrial Relations. Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant's sole responsibility to comply with all applicable registration and labor compliance requirements. 19. Verification of Employment Eligibility . By executing this Agreement, Consultant verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subconsultants and sub-subconsultants to comply with the same. 20. Laws and Venue. This Agreement shall be interpreted in accordance with the laws 9 of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of San Bernardino, State of California. 21. Termination or Abandonment a. City has the right to terminate or abandon any portion or all of the work under this Agreement by giving ninety (90) calendar days' written notice to Consultant. In such event, City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portion of the work completed and/or being abandoned. City shall pay Consultant the reasonable value of services rendered for any portion of the work completed prior to termination. If said termination occurs prior to completion of any task for the Project for which a payment request has not been received, the charge for services performed during such task shall be the reasonable value of such services, based on an amount mutually agreed to in writing by City and Consultant of the portion of such task completed but not paid prior to said termination. City shall not be liable for any costs with respect to compensation due to Consultant for terminated or abandoned work described in this Section other than the charges or portions thereof which are specified herein. Consultant shall not be entitled to payment for unperformed services, and shall not be entitled to damages or compensation for termination of work. b. Consultant may terminate its obligation to provide further services under this Agreement upon ninety (90) calendar days' written notice to City in the event of failure by City to perform in accordance with the terms of this Agreement through no fault of Consultant. 22. Attornevs' 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 reasonable 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 and expenses of the City Attorney's Office in enforcing this Agreement on behalf of the City shall be considered as "attorneys' fees" for the purposes of this Agreement. 23. Responsibility for Errors. Consultant shall be responsible for its work and results under this Agreement. Consultant, 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 Consultant's professional services occurs, Consultant shall, at no cost to City, provide all other services necessary to rectify and correct the matter to the sole satisfaction of the City and to participate in any meeting required with regard to the correction. 24. Prohibited Employment. Consultant shall not employ any current employee of City to perform the work under this Agreement while this Agreement is in effect. 25. 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. 26. Documents. Except as otherwise provided in "Termination or Abandonment," 10 above, all original field notes, written reports, Drawings and Specifications and other documents, produced or developed for the Project shall, upon payment in full for the services described in this Agreement, be furnished to and become the property of the City. 27. Organization. Consultant shall assign Mr. Michael Menerey as Project Manager. The Project Manager shall not be removed from the Project or reassigned without the prior written consent of the City. 28. Limitation of Agreement. This Agreement is limited to and includes only the work included in the Project described above. 29. Notice. Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to the following addresses and shall be effective upon receipt thereof: CITY: CONSULTANT: City of San Bernardino Alliant Insurance Service, Inc. Vanir Tower, 290 North D Street Michael Menerey San Bernardino, CA 92401 300 S. Hope Street, Suite 3700 Attn: Director of Human Resources Los Angeles, CA 90071 With Copy To: City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: City Attorney 30. Third Party Rights. Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the City and the Consultant. 31. Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. 32. Entire A_reement. This Agreement, including Exhibit "A," represents the entire understanding of City and Consultant as to those matters contained herein, and supersedes and cancels any prior or contemporaneous oral or written understanding, promises or representations with respect to those matters covered hereunder. Each Party acknowledges that no representations, inducements, promises, or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. This is an integrated Agreement. 33. Severabilit%. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal, or unenforceable for any reason, such determination 11 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. 34. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each Party to this Agreement. However, Consultant shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations without the prior written consent of City. Any attempted assignment without such consent shall be invalid and void. 35. Non -Waiver. The delay or failure of either Party at any time to require performance or compliance by the other Party 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. 36. Time of Essence. Time is of the essence for each and every provision of this Agreement. 37. 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. 38. Amendments. Only a writing executed by all of the Parties hereto or their respective successors and assigns may amend this Agreement. 39. CiWs.Riaht to Employ Other Consultants. City reserves its right to employ other consultants, including engineers, in connection with this Project or other projects. 40. Prohibited Interests. Consultant maintains and warrants that it has neither employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no official, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. 41. 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 single Agreement. 12 42. Authorit% . 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. [SIGNATURES ON FOLLOWING PAGE] 13 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND ALLIANT INSURANCE SERVICES, INC. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. CITY OF SAN BERNARDINO Approved By: Andrea M. Miller City Manager Approved as to Form: ****Approved Form**** Gary D. Saenz City Attorney Attested By: Georgeann Hanna, CMC City Clerk 14 CONSULTANT Name ct"'.T'M _ Vze Title ^ EXHIBIT A Scope of Work Specific services and responsibilities to include: • Develop long-range employee benefit goals and strategies for the City of San Bernardino. • Assist in administering group insurance plans identified herein, settle disputes and other issues with carriers analyze the effectiveness of programs and offer creative solutions to problems. • Monitor ongoing contracts, including plan administration, provider compliance with contracts, booklets and employee education materials. • Respond promptly and accurately to questions from City representatives and employees. • Compliance assistance with applicable laws and regulations; advise City staff of changes in the laws and recommend solutions. • Act as an insurance broker/consultant on related issues such as IRS Subsection 125 and related discrimination testing, COBRA, Health Insurance Portability and Accountability Act (HIPAA), Medicare, Family and Medical Leave Act (FMLA), California Family Rights Act (CFRA), and Americans with Disabilities Act (ADA). • Review and analyze claims experience data, claims service, efficiency and accuracy of claims administration to ensure that we are receiving optimum service and benefits from all carriers and vendors. • Determine and recommend the most economical and efficient funding methods for various benefit programs. • Apprise City benefits representatives of local and national benefit trends, innovative ideas and recommend new products, programs and services to ensure a competitive benefits program. • Provide an annual review and summary of employee benefits, including analysis of the quality of benefits provided, cost effectiveness, competitiveness, recommendations, etc. • Meet with and provide reports and updates to City representatives as needed. Provide estimates of renewal rates to assist City with forecasting and budgeting. • Represent City in all negotiations with providers on all issues, including those related to premiums, service, benefit levels, plan design, special terms and conditions, etc. Negotiate all changes and additions to contracts. • Solicit bids from insurance markets, which specialize in group insurance plans. Evaluate bids and bidders, including claims procedures, abilities, experience and history, service, financial policies and stability, and identify the most beneficial package for the City's needs. • Assist with the creation and implementation of Active and Retiree communication materials (pamphlets, brochures, presentations, etc.) for new or changed programs, including materials 15 for Open Enrollment and Health Fairs. Attend Open Enrollment meetings and Health Fairs, and provide enrollment support as needed. Provide fulfillment services for retirees and COBRA participants. • Identify, investigate, analyze and implement efficiency measures that have the effect of reducing the costs associated with employee benefit programs without reducing services to employees. • Employee Call Center for Active and Retiree benefit questions, issues and general support. • COBRA administration to include communication, enrollment, maintenance and billing services. • FMLA administration to include claim management and processing; claim tracking, documentation and reporting; legal and medical expertise L Contract Period July 1, 2019 through June 30, 2020 July 1, 2020 through June 30, 2021 July 1, 2021 through June 30, 2022 First Year Extension Option July 1, 2022 through June 30, 2023 Second Year Extension Option July 1, 2023 through June 30, 2024 Third Year Extension Option July 1, 2024 through June 30, 2025 EXHIBIT B Schedule of Charges $140,000 annual/$11,666.67 monthly $140,000 annuall$11,666.67 monthly $140,000 annual/$11,666.67 monthly 2% Adjustment $142,800 annuall$11,900 monthly 2% Adjustment $145,656 annual/$12,138 monthly 2% Adjustment $148,570 annual/$12,380.83 monthly 17 d L Ln N c $ W) 'O Lr) C 3 O u -° Ln m AAI 4- 0 x m i + u ' 9 n ++ C U �• 12 "D 9 Ln + C U N 'a el Ln +- c O a a' n mo � ami c c c c c 'C G: A N N H N H O N F3 'a 'a N `8 O O O O OX C LM Ln Ln Ln Ln GG mc C m 3 a C C O U 1 a C 4 + C a- C t+ C A O O O O O ? Ln vui 0 Ln Ln 'O 4 -0 V 'O LM Ln `~ Loll Ln Ln Ln m N X N N N N m � E �a N 7 N N N VI IA `r O O O O O O p C L4 C C C C :a Z Q .G W W w LL uj a _ O Z N Z 2 Ln V U U Z Ln @A Ln a a 0 61 t) c o }, m a x Z V m J T z CO V S T V Ln O V) n,® 0.. 1 RESOLUTION NO. 81-542 2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF A LEASE WITH BOYS' CLUB OF SAN BERNARDINO RELATING 3 TO ENCANTO COMMUNITY CENTER. 4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF 5 SAN BERNARDINO AS FOLLOWS: I 6 I SECTION 1. The Mayor of the City of San Bernardino is hereby 7 authorized and directed to execute on behalf of said City a Lease 8 �with Boys' Club of San Bernardino relating to Encanto Community 9 Center, a copy of which is attached hereto, marked Exhibit I 10 and incorporated herein by reference as fully as though set forth 11 at length. 12 I HEREBY CERTIFY that the foregoing resolution was duly 13 adopted by the Mayor and Common Council of the City of San 14 Bernardino at a regular meeting thereof, held 15 on the 16th day of November 1981, by the following 16 vote, to wit: 17 AYES: Councilmen Reilly, Botts Hobbs Strick e 18 19 NAYS: Council Members Castaneda Iiernandez 20 } ABSENT: None 21 22 City Clerk 23 The foregoing resolution is hereby approved t day 24 of November 1981. 25 y t City of S Bernardino 26 Approved as to form: 27 A�P City At�orney 28 i 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 1 24 25 26 27 28 L E A S E THIS �LE1ASE is entered into this .,2--g—� day of •, 1981, between the CITY OF SAN BERNARDINO, a municipal corporation, referred to as "City", and BOYS' CLUBS OF SAN BERNARDINO, INC., a nonprofit corporation, referred to as "Boys Club". The parties agree as follows: SECTION 1. Recitals. a. City has entered into a Neighborhood Facilities Grant Contract with the United States of America, Department of Housing and Urban Development providing for Federal assistance under Title VII of the Housing and Urban Development Act of 1965 for the construction of a neighborhood facility. b. Pursuant to the Grant Contract, the completed neighborhood facility will be owned by City and leased to and operated by the Boys Club, and the use of the completed neighborhood facility will be subject to the continuing control of the City for a period of at least twenty years after completion of the facility. c. On January 7, 1970, the parties entered into a 50 year lease commencing February 1, 1970, and terminating January 31, 2020. The parties desire to terminate that lease agreement at the time this agreement takes effect. SECTION 2. Description. City hereby leases to the Boys Club the real property described in Exhibit "A", attached to this agreement and incorporated in it by this reference, and all improvements on the property, upon the terms and conditions set forth in this agreement. � r.wil 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 3. Term. The term of this lease shall be for the period commencing on July 1, 1981, and terminating on January 31, 2020. SECTION 4. Rental Pa ments. Boys Club agrees to pay to City one dollar per year as rental, payable on the first day of February of each year during the term of this lease. SECTION 5. Purr2ose. The primary purpose of this lease is to provide for the operation of a neighborhood facility for nonprofit ..public and private agencies whose primary purposes are to provide jphysical, educational, vocational rehabilitative, preventive or recreational services to the community. ` SECTION 6. Administration. Boys Club agrees to furnish office and administrative space and program and activity space in the facility, as the steering committee determines is available, to qualifying nonprofit organizations within the following guidelines: a. Space shall be made available on a first-come, first- served basis to qualifying nonprofit organizations. Boys Club may charge for such space in accordance with a fee schedule approved by City. The fee schedule shall be reviewed at least annually and shall be amended if necessary to reflect current operating costs j and expenses. b. Provision of space to p qualifying organizations shall be upon the condition that their use shall not conflict with existing! uses of the property. c. Boys Club shall require each organization to which space is provided to execute a written lease or rental agreement in a form approved by City and to require such deposit as may be -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 determined by City. In addition, the property shall be used by Boys Club to conduct its own programs to promote the physical, mental and moral welfare of youth of the City of San Bernardino according to the standards of Boys' Clubs of America and by the City for the conduct of its cultural and recreational programs and for all incidental reasonable and lawful purposes. The actual space to be occupied by each qualifying nonprofit organization and by the Boys Club shall be determined by mutual lagreement between City and Boys Club, or, in the absence of such lagreement, by City. I Boys Club agrees that the leased premises shall be used solely and exclusively for the purposes set forth in this agreement and for no other purpose. SECTION 7. HUD Requirements - Nondiscrimination. Boys Club and City agree to operate the facility as a neighborhood facility in accordance with all rules and regulations of the United States of America, Department of Housing and Urban Development. The facility shall be operated without discrimination as to race, creed, color, sex or religion. SECTION 8. Hold Harmless Insurance. Boys Club agrees to told the City harmless from all liability of every kind and Mature &rising out of this lease and in connection with the leased premises. Boys Club shall carry public liability insurance during -he term of this lease covering the City as a named additional Lnsured, and the limits of the policy shall not be less than 100,000.00 for each person in each accident, $300,000.00 for more .han one person in each accident, and property damage liability in, -3- 1 2 3 4 5 6 7 8 9 10 11 b� l 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 +the amount of at least $50,000.00 for any one accident. City (shall be furnished a copy of duplicate original of the policy, or a certificate of insurance. SECTION 9. Rules and Regulations. Boys Club shall establish ,rules and regulations for the operation of said facility as a neighborhood facility and boys club. Such rules and regulations shall be subject to review and approval by the Superintendent of Recreation of City, or such other person as may be designated by City. SECTION 10. Assignment. Except as otherwise provided in this agreement, the Boys Club shall not assign this lease, or any part of it nor sublet any portion of the premises without the prior written consent of City. SECTION 11. Covenants and Conditions. Boys Club shall: sV� j a. Provide adequate supervision for all activities to prevent vandalism, destruction or waste of the premises. b. Perform at least two inspections of the facility daily to observe problems needing repair. c. Inspect the facility before and after events when rented out for special use to other groups. d. Require all groups renting the facility to sign an agreement acknowledging their responsibility for damages to the facility and posting a deposit to insure repair. e. Provide adequate supervision of all activities at all times to assist with the City's effort to maintain the premises in a neat and orderly fashion. f. Keep the premises free of liens. g. Pay before delinquent all charges for water, electricity,l -4- • gais yr other, utilities provided or furnished or used, can the, premises. 1 2 h. Pay all real and personal property taxes or assessments assessed on the premises. 3 i. Operate the premises in compliance with all applicable 4 laws, ordinances, rules, and regulations of the City, State and 5 Federal Government. 6 j. Cooperate in City's effort to provide maintenance and 7 custodial services. 8 k. Comply with requirements relating to heating and air 9 conditioning zones as designated by City in compliance with its 10 energy conservation program. 11 SECTION 12. Repair and Maintenance. City agrees during the 12 term of this lease to repair, maintain and provide reasonable 13 custodial care to the premises, as deemed necessary by City. 14 SECTION 13, Steering Committee. A Steering Committee shall 15 review facility and program operations in order to insure the mos 16 effective use of the facility. The Steering Committee shall 17 consist of: 18 a. The Executive Director of the Boys Club. 19 20 b. Two representatives of the Boys Club Board of Directors. 1 j C. Two representatives of the Los Padrinos. 21 + d. City's Superintendent of Recreation. 22 e• City's Director of Human Services. 23 f. City's Superintendent of Public Buildings. 24 City may, at its discretion, designate other officers or 25 employees as its members of the Steering Committee in place of 26 those designated in this section. 27 The Steering Committee shall meet at least monthly and shall 28 be responsible for the following: - 5 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 i 23 24 25 26 27 28 a. Draft, review and monitor an annual program plan for the facility. b. Review monthly program reports of Executive Director of Boy's Club. C. Review of any plans to alter, decrease or increase programs at the facility. d. Review of annual budget of Boys Club. e. Review of amendments to annual budget of Boys Club. f. Review and recommend amendments to this agreement. g. Review and recommend approval or denial of all agreements For use of the facility. SECTION 14. Termination. City shall have the right to terminate this lease upon thirty days written notice to Boys Club. SECTION 15. Notice. Notices required by the provisions of this agreement shall have been considered delivered if either 3elivered in person to the other party or deposited in the United States mail addressed as follows: City Boys Club City of San Bernardino Executive Director 300 North "D" Street Boys' Club of San Bernardino San Bernardino, CA 92418 1180 West 9th Street San Bernardino, CA 92405 IN WITNESS WHEREOF, the parties have executed this lease on the date hereinabove written. TTEST: r BC 2 3 By 4 5 6 Approved as to form: 8 City At orney 9 10 11 12 13 ' 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -7- Saul .. fOs"'^ •, -ICA `� �. _« •J :i. .. •Lir Of • .5�.�03TC:: Wit:•: 33 Cno Fl CZE :..c ::C.�? c):: (IBJ 70 r .'� `)'J l:•�:;� V60 3911 .+_%'._:i^..i: ::C!�•�:3 f:1o..3.j t 4(jn0-M.'..�ia. 30" 1• r0° GSA - CiG:G�:c�?�.:1�3?�j �-!�r�`�U:�::i:ti�l.r ?•fin � ,r l • �' 4 r t.' v . r