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Home My WebLink About08-19-2020 Final PacketCITY OF SAN BERNARDINO AGENDA FOR THE 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, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE HOUSING AUTHORITY WEDNESDAY, AUGUST 19, 2020 5:30 PM – CLOSED SESSION 7:00 – OPEN SESSION WEB-CONFERENCE • VIA ZOOM • WWW .SBCITY.ORG IMPORTANT COVID-19 NOTICE IN AN EFFORT TO PROTECT PUBLIC HEALTH AND PREVENT THE SPREAD OF COVID -19 (CORONAVIRUS) AND TO ENABLE APPROPRIATE SOCIAL DISTANCING, THE MAYOR & CITY COUNCIL MEETING WILL NOT BE OPEN TO PUBLIC ATTENDANCE. THE CITY OF SAN BERNARDINO ENCOURAGES THE PUBLIC TO VIEW THIS MAYOR & CITY COUNCIL MEETING ON TELEVISION OR ONLINE. THE MEETING IS BROADCAST LIVE ON TIME WARNER CHANNEL 3 OR CHARTER SPECTRUM CHANNEL 3 AND LIVE STREAMED ONLINE AT http://sanbernardinocityca.iqm2.com/Citizens/Detail_Meeting.aspx?ID=2921 MEMBERS OF THE PUBLIC WHO WISH TO COMMENT ON MATTERS BEFORE THE MAYOR & CITY COUNCIL MAY PARTICIPATE IN THE FOLLOWING WAYS: (1) COMMENTS CAN BE EMAILED TO publiccomments@SBCity.Org BY 4:00 P.M. THE DAY OF THE SCHEDULED MEETING TO BE INCLUDED IN THE WRITTEN RECORD****; (2) CALLING 909-384-5208 (NEW PHONE NUMBER), LEAVING A RECORDED MESSAGE, BY 4:00 P.M. THE DAY OF THE SCHEDULED MEETING, NOT TO EXCEED THREE MINUTES, WHICH WILL THEN BE PLAYED DURING THE PUBLIC COMMENT SECTION OF THE AGENDA (3) IF YOU WISH TO MAKE A COMMENT DURING THE PUBLIC HEARING A REQUEST TO SPEAK CAN BE EMAILED TO publiccomments@SBCity.Org BY 4:00 P.M. AND AT THE TIME OF THE REQUESTED AGENDA ITEM, THE CITY CLERK WILL PLACE A PHONE CALL TO THE COMMENTER AND ALLOW THEM TO SPEAK TO THE MAYOR & COUNCIL VIA SPEAKER PHONE DURING THE LIVE MEETING FOR UP TO THREE MINUTES. PLEASE INDICATE ON WHICH ITEM YOU WISH TO SPEAK AND INCLUDE YOUR NAME & PHONE NUMBER. *** TO VIEW POWERPOINT PRESENTATIONS, WRITTEN COMMENTS, OR ANY REVISED DOCUMENTS FOR THIS MEETING DATE SELECT THE LINK BELOW: http://edocs.sbcity.org/WebLink/Browse.aspx?id=4078025&dbid=0&repo=SB IF YOU HAVE ANY QUESTIONS PLEASE CALL THE CITY CLERK’S OFFICE AT 909-384-5002. Welcome to a meeting of the Mayor and City Council of the City of San Bernardino. o Please contact the City Clerk’s Office (909) 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. CALL TO ORDER Theodore Sanchez John Valdivia James Mulvihill MAYOR PRO-TEM, W ARD 1 MAYOR COUNCIL MEMBER, WARD 7 Sandra Ibarra Teri Ledoux COUNCIL MEMBER, W ARD 2 CITY MANAGER Juan Figueroa Sonia Carvalho COUNCIL MEMBER, W ARD 3 CITY ATTORNEY Fred Shorett Genoveva Rocha COUNCIL MEMBER, W ARD 4 ACTING CITY CLERK Henry Nickel COUNCIL MEMBER, W ARD 5 Bessine L. Richard COUNCIL MEMBER, W ARD 6 Attendee Name Present Absent Late Arrived Mayor Pro-Tem, Ward 1 Theodore Sanchez  Council Member, Ward 2 Sandra Ibarra  Council Member, Ward 3 Juan Figueroa  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 John Valdivia  Acting City Clerk Genoveva Rocha  City Attorney Sonia Carvalho  City Manager Teri Ledoux  Regular Meeting Agenda August 19, 2020 Mayor and City Council of the City of San Bernardino Page 3 Printed 8/14/2020 5:30 P.M. CLOSED SESSION PUBLIC COMMENT CLOSED SESSION (A) CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(a) and (d)(1)): i. Paul Lentz v. City of San Bernardino, Workers’ Comp. Case No. ADJ36342 ii. Ashtyn Alexander v. City of San Bernardino, Workers’ Comp. Claim No. 18-138571 iii. Michael Gomez v. City of San Bernardino, Workers’ Comp. Claim No. 18 - 139152 iv. Sencio Chavez v. City of San Bernardino, Workers’ Comp. Claim No. CSBY-9611 v. Christopher De La Cruz v. City of San Bernardino, Workers’ Comp. Claim No. 19-141005 vi. Michael Smith v. City of San Bernardino, Workers’ Comp. Claim No. CSBY-9118 vii. Thomas Shank v. City of San Bernardino, Workers’ Comp. Claim No. 18 - 133928 viii. Gary Powell v. City of San Bernardino, Workers’ Comp. Claim No. CSBY- 9745 ix. Otis Herrington v. City of San Bernardino, Workers’ Comp Claim No. CSBY-9791 x. Veronica Garcia v. City of San Bernardino, Workers’ Comp. Case Nos. ADJ12031519 and ADJ8145927 xi. Kimberly Graham v. City of San Bernardino, Workers’ Comp. Claim No. 17-132017 xii. Pepe’s Inc. dba Pepe’s Towing v. City of San Bernardino, et al., United States District Court Case No. 5:18-cv-02277 SVW (SPx) xiii. Pepe’s Inc., a California Corporation, dba Pepe’s Towing v. City of San Bernardino, Virginia Marquez, et al., 9th Circuit Court of Appeal, Case No. 19-56501 xiv. Pepe’s Inc. v. City of San Bernardino, et al., California Court of Appeal, 4th Appellate District, Division 2, Case No. E0741745 (Underlying SBCSC Case No. CIVDS1827968) xv. Mirna Cisneros, an individual v. John Valdivia, et al., San Bernardino Superior Court Case No. CIVDS2012926 xvi. Jackie Aboud, an individual v. John Valdivia, et al., San Bernardino Superior Court Case No. CIVDS2013562 xvii. Karen Cervantes, an individual v. John Valdivia, et al., San Bernardino Superior Court Case No. CIVDS2012538 (B) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation (Pursuant to Government Code Section 54956.9(d)(2)): Two cases - Tort claim filed by Don Smith (dated March 31, Regular Meeting Agenda August 19, 2020 Mayor and City Council of the City of San Bernardino Page 4 Printed 8/14/2020 2020, revised July 15, 2020) and tort claim filed by Matthew Brown (dated July 22, 2020). (C) PUBLIC EMPLOYMENT/APPOINTMENT (Pursuant to Government Code Section 54957): City Manager (D) CONFERENCE WITH LABOR NEGOTIATOR (Pursuant to Government Code Section 54957.6): Agency Designated Representatives: Bob Hall & Associates and City Attorney; Unrepresented Employee: City Manager 7:00 P.M. INVOCATION AND PLEDGE OF ALLEGIANCE CLOSED SESSION REPORT PUBLIC COMMENTS FOR ITEMS LISTED AND NOT LISTED ON THE AGENDA STAFF REPORTS 1. Report on Use of Measure Z Funds for Fiscal Years 2016/17 through 2018/19 Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Receive a report on the use of Measure Z funds and accompanying independent auditor reports for f iscal years 2016/17 through 2018/19 approved by the Measure Z Citizen’s Oversight Committee on August 10, 2020; and 2. Consider the recommendations provided by the Measure Z Citizen’s Oversight Committee to adopt clear fiscal policies and procedures for the use of the City’s revenue. The City’s fiscal policies should be established to ensure the City’s long-term fiscal stability, providing clear direction so that the City’s finances are managed in a manner that will provide for the delivery of quality se rvices; ensure a balanced budget; and establish reserves necessary to meet known and unknown future obligations. The Committee further recommends that the City Council direct staff to prepare these fiscal policies to be reviewed by the Oversight Committee for input prior to being presented to the City Council for adoption. Should voters approve a 1% general district sales tax in November 2020 (renewing and increasing the Measure Z district sales tax scheduled to sunset on March 31, 2022) the Committee recommends the City Council provide clear direction as to how this revenue will be allocated including measurable goals prior to the November 2020 general election. The Mayor and City Council will need to establish clear guidelines along with an expenditur e plan that will enable the Committee to participate in the review and oversight of the use of this revenue in keeping with the City’s priorities including a balanced distribution of resources to support: Public safety, emergency response and violence intervention services Cleaner and safer neighborhoods Regular Meeting Agenda August 19, 2020 Mayor and City Council of the City of San Bernardino Page 5 Printed 8/14/2020 Retaining and attracting new businesses Street, park and library maintenance/improvements Youth, senior, and homeless service programs Additionally the Committee recommends that the City complete an annual audit report with the Oversight Committee assigned responsibility for reviewing the City’s compliance with the expenditure plan established for the use of the general district sales tax revenue. 2. Approve Changes in the Long-Range Property Management Plan Property Disposition Designations for the Real Property Located at 562 West 4Th Street San Bernardino (APNs 0134-131-10 and 0134-131-30) and 780 North “E” Street, San Bernardino (APN 0140-273-21) – Successor Agency Action Recommendation Adopt Resolution No. 2020-145, of the Mayor and City Council of the City of San Bernardino, California, acting as the Successor Agency to the Redevelopment Agency of the City of San Bernardino, approving changes to the Long-Range Property Management Plan (LRMP) property disposition designations for the real property located at 562 West 4th Street, San Bernardino (APNs 0134-131-10 and 0134-131-30) and 780 North “E” Street, San Bernardino (APN 0140-273-21) from future development use to government use. 3. City Clerk Employment Agreement Recommendation Adopt Resolution No. 2020-212 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute an employment agreement for the position of City Clerk (U) with Genoveva Rocha to commence on August 19, 2020. PUBLIC HEARINGS 4. Substantial Amendment Action Plan - Coronavirus Relief Funds Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California hold a public hearing and: 1. Adopt a Substantial Amendment to the FY 2020/21 Action Plan: a. Directing the Finance Director to amend the Fiscal Year 2020/21 Budget pursuant to the Substantial Amendment to the Fiscal Year 2020/21 Action Plan; b. Directing the Finance Director to establish new funds and associated accounts for the Community Development Block Grant (CDBG-CV1), the Emergency Solutions Grant (ESG-CV1) and (ESG-CV2), pursuant to the Substantial Amendment to the Fiscal Year 2020-2021 Action Plan; c. Directing the Finance Director to establish an account in the Low Mod Housing Fund (Fund 127), in the amount of $1,049,000 for Seccombe Park Housing Project, and reduce the budget for the project under HOME fund 116 by the same; d. Authorizing the City Manager or designee to t ake any further actions and Regular Meeting Agenda August 19, 2020 Mayor and City Council of the City of San Bernardino Page 6 Printed 8/14/2020 execute any further documents and certifications as may be necessary to effectuate the submittal of the Substantial Amendment to the Fiscal Year 2020/21 Action Plan; and 2. Adopt Resolution No. 2020-211 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to utilize the State allocated Coronavirus Relief Funds for eligible activities as authorized by the US Department of the Treasury. CONSENT CALENDAR 5. June and July 2020 City Board, Commission, and Citizen Advisory Committee Approved Minutes Recommendation Receive and file the minutes from the City board, commission, and citizen advisory committee meetings approved in July 2020. 6. Approval of Commercial and Payroll Disbursements Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California approve the commercial and payroll disbursements for July 2020. 7. Resolution Authorizing the OTS TRIP Grant Recommendation Adopt Resolution No. 2020-200 of the Mayor and City Council of the City of San Bernardino, California, authorizing the Director of Finance to amend the FY 2020/21 Adopted Budget by $48,800. 8. Resolution Authorizing a Purchase and Sale Agreement Between the City of San Bernardino and LEHR Auto Electric; Amending the Budget; and Issuing a Purchase Order to LEHR Auto Electric and Fairview Ford, Pursuant to the San Manuel Community Credit Fund Restricted Grant Agreement Recommendation Adopt Resolution No. 2020-201 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute a Professional Services Agreement between the City of San Bernardino and LEHR Auto Electric; authorizing the Director of Finance to amend the FY 2020/21 Adop ted Budget, appropriating $659,257 to issue a purchase order to LEHR Auto Electric in an amount not to exceed $120,000 and a purchase order to Fairview Ford in an amount not to exceed $84,000, and further authorize the Director of Finance to amend the FY 20/21 Adopted Budget to transfer the Unfunded Actuarial Liability in the amount of $312,369 from 001-210-8652-5034 into 001-120-0078-5034. 9. Resolution to Issue a Purchase Order to Fairview Ford Sales, Inc., for the Purchase of COVID-19 Resistant Vehicles Recommendation Adopt Resolution No. 2020-202 of the Mayor and City Council of the City of San Bernardino, California, authorizing the Director of Finance to issue a Purchase Order to Fairview Ford Sales, Inc., in an amount not to exceed $210,000. Regular Meeting Agenda August 19, 2020 Mayor and City Council of the City of San Bernardino Page 7 Printed 8/14/2020 10. Professional Services Agreement for Workers' Compensation Legal Services Recommendation Adopt Resolution No. 2020-203 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute a Professional Services Agreement between Goldman, Magdalin & Krikes LLP and the City of San Bernardino for workers’ compensation legal services. 11. First Amendment to the Professional Services Agreement Between the City of San Bernardino and Joe A. Gonsalves & Son for State Legislative Advocacy Services Recommendation Adopt Resolution No. 2020-204 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute the First Amendment to the Professional Services Agreement between the City of San Bernardino and Joe A. Gonsalves & Son for State Legislative Advocacy Services. 12. Purchase and Sale Agreement with Mat Baburyan, Trustee of the Mat Baburyan Revocable Trust, Dated February 21, 2017, with Respect to the Real Property Located at 757 and 761 N. Mt. Vernon Avenue (APNs 0139-291-60 and 0139-291-61) – Successor Agency Action Recommendation Adopt Resolution No. 2020-199 of the Mayor and City Council of the City of San Bernardino, California, acting as the Successor Agency to the Redevelopment Agency of the City of San Bernardino, approving the Purchase and Sale Agreement and Joint Escrow Instructions between the Successor Agency and Mat Baburyan, Trustee of the Mat Baburyan Revocable Trust, dated February 21, 2017, with respect to the real property located at 575 and 761 N. Mt. Vernon Avenue, San Bernardino, California (APNs 0139-291-60 and 0139-291-61), and approve certain related actions. 13. Resolution Approving the Transfer of City Real Property Assets to Housing Partners I, Inc. Recommendation Adopt Resolution No. 2020-205 of the Mayor and City Council of the City of San Bernardino, California, approving the transfer of certain City-owned real property assets to Housing Partners I Inc., for the Infill Housing Program and authorize the City Manager or designee to take any further actions as necessary to effectuate the transfer of the real property assets. 14. Resolution Approving a Subordination of a Deed of Trust for 3248 Greystone Road, San Bernardino, California Recommendation Adopt Resolution No. 2020-206 of the Mayor and City Council of the City of San Bernardino, California, acting as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino , approving a Subordination of a Deed of Trust in connection with a refinancing of the senior mortgage relating to real property located at 3248 Greystone Road, San Bernardino, California. Regular Meeting Agenda August 19, 2020 Mayor and City Council of the City of San Bernardino Page 8 Printed 8/14/2020 15. Final Reading of Ordinance MC-1541 Establishing the Maximum Number of Cannabis Business Permits Recommendation Accept for final reading and adopt Ordinance MC-1541 of the Mayor and City Council of the City of San Bernardino, California, establishing the maximum number of cannabis business permits authorized, pursuant to Section 5.10.080 of the San Bernardino Municipal Code. 16. Resolution Approving a Construction Agreement W/Tetra Tech for Waterman Landfill Upgrades Recommendation Adopt Resolution No. 2020-142 of the Mayor and City Council of the City of San Bernardino, California, approving a construction contract with Tetra Tech, Inc. of San Bernardino, California, for landfill gas collection and treatment system upgrades at the Waterman Landfill and authorizing the City Manager to execute the contract. 17. Resolution Awarding a Construction Contract to TSR Construction and Inspection for Animal Shelter Electrical Service Replacement Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2020-207: 1. Approving a total project budget for the Animal Shelter Electrical Service Replacement Project (CIP GB20-001) in the amount of $213,000 for the construction contract in the amount of $187,389, project contingencies in the amount of $19,000, and engineering and inspection budgets in the amount of $6,611; and 2. Approving the award of a Construction Contract with TSR Construction and Inspection of Rancho Cucamonga, California in the amount of $187,389; and 3. Authorizing the Acting Director of Finance to amend the adopted FY 2020/21 CIP to reflect a total project budget of $213,000 and record any necessary budget adjustments in Animal Shelter Improvement Fund No. 124; and 4. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project. 18. Resolution Approving the Patton Basin Outlet Repair Change Order Recommendation Adopt Resolution No. 2020-208 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute a Contract Change Order (CCO) #1 to Project No. 8015 with Jeremy Harris Construction Inc., in the amount of $78,595.50, for a full construction contract not-to-exceed amount of $574,966.50 and authorizing the Acting Director of Finance to increase the purchase order to reflect the full construction cost. Regular Meeting Agenda August 19, 2020 Mayor and City Council of the City of San Bernardino Page 9 Printed 8/14/2020 19. Resolution Approving Revised Cooperative Agreement with SBCTA for Metrolink Accessibility Phase II Recommendation Adopt Resolution No. 2020-209 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute the revised Cooperative Agreement No. 20-1002318 with the San Bernardino County Transportation Authority (SBCTA) for Phase II of the San Bernardino Metrolink Station Accessibility Improvement Project and authorizing the Acting Director of Finance to record a budget adjustment in the Measure I Fund No. 129 in the amount of $18,000 to support the project. 20. First Amendment to Vendor Services Agreement with RP Landscape and Irrigation - Bryce Hanes Park Recommendation It is respectfully recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution 2020-210: 1. Approving First Amendment to Vendor Services Agreement between the City of San Bernardino, California, and RP Landscape and Irrigation for landscape maintenance of the City’s north, central and south park sites (“First Amendment”) through June 30, 2021, to include maintenance services at Bryce Hanes Park in the amount of $32,787 for FY 2020/21 ($3,278.70 per month); and 2. Authorizing the City Manager to execute the First Amendment; and 3. Authorizing the Director of Finance to record budget adjustments to FY 2020/21 Operating Budget for Bryce Hanes Park Landscape Maintenance Fund No. 001 - 400-8790 to support the park’s landscape maintenance contract, infra structure maintenance and utility expenses totaling $66,188. 21. Final Reading and Adoption of Ordinance MC-1538 Amending Ordinance MC- 1522 and Levying Special Taxes to be Collected During Fiscal Year 2020/21 Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, conduct a final reading and adopt Ordinance MC -1538 amending Ordinance MC-1522 and levying special taxes to be collected during Fiscal Year 2020/21 to pay the annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintenance, a reserve fund for capital replacement and administrative expenses , with respect to City of San Bernardino Community Facilitie s District No. 2019-1 (Maintenance Services). 22. Final Reading and Adoption of Ordinance MC-1539 Amending Ordinance MC- 1522 and Levying Special Taxes Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, conduct a final reading and adopt Ordinance MC -1539 amending Ordinance MC-1522 and levying special taxes to be collected during Fiscal Year 2020/21 to pay the annual costs of the maintenance and servicing of landscaping, Regular Meeting Agenda August 19, 2020 Mayor and City Council of the City of San Bernardino Page 10 Printed 8/14/2020 lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintenance, a reserve fund for capital replacement and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019 -1 (Maintenance Services). 23. Authorization to Issue a Purchase Order to Connections for the Renewal of Microsoft Office 365 in an Amount Not to Exceed $166,345.00 for FY 2020/21 Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager or designee to authorize the purchase of Microsoft Office 365 from Connections in an amount not to exceed $166,345. 24. Final Reading and Adoption of Ordinance MC-1540 Authorizing the Levy of Special Taxes Recommendation It is recommended that the Mayor and City Council if the City of San Bernardino, California, conduct a final reading and adopt Ordinance MC-1540 levying special taxes to be collected during Fiscal Year 2020/21 to pay the annual costs of certain public improvements and costs of administration with respect to City of San Bernardino Community Facilities District No. 2020-1. ITEMS TO BE REFERRED TO COMMITTEE REPORTS ON CONFERENCES/MEETINGS ATTENDED ADJOURNMENT The next joint regular meeting of the Mayor and City Council and t he Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency will be held on Wednesday, September 2, 2020, via web-conference. Closed Session will begin at 5:30 p.m. and Open Session will begin at 7:00 p.m. CERTIFICATION OF POSTING AGENDA I, Genoveva Rocha, CMC, Acting City Clerk for the City of San Bernardino, California, hereby certify that the agenda for the August 19, 2020 Regular Meeting of the Mayor and City Council and the Mayor and City Council acting as the Successor Agency to the Redevelopment Agency was posted on the City’s bulletin board located at 201 North “E” Street, San Bernardino, California, at the San Bernardino Public Library located at 555 West 6th Street, San Bernardino, California, and on the City’s website sbcity.org on Friday, August 14, 2020. I declare under the penalty of perjury that the foregoing is true and correct. ___________________________________ Genoveva Rocha, CMC, Acting City Clerk Regular Meeting Agenda August 19, 2020 Mayor and City Council of the City of San Bernardino Page 11 Printed 8/14/2020 NOTICE: 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 f or 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. Page 1 Staff Report City of San Bernardino Request for Council Action Date: August 19, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By: Jim Slobojan, Acting Finance Director Subject: Report on Use of Measure Z Funds for Fiscal Years 2016/17 through 2018/19 Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Receive a report on the use of Measure Z funds and accompanying independent auditor reports for fiscal years 2016/17 through 2018/19 approved by the Measure Z Citizen’s Oversight Committee on August 10, 2020; and 2. Consider the recommendations provided by the Measure Z Citizen’s Oversight Committee to adopt clear fiscal policies and procedu res for the use of the City’s revenue. The City’s fiscal policies should be established to ensure the City’s long-term fiscal stability, providing clear direction so that the City’s finances are managed in a manner that will provide for the delivery of qu ality services; ensure a balanced budget; and establish reserves necessary to meet known and unknown future obligations. The Committee further recommends that the City Council direct staff to prepare these fiscal policies to be reviewed by the Oversight Committee for input prior to being presented to the City Council for adoption. Should voters approve a 1% general district sales tax in November 2020 (renewing and increasing the Measure Z district sales tax scheduled to sunset on March 31, 2022) the Committee recommends the City Council provide clear direction as to how this revenue will be allocated including measurable goals prior to the November 2020 general election. The Mayor and City Council will need to establish clear guidelines along with an expenditure plan that will enable the Committee to participate in the review and oversight of the use of this revenue in keeping with the City’s priorities including a balanced distribution of resources to support: Public safety, emergency response and violence intervention services Cleaner and safer neighborhoods Retaining and attracting new businesses Street, park and library maintenance/improvements Youth, senior, and homeless service programs 1 Packet Pg. 12 6875 Page 2 Additionally the Committee recommends that the Cit y complete an annual audit report with the Oversight Committee assigned responsibility for reviewing the City’s compliance with the expenditure plan established for the use of the general district sales tax revenue. Background Measure Z was approved by the voters of San Bernardino on November 7, 2006. The Measure enacted a $0.25 general sales tax for a period of fifteen (15) years, beginning April 1, 2007, raising the total sales tax in the City of San Bernardino from 7.75% to 8% through March 31, 2022. Voters also approved the advisory Measure YY, which states that the proceeds of Measure Z are to be used for more police officers, support personnel, and to fund anti-gang and anti-crime operations, including drug resistance education and supervisory after-school youth activities. The Measure Z Citizen’s Oversight Committee is responsible for monitoring Measure Z expenditures to ensure that funds are spent in accordance with Measure YY and reporting to the public. The Measure Z Citizens Oversight Committee met on July 20, 2020, to review and discuss the results of the independent auditor’s reports for Measure Z expenditures that occurred in fiscal years 2016/17 through 2018/19. The Committee met again on August 10, 2020 to consider additional analysis regarding expenditures in the context of overall General Fund expenditures (supplementation v. supplantation), further detail of expenditures for the years covered in the audits, and expanded explanation regarding audit procedures. Each of these matters is discussed in further detail in the sections below. The independent auditor’s reports regarding Measure Z revenues and expenditures for fiscal years 2016/17 through 2018/19 noted no exceptions and determined revenues were properly collected and accounted for in the City’s financial records. Following a review and discussion of the Measure Z revenue and expenditure analysis for fiscal years 2016/17 through 2018/19, the committee approved the independent auditor’s reports confirming that the City’s Measure Z funds were spent in accordance with the requirements of Measure YY. Additionally the Committee reviewed, discussed and finalized recommendations to be consideration by the Mayor and City Council as part of this report. Discussion Supplement vs. Supplant Assessment When analyzing whether Measure Z revenues supplemented or supplanted funding for existing programs, it is important to discuss Measure Z in the context of the City’s overall financial situation at the time the Measure was approved by voters. When Measures Z and YY were enacted in FY 2006/07, the intent of the measures was to add additional law enforcement staff -both sworn and civilian-to the then-existing level of budgeted positions. Almost immediately after the measure’s adoption the Great Recession began, leading to a five-year period of unprecedented declines in City 1 Packet Pg. 13 6875 Page 3 revenues, and thus related cuts in programs and staff. This included reductions in the Police Department, the City’s single largest department. The chart below shows the severe dip in sales tax that occurred during this period. In FY 2005/06 the City collected $36.7 million annually; by FY 2009/10 this amount had decreased to $20.4 million annually. The impact on revenues from the Great Recession reset the City’s baseline for funding all programs. The timing of Measure Z, although unplanned, coincided with the recession and prevented even further reductions to Police Department expenditures at that time. Compounding the effects of the recession, as the rest of the state was beginning to see recovery in their local economies, the City of San Bernardino filed for protection under Chapter IX of the Federal Bankruptcy Code. Until the City’s official exit from bankruptcy in June 2017, the City’s service levels saw little to no progress as City staff focused their primary attention on the matters associated with processing the bankruptcy. A significant loss in staffing occurred across all City departments, which assisted in balancing the budget during the bankruptcy years. H owever, during these years the Police Department’s budget, as percentage of total General Fund expenditures remained consistent or increased. As evidenced by the following table, the City’s overall budget was significantly reduced in the periods since adoption of Measure Z. Accordingly, the overall budget for law enforcement expenditures was also reduced. However, the additional funding provided by Measure Z has enabled the City to sustain and enhance the Police Department’s share of General Fund budget in addition to building the City’s violence intervention program. At the time of the adoption of Measure Z, law enforcement expenditures were 53% of the City’s overall spending within the General Fund budget. In each subsequent fiscal year, the additional funding provided by Measure Z has enabled law enforcement expenditures to remain at or higher than this 53% base level, even while other 1 Packet Pg. 14 6875 Page 4 resources available to the City have continued to decline. Note: For comparison purposes, the General Fund Budget amounts above exclude the Fire Department, which was outsourced to the San Bernardino County Fire Protection District in FY2017. Without Measure Z funding, much deeper cuts would have been required in law enforcement and violence intervention program spending during each of the reported years. Therefore, Measure Z funds have enhanced, rather than supplanted, the City’s spending on law enforcement and anti-crime programs. Financial Analysis for Audit Periods FY 2016/17, 2017/18 & 2018/19 Revenues and expenditures for the fiscal periods under review are listed below: The table indicates that for FYs 2016/17 through FY 2018/19, in total, Measure Z expenditures were $14,279 more than total Measure Z revenues for the combined audit periods; the additional costs were covered by General Fund sources. This reflects that the City has expended the full allocation of Measure Z funds to date. Measure Z Revenue Measure Z revenue decreased by $1.1M from FY2016/17 to FY2017/18. In FY 2017/18, the State shifted sales tax collection and distribution responsibilities from the State Board of Equalization to the California Department of Tax and Fee Administration (CDTFA). This transition resulted in delayed payments. These delayed payments 1 Packet Pg. 15 6875 Page 5 were subsequently received in FY2018/19 which, along with overall sales tax growth, resulted in an increase of $2.3M in FY2018/19 to a total of $9.7M. These same delays and subsequent catch-up were experienced with the City’s general Sales Tax revenues as well, and all cities throughout California encountered the same delays in FY 2017/18. Measure Z Expenditures As illustrated by the chart below, the City’s commitment to enhanced funding for public safety continued through the period under review. The percentage of the General Fun d budget expended on law enforcement and violence intervention programs increased from 53% to 63% during the period under review, consistent with the increase in Measure Z revenues over the same period. Based on the projected revenues for each year, the City identifies specific positions to be funded by the anticipated Measure Z revenues. As required under advisory Measure YY, these identified positions are substantially dedicated to performing law enforcement, violence intervention, and anti-crime operations. Even as the City encountered significant budget deficits in each of the periods under review, a greater percentage of General Fund revenue was allocated to both the Police Department and the Violence Intervention Program as compared to other servic e areas. It is important to note that support costs related to these positions (vehicles, equipment, administration, etc.) are paid with other General Fund sources. The following details Measure Z expenditures for the three periods under review: 1 Packet Pg. 16 6875 Page 6 The decrease in expenditures from FY2016/17 to FY2017/18 is primarily due to a change in how CalPERS charges the City for its unfunded pension liability. The City no longer pays the unfunded pension liability payments through payroll; rather the City now pays an annual lump sum. This has moved these costs out of the Measure Z expenditures enabling the City to retain the same level of resources dedicated to Measure Z activities in FY2016/17 and FY2017/18, despite facing budget deficits requiring considerable cuts to other programs and staffing throughout the City. The increase in expenditures from FY2017/18 to FY2018/19 is due to additional personnel allocated to Measure Z-related activities in FY 2018/19 as discussed below, in addition to scheduled salary increases. Measure Z Staffing Levels For fiscal years 2016/17 and 2017/18 the charges above represent the costs for 40 sworn and 15 civilian positions, including 5 sergeants, 4 detectives, and 31 officers. In FY 2018/19, due to the increased Measure Z revenue, the City was able to allocate 15 additional law enforcement officers to Measure Z activities, for a total of 55 sworn and 15 civilian positions. This period also includes the salary and benefits of the Violence Intervention Program (VIP) Manager. The VIP is designed to respond to community violence as an effort to reduce gun violence in the City, to improve outcomes for young people at highest risk of violence, and to strengthen trust-based working partnerships between the community and the Police. The City aims to achieve these goals and objectives through real -time analysis and coordination of trauma-informed, culturally relevant intervention and prevention strategies, individual and family case management services, crime suppression rooted in principles of procedural justice, and long-term transitional service plans for individuals. While Measure Z funds the costs of the VIP Manager, funding for outreach/intervention contracted services is funded with grant revenue. 1 Packet Pg. 17 6875 Page 7 The following graph illustrates the annual revenues and expenditures for Measure Z funds since inception: Audit Procedures As stipulated in the Measure Z Oversight Committee’s Roles and Responsibilities adopted by the Mayor and City Council on February 20, 2007, the committ ee is tasked with monitoring expenditures to ensure that funds are spent in accordance with Measure YY and reporting to the public. A review of Measure Z revenue and expenditures by an independent accounting firm is part of the review process. Staff retained the services of Rogers, Anderson, Malody and Scott, LLP (RAMS) as the independent Certified Public Accounting firm to perform an audit to evaluate the accuracy of reported Measure Z revenues and the propriety of expenditures allocated to 1 Packet Pg. 18 6875 Page 8 those revenues for Fiscal Years 2016/17 through 2018/19. These procedures were designed to ensure that the City’s accounting of the Measure Z Funds was accurate and that the funds were expended in accordance with the guidelines stipulated by advisory Measure YY. Audit of Measure Z Revenues To ensure the revenues associated with Measure Z were properly recorded, the independent auditor compared the City’s records of Measure Z receipts with the distribution reports published by the California Department of Tax and Fee Administration for each period under review. Although as a general tax, Measure Z funds are recorded in the City’s General Fund similar to the City’s allocation of general Sales Tax revenue, Measure Z revenue is tracked separately in its own account to ensure a proper segregation from other General Fund receipts in accordance with the advisory measure. RAMS did not identify any exceptions associated with the City’s recording of Measure Z revenues. Audit of Measure Z Expenditures To ensure the expenditures associated with Measure Z were properly recorded, the independent auditor examined a summary expenditure report of all Measure Z expenditures for each of the periods under review. RAMS observed that all expenditures for the three-year period reviewed were payroll costs related to Police Department and Violence Intervention Program employees. The auditor selected and tested a sample of employees to determine whether the allocation of salaries and benefits to Measure Z was reasonable and appropriate. RAMS’ pr ocedures included verification that the nature of the salaries and benefits allocated to Measure Z was consistent with the programs and activities allowed under Measures Z and YY. RAMS did not identify any exceptions associated with the City’s recording of Measure Z expenditures. To enable the auditor to assess the appropriateness of Measure Z expenditures consistent with the purpose of Measures Z and YY, RAMS reviewed the applicable ordinances and resolutions passed by the City Council, as well as the b allot language of Measures Z and YY. Based on the understanding gained from the relevant regulations, RAMS did not identify any exceptions relative to the use of the Measure Z expenditures, resulting in the conclusion that the funds were spent as required by advisory Measure YY for each of the three fiscal years under review. 2020-2025 Key Strategic Targets and Goals The presentation of the Report on the Use of Measure Z Funds for Fiscal Years 2016/17 through 2018/19 aligns Key Target No. 1b: Implement, maintain and update a 1 Packet Pg. 19 6875 Page 9 fiscal accountability plan, by completing a detailed analysis of the use of Measure Z funds. Fiscal Impact There is no specific impact to City funds associated with receiving this report. However, its subject matter, Measure Z funds, represents approximately $8 million to $9 million annually which helps to support the cost of law enforcement and other violence intervention activities in the City. Measure Z funds account for nearly 7% of total General Fund revenues and are a key City revenue source in support of public safety for the City of San Bernardino. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Receive a report on the use of Measure Z funds and accompanying indepe ndent auditor reports for fiscal years 2016/17 through 2018/19 approved by the Measure Z Citizen’s Oversight Committee on August 10, 2020; and 2. Consider the recommendations provided by the Measure Z Citizen’s Oversight Committee to adopt clear fiscal policies and procedures for the use of the City’s revenue. The City’s fiscal policies should be established to ensure the City’s long-term fiscal stability, providing clear direction so that the City’s finances are managed in a manner that will provide for the delivery of quality services; ensure a balanced budget; and establish reserves necessary to meet known and unknown future obligations. The Committee further recommends that the City Council direct staff to prepare these fiscal policies to be reviewed by the Oversight Committee for input prior to being presented to the City Council for adoption. Should voters approve a 1% general district sales tax in November 2020 (renewing and increasing the Measure Z district sales tax scheduled to sunset on March 31, 2022) the Committee recommends the City Council provide clear direction as to how this revenue will be allocated including measurable goals prior to the November 2020 general election. The Mayor and City Council will need to establish clear guidelines along with an expenditure plan that will enable the Committee to participate in the review and oversight of the use of this revenue in keeping with the City’s priorities including a balanced distribution of resources to support: Public safety, emergency response and violence intervention services Cleaner and safer neighborhoods Retaining and attracting new businesses Street, park and library maintenance/improvements Youth, senior, and homeless service programs Additionally the Committee recommends that the City complete an annual audit report with the Oversight Committee assigned responsibility for reviewing the 1 Packet Pg. 20 6875 Page 10 City’s compliance with the expenditure plan established for the use of the general district sales tax revenue. Attachments Attachment 1 Measure Z Audit Results & Committee Recommendations Presentation Attachment 2 August 10, 2020 Draft Minutes - Measure Z Citizen’s Oversight Committee Meeting Attachment 3 Report of Independent Accountant for FYE June 30, 2017 Attachment 4 Report of Independent Accountant for FYE June 30, 2018 Attachment 5 Report of Independent Accountant for FYE June 30, 2019 1 Packet Pg. 21 Measure Z Audit Results & Committee Recommendations FY 2016/17 through FY 2018/19 Presented by: Sam Singery, Accounting Division Manager Rev. Bronica Martindale-Taylor, Measure Z Citizens Oversight Committee Chair 1.a Packet Pg. 22 Attachment: Measure Z Attach 1 (6875 : Report on Use of Background Measure Z: •0.25% transaction tax approved by voters in November 2006 •Beginning April 1, 2007 •Scheduled to sunset on March 31, 2022 •Citizens Oversight Committee created to report on the use of proceeds Measure YY: •Directed Measure Z proceeds to fund “more police officers and support personnel, fund anti-gang and anti-crime operations, including drug resistance education and supervised after-school youth activities” 1.a Packet Pg. 23 Attachment: Measure Z Attach 1 (6875 : Report on Use of Measure Z Expenditure Policy Adopted by Council on March 5, 2007 •Funds to be spent in accordance with Measure YY •Intent to use Measure Z funds to enhance, not supplant, current spending on law enforcement and crime prevention programs •Fund additional programs that could not be continued without Measure Z funding: •Overtime for Crime Impact Teams •Crime suppression supplies •Incremental cost for 14 sworn and 3 non-sworn positions •Enhanced recruitment efforts 1.a Packet Pg. 24 Attachment: Measure Z Attach 1 (6875 : Report on Use of •Oversight Committee met on July 20, 2020 and August 10, 2020 •Reviewed FY 2016/17 through FY 2018/19 •Committee and City staff discussed: •Financial Analysis of Measure Z Revenues and Expenditures •Supplant vs. Supplement Analysis •Audit Procedures and Results •Reviewed independent auditor’s reports •No exceptions identified for FY 2016/17 through 2018/19 •Funds were expended as required by advisory Measure YY for the period under review Overview 1.a Packet Pg. 25 Attachment: Measure Z Attach 1 (6875 : Report on Use of •The Mayor and City Council should establish clear guidelines along with an expenditure plan for Measure Z funds •The Committee further recommends that the City Council direct staff to prepare these fiscal policies to be reviewed by the Oversight Committee for input prior to being presented to the City Council for adoption •Enable the Committee to participate in the review and oversight of funds Committee Recommendations 1.a Packet Pg. 26 Attachment: Measure Z Attach 1 (6875 : Report on Use of •Should voters approve a 1% general district sales tax in November 2020, the Committee recommends: •Clear direction on revenue allocation—including measurable goals—prior to the November 2020 general election •A balanced distribution of resources to support: •Public safety, emergency response and violence intervention services •Cleaner and safer neighborhoods •Retaining and attracting new businesses •Street, park and library maintenance/improvements •Youth, senior, and homeless service programs •Annual audit requirement •Oversight Committee responsible for reviewing the City’s compliance with expenditure plan Committee Recommendations (Cont.) 1.a Packet Pg. 27 Attachment: Measure Z Attach 1 (6875 : Report on Use of Questions/Discussion 1.a Packet Pg. 28 Attachment: Measure Z Attach 1 (6875 : Report on Use of City of San Bernardino 290 North D Street San Bernardino, CA 92401 http://www.sbcity.org Measure Z Oversight Committee of the City of San Bernardino Page 1 August 13, 2020 DRAFT MINUTES FOR THE MEASURE Z OVERSIGHT COMMITTEE OF THE CITY OF SAN BERNARDINO AUGUST 10, 2020 VIA ZOOM CALL TO ORDER The Regular Meeting of the Measure Z Oversight Committee of the City of San Bernardino was called to order by Rev. Bronica Martindale-Taylor at 5:33pm, August 10, 2020, via Zoom Web Conference, San Bernardino, CA. PLEDGE OF ALLEGIANCE ROLL CALL Attendee Name Title Status Arrived Venus L. Williams Committee Member, Ward 1 Present Gloria G. Amaya Committee Member, Ward 2 Present Gary Walbourne Committee Member, Ward 3 Absent 5:45 p.m. Karina G. Cornejo Committee Member, Ward 4 Absent Eric Roark Committee Member, Ward 5 Present 5:57 p.m. Rev. Bronica Martindale- Taylor Committee Member, Ward 6 Present Felicia C. Alexander Committee Member, Ward 7 Present Richard P. Avila Committee Member, Mayor’s Appointee Present Clifford R. Cummings Committee Member, Mayor’s Appointee Present Jim Slobojan Staff Liaison Present Chairperson Rev. Bronica Martindale Vice Chairperson Rick Avila Committee Members Venus L. Williams Gloria G. Amaya Gary Walbourne Karina G. Espinoza Eric Roark Felicia C. Alexander Clifford R. Cummings 1.b Packet Pg. 29 Attachment: Measure Z Attach 2 (6875 : Report on Use of Measure Z Funds for Fiscal Years 2016/17 through 2018/19) Regular Meeting Minutes August 10, 2020 Measure Z Oversight Committee of the City of San Bernardino Page 2 August 13, 2020 PUBLIC COMMENTS None CONSENT CALENDAR 1. Review and Approval of Minutes from July 20, 2020 – Chairperson, Rev. Bronica Martindale-Taylor requested a correction of the minutes to include quote by Henry Ford shared at the close of the meeting. With this addition the minutes were approved. RESULT: ADOPTED MOVER: Felicia C. Alexander SECONDER: Rick Avila AYES: Amaya, Alexander, Cummings, Roark, Taylor, Williams ABSENT: Cornejo, Walbourne 2. Review and discuss the Auditors Report for the City of San Bernardino’s Measure Z Revenues and Expenditures for the Periods that Ended June, 30, 2017, through June 30, 2019 Motion: Following a review and discussion of the Measure Z revenue and expenditure analysis for fiscal years 2016/17 through 2018/19, the committee approved the independent auditor’s reports for all three years under review. RESULT: ADOPTED MOVER: Eric Roark SECONDER: Clifford Cummings AYES: Amaya, Alexander, Cummings, Roark, Taylor, Williams ABSENT: Cornejo, W albourne 3. Review and discuss next steps – Preparation and presentation of Committee’s report to the Mayor and City Council, including Committee Recommendation(s) Motion: Chairperson Rev. Bronica Martindale-Taylor presented draft recommendation to be considered by the Measure Z Citizen’s Oversight Committee for inclusion in the staff report presented to the Mayor and City Council along with the Measure Z audit report findings for fiscal years 2016/17 through 2018/19. Following review and discussion the committee members present gave direction of include the following recommendation in the Committee’s report to the Mayor and City Council on August 19th. 1.b Packet Pg. 30 Attachment: Measure Z Attach 2 (6875 : Report on Use of Measure Z Funds for Fiscal Years 2016/17 through 2018/19) Regular Meeting Minutes August 10, 2020 Measure Z Oversight Committee of the City of San Bernardino Page 3 August 13, 2020 Recommendation: The Measure Z Citizen’s Oversight Committee recommends that the Mayor and City Council adopt clear fiscal policies and procedures for the use of the City’s revenue. The City’s fiscal policies should be established to ensure the City’s long-term fiscal stability, providing clear direction so that the City’s finances are managed in a manner that will provide for the delivery of quality services; ensure a balanced budget; and establish reserves necessary to meet known and unknown future obligations. The Committee further recommends that the City Council direct staff to prepare these fiscal policies to be reviewed by the Oversight Committee for input prior to being presented to the City Council for adoption. Should voters approve a 1% general district sales tax in November 2020 (renewing and increasing the Measure Z district sales tax scheduled to sunset on March 31, 2022) the Committee recommends the City Council provide clear direction as to how this revenue will be allocated including measurable goals prior to the November 2020 general elec tion. The Mayor and City Council will need to establish clear guidelines along with an expenditure plan that will enable the Committee to participate in the review and oversight of the use of this revenue in keeping with the City’s priorities including a balanced distribution of resources to support:  Public safety, emergency response and violence intervention services  Cleaner and safer neighborhoods  Retaining and attracting new businesses  Street, park and library maintenance/improvements  Youth, senior, and homeless service programs Additionally the Committee recommends that the City complete an annual audit report with the Oversight Committee assigned responsibility for reviewing the City’s compliance with the expenditure plan established for the use of the general district sales tax revenue. RESULT: ADOPTED MOVER: Clifford Cummings SECONDER: Eric Roark AYES: Alexander, Cummings, Roark, Taylor, Williams ABSENT: Amaya, Cornejo, Walbourne 1.b Packet Pg. 31 Attachment: Measure Z Attach 2 (6875 : Report on Use of Measure Z Funds for Fiscal Years 2016/17 through 2018/19) Regular Meeting Minutes August 10, 2020 Measure Z Oversight Committee of the City of San Bernardino Page 4 August 13, 2020 4. Adjournment The meeting adjourned at 6:51 p.m. with a quote provided by Chairperson Rev. Bronica Martindale-Taylor: “Whether you think you can, or you think you can’t -- you’re right.”- Henry Ford The next Regular Meeting of the Measure Z Oversight Committee Schedule to Review Measure Z Revenues and Expenditures for Fiscal Year Ending June 30, 2020, will be held on Monday February 1, 2021 at 5:30 p.m. By: __________________________ Jim Slobojan, Acting Director of Finance 1.b Packet Pg. 32 Attachment: Measure Z Attach 2 (6875 : Report on Use of Measure Z Funds for Fiscal Years 2016/17 through 2018/19) City of San Bernardino San Bernardino, California Agreed-Upon Procedures Applied to City of San Bernardino Measure Z Revenues and Expenditures Analysis For the Period Ended June 30, 2017 1.c Packet Pg. 33 Attachment: Measure Z Attach 3 (6875 : Report on Use of Measure Z Funds for Fiscal Years 2016/17 through 2018/19) 735 E. Carnegie Dr . Su ite I 00 San Bernardino, CA 92408 909 889 0871 T 909 889 536 1 F ramscpa.net PARTNERS Brend' L Od!P, CPA MST ferry P Shea. CP,\ 1<'1rk A r1,nks. CPA Scott W Manno. CPA. CGMI\ L••eno Shmbhag. Cf A 11ST. CGMA Br01clferd A \'/"leb1r. CPA. MBA. CGMA jay H Zercher, t PA (PMwer [mentusl Phillip H Waller. CPA (Panner Ement11s) MANAGERS I STAFF jenny Liu CPA MST Seong-Hyea I r.e. PA. MBA Ch'1rlcs D• S1mo111. C 'A Gardenya Duf"'1n, CPA Brianna Schultz, CPA L1s.1 Dongi<uP Guo. CPA MSA Samu!'I S1ngcry. CPA jingWu. CPA MEMBERS ArnL'.l IGlll lnst1cute or Ccrt1f1cd Pubhc Accountants PCPS The A/CPA All1a11cc (or CPA Firms G Vf•f•ifrl('rJWI A.J lit Q11-./1tv (fnt1· Ernr'/, YP· ll•·r "['' Pinn A id c Q1'' cy (, r.r~r l.1 + ornt,\ ( c1rc, of C..1" 1 •·· d Plil he t,1 mtJnts ROGERS, ANDERSON, MALODY & SCOTT, LLP CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948 INDEPENDENT ACCOUNTANT'S REPORT ON APPL YING AGREED-UPON PROCEDURES To the City of San Bernardino San Bernardino , California We have performed the procedures enumerated in the following pages , which were agreed to by management of the City of San Bernardino (the City), for the Measure Z Citizens Oversight Committee of the City ,to assist the City in evaluating components of Measure Z Revenues and Expenditures for the year ended June 30, 2017. City management is responsible for accounting records pertaining to Measure Z Revenues, Expenditures and related reporting. The sufficiency of these procedures is solely the responsibility of City management. Consequently, we make no representations regarding the sufficiency of the procedures enumerated either for the purpose for which the report has been requested or any other purpose. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants . We were not engaged to, and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion of the financial statements of the City for the year ended June 30, 2017. Accordingly , we do not express such an opinion or conclusion . Had we performed additional procedures , other matters might have come to our attention that would have been reported to you. This report is intended solely for the use of the specified users listed above and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures fo r their purposes . f.opeM , A-~,.., M~ .z ktt, LLf'. November 9, 2018 -1- STABILITY. ACCURACY. TRUST. 1.c Packet Pg. 34 Attachment: Measure Z Attach 3 (6875 : Report on Use of Measure Z Funds for Fiscal Years 2016/17 through 2018/19) -2- Procedures Performed and Findings Measure Z Revenues Agreed Upon Procedure: Obtain and evaluate the summary revenue detail reports from the City’s general ledger for the Measure Z Public Safety Tax for the year ended June 30, 2017. Evaluate the supporting cash receipts to ensure that the City properly recorded the receipts of the voter approved transaction and use tax. Procedures Performed: We obtained cash disbursement reports from the California Board of Equalization and reconciled the disbursement report totals to the amount recorded the City’s general ledger for each year. 2016-2017 Transaction (Sales) and Use Tax Cash Receipts 8,452,645.82$ Accrual Change 106,400.00 Total Revenue 8,559,045.82$ Findings: No exceptions were noted. The revenue amounts collected under Measure Z were properly accounted for in the City’s general ledger. 1.c Packet Pg. 35 Attachment: Measure Z Attach 3 (6875 : Report on Use of Measure Z Funds for Fiscal Years 2016/17 through 2018/19) -3- Measure Z Expenditures Agreed Upon Procedure: Evaluate the summary expenditure detail reports from the City's general ledger for the Measure Z Public Safety Tax for the fiscal years as listed above. Procedures Performed: We requested expenditure reports for Measure Z. Based on an examination of the reports received from City staff, there were no non payroll related expenditures for Measure Z funding during the fiscal year under examination. Procedures were performed on the payroll related expenditures as described in the Measure Z Payroll Transactions section of this report below. We further analyzed total expenditures, consisting entirely of payroll related expenditures, in relation to the Measure Z revenues received. Findings: No findings were made in relation to non-payroll related expenditures since no such expenditures were made. Measure Z Payroll Transactions Agreed Upon Procedures: Obtain and evaluate select payroll transactions to determine whether the allocation of salaries and benefits to the Measure Z Public Safety Tax were reasonable and inspect selected transactions charged against Measure Z revenues to determine if the salaries and benefits allocated were reasonable based upon the nature of the employee position and agree to underlying payroll records. Procedures Performed: We obtained Labor Distribution Reports from the City general ledger system for fiscal year 2016-17. This report showed the expenditures that were allocated to Measure Z. We determined the most significant categories of expenditures based on dollar totals as salaries, health insurance and PERS retirement. The City allocates 100% of the cost of select public safety employees to Measure Z funding. We obtained the Measure Z employee listing for fiscal year 2016-17 and compared it to the details in each selected account as shown on the Labor Distribution reports. We selected five employees for fiscal year 2016-17 from the Measure Z employee listing. We then compared and agreed the payroll register amount from to the details payments shown on the Labor Distribution reports. This was done for four pay periods in the fiscal year. Findings: No exceptions were noted. The amounts included in the City’s general ledger reports were consistent with the amounts listed in the payroll records examined. 1.c Packet Pg. 36 Attachment: Measure Z Attach 3 (6875 : Report on Use of Measure Z Funds for Fiscal Years 2016/17 through 2018/19) -4- Other Procedures We will analyze the following documents in order to gain an understanding of the requirements stated in Measure Z: • Ordinance No. MC- 1229 • Resolution 2006-286 • Resolution 2006-287 • Resolution 2006-288 • Resolution 2006-289 Notes: 1. It was noted in performing the procedures the total salary related expenditures exceeded the full amount of the revenues collected in fiscal year 2016-17 using the allocation (list of Measure Z employees) method applied. Establishing the exact differences was outside the scope of this agreed upon procedures engagement; however, the differences are believed to be significant to the readers of this report. It was further noted that the City has significant additional public safety expenditures not applicable to the specific list of public safety employees examined in this procedure for which Measure Z funding was expended. 1.c Packet Pg. 37 Attachment: Measure Z Attach 3 (6875 : Report on Use of Measure Z Funds for Fiscal Years 2016/17 through 2018/19) City of San Bernardino San Bernardino, California Agreed-Upon Procedures Applied to City of San Bernardino Measure Z Revenues and Expenditures Analysis For the Period Ended June 30, 2018 1.d Packet Pg. 38 Attachment: Measure Z Attach 4 (6875 : Report on Use of Measure Z Funds for Fiscal Years 2016/17 through 2018/19) -1- INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES To the City of San Bernardino San Bernardino, California We have performed the procedures enumerated in the following pages, which were agreed to by management of the City of San Bernardino (the City), for the Measure Z Citizens Oversight Committee of the City, to assist the City in evaluating components of Measure Z Revenues and Expenditures for the year ended June 30, 2018. City management is responsible for accounting records pertaining to Measure Z Revenues, Expenditures and related reporting. The sufficiency of these procedures is solely the responsibility of City management. Consequently, we make no representations regarding the sufficiency of the procedures enumerated either for the purpose for which the report has been requested or any other purpose. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to, and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion on the Measure Z Revenues and Expenses of the City for the year ended June 30, 2018. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the use of the specified users listed above and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes. January 8, 2020 1.d Packet Pg. 39 Attachment: Measure Z Attach 4 (6875 : Report on Use of Measure Z Funds for Fiscal Years 2016/17 through 2018/19) -2- Procedures Performed and Findings Measure Z Revenues Agreed Upon Procedure: Obtain and evaluate the summary revenue detail reports from the City’s general ledger for the Measure Z Public Safety Tax for the year ended June 30, 2018. Evaluate the supporting cash receipts to ensure that the City properly recorded the receipts of the voter approved transaction and use tax. Procedures Performed: We obtained cash disbursement reports from the California Board of Equalization and reconciled the disbursement report totals to the amount recorded the City’s general ledger for each year. 2017-2018 Transaction (Sales) and Use Tax Cash Receipts $7,500,620 Accrual Change (46,892) Total Revenue $7,453,728 Findings: No exceptions were noted. The revenue amounts collected under Measure Z were properly accounted for in the City’s general ledger. 1.d Packet Pg. 40 Attachment: Measure Z Attach 4 (6875 : Report on Use of Measure Z Funds for Fiscal Years 2016/17 through 2018/19) -3- Measure Z Expenditures Agreed Upon Procedure: Evaluate the summary expenditure detail reports from the City's general ledger for the Measure Z Public Safety Tax for the fiscal year as listed above. Procedures Performed: We requested expenditure reports for Measure Z. Based on an examination of the reports received from City staff, there were no non payroll related expenditures for Measure Z funding during the fiscal year under examination. Procedures were performed on the payroll related expenditures as described in the Measure Z Payroll Transactions section of this report below. We further analyzed total expenditures, consisting entirely of payroll related expenditures, in relation to the Measure Z revenues received. Findings: No findings were made in relation to non-payroll related expenditures since no such expenditures were made. Measure Z Payroll Transactions Agreed Upon Procedures: Obtain and evaluate select payroll transactions to determine whether the allocation of salaries and benefits to the Measure Z Public Safety Tax were reasonable and inspect selected transactions charged against Measure Z revenues to determine if the salaries and benefits allocated were reasonable based upon the nature of the employee position and agree to underlying payroll records. Procedures Performed: We obtained Labor Distribution Reports from the City general ledger system for the year ended June 30, 2018. This report showed the expenditures that were allocated to Measure Z. We determined the most significant categories of expenditures based on dollar totals as salaries, health insurance and PERS retirement. The City allocates 100% of the cost of select public safety employees to Measure Z funding. We obtained the Measure Z employee listing for fiscal year 2017-18 and compared it to the details in each selected account as shown on the Labor Distribution reports. We selected six employees for fiscal year 2017-18 from the Measure Z employee listing. We then compared and agreed the payroll register amounts to the details payments shown on the Labor Distribution reports. This was done for four pay periods in the fiscal year. Findings: No exceptions were noted. The amounts included in the City’s general ledger reports were consistent with the amounts listed in the payroll records examined. 1.d Packet Pg. 41 Attachment: Measure Z Attach 4 (6875 : Report on Use of Measure Z Funds for Fiscal Years 2016/17 through 2018/19) -4- Other Procedures We will analyze the following documents in order to gain an understanding of the requirements stated in Measure Z: • Ordinance No. MC- 1229 • Resolution 2006-286 • Resolution 2006-287 • Resolution 2006-288 • Resolution 2006-289 Notes: 1. It was noted in performing the procedures the total salary related expenditures exceeded the full amount of the revenues collected in fiscal year 2017-18 using the allocation (list of Measure Z employees) method applied. Establishing the exact differences was outside the scope of this agreed upon procedures engagement; however, the differences are believed to be significant to the readers of this report. It was further noted that the City has significant additional public safety expenditures not applicable to the specific list of public safety employees examined in this procedure for which Measure Z funding was expended. 1.d Packet Pg. 42 Attachment: Measure Z Attach 4 (6875 : Report on Use of Measure Z Funds for Fiscal Years 2016/17 through 2018/19) City of San Bernardino San Bernardino, California Agreed-Upon Procedures Applied to City of San Bernardino Measure Z Revenues and Expenditures Analysis For the Period Ended June 30, 2019 1.e Packet Pg. 43 Attachment: Measure Z Attach 5 (6875 : Report on Use of Measure Z Funds for Fiscal Years 2016/17 through 2018/19) -1- INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES To the City of San Bernardino San Bernardino, California We have performed the procedures enumerated in the following pages, which were agreed to by management of the City of San Bernardino (the City), for the Measure Z Citizens Oversight Committee of the City, to assist the City in evaluating components of Measure Z Revenues and Expenditures for the year ended June 30, 2019. City management is responsible for accounting records pertaining to Measure Z Revenues, Expenditures and related reporting. The sufficiency of these procedures is solely the responsibility of City management. Consequently, we make no representations regarding the sufficiency of the procedures enumerated either for the purpose for which the report has been requested or any other purpose. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to, and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion on the Measure Z Revenues and Expenses of the City for the year ended June 30, 2019. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the specified users, and is not intended to be, and should not be, used by anyone other than the specified parties. June 4, 2020 1.e Packet Pg. 44 Attachment: Measure Z Attach 5 (6875 : Report on Use of Measure Z Funds for Fiscal Years 2016/17 through 2018/19) -2- Procedures Performed and Findings Measure Z Revenues Agreed Upon Procedure: Obtain and evaluate the summary revenue detail reports from the City’s general ledger for the Measure Z Public Safety Tax for the year ended June 30, 2019. Evaluate the supporting cash receipts to ensure that the City properly recorded the receipts of the voter approved transaction and use tax. Procedures Performed: We obtained cash disbursement reports from the California Board of Equalization and reconciled the disbursement report totals to the amount recorded the City’s general ledger for each year. 2018-2019 Transaction (Sales) and Use Tax Cash Receipts $9,453,482 Accrual Change 263,641 Total Revenue $9,717,123 Findings: No exceptions were noted. The revenue amounts collected under Measure Z were properly accounted for in the City’s general ledger. Measure Z Expenditures Agreed Upon Procedure: Evaluate the summary expenditure detail reports from the City's general ledger for the Measure Z Public Safety Tax for the fiscal year as listed above. Procedures Performed: We requested expenditure reports for Measure Z. Based on an examination of the reports received from City staff, there were no non payroll related expenditures for Measure Z funding during the fiscal year under examination. Procedures were performed on the payroll related expenditures as described in the Measure Z Payroll Transactions section of this report below. We further analyzed total expenditures, consisting entirely of payroll related expenditures, in relation to the Measure Z revenues received. Findings: No findings were made in relation to non-payroll related expenditures since no such expenditures were made. Measure Z Payroll Transactions Agreed Upon Procedures: Obtain and evaluate select payroll transactions to determine whether the allocation of salaries and benefits to the Measure Z Public Safety Tax were reasonable and inspect selected transactions charged against Measure Z revenues to determine if the salaries and benefits allocated were reasonable based upon the nature of the employee position and agree to underlying payroll records. 1.e Packet Pg. 45 Attachment: Measure Z Attach 5 (6875 : Report on Use of Measure Z Funds for Fiscal Years 2016/17 through 2018/19) -3- Procedures Performed: We obtained Labor Distribution Reports from the City general ledger system for the year ended June 30, 2019. This report showed the expenditures that were allocated to Measure Z. We determined the most significant categories of expenditures based on dollar totals as salaries, health insurance and PERS retirement. The City allocates 100% of the cost of select public safety employees to Measure Z funding. We obtained the Measure Z employee listing for fiscal year 2018-19 and compared it to the details in each selected account as shown on the Labor Distribution reports. We selected nine employees for fiscal year 2018-19 from the Measure Z employee listing. We then compared and agreed the payroll register amounts to the details payments shown on the Labor Distribution reports. This was done for four pay periods in the fiscal year. Findings: No exceptions were noted. The amounts included in the City’s general ledger reports were consistent with the amounts listed in the payroll records examined. Other Procedures We will analyze the following documents in order to gain an understanding of the requirements stated in Measure Z: • Ordinance No. MC- 1229 • Resolution 2006-286 • Resolution 2006-287 • Resolution 2006-288 • Resolution 2006-289 Notes: 1.It was noted in performing the procedures the total salary related expenditures exceeded the full amount of the revenues collected in fiscal year 2018-19 using the allocation (list of Measure Z employees) method applied. Establishing the exact differences was outside the scope of this agreed upon procedures engagement; however, the differences are believed to be significant to the readers of this report. It was further noted that the City has significant additional public safety expenditures not applicable to the specific list of public safety employees examined in this procedure for which Measure Z funding was expended. 1.e Packet Pg. 46 Attachment: Measure Z Attach 5 (6875 : Report on Use of Measure Z Funds for Fiscal Years 2016/17 through 2018/19) Page 1 Staff Report City of San Bernardino Request for Council Action Date: August 19, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Michael Huntley, Director of Community & Economic Development Subject: Resolution Approving Changes to the LRPMP for California Theater & Sturges Theater Recommendation Adopt Resolution No. 2020-145, of the Mayor and City Council of the City of San Bernardino, California, acting as the Successor Agency to the Redevelopmen t Agency of the City of San Bernardino, approving changes to the Long -Range Property Management Plan (LRMP) property disposition designations for the real property located at 562 West 4th Street, San Bernardino (APNs 0134-131-10 and 0134-131-30) and 780 North “E” Street, San Bernardino (APN 0140 -273-21) from future development use to government use. Background Pursuant to Health and Safety Code (“HSC”) § 34172 (a) (1), the Redevelopment Agency of the City of San Bernardino was dissolved on February 1, 201 2. Consistent with the provisions of the HSC, on January 9, 2012 the Mayor and City Council of the City of San Bernardino elected to serve in the capacity of the Successor Agency to the Redevelopment Agency of the City of San Bernardino (“Successor Agency ”). The Oversight Board for the Successor Agency (“Oversight Board”) was established pursuant to HSC § 34179 to assist in the wind-down of the dissolved redevelopment agency through June 30, 2018. Consistent with HSC § 34179 (j), by operation of California Law, the Oversight Board dissolved on June 30, 2018 and its responsibilities with respect to San Bernardino County-based successor agencies were transferred to the Countywide Oversight Board (“CWOB”) on July 1, 2018. Pursuant to HSC § 34191.5 (c), the Successor Agency prepared and filed with the California Department of Finance ("DOF") its Oversight Board-approved Long-Range Property Management Plan (“LRPMP”). On December 31, 2015, DOF 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 of the HSC relating to the disposition and use of all the real property assets of the former redevelopment agency. The approved LRPMP, which addresses the disposition and use of the real property assets then held by the Successor Agency, included 230 parcels of land grouped into forty-six (46) separate sites, eighteen (18) of which are 2 Packet Pg. 47 6857 Page 2 designated for disposition as government use sites, seven (7) of whic h are designated for disposition as future development use sites, and twenty-one (21) of which are designated for disposition to be sold. In its May 17, 2016 letter, DOF directed the Successor Agency to transfer its seven (7) future development use sites to the City and on August 1, 2016, the Mayor and City Council adopted Resolution No. 2016-165, which authorized the transfer from the Successor Agency, and the acceptance by the City, of the seven (7) future development use sites. On August 16, 2016, the Successor Agency transferred the seven (7) future development use sites to the City via quitclaim deed. The City is the owner of that certain real property identified within the LRPMP as: (i) Site No. 21; (ii) ten (10) parcels of land consisting of approxim ately 6.30 acres; (iii) designated for disposition as future development use; and (iv) more fully described in Exhibit "A" attached hereto, which is an excerpt from the LRPMP. In early 2019, the City realized that portions of Site No. 21, the California Th eatre of the Performing Arts (“California Theatre”) and the Sturges Center for the Fine Arts (“Sturges Center”), were incorrectly designated in the LRPMP for future development use. Within Site No. 21, the three (3) parcels are identified as: (i) 562 West 4th Street San Bernardino (APNs 0134-131-10 and 0134-131-30), commonly known as the California Theatre, which was constructed in 1928, is listed on the National Register of Historic Places (No. 09001116), generates no income, was operated by the former Redevelopment Agency (“former RDA”) and the City, and used by the City for 90+ years as a public venue for the performing arts; and (ii) 780 North “E” Street, San Bernardino (APN 0140-273-21), commonly known as the Sturges Center, which was constructed in 1925, is listed as a California Historical Resource (No. P608), was previously owned by the San Bernardino High School District 1983 prior to the former RDA taking ownership to operate it as a theater, is zoned Public Facility in the City’s General Plan to pr ovide for the continuation of existing and the development of new schools, government administration, police, fire libraries, social services, and other public facilities, is located in the middle of the San Bernardino City Unified School District’s (“SBCU SD”) main campus, and generates no income (all three (3) parcels are collectively, the “Properties”). Since the City does not intend to develop the Properties, on May 1, 2019, the City Council approved an HSC Section 34180 (f) (1) Compensation Agreement (“Agreement”) to transfer the Sturges Center to the SBCUSD and to retain the California Theatre by the City. On July 12, 2019, the Agreement was mailed to the Taxing Entities for their approval. On October 29, 2019, the County was contacted regarding the s tatus of their approval of the City’s Agreement. On December 12, 2019, the County contacted the City and informed Staff that the County wanted the City to use the County’s form of Agreement. Staff, along with the City Attorney, attempted to work with the County to develop mutually agreeable terms. After failing to come to terms, Staff began to explore other options. After speaking to DOF, the City Attorney and Staff agreed to change the LRPMP property disposition designation from future development use to government use through the CWOB 2 Packet Pg. 48 6857 Page 3 Discussion In July 2020, DOF was contacted by Staff to discuss the property disposition designation errors and to seek a recommendation on how to address these errors and the process whereby the Successor Agency could correct the property disposition designation for the Properties from future development use to government use. DOF responded in a conversation with Staff that the LRPMP is a “plan,” “plans” can change over time, and with CWOB approval, the Successor Agency could change the property disposition designations for the Properties from future development use to government use. Based on the foregoing, and since the Properties were never meant to be sold for development, the Successor Agency recognizes the significance of the property disposition designation errors of the Properties and, pursuant to HSC § 34181 (a) (1), desires the CWOB approve the change in property disposition designations from future development use to government use in order to transfer the Sturges Center to the SBCUSD and to allow the City to continue to maintain the California Theatre as a government asset of the City. All other LRPMP property disposition designations are correctly identified in the LRPMP. 2020-2025 Key Strategic Targets and Goals Approval of the re-designation of the Properties aligns with Key Target No. 1: Financial Stability. Site No. 21 can now be re-marketed for sale without the encumbrances of the California Theatre and the Sturges Center, thereby allowing for th e opportunity to lead to the future development of a commercial establishment that will generate new sales tax revenue to the City. Fiscal Impact No fiscal impact to the City. Conclusion It is recommended that the Mayor and City Council of the City of Sa n Bernardino, California, acting as the Successor Agency to the Redevelopment Agency of the City of San Bernardino, adopt Resolution No. 2020 -145, approving changes to the Long-Range Property Management Plan (LRMP) property disposition designations for the real property located at 562 West 4th Street, San Bernardino (APNs 0134-131-10 and 0134- 131-30) and 780 North “E” Street, San Bernardino (APN 0140-273-21) from future development use to government use. Attachment Attachment 1 Resolution 2020-145; Exhibit “A” - LRPMP Excerpt Narrative for Site No. 21 Ward: 1 2 Packet Pg. 49 6857 Page 4 Synopsis of Previous Council Actions: May 1, 2019 Mayor and City Council approved a Compensation Agreement to transfer the Sturges Center to the SBCUSD and the California Theatre to the City. 2 Packet Pg. 50 RESOLUTION NO. 2020-145 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO APPROVING CHANGES TO THE LONG- RANGE PROPERTY MANAGEMENT (LRMP) PLAN PROPERTY DISPOSITION DESIGNATIONS FOR THE REAL PROPERTY LOCATED AT 562 WEST 4TH STREET, SAN BERNARDINO (APNS 0134-131-10 AND 0134-131-30) AND 780 NORTH “E” STREET, SAN BERNARDINO (APN 0140-273-21) FROM FUTURE DEVELOPMENT USE TO GOVERNMENT USE 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, on January 9, 2012 the Mayor and City Council of the City of San Bernardino (“City”) elected to serve in the capacity of the Successor Agency to the Redevelopment Agency of the City of San Bernardino (“Su ccessor Agency”); and WHEREAS, the Oversight Board for the Successor Agency (“Oversight Board”) was established pursuant to HSC § 34179 to assist in the wind-down of the dissolved redevelopment agency; and WHEREAS, consistent with HSC section 34179 (j), by operation of California Law, the Oversight Board was dissolved on June 30, 2018 and Oversight Board responsibilities with respect to San Bernardino County-based successor agencies were transferred to the County-Wide Oversight Board (“CWOB”) on July 1, 2018; and WHEREAS, pursuant to HSC § 34191.5 (c), the Successor Agency prepared and filed with the California Department of Finance ("DOF") its Oversight Board-approved Long-Range Property Management Plan (“LRPMP”); and WHEREAS, in its December 31, 2015 letter, DOF 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 WHEREAS, the LRPMP includes 230 parcels of land grouped into forty-six (46) separate sites, eighteen (18) of which are designated for disposition as government use sites, seven (7) of which are designated for disposition as future development use sites, and twenty-one (21) of which are designated for disposition to be sold; and WHEREAS, in its May 17, 2016 letter, DOF directed the Successor Agency to transfer its seven (7) future development use sites to the City; and 2.a Packet Pg. 51 Attachment: CED.Disposition of California Theatre and Sturges Center.Resolution (6857 : Resolution Approving Changes to the LRPMP for WHEREAS, on August 1, 2016, the Mayor and City Council adopted Resolution No. 2016-165, which authorized the transfer from the Successor Agency, and the acceptance by the City, of the seven (7) future development use sites; and WHEREAS, on August 16, 2016, the Successor Agency transferred the seven (7) future development use sites to the City via quitclaim deed; and WHEREAS, the City is the owner of that certain real property identified within the LRPMP as: (i) Site No. 21; (ii) ten (10) parcels of land consisting of approximately 6.30 acres; (iii) designated for disposition as future development use; and (iv) more fully described in Exhibit "A" attached hereto, which is an excerpt from the LRPMP; and WHEREAS, in 2019, the City received an offer the purchase Site No. 21; and WHEREAS, during negotiations with the potential buyer for the purchase of Site No. 21, Staff realized that significant property disposition designation errors were made by designating three (3) of the ten (10) parcels within Site No. 21 for future development use and not for government use; and WHEREAS, within Site No. 21, the three (3) parcels are identified as: (i) 562 West 4th Street San Bernardino (APNs 0134-131-10 and 0134-131-30), commonly known as the California Theatre of the Performing Arts (“California Theatre”), which was constructed in 1928, is listed on the National Register of Historic Places (No. 09001116), generates no income, was operated by the former Redevelopment Agency (“former RDA”) and the City, and used by the City for 90+ years as a public venue for the performing arts; and (ii) 780 North “E” Street, San Bernardino (APN 0140- 273-21), commonly known as the Sturges Center for the Fine Arts (“Sturges Center”), which was constructed in 1925, is listed as a California Historical Resource (No. P608), was previously owned by the San Bernardino High School District 1983 prior to the former RDA taking ownership to operate it as a theater, is zoned Public Facility in the City’s General Plan to provide for the continuation of existing and the development of new schools, government administration, police, fire libraries, social services, and other public facilities, is located in the middle of the San Bernardino City Unified School District’s (“SBCUSD”) main campus, and generates no income (collectively, the “Properties”); and WHEREAS, in July 2020, DOF was contacted by Staff to discuss the property disposition designation errors and to seek a recommendation on how to address these errors and the process whereby the Successor Agency could correct the property disposition designation errors for the Properties from future development use to government use; and WHEREAS, in July 2020, DOF responded in a conversation with Staff that the LRPMP is a “plan,” “plans” can change over time, and with CWOB approval, the Successor Agency could change the property disposition designations for the Properties from future development use to government use; and WHEREAS, based on the foregoing, the Successor Agency recognizes the significance of the property disposition designation errors for the Properties and, pursuant to HSC § 34181 (a) (1), desires the CWOB approve the change in property disposition designations for the Properties from future development use to government use in order to transfer the Sturges Center to the 2.a Packet Pg. 52 Attachment: CED.Disposition of California Theatre and Sturges Center.Resolution (6857 : Resolution Approving Changes to the LRPMP for SBCUSD and to allow the City to continue to maintain the California Theatre as a government asset of the City since the Properties were never meant to be sold for development; and WHEREAS, due to the 2020-Covid Pandemic, negotiations for the sale of Site No. 21 terminated as the potential buyer cited the national economic downturn, which now allows for the opportunity to re-market to Site No. 21 without the encumbrances of the California Theatre and the Sturges Center; and WHEREAS, the effectiveness of the change in property disposition designations for the Properties from future development use to government use is subject to the approval of the CWOB and review by DOF; and WHEREAS, all other LRPMP property disposition designations are correctly identified in the LRPMP; and WHEREAS, this Resolution will approve the change in property disposition designations for the Properties from future development use to government use; and WHEREAS, all of the prerequisites with respect to the approval of this Resolution have been met. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY 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 change in property disposition designations for the Properties from future development use to government use is approved. SECTION 3. 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 4. 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 City Council and signed by the Mayor and attested by the Acting City Clerk this 19th day of August 2020. 2.a Packet Pg. 53 Attachment: CED.Disposition of California Theatre and Sturges Center.Resolution (6857 : Resolution Approving Changes to the LRPMP for John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney 2.a Packet Pg. 54 Attachment: CED.Disposition of California Theatre and Sturges Center.Resolution (6857 : Resolution Approving Changes to the LRPMP for CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the 19th day of August 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this 19th day of August 2020. Genoveva Rocha, CMC, Acting City Clerk 2.a Packet Pg. 55 Attachment: CED.Disposition of California Theatre and Sturges Center.Resolution (6857 : Resolution Approving Changes to the LRPMP for Successor Agency to the Redevelopment Agency of the City of San Bernardino Long-Range Property Management Plan September 2015 Amended December 2015 Site No. 21: Theater Square 97 IV. Property to be Transferred for Future Development Site 21 – Theater Square Address: APNs: 780 N. “E” Street 0140-273-21 562 W. 4th Street 0134-131-10 0134-131-30 450 N. “E” Street 0134-121-25 0134-121-27 0134-131-28 0134-131-29 0134-131-35 0134-131-36 0134-131-37 N. “E” Street W. 5th StreetN. “F” Street W. 4th Street W. 6th Street W. 7th Street N. “G” Street N.“H”StreetW. 8th Street N. “D” Street 2.b Packet Pg. 56 Attachment: CED.Disposition of California Theatre and Sturges Center.Resolution Exhibit A (6857 : Resolution Approving Changes to the Successor Agency to the Redevelopment Agency of the City of San Bernardino Long-Range Property Management Plan September 2015 Amended December 2015 Site No. 21: Theater Square 98 IV. Property to be Transferred for Future Development Site 21 – Theater Square A. Permissible Use (HSC § 34191.5 (c) (2)): Site No. 21 is Theater Square and is proposed to be transferred to the City of San Bernardino for future development pursuant to HSC § 34191.5 (c) (2). B. Acquisition of Property (HSC § 34191.5 (c) (1) (A) and § 34191.5 (c) (1) (B)): Property records indicate that Theater Square was acquired by the Agency several separate transactions and carries a total Book Value of $13,774,149. The following table details the property records: Acquisition Details of Theater Square APN Acquisition Date Book Value Original APNs as Acquired by Agency Historical Background 0134-121-27 March 2001 $11,964,000 0134-121-24 Parcel created per 2011-Lot Line Adjustment (Parcel Map 15038) 0134-131-35 0134-131-25 0134-121-25 1993 - 1998 $70,875 0134-121-25 Parcel Map 15038 0134-131-29 $477,055 0134-131-29 Parcel Map 15038 0134-131-28 $160,000 0134-131-28 0134-131-37 0134-131-27 APN 0134-131-37 created per 2011-Lot Line Adjustment (Parcel Map 15038) 0134-131-36 $770,582 0134-131-26 (formerly 0134-131-06 & -15) APN 0134-131-36 created per 2011-Lot Line Adjustment (Parcel Map 15038) 0134-131-10 August 1994 $301,004 --- --- 0134-131-30 February 1975 $0 0134-131-01 APN 0134-131-01 was subdivided in 1998 with recordation of PM 15038; APN 0134-131-30 was created as a remainder portion of APN 0134-131-01 0140-273-21 June 1992 $30,633 --- --- Theater Square was acquired by the Agency in order to meet the revitalization goals of the City and the Agency to alleviate the existence and spread of physical and economic blight by assembling land and preparing property for future development. The estimated current value (the “ECV”) of Theater Square is approximately $14,500,000. C. Site Information (HSC § 34191.5 (c) (1) (C)): Theater Square consists of three (3) venues: the Regal Cinema (the “Cinema”), the California Theatre for the Performing Arts (the California Theatre”), and the Sturges Center for the Fine Arts (the Sturges Center”). In total, Theater Square contains ten (10) parcels as shown above, totaling 6.30 acres. The following table describes the improvements located on Theater Square: 2.b Packet Pg. 57 Attachment: CED.Disposition of California Theatre and Sturges Center.Resolution Exhibit A (6857 : Resolution Approving Changes to the Successor Agency to the Redevelopment Agency of the City of San Bernardino Long-Range Property Management Plan September 2015 Amended December 2015 Site No. 21: Theater Square 99 IV. Property to be Transferred for Future Development Site 21 – Theater Square Theater Square Property Improvements APN Address Current (c) or Former (f) Use Type of Structure / Improvement Year Constructed Square Footage 0134-121-25 The Cinema 450 N. “E” Street Access Road (c) Concrete Pavers / Landscaping 2012 64,033 0134-121-27 20-Plex Theater (c) 2-Story Masonry / 20-screen auditoriums / 4,000 seats 1998 Renovated in 2012 79,563 0134-131-29 Parking Lot (c) Asphalt / Landscaping 1998 20,695 0134-131-35 Access Road / Parking / Plaza (c) 2012 27,366 0134-131-28 Theater Square Plaza (c) Grass / Landscaping 2012 10,434 0134-131-36 10,556 0134-131-37 8,138 0134-131-10 California Theatre 562 W. 4th Street California Theatre (c) Multi-story / Concrete 1925 32,842 0134-131-30 Alley access to the California Theatre (c) Concrete pavers / drainage appurtenances / landscaping 2012 900 0140-273-21 Sturges Center 780 N. “E” Street Sturges Center (c) 2-Story concrete structure 1925 21,484 The Cinema (10-screen Multi-Plex currently leased to and operated by Regal Cinemas) and the California Theatre (a community theatre which is an historic building that has been successfully preserved over the years through non-profit organizations and the Agency) are zoned Commercial Regional-Downtown (CR-2) in the City’s General Plan. The purpose of the CR-2 zone is to permit a diversity of regional-serving uses in the Downtown area including local, county, and state government/administrative uses, professional offices, cultural/historical and entertainment uses, convention facilities, hotels/motels, financial establishments, restaurants, supporting retail and services, educational institutions, public open spaces, and residential and senior housing. The Sturges Center (a performing arts park for the City and the School District) is zoned Public Facility (PF) in the City’s General Plan. The purpose of PF zone is to provide for the continuation of existing and development of new schools, government administrative, police, fire, libraries, social service, and other public facilities. Theater Square is located within the City’s “E” Street Strategic Area. “E” Street is a significant north-south roadway located in the central portion of the City. “E” Street connects Downtown to Baseline, Highland, and to the 30 freeway on the northern end, and Hospitality Lane to the south. “E” Street currently has the greatest number of transit trips in the Omnitrans system, which makes it an ideal candidate for development. 2.b Packet Pg. 58 Attachment: CED.Disposition of California Theatre and Sturges Center.Resolution Exhibit A (6857 : Resolution Approving Changes to the Successor Agency to the Redevelopment Agency of the City of San Bernardino Long-Range Property Management Plan September 2015 Amended December 2015 Site No. 21: Theater Square 100 IV. Property to be Transferred for Future Development Site 21 – Theater Square D. Estimated Current Value (HSC § 34191.5 (c) (1) (D)): The ECV for Theater Square was determined by the Agency in January 2015, using a combination of a comparable sales analysis conducted through the National Data Collective, a December 2011 Summary Appraisal Report for the California Theatre, and a December 2011 Summary Appraisal Report for the Sturges Center. The following table describes the ECV for each venue of Theater Square: ECV Determination for Theater Square Venue Date of ECV ECV Basis Assumptions ECV The Cinema and related parcels January 2015 National Data Collective Local factors were not taken into consideration $8,900,000 California Theatre December 2011 Summary Appraisal Report – Smothers Appraisal, James Smothers, MAI Local factors were not taken into consideration; Structural improvements are seismically sound $4,100,000 Sturges Center December 2011 $1,970,000 TOTAL ECV for Theater Square $14,500,000 The ECV was determined to be approximately $14,500,000. Local factors were not taken into consideration in determining the ECV of this site. Therefore, the actual value of the property may vary significantly from the ECV. The ECV is only a rough estimate planning number and should not be relied upon as a basis for actual value. The real value of the property cannot be determined without an appraisal. E. Site Revenues (HSC § 34191.5 (c) (1) (E)): The Cinema APNs 0314-121-25, -27 0134-131-28, -29, -35, -36, -37 On January 4, 2012, Regal Cinemas (the “Tenant”) entered into a Lease with the San Bernardino Economic Development Corporation (the “Landlord”) to lease the newly renovated 14-Screen Theater located in Theater Square. The basic terms of the Lease are as follows: (i) the Lessee/Tenant is given 5 Options to terminated Lease after the first 10 years of operation: Option 1 commences on July 1, 2022 and expires on June 30, 2027 and each of the subsequent 4 Options are offered in 5-year increments, with Option 5 expiring on June 30, 2046; (ii) the annual base rent for the Theater is $850,000 (with increases in the annual rent commencing on July 1, 2022); (iii) the Landlord is responsible to meet certain milestone dates to develop four (4) auditoriums that were set-aside for restaurant/retail development or the annual rent is reduced to Special Rent (15%) of gross revenues in excess of the minimum annual base rent; (iv) the Landlord is responsible for the maintenance of the common areas, parking areas, and structural elements of the building, including, but not limited to, roof and structural components of the Theater, including roof and roofing (including roof membrane); exterior walls, including painting and exterior lights on the Theater (except the Building Signs and lights that are part of the Building Signs); the site for the Theater, and all related site amenities; the HVAC system serving the Theater, including all HVAC units located on the ground or the Theater's roof and all duct work and thermostats that are a part of the HVAC system; all plumbing and utility (including gas, electrical, water, sanitary sewer and 2.b Packet Pg. 59 Attachment: CED.Disposition of California Theatre and Sturges Center.Resolution Exhibit A (6857 : Resolution Approving Changes to the Successor Agency to the Redevelopment Agency of the City of San Bernardino Long-Range Property Management Plan September 2015 Amended December 2015 Site No. 21: Theater Square 101 IV. Property to be Transferred for Future Development Site 21 – Theater Square storm drainage) lines, conduits and facilities serving the Theater other than minor maintenance and repair which is Tenant's responsibility pursuant to the Lease; any vertical transpiration serving the Theater; and all other maintenance and repairs except such maintenance and repairs for which Tenant is expressly responsible pursuant to the Lease; and (v) the Tenant is responsible for maintaining the interior, non-structural elements of the Theater, including general cleaning within the Theater and maintaining the cleanliness, glass and doors of the Theater storefront; Tenant's Equipment; Building Signs, including the lighting for such signs lights that are part of the Building Signs; and minor maintenance and repair of plumbing (such as clearing stoppages in pipes that originate inside the Theater and can be cleared from within the Theater, and repair and replacement of faucets within the Theater) and utility (such as repair and replacement of light fixtures, bulbs and ballasts within the Theater) pipes and lines located within the interior surface of the walls, ceilings and floors of the Theater (but not between the interior and exterior walls, ceilings and floors), and paying for operating expenses, property taxes (including possessory interest taxes and special assessment, if any), insurance, and utilities, including but not limited to, water, sewer, electricity, and natural gas. Due to lack of resources, the Successor Agency has not been able to fulfill all of the landlord’s obligations noted above. Pursuant to the lease, the Tenant has caused such obligations to be fulfilled and has offset the value of such expenses against the payments due the Landlord. Therefore, the Successor Agency is not currently receiving its leased annual rate of $850,000, but rather $0.00 from this property. California Theatre APNs 0134-131-10, -30 No site revenues are generated from the California Theatre. Sturges Center APN 0140-273-21 No site revenues are generated from the Sturges Center. F. History of Environmental Contamination (HSC § 34191.5 (c) (1) (F)): There is no known history of environmental contamination.27, 28, 29 G. Potential for Transit Oriented Development (TOD) and the Advancement of Planning Objectives of the Successor Agency (HSC § 34191.5 (c) (1) (G)): There is no potential for Transit Oriented Development (TOD), however, Theater Square is located within a ½-mile radius of the Downtown San Bernardino TOD Area. The TOD is centered at the 12-acre San Bernardino Intermodal Transit Center (Transit Center). The Transit Center will integrate local and regional transportation systems including the west terminus station for the Redlands Corridor transit service, Metrolink, sbX E Street Bus Rapid Transit (BRT), and local Omnitrans buses. Bicycles and pedestrians will access the station via planned and proposed city bike and pedestrian pathways. The Transit Center will be a major regional transit hub and in the 27 http://geotracker.waterboards.ca.gov/map/?CMD=runreport&myaddress=450n+e+st+san+bernardino 28 http://geotracker.waterboards.ca.gov/map/?CMD=runreport&myaddress=780+N+E+Street+San+Bernardino 29 http://geotracker.waterboards.ca.gov/map/?CMD=runreport&myaddress=562+w+4th+street+san+bernardino 2.b Packet Pg. 60 Attachment: CED.Disposition of California Theatre and Sturges Center.Resolution Exhibit A (6857 : Resolution Approving Changes to the Successor Agency to the Redevelopment Agency of the City of San Bernardino Long-Range Property Management Plan September 2015 Amended December 2015 Site No. 21: Theater Square 102 IV. Property to be Transferred for Future Development Site 21 – Theater Square future, the Transit Center could include inter-regional transportation systems such as California High Speed Rail and transit connections to the San Bernardino International Airport. Within a ½- mile radius, the TOD Area surrounding the Transit Center encompasses a major portion of Downtown San Bernardino. The transfer of the Theater Square for future development to the City of San Bernardino advances the planning objectives of the Successor Agency and the City in accordance with the City’s General Plan, 2009-Downtown Core Vision & Action Plan, and the Agency’s Five-Year Implementation Plan 2009/2010 through 2013/2014 in order to: 1. Complete development of Phases 1 and 1A of the old CinemaStar building into the new Theater Cinema and I-max complex with adjacent retail/restaurant; 2. Develop retail directly south of the Regal Cinema; 3. Reinforce the California Theatre, Cinema Project, and the retail block on 4th Street between “F” and “G” Streets, including building component study, seismic evaluation, exterior improvements, and District security system; 4. Develop a comprehensive night time theater district centered around the California Theatre and the Regal Cinema; 5. Seek and attract uses that foster a high level of evening activity (e.g., theaters and restaurants); 6. Capture appropriate demand that meets the community’s needs and takes full advantage of emerging development and economic opportunities; 7. Maintain and enhance the City’s quality of life i.e. Regal Multi-Plex Theater at Fourth and "E" Streets; 8. Enhance, maintain, and develop entertainment facilities within the City; 9. Develop combined urban street retail that will leverage and complement the existing retail uses; 10. Promote development that is compact, and pedestrian-friendly; 11. Facilitate the development of outdoor dining in the downtown area; 12. Provide opportunities for private investment in the City; 13. Focus on creating distinct, discernible “places” of varied sizes, functions, and complexity; 14. Evaluate the feasibility for the development of a regional center for the arts; and 2.b Packet Pg. 61 Attachment: CED.Disposition of California Theatre and Sturges Center.Resolution Exhibit A (6857 : Resolution Approving Changes to the Successor Agency to the Redevelopment Agency of the City of San Bernardino Long-Range Property Management Plan September 2015 Amended December 2015 Site No. 21: Theater Square 103 IV. Property to be Transferred for Future Development Site 21 – Theater Square 15. Recycle and/or develop underutilized parcels to eliminate blight and accommodate higher and better economic uses while enhancing the City's financial resources. H. History of Previous Development Proposals and Activity (HSC § 34191.5 (c) (1) (H)): The Cinema APNs 0314-121-25, -27 0134-131-28, -29, -35, -36, -37 Seven of the ten Theater Square Property parcels (the Cinema and related parcels) were acquired by the Agency in between 1993 and 1998, with two (2) of the seven (7) eventually being transferred to MDA-San Bernardino Associates, LC (“MDA”) via a December 29, 1998, recorded Disposition and Development Agreement (the “DDA”) for the development, construction, and financing of a multi-screen theater complex and related common area improvements. Pursuant to the DDA, MDA was required to purchase the land for the theater and the common area, while the Agency would retain title to the parking lot areas and the development parcels in front to the theater. The DDA also required the Agency to provide a loan (the “Agency Loan”) to MDA, not to exceed $7,000,000. The funds for the Agency Loan came from a HUD Section 108 Loan that the Agency obtained in 1998. In addition to the Agency Loan, and contingent upon receipt of the HUD Section 108 Loan proceeds, the Agency provided an additional loan in the amount of $1,324,575, secured by a promissory note, as the Agency’ contribution. The theater opened in December 2000, with CinemaStar as its operator. In 2001, with the downturn in the cinema industry, the Agency purchased the theater building (the "20-Plex") (located at 450 N. “E” Street) from MDA, together with the existing tenant lease with CinemaStar Luxury Theaters, Inc. ("CinemaStar"), for $11,964,000. On September 28, 2008, CinemaStar ceased operations. On November 7, 2008, the Agency filed an unlawful detainer action with the Superior Court of California which held CinemaStar to be in default of the terms of their lease, declared the lease to be terminated and granted possession of the 20-Plex to the Agency as of December 1, 2008. On December 15, 2008, the Mayor and Common Council of the City of San Bernardino (the "Council") consented to the disposition of the 20-Plex to Maya North America ("Maya") and the Community Development Commission of the City of San Bernardino (the "Commission") approved the sale of the 20-Plex and authorized the Agency to execute the 2008 Disposition and Development Agreement (the "2008-DDA") by and between the Agency and Maya. On February 2, 2009, the Council authorized the submittal of a U.S. Department of Housing and Urban Development ("HUD") Section 108 Loan Guarantee Application (the "HUD Loan Application") for the re-finance and rehabilitation of the 20-Plex Project. The HUD Loan Application was submitted to HUD and the Agency received HUD’s approval on September 25, 2009. On May 18, 2009, the Commission approved Amendment No. 1 to the 2008-DDA extending the close of escrow deadline from July 1, 2009 to October 30, 2009, due to unforeseen delays in the 2.b Packet Pg. 62 Attachment: CED.Disposition of California Theatre and Sturges Center.Resolution Exhibit A (6857 : Resolution Approving Changes to the Successor Agency to the Redevelopment Agency of the City of San Bernardino Long-Range Property Management Plan September 2015 Amended December 2015 Site No. 21: Theater Square 104 IV. Property to be Transferred for Future Development Site 21 – Theater Square Agency obtaining legal possession of the building and its contents, HUD's review and approval of the HUD Loan Application, and Maya securing its financing as stated and outlined in the 2008- DDA. Maya’s continued difficulty with securing financing for the re-opening of the 20-Plex lead to the termination of the 2008-DDA on April 15, 2010. As a result of the termination of the 2008- DDA, there was no developer for the 20-Plex and the HUD Loan could not move forward. Between the months of May and September of 2010, the Agency received 8 proposals for development of the 20-Plex. The Agency vetted each proposal and upon approval by the Commission in closed session, the Agency determined to negotiate with Regal Entertainment Group ("Regal") and on November 30, 2010, Regal and the Agency executed a Letter of Understanding and negotiations commenced on the leasing of the fourteen (14) of the 20 theaters in the Cinema. As the renovation of Theater Square was being planned, developed, and constructed, the terms of the Regal Cinema Lease were being negotiated. The development plan for Theater Square included the development of the front six (6) screen auditoriums (not being used by Regal Cinema) into four restaurant/retail establishment (to be either sold or leased by the Agency), along a public gathering plaza for outside events. Prior to the dissolution of redevelopment in the State, the Agency had signed an Exclusive Right to Negotiate Agreement with a developer who brought the Agency three (3) letters of intent from restaurants for three (3) of the six (6) fronting auditoriums. Once the dissolution occurred, the developer backed out and funding was lost. Although there is no current development activity, indications of interest in the Property continue to be received from the development community. In addition to the future development of the front six (6) screen auditoriums (not being used by Regal Cinema as noted above), the three (3) parcels to the south of the Regal Theater were planned for future restaurants and retail, with the westerly parcel’s development planned for a restaurant/retail building to be constructed as an engineered buttress against the east wall of the California Theatre which will be connected to the Theatre’s roof to serve as structural reinforcement for the Theatre, thereby providing structural support to act against the lateral forces arising from the Theatre’s roof structure which lacks adequate bracing to withstand an earthquake. California Theatre APNs 0134-131-10, -30 The California Theatre (two of the ten Theater Square parcels), located at 562 W. 4th Street, is a 32,843 sf performing arts facility which was originally constructed in 1928. The California Theatre has a long and rich history and for years was owned and operated by the San Bernardino Civic Light Opera Association (the “CLO”), which staged many musicals and rented the Theatre to other, primarily local, performing arts groups. The CLO was negatively impacted by recessionary conditions which afflicted the organization for many years. In 1994, the CLO approached the Agency with a proposal to sell the California Theatre in order to raise the much-needed capital to continue utilizing the Theatre for performances. The Agency purchased the California Theatre in 1994, and, shortly thereafter, hired a production company to maintain and operate the Theatre. 2.b Packet Pg. 63 Attachment: CED.Disposition of California Theatre and Sturges Center.Resolution Exhibit A (6857 : Resolution Approving Changes to the Successor Agency to the Redevelopment Agency of the City of San Bernardino Long-Range Property Management Plan September 2015 Amended December 2015 Site No. 21: Theater Square 105 IV. Property to be Transferred for Future Development Site 21 – Theater Square On February 11, 1999, the Agency entered into an Agreement (“Agreement”) with Theatrical Arts International (“TAI”) for operation and management of the California Theatre. Currently, the Successor Agency remains responsible for the maintenance of the California Theatre and utilities. TAI is responsible for operating and production costs. The Successor Agency receives no revenue from TAI productions. Sturges Center APN 0140-273-21 The Sturges Center (one of the ten Theater Square parcels) was originally known as the Sturges Auditorium in 1925 and was part of Sturges Junior High School. The school closed in 1974, and the City issued a request for proposals to develop and maintain the auditorium. The San Bernardino City Unified School District (“SBCUSD”) retained ownership of the school property and sold the auditorium to the Agency. In 1985, the Agency sold the Sturges Auditorium to the Sturges Center for the Fine Arts, a non-profit corporation, and the auditorium’s name was then changed to Sturges Center for the Fine Arts. In 1992, the Agency became the owner of the Sturges Center. The Sturges Center provides good linkages to public transportation and consumer services and has a parking agreement with the SBCUSD (the Sturges Center property does not contain parking). In 1997, the Agency, the SBCUSD, and STURGES, a non-profit corporation, executed an agreement furthering the efforts to preserve the Sturges Center for the use and enjoyment of the residents of the City and the surrounding areas. The Sturges Center houses the San Bernardino Art Association Gallery, the San Bernardino Valley Concert Association, and the Office of the Center Manager. On February 11, 1999, the Agency entered into an Agreement with TAI for operation and management of the Sturges Center. Currently, the Successor Agency remains responsible for the maintenance of the Sturges Center and utilities. TAI is responsible for operating and production costs. The Successor Agency receives no revenue from TAI productions. The Sturges Center property contains specific deed restrictions in that be “…dedicated in perpetuity to the preservation and encouragement of fine arts for the Cultural Arts Community, and shall be used for no purpose inconsistent with this provision,”30 and therefore there is no history of development proposals. I. Disposition of Property: The City’s policies and procedures for property disposition, located in Exhibit “A” Section II, will guide the disposition of the Property. The ECV of Theater Square is approximately $14,500,000. The following process was used in determining the ECV of Theater Square: Date of estimated current value – December 2011, January 2015 30 Grant Deed to the Redevelopment Agency of the City of San Bernardino, dated June 2, 1992, recorded in the County of San Bernardino, Document No. 92-230113 2.b Packet Pg. 64 Attachment: CED.Disposition of California Theatre and Sturges Center.Resolution Exhibit A (6857 : Resolution Approving Changes to the Successor Agency to the Redevelopment Agency of the City of San Bernardino Long-Range Property Management Plan September 2015 Amended December 2015 Site No. 21: Theater Square 106 IV. Property to be Transferred for Future Development Site 21 – Theater Square Value Basis – The ECV was determined by a comparable sales analysis using the National Data Collective subscription service and Summary Appraisal Reports dated December 2011, prepared by Smothers Appraisal, James Smothers, MAI. The ECV is approximately $14,500,000. Local factors that may affect land value were not taken into consideration. Therefore, the actual value of the property may vary greatly from the ECV. The ECV is only a planning number and should not be relied upon as a basis for actual value. J. Implementation of the Long-Range Property Management Plan: Theater Square will be transferred to the City of San Bernardino for future development subsequent to securing an HSC § 34180 (f) (1) compensation agreement (the “Compensation Agreement”) with the affected taxing entities, or as may otherwise may be provided by the HSC. 2.b Packet Pg. 65 Attachment: CED.Disposition of California Theatre and Sturges Center.Resolution Exhibit A (6857 : Resolution Approving Changes to the Page 1 Staff Report City of San Bernardino Request for Council Action Date: August 19, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By: Edelia Eveland, Director of Human Resources Subject: City Clerk Employment Agreement Recommendation Adopt Resolution No. 2020-212 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute an employment agreement for the position of City Clerk (U) with Genoveva Rocha to commence on August 19, 2020. Background Section 505 of the new City Charter adopted by voters on November 8, 2016, and filed with the California Secretary of State on January 31, 2017, establishes the City Clerk as a position appointed by the Mayor and City Council. On December 4, 2019, the Mayor and City Council approved and established the job classification and salary for the appointed City Clerk and directed staff to begin the search for an appointed City Clerk. On June 2, 2020, the Mayor and City Council provided direction to prepare an employment agreement appointing Genoveva Rocha as the City Clerk for approval on August 19, 2020. Discussion The employment agreement presented in Exhibit “A” to Resolution No. 2020 -212 reflects the terms of the position of appointed City Clerk. 2020-2025 Key Strategic Targets and Goals The authorization to execute the employment agreement aligns with Key Target No. 2: Focused, Aligned Leadership and Unified Community. Fiscal Impact Funding to support the appointed City Clerk was anticipated and included in the FY 2020/21 Adopted Budget in the City Clerk’s Department budget. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, 3 Packet Pg. 66 6843 Page 2 California, adopt Resolution No. 2020-212, authorizing the City Manager to execute an employment agreement for the position of City Clerk (U) with Genoveva Rocha to commence on August 19, 2020. Attachments Attachment 1 Resolution No. 2020-212; Exhibit “A” - City Clerk Employment Agreement Ward: All Synopsis of Previous Council Actions: December 4, 2020 The Mayor and City Council adopted Resolution No. 2019-354, approving and establishing the classification and job description of City Clerk and directed staff to begin the search for an appointed City Clerk. 3 Packet Pg. 67 RESOLUTION NO. 2020-212 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE AN EMPLOYMENT AGREEMENT FOR THE POSITION OF CITY CLERK (U) WITH GENOVEVA ROCHA TO COMMMENCE ON AUGUST 19, 2020 WHEREAS, Section 505 of the new City Charter adopted by voters on November 8, 2016 and filed with the California Secretary of State on January 31, 2017, establishes the City Clerk as a position appointed by the Mayor and City Council; and WHEREAS, on December 4, 2019, the Mayor and City Council approved and established the job classification and salary for the appointed City Clerk and directed staff to begin the search for an appointed City Clerk; and WHEREAS, it is the desire of the Mayor and City Council to retain the services of Genoveva Rocha as City Clerk. 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 City Manager is hereby authorized to execute an employment agreement for City Clerk between the City of San Bernardino and Genoveva Rocha, attached hereto as Exhibit “A” and incorporated herein. SECTION 3. 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 4. 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 Acting City Clerk this 19th day of August 2020. 3.a Packet Pg. 68 Attachment: HR.City Clerk Employment Agreement - Resolution (6843 : City Clerk Employment Agreement) Resolution No. 2020-212 John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney 3.a Packet Pg. 69 Attachment: HR.City Clerk Employment Agreement - Resolution (6843 : City Clerk Employment Agreement) Resolution No. 2020-212 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the 19th day of August 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ Mayor: VALDIVIA _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk 3.a Packet Pg. 70 Attachment: HR.City Clerk Employment Agreement - Resolution (6843 : City Clerk Employment Agreement) EXHIBIT A EMPLOYMENT AGREEMENT This Employment Agreement (“Agreement”) is entered into as of the 19th day of August 2020 (the “Effective Date”), between the City of San Bernardino, a California charter city (“City”), and Genoveva Rocha (“Employee”). The City and Employee are sometimes referred to in this Agreement as “Party” and collectively as “Parties.” RECITALS WHEREAS, it is the desire of the City Council to retain the services of Employee as City Clerk, and WHEREAS, it is the desire of the City Council to provide certain benefits, establish certain conditions of employment and to set certain working conditions of the City Clerk. NOW, THEREFORE, the above named Parties hereby mutually agree and promise as follows: 1. Duties, Acceptance of Appointment, Hours of Work. 1.1 Appointment and Scope of Services. Employee has been appointed as City Clerk by the City Council, and shall perform the functions of City Clerk, a position involving highly-specialized and critically-needed skills set forth in the attached job description, in the San Bernardino Municipal Code, and as provided by law. Such employment is “at will,” subject to the terms of this Agreement, and Employee shall perform said duties at the pleasure of and under the direct supervision of the City Council. 1.2 Acceptance of Appointment. Employee hereby accepts the appointment as City Clerk of the City of San Bernardino subject to all terms and conditions set forth in this Agreement. 1.3 Hours of Work. Employee is expected to devote necessary time, within and outside normal business hours, to the business of the City as an exempt employee under the Fair Labor Standards Act. 3.b Packet Pg. 71 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) A-2 2. Term. This Agreement shall be deemed effective for an initial term beginning on August 19, 2020 (“Effective Date”) and shall continue until terminated in accordance with Section 10 of this Agreement. 3. Compensation. 3.1 Salary City agrees to pay Employee as compensation for services rendered pursuant to this Agreement, an annual base salary, commencing on the Effective Date, in the amount of $123,336.00 Dollars ($10,278 per month), payable in installment payments in the same manner and at the same times as other City employees. 3.2 Benefits Employee shall be eligible for and entitled to those benefits listed in RESOLUTION NO. 2017-139 (attached hereto as Exhibit A) available and applicable to Employee’s class of employment, unless this Agreement states terms and benefits that are (1) of the type not provided for in said resolution, or (2) the benefits as described in this Agreement are more expansive than said resolution. It is the intention of City and Employee that any resolution adopted by the City to supersede the aforementioned resolution become applicable to Employee to the extent the superseding resolution increases various benefits for Employee. In addition, and except as otherwise specified herein, Employee shall receive all such other benefits and compensation that are generally applicable to City Management/Confidential employees. 3.3 Mobile Phone The City shall provide Employee with a mobile phone for use in City business. Employee understands that all data and information stored on the phone, including but not limited to records of calls made and received, voice mail messages, and text messages may be considered public records under the California Public Records Act. 4. Performance Evaluation. The City Council shall review Employee’s job performance at least once annually. Employee shall remind the City Council of its obligations under this Section each year and shall work with the City Council in finding an appropriate time to place his or her annual evaluation on the agenda. The City Council may also review Employee’s performance at other intervals as it deems appropriate. In connection with 3.b Packet Pg. 72 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) A-3 review of Employee’s job performance, City shall utilize RESOLUTION NO. 94-392 (attached hereto as Exhibit B) and shall consider a step increase of Employee’s Base Annual Salary. 5. Bonds. City shall bear the full cost of any fidelity or other bonds required of Employee under any law or policy. 6. Vehicle Allowance. The City agrees to pay to the Employee, during the term of this Agreement and in addition to other salary and benefits herein provided, a monthly vehicle allowance in accordance with RESOLUTION NO. 2018-171 (attached hereto as Exhibit C), to be used to purchase, lease, or own, operate and maintain a vehicle for use by the Employee when conducting City business. Employee shall be responsible for paying for liability, property damage, and comprehensive insurance coverage upon such vehicle and shall further be responsible for all expenses attendant to the purchase, operation, maintenance, repair, and regular replacement of said vehicle. It is understood that the vehicle allowance may be considered taxable income subject to withholdings. 7. Business Expenses. 7.1 General Expenses City recognizes that Employee may incur expenses of a non-personal, job- related nature that are reasonably necessary to Employee’s service to the City. The City agrees to either pay such expenses in advance or to reimburse the expenses, so long as the expenses are incurred and submitted in accordance with the City’s normal expenditure reimbursement procedures. To be eligible for reimbursement, all expenses must be supported by documentation meeting the City’s normal requirements and must be submitted within time limits established by the City. 7.2 Work-Related Employee Events City shall grant Employee a reimbursement allowance of up to Fifty Dollars ($50.00) per month to cover work-related employee events. 8. Abuse of Office or Position. Pursuant to Government Code Sections 53243, 53243.1 and 53243.2, if Employee is convicted of a crime involving an abuse of his or her office or position, all of the following shall apply: (1) if Employee is provided with administrative leave pay pending an investigation, Employee shall be required to fully reimburse City such 3.b Packet Pg. 73 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) A-4 amounts paid; (2) if the City pays for the criminal legal defense of Employee (which would be in its sole discretion, as it is generally not obligated to pay for a criminal defense), Employee shall be required to fully reimburse the City such amounts paid; and (3) if this Agreement is terminated, any severance pay and severance benefits related to the termination that Employee may receive from the City shall be fully reimbursed to City or void if not yet paid. For purposes of this Section, abuse of office or position means either: (1) an abuse of public authority, including waste, fraud, and violation of the law under color of authority; or (2) a crime against public justice, including, but not limited to, a crime described in Title 7 (commencing with Section 92) of Part 1 of the Penal Code. 9. Notices. Any notice required or permitted by this Agreement shall be in writing and shall be personally served upon the other Party, or sent by United States Postal Service, postage prepaid and addressed to the appropriate Party as follow: If to City: City of San Bernardino Attn: Teri Ledoux, City Manager 290 North “D” Street San Bernardino, CA 92401 If to Employee: Genoveva Rocha, City Clerk Personal Address on File Notice shall be deemed given as of the date of personal service or upon the date of deposit in the course of transmission with the United States Postal Service. 10. Termination. 10.1 Severance Unless employee is terminated for cause, Employee shall be entitled to and receive upon termination a severance payment equivalent to one (3) month’s base salary in effect on her effective termination date. Severance payment shall not include all compensation, cash equivalent benefits, or expense reimbursements due and payable to Employee upon termination. 10.2 At-Will Employee Employee shall serve at the will and pleasure of the City Council. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the City Council to suspend from duty, remove from office or otherwise terminate the services of Employee at any time, at the sole discretion of the City Council. This Agreement may be terminated as follows. 3.b Packet Pg. 74 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) A-5 10.3 Termination - Council Vote In accordance with section 505 of article V of the San Bernardino City Charter, the City Council may remove the Employee with or without cause by motion adopted by five affirmative votes of the Mayor and members of the City Council. 10.4 Resignation Employee may voluntarily resign his or her position as City Clerk, after giving the City at least thirty (30) days written notice prior to the effective date of such resignation, unless such notice is waived in whole or part by the City Council. 10.5 Disability. In the event the Employee is permanently disabled or is otherwise unable to perform his or her duties because of physical or mental incapacity for a period of six (6) consecutive months, the City may terminate the Employee’s employment and this Agreement. Notwithstanding the above, nothing in this subsection shall be interpreted to waive any obligation the City may have to provide Employee with a reasonable accommodation or to engage in an interactive process with Employee to determine whether a reasonable accommodation is available. 11. General Provisions. 11.1 This writing constitutes the entire agreement between the parties with respect to the subject matter hereof, and supersedes all prior oral or written representations or written agreements on the subject matter hereof, which may have been entered into between the parties. No modification or revision to this Agreement shall be of any force or effect, unless the same is in writing and executed by the Parties hereto. 11.2 Each Party agrees and acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any Party, which are not embodied herein and that any agreement, statement, or promise not contained in this Agreement shall not be valid or binding on either Party. 11.3 If any provision, or portion thereof, contained in the Agreement is held unconstitutional, invalid or unenforceable, the remainder of this Agreement, or portion thereof, shall be deemed severable, shall not be affected and shall remain in full force and effect. 11.4 This Agreement shall be governed by and construed in accordance with the law of the State of California. Venue shall be in San Bernardino County. 3.b Packet Pg. 75 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) A-6 11.5 This Agreement shall be construed as a whole, according to its fair meaning, and not in favor or against any Party. By way of example and not in limitation, this Agreement shall not be construed in favor of the party receiving a benefit or against the Party responsible for any particular language in this Agreement. 11.6 Employee acknowledges that he or she has had an opportunity to consult legal counsel in regard to this Agreement, that he or she has read and understands this Agreement, that he or she is fully aware of its legal effect, and that he or she has entered into it freely and voluntarily and based on his or her own judgment and not on any representations or promises other than those contained in this Agreement. 11.7 In any dispute arising out of this Agreement, the prevailing party shall recover its reasonable attorneys’ fees and costs. IN WITNESS WHEREOF, the parties have executed this Employment Agreement on the 19th day of August, 2020. EMPLOYEE Genoveva Rocha CITY Teri Ledoux City Manager 3.b Packet Pg. 76 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 RESOLUTION NO. 2017-139 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, REGARDING THE ESTABLISHMENT OF MANAGEMENT/CONFIDENTIAL EMPLOYEE COMPENSATION AND BENEFITS PLAN BETWEEN THE CITY AND MANAGEMENT/CONFIDENTIAL EMPLOYEES; REPEALING RESOLUTION NO. 2007-345; RESOLUTION NO. 2008- 169; RESOLUTION NO. 2008-306; RESOLUTION NO. 2009-35; RESOLUTION NO. 2009-71; RESOLUTION NO. 2010-217; RESOLUTION NO. 2010-276; RESOLUTION NO. 2012-188; RESOLUTION NO. 2013-22; AND RESOLUTION NO. 2014-249; AND AMENDING RESOLUTION NO. 2015-242 WHEREAS, the designated representatives of the Mayor and City Council ("City") met and conferred in good faith with the employees in the San Bernardino Confidential and Management Association (SBCMA); WHEREAS, after four (4) meetings commencing on June 8, 2017 the City and the SBCMA agreed to the terms and conditions of the compensation and benefits plan as provided in this Resolution; WHEREAS, on July 6, 2017, SBCMA approved the terms and conditions of the compensation and benefits plans as provided in this Resolution; and WHEREAS, it is necessary to codify the changes to compensation and benefits granted to the SBCMA employees of the City of San Bernardino. NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The City Council of the City of San Bernardino (City) hereby adopts a compensation and benefits plan for the San Bernardino Confidential and Management Association (SBCMA) as follows: 1. The term of this Resolution begins on July 1, 2017, and extends through June 30, 2020. If negotiations regarding a new Resolution establishing a compensation and benefits plan for the Management/Confidential Employees have not concluded by the time this Resolution expires, the terms of this Resolution shall remain in effect until a new Resolution is adopted by the Mayor and City Council. 2. Comp ensation/Salaries. Effective July 1, 2017, or the date that both the SBCMA and the Council have ratified and approved the terms and conditions set forth in a Compensation and Benefits Resolution, but not before July 1, 2017, the salary ranges for all SBCMA members shall be increased by two percent (2%) to reflect a 1 Management/Confidential EXHIBIT A 3.b Packet Pg. 77 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) 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 cost of living adjustment (COLA). Effective July 1, 2018, the salary ranges for all SBCMA members shall be increased by two percent (2%) as a COLA. Effective July 1, 2019, the salary ranges for all SBCMA members shall be increased by two percent (2%) as a COLA. All salary ranges for SBCMA members shall be amended by the Mayor and City Council in accordance with these provisions. 3. Classification and Sala ry Studv . The City and the SBCMA agree to complete a classification and salary study ("Study") during fiscal year 2019-2020 or the third year that this Resolution is in effect. The purpose of the Study will be to review current SBCMA employee classifications and propose revisions that provide fair and rational internal and external relationships. A joint job evaluation/compensation committee will be established to review the Study recommendations and develop a plan for implementing the study. The City and the SBCMA agree to address any salary adjustments to individual classifications during fiscal year 2020-2021 and any adjustments may be implemented in a subsequent Compensation and Benefits Resolution. Any salary equity adjustments to individual classifications will be considered with any across-the-board salary adjustments as to the total cost of SBCMA salaries. Annual salary adjustments, which may include equity adjustments resulting from the Study, will be based upon availability of funds and will be evaluated in the context of the City's long term financial plan that has been confirmed by the Bankruptcy Court. 4. Insurance (M edical, Dental & Vision). Effective January 1, 2018, the City will contribute: a) $1,025.00 per month towards the purchase ofhealth care benefits for Employee Only; and, b) $1,150.00 per month towards the purchase of health care benefits for Employee Plus One or More Dependents. Effective January 1, 2019, the City will contribute: a) $1,070.00 per month toward the purchase of health care benefits for Employee Only; and, b) $1,195.00 per month towards the purchase of health care benefits for Employee Plus One or More Dependents. Effective January 1, 2020, the City will contribute: a) $1,125.00 per month toward the purchase of health care benefits for Employee Only; and b) $1,250.00 per month toward Employee Plus One or More Dependents. The City's contributions for health care benefits are available to SBCMA 2 Management/Confidential 3.b Packet Pg. 78 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) 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 5. members for the purchase of medical, dental, vision, life and accidental death and dismemberments through City selected plans. The amount of the City's contributions is based upon the "medical" enrollment category, i.e, Employee Only or Employee Plus One or More Dependents. For example, if an employee elects "employee only" medical coverage, then the "employee only" allowance will be contributed. Any City contributions not used by a SBCMA member for health benefits will revert to the City; however, if a SBCMA member selects a medical plan (Employee Only or Employee Plus One or More Dependents), any additional contributions beyond the amounts identified above, may be contributed toward additional life insurance or a City-provided deferred compensation plan. Health Insurance Waiver Stipend: Any employee who chooses not to enroll in any health care plan offered by the City, must provide evidence of group health care insurance coverage and execute a Waiver of Benefits and Release Agreement, releasing the City from any responsibility or liability to provide health care insurance coverage on an annual basis. Employees who do not enroll in a City health care plan during open enrollment and execute the forms above, shall receive a stipend of $3,000.00 on December 15th of each year covered by this Resolution. Employees participating in this option are required to waive all medical, dental and vision coverage provided by the City. SBCMA agrees to participate in the City's Joint Labor-Management Health Benefits Committee ("Committee") to evaluate, on an annual basis, City-wide plan designs for health care. All plan designs and City contributions shall be effective on January 1st annually. During the term of this Resolution, the City intends to review health care provider options, especially in light of potential changes to the current Affordable Care Act ("ACA"). During the term of this Resolution, the City reserves the rights, and the SBCMA agrees, to reopen negotiations on providers, health care plans, and/or any provision under this Section ofthe Resolution. Life and Accidental Death & Dismemberment (AD&D) Insurance. The City shall provide Term Life and Accidental Death & Dismemberment Insurance of one times the employee's annual salary for Executive Management, Seventy-five thousand dollars ($75,000) for all other Management employees, and fifty thousand dollars ($50,000) for Confidential employees. 3 Management/Confidential 3.b Packet Pg. 79 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) 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 6. Holidays. All full-time employees within the Management/Confidential group shall be entitled to twelve (12) City-designated holidays, the equivalent of one hundred eight (1 08) holiday hours each year for those employees working a 5/8 or 9/80 work schedule and one hundred twenty (120) holiday hours each year for those employees working on a 4/10 work schedule. On January 1st of each year that this Resolution is in effect, all SBCMA members will receive an additional eighteen (18) hours of holiday leave ("Floating Holidays"). SBCMA members working a 5/8 or 9/80 work schedule may only carry over 1 08 hours per fiscal year; SBCMA members working a 4/10 work schedule may only carry over 120 hours per fiscal year. On June 30th any holiday bank hours exceeding 1 08 or 120 hours will be forfeited. On or about November 30th of each calendar year, the City Manager shall determine, and the Human Resources Director will distribute, the schedule of specific days that the twelve designated holidays will be observed for the next calendar year. At the time of separation from employment, SBCMA members will receive a payout of 100% for all accrued but unused post-petition holiday pay. 7. Jury Duty. The City will pay for all working days in a calendar year of a covered employee who is required to serve on jury duty. 8. Administrative Leave. On July 1st of each fiscal year that this Resolution is in effect, FLSA exempt SBCMA employees shall receive eighty (80) hours of administrative leave. At June 30th of each year, any unused Administrative Leave up to twenty (20) hours will be automatically carried over to the following fiscal year. Additional administrative leave may be granted at any time during a fiscal year, up to a maximum of twenty (20) hours, with a request in writing, including justification. recommended by the employee's department head. and approved by the Department Head or the City Manager. Any Administrative Leave has no cash value and shall not be paid out at any time. 9. Vacation Leave. a. All SBCMA members shall accrue eighty (80) hours of paid vacation upon the first day of the second year of continuous full-time employment with the City of San Bernardino. Thereafter, vacation shall accrue each pay period prorated according to the number of days or shifts per year in the following chart: 4 Management/Confidential 3.b Packet Pg. 80 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) 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 Completed Years of Rate of Accrual Equivalent Hours Continuous Service Per Pay Period Per Year 1 Year** 3.333 hours 80 hours 5 Years 5.0 hours 120 hours 15 Years 6.667 hours 160 hours 20 Years 8.334 hours 200 hours **No vacation shall be granted if service is less than one ( 1) year. b. Vacation credits may accrue and accumulate for a maximum of two (2) years' total accumulated vacation credits on a carry-over basis from year to year: 1) 1 through 5 years of service= 160 hours; 2) 6 through 15 years of service= 240 hours; 3) 16 through the completion of 20 years of service = 320 hours; and, 4) 21 or more years of service = 400 hours. Once the cap has been reached, a bargaining unit member may not accrue any additional hours until the employee's accrued leave is below the cap. c. In the event an employee works less than fifty percent (50%) of the total normal work hours in a pay period, he/she shall not be credited with any vacation leave for such pay period. Approved vacation, sick, holiday, and administrative leave shall be considered as time worked for this item only. d. When an employee resigns or otherwise leaves the service of the City, payment shall be made to the employee for the earned portion of his/her post-petition vacation hours on the basis of the hourly rate of pay being received by the employee on the date of separation. e. Vacation Sell Back. SBCMA members may sell back up to forty ( 40) hours of post-petition vacation time per year providing the following conditions have been met: 1. Employees must have a minimum of one hundred twenty (120) hours remaining in their vacation balance after the sell back occurs; 2. Employees must have taken at least forty ( 40) cumulative hours of vacation during the past year prior to the sell back of hours; 3. Employees must complete a sell back form, which must include the signature of the City Manager's approval of the sell back; 4. Forms must be submitted to the Finance Department on or before November 1st each year this Resolution is in effect; and, 5 Management/Confidential 3.b Packet Pg. 81 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 25 10. 5. Payment for vacation sell back hours will be paid (using the current Council approved salary rates in the Salary Resolution) on the employee's December 15th paycheck each year. Sick Leave. a. Regular full-time employees hired on or after July 1, 2017, and who are covered by this Resolution are eligible to receive thirty (30) hours of paid sick leave after the new employee has been employed with the City for ninety (90) days. Such paid sick leave may be used for employee or family illness or for medical reasons or other reasons provided under the City's Paid Sick Leave Policy (AB 1522), adopted by the Mayor and Common Council on June 18, 2015 by Resolution 2015-116. Thereafter, sick leave as herein provided shall accrue at a rate of eight (8) hours per month, four (4) hours per pay period. Employees may only accrue a maximum of 1040 hours of sick leave at any time. b. In the event an employee works less than fifty percent (50%) of the total normal work hours in the pay period, he/she shall not be credited with any sick leave for such pay period. Approved vacation, sick leave, holiday or administrative leave shall be considered as time worked for the purpose of computing sick leave benefits only. Whenever an employee uses all allowable sick leave, further absences may be charged against accrued vacation or with department head approval, the employee may take loss of pay rather than vacation. c. Sick leave means the absence from duty of an employee because of illness or injury, exposure to contagious disease, attendance upon a member of his/her immediate family who is seriously ill and requires the care of or attendance of an employee, or death in the immediate family of the employee. Immediate family means: husband, wife, grandmother, grandfather, mother, father, sister, brother, son or daughter, mother-in-law, father-in-law, sister-in-law, brother-in-law, son-in-law or daughter-in- law, step mother, step father, or domestic partner. d. Upon the Department Head's request, an employee must provide a physician's statement to justify sick leave usage of five (5) consecutive days or longer. Employees suspected of abuse of excessive use of sick leave may also be required to furnish a written statement from their health care provider supporting the use of sick leave and/or the ability to return to work. 6 Management/Confidential 3.b Packet Pg. 82 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 e. No absence due to illness or injury in excess of five (5) working days shall be approved except after the presentation of satisfactory evidence of illness or injury; namely a certificate from a practicing physician or an authorized practicing chiropractor approved by the City Manager or his/her designee. The City Manager or his/her designee shall have the power to require that any person claiming the sick leave benefits of this resolution be examined at any reasonable time or intervals by the City's designated physician, and in the event of an adverse report to reject such claim for sick leave, in whole or in part, and to terminate sick leave compensation. In the event of the refusal of any person to submit to such examination after notification, the City Manager or his/her designees may terminate sick leave compensation and reject any claim therefor. The City Manager or his/her designee shall have the right to require the presentation of a certificate. f. At the time of separation, any employee having six (6) or more years of service, may cash out unused post-petition sick leave as follows: 1) 288 hours or less, no cash out; 2) 289-479 hours = 20% of the total accrued hours; 3) 480-959 hours= 25% of the total accrued hours; and, 4) 960 or more accrued hours= 35%. 11. PEHP Plan. The City agrees to participate in the Post Employment Health Plan (PEHP) in accordance with the terms and conditions of the Plan's Participation Agreement. 12. CalPERS Retirement. SBCMA members are provided retirement benefits under the California Public Employees' Retirement System (CalPERS) as follows: Tier 1: 2. 7% @ 55 Benefit Formula for employees hired on or before October 3, 2011; Tier II: 2%@ 55 for employees hired on or after 10/4/11 through 12/31/12; Tier III: 2% @ 62 for new employees hired on or after January 1, 2013, that satisfy the definition of "new member" under the Public Employees' Pension Reform Act (PEPRA). 7 Management/Confidential 3.b Packet Pg. 83 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Emplo yee Share. Effective 2/112013, all Tier I and Tier II employees shall pay the employee's share of the retirement contribution, either 8% for the 2.7@ 55 formula or 7% for the 2%@ 55 formula. Effective 11112013, Tier III employees shall pay the employee contribution required by the PEPRA, calculated at 50% of the normal cost. Emplo yer Share. Effective 2/112013, all employees shall contribute 9.304% (either 1.304% or 2.304% depending whether the employee rate is 8% or 7%) of their salary toward the employer cost of retirement in accordance with Section 20516 of the California Government Code. The City will pay the employer contribution for the Fourth Level 1959 Survivor Benefit. For Tier I and II employees, the final compensation retirement calculation shall be based upon their single highest year of compensation earnable as provided under Section 20042 of the California Government Code. The compensation earnable period for Tier III PEPRA employees will be three years. The City and the SBCMA acknowledge that the_ PEPRA laws and regulations shall govern a determination of whether employees are hired as "new members" or "classic or legacy" members. 13. Charter Amendments and Uniform Policies. Section 508 of the City's new Charter that became effective on January 31, 2017, provides that, "The Council shall provide for the establishment, regulation and maintenance of a merit system and governing personnel rules and regulations necessary for the effective administration of employees of the City's departments, offices and agencies. Such personnel rules and regulations may include but are not limited to classification and pay plans, examinations, force reduction, removals, working conditions, provisional and exempt appointments, in-service training, grievances and relationships with employee organizations." Accordingly, the City will be reviewing and developing uniform personnel policies in order to implement this Charter section. The City will provide copies of the uniform personnel rules and policies to the SBCMA prior to the City Council adoption of such rules and policies. The City contemplates that the City's uniform policies will include, without limitation, the following: City-wide Educational Incentive Pay; Acting Pay; Employee Assistance Program (EAP); Injury Leave; Drug and Alcohol Testing; Leave of Absence without Pay; No-Pay Status; Military Leave; Jury Duty; Catastrophic Leave; 8 Management/Confidential 3.b Packet Pg. 84 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Seniority; Work Schedules; and, Probationary Period. Until such rules and policies have been adopted, all existing rules and policies, including, without limitation, shall remain in effect. 14. Wellness Benefit. Full-time employees who have successfully passed probation are eligible to receive a taxable wellness/physical benefit of $250.00/year during each calendar year that this Resolution is in effect. This amount does not roll over to the next calendar year and any amounts not used by December 31st shall be forfeited. Employees have until March 31st of the following calendar year to turn in receipts from the prior year. All reimbursement requests shall be made on forms provided by the Human Resources Department. Expenditures must follow the guidelines provided in Exhibit A to this Resolution. 15. Performance Evaluations. Performance evaluations and any corresponding merit pay increases will be administered through the provisions of the City's Department Director Letter (DDL) No. 66, as may be amended. 16. De p artment Head Allowance. A Department Head may be reimbursed up to fifty dollars ($50) per month to cover work related employee events such as lunches, department celebrations, employee recognitions, and other events and functions. The allowance shall not accumulate from month to month. Requests for reimbursement shall be submitted to the Finance Department on prescribed forms . 18. Bankrup tcy Provisions/Release of Claims/Pre-Petition Leave Balances. Section 9 of Resolution No. 2015-242 Pre-Petition Leave Balances and Appendix A to Resolution No. 2015-242 Bankruptcy Provisions and Release of Claims shall continue to be in effect and are incorporated herein to this Resolution. 9 Management/Confidential 3.b Packet Pg. 85 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, REGARDING THE ESTABLISHMENT OF MANAGEMENT/CONFIDENTIAL EMPLOYEE COMPENSATION AND BENEFITS PLAN BETWEEN THE CITY AND MANAGEMENT/CONFIDENTIAL EMPLOYEES; REPEALING RESOLUTION NO. 2007-345; RESOLUTION NO. 2008-169; RESOLUTION NO. 2008-306; RESOLUTION NO. 2009-35; RESOLUTION NO. 2009- 71; RESOLUTION NO. 2010-217; RESOLUTION NO. 2010-276; RESOLUTION NO. 2012-188; RESOLUTION NO. 2013-22; AND RESOLUTION NO. 2014-249; AND AMENDING RESOLUTION NO. 2015-242 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and City Council ofthe City of San Bernardino at a Joint Regular Meeting thereof, held on the 19th day of July 2017, by the following vote, to wit: Council Members: AYES MARQUEZ X BARRIOS X VALDIVIA X SHORETT X(M) NICKEL X(S) RICHARD X MULVIHILL X Approved as to form: Gary D. Saenz, City Attorney NAYS ABSTAIN ABSENT ~ 10 R. Carey Dav· , Mayor City of San ~ernardino Management/Confidential 3.b Packet Pg. 86 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) I 94- 392 1 2 RESOLUTION NO.RESOLUTION OF THE CITY OF SAN BERNARDINO AMENDING RESOLUTION NO. 6413 ENTITLED IN PART, "A RESOLUTION. . . ESTABLISHING A BASIC 4 COMPENSATION PLAN. . . , " BY UPDATING INFORMATION CODIFYING PRIOR COUNCIL ACTION. (MANAGEMENT & CONFIDENTIAL)5 3 6 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS FOLLOWS:7 8 SECTION 1: Section Five of Resolution No, 6413 is hereby amended to exclude management and confidential employees.9 10 SECTION 2: Section Five and One-Half is added to Resolution No, 6413, as follows:11 SECTION FIVE AND ONE-HALF: Section Five and One-Half shall apply to all non-12 safety management and confidential employees: 13 14 15 a)Effective January I, 1995, employees will be adjusted from their current salary ranges and steps to the new ranges and steps as set forth in Sections Twelve and Fourteen of this resolution. Step placement will be nearest dollar with minimum placement at Step Two, 16 17 Employees who would have advanced to a higher step during the month of January, 1995 will 18 receive their January advancement and then will be placed in the range and step nearest their 19 January salary. 20 21 22 b)Employees hired within the last six months, or who will be hired at Step 1 after January 1, 1995, will be eligible for a maximum of a 5% step increase after the successful completion of the first six months of service. The minimum time period between all 23 24 other steps will be twelve months.25 c)Beginning January 1,1996, and each January 1 thereafter, all management 26 and confidential employees who have not yet reached top step, may receive an increase ranging 27 from 1 % to 5%, based upon the performance evaluations completed within the previous EXHIBIT B 3.b Packet Pg. 87 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) 94- 392 1 AMENDMENT TO RESOLUTION NO. 6413 BY UPDATING INFORMATION 2 CODIFYING PRIOR COUNCIL ACTION. 3 evaluation period. The evaluation period is six months from Step 1 to Step 2, and twelve 4 5 6 7 months between all other steps. d)All management and confidential employees shall be evaluated in writing, 1) Evaluation of department heads and heads of divisions within the 8 City Administrator's Office will be performed by the City Administrator and reviewed by the 9 Mayor, using an evaluation format approved by the City Administrator. 10 11 12 13 2)Evaluation of the Civil Service Chief Examiner will be performed by the Civil Service Board and reviewed by the Mayor.3)Evaluation of the City Librarian will be performed by the Library 14 Board and reviewed by the Mayor.15 4)Evaluation of employees of elected officials will be performed by 16 the elected official or his/her designee and reviewed by the Mayor. 17 18 19 5)Evaluation of other management/confidential employees will be performed by the department head, or division head, in the case of divisions within the City 20 Administrator's Office, or a designee of the department or division head, and may be reviewed 21 by the City Administrator. Evaluation forms for these employees will be provided by the 22 Director of Personnel.23 e)Recommendations for increases shall be submitted to payroll on a form 24 provided by Finance at least 30 days prior to the expiration of the evaluation period. 25 26 27 28 1) Recommendations for salary advancement of 3.b Packet Pg. 88 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) 94- 392 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 AMENDMENT TO RESOLUTION NO. 6413 BY UPDATING INFORMATION CODIFYING PRIOR COUNCIL ACTION,or division head within the office of the City Administrator, shall be submitted by the City Administrator.2) Recommendations for salary advancement of the Civil Service Chief Examiner shall be submitted by the Civil Service Board.3)Recommendations for salary advancement of the City Librarian shall be submitted by the Library Board.4)Recommendations for salary advancement of employees of elected officials, with the exception of the Council Office, shall be approved and submitted by the Mayor.5)Recommendations for salary advancement within the Council Office shall be submitted by a Council committee,6) Recommendations for advancement of all other management/confidential employees shall be submitted by their respective department heads.f) When an employee returns to work after an approved leave of absence without pay and has over two (2) months of uncompensated service within the prior twelve-month period, his/her anniversary date and compensation advancement date, for the purpose of 22 establishing compensation as provided for in this section, shall be extended by the length of time 23 24 25 for which the leave of absence was granted.In circumstances in which either the Federal Family Leave Act or the State Medical and Family Leave Act apply, the City shall adhere to the requirements of the Acts, 26 3.b Packet Pg. 89 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) 94-3.b Packet Pg. 90 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) 94'- 392 1 AMENDMENT TO RESOLUTION NO. 6413 BY UPDATING INFORMATION 2 CODIFYING PRIOR COUNCIL ACTION. 3 3428)3753 3941 4138 4344 4562 Programmer Analyst 3867 4060 4263 4476 4700 City Attorney Investigator ( U)4962 5210 5471 5744 6031 Deputy City Attorney I ( U)5216 5477 5750 6038 6340 Deputy City Attorney II ( U)5483 5757 6045 6347 6664 Deputy City Attorney III ( U)5763 6051 6354 6671 7005 Deputy City Attorney IV ( U)6058 6361 6679 7013 7363 Senior Deputy City Attorney ( U) 3.b Packet Pg. 91 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) 94-3.b Packet Pg. 92 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) 94- 3.b Packet Pg. 93 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) 94- 392 1 AMENDMENT TO RESOLUTION NO. 6413 BY UPDATING INFORMATION 2 CODIFYING PRIOR COUNCIL ACTION. 3 6572 6901 Assistant Directorof4511) 5677 5961 6259 4 Planning and Building Services ( U) 5 6 (4517) 5850 6142 6449 6772 7111 Assistant City Engineer 7 (4523) 6028 6329 6645 6978 7327 City Librarian ( U)8 (4524) 6058 6361 6679 7013 7363 Director of Personnel ( U) 9 Director of Parks,Recreation & Community 10 Services (U) Director of Public Services (U) 11 4532) 6300 6615 6946 7293 7658 City Attorney (U) 12 13 ( 4541) 6594 6923 7270 7633 8015 Director of Planning &Building Services (U)14 4543) 6660 6993 7342 7710 8095 Director of Finance (U)15 4544) 6693 7028 7379 7748 8136 Assistant City Attorney (U)16 17 ( 4556) 7106 7461 7834 8226 8637 Director of Public Works/City Engineer (U) 18 4558) 7173 7532 7909 8304 8719 City Administrator (U) 19 20 ( 4560) 7249 7612 7992 8392 8811 Assistant City Administrator U) 21 4564) 7395 7765 8153 8561 8989 Senior Assistant City Attorney 22 (U) 23 24 25 26 27 28 8 3.b Packet Pg. 94 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) 94~392 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 TO RESOLUTION NO. 6413 BY UPDATING INFORMATION CODIFYING PRIOR COUNCIL ACTION. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a reQula1.'meeting thereof,19th day of December heldonthe1994, by the following vote, to wit:COUNCILMEMBERS AYES NAYS ABSENT ABSTAIN NEGRETE x CURLIN x HERNANDEZ " OBERHELMAN x DEVLIN x POPE- LUDLAM "MILLER x G~~ City 'elerk 9 3.b Packet Pg. 95 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) 94-' 392 1 2 3 4 5 6 7 8 9 10 11 AMENDMENT TO RESOLUTION NO. 6413 BY UPDATING INFORMATION CODIFYING PRIOR COUNCIL ACTION.22nd dayofTheforegoingresolutionisherebyapproved this December 1994. ApprOved as to 12 Wf'fll llIld legalCo.ltc.. t: 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 JAMES F. PENMAN City Attorney By: Ju7 ~:y...~ C4~27( ~ C~ 4"i/9/Jr Thm Min , ayor City of San 3.b Packet Pg. 96 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) EXHIBIT C 3.b Packet Pg. 97 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) 3.b Packet Pg. 98 Attachment: HR.City Clerk Employment Agreement - Exhibit A (6843 : City Clerk Employment Agreement) Page 1 Public Hearing City of San Bernardino Request for Council Action Date: August 19, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Michael Huntley, Director of Community & Economic Development Subject: Substantial Amendment Action Plan - Coronavirus Relief Funds Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California hold a public hearing and: 1. Adopt a Substantial Amendment to the FY 2020/21 Act ion Plan: a. Directing the Finance Director to amend the Fiscal Year 2020/21 Budget pursuant to the Substantial Amendment to the Fiscal Year 2020/21 Action Plan; b. Directing the Finance Director to establish new funds and associated accounts for the Community Development Block Grant (CDBG-CV1), the Emergency Solutions Grant (ESG-CV1) and (ESG-CV2), pursuant to the Substantial Amendment to the Fiscal Year 2020-2021 Action Plan; c. Directing the Finance Director to establish an account in the Low Mod Housing Fund (Fund 127), in the amount of $1,049,000 for Seccombe Park Housing Project, and reduce the budget for the project under HOME fund 116 by the same; d. Authorizing the City Manager or designee to take any further actions and execute any further documents and certifications as may be necessary to effectuate the submittal of the Substantial Amendment to the Fiscal Year 2020/21 Action Plan; and 2. Adopt Resolution No. 2020-211 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to utilize the State allocated Coronavirus Relief Funds for eligible activities as authorized by the US Department of the Treasury. Background At a public hearing on April 15, 2020, the Mayor and City Council approved the City o f San Bernardino's (City) Draft Fiscal Year 2020/21 Action Plan (FY 2020/21 AP). On July 1, 2020, HUD approved the City’s FY 2020/21 AP. However, as a result of supplementary allocations provided to the City through the CARES Act, a substantial 4 Packet Pg. 99 6868 Page 2 amendment to the FY 2020/21 AP is required. The United States Department of Housing and Urban Development (HUD) made supplementary allocations to the City, for both its CDBG and ESG programs. The purpose of the supplementary allocations is to address the impacts of Coronavirus (COVID-19). The allocations were authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which was signed by President Trump on March 27, 2020, to respond to the growing effects of an historic public health crisis. The City received the following: $2,003,529 in Community Development Block Grant (CDBG -CV1); $1,019,997 in Emergency Solutions Grant (ESG-CV1); and $3,422,960 in Emergency Solutions Grant (ESG-CV2). In addition to the CARES Act funding mentioned above, which is specifically related to the Substantial Amendment, a portion of the federal CARES Act created a Coronavirus Relief Fund (CRF), which provides payments to State, Local, and Tribal governments navigating the impact of the COVID-19 pandemic. Local governments with populations of 500,000 or more received direct assistance from the federal government while local governments with populations less than 500,000, such as the City of San Bernardino, receive funding through the State of California . The California State Budget for FY 2020/21 authorized the Department of Finance to allocate $500 million of the CRF to cities on a per capita basis in order to address the public health and safety impacts of COVID-19. Under the State's per capita allocation, the City of San Bernardino will receive $2,691,008. Per State guidelines, funds are to be spent (not encumbered) by December 30, 2020 with any unspent funds returned to the State of California Department of Finance. The City must report on expenditures and actions to date by September 1, 2020. Discussion Substantial Amendment. When a substantial change such as an increase or reduction in funds, or addition or cancellation of activities is proposed, the City's Action Plan must be amended through what is referred to as a Substantial Amendment. The City is required to notify the public, and a public hearing must be held to allow the public an opportunity to comment on the proposed changes. On August 4, 2020, the CDBG Ad Hoc Committee met to d iscuss staff recommendations for programming the CDBG-CV1 funds. The following projects are proposed to be included in the Substantial Amendment to FY 2020/21 AP (Refer to Attachment 1 - Table 1) 1. Eviction Prevention Program: The program’s intent is to prevent evictions by providing payment of rent arrears to landlords of low-income tenants, in the City of San Bernardino, who have experienced financial hardship due to COVID -19. 4 Packet Pg. 100 6868 Page 3 The program would be managed by Housing Authority of the County of San Bernardino, who has extensive experience in managing rental assistance programs countywide. The program would not provide mortgage assistance, as deferral of mortgage payment assistance is being offered by lenders. Amount recommended: $1,060,000. 2. Senior Nutrition Program: It is recommended that the Senior Nutrition Program, through Parks, Recreation and Community Services, be funded using CDBG - CV1 funds for a two-year period, through FY 2021/22. As a result of the impact of COVID-19, the City’s revenue has been significantly reduced and the Senior Nutrition Program could not otherwise be funded. Prior to COVID-19, Parks, Recreation and Community Services staff prepared an average of 225 daily meals on a dine-in basis. However, since the onset of the pandemic, staff now serves an average of 160 meals a day. Staff cooks and packages hot, boxed meals for pick-up by seniors or their families. In order to make the meals more readily available city-wide and protect seniors from exposure, the meals can be picked up at six different locations. Amount recommended: $150,000. 3. Outdoor Shower Towers: Staff recommended that the Parks and Recreation Department receive funding for the purchase and installation of outdoor shower towers at three parks (Ruben Campos, Rudy Hernandez, and Delmann Heights). However, the CDBG Ad Hoc Committee directed staff to move the $60,000 recommended for the showers, to the eviction prevention program, with the recommendation that the Public Works Department investigate the possib ility of using the Meadowbrook Bridge insurance proceeds to fund the showers. Public Works is to present the recommendation for Mayor and City Council consideration at a later date. The CDBG Ad Hoc Committee’s direction is reflected in Table 1. Amount recommended: $0. 4. “Grab and Go” arts and crafts: Funding is recommended for the “Grab and Go” arts and crafts program for children. Parents or guardians are able to pick up craft kits for their children and make the crafts at home. Arts and crafts kits are distributed weekly at all community centers. The staff provides interactive instruction and participants share their work through social media. The manner in which the activity is conducted has been dictated by necessary precautions due to COVID-19. The activities are more expensive since supplies must be purchased new and can no longer be reused as in the past when children attended in-person classes. Amount recommended: $32,000. 5. Personal Protective Equipment (PPE): Upon reopening of senior centers, community centers, and libraries, staff will need to make available PPE and cleaning/sanitizing supplies to comply with the increased requirements in mandated reopening guidelines. Therefore, it is recommended that supplies for Parks, Recreation and Community Services Department and the Library be funded. Amount recommended: $24,000. 6. Modifications to Public Facilities: Prior to opening of public facilities, such as 4 Packet Pg. 101 6868 Page 4 senior centers, community centers, and libraries, staff will need to modify the buildings to prepare for, prevent, and respond to COVID -19. Funding is recommended for supplies and materials needed , such as tempered glass or Plexiglas, and PPE stations to meet the safety guidelines. Amount recommended: $336,823. On July 16, 2020, the State of California Department of Housing and Community Development (HCD) released a Notice of Funding Availability for the Homekey Program. The Homekey Program makes available $600 million state -wide for cities, counties and other local public entities, to purchase and rehabilitate housing, including hotels, motels, vacant apartment buildings, and other buildings and convert them into permanent, long-term housing. Given the heightened awareness and concern for the homeless person s in our city and their high risk for serious illness, including COVID-19, staff has been in dialogue with the County of San Bernardino, developers and Inland Empire health systems, to develop a strategy that would facilitate an application to HCD. Althou gh at this writing, a property has not been identified, the City has provided the County with a list of properties that it deems appropriate for a possible project. Some of the properties identified have been problem properties that would be better repurposed to improve the areas in which they are located. It is recommended that under the proposed Substantial Amendment to the FY 2020/21 AP, $1,049,182 in HOME funds be transferred from the Seccombe Park Housing Project, to fund a Homekey program with additional balance of $250,818 from HOME. Currently, $700,000 in HOME funds is budgeted for permanent housing which can supplement the $1.3 million, thus bringing the total available to $2 million, for a Homekey program. In order to keep the Seccombe project funding intact, it is recommended that $1,049, be budgeted and funded for Seccombe, using the Low Mod Housing Fund. The conversion of a property would result in permanent supportive housing with services exclusively for the residents of the project, simil ar to the Arrowhead Grove project funded by the City. If a project is not funded, the funds would be reprogrammed for permanent housing in a subsequent fiscal year. (Refer to Attachment 1 - Tables 2 and 3) ESG-CV2 monies can be used for the following acti vities: 1) emergency shelter and shelter operations; 2) street outreach; and 3) expanded staffing. The City received applications from its current ESG sub recipients and a new provider, Mental Health Systems, Inc. (MHS), totaling $3,250,734. MHS provides outreach and engagement of homeless persons with the acute forms of mental illness including co-occurring disorders, such as mental illness and addiction. MHS uses an Assertive Community Treatment (ACT) model that is referred to as “a hospital without walls”, which connotes the intensive nature of the treatment model. An ACT team consists of a psychiatrist, a registered nurse, a peer support specialist (someone who has been homeless and come through the program) a case manager, a dual recovery specialist and a housing specialist. Members of the team engage 4 Packet Pg. 102 6868 Page 5 homeless individuals where they are and utilizing the “housing first” model offer individuals immediate housing and treatment. The engagement of one individual may consist of several encounters before that individual is ready to participate. MHS will serve 25 acute mentally ill individuals in a pilot program targeting the downtown area (from the 215 to Arrowhead Avenue and 2 nd Street to 5th Street). The area was chosen in consultation with the Police Department Downtown patrol, Housing Division staff and the Step Up on Second homeless outreach lead. ESG-CV1 funding is being recommended for Step Up on Second to work in coordination with MHS in the target area providing outreach and housing services to chronically homeless individuals that do not suffer from acute mental illness. In an attempt to provide a more coordinated approach to a very complex situation, Step Up will have a dedicated community engagement staff person. That staff will engage the businesses in the target area in order to keep them informed of the work the City is undertaking coordinate their input and address their concerns and needs relative to the homeless in downtown. (Refer to Attachment 1 Tables 4 and 5.) Lastly, two of the City’s ESG sub recipients did not expend all of the funds they were granted during FY 2019-20. Under the ESG regulations, the City has two years to expend those funds or have them recaptured by HUD. Consequently, it is recommended that those funds be reprogrammed to the Salvation Army who can utilize them to rapidly rehouse persons who become homeless. (Refer to Attachment 1 Table 6.) Coronavirus Relief Funds. The CARES Act established the Coronavirus Relief Fund (the “Fund”) and appropriated $150 billion to the Fund. Under the CARES Act, the Fund is to be used to make payments for specified uses to State, Local, and Tribal governments. The State of California is allocating $500 million of these funds to cities to address the public health and safety impacts of COVID-19. The US Department of the Treasury (“Treasury”) has provide guidance to recipients of the funding available under section 601(a) of the Social Security Act, as added by section 5001 of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The CARES Act provides that payments from the Fund may only be used to cover costs that: 1. Are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19); 2. Were not accounted for in the budget most recently approved as of March 27, 2020 (the date of enactment of the CARES Act) for the State or government; and 3. Were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020. Since the certification, City staff from the City Manager’s Office, Finance Department, Police Department and the Housing Division has been evaluating the type of activities or activities that are eligible to reimburse or fund the City for activities rendered during 4 Packet Pg. 103 6868 Page 6 the Coronavirus pandemic. The first area considered was public safety expenditures since the Police Department personnel are considered first responders. The Treasury provided Coronavirus relief fund guidance for state and local governments advising th at payroll expenses for public safety employees whose services are “substantially dedicated to mitigating or responding to the COVID-19 public health emergency” are eligible for reimbursement during the identified period beginning March 1, 2020 and ending December 30, 2020. Moreover, because of the presumption that public safety is substantially dedicated to mitigating and responding to COVID-19, the payroll costs for public safety are allowable, even if they were budgeted. The second area considered was public health oriented services. Specifically, the Housing Division has been working with a new provider, Mental Health Systems, Inc. (MHS). MHS provides outreach and engagement of homeless persons with the acute forms of mental illness including co-occurring disorders, such as mental illness and addiction. This program was mentioned previously in the staff report and additional funding will provide much needed assistance to homeless individual with mental illness, providing treatment and shelter minimizing their exposure to the Coronavirus. Staff is therefore requesting that the City Council consider funding public safety expenditures and the public health program in the following amounts. Staff is therefore requesting that the City Council consid er funding public safety expenditures and the public health program in the following amounts. Public Safety Expenditures - $2,520,938 Public Health Program - $ 170,070 (Refer to Table 5) $2,691,008 The Coronavirus Relief Funds are eligible for a broader range of activities and/or programs than most other CARES Act funding sources and will help minimize the budget shortfall in our current fiscal year. The reimbursement will be returned to the general fund. It is important to note that State CARES Act funding cannot be used to offset government revenue shortfalls. 2020-2025 Key Strategic Targets and Goals The proposed Substantial Amendment to the Action Plan will continue to insure that public projects and programs that benefit the residents of Sa n Bernardino will meet Key Target No. 3: Improved Quality of Life by dedicating resources to assist those financially impacted by COVID-19, modifying public safety service delivery models and reduce the burden of homelessness through engagement, collaborat ion, and alignment with other entities. The Coronavirus Relief Funds aligns with Key Target No. 1: Financial Stability. Specifically, the Relief Funds will address the public safety services rendered during the COVID-19 pandemic. 4 Packet Pg. 104 6868 Page 7 Fiscal Impact The City is receiving a total of $9,065,494 in CARES Act funds. The City will receive a total of $6,446,486 from HUD which will support our community as outlined in the Project Proposals FY 2020-21 Substantial Amendment. The City will also receive $2,691,008 from the State of California which will be used to address the City’s ongoing public health and safety impacts of the COVID-19 pandemic, of which $170,070 will be appropriated to provide funding for the MHS project as noted in the Substantial Amendment. There is no cost associated with the acceptance of funds. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California hold a public hearing and: 1. Adopt a Substantial Amendment to the FY 2020/21 Action Plan: a. Directing the Finance Director to amend the Fiscal Year 2020/21 Budget pursuant to the Substantial Amendment to the Fiscal Year 2020/21 Action Plan; b. Directing the Finance Director to establish new funds and associated accounts for the Community Development Block Grant (CDBG-CV1), the Emergency Solutions Grant (ESG-CV1) and (ESG-CV2), pursuant to the Substantial Amendment to the Fiscal Year 2020-2021 Action Plan; c. Directing the Finance Director to establish an account in the Low Mod Housing Fund (Fund 127), in the amount of $1,049,000 for Seccombe Park Housing Project, and reduce the budget for the project under HOME fund 116 by the same; d. Authorizing the City Manager or designee to take any further actions and execute any further documents and certif ications as may be necessary to effectuate the submittal of the Substantial Amendment to the Fiscal Year 2020/21 Action Plan; and 2. Adopt Resolution No. 2020-211 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to utilize the State allocated Coronavirus Relief Funds for eligible activities as authorized by the US Department of the Treasury. Attachments Attachment 1 Resolution No. 2020-211 Attachment 2 Amendment to FY 2020-21 Annual Action Plan Attachment 3 Project Proposals FY 2020/21 Substantial Amendment Ward: Citywide Synopsis of Previous Council Actions: April 15, 2020 Mayor and City Council approved the City's Draft Fiscal Year 2020 - 2021 Action Plan. 4 Packet Pg. 105 6868 Page 8 The City Manager issued two executive orders in accordance with that authority: (1) Executive Order No. 2020-01, which enacted a temporary moratorium on evictions for non-payment of rent by residential and commercial tenants impacted by COVID -19; and (2) Executive Order No. 2020-02, which authorized the staying of the City’s compliance with any City-established deadlines through April 17, 2020 that were confirmed by the City Council. 4 Packet Pg. 106 Resolution No. 2020-211 RESOLUTION NO. 2020-211 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORING THE CITY MANAGER TO UTILIZE THE STATE ALLOCATED CORONAVIRUS RELIEF FUNDS FOR ELIGIBLE ACTIVITIES AS AUTHORIZED BY THE US DEPARTMENT OF THE TREASURY WHEREAS, on March 13, 2020, the City Manager, in accordance with Section 2.46.090.A.1 of the San Bernardino Municipal Code, issued Proclamation No. 2020-01 proclaiming the existence of a local emergency relating to the worldwide spread of respiratory illness due to the novel coronavirus known as COVID-19; and WHEREAS, on March 18, 2020, the City Council adopted Resolution No. 2020-51, ratifying Proclamation No. 2020-01 and declaring a local emergency; and WHEREAS, conditions of extreme peril to the safety of persons and property continue to exist within the City of San Bernardino caused by the worldwide spread of respiratory illness due to the novel coronavirus known as COVID-19; and WHEREAS, both the State of California and the County of San Bernardino have declared emergencies as a result of the spread of COVID-19; and WHEREAS, during the pendency of the emergency, the City Manager has the power to make and issue rules and regulations on matters reasonably related to the protection of life and property as affected by such emergency; and WHEREAS, thus far, the City Manager has issued two executive orders in accordance with that authority: (1) Executive Order No. 2020-01, which enacted a temporary moratorium on evictions for non-payment of rent by residential and commercial tenants impacted by COVID- 19; and (2) Executive Order No. 2020-02, which authorized the staying of the City’s compliance with any City-established deadlines through April 17, 2020; and WHEREAS, the executive orders were confirmed by the City Council and remain valid; and WHEREAS, the City Manager executed and certified a receipt of funds pursuant to paragraph (2) or (3) of subdivision (d) of Control Section 11.90 of the Budget Act of 2020; and WHEREAS, on August 19, 2020, the City Council authorized the use of the COVID -19 Relief Funds for specific activities and/or programs authorized under the Coronavirus Aid, Relief, and Economic Security Act. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 4.a Packet Pg. 107 Attachment: CED.Substantial Amendment Resolution. Attachment 2. 8.19.20docx (6868 : Substantial Amendment Action Plan - Coronavirus Resolution No. 2020-211 SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Council of the City of San Bernardino hereby authorizes the City Manager to utilize the State allocated Coronavirus Relief Funds for eligible activities as authorized by the US Department of the Treasury. SECTION 3. 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 4. 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 __________, 2020. John Valdivia, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC, Acting City Clerk Approved as to form: __________________________________ Sonia Carvalho, City Attorney 4.a Packet Pg. 108 Attachment: CED.Substantial Amendment Resolution. Attachment 2. 8.19.20docx (6868 : Substantial Amendment Action Plan - Coronavirus Resolution No. 2020-211 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. _____, adopted at a regular meeting held at the ___ day of _______, 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino t his ___ day of ____________ 2020. ______________________________ Genoveva Rocha, CMC, Acting City Clerk 4.a Packet Pg. 109 Attachment: CED.Substantial Amendment Resolution. Attachment 2. 8.19.20docx (6868 : Substantial Amendment Action Plan - Coronavirus Attachment 1 Project Proposals- FY 2020-21 Substantial Amendment TABLE 1 CDBG-CV FISCAL YEAR 2020-2021 DRAFT FUNDING 1 At an average of $1,000/household/month, for 3 months = 266 households assisted 2 A two year contract (FY 2020-21 and 2021-22) TABLE 2 FISCAL YEAR 2020-2021 HOME PROGRAM Project Activity Description 2020-21 Funds from Prior Year $ 1,300,000 Homekey Program (Motel Conversion) Permanent Housing $ 1,300,000 TOTAL: $ 1,300,000 TABLE 3 LOW MOD HOUSING FUND Project Activity Description 2020-21 Low Mod Housing Fund $ 1,049,182 Seccombe Park Housing Project Permanent Housing $ 1,049,182 TOTAL: $ 1,049,182 Project Activity Description Recommended Funding 2020-21 Grant Allocation $ 2,003,529 Administration @ 20% $ 400,706 Eviction Prevention Program1 Provide housing stability and assistance to renters affected by the pandemic $ 1,060,000 $ 1,060,000 Parks & Recreation2 Senior Nutrition Program (two fiscal years) $ 150,000 Parks & Recreation Modify public facilities to prevent the spread of COVID (outdoor shower towers) $ 0 Parks & Recreation Grab and Go arts & crafts to respond to COVID $ 32,000 Parks & Recreation Additional PPE cleaning supplies for program staff to prevent the spread of COVID $ 24,000 $ 206,000 Public Facilities (excluding buildings for general government purpose). Modifications to public facilities, including PPE supplies (excluding buildings used for general government purposes) to respond and prevent COVID $ 336,823 $ 336,823 TOTAL $ 2,003,529 4.b Packet Pg. 110 Attachment: CED.Subtantial Amendment.Attachment 1 (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Attachment 1 Project Proposals- FY 2020-21 Substantial Amendment TABLE 4 ESG-CV1 PROJECT PROPOSALS FISCAL YEAR 2020-2021 Project Activity Description 2020 Grant Allocation 2020-21 Grant Allocation $ 1,019,997 Administration @ 10% $ 102,000 Community Action Partnership (CAPS) Emergency Shelter $ 74,999 $ 74,999 Lutheran Social Services Emergency Shelter $ 348,500 HMIS $ 25,242 $ 373,742 Step Up On Second Street Outreach $ 300,780 Emergency Shelter $ 18,000 $ 318,780 Salvation Army – Hospitality House Emergency Shelter $ 75,238 Street Outreach $ 75,238 $ 150,476 TOTAL: $ 1,019,997 TABLE 5 ESG-CV2 PROJECT PROPOSALS FISCAL YEAR 2020-2021 Project Activity Description 2020 Grant Allocation 2020-21 Grant Allocation $ 3,422,960 Administration @ 10% $ 342,296 Lutheran Social Services Emergency Shelter – Rehab of current shelter $ 500,000 $ 500,000 Step Up On Second1 Rapid Re-Housing $ 980,000 $ 980,000 Salvation Army – Hospitality House Emergency Shelter $ 129,227 Street Outreach $ 21,249 $ 150,476 Mental Health Systems, Inc. Street Outreach and Client Treatment $ 417,920 Rapid Re-Housing $ 1,202,338 $ 1,620,258 TOTAL: $ 3,593,030 Balance:2 $ (170,070) 1 A two year contract for fiscal years 2020-21 and 2021-22 2 Balance to be funded by State CARES Act funds. TABLE 6 FISCAL YEAR 2019-2020 ESG PRIOR YEAR FUNDS TO REPROGRAM Project Activity Description HOME F Funds from Prior Year1 $ 72,444 Salvation Army Rapid Rehousing $ 72,444 TOTAL: $ 0 1 Prior year funds are unspent funds returned to the City by ESG subrecipients. 4.b Packet Pg. 111 Attachment: CED.Subtantial Amendment.Attachment 1 (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 1 OMB Control No: 2506-0117 (exp. 06/30/2018) City of San Bernardino Substantial Amendment to FY 2020-21 Annual Action Plan 4.c Packet Pg. 112 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Annual Action Plan 2020 2 OMB Control No: 2506-0117 (exp. 06/30/2018) AP-15 Expected Resources – 91.220(c)(1,2) Introduction The City of San Bernardino estimates it will receive roughly $25 Million over the next five years from CDBG, HOME and ESG funds. In PY20 the City will receive:  CDBG $3,405,816  HOME $1,404,784  ESG $ 295,799 Anticipated Resources Program Source of Funds Uses of Funds Expected Amount Available Year 1 Expected Amount Available Remainder of ConPlan $ Narrative Description Annual Allocation: $ Program Income: $ Prior Year Resources: $ Total: $ CDBG public - federal Acquisition Admin and Planning Economic Development Housing Public Improvements Public Services 3,405,816 17,000 800,368 4,223,184 13,200,000 The estimated amount of CDBG funds available over the planning period is based on allocations for FY 2019-2020. 4.c Packet Pg. 113 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Annual Action Plan 2020 3 OMB Control No: 2506-0117 (exp. 06/30/2018) Program Source of Funds Uses of Funds Expected Amount Available Year 1 Expected Amount Available Remainder of ConPlan $ Narrative Description Annual Allocation: $ Program Income: $ Prior Year Resources: $ Total: $ HOME public - federal Acquisition Homebuyer assistance Homeowner rehab Multifamily rental new construction Multifamily rental rehab New construction for ownership TBRA 1,404,784 726,658 3,660,823 5,792,265 10,750,000 The estimated amount of HOME funds available over the planning period is based on allocations for FY 2019-2020. ESG public - federal Conversion and rehab for transitional housing Financial Assistance Overnight shelter Rapid re-housing (rental assistance) Rental Assistance Services Transitional housing 4,738,756 0 72,444 4,811,200 1,500,000 The estimated amount of ESG funds available over the planning period is based on allocations for FY 2019-2020. Other public - federal Overnight shelter Other 1,019,997 0 0 1,019,997 0 ESG-CV1 funds to be used to prevent, prepare for and respond to the Coronavirus. 4.c Packet Pg. 114 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Annual Action Plan 2020 4 OMB Control No: 2506-0117 (exp. 06/30/2018) Program Source of Funds Uses of Funds Expected Amount Available Year 1 Expected Amount Available Remainder of ConPlan $ Narrative Description Annual Allocation: $ Program Income: $ Prior Year Resources: $ Total: $ Other public - federal Overnight shelter Rapid re-housing (rental assistance) Services Other 3,422,960 0 0 3,422,960 0 ESG-CV2 funds to be used to prevent, prepare for and respond to the Coronavirus. Other public - federal Public Improvements Rental Assistance Services Other 2,003,529 0 0 2,003,529 0 CDBG-CV funds to be used to prevent, prepare for and respond to the Coronavirus. Table 1 - Expected Resources – Priority Table Explain how federal funds will leverage those additional resources (private, state and local funds), including a descripti on of how matching requirements will be satisfied The City will leverage its federal resources with state and private capital in order to develop quality affordable housing for San Bernardino residents. Additional funds to serve the needs of lower- and moderate-income residents were derived from a variety of other sources, including: Federal Resources. Section 8 Housing Choice Voucher Program, Federal Low-Income Housing Tax Credit Program, Tax Exempt Bond Financing, Community Investment Funds from Dignity Health State Resources. Tax Exempt bonds, State Low-Income Housing Tax Credit Program, No Place Like Home, Community Reinvestments Funds, Permanent Local Housing Allocation (PLHA) from California State Department of Housing, Veteran Housing and Homeless Prevention Program. In 2017, the governor signed the Building Homes and Jobs Act (SB 2), which established a $75 recording fee on real estate documents to increase the supply of affordable housing in California. Funding is used to help cities and counties accelerate housing production, streamline approval of housing development, facilitate housing affordability, promote development, and ensure geographic equity in the distribution of funds. The City 4.c Packet Pg. 115 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Annual Action Plan 2020 5 OMB Control No: 2506-0117 (exp. 06/30/2018) submitted a grant application under SB 2 to the California Department of Housing and Community Development for the sum of $625,000. Local Resources. San Bernardino County Continuum of Care, Housing Authority of San Bernardino County (HACSB) Private Resources. Dignity Health, San Manuel Band of Mission Indians, San Bernardino Unified School District, City of San Bernardino Successor Housing Agency HOME Match. HUD requires HOME recipients to match 25 percent of their HOME annual allocation. In FY 2019-2020, the City received a 100 percent match reduction due to severe fiscal distress. It is anticipated that in 2020-2021 the City will also receive a 100 percent match reduction. If a reduction is not granted, the City of San Bernardino will continue to leverage its HOME funds with other housing resources. Any funds that are used in a HOME activity in excess of the required match will be documented by the City and reported to HUD as part of the Consolidated Annual Performance and Evaluation Report each year. ESG Match. HUD requires ESG recipients to match 100 percent of their ESG annual allocation. For those organizations that received ESG funds, agencies met the match requirement through utilization of volunteerism, in-kind contributions and funds from other local, state and federal programs. In addition, qualified City staff will provide in-kind services for necessary program oversight, review project work receipts, and administer other matching funds from state and federal programs, such as CDBG. Staff timecards will be used to document all in-kind service hours. However, under the ESG-CV1 and 2, the match requirement has been waived. 4.c Packet Pg. 116 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Annual Action Plan 2020 6 OMB Control No: 2506-0117 (exp. 06/30/2018) If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the needs identified in the plan According to the City’s 2013-2021 Housing Element update, the City of San Bernardino has enough vacant land and land designated for residential use to satisfy all projected housing needs. Additionally, the City has not identified any constraints on these sites that would prevent development or reuse. The City estimates that 12,918 housing units could be accommodated on this land. Additionally, the governor of California continues to explore the use of state and federal surplus property to provide housing for homeless individuals Discussion The City has enough available land and residential designations to meet the affordable housing needs of the community. HUD allocations are critical to meeting these needs; however, they are not sufficient to address all the needs of LMI households. Therefore, the City will continue to continue to leverage other funding sources to provide services to populations in need. 4.c Packet Pg. 117 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 7 OMB Control No: 2506-0117 (exp. 06/30/2018) Annual Goals and Objectives AP-20 Annual Goals and Objectives Goals Summary Information Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 1 Expand Home Ownership 2020 2025 Affordable Housing CityWide Expand Home Ownership HOME: $700,000 Homeowner Housing Added: 4 Household Housing Unit 2 Provide Homeless and Homeless Prevention Services 2020 2025 Homeless CityWide Provide Homeless and Homeless Prevention Services ESG: $368,243 ESG-CV1: $1,019,997 ESG-CV2: $3,422,960 Tenant-based rental assistance / Rapid Rehousing: 75 Households Assisted Homeless Person Overnight Shelter: 200 Persons Assisted Overnight/Emergency Shelter/Transitional Housing Beds added: 220 Beds 3 New Affordable Rental Housing 2020 2025 Affordable Housing CityWide New Affordable Rental Housing HOME: $1,789,282 Rental units constructed: 75 Household Housing Unit 4 Preserve and Rehabilitate Housing 2020 2025 Affordable Housing CityWide Preserve and Rehabilitate Housing HOME: $500,000 Rental units rehabilitated: 239 Household Housing Unit 5 Promote Economic Development 2020 2025 Economic Development CityWide Promote Economic Development CDBG: $798,021 Public service activities other than Low/Moderate Income Housing Benefit: 10 Persons Assisted 4.c Packet Pg. 118 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Annual Action Plan 2020 8 OMB Control No: 2506-0117 (exp. 06/30/2018) Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 6 Improve Facilities and Infrastructure 2020 2025 Non-Housing Community Development CityWide LMI Areas of the City Improve Facilities and Infrastructure CDBG: $2,671,000 Public Facility or Infrastructure Activities other than Low/Moderate Income Housing Benefit: 32000 Persons Assisted 7 Fair Housing 2020 2025 Non-Housing Community Development CityWide Fair Housing CDBG: $73,000 Public service activities other than Low/Moderate Income Housing Benefit: 1000 Persons Assisted Public service activities for Low/Moderate Income Housing Benefit: 0 Households Assisted 8 Planning and Administration 2020 2025 Program administration funds CityWide Preserve and Rehabilitate Housing Expand Home Ownership Provide Homeless and Homeless Prevention Services New Affordable Rental Housing Promote Economic Development Improve Facilities and Infrastructure Fair Housing CDBG: $681,163 HOME: $351,196 ESG: $27,168 Other: 1 Other Table 2 – Goals Summary 4.c Packet Pg. 119 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Annual Action Plan 2020 9 OMB Control No: 2506-0117 (exp. 06/30/2018) Goal Descriptions 1 Goal Name Expand Home Ownership Goal Description $700,000 in HOME funds for 4 new infill owner-occupied units city-wide. 2 Goal Name Provide Homeless and Homeless Prevention Services Goal Description Tenant-based rental assistance/Rapid Rehousing: 75 households Assisted; Homeless Persons Overnight Shelter: 200 Persons Assisted; Oernight/Emergency Shelter/Transitional Housing Beds added: 220 beds 3 Goal Name New Affordable Rental Housing Goal Description It is estimated that 75 new affordable rental units will be constructed in Seccombe Park. 4 Goal Name Preserve and Rehabilitate Housing Goal Description Rehabilitate 239 affordable rental units in 2601-2675 W 2nd Street. 5 Goal Name Promote Economic Development Goal Description Funding will be provided tha twill assist a minimum of 10 small businesses. Funding will also be used for Section 108 Loan repayment for a revitalization project on HIghland Avenue. The project is slated to create and retain 214 jobs. 6 Goal Name Improve Facilities and Infrastructure Goal Description Funding will be used to improve five community facilities including three parks, a community center and a senior center. 4.c Packet Pg. 120 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Annual Action Plan 2020 10 OMB Control No: 2506-0117 (exp. 06/30/2018) 7 Goal Name Fair Housing Goal Description Funds will be provided for IFHMB to provide investigation, education, reconciliation, and/or referral of housing discrimination complaints free of charge in the City of San Bernardino. IFHMB offers workshops to educate housing providers, tenants, homeowners, and financial and lending institutions on fair housing laws. 8 Goal Name Planning and Administration Goal Description Funds are allocated for City staff for planning and administration of HOME, CDBG, ESG funds for the various projects and grantee monitoring requirements. 4.c Packet Pg. 121 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Annual Action Plan 2020 11 OMB Control No: 2506-0117 (exp. 06/30/2018) Projects AP-35 Projects – 91.220(d) Introduction With its CDBG, HOME, and ESG funds, the City of San Bernardino will fund eligible projects in the following categories: preserve and rehabilitate housing; improve neighborhood conditions; expand homeownership opportunities; provide supportive services; new affordable housing construction or rehabilitation; new affordable housing construction; promote economic development; improve facilities and infrastructure; fair housing, and program planning and administration. Projects # Project Name 1 Infill Housing Program 2 First Time Home Ownership 3 Homeless Outreach and Homeless Prevention 4 New Rental Housing Construction 5 Affordable Rental Housing Rehabilitation 6 Micro-Enterprise Program 7 Section 108 Repayment Program - Promote Economic Development 8 Improve Public Facilities and Infrastructure 9 Fair Housing 10 Planning & Administration 11 Homekey Motel Conversion 12 CV- Eviction Prevention Program 13 CV- Senior Nutrition Program 14 CV- Grab and Go arts and crafts 15 CV- Personal Protective Equipment (PPE) 16 CV- Modifications to Public Facilities 17 CV- Planning and Administration Table 3 - Project Information 4.c Packet Pg. 122 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 12 OMB Control No: 2506-0117 (exp. 06/30/2018) Describe the reasons for allocation priorities and any obstacles to addressing underserved needs The allocation priorities are a result of input received from the community and based on the identified needs such as the state of the City's infrastructure, housing stock and poverty. The primary obstacle in addressing underserved needs is insufficient resources to meet the ongoing needs of persons, especially those with special needs such as the homeless. 4.c Packet Pg. 123 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 13 OMB Control No: 2506-0117 (exp. 06/30/2018) AP-38 Project Summary Project Summary Information 4.c Packet Pg. 124 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Annual Action Plan 2020 14 OMB Control No: 2506-0117 (exp. 06/30/2018) 1 Project Name Infill Housing Program Target Area CityWide Goals Supported Expand Home Ownership Needs Addressed Expand Home Ownership Funding HOME: $700,000 Description Construction of single family ownership housing on vacant City-owned lots. Target Date 6/30/2021 Estimate the number and type of families that will benefit from the proposed activities Four(4) families will benefit from this project. Location Description Citywide Planned Activities Homeownership Housing units added. 2 Project Name First Time Home Ownership Target Area Goals Supported Needs Addressed Funding : Description The amount has been reduced to zero pursuant to the suspension and waiver provided under the Flexibilities/Waiver Granted by the CARES Act. The City of San Bernardino has requested and received approval from HUD to reduce to zero percent the CHDO set-aside requirement for fiscal years 2017, 2018, 2019, and 2020 allocations. Target Date Estimate the number and type of families that will benefit from the proposed activities Location Description Planned Activities 4.c Packet Pg. 125 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 15 OMB Control No: 2506-0117 (exp. 06/30/2018) 3 Project Name Homeless Outreach and Homeless Prevention Target Area CityWide Goals Supported Provide Homeless and Homeless Prevention Services Needs Addressed Provide Homeless and Homeless Prevention Services Funding ESG: $4,758,718 Description Assist homeless and special needs populations with supportive services. Funding for various Emergency Solutions Grant Program Projects to include Emergency Shelter, Rapid Rehousing, Homelessness Prevention, Street Outreach and HMIS costs. the ESG-CV funds will be targeted to persons at highest risk for COVID-19 which includes persons with mental illness and co-occurring health conditions. Target Date 6/30/2021 Estimate the number and type of families that will benefit from the proposed activities Approximately 700 persons at very low income to zero income will benefit from the proposed activities. Location Description The following locations will benefit from ESG funding. 1. Community Action Partnership - 696 S. Tippecanoe Avenue, San Bernardino, CA 92408 2. Family Service Association of Redlands - 612 Lawton St, Redlands, CA 92374 3. Lutheran Social Services - 813 N D St, San Bernardino, CA 92401 4. Step Up on Second - 201 North E Street, San Bernardino, CA 92401 5. Salvation Army - 925 W. 10th Street, San Bernardino, 92411 6. Mental Health Systems (MHS) - 1738 N. Waterman Avenue, San Bernardino, 92404 4.c Packet Pg. 126 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 16 OMB Control No: 2506-0117 (exp. 06/30/2018) Planned Activities $The ESG Program will fund four agencies and programs plus grant and project management. 1. Community Action Partnership. Provide homeless persons and those at risk of homelessness with temporary rental assistance, financial literacy education and linkages to other support services. Award $54,446 in ESG; and $74,999 in ESG-CV. 2. Family Service Association of Redlands. Provide emergency shelter, motel vouchers, wraparound services and case management to prevent homelessness. Award $63,000. 3. Lutheran Social Services. Provide emergency shelter as a bridge to permanent housing, wraparound services to help homeless men 18 years and older to achieve self-sufficiency. Award $70,000 in ESG; $373,742 in ESG-CV1; $500,000 in ESG-CV2 4. Step Up On Second. Provide supportive services which begin with engagement and street outreach activities. Award $86,168 in ESG; $318,780 in ESG-CV1; $980,000 in ESG-CV2 5. Salvation Army. Provide rapid rehousing. Award from prior year resources: $72,444; Provide emergency shelter and street outrecah. Award $150,476 in ESG-CV1; Provide emergency shelter and street outreach. Award $150,476 ESG-CV2. 4 Project Name New Rental Housing Construction Target Area CityWide Goals Supported New Affordable Rental Housing Needs Addressed New Affordable Rental Housing Funding HOME: $740,100 Description New affordable rental units constructed at Seccombe Park Target Date 6/30/2021 Estimate the number and type of families that will benefit from the proposed activities 75 families will benefit from this proposed project. Location Description Seccombe Park 160 E. 5th Street San Bernardino, CA Census Tract: 58.00 4.c Packet Pg. 127 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 17 OMB Control No: 2506-0117 (exp. 06/30/2018) Planned Activities Construction of new affordable rental housing units 5 Project Name Affordable Rental Housing Rehabilitation Target Area CityWide Goals Supported Preserve and Rehabilitate Housing Needs Addressed Preserve and Rehabilitate Housing Funding HOME: $500,000 Description Rehabilitation of 239 existing rental housing units. Target Date 6/30/2021 Estimate the number and type of families that will benefit from the proposed activities 239 families will benefit from this proposed project. Location Description Property address is 2601-2675 W. 2nd Street San Bernardino, CA Planned Activities Rehabilitation of existing rental housing units. 6 Project Name Micro-Enterprise Program Target Area CityWide Goals Supported Promote Economic Development Needs Addressed Promote Economic Development Funding CDBG: $35,000 Description Provide business development training and support to income qualified existing or potential business owners. City staff monitors how many business have been created through Emprenadoras Program. Training class administration includes participant sign-in and intake forms. Target Date 6/30/2021 Estimate the number and type of families that will benefit from the proposed activities Approximately ten existing or potential business owners will be trained. Location Description Citywide - Available to all existing or potential business owners. Workshops are held at City Hall located at 201 North E Street, San Bernardino, CA and at the Mexican Consulate located at 293 North D Street, San Bernardino, CA. 4.c Packet Pg. 128 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 18 OMB Control No: 2506-0117 (exp. 06/30/2018) Planned Activities The Micro-Enterprise program promotes economic development in the City. The program provides business development training and support to income qualified participants who wish to start their own business. The Program will use CDBG funds to provide education and training for existing or potential business owners, to launch and retain a successful businesses and improve business viability. City staff monitors how many business have been created through Emprenadoras Program. Training class administration includes participant sign-in and intake forms. 7 Project Name Section 108 Repayment Program - Promote Economic Development Target Area CityWide Goals Supported Promote Economic Development Needs Addressed Promote Economic Development Funding CDBG: $763,021 Description Section 108 loan repayment for Arden Guthrie Property (B-03-MC-06- 0539, Loan number 119-090-0053-5801) obtained to forward economic revitalization and create jobs (214 jobs) in the City. Target Date 6/30/2021 Estimate the number and type of families that will benefit from the proposed activities 214 individuals will benefit from this proposed activity. Location Description 17.43 acre commercial property located along Highland Avenue between Arden Street and Guthrie Street in the City of San Bernardino. Planned Activities A Section 108 loan, FY 2006, was obtained for the acquisition of 22 blighted and socially problematic apartment buildings in the North Arden Guthrie Area of the City. The City is moving forward with the sale of the property to a developer who will build a multi-tenant commercial shopping center. 8 Project Name Improve Public Facilities and Infrastructure Target Area CityWide Goals Supported Improve Facilities and Infrastructure Needs Addressed Improve Facilities and Infrastructure Funding CDBG: $2,671,000 4.c Packet Pg. 129 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 19 OMB Control No: 2506-0117 (exp. 06/30/2018) Description Three (3) parks will be funded for replacement of playground equipment in addition to an existing baseball field to be converted into a Miracle League park to be ADA compliant. A concrete/ADA project will also be funded to replace sidewalks and ADA accessibility. Encanto Community Center Phase I roof replacement/facility repairs. Target Date 6/30/2021 Estimate the number and type of families that will benefit from the proposed activities 32,000 persons within households earning an income level of 30% to 50% of AMI will benefit of the improvements made to these parks and facility. Location Description The City has proposed to fund the following three (3) parks, a community center and public facilities at a senior center: 1. Meadowbrook Fields Park - 179 E Rialto Ave., San Bernardino, CA 2. Anne Shirrel Park – 1367 North California, San Bernardino, CA 3. Nicholson Park - 2737 W. 2nd Street, San Bernardino, CA (Playground equipment replacement and existing baseball field conversion) 4. Encanto Community Center – Phase 1 – 1180 W. 9th Street, San Bernardino, CA Roof replacement/facility repairs. 5. Citywide Concrete Repairs – to replace sidewalks and ADA accessibility for Fifth Street Senior Center, Perris Hill Senior Center, Ruben Campos, Lytle Creek, Rudy Hernandez, Nicholson and Delmann Heights Community Centers. Planned Activities The City plans to improve three (3) parks, a community center and public facilities at a senior center. Specifically the replacement of playground equipment to provide safe equipment for the community in addition to a Miracle League Park for ADA compliant and citywide concrete repairs. 9 Project Name Fair Housing Target Area CityWide Goals Supported Fair Housing Needs Addressed Fair Housing Funding CDBG: $73,000 4.c Packet Pg. 130 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 20 OMB Control No: 2506-0117 (exp. 06/30/2018) Description Inland Fair Housing Mediation Board will provide activities that will assist the City in furthering fair housing. Target Date 6/30/2021 Estimate the number and type of families that will benefit from the proposed activities This program will benefit Low/Moderate Income Households/Tenants. Location Description Fair housing events and discrimination assistance will benefit aproximately 1,000 LMI households and tenants. Planned Activities IFHMB will provide investigation, education, reconciliation, and/or referral of housing discrimination complaints free of charge in the City of San Bernardino. IFHMB offers workshops to educate housing providers, tenants, homeowners, and financial and lending institutions on fair housing laws. 10 Project Name Planning & Administration Target Area CityWide Goals Supported Planning and Administration Needs Addressed Planning and Administration Funding CDBG: $681,163 HOME: $351,196 Description The City will implement the goals and objectives of the Action Plan by delivering a variety of housing and community development programs and activities. The City will also continue to comply with the planning and reporting requirements of the Action Plan regulations and CDBG, HOME and ESG regulations.Assist homeless and special needs populations with supportive services. Funding for various Emergency Solutions Grant Program Projects to include Emergency Shelter, Rapid Rehousing, Homelessness Prevention, Street Outreach and HMIS costs. Annually, the City will monitor its use of CDBG, HOME and ESG funds to ensure effective and appropriate use of funds. CDBG Administration: $681,163; HOME Administration: $140,478; ESG Administration: $22,185 Target Date 6/30/2021 4.c Packet Pg. 131 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 21 OMB Control No: 2506-0117 (exp. 06/30/2018) Estimate the number and type of families that will benefit from the proposed activities The entire city benefits from planning and administration efforts lead by the City. Location Description 201 North E Street, San Bernardino, CA 92401 Planned Activities Grant and Project Management 11 Project Name Homekey Motel Conversion Target Area CityWide Goals Supported Preserve and Rehabilitate Housing Needs Addressed Preserve and Rehabilitate Housing Funding HOME: $1,300,000 Description Provide HOME funding for the acquisition and/or rehabilitation of a motel or other buildings and convert them into permanent, supportive housing. Target Date 6/30/2021 Estimate the number and type of families that will benefit from the proposed activities It is esimated that 50 families will benefit from the proposed activity. Location Description Two possible locations have been identified; currentlyl negotiating with the owners. Planned Activities To acquire, modify and rehabilitate a motel or other buildings that will serve as permanent supportive housing for persons at risk of homelessness or homeless persons. 12 Project Name CV- Eviction Prevention Program Target Area CityWide Goals Supported Needs Addressed Funding CDBG-CV: $1,060,000 4.c Packet Pg. 132 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 22 OMB Control No: 2506-0117 (exp. 06/30/2018) Description The program's intent is to prevent evictions by providing payment of rent arrears to landlords of low-income tenants, in the City of San Bernardino, who have experienced financial hardship due to COVID-19. The program would be managed by Housing Authority of the County of San Bernardino, who has extensive experience in managing rental assistance programs countywide. Target Date 6/30/2021 Estimate the number and type of families that will benefit from the proposed activities Approximately 300 families will benefit from the proposed ativity. Location Description City of San Bernardino Planned Activities Prevent evictions by providing payment of rent arrears to landlords of low-income tenants, in the City of San Bernardino, who have experienced financial hardship due to COVID-19. 13 Project Name CV- Senior Nutrition Program Target Area CityWide Goals Supported Needs Addressed Funding CDBG-CV: $150,000 Description In order to continue providing nutritious meal to very low and low income seniors, meals will be made readily available city-wide for pick up by seniors or their families in order to protect seniors from exposure to COVID 19. The meals can be picked up at six different locations. Target Date 6/30/2022 Estimate the number and type of families that will benefit from the proposed activities Approximately 350 senior citizens will benefit from the Senior Nutrition Program. 4.c Packet Pg. 133 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 23 OMB Control No: 2506-0117 (exp. 06/30/2018) Location Description The lunches will be distributed at the following Community Centers: Perris Hill Senior Center 780 East 21st Street Fifth Street Senior Center 600 West Fifth Street Hernandez Community Center 222 North Lugo Lytle Creek Community Center 380 South "K" Street Highland Senior Center 3102 East Highland Ave. New Hope Family Life Center 1505 West Highland Ave. Planned Activities Parks and Recreation will prepare hot, box meals for pick up. In order to protect seniors, who are especially vulnerable, from exposure to COVID- 19 the nutrition program had to be changed to prevent and respond to COVID. By making the meals available for pick up city-wide the program is responding to and preventing the spread of COVID while providing nutritious meals to very low and low income seniors. 14 Project Name CV- Grab and Go arts and crafts Target Area CityWide Goals Supported Needs Addressed Funding CDBG-CV: $32,000 Description Parents or guardians are able to pick up craft kits for their children and make the crafts at home. Arts and crafts kits are distributed weekly at all community centers. The staff provides interactive instruction and participants share their work through social media. The manner in which the activity is conducted has been dictated by necessary precautions due to COVID-19. The activities are more expensive since supplies must be purchased new and can no longer be reused as in the past when children attended in-person classes. Target Date 4.c Packet Pg. 134 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 24 OMB Control No: 2506-0117 (exp. 06/30/2018) Estimate the number and type of families that will benefit from the proposed activities Approximately 400 children will benefit from the program. 4.c Packet Pg. 135 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 25 OMB Control No: 2506-0117 (exp. 06/30/2018) Location Description Center for Individual Development 8088 Palm Lane San Bernardino, CA 92410 Delmann Heights Community Center 2969 N. Flores San Bernardino, CA 92405 Rudy C. Hernandez Center 222 N. Lugo Avenue San Bernardino, CA 92408 Ruben Campos Community Center 1717 W. Fifth Street San Bernardino, CA 92410 Lytle Creek Community Center 980 South K Street San Bernardino, CA 92410 Verdemont Community Center 3664 W. Little League Drive San Bernardino, CA 92407 All Citywide Community Centers. 4.c Packet Pg. 136 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 26 OMB Control No: 2506-0117 (exp. 06/30/2018) Planned Activities Through the City's Parks, Recreation and Community Services Department, the Grab and Go arts an crafts kits will be distributed to children. Parents or guardians are able to pick up craft kits for their children and make the crafts at home. Arts and crafts kits are distributed weekly at all community centers. The staff provides interactive instruction and participants share their work through social media. The manner in which the activity is conducted has been dictated by necessary precautions due to COVID-19. The activities are more expensive since supplies must be purchased new and can no longer be reused as in the past when children attended in-person classes. 15 Project Name CV- Personal Protective Equipment (PPE) Target Area CityWide Goals Supported Needs Addressed Funding CDBG-CV: $24,000 Description Upon reopening of senior centers, community centers, and libraries, staff will need to make available PPE and cleaning/sanitizing supplies to comply with the increased requirements in mandated reopening guidelines. Target Date 6/30/2021 Estimate the number and type of families that will benefit from the proposed activities It is estimated that 36,000 families will benefit from the proposed activities. 4.c Packet Pg. 137 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 27 OMB Control No: 2506-0117 (exp. 06/30/2018) Location Description Center for Individual Development 8088 Palm Lane San Bernardino, CA 92410 Delmann Heights Community Center 2969 N. Flores San Bernardino, CA 92405 Rudy C. Hernandez Center 222 N. Lugo Avenue San Bernardino, CA 92408 Ruben Campos Community Center 1717 W. Fifth Street San Bernardino, CA 92410 Lytle Creek Community Center 980 South K Street San Bernardino, CA 92410 Verdemont Community Center 3664 W. Little League Drive San Bernardino, CA 92407 Perris Hill Senior Center 780 E. 21st Street San Bernardino, CA 92404 Fifth Street Senior Center 600 West Fifth Street San Bernardino, CA 92410 Norman F. Feldheym Central Library 555 West 6th Street San Bernardino, CA 92410 4.c Packet Pg. 138 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 28 OMB Control No: 2506-0117 (exp. 06/30/2018) Planned Activities During the COVID-19 , the City's Parks, Recreation and Community Services Department and the Library are revamping the areas to be able to prepare, prevent and respond to the pandemic. Therefore, upon reopening of senior centers, community centers, and libraries, staff will need to make available PPE and cleaning/sanitizing supplies to comply with the increased requirements in mandated reopening guidelines. 16 Project Name CV- Modifications to Public Facilities Target Area CityWide Goals Supported Improve Facilities and Infrastructure Needs Addressed Improve Facilities and Infrastructure Funding CDBG-CV: $336,823 Description Prior to opening of public facilities, such as senior centers, community centers, and libraries, staff will need to modify the buildings to prepare for, prevent, and respond to COVID-19. Supplies and materials needed, such as tempered glass or Plexiglas, and PPE stations to meet the safety guidelines will be provided. Target Date 6/30/2021 Estimate the number and type of families that will benefit from the proposed activities It is estimated that 36,000 families will benefit from the proposed activities. 4.c Packet Pg. 139 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 29 OMB Control No: 2506-0117 (exp. 06/30/2018) Location Description The activities will be undertaken in all public facilities, such as senior centers, community centers, and libraries, citywide. Buildings for the exclusive purpose of carryng out government functions are excluded: Center for Individual Development 8088 Palm Lane San Bernardino, CA 92410 Delmann Heights Community Center 2969 N. Flores San Bernardino, CA 92405 Rudy C. Hernandez Community Center 222 N. Lugo Avenue San Bernardino, CA 92408 Ruben Campos Community Center 1717 W. Fifth Street San Bernardino, CA 92410 Lytle Creek Community Center 980 South K Street San Bernardino, CA 92410 Verdemont Community Center 3664 W. Little League Drive San Bernardino, CA 92407 Periis Hill Senior Cennter 780 E. 21st Street San Bernardino, CA 92404 Norman F. Fedlheym Central Library 555 West 6th Street San Bernardino, CA 92410 Dorothy Inghram Branch Library 4.c Packet Pg. 140 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 30 OMB Control No: 2506-0117 (exp. 06/30/2018) Planned Activities Prior to opening of public facilities, such as senior centers, community centers, and libraries, staff will need to modify the buildings by installing tempered glass or Plexiglas, and PPE stations to prepare for, prevent, and respond to COVID-19 to meet the safety guidelines. 17 Project Name CV- Planning and Administration Target Area CityWide Goals Supported Planning and Administration Needs Addressed Planning and Administration Funding CDBG-CV: $400,706 Description Planning and administering the programs Target Date 6/30/2021 Estimate the number and type of families that will benefit from the proposed activities Location Description Planned Activities Plan and administer the program 4.c Packet Pg. 141 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 31 OMB Control No: 2506-0117 (exp. 06/30/2018) AP-50 Geographic Distribution – 91.220(f) Description of the geographic areas of the entitlement (including areas of low -income and minority concentration) where assistance will be directed The City will use its funding for PY 2020-2021 to finance a variety of housing, community development, economic development, and capital improvement projects. The majority of the funding will be used to finance projects targeting low- to moderate-income individuals and families throughout the City. CDBG Benefit Service Areas are defined as geographic locations within the City of San Bernardino where 51 percent or more of the households in those areas are low- to moderate-income. The 2010 U.S. Census identified approximately 68.9 percent of the City consisted of households with low or moderate incomes. A map of the Low / Moderate Income Target Areas is attached to this document. The City of San Bernardino has become increasingly diverse in its racial and ethnic makeup. Over the past decades the City has seen a shift from a non-Hispanic, White majority to a Hispanic Origin majority. According to the U.S. 2010 Census, approximately 60 percent of the population is of Hispanic Origin, 19 percent is Non-Hispanic, White, 14.2 percent is Black, 3.8 percent is Asian and 2.9 percent is comprised of some “Other” race or ethnicity. Geographic Distribution Target Area Percentage of Funds CityWide 70 LMI Areas of the City 30 Table 4 - Geographic Distribution Rationale for the priorities for allocating investments geographically The funding available under the 2020-2021 Action Plan may be used to meet a variety of community development and housing needs. As part of the development of the 2020-2021 Action Plan, the City established priority needs based on an in depth analysis of the several factors housing, homelessness, poverty, special needs, lead hazards, institutional structure, etc. The City will utilize its federal funding to pursue goals and objectives listed in the section “AP-20 Annual Goals and Objectives” of this document. The City’s primary intent is to spend its CDBG funds in predominantly low income neighborhoods where residents have the greatest need for housing/services. The City will focus on low to moderate income neighborhoods where there is a greatest need in the parks, such as having the playground equipment replaced, because those are the areas of greatest need. Discussion The City of San Bernardino has not designated any Neighborhood Revitalization Strategy Areas (NRSA) 4.c Packet Pg. 142 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 32 OMB Control No: 2506-0117 (exp. 06/30/2018) within in the City. 4.c Packet Pg. 143 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 33 OMB Control No: 2506-0117 (exp. 06/30/2018) Affordable Housing AP-55 Affordable Housing – 91.220(g) Introduction In accordance with the Housing Needs Assessment of the Consolidated Plan, housing problems within the City of San Bernardino include: 1) Units with physical defects; 2) overcrowded conditions; and 3) housing cost burden. The City will use CDBG and HOME funds to pursue three affordable housing goals: 1) Preserve and Rehabilitation Housing, 2) Expand Home Ownership Opportunities and 3) Provide Assistance to Renter Households. One Year Goals for the Number of Households to be Supported Homeless 50 Non-Homeless 318 Special-Needs 75 Total 443 Table 5 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported Through Rental Assistance 75 The Production of New Units 79 Rehab of Existing Units 239 Acquisition of Existing Units 50 Total 443 Table 6 - One Year Goals for Affordable Housing by Support Type Discussion The table “One Year Goals for the Number of Households to be Supported” consists of 50 homeless individual to be supported with housing, 368 units to be built, rehabilitated and acquired. The following projects detail households that will benefit as well as the number of units in the City to be constructed or rehabed.  Construciton of four (4) ownership housing units added through the Infill Program. Incomes will range from 50% to 80% of Area Median Income (AMI);  75 affordable rental units to be built at Seccombe Park;  Affordable rental housing rehabilitation of 239 existing units at Foothill Villas Apartments;  Rental assistance to 75 households at risk of homelessness or homeless;  Acquisiton of 50 units as Permanent Support Housing for homeless persons or persons at risk of 4.c Packet Pg. 144 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 34 OMB Control No: 2506-0117 (exp. 06/30/2018) homelessness. 4.c Packet Pg. 145 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 35 OMB Control No: 2506-0117 (exp. 06/30/2018) AP-60 Public Housing – 91.220(h) Introduction Public housing and other assisted housing programs are crucial elements of the City’s efforts to address affordable housing needs of low- and moderate-income families, senior citizens, disabled individuals, and other individuals. The City falls within the jurisdiction of the Housing Authority of the County of San Bernardino (HACSB). This agency administers the Housing Choice Voucher Program, which provides rental assistance to eligible residents of San Bernardino by providing monthly rental assistance to participants who want to rent from a private landlord, but cannot afford the full monthly rental payment. The Housing Choice Voucher program is funded by the U.S. Department of Housing and Urban Development (HUD). In 2019, the latest year for which data is available, HACSB provided 10,798 housing choice vouchers throughout San Bernardino County, assisting 25,331 individuals. Of those 10,798 housing choice vouchers, 2,694 were issued to San Bernardino City residents. The City will continue to support the efforts of HACSB in the administration of the Housing Choice Voucher and maximize the use of those funds and other resources in San Bernardino. Actions planned during the next year to address the needs to public housing To assist HACSB in addressing public housing needs, the City will do the following: Monitor At-Risk Units. The City will maintain contact with the owners of at-risk units, encourage the owner to keep the at-risk units affordable and utilize, if feasible, local incentives to preserve any at-risk units Support and Assist Local Non-Profit Organizations. In order to develop or preserve the City's affordable stock, the City will provide technical and/or financial assistance to local non-profit organizations that provide affordable housing. Actions to encourage public housing residents to become more involved in management and participate in homeownership The City does not own any public housing units, therefore has not undertaken efforts to encourage public housing residents to become more involved in the management of public housing units. However, the Housing Authority of the County of San Bernardino (HACSB) does undertake actions to encourage public housing residents to contribute and participate in the management and HACSB has a homeownership program for residents of public housing. 4.c Packet Pg. 146 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 36 OMB Control No: 2506-0117 (exp. 06/30/2018) As for homeownership opportunities, the City has initiated an Infill Housing Program that will acquire distressed properties within San Bernardino, rehabilitate them and sell them to income qualified homebuyers. The City will work with HACSB, to identify any households who may be eligible for the Housing Choice Voucher Program. If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance The Housing Authority of the County of San Bernardino has not been designated as troubled. Actually it has a moving to work designation which is a designation that a limited number of PHAs across the country have. Discussion See above discussion. 4.c Packet Pg. 147 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 37 OMB Control No: 2506-0117 (exp. 06/30/2018) AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction According to the San Bernardino County 2019 Homeless PIT Count there were 883 homeless persons in the City. A total of 244 individuals were sheltered and 639 were unsheltered. To address this issue, the City will allocate approximately $368,273 (allocation plus prior year resources of $72,44) in ESG funds to homeless service providers who are skilled at transitioning homeless individuals and families from homelessness to permanent housing through a variety of activities including street outreach, homeless prevention, rapid re-housing, emergency shelter and essential services. Additionally, the City will allocate $4,390,475 ($1,019,997 and $3,370,478) in ESG-CV1 and ESG-CV2 respectively, to prevent, prepare for and respond to the Coronavirus among the homeless. Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs The City is an active member of the San Bernardino CoC and fully supports the goals and objectives of the San Bernardino County 10-Year Strategy to End Homelessness. To reach out to homeless persons and assess their individual needs, the City will continue to support the CoC’s coordinated entry system, 2-1-1 San Bernardino County. The Coordinated Entry System will provide people who are at imminent risk of becoming homeless (HUD Homeless definition (Category 2) with problem solving support to retain current housing or to locate get housing placement. The City is continuing its contract in FY 2020-2021 with Step Up On Second, with the goal of reaching 78 homeless persons through street outreach, providing social service referrals to 49 of those 78 persons and facilitating the placement of 13 homeless persons into permanent housing. Addressing the emergency shelter and transitional housing needs of homeless persons The City will continue to fund Lutheran Social Services Southern California (LSSC) to provide an emergency men’s shelter. Due to the changed circumstances as a result of Covid-19, LSSSC has decided it would be more prudent to rehabilitate their existing shelter, instead of building a new shelter as previously planned. The City will assist LSSSC by provding $500,000 for the rehabilitation and modification of the existing shelter to better prevent, prepare for and respond to Covid-19. Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that 4.c Packet Pg. 148 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 38 OMB Control No: 2506-0117 (exp. 06/30/2018) individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again The City of San Bernardino recognizes that homelessness is a regional issue that impacts every community in the region. As the largest community in the County, the City also serves as a hub for service providers. The City supports the efforts of the network of agencies working to end homelessness through the Regional Continuum of Care Strategy. The Continuum of Care Strategy involves four key components, one of which is homeless prevention. The provision of preventative services will decrease the number of households and individuals who will become homeless and require emergency shelters and assistance. The City is working to prevent persons from becoming homeless by funding emergency rental assistance for households at-risk of homelessness. Utilizing its HOME dollars, the City funded the acquisition of the Golden Apartments a 21-unit apartment complex that has been rehabilitated and converted into 38 one-bedroom apartments of supportive housing for homeless persons. Residents moved into their new one-bedroom flats in December 2019. Golden has onsite health and mental health services available through the Department of Behavioral Health and Molina Health. The City has partnered with Step Up on Second to provide street outreach services to homeless persons and assist them with obtaining their vital documents, housing navigation, transportation to appointments and placement in permanent housing. To date, in FY 2019-2020, Step Up has housed 13 individuals and provided linkage to services to 78 persons. San Bernardino County’s 10-Year Strategy for Ending Homelessness was recalibrated in 2013 to focus on a rapid re-housing approach that is also consistent with a Housing First Model. This approach is intended to minimize the amount a time an individual or family remains homeless or in shelters. The Housing First Model also focuses on homeless prevention by emphasizing the need to keep individuals and families in their current housing if appropriate. Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facili ties, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs. The City will continue to support the regional CoC’s efforts to implement the San Bernardino County 10- Year Strategy for Ending Homelessness. This plan includes a recommendation to focus on discharge planning in order to prevent people from becoming homeless when they are discharged from correctional, foster care, health care, or mental health care systems. The McKinney-Vento Act requires 4.c Packet Pg. 149 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 39 OMB Control No: 2506-0117 (exp. 06/30/2018) that State and local governments have policies and protocols in place to ensure that persons being discharged from a publicly-funded institution or system of care are not discharged immediately into homelessness. In order to meet HUD’s requirements, the 10-Year Strategy has established a Discharge Planning Committee to focus on improving coordination between discharge planning agencies, local government, and homeless service providers in order to implement a “zero tolerance” plan that will prevent persons being discharged into homelessness. Discussion In 2018, the City declared a shelter crisis which allowed agencies to apply for the State’s Homeless Emergency Aid Program (HEAP) funding. Four agencies serving homeless persons in the City of San Bernardino received $2.1 million in HEAP funds that can be used over four years. The CoC’s coordinated entry system provides a single point of entry for people who are homeless to be screened and assessed for a range of CoC and City funded homeless programs, including emergency shelters, transitional housing, permanent supportive housing, and rapid rehousing services. All contracted service providers report outcomes based on the countywide outcome standards developed by the County Office of Homeless Services, in order to inform future adjustments to the service system. In FY 18-19, the City facilitated the purchase of two (2) multi-family properties by Foothill Aids Project. In FY 19-20 those properties will be rehabilitated and leased to low-income persons with HIV/Aids. 4.c Packet Pg. 150 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 40 OMB Control No: 2506-0117 (exp. 06/30/2018) AP-75 Barriers to affordable housing – 91.220(j) Introduction: The City recognizes that barriers to affordable housing exist and continues to employ strategies to overcome them. Policies can create barriers to the production of affordable housing and residential investment because such factors increase costs. The high cost of affordable housing and residential investment can be contributed to the following:  Lack of Affordable Housing Funds: The availability of funding for affordable housing has been severely affected by the dissolution of redevelopment agencies. Prior to 2012, redevelopment activities and funding was the City’s primary tool for assisting with neighborhood revitalization efforts and production of affordable housing. The loss of this funding represents a constraint for the City of San Bernardino’s efforts to continue to support neighborhood revitalization. Now the City relies on private resources, federal grant programs, state resources, and philanthropy to fund affordable housing projects.  Environmental Protection: State law (California Environmental Quality Act and California Endangered Species Act) and federal law (National Environmental Policy Act and Federal Endangered Species Act) regulations require environmental review of proposed discretionary projects (e.g., subdivision maps, use permits, etc.). Costs and time delay resulting from the environmental review process are also added to the cost of housing.  Site Improvements: Many parts of San Bernardino are undeveloped and lack adequate pedestrian and automobile infrastructure to support new residential subdivisions. All new residential development is required to provide sidewalk with curbs and gutters and must be served by appropriate roadways consistent with the General Plan Circulation Element and adopted road development standards. The cost of these improvements increases the cost of development, but is necessary to facilitate pedestrian and vehicular access and movement in the City.  Planning and Development Fees: Planning and development impact fees, such as for transportation, water, and sewer infrastructure improvements, often add to the overall cost of development. The City’s fees reflect the fair share of the costs of providing permitting, infrastructure, and services for new residences.  Permit and Processing Procedures: Builders and developers frequently cite the cost of holding land during the evaluation and review process as a significant factor in the cost of housing. The City of San Bernardino’s development review process is designed to accommodate growth without compromising quality. Project quality is of critical concern, as the City faces challenges in securing foreclosed single-family homes and poorly maintained multifamily complexes.  State and Federal Davis-Bacon Prevailing Wages: The State Department of Industrial Relations (DIR) expanded the kinds of projects that require the payment of prevailing wages. Prevailing wage adds to the overall cost of development. A prevailing wage must also be paid to laborers when federal funds are used to pay labor costs for any project over $2,000 or on any multi- 4.c Packet Pg. 151 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 41 OMB Control No: 2506-0117 (exp. 06/30/2018) family project over eight units. Based on discussions with developers, various prevailing wage requirements typically inflate the development costs by 35 percent. Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment The City undertook a major effort to eliminate constraints, with respect to land use regulations, by developing and adopting a new Development Code that unified and simplified the City’s development regulations and processes. That effort was followed by a reorganization of the City to unify the various development-related departments into a single Community Development Department and a one-stop permit counter. The City has made the following additional amendments to the Municipal Code in order to further reduce barriers to affordable housing: 1. General Lot Consolidation Incentive - Small, individual lots offer limited development potential, and generally cannot support onsite property management. Development opportunities could be increased through a small-lot consolidation program that offers a 15 percent density bonus for projects with a residential component that are committing to a maintenance plan and having on-site management. The City is anticipating amending the Development Code to incentivize lot Consolidation. 2. Density Bonus Provisions - Density bonus projects can be an important source of housing for lower and moderate income households. The City anticipates amending the Development Code to reflect the latest amendments to State density bonus law. 3. Transitional and Supportive Housing - The City plans to amend the Development Code to adequately define transitional and permanent supportive housing and permit these uses based on unit type, in accordance with Senate Bill 2. 4. Streamlined Processing - The City is committed to continuing the streamlining of development activities and regulations and will continue to analyze potential programs that seek to eliminate land use constraints, particularly as related to the provision of new housing and rehabilitation of existing housing. The City amended its Development Code in 2012 to make it more user-friendly and to minimize confusion for staff and the development community. As part of the Development Code update, the City also introduced a new streamlined type of Conditional Use Permit: the Minor Use Permit (MUP). The MUP is reviewed by the Development/Environmental Review Committee rather than the Planning Commission, which requires less staff time (and a relatively shorter process for developers), lower fees, and can be used in lieu of a CUP for certain qualified projects. 5. The City will update its General Plan. 4.c Packet Pg. 152 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 42 OMB Control No: 2506-0117 (exp. 06/30/2018) Discussion: To address housing affordability and the lack of monetary resources for affordable housing, the Consolidated Plan calls for the investment of CDBG and/or HOME funds to preserve and rehabilitate housing units and provide homeownership opportunities to low and moderate-income households. For PY 2020-2021, the City will continue to fund its Infill Housing Program and its Owner Occupied Residential Rehabilitation Program (OORP). The OORP will be funded with carryover funds from last year that were not fully expended. Through the City’s Infill Housing Program, the City will acquire, rehabilitate vacant and/or underutilized parcels of land and create housing affordable to low- and moderate-income households. The Owner Occupied Residential Rehabilitation Program will provide deferred loans for the rehabilitation of single family units owned by low and moderate income households. Although the City no longer has access to redevelopment funds, the City will continue to leverage its CDBG and HOME funds to attract private and other available public resources, including land conveyed to the City for the purpose of creating affordable housing for low- and moderate- income households. 4.c Packet Pg. 153 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 43 OMB Control No: 2506-0117 (exp. 06/30/2018) AP-85 Other Actions – 91.220(k) Introduction: Priority Needs established in the FY 2020-2025 Five-Year Consolidated Plan, which form the basis for establishing objectives and outcomes in the FY 2020-2021 One-Year Action Plan, are as follows: High Priority  Preserve and Rehabilitate Housing  Expand homeownership opportunities  Provide Homeless and Homeless Prevention Services  Promote economic development and employment opportunities for low and moderate income persons. Micro-Enterprise Low Priority  New affordable Rental Housing  Improve and expand existing community facilities and infrastructure to meet current and future needs.  Eliminate identified impediments to fair housing through education, enforcement, and testing.  Planning and Administration – CDBG, HOME, and ESG  New Affordable Housing Construction or Rehabilitation  Expand homeownership opportunities – Infill Housing  First-Time Homeownership – CHDO 15% set-aside  New affordable rental housing Actions planned to address obstacles to meeting underserved needs To address obstacles to meeting underserved needs, the City will allocate CDBG, uncommitted HOME and ESG funds through the Action plan in projects that provide financing for the affordable housing development, housing rehabilitation, job creation, public facility/infrastructure improvements and homeless prevention. Lack of resources is the primary obstacle to meeting underserved needs. In order to leverage additional ongoing resources for housing and homeless services, the City is applying for the Permanent Local Housing Allocation (PLHA) funds which are administered by the State Department of Housing and Community Development to It anticipated that in the 2021 the City can receive up to $1.6 million in PLHA funds. The City will also support HACSB’s efforts to obtain additional rental assistance funding, especially for seniors and lower-income households. Actions planned to foster and maintain affordable housing 4.c Packet Pg. 154 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 44 OMB Control No: 2506-0117 (exp. 06/30/2018) The City will invest HOME funds to expand the supply of affordable housing and will use HOME funds to preserve and maintain existing affordable housing through the City of San Bernardino’s Owner-Occupied Rehabilitation Loan Program. Actions planned to reduce lead-based paint hazards To reduce lead-based paint hazards and in accordance, housing constructed prior to 1978 and assisted through the City of San Bernardino’s Owner Occupied Residential Rehabilitation Program will be tested for lead based paint hazards. If lead based-paint hazards are found, safe work practices or abatement procedures will be included in the scope of work for the rehabilitation of the housing unit. All procedures will be in compliance with 24 CFR Part 35. Actions planned to reduce the number of poverty-level families For PY 2020-2021, the City will support:  An Infill Housing Program that will acquire and rehabilitate/construct underutilized properties within the City and when complete sell these homes to low- and moderate income households  Micro Enterprise Program that will provide small business development training and support to income qualified clients who are wish to start their own small business.  Service providers who can provide street outreach, rapid-rehousing, homeless prevention, emergency shelter, and other essential services to homeless and near-homeless persons and families.  The improvement of various park facilities within income-eligible areas of the City that provide recreational and support services to low- and moderate-income residents of the City.  The efforts of HACSB, who provides rental assisance and conventional housing to low-income households.  The efforts of the CoC, San Bernardino County Behavioral Health Administration, Office of Homeless Services and various Homeless Service Agencies to provider public and social services to residents living in poverty, including health services, counseling, educational programs, food distribution, academic and vocational training, youth services, and senior services.  The goals and objectives of San Bernardino County 10-Year Strategy to End Homelessness.  The CoC’s coordinated entry system, 2-1-1 San Bernardino County that provides persons who are at imminent risk of becoming homeless with problem solving support to retain current housing or to locate another housing placement. Actions planned to develop institutional structure During the next year, the San Bernardino Community & Economic Development Department will continue consulting with and inviting a wide variety of agencies and organizations (i.e. CoC, HACSB, National CORE, County of San Bernardino Community Development and Housing Agency, etc.) involved 4.c Packet Pg. 155 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 45 OMB Control No: 2506-0117 (exp. 06/30/2018) with the delivery of housing and social services to low- and moderate-income San Bernardino residents. This will allow to coordinate the City's activities by not duplicating efforts and to know what other agencies are doing. Currently, the City is working with the Center for Community Investment and Dignity Health (Accelerating investments for Healthy Communities). The City's collaboration with CCI and Dignity Health has resulted in the investment of $1.2 million in permanently affordable rental housing in the City. These types of collaborations build the capacity for the City to continue providing affordable housing. Actions planned to enhance coordination between public and private housing and social service agencies During the next year, the San Bernardino Community & Economic Development Department will continue consulting with a wide variety of agencies and organizations such as HACSB, County Workforce Development, County Department of Behavioral Health and County Office on Aging and Adult Services involved with the delivery of housing, supportive services and economic development to low- and moderate- income San Bernardino residents. Workforce Development, for example, provides job placement services for person in the County and also provides up to three months of paid on the job training and any equipment that an employee may require to carry their new job. In the realm of economic development, the City recently established a partnership with the Mexican Consulate’s “Emprendedoras” program. The program partners with the Small Business Administration and the City’s Micro Enterprise program to provide Spanish language training for persons interested in launching a small business or expanding an existing small business. Through the City’s partnership with the “Emprendedoras” program, the City will cross promote the services available through Workforce Development. Discussion: The implementation of the PY 2020-2021 Action Plan will invest federal resources to address obstacles to meeting underserved needs, foster and maintain affordable housing, reduce lead-based paint hazards, inspection of HOME units, reduce the number of families living in poverty, develop institutional structure, and enhance coordination between public and private housing and social service agencies. 4.c Packet Pg. 156 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 46 OMB Control No: 2506-0117 (exp. 06/30/2018) Program Specific Requirements AP-90 Program Specific Requirements – 91.220(l)(1,2,4) Introduction: In the implementation of programs and activities under the 2020-2021 Action Plan, the City of San Bernardino will follow all HUD regulations concerning the use of program income, forms of investment, overall low-and moderate-income benefit for the CDBG program and recapture requirements for the HOME program. The years 2020, 2021 and 2022 are used to determine that an overall benefit of 80% of CDBG funds is used to benefit persons of low and moderate income. Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(l)(1) Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out. 1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 817,368 2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0 3. The amount of surplus funds from urban renewal settlements 0 4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0 5. The amount of income from float-funded activities 0 Total Program Income: 817,368 Other CDBG Requirements 1. The amount of urgent need activities 0 2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income.Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 80.00% 4.c Packet Pg. 157 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 47 OMB Control No: 2506-0117 (exp. 06/30/2018) HOME Investment Partnership Program (HOME) Reference 24 CFR 91.220(l)(2) 1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows: The City does not anticipate using other forms of investment beyond those identified in Section 92.205. 2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows: HOME Recapture Provision If Buyer at any time during the Period of Affordability sells or transfers the Eligible Property, whether voluntarily or involuntarily due to foreclosure or other circumstance, the following provisions shall apply, pursuant to 24 C.F.R. Part 92.254: 1. If Buyer sells or transfers the Eligible Property within the first two years of the Period of Affordability, City shall recover from the Net Proceeds, if any, the entire amount of the HOME Subsidy, or such lesser amount as the Net Proceeds may permit to be recovered. The Net Proceeds are the sales price paid to Buyer minus repayment of loans that are superior in priority to this Affordable Housing Covenant and the Deed of Trust securing it, and any closing costs. 2. If Buyer sells or transfers the Eligible Property after occupying the Eligible Property for at least two years (24 months from the Delivery Date), City’s recovery from the Net Proceeds shall equal the amount of the HOME Subsidy, reduced by a percentage determined by dividing the number of Buyer’s full years of occupation of the Eligible Property by the number of years of the Period of Affordability, and multiplying the result by 100. In calculating recapture of the HOME subsidy only full 12-month periods of occupancy will be utilized in the calculation. For example, if Buyer sells or transfers the Eligible Property during the third year, before the completion of the full third year of a ten-year Period of Affordability, the percentage reduction of the amount of the HOME Subsidy to be recovered by City shall equal 20 percent: (2 years ÷ 10 years) × 100 = 20. Assuming sufficient Net Proceeds, City would recover 80 percent of the HOME Subsidy. If there were not sufficient Net Proceeds, City would recover 80 percent of Net Proceeds, whatever the amount. 3. In no event shall City’s recovery exceed the amount of the Net Proceeds. 4.c Packet Pg. 158 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 48 OMB Control No: 2506-0117 (exp. 06/30/2018) The City requires that its CHDO/subrecipients, who carry out HOME funded ownership programs, utilize the noted recapture provisions, which are part of the affordability covenant executed by the homeowner and recorded against the property. In its homeownership and single family rehabilitation programs the City utilizes the homeownership limits for the San Bernardino Metropolitan/FMR Area provided by HUD. 3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows: Measured from the Delivery Date and determined based on the amount of the HOME Subsidy, as follows: Amount of HOME Subsidy Period of Affordability  Amount of HOME Subsidy: Less than $15,000 Period of Affordability: 5 years  Amount of HOME Subsidy: $15,000 to $40,000 Period of Affordability: 10 years  Amount of HOME Subsidy: More than $40,000 Period of Affordability:15 years The City's affordability covenant requires that HOME units acquired with HOME funds remain affordable for the period noted based on the amount of HOME subsidy. The City requires that its CHDO/subrecipients who carry out HOME funded ownership programs utilize the noted recapture provisions, which are part of the affordability covenant executed by the homeowner and recorded against the property. In its homeownership and single family rehabilitation programs the City utilizes the homeownership limits for the San Bernardino Metropolitan/FMR Area provided by HUD. 4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows: The City will not be undertaking any refinancing of existing debt secured by multifamily housing that is rehabilitated with HOME funds. The City will not undertake the refinancing of single family units rehabilitated with HOME funds. With regard to eligible beneficiaries, the City will adhere to the requirements under 24 CFR 2.203 with regard to income determinations; 92.216 with respect to incomes of applicants; 92.253 with regard to tenant protections and selection and other HOME regulatory requirements that ensure beneficiaries are not precluded from participating in HOME funded programs. The City utilizes Notice of Funding Availability and Requests for Proposals to solicit applications for funding under the HOME program. Solicitations for applications are conducted as funds are available 4.c Packet Pg. 159 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 49 OMB Control No: 2506-0117 (exp. 06/30/2018) for various programs and/or when contracts and renewal periods with applicants expire and new NOFAs and RPS are released. Emergency Solutions Grant (ESG) Reference 91.220(l)(4) 1. Include written standards for providing ESG assistance (may include as attachment) Please refer to an attachment incluced in Admin (AD-26). 2. If the Continuum of Care has established centralized or coordinated assessment system that meets HUD requirements, describe that centralized or coordinated assessment system. The Continuum of Care (CoC) is led by the County of San Bernardino, Department of Behavioral Services. The Coordinated Entry System, referred to as 211 San Bernardino County, is operated by the United Way of San Bernardino County and provides free and confidential information and referral service to persons in need of help connecting with various free or low cost health and human service providers. 211 San Bernardino County, is available 24 hours a day, 7 days a week by dialing 2-1-1 in San Bernardino County or by dialing the toll-free number at 1-888-435-7565. Bilingual staff is available to assist English and/or Spanish speaking callers. However, if another language is need, 211 San Bernardino County, utilizes a translation line that can assist in disseminating information in over 150 languages. 211 San Bernardino County is also available by going to http://211sb.org. Within the City’s ESG written agreement, the Subrecipient must agree to coordinate and integrate, to the maximum extent practicable, ESG-funded activities with other programs targeted to homeless people in the area covered by the Continuum of Care or area over which the services are coordinated to provide a strategic, community-wide system to prevent and end homelessness. 3. Identify the process for making sub-awards and describe how the ESG allocation available to private nonprofit organizations (including community and faith-based organizations). The City of San Bernardino will competitively procure for services that will meet the goals and objectives of the City’s Consolidated Plan and San Bernardino Continuum of Care’s (CoC) 10-Year Plan to End Homelessness. The application review process has three phases. In the first phase, all applications are reviewed by the Community and Economic Development Department staff for completeness and eligibility under the Federal program guidelines. Eligible programs and projects are then reviewed according to their 4.c Packet Pg. 160 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 50 OMB Control No: 2506-0117 (exp. 06/30/2018) contribution to the goals and objectives of the City’s approved Consolidated Plan and CoC’s 10-Year Plan to End Homelessness. Preference is given if a program has the ability to help the City meet federal program objectives and local priorities. Organizational capacity, experience, and past performance are also considered. Based on this review, Community and Economic Development Department staff prepares general funding recommendations. Lastly, a public hearing before City Council will be held to consider the 2020-2021 Draft Annual Action Plan. The City Council adopts the Annual Action Plan, which acts as the CDBG, HOME and ESG program annual budget. Upon completion of this process, the City forwards the adopted Annual Action Plan to the U.S. Department of Housing and Urban Development for approval. 4. If the jurisdiction is unable to meet the homeless participation requirement in 24 CFR 576.405(a), the jurisdiction must specify its plan for reaching out to and consulting with homeless or formerly homeless individuals in considering policies and funding decisions regarding facilities and services funded under ESG. The City of San Bernardino attends and participates, on a quarterly basis, the Interagency Council on Homelessness (ICH). The ICH is a vital component of the San Bernardino County Homeless Partnership. The ICH serves as the policy making body of the Partnership and oversees the implementation of the 10-Year Strategy to End Homelessness in San Bernardino County. The ICH will focus on resource development to insure the funding of homeless projects and 10-Year Strategy recommendations. In addition, ICH serves as the HUD-designated primary decision-making group and oversight board of the City of San Bernardino & County (hereinafter referred to as the “geographic area”) Continuum of Care for the Homeless (CA-609) funding process, (hereinafter referred to as the “CoC”). There are currently former homeless individuals that participate in the policy making decisions of the CoC, regarding facilities or services that receive ESG funding from the City. The ICH is charged with directing, coordinating and evaluating all of the activities related to implementation of the 10-Year Strategy to End Homelessness. The ICH members are directed to report progress on the implementation of the 10-Year Strategy to their colleagues and constituents following each meeting of the ICH. The ICH will promote collaborative partnerships among homeless providers and stakeholders throughout San Bernardino County in order to carry out implementation activities and will develop resources to insure the funding of homeless projects and 10-Year Strategy recommendations. As the oversight board of the CoC, the ICH duties are: 1. To ensure that the CoC is meeting all of the responsibilities assigned to it by the United States Department of Housing and Urban Development (HUD) regulations including: a. The operation and oversight of the local CoC; b. Designation and operation of a Homeless Management Information System (HMIS); i. Designate a single HMIS for the geographic area; ii. Designate an eligible applicant to manage the CoC’s HMIS, which will be known 4.c Packet Pg. 161 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 51 OMB Control No: 2506-0117 (exp. 06/30/2018) as the HMIS Lead; iii. Ensure consistent participation of recipients and sub-recipients of CoC and Emergency Solutions Grant (ESG) funding in the HMIS. iv. Ensure the HMIS is administered in compliance with all requirements prescribed by HUD. c. The development of a CoC plan that includes outreach, engagement, assessment, annual gap analysis of the homeless needs and services available, prevention strategies, shelter and housing supportive services, and HUD CoC annual and biennial requirements; 2. To represent the relevant organizations and projects serving homeless subpopulations; 3. To support homeless persons in their movement from homelessness to economic stability and affordable permanent housing within a supportive community; 4. To be inclusive of all the needs of all of geographic area’s homeless population, including the special service and housing needs of homeless sub-populations; 5. To facilitate responses to issues and concerns that affect the agencies funded by the CoC that is beyond those addressed in the annual CoC application process; 6. To consult with recipients and sub-recipients of CoC funding to establish performance targets appropriate for population and program type, monitor recipient and sub- recipient performance, evaluate outcomes, and take action against poor performers; and 7. To evaluate outcomes of projects funded under the County of San Bernardino CoC program including the ESG. 5. Describe performance standards for evaluating ESG. ESG Subrecipients must demonstrate the financial management and programmatic expertise to successfully develop, design, implement, and monitor the ESG-funded activities. ESG Subrecipients must participate in HMIS and be able to meet all federal, State of California, and City of San Bernardino requirements relative to the ESG program, specifically those concerning equal opportunity and fair housing, affirmative marketing, environmental review, displacement, relocation, acquisition, labor, lead-based paint, conflict of interest, debarment and suspension, and flood insurance. Under the City ESG agreement, ESG Subrecipient are required to conduct an initial evaluation to determine the eligibility of each individual or family’s eligibility for ESG assistance and the amount and types of assistance the individual or family needs to regain stability in permanent housing. All subrecipient providers should meet or exceed project quality goals established by HUD and CoC guidelines which include the following: At least 80 percent of project participants either remained in permanent housing or exited to permanent housing; At least 20 percent or more of project participants have employment income (or other sources such as SSI and/or SSDI, for those who are not employable); At least 54 percent of project participants increased their income from sources other than employment in a given operating year; At least 56 percent of project participants obtained mainstream benefits; and 100 percent of the project participants came from the street or other locations not meant for human habitation, emergency shelters, or safe havens. In addition, PSH providers must: Implement a housing first approach. Fill vacant beds with only chronically homeless persons. 4.c Packet Pg. 162 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 52 OMB Control No: 2506-0117 (exp. 06/30/2018) Housing Trust Fund (HTF) Reference 24 CFR 91.220(l)(5) 1. Distribution of Funds a. Describe the eligibility requirements for recipients of HTF funds (as defined in 24 CFR § 93.2). b. Describe the jurisdiction’s application requirements for eligible recipients to apply for HTF funds. c. Describe the selection criteria that the jurisdiction will use to select applications submitted by eligible recipients. d. Describe the jurisdiction’s required priority for funding based on geographic distribution, which is a description of the geographic areas of the State (including areas of low-income and minority concentration) in which it will direct assistance during the ensuing program year. e. Describe the jurisdiction’s required priority for funding based on the applicant's ability to obligate HTF funds and undertake eligible activities in a timely manner. f. Describe the jurisdiction’s required priority for funding based on the extent to which rents for units in the rental project are affordable to extremely low-income families. g. Describe the jurisdiction’s required priority for funding based on the financial feasibility of the project beyond the required 30-year period. h. Describe the jurisdiction’s required priority for funding based on the merits of the application in meeting the priority housing needs of the jurisdiction (such as housing that is accessible to transit or 4.c Packet Pg. 163 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 53 OMB Control No: 2506-0117 (exp. 06/30/2018) employment centers, housing that includes green building and sustainable development features, or housing that serves special needs populations). i. Describe the jurisdiction’s required priority for funding based on the location of existing affordable housing. j. Describe the jurisdiction’s required priority for funding based on the extent to which the application makes use of non-federal funding sources. 2. Does the jurisdiction’s application require the applicant to include a description of the eligible activities to be conducted with HTF funds? 3. Does the jurisdiction’s application require that each eligible recipient certify that housing units assisted with HTF funds will comply with HTF requirements? 4. Performance Goals and Benchmarks. The jurisdiction has met the requirement to provide for performance goals, consistent with the jurisdiction’s goals established under 24 CFR 91.215(b)(2), by including HTF in its housing goals in the housing table on the SP-45 Goals and AP-20 Annual Goals and Objectives screens. 5. Rehabilitation Standards. The jurisdiction must establish rehabilitation standards for all HTF-assisted housing rehabilitation activities that set forth the requirements that the housing must meet upon project completion. The jurisdiction’s description of its standards must be in sufficient detail to determine the required rehabilitation work including methods and materials. The standards may refer to applicable codes or they may establish requirements that exceed the minimum requirements of the codes. The jurisdiction must attach its rehabilitation standards below. If the jurisdiction will not use HTF funds for the rehabilitation of housing, enter “N/A”. In addition, the rehabilitation standards must address each of the following: health and safety; major systems; lead-based paint; accessibility; disaster mitigation (where relevant); state and local codes, ordinances, and zoning requirements; Uniform Physical Condition Standards; and Capital Needs Assessments (if applicable). 6. Resale or Recapture Guidelines. Below, the jurisdiction must enter (or attach) a description of the 4.c Packet Pg. 164 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 54 OMB Control No: 2506-0117 (exp. 06/30/2018) guidelines that will be used for resale or recapture of HTF funds when used to assist first-time homebuyers. If the jurisdiction will not use HTF funds to assist first-time homebuyers, enter “N/A”. 7. HTF Affordable Homeownership Limits. If the jurisdiction intends to use HTF funds for homebuyer assistance and does not use the HTF affordable homeownership limits for the area provided by HUD, it must determine 95 percent of the median area purchase price and set forth the information in accordance with §93.305. If the jurisdiction will not use HTF funds to assist first-time homebuyers, enter “N/A”. 8. Limited Beneficiaries or Preferences. Describe how the jurisdiction will limit the beneficiaries or give preferences to a particular segment of the extremely low- or very low-income population to serve unmet needs identified in its consolidated plan or annual action plan. If the jurisdiction will not limit the beneficiaries or give preferences to a particular segment of the extremely low- or very low-income population, enter “N/A.” Any limitation or preference must not violate nondiscrimination requirements in § 93.350, and the jurisdiction must not limit or give preferences to students. The jurisdiction may permit rental housing owners to limit tenants or give a preference in accordance with § 93.303 only if such limitation or preference is described in the action plan. 9. Refinancing of Existing Debt. Enter or attach the jurisdiction’s refinancing guidelines below. The guidelines describe the conditions under which the jurisdiction will refinance existing rental housing project debt. The jurisdiction’s refinancing guidelines must, at minimum, demonstrate that rehabilitation is the primary eligible activity and ensure that this requirement is met by establishing a minimum level of rehabilitation per unit or a required ratio between rehabilitation and refinancing. If the jurisdiction will not refinance existing debt, enter “N/A.” <TYPE=[section 9 end]> Discussion: See above discussion. 4.c Packet Pg. 165 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Annual Action Plan 2020 55 OMB Control No: 2506-0117 (exp. 06/30/2018) 4.c Packet Pg. 166 Attachment: Substantial Amendment to FY 2020-21 Annual Action Plan (6868 : Substantial Amendment Action Plan - Coronavirus Relief Funds) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: August 19, 2020 To: Honorable Mayor and City Council Members From: Cheryl Weeks, Council Administrative Supervisor Subject: June and July 2020 City Board, Commission, and Citizen Advisory Committee Approved Minutes Recommendation Receive and file the minutes from the City board, commission, and citizen advisory committee meetings approved in July 2020. Background On February 7, 2018, the Mayor and City Council adopted general provisions for the City’s boards, commissions and citizen advisory committees under Municipal Code Chapter 2.17 requiring meeting minutes to be provided to the Mayor and City Council. Discussion In keeping with the reporting requirements established in Municipal Code Chapter 2.17.080 the minutes for the board, commission and citizen advisory committee meetings approved in the month July 2020 are presented for review by the Mayor and City Council including the: 1. Planning Commission - June 23, 2020 2. Water Board - June 23, 2020; July 14, 2020 2020-2025 Key Strategic Targets and Goals Providing the agendas and minutes from each of the City’s Boards, Commissions and Citizen Advisory Committees to the Mayor and City Council is in alignmen t with Key Target No. 2: Focused, Aligned Leadership and Unified Community by building a culture that attracts, retains, and motivates the highest quality talent. Fiscal Impact No fiscal impact to the City. Conclusion Receive and file the minutes from the City board, commission, and citizen advisory committee meetings approved in July 2020. Attachments Attachment 1 City Board, Commission and Citizen Advisory Committee Meeting 5 Packet Pg. 167 6852 Page 2 minutes approved in July 2020; Exhibit A - Planning Commission- June 23, 2020; Exhibit B - Water Board-June 23, 2020; July 14, 2020 Ward: All 5 Packet Pg. 168 5.a Packet Pg. 169 Attachment: MCC.June and July 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (6852 : June and July 2020 City Board, 5.a Packet Pg. 170 Attachment: MCC.June and July 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (6852 : June and July 2020 City Board, 5.a Packet Pg. 171 Attachment: MCC.June and July 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (6852 : June and July 2020 City Board, 5.a Packet Pg. 172 Attachment: MCC.June and July 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (6852 : June and July 2020 City Board, 5.a Packet Pg. 173 Attachment: MCC.June and July 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (6852 : June and July 2020 City Board, 5.a Packet Pg. 174 Attachment: MCC.June and July 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (6852 : June and July 2020 City Board, 5.a Packet Pg. 175 Attachment: MCC.June and July 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (6852 : June and July 2020 City Board, 5.a Packet Pg. 176 Attachment: MCC.June and July 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (6852 : June and July 2020 City Board, 5.a Packet Pg. 177 Attachment: MCC.June and July 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (6852 : June and July 2020 City Board, 5.a Packet Pg. 178 Attachment: MCC.June and July 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (6852 : June and July 2020 City Board, 5.a Packet Pg. 179 Attachment: MCC.June and July 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (6852 : June and July 2020 City Board, 5.a Packet Pg. 180 Attachment: MCC.June and July 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (6852 : June and July 2020 City Board, 5.a Packet Pg. 181 Attachment: MCC.June and July 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (6852 : June and July 2020 City Board, 5.a Packet Pg. 182 Attachment: MCC.June and July 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (6852 : June and July 2020 City Board, 5.a Packet Pg. 183 Attachment: MCC.June and July 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (6852 : June and July 2020 City Board, 5.a Packet Pg. 184 Attachment: MCC.June and July 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (6852 : June and July 2020 City Board, 5.a Packet Pg. 185 Attachment: MCC.June and July 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (6852 : June and July 2020 City Board, 5.a Packet Pg. 186 Attachment: MCC.June and July 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (6852 : June and July 2020 City Board, 5.a Packet Pg. 187 Attachment: MCC.June and July 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (6852 : June and July 2020 City Board, Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: August 19, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By: Jim Slobojan, Acting Finance Director Subject: Approval of Commercial and Payroll Disbursements Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California approve the commercial and payroll disbursements for July 2020. Background Completed commercial and payroll disbursement registers are submitted to the Mayor and City Council for approval. This happens on a regular basis, typically every meeting for the most recently completed disbursement registers. The detailed warrant registers are available on the City’s website, and are updated weekly by the Finance Department. The registers may be accessed by copying the following link into an internet browser: <http://sbcity.org/cityhall/finance/warrant_register.asp> Discussion Gross Payroll Bi-Weekly for July 23, 2020 $2,206,987.28 Monthly for July 15, 2020 11,666.69 Total Payroll Demands: $2,218,653.97 The following check registers are being presented for approval: July 9, 2020 2020/21 (Register #2)$904,602.99 July 16, 2020 2020/21 (Register #3)1,303,188.32 July 24, 2020 2020/21 (Register #4)1,310,806.13 Total commercial check demands:$3,518,597.44 The following Electronic Funds Transfer (EFT) registers presented for approval: July 01 to July 10, 2020 2020/21 (Register #939-#944)$1,288,670.39 July 20, 2020 2020/21 (Register #945-#947)19,925.73 Total commercial EFT demands:$1,308,596.12 2020-2025 Key Strategic Targets and Goals Approval of the noted check and EFT registers for commercial and payroll 6 Packet Pg. 188 6854 Page 2 disbursements align with Key Target No. 1: Financial Stability by creating a framework for spending decisions. Fiscal Impact Amounts noted in the disbursement 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 Mayor and City Council of the City of San Bernardino approve the commercial and payroll disbursements for July 2020. Attachments Attachment 1 Payroll checks for July 2020 Attachment 2 Commercial checks for Registers #2 Attachment 3 Commercial checks for Registers #3 Attachment 4 Commercial checks for Registers #4 Attachment 5 Commercial EFT Registers #939-947 6 Packet Pg. 189 6.a Packet Pg. 190 Attachment: FN. Payroll Summary Report ATTACHMENT#1 (6854 : Approval of Commercial and Payroll Disbursements) 6.a Packet Pg. 191 Attachment: FN. Payroll Summary Report ATTACHMENT#1 (6854 : Approval of Commercial and Payroll Disbursements) 6.b Packet Pg. 192 Attachment: FN. Commercial Checks & Payroll. Register #2 ATTACHMENT#2 (6854 : Approval of 6.b Packet Pg. 193 Attachment: FN. Commercial Checks & Payroll. Register #2 ATTACHMENT#2 (6854 : Approval of 6.b Packet Pg. 194 Attachment: FN. Commercial Checks & Payroll. Register #2 ATTACHMENT#2 (6854 : Approval of 6.b Packet Pg. 195 Attachment: FN. Commercial Checks & Payroll. Register #2 ATTACHMENT#2 (6854 : Approval of 6.b Packet Pg. 196 Attachment: FN. Commercial Checks & Payroll. Register #2 ATTACHMENT#2 (6854 : Approval of 6.b Packet Pg. 197 Attachment: FN. Commercial Checks & Payroll. Register #2 ATTACHMENT#2 (6854 : Approval of 6.b Packet Pg. 198 Attachment: FN. Commercial Checks & Payroll. Register #2 ATTACHMENT#2 (6854 : Approval of 6.b Packet Pg. 199 Attachment: FN. Commercial Checks & Payroll. Register #2 ATTACHMENT#2 (6854 : Approval of 6.b Packet Pg. 200 Attachment: FN. Commercial Checks & Payroll. Register #2 ATTACHMENT#2 (6854 : Approval of 6.b Packet Pg. 201 Attachment: FN. Commercial Checks & Payroll. Register #2 ATTACHMENT#2 (6854 : Approval of 6.b Packet Pg. 202 Attachment: FN. Commercial Checks & Payroll. Register #2 ATTACHMENT#2 (6854 : Approval of 6.b Packet Pg. 203 Attachment: FN. Commercial Checks & Payroll. Register #2 ATTACHMENT#2 (6854 : Approval of 6.b Packet Pg. 204 Attachment: FN. Commercial Checks & Payroll. Register #2 ATTACHMENT#2 (6854 : Approval of 6.b Packet Pg. 205 Attachment: FN. Commercial Checks & Payroll. Register #2 ATTACHMENT#2 (6854 : Approval of 6.b Packet Pg. 206 Attachment: FN. Commercial Checks & Payroll. Register #2 ATTACHMENT#2 (6854 : Approval of 6.b Packet Pg. 207 Attachment: FN. Commercial Checks & Payroll. Register #2 ATTACHMENT#2 (6854 : Approval of 6.b Packet Pg. 208 Attachment: FN. Commercial Checks & Payroll. Register #2 ATTACHMENT#2 (6854 : Approval of 6.b Packet Pg. 209 Attachment: FN. Commercial Checks & Payroll. Register #2 ATTACHMENT#2 (6854 : Approval of 6.b Packet Pg. 210 Attachment: FN. Commercial Checks & Payroll. Register #2 ATTACHMENT#2 (6854 : Approval of 6.c Packet Pg. 211 Attachment: FN. Commercial Checks & Payroll. Register #3 ATTACHMENT#3 (6854 : Approval of 6.c Packet Pg. 212 Attachment: FN. Commercial Checks & Payroll. Register #3 ATTACHMENT#3 (6854 : Approval of 6.c Packet Pg. 213 Attachment: FN. Commercial Checks & Payroll. Register #3 ATTACHMENT#3 (6854 : Approval of 6.c Packet Pg. 214 Attachment: FN. Commercial Checks & Payroll. Register #3 ATTACHMENT#3 (6854 : Approval of 6.c Packet Pg. 215 Attachment: FN. Commercial Checks & Payroll. Register #3 ATTACHMENT#3 (6854 : Approval of 6.c Packet Pg. 216 Attachment: FN. Commercial Checks & Payroll. Register #3 ATTACHMENT#3 (6854 : Approval of 6.c Packet Pg. 217 Attachment: FN. Commercial Checks & Payroll. Register #3 ATTACHMENT#3 (6854 : Approval of 6.c Packet Pg. 218 Attachment: FN. Commercial Checks & Payroll. Register #3 ATTACHMENT#3 (6854 : Approval of 6.c Packet Pg. 219 Attachment: FN. Commercial Checks & Payroll. Register #3 ATTACHMENT#3 (6854 : Approval of 6.c Packet Pg. 220 Attachment: FN. Commercial Checks & Payroll. Register #3 ATTACHMENT#3 (6854 : Approval of 6.c Packet Pg. 221 Attachment: FN. Commercial Checks & Payroll. Register #3 ATTACHMENT#3 (6854 : Approval of 6.c Packet Pg. 222 Attachment: FN. Commercial Checks & Payroll. Register #3 ATTACHMENT#3 (6854 : Approval of 6.c Packet Pg. 223 Attachment: FN. Commercial Checks & Payroll. Register #3 ATTACHMENT#3 (6854 : Approval of 6.c Packet Pg. 224 Attachment: FN. Commercial Checks & Payroll. Register #3 ATTACHMENT#3 (6854 : Approval of 6.c Packet Pg. 225 Attachment: FN. Commercial Checks & Payroll. Register #3 ATTACHMENT#3 (6854 : Approval of 6.c Packet Pg. 226 Attachment: FN. Commercial Checks & Payroll. Register #3 ATTACHMENT#3 (6854 : Approval of 6.c Packet Pg. 227 Attachment: FN. Commercial Checks & Payroll. Register #3 ATTACHMENT#3 (6854 : Approval of 6.c Packet Pg. 228 Attachment: FN. Commercial Checks & Payroll. Register #3 ATTACHMENT#3 (6854 : Approval of 6.d Packet Pg. 229 Attachment: FN. Commercial Checks & Payroll. Register #4 ATTACHMENT#4 (6854 : Approval of 6.d Packet Pg. 230 Attachment: FN. Commercial Checks & Payroll. Register #4 ATTACHMENT#4 (6854 : Approval of 6.d Packet Pg. 231 Attachment: FN. Commercial Checks & Payroll. Register #4 ATTACHMENT#4 (6854 : Approval of 6.d Packet Pg. 232 Attachment: FN. Commercial Checks & Payroll. Register #4 ATTACHMENT#4 (6854 : Approval of 6.d Packet Pg. 233 Attachment: FN. Commercial Checks & Payroll. Register #4 ATTACHMENT#4 (6854 : Approval of 6.d Packet Pg. 234 Attachment: FN. Commercial Checks & Payroll. Register #4 ATTACHMENT#4 (6854 : Approval of 6.d Packet Pg. 235 Attachment: FN. Commercial Checks & Payroll. Register #4 ATTACHMENT#4 (6854 : Approval of 6.d Packet Pg. 236 Attachment: FN. Commercial Checks & Payroll. Register #4 ATTACHMENT#4 (6854 : Approval of 6.d Packet Pg. 237 Attachment: FN. Commercial Checks & Payroll. Register #4 ATTACHMENT#4 (6854 : Approval of 6.d Packet Pg. 238 Attachment: FN. Commercial Checks & Payroll. Register #4 ATTACHMENT#4 (6854 : Approval of 6.d Packet Pg. 239 Attachment: FN. Commercial Checks & Payroll. Register #4 ATTACHMENT#4 (6854 : Approval of 6.d Packet Pg. 240 Attachment: FN. Commercial Checks & Payroll. Register #4 ATTACHMENT#4 (6854 : Approval of 6.d Packet Pg. 241 Attachment: FN. Commercial Checks & Payroll. Register #4 ATTACHMENT#4 (6854 : Approval of 6.d Packet Pg. 242 Attachment: FN. Commercial Checks & Payroll. Register #4 ATTACHMENT#4 (6854 : Approval of 6.e Packet Pg. 243 Attachment: FN. EFT Register #939-947. ATTACHMENT#5 (6854 : Approval of Commercial and Payroll 6.e Packet Pg. 244 Attachment: FN. EFT Register #939-947. ATTACHMENT#5 (6854 : Approval of Commercial and Payroll 6.e Packet Pg. 245 Attachment: FN. EFT Register #939-947. ATTACHMENT#5 (6854 : Approval of Commercial and Payroll 6.e Packet Pg. 246 Attachment: FN. EFT Register #939-947. ATTACHMENT#5 (6854 : Approval of Commercial and Payroll Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: August 19, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Eric McBride, Acting Chief of Police Subject: Resolution Authorizing the OTS TRIP Grant Recommendation Adopt Resolution No. 2020-200 of the Mayor and City Council of the City of San Bernardino, California, authorizing the Director of Finance to amend the FY 2020/21 Adopted Budget by $48,800. Background The City of San Bernardino has been awarded and accepted the Office of Traffic Safety (OTS) Traffic Records Improvement Project (TRIP) grant for Fiscal Year 2020/21 in the amount of $48,800. The TRIP grant will be used to upgrade the police department's current traffi c crash reporting system. The police department currently prints and mails all traffic collision reports to the Statewide Integrated Traffic Report System maintained by the California Highway Patrol. The TRIP grant will allow the police department to pur chase a system that interfaces with the State's system and allows for the submittal of digitized traffic collision reports. The grant award is attached hereto as Attachment 2. Discussion Staff is requesting that both revenue and expenditures in the FY 2020/21 be increased by the grant amount of $48,800. 2020-2025 Key Strategic Targets and Goals The request to amend the FY 2020/21 budget for the OTS Traffic Records Improvement Program grant aligns with Key Target No. 3c: Improved Quality of Life: constantly evaluate public safety service delivery models to enhance the quality of service. Fiscal Impact The fiscal impact to the City is a budget amendment of $48,800 to revenue and expenditures in the FY 2020/21 Adopted Budget in Grant Account #123 -210-8789. There are no matching requirements for this grant. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, 7 Packet Pg. 247 6849 Page 2 California, adopt Resolution No. 2020-200 authorizing the Director of Finance to amend the FY 2020/21 Adopted Budget by $48,800. Attachments Attachment 1 Resolution 2020-200 Attachment 2 OTS Grant Agreement, TR21020 Ward: All Synopsis of Previous Council Actions: July 17, 2019 Resolution 2019-264 adopted authorizing the acceptance and administration of the FY 2019/20 Office of Traffic Safety STEP grant in the amount of $485,000. October 3, 2018 Resolution 2018-272 adopted authorizing the acceptance and administration of the FY 2018/19 Office of Traffic Safety STEP grant in the amount of $458,000. July 5, 2017 Resolution 2017-126 adopted authorizing the acceptance and administration of the FY 2017/18 Office of Traffic Safety STEP grant in the amount of $746,298.13. October 17, 2016 Resolution 2016-211 adopted authorizing the acceptance and administration of the FY 2016/17 Office of Traffic Safety STEP grant in the amount of $430,000. January 20, 2015 Resolution 2015-10 adopted authorizing the acceptance and administration of the FY 2015/16 Office of Traffic Safety STEP grant in the amount of $702,608. March 3, 2014 Resolution 2014-49 adopted authorizing the acceptance and administration of the FY 2014/15 Office of Traffic Safety STEP grant in the amount of $722,457.53. January 7, 2013 Resolution 2013-3 adopted authorizing the acceptance and administration of the FY 2013/14 Office of Traffic Safety STEP grant in the amount of $211,169.59. April 16, 2012 Resolution 2012-67 adopted authorizing the acceptance and administration of the FY 2012/13 Office of Traffic Safety STEP grant in the amount of $251,311.90. 7 Packet Pg. 248 RESOLUTION NO. 2020-200 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE DIRECTOR OF FINANCE TO AMEND THE FISCAL YEAR 2020/21 ADOPTED BUDGET BY $48,800 WHEREAS, the City has been awarded and accepted the Office of Traffic Safety, Traffic Records Improvement Project grant for FY 2020/21 in the amount of $48,800; and WHEREAS, the City will use the funds to upgrade systems to be more effective and efficient in the reporting of traffic collisions to the State of California. 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 Director of Finance is hereby authorized to amend the revenue and expenditures in the FY 2020/21 Adopted Budget by $48,800. SECTION 3. 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 4. 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 City Council and signed by the Mayor and attested by the Acting City Clerk this ___ day of __________ 2020. John Valdivia, Mayor City of San Bernardino 7.a Packet Pg. 249 Attachment: PD-Amend FY20-21 GrantBudget. Reso (6849 : Resolution Authorizing the OTS TRIP Grant) Resolution No. 2020-200 Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney 7.a Packet Pg. 250 Attachment: PD-Amend FY20-21 GrantBudget. Reso (6849 : Resolution Authorizing the OTS TRIP Grant) Resolution No. 2020-200 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk 7.a Packet Pg. 251 Attachment: PD-Amend FY20-21 GrantBudget. Reso (6849 : Resolution Authorizing the OTS TRIP Grant) 7.b Packet Pg. 252 Attachment: PD-Amend the FY2020/21 Grant Budget.Attach2 [Revision 1] (6849 : Resolution Authorizing the OTS TRIP Grant) 7.b Packet Pg. 253 Attachment: PD-Amend the FY2020/21 Grant Budget.Attach2 [Revision 1] (6849 : Resolution Authorizing the OTS TRIP Grant) 7.b Packet Pg. 254 Attachment: PD-Amend the FY2020/21 Grant Budget.Attach2 [Revision 1] (6849 : Resolution Authorizing the OTS TRIP Grant) 7.b Packet Pg. 255 Attachment: PD-Amend the FY2020/21 Grant Budget.Attach2 [Revision 1] (6849 : Resolution Authorizing the OTS TRIP Grant) 7.b Packet Pg. 256 Attachment: PD-Amend the FY2020/21 Grant Budget.Attach2 [Revision 1] (6849 : Resolution Authorizing the OTS TRIP Grant) 7.b Packet Pg. 257 Attachment: PD-Amend the FY2020/21 Grant Budget.Attach2 [Revision 1] (6849 : Resolution Authorizing the OTS TRIP Grant) 7.b Packet Pg. 258 Attachment: PD-Amend the FY2020/21 Grant Budget.Attach2 [Revision 1] (6849 : Resolution Authorizing the OTS TRIP Grant) 7.b Packet Pg. 259 Attachment: PD-Amend the FY2020/21 Grant Budget.Attach2 [Revision 1] (6849 : Resolution Authorizing the OTS TRIP Grant) 7.b Packet Pg. 260 Attachment: PD-Amend the FY2020/21 Grant Budget.Attach2 [Revision 1] (6849 : Resolution Authorizing the OTS TRIP Grant) 7.b Packet Pg. 261 Attachment: PD-Amend the FY2020/21 Grant Budget.Attach2 [Revision 1] (6849 : Resolution Authorizing the OTS TRIP Grant) 7.b Packet Pg. 262 Attachment: PD-Amend the FY2020/21 Grant Budget.Attach2 [Revision 1] (6849 : Resolution Authorizing the OTS TRIP Grant) 7.b Packet Pg. 263 Attachment: PD-Amend the FY2020/21 Grant Budget.Attach2 [Revision 1] (6849 : Resolution Authorizing the OTS TRIP Grant) 7.b Packet Pg. 264 Attachment: PD-Amend the FY2020/21 Grant Budget.Attach2 [Revision 1] (6849 : Resolution Authorizing the OTS TRIP Grant) 7.b Packet Pg. 265 Attachment: PD-Amend the FY2020/21 Grant Budget.Attach2 [Revision 1] (6849 : Resolution Authorizing the OTS TRIP Grant) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: August 19, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Eric McBride, Acting Chief of Police Subject: Resolution Authorizing a Purchase and Sale Agreement Between City of San Bernardino and LEHR Auto Recommendation Adopt Resolution No. 2020-201 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute a Professional Se rvices Agreement between the City of San Bernardino and LEHR Auto Electric; authorizing the Director of Finance to amend the FY 2020/21 Adopted Budget, appropriating $659,257 to issue a purchase order to LEHR Auto Electric in an amount not to exceed $120,0 00 and a purchase order to Fairview Ford in an amount not to exceed $84,000, and further authorize the Director of Finance to amend the FY 20/21 Adopted Budget to transfer the Unfunded Actuarial Liability in the amount of $312,369 from 001-210-8652-5034 into 001-120-0078-5034. Background On October 1, 2017, the City of San Bernardino entered into the San Manuel Community Credit Fund Restricted Grant Agreement. Phase 2 (January 1, 2018 - December 31, 2020) requires the City to use approximately 20 -30% of the grant to purchase equipment, including patrol vehicles, citizen volunteer vehicles, automated license plate readers, and patrol bicycles. Additionally, the department may purchase miscellaneous equipment, provided it meets with the objectives and scope of the grant, a written notice is provided to the Tribe in advance of the intent , and the purpose of the miscellaneous equipment is stated. To date, the department has only spent approximately 16% of the funds dedicated to the purchase of equipment. The S an Manuel Community Credit Fund is paid in advance by equal quarterly payments of $300,000 during the award period. To date, San Manuel has paid $3,900,000 with a final $300,000 due October 1, 2020. Discussion Currently, the department staffs four patrol officer positions and two Community Service Officer (CSO) positions funded by San Manuel. The department also provides staffing for traffic control two to three nights a week, typically during weekends. Traffic control is paid for by San Manuel and requires the use of department patrol and CSO vehicles. The department has used grant funding to purchase four patrol vehicles and one community service vehicle specifically used in the San Manuel defined area. The 8 Packet Pg. 266 6861 Page 2 department is requesting to purchase one more patrol vehicle and one community service/volunteer vehicle to maintain an adequate fleet of vehicles dedicated to the San Manuel defined area that does not impact the patrol fleet. On June 26, 2020, the City of San Bernardino issued RFQ F-20-29, requesting quotes for Ford Explorer Interceptors. Fairview Ford was the only responding vendor and provided a quote of $40,960.87, included as Attachment 2. This price includes all options provided and an 8-year Premium Care warranty. The department is requesting a purchase order for $84,000 to be issued for the purchase of the vehicles with the extra $2,078.26 to be used in the event of unforeseen expenses. The vehicles will also require the installation of appropriate emergency equipment. Staff is requesting bids on emergency equipment installation and will bring forth a report on a later date. The department has used grant funding to purchase Automated License Plate Readers (ALPR) installed on dedicated San Manuel vehicles and at intersections that affect the defined area. The ALPR systems have proven useful in numerous investigations, including assistance with locating suspects of dangerous or violent crimes such as homicide, robbery, rape, and child abduction. The department is requesting funding to install ALPR’s on the remaining San Manuel Vehicles as well as intersections affecting the defined area. The City has already purchased and installed 26 ALPR Vigilant cameras that allow the SBPD to share data with other Vigilant system users. Vigilant is one of t he largest ALPR data-sharing initiatives in the world, with over 4 billion records. Locally, Vigilant Solutions provides ALPR systems to the California Highway Patrol, Redlands Police Department, Fontana Police Department, and the San Bernardino County She riff’s Department, who uses fixed and mobile ALPR systems throughout the county. This includes the City of Highland, Loma Linda, Bloomington, and Rancho Cucamonga. The department is requesting to continue using Vigilant ALPR cameras. The only authorized reseller of Vigilant products to the City of San Bernardino is LEHR Auto Electric. Installing a different type of ALPR would limit the SBPD’s data sharing capabilities and force investigators to search multiple systems for the same data. LEHR provided a bid of $104,500 to outfit four vehicles with mobile ALPR camera systems, included as Attachment 4. The total cost with tax is $112,860. The department is requesting to add approximately 10% to the purchase order as a contingency fee for unforeseen expenses or equipment needs. The department also intends to purchase items to support the objectives and scope of the project to include police bicycles and additional miscellaneous equipment. The Fiscal Year 2020/2021 Adopted Budget contained programming of the Unfunded Actuarial Liability in the Police Department's San Manuel program but instead this amount should be programmed in the Patrol Field Services program. 2020-2025 Key Strategic Targets and Goals 8 Packet Pg. 267 6861 Page 3 The request to amend the FY 2020/21 budget and issue a purchase order to LEHR Auto Electric and Fairview Ford aligns with Key Target No. 3c: Improved Quality of Life - Constantly evaluate public safety service delivery models to enhance the quality of service. Fiscal Impact The financial impact to the City is $659,257. The fund has been paid current with a final balance of $300,000 due on October 1, 2020. The budget amendment is the amount of unspent funds through December 30, 2020, not previously appropriated in the FY 2020/21 Adopted Budget, program account number 001-210-8652. The requested appropriation will ensure that contract requirements are met. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2020-201 authorizing the City Manager to execute a Professional Services Agreement between the City of San Bernardino and LEHR Auto Electric; authorizing the Director of Finance to amend the FY 2020/21 Adopted Budget, appropriating $659,257 to issue a purchase order to LEHR Auto Electric in an amount not to exceed $120,000 and a purchase order to Fairview Ford in an amount not to exceed $84,000, and further authorize the Director of Finance to amend the FY 20/21 Adopted Budget to transfer the Unfunded Actuarial Liability in the am ount of $312,369 from 001-210-8652-5034 into 001-120-0078-5034. Attachments Attachment 1 Resolution 2020-201; Exhibit A - Professional Services Agreement Attachment 2 Exhibit A to PSA - LEHR Quote Attachment 3 Fairview Ford Quote Attachment 4 Fairview Ford Extended Warranty Ward: 2, 7 Synopsis of Previous Council Actions: September 18, 2019 The Mayor and City Council adopted Resolution 2019-289 authorizing the issuance of a Purchase Order to LEHR Auto Electric in an amount not to exceed $230,000. September 19, 2018 The Mayor and City Council adopted Resolution 2018-270 authorizing the issuance of a Purchase Order to Fairview Ford Sales, Inc. in the amount not to exceed $722,000. December 6, 2017 The Mayor and City Council adopted Resolution 2017-235 authorizing the issuance of a Purchase Order to Fairview Ford Sales, Inc. in the amount of $860,000 for 23 police vehicles. February 21, 2017 The Mayor and City Council adopted Resolution 2017 -16 authorizing the issuance of a Purchase Order to Fairview Ford Sales, Inc. in the amount of $813,540 for 28 police vehicles September 11, 2015 Resolution 2015-201 of the Mayor and Common Council 8 Packet Pg. 268 6861 Page 4 authorizing a purchase order to LEHR for eight ALPR cameras October 9, 2014 The Mayor and Common Council adopted Resolution 2014- 357 authorizing the issuance of a Purchase Order to Fairview Ford Sales, Inc. in the amount of $117,000 for four police vehicles. March 21, 2012 Resolution 2012-49 of the Mayor and Common Council authorizing the execution of an agreement with the City of Highland for permanent encroachment and license to install two ALPR’s at Highland and Victoria. 8 Packet Pg. 269 RESOLUTION NO. 2020-201 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND LEHR AUTO ELECTRIC; AND AUTHORIZING THE DIRECTOR OF FINANCE TO AMEND THE FY 2020/21 ADOPTED BUDGET APPROPORIATING $659,257 TO ISSUE A PURCHASE ORDER TO LEHR AUTO ELECTRIC IN AN AMOUNT NOT TO EXCEED $120,000 AND A PURCHASE ORDER TO FAIRVEIW FORD IN AN AMOUNT NOT TO EXCEED $84,000 WHEREAS, the City is required to spend 20 to 30% of the San Manuel Grant Agreement each year; and WHEREAS, payments of $3,900,000 have been received by the City from the San Manuel Band of Mission Indians with a final payment due on October 1, 2020, fully funding the grant award; and WHEREAS, the City requires police vehicles and Automated License Plate Readers to accomplish the objectives and scope of the grant; and, WHEREAS, RFQ F-20-29 was issued for Ford Explorer Interceptors and Fairview Ford was the only responding and best choice bidder; and WHEREAS, LEHR Auto Electric is the only available source provider of Vigilant products for the San Bernardino Police Department. 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 City Manager is hereby authorized to execute a Professional Services Agreement between the City of San Bernardino and Lehr Auto Electric for the purchase and installation of Automated License Plate Readers, attached hereto as Exhibit “A.” SECTION 3. The Director of Finance is hereby authorized to amend the FY 2020/21 budget appropriating $659,257 and to issue a purchase order to LEHR Auto Electric in an amount not to exceed $120,000 and a purchase order to Fairview Ford in an amount not to exceed $84,000. 8.a Packet Pg. 270 Attachment: PD-San Manuel Grant Equipment Purchase-Reso-Final [Revision 1] (6861 : Resolution Authorizing a Purchase and Sale Agreement Resolution No. 2020-201 SECTION 4. 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 5. 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 6. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the Acting City Clerk this ___ day of __________ 2020. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho , City Attorney 8.a Packet Pg. 271 Attachment: PD-San Manuel Grant Equipment Purchase-Reso-Final [Revision 1] (6861 : Resolution Authorizing a Purchase and Sale Agreement Resolution No. 2020-201 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk 8.a Packet Pg. 272 Attachment: PD-San Manuel Grant Equipment Purchase-Reso-Final [Revision 1] (6861 : Resolution Authorizing a Purchase and Sale Agreement 1 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND LEHR AUTO ELECTRIC This Agreement is made and entered into as of August ___, 2020 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 LEHR Auto Electric, a Corporation with its principal place of business at 4707 Northgate Blvd, Sacramento, CA 95834 (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 services for the following project: PROVIDE AUTOMATIC LICENSE PLATE READER HARDWARE, SOFTWARE, MAINTENANCE, AND ACCESS TO THE VIGILANT SOLUTIONS NETWORK. (hereinafter referred to as “the Project”). 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. Incorporation 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 no City employee will provide any services under this Agreement. 4. Compensation. a. Subject to paragraph 4(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit “A.” b. In no event shall the total amount paid for services rendered by Consultant 8.b Packet Pg. 273 Attachment: PD-San Manuel Grant Equipment Purchase-PSA (6861 : Resolution Authorizing a Purchase and Sale Agreement Between City of 2 under this Agreement exceed the sum of $120,000.00. 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. 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 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 8.b Packet Pg. 274 Attachment: PD-San Manuel Grant Equipment Purchase-PSA (6861 : Resolution Authorizing a Purchase and Sale Agreement Between City of 3 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/OSHA 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 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 will constitute a conflict of interest with the City. 13. City 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 e mploying 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. 8.b Packet Pg. 275 Attachment: PD-San Manuel Grant Equipment Purchase-PSA (6861 : Resolution Authorizing a Purchase and Sale Agreement Between City of 4 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 Liability (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. (iii) Commercial General Liability Insurance must include coverage for the following: (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) Explosion, Collapse and Underground (UCX) exclusion deleted (7) Contractual Liability with respect to this Contract (8) Broad Form Property Damage (9) Independent Consultants Coverage (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 Liability 8.b Packet Pg. 276 Attachment: PD-San Manuel Grant Equipment Purchase-PSA (6861 : Resolution Authorizing a Purchase and Sale Agreement Between City of 5 (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/Employer’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. e. Professional Liability (Errors and Omissions) 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 Policy Limits Required (i) The following insurance limits are required for the Agreement: 8.b Packet Pg. 277 Attachment: PD-San Manuel Grant Equipment Purchase-PSA (6861 : Resolution Authorizing a Purchase and Sale Agreement Between City of 6 Combined Single Limit Commercial General Liability $1,000,000 per occurrence/ $2,000,000 aggregate for bodily injury, personal injury, and property damage Automobile Liability $1,000,000 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 Required (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. 8.b Packet Pg. 278 Attachment: PD-San Manuel Grant Equipment Purchase-PSA (6861 : Resolution Authorizing a Purchase and Sale Agreement Between City of 7 (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 Ci ty under other provisions of the Agreement or law. i. Qualifying 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 A:VII 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 (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. In the alternative, City may cancel this Agreement. 8.b Packet Pg. 279 Attachment: PD-San Manuel Grant Equipment Purchase-PSA (6861 : Resolution Authorizing a Purchase and Sale Agreement Between City of 8 (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, expert witness fees and attorneys’ fees and other related 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 Counc il, 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 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 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 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 8.b Packet Pg. 280 Attachment: PD-San Manuel Grant Equipment Purchase-PSA (6861 : Resolution Authorizing a Purchase and Sale Agreement Between City of 9 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 seq. and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, Consultant agrees to fully 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 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 ten (10) 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 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 8.b Packet Pg. 281 Attachment: PD-San Manuel Grant Equipment Purchase-PSA (6861 : Resolution Authorizing a Purchase and Sale Agreement Between City of 10 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 thirty (30) calendar days’ written notice to City only in the event of substantial failure by City to perform in accordance with the terms of this Agreement through no fault of Consultant. 22. 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’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 sati sfaction 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,” 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 a 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: 8.b Packet Pg. 282 Attachment: PD-San Manuel Grant Equipment Purchase-PSA (6861 : Resolution Authorizing a Purchase and Sale Agreement Between City of 11 CITY: City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: Teri Ledoux, City Manager With Copy To: City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: City Attorney CONSULTANT: LEHR Auto Electric 4707 Northgate Blvd. Sacramento, CA 95834 Attn: Steve Adair 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 Agreement. 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. Severability. 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 shall not affect the validity or enforceability of the remaining terms and provisions hereof o r 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 cons ent 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 8.b Packet Pg. 283 Attachment: PD-San Manuel Grant Equipment Purchase-PSA (6861 : Resolution Authorizing a Purchase and Sale Agreement Between City of 12 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. City’s Right 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. 42. 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. [SIGNATURES ON FOLLOWING PAGE] 8.b Packet Pg. 284 Attachment: PD-San Manuel Grant Equipment Purchase-PSA (6861 : Resolution Authorizing a Purchase and Sale Agreement Between City of 13 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND LEHR AUTO ELECTRIC IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. CITY OF SAN BERNARDINO Approved By: Teri Ledoux, City Manager Approved as to Form: _________________________________ Sonia Carvalho City Attorney Attested By: Genevieve Rocha, CMC, Acting City Clerk CONSULTANT Signature Name Title 8.b Packet Pg. 285 Attachment: PD-San Manuel Grant Equipment Purchase-PSA (6861 : Resolution Authorizing a Purchase and Sale Agreement Between City of Quote For: San Bernardino Police Dept. Attn: Francisco Hernandez, Captain Reference: Four Camera Mobile Systems QTY 4 Quote By: Lehr Steve Adair Date: 07-29-20 Be Smart. Be Safe. Be Vigilant. Exhibit A to PSA 8.c Packet Pg. 286 Attachment: PD-San Manuel Grant Equipment Purchase-LEHR Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between Vigilant Solutions is about protecting officers, families and communities. Vigilant is about saving lives – creating innovative and essential intelligence solutions for law enforcement that enhance policing efforts. Intelligence can solve crimes, prevent crimes before they occur, and improve safety for officers and the public that they serve and protect. Vigilant’s solutions are designed to collect, organize and share data to credentialed law enforcement personnel, making intelligence actionable and readily accessible. WHAT WE DO: OUR PRODUCTS: ●License Plate Recognition (LPR) Data and Analytics ●Fixed and Mobile LPR Cameras ●Facial Recognition ●Ballistics Analysis ●Crime Mapping and Analytics ●Campus Safety Solutions ●Parking Enforcement Solutions ●Corporate Security Solutions Page 1 of 4 8.c Packet Pg. 287 Attachment: PD-San Manuel Grant Equipment Purchase-LEHR Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between Lehr 4707 Northgate Blvd. Sacramento, California 95834 (P) 916-267-5547 Issued To: San Bernardino Police Dept. - Attn: Francisco Hernandez, Captain Date: 07-29-20 Project Name: Four Camera Mobile Systems QTY 4 Quote ID: STA-0866-02 PROJECT QUOTATION We at Lehr are pleased to quote the following systems for the above referenced project: Qty Item # Description (4) Mobile LPR SYS-1 CDM-4-1234RHD Mobile LPR 4-Camera Reaper High-Definition System Hardware: ● Qty=1 6mm lens package ● Qty=1 8mm lens package ● Qty=1 12mm lens package ● Qty=1 16mm lens package ● VLP-5200 Processing Unit ● Wiring harness w/ ignition control (Direct to Battery) o Single point power connection ● Field installed GPS antenna Software: ● CarDetector Mobile LPR software application for MDC unit o LPR vehicle license plate scanning / real time alerting o Full suite of LPR tools including video tool set Subtotal Price (Excluding sales tax) $61,700.00 Qty Item # Description (1) VSBSCSVC-02 Vigilant LPR Basic Service Package for Hosted/Managed LPR Deployments ● Managed/hosted server account services by Vigilant o Includes access to all LEARN or Client Portal and CarDetector software updates ● Priced per camera per year for 15-30 total camera units ● Requires new/existing Enterprise Service Agreement (ESA) Subtotal Price (Excluding sales tax) $7,200.00 Page 2 of 4 8.c Packet Pg. 288 Attachment: PD-San Manuel Grant Equipment Purchase-LEHR Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between Qty Item # Description (3) VS-LBB-02-E LPR Camera Mounting Brackets - Light Bar Mounting Style - Complete Set ● LPR Camera Mounting Bracket - Rooftop under light bar ● Compatible with most Whelen, Code3, TOMAR, Federal Signal, Arjent S2 Light Bars ● Mounts up to four (4) LPR cameras Subtotal Price (Excluding sales tax) $3,285.00 Qty Item # Description (3) SSUPSYS-COM Vigilant System Start Up & Commissioning of 'In Field' LPR system ● Vigilant technician to visit customer site ● Includes system start up, configuration and commissioning of LPR system ● Applies to mobile (1 System) and fixed (1 Camera) LPR systems Subtotal Price (Excluding sales tax) $2,625.00 Qty Item # Description (3) Installation Installation of three camera alpr system ● Lehr Anaheim location for install Subtotal Price (Excluding sales tax) $2,550.00 Qty Item # Description (1) VSPTRVL-01 Vigilant Certified Partner Travel via Client Site Visit ● Vigilant certified technician to visit client site ● Includes all travel costs for onsite support services Subtotal Price (Excluding sales tax) $1,550.00 Qty Item # Description (3) VS-SHP-01 Vigilant Shipping Charges ● Applies to each Mobile LPR System ● Shipping Method is FOB Shipping Subtotal Price (Excluding sales tax) $390.00 Consider the "add" price for the following items: Page 3 of 4 8.c Packet Pg. 289 Attachment: PD-San Manuel Grant Equipment Purchase-LEHR Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between Qty Item # Description (3) CDMS44HWW 4-Camera Mobile LPR System - Extended Hardware Warranty - Years 2 through 5 ● Full mobile LPR hardware component replacement warranty ● Applies to 4-Camera hardware system kit ● Valid for 4 years from standard warranty expiration Subtotal Price (Excluding sales tax) $25,200.00 Quote Notes: 1. All prices are quoted in USD and will remain firm and in effect for 60 days. 2. Returns or exchanges will incur a 15% restocking fee. 3. Orders requiring immediate shipment may be subject to a 15% QuickShip fee. 4. Start Up and Training services are exclusive of travel costs - Cost to be borne BY OTHERS. 5. Central compute resource hardware sold separately unless explicitly stated above. 6. All hardware components to have standard One (1) year hardware warranty. 7. All software to have standard one (1) year warranty for manufacturer defects. 8. Compatibility with Vigilant Solutions hardware/software to be confirmed prior to sale. 9. Software is manufactured under strict Vigilant Solutions standard. 10. Lehr is a Vigilant Solutions Sole Source Provider for San Bernardino Police Department. Quoted by: Steve Adair - 916-267-5547 - steve@lehrauto.com Total Price (Excluding sales tax) $104,500.00 (Including All Adds) Page 4 of 4 8.c Packet Pg. 290 Attachment: PD-San Manuel Grant Equipment Purchase-LEHR Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between 8.d Packet Pg. 291 Attachment: PD-San Manuel Grant Equipment Purchase-Fairview Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between 8.d Packet Pg. 292 Attachment: PD-San Manuel Grant Equipment Purchase-Fairview Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between 8.d Packet Pg. 293 Attachment: PD-San Manuel Grant Equipment Purchase-Fairview Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between 8.d Packet Pg. 294 Attachment: PD-San Manuel Grant Equipment Purchase-Fairview Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between 8.d Packet Pg. 295 Attachment: PD-San Manuel Grant Equipment Purchase-Fairview Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between 8.d Packet Pg. 296 Attachment: PD-San Manuel Grant Equipment Purchase-Fairview Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between 8.d Packet Pg. 297 Attachment: PD-San Manuel Grant Equipment Purchase-Fairview Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between 8.d Packet Pg. 298 Attachment: PD-San Manuel Grant Equipment Purchase-Fairview Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between 8.d Packet Pg. 299 Attachment: PD-San Manuel Grant Equipment Purchase-Fairview Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between 8.d Packet Pg. 300 Attachment: PD-San Manuel Grant Equipment Purchase-Fairview Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between 8.d Packet Pg. 301 Attachment: PD-San Manuel Grant Equipment Purchase-Fairview Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between 8.d Packet Pg. 302 Attachment: PD-San Manuel Grant Equipment Purchase-Fairview Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between 8.d Packet Pg. 303 Attachment: PD-San Manuel Grant Equipment Purchase-Fairview Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between 8.d Packet Pg. 304 Attachment: PD-San Manuel Grant Equipment Purchase-Fairview Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between 8.d Packet Pg. 305 Attachment: PD-San Manuel Grant Equipment Purchase-Fairview Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between 8.d Packet Pg. 306 Attachment: PD-San Manuel Grant Equipment Purchase-Fairview Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between 8.d Packet Pg. 307 Attachment: PD-San Manuel Grant Equipment Purchase-Fairview Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between 8.d Packet Pg. 308 Attachment: PD-San Manuel Grant Equipment Purchase-Fairview Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between 8.d Packet Pg. 309 Attachment: PD-San Manuel Grant Equipment Purchase-Fairview Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between 8.d Packet Pg. 310 Attachment: PD-San Manuel Grant Equipment Purchase-Fairview Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between 8.d Packet Pg. 311 Attachment: PD-San Manuel Grant Equipment Purchase-Fairview Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between 8.d Packet Pg. 312 Attachment: PD-San Manuel Grant Equipment Purchase-Fairview Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between 8.d Packet Pg. 313 Attachment: PD-San Manuel Grant Equipment Purchase-Fairview Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between 8.d Packet Pg. 314 Attachment: PD-San Manuel Grant Equipment Purchase-Fairview Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between 8.d Packet Pg. 315 Attachment: PD-San Manuel Grant Equipment Purchase-Fairview Bid (6861 : Resolution Authorizing a Purchase and Sale Agreement Between 8.ePacket Pg. 316Attachment: PD-San Manuel Grant Equipment Purchase-Fairview Extended Warranty (6861 : Resolution Authorizing a Purchase and Sale Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: August 19, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Eric McBride, Acting Chief of Police Subject: Resolution to Issue PO to Fairview Ford Sales for the Purchase of COVID-19 Resistant Vehicles Recommendation Adopt Resolution No. 2020-202 of the Mayor and City Council of the City of San Bernardino, California, authorizing the Director of Finance to issue a Purchase Order to Fairview Ford Sales, Inc., in an amount not to exceed $210,000. Background On May 8, 2020, the U.S. Department of Justice released the Coronavirus Emergency Supplemental Funding Program Solicitation FY 2020 Formula Grant Solicitation. On May 26, 2020, the San Bernardino Police Department submitted an application requesting $632,422 in grant funding to prevent, prepare for, and respond to the Coronavirus (COVID19). The Department’s application was approved, and the full amount has been awarded to the Department. There is no cost matching responsibility from the City with this grant. The Coronavirus has harmed law enforcement agencies through several avenues. COVID-19 exposure results in the depletion of supplies, temporary removal of equipment, and reduced personnel for quarantine purposes. Additionally, cities have experienced protests, crime increases, and a higher demand for efficient online services. Discussion On May 30, 2020, the Department was notified that it was awarded $632,422 in grant funding. On June 19, 2020, the Mayor and City Council adopted Resolution No. 2020 - 134, authorizing the Director of Finance to amend the FY 2020/21 budget. As part of the Department’s proposed project, the Department to purchase five patrol vehicles to be built and equipped with COVID-19 resistant features. On June 26, 2020, the City of San Bernardino issued RFQ F-20-29, requesting quotes for Ford Explorer Interceptors. Fairview Ford was the only responding vendor and provided a quote of $40,960.87, per vehicle. The quoted price includes COVID-19 neutralizing technology and a premium care extended warranty. The vehicles will require the installation of appropriate aftermarket emergency and COVID -19 resistant 9 Packet Pg. 317 6862 Page 2 equipment. Staff is currently soliciting bids for em ergency equipment installation that will be provided in a future report. The City of San Bernardino is separated into five policing districts. The Department will use grant funds to purchase five police vehicles that are specially built to be COVID -19 resistant. Each vehicle will be equipped with non-porous surfaces that can be easily decontaminated. The rear passenger compartment will be sealed from the front passenger compartment and will have a separate system to supply air conditioning and heating. The vehicles will be available to each district to be used for transporting subjects that demonstrate signs or symptoms of COVID-19. Description Cost Quantity Total Cost COVID 19 Resistant Vehicle $40,960.87 5 $204,804.35* *The department is requesting a purchase order issued for $210,000 as a contingency for unforeseen expenses. 2020-2025 Key Strategic Targets and Goals The request to authorize use of grant money to purchase vehicles from Fairview Ford aligns with Key Target No. 1b: Financial Stability: Implement, maintain, and update a fiscal accountability plan. Fiscal Impact The fiscal impact to the City is $210,000. There is sufficient funding in the FY 2020/21 Adopted Budget in account number 123-210-8784*5701. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2020-202 authorizing the director of Finance to issue a Purchase Order to Fairview Ford Sales, Inc., in an amount not to exceed $210,000. Attachments Attachment 1 Resolution 2020-202 Attachment 2 Vendor Bid Attachment 3 Extended Warranty Ward: All Synopsis of Previous Council Actions: June 17, 2020 Mayor and City Council adopted Resolution No. 2020-134 authorizing the City Manager to accept the Coronavirus grant funds and the Director of Finance to amend the FY 2020/2021 budget. 9 Packet Pg. 318 RESOLUTION NO. 2020-202 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE DIRECTOR OF FINANCE TO ISSUE A PURCHASE ORDER TO FAIRVIEW FORD SALES, INC., IN AN AMOUNT NOT TO EXCEED $210,000 WHEREAS, the City of San Bernardino has been awarded the BJA FY 20 Coronavirus Emergency Supplemental Funding Program Grant in the amount of $632,422; and, WHEREAS, the City proposed to purchase COVID 19 resistant vehicles to increase efficiency in the COVID 19 environment; and, WHEREAS, RFQ F-20-29 was issued for Ford Explorer Interceptors, and Fairview Ford was the only responding and best choice bidder. 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 Director of Finance is hereby authorized to issue a purchase order to Fairview Ford Sales, Inc., in an amount not to exceed $210,000. SECTION 3. 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 4. 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 City Council and signed by the Mayor and attested by the Acting City Clerk this ___ day of __________ 2020. John Valdivia, Mayor City of San Bernardino 9.a Packet Pg. 319 Attachment: PD-Order COVID19 Resistant Vehicles-Reso (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of COVID-19 Resolution No. 2020-202 Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney 9.a Packet Pg. 320 Attachment: PD-Order COVID19 Resistant Vehicles-Reso (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of COVID-19 Resolution No. 2020-202 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk 9.a Packet Pg. 321 Attachment: PD-Order COVID19 Resistant Vehicles-Reso (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of COVID-19 9.b Packet Pg. 322 Attachment: PD-Order COVID19 Resistant Vehicles-Fairview Bid (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of 9.b Packet Pg. 323 Attachment: PD-Order COVID19 Resistant Vehicles-Fairview Bid (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of 9.b Packet Pg. 324 Attachment: PD-Order COVID19 Resistant Vehicles-Fairview Bid (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of 9.b Packet Pg. 325 Attachment: PD-Order COVID19 Resistant Vehicles-Fairview Bid (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of 9.b Packet Pg. 326 Attachment: PD-Order COVID19 Resistant Vehicles-Fairview Bid (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of 9.b Packet Pg. 327 Attachment: PD-Order COVID19 Resistant Vehicles-Fairview Bid (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of 9.b Packet Pg. 328 Attachment: PD-Order COVID19 Resistant Vehicles-Fairview Bid (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of 9.b Packet Pg. 329 Attachment: PD-Order COVID19 Resistant Vehicles-Fairview Bid (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of 9.b Packet Pg. 330 Attachment: PD-Order COVID19 Resistant Vehicles-Fairview Bid (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of 9.b Packet Pg. 331 Attachment: PD-Order COVID19 Resistant Vehicles-Fairview Bid (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of 9.b Packet Pg. 332 Attachment: PD-Order COVID19 Resistant Vehicles-Fairview Bid (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of 9.b Packet Pg. 333 Attachment: PD-Order COVID19 Resistant Vehicles-Fairview Bid (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of 9.b Packet Pg. 334 Attachment: PD-Order COVID19 Resistant Vehicles-Fairview Bid (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of 9.b Packet Pg. 335 Attachment: PD-Order COVID19 Resistant Vehicles-Fairview Bid (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of 9.b Packet Pg. 336 Attachment: PD-Order COVID19 Resistant Vehicles-Fairview Bid (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of 9.b Packet Pg. 337 Attachment: PD-Order COVID19 Resistant Vehicles-Fairview Bid (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of 9.b Packet Pg. 338 Attachment: PD-Order COVID19 Resistant Vehicles-Fairview Bid (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of 9.b Packet Pg. 339 Attachment: PD-Order COVID19 Resistant Vehicles-Fairview Bid (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of 9.b Packet Pg. 340 Attachment: PD-Order COVID19 Resistant Vehicles-Fairview Bid (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of 9.b Packet Pg. 341 Attachment: PD-Order COVID19 Resistant Vehicles-Fairview Bid (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of 9.b Packet Pg. 342 Attachment: PD-Order COVID19 Resistant Vehicles-Fairview Bid (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of 9.b Packet Pg. 343 Attachment: PD-Order COVID19 Resistant Vehicles-Fairview Bid (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of 9.b Packet Pg. 344 Attachment: PD-Order COVID19 Resistant Vehicles-Fairview Bid (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of 9.b Packet Pg. 345 Attachment: PD-Order COVID19 Resistant Vehicles-Fairview Bid (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of 9.b Packet Pg. 346 Attachment: PD-Order COVID19 Resistant Vehicles-Fairview Bid (6862 : Resolution to Issue PO to Fairview Ford Sales for the Purchase of 9.cPacket Pg. 347Attachment: PD-Order COVID19 Resistant Vehicles-Fairview Extended Warranty (6862 : Resolution to Issue PO to Fairview Ford Sales for the Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: August 19, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By: Edelia Eveland, Director of Human Resources Subject: Professional Services Agreement for Workers' Compensation Legal Services Recommendation Adopt Resolution No. 2020-203 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute a Professional Services Agreement between Goldman, Magdalin & Krikes LLP and the City of San Bernardino for workers’ compensation legal services. Background On September 8, 2015, the Mayor and City Council adopted Resolution No. 2015 -198 authorizing the execution of a Professional Servi ces Agreement between Goldman, Magdalin and Krikes LLP (GMK) and the City of San Bernardino in the amount of $300,000 for workers’ compensation legal services. On September 5, 2018, the Mayor and City Council authorized the City Manager to execute the amended and restated Professional Services Agreement between GMK and the City of San Bernardino in the amount of $300,000 for workers’ compensation legal services. GMK has demonstrated effective workers’ compensation legal services by strategizing cost savings opportunities through claim settlements and comprehensive claim management review techniques. Additional services included the below benefits: Detailed review of each case to devise a strategic plan to fit the claim and organizational goals Reduce the City’s, including the San Bernardino Municipal Water Department, exposure in the most professional, reasonable and expeditious manner with each claim GMK staff includes highly skilled, experienced and trained attorneys, including lien resolution specialists GMK is a statewide law firm handling cases in all California Workers’ Compensation Appeals Board (WCAB) venues GMK’s staff includes experts in: workers’ compensation law, subrogation, lien resolution, mediation, defense of 132(a) discrimination, public entities and 10 Packet Pg. 348 6844 Page 2 disability retirement The City’s current contract with GMK is expiring and all contract extensions have been exhausted. An interagency agreement was utilized for the selection of GMK for workers’ compensation legal services, in compliance with Chapter 3.04.010(b)2 of the San Bernardino Municipal Code. This option allows the City to "piggyback" on an existing public agency agreement as long as that agency conducted a competitive bid process. A request for proposals (RFP) was requested by the City of Beverly Hills in July 2019 for similar legal services. The City of Beverly Hills conducted a formal competitive selection process, including a thorough evaluation by their staff. GMK was selected as the most qualified consultant and a contract was awarded in February 2020. Discussion GMK provides workers’ compensation legal services. The proposed agreement will support the City, including its Water Department, by providing strategic workers’ compensation claim handling to reduce exposure and expenses efficiently and effectively. GMK’s scope of services includes: Review and/prepare reports, resolutions, orders, agreements, forms, and documents required for Workers’ Compensation matters Research and interpret Workers’ Compensation laws, court decisions and other legal authorities in order to prepare recommendations Provide clear and concise legal advice and consultation on an as needed basis as requested and required Prepare, review and revise staff documents, including, but not limited to initiation of memorandums concerning legal issues on Workers’ Compensation Claims and recommended negotiated claim settlements Attend City Council closed session meetings to present settlement recommendations on claims Make appearances at Workers’ Compensation Appeals Board (WCAB) Attend required meetings with the City Council as requested Provide related Workers’ Compensation training to both the City and Water Department staff Experts/knowledge in temporary disability, permanent disability - indemnity and rating, industrial disability/causation, medical consultation, rehabilitation/SJDB Voucher, Agreed Medical Examiner (AME), Panel Qualified Medical Examiner (PQME) and case settlement. 2020-2025 Key Strategic Targets and Goals The proposed Professional Services Agreement with GMK aligns with Key Target No. 1: Financial Stability. GMK will provide Workers’ Compensation legal services to the City, including the San Bernardino Municipal Water Department , which will help minimize risk and litigation exposure. 10 Packet Pg. 349 6844 Page 3 Fiscal Impact The financial impact to the City for FY 2020/21 is an annual amount not to exceed $260,000 for the City and $65,000 for the Water Department. There is sufficient funding for the City’s expenses in the FY 2020/21 Adopted Budget in account number 678-110- 0057-5503. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2020-203, authorizing the City Manager to execute a Professional Services Agreement between Goldman, Magdalin & Krikes LLP and the City of San Bernardino for workers’ compensation legal services. Attachments Attachment 1 Resolution 2020-203; Exhibit A: Professional Services Agreement Ward: N/A Synopsis of Previous Council Actions: September 11, 2015 The Mayor and City Council adopted Resolution No. 2015- 198, approving an agreement with GMK. September 9, 2018 The Mayor and City Council approved the amended and restated professional services agreement with GMK. 10 Packet Pg. 350 RESOLUTION NO. 2020-203 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT BETWEEN GOLDMAN, MAGDALIN & KRIKES LLP (GMK) AND THE CITY OF SAN BERNARDINO FOR WORKERS’ COMPENSATION LEGAL SERVICES WHEREAS, on September 8, 2015, the Mayor and City Council adopted Resolution No. 2015-198 authorizing the execution of a Professional Services Agreement with Goldman, Magdalin & Krikes LLP (GMK) in the amount of $300,000 for workers’ compensation legal services; and WHEREAS, on September 5, 2018, the Mayor and City Council authorized the City Manager to execute the amended and restated Professional Services Agreement between GMK and the City of San Bernardino in the amount of $300,000 for workers’ compensation legal services; and WHEREAS, GMK has demonstrated effective workers’ compensation legal services by strategizing cost savings opportunities through claim settlements and comprehensive claim management review techniques; and WHEREAS, in compliance with Chapter 3.04.010(b)2 of the San Bernardino Municipal Code, an interagency agreement was utilized for the selection of GMK for workers’ compensation legal services. 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 City Manager is hereby authorized and directed to execute a professional services agreement between GMK and the City of San Bernardino, a copy of which is attached hereto marked Exhibit “A” and incorporated herein. SECTION 3. The Director of Finance or designee is hereby authorized to issue a purchase order to GMK for a total amount not to exceed $260,000. SECTION 4. 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. 10.a Packet Pg. 351 Attachment: HR.PSA WC Legal Services - Resolution (6844 : Professional Services Agreement for Workers' Compensation Legal Services) Resolution No. 2020-203 SECTION 5. 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 6. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the Acting City Clerk this ___ day of __________ 2020. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney 10.a Packet Pg. 352 Attachment: HR.PSA WC Legal Services - Resolution (6844 : Professional Services Agreement for Workers' Compensation Legal Services) Resolution No. 2020-203 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the 19th day of August 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk 10.a Packet Pg. 353 Attachment: HR.PSA WC Legal Services - Resolution (6844 : Professional Services Agreement for Workers' Compensation Legal Services) EXHIBIT A 1 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND GOLDMAN, MAGDALIN & KRIKES LLC (GMK) This Agreement is made and entered into as of September 8, 2020 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 Goldman, Magdalin & Krikes (GMK) a limited liability corporation with its principal place of business at 1961 North C Street, #5404, Oxnard, CA 93031 (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 services for the following project: Workers’ compensation legal services (hereinafter referred to as “the Project”). 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. Incorporation 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 no City employee will provide any services under this Agreement. 4. Compensation. a. Subject to paragraph 4(b) below, the City shall pay GMK an amount not to exceed $260,000 for services provided to the City and $65,000 for services provided to the City’s Water Department annually. 10.b Packet Pg. 354 Attachment: HR.PSA WC Legal Services - Exhibit A (6844 : Professional Services Agreement for Workers' Compensation Legal Services) 2 GMK will be paid at the hourly rates set forth below: Attorney – Partner $165 per hour Attorney - Associate $155 per hour Lien Resolution Specialist $115 per hour Paralegal/Admin. Assistant $85 per hour b. In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of $260,000.00 for services provided to the City and $65,000 for services provided to the City’s Water Department annually. 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. 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 chan ges 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 September 8, 2020 and continue through September 8, 2021, with the option of three (3), one (1) year extensions, 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 times during the contract period and for four (4) years from the date of final payment under the contract for inspection by City. 10.b Packet Pg. 355 Attachment: HR.PSA WC Legal Services - Exhibit A (6844 : Professional Services Agreement for Workers' Compensation Legal Services) 3 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/OSHA 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 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 will constitute a conflict of interest with the City. 13. City 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. 10.b Packet Pg. 356 Attachment: HR.PSA WC Legal Services - Exhibit A (6844 : Professional Services Agreement for Workers' Compensation Legal Services) 4 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 Liability (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. (iii) Commercial General Liability Insurance must include coverage for the following: (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 10.b Packet Pg. 357 Attachment: HR.PSA WC Legal Services - Exhibit A (6844 : Professional Services Agreement for Workers' Compensation Legal Services) 5 (6) Explosion, Collapse and Underground (UCX) exclusion deleted (7) Contractual Liability with respect to this Contract (8) Broad Form Property Damage (9) Independent Consultants Coverage (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 Liability (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/Employer’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. 10.b Packet Pg. 358 Attachment: HR.PSA WC Legal Services - Exhibit A (6844 : Professional Services Agreement for Workers' Compensation Legal Services) 6 (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. e. Professional Liability (Errors and Omissions) 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 Policy Limits Required (i) The following insurance limits are required for the Agreement: Combined Single Limit Commercial General Liability $1,000,000 per occurrence/ $2,000,000 aggregate for bodily injury, personal injury, and property damage Automobile Liability $1,000,000 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. 10.b Packet Pg. 359 Attachment: HR.PSA WC Legal Services - Exhibit A (6844 : Professional Services Agreement for Workers' Compensation Legal Services) 7 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 Required (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 l iability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the 10.b Packet Pg. 360 Attachment: HR.PSA WC Legal Services - Exhibit A (6844 : Professional Services Agreement for Workers' Compensation Legal Services) 8 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. Qualifying 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 A:VII 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 (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 Ci ty will withhold amounts sufficient to pay premium from Consultant payments. 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. 10.b Packet Pg. 361 Attachment: HR.PSA WC Legal Services - Exhibit A (6844 : Professional Services Agreement for Workers' Compensation Legal Services) 9 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, expert witness fees and attorneys’ fees and other related 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 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 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 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 seq. and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, Consultant agrees to fully 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 10.b Packet Pg. 362 Attachment: HR.PSA WC Legal Services - Exhibit A (6844 : Professional Services Agreement for Workers' Compensation Legal Services) 10 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 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 ten (10) 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 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 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 thirty (30) calendar days’ written notice to City only in the event of substantial failure by City to perform in accordance with the terms of this Agreement through no fault of Consultant. 22. 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 he reunder or the enforcement of any of the terms, 10.b Packet Pg. 363 Attachment: HR.PSA WC Legal Services - Exhibit A (6844 : Professional Services Agreement for Workers' Compensation Legal Services) 11 conditions, or provisions hereof. The costs, salary, 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,” 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 Richard Goldman, Founding Partner 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: City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: Edelia Eveland Director of Human Resources CONSULTANT: Goldman, Magdalin & Krikes, LLC Richard Goldman Founding Partner, Goldman, Magdalin & Krikes 1961 North C Street, #5404 Oxnard, CA 93031 10.b Packet Pg. 364 Attachment: HR.PSA WC Legal Services - Exhibit A (6844 : Professional Services Agreement for Workers' Compensation Legal Services) 12 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 Agreement. 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. Severability. 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 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. 10.b Packet Pg. 365 Attachment: HR.PSA WC Legal Services - Exhibit A (6844 : Professional Services Agreement for Workers' Compensation Legal Services) 13 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. City’s Right 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. 42. 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. [SIGNATURES ON FOLLOWING PAGE] 10.b Packet Pg. 366 Attachment: HR.PSA WC Legal Services - Exhibit A (6844 : Professional Services Agreement for Workers' Compensation Legal Services) 14 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND GOLDMAN, MAGDALIN & KRIKES LLP IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. CITY OF SAN BERNARDINO Approved By: Teri Ledoux City Manager Miguel Guerrero, General Manager San Bernardino Municipal Water District Approved as to Form: Sonia Carvalho City Attorney Attested By: Genoveva Rocha, CMC Acting City Clerk CONSULTANT Signature Name Title 10.b Packet Pg. 367 Attachment: HR.PSA WC Legal Services - Exhibit A (6844 : Professional Services Agreement for Workers' Compensation Legal Services) 15 EXHIBIT A Scope of Work GMK shall represent and defend the City of San Bernardino, including the San Bernardino Municipal Water Department, in Workers’ Compensation Claims. In doing so, GMK shall perform the following tasks:  Review and/prepare of reports, resolutions, orders, agreements, forms, documents required for Workers’ Compensation matters.  Research and interpret Workers’ Compensation laws, court decisions and other legal authorities in order to prepare recommendations.  Provide clear and concise legal advice and consultation on an as needed basis as requested and required.  Prepare, review and revise staff documents, including, but not limited to initiation of memorandums concerning legal issues on Workers’ Compensation Claims and recommended negotiated claim settlements.  Attend City Council closed session meetings to present settlement recommendations on claims.  Make appearances at Workers’ Compensation Appeals Board (WCAB)  Attend required meetings with the City Council as requested.  Provide related workers’ compensation training to City and Water Department staff.  Experts/knowledge in temporary disability, permanent disability – indemnity and rating, industrial disability/causation, medical consultation, rehabilitation/SJDB Voucher, Agreed Medical Examiner (AME) and Panel Qualified Medical Examiner (PQME) and case settlement. 10.b Packet Pg. 368 Attachment: HR.PSA WC Legal Services - Exhibit A (6844 : Professional Services Agreement for Workers' Compensation Legal Services) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: August 19, 2020 To: Honorable Mayor and City Council Members From: Rebekah Kramer, Assistant City Manager Subject: First Amendment to the PSA Between the City of San Bernardino and Joe Gonsalves & Son Recommendation Adopt Resolution No. 2020-204 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute the First Amendment to the Professional Services Agreement between the City of San Bernardino and Joe A. Gonsalves & Son for State Legislative Advocacy Services. Background In order to be more responsive and to pursue the City’s goals and objectives by working with other agencies, the Mayor and City Council ad opted a legislative and regulatory platform and policy on April 18, 2018, through Resolution No. 2018 -117 and the 2020 legislative platform was adopted on February 19, 2020. The overall goal of the program is to monitor and act on prospective legislation throughout the year that will impact city operations. Engaging a legislative advocacy firm at the state level enhances staff’s ability to identify and provide information on new legislation and regulatory policies that may affect the City’s interests and lobbying for or against proposals on behalf of the City. In keeping with the City’s standard purchasing procedure, on July 1, 2019, staff issued requests for proposals (RFPs) seeking qualified consultants to assist the City in state legislative advocacy services. Following a detailed analysis of each proposal, including an evaluation of firm qualifications, staffing, understanding of the City and the scope of work, cost, and references, Joe A. Gonsalves & Son was selected as the top firm to provide state advocacy services for the City. Discussion On October 16, 2019, Resolution No. 2019-312 was adopted by the Mayor and City Council approving an agreement with Joe A. Gonsalves & Son to provide state advocacy services for a period of 12 months. During this timeframe, Joe A. Gonsalves & Son has assisted the City with a number of state legislative advocacy issues including efforts to secure funding for the replacement of the Mount Vernon Bridge. Anticipating the need for continued legislative advocacy support at the state level beyond FY 2019/20, funding was included for the continuation of the agreement with Joe A. Gonsalves & Son in the adopted FY 2020/21 operating budget. Given that the City 11 Packet Pg. 369 6848 Page 2 conducted a comprehensive RFP processes seeking the best qualified firm(s) to provide legislative advocacy services less within the last year it is recommended that the City extend the term of the existing agreement with Joe A. Gonsalves & Son for an additional two-year period. The existing agreement allows the City to terminate the agreement at any time with 10 days' written notice. 2020-2025 Key Strategic Targets and Goals Use of state advocacy firms aligns with all four of the City’s key strategic targets and goals. This firm will aid City staff in working with state and/or regional governments to ensure San Bernardino receives its fair share of resources, while maintaining close working relationships with governmental agencies. Fiscal Impact The funding required to support state legislative advocacy service s totaling $50,000 was included in the adopted FY 2020/21 operating budget (Account #001-090-0053-5502). Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2020-204, authorizing the City Manager to execute the First Amendment to the Professional Services Agreement between the City of San Bernardino and Joe A. Gonsalves & Son for State Legislative Advocacy Services. Attachments Attachment 1 Resolution No. 2020-204; Exhibit A - First Amendment to the Professional Services Agreement between the City of San Bernardino and Joe A. Gonsalves & Son for State Legislative Advocacy Services Attachment 2 Original Agreement dated October 7, 2019 Ward: All Synopsis of Previous Council Actions: October 16, 2019 Mayor and City Council adopted Resolution No. 2019-312, approving the award of a professional services agreement between the City of San Bernardino and Joe A. Gonsalves & Son for state legislative advocacy services 11 Packet Pg. 370 RESOLUTION NO. 2020-204 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 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND JOE A. GONSALVES & SON FOR STATE LEGISLATIVE ADVOCACY SERVICES WHEREAS, the Adopted FY 2020/21 Operating Budget includes $50,000 for legislative advocacy services; and WHEREAS, following consideration of the recommendations presented by Staff, the City Council adopted Resolution No. 2019-312 approving a professional services agreement with Joe A. Gonsalves & Son for state legislative advocacy for a period of 12 months; and WHEREAS, the City has a continued need for state legislative advocacy services; and WHEREAS, the City will not rely on the advocates' professional judgement to make final decisions, professional liability is not required for legislative advocacy services. 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 City Manager or designee is hereby authorized to execute the first amendment to the professional services agreement, attached hereto and incorporated herein as Exhibit “A”, with Joe A. Gonsalves & Son, for state legislative advocacy services. SECTION 3. 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 4. 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 City Council and signed by the Mayor and attested by the Acting City Clerk this ___ day of __________ 2020. 11.a Packet Pg. 371 Attachment: Resolution (6848 : First Amendment to the PSA Between the City of San Bernardino and Joe Gonsalves & Son) Resolution No. 2020-204 John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney 11.a Packet Pg. 372 Attachment: Resolution (6848 : First Amendment to the PSA Between the City of San Bernardino and Joe Gonsalves & Son) Resolution No. 2020-204 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk 11.a Packet Pg. 373 Attachment: Resolution (6848 : First Amendment to the PSA Between the City of San Bernardino and Joe Gonsalves & Son) FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND JOE A. GONSALVES & SON This First Amendment to the Professional Services Agreement (“First Amendment”) is made and entered into by and between the City of San Bernardino (“City”) and Joe A. Gonsalves & Son (“Consultant”) as of the last date set forth below. City and Consultant are collectively referred to herein as the “Parties.” RECITALS A. The City and Consultant entered into that certain Professional Services Agreement on October 7, 2019, for State legislative advocacy services (“Original Agreement”). B. The Parties now wish to amend the Original Agreement to extend the term and increase the not-to-exceed compensation to continue the services. NOW, THEREFORE, the Parties agree as follows: 1. Section 6 of the Original Agreement is hereby amended to extend the term of the agreement from 12 months to 36 months replacing the Term end date of October 6, 2020 with October 6, 2022.” 2. Section 4.b. of the Original Agreement is hereby amended to replace the not-to- exceed sum of $50,000 with the not-to-exceed sum of $150,000 or $4,166.67 per month. 3. Except as modified by this First Amendment, all provisions of the Original Agreement shall remain in full force and effect for the term thereof. 4. This First Amendment may be executed in counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument. IN WITNESS WHEREOF, the Parties have executed this First Amendment as of the date last stated below. Dated: August __, 2020 JOE A GONSALVES & SON By: Jason A. Gonsalves Its: Partner/Advocate Dated: August __, 2020 CITY OF SAN BERNARDINO By: Teri Ledoux Its: City Manager 11.b Packet Pg. 374 Attachment: San Bernardino - First Amendment to PSA with Joe A Gonsalves & Son (6848 : First Amendment to the PSA Between the City of 11.c Packet Pg. 375 Attachment: Joe A Gonsalves Son Agreement (Executioned) (6848 : First Amendment to the PSA Between the City of San Bernardino and Joe 11.c Packet Pg. 376 Attachment: Joe A Gonsalves Son Agreement (Executioned) (6848 : First Amendment to the PSA Between the City of San Bernardino and Joe 11.c Packet Pg. 377 Attachment: Joe A Gonsalves Son Agreement (Executioned) (6848 : First Amendment to the PSA Between the City of San Bernardino and Joe 11.c Packet Pg. 378 Attachment: Joe A Gonsalves Son Agreement (Executioned) (6848 : First Amendment to the PSA Between the City of San Bernardino and Joe 11.c Packet Pg. 379 Attachment: Joe A Gonsalves Son Agreement (Executioned) (6848 : First Amendment to the PSA Between the City of San Bernardino and Joe 11.c Packet Pg. 380 Attachment: Joe A Gonsalves Son Agreement (Executioned) (6848 : First Amendment to the PSA Between the City of San Bernardino and Joe 11.c Packet Pg. 381 Attachment: Joe A Gonsalves Son Agreement (Executioned) (6848 : First Amendment to the PSA Between the City of San Bernardino and Joe 11.c Packet Pg. 382 Attachment: Joe A Gonsalves Son Agreement (Executioned) (6848 : First Amendment to the PSA Between the City of San Bernardino and Joe 11.c Packet Pg. 383 Attachment: Joe A Gonsalves Son Agreement (Executioned) (6848 : First Amendment to the PSA Between the City of San Bernardino and Joe 11.c Packet Pg. 384 Attachment: Joe A Gonsalves Son Agreement (Executioned) (6848 : First Amendment to the PSA Between the City of San Bernardino and Joe 11.c Packet Pg. 385 Attachment: Joe A Gonsalves Son Agreement (Executioned) (6848 : First Amendment to the PSA Between the City of San Bernardino and Joe 11.c Packet Pg. 386 Attachment: Joe A Gonsalves Son Agreement (Executioned) (6848 : First Amendment to the PSA Between the City of San Bernardino and Joe 11.c Packet Pg. 387 Attachment: Joe A Gonsalves Son Agreement (Executioned) (6848 : First Amendment to the PSA Between the City of San Bernardino and Joe 11.c Packet Pg. 388 Attachment: Joe A Gonsalves Son Agreement (Executioned) (6848 : First Amendment to the PSA Between the City of San Bernardino and Joe 11.c Packet Pg. 389 Attachment: Joe A Gonsalves Son Agreement (Executioned) (6848 : First Amendment to the PSA Between the City of San Bernardino and Joe Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: August 19, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Michael Huntley, Director of Community & Economic Development Subject: Resolution Approving PSA with Matt Baburyan for Real Property at 757 & 761 N Mt. Vernon Avenue Recommendation Adopt Resolution No. 2020-199 of the Mayor and City Council of the City of San Bernardino, California, acting as the Successor Agency to the Redevelopment Agency of the City of San Bernardino, approving the Purchase and Sale Agreement and Joint Escrow Instructions between the Successor Agency and Mat Baburyan, Trustee of the Mat Baburyan Revocable Trust, dated February 21, 2017, with respect to the real property located at 575 and 761 N. Mt. Vernon Avenue, San Bernardino, California (APNs 0139-291-60 and 0139-291-61), and approve certain related actions. Background Pursuant to Health and Safety Code (“HSC”) § 34172 (a) (1), the Redevelopment Agency of the City of San Bernardino was dissolved on February 1, 2012. Consistent with the provisions of the HSC, on January 9, 2012 , the Mayor and City Council of the City of San Bernardino elected to serve in the capacity of the Successor Agency to th e Redevelopment Agency of the City of San Bernardino (“Successor Agency”). The Oversight Board for the Successor Agency (“Oversight Board”) was established pursuant to HSC § 34179 to assist in the wind-down of the dissolved redevelopment agency through June 30, 2018. Consistent with HSC § 34179 (j), and by operation of California Law, the Oversight Board dissolved on June 30, 2018 and its responsibilities with respect to San Bernardino County-based successor agencies were transferred to the Countywide Oversight Board (“CWOB”) on July 1, 2018. Pursuant to HSC § 34191.5 (c), the Successor Agency prepared and filed with the California Department of Finance ("DOF") its Oversight Board-approved Long-Range Property Management Plan (“LRPMP”). On December 31, 2015, DOF 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 of the HSC relating to the disposition and use of all the real property asse ts of the former redevelopment agency. The approved LRPMP, which addresses the disposition and use of the real property assets then held by the Successor Agency, included 230 parcels of land grouped into forty-six (46) separate sites, eighteen (18) of which were 12 Packet Pg. 390 6858 Page 2 designated as government use sites, seven (7) of which are designated as future development sites and twenty-one (21) of which were designated to be sold. The Successor Agency is the owner of that certain real property located at 757 and 761 N. Mt. Vernon Avenue, San Bernardino, California (APNs 0139-291-60 and 0139-291-61) (“Property”). Within the LRPMP, the Property is: (i) identified as Site No. 42; (ii) described as an approximately 0.72-acre vacant lot zoned Commercial; (iii) designated for sale; and (iv) more fully described within Exhibit "A" attached to the Resolution, which is an excerpt from the LRPMP. On March 6, 2017, the Successor Agency Board approved the original Property Disposition Strategy, which among other things, authorized a competitive process that would result in listing for sale of 18 real property sites with a real estate broker (two of which are owned by the City of San Bernardino). On August 16, 2017, the Successor Agency Board approved the “Amended Property Disposition Strategy” that: (i) reduced the number of real property sites to be listed with a real estate broker from 18 to 16 (one of which is owned by the City of San Bernardino); (ii) provided for an alternate method of real property disposition for the two real p roperty sites removed from the group to be listed with a real estate broker; (iii) where applicable, provided a current status update on completed and pending real property transfers; and (iv) established an Escrow and Title Administrative Management Fee to allow the City to recover a portion of the cost of its services with respect to the management of the sale of real property assets. Consistent with the amended Property Disposition Strategy, on October 18, 2017, the Successor Agency approved an agreement with Keller Williams (“KW Agreement”) to list and sell 15 real property sites of the Successor Agency (the City entered into a separate agreement with Keller Williams for its single real property site). The Property is included within the KW Agreement. As a part of the KW Agreement, KW is required to prepare of a Broker’s Opinion of Value (“BOV”) for each property that is to be sold. Based on past practice, DOF has acknowledged that BOVs are an acceptable method and basis for confirming that the value of real property being sold is fair and reasonable. Discussion In response to the listing, KW received, thoroughly reviewed, and vetted one (1) offer to purchase the Property. On July 1, 2020, Mat Baburyan, trustee of the Mat Baburyan Revocable Trust, dated February 21, 2017 (“Mr. Baburyan”), offered to purchase the Property for $133,000 (“Purchase Price”) (a copy of the offer is attached to the Resolution as Exhibit “B”). KW has confirmed that Mr. Baburyan is a credible buyer capable of purchasing the Property and has recommended that the Successor Agency consider Mr. Baburyan’s purchase offer. On July 1, 2020, KW submitted its BOV, indicating its opinion that the market value of the Property is $133,000 (“BOV Market Value”). In consideration that the Purchase Price is approximately equivalent to the BOV Market Value, it may be concluded that the purchase price offered by Mr. Baburyan for the Property is fair and reasonable, as more fully described within the BOV, a copy of which is attached to the Resolution as Exhibit “C.” 12 Packet Pg. 391 6858 Page 3 The Purchase and Sale Agreement and Joint Escrow Instructions (“Purchase and Sale Agreement”) between the Successor Agency and Mr. Baburyan with respect to the Property, is attached to the Resolution as Exhibit “D” and to this Sta ff Report as Attachment “2.” Consistent with the provisions of the HSC and the LRPMP, the effectiveness of the Purchase and Sale Agreement is subject to the approval of the CWOB and review by DOF. The Successor Agency finds that the Resolution is not s ubject 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. It should be noted that with the sale of this Property, the Successor Agency will have completed the disposition of its LRPMP properties designated to be sold. 2020-2025 Key Strategic Targets and Goals Approval of the Purchase and Sale Agreement Property aligns with Key Target No. 1: Financial Stability. The sale of this 0.72-acre commercial property will lead to the future development of a commercial establishment that will generate new sales tax revenue to the City. Fiscal Impact No fiscal impact to the City. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, acting as the Successor Agency to the Redevelopment Agency of the City of San Bernardino, adopt Resolution No. 2020-199 approving the Purchase and Sale Agreement and Joint Escrow Instructions between the Successor Agency and Mat Baburyan, Trustee of the Mat Baburyan Revocable Trust, dated February 21, 2017, with respect to the real property located at 575 and 761 N. Mt. Vernon Avenue, San Bernardino, California (APNs 0139-291-60 and 0139-291-61), and approve certain related actions. Attachment Attachment 1 Resolution 2020-199; Exhibit “A” - LRPMP Excerpt Narrative for Site No. 42; Exhibit “B” - Offer to Purchase Property; Exhibit “C” - Broker’s Opinion of Value; Exhibit “D” - Purchase and Sale Agreement and Joint Escrow Instructions Attachment 2 Original Purchase and Sale Agreement Ward: 1 Synopsis of Previous Council Actions: August 5, 2020 The Mayor and City Council, acting as the Successor Agency, 12 Packet Pg. 392 6858 Page 4 considered an offer to purchase the Property and authorized staff to continue negotiations with Mat Baburyan, trustee of the Mat Baburyan Revocable Trust, dated February 21, 2017. 12 Packet Pg. 393 RESOLUTION NO. 2020-199 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, APPROVING THE PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS BETWEEN THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND MAT BABURYAN, TRUSTEE OF THE MAT BABURYAN REVOCABLE TRUST, DATED FEBRUARY 21, 2017, WITH RESPECT TO THE REAL PROPERTY LOCATED AT 757 AND 761 NORTH MT. VERNON AVENUE, SAN BERNARDINO, CALIFORNIA (APNS 0139-291-60 AND 0139-291-61), AND APPROVING CERTAIN RELATED ACTIONS WHEREAS, pursuant to Health and Safety Code (“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, on January 9, 2012, the Mayor and City Council of the City of San Bernardino elected to serve in the capacity of the Successor Agency to the Redevelopment Agency of the City of San Bernardino (“Successor Agency”); and WHEREAS, the Oversight Board for the Successor Agency (“Oversight Board”) has been established pursuant to HSC § 34179 to assist in the wind-down of the dissolved redevelopment agency through June 30, 2018; and WHEREAS, consistent with HSC § 34179 (j), by operation of California Law, the Oversight Board was dissolved on June 30, 2018 and Oversight Board responsibilities with respect to San Bernardino County-based successor agencies were transferred to the County-Wide Oversight Board (“CWOB”) on July 1, 2018; and WHEREAS, pursuant to HSC § 34191.5 (c), the Successor Agency prepared and filed with the California Department of Finance ("DOF") its Oversight Board-approved Long-Range Property Management Plan (“LRPMP”); and WHEREAS, in its December 31, 2015 letter, DOF 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 WHEREAS, the approved LRPMP, which addresses the disposition and use of the real property assets held by the Successor Agency, includes 230 parcels of land grouped into forty- six (46) separate sites, eighteen (18) of which were designated as government use sites, seven 12.a Packet Pg. 394 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution.Attachment 1 (6858 : Resolution Approving PSA with Resolution No. 2020-199 2 (7) of which are designated as future development sites and twenty-one (21) of which were designated to be sold; and WHEREAS, the Successor Agency is the owner of that certain real property located at 757 and 761 North Mt. Vernon Avenue, San Bernardino, California (APNs 0139-291-60 and 0139-291-61) (“Property”); and WHEREAS, within the LRPMP, the Property is: (i) identified as Site No. 42; (ii) described as an approximately 0.72-acre vacant lot zoned Commercial; (iii) designated for sale; and (iv) more fully described in Exhibit "A" attached hereto, which is an excerpt from the LRPMP; and WHEREAS, on March 6, 2017, the Successor Agency Board approved the original Property Disposition Strategy, which among other things, authorized a competitive process that would result in listing for sale of 18 real property sites with a real estate broker (two of which are owned by the City of San Bernardino); and WHEREAS, on August 16, 2017, the Successor Agency Board approved the “Amended Property Disposition Strategy,” which: (i) reduced the number of real property sites to be listed with a real estate broker from 18 to 16 (one of which is owned by the City of San Bernardino); (ii) provided for an alternate method of real property disposition for the two real property sites removed from the group to be listed with a real estate broker; (iii) where applicable, provided a current status update on completed and pending real property transfers; and (iv) established an Escrow and Title Administrative Management Fee to allow the City to recover a portion of the cost of its services with respect to the management of the sale of real property assets; and WHEREAS, consistent with the amended Property Disposition Strategy, on October 18, 2017, the Successor Agency approved an agreement with Keller Williams (“KW Agreement”) to list and sell 15 real property sites of the Successor Agency (the City entered into a separate agreement with Keller Williams for its single real property site); and WHEREAS, the Property is included within the KW Agreement; and WHEREAS, as a part of the KW Agreement, KW is required to prepare of a Broker’s Opinion of Value (“BOV”) for each Successor Agency property that is to be sold; and WHEREAS, based on past practice, the DOF has acknowledged that BOVs are an acceptable method and basis for confirming that the value of real property being sold is fair and reasonable; and WHEREAS, in response to the listing, KW received, thoroughly reviewed and vetted one (1) offer to purchase the Property; and WHEREAS, on July 1, 2020, Mat Baburyan, trustee of the Mat Baburyan Revocable Trust, dated February 21, 2017 (“Mr. Baburyan”), offered to purchase the Property for $133,000 (“Purchase Price”) (a copy of the offer is attached to this Resolution as Exhibit “B”); and 12.a Packet Pg. 395 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution.Attachment 1 (6858 : Resolution Approving PSA with Resolution No. 2020-199 3 WHEREAS, KW has confirmed that Mr. Baburyan is a credible buyer capable of purchasing the Property and has recommended that the Successor Agency consider Mr. Baburyan’s purchase offer; and WHEREAS, on July 1, 2020, KW submitted its BOV, indicating its opinion that the market value of the Property is $133,000 (“BOV Market Value”); and WHEREAS, in consideration that the Purchase Price equals BOV Market Value, it may be concluded that the purchase price offered by Mr. Baburyan for the Property is fair and reasonable, as more fully described within the BOV, a copy of which is attached to this Resolution as Exhibit “C”; and WHEREAS, this Resolution will approve the Purchase and Sale Agreement and Joint Escrow Instructions (“Purchase and Sale Agreement”) between the Successor Agency and Mr. Baburyan with respect to the Property, a copy of which is attached to this Resolution as Exhibit “D,” and authorize certain related actions; and WHEREAS, consistent with the provisions of the HSC and the LRPMP, the effectiveness of the Purchase and Sale Agreement is subject to the approval of the CWOB and review by DOF; and WHEREAS, all of the prerequisites with respect to the approval of this Resolution have been met. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY 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 Purchase Price for the Property is determined to be fair and reasonable. SECTION 3. The Purchase and Sale Agreement between the Successor Agency and Mat Baburyan, trustee of the Mat Baburyan Revocable Trust, dated February 21, 2017, for the purchase and sale of the Property, attached hereto as Exhibit “D,” is approved. SECTION 4. On behalf of the Successor Agency, the City Manager, in the capacity as Executive Director of the Successor Agency, or designee, is authorized and directed to execute the Purchase and Sale Agreement and the grand deed, the form of which is attached to the Purchase and Sale Agreement, and to take such other actions and execute such other documents as are necessary to effectuate and close the purchase and sale of the Property and as may otherwise be required to fulfill the intent of this Resolution. SECTION 5. The Successor Agency 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 12.a Packet Pg. 396 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution.Attachment 1 (6858 : Resolution Approving PSA with Resolution No. 2020-199 4 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 after its adoption and the approval of the Purchase and Sale Agreement by the Countywide Oversight Board and DOF. APPROVED and ADOPTED by the City Council acting as the Successor Agency and signed by the Mayor and attested by the Acting City Clerk this 19th day of August 2020. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney 12.a Packet Pg. 397 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution.Attachment 1 (6858 : Resolution Approving PSA with Resolution No. 2020-199 5 CERTIFICATION STATE OF CALIFORNIA) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020- , adopted at a regular meeting held on the 19th day of August 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this 19th day of August 2020. Genoveva Rocha, CMC, Acting City Clerk 12.a Packet Pg. 398 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution.Attachment 1 (6858 : Resolution Approving PSA with Successor Agency to the Redevelopment Agency of the City of San Bernardino Long-Range Property Management Plan September 2015 Amended December 2015 Site No. 42: Vacant N. Mt. Vernon Avenue Commercial Property 196 V. Property to be Sold Site No. 42 - Vacant N. Mt. Vernon Avenue Commercial Property Address: APN: 757 N. Mt. Vernon Avenue 0139-291-60 761 N. Mt. Vernon Avenue 0139-291-61 N. Mt. Vernon Avenue W. Vine Street 12.b Packet Pg. 399 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit A.Attachment 2 (6858 : Resolution Approving Successor Agency to the Redevelopment Agency of the City of San Bernardino Long-Range Property Management Plan September 2015 Amended December 2015 Site No. 42: Vacant N. Mt. Vernon Avenue Commercial Property 197 V. Property to be Sold Site No. 42 - Vacant N. Mt. Vernon Avenue Commercial Property A. Permissible Use (HSC § 34191.5 (c) (2)): Site No. 42 is the Vacant N. Mt. Vernon Avenue Commercial Property (the “Vacant Commercial Property”) and is proposed to be sold by the Successor Agency. B. Acquisition of Property (HSC § 34191.5 (c) (1) (A) and § 34191.5 (c) (1) (B)): Property records indicate that the Vacant Commercial Property was acquired by the Agency in January 2006, and carries a Book Value of $84,885. The Vacant Commercial Property was acquired by the Agency in order to meet the revitalization goals of City and the Agency to alleviate the existence and spread of physical and economic blight. The estimated current value (the “ECV”) of the Vacant Commercial Property is approximately $252,000. C. Site Information (HSC § 34191.5 (c) (1) (C)): The Vacant Commercial Property consists of two (2) parcels (APN 0139-291-60, -61) totaling 0.73 acres and located at 757 and 761 N. Mt. Vernon Avenue. The Vacant Commercial Property is zoned Commercial General (CG-3) in the 1992-Paseo Las Placitas Specific Plan (the “1992-SP”). The purpose of the CG-3 zone is to allow for local and regional serving retail, personal service, entertainment, office, and related commercial uses. D. Estimated Current Value (HSC § 34191.5 (c) (1) (D)): To determine an ECV for the Vacant Commercial Property, in January 2015, the Agency conducted a comparable sales analysis through the National Data Collective. The ECV was determined to be approximately $252,000 . Local factors were not taken into consideration in determining the ECV of this site. The ECV is only a rough estimate that was obtained from an on-line source where only comparable sales data are available. It is not possible to include environmental issues or any other special or unique factors into simple ECV calculations, as such data are not available from the source. Therefore, the actual value of the property may vary significantly from the ECV. The Successor Agency notes that in the environment of AB 1484, it may not be possible to achieve appraised values. The Successor Agency will be in charge of the process seeking to achieve successful marketing of properties, and will act with reasonable diligence. However, the constraints and environment of AB 1484 militate against maximizing prices. The actual sales prices to be realized will be a function of what a willing buyer is willing to pay under circumstances where there will be no seller financing and dispositions will be subject to Oversight Board approval. There is no reason to think that book values will be realized. E. Site Revenues (HSC § 34191.5 (c) (1) (E)): There are no site revenues generated from the Vacant Commercial Property. F. History of Environmental Contamination (HSC § 34191.5 (c) (1) (F)): There is no known history of environmental contamination.48 48 http://geotracker.waterboards.ca.gov/map/?CMD=runreport&myaddress=761+n+mt+vernon+san+bernardino 12.b Packet Pg. 400 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit A.Attachment 2 (6858 : Resolution Approving Successor Agency to the Redevelopment Agency of the City of San Bernardino Long-Range Property Management Plan September 2015 Amended December 2015 Site No. 42: Vacant N. Mt. Vernon Avenue Commercial Property 198 V. Property to be Sold Site No. 42 - Vacant N. Mt. Vernon Avenue Commercial Property G. Potential for Transit Oriented Development (TOD) and the Advancement of Planning Objectives of the Successor Agency (HSC § 34191.5 (c) (1) (G)): There is no potential for a TOD in conjunction with Vacant Commercial Property. Selling the Vacant Commercial Property advances the planning objectives of the Successor Agency and the City to develop and revitalize this area of the community through the creation of opportunities for private investment in the City. H. History of Previous Development Proposals and Activity (HSC § 34191.5 (c) (1) (H)): There is no history of previous development proposals or activities in conjunction with the Vacant Commercial Property. I. Disposition of Property: It is proposed to sell the Vacant Commercial Property in accordance with the Successor Agency’s policies and procedures for property disposition as shown in Exhibit “A” Section I. Purchase and Sale Procedures. The ECV of the Vacant Industrial Property is approximately $252,000. Date of estimated current value – January 2015 Value Basis – The ECV was determined by a comparable sales analysis using the National Data Collective subscription service. The ECV is approximately $252,000. Local factors that may affect land value were not taken into consideration. Therefore, the actual value of the property may vary greatly from the ECV. The ECV is only a planning number and should not be relied upon as a basis for actual value. Proposed sale date – TBD and subject to the Successor Agency’s implementation of its policies and procedures for property disposition as shown in Exhibit “A.” Proposed sale value – TBD and subject to a fair market appraisal conducted by a licensed appraiser. The Successor Agency notes that in the environment of AB 1484, it may not be possible to achieve appraised values. The Successor Agency will be in charge of the process seeking to achieve successful marketing of properties, and will act with reasonable diligence. However, the constraints and environment of AB 1484 militate against maximizing prices. The actual sales prices to be realized will be a function of what a willing buyer is willing to pay under circumstances where there will be no seller financing and dispositions will be subject to Oversight Board approval. There is no reason to think that book values will be realized. 12.b Packet Pg. 401 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit A.Attachment 2 (6858 : Resolution Approving Successor Agency to the Redevelopment Agency of the City of San Bernardino Long-Range Property Management Plan September 2015 Amended December 2015 Site No. 42: Vacant N. Mt. Vernon Avenue Commercial Property 199 V. Property to be Sold Site No. 42 - Vacant N. Mt. Vernon Avenue Commercial Property J. Implementation of the Long-Range Property Management Plan: Following the approval of the LRPMP by the DOF, the Successor Agency will implement the LRPMP. For properties to be sold, implementation will include distribution of any land sales proceeds for enforceable obligations and/or distributed as property tax to the taxing entities. Due to the vagaries associated with the sale of land, such as uncertainties concerning the timing of sale and the price that would be realized, it is not feasible to precisely state in the LRPMP how the funds will be used. In that regard, once an agreement is reached with respect to the purchase and sale of a property, the agreement will be presented to the Oversight Board for concurrence. The Oversight Board’s approval will be evidenced by a resolution that will be submitted to DOF and, per the HSC, is subject to DOF’s review. That resolution will include or refer to a staff report which describes with greater particularity, once more facts are known, how the proceeds of sale will be distributed. As noted in Section I – Introduction of the LRPMP, the LRPMP provides that proceeds of the sale may be used for enforceable obligations and/or distributed as property tax to the taxing entities through the County Auditor-Controller. The need to retain some or all of the proceeds of sale for enforceable obligations will depend on whether there is a short-fall in RPTTF in the ROPS cycle during which the escrow is anticipated to close. If a short-fall were to occur in the RPTTF at that time, then all or a portion of the sale proceeds should be used to fulfill an enforceable obligation with any remaining sale proceeds then distributed as property tax to the taxing entities through the County Auditor-Controller. If there is not a short-fall in RPTTF at the time of close of escrow, then land sale proceeds would be distributed as property tax to the taxing entities through the County Auditor-Controller in a manner described at the time of Oversight Board approval as to a particular property sale. Since it is impossible to foresee when and if a short-fall in the RPTTF may occur, or when the property will be sold, the use of the sale proceeds cannot be specifically determined at this time and, therefore, cannot be stated with greater particularity in the LRPMP. However, it is clear that at the time a sale takes place, the sale will be brought back to the Oversight Board and will be subject to review. 12.b Packet Pg. 402 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit A.Attachment 2 (6858 : Resolution Approving 12.c Packet Pg. 403 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit B.Attachment 3 (6858 : Resolution Approving 12.c Packet Pg. 404 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit B.Attachment 3 (6858 : Resolution Approving 12.c Packet Pg. 405 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit B.Attachment 3 (6858 : Resolution Approving 12.c Packet Pg. 406 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit B.Attachment 3 (6858 : Resolution Approving 12.c Packet Pg. 407 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit B.Attachment 3 (6858 : Resolution Approving 12.c Packet Pg. 408 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit B.Attachment 3 (6858 : Resolution Approving 12.c Packet Pg. 409 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit B.Attachment 3 (6858 : Resolution Approving 12.c Packet Pg. 410 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit B.Attachment 3 (6858 : Resolution Approving 12.c Packet Pg. 411 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit B.Attachment 3 (6858 : Resolution Approving 12.c Packet Pg. 412 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit B.Attachment 3 (6858 : Resolution Approving 12.c Packet Pg. 413 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit B.Attachment 3 (6858 : Resolution Approving 12.c Packet Pg. 414 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit B.Attachment 3 (6858 : Resolution Approving 12.c Packet Pg. 415 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit B.Attachment 3 (6858 : Resolution Approving 12.c Packet Pg. 416 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit B.Attachment 3 (6858 : Resolution Approving 12.c Packet Pg. 417 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit B.Attachment 3 (6858 : Resolution Approving 12.c Packet Pg. 418 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit B.Attachment 3 (6858 : Resolution Approving 12.c Packet Pg. 419 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit B.Attachment 3 (6858 : Resolution Approving 12.c Packet Pg. 420 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit B.Attachment 3 (6858 : Resolution Approving 12.d Packet Pg. 421 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 422 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 423 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 424 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 425 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 426 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 427 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 428 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 429 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 430 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 431 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 432 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 433 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 434 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 435 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 436 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 437 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 438 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 439 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 440 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 441 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 442 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 443 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 444 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 445 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 446 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 447 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 448 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with 12.d Packet Pg. 449 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit C.Attachment 4 (6858 : Resolution Approving PSA with PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS SELLER: Successor Agency to the Redevelopment Agency of the City of San Bernardino BUYERS: Mat Baburyan, trustee of the Mat Baburyan Revocable Trust, dated February 21, 2017 DATED: August 19, 2020 (757 and 761 North Mt. Vernon Avenue, San Bernardino, California APNs 0139-291-60 and 0139-291-61) 12.e Packet Pg. 450 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit D.Attachment 5 (6858 : Resolution Approving BASIC TERMS Buyers: Mat Baburyan, trustee of the Mat Baburyan Revocable Trust, dated February 21, 2017 Buyer’s Address: 718 E. Santa Anita Ave, Apt 2 Burbank, CA 91501 Tel. 818-400-4300 Email: arspac@yahoo.com City: The City of San Bernardino Closing Contingency Date: January 18, 2021 Closing Date (or Closing) Estimated to occur by November 2, 2020, but not later than the Outside Date Deed: A grant deed in the form of Exhibit “B” hereto Effective Date: August 19, 2020 Opening of Escrow: September 28, 2020 Escrow Holder: Commonwealth Land Title A Fidelity National Financial Company 888 S. Figueroa Street, Suite 2100 Los Angeles, CA 90017 Tel: (213) 330-3059 Attention: Crystal Leyvas, Vice President, National Accounts National Commercial Services Direct: (213) 330-3059; email: Cleyvas@cltic.com (or another escrow holder mutually acceptable to Buyer and Seller) Independent Consideration Amount: Two Hundred Dollars ($200.00) Outside Date: February 4, 2021; provided that such date may be extended by mutual writing agreement by Seller and Buyer Purchase Price: One Hundred Thirty-Three Thousand Dollars ($133,000) Real Property: That property described in Exhibit “A” hereto; the subject property is sometimes referred to as APNs 0139-291-60 and 0139-291-61 Seller: Successor Agency to the Redevelopment Agency of the City of San Bernardino 12.e Packet Pg. 451 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit D.Attachment 5 (6858 : Resolution Approving 2 Seller’s Address: 290 N. “D” Street – Third Floor San Bernardino, California 92418 Attention: Teri Ledoux, City Manager Tel. (909) 384-5122 Fax: (909) 384-5138 Email: Ledoux_Te@sbcity.org Soil and Title Contingency Date: December 17, 2020 Title Company: Commonwealth Land Title A Fidelity National Financial Company 888 S. Figueroa Street, Suite 2100 Los Angeles, CA 90017 Tel: (213) 330-3059 Attention: Crystal Leyvas, Vice President, National Accounts National Commercial Services direct: (213) 330-3059; email: Cleyvas@cltic.com (or another title company mutually acceptable to Buyer and Seller) 12.e Packet Pg. 452 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit D.Attachment 5 (6858 : Resolution Approving 3 PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS This PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (“Agreement”) is made and entered into as of August 19, 2020 (the “Effective Date”) by and between Seller and Buyer. RECITALS A. Seller is the fee owner of the Real Property. The Real Property is approximately 0.72 acres of vacant land. B. Seller has offered to sell to Buyer the Real Property described herein for the price and subject to the terms set forth below. Buyer has considered the offer by Seller and agrees to buy from Seller the Real Property, as more specifically described below. C. In addition to the Purchase Price, material considerations to Seller in agreeing to enter into this Agreement, Buyer has agreed to pay to Seller the Independent Consideration Amount; NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Buyer agree as follows: 1. Purchase and Sale. Seller hereby agrees to sell the Real Property to Buyer, and Buyer hereby agrees to purchase the Real Property from Seller, on the terms and conditions set forth in this Agreement. The term Real Property is defined collectively as the following: (a) The fee interest in the Real Propert y to be conveyed by a grant deed in the form of the Deed; and (b) All personal property, equipment, supplies, and fixtures owned by Seller and located at the Real Property. 2. Payment of Consideration. As consideration for the sale of the Real Property from Seller to Buyer, Buyer shall, at the Closing (as defined below), pay to Seller the Purchase Price for the Real Property. Upon payment of the Purchase Price (less any adjustments made to clear liens and to defray Seller’s costs of sale including, but not limited to, the preparation of legal documents and validation of the purchase price incurred by the City of San Bernardino and the Seller’s share of closing costs), the use of sales proceeds by Seller is a matter with which Buyer is not concerned. 3. Escrow and Independent Consideration. (a) Opening of Escrow. For the purposes of this Agreement, the escrow (“Escrow”) shall be deemed opened (“Opening of Escrow”) on the date that Escrow Holder receives a copy of this Agreement fully executed by Buyer and Seller. Buyer and Seller shall use their best efforts to cause the Opening of Escrow to occur on or before five (5) business days after the Effective Date. Escrow Holder shall promptly notify Buyer and Sell er in writing of the date of the Opening of Escrow. Buyer and Seller agree to execute, deliver and be bound by any reasonable or 12.e Packet Pg. 453 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit D.Attachment 5 (6858 : Resolution Approving 4 customary supplemental escrow instructions or other instruments reasonably required by Escrow Holder to consummate the transaction contemplated by this Agreement; provided, however, that no such instruments shall be inconsistent or in conflict with, amend or supersede any portion of this Agreement. If there is any conflict or inconsistency between the terms of such instruments a nd the terms of this Agreement, then the terms of this Agreement shall control. Without limiting the generality of the foregoing, no such instruments shall extinguish any obligations imposed by this Agreement or any other agreement between Seller and Buyer. (b) Independent Consideration. Within two (2) days after the Opening of Escrow, Buyer shall pay to Seller the Independent Consideration Amount to be retained by Seller as non-refundable independent consideration. The Independent Consideration Amount has been bargained for and agreed to as consideration for Seller’s execution and delivery of this Agreement and Seller holding the Real Property off the market for a period commencing as of the Effective Date and continuing until the Outside Date and for the rights and privileges granted to Buyer herein, including any and all rights granted to Buyer to terminate this Agreement under the circumstances provided for herein. Notwithstanding anything to the contrary contained in this Agreement, the Independent Consideration Amount shall be non-refundable in all events, except for (i) Seller’s default hereunder, (ii) the failure of the San Bernardino Countywide Oversight Board (the “CWOB”) to approve the sale of the Real Property as provided under this Agree ment, and (iii) actions by the California Department of Finance (“DOF”) which prevent the disposition of the Real Property to Buyer as provided under this Agreement. If the Closing occurs, a credit shall be applied to the Purchase Price based upon payment of the Independent Consideration Amount. (c) Closing. For purposes of this Agreement, the “Closing” or “Closing Date” shall be the date the Deed (as defined below) is recorded pursuant to applicable law in the county in which the Real Property is located. Unless changed in writing by Buyer and Seller, the Closing shall occur on the Closing Date, or as soon thereafter as the conditions precedent to closing are satisfied pursuant to Sections 6 and 7 of this Agreement. If the Closing has not, for any reason, occurred by the Closing Date, then either Buyer or Seller may terminate this Agreement by delivering written notice to the other at any time after the Outside Closing Date; provided, however, that if either party is in default under this Agreement at the ti me of such termination, then such termination shall not affect the rights and remedies of the non -defaulting party against the defaulting party. 4. Seller’s Delivery of Real Property and Formation Documents. Within ten (10) days after the Effective Date, Sel ler shall deliver to Buyer the following items (collectively, the “Property Documents”): (a) Such proof of Sellers’ authority and authorization to enter into this Agreement and to consummate this transaction as may be reasonably requested by Buyer and the Title Company consistent with the terms of this Agreement, including without limitation approval of the CWOB of the sale of the Real Property by Seller to Buyer. In addition, Seller shall cause Escrow Holder to obtain and deliver to Buyer a Natural Hazard Report as provided for under Sections 1102 and 1103 of the California Civil Code (the “Natural Hazard Report”) on or before the Soil and Title Contingency Date. 5. Buyer’s Right of Entry. From and after the Opening of Escrow through the earlier to occur of the termination of this Agreement or the Soil and Title Contingency Date, or as 12.e Packet Pg. 454 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit D.Attachment 5 (6858 : Resolution Approving 5 otherwise agreed in writing by Seller prior to entry is effected, Buyer and Buyer’s employees, agents, consultants and contractors shall have the right to enter upon the Real Property during normal business hours, provided reasonable prior notice has been given to Seller. (a) Investigation of the Real Property. In addition to the foregoing, the Buyer shall have the right, at its sole cost and expense, prior to the Soil and Title Contingency Date, to engage its own environmental consultant (the “Environmental Consultant”) to make such investigations as Buyer deems necessary or appropriate, including any “Phase 1” or “Phase 2” investigations of the Real Property. If, based upon such evaluation, inspections, tests or investigation, Buyer determines that it, in its discretion, does not wish to proceed with purchase of the Real Property based upon the condition of the Real Property, Buyer may cancel this Agreement by giving written notice of termination to Seller on or before the Soil and Title Contingency Date which specifically references this Section 5. If Buyer does not cancel this Agreement by the time allowed under this Section 5, Buyer shall be deemed to have approved the evaluation, inspections and tests as provided herein and to have elected to proceed with this transaction on the terms and conditions of this Agreement. Buyer shall provide a copy to the Seller of all reports and test results provided by Buyer’s Environmental Consultant promptly after receipt by the Buyer of any such reports and test results without any representation or warranty as to their accuracy or completeness . Buyer shall bear all costs, if any, associated with restoring the Real Property to substantially the same condition prior to its testing by or on behalf of Buyer if requested to so do by Seller but excluding any latent defects or Hazardous Materials (as defin ed below) discovered by Buyer during its investigation of the Real Property. Buyer agrees to indemnify, protect, defend (with counsel satisfactory to Seller) and hold Seller and the Real Property free and harmless from and against all costs, claims, losses, liabilities, damages, judgments, actions, demands, attorneys’ fees or mechanic’s liens arising out of or resulting from any entry or activities on the Real Property by Buyer, Buyer’s agents, contractors or subcontractors and the contractors and subcontra ctors of such agents, but in no event shall the indemnity of this Section include the discovery of pre -existing conditions by Buyer or any such liabilities, costs, etc. arising from the negligence or willful misconduct of Seller and/or its consultants. The indemnity obligations of Buyer set forth in this Section 5(a) shall survive any termination of this Agreement or the Close of Escrow. “Hazardous Materials” means any substance, material, or waste which is or becomes regulated by any local governmental authority, the County, the State of California, regional governmental authority, or the United States Government, including, but not limited to, any material or substance which is (i) defined as a “hazardous waste,” “extremely hazardous waste,” or “restricted hazardous waste” under Sections 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law), (ii) defined as a “hazardous substance” under Section 25316 o f the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter-Presley-Tanner Hazardous Substance Account Act), (iii) defined as a “hazardous material,” “hazardous substance,” or “hazardous waste” under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) defined as a “hazardous substance” under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) petroleum, (vi) friable asbestos, (vii) polychlorinated biphenyls, (viii) listed under Article 9 or defined as “hazardous” or “extremely hazardous” pursuant to Article 11 of Title 22 of the California Administrative Code, Division 4, Chapter 20, (ix) designated as “hazardous substances” pursuant to Section 311 of the Clean Water Act (33 U.S.C. §1317), (x) defined as a “hazardous waste” pursuant to Section 1004 of the Resource 12.e Packet Pg. 455 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit D.Attachment 5 (6858 : Resolution Approving 6 Conservation and Recovery Act, 42 U.S.C. §6901 et seq. (42 U.S.C. §6903) or (xi) defined as “hazardous substances” pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. §9601 et seq. (b) No Warranties as to the Real Property. The physical condition and possession of the Real Property, is and shall be delivered from Seller to Buyer in an “as is” condition, with no warranty expressed or implied by Seller, including without limitation, the presence of Hazardous Materials or the condition of the soil, its geology, the presence of known or unknown seismic faults, or the suitability of the Real Property for development purposes. In addition, Seller makes no representations, warranties or assurances concerning the Real Property, its suitability for any particular use or with regard to the approval process for entitlements as to the Real Property. (c) Buyer Precautions after Closing. Upon and after the Closing, Buyer shall take all necessary precautions to prevent the release into the environment of any Hazardous Materials which are located in, on or under the Real Property. Such precautions shall include compliance with all laws, ordinances, statutes, codes, rules, regulations, orders, and decrees of the United States, the state, the County, the City, or any other polit ical subdivision in which the Real Property is located, and of any other political subdivision, agency, or instrumentality exercising jurisdiction over the Real Property (“Governmental Requirements”) with respect to Hazardous Materials. 6. Buyer’s Conditions Precedent and Termination Right. (a) Conditions Precedent. The Closing and Buyer’s obligation to consummate the purchase of the Real Property under this Agreement are subject to the timely satisfaction or written waiver of the following conditions precedent (collectively, “Buyer’s Contingencies”), which are for Buyer’s benefit only. (i) Title Review. Within twenty (20) calendar days after the Opening of Escrow, Seller shall cause the Title Company to deliver to Buyer a preliminary title report (the “Report”) describing the title to the Real Property, together with copies of the plotted easements and the exceptions (the “Exceptions”) set forth in the Report; provided that the cost of the Report shall be borne by Seller. Seller acknowledges that the Buyer’s Title Policy shall include an endorsement against the effect of any mechanics’ liens; Seller will provide such indemnity or other assurances as necessary to induce the Title Company to provide such endorsement. On or before the Soil and Title Contingency Date, Buyer shall have approved in writing, in Buyer’s sole discretion, any matters of title disclosed by the following (collectively, the “Title Documents”): (i) the Report; (ii) the Exceptions; (iii) the legal description of the Real Property and (iv) any survey Buyer desires to obtain at Buyer’s sole cost and expense. Buyer shall have the same rights to approve or disapprove any exceptions to title that are not created by Buyer and that come into existence after issuance of the Report but prior to Closing. Seller shall, on or before the Closing, remove all deeds of trust, mortgages, and delinquent taxes (but not the lien for any real property taxes or assessments not yet delinquent). (ii) Buyer’s Title Policy. On or before the Closing, the Title Company shall, upon payment (by Buyer) of the Title Company’s premium, have agreed to issue to Buyer, a standard ALTA owner’s policy of title insurance insuring only as to matters of record title (“Standard Buyer’s Title Policy”) in the amount of the Purchase Price show ing fee title to the Real 12.e Packet Pg. 456 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit D.Attachment 5 (6858 : Resolution Approving 7 Property vested solely in Buyer and subject only to the (i) the standard, preprinted exceptions to Buyer’s Title Policy; (ii) liens to secure payment of real estate taxes or assessments not yet delinquent; (iii) matters affecting the Real Property created by or with the written consent of Buyer; and (iv) those matters specifically approved in writing by Buyer. Buyer shall have the right, at its sole cost and expense, to obtain coverage beyond that offered by a Standard Buyer’s Title Policy (such as an owner’s extended coverage ALTA policy); provided, however, that Buyer’s ability to obtain such extended coverage shall not be a Buyer’s Contingency and Buyer’s obligations hereunder shall in no way be conditioned or contingent upon ob taining such extended coverage. Buyer shall have sole responsibility for obtaining, and bearing the cost of, any endorsements and for any survey or other matters required by the Title Company for such extended coverage. In the event Buyer enters into a loan agreement to generate moneys to purchase the Real Property from Seller under this Agreement, Buyer and not Seller shall be responsible for the title insurance, closing costs and any other costs, fees or expenses in relation to Buyer obtaining such loaned moneys. The sale shall be all cash to Seller. (iii) Physical and Legal Inspections and Studies. On or before Soil and Title the Contingency Date, Buyer shall have approved in writing, in Buyer’s sole and absolute discretion, the results of any physical and legal (but not feasibility or economic) inspections, investigations, tests and studies Buyer elects to make or obtain, including, but not limited to, investigations with regard to zoning, building codes and other governmental regulations; engineering tests; soils, seismic and geologic reports; environmental audits, inspections and studies; environmental investigation or other invasive or subsurface testing; and any other physical or legal inspections and/or investigations as Buyer may elect to make or obtain. (iv) Natural Hazard Report. Seller shall cause the Escrow Holder to provide to Buyer prior to the Soil and Title Contingency Date the Natural Hazard Report described at Section 8(a)(iii) of this Agreement; provided that Seller shall bear the cost to prepare such Natural Hazard Report. (v) Property and Formation Documents. On or before the Soil and Title Contingency Date, Buyer shall have approved in writing, in Buyer’s reasonable discretion, the terms, conditions and status of all of the Property Documents. (vi) Delivery of Documents. Seller’s delivery of all documents described in Section 8, below. (vii) Representations and Warranties. All representations and warranties of Seller contained in this Agreement shall be materially true and correct as of the date made and as of the Closing. (viii) Title Company Confirmation. The Title Company shall have confirmed that it is prepared to issue the Buyer’s Title Policy consistent with the provisions of this Agreement. (ix) CWOB and DOF Approval. The CWOB and, if required as a condition of the issuance of title insurance or by either party hereto, approval by DOF, shall have been given as to the disposition of the Real Property by Seller to Buyer under this Agreement. 12.e Packet Pg. 457 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit D.Attachment 5 (6858 : Resolution Approving 8 (x) No Default. As of the Closing, Seller shall not be in default in the performance of any material covenant or agreement to be performed by Seller under this Agreement. (b) Termination Right. Each of (i), (ii) and (iii) shall operate independently and each shall entitle Seller to terminate this Agreement, as follows: (i) If the Independent Consideration Amount is not paid by Buyer to Seller by the time set forth therefor in Section 3(b)(i) of this Agreement, then this Agreement shall terminate upon Seller giving notice thereof to Buyer; (ii) If any of Buyer’s Contingencies are not met by the Closing Contingency Date, and Seller so informs Buyer, Buyer may, by written notice to Seller, terminate this Agreement. If this Agreement is so terminated, then (except to the extent expressly allocated to one party hereto by this Agreement) any escrow, title or other cancellation fees shall be paid by Buyer, unless Seller is in default hereunder, in which case Seller shall pay all such fees. If the Agreement has not been terminated pursuant to (i) or (ii) of this Sect ion 6(b) and Buyer has not terminated this Agreement in writing (“Termination Notice”) on or before 5:00 p.m. on the Monday preceding the scheduled Closing (“Termination Notice Deadline”), then all such Buyer’s Contingencies shall be deemed to have been satisfied and this Agreement shall continue pursuant to its terms. If Buyer has not delivered a Termination Notice as the items set forth in Sections 6(a)(i)-(xi) inclusive, prior to the Termination Notice Deadline, such Buyer’s Contingencies shall be deemed to have been satisfied. If this Agreement is terminated, then (except to the extent expressly allocated to one party hereto by this Agreement) any escrow, title or other cancellation fees shall be paid by Buyer, unless Seller is in default hereunder, in which case Seller shall pay all such fees. (c) Seller’s Cure Right. Buyer shall notify Seller, in Buyer’s Termination Notice, of Buyer’s disapproval or conditional approval of any Title Documents. Seller shall then have the right, but not the obligation, to (i) remove from title any disapproved or conditionally approved Exception(s) (or cure such other title matters that are the basis of Buyer’s disapproval or conditional approval of the Title Documents) within five (5) business days after Seller’s recei pt of Buyer’s Termination Notice, or (ii) provide assurances reasonably satisfactory to Buyer that such Exception(s) will be removed (or other matters cured) on or before the Closing. With respect to any such Exception, it shall be sufficient for purposes hereof for Seller to commit in writing, within the applicable period, to remove such Exception at or before the Closing. Seller’s failure to remove such Exception after committing to do so shall be a default hereunder. An Exception shall be deemed removed or cured if Seller furnishes Buyer with evidence that the Title Company will issue the Buyer’s Title Policy, as defined herein, at the Closing deleting such Exception or providing an endorsement (at Seller’s expense) reasonably satisfactory to Buyer con cerning such Exception. If Seller cannot or does not remove or agree to remove any of the disapproved Exception(s) (or cure other matters) within such five (5) business day period, Buyer shall have three (3) business days after the expiration of such five (5) business day period to give Seller written notice that Buyer elects to proceed with the purchase of the Real Property subject to the disapproved Title Document(s), it being understood that Buyer shall have no further recourse against Seller for such disapproved Title Exception(s). 12.e Packet Pg. 458 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit D.Attachment 5 (6858 : Resolution Approving 9 7. Seller’s Conditions Precedent and Termination Right. The Closing and Seller’s obligations with respect to the transaction contemplated by this Agreement are subject to the timely satisfaction or written waiver of the following condition precedent (“Seller’s Contingencies”), which are for Seller’s benefit only: (a) Completion of Title Review. Seller shall have received written confirmation from Buyer on or before the Soil and Title Contingency Date that Buyer has completed its review of title and that the condition of title satisfactory. (b) Confirmation Concerning Site. Seller shall have received written confirmation from Buyer on or before the Soil and Title Contingency Date that Buyer has reviewed the condition of the Real Property, including without limitation concerning Hazardous Materials, zoning and suitability, and approves the condition of the Real Property. (c) Confirmation Regarding Buyer’s Title Policy. Seller shall have received written confirmation from Buyer on or before the Soil and Title Contingency Date that Buyer has approved a pro forma title policy. (d) Liens. Seller shall have obtained the consent of any lien holder to the release of such liens prior to or concurrent with closing. (e) CWOB and DOF Approval. The approval by the CWOB and DOF shall have been given as to the disposition of the Real Property by Seller to Buyer under this Agreement. (f) Delivery of Documents. Buyer’s delivery of all documents described in Section 9(a), below. Should any of Buyer’s Contingencies not be met by the respective times set forth for the satisfaction for such contingency (and without regard to whether all such contingencies have been removed or satisfied) and Buyer has so informed Seller, Seller may, b y written notice to Buyer, terminate this Agreement; such termination rights shall be in addition to those termination rights of Seller as set forth in Section 6. If this Agreement is so terminated, then (except to the extent expressly allocated to one party hereto by this Agreement) any escrow, title or other cancellation fees shall be paid by Buyer. 8. Seller’s Deliveries to Escrow Holder. (a) Seller’s Delivered Documents. At least one (1) business day prior to the Closing Date, Seller shall deposit or cause t o be deposited with Escrow Holder the following items, duly executed and, where appropriate, acknowledged (“Seller’s Delivered Items”): (i) Deed. The Deed. (ii) FIRPTA/Tax Exemption Forms. The Transferor’s Certification of Non-Foreign Status in the form attached hereto as Exhibit C (the “FIRPTA Certificate”), together with any necessary tax withholding forms, and a duly executed California Form 593, as applicable (the “California Exemption Certificate”). (iii) Hazard Disclosure Report. Unless earlier delivered to Buyer, Seller shall cause Escrow Holder to obtain and deliver to Buyer, at Seller’s cost, a Natural Hazard Report 12.e Packet Pg. 459 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit D.Attachment 5 (6858 : Resolution Approving 10 as provided for under Sections 1102 and 1103 of the California Civil Code (the “Natural Hazard Report”) before the Closing. (iv) Possession of Real Property. Possession of the Real Property free of any tenancies or occupancy. (v) Authority. Such evidence of Seller’s authority and authorization to enter into this Agreement and to consummate this transaction as may be reasonably requested by Buyer and the Title Company which are consistent with the terms of this Agreement . (vi) Further Documents or Items. Any other documents or items reasonably required to close the transaction contemplated by this Agreement as determined by the Title Company which are consistent with the terms of this Agreement. (b) Failure to Deliver. Should any of Seller’s Delivered Items not be timely delivered to Escrow, Buyer may, by written notice to Seller, terminate this Agreement; provided, however, that Buyer may (but shall not be obligated to) in such notice provide Seller with five (5) business days to deliver all of Seller’s Delivered Items. If Buyer’s notice provides Seller such five (5) business days to deliver Seller’s Delivered Items, and if Seller’s Delivered Items are not delivered within such period, then this Agreement shall automatically terminate without further action or notice. In the event of any such termination, any cash deposited by Buyer shall immediately be returned to Buyer. Under no circumstances shall Buyer have any responsibility to or duty to pay consultants or real estate brokers retained by Seller, Seller being solely responsible in connection with any such contractual arrangements of Seller. 9. Buyer’s Deliveries to Escrow. At least one (1) business day prior to the Closing Date, Buyer shall deposit or cause to be deposited with Escrow Holder the following, each duly executed and acknowledged, by Buyer as appropriate (“Buyer’s Delivered Items”): (a) Purchase Price. The Purchase Price, less amounts which Seller confirms in writing to Escrow Holder were theretofore paid to Seller as the Independent Consideration Amount, together with additional funds as are necessary to pay Buyer’s closing costs set forth in Section 10(b) herein. In the event Seller does not qualify for an exemption from California withholding tax under Section 18662 of the California Revenue and Taxation Code, as evidenced by the delivery at Closing of the California Exemption Certificate duly executed by Seller, Ti tle Company shall withhold three and one-third percent (3-1/3%) of the Purchase Price on behalf of Buyer for payment to the California Franchise Tax Board in accordance with Section 11(b) hereof. In the event Seller is not exempt from such withholding or does not otherwise deliver the California Exemption Certificate at Closing, Buyer shall execute and deliver three (3) originals of California Form 593 to Title Company at or immediately after Closing. (b) Change of Ownership Report. One (1) original Preliminary Change of Ownership Report. (c) Final Escrow Instructions. Buyer’s final written escrow instructions to close escrow in accordance with the terms of this Agreement. 12.e Packet Pg. 460 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit D.Attachment 5 (6858 : Resolution Approving 11 (d) Authority. Such proof of Buyer’s authority and authorization to enter into this Agreement and to consummate the transaction contemplated hereby as may be reasonably requested by Seller or the Title Company. (e) Moneys for Buyer’s Real Estate Broker. Buyer shall deposit any moneys due and payable to Buyer’s Real Estate Broker in connection with the sale of the Real Property. (f) Further Documents or Items. Any other documents or items reasonably required to close the transaction contemplated by this Agreement as determined by the Title Company. 10. Costs and Expenses. (a) Seller’s Costs. If the transaction contemplated by this Agreement is consummated, then Seller shall be debited for and bear the following costs: (i) costs and charges associated with the removal of encumbrances; (ii) Seller’s share of prorations; (iii) the premium for a Standard Buyer’s Title Policy with coverage in the amount of the Purchase Price; (iv) documentary recording fees, if any; (v) documentary transfer tax, if any; (vi) Seller’s Real Estate Broker’s Commission of Thirteen Thousand Dollars ($13,000) which the parties acknowledge and agree that at Close of Escrow, Seller shall pay Seller’s Real Estate Broker’s Commission for sale of the Property in accordance with Seller’s listing agreement with Seller’s Real Estate Broker and that the broker's commission shall be divided equally be tween Buyer's Real Estate Broker and Seller's Real Estate Broker; (vii) one half of the escrow charges; and (viii) costs, if any, allocable to Seller under this Agreement and costs for such services as Seller may additionally request that Escrow perform on its behalf (which foregoing items collectively constitute “Seller’s Costs and Debited Amounts”). (b) Buyer’s Costs. If the transaction contemplated by this Agreement is consummated, then Buyer shall bear the following costs and expenses: (i) the Escrow Holder’s fee; (ii) Buyer’s share of prorations, (iii) the premium for title insurance other than or in excess of a Standard Buyer’s Title Policy based on the Purchase Price, and, if applicable, the cost for any survey required in connection with the delivery o f an ALTA owner’s extended coverage policy of title insurance; (iv) one half of escrow charges; (v) recording and other costs of closing; (vi) costs, if any, for such services as Buyer may additionally request that Escrow perform on its behalf; and (vii) any costs associated with Buyer borrowing money in order to pay to Seller the Purchase Price (collectively, “Buyer’s Costs and Debited Amounts”). (c) Generally. Each party shall bear the costs of its own attorneys, consultants, and real estate brokers, other than broker’s commission, in connection with the negotiation and preparation of this Agreement and the consummation of the transaction contemplated hereby. The parties acknowledge and agree that at Close of Escrow, Seller shall pay Seller’s Real Estate Broker’s Commission for sale of the Property in accordance with Seller’s listing agreement with Seller’s Real Estate Broker and that the broker's commission shall be divided equally between Buyer's Real Estate Broker and Seller's Real Estate Broker. 11. Prorations; Withholding. (a) All revenues (if any) and expenses relating to the Real Property (including, but not limited to, property taxes, utility costs and expenses, water charges and sewer rents and 12.e Packet Pg. 461 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit D.Attachment 5 (6858 : Resolution Approving 12 refuse collection charges) shall be prorated as of the Closing Da te; provided that all delinquent taxes shall be satisfied at the expense of Seller. Not less than five (5) business days prior to the Closing, Seller shall deliver to Buyer a tentative schedule of prorations for Buyer’s approval (the “Proration and Expense Schedule”). If any prorations made under this Section shall require final adjustment after the Closing, then the parties shall make the appropriate adjustments promptly when accurate information becomes available and either party hereto shall be entitle d to an adjustment to correct the same. Any corrected or adjustment proration shall be paid promptly in cash to the party entitled thereto. (b) In the event Seller does not qualify for an exemption from California withholding tax under Section 18662 of the California Revenue and Taxation Code (the “Tax Code”) as evidenced by the delivery to Buyer at Closing of the California Exemption Certificate duly executed by Seller, (i) Title Company shall withhold three and one-third percent (3-1/3%) of the Purchase Price on behalf of Buyer at Closing for payment to the California Franchise Tax Board in accordance with the Tax Code, (ii) Buyer shall deliver three (3) duly executed copies of California Form 593 to Title Company at or immediately after Closing, (iii) two (2) copies of California Form 593 shall be delivered by Title Company to Seller, and (iv) on or before the 20th day of the month following the month title to the Real Property is transferred to Buyer (as evidenced by the recording of the Grant Deed), Title Company shall remit such funds withheld from the Purchase Price, together with one (1) copy of California Form 593 to the California Franchise Tax Board on behalf of Buyer. Buyer and Seller hereby appoint Title Company as a reporting entity under the Tax Code, authorized to withhold and remit the withholding tax contemplated under the Tax Code, together with such other documents required by the Tax Code (including, without limitation, California Form 593), to the California Franchise Tax Board. 12. Closing Procedure. When the Title Company is unconditionally prepared (subject to payment of the premium therefor) to issue the Buyer’s Title Policy and all required documents and funds have been deposited with Escrow Holder, Escrow Holder shall immediately close E scrow in the manner and order provided below. (a) Recording. Escrow Holder shall cause the Deed to be recorded pursuant to applicable law in the county in which the Real Property is located and obtain conformed copies thereof for distribution to Buyer and Seller. (b) Disburse Funds. Escrow Holder shall debit or credit (as provided herein) all Buyer’s Costs and Debited Amounts, Seller’s Costs and Debited Amounts and General Expenses, prorate matters and withhold funds as provided herein. The Purchase Price, less any applicable debits or credits (including any liens as to which such liens and the amount to satisfy such liens shall have been confirmed in writing by Seller to Escrow Holder) shall be distributed by check payable to Seller unless Escrow Holder is instructed otherwise in writing signed by Seller (and, in such event, in accordance with such instructions). Seller authorizes Escrow Holder to request demands for payment and to make such payments from the Purchase Price (or such other funds, if any, as are advanced by Seller) to defray the cost of removing deeds of trust, liens and other encumbrances (but not for obligations of Buyer). Escrow Holder shall disburse on behalf of Buyer such moneys as are deposited by Buyer (in addition to the Purchase Price and Buyer’s share of closing costs) as the commission for Buyer’s Real Estate Broker (unless Buyer’s Real Estate Broker shall deliver a written statement to Escrow Holder which indicates that Buyer has arranged to pay Bu yer’s Real Estate Broker outside escrow and that payment of such remuneration is a matter with respect to which Escrow Holder and Seller need not be concerned). 12.e Packet Pg. 462 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit D.Attachment 5 (6858 : Resolution Approving 13 (c) Documents to Seller. Escrow Holder shall deliver to Seller a conformed copy of the Deed, and documents, if any, recorded on behalf of any lender, as duly recorded among the official land records of the County of San Bernardino, and a copy of each other document (or copies thereof) deposited into Escrow by Buyer pursuant hereto. (d) Documents to Buyer. Escrow Holder shall deliver to Buyer the original FIRPTA Certificate, the original California Exemption Certificate (as applicable), and a conformed copy of each of the Deed as duly recorded among the official land records of the County of San Bernardino, the Natural Hazard Report, and each other document (or copies thereof) deposited into Escrow by Seller pursuant hereto, including, without limitation, those documents referenced in Section 8. (e) Title Company. Escrow Holder shall cause the Title Company to issue the Buyer’s Title Policy to Buyer. (f) Closing Statement. Escrow Holder shall forward to both Buyer and Seller a separate accounting of all funds received and disbursed for each party. (g) Informational Reports. Escrow Holder shall file any information reports required by Internal Revenue Code Section 6045(e), as amended. (h) Possession. Possession of the Real Property shall be delivered to Buyer at the Closing. 13. Representations and Warranties. (a) Seller’s Representations and Warranties. In consideration of Buyer entering into this Agreement and as an inducement to Buyer to purchase the Real Property, Seller makes the following representations and warranties as of the Effective Date and as of the Closing, each of which is material and is being relied upon by Buyer (and the truth and accuracy of which shall constitute a condition precedent to Buyer’s obligations hereunder), and all of which are material inducements to Buyer to enter into this Agreement (and but for which Buyer would not have entered into this Agreement) and shall survive Closing; provided that each of the representations and warranties of Seller is based upon the information and belief of the Executive Director of the Successor Agency: (i) Seller believes that it has the legal power, right and authority to enter into this Agreement and the instruments referenced herein, and to consummate the transaction contemplated subject to the approval of the CWOB and, as may be applicable, DOF. (ii) Subject to the approval of the CWOB and, as may be applicable, DOF, Seller believes that all requisite action (corporate, trust, partnership or otherwise) has been taken by Seller in connection with entering into this Agreement and the instruments referenced herein; and, by the Closing, all such necessary action will have been taken to authorize the consummation of the transaction contemplated hereby. (iii) Subject to the approval of the CWOB and, as may be applicable, DOF, the individual executing this Agreement and the instruments referenced herein on behalf of 12.e Packet Pg. 463 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit D.Attachment 5 (6858 : Resolution Approving 14 Seller has the legal power, right and actual authority to bind Seller to the terms and conditions hereof and thereof. (iv) Seller believes that neither the execution or delivery of this Agreement or the documents or instruments referenced herein, nor incurring the obligations set forth herein, nor the consummation of the transaction contemplated herein, nor compliance with the terms of this Agreement or the documents or instruments referenced herein or therein conflict with or result in the material breach of any terms, conditions or provisions of, or constitute a default under, any bond, note or other evidence of indebtedness or any contract, indenture, mortgage, deed of trust, loan, lease or other agreement or instrument to which Seller is a party or that affect the Real Property, including, but not limited to, any of the Title Documents or the Property Documents. (v) There is no pending litigation nor, to the best of Seller’s knowledge, threatened litigation, which does or will adversely affect the right of Seller to convey the Re al Property. There are no claims which have been received by Seller that have not been disclosed to Buyer. (vi) Seller has made no written or oral commitments to or agreements with any governmental authority or agency materially and adversely affecting the Rea l Property, or any part hereof, or any interest therein, which will survive the Closing. (vii) There are no leases or rental agreements in effect as to the Real Property. (viii) Seller is not in default of its obligations under any contract, agreement or instrument to which Seller is a party pertaining to the Real Property. (ix) There are no mechanics’, materialmen’s or similar claims or liens presently claimed or which will be claimed against the Real Property for work performed or commenced for Seller or on Seller’s behalf prior to the date of this Agreement. (x) There are no undisclosed contracts, licenses, commitments, undertakings or other written or oral agreements for services, supplies or materials concerning the use, operation, maintenance, or management of the Real Property that will be binding upon Buyer or the Real Property after the Closing. There are no oral contracts or other oral agreements for services, supplies or materials, affecting the use, operation, maintenance or management of the Real Property. (xi) There are not as of the Effective Date, nor will there be as of the Closing, any written or oral leases or contractual right or option to lease, purchase, or otherwise enjoy possession, rights or interest of any nature in and to the Real Property or any part thereof , and no person other than Buyer shall have any right of possession to the Real Property or any part thereof as of the Closing. (xii) No person, excepting Seller, has possession or any rights to possession of the Real Property or portion thereof. (b) Subsequent Changes to Seller’s Representations and Warranties. If, prior to the Closing, Buyer or Seller should learn, discover or become aware of any existing or new item, 12.e Packet Pg. 464 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit D.Attachment 5 (6858 : Resolution Approving 15 fact or circumstance which renders a representation or warranty of Seller set forth herein incorr ect or untrue in any respect (collectively, the “Seller Representation Matter”), then the party who has learned, discovered or become aware of such Representation Matter shall promptly give written notice thereof to the other party and Seller’s representations and warranties shall be automatically limited to account for the Representation Matter. Buyer shall have the right to approve or disapprove any such change and to terminate this Agreement by written notice to Seller if Buyer reasonably disapproves any such change. If Buyer does not elect to terminate this Agreement, Seller’s representation shall be qualified by such Seller Representation Matter and Seller shall have no obligation to Buyer for such Seller Representation Matter. (c) Buyer’s Representations and Warranties. In consideration of Seller entering into this Agreement and as an inducement to Seller to sell the Real Property, Buyer makes the following representations and warranties as of the date hereof and at and as of the Closing, each of which is material and is being relied upon by Seller (and the truth and accuracy of which shall constitute a condition precedent to Seller’s obligations hereunder), and all of which shall survive Closing: (i) Buyer has the legal power, right and authority to enter into this Agreement and the instruments referenced herein, and to consummate the transaction contemplated hereby. (ii) All requisite action has been taken by Buyer in connection with entering into this Agreement and the instruments referenced herein; and, by the Closing, all such necessary action will have been taken to authorize the consummation of the tr ansaction contemplated hereby. (iii) The individuals executing this Agreement and the instruments referenced herein on behalf of Buyer have the legal power, right and actual authority to bind Buyer to the terms and conditions hereof and thereof. (iv) Neither the execution and delivery of this Agreement and the documents and instruments referenced herein, nor incurring the obligations set forth herein, nor the consummation of the transaction contemplated herein, nor compliance with the terms of this Agreement and the documents and instruments referenced herein conflict with or result in the material breach of any terms, conditions or provisions of, or constitute a default unde r, any bond, note or other evidence of indebtedness or any contract, indenture, mortgage, deed of trust, loan, partnership agreement, lease or other agreement or instrument to which Buyer is a party or by which any of Buyer’s properties are bound. (d) Subsequent Changes to Buyer’s Representations and Warranties. If, prior to the Closing, Seller or Buyer should learn, discover or become aware of any existing or new item, fact or circumstance which renders a representation or warranty of Buyer set forth herein i ncorrect or untrue in any respect (collectively, the “Buyer’s Representation Matter”), then the party who has learned, discovered or become aware of such Buyer’s Representation Matter shall promptly give written notice thereof to the other party and Buyer’s representations and warranties shall be automatically limited to account for the Buyer’s Representation Matter. Seller shall have the right to approve or disapprove any such change and to terminate this Agreement by written notice to Buyer if Seller reasonably disapproves any such change. If Seller does not elect to terminate this 12.e Packet Pg. 465 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit D.Attachment 5 (6858 : Resolution Approving 16 Agreement, Buyer’s representation shall be qualified by such Buyer’s Representation Matter and Buyer shall have no obligation to Seller for such Buyer’s Representation Matter. 14. Fair Value Price. Each of Buyer and Seller believe that the Purchase Price represents a fair value price for the Real Property. At such time as Buyer makes improvements to the Real Property, the costs for planning, designing, and constructing such impro vements shall be borne exclusively by the Buyer and the Buyer shall construct or cause to be constructed such improvements in compliance with all the zoning, planning and design review requirements of the San Bernardino Municipal Code, and all nondiscrimination, labor standard, and wage rate requirements to the extent such labor and wage requirements are applicable. Buyer, including but not limited to its contractors and subcontractors, shall be responsible to comply with Labor Code Section 1720, et seq., if applicable, and its implementing regulations, regarding the payment of prevailing wages (the “State Prevailing Wage Law”), if applicable, and, if applicable, federal prevailing wage law (“Federal Prevailing Wage Law” and, together with State Prevailing Wage Law, “Prevailing Wage Laws”) with regard to the construction of improvements to the Real Property, but only if and to the extent such sections are applicable to the development of the Real Property. Insofar as the parties understand that Buyer is paying a fair market price for the Real Property, the parties believe that the payment of prevailing wages will not be required. In any event, Buyer shall be solely responsible for determining and effectuating compliance with the Prevailing Wage Laws, neither the Seller nor the City makes any final representation as to the applicability or non-applicability of the Prevailing Wage Laws to improve ments to the Real Property, or any part thereof. Buyer hereby releases from liability, and agrees to indemnify, defend, assume all responsibility for and hold each of the Seller and the City, and their respective officers, employees, agents and representatives, harmless from any and all claims, demands, actions, suits, proceedings, fines, penalties, damages, expenses resulting from, arising out of, or based upon Buyer’s acts or omissions pertaining to the compliance with the Prevailing Wage Laws as to the Real Property. This Section 14 shall survive Closing. 15. General Provisions. (a) Condemnation. If any material portion of the Real Property shall be taken or appropriated by a public or quasi-public authority exercising the power of eminent domain, Buyer shall have the right, at its option, to (i) terminate this Agreement or (ii) proceed with the purchase of the Real Property and receive all of the award or payment made in connection with such taking. (b) Notices. All notices, demands, requests or other communications required or permitted hereunder (collectively, “Notices”) shall be in writing, shall be addressed to the receiving party as provided in the Basic Terms section above, and shall be personally delivered, sent by overnight mail (Federal Express or another carrier that provides receipts for all deliveries), sent by certified mail, postage prepaid, return receipt requested, or sent by facsimile transmission (provided that a successful transmission report is received). All Notices shall be effective upon rec eipt at the appropriate address. Notice of change of address shall be given by written notice in the manner detailed in this Section. Rejection or other refusal to accept or the inability to deliver because of changed address of which no Notice in accordance with this Section was given shall be deemed to constitute receipt of such Notice. The providing of copies of Notices to the parties’ respective counsels is for information only, is not required for valid Notice and does not alone constitute Notice hereunder. 12.e Packet Pg. 466 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit D.Attachment 5 (6858 : Resolution Approving 17 (c) Brokers. Seller assumes sole responsibility for any consultants or brokers (“Seller’s Agents”) it may have retained in connection with the sale of the Real Property (and Buyer shall have no responsibility in connection with such matters). Seller represents that it has engaged Keller Williams Realty as “Seller’s Real Estate Broker” and that Seller shall be solely responsible for any commission, cost, fee or compensation of any kind due to Seller’s Real Estate Broker. Seller represents to Buyer that Seller has not engaged any consultants, finders or real estate brokers other than Seller’s Real Estate Broker in connection with the sale of the Real Property to the Buyer, and there are no brokerage commission, finder’s fee or other compensation of any kind due or owing to any person or entity in connection with this Agreement other than Seller’s costs with respect to the Seller’s Real Estate Broker Commission. Seller agrees to and does hereby indemnify and hold the Buyer free and harmless from and aga inst any and all costs, liabilities or causes of action or proceedings which may be instituted by any broker, agent or finder, licensed or otherwise, claiming through, under or by reason of the conduct of the Seller in connection with this Agreement. Buyer assumes sole responsibility for any consultants or brokers (“Buyer’s Agents”) it may have retained in connection with the purchase of the Real Property. Buyer represents that it has engaged Arsen Baburyan as “Buyer’s Real Estate Broker” and other than the portion of the Seller’s Real Estate Broker’s Commission that is payable to the Buyer’s Real Estate Broker per Section 10(a) of this Agreement, Buyer shall be solely responsible for any other cost, fee or compensation of any kind due to Buyer’s Real Estate Broker, if any. Buyer represents to Seller that Buyer has not engaged any consultants, finders or real estate brokers other than Buyer’s Real Estate Broker in connection with the sale of the Real Property to the Buyer, and there ar e no brokerage commission, finder’s fee or other compensation of any kind due or owing to any person or entity in connection with this Agreement. Buyer agrees to and does hereby indemnify and hold the Seller free and harmless from and against any and all costs, liabilities or causes of action or proceedings which may be instituted by any broker, agent or finder, licensed or otherwise, claiming through, under or by reason of the conduct of the Buyer in connection with this Agreement. The Parties acknowledge and agree that Buyer has been represented in this transaction by Arsen Baburyan as “Buyer’s Real Estate Broker.” At Close of Escrow, Seller shall pay Seller’s Real Estate Broker’s Commission for sale of the Property in accordance with Seller’s listing agreement with Seller’s Real Estate Broker. The broker's commission shall be divided equally between Buyer's Real Estate Broker and Seller's Real Estate Broker. (d) Waiver, Consent and Remedies. Each provision of this Agreement to be performed by Buyer and Seller shall be deemed both a covenant and a condition and shall be a material consideration for Seller’s and Buyer’s performance hereunder, as appropriate, and any breach thereof by Buyer or Seller shall be deemed a material default hereunder. Either party may specifically and expressly waive in writing any portion of this Agreement or any breach thereof, but no such waiver shall constitute a further or continuing waiver of a preceding or succeeding breach of the same or any other provision. A waiving part y may at any time thereafter require further compliance by the other party with any breach or provision so waived. The consent by one party to any act by the other for which such consent was required shall not be deemed to imply consent or waiver of the necessity of obtaining such consent for the same or any similar acts in the future. No waiver or consent shall be implied from silence or any failure of a party to act, except as otherwise specified in this Agreement. All rights, remedies, undertakings, obligations, options, covenants, conditions and agreements contained in this Agreement shall be cumulative and no one of them shall be exclusive of any other. Except as otherwise specified herein, either party hereto may pursue any one or more of its rights, options or remedies hereunder or may seek damages or specific performance in the event of the other party’s breach hereunder, or may pursue any other remedy at law or equity, whether or not stated in this Agreement. 12.e Packet Pg. 467 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit D.Attachment 5 (6858 : Resolution Approving 18 (e) Cooperation. Buyer and Seller agree to execute such instruments and documents and to diligently undertake such actions as may be required in order to consummate the purchase and sale herein contemplated and shall use all reasonable efforts to accomplish the Closing in accordance with the provisions hereof and, following Closing. (f) Remedies. Without limitation as to the availability of other remedies, this Agreement may be enforced by an action for specific enforcement. (g) Time. Time is of the essence of every provision herein contained. In the computation of any period of time provided for in this Agreement or by law, the day of the act or event from which said period of time runs shall be excluded, and the last day of such period shall be included, unless it is a Saturday, Sunday, or legal holiday, in which case the period shall be deemed to run until 5:00 p.m. of the next day that is not a Saturday, Sunday, or legal holiday. Except as otherwise expressly provided herein, all time periods expiring on a specified date or period herein shall be deemed to expire at 5:00 p.m. on such specified date or period. (h) Counterparts; Facsimile Signatures. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute but one and the same instrument. A facsimile signature shall be deemed an original signature. (i) Captions. Any captions to, or headings of, the sections or subsections of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agree ment, and shall not be used for the interpretation or determination of the validity of this Agreement or any provision hereof. (j) Obligations to Third Parties. City shall be deemed to be a third party beneficiary of this Agreement. Excepting only for the Ci ty, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, nor obligate any of the parties to this Agreement to, any person or entity other than the parties hereto. (k) Amendment to this Agreement. The terms of this Agreement may not be modified or amended except by an instrument in writing executed by each of the parties hereto. (l) Waiver. The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision or any other provision hereof. (m) Applicable Law. This Agreement shall be governed by and construed in accordance with the local law of the State of California. (n) Exhibits and Schedules. The exhibits and schedules attached hereto are incorporated herein by this reference for all purposes. (o) Entire Agreement. This Agreement supersedes any prior agreements, negotiations and communications, oral or written, including, without limitation, that certain Standard Offer, Agreement and Escrow Instructions for Purchase of Real Estate dated July 1, 2020, and contains the entire agreement between, and the final expression of, Buyer and Seller with respect to the subject matter hereof. The parties hereto expressly agree and confirm that this 12.e Packet Pg. 468 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit D.Attachment 5 (6858 : Resolution Approving 19 Agreement is executed without reliance on any oral or written statements, representations or promises of any kind which are not expressly contained in this Agreement. No subsequent agreement, representation or promise made by either party hereto, or by or to an employee, officer, agent or representative of either party hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby. (p) Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the permitted successors and assigns of the parties hereto. (q) Assignment. Neither party may assign its rights under this Agreement without the prior consent of the other party. [signatures begin on the following page] 12.e Packet Pg. 469 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit D.Attachment 5 (6858 : Resolution Approving 20 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. “SELLER” SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public entity, corporate and politic By: Teri Ledoux Executive Director “BUYERS” MAT BABURYAN, TRUSTEE OF THE MAT BABURYAN REVOCABLE TRUST, dated February 21, 2017 By: Name: Mat Baburyan Approved as to form: Gary D. Saenz, City Attorney By: ____________________________ 12.e Packet Pg. 470 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit D.Attachment 5 (6858 : Resolution Approving Acceptance by Escrow Holder: Commonwealth Land and Title Company hereby acknowledges that it has received a fully executed copy of the foregoing Purchase and Sale Agreement and Joint Escrow Instructions by and between the Successor Agency to the Redevelopment Agency of the City of San Bernardino, a public entity, corporate and politic (“Seller”), and Mat Baburyan, trustee of the Mat Baburyan Revocable Trust, dated February 21, 2017 (“Buyer”) and agrees to act as Escrow Holder thereunder and to be bound by and strictly perform the terms thereof as such terms apply to Escrow Holder. Dated: _____________, 2020 COMMONWEALTH LAND AND TITLE COMPANY By: Name: Its: 12.e Packet Pg. 471 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit D.Attachment 5 (6858 : Resolution Approving ATTACHMENT NO. 1 TO GRANT DEED TO EXHIBIT B EXHIBIT A LEGAL DESCRIPTION LEGAL DESCRIPTION APN: 0139-291-60 RSB PTN LOT 9 BLK 18 DESC AS BEG AT PT ON W LI OF LOT 9 265.08 FT S OF NW COR LOT 9 TH S 50.92 FT M/L TO N LI OF LEONARD ST TH E ALG N LI OF LEONARD ST 135 FT TH N 50.92 FT M/L TO PT 265.08 FT S OF N LI OF LOT 9 TH W 135 FT TO POB AND E 44.16 FT W 179.L6 FT S 142.5 FT N 315.08 FT AND COM 179.16 FT E OF INTERSECTION N LI LEONARD ST AND E LI MT VERNON AVE TH E 44 FT TH N 140 FT TH W 44 FT TH S 140 FT TO POB APN: 0139-291-61 RSB PTN LOT 9 BLK 18 DESC AS BEG AT PT ON W LI OF LOT 9 173.54 FT S OF NW COR LOT 9 TH S ALG W LI OF LOT 9 91.54 FT M/L TO PT 265.08 FT S OF NW COR LOT 9 TH E 135 FT TH N 91.62 FT M/L TO PT 172.54 FT S OF N LI OF LOT 9 TH W 135 FT TO POB Address: APN: 757 N. Mt. Vernon Avenue 0139-291-60 Address: APN: 761 N. Mt. Vernon Avenue 0139-291-61 12.e Packet Pg. 472 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit D.Attachment 5 (6858 : Resolution Approving B-3 EXHIBIT B DEED NOT FOR SIGNATURE RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: “BUYERS” APNs: 0139-291-60 and 0139-291-61 [Space above for recorder.] DOCUMENTARY TRANSFER TAX $ ______ computed on the consideration or value of property conveyed; OR computed on the consideration or value less liens or encumbrances remaining at time of sale. Signature of Declarant or Agent determining tax - Firm Name GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the Successor Agency to the Redevelopment Agency of the City of San Bernardino, a public entity, corporate and politic (“Grantor”), hereby grants to the Mat Baburyan, trustee of the Mat Baburyan Revocable Trust, dated February 21, 2017 (“Grantee”), that certain real property located in the City of San Bernardino, County of San Bernardino, State of California, more particularly described on Attachment No. 1 attached hereto and incorporated herein by this reference (the “Property”), subject to existing easements, restrictions and covenants of record. IN WITNESS WHEREOF, Grantor has executed this Grant Deed as of __________, 2020. SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: NOT FOR SIGNATURE Teri Ledoux Executive Director 12.e Packet Pg. 473 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit D.Attachment 5 (6858 : Resolution Approving ATTACHMENT NO. 1 TO GRANT DEED TO EXHIBIT B ATTACHMENT NO. 1 TO GRANT DEED LEGAL DESCRIPTION APN: 0139-291-60 RSB PTN LOT 9 BLK 18 DESC AS BEG AT PT ON W LI OF LOT 9 265.08 FT S OF NW COR LOT 9 TH S 50.92 FT M/L TO N LI OF LEONARD ST TH E ALG N LI OF LEONARD ST 135 FT TH N 50.92 FT M/L TO PT 265.08 FT S OF N LI OF LOT 9 TH W 135 FT TO POB AND E 44.16 FT W 179.L6 FT S 142.5 FT N 315.08 FT AND COM 179.16 FT E OF INTERSECTION N LI LEONARD ST AND E LI MT VERNON AVE TH E 44 FT TH N 140 FT TH W 44 FT TH S 140 FT TO POB APN: 0139-291-61 RSB PTN LOT 9 BLK 18 DESC AS BEG AT PT ON W LI OF LOT 9 173.54 FT S OF NW COR LOT 9 TH S ALG W LI OF LOT 9 91.54 FT M/L TO PT 265.08 FT S OF NW COR LOT 9 TH E 135 FT TH N 91.62 FT M/L TO PT 172.54 FT S OF N LI OF LOT 9 TH W 135 FT TO POB Address: APN: 757 N. Mt. Vernon Avenue 0139-291-60 Address: APN: 761 N. Mt. Vernon Avenue 0139-291-61 12.e Packet Pg. 474 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit D.Attachment 5 (6858 : Resolution Approving A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) ) ss. COUNTY OF ____________ ) On _____________________________, before me, _______________________________ , Notary Public, (Print Name of Notary Public) personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT Individual Corporate Officer __________________________________________ Title(s) __________________________________________ Title Or Type Of Document Partner(s) Limited General Attorney-In-Fact Trustee(s) Guardian/Conservator Other: ________________________________ Signer is representing: Name Of Person(s) Or Entity(ies) __________________________________________ __________________________________________ __________________________________________ Number Of Pages __________________________________________ Date Of Documents __________________________________________ Signer(s) Other Than Named Above 12.e Packet Pg. 475 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit D.Attachment 5 (6858 : Resolution Approving C-1 EXHIBIT C FIRPTA CERTIFICATE TRANSFEROR’S CERTIFICATE OF NON-FOREIGN STATUS To inform Mat Baburyan, trustee of the Mat Baburyan Revocable Trust, dated February 21, 2017 (the “Transferee”), that withholding of tax under Section 1445 of the Internal Revenue Code of 1986, as amended (“Code”) will not be required upon the transfer of certain real property to the Transferee by the Successor Agency to the Redevelopment Agency of the City of San Bernardino (the “Transferor”), the undersigned hereby certifies the following: 1. The Transferor is not a foreign person or citizen, foreign corporation, foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Code and the Income Tax Regulations promulgated thereunder); 2. The Transferor’s social security number or U.S. employer identification number is as follows: _________________. 3. The Transferor’s home or office address is: City of San Bernardino Successor Agency 290 N. “D” Street – 3rd Floor San Bernardino, CA 92401 The Transferor understands that this certification may be disclosed to the Internal Revenue Service by the Transferee and that any false statement contained herein could be punished by fine, imprisonment or both. Under penalty of perjury, I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct and complete, and I further decla re that I have authority to sign this document. Successor Agency to the Redevelopment Agency of the City of San Bernardino 12.e Packet Pg. 476 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Resolution Exhibit D.Attachment 5 (6858 : Resolution Approving PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS SELLER: Successor Agency to the Redevelopment Agency of the City of San Bernardino BUYERS: Mat Baburyan, trustee of the Mat Baburyan Revocable Trust, dated February 21, 2017 DATED: August 19, 2020 (757 and 761 North Mt. Vernon Avenue, San Bernardino, California APNs 0139-291-60 and 0139-291-61) 12.f Packet Pg. 477 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Attachment 6 (6858 : Resolution Approving PSA with Matt BASIC TERMS Buyers: Mat Baburyan, trustee of the Mat Baburyan Revocable Trust, dated February 21, 2017 Buyer’s Address: 718 E. Santa Anita Ave, Apt 2 Burbank, CA 91501 Tel. 818-400-4300 Email: arspac@yahoo.com City: The City of San Bernardino Closing Contingency Date: January 18, 2021 Closing Date (or Closing) Estimated to occur by November 2, 2020, but not later than the Outside Date Deed: A grant deed in the form of Exhibit “B” hereto Effective Date: August 19, 2020 Opening of Escrow: September 28, 2020 Escrow Holder: Commonwealth Land Title A Fidelity National Financial Company 888 S. Figueroa Street, Suite 2100 Los Angeles, CA 90017 Tel: (213) 330-3059 Attention: Crystal Leyvas, Vice President, National Accounts National Commercial Services Direct: (213) 330-3059; email: Cleyvas@cltic.com (or another escrow holder mutually acceptable to Buyer and Seller) Independent Consideration Amount: Two Hundred Dollars ($200.00) Outside Date: February 4, 2021; provided that such date may be extended by mutual writing agreement by Seller and Buyer Purchase Price: One Hundred Thirty-Three Thousand Dollars ($133,000) Real Property: That property described in Exhibit “A” hereto; the subject property is sometimes referred to as APNs 0139-291-60 and 0139-291-61 Seller: Successor Agency to the Redevelopment Agency of the City of San Bernardino 12.f Packet Pg. 478 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Attachment 6 (6858 : Resolution Approving PSA with Matt 2 Seller’s Address: 290 N. “D” Street – Third Floor San Bernardino, California 92418 Attention: Teri Ledoux, City Manager Tel. (909) 384-5122 Fax: (909) 384-5138 Email: Ledoux_Te@sbcity.org Soil and Title Contingency Date: December 17, 2020 Title Company: Commonwealth Land Title A Fidelity National Financial Company 888 S. Figueroa Street, Suite 2100 Los Angeles, CA 90017 Tel: (213) 330-3059 Attention: Crystal Leyvas, Vice President, National Accounts National Commercial Services direct: (213) 330-3059; email: Cleyvas@cltic.com (or another title company mutually acceptable to Buyer and Seller) 12.f Packet Pg. 479 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Attachment 6 (6858 : Resolution Approving PSA with Matt 3 PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS This PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (“Agreement”) is made and entered into as of August 19, 2020 (the “Effective Date”) by and between Seller and Buyer. RECITALS A. Seller is the fee owner of the Real Property. The Real Property is approximately 0.72 acres of vacant land. B. Seller has offered to sell to Buyer the Real Property described herein for the price and subject to the terms set forth below. Buyer has considered the offer by Seller and agrees to buy from Seller the Real Property, as more specifically described below. C. In addition to the Purchase Price, material considerations to Seller in agreeing to enter into this Agreement, Buyer has agreed to pay to Seller the Independent Consideration Amount; NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Buyer agree as follows: 1. Purchase and Sale. Seller hereby agrees to sell the Real Property to Buyer, and Buyer hereby agrees to purchase the Real Property from Seller, on the terms and conditions set forth in this Agreement. The term Real Property is defined collectively as the following: (a) The fee interest in the Real Property to be conveyed by a grant deed in the form of the Deed; and (b) All personal property, equipment, supplies, and fixtures owned by Seller and located at the Real Property. 2. Payment of Consideration. As consideration for the sale of the Real Property from Seller to Buyer, Buyer shall, at the Closing (as defined below), pay to Seller the Purchase Price for the Real Property. Upon payment of the Purchase Price (less any adjustments made to clear liens and to defray Seller’s costs of sale including, but not limited to, the preparation of legal documents and validation of the purchase price incurred by the City of San Bernardino and the Seller’s share of closing costs), the use of sales proceeds by Seller is a matter with which Buyer is not concerned . 3. Escrow and Independent Consideration. (a) Opening of Escrow. For the purposes of this Agreement, the escrow (“Escrow”) shall be deemed opened (“Opening of Escrow”) on the date that Escrow Holder receives a copy of this Agreement fully executed by Buyer and Se ller. Buyer and Seller shall use their best efforts to cause the Opening of Escrow to occur on or before five (5) business days after the Effective Date. Escrow Holder shall promptly notify Buyer and Seller in writing of the date of the Opening of Escrow. Buyer and Seller agree to execute, deliver and be bound by any reasonable or 12.f Packet Pg. 480 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Attachment 6 (6858 : Resolution Approving PSA with Matt 4 customary supplemental escrow instructions or other instruments reasonably required by Escrow Holder to consummate the transaction contemplated by this Agreement; provided, how ever, that no such instruments shall be inconsistent or in conflict with, amend or supersede any portion of this Agreement. If there is any conflict or inconsistency between the terms of such instruments and the terms of this Agreement, then the terms of this Agreement shall control. Without limiting the generality of the foregoing, no such instruments shall extinguish any obligations imposed by this Agreement or any other agreement between Seller and Buyer. (b) Independent Consideration. Within two (2) days after the Opening of Escrow, Buyer shall pay to Seller the Independent Consideration Amount to be retained by Seller as non-refundable independent consideration. The Independent Consideration Amount has been bargained for and agreed to as consideration for Seller’s execution and delivery of this Agreement and Seller holding the Real Property off the market for a period commencing as of the Effective Date and continuing until the Outside Date and for the rights and privileges granted to Buyer herein, including any and all rights granted to Buyer to terminate this Agreement under the circumstances provided for herein. Notwithstanding anything to the contrary contained in this Agreement, the Independent Consideration Amount shall be non-refundable in all events, except for (i) Seller’s default hereunder, (ii) the failure of the San Bernardino Countywide Oversight Board (the “CWOB”) to approve the sale of the Real Property as provided under this Agreement, and (iii) actions by the California Department of Finance (“DOF”) which prevent the disposition of the Real Property to Buyer as provided under this Agreement. If the Closing occurs, a credit shall be applied to the Purchase Price based upon payment of the Independent Consideration Amount. (c) Closing. For purposes of this Agreement, the “Closing” or “Closing Date” shall be the date the Deed (as defined below) is recorded pursuant to applicable law in the county in which the Real Property is located. Unless changed in writing by Buyer and Seller, the Closing shall occur on the Closing Date, or as soon thereafter as the conditions precedent to closing are satisfied pursuant to Sections 6 and 7 of this Agreement. If the Closing has not, for any reason, occurred by the Closing Date, then either Buyer or Seller may terminate this Agreement by delivering written notice to the other at any time after the Outside Closing Date; provided, however, that if either party is in default under this Agreement at the time of such termination, then such termination shall not affect the rights and remedies of the non -defaulting party against the defaulting party. 4. Seller’s Delivery of Real Property and Formation Documents. Within ten (10) days after the Effective Date, Seller shall deliver to Buyer the following items (c ollectively, the “Property Documents”): (a) Such proof of Sellers’ authority and authorization to enter into this Agreement and to consummate this transaction as may be reasonably requested by Buyer and the Title Company consistent with the terms of this Agreement, including without limitation approval of the CWOB of the sale of the Real Property by Seller to Buyer. In addition, Seller shall cause Escrow Holder to obtain and deliver to Buyer a Natural Hazard Report as provided for under Sections 1102 and 1103 of the California Civil Code (the “Natural Hazard Report”) on or before the Soil and Title Contingency Date. 5. Buyer’s Right of Entry. From and after the Opening of Escrow through the earlier to occur of the termination of this Agreement or the Soil and Title Contingency Date, or as 12.f Packet Pg. 481 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Attachment 6 (6858 : Resolution Approving PSA with Matt 5 otherwise agreed in writing by Seller prior to entry is effected, Buyer and Buyer’s employees, agents, consultants and contractors shall have the right to enter upon the Real Property during normal business hours, provided reasonable prior notice has been given to Seller. (a) Investigation of the Real Property. In addition to the foregoing, the Buyer shall have the right, at its sole cost and expense, prior to the Soil and Title Contingency Date, to engage its own environmental consultant (the “Environmental Consultant”) to make such investigations as Buyer deems necessary or appropriate, including any “Phase 1” or “Phase 2” investigations of the Real Property. If, based upon such evaluation, inspections, tests or investigation, Buyer determines that it, in its discretion, does not wish to proceed with purchase of the Real Property based upon the condition of the Real Property, Buyer may cancel this Agreement by giving written notice of termination to Seller on or before the Soil and Title Contingency Date which specifically references this Section 5. If Buyer does not cancel this Agreement by the time allowed under this Section 5, Buyer shall be deemed to have approved the evaluation, inspections and tests as provided herein and to have elected to proceed with this transaction on the terms and conditions of this Agreement. Buyer shall provide a copy to the Seller of all reports and test results provided by Buyer’s Environmental Consultant promptly after receipt by the Buyer of any s uch reports and test results without any representation or warranty as to their accuracy or completeness . Buyer shall bear all costs, if any, associated with restoring the Real Property to substantially the same condition prior to its testing by or on beha lf of Buyer if requested to so do by Seller but excluding any latent defects or Hazardous Materials (as defined below) discovered by Buyer during its investigation of the Real Property. Buyer agrees to indemnify, protect, defend (with counsel satisfactory to Seller) and hold Seller and the Real Property free and harmless from and against all costs, claims, losses, liabilities, damages, judgments, actions, demands, attorneys’ fees or mechanic’s liens arising out of or resulting from any entry or activities o n the Real Property by Buyer, Buyer’s agents, contractors or subcontractors and the contractors and subcontractors of such agents, but in no event shall the indemnity of this Section include the discovery of pre -existing conditions by Buyer or any such liabilities, costs, etc. arising from the negligence or willful misconduct of Seller and/or its consultants. The indemnity obligations of Buyer set forth in this Section 5(a) shall survive any termination of this Agreement or the Close of Escrow. “Hazardous Materials” means any substance, material, or waste which is or becomes regulated by any local governmental authority, the County, the State of California, regional governmental authority, or the United States Government, including, but not limited to, any material or substance which is (i) defined as a “hazardous waste,” “extremely hazardous waste,” or “restricted hazardous waste” under Sections 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law), (ii) defined as a “hazardous substance” under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter-Presley-Tanner Hazardous Substance Account Act), (iii) defined as a “hazardous material,” “hazardous substance,” or “hazardous waste” under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) defined as a “hazardous substance” under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) petroleum, (vi) friable asbestos, (vii) polychlorinated biphenyls, (viii) listed under Article 9 or defined as “hazardous” or “extremely hazardous” pursuant to Article 11 of Title 22 of the California Administrative Code, Division 4, Chapter 20, (ix) designated as “hazardous substances” pursuant to Section 311 of the Clean Water Act (33 U.S.C. §1317), (x) defined as a “hazardous waste” pursuant to Section 1004 of the Resource 12.f Packet Pg. 482 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Attachment 6 (6858 : Resolution Approving PSA with Matt 6 Conservation and Recovery Act, 42 U.S.C. §6901 et seq. (42 U.S.C. §6903) or (xi) defined as “hazardous substances” pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. §9601 et seq. (b) No Warranties as to the Real Property. The physical condition and possession of the Real Property, is and shall be delivered from Seller to Buyer in an “as is” condition, with no warranty expressed or implied by Seller, including without limitation, the presence of Hazardous Materials or the condition of the soil, its geology, the presence of known or unknown seismic faults, or the suitability of the Real Property for development purposes. In addition, Seller makes no representations, warranties or assurances concerning the Real Property, its suitability for any particular use or with regard to the approval process for entitlements as to the Real Property. (c) Buyer Precautions after Closing. Upon and after the Closing, Buyer shall take all necessary precautions to prevent the release into the environment of any Hazardous Materials which are located in, on or under the Real Property. Such precautions shall include compliance with all laws, ordinances, statutes, codes, rules, regulations, orders, and decrees of the United States, the state, the County, the City, or any other political subdivision in which the Real Property is located, and of any other political subdivision, agency, or instrumentality exercising jurisdiction over the Real Property (“Governmental Requirements”) with respect to Hazardous Materials. 6. Buyer’s Conditions Precedent and Termination Right. (a) Conditions Precedent. The Closing and Buyer’s obligation to consummate the purchase of the Real Property under this Agreement are subject to the timely satisfaction or written waiver of the following conditions precedent (collectively, “Buyer’s Contingencies”), which are for Buyer’s benefit only. (i) Title Review. Within twenty (20) calendar days after the Opening of Escrow, Seller shall cause the Title Company to deliver to Buyer a preliminary title report (the “Report”) describing the title to the Real Property, together with copies of the plotted easements and the exceptions (the “Exceptions”) set forth in the Report; provided that the cost of the Report shall be borne by Seller. Seller acknowledges that the Buyer’s Title Policy shall include an endorsement against the effect of any mechanics’ liens; Seller will provide such indem nity or other assurances as necessary to induce the Title Company to provide such endorsement. On or before the Soil and Title Contingency Date, Buyer shall have approved in writing, in Buyer’s sole discretion, any matters of title disclosed by the following (collectively, the “Title Documents”): (i) the Report; (ii) the Exceptions; (iii) the legal description of the Real Property and (iv) any survey Buyer desires to obtain at Buyer’s sole cost and expense. Buyer shall have the same rights to approve or disapprove any exceptions to title that are not created by Buyer and that come into existence after issuance of the Report but prior to Closing. Seller shall, on or before the Closing, remove all deeds of trust, mortgages, and delinquent taxes (but not the lien for any real property taxes or assessments not yet delinquent). (ii) Buyer’s Title Policy. On or before the Closing, the Title Company shall, upon payment (by Buyer) of the Title Company’s premium, have agreed to issue to Buyer, a standard ALTA owner’s policy of title insurance insuring only as to matters of record title (“Standard Buyer’s Title Policy”) in the amount of the Purchase Price showing fee title to the Real 12.f Packet Pg. 483 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Attachment 6 (6858 : Resolution Approving PSA with Matt 7 Property vested solely in Buyer and subject only to the (i) the standard, preprinted exceptions to Buyer’s Title Policy; (ii) liens to secure payment of real estate taxes or assessments not yet delinquent; (iii) matters affecting the Real Property created by or with the written consent of Buyer; and (iv) those matters specifically approved in writing by Buyer. Buyer shall have the right, at its sole cost and expense, to obtain coverage beyond that offered by a Standard Buyer’s Title Policy (such as an owner’s extended coverage ALTA policy); provided, however, that Buyer’s ability to obtain such extended coverage shall not be a Buyer’s Contingency and Buyer’s obligations hereunder shall in no way be conditioned or contingent upon obtaining such extended coverage. Buyer shall have sole responsibility for ob taining, and bearing the cost of, any endorsements and for any survey or other matters required by the Title Company for such extended coverage. In the event Buyer enters into a loan agreement to generate moneys to purchase the Real Property from Seller under this Agreement, Buyer and not Seller shall be responsible for the title insurance, closing costs and any other costs, fees or expenses in relation to Buyer obtaining such loaned moneys. The sale shall be all cash to Seller. (iii) Physical and Legal Inspections and Studies. On or before Soil and Title the Contingency Date, Buyer shall have approved in writing, in Buyer’s sole and absolute discretion, the results of any physical and legal (but not feasibility or economic) inspections, investigations, tests and studies Buyer elects to make or obtain, including, but not limited to, investigations with regard to zoning, building codes and other governmental regulations; engineering tests; soils, seismic and geologic reports; environmental audits, inspections and studies; environmental investigation or other invasive or subsurface testing; and any other physical or legal inspections and/or investigations as Buyer may elect to make or obtain. (iv) Natural Hazard Report. Seller shall cause the Escrow Holder to provide to Buyer prior to the Soil and Title Contingency Date the Natural Hazard Report described at Section 8(a)(iii) of this Agreement; provided that Seller shall bear the cost to prepare such Natural Hazard Report. (v) Property and Formation Documents. On or before the Soil and Title Contingency Date, Buyer shall have approved in writing, in Buyer’s reasonable discretion, the terms, conditions and status of all of the Property Documents. (vi) Delivery of Documents. Seller’s delivery of all documents described in Section 8, below. (vii) Representations and Warranties. All representations and warranties of Seller contained in this Agreement shall be materially true and correct as of the date made and as of the Closing. (viii) Title Company Confirmation. The Title Company shall have confirmed that it is prepared to issue the Buyer’s Title Policy consistent with the provisions of this Agreement. (ix) CWOB and DOF Approval. The CWOB and, if required as a condition of the issuance of title insurance or by either party hereto, approval by DOF, shall have been given as to the disposition of the Real Property by Seller to Buyer under this Agreement. 12.f Packet Pg. 484 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Attachment 6 (6858 : Resolution Approving PSA with Matt 8 (x) No Default. As of the Closing, Seller shall not be in default in the performance of any material covenant or agreement to be performed by Seller unde r this Agreement. (b) Termination Right. Each of (i), (ii) and (iii) shall operate independently and each shall entitle Seller to terminate this Agreement, as follows: (i) If the Independent Consideration Amount is not paid by Buyer to Seller by the time set forth therefor in Section 3(b)(i) of this Agreement, then this Agreement shall terminate upon Seller giving notice thereof to Buyer; (ii) If any of Buyer’s Contingencies are not met by the Closing Contingency Date, and Seller so informs Buyer, Buyer may, by written notice to Seller, terminate this Agreement. If this Agreement is so terminated, then (except to the extent expressly allocated to one party hereto by this Agreement) any escrow, title or other cancellat ion fees shall be paid by Buyer, unless Seller is in default hereunder, in which case Seller shall pay all such fees. If the Agreement has not been terminated pursuant to (i) or (ii) of this Section 6(b) and Buyer has not terminated this Agreement in writing (“Termination Notice”) on or before 5:00 p.m. on the Monday preceding the scheduled Closing (“Termination Notice Deadline”), then all such Buyer’s Contingencies shall be deemed to have been satisfied and this Agreement shall continue pursuant to its te rms. If Buyer has not delivered a Termination Notice as the items set forth in Sections 6(a)(i)-(xi) inclusive, prior to the Termination Notice Deadline, such Buyer’s Contingencies shall be deemed to have been satisfied. If this Agreement is terminated, then (except to the extent expressly allocated to one party hereto by this Agreement) any escrow, title or other cancellation fees shall be paid by Buyer, unless Seller is in default hereunder, in which case Seller shall pay all such fees. (c) Seller’s Cure Right. Buyer shall notify Seller, in Buyer’s Termination Notice, of Buyer’s disapproval or conditional approval of any Title Documents. Seller shall then have the right, but not the obligation, to (i) remove from title any disapproved or conditionally approved Exception(s) (or cure such other title matters that are the basis of Buyer’s disapproval or conditional approval of the Title Documents) within five (5) business days after Seller’s receipt of Buyer’s Termination Notice, or (ii) provide assurances reasonably satisfactory to Buyer that such Exception(s) will be removed (or other matters cured) on or before the Closing. With respect to any such Exception, it shall be sufficient for purposes hereof for Seller to commit in writing, within the applicable period, to remove such Exception at or before the Closing. Seller’s failure to remove such Exception after committing to do so shall be a default hereunder. An Exception shall be deemed removed or cured if Seller furnishes Buyer with evidence that the Titl e Company will issue the Buyer’s Title Policy, as defined herein, at the Closing deleting such Exception or providing an endorsement (at Seller’s expense) reasonably satisfactory to Buyer concerning such Exception. If Seller cannot or does not remove or a gree to remove any of the disapproved Exception(s) (or cure other matters) within such five (5) business day period, Buyer shall have three (3) business days after the expiration of such five (5) business day period to give Seller written notice that Buyer elects to proceed with the purchase of the Real Property subject to the disapproved Title Document(s), it being understood that Buyer shall have no further recourse against Seller for such disapproved Title Exception(s). 12.f Packet Pg. 485 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Attachment 6 (6858 : Resolution Approving PSA with Matt 9 7. Seller’s Conditions Precedent and Termination Right. The Closing and Seller’s obligations with respect to the transaction contemplated by this Agreement are subject to the timely satisfaction or written waiver of the following condition precedent (“Seller’s Contingencies”), which are for Seller’s benefit only: (a) Completion of Title Review. Seller shall have received written confirmation from Buyer on or before the Soil and Title Contingency Date that Buyer has completed its review of title and that the condition of title satisfactory. (b) Confirmation Concerning Site. Seller shall have received written confirmation from Buyer on or before the Soil and Title Contingency Date that Buyer has reviewed the condition of the Real Property, including without limitation concerning Hazardous Materia ls, zoning and suitability, and approves the condition of the Real Property. (c) Confirmation Regarding Buyer’s Title Policy. Seller shall have received written confirmation from Buyer on or before the Soil and Title Contingency Date that Buyer has approved a pro forma title policy. (d) Liens. Seller shall have obtained the consent of any lien holder to the release of such liens prior to or concurrent with closing. (e) CWOB and DOF Approval. The approval by the CWOB and DOF shall have been given as to the disposition of the Real Property by Seller to Buyer under this Agreement. (f) Delivery of Documents. Buyer’s delivery of all documents described in Section 9(a), below. Should any of Buyer’s Contingencies not be met by the respective times set forth for the satisfaction for such contingency (and without regard to whether all such contingencies have been removed or satisfied) and Buyer has so informed Seller, Seller may, by written notice to Buyer, terminate this Agreement; such termination rights shall be in addition to those termination rights of Seller as set forth in Section 6. If this Agreement is so terminated, then (except to the extent expressly allocated to one party hereto by this Agreement) any escrow, title or other cancellation fees shall be paid by Buyer. 8. Seller’s Deliveries to Escrow Holder. (a) Seller’s Delivered Documents. At least one (1) business day prior to the Closing Date, Seller shall deposit or cause to be deposited with Escrow Holder the following items, duly executed and, where appropriate, acknowledged (“Seller’s Delivered Items”): (i) Deed. The Deed. (ii) FIRPTA/Tax Exemption Forms. The Transferor’s Certification of Non-Foreign Status in the form attached hereto as Exhibit C (the “FIRPTA Certificate”), together with any necessary tax withholding forms, and a duly executed California Form 593, as applicable (the “California Exemption Certificate”). (iii) Hazard Disclosure Report. Unless earlier delivered to Buyer, Seller shall cause Escrow Holder to obtain and deliver to Buyer, at Seller’s cost, a Natural Hazard Report 12.f Packet Pg. 486 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Attachment 6 (6858 : Resolution Approving PSA with Matt 10 as provided for under Sections 1102 and 1103 of the California Civil Code (the “Natural Hazard Report”) before the Closing. (iv) Possession of Real Property. Possession of the Real Property free of any tenancies or occupancy. (v) Authority. Such evidence of Seller’s authority and authorization to enter into this Agreement and to consummate this transaction as may be reasonably requested by Buyer and the Title Company which are consistent with the terms of this Agreement. (vi) Further Documents or Items. Any other documents or items reasonably required to close the transaction contemplated by this Agreement as determined by the Title Company which are consistent with the terms of this Agreement . (b) Failure to Deliver. Should any of Seller’s Delivered Items not be timely delivered to Escrow, Buyer may, by written notice to Seller, terminate this Agreement; provided, however, that Buyer may (but shall not be obligated to) in such notice provide Seller with five (5) business days to deliver all of Seller’s Delivered Items. If Buyer’s notice provides Seller such five (5) business days to deliver Seller’s Delivered Items, and if Seller’s Delivered Items are not delivered within such period, then this Agreement shall a utomatically terminate without further action or notice. In the event of any such termination, any cash deposited by Buyer shall immediately be returned to Buyer. Under no circumstances shall Buyer have any responsibility to or duty to pay consultants or real estate brokers retained by Seller, Seller being solely responsible in connection with any such contractual arrangements of Seller. 9. Buyer’s Deliveries to Escrow. At least one (1) business day prior to the Closing Date, Buyer shall deposit or cause to be deposited with Escrow Holder the following, each duly executed and acknowledged, by Buyer as appropriate (“Buyer’s Delivered Items”): (a) Purchase Price. The Purchase Price, less amounts which Seller confirms in writing to Escrow Holder were theretofore paid to Seller as the Independent Consideration Amount, together with additional funds as are necessary to pay Buyer’s closing costs set forth in Section 10(b) herein. In the event Seller does not qualify for an exemption from California withholding tax under Section 18662 of the California Revenue and Taxation Code, as evidenced by the delivery at Closing of the California Exemption Certificate duly executed by Seller, Title Company shall withhold three and one-third percent (3-1/3%) of the Purchase Price on behalf of Buyer for payment to the California Franchise Tax Board in accordance with Section 11(b) hereof. In the event Seller is not exempt from such withholding or does not otherwise deliver the California Exemption Certificate at Closing, Buyer shal l execute and deliver three (3) originals of California Form 593 to Title Company at or immediately after Closing. (b) Change of Ownership Report. One (1) original Preliminary Change of Ownership Report. (c) Final Escrow Instructions. Buyer’s final written escrow instructions to close escrow in accordance with the terms of this Agreement. 12.f Packet Pg. 487 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Attachment 6 (6858 : Resolution Approving PSA with Matt 11 (d) Authority. Such proof of Buyer’s authority and authorization to enter into this Agreement and to consummate the transaction contemplated hereby as may be reasonably requested by Seller or the Title Company. (e) Moneys for Buyer’s Real Estate Broker. Buyer shall deposit any moneys due and payable to Buyer’s Real Estate Broker in connection with the sale of the Real Property. (f) Further Documents or Items. Any other documents or items reasonably required to close the transaction contemplated by this Agreement as determined by the Title Company. 10. Costs and Expenses. (a) Seller’s Costs. If the transaction contemplated by this Agreement is consummated, then Seller shall be debited for and bea r the following costs: (i) costs and charges associated with the removal of encumbrances; (ii) Seller’s share of prorations; (iii) the premium for a Standard Buyer’s Title Policy with coverage in the amount of the Purchase Price; (iv) documentary recording fees, if any; (v) documentary transfer tax, if any; (vi) Seller’s Real Estate Broker’s Commission of Thirteen Thousand Dollars ($13,000) which the parties acknowledge and agree that at Close of Escrow, Seller shall pay Seller’s Real Estate Broker’s Commi ssion for sale of the Property in accordance with Seller’s listing agreement with Seller’s Real Estate Broker and that the broker's commission shall be divided equally between Buyer's Real Estate Broker and Seller's Real Estate Broker; (vii) one half of the escrow charges; and (viii) costs, if any, allocable to Seller under this Agreement and costs for such services as Seller may additionally request that Escrow perform on its behalf (which foregoing items collectively constitute “Seller’s Costs and Debited Amounts”). (b) Buyer’s Costs. If the transaction contemplated by this Agreement is consummated, then Buyer shall bear the following costs and expenses: (i) the Escrow Holder’s fee; (ii) Buyer’s share of prorations, (iii) the premium for title insurance othe r than or in excess of a Standard Buyer’s Title Policy based on the Purchase Price, and, if applicable, the cost for any survey required in connection with the delivery of an ALTA owner’s extended coverage policy of title insurance; (iv) one half of escrow charges; (v) recording and other costs of closing; (vi) costs, if any, for such services as Buyer may additionally request that Escrow perform on its behalf; and (vii) any costs associated with Buyer borrowing money in order to pay to Seller the Purchase Price (collectively, “Buyer’s Costs and Debited Amounts”). (c) Generally. Each party shall bear the costs of its own attorneys, consultants, and real estate brokers, other than broker’s commission, in connection with the negotiation and preparation of this Agreement and the consummation of the transaction contemplated hereby. The parties acknowledge and agree that at Close of Escrow, Seller shall pay Seller’s Real Estate Broker’s Commission for sale of the Property in accordance with Seller’s listing agreemen t with Seller’s Real Estate Broker and that the broker's commission shall be divided equally between Buyer's Real Estate Broker and Seller's Real Estate Broker. 11. Prorations; Withholding. (a) All revenues (if any) and expenses relating to the Real Property (including, but not limited to, property taxes, utility costs and expenses, water charges and sewer rents and 12.f Packet Pg. 488 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Attachment 6 (6858 : Resolution Approving PSA with Matt 12 refuse collection charges) shall be prorated as of the Closing Date; provided tha t all delinquent taxes shall be satisfied at the expense of Seller. Not less than five (5) business days prior to the Closing, Seller shall deliver to Buyer a tentative schedule of prorations for Buyer’s approval (the “Proration and Expense Schedule”). If any prorations made under this Section shall require final adjustment after the Closing, then the parties shall make the appropriate adjustments promptly when accurate information becomes available and either party hereto shall be entitled to an adjustme nt to correct the same. Any corrected or adjustment proration shall be paid promptly in cash to the party entitled thereto. (b) In the event Seller does not qualify for an exemption from California withholding tax under Section 18662 of the California Revenue and Taxation Code (the “Tax Code”) as evidenced by the delivery to Buyer at Closing of the California Exemption Certificate duly executed by Seller, (i) Title Company shall withhold three and one-third percent (3-1/3%) of the Purchase Price on behalf of Buyer at Closing for payment to the California Franchise Tax Board in accordance with the Tax Code, (ii) Buyer shall deliver three (3) duly executed copies of California Form 593 to Title Company at or immediately after Closing, (iii) two (2) copies of California Form 593 shall be delivered by Title Company to Seller, and (iv) on or before the 20th day of the month following the month title to the Real Property is transferred to Buyer (as evidenced by the recording of the Grant Deed), Title Company shall remit such funds withheld from the Purchase Price, together with one (1) copy of California Form 593 to the California Franchise Tax Board on behalf of Buyer. Buyer and Seller hereby appoint Title Company as a reporting entity under the Tax Code, authorized to withhold and remit the withholding tax contemplated under the Tax Code, together with such other documents required by the Tax Code (including, without limitation, California Form 593), to the California Franchise Tax Board. 12. Closing Procedure. When the Title Company is unconditionally prepared (subject to payment of the premium therefor) to issue the Buyer’s Title Policy and all required documents and funds have been deposited with Escrow Holder, Escrow Holder shall immediately close Escrow in the manner and order provided below. (a) Recording. Escrow Holder shall cause the Deed to be recorded pursuant to applicable law in the county in which the Real Property is located and obtain conformed copies thereof for distribution to Buyer and Seller. (b) Disburse Funds. Escrow Holder shall debit or credit (as provided herein) all Buyer’s Costs and Debited Amounts, Seller’s Costs and Debited Amounts and General Expenses, prorate matters and withhold funds as provided herein. The Purchase Price, less any applicable debits or credits (including any liens as to which such liens and the amount to satisfy such liens shall have been confirmed in writing by Seller to Escrow Holder) shall be distributed by check payable to Seller unless Escrow Holder is instructed otherwise in writing signed by Seller (and, in such event, in accordance with such instructions). Seller authorizes Escrow Holder to request demands for payment and to make such payments from the Purchase Price (or such other funds, if any, as are advanced by Seller) to defray the cost of removing deeds of trust, liens and other encumbrances (but not for obligations of Buyer). Escrow Holder shall disburse on behalf of Buyer such moneys as are deposited by Buyer (in addition to the Purchase Price and Buyer’s share of closing costs) as the commission for Buyer’s Real Estate Broker (unless Buyer’s Real Estate Broker shall deliver a written statement to Escrow Holder which indicates that Buyer has arranged to pay Buyer’s Real Estate Broker outside escrow and that payment of such remuneration is a matter with respect to which Escrow Holder and Seller need not be concerned). 12.f Packet Pg. 489 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Attachment 6 (6858 : Resolution Approving PSA with Matt 13 (c) Documents to Seller. Escrow Holder shall deliver to Seller a conformed copy of the Deed, and documents, if any, recorded on behalf of any lender, as duly recorded among the official land records of the County of San Bernardino, and a copy of each other document (or copies thereof) deposited into Escrow by Buyer pursuant hereto. (d) Documents to Buyer. Escrow Holder shall deliver to Buyer the original FIRPTA Certificate, the original California Exemption Certificate (as applicable), and a conformed copy of each of the Deed as duly recorded among the official land records of the County of San Bernardino, the Natural Hazard Report, and each other document (or c opies thereof) deposited into Escrow by Seller pursuant hereto, including, without limitation, those documents referenced in Section 8. (e) Title Company. Escrow Holder shall cause the Title Company to issue the Buyer’s Title Policy to Buyer. (f) Closing Statement. Escrow Holder shall forward to both Buyer and Seller a separate accounting of all funds received and disbursed for each party. (g) Informational Reports. Escrow Holder shall file any information reports required by Internal Revenue Code Section 6045(e), as amended. (h) Possession. Possession of the Real Property shall be delivered to Buyer at the Closing. 13. Representations and Warranties. (a) Seller’s Representations and Warranties. In consideration of Buyer entering into this Agreement and as an inducement to Buyer to purchase the Real Property, Seller makes the following representations and warranties as of the Effective Date and as of the Closing, each of which is material and is being relied upon by Buyer (and the truth and accuracy of which shall constitute a condition precedent to Buyer’s obligations hereunder), and all of which are material inducements to Buyer to enter into this Agreement (and but for which Buyer would not have entered into this Agreement) and shall survive Closing; provided that each of the representations and warranties of Seller is based upon the information and belief of the Executive Director of the Successor Agency: (i) Seller believes that it has the legal power, right and authority to enter into this Agreement and the instruments referenced herein, and to consummate the transaction contemplated subject to the approval of the CWOB and, as may be applicable, DOF. (ii) Subject to the approval of the CWOB and, as may be applicable, DOF, Seller believes that all requisite action (corporate, trust, partnership or otherwise) has been taken by Seller in connection with entering into this Agreement and the instruments referenced herein; and, by the Closing, all such necessary action will have been taken to authorize the consummation of the transaction contemplated hereby. (iii) Subject to the approval of the CWOB and, as may be applicable, DOF, the individual executing this Agreement and the instruments referenced herein on behalf of 12.f Packet Pg. 490 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Attachment 6 (6858 : Resolution Approving PSA with Matt 14 Seller has the legal power, right and actual authority to bind Seller to the terms and conditions hereof and thereof. (iv) Seller believes that neither the execution or delivery of this Agreement or the documents or instruments referenced herein, nor incurring the obligations set forth herein, nor the consummation of the transaction contemplated herein, nor compliance with the terms of this Agreement or the documents or instruments referenced herein or therein conflict with or result in the material breach of any terms, conditions or provisions of, or constitute a default under, any bond, note or other evidence of indebtedness or any contract, indenture, mortgage, deed of trust, loan, lease or other agreement or instrument to which Seller is a party or that affect the Real Property, including, but not limited to, any of the Title Documents or the Property Documents. (v) There is no pending litigation nor, to the best of Seller’s knowledge, threatened litigation, which does or will adversely affect the right of Seller to convey the Real Property. There are no claims which have been received by Seller that have not been disclosed to Buyer. (vi) Seller has made no written or oral commitments to or agreements with any governmental authority or agency materially and adversely affecting the Real Property, or any part hereof, or any interest therein, which will survive the Closing. (vii) There are no leases or rental agreements in effect as to the Real Property. (viii) Seller is not in default of its obligations under any contract, agreement or instrument to which Seller is a party pertaining to the Real Property. (ix) There are no mechanics’, materialmen’s or similar claims or liens presently claimed or which will be claimed against the Real Property for work performed or commenced for Seller or on Seller’s behalf prior to the date of this Agreement. (x) There are no undisclosed contracts, licenses, commitments, undertakings or other written or oral agreements for services, supplies or materials concerning the use, operation, maintenance, or management of the Real Property that will be binding upon Buyer or the Real Property after the Closing. There are no oral contracts or other oral agreements for services, supplies or materials, affecting the use, operation, maintenance or management of the Real Property. (xi) There are not as of the Effective Date, nor will there be as of the Closing, any written or oral leases or contractual right or option to lease, purchase, or otherwise enjoy possession, rights or interest of any nature in and to the Real Property or any part thereof, and no person other than Buyer shall have any right of possession to the Real Property or any part thereof as of the Closing. (xii) No person, excepting Seller, has possession or any rights to possession of the Real Property or portion thereof. (b) Subsequent Changes to Seller’s Representations and Warranties. If, prior to the Closing, Buyer or Seller should learn, discover or become aware of any existing or new item, 12.f Packet Pg. 491 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Attachment 6 (6858 : Resolution Approving PSA with Matt 15 fact or circumstance which renders a representation or warranty of Seller set forth herein incorrect or untrue in any respect (collectively, the “Seller Repre sentation Matter”), then the party who has learned, discovered or become aware of such Representation Matter shall promptly give written notice thereof to the other party and Seller’s representations and warranties shall be automatically limited to account for the Representation Matter. Buyer shall have the right to approve or disapprove any such change and to terminate this Agreement by written notice to Seller if Buyer reasonably disapproves any such change. If Buyer does not elect to terminate this Agr eement, Seller’s representation shall be qualified by such Seller Representation Matter and Seller shall have no obligation to Buyer for such Seller Representation Matter. (c) Buyer’s Representations and Warranties. In consideration of Seller entering into this Agreement and as an inducement to Seller to sell the Real Property, Buyer makes the following representations and warranties as of the date hereof and at and as of the Closing, each of which is material and is being relied upon by Seller (and the truth and accuracy of which shall constitute a condition precedent to Seller’s obligations hereunder), and all of which shall survive Closing: (i) Buyer has the legal power, right and authority to enter into this Agreement and the instruments referenced herein, and to consummate the transaction contemplated hereby. (ii) All requisite action has been taken by Buyer in connection with entering into this Agreement and the instruments referenced herein; and, by the Closing, all such necessary action will have been taken to authorize the consummation of the transaction contemplated hereby. (iii) The individuals executing this Agreement and the instruments referenced herein on behalf of Buyer have the legal power, right and actual authority to bind Buyer to the terms and conditions hereof and thereof. (iv) Neither the execution and delivery of this Agreement and the documents and instruments referenced herein, nor incurring the obligations set forth herein, nor the consummation of the transaction contemplated herein, nor compliance with t he terms of this Agreement and the documents and instruments referenced herein conflict with or result in the material breach of any terms, conditions or provisions of, or constitute a default under, any bond, note or other evidence of indebtedness or any contract, indenture, mortgage, deed of trust, loan, partnership agreement, lease or other agreement or instrument to which Buyer is a party or by which any of Buyer’s properties are bound. (d) Subsequent Changes to Buyer’s Representations and Warranties . If, prior to the Closing, Seller or Buyer should learn, discover or become aware of any existing or new item, fact or circumstance which renders a representation or warranty of Buyer set forth herein incorrect or untrue in any respect (collectively, the “Buyer’s Representation Matter”), then the party who has learned, discovered or become aware of such Buyer’s Representation Matter shall promptly give written notice thereof to the other party and Buyer’s representations and warranties shall be automatically limited to account for the Buyer’s Representation Matter. Seller shall have the right to approve or disapprove any such change and to terminate this Agreement by written notice to Buyer if Seller reasonably disapproves any such change. If Seller does not elect to terminate this 12.f Packet Pg. 492 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Attachment 6 (6858 : Resolution Approving PSA with Matt 16 Agreement, Buyer’s representation shall be qualified by such Buyer’s Representation Matter and Buyer shall have no obligation to Seller for such Buyer’s Representation Matter. 14. Fair Value Price. Each of Buyer and Seller believe that the Purchase Price represents a fair value price for the Real Property. At such time as Buyer makes improvements to the Real Property, the costs for planning, designing, and constructing such improvements shall be borne exclusively by the Buyer and the Buyer shall construct or cause to be constructed such improvements in compliance with all the zoning, planning and design review requirements of the San Bernardino Municipal Code, and all nondiscrimination, labor standard, and wage rate requirements to the extent such labor and wage requirements are applicable. Buyer, including but not limited to its contractors and subcontractors, shall be responsible to comply with Labor Code Section 1720, et seq., if applicable, and its implementing regulations, regarding the payment of prevailing wages (the “State Prevailing Wage Law”), if applicable, and, if applicable, federal prevailing wage law (“Federal Prevailing Wage Law” and, together with State Prevailing Wage Law, “Prevailing Wage Laws”) with regard to the constr uction of improvements to the Real Property, but only if and to the extent such sections are applicable to the development of the Real Property. Insofar as the parties understand that Buyer is paying a fair market price for the Real Property, the parties believe that the payment of prevailing wages will not be required. In any event, Buyer shall be solely responsible for determining and effectuating compliance with the Prevailing Wage Laws, neither the Seller nor the City makes any final representation as to the applicability or non-applicability of the Prevailing Wage Laws to improvements to the Real Property, or any part thereof. Buyer hereby releases from liability, and agrees to indemnify, defend, assume all responsibility for and hold each of the Seller and the City, and their respective officers, employees, agents and representatives, harmless from any and all claims, demands, actions, suits, proceedings, fines, penalties, damages, expenses resulting from, arising out of, or based upon Buyer’s acts or omissions pertaining to the compliance with the Prevailing Wage Laws as to the Real Property. This Section 14 shall survive Closing. 15. General Provisions. (a) Condemnation. If any material portion of the Real Property shall be taken or appropriated by a public or quasi-public authority exercising the power of eminent domain, Buyer shall have the right, at its option, to (i) terminate this Agreement or (ii) proceed with the purchase of the Real Property and receive all of the award or payment made in connection with such taking. (b) Notices. All notices, demands, requests or other communications required or permitted hereunder (collectively, “Notices”) shall be in writing, shall be addressed to the receiving party as provided in the Basic Terms section above, and shall be personall y delivered, sent by overnight mail (Federal Express or another carrier that provides receipts for all deliveries), sent by certified mail, postage prepaid, return receipt requested, or sent by facsimile transmission (provided that a successful transmission report is received). All Notices shall be effective upon receipt at the appropriate address. Notice of change of address shall be given by written notice in the manner detailed in this Section. Rejection or other refusal to accept or the inability to deliver because of changed address of which no Notice in accordance with this Section was given shall be deemed to constitute receipt of such Notice. The providing of copies of Notices to the parties’ respective counsels is for information only, is not re quired for valid Notice and does not alone constitute Notice hereunder. 12.f Packet Pg. 493 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Attachment 6 (6858 : Resolution Approving PSA with Matt 17 (c) Brokers. Seller assumes sole responsibility for any consultants or brokers (“Seller’s Agents”) it may have retained in connection with the sale of the Real Property (and Buyer shall have no responsibility in connection with such matters). Seller represents that it has engaged Keller Williams Realty as “Seller’s Real Estate Broker” and that Seller shall be solely responsible for any commission, cost, fee or compensation of any kind due to Seller’s Real Estate Broker. Seller represents to Buyer that Seller has not engaged any consultants, finders or real estate brokers other than Seller’s Real Estate Broker in connection with the sale of the Real Property to the Buyer, and there are no brokerage commission, finder’s fee or other compensation of any kind due or owing to any person or entity in connection with this Agreement other than Seller’s costs with respect to the Seller’s Real Estate Broker Commission. Seller agrees to and does hereby indemnify and hold the Buyer free and harmless from and against any and all costs, liabilities or causes of action or proceedings which may be instituted by any broker, agent or finder, licensed or otherwise, claiming through, under or by reason of the conduct of the Seller in connection with this Agreement. Buyer assumes sole responsibility for any consultants or brokers (“Buyer’s Agents”) it may have retained in connection with the purchase of the Real Property. Buyer represents that it has engaged Arsen Baburyan as “Buyer’s Real Estate Broker” and other than the portion of the Seller’s Real Estate Broker’s Commission that is payable to the Buyer’s Real Estate Broker per Section 10(a) of this Agreement, Buyer shall be solely responsible for any other cost, fee or compensation of any kind due to Buyer’s Real Estate Broker, if any. Buyer represents to Seller that Buyer has not engaged any consultants, finders or real estate brokers other than Buyer’s Real Estate Broker in connection with the sale of the Real Property to the Buyer, and there are no brokerage commission, finder’s fee or other compensation of any kind due or owing to any person or entity in connection with this Agreement. Buyer agrees to and does hereby indemnify and hold the Seller free and harmless from and against any and all costs, liabilities or causes of action or proceedings which may be instituted by any broker, agent or finder, licensed or otherwise, claiming through, under or by reason of the conduct of the Buyer in connection with this Agreement. The Parties acknowledge and agree that Buyer has been represented in this transaction by Arsen Baburyan as “Buyer’s Real Estate Broker.” At Close of Escrow, Seller shall pay Seller’s Real Estate Broker’s Commission for sale of the Property in accordance with Seller’s listing agreement with Seller’s Real Estate Broker. The broker's commission shall be divided equally between Buyer's Real Estate Broker and Seller's Real Estate Broker. (d) Waiver, Consent and Remedies. Each provision of this Agreement to be performed by Buyer and Seller shall be deemed both a covenant and a condition and shall be a material consideration for Seller’s and Buyer’s performance hereunder, as appropriate, and any breach thereof by Buyer or Seller shall be deemed a material default hereunder. Either party may specifically and expressly waive in writing any portion of this Agreement or any breach thereof, but no such waiver shall constitute a further or continuing waiver of a preceding or succeeding breach of the same or any other provision. A waiving party may at any time thereafter require further compliance by the other party with any breach or provision so waived. The consent by one party to any act by the other for which such consent was required shall not be deemed to imply consent or waiver of the necessity of obtaining such consent for the same or any similar acts in the future. No waiver or consent shall be implied from silence or any failure of a party to act, except as otherwise specified in this Agreement. All rights, remedies, undertakings, obligations, options, covenants, conditions and agreements contained in this Agreement shall be cumulative and no one of them shall be exclusive of any other. Except as otherwise specified herein, either party here to may pursue any one or more of its rights, options or remedies hereunder or may seek damages or specific performance in the event of the other party’s breach hereunder, or may pursue any other remedy at law or equity, whether or not stated in this Agreement. 12.f Packet Pg. 494 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Attachment 6 (6858 : Resolution Approving PSA with Matt 18 (e) Cooperation. Buyer and Seller agree to execute such instruments and documents and to diligently undertake such actions as may be required in order to consummate the purchase and sale herein contemplated and shall use all reasonable efforts to accompl ish the Closing in accordance with the provisions hereof and, following Closing. (f) Remedies. Without limitation as to the availability of other remedies, this Agreement may be enforced by an action for specific enforcement. (g) Time. Time is of the essence of every provision herein contained. In the computation of any period of time provided for in this Agreement or by law, the day of the act or event from which said period of time runs shall be excluded, and the last day of such period shall be included, unless it is a Saturday, Sunday, or legal holiday, in which case the period shall be deemed to run until 5:00 p.m. of the next day that is not a Saturday, Sunday, or legal holiday. Except as otherwise expressly provided herein, all time periods expiring on a specified date or period herein shall be deemed to expire at 5:00 p.m. on such specified date or period. (h) Counterparts; Facsimile Signatures. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of whi ch, together, shall constitute but one and the same instrument. A facsimile signature shall be deemed an original signature. (i) Captions. Any captions to, or headings of, the sections or subsections of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agreement, and shall not be used for the interpretation or determination of the validity of this Agreement or any provision hereof. (j) Obligations to Third Parties. City shall be deemed to be a third party beneficiary of this Agreement. Excepting only for the City, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, nor obligate any of the parties to this Agreement to, any person or entity other than the parties hereto. (k) Amendment to this Agreement. The terms of this Agreement may not be modified or amended except by an instrument in writing executed by each of the parties hereto. (l) Waiver. The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision or any other provision hereof. (m) Applicable Law. This Agreement shall be governed by and construed in accordance with the local law of the State of California. (n) Exhibits and Schedules. The exhibits and schedules attached hereto are incorporated herein by this reference for all purposes. (o) Entire Agreement. This Agreement supersedes any prior agreements, negotiations and communications, oral or written, including, without limitation, that certain Standard Offer, Agreement and Escrow Instructions for Purchase of Real Estate dated July 1, 2020, and contains the entire agreement between, and the final expression of, Buyer and Seller with respect to the subject matter hereof. The parties hereto expressly agree and confirm that this 12.f Packet Pg. 495 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Attachment 6 (6858 : Resolution Approving PSA with Matt 19 Agreement is executed without reliance on any oral or written statements, representations or promises of any kind which are not expressly contained in this Agreement. No subsequent agreement, representation or promise made by either party heret o, or by or to an employee, officer, agent or representative of either party hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby. (p) Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the permitted successors and assigns of the parties hereto. (q) Assignment. Neither party may assign its rights under this Agreement without the prior consent of the other party. [signatures begin on the following page] 12.f Packet Pg. 496 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Attachment 6 (6858 : Resolution Approving PSA with Matt 20 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. “SELLER” SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public entity, corporate and politic By: Teri Ledoux Executive Director “BUYERS” MAT BABURYAN, TRUSTEE OF THE MAT BABURYAN REVOCABLE TRUST, dated February 21, 2017 By: Name: Mat Baburyan Approved as to form: Gary D. Saenz, City Attorney By: ____________________________ 12.f Packet Pg. 497 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Attachment 6 (6858 : Resolution Approving PSA with Matt Acceptance by Escrow Holder: Commonwealth Land and Title Company hereby acknowledges that it has received a fully executed copy of the foregoing Purchase and Sale Agreement and Joint Escrow Instructions by and between the Successor Agency to the Redevelopment Agency of the City of San Bernardino, a public entity, corporate and politic (“Seller”), and Mat Baburyan, trustee of the Mat Baburyan Revocable Trust, dated February 21, 2017 (“Buyer”) and agrees to act as Escrow Holder thereunder and to be bound by and strictly perform the terms thereof as such terms apply to Escrow Holder. Dated: _____________, 2020 COMMONWEALTH LAND AND TITLE COMPANY By: Name: Its: 12.f Packet Pg. 498 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Attachment 6 (6858 : Resolution Approving PSA with Matt ATTACHMENT NO. 1 TO GRANT DEED TO EXHIBIT B EXHIBIT A LEGAL DESCRIPTION LEGAL DESCRIPTION APN: 0139-291-60 RSB PTN LOT 9 BLK 18 DESC AS BEG AT PT ON W LI OF LOT 9 265.08 FT S OF NW COR LOT 9 TH S 50.92 FT M/L TO N LI OF LEONARD ST TH E ALG N LI OF LEONARD ST 135 FT TH N 50.92 FT M/L TO PT 265.08 FT S OF N LI OF LOT 9 TH W 135 FT TO POB AND E 44.16 FT W 179.L6 FT S 142.5 FT N 315.08 FT AND COM 179.16 FT E OF INTERSECTION N LI LEONARD ST AND E LI MT VERNON AVE TH E 44 FT TH N 140 FT TH W 44 FT TH S 140 FT TO POB APN: 0139-291-61 RSB PTN LOT 9 BLK 18 DESC AS BEG AT PT ON W LI OF LOT 9 173.54 FT S OF NW COR LOT 9 TH S ALG W LI OF LOT 9 91.54 FT M/L TO PT 265.08 FT S OF NW COR LOT 9 TH E 135 FT TH N 91.62 FT M/L TO PT 172.54 FT S OF N LI OF LOT 9 TH W 135 FT TO POB Address: APN: 757 N. Mt. Vernon Avenue 0139-291-60 Address: APN: 761 N. Mt. Vernon Avenue 0139-291-61 12.f Packet Pg. 499 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Attachment 6 (6858 : Resolution Approving PSA with Matt B-3 EXHIBIT B DEED NOT FOR SIGNATURE RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: “BUYERS” APNs: 0139-291-60 and 0139-291-61 [Space above for recorder.] DOCUMENTARY TRANSFER TAX $ ______ computed on the consideration or value of property conveyed; OR computed on the consideration or value less liens or encumbrances remaining at time of sale. Signature of Declarant or Agent determining tax - Firm Name GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the Successor Agency to the Redevelopment Agency of the City of San Bernardino, a public entity, corporate and politic (“Grantor”), hereby grants to the Mat Baburyan, trustee of the Mat Baburyan Revocable Trust, dated February 21, 2017 (“Grantee”), that certain real property located in the City of San Bernardino, County of San Bernardino, State of California, more particularly described on Attachment No. 1 attached hereto and incorporated herein by this reference (the “Property”), subject to existing easements, restrictions and covenants of record. IN WITNESS WHEREOF, Grantor has executed this Grant Deed as of __________, 2020. SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: NOT FOR SIGNATURE Teri Ledoux Executive Director 12.f Packet Pg. 500 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Attachment 6 (6858 : Resolution Approving PSA with Matt ATTACHMENT NO. 1 TO GRANT DEED TO EXHIBIT B ATTACHMENT NO. 1 TO GRANT DEED LEGAL DESCRIPTION APN: 0139-291-60 RSB PTN LOT 9 BLK 18 DESC AS BEG AT PT ON W LI OF LOT 9 265.08 FT S OF NW COR LOT 9 TH S 50.92 FT M/L TO N LI OF LEONARD ST TH E ALG N LI OF LEONARD ST 135 FT TH N 50.92 FT M/L TO PT 265.08 FT S OF N LI OF LOT 9 TH W 135 FT TO POB AND E 44.16 FT W 179.L6 FT S 142.5 FT N 315.08 FT AND COM 179.16 FT E OF INTERSECTION N LI LEONARD ST AND E LI MT VERNON AVE TH E 44 FT TH N 140 FT TH W 44 FT TH S 140 FT TO POB APN: 0139-291-61 RSB PTN LOT 9 BLK 18 DESC AS BEG AT PT ON W LI OF LOT 9 173.54 FT S OF NW COR LOT 9 TH S ALG W LI OF LOT 9 91.54 FT M/L TO PT 265.08 FT S OF NW COR LOT 9 TH E 135 FT TH N 91.62 FT M/L TO PT 172.54 FT S OF N LI OF LOT 9 TH W 135 FT TO POB Address: APN: 757 N. Mt. Vernon Avenue 0139-291-60 Address: APN: 761 N. Mt. Vernon Avenue 0139-291-61 12.f Packet Pg. 501 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Attachment 6 (6858 : Resolution Approving PSA with Matt A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) ) ss. COUNTY OF ____________ ) On _____________________________, before me, _______________________________ , Notary Public, (Print Name of Notary Public) personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT Individual Corporate Officer __________________________________________ Title(s) __________________________________________ Title Or Type Of Document Partner(s) Limited General Attorney-In-Fact Trustee(s) Guardian/Conservator Other: ________________________________ Signer is representing: Name Of Person(s) Or Entity(ies) __________________________________________ __________________________________________ __________________________________________ Number Of Pages __________________________________________ Date Of Documents __________________________________________ Signer(s) Other Than Named Above 12.f Packet Pg. 502 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Attachment 6 (6858 : Resolution Approving PSA with Matt C-1 EXHIBIT C FIRPTA CERTIFICATE TRANSFEROR’S CERTIFICATE OF NON-FOREIGN STATUS To inform Mat Baburyan, trustee of the Mat Baburyan Revocable Trust, dated February 21, 2017 (the “Transferee”), that withholding of tax under Section 1445 of the Internal Revenue Code of 1986, as amended (“Code”) will not be required upon the transfer of certain real property to the Transferee by the Successor Agency to the Redevelopment Agency of the City of San Bernardino (the “Transferor”), the undersigned hereby certifies the following: 1. The Transferor is not a foreign person or citizen, foreign corporation, foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Code and the Income Tax Regulations promulgated thereunder); 2. The Transferor’s social security number or U.S. employer identification number is as follows: _________________. 3. The Transferor’s home or office address is: City of San Bernardino Successor Agency 290 N. “D” Street – 3rd Floor San Bernardino, CA 92401 The Transferor understands that this certification may be disclosed to the Internal Revenue Service by the Transferee and that any false statement contained herein could be punished by fine, imprisonment or both. Under penalty of perjury, I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct and complete, and I further declare that I have authority to sign this document. Successor Agency to the Redevelopment Agency of the City of San Bernardino 12.f Packet Pg. 503 Attachment: CED.Purchase Sale Agreement for 757 and 761 N Mt Vernon Av.Attachment 6 (6858 : Resolution Approving PSA with Matt Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: August 19, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Michael Huntley, Director of Community & Economic Development Subject: Resolution Approving Transfer of City Real Property Assets to Housing Partners I, Inc. Recommendation Adopt Resolution No. 2020-205 of the Mayor and City Council of the City of San Bernardino, California, approving the transfer of certain City-owned real property assets to Housing Partners I Inc., for the Infill Housing Program and authorize the City Manager or designee to take any further actions as necessary to effectuate the transfer of the real property assets. Background On September 16, 2016, the Mayor and City Council authorized the City Manager to enter into a HOME Investment Partnerships Program Agreement with Housing Partners I Inc., (HPI), in an amount not to exceed $625,000, to provide the conventional “wood frame” housing component of the Infill Housing Program. On February 21, 2018, the Mayor and City Council adopted Resolution 2018 -51 authorizing a revision to the original HOME Agreement from a loan to a grant in an amount not to exceed $625,000. On October 2, 2019 , the Mayor and City Council authorized the extension of the HOME Agreement with HPI for completion of the houses to June 30, 2020. The Infill Housing Program utilizes, City or Successor Agency-owned, vacant single family lots for the development of new, for-sale single family houses. Pursuant to the HOME regulations, the houses are to be sold to households earning 80% of the San Bernardino-Riverside County Area Median Income (AMI). The 2020 income for a four person household earning 80% of AMI is $60,250. Discussion Housing Partners I has completed the construction of two single family homes located at 939 North F Street and 1045 North F Street. The houses have been appraised at $310,000 each. The City can provide a $60,000 second loan to fill the gap between what the household can qualify for on a first mortgage and what is needed to purchase the house. The household is required to provide at least a three percent down 13 Packet Pg. 504 6841 Page 2 payment. The City’s second loan does not require monthly payments and is interest free. After the household has occupied the house for five years, the City’s loan balance begins to decrease until it is fully forgiven in year 15. The goal of the City’s loan is twofold: to provide gap financing that does not increase a family’s housing cost; and to stabilize neighborhoods by giving households a financial incentive to remain in their homes. The completion and sale of the two houses will fulfill HPI’s contract requirements with the City. Currently, the homes are vacant and HPI is paying for 24 -hour security, since vandalism and squatters is a continual challenge. In order for HPI to list and sell the properties, the City must transfer the title. 2020-2025 Key Strategic Targets and Goals This item aligns with Key Target No. 1: Improved Quality of Life by removing blighted vacant lost and improving them with new ownership housing; and with Key Target No. 4: Economic Growth & Development by putting properties back on the tax rolls. Fiscal Impact There is no fiscal impact to the general Fund. HOME funds provided by HUD will be used to fund these activities. Conclusion It is recommended that the Mayor and the City Council of the City of San Bernardino, California adopt Resolution No. 2020-205, approving the transfer of certain City-owned real property assets to Housing Partners I Inc., for the Infill Housing Program and authorize the City Manager or designee to take any further actions as necessary to effectuate the transfer of the real property assets. Attachments Attachment 1 Resolution 2020-205 Ward: 2 Synopsis of Previous Council Action: September 16, 2016 Mayor and City Council authorized the City Manager to execute a HOME Agreement with HPI for the Infill Housing Program. February 21, 2018 Mayor and City Council adopted Resolution 2018-51 authorizing a revision to the HOME Agreement from a loan to a grant not to exceed $625,000. October 2, 2019 Mayor and City Council authorized the extension of the HOME Agreement with HPI for completion of the houses to June 30, 2020. 13 Packet Pg. 505 RESOLUTION NO. 2020-205 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE TRANSFER OF CERTAIN CITY- OWNED REAL PROPERTY ASSETS TO HOUSING PARTNERS I INC., FOR THE INFILL HOUSING PROGRAM AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO TAKE ANY FURTHER ACTIONS AS NECESSARY TO EFFECTUATE THE TRANSFER OF THE REAL PROPERTY ASSETS WHEREAS, on September 19, 2016, the Mayor and City Council approved a HOME Agreement in an amount not to exceed six hundred and twenty five thousand dollars ($625,000) with Housing Partners I Inc., a California nonprofit corporation and certified Community Development Housing Organization, to administer the conventional housing construction component of the Infill Housing Program; and WHEREAS, Housing Partners I Inc., has fulfilled the requirements of the HOME Agreement and completed the construction of two single family homes; and WHEREAS, Housing Partners I Inc., now wishes to sell the two houses to income eligible, first time homebuyers, consistent with the requirements of the HOME Investment Partnerships Program and the HOME Agreement; and WHEREAS, the City of San Bernardino owns the two parcels on which the single family homes were constructed; and WHEREAS, the parcels are identified as 939 North F Street (APN: 0140-143-38) and 1045 North F Street (APN: 0140-041-29); and WHEREAS, the City proposes to transfer the two parcels to Housing Partners I, Inc., for the purpose of selling the newly constructed homes to income eligible, first time homebuyers, consistent with the requirements of the HOME Investment Partnerships Program and the HOME Agreement. 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 disposition of the City’s properties to Housing Partners I, Inc is consistent with the Council adopted Infill Housing Program and the City of San Bernardino’s Consolidated Plan. 13.a Packet Pg. 506 Attachment: Infill Housing Reso HPI (6841 : Resolution Approving Transfer of City Real Property Assets to Housing Partners I, Inc.) Resolution No. 2020-205 SECTION 3. 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 4. 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 City Council and signed by the Mayor and attested by the Acting City Clerk this ___ day of __________ 2020. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney 13.a Packet Pg. 507 Attachment: Infill Housing Reso HPI (6841 : Resolution Approving Transfer of City Real Property Assets to Housing Partners I, Inc.) Resolution No. 2020-205 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk 13.a Packet Pg. 508 Attachment: Infill Housing Reso HPI (6841 : Resolution Approving Transfer of City Real Property Assets to Housing Partners I, Inc.) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: August 19, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Michael Huntley, Director of Community & Economic Development Subject: Resolution Approving a Subordination of a Deed of Trust for 3248 Greystone Road, San Bernardino Recommendation Adopt Resolution No. 2020-206 of the Mayor and City Council of the City of San Bernardino, California, acting as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino, approving a Subordination of a Deed of Trust in connection with a refinancing of the senior mortgage relating to real property located at 3248 Greystone Road, San Bernardino, California. Background On October 17, 1994, the Community Development Commission of the City of San Bernardino (“Commission”) approved Resolution 5409, establishing the Mortgage Assistance Program, subsequently renamed the Homebuyer Assistance Program, which made available a limited number of deferred payment (principal and interest) second mortgages. This Program was designed to provide income -qualified families with down payment/closing cost monies necessary to secure financing towards the purchase of single-family detached homes in the City and provided an additional avenue for the former Redevelopment Agency of the City of San Bernardino (“Agency”) to ensure the availability of affordable housing to income -qualified home buyers in the community. On January 9, 2012, the Mayor and Common Council adopted Resolution 2012-12 confirming that the City of San Bernardino would serve as the “Successor Agency” to the former Agency, in accordance with AB1X 26. On January 23, 2012, the Mayor and City Council adopted Resolution 2012-19 further confirming that the City would serve as the “Successor Housing Agency” to the former Redevelopment Agency and perform the housing functions previously performed by the Agency. Discussion The Homebuyer Assistance Program allows program participants to refinance their mortgage only to lower the interest rate and/or term. Should the homeowner request to “cash out” the property’s equity the subordination request would be denied and the Agency loan would become due. 14 Packet Pg. 509 6846 Page 2 The owner for the property located at 3248 Greystone Road received down payment assistance and is now requesting to refinance their existing first mortgage. The owner of the property listed above has submitted a subordination request to Successor Housing Agency staff and the application has been reviewed and approved. To proceed with the refinancing, the new lender and title company require the Agency’s deed of trust to be expressly subordinated to the new first deed of trust. Therefore, staff requests that the City Manager, or her designee, be authorized to sign and cause to be recorded the subordination agreement and associated documents which will allow the property owner to refinance their first mortgage. 2020-2025 Key Strategic Targets and Goals Adoption of the attached resolution aligns with Key Strategic Target No. 3: Improved Quality of Life. Refinancing supports homeownership and sustains neighborhoods throughout the City. Fiscal Impact There is no fiscal impact to the General Fund since the staff processing the request is funded by the Recognized Obligation Payment Scheduled (ROPS). Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, acting as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino, adopt Resolution No. 2020-206, approving a Subordination of a Deed of Trust in connection with a refinancing of the senior mortgage relating to real property located at 3248 Greystone Road, San Bernardino, California. Attachments Attachment 1 Resolution No. 2020-206 Attachment 2 Subordination Agreement for 3248 Greystone Road Ward: 5 Synopsis of Previous Council Actions: January 23, 2012 Mayor and City Council adopted Resolution 2012 -019 further confirming that the City would serve as the “Successor Housing Agency” to the former Redevelopment Agency and perform the housing functions previously performed by the Agency. 14 Packet Pg. 510 RESOLUTION NO. 2020-206 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO APPROVING THE SUBORDINATION OF A DEED OF TRUST IN CONNECTION WITH A REFINANCING OF THE SENIOR MORTGAGE RELATING TO REAL PROPERTY LOCATED AT 3248 GREYSTONE ROAD, SAN BERNARDINO, CALIFORNIA WHEREAS, on January 9, 2012, the Mayor and City Council of the City of San Bernardino, California, (“Council”) adopted Resolution No. 2012-12 confirming that the City of San Bernardino would serve as the Successor Agency to the Redevelopment Agency (“Agency”) of the City of San Bernardino (“Successor Agency”) effective February 1, 2012, pursuant to AB1X 26 (The Redevelopment Agency Dissolution Act); and WHEREAS on January 23, 2012, the City Council adopted Resolution No. 2012-19 providing for the City to serve as the Successor Housing Agency and perform the housing functions previously performed by the Agency; and WHEREAS, pursuant to Health & Safety Code Section 34181(c) of AB1X26 the Oversight Board is to direct the transfer of housing responsibilities, including all rights, powers, duties, obligations and assets, to the Successor Housing Agency; and WHEREAS, pursuant to Health & Safety Code Section 34176(e)(1) of AB1484 the restrictions on the use of real property such as affordability covenants entered into by the Agency are considered a housing asset; and WHEREAS, a Deed of Trust affecting real property located at 3248 Greystone Road, San Bernardino, California (“Property”) exists as of June 12, 2008, and recorded on July 22, 2008, as Instrument Number 2008-0332120 in the Official Records of the County of San Bernardino (“Deed of Trust”); and WHEREAS, the terms of the Deed of Trust allow the Trustor to obtain the release of the security interest of the First Mortgage Lender in the Property for the purpose of a third-party lender which refinances the purchase money mortgage of the First Mortgage Lender; and WHEREAS, an escrow has been opened on the Property affected by the Deed of Trust on which owner(s) (Randy L Smith & Piper L Smith) request the subordination so that they can proceed on a refinance and a clear lenders title policy can be provided to the new lender of the Property; and WHEREAS, the Successor Housing Agency desires to confirm that the Deed of Trust is a housing asset and/or housing function, and desires to authorize Successor Housing Agency 14.a Packet Pg. 511 Attachment: Subordination 3248 Greystone Road-Resolution (6846 : Resolution Approving a Subordination of a Deed of Trust for 3248 Resolution No. 2020-206 staff to transfer all rights and interest in the Deed of Trust to the City in its capacity as the Successor Housing Agency; and WHEREAS, Successor Housing Agency staff desires to cause to be signed and recorded a subordination agreement for the purposes of causing the new third-party lender to have a security interest in the Property senior to that of the Successor Housing Agency; and BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, ACTING AS THE SUCCESSOR HOUSING AGENCY OF THE REDEVELOPMENT AGENCY 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. Pursuant to Health & Safety Code Section 34176, the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino does hereby find and determine that the Deed of Trust is a housing asset and hereby authorizes the City Manager or his/her designee, to execute the Subordination Agreement (attached and incorporated herein as Exhibit “A”) and do all such acts and things necessary to cause it to be recorded with the San Bernardino County Recorder. SECTION 3. The City Council acting as the Successor Housing Agency 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 4. 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 City Council and signed by the Mayor and attested by the Acting City Clerk this ___ day of __________ 2020. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk 14.a Packet Pg. 512 Attachment: Subordination 3248 Greystone Road-Resolution (6846 : Resolution Approving a Subordination of a Deed of Trust for 3248 Resolution No. 2020-206 Approved as to form: Sonia Carvalho, City Attorney 14.a Packet Pg. 513 Attachment: Subordination 3248 Greystone Road-Resolution (6846 : Resolution Approving a Subordination of a Deed of Trust for 3248 Resolution No. 2020-206 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk 14.a Packet Pg. 514 Attachment: Subordination 3248 Greystone Road-Resolution (6846 : Resolution Approving a Subordination of a Deed of Trust for 3248 1 When recorded mail to: City of San Bernardino, acting in its capacity as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino 290 North D Street San Bernardino, CA 92401 Owner Name: Randy L & Piper L Smith 3248 Greystone Road San Bernardino, CA 92411 SPACE ABOVE THIS LINE FOR RECORDERS USE. Form of SUBORDINATION AGREEMENT NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT. This AGREEMENT, made this day of August, 2020, by (Randy L & Piper L Smith), Owner of the land hereinafter described and hereinafter referred to as "Owner," and the City of San Bernardino, acting in its capacity as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino, present owner and holder of the Deed of Trust and Note; WITNESSETH WHEREAS, Owner(s) did on June 12, 2008, execute a Deed of Trust to First American Title, a California Corporation, as trustee, covering: LEGAL DESCRIPTION: The land herein after referred to is situated in the City of San Bernardino, County of San Bernardino, State of California, and is described as follows: Lot 5 of Tract No. 15228 as per Map recorded in Book 316, Pages 15 and 16 of Maps, in the office of the County Recorder of said San Bernardino County. Excepting therefrom all oil, gas, other hydrocarbons and kindred substances lying below a depth of 500 feet, but without the right of surface entry, as conveyed to National Resources Equity Corporation, a California Corporation, by deed recorded October 20, 1969, in Book 7323, Page 326, official records. (APN #0261-721-05-0-000) to secure a Note in the sum of $119,003 dated June 12, 2008 in favor of the Redevelopment Agency of the City of San Bernardino first hereinafter described and hereinafter referred to as "Beneficiary", which Deed of Trust was recorded July 22, 2008, as Instrument No. 2008-0332120, Official Records of said county; WHEREAS, all rights and obligations of the Beneficiary have since been transferred to the City of San Bernardino as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino (“Successor Beneficiary”) pursuant to Mayor and Common Council Resolution No. 2012-19 dated January 23, 2012; WHEREAS, Owner has executed, or is about to execute, a Deed o f Trust and Note in the sum of not to exceed $237,000, dated ___________________, in favor of ML Mortgage Corp, hereinafter referred to as “Lender,” payable with interest and upon the terms and conditions described therein, which Deed of Trust is to be recorded concurrently herewith; and 14.b Packet Pg. 515 Attachment: Subordination 3248 Greystone Rd-Attachment 2 (6846 : Resolution Approving a Subordination of a Deed of Trust for 3248 2 WHEREAS, it is a condition precedent to obtaining said loan that said Deed of Trust last above mentioned shall unconditionally be and remain at all times a lien or charge upon the land herein before described, prior and superior to the lien or charge of the Deed of Trust first above mentioned; and WHEREAS, lender is willing to make said loan provided the Deed of Trust securing the same is a lien or charge upon the above described property prior and superior to the lien or charge of the Deed of Trust first above mentioned and provided that Successor Beneficiary will specifically a nd unconditionally subordinate the lien or charge of the Deed of Trust first above mentioned to the lien or charge of the Deed of Trust in favor of Lender; and WHEREAS, it is to the mutual benefit of the parties hereto that Lender make such loan to Owner; and Successor Beneficiary is willing that the Deed of Trust securing the same shall, when recorded, constitute a lien or charge upon said land which is unconditionally prior and superior to the lien or charge of the Deed of Trust first above mentioned. NOW, THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, and in order to induce Lender to make the loan above referred to, it is hereby declared, understood and agreed as follows: 1. That said Deed of Trust securing said Note in favor of Lender, and any renewals or extensions thereof, shall unconditionally be and remain at all times a lien or charge on the property therei n described, prior and superior to the lien or charge or the Deed of Trust first above mentioned. 2. That Lender would not make its loan above described without this Subordination Agreement. 3. That this Agreement shall be the whole and only agreement with regard to the subordination of the lien or charge of the Deed of Trust first above mentioned to the lien or charge of the Deed of Trust in favor of the lender above referred to and shall supersede and cancel, but only insofar as would affect the priority between the Deeds of Trust hereinbefore specifically described, any prior agreement as to such subordination including, but not limited to, those provisions, if any, contained in the Deed of Trust first above mentioned, which provide for the subordination of t he lien or charge thereof to another Deed or Deeds of Trust or to another mortgage or mortgages. Successor Beneficiary declares, agrees and acknowledges that: (a) Lender in making disbursements pursuant to any such agreement is under no obligation or dut y to, nor has Lender represented that it will, see to the application of such proceeds by the person or persons to whom Lender disburses such proceeds and any application or use of such proceeds for purposes other than those provided for in such agreement or agreements shall not defeat the subordination herein made in whole or in part; (b) Successor Beneficiary intentionally and unconditionally waives, relinquishes and subordinates the lien or charge of the Deed of Trust first above mentioned in favor of the lien or charge upon said land of the Deed of Trust in favor of Lender above referred to and understands t hat in reliance upon, and in consideration of, this waiver, relinquishment and subordination specific loans and advances are being and will be make and, as part and parcel thereof, specific monetary and other obligations are being and will be entered into which would not be made or entered into but for said reliance upon this waiver, relinquishment and subordination; and (c) An endorsement has been placed upon the Note secured by the Deed of Trust first above mentioned that said Deed of Trust has by this i nstrument been subordinated to the lien or charge of the Deed of Trust in favor or Lender above referred to. 14.b Packet Pg. 516 Attachment: Subordination 3248 Greystone Rd-Attachment 2 (6846 : Resolution Approving a Subordination of a Deed of Trust for 3248 3 NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE PERSON OBLIGATED ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN A PORTION OF WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENT OF THE LAND. City of San Bernardino, acting as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino _____________________________________ ____________________________________ Teri Ledoux, City Manager Owner City of San Bernardino Owner (ALL SIGNATURES MUST BE ACKNOWLEDGED) IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO. 14.b Packet Pg. 517 Attachment: Subordination 3248 Greystone Rd-Attachment 2 (6846 : Resolution Approving a Subordination of a Deed of Trust for 3248 Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: August 19, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Michael Huntley, Director of Community & Economic Development Subject: Final Reading of Ordinance MC-1541 Establishing the Maximum Number of Cannabis Business Permits Recommendation Accept for final reading and adopt Ordinance MC-1541 of the Mayor and City Council of the City of San Bernardino, California, establishing the maximum number of cannabis business permits authorized, pursuant to Section 5.10.080 of the San Bernardino Municipal Code. Background On August 5, 2020, the Mayor and City Council received a staff report on increasing and establishing the maximum number of cannabis business permits within the City of San Bernardino, pursuant to Section 5.10.080 of the San Bernardino Municipal Code. Discussion Pursuant to Section 5.10.080 of the City of San Bernardino Municipal Code, which state that the number of cannabis businesses 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. However, Section 5.10.080 also indicates that the Mayor and City Council may allow for a greater number of total permits by Ordinance. Therefore, through Ordinance MC-1541, the Mayor and City Council will authorize the establishment of a maximum number of up to eleven (11) retail and/or microbusiness with retail permits, and allow for an unlimited number of permits in other cannabis business categories that include cultivation, distribution, manufacturing, testing, and microbusiness with a non-retail component. 2020-2025 Key Strategic Targets and Goals The proposed changes as exhibited through the Ordinance and Resolution are consistent with Key Target No 1: Financial Stability. Specifically, improving the commercial cannabis business procedures and the code provisions that regulate commercial cannabis, should improve the process thereby allowing the City to capture 15 Packet Pg. 518 6864 Page 2 cannabis revenue. Financial Impact Commercial cannabis business permit applicants are required to pay an application fee to recover the City’s costs in processing the permits. Staff reported in 2019 that once commercial cannabis business permits are issued and businesses are operating, it is anticipated that the City will receive revenues related to the business activities. Conclusion It is recommended that the Mayor and City Council of the City of San Bern ardino, California, accept for final reading and adopt Ordinance MC-1541, establishing the maximum number of cannabis business permits authorized, pursuant to Section 5.10.080 of the San Bernardino Municipal Code. Attachments Attachment 1 Ordinance MC-1541 Ward: All Synopsis of Previous Council Actions: August 5, 2020 The Mayor and the City Council considered and approved an ordinance increasing the number of permits related to commercial cannabis businesses within the City. 15 Packet Pg. 519 ORDINANCE NO. MC-1541 ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ESTABLISHING THE MAXIMUM NUMBER OF CANNABIS BUSINESS PERMITS AUTHORIZED PURSUANT TO SECTION 5.10.80 OF THE SAN BERNARDINO MUNICIPAL CODE WHEREAS, on March 7, 2018, the Mayor and City Council adopted Ordinance No. MC-1464 approving Chapter 5.10 of the City of San Bernardino Municipal Code to regulate Commercial Cannabis Activities; WHEREAS, on April 4, 2018, the Mayor and City Council established review criteria, procedures and maximum number of commercial cannabis business types for the implementation of Chapter 5.10 (Commercial Cannabis Activities) of the City of San Bernardino Municipal Code; WHEREAS, on September 5, 2018, the Mayor and City Council adopted Ordinance No. MC-1503, amending Chapter 5.10 of the City of San Bernardino Municipal Code related to the regulation of Commercial Cannabis Activities; which was subsequently approved by the registered voters on November 6, 2018; WHEREAS, Section 5.10.080 of the San Bernardino Municipal Code states that the number of cannabis businesses 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 and on June 17, 2020, the Mayor and City Council directed City Staff to prepare an ordinance to increase the number of cannabis business permits to allow for up to 17 retail permits, which total number is to include microbusiness permits, and allow for an unlimited number of permits in the other business categories approved by the City Council in accordance with Chapter 5.10 of the City of San Bernardino Municipal Code; WHEREAS, On August 5, 2020, on the first (1st) reading of Ordinance No. MC- 1541, Mayor and City Council directed City Staff to amend said ordinance to allow for up to 11 retail and/or microbusiness with retail permits, and allow for an unlimited number of permits in other cannabis business categories approved by the City Council in accordance with Chapter 5.10 of the City of San Bernardino Municipal Code; and WHEREAS, city staff will need to prepare amendments to the cannabis Guidelines to regulate the approval process for the unlimited number of permits for the other business categories. 15.a Packet Pg. 520 Attachment: CED.Cannabis.Ordinance MC-1541 - Max Number Lic_2nd Reading (6864 : Final Reading of Ordinance MC-1541 Establishing the Ordinance No. MC-1541 NOW THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, DO ORDAIN AS FOLLOWS: SECTION 1. Incorporation of Recitals. The above recitals are true and correct and are incorporated herein. SECTION 2. Compliance with the California Environmental Quality Act. The Mayor and City Council having independently reviewed and analyzed the record before it, including written and oral testimony, and having exercised their independent judgment, finds that there is no substantial evidence supporting a fair argument that approval of and this Ordinance No. MC- 1541 will result in a significant effect on the environment, and thus the project is exempt pursuant to Section 15061(b) of the California Environmental Quality Act guidelines due to the fact that the activity does not result in a direct or reasonably foreseeable indirect physical change in the environment. SECTION 3. Amendment to Section 5.10.80. Section 5.10.80 of the San Bernardino Municipal Code is hereby amended to add a subsection (c) to read as follows: “(c) In accordance with the first paragraph of this Section 5.10.80, the City Council has elected to increase the maximum number of cannabis permits that can be lawfully awarded in accordance with the population formula set forth in this Section as follows: the City may award up to 11 retail business permits. This maximum number of retail business permits shall include all awarded microbusiness permits so that there are no more than a total of 11 retail and microbusiness permits, which include a retail component. The City may award an unlimited number of cannabis business permits for other types of cannabis businesses in accordance with the restrictions set forth in Chapter 5.10, applicable guidelines adopted in accordance with Chapter 5.10 and any zoning regulations adopted by the City Council.” SECTION 4. 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 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. SECTION 6. Effective Date. This Ordinance shall become effective thirty (30) days after the date of its adoption. SECTION 7. Notice of Adoption. The City Clerk of the City of San Bernardino shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under section 36933 of the Government Code of the State of California. 15.a Packet Pg. 521 Attachment: CED.Cannabis.Ordinance MC-1541 - Max Number Lic_2nd Reading (6864 : Final Reading of Ordinance MC-1541 Establishing the Ordinance No. MC-1541 APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the Acting City Clerk this 19th day of August, 2020. __________________________________ John Valdivia, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC, Acting City Clerk Approved as to form: __________________________________ Sonia Carvalho, City Attorney 15.a Packet Pg. 522 Attachment: CED.Cannabis.Ordinance MC-1541 - Max Number Lic_2nd Reading (6864 : Final Reading of Ordinance MC-1541 Establishing the Ordinance No. MC-1541 CERTIFICATION STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO CITY OF SAN BERNARDINO I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Ordinance MC-1541, adopted at a regular meeting held on the 19th day of August, 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this 19th day of August, 2020. Genoveva Rocha, CMC, Acting City Clerk 15.a Packet Pg. 523 Attachment: CED.Cannabis.Ordinance MC-1541 - Max Number Lic_2nd Reading (6864 : Final Reading of Ordinance MC-1541 Establishing the Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: August 19, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Kris Jensen, Director of Public Works Subject: Resolution Approving an Agreement W/Tetra Tech for Waterman Landfill Upgrades Recommendation Adopt Resolution No. 2020-142 of the Mayor and City Council of the City of San Bernardino, California, approving a construction contract with Tetra Tech, Inc. of San Bernardino, California, for landfill gas collection and treatment system upgrades at the Waterman Landfill and authorizing the City Manager to execute the contract. Background On August 17, 2015, the Mayor and City Council approved Resolution No. 2015 -188 authorizing the execution of six agreements for on-call professional civil engineering design and project management services for the Capital Improvement Program (CIP) and staff augmentation (“Agreement(s)”). Tetra Tech, Inc. of San Bernardino was approved as one of the consulting firms through this action. On June 20, 2016, Resolution 2016-123 was approved by the Mayor and City Council, authorizing the City Manager to execute Amendment No. 1 to the Agreements for on - call prof essional civil engineering, design and project management services for the Capital Improvement Program (CIP) and staff augmentation. Amendment No. 1 extended all Agreements through FY 2016/17 and also authorized the City Manager to extend the term of the Agreements, annually, through June 30, 2020. Tetra Tech, Inc. was the only firm that the City retained and extended an Agreement with through the full term of June 30, 2020. Over the years, and through the Agreement, Tetra Tech, Inc. has been providing various services to the City related to the Waterman Landfill. Currently, Tetra Tech, Inc. Inc. provides landf ill compliance, engineering, operations and maintenance services. As part of routine operations and maintenance, Tetra Tech, Inc. performs inspections of onsite equipment and performs vap or extraction monitoring as required on a weekly basis. Tetra Tech, Inc. also provides engineering, design and implementation of the City's Waterman Landfill Vapor Extraction System Improvements CIP project (“Project”). Discussion On September 18, 2019, the Mayor and City Council approved Resolution 2019 -282 16 Packet Pg. 524 6745 Page 2 (Attachment 2) approving Tetra Tech, Inc. to move forward with installing gas monitoring upgrades at the closed Waterman Landfill as required by the State -approved Remediation Plan. This work represents Phase 3 of the Plan, and includes installation of 17 additional gas extractions wells and upgrades to blower equipment to support additional extraction capacity. Tetra Tech, Inc. was selected as a sole source vendor for this work as they possess the technical, environmental, licensing and engineering expertise required to perform the work. Tetra Tech, Inc. also has extensive history with the Waterman Landfill, as they have provided ongoing, weekly gas extraction monitoring and landfill maintenance required for the City to ensure compliance with local and State environmental agencies. Phase 3 was originally expected to be completed by June 30, 2020; however , due to the declared State of Emergency in California, and as a direct result of Covid -19, SCAQMD was delayed in processing the City's permit modification application that was submitted in February 2020. Construction of any components requested in the permit modification application could not be initiated until receipt of the final SCAQMD approved permit. On June 22, 2020, the City received a notification that the SCAQMD permit had been approved and Phase 3 work may now be performed. Implementation of Phase 3 is currently in progress and expected to be completed in September 2020. Because it was anticipated that the Phase 3 work would be performed under the original Agreement, and within the remaining term of the Agreement, a separate construction contract was not issued to Tetra Tech, Inc. in September 2019. Due to the permitting delays experienced with SCAQMD, the project construction was unable to begin until July 2020. The proposed construction contract is now being recommended as a “clean up” item to memorialize the project scope and compensation, and establish a project work period that recognizes construction work beyond the June date originally anticipated. No additional funding or changes in compensation are included in the proposed construction contract. Staff is currently working with the City Attorney’s office to develop a legal opinion regarding future development options for the Waterman Landfill site. 2020-2025 Key Strategic Targets and Goals Approval of this construction contract aligns with Key Target 1d: Financial Stability: Minimize risk and litigation exposure by ensuring Phase 3 of the approved remediation plan is implemented at the Waterman Landfill to maintain compliance with local and State environmental agencies. Fiscal Impact No General Fund Impact. Funding for the Project was previously approved and established in the amount of $744,834 for the Waterman Landfill vapor extraction system improvements CIP FY 2019/20 and have been carried forward into FY 2020/21 in Integrated Waste Management Fund No. 527-160-8271*5504. No additional budget adjustments are required for this project. 16 Packet Pg. 525 6745 Page 3 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2020 -142, approving a construction contract with Tetra Tech, Inc. of San Bernardino, California, for landfill gas colle ction and treatment system upgrades at the Waterman Landfill and authorizing the City Manager to execute the contract. Attachments Attachment 1 Resolution 2020-142; Exhibit “A” - Construction Contract with Tetra Tech Attachment 2 Resolution 2019-282 Ward: 3 Synopsis of Previous Council Actions: August 17, 2015 Mayor and City Council adopted Resolution No. 2015-188 approving Agreements for On-Call Professional Civil Engineering Design and Project Management Services for the Capital Improvement Program (CIP) and Staff Augmentation. June 20, 2016 Resolution of the Mayor and City Council of the City of San Bernardino Authorizing the City Manager to Execute Amendment No. 1 to Agreements for On -Call Professional Civil Engineering Design and Project Management Services for the Capital Improvement Program (CIP) and Staff Augmentation. September 18, 2019 Resolution No. 2019-282 of the Mayor and City Council of the City of San Bernardino, California, approving Tetra Tech, Inc. to install upgrades to the existing landfill gas collection and treatment system at the City's inactive Waterman Landfill. 16 Packet Pg. 526 RESOLUTION NO. 2020-142 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, APPROVING A CONSTRUCTION CONTRACT WITH TETRA TECH, INC., OF SAN BERNARDINO, CALIFORNIA, FOR LANDFILL GAS COLLECTION AND TREATMENT SYSTEM UPGRADES AT THE WATERMAN LANDFILL (“PROJECT”) AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE CONTRACT WHEREAS, On September 18, 2019, the Mayor and City Council approved Resolution 2019-282 approving Tetra Tech, Inc., of San Bernardino, California, to install gas monitoring upgrades at the closed Waterman Landfill as required by the State-approved remediation plan and in an amount not to exceed $744,834; and WHEREAS, this work was anticipated to be performed under an existing Agreement for on-call professional civil engineering design and project management services (Agreement) between Tetra Tech, Inc., and the City, prior to the expiration of the Agreement on June 30, 2020; and WHEREAS, due to the declared State of Emergency in California, and as a direct result of Covid-19, South Coast Air Quality Management District (SCAQMD) was delayed in processing the City's permit modification application; and WHEREAS, because of the permitting delays experienced, the Project was unable to be completed prior to the final expiration of the Agreement; and WHEREAS, the City and Tetra Tech, Inc., now desire to enter into a construction contract as the form of agreement under which to complete said Project work. 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 City Manager is authorized and directed to execute a construction contract for landfill gas collection and treatment system upgrades following the City’s standard terms approved by the City Attorney with Tetra Tech, Inc., of San Bernardino, California, attached and incorporated herein as Exhibit “A” and in a total project amount of $744,834 as previously approved. SECTION 3. 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 16.a Packet Pg. 527 Attachment: PW.Tetra Tech Construction Contract - Att 1 - Resolution [Revision 1] (6745 : Resolution Approving an Agreement W/Tetra Tech Resolution No. 2020-142 the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 4. 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 City Council and signed by the Mayor and attested by the Acting City Clerk this ___ day of __________ 2020. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney 16.a Packet Pg. 528 Attachment: PW.Tetra Tech Construction Contract - Att 1 - Resolution [Revision 1] (6745 : Resolution Approving an Agreement W/Tetra Tech Resolution No. 2020-142 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk 16.a Packet Pg. 529 Attachment: PW.Tetra Tech Construction Contract - Att 1 - Resolution [Revision 1] (6745 : Resolution Approving an Agreement W/Tetra Tech 16.b Packet Pg. 530 Attachment: PW.Tetra Tech Construction Contract - Att 1.A - Exhibit A - Contract (6745 : Resolution Approving an Agreement W/Tetra Tech for 16.b Packet Pg. 531 Attachment: PW.Tetra Tech Construction Contract - Att 1.A - Exhibit A - Contract (6745 : Resolution Approving an Agreement W/Tetra Tech for 16.b Packet Pg. 532 Attachment: PW.Tetra Tech Construction Contract - Att 1.A - Exhibit A - Contract (6745 : Resolution Approving an Agreement W/Tetra Tech for 16.b Packet Pg. 533 Attachment: PW.Tetra Tech Construction Contract - Att 1.A - Exhibit A - Contract (6745 : Resolution Approving an Agreement W/Tetra Tech for 16.b Packet Pg. 534 Attachment: PW.Tetra Tech Construction Contract - Att 1.A - Exhibit A - Contract (6745 : Resolution Approving an Agreement W/Tetra Tech for 16.b Packet Pg. 535 Attachment: PW.Tetra Tech Construction Contract - 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TO INSTALL UPGRADES TO THE EXISTING LANDFILL GAS COLLECTION AND TREATMENT SYSTEM AT THE CITY'S INACTIVE WATERMAN LANDFILL WHEREAS, The City of San Bernardino operated a sanitary landfill for municipal solid waste between 1950 and 1960 on 19 acres of leased private property along the south bank of the Santa Ana River, east of Waterman Avenue and north of Vanderbilt Way and Carnegie Drive. and WHEREAS, As the operator of the former Waterman Landfill, the City of San Bernardino bears the responsibility for properly closing, maintaining, and monitoring the 19 - acre site, which ceased operations in 1961; and WHEREAS, The City was notified in 2004 by State regulatory agencies that the Waterman Landfill site was not in compliance with landfill closure regulations. The City was required to implement appropriate landfill measures to satisfy legal requirements; and WHEREAS, The approved construction and installation of the landfill gas extraction and treatment system was completed in 2006; and WHEREAS, As mandated by South Coast Air Quality Management District SCAQMD), routine operations, maintenance and monitoring of the landfill gas extraction and treatment system at Waterman Landfill must continue; and WHEREAS, On July 21, 2008, per Resolution 2008- 285, the Mayor and Common Council of the City of San Bernardino authorizing the execution of an Agreement and issuance of a Purchase Order with three (3) option years; and WHEREAS, Due to the City's fiscal challenges, on June 1, 2010, staff wrote BAS a letter and asked them to accept a 20 percent reduction in charges to their OM & M. The 20 percent reduction equated to 35,000 in savings per year; and WHEREAS, On June 16, 2010, BAS responded to our letter and accepted the 20 percent reduction but requested that the City extend the current contract by four additional years; and WHEREAS, Staff recommended extending the contract by four additional years since it yielded a savings of $ 210, 000 over the next six years. The amendment extended the contract effective for option years two and three and additionally, effective July 1, 2012, the contract extended to June 30, 2016; and WHEREAS, On June 22, 2016 Resolution of the Mayor and Common Council of the City of Ban Bernardino authorizing the City Manager to execute amendment no. 1 to agreements 16.c Packet Pg. 594 Attachment: PW.Tetra Tech Construction Contract - Att 2 - Resolution 2019-282 (6745 : Resolution Approving an Agreement W/Tetra Tech for Resolution No. 2019-282 for on-call professional civil engineering design and project management services for the capital improvement program (CIP) and staff augmentation; and WHEREAS, The City Manager may extend the term of the Agreement for one- year intervals by written notice to the Consultants. The City Manager shall be required to give the Consultants such written notice of the City's intent to extend before the Agreements expire. The total duration of the Agreement, including the exercise of any options, shall not exceed June 30, 2020; and WHEREAS, On June 19, 2019, the City Manager submitted a written notice to the consultant to extend the current agreement forone additional year to June 30, 2020; and WHEREAS, On December 7, 2017, San Bernardino County Local Enforcement Agency LEA) issued a Notice of Violation (NOV) to the City for violation of Title 27, California Code of Regulations, Section 20921(a)(2)- Gas Monitoring and Control; and WHEREAS, The City and its consultant, Tetra Tech, Inc, submitted a remediation plan to the County LEA to resolve the notice of violation. The remediation plan included 6 phases with 4 phases to directly resolve the NOV and 2 recommended phases to improve the landfill gas collection system throughout; and WHEREAS, The first two (2) phases of the remediation plan have been completed under FY 2018-19 non -routine budget. The third (3) phase of the remediation plan calls for significant upgrades to the current Landfill Gas Collection and Treatment System to help prevent migrating landfill gas leaving off-site of the landfill. 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 allocate SEVEN HUNDRED FORTY FOUR THOUSAND EIGHT HUNDRED THIRTY FOUR DOLLARS ($744,834) from the fiscal Year 19-20 CIP budget to upgrade the current Landfill Gas Collection and treatment System at the City's Inactive Waterman Landfill. SECTION 3. The Director of Finance is authorized to issue a Purchase Order to the Consultant for FY 2019/20. SECTION 4. 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. 16.c Packet Pg. 595 Attachment: PW.Tetra Tech Construction Contract - Att 2 - Resolution 2019-282 (6745 : Resolution Approving an Agreement W/Tetra Tech for Resolution No. 2019-282 SECTION 5. 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 6. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the Cit/oI it and signed by the Mayor and attested by the City Clerk this 18'" day of September 201 1 w- z John Valdivia, Mayor City of San Bernardino Attest: C() Georgeann Han , MMC, City Clerk Approved as to form: Gc L L Gary D. Saenz, City Attorney 16.c Packet Pg. 596 Attachment: PW.Tetra Tech Construction Contract - Att 2 - Resolution 2019-282 (6745 : Resolution Approving an Agreement W/Tetra Tech for Resolution No. 2019-282 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. 2019-282, adopted at a regular meeting held on the 18th day of September 2019 by the following vote: Council Members: AYES NAYS SANCHEZ x FIGUEROA X SHORETT x NICKEL RICHARD MULVIHILL ABSTAIN ABSENT WITNESS my hand and official seal of the City of San Bernardino this 18th day of September 2019. Jn6eorgeann Ha 6a, W4C, City Clerk U_ 16.c Packet Pg. 597 Attachment: PW.Tetra Tech Construction Contract - Att 2 - Resolution 2019-282 (6745 : Resolution Approving an Agreement W/Tetra Tech for Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: August 19, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Kris Jensen, Director of Public Works Subject: Resolution Awarding a Contract to TSR Construction for Animal Shelter Electrical Service Replacement Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2020-207: 1. Approving a total project budget for the Animal Shelter Electrical Service Replacement Project (CIP GB20-001) in the amount of $213,000 for the construction contract in the amount of $187,389, project contingencies in the amount of $19,000, and engineering and inspection budgets in t he amount of $6,611; and 2. Approving the award of a Construction Contract with TSR Construction and Inspection of Rancho Cucamonga, California in the amount of $187,389; and 3. Authorizing the Acting Director of Finance to amend the adopted FY 2020/21 CIP to reflect a total project budget of $213,000 and record any necessary budget adjustments in Animal Shelter Improvement Fund No. 124; and 4. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project. Background The Public Works Department Building Maintenance Division is responsible for maintaining the City’s Animal Shelter located at 333 Chandler Place, San Bernardino. Based on the evaluation of the current condition of the Animal Shelter, ele ctrical panels need to be upgraded to bring the facility into compliance with the latest building code. Staff has prepared plans and specifications for the electrical service replacement project. On June 24, 2020, the Mayor and City Council approved Re solution No. 2020-129 adopting the City’s Annual Operating Budget for Fiscal Year 2020/21. The budget included CIP GB20-001 for Animal Shelter Electrical Service Replacement. The project is funded by Animal Shelter Improvement (Fund 124) fund and at presen t available 17 Packet Pg. 598 6834 Page 2 funding is $75,000 for the project. On December 4, 2019, the Mayor and City Council approved Resolution No. 2019 -356 authorizing the City Manager to engage Black O’Dowd and Associates to complete the electrical panel design, plans, and specifications at a cost of $19,400. This work has been completed. Staff recently solicited construction bids for the project and is recommending that the Mayor and City Council approve the award of a construction contract to TSR Construction and Inspection. Additionally, staff is requesting that the Mayor and City Council authorize a total project budget of $213,000, which includes construction, contingency, and staff time for Engineering and inspection. Discussion Project No 13402 to provide Animal Shelter electrical upgrades, was advertised for public bidding on June 13, 2020 and June 20, 2020 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 websites, and the San Bernardino Area Chamber of Commerce. Sealed bids were received and opened on July 2, 2020. The City received five (5) bids as follows: BIDDER CITY BASE BID TSR Construction and Inspection Rancho Cucamonga $187,389.00 Golden Gate Steel Inc. DBA Golden Gate Construction Norwalk $228,200.00 Quality Light And Electrical Bloomington $268,147.50 BWW & Company Inc. Redlands $345,931.00 AToM Engineering Construction Inc. Hemet $427,398.00 Staff has reviewed the bid packages and confirmed that TSR Construction and Inspection of Rancho Cucamonga, California, is the lowest responsible and responsive bidder, with a total bid amount of $187,389. In addition to construction costs, staff anticipates the need for a construction contingency to provide for any unforeseen work that is related to the project, and estimated staff costs required to support engineering inspections of the project. The estimated full project cost is $213,000, which includes the lowest responsive construction bid, project contingencies, and engineering inspections. The breakdown of the total project costs are as follows: Cost Items Amount Bid $ 187,389 17 Packet Pg. 599 6834 Page 3 Construction Contingency $ 19,000 Engineering and Inspections $ 6,611 Estimated Total Project Cost $ 213,000 If awarded by the Mayor and City Council, construction work on the Animal shelter electrical service replacement is anticipated to begin in September 2020 and to be completed by December 2020. 2020-2025 Key Strategic Targets and Goals This project is consistent with Key Target No. 1e: Create an asset management plan. This project will address deferred maintenance needs previously identified for the Animal Shelter facility. Fiscal Impact There is no General Fund Impact. Funding in the amount of $75,000 was previously approved and in Animal Shelter Improvement Fund No. 124 -160-8776-5504. An additional project budget in the amount of $138,000 is available from Animal Shelter Improvement Fund No. 124 fund balance to support the full project cost. The additional budget requested will be distributed as follows: Additional Project Budget Distribution Construction 124-160-8776-5504 $112,389 Contingency 124-160-8776-5504 $19,000 PM & Inspection 124-160-8776-5011 $6,211 TOTAL $138,000 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2020-207: 1. Approving a total project budget for the Animal Shelter Electrical Service Replacement Project (CIP GB20-001) in the amount of $213,000 for the construction contract in the amount of $187,389, project contingencies in the amount of $19,000 and engineering and inspection budgets in the amount of $6,611; and 2. Approving the award of a Construction Contract with TSR Construction and Inspection of Rancho Cucamonga, California in the amount of $187,389; and 3. Authorizing the Acting Director of Finance to amend the adopted FY 2020/21 CIP to reflect a total project budget of $213,000 and record any necessary budget adjustments in Animal Shelter Improvement Fund No. 124; and 4. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project. 17 Packet Pg. 600 6834 Page 4 Attachments Attachment 1 Resolution 2020-207; Exhibit “A” - Construction Contract Attachment 2 Bid Tabulation for Animal Shelter Electrical Service Replacement Attachment 3 Lowest Bid Form for Animal Shelter Electrical Service Replacement Attachment 4 Location Map Ward: 3 Synopsis of Previous Council Actions: June 24, 2020 Mayor and City Council adopted Resolution No. 2020-128 approving Capital Improvement Program FY 2020/2021. December 4, 2019 Mayor and City Council approved Resolution No. 2019 -356 authorizing the City Manager to engage Black O’Dowd and Associates to complete the electrical panel design, plans, and specifications at a cost of $19,400. 17 Packet Pg. 601 RESOLUTION NO. 2020-207 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING A TOTAL PROJECT BUDGET FOR THE ANIMAL SHELTER ELECTRICAL SERVICE REPLACEMENT PROJECT (CIP GB20-001) IN THE AMOUNT OF $213,000 FOR THE CONSTRUCTION CONTRACT IN THE AMOUNT OF $187,389, PROJECT CONTINGENCIES IN THE AMOUNT OF $19,000 AND ENGINEERING AND INSPECTION BUDGETS IN THE AMOUNT OF $6,611; AND APPROVING THE AWARD OF A CONSTRUCTION CONTRACT WITH TSR CONSTRUCTION AND INSPECTION OF RANCHO CUCAMONGA, CALIFORNIA IN THE AMOUNT OF $187,389; AND AUTHORIZING THE ACTING DIRECTOR OF FINANCE TO AMEND THE ADOPTED FY 2020/21 CIP TO REFLECT A TOTAL PROJECT BUDGET OF $213,000 AND RECORD ANY NECESSARY BUDGET ADJUSTMENTS IN ANIMAL SHELTER IMPROVEMENT FUND NO. 124; AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXPEND THE CONTINGENCY FUND, IF NECESSARY, TO COMPLETE THE PROJECT WHEREAS, the City of San Bernardino is responsible for the maintenance and repair of the San Bernardino Animal Shelter located at 333 Chandler Place; and WHEREAS, based on the evaluation of the current condition of the San Bernardino Animal Shelter, electrical panel upgrades are needed to bring the facility into compliance with the latest building code; and WHEREAS, the Animal Shelter Electrical Service Replacement (“Project”) was previously approved as part of the FY 2020/21 Capital Improvement Plan (CIP) GB20-001 with an established budget of $75,000 in Animal Shelter Improvement Fund No. 124; and WHEREAS, electrical panel design, plans, and specifications have been completed and staff has administered a competitive bid process to secure a construction contract to perform necessary electrical service replacement at the Animal Shelter; and WHEREAS, the City received five bids on July 2, 2020, and TSR Construction and Inspection of Rancho Cucamonga, California, has been determined to be the lowest responsive, responsible bidder with a total bid price of $187,389; and WHEREAS, the City now wishes to enter into a Construction Agreement with TSR Construction and Inspection to complete the Project; and 17.a Packet Pg. 602 Attachment: PW.TSR Construction Contract Award Animal Shelter Electrrical Service Replacement.01.Resolution.Attachment 1 [Revision 4] Resolution No. 2020-207 WHEREAS, additional funding in the amount of $138,000 is required from Animal Shelter Improvement Fund No.124 to support the full estimated Project costs of $213,000. 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 City Manager is authorized to execute a Construction Agreement following the City’s standard terms approved by the City Attorney with TSR Construction and Inspection in the amount of $187,389 with a contingency in the amount of $19,000 for the Animal Shelter Electrical Service Replacement Project, incorporated herein and attached hereto as Exhibit A. SECTION 3. The Acting Director of Finance is hereby authorized to amend Program Year 2020/2021 Capital Improvement Plan budgets to allocate and additional $138,000 from Animal Shelter Improvement Fund (No. 124) to establish total Project budgets in the amount of $213,000 including construction, contingency and engineering inspection costs. SECTION 4. The City Manager, or designee, is hereby authorized to execute all documents in support of the Project. SECTION 5. 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 Acting City Clerk this ___ day of __________, 2020. John Valdivia, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC, Acting City Clerk 17.a Packet Pg. 603 Attachment: PW.TSR Construction Contract Award Animal Shelter Electrrical Service Replacement.01.Resolution.Attachment 1 [Revision 4] Resolution No. 2020-207 Approved as to form: __________________________________ Sonia Carvalho, City Attorney 17.a Packet Pg. 604 Attachment: PW.TSR Construction Contract Award Animal Shelter Electrrical Service Replacement.01.Resolution.Attachment 1 [Revision 4] Resolution No. 2020-207 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. _____, adopted at a regular meeting held at the ___ day of _______, 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. ______________________________ Genoveva Rocha, CMC, Acting City Clerk 17.a Packet Pg. 605 Attachment: PW.TSR Construction Contract Award Animal Shelter Electrrical Service Replacement.01.Resolution.Attachment 1 [Revision 4] A-1 A G R E E M E N T CITY OF SAN BERNARDINO THIS AGREEMENT is made and concluded this _____ day of _______________, 20___, between the City of San Bernardino (owner and hereinafter "CITY"), and TSR Construction and Inspection (hereinafter "CONTRACTOR"). 1. For and in consideration of the payments and agreements hereinafter mentioned, to be made and performed by the CITY, and under the conditions expressed in the bond as deposited with the CITY, receipt of which is hereby acknowledged, the CONTRACTOR agrees with the CITY, at the CONTRACTOR's own proper cost and expense in the Special Provisions to be furnished by the CITY, to furnish all materials, tools and equipment and perform all the work necessary to complete in good workmanlike and substantial manner the ANIMAL SHELTER ELECTRICAL SERVICE REPLACEMENT Project No. 13402 in strict conformity with Plans and Special Provisions No. 13402 , and also in accordance with Standard Specifications for Public Works/Construction, latest edition in effect on the first day of the advertised “Notice Inviting Sealed Bids” for this project, on file in the Office of the City Engineer, Public Works Department, City of San Bernardino, which said Plans and Special Provisions and Standard Specifications are hereby especially referred to and by such reference made a part hereof. 2. The CONTRACTOR agrees to receive and accept the prices as set forth in the Bid Schedule as full compensation for furnishing all materials and doing all the work contemplated and embraced in this agreement; also for all loss or damage arising out of the nature of the work aforesaid or from any unforeseen difficulties or obstructions which may arise or be encountered in the prosecution of the work and for all risks of every description connected with the work; also for all expenses incurred by or in consequence of the suspension or discontinuance of work, and for well and faithfully completing the work and the whole thereof, in the manner and according to the Plans and Special Provisions, and requirements of the Engineer under them. 3. The CONTRACTOR herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on the basis of race, color, national origin, religion, sex, marital status, or ancestry in the performance of this contract, nor shall the CONTRACTOR or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection of subcontractors, vendees, or employees in the performance of this contract. Failure by the CONTRACTOR to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy, as recipient deems appropriate. 17.b Packet Pg. 606 Attachment: PW.TSR Construction Contarct Award Animal Shelter Electrical Service Replacement.02.Agreement.Attachment 2 (6834 : A-2 AGREEMENT: ANIMAL SHELTER ELECTRICAL SERVICE REPLACEMENT Project No. 13402 4. CITY hereby promises and agrees with the said CONTRACTOR to employ, and does hereby employ the said CONTRACTOR to provide the materials and to do the work according to the terms and conditions herein contained and referred to, for the prices aforesaid, and hereby contracts to pay the same at the time, in the manner, and upon the conditions above set forth; and the same parties for themselves, their heirs, executors, administrators, and assigns, do hereby agree to the full performance of the covenants herein contained. 5. It is further expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument and the bid of said CONTRACTOR, then this instrument shall control and nothing herein shall be considered as an acceptance of said terms of said bid conflicting herewith. IN WITNESS WHEREOF, the parties of these presents have executed this contract in four (4) counterparts, each of which shall be deemed an original in the year and day first above mentioned. CONTRACTOR CITY OF SAN BERNARDINO NAME OF FIRM: TSR Construction and Inspection BY: ___________________________________ TERI LEDOUX City Manager BY: _______________________________ Gabriel Zapirtan TITLE: President ATTEST: MAILING ADDRESS: 8264 Avenida Leon _______________________________ Genoveva Rocha, CMC _____Rancho Cucamonga, Ca 91730_______ Acting City Clerk PHONE NO.: (909) 331-2249______________ APPROVED AS TO FORM: ATTEST: _______________________________ SONIA CARVALHO, City Attorney ____________________________________ Secretary NOTE: Secretary of the Owner should attest. If Contractor is a corporation, Secretary should attest. 17.b Packet Pg. 607 Attachment: PW.TSR Construction Contarct Award Animal Shelter Electrical Service Replacement.02.Agreement.Attachment 2 (6834 : 17.c Packet Pg. 608 Attachment: PW.TSR Construction Contract Award Animal Shelter Electrical Replacement.03.Bid Tabulation.Attachment 3 (6834 : Resolution 17.d Packet Pg. 609 Attachment: PW.TSR Construction Contract Award animal Shelter Electrical Service Replacement.04.Low Bid.Attachment 4 (6834 : Resolution 17.d Packet Pg. 610 Attachment: PW.TSR Construction Contract Award animal Shelter Electrical Service Replacement.04.Low Bid.Attachment 4 (6834 : Resolution 17.d Packet Pg. 611 Attachment: PW.TSR Construction Contract Award animal Shelter Electrical Service Replacement.04.Low Bid.Attachment 4 (6834 : Resolution 17.d Packet Pg. 612 Attachment: PW.TSR Construction Contract Award animal Shelter Electrical Service Replacement.04.Low Bid.Attachment 4 (6834 : Resolution 17.d Packet Pg. 613 Attachment: PW.TSR Construction Contract Award animal Shelter Electrical Service Replacement.04.Low Bid.Attachment 4 (6834 : Resolution 17.d Packet Pg. 614 Attachment: PW.TSR Construction Contract Award animal Shelter Electrical Service Replacement.04.Low Bid.Attachment 4 (6834 : Resolution 17.d Packet Pg. 615 Attachment: PW.TSR Construction Contract Award animal Shelter Electrical Service Replacement.04.Low Bid.Attachment 4 (6834 : Resolution 17.d Packet Pg. 616 Attachment: PW.TSR Construction Contract Award animal Shelter Electrical Service Replacement.04.Low Bid.Attachment 4 (6834 : Resolution 17.d Packet Pg. 617 Attachment: PW.TSR Construction Contract Award animal Shelter Electrical Service Replacement.04.Low Bid.Attachment 4 (6834 : Resolution 17.d Packet Pg. 618 Attachment: PW.TSR Construction Contract Award animal Shelter Electrical Service Replacement.04.Low Bid.Attachment 4 (6834 : Resolution 17.d Packet Pg. 619 Attachment: PW.TSR Construction Contract Award animal Shelter Electrical Service Replacement.04.Low Bid.Attachment 4 (6834 : Resolution 17.d Packet Pg. 620 Attachment: PW.TSR Construction Contract Award animal Shelter Electrical Service Replacement.04.Low Bid.Attachment 4 (6834 : Resolution 17.d Packet Pg. 621 Attachment: PW.TSR Construction Contract Award animal Shelter Electrical Service Replacement.04.Low Bid.Attachment 4 (6834 : Resolution 17.d Packet Pg. 622 Attachment: PW.TSR Construction Contract Award animal Shelter Electrical Service Replacement.04.Low Bid.Attachment 4 (6834 : Resolution APPENDIX A PROJECT LOCATION MAP 333 CHANDLER PLACE 17.e Packet Pg. 623 Attachment: PW.TSR Construction Contract Award Animal Shelter Electrical service Replacement.05.Location Map.Attachment 5 (6834 : Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: August 19, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Kris Jensen, Director of Public Works Subject: Resolution Approving the Patton Basin Outlet Repair Change Order Recommendation Adopt Resolution No. 2020-208 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute a Contract Change Order (CCO) #1 to Project No. 8015 with Jeremy Harris Construction Inc., in the amount of $78,595.50, for a full construction contract not -to-exceed amount of $574,966.50 and authorizing the Acting Director of Finance to increase the purchase order to reflect the full construction cost. Background In September 1978, San Bernardino County Flood Control District issued Permit No. P - 277077 to the City of San Bernardino to construct and maintain a 48 -inch reinforced concrete pipe at Patton Basin, located at the north end of the intersection at Highland Avenue and Victoria Avenue. The 48-inch pipe was constructed; however, over time the pipe has suffered major damage and now needs to be replaced. According to the General Provisions of Permit No. P-277077, any damage caused to the basin infrastructure is the City’s responsibility. On December 4, 2019, the Mayor and City Council adopted Resolution No. 2019-353, awarding a construction contract to Jeremy Harris Construction, Inc., for the construction of a 60” storm drain pipe, CIP Project SD16 -001, Patton Basin Outlet Repair. The project was funded through the Storm Drain DIF (248) Fund, in the total project amount of $570,000; this included a construction amount of $496,371, with $49,600 for contingencies, and $24,829 for engineering and inspe ction. Discussion The contract was awarded to address the replacement of the storm drain pipe that was destroyed during the heavy rains of February 2018. During construction, Jeremy Harris Construction, Inc. (Contractor) encountered large amounts of burie d broken concrete with rebar while doing excavation to install a new 60” storm drain pipe. In order to place pipe properly, concrete and rebar needed to be removed and the surrounding soils needed to be compacted. This work was not anticipated or included in the original construction contract with the Contractor. Additional compensation in the amount of 18 Packet Pg. 624 6838 Page 2 $78,595.50 is required due to this unforeseen condition. This amount requires approval of the Mayor and City Council as it exceeds the previously approved c ontingency amount of $49,600. The changes contained in the proposed Contract Change Order (CCO) #1 were negotiated with the Contractor and include the provision of labor, equipment, and material required to remove the concrete, as well as, the replacement of soil in order to complete the installation of the 60” storm drain pipe. 2020-2025 Key Strategic Targets and Goals This project is consistent with Key Target No.1d: Fiscal Sustainability - Minimize risk and litigation exposure. Completion of this project protects Victoria Avenue from potential collapse due to soil subsidence caused by the damaged storm drain. Fiscal Impact No General Fund Impact. Funding for this change order is available through previously approved Patton Basin Outlet Repair CIP Project budgets in Fund No. 248-160-8015- 5504. Conclusion Adopt Resolution No. 2020-208 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute a Contract Change Order (CCO) #1 to Project No. 8015 with Jeremy Harris Construction Inc., in the amount of $78,595.50, for a full construction contract not -to-exceed amount of $574,966.50 and authorizing the Acting Director of Finance to increase the purchase order to reflect the full construction cost. Attachments Attachment 1 Resolution No. 2020-208 Attachment 2 Contract Change Order (CCO) #1 Attachment 3 Location Map Ward: 4 Synopsis of Previous Council Actions: June 19, 2019 Adopted Resolution No. 2019-168 approving Capital Improvement Program FY 2019/20. December 4, 2019 Mayor and City Council adopted Resolution No. 2019-353, awarding construction contract to Jeremy Harris Construction, Inc. for the construction of the CIP Project SD16-001, Patton Basin outlet repair. 18 Packet Pg. 625 RESOLUTION NO. 2020-208 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT CHANGE ORDER (CCO) #1 TO PROJECT NO. 8015 WITH JEREMY HARRIS CONSTRUCTION INC., IN THE AMOUNT OF $78,595.50, FOR A FULL CONSTRUCTION CONTRACT NOT-TO-EXCEED AMOUNT OF $574,966.50 AND AUTHORIZING THE ACTING DIRECTOR OF FINANCE TO INCREASE THE PURCHASE ORDER TO REFLECT THE FULL CONSTRUCTION COST WHEREAS, in September 1978, San Bernardino County Flood Control District issued Permit No. P-277077 to the City of San Bernardino to construct and maintain 48-inch reinforced concrete pipe (R.C.P) at Patton Basin, located at the north of the intersection of Highland Avenue and Victoria Avenue; and WHEREAS, the City is responsible for the ongoing repair and maintenance of this infrastructure; and WHEREAS, over time the 48-inch R.C.P. pipe has suffered damage and now requires replacement; and WHEREAS, on December 4, 2019 the Mayor and City Council adopted Resolution No. 2019-353, awarding a Construction Contract to Jeremy Harris Construction, Inc. (“Contractor”) for the construction of the CIP Project SD16-001, Patton Basin Outlet Repair (“Project”), and funded the Project through Storm Drain Development Impact Fees (Fun No. 248) fund; and WHEREAS, upon beginning the Project it was discovered that additional debris removal and soil compaction work that was not originally anticipated in the Project scope would be required to complete the Project; and WHEREAS, the City has negotiated with the Contractor to perform the additional work for an additional Project cost of $78,595.50, for a full construction cost amount of $574,966.50; and WHEREAS, approval of Contract Change Order #1 is required to move forward with the additional work as the change order amount exceeds the contingency amount of $49,600 previously established for the project. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 18.a Packet Pg. 626 Attachment: PW.Change Order No. 1 Patton Basin.01.Attachment 1.Resolution [Revision 2] (6838 : Resolution Approving the Patton Basin Resolution No. 2020-208 SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Manager, or designee, is hereby authorized to execute Contract Change Order No. 1 to Project No. 8015 with Jeremy Harris Construction, Inc., in the amount of $78,595.50 for a full contract not-to-exceed amount of $574,966.50, and attached hereto as Exhibit A. SECTION 3. The Acting Director of Finance is hereby directed to increase the purchase order as per the Contract Change Order No.1 for Project update 8015 to reflect the full construction contract costs. SECTION 4. 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 5. 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 6. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the Acting City Clerk this ___ day of __________, 2020. John Valdivia, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC, Acting City Clerk Approved as to form: __________________________________ Sonia Carvalho, City Attorney 18.a Packet Pg. 627 Attachment: PW.Change Order No. 1 Patton Basin.01.Attachment 1.Resolution [Revision 2] (6838 : Resolution Approving the Patton Basin Resolution No. 2020-208 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. _____, adopted at a regular meeting held at the ___ day of _______, 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. ______________________________ Genoveva Rocha, CMC, Acting City Clerk 18.a Packet Pg. 628 Attachment: PW.Change Order No. 1 Patton Basin.01.Attachment 1.Resolution [Revision 2] (6838 : Resolution Approving the Patton Basin CITY OF SAN BERNARDINO PUBLIC WORKS DEPARTMENT Mail: 290 North “D” Street Office: 201 N. “E” Street San Bernardino, CA 92401 909.384.5140 FAX 909.384.5190 CONTRACT CHANGE ORDER NO. ONE DATE: AUGUST 19, 2020 PROJECT: PATTON BASIN OUTLET REPAIR TO: JEREMY HARRIS CONSTRUCTION INC. 11731 Sterling Avenue, Suite F Riverside, Ca. 92503 GENTLEMEN: You are hereby compensated for performing the additional work as follows: Description of Change Cost Existing Concrete removal and existing soil compaction $ 78,595.50 TOTAL CHANGE ORDER COST $ 78,595.50 JUSTIFICATION: While the contractor was excavating for the installation of a new 60 inch. storm drain pipe, an abandoned concrete structure was encountered and interfered with excavation for the storm drain. It was apparent that the structure needed to be removed and surrounding soils needed to be compacted. Under the provisions of Section 3-4 “Changed Conditions” of the Standard Specifications, the contractor is entitled to a change order to adjust compensation when subsurface conditions not shown on plans are encountered. The additional work necessary to remove the abandoned concrete structure is categorized as “Extra Work” under the provisions of Section 3-3 of the Standard Specifications. Based on that provision, staff authorized the contractor to proceed with removal on a lump sum agreed price. SUMMARY OF CONTRACT COSTS The estimated revised contract cost is as follows: 18.b Packet Pg. 629 Attachment: PW.Change Order No. 1 Patton Basin Repair.02.Attachment 2.Change Order (6838 : Resolution Approving the Patton Basin Outlet Contract Change Order No. One Patton Basin Outlet Repair Page 2 of 2 2 Original Bid Amount .....................................................................................$496,371.00 Increase due to CCO#1 – Remove existing concrete structure ......................$ 78,595.50 Revised Contract Amount ...........................................................................$574,966.50 JEREMY HARRIS CONSTRUCTION INC. CITY OF SAN BERNARDINO DEPARTMENT OF PUBLIC WORKS Accepted Approved: By: By: Alex Qishta Title: Deputy Director of Public Works / City Engineer Date: Date: 18.b Packet Pg. 630 Attachment: PW.Change Order No. 1 Patton Basin Repair.02.Attachment 2.Change Order (6838 : Resolution Approving the Patton Basin Outlet 18.c Packet Pg. 631 Attachment: PW.Change Order No.1 Patton Basin Repair.03 - Attachment 3 - Location Map (6838 : Resolution Approving the Patton Basin Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: August 19, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Kris Jensen, Director of Public Works Subject: Resolution Approving Revised Cooperative Agreement with SBCTA for Metrolink Accessibility Phase II Recommendation Adopt Resolution No. 2020-209 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute the revised Coo perative Agreement No. 20-1002318 with the San Bernardino County Transportation Authority (SBCTA) for Phase II of the San Bernardino Metrolink Station Accessibility Improvement Project and authorizing the Acting Director of Finance to record a budget adjus tment in the Measure I Fund No. 129 in the amount of $18,000 to support the project. Background On September 26, 2013, former Governor Brown signed a legislation creating the Active Transportation Program (ATP) in the Department of Transportation (Senate Bill 99, Chapter 359 and Assembly Bill 101, Chapter 354). The ATP provides federal and state funding for various categories of transportation improvement projects, and is administered by the Division of Local Assistance, Office of Active Transportation an d Special Programs. The San Bernardino County Transportation Authority (SBCTA) was awarded ATP funding for the Metrolink Station Accessibility Improvement Project (“Project”). The City partnered with SBCTA during Phase I by waiving permit fees associated with the Project. SBCTA is ready to begin Phase II and is requesting that the City enter into a Cooperative Agreement to contribute to project management services and to waive permit fees for Phase II of the Project. Discussion The existing non-motorized network consists of a number of disconnected facilities. Barriers include disconnected bike lanes, lack of way-finding signs, substandard sidewalks and pedestrian crossings. The Project eliminates these gaps by providing an interconnected network of bike lanes, sidewalks, crossings, and improving existing highway railroad crossings and other related infrastructure which are safe, easy to navigate, convenient, and attractive. The Project plans to implement a well -connected network of active transportation facilities that foster a positive transit experience. It aims to build successful bicycle facilities with well-signed route-finding along the facility itself, 19 Packet Pg. 632 6840 Page 2 and regional way-finding to nearby destinations. The stations are surrounded by commercial, residential and industrial uses, and serve as commuter stations and local bus transfer center for a large amount of users. Approximately $192,000 was spent in San Bernardino in Phase I of the Project to improve access around the Metrolink Station at 3rd Street and Metrolink Way. Phase I was completed in March 2019. Approximately $181,500 will be spent on Phase II of the Project to improve access and mobility around the San Bernardino Metrolink Station as indicated on Attachment B to the Cooperative Agreement. On May 6, 2020, the Mayor and City Council adopted Resolution No. 2020 -81 approving Cooperative Agreement No. 20-1002318 (“Agreement”) between SBCTA and the City of San Bernardino for Phase II of the San Bernardino Metrolink Station Accessibility Improvement Project establishing the responsibilities of the Commission and the City. Since the time of original approval, SBCTA has approached the City to contribute funding for the management of the project. The Agreement has now been revised to include a City contribution for project management in the amount of $18,000. This revised Agreement No. 20-1002318 will replace the Agreement approved by the City Council on May 6, 2020. Construction of the Project is expected to start in January 2021 and be compl eted by June 2021. 2020-2025 Key Strategic Targets and Goals This project is consistent with Key Target No 1d : Minimize risk and litigation exposure and 1e: Create an asset management plan. This project will enhance travel path safety for the non-motoring public and contribute to clean and attractive non-motorized infrastructure network designed to support long term economic growth. Fiscal Impact There is no General Fund Impact. Funding in the amount of $18,000 for project management is available through Measure I (Fund No. 129). Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2020-209, authorizing the City Manager to execute revised Cooperative Agreement No. 20-1002318 with the San Bernardino County Transportation Authority (SBCTA) for Phase II of the San Bernardino Metrolink Station Accessibility Improvement Project and authorizing the Acting Director of Finance to record a budget adjustment in the Measure I Fund No. 129 in t he amount of $18,000 to support the project. Attachments Attachment 1 Resolution 2020-209: Exhibit “A” - Cooperative Agreement No. 20- 1002318 19 Packet Pg. 633 6840 Page 3 Ward: 1 Synopsis of Previous Council Actions: December 21, 2015 Resolution 2015-286 approved Cooperative Agreement No. 15- 1001132 with SBCTA for Phase I of the San Bernardino Metrolink Station Accessibility Improvement Project. May 6, 2020 Resolution No. 2020-81 approving Cooperative Agreement No. 20- 1002318 between SBCTA and City of San Bernardino . 19 Packet Pg. 634 RESOLUTION NO. 2020-209 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE THE REVISED COOPERATIVE AGREEMENT NO. 20- 1002318 WITH THE SAN BERNARDINO COUNTY TRANSPORTATION COMMISSION AUTHORITY (SBCTA) FOR PHASE II OF THE SAN BERNARDINO METROLINK STATION ACCESSIBILITY IMPROVEMENT PROJECT; AND AUTHORIZING THE ACTING DIRECTOR OF FINANCE TO RECORD A BUDGET ADJUSTMENT IN MEASURE I FUND NO. 129 IN THE AMOUNT OF $18,000 TO SUPPORT THE PROJECT WHEREAS, on May 6, 2020, the Mayor and City Council adopted Resolution No. 2020- 81, approving Cooperative Agreement No. 20-1002318 between SBCTA and the City of San Bernardino for Phase II of the San Bernardino Metrolink Station Accessibility Improvement Project. WHEREAS, the parties wish to enter into this agreement to delineate roles, responsibilities relative to project management, planning, PS & E and construction activities of the project; and WHEREAS, San Bernardino Metrolink Station Accessibility Improvement Project Phase II is funded by Active Transportation Program Cycle 4; and WHEREAS, the project will install bike lanes from the end of the Mt. Vernon Bridge viaduct to Ramona – Alessandro Elementary School and Santa Fe Depot; and WHEREAS, the agreement is revised to include City’s contribution of $18,000 for project management services; and WHEREAS, the revised agreement will replace the agreement previously approved by the City Council on May 6, 2020; and WHEREAS, the funding in the amount of $18,000 will be provided through Measure I Funds. 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 City Manager is hereby authorized to execute, on behalf of the City, the revised Memorandum of Understanding No. 20-1002318 with the San Bernardino County 19.a Packet Pg. 635 Attachment: PW.Cooperative Agreement SBCTA Metrolink Accessibility Phase II.01.Resolution.Attachment 1 [Revision 2] (6840 : Resolution Resolution No. 2020-209 Transportation Authority (SBCTA) for Phase II of the San Bernardino Metrolink Station Accessibility Project, attached herein as Exhibit “A”. SECTION 3. The Acting Director of Finance is authorized to amend the Program Year 2020/2021 Budget to allocate $18,000 from the Measure I (Fund 129) to the project. SECTION 4. 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 5. 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 6. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the Acting City Clerk this ___ day of __________ 2020. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney 19.a Packet Pg. 636 Attachment: PW.Cooperative Agreement SBCTA Metrolink Accessibility Phase II.01.Resolution.Attachment 1 [Revision 2] (6840 : Resolution Resolution No. 2020-209 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk 19.a Packet Pg. 637 Attachment: PW.Cooperative Agreement SBCTA Metrolink Accessibility Phase II.01.Resolution.Attachment 1 [Revision 2] (6840 : Resolution Cooperative Agreement No. 20-1002318 Page 1 of 10 COOPERATIVE AGREEMENT NO. 20-1002318 BETWEEN SAN BERNARDINO COUNTY TRANSPORTATION AUTHORITY AND THE CITY OF SAN BERNARDINO FOR PLANNING AND ENVIRONMENTAL; PLANS, SPECIFICATIONS AND ESTIMATE (PS&E); RIGHT OF WAY (ROW); AND CONSTRUCTION FOR PHASE-II OF THE SAN BERNARDINO METROLINK STATION ACCESSIBILITY IMPROVEMENT PROJECT I. PARTIES AND TERM A. THIS COOPERATIVE AGREEMENT (“AGREEMENT”) is made and entered into by and between the San Bernardino County Transportation Authority (“SBCTA”) and the City of San Bernardino (“CITY”). SBCTA and CITY may be referred to individually as a “PARTY” and collectively as “PARTIES”. B. On February 12, 2016, SBCTA and the City of San Bernardino executed Cooperative Agreement 15-1001132 for Phase I of the Metrolinlk Station Accessibility Improvement Project. Construction for Phase I was completed in March 2019. C. THIS AGREEMENT is for Phase II of the Metrolink Station Accessibility Improvements and shall terminate upon completion of SBCTA’s management of the planning, environmental, PS&E, ROW and construction phases, or December 31, 2026, whichever is earlier in time, except that the indemnification provisions shall remain in effect until terminated or modified, in writing, by mutual agreement. Should any claims arising out of this Agreement be asserted against one of the Parties, the Parties agree to extend the fixed termination date of this Agreement, until such time as the claims are settled, dismissed or paid. II. RECITALS A. WHEREAS, Phase I and Phase II improvements in the City of San Bernardino are depicted in Attachment B.“PHASE I” consists of the Active Transportation Program Cycle 1;”PHASE II” is the Active Transportation Program Cycle 4. ”; and B. WHEREAS, SBCTA has completed PHASE I and proposes to construct PHASE II, which includes location-specific improvements to various facilities within the City of San Bernardino (“PROJECT”); and C. WHEREAS, the Parties wish to enter into this Agreement to delineate roles, responsibilities, and funding commitments relative to the Project Management, Planning, Environmental, PS&E, ROW and Construction activities of the PROJECT; and 19.b Packet Pg. 638 Attachment: PW.Coperative Agreement SBCTA Metrolink Accessibility Phase II.1A. Agreement.Attachment 1.Exhibit A (6840 : Resolution Cooperative Agreement No. 20-1002318 Page 2 of 10 D. WHEREAS, the CITY has requested SBCTA to complete the implementation of the PROJECT, including project management, engineering design, construction, procurement and management of contractors, and coordination with other cities and agencies; and E. WHEREAS, SBCTA has requested the CITY to contribute funding to cover a portion of Phase II costs for project management, as outlined in Attachment A; and F. WHEREAS, the CITY is the PROJECT owner and this AGREEMENT does not transfer ownership; as such, the CITY retains all legal responsibilities associated with ownership, operation and maintenance of the existing and future improvements; and G. WHEREAS, SBCTA is the California Environmental Quality Act (CEQA) Lead Agency for the PROJECT and The State of California, Department of Transportation (Caltrans) is the National Environmental Policy Act (NEPA) Lead Agency for the PROJECT. NOW, THEREFORE, the Parties agree to the following: III. SBCTA RESPONSIBILITIES: SBCTA agrees: A. To be the lead agency for Project Management, Planning, Environmental, PS&E, ROW, and Construction work and to diligently undertake and complete, the Planning, Environmental, ROW, PS&E, and Construction work on PROJECT, including the selection and retention of consultants and contractors. SBCTA shall also serve as the lead agency for managing the PHASE II PROJECT budget and corresponding contracts. Performance of services under these consultant and/or contractor contracts shall be subject to the technical direction of SBCTA’s Director of Project Delivery, or his designee, with input and consultation from CITY. B. To contribute towards the Planning, Environmental, PS&E, ROW, and Construction phases of the PHASE II PROJECT, an estimated $6,131,664 for Phase II. The actual cost of a specific phase may ultimately vary and cause the total project cost to change from the estimate provided in Attachment A. The total project costs reminaing after contributions other participating cities, exclusive of the CITY-provided services specified in Part IV of this AGREEMENT, is to be borne solely by SBCTA. C. To execute appropriate agreements with other cities and agencies to facilitate and coordinate the completion of the PROJECT. D. To invoice CITY within 45 days of execution of this agreement for City’s contribution to the project as noted in the Funding Table, Attachment A. E. To certify the California Environmental Quality Act Notice of Exemption (CEQA NOE) and coordinate with Caltrans to certify the National Environmental Policy Act Categorical Exclusion (NEPA CE). F. To designate a Project Manager to represent SBCTA through whom all communications between the Parties shall be channeled. G. To provide CITY with a proposed project schedule to complete the PROJECT. 19.b Packet Pg. 639 Attachment: PW.Coperative Agreement SBCTA Metrolink Accessibility Phase II.1A. Agreement.Attachment 1.Exhibit A (6840 : Resolution Cooperative Agreement No. 20-1002318 Page 3 of 10 H. To include CITY in Project Development Team (PDT) meetings and related communications on PROJECT progress as well as to provide CITY with copies of PDT meeting minutes and action items. I. To perform the design and construction in accordance with State and Federal standards and practices. J. To include CITY in design decisions that could impact CITY’s general plans and aesthetic considerations. K. To make all PROJECT work performed by SBCTA available for review and comment by the CITY. The CITY shall transmit all review comments to SBCTA within 20 working days after the submittal is received by the CITY. If comments are not provided by the 20th working day, SBCTA will deem the submittals approved by the CITY and shall notify the CITY of its intention to move forward with PROJECT execution. The CITY agrees the submittals may be in the form of plans, specifications, estimates, reports, studies, environmental documents or other PROJECT-related submittals requiring the CITY to review and comment. SBCTA and CITY shall review all comments received regarding the PROJECT and mutually agree upon comments which shall be incorporated into the PROJECT. L. To apply for encroachment permits authorizing entry of SBCTA and its consultants and contractors onto CITY right of way to perform investigative activities, including surveying and geotechnical borings, and construction activities required by the PROJECT; and to receive encroachment permits from the CITY at no cost to SBCTA. M. To obtain, all necessary PROJECT permits, agreements and/or approvals from appropriate agencies; all necessary PROJECT permits, agreements, and/or approvals from the CITY shall be provided at no cost to SBCTA. All mitigation, monitoring, and/or remedial action required by said permits and/or agreements obtained from agencies other than the CITY shall constitute part of the PROJECT cost. N. To identify the utilities within the PROJECT area and coordinate with the utility companies to determine their location, and if necessary their relocation. O. To provide written notice to CITY upon SBCTA’s determination that the Project is substantially completed in accordance with the plans and specifications. For the purposes of this Agreement, “substantially completed” shall mean that the PROJECT can be reasonably used for its intended purposes, notwithstanding that certain nonmaterial work remains to be completed, it being understood that SBCTA shall promptly pursue the completion of such nonmaterial work. P. Upon completion of construction of PROJECT, SBCTA shall deliver to CITY a complete set of redline “as-built” plans of the PROJECT. IV. CITY RESPONSIBILITIES: CITY agrees: 19.b Packet Pg. 640 Attachment: PW.Coperative Agreement SBCTA Metrolink Accessibility Phase II.1A. Agreement.Attachment 1.Exhibit A (6840 : Resolution Cooperative Agreement No. 20-1002318 Page 4 of 10 A. To designate a responsible staff member that will be CITY’s representative in attending the PDT meetings, receiving day-to-day communication and reviewing the PROJECT documents. B. To contribute, within 45 days of receiving SBCTA’s invoice, a PROJECT contribution in the amount of $18,000. The actual cost of a specific phase may ultimately vary and cause the total project cost to change from the estimate provided in Attachment A. The total project costs reminaing after contributions from CITY and other participating cities, exclusive of the CITY-provided services specified in Part IV of this AGREEMENT, is to be borne solely by SBCTA. C. To distribute PROJECT submittals for review and comment the CITY’s Public Works Department. D. To distribute PROJECT submittals for review and comment by CITY. E. To review and comment, at no cost to the PROJECT, on all PROJECT work performed by SBCTA. CITY shall transmit all review comments to SBCTA within 20 working days after the submittal is received by CITY. If comments are not provided by the 20th working day, SBCTA will deem the submittals approved by CITY and shall notify CITY of its intention to move forward with PROJECT execution. CITY agrees the submittals may be in the form of plans, specifications, estimates, reports, studies, environmental documents or other PROJECT-related submittals requiring CITY review and comment. SBCTA and CITY shall review all comments received regarding the PROJECT and mutually agree to which comments shall be incorporated into the PROJECT. F. To provide encroachment permits authorizing entry of SBCTA and its consultants and contractors onto CITY right of way to perform investigative activities, including surveying and geotechnical borings, and construction activities required by the PROJECT at no cost to the PROJECT. If encroachment permits are necessary, the CITY agrees to facilitate coordination with adjacent properties, residences, and businesses impacted. G. To provide all City permits and waive City fees required to construct the PROJECT. SBCTA/contractor(s) shall obtain and pay the fees for all other non-City permits required for the construction of the PROJECT. H. To prepare CITY staff reports for city council consideration and SBCTA agrees to provide supporting documentation for the staff reports. I. CITY agrees to exempt SBCTA from plan check fees for submittal reviews. 19.b Packet Pg. 641 Attachment: PW.Coperative Agreement SBCTA Metrolink Accessibility Phase II.1A. Agreement.Attachment 1.Exhibit A (6840 : Resolution Cooperative Agreement No. 20-1002318 Page 5 of 10 J. CITY agrees it will issue zero fee encroachment, traffic control, and street cut permits or other permits required by the CITY to perform investigative activities required by the PROJECT. K. CITY agrees to provide at no cost to the PROJECT existing improvement plans, and standard plans and specifications. L. CITY agrees to provide SBCTA copies of the franchise/utility agreements for the utilities in the PROJECT area for the purposes of determining prior rights and estimating utility relocation costs. M. CITY agrees it will invoke its franchise/utility agreements and have its prior rights imposed on utilities if it is determined utilities are in conflict with the PROJECT and require relocation. CITY will formally inform the utilities of CITY’s prior rights and request the relocation of utilities pursuant to the franchise/utility agreements. N. To accept in writing the PROJECT within thirty (30) days of receipt of written notice from SBCTA that the PROJECT is substantially completed as described by Paragraph “N” in Section III, which acceptance shall not be unreasonably withheld or delayed. Withholding or delaying acceptance because of nonmaterial work remaining to be completing shall be deemed unreasonable. V. MUTUAL RESPONSIBILITIES: A. The scope of the PROJECT is depicted in Attachment B “Conceptual Layout”. The scope of Phase II improvements is an “estimate” of improvements and is subject to change. To adhere to available funding limits for Phase II, as shown in Attachment A, certain improvements in Phase II may be eliminated. B. CITY agrees SBCTA is completing project management, environmental, PS&E, ROW, construction management, procurement and oversight of a construction contractor to complete the PROJECT. SBCTA will complete these tasks using SBCTA staff or contracted services. C. Neither CITY nor any officer, director, employee or agent thereof is responsible for any injury, damage or liability occurring or arising by reason of anything done or omitted to be done by SBCTA under or in connection with any work, authority or jurisdiction delegated to SBCTA under this AGREEMENT. It is understood and agreed that, pursuant to Government Code Section 895.4, SBCTA shall fully defend, indemnify and save harmless CITY its officers, directors, employees or agents from all claims, suits or actions of every name, kind and description brought for or on account of injury (as defined by Government Code Section 810.8) occurring by reason of anything done or omitted to be done by SBCTA under or in connection with any work, authority or jurisdiction delegated to SBCTA under this AGREEMENT. 19.b Packet Pg. 642 Attachment: PW.Coperative Agreement SBCTA Metrolink Accessibility Phase II.1A. Agreement.Attachment 1.Exhibit A (6840 : Resolution Cooperative Agreement No. 20-1002318 Page 6 of 10 D. Neither SBCTA nor any officer, director, employee or agent thereof is responsible for any injury, damage or liability occurring or arising by reason of anything done or omitted to be done by CITY under or in connection with any work, authority or jurisdiction delegated to CITY under this AGREEMENT. It is understood and agreed that, pursuant to Government Code Section 895.4, CITY shall fully defend, indemnify and save harmless SBCTA its officers, directors, employees or agents from all claims, suits or actions of every name, kind and description brought for or on account of injury (as defined by Government Code Section 810.8) occurring by reason of anything done or omitted to be done by CITY under or in connection with any work, authority or jurisdiction delegated to CITY under this AGREEMENT. E. This Agreement shall continue in full force and effect through completion and closeout of the PROJECT or on December 31, 2026 whichever is earlier in time. Should any claims arising out of PROJECT be asserted against one of the PARTIES, the PARTIES agree to extend the fixed termination date of this Agreement, until such time as the claims are settled, dismissed or paid. F. CITY is an authorized self-insured public entity for purposes of Professional Liability, General Liability, Automobile Liability and Workers’ Compensation a nd warrants that through its program of self-insurance, it has adequate coverage or resources to protect against liabilities arising out of the performance of the terms, conditions or obligations of this AGREEMENT. G. SBCTA is a public entity with Professional Liability, General Liability and Automobile Liability policies of $10,000,000 each and Workers’ Compensation insurance coverage in the statutory limits, to protect against liabilities arising out of the performance of the terms, conditions or obligations of this AGREEMENT. H. All PARTIES hereto warrant that they are duly authorized to execute this AGREEMENT on behalf of said PARTIES and that, by so executing this AGREEMENT, the PARTIES hereto are formally bound to this AGREEMENT. I. Except on subjects preempted by Federal law, this AGREEMENT shall be governed and construed in accordance with the laws of the State of California. All PARTIES agree to follow all local, state, county and federal laws and ordinances with respect to performance under this AGREEMENT. J. The PARTIES agree that each PARTY and any authorized representative, designated in writing to the PARTIES, and upon reasonable notice, shall have the right during normal business hours to examine all PARTIES’ financial books and records with respect to this AGREEMENT. The PARTIES agree to retain their books and records for a period of five (5) years from the later of: (a) the date on which this AGREEMENT terminates; or (b) the date on which such book or record was created. K. If any clause or provision of this AGREEMENT is illegal, invalid or unenforceable under applicable present or future laws, then it is the intention of the PARTIES that the remainder of this AGREEMENT shall not be affected but shall remain in full force and effect. 19.b Packet Pg. 643 Attachment: PW.Coperative Agreement SBCTA Metrolink Accessibility Phase II.1A. Agreement.Attachment 1.Exhibit A (6840 : Resolution Cooperative Agreement No. 20-1002318 Page 7 of 10 L. This AGREEMENT can be amended with a written amendment when agreed upon and duly authorized and executed by both PARTIES. M. In the event of litigation arising from this AGREEMENT, each PARTY to this 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 C and D of this Section. N. This AGREEMENT may be signed in counterparts, each of which shall constitute an original. O. Any notice required or authorized to be given hereunder or any other communications between the PARTIES provided for under the terms of this AGREEMENT shall be in writing, unless otherwise provided for herein, and shall be served personally or by reputable courier or by email addressed to the relevant party at the address/fax number stated below. P. Notice given under or regarding this AGREEMENT shall be deemed given (a) upon actual delivery, if delivery is personally made; or (b) upon delivery into the United States Mail if delivery is by postage paid certified mail (return receipt requested), email or private courier including overnight delivery services. Notice shall be sent to the respective Party at the address indicated below or to any other address as a Party may designate from time to time by a notice given in accordance with this paragraph. a. If to CITY: City of San Bernardino 300 North “D” Street, 3rd Floor San Bernardino, CA 92418 Attention: Public Works Director Email: b. If to SBCTA: San Bernardino County Transportation Authority 1170 West 3rd Street, 2nd Floor San Bernardino, CA 92410 Attention: Paula Beauchamp Director of Project Delivery and Toll Operations Email: pbeauchamp@gosbcta.com Q. The Recitals stated above are true and correct and are incorporated by this reference into the AGREEMENT. R. Attachments A and B are attached to and incorporated into this AGREEMENT. 19.b Packet Pg. 644 Attachment: PW.Coperative Agreement SBCTA Metrolink Accessibility Phase II.1A. Agreement.Attachment 1.Exhibit A (6840 : Resolution Cooperative Agreement No. 20-1002318 Page 8 of 10 SIGNATURE PAGE TO COOPERATIVE AGREEMENT NO. 20-1002318 BETWEEN SAN BERNARDINO COUNTY TRANSPORTATION AUTHORITY AND CITY OF SAN BERNARDINO SAN BERNARDINO COUNTY TRANSPORTATION AUTHORITY By: ____________________________ Frank Navarro Board President Date:___________________ APPROVED AS TO FORM AND PROCEDURE: By:_____________________ Julianna K. Tillquist General Counsel CITY OF SAN BERNARDINO By:_____________________________ John Valdivia Mayor Date:___________________ APPROVED AS TO FORM AND PROCEDURE: By:_____________________ Sonia Carvalho City Attorney 19.b Packet Pg. 645 Attachment: PW.Coperative Agreement SBCTA Metrolink Accessibility Phase II.1A. Agreement.Attachment 1.Exhibit A (6840 : Resolution Cooperative Agreement No. 20-1002318 Page 9 of 10 ATTACHMENT A PROJECT FUNDING TABLE Table 1. Phase II Costs for San Bernardino Metrolink Station Fund Amount City of San Bernardino ATP Local Contribution for Design and Construction $0 Project Management Cost (and other City incurred cost) $18,000 Total City Contribution $18,000 ATP Phase II Project Funding allocated to San Bernardino $181,500 Total Cost $199,500 19.b Packet Pg. 646 Attachment: PW.Coperative Agreement SBCTA Metrolink Accessibility Phase II.1A. Agreement.Attachment 1.Exhibit A (6840 : Resolution Cooperative Agreement No. 20-1002318 Page 10 of 10 ATTACHMENT B CONCEPTUAL LAYOUT 19.b Packet Pg. 647 Attachment: PW.Coperative Agreement SBCTA Metrolink Accessibility Phase II.1A. Agreement.Attachment 1.Exhibit A (6840 : Resolution Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: August 19, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Kris Jensen, Director of Public Works Subject: First Amendment to Vendor Services Agreement with RP Landscape and Irrigation - Bryce Hanes Park Recommendation It is respectfully recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution 2020-210: 1. Approving First Amendment to Vendor Services Agreement between the City of San Bernardino, California, and RP Landscape and Irrigation for landscape maintenance of the City’s north, central and south park sites (“First Amendment”) through June 30, 2021, to include maintenance services at Bryce Hanes Park in the amount of $32,787 for FY 2020/21 ($3,278.70 per month); and 2. Authorizing the City Manager to execute the First Amendment; and 3. Authorizing the Director of Finance to record budget adjustments to FY 2020/21 Operating Budget for Bryce Hanes Park Landscape Maintenance Fund No. 001 - 400-8790 to support the park’s landscape maintenance contract, infrastructure maintenance and utility expenses totaling $66,188. Background In early 2011, the San Bernardino Valley Municipal Water District (SBVWD) and the City of San Bernardino (City) began collaboration on the development of an urban park to serve a region of downtown San Bernardino within SBVWD’s service area. Through this collaboration, the City was awarded a $5 million grant from the State Department of Parks and Recreation to build what is now known as Bryce Hanes Park. In 2013, due to the City’s financial condition which prevented it from constructing and maintaining a new park with the grant award, SBVWD agreed to partner with the City in building and maintaining the park under a joint powers agreement (JPA). The park was completed in 2017 and SBVWD has retained the operation and maintenance oversight of the park since its opening. On August 5, 2020, the Mayor and City Council adopted Resolution No. 2020-169, terminating the Joint Exercise of Powers Agreement, dissolving the JPA, and transferring Bryce Hanes Park to the City. While there are a number of next steps to be 20 Packet Pg. 648 6859 Page 2 undertaken to finalize the full transfer of the park to the City, staff is requesting that the Mayor and City Council approve the proposed First Amendment to the City’s vendor landscape maintenance agreement with RP Landscape to ensure continuity of landscape maintenance services for the operational transition of maintenance responsibility to the City. Additionally, staff is recommending the establishment of operational budgets to support park infrastructure maintenance of the existing splash park, skate park, and other infrastructure assets. Funding for the long-term maintenance of the park will be contributed by SBVWD in an amount of $2 million as part of the cooperative agreement approved on August 5th between the City of San Bernardino and the SBVWD. Discussion Bryce Hanes Park currently serves as a vibrant community gathering place that is one of the busiest parks in the City, featuring playground equipment that includes a tot lot, skate park, basketball court, outdoor fitness equipment, shade structures, restrooms, a splash pad that recycles water, and water-saving plants and trees. While SBVWD took the lead in the design, construction and initial operation and management of the park, it was contemplated at the inception of the partnership that the City of San Bernardino would take over the administration, management, and maintenance of the park as soon as it was feasible. With the August 5, 2020, Mayor and City Council’s action to dissolve the JPA, the agencies are now working together toward a full transfer of the park property to the City. Beginning September 1, 2020, the City’s Public Works Department will begin managing the day to day operation and maintenance of the park including landscape, facility repairs and utility billing. The City currently contracts with RP Landscape for l andscape maintenance, irrigation and custodial services at all City parks, as well as median landscape maintenance. RP Landscape is currently servicing Bryce Hanes Park under a separate maintenance services contract with SBVWD. At this time, RP Landscape has provided the City with pricing for maintenance services at the park based on their current Vendor Services Agreement with the City. Whereas RP Landscape is already maintaining Bryce Hanes Park for SBVWD, it is recommended that the City continue utilizing RP Landscape’s services and amend the City’s current contract with RP Landscape to include this maintenance. To facilitate the transition of the park to the City, SBVW District will contribute $2 million to assist with the long-term operation and maintenance of the park through the grant performance period (June 2041). SBVWD’s contribution will support the park maintenance costs along with a portion of the capital replacement costs during this time frame. Annual costs for operation and maintenanc e of Bryce Hanes Park are estimated in the amount of $66,188. The establishment of separate operating budgets for maintenance at Bryce Hanes Park is required in FY 2020/21 to begin service provisions. Any operational budget savings realized during any fisc al year will be carried over for park maintenance in future years. 20 Packet Pg. 649 6859 Page 3 2020-2025 Key Strategic Targets and Goals The approval of Amendment No. 1 to Vendor Services Agreement with RP Landscape aligns with Key Target No. 1: Financial Stability - Create an asset management plan. Incorporating landscape maintenance services for Bryce Hanes Park into the City’s current maintenance contract provides continuity of service and ensures that the park asset and its amenities remain attractive and inviting for use by the community. Fiscal Impact No General Fund impact. The annual projected cost of providing routine maintenance at Bryce Hanes Park is estimated to be $66,188 for both contract maintenance and City inspections and repairs. Additionally, the park propert y will require on-going capital improvements that are projected to cost $52,508 per year. Maintenance costs and capital replacement expenses will be supported through a one -time lump-sum payment of $2 million from SBVWD. The table below reflects the operating budget distribution for FY 2020/21 in Bryce Hanes Park Maintenance Fund No 001 -400-8790: Description FY2020/21 Budget Contract Park Maintenance $ 32,727 Materials & Supplies $ 12,000 Water $ 15,000 Electricity $ 1,600 Security $ 1,700 Staff Inspections $ 3,161 TOTAL $ 66,188 Conclusion It is respectfully recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution 2020-210: 1. Approving First Amendment to Vendor Services Agre ement between the City of San Bernardino, California, and RP Landscape and Irrigation for landscape maintenance of the City’s north, central and south park sites (“First Amendment”) through June 30, 2021, to include maintenance services at Bryce Hanes Park in the amount of $32,787 for FY 2020/21 ($3,278.70 per month); and 2. Authorizing the City Manager to execute the First Amendment; and 3. Authorizing the Director of Finance to record budget adjustments to FY 2020/21 Operating Budget for Bryce Hanes Park Landscape Maintenance Fund No. 001 - 400-8790 to support the park’s landscape maintenance contract, infrastructure maintenance and utility expenses totaling $66,188. Attachments Attachment 1 Resolution No. 2020-210; Exhibit A - First Amendment 20 Packet Pg. 650 6859 Page 4 Attachment 2 Resolution 2018 - Vendor Services Agreement Attachment 3 Bryce Hanes Maintenance Quote Attachment 4 Map Ward: 2 Synopsis of Previous Council Actions: August 26, 1998 The San Bernardino Regional Water Resources Authority Joint Powers Agreement was established between the City of San Bernardino, the Inland Valley Development Agency (IVDA) and the San Bernardino Valley Municipal Water District with the intention of redeveloping blighted areas located within the City and redevelopment areas with a water resources and water storage project. April 16, 2013 San Bernardino Regional Water Resources Authority JPA was amended (Resolution No. 2013-70) to exclude the IVDA and allow the JPA to be the recipient of the $5 million grant award for the construction of a municipal park at the northwest corner of 9th Street and E Street. August 5, 2020 The City Council adopted Adopt Resolution No. 2020 -169, whereas the City of San Bernardino and San Bernardino Valley Municipal Water District terminated the Joint Exercise of Powers Agreement, dissolving the San Bernardino Regional Water Resources Authority, and transferring Bryce Hanes park to the City. 20 Packet Pg. 651 RESOLUTION NO. 2020-210 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE THE FIRST AMENDMENT TO VENDOR SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO, CALIFORNIA, AND RP LANDSCAPE AND IRRIGATION FOR LANDSCAPE MAINTENANCE OF THE CITY’S NORTH, CENTRAL AND SOUTH PARK SITES (“FIRST AMENDMENT”) TO INCLUDE MAINTENANCE SERVICES AT BRYCE HANES PARK IN THE AMOUNT OF $32,787 FOR FY 2020/21 ($3,278.70 PER MONTH); AND AUTHORIZING THE DIRECTOR OF FINANCE TO RECORD BUDGET ADJUSTMENTS TO FY 2020/21 OPERATING BUDGET FOR BRYCE HANES PARK LANDSCAPE MAINTENANCE FUND NO. 001-400-8790 TO SUPPORT THE PARK’S LANDSCAPE MAINTENANCE CONTRACT, INFRASTRUCTURE MAINTENANCE AND UTILITY EXPENSES IN A TOTAL AMOUNT OF $66,188 WHEREAS, the City and San Bernardino Valley Water District (SBVMD) previously partnered in building and maintaining the Bryce Hanes Park under a joint powers agreement (JPA); and WHEREAS, On August 5, 2020, the City Council adopted Resolution No. 2020-169, terminating the Joint Exercise of Powers Agreement, dissolving the JPA, and transferri ng Bryce Hanes Park to the City, shifting responsibility for operation and maintenance of the park to the City; and WHEREAS, the City’s Public Works Department will begin managing the day to day operation and maintenance of the park including landscape, facility repairs and utility billing; and WHEREAS, the City currently contracts with RP Landscape and Irrigation for landscape maintenance, irrigation and custodial services at all City parks, as well as median landscape maintenance; and WHEREAS, the City now desires to amend the existing Vendor Services Agreement with RP Landscape to include the maintenance services for Bryce Hanes Park; and WHEREAS, financial support for the long-term maintenance of the park will be contributed by SBVMD in an amount of $2M. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 20.a Packet Pg. 652 Attachment: PW.RP Landscape - Bryce Hanes Amendment.Att 1 Resolution FINAL (6859 : First Amendment to Vendor Services Agreement with Resolution No. 2020-210 SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Manager, or designee, is hereby authorized to execute the First Amendment to Vendor Services Agreement by and Between the City and RP Landscape and Irrigation, attached hereto and incorporated herein as Exhibit A, to include maintenance services for Bryce Hanes Park in a total amount of $32,787 for FY2020/21. SECTION 3. The Director of Finance is hereby authorized to record budget adjustments to FY2020/21 Operating Budgets in Bryce Hanes Park Maintenance Fund No. 001-400-8790 in a total amount of $66,188 for operation and maintenance costs, and increase the existing purchase order with RP Landscape and Irrigation as per the First Amendment. SECTION 4. 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 5. 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 6. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the Acting City Clerk this ___ day of __________ 2020. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney 20.a Packet Pg. 653 Attachment: PW.RP Landscape - Bryce Hanes Amendment.Att 1 Resolution FINAL (6859 : First Amendment to Vendor Services Agreement with Resolution No. 2020-210 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk 20.a Packet Pg. 654 Attachment: PW.RP Landscape - Bryce Hanes Amendment.Att 1 Resolution FINAL (6859 : First Amendment to Vendor Services Agreement with FIRST AMENDMENT TO THE VENDOR AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO, CALIFORNIA AND RP LANDSCAPE AND IRRIGATION FOR LANDSCAPE MAINTENANCE OF THE CITY’S NORTH, CENTRAL AND SOUTH PARK SITES This First Amendment (“First Amendment”) is entered into by and between the City of San Bernardino, a charter city organized under the laws of the State of California (hereinafter the “City”), and RP Landscape and Irrigation (hereinafter the “Vendor”) as of August __, 2020. City and Vendor are at times referred to individually as “Party” and collectively as the “Parties”. WHEREAS, City and Vendor entered into an Agreement on June 20, 2018, to contract for parks maintenance and services; and, WHEREAS, the Parties agreed to extend the Agreement until June 30, 2021; and, WHEREAS, City and Vendor now wish to amend the Original Agreement to update the City representative and add Bryce Hanes Park located at 534 W. 9th St., San Bernardino, CA 92410, to the park properties maintained by Vendor. NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth herein, the Parties agree as follows: 1. NOTICES. Section 11 of the Agreement is amended to read as follows: “Any notice 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: Director of Public Works RP Landscape & Irrigation 201 N E Street 1905 W. Rialto Avenue Suite 200 P.O. Box 1200 San Bernardino, CA 92401 San Bernardino, CA 92402 2. SECTION III. BID CONTENT AND FORMS. Effective September 1, 2020, section C. Cost and Price Forms, is amended to add to Bryce Hanes Park to the park properties maintained by Vendor. The total monthly cost of maintenance shall not exceed three thousand, two hundred and seventy-eight dollars with seventy cents ($3,278.70). 3. Effect on Other Provisions. All other provisions of the Original Agreement shall remain in full force and effect. [SIGNATURES ON FOLLOWING PAGE] 20.b Packet Pg. 655 Attachment: PW.RP Landscape - Bryce Hanes Amendment.Att 1A - First Amendment [Revision 1] (6859 : First Amendment to Vendor Services IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed the day and year first above written. Dated: ____________, 2020 RP LANDSCAPE & IRRIGATION _____________________________ By: Its: Dated: _____________, 2020 CITY OF SAN BERNARDINO ____________________________ By: Teri Ledoux Its: City Manager 20.b Packet Pg. 656 Attachment: PW.RP Landscape - Bryce Hanes Amendment.Att 1A - First Amendment [Revision 1] (6859 : First Amendment to Vendor Services 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. 2018-173 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE A VENDOR SERVICE AGREEMENT WITH RP LANDSCAPE AND IRRIGATION FOR LANDSCAPE MAINTENANCE OF THE CITY'S NORTH, CENTRAL AND SOUTH PARK SITES WHEREAS, on April 2, 2018, a formal bid, was solicited by Parks, Recreation and Community Services Department and notices were posted on the City's website and printed in the San Bernardino County Sun Newspaper; and, WHEREAS, the bid price forms were divided into three separate sections: North, Central and South park sites for park maintenance, restroom servicing and trash service; and, WHEREAS, the bids were opened publicly on April 17, 2018 at 3:00 p.m.; and, WHEREAS, RP Landscape and Irrigation located at San Bernardino, California was determined to have submitted the lowest and most responsive bid for the City's North, Central and South park sites pursuant to RFQ F-18-10. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. A contract is hereby awarded to RP Landscape and Irrigation in an amount not to exceed $1,299,751.00 for FY 2018/19, with an option to renew for two (2) additional years, FY 2019/20 and FY 2020/21 upon mutual agreement by both parties. SECTION 2. All other bids, therefore, are hereby rejected. SECTION 3. The City Manager or her designee is hereby authorized and directed to execute a Vendor Service Agreement with RP Landscape and Irrigation, a copy of which is attached hereto and incorporated herein by reference as though set forth at length and marked as Exhibit "A". 20.c Packet Pg. 657 Attachment: PW.RP Landscape - Bryce Hanes Amendment.Att 2 - Vendor Agreement Reso 2018-173 (6859 : First Amendment to Vendor 1 2 3 4 5 6 7 8 9 10 11 12 13 14 is 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 4. The Director of Finance or his designee is directed to issue an annual Purchase Order for a total amount not to exceed $1,299,751.00 for the period of July 1, 2018 through June 30, 2019. The Purchase Order shall reference this Resolution, state that it is for park landscape maintenance, daily trash pickup, and restroom servicing for FY 2018/19 at the City's North, Central and South park sites; and incorporate the terms and conditions of the Agreement. SECTION 5. This contract and any amendment or modifications hereto shall not take effect or become operative until fully signed and executed by the parties and no party shall be obligated hereunder until the time of such full execution. Nor oral agreement, modifications or waivers are intended or authorized and shall not be implied from any act or course of conduct of any party. SECTION 6. The authorization to execute this contract is rescinded if the parties to the contract fail to execute it within sixty (60) days of passage of this Resolution. G 20.c Packet Pg. 658 Attachment: PW.RP Landscape - Bryce Hanes Amendment.Att 2 - Vendor Agreement Reso 2018-173 (6859 : First Amendment to Vendor 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 THE CITY MANAGER TO EXECUTE A VENDOR SERVICE AGREEMENT WITH RP LANDSCAPE AND IRRIGATION FOR LANDSCAPE MAINTENANCE OF THE CITY'S NORTH, CENTRAL AND SOUTH PARK SITES 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 20th day of June 2018, by the following vote, to wit: Council Members: AYES NAYS MARQUEZ BARRIOS is VALDIVIA SHORETT xcm, NICKEL RICHARD k MULVIHILL X ABSTAIN ABSENT L`-/fir [+• George Hanna, CM , City Clerk The foregoing Resolution is hereby approved this 20th day of June 2018. l R. Carey Davi, , Mayor City of San Bernardino Approved as to form: Gary D. Saenz, City Attorney By: i f 3 20.c Packet Pg. 659 Attachment: PW.RP Landscape - Bryce Hanes Amendment.Att 2 - Vendor Agreement Reso 2018-173 (6859 : First Amendment to Vendor VENDOR SERVICE AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO, CALIFORNIA AND RP LANDSCAPE AND IRRIGATION FOR LANDSCAPE MAINTENANCE OF THE CITY'S NORTH, CENTRAL AND SOUTH PARK SITES This Vendor Service agreement is entered into this 20th day of June 2018 ("Effective Date'), by and between RP Landscape and Irrigation ("VENDOR") and the City of San Bernardino, a charter city and municipal corporation ("CITY"). WITNESSETH: WHEREAS, the Mayor and City Council has determined that it is advantageous and in the best interest of the CITY to contract for parks maintenance services; and, WHEREAS, the CITY did solicit and accept bids from available vendors for parks maintenance services at the City's North, Central and South park sites; and, WHEREAS, after soliciting the formal bid process for the required landscape maintenance, trash pickup, and restroom servicing; it was determined that VENDOR can best meet CITY's needs; and WHEREAS, no official or employee of the CITY has a financial interest, within the provision of California Government Code § 1090-1092, in the subject matter of this Agreement. NOW, THEREFORE, the parties hereto agree as follows: 1. SCOPE OF SERVICES. For the remuneration stipulated, CITY hereby engages the services of VENDOR to provide the services of landscape maintenance, trash pickup, and restroom services at the CITY'S North, Central, and South park sites as set forth in CITY's RFQ F-18-10 (dated April 2, 2018), attached hereto, and incorporated herein as Exhibit "A" ("Services"). 2. COMPENSATION AND EXPENSES. 2.1 For the services delineated above, the CITY, upon presentation of an invoice, shall pay the VENDOR up the amount of $1,299,751 for park maintenance, restroom maintenance and trash services at the City's North, Central and South park sites for Fiscal Year 2018/19. The total price for each subsequent option year, if exercised, may not increase more than FIVE PERCENT (5%) over the previous fiscal year's price without written authorization of the Mayor and City Council. 2.1 No other expenditures made by VENDOR shall be reimbursed by CITY. 3. TERM; TERMINATION. The term of this Agreement shall be from July 1, 2018 to June 30, 2019. The term of this Agreement may be extended on the same provisions and conditions, except for total price, for two one-year periods following expiration of the current term upon written authorization of the City Manager. This Agreement may be terminated at any time upon thirty (30) days written notice by either party. 4. INDEMNITY. To the fullest extent permitted by law, VENDOR, shall defend (with legal counsel reasonably acceptable to CITY), indemnify, protect, and hold harmless CITY and its elected officials, officers, employees, agents, and representatives (Indemnified Parties) from and against any and all claims, losses, costs, damages, injuries including, without limitation, injury to or death of an 20.c Packet Pg. 660 Attachment: PW.RP Landscape - Bryce Hanes Amendment.Att 2 - Vendor Agreement Reso 2018-173 (6859 : First Amendment to Vendor employee of VENDOR or its subcontractors), expense, and liability of every kind, nature and description (including, without limitation, incidental and consequential damages, court costs, and litigation expenses and fees of expert consultants or expert witnesses incurred in connection therewith and cost of investigation) that arise out of, pertain to, or relate to, directly or indirectly, in whole or in part, any goods provided or performance of services under this Agreement by VENDOR, any subcontractor, anyone directly or indirectly employed by either of them, or anyone that either of them control. VENDOR's duties to defend, indemnify, protect, and hold harmless shall not include any claims or liabilities arising from the sole negligence or willful misconduct of the Indemnified Parties. The VENDOR's indemnification obligation applies to the CITY's "active" as well as "passive" negligence, but does not apply to the CITY's "sole negligence" or "willful misconduct" within the meaning of Civil Code Section 2782. M lLIVIIN17:3-C47-3 VENDOR shall maintain in effect policies of comprehensive public general, and automobile liability insurance, in the amount of $1,000,000.00 combined single limit, and statutory worker's compensation coverage, and shall file copies of said policies with the CITY's Risk Manager prior to commencing the Services provided by this Agreement. City shall be set forth as an additional named insured in each policy of insurance provided hereunder. The Certificate of Insurance furnished to the CITY shall require the insurer to notify CITY of any change or termination in the policy. 5.1 Minimum Scope and Limits of Insurance. VENDOR shall obtain and maintain during the term of this Agreement all of the following insurance coverages: a) Commercial general liability, including premises -operations, products/completed operations, broad form property damage, blanket contractual liability, independent contractors, personal injury with a policy limit of not less than One Million Dollars 1,000,000.00), combines single limits, per occurrence and aggregate b) Automobile Liability for owned vehicles, hired, and non -owned vehicles, with a policy limit of not less than One Million Dollars ($1,000,000.00) combined single limits, per occurrence and aggregate. c) Workers compensation insurance as required by the State of California. 5.2 Certificates of Insurance. VENDOR shall provide to CITY certificates of insurance showing the insurance coverages and required endorsements described above, in a form and content approved by the CITY, prior to performing any services under this Agreement. 5.3 Non -Limiting. Nothing in this Section shall be construed as limiting in any way, the indemnification provision contained in this Agreement, or the extent to which VENDOR may be held responsible for payments of damages to persons or property. 6. INCONSISTENT OR CONFLICTING TERMS. This scope of the entire agreement between the parties is described in the agreement Documents. The Agreement Documents are comprised of the RFQ F-18-40 and any other solicitation document (Solicitation); the successful bid or proposal; the letter awarding the Agreement to VENDOR; the CITY's written acceptance of exceptions or clarifications to the Solicitation, if any; and this Agreement including any exhibits hereto. In resolving conflicts resulting from errors or discrepancies in any of the Agreement Documents, the terms of this Agreement shall prevail over any inconsistent or conflicting provision in any other Agreement Document, including exhibits to this Agreement. 20.c Packet Pg. 661 Attachment: PW.RP Landscape - Bryce Hanes Amendment.Att 2 - Vendor Agreement Reso 2018-173 (6859 : First Amendment to Vendor 7. NON-DISCRIMINATION. In the performance of this Agreement and in the hiring and recruitment of employees, VENDOR shall not engage in, nor permit its officers, employees or agents to engage in, discrimination in employment of persons because of their race, religion, color, national origin, ancestry, age, mental or physical disability, medical condition, marital status, sexual gender or sexual orientation, or any other status protected by law. 8. INDEPENDENT CONTRACTOR. VENDOR, its officers, agents, and employees, while performing Services pursuant to this Agreement will be acting as independent contractors and not agents or employees of the CITY. VENDOR is responsible for and must secure, at its own expense, any and all payment of Income Tax, Social Security, State Disability Insurance Compensation, Unemployment Compensation, and other payroll deductions for VENDOR and its officers, agents, and employees, and a business license, if any are required, in connection with the services to be performed hereunder. This Agreement does not create an agency, employee partnership, or joint venture between the CITY and VENDOR. 9. BUSINESS REGISTRATION CERTIFICATE AND OTHER REQUIREMENTS. Any company doing business within the CITY is required to obtain a Business Registration Certificate pursuant to Title 5 of the Municipal Code and must provide a copy of its Business Registration Certificate to the CITY before commencing the Services to be provided by this Agreement. VENDOR warrants that it possesses or shall obtain, and maintain a Business Registration and any other licenses, permits, qualifications, insurance, or any other requirement legally required of VENDOR to conduct its business in the CITY. 10. PREVAILING WAGE AND LABOR CODE REQUIREMENTS. VENDOR is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California code of Regulations, Title 8, Section 16000, et seq., Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on certain "public works" and maintenance" projects. If the Services under this Agreement are performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and if the total compensation is $ 1,000 or more, VENDOR agrees to comply fully with such prevailing Wage Laws. 11. NOTICES. Any notices to be given pursuant to this Agreement shall be deposited with the United States Postal Service, postage prepaid, and addressed as follows: TO THE CITY: TO THE VENDOR: Director of Parks, Recreation and Community Services RP Landscape & Irrigation 290 N. D Street 1905 W. Rialto Avenue San Bernardino, CA 92401 P.O. Box 1200 Telephone: (909) 384-5233 San Bernardino, CA 92402 12. ATTORNEYS' FEES. In the event that litigation is brought by any party in connection with this Agreement, the prevailing party shall be entitled to recover from the opposing party all costs and expenses, including reasonable attorney's fees, incurred by prevailing party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof the costs, salary, 20.c Packet Pg. 662 Attachment: PW.RP Landscape - Bryce Hanes Amendment.Att 2 - Vendor Agreement Reso 2018-173 (6859 : First Amendment to Vendor and expenses of the City Attorney and members of his office in enforcing this Agreement on behalf of the LICENSEE shall be considered as "attorneys' fees" for the purposes of this Agreement. 13. NO THIItD PARTY BENEFICIARIES. Except as may be specifically set forth in this Agreement, none of the provisions of this Agreements are intended to benefit any third party not specifically referenced herein. No party other than CITY and VENDOR shall have the right to enforce any of the provisions of this Agreement. 14. ASSIGNMENT. VENDOR shall not voluntarily or by operation of law assign, transfer, sublet, or encumber all or any part of the VENDOR's interest in this Agreement with CITY's prior written consent. Any attempted assignment, transfer, subletting, or encumbrance shall be void and shall constitute a breach of this Agreement and cause for the termination of this Agreement. Regardless of City's consent, no subletting or assignment shall release VENDOR of VENDOR's obligation to perform all other obligations to be performed by VENDOR hereunder for the term of this Agreement. 15. VENUE. The venue for any suit concerning solicitations or the Agreement, the interpretation of application of any of its terms and conditions, or any related disputes shall be in the Superior Court for the State of California, County of San Bernardino. The aforementioned choice of venue is intended by the parties to be mandatory and not permissive in nature. 16. SUCCESSORS AND ASSIGNS. This Agreement and all rights and obligations created by this Agreement shall be in force and effect whether or not any parties to the Agreement have been succeeded by another entity, and all rights and obligations created by this Agreement shall be vested and binding on any parry's successor in interest. 17. HEADINGS. The subject headings of the sections of this Agreement are included for the purposes of convenience only and shall not affect the construction or the interpretation of any of its provisions. 18. SEVERABILITY. The unenforceability, invalidity, or illegality of any provision of this Agreement shall not render any other provision of this Agreement unenforceable, invalid, or illegal. 109a I rI I : No failure of either CITY or VENDOR to insist upon the strict performance by the other of any covenant, term or condition of this Agreement, nor any failure to exercise any right or remedy consequent upon a breach of such covenant, term, or condition of this Agreement, shall constitute a waiver of any such breach of such covenant, term, or condition. No waiver of any breach shall affect or alter this Agreement, and each and every covenant, term, or condition. No waiver of any breach shall affect or alter this Agreement, and each and every covenant, condition, and term hereof shall continue in full force and effect without respect to any existing or subsequent breach. 20. PUBLIC RECORDS DISCLOSURE; CONFIDENTIALITY 20.1 All information received by the CITY from the VENDOR or any source concerning this Agreement, including the Agreement itself, may be treated by the CITY as public information subject to disclosure under the provisions of the California Public Records Act, Government Code Section 6250 et seq. (the "Public Records Act"). VENDOR understands that although all 20.c Packet Pg. 663 Attachment: PW.RP Landscape - Bryce Hanes Amendment.Att 2 - Vendor Agreement Reso 2018-173 (6859 : First Amendment to Vendor materials received by the CITY in connection with this Agreement are intended for the exclusive use of the CITY, they are potentially subject to disclosure under the provisions of the Public Records Act. In the event a request for disclosure of any, part, or all of any information with the VENDOR has reasonably requested CITY to hold in confidence is made to the CITY, the CITY shall notify the VENDOR of the request and shall thereafter disclose the requested information unless the VENDOR within five (5) days of receiving notice of the disclosure request, requests nondisclosure, provides CITY a legally sound basis for the nondisclosure, and agrees to indemnify, defend, and hold the CITY harmless in any/all actions brought to require disclosure. VENDOR waives any and all claims for damages, lost profits, or other injuries of any and all kinds in the event CITY fails to notify VENDOR of any such disclosure request and/or release any information concerning this Agreement received from the VENDOR or any other source. 20.2 Confidentiality. VENDOR acknowledges that the premises will be used by CITY for the processing and storage of confidential information protected from unlawful access and disclosure by federal, state, and local laws. CITY and its officers, agents, volunteers, and employees agree to comply with relevant federal, state, and local laws pertaining to the security and protection of such confidential information while on the premises. VENDOR agrees that it will prevent any unlawful access to or disclosure of the confidential information by VENDOR, its officers, agents, volunteers, employees, and contractors. VENDOR agrees that all entities with which VENDOR contracts to provide services on the premises will prevent any unlawful access or disclosure of the confidential information, and that said entities will agree to the same in writing. VENDOR acknowledges that any unlawful access to or disclosure of confidential information may result in the imposition of civil and criminal sanctions. 21. ENTIRE AGREEMENT; MODIFICATION. This Agreement contains all the agreements of the parties hereto with respect to any matter covered in this Agreement, and no prior agreement or understanding pertaining to such matter shall be effective for any purpose. This Agreement specifically supersedes any prior agreement between the parties related to the Property or Premises and the Parties hereby release each other from any and all claims or obligations arising thereunder. This Agreement may be modified or amended only by a written instrument executed by all parties to this Agreement. 20.c Packet Pg. 664 Attachment: PW.RP Landscape - Bryce Hanes Amendment.Att 2 - Vendor Agreement Reso 2018-173 (6859 : First Amendment to Vendor IN WITNESS THEREOF, the parties hereto have executed this Agreement on the day and date set forth below. CITY O SAN BE ARDINO By: Andrea M. Miller, City Manager Date: 2 Za 1 Approved as to Legal Form: GARY D. SAENZ, City Attorney City of San Bernardino By: Date: r 1 / -)- / ( 3 ATTEST: ' By: Georgean arena, CM ity Clerk VENDOR: by: Name) Title: Al Date: 20.c Packet Pg. 665 Attachment: PW.RP Landscape - Bryce Hanes Amendment.Att 2 - Vendor Agreement Reso 2018-173 (6859 : First Amendment to Vendor RP Landscape & Irrigation, Inc. PO Box 1200 San Bernardino, Ca 92402 State License 702393 Pest Control State Lic.78055 909/889/9987 Fax: 909/889/9897 e-mail: rplandscapeinc@aol.com Bryce Hanes Park 900 N "E" Street San Bernardino, CA 92410 Pricing based on the City of San Bernardino Parks contract. Park Service Schedule 7 days a week including Holidays except Christmas day. Scope Landscape Maintenance service per month. Mow, edge lawns and service planter beds. $1,225.40 Restroom clean daily price per month. Included toilet paper. Pressure wash on Fridays restrooms. $751.30 Trash pick-up daily, price per month. includes trash liners changed daily $462.00 Lock up Park nightly, price per month. $840.00 Total Monthly $3,278.70 If you have any questions please feel free to call me. Thank you, Roy Perez, Owner 20.d Packet Pg. 666 Attachment: PW.RP Landscape - Bryce Hanes Amendment.Att 3 - Estimate (6859 : First Amendment to Vendor Services Agreement with RP 20.e Packet Pg. 667 Attachment: PW.RP Landscape - Bryce Hanes Amendment.Att 4 - Park Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: August 19, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Kris Jensen, Director of Public Works Subject: Final Reading and Adoption of Ordinance MC-1538 Amending Ordinance MC-1522 and Levying Special Taxes Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, conduct a final reading and adopt Ordinance MC-1538 amending Ordinance MC-1522 and levying special taxes to be collected during Fiscal Year 2020/21 to pay the annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintena nce, a reserve fund for capital replacement and administrative expenses , with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services). Background On June 5, 2019, the Mayor and City Council adopted Resolution No. 2019-81, a Resolution of Intention to form Community Facilities District No. 2019 -1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”. A public hearing was set for July 17, 2019 for the establishment of the community facilities district. On August 7, 2019, the Mayor and City Council adopted Ordinance MC-1522 levying special taxes to be collected during FY 2019/20 to pay annual costs of mai ntenance, service expenses with respect to Community Facilities District No. 2019-1. On June 17, 2020, the Mayor and City Council adopted Resolution No. 2020 -144, a Resolution of Intention to annex property near the northeast intersection of Magnolia Avenue and Little League Drive (Attachment 2) into CFD 2019-1 as Annexation No. 4. On August 5, 2020, the Mayor and City Council adopted Resolution No. 2020 -184 amending Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 4) and held a special landowner election and canvassed the election. The Mayor and City Council then adopted Resolution No. 2020-185 declaring the results of the special landowner election and introduced Ordinance MC -1538 amending Ordinance MC-1522 and levying special taxes for Fiscal Year 2020/21 for first reading by title only and scheduled for second reading and adoption on August 19, 2020. 21 Packet Pg. 668 6866 Page 2 Discussion On August 5, 2020, Ordinance MC-1538 was introduced for first reading to the Mayor and City Council. The Ordinance is now being returned to the Mayor and City Council for the final reading and adoption. The Ordinance will become effective 30 days from the date of adoption. 2020-2025 Key Strategic Targets and Goals Formation of this CFD is consistent with Key Target No. 4a: Secure a long-term revenue source. Funding from district assessments will create sustainable financial support for ongoing maintenance of landscape and infrastructure associated with the district location. Fiscal Impact There is no fiscal impact associated with the recommended action of this item. All costs associated with annexing property into the District have been borne by the Property Owner. By annexing the subject property into the District, the costs of maintaining improvements located within the development will be financed through special taxes levied on the parcels within CFD 2019-1 and not through the City’s General Fund. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, conduct a final reading and adopt Ordinance MC-1538 amending Ordinance MC-1522 and levying special taxes to be collected during Fiscal Year 2020/21 to pay the annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintenance, a reserve fund for capital replacement and administrative expenses, with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services). Attachments Attachment 1 Ordinance MC-1538 (Ordinance Levying Special Taxes); Exhibit A - Description of Services; Exhibit B - Description of Territory Attachment 2 Project Location Map Ward: 5 Synopsis of Previous Council Actions: June 5, 2019 Mayor and City Council adopted Resolution No. 2019-81, a Resolution of Intention to form Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello - Roos Community Facilities Act of 1982.” July 17, 2019 Mayor and City Council adopted Resolution No. 2019-178 establishing Community Facilities District No. 2019-1; Resolution No. 2019-179 declaring election results for Community Facilities District No. 2019-1; and conducted the first reading of Ordinance MC-1522 levying special taxes to be collected during FY 2019 -20 to 21 Packet Pg. 669 6866 Page 3 pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1. August 7, 2019 Mayor and City Council conducted the final reading of Ordinance MC-1522 levying special taxes to be collected during FY 2019 -20 to pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1. June 17, 2020 Mayor and City Council adopted Resolution No. 2020-144, a Resolution of Intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982.” August 5, 2020 Mayor and City Council adopted Resolution No. 2020 -184 calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 2019-1 (Annexation No. 4), and adopted Resolution No. 2020-185 declaring election results for Community Facilities District No. 2019-1 (Annexation No. 4); and introduced Ordinance No. MC-1538 amending Ordinance MC-1522. 21 Packet Pg. 670 ORDINANCE NO. MC-1538 AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA AMENDING ORDINANCE NO. MC-1522 AND LEVYING SPECIAL TAXES TO BE COLLECTED DURING FISCAL YEAR 2020/21 TO PAY THE ANNUAL COSTS OF THE MAINTENANCE AND SERVICING OF LANDSCAPING, LIGHTING, WATER QUALITY IMPROVEMENTS, GRAFFITI, STREETS, STREET SWEEPING, PARKS AND TRAIL MAINTENANCE, A RESERVE FUND FOR CAPITAL REPLACEMENT, AND ADMINISTRATIVE EXPENSES WITH RESPECT TO CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) WHEREAS, the Mayor and City Council (the "City Council") of the City of San Bernardino (the "City") has heretofore adopted Resolution No. 2019-81, stating that a community facilities district to be known as "City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services), County of San Bernardino, State of California" (the "Community Facilities District"), is proposed to be established under the provisions of Chapter 2,5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the "Mello-Roos Community Facilities Act of 1982" (the "Act"), and fixing the time and place for a public hearing on the formation of the Community Facilities District; and WHEREAS, notice was published and mailed to the owners of the property in the Community Facilities District as required by law relative to the intention of the C ity Council to establish the Community Facilities District and the levy of the special taxes therein to provide certain services, and of the time and place of said public hearing; and WHEREAS, on August 5, 2020, at the time and place specified in said published and mailed notice, the City Council opened and held a public hearing as required by law relative to the formation of the Community Facilities District, the levy of the special taxes therein and the provision of services by the Community Facilities District; and WHEREAS, at the public hearing all persons desiring to be heard on all matters pertaining to the formation of the Community Facilities District, the levy of the special taxes and the provision of services therein were heard, and a full and fair hearing was held; and WHEREAS, subsequent to said hearing, the City Council adopted resolutions entitled "Resolution of the City Council of the City of San Bernardino Establishing Calling An Election for the Purpose of Submitting the Question of the Levy of the Proposed Special Tax to the Qualified Electors of the Proposed Community Facilities District; Authorizing the Levy of Special Taxes; and Establishing the Appropriations Limit for the Proposed Community Facilities District" (the "Resolution of Formation") which resolution established the Community Facilities 21.a Packet Pg. 671 Attachment: PW CFD 2019-1 Annex 4 - Att 1. Ordinance 3 (6866 : Final Reading and Adoption of Ordinance MC-1538 Amending Ordinance MC- Ordinance MC-1538 2 District, authorized the levy of a special tax within the District, and called an election within the District on the proposition of levying a special tax, and establishing an appropriations li mit within the District; and WHEREAS, an election was held within the Community Facilities District in which the sole eligible landowner elector approved said propositions by more than the two-thirds vote required by the Act. THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: SECTION 1. Findings. It is necessary that the City Council of the City of San Bernardino levy special taxes pursuant to Sections 53340 of the Government Code to provide and finance the costs of certain types of services, and related costs within the Community Facilities District, including (i) the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, and park maintenance, (ii) a reserve fund for capital replacement, and (iii) administrative expenses, all as more completely described in Exhibit "A" to Resolution No. 2019-81, attached hereto and by this reference made a part hereof. SECTION 2. Levy of Special Taxes. Special taxes shall be and are hereby levied for the Fiscal Year 2020-2021, and each Fiscal Year thereafter, on all parcels of real property within the District which are subject to taxation, which are identified in Exhibit "B" attached hereto, and in the amount set forth for each such parcel in said Exhibit "B." Pursuant to said Section 53340, such special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and Lien priority in case of delinquency as is provided for ad valorem taxes. SECTION 3. Transmittal to County. The City Clerk shall immediately following adoption of this ordinance transmit a copy hereof to the Board of Supervisors and the County Auditor of the County of San Bernardino together with a request that the special taxes as levied hereby be collected on the tax bills for the parcels identified in Exhibit "B" hereto, along with the ordinary ad valorem property taxes to be levied on and collected from the owners of said parcels. SECTION 4. Authorization to Publish Ordinance. City Clerk of the City of San Bernardino shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under section 36933 of the Government Code of the State of California. SECTION 5. Effective Date. This ordinance shall take effect thirty (30) days after its adoption. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of , 2020. 21.a Packet Pg. 672 Attachment: PW CFD 2019-1 Annex 4 - Att 1. Ordinance 3 (6866 : Final Reading and Adoption of Ordinance MC-1538 Amending Ordinance MC- Ordinance MC-1538 3 __________________________________ John Valdivia, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC, Acting City Clerk Approved as to form: __________________________________ Sonia Carvalho, City Attorney 21.a Packet Pg. 673 Attachment: PW CFD 2019-1 Annex 4 - Att 1. Ordinance 3 (6866 : Final Reading and Adoption of Ordinance MC-1538 Amending Ordinance MC- Ordinance MC-1538 4 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Ordinance No. MC-_____, introduced by the City Council of the City of San Bernardino, California, at a regular meeting held the ____ day of , 2020. Ordinance No. MC-____ was approve passed and adopted at a regular meeting held the ___ day of , 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. ______________________________ Genoveva Rocha, CMC, Acting City Clerk 21.a Packet Pg. 674 Attachment: PW CFD 2019-1 Annex 4 - Att 1. Ordinance 3 (6866 : Final Reading and Adoption of Ordinance MC-1538 Amending Ordinance MC- EXHIBIT A DESCRIPTION OF AUTHORIZED SERVICES The services which may be funded with proceeds of the special tax of CFD No. 2019-1, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right-of-ways, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following: (a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing; or both of the water quality basin improvements within flood control channel improvements; and (c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2019-1; as well as local roads within residential subdivisions located within CFD No. 2019-1; and any portions adjacent to the properties within CFD No. 2019-1. In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in Exhibit B to this resolution of intention. The above services shall be limited to those provided within the boundaries of CFD No. 2019-1 or for the benefit of the properties within the boundaries of CFD No. 2019-1, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2019-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2019-1 before CFD No. 2019-1 was created. 21.b Packet Pg. 675 Attachment: PW CFD 2019-1 Annex 4 - Att 1. Ex A Desc. of Services (6866 : Final Reading and Adoption of Ordinance MC-1538 Amending EXHIBIT B COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) SPECIAL TAX FISCAL YEAR 2020-21 (Effective as of August 19, 2020) ASSESSOR'S PARCEL NUMBERS Annexation Owner Assessor's Parcel Numbers Original Formation Cauffman Family Trust 4/20/98 0142-041-43 Cauffman Family Trust 5/4/11 0142-041-46 1 17329, LLC 0348-111-52, 0261-031-10, -11, and 0261-062-11 thru -14 2 GWS #4 Development, LLC 0141-431-24 3 Devore Storage Facility, LLC 0266-041-39 4 TH Rancho Palma, LLC 0261-181-16, -17 5 Strata Palma, LLC 0261-182-41 21.c Packet Pg. 676 Attachment: PW CFD 2019-1 Annex 4 - Att 1. Ex B Desc. of Territory (1) (6866 : Final Reading and Adoption of Ordinance MC-1538 Amending PROJECT MAP CFD NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 4 - TAX ZONE 5 21.dPacket Pg. 677Attachment: PW CFD 2019-1 Annex 4 - Att 2. Project Map (6866 : Final Reading and Adoption of Ordinance Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: August 19, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Kris Jensen, Director of Public Works Subject: Final Reading & Adoption of Ordinance MC-1539 Amending Ordinance MC-1522 and Levying Special Taxes Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, conduct a final reading and adopt Ordinance MC-1539 amending Ordinance MC-1522 and levying special taxes to be collected during Fiscal Year 2020/21 to pay the annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintenanc e, a reserve fund for capital replacement and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services). Background On June 5, 2019, the Mayor and City Council adopted Resolution No. 2019-81, a Resolution of Intention to form Community Facilities District No. 2019 -1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”. A public hearing was set for July 17, 2019 for the issue of establishment of the community facilities district. On August 7, 2019, the Mayor and City Council adopted Ordinance MC-1522 levying special taxes to be collected during FY 2019/20 to pay annual costs of maintenance, service expenses with respect to Community Facilities District No. 2019-1. On July 1, 2020, the Mayor and City Council adopted Resolution No. 2020-155, a Resolution of Intention to annex property near the north -west intersection of W. Little League Dr. and Palm Ave. (Attachment 2) into CFD 2019 -1 as Annexation No. 5. On August 5, 2020, the Mayor and City Council adopted Resolution No. 2020 -187 amending Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 5) and held a special landowner election and canvassed the election. The Mayor and City Council then adopted Resolution No. 2020-188 declaring the results of the special landowner election and introduced Ordinance MC -1539 amending Ordinance MC-1522 and levying special taxes for Fiscal Year 2020/21 for first reading by title only and scheduled for second reading and adoption on August 19, 2020. 22 Packet Pg. 678 6867 Page 2 Discussion On August 5, 2020, Ordinance MC-1539 was introduced for first reading to the Mayor and City Council. The Ordinance is now being returned to the Mayor and City Council for the final reading and adoption. The Ordinance will become effective 30 days from the date of adoption. 2020-2025 Key Strategic Targets and Goals Formation of this CFD is consistent with Key Target No. 4a: Secure a long-term revenue source. Funding from district assessments will create sustainable financial support for ongoing maintenance of landscape and infrastructure associated with the district location. Fiscal Impact There is no fiscal impact associated with the recommended action of this item. All costs associated with annexing property into the District have been borne by the Property Owner. By annexing the subject property into the District, the costs of maintaining improvements located within the development will be financed through special taxes levied on the parcels within CFD 2019-1 and not through the City’s General Fund. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, conduct a final reading and adopt Ordinance MC-1539 amending Ordinance MC-1522 and levying special taxes to be collected during Fiscal Year 2020/21 to pay the annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintenance, a reserve fund for capital replacement and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services). Attachments Attachment 1 Ordinance MC-1539 (Ordinance Levying Special Taxes); Exhibit A - Description of Services; Exhibit B - Description of Territory Attachment 2 Project Location Map Ward: 5 Synopsis of Previous Council Actions: June 5, 2019 Mayor and City Council adopted Resolution No. 2019-81, a Resolution of Intention to form Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello - Roos Community Facilities Act of 1982.” July 17, 2019 Mayor and City Council adopted Resolution No. 2019-178 establishing Community Facilities District No. 2019-1; Resolution No. 2019-179 declaring election results for Community Facilities District No. 2019-1; and conducted the first reading of Ordinance MC-1522 levying special taxes to be collected during FY 2019 -20 to 22 Packet Pg. 679 6867 Page 3 pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1. August 7, 2019 Mayor and City Council conducted the final reading of Ordinance MC-1522 levying special taxes to be collected during FY 2019 -20 to pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1. July 1, 2020 Mayor and City Council adopted Resolution No. 2020-155, a Resolution of Intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982.” August 5, 2020 Mayor and City Council adopted Resolution No. 2020 -187 calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 2019-1 (Annexation No. 5), and adopted Resolution No. 2020-188 declaring election results for Community Facilities District No. 2019-1 (Annexation No. 5); and introduced Ordinance No. MC-1539 amending Ordinance MC-1522. 22 Packet Pg. 680 ORDINANCE NO. MC-1539 AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA AMENDING ORDINANCE NO. MC-1522 AND LEVYING SPECIAL TAXES TO BE COLLECTED DURING FISCAL YEAR 2020-2021 TO PAY THE ANNUAL COSTS OF THE MAINTENANCE AND SERVICING OF LANDSCAPING, LIGHTING, WATER QUALITY IMPROVEMENTS, GRAFFITI, STREETS, STREET SWEEPING, PARKS AND TRAIL MAINTENANCE, A RESERVE FUND FOR CAPITAL REPLACEMENT, AND ADMINISTRATIVE EXPENSES WITH RESPECT TO CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) WHEREAS, the Mayor and City Council (the "City Council") of the City of San Bernardino (the "City") has heretofore adopted Resolution No. 2019-81, stating that a community facilities district to be known as "City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services), County of San Bernardino, State of California" (the "Community Facilities District"), is proposed to be established under the provisions of Chapter 2,5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the "Mello-Roos Community Facilities Act of 1982" (the "Act"), and fixing the time and place for a public hearing on the formation of the Community Facilities District; and WHEREAS, notice was published and mailed to the owners of the property in the Community Facilities District as required by law relative to the intention of the City Council to establish the Community Facilities District and the levy of the special taxes therein to provide certain services, and of the time and place of said public hearing; and WHEREAS, on August 5, 2020, at the time and place specified in said published and mailed notice, the City Council opened and held a public hearing as required by law relative to the formation of the Community Facilities District, the levy of the special taxes therein and the provision of services by the Community Facilities District; and WHEREAS, at the public hearing all persons desiring to be heard on all matters pertaining to the formation of the Community Facilities District, the levy of the special taxes and the provision of services therein were heard, and a full and fair hearing was held; and WHEREAS, subsequent to said hearing, the City Council adopted resolutions entitled "Resolution of the City Council of the City of San Bernardino Establishing Calling An Election for the Purpose of Submitting the Question of the Levy of the Proposed Special Tax to the Qualified Electors of the Proposed Community Facilities District; Authorizing the Levy of Special Taxes; and Establishing the Appropriations Limit for the Proposed Community Facilities District" (the "Resolution of Formation") which resolution established the Community Facilities 22.a Packet Pg. 681 Attachment: PW CFD 2019-1 Annex 5 - Att 1. Ordinance v3 [Revision 1] (6867 : Final Reading & Adoption of Ordinance MC-1539 Amending Ordinance MC-1539 2 District, authorized the levy of a special tax within the District, and called an election within the District on the proposition of levying a special tax, and establishing an appropriations limit within the District; and WHEREAS, an election was held within the Community Facilities District in which the sole eligible landowner elector approved said propositions by more than the two-thirds vote required by the Act. THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: SECTION 1. Findings. It is necessary that the City Council of the City of San Bernardino levy special taxes pursuant to Sections 53340 of the Government Code to provide and finance the costs of certain types of services, and related costs within the Community Facilities District, including (i) the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, and park maintenance, (ii) a reserve fund for capital replacement, and (iii) administrative expenses, all as more completely described in Exhibit "A" to Resolution No. 2019-81, attached hereto and by this reference made a part hereof. SECTION 2. Levy of Special Taxes. Special taxes shall be and are hereby levied for the Fiscal Year 2020-2021, and each Fiscal Year thereafter, on all parcels of real property within the District which are subject to taxation, which are identified in Exhibit "B" attached hereto, and in the amount set forth for each such parcel in said Exhibit "B." Pursuant to said Section 53340, such special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and Lien priority in case of delinquency as is provided for ad valorem taxes. SECTION 3. Transmittal to County. The City Clerk shall immediately following adoption of this ordinance transmit a copy hereof to the Board of Supervisors and the County Auditor of the County of San Bernardino together with a request that the special taxes as levied hereby be collected on the tax bills for the parcels identified in Exhibit "B" hereto, along with the ordinary ad valorem property taxes to be levied on and collected from the owners of said parcels. SECTION 4. Certification. City Clerk of the City of San Bernardino shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under section 36933 of the Government Code of the State of California. SECTION 5. Effective Date. This Ordinance shall take effect thirty (30) days after its adoption. APPROVED and ADOPTED by the City Council and signed by the Ma yor and attested by the Acting City Clerk this ___day of , 2020. 22.a Packet Pg. 682 Attachment: PW CFD 2019-1 Annex 5 - Att 1. Ordinance v3 [Revision 1] (6867 : Final Reading & Adoption of Ordinance MC-1539 Amending Ordinance MC-1539 3 __________________________________ John Valdivia, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC, Acting City Clerk Approved as to form: __________________________________ Sonia Carvalho, City Attorney 22.a Packet Pg. 683 Attachment: PW CFD 2019-1 Annex 5 - Att 1. Ordinance v3 [Revision 1] (6867 : Final Reading & Adoption of Ordinance MC-1539 Amending Ordinance MC-1539 4 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Ordinance No. MC-_____, introduced by the City Council of the City of San Bernardino, California, at a regular meeting held the ___ day of , 2020. Ordinance No. MC-____ was approve passed and adopted at a regular meeting held the ___ day of , 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. ______________________________ Genoveva Rocha, CMC, Acting City Clerk 22.a Packet Pg. 684 Attachment: PW CFD 2019-1 Annex 5 - Att 1. Ordinance v3 [Revision 1] (6867 : Final Reading & Adoption of Ordinance MC-1539 Amending EXHIBIT A DESCRIPTION OF AUTHORIZED SERVICES The services which may be funded with proceeds of the special tax of CFD No. 2019-1, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right-of-ways, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following: (a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing; or both of the water quality basin improvements within flood control channel improvements; and (c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2019-1; as well as local roads within residential subdivisions located within CFD No. 2019-1; and any portions adjacent to the properties within CFD No. 2019-1. In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in Exhibit B to this resolution of intention. The above services shall be limited to those provided within the boundaries of CFD No. 2019-1 or for the benefit of the properties within the boundaries of CFD No. 2019-1, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2019-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2019-1 before CFD No. 2019-1 was created. 22.b Packet Pg. 685 Attachment: PW CFD 2019-1 Annex 5 - Att 1. Ex A Desc. of Services (6867 : Final Reading & Adoption of Ordinance MC-1539 Amending EXHIBIT B COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) SPECIAL TAX FISCAL YEAR 2020-21 (Effective as of August 19, 2020) ASSESSOR'S PARCEL NUMBERS Annexation Owner Assessor's Parcel Numbers Original Formation Cauffman Family Trust 4/20/98 0142-041-43 Cauffman Family Trust 5/4/11 0142-041-46 1 17329, LLC 0348-111-52, 0261-031-10, -11, and 0261-062-11 thru -14 2 GWS #4 Development, LLC 0141-431-24 3 Devore Storage Facility, LLC 0266-041-39 4 TH Rancho Palma, LLC 0261-181-16, -17 5 Strata Palma, LLC 0261-182-41 22.c Packet Pg. 686 Attachment: PW CFD 2019-1 Annex 5 - Att 1. Ex B Desc. of Territory (6867 : Final Reading & Adoption of Ordinance MC-1539 Amending PROJECT MAP CFD NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 5 - TAX ZONE 6 22.dPacket Pg. 687Attachment: PW CFD 2019-1 Annex 5 - Att 2. Project Map (6867 : Final Reading & Adoption of Ordinance Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: August 19, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Mitch Cochran, Information Technology Director Subject: Authorization to Issue a Purchase Order to Connections for the Renewal of Microsoft Office 365 Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager or designee to authorize the purc hase of Microsoft Office 365 from Connections in an amount not to exceed $166,345. Background The City has established a goal of keeping its computing infrastructure current. The City is moving from its current email software, Exchange 2007, and office s oftware, Office 2010, to Office 365 hosted in the government cloud by Microsoft. When email is hosted in the cloud, it can provide for additional redundancy in that if our internet connection is out of service, users can still use their cell phone or an internet connection from home to retrieve their email. Discussion The email software is an annual subscription service which was started in 2017 as part of the refresh for the two City data centers at City Hall and the Police Department. The purchase will also allow the City to move from the existing Office 2010 on each desktop to Office 365. The last time the City purchased Office was in 2008 with an upgrade option, so we have gotten our money’s worth. Office 365 allows users to have the latest level of the standard office applications along with Teams video conferencing software and file storage in the cloud. Office 365 also allows for additional email storage space for each user. 2020-2025 Key Strategic Targets and Goals The purchase of the Office subscription agreements support Key Target No. 1: Financial Stability, as the services and agreements help to support the creation and management of an asset management plan. The annual support agreements ensure that critical office software applications are supported and kept up to date. Fiscal Impact The expected total cost is $151,222.50. The request includes a 10% contingency 23 Packet Pg. 688 6865 Page 2 amount of $15,122 for a total authorization request not to exceed $ 166,345. Microsoft has established set volume purchase levels and the City of San Bernardino qualifies for Level D pricing. The pricing from Connections is based on the competitively bid National Cooperative Purchasing Alliance (NCPA) agreements. The City has purchased hosted email using the Microsoft Exchange product in the past. The City will also be using savings in the telephone budgets due to scheduled projects for FY 2020/21 being completed in late FY 2019/20. The annual Microsoft hosted email renewal funds have been included in the Information Technology FY 2020/21 budget in Account No. 679-250-0061-5167. A budget amendment will be submitted to move additional funds from the IT Networking Professional Services Account No. 679-250-0060* 5502 to fund the purchase. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager or designee to authorize the purchase of Microsoft Office 365 from Connections in an amount not to exceed $166,345. Attachments Attachment 1 Connections Hosted Office 365 Quote Ward: N/A Synopsis of Previous Council Actions: October 18, 2017 Mayor and City Council directed the City Manager to purchase hosted Microsoft Exchange from GovConnection as part of a larger Microsoft software purchase. December 5, 2018 Mayor and City Council directed the City Manager to purchase hosted Microsoft Exchange from Connections (formerly GovConnetion). September 4, 2019 Mayor and City Council directed the City Manager to purchase hosted Microsoft Exchange from Connections. 23 Packet Pg. 689 ORDERING INFORMATION GovConnection, Inc. DBA Connection NCPA Contract # NCPA 01-44 Contract Expiration: 31 October 2021 Please contact your account manager with questions. Ordering Address GovConnection, Inc. 732 Milford Road Merrimack, NH 03054 Remittance Address GovConnection, Inc. PO Box 536477 Pittsburgh, PA 15253-5906 Please reference the Contract # on all purchase orders. TERMS & CONDITIONS Payment Terms: NET 30 (subject to approved credit) FOB Point: DESTINATION (within Continental US) Maximum Order Limitation: NONE Delivery Time: 1-30 DAYS ARO FEIN: 52-1837891 DUNS Number: 80-967-8782 CEC: 80-068888K Cage Code: OGTJ3 Business Size: LARGE WARRANTY: Manufacturer’s Standard Commercial Warranty NOTE: It is the end user's responsibility to review, understand and agree to the terms of any End User License Agreement (EULA). Important Notice: --- THIS QUOTATION IS SUBJECT TO THE FOLLOWING Terms of Sale: All purchases from GovConnection, Inc. are subject to the Terms and Conditions of our NCPA Contract # NCPA 01-44. Any Order accepted by GovConnection for the items included in this Quotation is expressly limited to those Terms and Conditions; any other terms and conditions referenced or appearing in your Purchase Order are considered null and void. No other terms and conditions shall apply without the written consent of GovConnection, Inc. Please refer to our Quote Number in your order. If you require a hard copy invoice for your credit card order, please visit the link below and click on the Proof of Purchase/Invoice link on the left side of the page to print one: https://www.govconnection.com/web/Shopping/ProofOfPurchase.htm Please forward your Contract or Purchase Order to: SLEDOPS@connection.com QUESTIONS: Call 800-800-0019 FAX: 603.683.0374 23.a Packet Pg. 690 Attachment: IT.annual office renewal FY2020-2021 Attachment 1 - Connections Quote (6865 : Authorization to Issue a Purchase Order to Account Executive:Bruce Siders Phone: Fax: Email:bruce.siders@connection.com Date:8/11/2020 Valid Through:9/10/2020 Account Manager:Account #:S04834 Phone: Fax: Email: Customer Contact:Mitch Cochran Phone:(909) 384-5947 x3017 Email:cochran_mi@sbcity.org Fax: DELIVERY FOB SHIP VIA SHIP WEIGHT TERMS CONTRACT ID# Destination Small Pkg Ground Service Level .00 lbs NET 30 NCPA 01-44 *Line #Qty Item #Mfg. Part #Description Mfg.Price Ext 1 715 35442837 AAA-11650 Govt. MPSA Office 365 Government G3 Per User Level D 12Mo Upfront Payment Microsoft MPSA - Microsoft MPSA 211.50$ 151,222.50$ Subtotal 151,222.50$ Fee 0.00$ Shipping and Handling 0.00$ Tax Exempt! Total 151,222.50$ 290 N D ST INFO SYSTEMS - CITY HALL SAN BERNARDINO, CA 92401 AB#: 14808932 AB#: 14680677 CITY OF SAN BERNARDINO ACCOUNTS PAYABLE MITCH COCHRAN 5-30 Days A/R/O Important Notice: --- THIS QUOTATION IS SUBJECT TO THE FOLLOWING Terms of Sale: All purchases from GovConnection, Inc. are subject to the Terms and Conditions of our NCPA Contract # NCPA 01-44. Any Order accepted by GovConnection for the items included in this Quotation is expressly limited to those Terms and Conditions; any other terms and conditions referenced or appearing in your Purchase Order are considered null and void. No other terms and conditions shall apply without the written consent of GovConnection, Inc. Please refer to our Quote Number in your order. SALES QUOTE GovConnection, Inc.# 25060478.01 732 Milford Road PLEASE REFER TO THE ABOVE QUOTE # WHEN ORDERINGMerrimack, NH 03054 CITY OF SAN BERNARDINO SAN BERNARDINO, CA 92418 290 N D ST QUOTE PROVIDED TO:SHIP TO: (909) 384-5947 (909) 384-5947 x3017 Page 2 of 2 8/11/2020 23.a Packet Pg. 691 Attachment: IT.annual office renewal FY2020-2021 Attachment 1 - Connections Quote (6865 : Authorization to Issue a Purchase Order to Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: August 19, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By: Jim Slobojan, Acting Finance Director Subject: Final Reading and Adoption of Ordinance MC-1540 Authorizing the Levy of Special Taxes Recommendation It is recommended that the Mayor and City Council if the City of San Bernardino, California, conduct a final reading and adopt Ordinance MC-1540 levying special taxes to be collected during Fiscal Year 2020/21 to pay the annual costs of certain public improvements and costs of administration with respect to City of San Bernardino Community Facilities District No. 2020-1. Background On July 1, 2020, Mayor and City Council approved Resolutions 2020-149 and 2020- 150, which initiated the formation of the CFD, approved the boundaries of the proposed CFD, described the facilities proposed to be financed, proposed a rate and method of apportionment of special taxes and declared t he necessity to issue bonds secured by such special tax levy to finance the city facilities. On August 5, 2020, the Mayor and City Council held a public hearing and adopted Resolutions No. 2020-195, 2020-196, 2020-197 and 2020-198, which established and adopted the boundaries of CFD 2020-1, determined necessity to incur bonded indebtedness, called the election, held a special landowner election and canvassed the election, and declared the results of special landowner election. Discussion On August 5, 2020, Ordinance MC-1540 was introduced for a first reading to the Mayor and City Council. The Ordinance is now being returned to the Mayor and City Council for the final reading and adoption. The Ordinance will become effective 30 days from the date of adoption. 2020-2025 Key Strategic Targets and Goals This project is consistent with Key Target No. 1: Financial Stability, by securing a long term revenue source. This project will contribute to ensure that the City is clean and attractive and provide infrastructure designed for long term economic growth. 24 Packet Pg. 692 6874 Page 2 Fiscal Impact There is no fiscal impact associated with the recommended action of this item. All costs associated with annexing property into the District have been borne by the Property Owner. The costs of maintaining improvements located within the development will be financed through the special taxes levied on the parcels within CFD 2020 -1 and not through the City’s General Fund. Conclusion It is recommended that the Mayor and City Council if the Cit y of San Bernardino, California, conduct a final reading and adopt Ordinance MC-1540 levying special taxes to be collected during Fiscal Year 2020/21 to pay the annual costs of certain public improvements and costs of administration with respect to City of San Bernardino Community Facilities District No. 2020-1. Attachments Attachment 1 Ordinance MC 1540 (Ordinance Levying Special Taxes); Exhibit A - Rate Method of Apportionment 24 Packet Pg. 693 ORDINANCE NO. MC-1540 AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2020-1 (RANCHO PALMA), AUTHORIZING THE LEVY OF SPECIAL TAXES IN SUCH COMMUNITY FACILITIES DISTRICT WHEREAS, the City Council of the City of San Bernardino, California (the “City Council”), has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors authorizing the levy of special taxes in the community facilities district, all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1. Division 2, Title 5 of the Government Code of the State of California (the “Act”). This community facilities district shall hereinafter be referred to as Community Facilities District No. 2020-1 (Rancho Palma) of the City of San Bernardino, State of California (the “District”). THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2020-1 (RANCHO PALMA), DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. This City Council does, by the passage of this ordinance, authorize the levy of special taxes on taxable properties located in the District pursuant to the Rate and Method of Apportionment for the District as set forth in Exhibit A attached hereto and incorporated herein by this reference (the “Rate and Method”). SECTION 2. This City Council, acting as the legislative body of the District, is hereby further authorized, by resolution, to annually determine the special tax to be levied within the District for the then current tax year or future tax years; provided, however, the special tax to be levied shall not exceed the maximum special tax authorized to be levied pursuant to the Rate and Method. SECTION 3. The special taxes herein authorized to be levied, to the extent possible, shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in any case of delinquency as applicable for ad valorem taxes; provided, however, the District may utilize a direct billing procedure for any special taxes that cannot be collected on the County of San Bernardino tax roll or may, by resolution, elect to collect the special taxes at a different time or in a different manner if necessary to meet its financial obligations. SECTION 4. The special taxes authorized to be levied shall be secured by the lien imposed pursuant to Section 3114.5 and 3115.5 of the California Streets and Highways Code, which lien shall be a continuing lien and shall secure each levy of the special taxes. The lien of the Special Tax (as defined in the Rate and Method) shall continue in force and effect until the 24.a Packet Pg. 694 Attachment: FN. CFD 2020-1 (Rancho Palma) - Ordinance MC-1540. Attachment 1 (6874 : Final Reading and Adoption of Ordinance MC-1540 special tax obligation is prepaid, permanently satisfied and canceled in accordance with law or until the Special Tax ceases to be levied by the City Council. SECTION 5. This Ordinance shall be effective thirty (30) days after its adoption. Within fifteen (15) days after its adoption, the City Clerk shall cause this Ordinance to be published in a newspaper of general circulation in the City. Introduced at a regular meeting of the City Council of the City of San Bernardino, California, on August 5, 2020. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of August, 2020. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, Acting City Clerk Attest: Sonia R. Carvalho, City Attorney 24.a Packet Pg. 695 Attachment: FN. CFD 2020-1 (Rancho Palma) - Ordinance MC-1540. Attachment 1 (6874 : Final Reading and Adoption of Ordinance MC-1540 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, Acting City Clerk, hereby certify that the attached is a true copy of Ordinance No. 2020-___, which was regularly introduced at a regular meeting of the City Council of the City of San Bernardino duly held on the 5th day of August, 2020, and was adopted at a regular meeting of the City Council duly held on the ____ day of August, 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of __________, 2020. ______________________________ Genoveva Rocha, Acting City Clerk 24.a Packet Pg. 696 Attachment: FN. CFD 2020-1 (Rancho Palma) - Ordinance MC-1540. Attachment 1 (6874 : Final Reading and Adoption of Ordinance MC-1540 EXHIBIT A RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2020-1 (RANCHO PALMA) OF THE CITY OF SAN BERNARDINO A Special Tax (all capitalized terms not otherwise defined herein are defined in Section A, “Definitions”, below) shall be applicable to each Assessor’s Parcel of Taxable Property located within the boundaries of Community Facilities District No. 2020-1 (Rancho Palma) of the City of San Bernardino ("CFD No. 2020-1"). The amount of Special Tax to be levied in each Fiscal Ye ar, on an Assessor’s Parcel, shall be determined by the City Council of the City of San Bernardino, acting in its capacity as the legislative body of CFD No. 2020-1 by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exempt Property as set forth below. All of the real property, unless exempted by law or by the provisions hereof in Section F, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre” or “Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded parcel map or instrument. The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2020-1: the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes A to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2020-1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2020-1 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2020-1 and any major property owner associated with applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2020-1 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2020-1 for any other administrative purposes of CFD No. 2020-1, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a building permit on or before June 1st preceding the Fiscal Year in which the Special Tax is being levied. 24.b Packet Pg. 697 Attachment: FN. EXHIBIT A to Ordinance MC-1540 (6874 : Final Reading and Adoption of Ordinance MC-1540 Authorizing the Levy of Special "Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number. "Assessor’s Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number. "Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification. "Assigned Special Tax" means the Special Tax of that name described in Section D below. "Backup Special Tax" means the Special Tax of that name described in Section D below. "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which Special Tax within CFD No. 2020-1 have been pledged. "Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD. "Building Permit" means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include expired or cancelled building permits, or any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original i ssuance, as determined by the CFD Administrator, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses. "Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the Building Permit for such Assessor’s Parcel. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31. “CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes. "CFD” or “CFD No. 2020-1" means Community Facilities District No. 2020-1 (Rancho Palma) of the City of San Bernardino established by the City under the Act. “City” means the City of San Bernardino, State of California. "City Council" means the City Council of the City of San Bernardino, acting as the Legislative Body of CFD No. 2020-1, or its designee. “Condominium Plan" means a condominium plan pursuant to California Civil Code, Section 4200 et seq. "County" means the County of San Bernardino, State of California. "Developed Property" means all Assessor’s Parcels of Taxable Property that: (i) are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being 24.b Packet Pg. 698 Attachment: FN. EXHIBIT A to Ordinance MC-1540 (6874 : Final Reading and Adoption of Ordinance MC-1540 Authorizing the Levy of Special levied, and (ii) a Building Permit for new construction was issued on or before June 1st preceding the Fiscal Year in which the Special Tax is being levied. "Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F. "Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a Condominium Plan that creates individual lots for which Building Permits may be issued without further subdivision. "Fiscal Year" means the period commencing on July 1st of any year and ending the following June 30th. “Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1 of Section D. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2020-1 in any Fiscal Year on any Assessor’s Parcel. “Multifamily Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a Building Permit(s) was issued for a non-residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property. "Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1. “Proportionately” means for Taxable Property for Special Tax that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Special Tax is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Assessor’s Parcels of Undeveloped Property or Provisi onal Undeveloped Property. "Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be classified as Exempt Property because to do so would be reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section F. "Residential Property" means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more Residential Units. 24.b Packet Pg. 699 Attachment: FN. EXHIBIT A to Ordinance MC-1540 (6874 : Final Reading and Adoption of Ordinance MC-1540 Authorizing the Levy of Special “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the CFD Administrator. “Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than Multifamily Property on an Assessor’s Parcel. "Special Tax" or “Special Taxes” means any of the special taxes authorized to be levied within CFD No. 2020-1 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to establish or replenish any reserve funds established under the Indenture in association with the Bonds to the extent that replenishment has not been included in the computation of the Special Tax Requirement in a previous Fiscal Year, (v) to cure any delinquencies in the amount of principal or interest on the Bonds that occurred in a previous Fiscal Year, and (vi) the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2020-1 provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Undeveloped Property as set forth in Step Three of Section E., less (vii) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to the Indenture. "Taxable Property" means all Assessor’s Parcels within CFD No. 2020-1, which are not Exempt Property. “Taxable Unit” means either a Residential Unit or an Acre. "Tract(s)" means an area of land within a subdivision identified by a particular tract number on a Final Map approved for the subdivision. “Trustee” means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property, and Provisional Undeveloped Property. B. SPECIAL TAX Commencing Fiscal Year 2020-2021 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property, up to the applicable Maximum Special Tax to fund the Special Tax Requirement. C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX Each Fiscal Year, beginning with Fiscal Year 2020-2021, each Assessor’s Parcel within CFD No. 2020-1 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property. Assessor’s Parcels of Developed Property shall further be classified as Residential Property or Non- Residential Property. Each Assessor’s Parcel of Residential Property shall further be classified as a Single Family Residential Property or Multifamily Property. Each Assessor’s Parcel of Single Family 24.b Packet Pg. 700 Attachment: FN. EXHIBIT A to Ordinance MC-1540 (6874 : Final Reading and Adoption of Ordinance MC-1540 Authorizing the Levy of Special Residential Property shall be further assigned to a Land Use Category based on its Building Square Footage. In the event that there are parent Assessor’s Parcel(s) for which one or more Building Pe rmits have been issued and the County has not yet assigned final Assessor’s Parcel Number(s) to the lots on which the Residential Unit(s) have been or will be built (in accordance with the Final Map or Condominium Plan) on such parent Assessor’s Parcel, the amount of the Special Tax on such parent Assessor’s Parcel shall be determined as follows: (1) the CFD Administrator shall first determine an amount of the Maximum Special Tax levy for such Assessor’s Parcel, based on the classification of such Assessor’s Parcel as Undeveloped Property; (2) the amount of the Special Tax for the Residential Units on such Assessor’s Parcel for which Building Permits have been issued shall be determined based on the Developed Property Special Tax rates and such amounts shall be levied as Developed Property in accordance with Step 1 and, if applicable, Step 4 of Section E below; and (3) the amount of the Special Tax levy on the Taxable Property in such Assessor’s Parcel not subject to the Special Tax levy in clause (2) shall b e equal to: (A) the percentage of the Maximum Special Tax rate levied on Undeveloped Property pursuant to Step 3 of Section E below, multiplied by the total of the amount determined in clause (1), less (B) the amount determined in clause (2). D. MAXIMUM SPECIAL TAX 1. Developed Property The Maximum Special Tax for each Assessor’s Parcel of Single Family Residential Property in any Fiscal Year shall be the greater of (i) the Assigned Special Tax or (ii) the Backup Special Tax. The Maximum Special Tax for each Assessor’s Parcel of Non-Residential Property and Multifamily Property shall be the applicable Assigned Special Tax described in Table 1 of Section D. a. Assigned Special Tax Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multifamily Property or Non-Residential Property shall be subject to an Assigned Special Tax. The Assigned Special Tax applicable to an Assessor's Parcel of Developed Property for Fiscal Year 2020-2021 shall be determined pursuant to Table 1 below. 24.b Packet Pg. 701 Attachment: FN. EXHIBIT A to Ordinance MC-1540 (6874 : Final Reading and Adoption of Ordinance MC-1540 Authorizing the Levy of Special TABLE 1 ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY FISCAL YEAR 2020-2021 Land Use Category T Taxable Unit Building Square Footage Assigned Special Tax Per Taxable Unit 1. Single Family Residential Property RU Less than 2,100 sq. ft. $1,880 2. Single Family Residential Property RU 2,100 sq. ft to 2,399 sq. ft $2,080 3. Single Family Residential Property RU 2,400 sq. ft to 2,699 sq. ft $2,185 4. Single Family Residential Property RU 2,700 sq. ft to 2,999 sq. ft $2,420 5. Single Family Residential Property RU Greater than 2,999 sq. ft $2,525 6. Multifamily Property Acre N/A $16,490 7. Non-Residential Property Acre N/A $16,490 b. Multiple Land Use Categories In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Type. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax for each Taxable Unit for all Land Use Categories located on the Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final. c. Backup Special Tax The Backup Special Tax for an Assessor’s Parcel within a Final Map classified as Single Family Residential Property shall calculated according to the following formula. B = (U x A) / L The terms above have the following meanings: B = Backup Special Tax per Assessor’s Parcel classified as Single Family Residential Property within the Final Map. U = Maximum Special Tax per Acre of Undeveloped Property per Section D.3 below. A = Acreage of Single Family Residential Property that exists or is expected to exist in such Final Map at the time of calculation, as determined by the Administrator. L = Number of Assessor’s Parcels of Single Family Residential Property expected to exist after build out in such Final Map at the time of calculation, as determined by the Administrator. In the event any portion of the Final Map is changed or modified, the Backup Special Tax for all Assessor’s Parcels within such changed or modified area shall be $16,490 per Acre. Notwithstanding the foregoing, the Backup Special Tax for an Assessor’s Parcel of Developer Property for which a certificate of occupancy has been granted may not be revised. In the event any superseding Final Map is recorded as a Final Map within the boundaries of the CFD, the Backup Special Tax for all Assessor’s Parcels within such Final Map shall be $16,490 per Acre. 24.b Packet Pg. 702 Attachment: FN. EXHIBIT A to Ordinance MC-1540 (6874 : Final Reading and Adoption of Ordinance MC-1540 Authorizing the Levy of Special The Backup Special Tax shall not apply to Multifamily Residential Property or Non-Residential Property. 2. Approved Property The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as Single Family Property shall be the Backup Special Tax computed pursuant to Section D.1.c above. The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as Multifamily Residential Property or Non-Residential Property shall be $16,490 per Acre. 3. Undeveloped Property and Provisional Undeveloped Property The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property and Provisional Undeveloped Property shall be $16,490 per Acre. E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing Fiscal Year 2020-2021 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property in accordance with the following steps: Step One: The Special Tax shall be levied proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax rates in Table 1 to satisfy the Special Tax Requirement. Step Two: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Approved Property at up to 100% of the Maximum Special T ax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement. Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Annual Special Tax shall be levied proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement. Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to 100% of the Backup Special Tax as needed to satisfy the Special Tax Requirement. Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied proportionately on each Assessor’s Parcel of Provisional Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement. Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Assessor’s Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Assessor’s Parcel be increased by more than ten percent (10%) above 24.b Packet Pg. 703 Attachment: FN. EXHIBIT A to Ordinance MC-1540 (6874 : Final Reading and Adoption of Ordinance MC-1540 Authorizing the Levy of Special the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default. F. EXEMPTIONS The City shall classify as Exempt Property, in the chronological order in which the property becomes exempt, (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses, or (vi) Assessor’s Parcels restricted to other types of public uses determined by the City Council, provided that no such classification would reduce the sum of all Taxable Property to less than 15.91 Acres. Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than 15.91 Acres. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 15.91 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E. G. PREPAYMENT OF SPECIAL TAX The following additional definitions apply to this Section G: “CFD Public Facilities” means $3,750,000 expressed in 2020 dollars, which shall increase by the Construction Inflation Index on July 1, 2020, and on each July 1 thereafter, or such lower amount (i) determined by the City Council as sufficient to provide the public facilities under the authorized bonding program for CFD No. 2020-1, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Tax levied under this Rate and Method of Apportionment. “Construction Fund” means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are currently available for expenditure to acquire or construct public facilities eligible under CFD No. 2020-1. “Construction Inflation Index” means the annual percentage change in the Engineering News -Record Building Cost Index for the city of Los Angeles, measured as of the Calendar Year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News - Record Building Cost Index for the City of Los Angeles. “Future Facilities Costs” means the CFD Public Facilities minus public facility costs available to be funded, or that were funded, through existing construction or escrow accounts or funded by the Outstanding Bonds or Special Taxes, and minus public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment. “Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax which will remain outstanding after the first interest and/or principal payment date following the current 24.b Packet Pg. 704 Attachment: FN. EXHIBIT A to Ordinance MC-1540 (6874 : Final Reading and Adoption of Ordinance MC-1540 Authorizing the Levy of Special Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax. 1. Prepayment in Full The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Approved Property or Undeveloped Property for which a Building Permit has been issued, (iii) Approved or Undeveloped Property for which a Building Permit has not been issued, and (iv) Assessor’s Parcels of Provisional Undeveloped Property. The Maximum Special Tax obligation applicable to an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Maximum Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel. Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes. The Prepayment Amount shall be calculated as follows (some capitalized terms are defined below): Bond Redemption Amount plus Redemption Premium plus Future Facilities Amount plus Defeasance Amount plus Administrative Fees and Expenses less Reserve Fund Credit Equals: Prepayment Amount The Prepayment Amount shall be determined as of the proposed prepayment date as follows: 1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel. 2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for the Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued, or Provisional Undeveloped Property to be prepaid, compute the Maximum Special Tax for the Assessor’s Parcel. 3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Special Taxes that could be levied the Maximum Special Tax assuming build out of all Assessor’s 24.b Packet Pg. 705 Attachment: FN. EXHIBIT A to Ordinance MC-1540 (6874 : Final Reading and Adoption of Ordinance MC-1540 Authorizing the Levy of Special Parcels of Taxable Property based on the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property not including any Assessor’s Parcels for which the Special Tax obligation has been previously prepaid. 4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”). 5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”). 6. Determine the Future Facilities Costs. 7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s Parcel (the “Future Facilities Amount”). 8. Determine the amount needed to pay interest on the Bond Redemption Amount fr om the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from Special Tax prepayments. 9. Determine the Special Taxes levied on the Assessor’s Parcel in the current Fiscal Year which have not yet been paid. 10. Determine the amount the CFD Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount. 11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”). 12. Verify the administrative fees and expenses of the CFD, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Maximum Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”). 13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. 14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit. 15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as establi shed under 24.b Packet Pg. 706 Attachment: FN. EXHIBIT A to Ordinance MC-1540 (6874 : Final Reading and Adoption of Ordinance MC-1540 Authorizing the Levy of Special the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by the CFD. The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments. As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is prepaid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special Tax obligation and the release of the Special Tax lien for the Assessor’s Parcel, and the obligation to pay the Special Tax for such Assessor’s Parcel shall cease. Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses. Tenders of Bonds in prepayment of the Maximum Special Tax obligation may be accepted upon the terms and conditions established by the City Council pursuant to the Ac t. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the City Council. 2. Prepayment in Part The Maximum Special Tax obligation for an Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property may be partially prepaid. For purposes of determining the partial prepayment amount, the provisions of Section G.1 shall be modified as provided by the following formula: PP = ((PE –A) x F) +A These terms have the following meaning: PP = Partial Prepayment Amount PE = the Prepayment Amount calculated according to Section G.1 F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Maximum Special Tax obligation A = the Administrative Fees and Expenses determined pursuant to Section G.1 The owner of an Assessor’s Parcel who desires to partially prepay the Maximum Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the amount of a partial prepayment. Within 15 business days of receipt of s uch non- refundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial Prepayment Amount for the Assessor’s Parcel. A Partial Prepayment Amount must be made not less than 24.b Packet Pg. 707 Attachment: FN. EXHIBIT A to Ordinance MC-1540 (6874 : Final Reading and Adoption of Ordinance MC-1540 Authorizing the Levy of Special 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment Amount. With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 15 of Section G.1, and (ii) indicate in the records of the CFD that there has been a Partial Prepayment Amount for the Assessor’s Parcel and that a portion of the Special Tax obligation equal to the remaining percentage (1.00 - F) of Special Tax obligation will continue on the Assessor’s Parcel pursuant to Section E. H. TERMINATION OF SPECIAL TAX For each Fiscal Year that any Bonds are outstanding the Special Tax shall be levied on all Assessor’s Parcels subject to the Special Tax. The Special Tax shall cease not later than the 2060-2061 Fiscal Year, however, Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all the required interest and principal payments on the CFD No. 2020-1 Bonds have been paid; (ii) all authorized facilities of CFD No. 2020-1 have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Special Tax remain uncollected and (iv) all other obligations of CFD No. 2020-1 have been satisfied. I. MANNER OF COLLECTION The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2020-1 may collect Special Tax at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act. J. APPEALS OF SPECIAL TAXES Any taxpayer may file a written appeal of the Special Taxes on his/her Assessor’s Parcel(s) with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant’s Assessor’s Parcel(s). No refunds of previously paid Special Taxes shall be made. The CFD Administrator shall interpret this Rate and Method of Apportionment and make determinations relative to the annual levy and administration of the Special Taxes and any taxpayer who appeals, as herein specified. 24.b Packet Pg. 708 Attachment: FN. EXHIBIT A to Ordinance MC-1540 (6874 : Final Reading and Adoption of Ordinance MC-1540 Authorizing the Levy of Special